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New service management outlook
​“Relationship-focused” marketing management

Now that we have overcome the coronavirus pandemic and tourism demand is once again gaining momentum, many business owners are suffering from a lack of human capital, both qualitatively and quantitatively. However, what is important is to view this current situation as a valuable opportunity to leap forward into a truly strong industry, and to conduct an appropriate analysis of the current situation. It can be said that the strategy that will be effective in the future is to shift from "market expansion principle" to "market deepening", that is, to emphasize relationships with customers.

So what exactly should we do?

Intuitively speaking, the customers who use your hotel or restaurant should be somebody (people who recognize each other), not anybody (unspecified number of people who cannot see their faces). In order to become a company that survives in an environment where the market is mature and there are many competitors, it is necessary to make full use of the management resources that the company has in order to fulfill the wishes of its customers. By doing so, you will be "chosen" by your customers.

Avoiding contact with people to prevent infection requires measures such as reducing the number of seats in restaurants and the number of guest rooms sold in hotels, which means a decrease in profits per square meter of facilities.

In order to achieve sustainable growth of a company under this circumstance, it is necessary to increase the amount of consumption. Revenue = number of customers x unit price, so if the number of customers cannot be expected, there is no choice but to raise the unit price. It's simple. However, the problem is the act of raising only the amount of money without changing the content or quality of the service. Such behavior will not only be questioned by business ethics, but will also make it impossible to acquire, retain and nurture customers.
And, unfortunately, the act of making and selling what a company wants to sell is becoming obsolete, even if it is a product or service that can explain why it is expensive.

Therefore, an effective strategy is to cherish the customers who have long-term relationships throughout their lives and accumulate the total amount of consumption. Actually, this is not new, and there is something that leads to Japan's unique business path that we Japanese have inherited. I feel that I can overcome this difficulty by analyzing it scientifically and putting it into practice.


Tetsuo Kuboyama

Founder & CEO

The PGH Enterprise Co., Ltd.

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