Enhancing Customer Satisfaction through Strategic IT Improvements

Photo by Blake Wisz on Unsplash

Gratiae operates in a competitive retail environment in Tokyo, specializing in cosmetics under the brand Gratiae and running exclusive Salt Spas in key locations like Ginza and Shinjuku. The clientele primarily comprises career women aged between 25 and 50, who expect high standards of service and product quality. During my tenure as CIO, I observed several operational shortcomings that not only strained our relationship with customers but also hindered our growth in the digital-first consumer landscape.

This paper examines critical operational challenges at Gratiae Japan, a retailer of cosmetics brands called Gratiae and a provider of spa services in Tokyo, Japan, where I served as the Chief Information Officer (CIO). The lack of integrated systems and digital marketing tools has significantly impacted the company’s responsiveness, productivity, and overall quality of service, leading to customer dissatisfaction. This analysis details the issues encountered, their implications on customer satisfaction, and proposes strategic IT solutions to enhance operational efficiency and customer engagement.

Organization Overview

Gratiae, a prominent retailer of the Israeli cosmetic brand of the same name, is situated in the bustling urban setting of Tokyo, Japan. As the Chief Information Officer (CIO) at Gratiae, my role has been instrumental in molding the technological framework of the organization. My responsibilities encompass developing and implementing comprehensive technology strategies, overseeing the IT operations, and ensuring that all technological integrations across the company’s platforms are seamless and efficient.

Products and Services

Gratiae offers a dual range of products and services tailored specifically to its clientele. The product line consists of high-end cosmetics under the Gratiae brand, renowned for their quality and efficacy. In addition to these cosmetic products, Gratiae operates four Salt Spas located in Japan’s prime urban locations: Ginza, Omotesando, Shinjuku, and Yokohama. These spas provide exclusive services that complement the cosmetic products, offering holistic beauty and wellness solutions to our customers.

Customer Base

Our primary customer base comprises career-oriented women in Tokyo, aged approximately 25 to 50 years. This demographic accounts for 90% of our clientele and is characterized by their discerning tastes and high expectations for product quality and customer service. Understanding the needs and preferences of this group has been critical in shaping our marketing strategies and service offerings.

Key Operational Areas

• Customer Database Management: Maintaining an accurate and comprehensive database of customer details and preferences. This database supports personalized marketing and efficient service delivery.
• Workflow Optimization: Ensuring that all internal processes from product stocking to customer service are streamlined and efficient. This is vital to maintain the high standards expected by our customers.
• Order Management System: Handling the logistics of order placement, processing, and delivery. This system is crucial for ensuring that our products and services are available to the customer in a timely and satisfactory manner.
• Customer Relationship Management (CRM): Developing and maintaining robust relationships with customers through effective communication and prompt service. A well-integrated CRM system is essential for tracking customer interactions, managing feedback, and resolving complaints efficiently.

Operational Challenges and Their Impact on Customer Satisfaction

1. Manual Processes in Spa Booking and Customer Management: At Gratiae, the booking and customer management processes for our Salt Spa services were predominantly manual. Customers had to make appointments via LINE or phone calls, and staff manually managed these bookings. This system often led to errors, such as double bookings or missed appointments, due to human oversight. The lack of a centralized database for customer interactions further complicated the issue, leading to inefficiencies and customer frustrations when they had to repeat information.
2. Absence of Digital Marketing: Despite the significant presence of digital platforms in our customers’ lives, Gratiae had not yet adopted digital marketing strategies. This oversight meant we were not effectively reaching potential customers nor engaging our current customer base with updates, promotions, or personalized marketing content.
3. Underutilized Social Media: Our social media efforts were sporadic and unstructured, which did not suit the dynamic nature of our industry. With the majority of our target audience actively using platforms like Instagram, our minimal presence and engagement on this channel resulted in missed opportunities for brand promotion and customer interaction.
4. Lack of a Formal Complaint Management System: Customer feedback and complaints were handled on an ad-hoc basis without a formal system in place, which sometimes led to unresolved issues and dissatisfied customers. This lack of structure not only hindered our ability to address specific complaints effectively but also impacted our overall customer relationship management and retention strategies.

Strategies for Improvement

To address these challenges, I propose the following strategic improvements:

1. Implementation of an Integrated CRM System: Adopting a comprehensive Customer Relationship Management (CRM) system would centralize customer data, automate booking processes, and streamline customer communications. Agnihotri et al. (2016) emphasize the significance of integrated CRM systems in enhancing customer relationships by providing real-time data and customer insights, which are crucial for improving responsiveness and personalization in customer service.
2. Development of a Digital Marketing Strategy: Initiating a robust digital marketing strategy would enable Gratiae to reach and engage customers more effectively. Through targeted advertising, search engine optimization, and content marketing, we can attract new customers and retain existing ones by providing them with valuable and relevant information (Chaffey & Ellis-Chadwick, 2019).
3. Active Social Media Management: By employing a dedicated social media team, we can enhance our presence on platforms favored by our customers. Tuten and Solomon (2017) discuss the strategic importance of active social media management, noting that consistent, engaging, and interactive social media practices can significantly enhance brand presence and customer interaction.
4. Establishment of a Digital Feedback and Complaint System: Implementing a digital system to manage customer feedback and complaints would allow us to address issues promptly and systematically, improving customer satisfaction and loyalty (Johnston, 2001).

Conclusion

The integration of advanced IT solutions into Gratiae’s operational framework is crucial for addressing the current inefficiencies and enhancing overall customer satisfaction. As the CIO, my role in leading these technology-driven initiatives is pivotal in transforming Gratiae into a digitally proficient and customer-centric organization. These strategic improvements are not only essential for staying competitive but are also critical in fostering a loyal customer base through improved service quality and engagement.

References

Agnihotri, R., Dingus, R., Hu, M. Y., & Krush, M. T. (2016). Social media: Influencing customer satisfaction in B2B sales. Industrial Marketing Management, 53, 172–180.

Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK.

Johnston, R. (2001). Linking complaint management to profit. International Journal of Service Industry Management, 12(1), 60–69.

Tuten, T. L., & Solomon, M. R. (2017). Social media marketing. Sage.

Note:
This article is written based on University of The People Managing Project and Program (BUS 5611) written assignment by Fristy Tania Sato in May 2024