Tiger sniffs: Nowadays, retail is not simply an action of “buying and selling”. Technology and digitalization have become the basic conditions for retail establishment. At this year’s FM Innovation Festival, Tiger Sniff invited multi-point Dmall partner and chief marketing officer Liu Guihai to share how multi-point Dmall helped offline supermarkets to realize the upgrade of consumer experience.
How can consumers be willful under the premise of experience first? Low prices are homogeneous, have the right response, and get attention … Among them, Liu Guihai believes that true low prices do not rely on a large number of subsidies. This is not a long-term solution, but a way to ensure the same quality and the same Based on services, reduce the cost of each link. In addition, the online and offline connections commonly pursued by the Super League, and the coexistence of going to the store and home, must be established on the premise that the supply chain system is open. In this process, digitalization is indispensable.
The following is the actual record of Liu Guihai ’s speech. (Slightly edited by Tiger) : < / p>
Thank you very much for the invitation from the organizers. Let us have the opportunity to share with you some of our small experiments in the upgrade of the 1 billion consumer experience. Dodo is a company established in 2015. We have been committed to the upgrading and transformation of the digital retail to the retail industry.
Today our theme is “billion consumers”, so we also want to say from the perspective of consumers, how is a new retail era or a new retail format really good? We think the final conclusion is that consumers say hello is really good. Therefore, today we will focus on some attempts of digital retail in upgrading consumer experience.
True low prices do not rely on subsidies
Mr. Zhang Li of Xiamen Jianfu Convenience Store also mentioned that the core elements of business are goods, prices and services. In other words, in a commercial supermarket, are the goods required by consumers? Is the price acceptable to him? Is he satisfied with the service? This is the core and key of our business, and also the three aspects that consumers focus on.
What have we done in these three areas?
First look at the product. What kind of product do you choose for a supermarket?In the end, how are these products placed in the entire supermarket? Is it convenient for them? I think these factors are what we have to think about, that is, in the consumer dimension, how can we make the consumer experience better.
What’s the difference between digitization and previous ones? In the past, physical stores had restrictions on the size of physical space. This restriction made it difficult to complete, or fully meet the needs of consumers, because it has the number of physical shelves and requirements for placement, so if you visit the supermarket There should be such a feeling: when we go to a supermarket, we will find that it is a compulsory moving line design. Our previous supermarket was called “fishbone-shaped moving line design”. Its purpose is very simple. It is to make you complete from the entrance to the exit. Go over again, so that there may be some sales to consumers.
Actually, this experience is very bad from the perspective of consumers, because they may not need to buy those things that much, so why should he go so far? So from our point of view, we hope that the supermarket can be placed in a reasonable and reasonable manner in the management of merchandise display, and that every consumer who goes to the store can see the place where he can most easily get the merchandise.
First select the category structure of the products, that is, what should be placed in the store what consumers need, and then see where these products are located. After the merchandise is finished, consumers can quickly leave the store after taking the merchandise. These are actually the differences from the digital age.
We have a product system called “Gaia”. This system is the application of digitalization to the entire retail in the product link. The core purpose is very simple, that is, to allow every consumer who visits the store to see the store. With a limited area and a limited shelf, they want the product they want to buy the most, and they can get it in the shortest path. At the same time, the product is always on the shelf. This system hopes to bring consumers a differentiated experience in digital stores and traditional stores.
Everyone has been talking about prices. Cheap is eternal demand, but cheap is not equal to cheap. It is not a synonym for low. We think there is an essential difference here. We all hope to get it at a lower cost. With the same quality of goods, how does digital retail change the cost structure?
The factors that affect prices are very obvious: 1. Cost (cost of production); 2. Costs incurred during the path from producer to consumer; 3. Whether there is relevant competition.
We use three cases to share what we have done to reduce costs after the exploration of digital retail to reduce the price of goods. (we say that the price of a product is the price of a product of the same quality) .
First, we have a unified procurement and sales platform. This platform is actually for the supermarket operator and his suppliers to establish a unified and coordinated office platform. For example, all the brands that entered into our supermarket business from P & G must be included in this unified procurement platform system. What have we done with it? It is to determine the quantity of our purchase based on sales, and to determine the quantity of his cloth and inventory with our accurate estimates. At the same time, we complete the logic of automatic replenishment of the last system through collaborative office.
This can be understood as we will tell Procter & Gamble that how many stocks per month will be enough for the supply channels of factories in the north. Surplus is not recommended for production, because when the production materials become goods, they are not sold Going out is actually a cost taking process.
Procter & Gamble’s commodity turnover days in our system are 29 days. Everyone may not have much concept of this number. In other words, the efficiency of capital flow in our system has increased by at least 40%.
We believe that only by letting brands, such as Procter & Gamble, capital flow and production efficiency greatly increase, will it be possible to lower the purchase price and consumers can buy cheaper products of the same quality.
Second, consider how to reduce costs from production to circulation. This is the digitization of the supply chain. Consumers want to enjoy preferential prices that continue to reduce the cost of the entire supply chain system. Our experiments at Beijing Wumart show that the average out-of-stock rate can now be controlled at 1.5%. Based on the 1.5% out-of-stock rate, we have achieved 18 days of inventory turnover and reduced the storeroom area of our stores. In half, this is the reduction in the cost of circulation.
Third, what kind of goods are sold to which consumers. Consumer needs vary widely. Once we did a promotion, we proposed a lot of promotional resources and a lot of subsidies. For consumers, these things are cheap, but the thing he wants to buy is not cheap, then these subsidies are for consumers. The significance is small.
So we are thinking about how to make every price promotion available to matched consumers. Everyone knows that there are often cattle to buy Maotai, then we will determine whether a consumer is a real or cattle user according to the actual consumption situation, and we will also check whether he has a liquor purchase history and whether there is a regular liquor Purchase records to determine if he is really drinking liquor, or someone who bought it for a change of hand.
In this way, we grant relevant qualifications to consumers who really want to buy Moutai: the price of Moutai he bought is 1499.
We believe that Only at the production side, to help each production brand to reduce its production costs and operating efficiency, can we control the purchase price; On the circulation side, we do The entire supply chain, the management of the warehouse, and the optimized chain of the store can effectively use the retailer’s super-commodity structure, supply chain turnover, and warehouse area to effectively reduce the cost of the circulation link. At the final sales link, we Match real promotional costs to users who really need them.
At present, based on the situation in the Beijing market, if we do all three, the final sales price can be lowered, and consumers can benefit from it. So we think that cheap must be very important to consumers, but the road that should be taken is to reduce the sales price, rather than simply subsidizing investors or venture capital, that is not the true commercial essence.
What is a good service?
Is there any better place in the service experience in digital retail or new retail environment? There are many aspects of the service, including not having to wait in line, as well as solving the problem of shortage of fresh products for home delivery.
This involves another issue, which is after-sales service treatment.
I don’t know how many people here have returned to the supermarket. I can tell you very responsibly that the return process in the supermarket was very complicated, and there was no such complete closed loop, especially if you bought from the supermarket. Should you go to the supermarket to deliver goods or should you enjoy the same door-to-door pickup as e-commerce? If the door-to-door pickup takes place, will the door-to-door cost be borne by the consumer?
How to solve the queue? First of all, we divide consumers’ shopping behaviors in stores into many categories. Some consumers do not want to use self-service shopping, or they want to go to the traditional checkout counter, is it okay? can. We have launched a multi-second payment product. If you shake your phone, you can enjoy your membership code, paid promotions, accumulation of points, and participating in separate marketing activities. Many uncles and aunts especially like this product because they don’t like self-service purchases and don’t like to scan codes with their mobile phones. They are still willing to go to the manual cashier, but they can also enjoy the changes in the digital age.
Customers with very few purchases want to come in and out quickly. For example, they buy bottled water, a boxed lunch, and leave after they have bought. Then they must have a large number of exits to leave quickly after the checkout. These people can use their mobile phones to scan and shop, and they can leave after checkout, so it is our free purchase and scan code purchase. Of course, many supermarkets now have similar services.
Also, there is a certain number of customers, but it is difficult for us to determine where he will scan the product, and we do not want to stop him from checking when he checks out, so for consumers The experience was not good either.
So, we hope that in a relatively fixed area, computer vision and artificial intelligence will be used to monitor his entire shopping scan process. He can avoid queueing in the self-service cashier area. Supermarket companies can also know this consumer. Is it scanned or not, and are there any items missing?
This type of classification can greatly reduce the queuing time of different types of consumers, rather than saying that people who use mobile phones have natural advantages, or customers who take manual cashiers are not respected. This is just a change in the queuing phenomenon.
Another issue is that we want to value more consumer voices. We all know that good service is a very important point for a business entity. I believe that many supermarkets do not say that they do not want to provide better services, but that he does not know how to provide better services.
For consumers, complaints are difficult and often time consuming. Generally, after you give feedback, the merchants have no response. We have also asked some supermarkets, and they will say “we don’t know”. Stores It also does not go to the headquarters for feedback, and it is difficult for related customer service staff to find someone who can solve the problem. Even if a customer service call is made, the customer service has to find a specific store to deal with specific things, which are all problems.
How to solve this problemHow about it? We have proposed a product called “National Inspection”. The function implemented by this product is very simple, that is, the voice of each customer’s dissatisfaction and the sound of vomiting is heard, and it can be put into the hands of the staff who specifically solve this problem Get this problem and go to solve it.
What is this mechanism? If you went to a supermarket today and found that the lighting is not very good, or the bathroom is not very clean, you can pick up your mobile phone, take a photo, or just say that the bathroom has a smell. At this time, the system will capture this information, and then push it to the background information extraction and classification system. This system is very simple. The first is to locate which store you are in now. The second is to judge what you have mentioned. The type of problem, the quality of the product or the service.
For example, when the system receives a “fish is not fresh” feedback, we will later link the entire internal management system. The employee in this store who is responsible for a certain type of problem will receive it, and the mobile phone will remind him that someone is now Say your fish is not fresh, then he needs to give a solution within 15 minutes, and we will give the answer to the consumer, tell him what kind of problem the fish is now and what the merchant has done Processing.
The staff member has finished all the work and will keep related records, which is closely related to his KPI and performance evaluation and salary. For every consumer, every word he says will be served by a staff member who can solve his problems.
Finally, every staff member sees every month and every day what kind of punishment he has received for his work mistakes and consumer dissatisfaction, how many consumers praise him and what kind of rewards he will receive . After the end of the month, he can know how much money he has made, which are satisfied by consumers, which are not satisfied by consumers, and what needs improvement.
Through such a digital method, we hope that every consumer who visits the store can feel the service and response, and this experience can be better than before.
Consumers are “free”
We have been talking about e-commerce and store services. In fact, any business supermarket wants consumers to come to the store to receive services. After all, delivery to home has extra costs, so it ’s a long time. In the time, the business system of e-commerce and the business system of physical business are separate, because their cost structure is different, their business models are different, and because of the differences in business methods, it is difficult for them to make consumers enjoy what I say It is a service that says “no difference”.
For consumers, sometimes we have to consider whether he is more willing to go to the store or to be sent home. I think this is a matter of choice. If it is the same price, the same service, the same standard, and everything is the same, I think it is the only way to choose it in such a way, rather than comparing how much I go to the store , How much money to get home, whether to pay extra distribution costs, after calculating the account, I will do what is reasonable.
Actually, if we pull all the services together and perform them according to the highest standards, We hope that consumers ’choice is not because of the difference in the price of the product, or because of the service. There are differences in standards, but simply because he wants to do whatever he wants. We call it free choice.
In this case, traditional retail must have e-commerce, not just add a home delivery service, it must have the same promotion system, the same inventory management, the same in the same product structure. The price system is then carried out in accordance with uniform service standards.
So the core of the integration of going to the store and home is: Are the online and offline promotions synchronized? Are the standards for services synchronized? Is the consumer experience exactly the same?
Physical retail as an e-commerce, what should be done is to integrate store-to-home based on the data platform. The innate basic conditions are that the supply chain must be unified, the goods must be unified, the promotion must be unified, the inventory must be unified, The standard of service should be uniform. This is what the merchants we work with are trying to achieve and what we are doing now.
Finally, I want to say that business is actually a relationship between buyers and sellers. This is not to say that we can only talk about consumers. If all tools, gameplay, and digital platforms are difficult for operators to use, It doesn’t make much sense either.
I don’t know if anyone has complained about the bad experience when you went to mention the company’s OA reimbursement, or the internal office system was particularly uncomfortable to use. The original information system generally has a problem of poor user experience. The employee’s experience is not good, and we don’t believe that he can serve customers very well and make the customer experience very good, so we also attach great importance to whether the entire operating system can achieve Apple-level experience in the use of practitioners.
We think that only in this way can every staff be more willing to use this system, he is more willing to use, and willing to accept the convenience and tools brought by such a platform, they use this method to serve our consumption well Or this is a good