[Hua11.com Original] Undoubtedly, we've entered the mobile Internet era—a dynamic landscape with new models, innovative approaches, and a proliferation of apps. Our country leads the way, thriving in this digital environment.

As individuals, mobile Internet has bestowed unprecedented convenience upon us. However, as operators of flower shops and floral studios, we face hidden business risks. In this article, we'll delve into two critical aspects: "lossy service" (distinct from "paid service") and the 80/20 principle within the flower retail industry.

I. Uncontrollable Rising Operating Costs in Flower Retail

Across industries, customer groups fall into two categories: C-end and B-end. Let's focus on the C-end—our retail customers:

- C-end (Consumer End): These are our retail customers—the ones who purchase loose flowers and flower gifts regularly.

- B-end (Business End): This pertains to commercial transactions with enterprises, including services like commercial floral balloon arrangements and floral salons.

Why emphasize retail customers? Because they typically have lower net worth. Their characteristics include a large customer base with unclear demographics, low average transaction values, infrequent purchases, and limited added value.

These ambiguous attributes drive up our management and operating costs. Consider the following scenarios:

- Picky Customers: Lengthy communication with discerning customers may not always lead to closed deals.

- Flower Novices: Guiding curious newcomers to the world of flowers demands extra patience and time.

- Price Sensitivity: Adjusting flower combinations repeatedly to fit customers' acceptable price ranges.

When dealing with a large customer base, we must implement measures (such as "lossy service," explained below) to mitigate these costs.

It's worth noting that individuals with higher net worth—such as Hua11.com students and B-end customers—are beyond the scope of this discussion.

Now, let's explore potential solutions.

II. Implementing Lossy Service

What exactly is "lossy service"? In simple terms, it's a service standard that falls short of ensuring 100% customer satisfaction. Instead, it's discounted—perhaps only 90% or even just 80% of the full service. Initially, this might not sound ideal, but in the flower retail industry, it's a crucial skill (as I'll illustrate below).

Adopting lossy service requires conscious decision-making. You must clearly define what the 100% service standard entails and then, for specific reasons, intentionally lower that standard. The key? Stay within a controllable range. Aim to maintain the original transaction rate or only slightly reduce it while implementing lossy service. For instance, reducing service to 80% of the original but losing only 2% of customers falls within an acceptable range.

So, when should you consider lossy service?

Floral art is a craft that demands significant labor costs. For example, wrapping a bouquet of 11 roses takes an experienced florist 15 to 30 minutes or more—just for the wrapping process. Add in communication, confirmation, card writing, delivery, collection, receipt writing, bookkeeping, and more—the cumulative time far exceeds that initial estimate. Even flower shops using information systems find that operational processes can't be drastically simplified; if anything, they become more complex, although data accuracy improves.

During peak seasons like Valentine's Day, when orders surge, florists already stretched thin face even greater strain if they adhere to the original 100% service standard.

This is when lossy service becomes essential.

How can you implement it? Consider the following strategies, which minimize customer losses:

- Brief Cards: Limit card messages to 20 words or omit them altogether.

- Prepayment Only: Require full prepayment with no installments, credit cards, or cash accepted. Orders become non-cancellable after payment.

- Delivery Fees Not Included: Quote prices excluding delivery fees, which are standardized based on delivery distance. Self-pickup options are available.

And more...

If you're confident, explore additional methods:

- Adapt Wrapping Materials: Match wrapping paper flexibly based on the situation.

- Adjust Foliage Materials: Adapt foliage materials as needed.

- Standard Samples: Offer a limited selection of standard samples; avoid customization.

Among these, adopting standard samples follows a standardized, assembly-line production method. Well-known high-end floral retail brands often use this approach. These brands don't demand intricate craftsmanship from florists; proficiency in creating common standard products suffices. Due to streamlined operations, these brands command higher premiums.

Implementing lossy services allows you to maintain control over consumer behavior, reduce ineffective communication, save time, and increase output. However, remember that lossy services must never compromise consumers' core interests (e.g., maintaining work quality standards). Otherwise, customers will seek alternatives.

III. The 80/20 Rule

The preceding section explained lossy services in a large context. It is closely related to another concept: the 80/20 rule. Readers familiar with this article should already be acquainted with this rule. Specifically, it states:

- 20% of marketing channels bring 80% of customers.

- 20% of high-quality customers contribute 80% of profits.

- 20% of high-quality services meet 80% of customers' needs.

- 20% of effective time completes 80% of daily tasks.

And so forth. When adopting lossy services, it is crucial not to impact the core 20%. This subset significantly influences 80% of your overall success or failure.

IV. Risks Faced by Lossy Services and the 80/20 Rule in the Mobile Internet Era

This section is the crux of the entire article: a risk warning.

Have you noticed that regardless of whether it's lossy services or the 80/20 rule, there are always individuals whose needs cannot be fully met? What happens when these particular people care deeply about the "lossy" service but find it unsatisfactory?

Generally, they have two options:

1. Purchase once and refrain from future purchases: In this case, you lose the customer, but it's a manageable situation.

2. Leave negative feedback on a platform: If your store or product is listed on an app with a comment function, dissatisfied customers may leave "objective" comments, including unfavorable reviews or low ratings. Unfortunately, this situation is beyond your control.

For the latter scenario, you'll notice that many merchants resort to desperate measures, such as offering refunds in exchange for removing bad reviews or incentivizing five-star reviews. However, it's essential to recognize that being unable to meet 100% of a customer's needs doesn't necessarily make you a bad merchant.

Consumers, especially those from mobile Internet channels, often evaluate merchants based solely on scores and comments. This inherent flaw in platform apps can unfairly harm hardworking businesses.

While this issue extends beyond specific platforms, I trust that by reading this far, you're already aware of the associated risks.

For further insights, consider these two recommended articles:

1. Regarding the concept of mobile Internet: [Hua11.com · Marketing First Step Series 2] 3 must-learn practical marketing tips for affordable flower sales

2. Regarding the analysis of group buying apps: [Hua11.com · Marketing Advanced Series 2] Should I join group-buying APP platforms like Meituan? Understand paid vs. organic promotion

V. Not Necessarily Only Online Marketing

In response to the challenges posed by mobile Internet marketing, Hua11.com emphasizes that as business operators, we don't necessarily need an excessive number of online channels. However, we should still recognize the importance of traditional ground-based promotion methods.

Specifically, consider the following two articles:

1. [Hua11.com · Marketing First Step Series 3] Guide for novices to open offline markets: Learn risk-free promotion with examples and easy steps

 

 

This article provides practical guidance for beginners venturing into offline marketing. It offers examples, risk-free strategies, and easy-to-implement steps.

2. [Hua11.com · Marketing First Step Series 8] Why prioritize ground promotion for flower shops and studios? Isn't online marketing easier?

 

 

Explore why ground promotion (including cold calling) is essential for flower shops. Despite the convenience of online marketing, certain benefits can only be reaped through direct, offline efforts.

In conclusion, I encourage you to compile a comprehensive list of marketing channels—both online and offline. Evaluate their pros and cons, mitigate risks, and tailor your approach to your unique circumstances. Crafting an effective promotion plan for your flower shop or studio is the key to success.

And if you find yourself struggling, remember that Hua11.com might be able to assist you.

Copyright Statement:

This article is an original creation by Hua11.com and is included in the “How to Run a Flower Shop and Floral Studio” Ebook. The content of this article may be periodically updated and is initially published on the Hua11.com official website blog. You can find the article at this link: https://hua11.com/blog/4686.html.

Reproduction of this article is permitted, provided that it is reprinted in full and all copyright information is retained. Any form of plagiarism, whether partial or complete, is strictly prohibited. Legal action will be taken against violators.

The work titled “How to Run a Flower Shop and Floral Studio” is copyrighted by Hua11.com. Additionally, the “Practical Floral Training” model and the concept of “Light Decoration” are original creations by Hua11.com. The trademark “花艺意” is registered and protected by relevant national laws.