Arsenal for Customer Attraction in China
For winter break, I traveled to a country that proved to be one of the most astounding economic miracles in terms of the speed of growth — China. Standing on the sidelines of the battlefield of the Chinese market , I gained increased insight as to what tools small businesses and startup chains use to increase their likelihood of survival. Over the length of this article, I will thoroughly relay the tactics used in payment, customer service, and marketing that I have observed from businesses in Beijing.
In order to better understand the behavior of the Chinese consumer, I asked my aunt, who has been living in Beijing for her whole life, what these highly sought-after consumers want out of customer service. After all, startups that serve the consumer — and serve the consumer correctly — are the ones that succeed.
“Chinese consumers want efficiency and a high level of return at the same time, that’s why mobile payments are so popular nowadays,” my aunt replied.
Indeed, traveling to China without a ready Alipay or We-Chat wallet cuts you out of the experience of the extreme efficiency of spending large amounts of money within the time span of a few milliseconds. The usage of mobile payments has brought increased satisfaction for both the customer and corporations through time efficiency.
Basic economics state that increasing physical capital beyond a certain point will often lead to diminishing returns. We see this idea exemplified in our American coffee shops and fast food spaces, as the maximum number of employees we see making lattes one time is around three to four people. When I went to HeyTea, a popular tea shop in China, there were ten people working in a small rectangular space at the same time — a small space that Starbucks would’ve, at maximum, put only four people in. Why is it that working in such a small space still so seemingly efficient?
That question has a two-part answer. On one hand, through the invention of order placement and payment through the quick scan of a barcode, bartenders can focus on making the drinks instead of focusing on customer interaction at the cash register. A lack of employee-customer interaction is often frowned upon in the States; in contrast, the Chinese consumer expects efficient and fast service, so the lack of interaction could matter less because everyone is ready to rush to their next destination.
The gradual integration of mobile payments aids startups as businesses receive their profits at a faster pace without much complication, while the customer is satisfied as they receive their order in a short amount of time. In China, fast service is good service. On the other hand, the usage of a Fordism mentality in this service industry further enhances the increased efficiency. No one wastes space by moving around in the café workspace as each worker has a specific station and job assigned to them. In that way, China’s enterprises work like a machine, with everyone as an individual gear, churning the machine’s internal engine, and propelling the business towards success.
Speaking of customer service, it is important to note that not all businesses can drastically reduce their preparation time. For example, when I went to a local hair salon for a cut and dye, it took a total of about three hours. However, whenever there is a lack of efficiency, the business noticeably amps up their customer service. Take hair salons, for example: employees in American hair salons often try to fill up the awkward silence between haircuts with conversation — and that only occurs sometimes. In China, conversation frequency is about the same as the American hair salons, but along with a good conversation, plates of fresh cut fruits and various choices of hot and cold beverages are also served. You are never left with a moment of boredom. Even within the restaurants I have eaten at, hourglass timers were on the table, serving as a physical representation of the amount of time left until the plates of food arrives — and if the food doesn’t arrive in time, it is on the house.
Customer service greatly ties in with customer retention and customer attraction, both of which are key focuses of marketing. Hand in hand with mobile payments through QR codes is the idea of digital membership at the local restaurants, supermarkets, and other places of consumer spending. Through the scan of a QR code, the business provides special packages and discounts. Some memberships cost money, while others are free. These memberships replace physical employee and customer interaction in terms of continued digital customer contact and increased incentive for the customer to return.
In China, appearances of luxury and orderliness mean quite a lot. Businesses often adopt uniforms and grandeur decoration to further attract customers. This customer attraction style is quite parallel with how flies are attracted to Venus fly traps. Often restaurants and clothing stores may come up with a theme to further intrigue the customer market. In China, you are not only doing business, but you are also putting on a show. This is no surprise considering the media and celebrity saturation consistent in the everyday life of a Chinese citizen.
Therefore, mobile payment, efficient customer service, and well-packaged shops constitute the engine that keeps the consumerism of Chinese citizens high, stimulating the economy. However, keep in mind that this is simply a collection of my experience as a Chinese consumer for two weeks, not an entrepreneurship guide to success in China. Beijing is a battleground for businesses and I believe that the tactics as laid out above are parts of the weapon arsenal required for survival in this bloody competition.
Written by: Yifei Gao | IQ Associate
