atisfaction:

After interviewing 30 “satisfied” customers of H&M Stores, we

were able to find four typical types of buyers that consider themselves to
have a pleasant experience while shopping in this well known Swedish
brand. The groups are as follow:

1.- Road Runner: clients that love to shop, but would like to spend
time on other activities. They usually shop on the store when they
want to get things for other family members, themselves and/or
friends. They get satisfied by price, convenience and fashion styles.

2.-Rainbow: clients that love variety, lots of collections, still think

that fashion and style are important determinants to their
satisfaction. They tend to buy accessories for their outfits.

3.- Tailor Fit: this kind of client is searching for the new trendy styles
in fashion. Good quality and design are a must. Price matters, but
they are still willing to buy for style and fashion.

4.- Bargain basement: they are bargain chasers, all what matters is
the price, discounts and sales. Special offers are always welcome for
this type of client.

The determinants found in our four types of consumers, will then be:

a. Attractiveness of the layout which attracts clients to learn from

the collections offered. They give an idea of the different
variety and price range of the products.

b. Price and discounts. Affordable fashion and style products make

clients fall in love with their collections.

c. Convenience, accessibility of the stores.

Relationship between Loyalty and Satisfaction:

We asked our customers about

satisfaction in relation to product
and service. In order to learn from
the relationship with their loyalty,
we asked them about how long
they have been costumers of the
store and their frequency of
purchase. At the same time they
were asked if they would
recommend the brand to other
possible costumers.
 After analyzing the data, we
found out that there is a strong
relation between the product
satisfaction/service satisfaction
and the duration the customer
has with the brand. The more
satisfied the customer is with
the product, the more likely they will last longer as customers.
Duration Vs. Product Satisfaction

In terms of loyal mentality, we found out that there is a stronger link with
the service at H&M than with the
product quality. For instance, people
that are satisfied with the service at
the store are more likely to
repurchase.

Similarly, the more satisfied a

customer is with the service, the
more likely they will buy more
frequently. Whereas with product satisfaction, the client will not necessarily
come back and repurchase.

When a client is satisfied with the service, they are more likely to
recommend the brand to others; this relation though, is weaker when
we talk about product satisfaction instead.

It is also important to understand that a client satisfied with the service will
not necessarily increase the frequency of his/her purchases.

roposal

1. Frequent buyer card: The card will be given to consumer whose

purchase exceeds 349 SEK. After each purchase of 349 SEK,
he/she will be awarded
an H&M stamp. After 5 stamps collected by the client, he/she
will receive
a 150 SEK ticket, to get the best fashion piece that fits
their style. By doing so, the brand will generate more sales from
those clients that in a way are loyal to
the brand but are not really frequent buyers (latent
buyers).

2. Data Base Generation: By interviewing customers, the brand

should get information on which customer has been a client for a long
time. This long-time customer, a true loyal, will be pampered in
special way. For each collection launched were artists or guest
designers will present their clothing line, this true loyal will receive an
invitation to the event, and will be able to purchase before anyone
else.
3. Catalog discount: Include special discounts on the catalog, for short
period while launching the new collections for each season. By doing
so we will be attracting non loyals and latent loyals.
a. All of all consumers should be attracted by the window layout,
as well as by the lines the catalog is announcing.
b. If something that is shown in the catalog is not in the store,
we, as retailers, should need to search in other stores to check
availability. If there is no product on stock, the client will
receive a special discount over other product. This will improve
the satisfaction in the service given to the customer.