DECA Sample Competitive Events Individual Series 2

DECA Inc.

2 Nov 201706:01

Summary

TLDRThe video script discusses a new pricing strategy and customer engagement plan for a family-friendly hair salon. The plan includes a partial price increase for adults while keeping rates for kids and seniors the same, aiming for a stable and predictable experience. A rewards app is proposed, similar to Starbucks, offering variable incentives to encourage repeat visits and loyalty. The salon aims to maintain a fast service to stand out from competitors and plans to introduce the new pricing through personal communication with existing customers and clear signage for new ones.

Takeaways

📈 The campaign aims to introduce a partial price increase due to the improving economy, maintaining a balance between cost and customer stability.
💰 The proposed price increase is from $12 to $15 for adults, while children and seniors remain at $10, aiming to keep the family of four expenditure to a manageable $50 including taxes.
👨‍👩‍👧‍👦 The business model emphasizes family friendliness and quick service, ensuring customers can come in and out efficiently, especially important for families with children's activities.
📲 A new app is being introduced to register families and offer rewards based on spending increments, similar to the Starbucks app, to enhance customer loyalty and engagement.
🎉 The rewards program will offer varying discounts and free services, such as a free shampoo or 10% off, to keep the rewards exciting and unpredictable for customers.
🔄 The app will feature intuitive design with different shaped buttons for quick navigation, making it easy for customers to check their rewards and family status.
🏢 The app will also allow customers to check in at the store for bonus points, further incentivizing frequent visits and building customer loyalty.
📚 The concept of 'sneezers' from the book 'The Purple Cow' is referenced, indicating that satisfied customers will spread the word about the business, attracting new clients.
🙅‍♀️ Additional services such as highlights or eyebrow waxing are considered unnecessary as they may slow down the service and detract from the business's core value of speed.
💌 Coupons will be offered to the general public through emails, but the better deals will be reserved for the rewards program to create a sense of exclusivity for loyal customers.
🗣️ The introduction of new pricing will be communicated personally to loyal customers by their stylists to minimize shock and explain the benefits of the new rewards program.

Q & A

What is the main topic of the discussion in the transcript?
-The main topic is the introduction of a new pricing strategy and a customer loyalty app for a family-friendly business, likely a hair salon, to maintain competitiveness and enhance customer experience.
Why was there a hesitation to increase prices earlier?
-The hesitation to increase prices earlier was due to the economic conditions, and a desire to avoid shocking customers with sudden changes.
What is the proposed new pricing structure for adults?
-The proposed new price for adults is an increase from $12 to $15.
How will the pricing for kids and seniors be affected?
-The pricing for kids and seniors will remain at $10, unaffected by the new pricing strategy.
What is the rationale behind the new pricing strategy for a family of four?
-The rationale is to maintain simplicity and stability, with a total cost of $50 for a family of four, including two adults and two children, to ensure ease of payment and quick service.
What is the proposed app's purpose in the new campaign?
-The app is designed to register families, track spending, and offer rewards based on the amount spent, similar to the Starbucks app, to enhance the family-friendly image and customer loyalty.
How will the rewards system in the app work?
-The rewards system will offer different rewards, such as a free shampoo or 10% off, in increments of $5 spent, with the aim of providing a pleasant surprise and keeping customers engaged.
What is the significance of different shaped buttons in the app?
-Different shaped buttons help users quickly memorize and navigate the app's functions, such as checking remaining balance, rewards, and family details.
How does the business plan to introduce the new pricing to existing customers?
-The plan is to introduce the new pricing through personal communication with loyal customers, explaining the changes and showing them the new app.
What is the strategy for new customers who have not seen the original prices?
-For new customers, the new prices will simply be presented as the standard, without the need for personal communication or explanation.
Why is the business hesitant to offer additional services like highlights or eyebrow waxing?
-The business believes that offering additional services could slow down the service time, which contradicts their competitive advantage of being fast.
How does the business plan to distribute coupons to the general public?
-Coupons will be distributed through emails and other means to the general public, but the better coupons and rewards will be reserved for customers within the loyalty program.

Outlines

00:00

📈 Partial Price Increase Strategy

The speaker discusses a new pricing strategy for a business campaign, emphasizing the importance of maintaining customer loyalty during an economic recovery. They propose a partial price increase for adult services from $12 to $15, while keeping the price for children and seniors at $10. This is aimed at providing stability and ease for families, who are the primary demographic, by offering a total cost of $50 for a family of four, including taxes. The business's competitive advantage is highlighted as being family-friendly and fast, with no long waiting times. A new app is introduced to enhance the customer experience, offering rewards and incentives based on spending increments, similar to the Starbucks app model. The app will also facilitate in-store check-ins for bonus points, encouraging repeat visits and loyalty.

05:01

📱 App and Loyalty Program Rollout

The speaker elaborates on the app's features, which include personalized buttons for quick navigation and rewards tracking. The app is designed to make the customer experience seamless, with the ability to check in for bonus points and receive varying rewards based on spending. The strategy is to create excitement around the rewards program, encouraging customers to share their experiences with friends, acting as 'sneezers' to spread the word about the business. The speaker also addresses potential questions about additional services and general public coupons, advocating for maintaining the business's fast service model and focusing on rewarding existing customers with exclusive coupons through the app.

🗣️ Introducing New Pricing to Customers

The final paragraph addresses the strategy for introducing the new pricing to customers. Loyal customers will be informed personally about the changes, with an emphasis on the new rewards program and the app, to soften the impact of the price increase. New customers, unfamiliar with the original prices, are expected to adapt more easily to the new pricing. The speaker concludes the discussion by acknowledging the value of the insights provided and expressing gratitude for the opportunity to listen and consider the new campaign strategies.

Mindmap

Keywords

💡Campaign

A campaign in the context of the video refers to a coordinated series of actions or strategies designed to achieve a specific business goal. In this case, it involves a new initiative to increase customer engagement and loyalty. The script mentions starting a 'new campaign,' which is part of their strategy to adjust pricing and enhance customer experience.

💡Economy

The term 'economy' is used to describe the overall financial health and condition of a country or region. In the script, the speaker mentions that they had previously decided against increasing prices due to the state of the economy, indicating a consideration for the financial pressures their customers might be facing.

💡Price Increase

A price increase is when a company raises the cost of its goods or services. The script discusses a strategy for a 'partial price increase,' aiming to balance the need for revenue with customer retention by only raising prices for adult services, while keeping them stable for kids and seniors.

💡Stability

Stability in this context refers to the predictability and consistency of a company's pricing and services. The speaker emphasizes the importance of not shocking customers with sudden changes, but rather implementing gradual adjustments to maintain a sense of stability and trust.

💡Family-Friendly

Being 'family-friendly' means catering to the needs and preferences of families, often by providing services and environments that are suitable for all ages. The script highlights the company's competitive advantage as being family-friendly and fast, aiming to appeal to families with children.

💡App

An app, short for application, is a software program designed for mobile devices. The script discusses the creation of an app to register family members and track rewards, similar to the Starbucks app, to enhance the customer experience and encourage repeat business.

💡Rewards

Rewards are incentives offered by a company to encourage customer loyalty and repeat business. The script mentions a rewards system where customers can earn free services or discounts based on their spending, using the app to track their progress.

💡Check-in

A check-in, in the context of the app, is an action where customers confirm their presence at the business location, often to receive additional benefits or rewards. The script suggests that customers can 'check in' at the store to earn bonus points, contributing to their rewards.

💡Loyalty

Loyalty refers to the faithfulness and commitment of customers to a particular business or brand. The script discusses strategies to maintain and enhance customer loyalty, such as through a rewards program and personalized communication about pricing changes.

💡Sneezers

In the script, 'sneezers' is a term borrowed from the book 'The Purple Cow' to describe customers who spread positive word-of-mouth about a product or service. The speaker believes that mothers, often in social settings, can act as 'sneezers' for their business by sharing their positive experiences with others.

💡Competitive Edge

A competitive edge is an advantage that a business has over its competitors, often in terms of product, service, or strategy. The script mentions maintaining a 'competitive edge' by being fast and friendly, and by offering a unique rewards program.

💡Coupons

Coupons are certificates or tickets that can be redeemed for a discount or rebate on a product or service. The script suggests offering coupons through emails to the general public, but reserving better deals for customers within their rewards program to create a sense of exclusivity.

💡Introduction of New Pricing

The introduction of new pricing refers to the process of informing customers about changes in the cost of goods or services. The script discusses a personal approach to introducing new prices to loyal customers, ensuring they understand the reasons behind the change and the benefits they will receive.

Highlights

Introduction of a new campaign with a focus on customer stability and gradual price increase.

Proposed partial price increase for adult services from $12 to $15, maintaining $10 for kids and seniors.

Aim to maintain a family-friendly image and ease of payment with a fixed total cost for a family of four.

Emphasis on the brand's competitive advantage as being fast and family-friendly.

Introduction of an app to enhance customer experience with family registration and rewards.

The app will offer rewards in increments of spending, similar to the Starbucks app model.

Different rewards for customers to keep the experience exciting and unpredictable.

Use of app buttons to streamline user experience and quicken the check-in process.

Strategic use of 'sneezers' or word-of-mouth marketing through satisfied customers.

Discussion on not expanding services to maintain the brand's speed and efficiency.

Promotion of loyalty through exclusive coupons and rewards within the app.

Introduction of new pricing strategy through personal communication with existing customers.

Assumption that new customers will adapt to the new pricing without issue.

Consideration of offering introductory coupons to attract new customers to the rewards program.

Emphasis on personalizing the communication of price changes to loyal customers.

The importance of maintaining a friendly atmosphere and quick service to keep the brand's image intact.

Ensuring that price changes are perceived as beneficial to customers through added rewards.