Precise segment marketing helps Far Eastern Department Store cultivate loyal fans.

        The novel coronavirus pneumonia poses a great challenge to the retail market, which has not only restricted social distancing, but also changed consumer shopping habits. It also tests the way and link strength between department stores and consumers. This "cover story" will share how Far Eastern Department Store can seize the business opportunities of demassification through customized services, so as to grasp the new consumption trend in the post epidemic era by President Nancy Hsu.

        Cultivation of regional characteristics in the strategy of localization

        Far Eastern Department store, which has been standing in the retail market for more than half a century, has 11 service centers in Taiwan. Since different business districts have their own characteristics and their consumption habits are quite different, Far Eastern Department store has always adopted the strategy of "adjusting measures to local conditions". In different urban areas, according to the size of stores and the competitive situation, it adapts to the customer attributes of the business district and combines with the local culture to make different differentiation. President Nancy Hsu believes that "big stores have the advantages; small stores have the delicacy. As long as customers can be satisfied with the consumption space, the store is a perfect one."

        Over the years, with the growth of Taiwan's economy and the development of science and technology, people's consumption demand has changed greatly. The Far Eastern Department store also keeps pace with the times, gradually transforming from the first generation of small regional stores to the fifth generation of smart shopping malls that use digital technology and provide personalized services. The latest fifth generation of smart shopping mall, Far Eastern Department store A13, was opened at the end of last year. According to the strategic positioning of "retail mall", the department store has the advantages of complete business types, diversified products and exquisite service. In addition, it has unique shopping space design, and combines with POS, app and CRM to achieve the 4R goal of right time, right way, right person and right service, which enables consumers to receive the right information at the right time and in the right way.

        The innovative operation concept is well received as expected. According to President Nancy Hsu’s plan, "in the future, the operation concept of the smart shopping mall will be gradually expanded to other branches, the daily needs of the local people will also be paid pay attention, and we will keep the closest contact with customers through digital tools, and deepen the operation strategy of" adjusting measures to local conditions ", so as to build each branch into the most popular shopping mall for local consumers. "

        Customized service attracts familiar customers

        Customers are the most important asset of retailers, in addition to dividing consumers into different VIP levels, providing VIP rooms, parking concessions, birthday activities or concierge reception and other honorary treatment in accordance with the consumption amount of HAPPY GO members spend in each store in the current year. Far Eastern Department store also arranges brand publishing, new arrival show and new product experience and other customized activities for the main high-consumption customers, improving satisfaction and loyalty of the main customer group with the latest trend and product proposals with the well-designed VIP room to further maintain a high degree of adhesion.

        with the rapid change of consumer preferences and the rise of demassification demand, businesses must also use long-term accumulated data and combine with different digital tools to accurately interpret the preferences of members and conduct segmented and personalized marketing. Far Eastern Department Store analyzes shopping behaviors and real needs according to the types of goods purchased and the consumption trajectory of members, and depicts the profiles of consumers of different groups. At the same time, it makes good use of the "label" function and journey design of CRM membership center in planning activities, and provides appropriate incentives for potential target groups to recommend the most suitable products through app’s notifications, EDM or SMS message.

        For the future member management model, president Hsu has drawn up a complete structure. "In the revision plan of Far Eastern Department Store app, the membership grading system will be rebuilt. In addition to retaining the consumption amount as an indicator, it will also add new functions such as task activities, points collection and personalization to improve the adhesion and customer guidance rate of members to the app. "

        Digital transformation, innovation of consumption journey

        In order to meet the impact of online shopping mall, Far Eastern Department store has also designed a customer journey initiated by the department store and combined with the logic of consumers' shopping according to their browsing, clicking and tracks in the virtual world. It has also developed the digital experience of offline entities through the analysis and application of big data.

        President Hsu pointed out, "with digital technology, we outline the consumption trajectory and actual needs of consumers before, during and after entering the store. Through the hardware facilities and software services of department stores, we can solve the problems encountered by consumers in the consumption journey, and design five digital experiences from the public, demassification to the customized. "

        First of all, through the "Geo Gush" broadcast outside the store, consumers can be attracted to enter the store, actively prompt and meet the information needs of consumers before shopping, so as to be ahead of competitors and attract consumers' attention. After the consumers enter the store, analyze their gender and age, integrate with the back-end big data, and use the digital boards for segmented marketing, and interact with consumers in real time, so as to stimulate their shopping desire.

        In the process of shopping, using the new POS machines all over the counters to connect with the member system of Far Eastern Department store. After the consumers complete the check-out, the system will put personalized recommended products or activities in the store on the display panel of app and POS machines according to their consumption records. Finally, when the consumers leave the store, questionnaire will be sent to grasp the consumption satisfaction immediately.

        President Hsu stressed that "when consumers use the Far Eastern Department Store app to buy something, their shopping experience and preferences are continuously analyzed in CRM system of Far Eastern Department store, through the accumulation of long-term consumption, increase of the connection with customers, we can know each member more and more, get insight into customers, and really can recommend accurate products and activities based on customers' preferences. 

        Diversified channels to attract new customers

        Although Far Eastern Department store has been moving forward steadily in the digital transformation, novel coronavirus pneumonia outbreak has brought about a series of turbulence in the Department Store. Fortunately, under the leadership of President Hsu, all branches actively maintain close contact with main customers groups, provide considerate services such as appointment to the store and transaction at home, and cooperate closely with affiliated enterprises. Besides Happy Go, they also further cooperate with Happy Go Pay, Happy Cash, Far Eastern International Bank and other enterprises to import new customers in addition to consolidating the existing customer group and use the synergy of the group to stabilize the business foundation.

        In order to continuously smooth the communication channel with consumers during the epidemic period, President Hsu also instructed the floor supervisor and counter staff to make good use of digital media. The schedule promotion content, product matching proposal, topic trend, and even the tips of epidemic prevention can be introduced through live streaming. In combination with online shopping discounts, the public can grasp the fashion trend and easily shop with one click; at the same time, it combined with the Far Eastern Department store’s pick-up service outside the store to realize more convenient consumption.

        Although far Eastern Department store belongs to offline physical shopping malls, President Hsu is also very active in the management of virtual online platform, hoping to shop through official app, social media and online shopping ... and other channels to communicate with consumers in an all-round way, so as to attract new customers who are accustomed to using digital tools, and continue to expand the source of customers.

        Although the epidemic is a crisis for the retail market, under the complementary resources of the group affiliated enterprises, the cross-border integration of online / offline, and the active use of digital tools and social communities platforms, Far Eastern Department Store consolidates the existing business foundation, and at the same time takes advantage of the situation to expand new customers and stimulates consumption momentum. We believe that the crisis will eventually be turned into a turning point and a new retail situation will start. Wei