Chloe’s strategy for growing a business

Chloe’s strategy for growing a business

Evaldas: So Chloe I think it’s time for my first challenge I thought. Imagine yourself for some reason you moved to Tokyo in Japan and you’re looking for a job, and the first opportunity that came about is like a Japanese traditional bakery shop that you’re assigned to be a manager of. Your first task is to increase the sales of those bakery products in the shop. It’s a local shop. So what would you think of what kind of strategy you would take or maybe some tasks for that business?

Chloe: Well I think, given it’s a physical store with a very fresh product, the very first thing — I mean I’m going to assume they’ve got a good food and a reasonable customer based. The first thing I do is listen to the customers and start to understand what the customers are looking for, what products they’re buying, understanding the different people buying different things at different times of the day. Are they responding better to different price opportunities, and what can we do to then encourage those customers that we’ve already got to buy more. That might be making sure the right products are at the front at different times of the day, it might be making sure we don’t run out of key lines, it might be changing the way in which the products displayed, it might be having different types of conversations, or changing the layout, changing the windows, it’s whatever the customer starts to respond to, giving them more of that. Then using those methods to encourage them to be purchasing, only after you’ve got the physical store right, in a physical retail environment. Do you want to then start looking at the online side of things? My guess with the specialist bakery would be starting to work on social media to bind those customers even more to you, would be the root to go down. So I think of it very much as a customer relationship opportunity.

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Evaldas: Yeah, very interesting. How would you know if you change something inside the physical shop that you’ve got a response because in the long line, you can measure the different kind of tools, but in physical it’s a bit more harder?

Chloe: In physical, it’s actually often a lot easier.

Evaldas: Why?

Chloe: Because you don’t get distracted by unimportant stats and you focus on the proper stats. So if the losy bread were on the top today and the buns were on the bottom, and we switch them around tomorrow, and sales of buns go up to two times, then we sold double the number of buns. It’s pretty obvious that that was a good change to make. The other good thing about digging in a physical environment is you’re making fewer guesses about the customer’s intentions. So you may discover you get use — you suddenly have a drop off in cake sales or something, and actually you realize the reason is that this week, the group who buy 20 cakes from you haven’t come in, because somebody’s on holiday or you realize someone starts a diet. You can see the customers that are coming in and going, “Oh, I’m in with something different, I’ll eat something different today.” So you can see the whites of their eyes, I suppose is what I’m saying, which gives you a lot more feedback than simply ones and zeros in Google analytics.

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About Evaldas Miliauskas

Evaldas Miliauskas is the founder of CastSource - a startup that provides transcriptions designed for podcasts. He is a passionate podcaster listener, host, and a entrepreneur.

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