Demand chain / network design and management

Résumé du document

Through this case I would like to present the Customer Relationship Management (CRM) of Fnac store. The Fnac, a famous french brand is a chain of retail stores is France's leading purveyor of what the customers refers to as "cultural goods" such as books, CDs, DVDs, event tickets, as well as the new technologies items such as TVs, cameras... The trade policy of Fnac considers that a customer entering the store is primarily a visitor. So, the "potential customer" can freely move through the store, get advice, and discover all offers during the time he wishes.

Fnac always puts its customers at the center of its concerns. Fnac is also one of the first companies to create a club with Fnac members' and understand the importance of customer loyalty. This is a concept quite innovative who allow keeping these customers.
One of the priorities for this store is to make customers loyal because it is very hard and costly for a company to get a new customer, but once the visitor become a client, it is very important to keep it loyal in order to generate new sales with him.

It is much easier and less expensive to sale a second time to a client than the first time. At the first time, the client is more careful and needs to be confident in the quality and the product. Quality of service is one of the most important ways to achieve it. Through this case we will speak about different points. In a first part, we will see the presentation of the Fnac Company in a few words. Then we will see the objectives and strategies of Fnac through the different means that they have set up to keep their clients loyal.

Extraits

[...] After that, companies could return their relationships between customers and Fnac's brand image. Today when you buy one article, Fnac can deliver the goods to your home, but does not give any advices to understand how the products work except the products instructions for use or does not help to connect the TV or computer. That's why I think there is a huge lack here and Fnac could improve his relationship by offering a commercial service to its customers, exactly a range of home services to help customers to install and to use their products. [...]

[...] Internet tool is a major player in order to increase, to keep the clients loyal, to know them better and to be able to target them easily. Belonging to PPR Group, (financial funding) allows being on the top of technology (particularly about the website development) thanks to the funds they bring and thus taking care of its customers through a very powerful CRM. So if Fnac Company wants to continue to grow his turnover and stay the leader on customer's goods, it needs to keep his conduct line as it shows through his slogan. [...]

[...] You can pay like a classical credit card and permits to collect loyalty point to obtain gifts or discounts. You can have some discounts with some Fnac partners ex: Jean-Louis David, “Nature & découverte” and others. This special card Fnac also offers the advantage of avoiding the queue before paying. You have special cashier when you can go and that facilitate you the payment. Fnac makes you feel like a customer” which is also a very interesting strategy. The client has the impression to be unique and it is also a good way to get it loyal. [...]

[...] In the same way, we can say that's IT System is like an IT consulting firm in marketing and strategy, which analyze customer data. Ex: Who, when, why The main purpose in this CRM tool is to provide a to one marketing”. I mean a personalized marketing at the highest level. We can say as example: The special days of purchase at the end of the year, or Fnac Mobile through Orange With this kind of CRM strategy, Fnac becomes more efficient, because of the customers knowledge. They are also adapting personalized promotions & marketing and minimize the risk of consumer rejections. [...]

[...] If the customer if satisfied he will return many times in the store and maybe consume again. For that, the offer proposed by Fnac must be complete. Fnac always needs to develop new activities to stay competitive and to attract new clients. 2nd objective: Knowledge and customer's segmentation: The relationship with Fnac's customers is not acquired. Fnac must structure this strategy and always need to be in evolution. They should also follow the new trends and new flow of ideas in order to keep their client attracted by novelties. [...]