DECA Sample Competitive Events Individual Series 2

Summary

The 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.