Shh~ Let’s have a look of the CRM secrets of Lawson

Technology entrepreneur new media Ostrich FM introduces Yo-ren Limited
Yo-ren provides online member CRM system for convenience stores based on the smart integration of convenience store retail model that enables suppliers to get feedback related to products being sold and boosts convenience store profitability by analyzing sales data and provide solutions.
Their Lawson APP they developed is a product they designed for Lawson. Users who registered on the app can obtain and redeem points, get gifts, and even delivery, laundry service in the near future.

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【It looks all-powerful, what is the story behind it?】

Retail market is in depression, but with huge potential

Facing the aggressive expansion of e-commerce, retail business is not successfully developing. Most of the convenience stores are doing business with high rotation and low profit or high frequency and low profit since human resource cost and fixed cost keeps increasing and the profit comes only from products sales. Products share high similarities with each other that they are not highly appealing to customers.

Convenience stores can only predict the market demand by analyzing the change in unit sales. Data including purchase behavior, price-demand elasticity, price-sensitivity, bias, or second-purchase-rate is not reflected and taken into consideration.
However, as for Japan, convenience stores enjoy a 1.4 million yen/m² profitability rate which tops all industries in Japan. By analyzing daily POS data, stores can order customer-favored products and update popular products on a daily basis. Removal of unsaleable products and adjustment of inventories can lead to increase in total sales. Moreover, the items displayed in stores differs from each other depending on the nearby business areas and customer behaviors.

According to source, the number of convenience stores that covers every million population in Japan is 388 stores and in Taiwan area is 425 stores while in China urban areas, the number is 54. We can safely draw a conclusion that mainland China market still has the potential to absorb more than 270000 stores.

Faced with such a broad but not perfect market, profit model diversification, supply and demand upstream and downstream exchange is particularly important.

【Yeah, but how?】

Convenience Store membership, Lawson CRM new model

Yo-ren’s business consists of three sectors: building CRM system, suppliers EPR system and providing added-value service.

CRM System:convenience stores increase profitability channels by managing relationship with customer via CRM, cooperating with other platforms and providing points transfer service (e.g. Japanese CVS can provide logistic services using their selling channels); Yo-ren excels in discovering the current trend of customer interests, customer bias, promotion sensitivity, etc by data analysis.

EPR System:conduct researches determining whether the new customers for new products come from past customers or are increased by the launch of new flavor, for example; analyzing new products sales by analyzing store data; more accurate advertising and promotion, more accurate segmentation and targeting.

Added-value service: Increase interaction with customers based on the membership system by providing food reservation service, delivery collect service, laundry service. From the increased interactions, profitability is expected to raise with the cooperation with suppliers in the short term and more accurate analysis can be conducted in the long term with the increasing data.

This model in the short term, through the cooperation of suppliers can produce enough profits. In the long run, through the analysis of the data, can make the convenience store better grasp the user behavior.

In the marketing process, Yo-ren developed Lawson Diandian app with Lawson Japan and developed AEON app with GD AEON. Hundreds of thousands of registered users are visiting hundreds of app-covered stores nowadays.

Lawson APP is able to keep a record of how many times a customer has visited Lawson stores. It is very convenient for users to get a certain amount of discount for some products by showing the membership barcode in the app and paying by Alipay or Wechat pay. Checking Lawson stores nearby is also possible on the app.

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【The team looks awesome】

Japanese background: the youngest partner of McKinsey & Company

The profit comes from mainly two aspects, for the stage now, the company charges suppliers for posting information on the app; for future stage, it is predictable that there will be huge value in customer behavior analysis and big data analysis.

Currently there is no competitors in the market while some companies are developing membership system in high-consumption and high-return industries. Yo-ren’s suppliers resource, CVS channels as well as their data analysis capability, EPR promotion capability are all their strong points.

Speaking of the future vision, Yo-ren is aiming at ten million users by the end of 2016 and attracting more CVS to use this service by simplifying operation procedures and showing the benefit of big data analysis.

Yoren Limited founder, from Japan’s TianXiu JIN life experience is also very legendary, at the University of Rochester Business School won the Master of Management, then returned to Japan in the Ministry of Finance worked. Later went to McKinsey, in 2007, became the youngest partner.

After leaving McKinsey, Mr. Kaneda established Yo-ren. Yo-ren has more than 30 members so far, COO Mr. Wu is a graduate from Waseda University and had experience working in IBM, is in charge in CRM developing. CTO Mr. Zhuang is a master in technology development with practical experience and skills.

Source: Ostrich radio station

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