Customer Portfolio Analysis

Customer Portfolio Analysis is the first crucial step of CRM value chain. During this
step, UNIQLO needs to know their strategically significant customers (SSC). This step
classified customer into four categories such as high life-time value customers, high
volume customers, benchmark customers and inspiration customers.
To maintain its customer retention, UNIQLO offers E-member for its customers in order
to let customers enjoy the member benefits. The first benefit of E-member is customers
will receive a $5 welcome coupon after they registered as a member of UNIQLO.
Besides, it also provides customers a better value which is customer can receive a RM5
coupon with every purchase over RM50. Also, E-member will send the notification of
special offers to customers and let them be the first person to know about the special
offers (Appendix 1). First online purchase of UNIQLO also will giving free delivery fees.
Thus, this help to stimulate on customer purchase retention in UNIQLO store. However,
some of the high volume of customers are hardly to serve as they are costly due to the
reasons of UNIQLO need to everything is good before they served. Besides, when
UNIQLO collaborate with other company or designer, customers who purchased the
products act as a benchmark for UNIQLO. So that, it can strengthen the reputation of the
company. Inspiration customers are the customers whoever made their complaints to
UNIQLO on the services, products or employees’ attitude which can help the company to
make improvement from the complaint.
Customer intimacy
The second stage of CRM value chain is customer intimacy. This step is building a closer
relationship between a customer and an organization. To stay a close interaction with
customers, UNIQLO will send message to its members through email and notify their
members by using the apps when there is promotion, special offer and upcoming
collection. Also, UNIQLO also provide e-newsletter service to its customers. Once the
customers subscribe their e-newsletter they will receive RM10 coupon which can use in
their first online order (Appendix 2). Furthermore, UNIQLO used the data that customers
fill-up in the subscription to provide personalized news which included special offers,
collection launches and exciting new products. If customers are not happy with the E-
newsletter they also can unsubscribe by just filling their email address (Appendix 2).
Develop the network
Network development is the third stage of CRM value chain which consist of building
relationship with suppliers, employees, partners and stakeholder. To connect with its
customers and ensure it has delivered a better value to its customers, UNIQLO corporate
with TORAY INDUSTIRES which is leading global textile manufacturing in the joint
development of Heattech. The major function of Heattech that turns moisture into heat
and has air pockets in the fabric to retain that heat (UNIQLO, 2015). The new product of
them help on connecting UNIQLO customer closely and ensure they have delivered a
better value to the customers. Furthermore, UNIQLO also organized the “E-Member
Day” for their members which provide discount on limited products (Appendix 3). As
this can create customer satisfaction.
Value Proposition
Value proposition refer to how UNIQLO’s services and products deliver to satisfy their
customers with their innovation, unique features and benefits. By attracting the
customers, UNIQLO has providing its customers with new fabrics garments and unique
in-store environment.
UNIQLO has created AIRism, UV cut technologies to satisfy their customers with unique
features and benefit. AIRism is a soft fabric with quick-drying inner fabric which make
the customers felt light and soft to the skin even forgot there were wearing them. UV Cut
that use the material which can prevent about 90% of ultraviolet ray from reaching the
skin of the wearer. These innovative new fabrics help UNIQLO to attract their customers
and there are all branded and copyrighted which make their competitors hard to compete
with them (Fast Retailing, 2013).
Besides, UNIQLO also provide the services using its in-store environment. Through its
wide aisles, bright light, neatly stacked shelves and beautifully presented displays which
will let the customers have a comfortable and welcoming experience when they visit the
stores (MartinRoll, 2018). UNIQLO also provide digital screens in their store which
delivering the message to their customers the practical benefits of its fabrics and apparels.
This service helps to effectively communicate with their customers its brand philosophy
and being attracted to purchase in the stores (MartinRoll, 2018).
Managing the relationship
It is important to UNIQLO in managing a good relationship with their customers to make
sure their customers have a long-term relationship with the business. Customers can send
their feedback or enquires through social media such as Facebook, INSTAGRAM.
UNIQLO will answer to customers within few hours so they are able to satisfy their
customers and further boost up the customer’s satisfaction towards UNIQLO (Appendix
4). Also, UNIQLO also receives comments from their customers through email,
telephone, chat support and postcards. receives comments from customers via email,
telephone, chat support, postcards, and other channels. The company will share the
feedback with related department on weekly basis and the information will be used in
product development (Fast Retailing, 2019). UNIQLO also put the complaints from
customers at the highest priority to prevent any recurrence. In the UNIQLO UPDATE
website, there are certain improvement will be published which related to the customer
feedback and highlights products improved in response to customer feedback which
including the reason why the improvements must be made and what was the
improvement (Fast Retailing, 2019).
Supporting Activities
One of the supporting activities in CRM value chain is culture and leadership. The strong
company culture of UNIQLO is focusing on teamwork, innovation and customer
experience. UNIQLO is greatly encouraged their employees to provide suggestions as the
employees know more about their customers. Also, UNIQLO make sure the values and
goals are successfully translated into the processes of the business and measure exhibited
by the employees (MartinRoll, 2018). It also emphasis on the customer experience in the
retail store and micromanage the touch point of every customer. The third supporting
management is human resources in UNIQLO which refer to the person who interact with
customers. Staffs in stores were taught to use the six standard phrases when interacting
with customers to find the products they one which is “Did you find everything you were
looking for?” and welcoming the customers with “Welcome to UNIQLO” (MartinRoll,
2018). The last supporting activities is IT and data management. CRM is basically base
on the data and information collected. So that, UNIQLO encourage their customers to
sign up an online account as this will automatically insert the demographic data and the
purchase history of the customers to their system (Appendix 5) This enables UNIQLO to
create more benefits to the customers based on their preferences.
Conclusion
Through the process of CRM value chain which consist of 5 primary stages along with
the supporting conditions. The first step showed how UNIQLO differentiate its customers
into 4 categories and attracting the customers to register as their E-member by using 3
major benefits. Besides, UNIQLO also using online method to build a closer relationship
management with its members and using its E-letter by sending personalized news to the
subscriber. Furthermore, UNIQLO also amplify the important of the network
development with their suppliers, employees, stakeholders and partners and organized
some event to maintain the relationship with customers. Through the interaction with
each party, UNIQLO can delight the customer satisfaction. Moreover, UNIQLO provide
unique features, benefits and using its innovation to create new products and services to
attract more customers. To manage its customer, UNIQLO using various channel to show
its concern about the enquires and feedback from their customers. Lastly, the supporting
condition make UNIQLO acknowledge their customers in different aspects such as
satisfaction, preference and customers’ touch point.
Fast Retailing 2019, Pursuing Customer Satisfaction, viewed 28 July 2019,
<https://www.fastretailing.com/eng/sustainability/products/customers.html>
Fast Retailing 2013, HEATTECH Continues to Make A Difference in Customers' Everyday
Life, viewed 28 July
2019,<https://www.fastretailing.com/eng/group/news/1108251700.html>
UNIQLO 2015, Uniqlo Web News, viewed at 28 July 2019,
<http://www.uniqlo.com/sg/corp/pressrelease/2015/12/uniqlo_and_toray_announce_thir.
html>
Fast Retailing 2013, UNIQLO Launches AIRism as a Strategic Global Brand, viewed at
28 July 2019, <https://www.fastretailing.com/eng/group/news/1303191700.html>
MartinRoll 2018, Uniqlo: The Strategy Behind The Global Japanese Fast Fashion Retail
Brand, viewed 28 July 2019, <https://martinroll.com/resources/articles/strategy/uniqlo-
the-strategy-behind-the-global-japanese-fast-fashion-retail-brand/>

Appendix

Appendix 1

Appendix 2
Appendix 3
Appendix 4

Appendix 5