CEO blog(en)

Customer defection and social network marketing

Written by Akira Tsuchiya(en) | Feb 4, 2025 7:59:41 AM

Famous shops from the past.
Shop popular on social networking sites.
A shop with a long line of customers.

I have been in Okinawa since the end of January.
To see, plan and MTG various projects for overseas.

In Okinawa, Okinawa soba is the most famous noodle dish.
There is a famous restaurant and we decided to go there.

Inside the restaurant, there are coloured papers with the signatures of people who seem to be famous.
This is a common pattern.

More than half of the customers are inbound Asian foreigners.
No doubt, they came to the shop because they recognised it on social networking sites.

Marketing is said to have changed dramatically with social networking.
It is an inexpensive way to make your shop known to customers without the need for TV commercials and the like.

It is possible to reach everyone, or a targeted segment of people with narrowly defined tastes and interests.
And it's not a matter of ‘a few shots with a bad gun’, but simply publishing and showing your shop without any action. If there is interest, everyone will see it.

Yes, you don't have to take action one by one, you just post it on the social networking infrastructure.

You don't have to take individual action, you just post it on the social networking infrastructure, either individually or with influencers.
In Asia, more than in Japan, social networking seems to have changed the marketing approach for all industries.

However, spreading awareness to a lot of people is a good thing, but what is the strategy afterwards?

Is the situation where a lot of first-time customers are coming in and boosting sales a favourable situation for the company, or even for the shop?
It's like slash-and-burn agriculture.
For now, just skim the surface and scoop up customers.
Over and over again, from one location to another, they are scooped up.

We don't even know what those customers think of the shop.
The shop just wants to increase the number of customers, so they just keep scooping them up.

This is the opposite approach to creating customers who are satisfied with the shop, the food and the service and want to come back.

The purpose of a company is to ‘create customers.’
P.F. Drucker put it this way.

Whether you keep scooping up first-time customers or keep creating repeat customers
The creation of a customer is not the same as the creation of a customer.

Drucker's definition of creating a customer is, in the original
create a customer.

I can't help but think that he is saying that instead of looking at the number of customers in the plural, we should look at the number of faces in the singular.

If one and the same customer visits a shop twice, the number of customers is two, but the number of faces is one.

Quiet,

SNS.
A very good tool to make a lot of people aware at once.
However, it is important to remember that both good and bad aspects can be recognised.

The aforementioned Okinawa soba restaurant.

The person who was born in Okinawa, has been a fan of this restaurant for a long time and brought me to this restaurant
The person who brought me to this restaurant said.
I wonder if they will ever come back...’

This. This. 
This is the end, isn't it?

SNS is just an advertising tool, not a saviour for shops.

If your business is a restaurant, the primary quality of your restaurant is definitely ‘taste’,
This is followed by ‘atmosphere’ (the hardware of the shop's interior and the appearance of the products), ‘service’ (the software of hospitality), and
The price is a skewering of all these factors.

No matter how many people are notified, or how famous you become on social networking sites, and how many customers come to your shop and how many customers you have, there is no guarantee that it will continue.

It all depends on the shop. It depends on the level of primary quality of the shop.

A shop's sales can go up or down.
Even if the shop gets buzz on social networking sites, attracts customers and sales go up in an instant,
The customer's evaluation of the shop will not immediately affect the shop's sales.

The standard span of visits of customers to the shop is very important.
If the span of visits to a shop is one month, the customer's evaluation will only appear in sales after one month, and the customer will be satisfied and visit the shop next time after one month, so it is only then that we can finally understand. If you take moving averages, etc., you can really see the evaluation. The reverse is also true,

The reverse is also true: even if customer satisfaction with the shop is low and more and more customers decide not to come back, it is only after one month that sales start to fall.
The sales drop little by little, and you realise afterwards that there is nothing you can do about it.

Many shops may say that sales continue to be generated by social networking and the shop is dying.

Create a really good shop.
Keep creating customers.
Create a Buddha and put a soul into it.

It takes more than a day to build a good shop that will last for a long time.


Assentia Holdings, Inc
CEO  Akira Tsuchiya