Introduction
Mark Constantine (the managing director) and MO Constantine established Lush Retail Limited in 1994. Currently, the CEO of the company is Andrew Gerrie. It deals with both fresh and hand-made cosmetics such as soaps, which are mostly manufactured using ingredients that include fruits, vegetables, oils, honey, and wax, among others.
Lush Retail Limited has many branches that are located in the metropolitan areas of over 35 countries globally. The company does not use animal products as ingredients during the production of cosmetics. This essay elaborates on the company’s customer analysis strategies that enable its effective and efficient operations.
Customer Segmentation
The Lush enterprise has established many branches worldwide. It deals with both mails and retail stores that facilitate the purchasing of products. Its location within major town centers has significantly increased its client base. Walters, David, and June reveal that the company’s merchandise is mainly aimed at female customers who are above 18 years old (822). Most of these customers are either single or married and possess knowledge about the quality, value, and environmental awareness (Walters, David, and June 823).
The company also segments customers based on income and occupation. Most of its customers are either middle or high-income earners. However, the company also targets low-income earners who can afford their products (Walters, David, and June 822). Most of the customers that frequent the enterprise is well educated and conversant with issues such as knowledge about environmental preservation and sustainability that affect their lives directly or indirectly.
The company has developed a culture that does not support the killing of animals in search of raw materials. The educated clienteles have also enabled smooth conduction of the company’s business on online platforms using catalogs and running mail orders, among others.
Moreover, the company is aware of the kind of the prevailing generations, such as the ‘X and Y’ and baby boomers; hence, their lifestyles are also put into consideration. With reference to standards of living, Lush Retail Limited lays its emphasis on various ways of life such as survivors, strivers, and achievers who mainly fall in middle and upper social classes (Walters, David, and June 825).
Customer Behaviors
Lush retail limited is striving to embrace customization in an attempt to develop a customer-driven enterprise. A plethora of behaviors have been noted among the customers who frequent the company (Rafae 179). Such comportments include consultative customers who form collaborations to make consultations about the products in an attempt to ensure that they acquire what they require.
Some of the customers at the premise are also adoptive. In most cases, such customers require the products to perform in different ways under dynamic occasions. Therefore, the company is able to satisfy the needs of its consumers (Rafae, 179). It also provides a variety of presentations of the same products to customers who need to appreciate diversification.
Furthermore, the company also categorizes customer behavior according to their frequent use of products. In this case, there are customers who buy products on a daily basis, new users, and others who utilize them on special occasions such as holidays and weddings, among others. The rapidly growing branches of the company across the world correspond to the increased new users and sales (Rafae 206).
Customer loyalty to Lush Retail Limited
In the past decade, the company was almost varnishing due to inadequate customers who frequented the stores. Lately, the company has strived to establish over 400 stores worldwide. This achievement has arisen from improved customer loyalty because of the experience that they gain from the utilization of the products. Kumar and Denish reveal that the Lush Company has won consumer allegiance and retention through its implementation of favorable prices, quality products, and speed of delivery, among others (320).
Other factors that the company currently strives to put in place for loyalty include Omni-oriented channel commerce. This strategy involves the popup of new products that emphasize customer needs and a better experience. The eCommerce winners will focus on shopping experiences that are compelling. The workforce of the Lush Company is committed to excellence. As a result, they are determined to ensure enhanced customer satisfaction at all times.
To ensure the retention of consumers, the company constantly manufactures upscale products. This situation persuades customers to pay higher prices that increase profitability. As a result, most customers have become loyal to the company due to its excellent products and services.
Other activities that are accomplished by the Lush Company to win customer loyalty include the provision of products that have natural ingredients. Authentic brands that are tagged with pleasing values are also an important source of customer attraction. Moreover, the company strives to surpass customer expectations through the creation of humor alongside business activities (Kumar and Denish 322).
Another aspect that is used by the Lush Company to gain the loyalty from its customers is education on the usage of products that they offer to their customers. Most of the products are categorized into single consumable and care lines. Most of the staff and customers are also encouraged to offer ideas and positive critics concerning the products.
This situation has significantly enhanced its allegiance to the products. The physical appeal of the products such the colors, aromas, shapes, and humorous names appear lovely to the consumers; hence, winning their trusts has been easier (Kumar and Denish 323).
Customer Experience
One of the most factors that are implemented in a business to lure customers is the experience that is offered to them. It is always the primary objective of the Lush Company to provide a better atmosphere to customers in its various stores. The firm ensures that packaging is accomplished using biodegradable products, among others (Puccinelli et al. 18). The company also ensures that fresh products are available at fair prices. This situation is evidenced by customer appreciation that has been noted in the last one year.
Statuses of the customers are also put into consideration by locating the company’s branches at luxurious positions (Puccinelli et al. 22). This state of affairs further enhances advertisement of the various brands it produces. In addition, the Lush Company sees customer experience as an opportunity to beat its competitors due to the increased consumer experience on fresh, natural, and healthy goods.
Furthermore, easy-to-use merchandizes such as handmade soaps and creams, among others that have avocado as their ingredient has pulled the attention of many consumers. All these practices have resulted in customer satisfaction (Puccinelli et al. 25).
Conclusion
The essay has analyzed the Lush Company in relation to customer loyalty, behavior, experience, and segmentations. The company uses customer analysis to establish marketing plans. Inquiry into customer behavior and segmentation have also enabled the company to ensure that all their products and features are in tandem with their expectations. This situation has resulted in the effective segmentation of markets.
Works Cited
Kumar, Victor, and Denish Shah. “Building and sustaining< i> profitable customer loyalty for the 21st century.” Journal of retailing 80.4 (2004): 317-329.
Puccinelli, N., M., Goodstein, R.C., Grewal, D., Price, R., Raghubir, P., and Stewart D. “Customer experience management in retailing: understanding the buying process.” Journal of Retailing 85.1 (2009): 15-30.
Rafae, Anat. “Dress and behavior of customer contact employees: A framework for analysis.” Advances in services marketing and management 2 (1993): 175-211.
Walters, David, and June Buchanan. “The new economy, new opportunities, and new structures.” Management Decision 39.10 (2001): 818-834.