25/04/2016

Employeeengagementisakeytoleanmanufacturing

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Employeeengagementisakeytolean
manufacturing
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EveryoneisengagedinNicomatic(06/08/201518:44:46)
Toincreaseemployeesautonomy,thecompanysimplifiedtheorganizationand
appliedLeanmanufacturingwithitsownstyle.
Whenourcompanygrewup,wetendedtobemorestructuredandrigid.New
departmentswerecreatedandisolatedfromeachother,newprocesseswere
implemented,ourhierarchylayerswereextended,saysJulienNicollin,Nicomatic
CEO.Werealizedthatitcreatedalackofcommunicationanddecreasedour
reactivity.That'swhywedecidedtogivemoreflexibilitytoourworkforceby
reconsideringtheroleofmanagementasfacilitatorsandnotcontrollers.Our

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Employeeengagementisakey
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Accordingtohim,thisleadstoselfimprovementoftheorganization.
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Wedon'tdependon10managerstoimprovethings,wehave230employees

doingongoingimprovementeachdaybythemselves,emphasizesAurlie
Publishapost
Dujardin,HRManagerinFrance.
Nicomaticcustomersareatthecoreofthecompany,withperiodictestimonials
givenduringlunchandlearnsessionswhereweinviteclientsto
explaintoallemployeestheirapplications,constraintsandneeds.

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Bethefirsttocommentandstarttheconversation!

TheMandrakeApproachto
Governance
SantoshDesai

SnehamoyMukherjee
DataScience&AnalyticsLeader,VisitingFacultyofBusinessAnalyticsatnicheB'
SchoolsinIndia

UtterlyButterlyFoolicioustake
onadvertising

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AnantRangaswami

Makingsenseofhyperfunded
startupvaluations
KashyapDeorah

Starttoupskillifyoureunsure
ofyourstartup
GeraldJaideep

Howtousedatasciencetogrowyour
restaurant/cafebusiness?
Apr22,2016

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IdealtimeforapplyingandDatasciencetoRestaurantBusinesses:The
restaurantbusinessinIndia,nay,theentireworldhasbeenahappyhunting
groundformanyentrepreneurs,bigorsmall.Thesectorisstillseeinghigh
growthandahugeamountofinvestments,withnewchainsopeningatarapid

BrandingBeyondStorytelling
SaurabhSharma

pace.Forsomeoftheolderplayersthough,thetimehascometoconsolidatetheir
businessesand/orexpand.Thisrequiressystematicmanagementandoversight

WhydoesAndhraoutperform
BiharintheIITJEEexams?

toensureasmoothtransitionsothatthebasicfundamentalsonwhichtheir
businesseshavebeenbuiltisnotscarifiedatthealtarofgrowth.Thisistheideal

SubhashChandra

timeforembeddingAnalyticsintotheireverydaybusinessprocesses.

APracticalGuideto
Entrepreneurship

HowcanAnalyticsincreaserevenues?ThequestionthatmostRestaurant

RakeshAaroraa

ownerswouldaskishowAnalyticsisgoingtopositivelyimpacttheirrevenues.
TherearemanyindirectwaysinwhichAnalyticscanhelprestaurantsmakemore

WhatPMModicanlearnfrom
CMModi?
RiteshKumarSingh

money,butforthepurposeofthisdiscussion,wewillconcentrateonlyonthe
directones:
AHelpsyouunderstandyourcustomers
TripSegmentationhelpstounderstandwhatkindofmealsdocustomers
cometoyourrestaurantforyoumightsurprisedthatalargenumberofyour
customersmaybebuyingonlyoneitem(solotrip),somemaybeonadinner
tripwhilestillothersareonapuredrinkingbinge
Visitpatternsdifferenttypesofcustomersvisityourcafeatdifferenttimes
ofthedayhence,menudifferentiationishencenecessaryfordifferentday
partstoboostyourbusiness

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Customizingoffersfordifferentpartsofthedayisaneffectivedifferentiating
strategy.Customersneedtobeledtobelievethattheyshouldordercertainkinds
ofmealsatcertaintimesoftheday,eventhoughyoumaybehavinganalltime
favouritemealliketheEnglishBreakfastrunningallday.
Runningabusinessisalsoaboutconservingcostswhenyourdatarevealsthat
yourrestaurantisnotdoingbusinessatall,ateithertheearlyhoursofthe
openingorclosertoyourclosinghours,youshouldthinkofchangingthetimings
thiswillreduceyourelectricitycosts,reducefatigueofemployeesetc.
BIncreasetheshareofwalletofexistingcustomersWhereisthe
LoyaltyStrategy?
Understandwhatyourcustomerslikeandpersonalizeoffersforthem
Getyourcustomertovisityourrestaurantonemoretimeandbuyonemore
meal
Yourloyalcustomersareyourbiggestbrand
CRemovingslowmovingitemsfromyourmenuWhenyouhavealong
menucard,itisimportanttoanalyzewhatpeopleareconsumingandwhatthey
arenot
DPricingStrategy
Identifyitemswhichareconsumedbypricesensitivecustomers
Identifyitemswhichareconsumedbyupmarketcustomers
Undertakepricingtrialstocheckpricesensitivityofcustomerstodifferent
menuitems
EMenuMixsolutionWhichitemsboughttogethercontributetomaximum
sales?Createcombinationsofsuchitemsandofferdiscountstodriveupsalesand
productivity.
Letusnowlookattheabovementionedaspectsingreaterdetail.
AUnderstandyourcustomers

Themostimportantaspectofanybusinessistheabilitytounderstandyour
customers.Ifyouknowyourcustomerswell,whattheybuy,whentheybuy,how
theybuyetc.,halfyourjobisdone.Whenyourbusinessissmallandyour
clienteleislimited,itiseasytorememberyourcustomersatapersonallevel,
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oftenknowingwhattheirfavouriteordersare.But,whenyourorganizationgains
scaleanditisdifficulttoevenrecognizethembyfaceitisimportantnottolose
trackofthatveryattributewhichhelpedyouestablishyourbusinessinthefirst
placeyourabilitytounderstandyourcustomers!Whenyouhavemorethanone
restaurant,thejobbecomesevenmoredifficult.Thatiswhyyouneedtoharness
thepowerofdata.Butbeforeyoudothat,youmustdevisemechanismstocollect
thedataonyourcustomers.Ifyoudonothaveamechanismtocollectdatathat
identifiesyourrepeatcustomersdontloseheart.Youcanstilldoalotby
analyzingthePOS(PointofSale)data.
UnderstandCustomerBehaviour
Understandingcustomerbehaviourisagoodproxytounderstandingyour
customers.Whenyouhavehundredsofthousandsofcustomers,ordering
differentitemsfromyourmenucards,itbecomesimperativeforyoutolookat
groupsofcustomerstounderstandtheirconsumptionbehaviour.Thedatafrom
yourPOSsystemscanbeanalyzedtocomeupwithsegmentsbasedondifferent
kindsofconsumptionbehaviourofpeople.Oneofthemostpopular
segmentationsusedinAnalyticsinrestaurantbusinessesistheTrip
Segmentation.
Hereisahypotheticalexampleofwhatdifferentkindsoftripsegmentsthatcan
bethereinarestaurantbusinessandhowtheycanbeusedwithtremendous
impactonthebusiness.

Intheaboveexampleoneisabletoanalyzethedataandcomeupwiththese
segmentswhichsplitthepopulationintomeaningfulsegments.Once,the
segmentshavebeenidentifiedandprofiled,thenextstepistodevisestrategiesto
tapeachofthesegmentsforincreasingrevenues.

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Letuspickuponesegmentforfurtheringourdiscussiononthis:TheSoloTrip
Segment.Thissegmentprovidesopportunityforincreasingsaleswithabundled
offering.Thiscanbedonebyidentifyingthemostpopularcombinationsthatare
orderedbytherestofthesegmentsalongwiththemostpopularitemsbeing
orderedbythethissegment.Thenextstepistocomeupwithapromotion,
offeringcoupleofitemstogetherasabundle/combo.Thiswillhelpincreasesales
andcoaxthesoloitembuyerstoorderanotherpopularitemfromthemenu.
DistributionofsegmentsthroughoutthedayByplottingthesegments
acrossvarioustimesoftheday,youmaybesurprisedtofindthatthepenetration
ofcertainkindsofsegmentsmaybemoreincertaindaypartsthaninothers.This
providesagreatopportunityfordifferentiatedoffering/promotionsindifferent
dayparts,dependingonthekindofcustomerscomingtoyourstore.Itwillalso
helpinkitchenmanagementbetter,becauseyouwouldbeawareofwhatkindof
orderstoexpectatdifferentdayparts.

Intheabovehypotheticalexample,theoccurrenceofsolotripsismaximum
between15:00to18:00hoursandistheperfecttimefortherestaurantto
promotecomboofferswiththemostpopularlysoldsoloitems.
Dashboards:Measuringyourbusinessrealtime
Wemayhaveallheardaboutthepopularityofmanagementdashboardsand
maybewonderingwhatusetheymighthaveintherunningofrestaurants.Onthe
contrary,adashboardforarestaurantisoneofthemostpowerfultoolsthatan
ownerofarestaurantcanhave.TheManagementdashboardfortheowner/top
managementofarestaurantchainwillhelphimgetanimmediatesnapshotview
ofthebusinessinrealtime.Someoftheveryusefulmetriceswouldbe:
AverageSalesperchainperday/perweek/permonth/perquarter/per
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annum
Likeforlikesalesperchainacrossweeks/months/quarters/year
Averagemenuitemssoldperday/week/month/year
Categorieswithmaximumsalesinaparticularday/week/month/year
Menuitemswithinlargercategoryheadswithmaximumandminimumsales
Costofgoodssoldforeachchainonadaily/weekly/monthly/yearlybasis
Costofrawmaterialsunderdifferentheadsonadaily/weekly/monthlybasis
Performanceofchainsacrossdifferentsegments
Percentageofrepeatvisitsofcustomersonaweekly/monthly/yearlybasis
Revenuefromeachsegmentofcustomersdaily/weekly/monthly
Topperformingchains
Poorperformingchains
Shareofrevenuefromtopperformingchains
Shareofrevenuefrombottomperformingchains
Whendoyourdifferentchainsgetthemosttraffic?
Identifypeakhoursinsaleswhichwillhelpinstaffingdecisions
Whichchainsaregettingmoretrafficandwhichchainsarenot?
Identifywhichcategoriesareperformingpoorlyandwhere?
Identifyavailability/outofstockissuesatchains,atdifferenttimesoftheday
Whatarethedriversofsuccessofcertainproductsandcertainstores?
Identifythedrivingfactorsbehindtheperformanceofyourchains.E.g.are
increasedsalesduetomorecustomersorthesamecustomerseatingmore?

Anexampleofadashboard

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LoyaltyStrategy
Forabusinesswithaveryhighprobabilityofrepeatcustomers,itisinterestingto
notethatveryfewrestaurantbusinessesinIndiahavealoyaltystrategyinplace.
Havingaloyaltystrategydoesntmeanimplementingacashheavyloyalty
program,repletewithplasticcardsandheavydiscounting.
Aloyaltystrategymeans:
1.Havingtheabilitytotrackyourrepeat/loyalcustomersineachvisit:which
canbedonethroughsimplemethodslikecapturingtheirmobilenumbers
whilebookingaseat,whileprocessingtheirorders/payments
2.Designingsimpleandeasyrewardmechanismstorewardthecustomerto
showhimthatheisvalued
3.Havingacontinuousandopencommunicationchannelinplacewithaloyal
customer,incentivisinghimtomakemorefrequenttripsand
buying/orderingmoreitemsonthemenuoneachvisit.
4.Buildingapersonaltouchwithacustomersothathehasatopofthemind
recallforyourrestaurant
5.Understandingthebuyinghabitsofyourcustomersothatyouknowhowyou
couldprovidemorevaluetohiseatingexperience.
1.Forexample,ifyouknowthefavouritewineofyourcustomerandhave
thewaiteraskhimifhewishestohavethesame,itcreatesanimmediate
connectofapersonalnaturewhichislonglasting
2.Ifyouknowthatyourloyalcustomerlikesastarter(sayspicy
mushrooms)whichhehasorderedonquiteafewoccasionsandyou
empoweryourwaiterwiththatinformationaswellastheauthorityto
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providethatasafreestarter,youwillhavewonacustomerforalifetime
3.Theseelementsofsurpriseanddelightrewardsforcustomershelps
buildahugeelementofanticipationforthenextvisit
4.Thesurpriseanddelightrewardprogramsinvolvelowcosts,butleadto
bigimpactoncustomerdelight.Italsocreatesanelementofsuspensein
themindsofthecustomerswholookforwardtothenextrewardcoming
theirwayandtriggersthenextvisit.
PricingStrategy
Itisimportanttocarryoutawellthoughtoutpricingstrategyinyourchain.You
shouldincreaseprices,butinaverystrategicmannerandbymeasuringthe
impactofthepricechanges.Therearetwophasesofthepricingstrategywhich
arecritical.Oneisthepreincreaseperiodwhenyoudeterminetheproductsfor
whichyouaregoingtochangepricesandtheotheristhepostpricechangeperiod
whereyouneedtomeasuretheimpactofthepricechangesonthecustomer
buyingbehaviour.
Activities:
Identifyingmenuitemsforwhichpriceshoulddecrease
Identifyingmenuitemsforwhichpriceshouldincrease
Identifyingmenuitemsforwhichpriceshouldnotbechanged

Thesimplediagramaboveexemplifieshowchangesinpricehaveaffected
changesinrevenue.

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Ittellsusinsimpletermsthatweshouldincreasethepriceofliquoritemsas
inspiteofincreasingprice,therevenuealsoincreases.
Weshouldnotincreasethepriceofstartersasthepriceincreasehad
impactedtherevenuenegatively
Priceofsandwichescanbedecreasedasithashadapositiveimpacton
revenues
Decreasingthepriceofsoupshadacounterintuitiveeffectitactually
decreasedrevenues.Soweshouldholdthepriceforsoups.
Thegistofthelearningfromtheaboveisasbelow:
Identifywhichitemsareconsumedbypricesensitivecustomerslowor
marginalincreaseinprice
Identifywhichitemsareconsumedbyupmarketconsumerspricescanbe
increasedwithoutimpactingsales
IntroducePricingtrialstocheckpricesensitivityofcustomerstodifferent
menuitems
MenuMixSolution:
Thefamousobservationthatbeerbottlesandnappieswhenkeptadjacenttoeach
other,ledtoincreasedsalesinretailstores,introducedanewconceptofproduct
bundling/adjacencytotheworldofRetail.Inthebusinessofrestaurants,the
closestcorollaryisthatofmenumix.
Whenyoufindmealsconsistingofburgers,friesandcokearebeingservedto
youatdiscountedprice,doesntmeanthatMcDonaldsistryingtopushcokeinto
yourmenu.Itmeansthattheyarebeingcustomerfirstandhaveobservedthat
thisoneofthemostpopularcombinationsthatpeopleusuallyorderandthey
haveinstitutionalizeditforthebenefitofcustomers,efficientcustomerservice
(yousavetimeinsteadoforderingindividualitems)andaboveallitdrives
revenueascustomersseeaninherentvalueinthemealsastheygetsomething
elseatalowerpricethanwhattheywouldotherwisehavetopay.
Similarlyinrestaurants,menumixshouldbeanalyzedandthemostpopular
mealsshouldbebundledtogetherandofferedtocustomersatalowerpriceto
incentivizethemtobuytheirfavouritemeals.Thiswillincreaseloyaltyof
customerstotherestaurant,apartfromdrivingmorerepeatvisitsfromthe
customerswhowouldliketocomebackfortheirfavouritemealsatreduced
prices.Themenumixshouldonlybedoneforthemostpopularmealsandthere
shouldonlybeafewcombosonoffer,elseitwillbecomecomplicatedandmake
thecustomersconfused

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Conclusion:
Thereisabigopportunitywaitingtobeutilizedbythemoreentrepreneurialand
innovativerestaurantowners.Whoevertakestheleadwillwin.Soon,therewillbe
nootheroptionbuttoinnovateanddevisestrategies,keepingthecustomeratthe
heartofallyourdecisionmaking.Therateatwhichthisspaceisgrowing,itwill
bedifficultforlaggardstosurvive.Analyticsprovidestheonlysolutiontoensure
scalability,efficiency,keystocustomersatisfactionandaboveall,increased
revenues.

Analytics, DataScience, RestaurantManagement

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RohanAnand

2nd

SeniorAssociateDataScientistatDelhivery
Manyusefultechniques.Showshowevenbasicanalyticscanhelp.It
shouldbesimilaratsalonsaswell.
IthinkA/Btestingshouldbemuchmorefrequentintheofflineworldbutina
lesspredictableway.Itmaybearoundpricing,oraroundfreesamples,or
aroundalargerportion,freedrinkwhatever.
Restaurantsshoulddoitinalessformalway(andoffthemenu)andmake
itlesspredictablebecausetheobjectiveisnottosellmoreatlessprofitbut
togainmoreoverallprofitandhappycustomers.
Beverycarefultointroducea'onthemenu'promotionwhichis'highly
subsidised'fromnormalratesandyouintendto'completely'discontinueit
later.Itshouldnotbe,say50%,ofthesumofthepriceoftheindividual
items.
I'vebeentorestaurantsolelyforthereasonofunlimitedrefillsoncokeeven
thoughIknowI'danywayspendsome1000bucksoverthereandnottake
therefillmorethantwiceatmax.Sotheirrationalpsychologyanglecan
alsobeexploitedalongsidetherationalanalysis:)
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2daysago

SnehamoyMukherjeeandJosAntonioCabreraMartnez

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AnindyaaGhosh
MarketingCommunicationsProfessionallEmailMarketingSpecialist

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3MistakestoKillYourEmailMarketing!
Apr25,2016

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Theresindeedquitealotofmoneyonline,withoutsecondthoughts.Though
gettingevenafairshareofthatmightnotbeaseasyasitsoundsonthesurface.
Havinganonlinepresencemightbethesteppingstoneforyoubutyouarenot
goinganywherewithoutawellthoughtemailmarketingplan.
Hereare3fatalmistakesoftenperceivedtobetruethatcouldactuallysinkthe
emailmarketingshipforyou.
1.Believe"SocialMediaisthebestformofMarketing":Theres
absolutelynodoubtaboutthefactthatsocialmediaiscriticalforgrowing
yourbusiness.Buthey,thinkforamoment.
Itmightseemagreatwaytoorganicallygrowyouraudience,butdidwejust
forgetthatamajorityofallsocialplatformstodayarepubliclytraded
companies.Theorganicreachofsocialmediatodayisrelativelylowand
nothingshortofpaidadvertisingworksifyoudesiretoreachouttoagreater
audience.

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But,theresoneformofmarketingthathasntchangedovertheyears.It
mighthaveevolvedandgrownallthemorecompetitiveandchallenging,but
definitelynotwitnessedparadigmshifts.And,thatisEmailMarketing.If
someoneissignedupforyouremaillist,theycanseeyouremailseverytime
yousendthemout.Socialmediamightconnectyouraudience,butjust
becausetheyareconnecteddoesnotnecessarilymeantheyareapartofyour
community.Yourwebsiteandemaillistontheotherhandareyour
community.
Adecisivefactorliesintheblatanttruththatsalesaremorethanoften
closedthroughemails,butneverquitesoonsocialmedia!
2.Addanyoneyou'veinteractedwithonlinetoyouremaillist:

Anoldschoolstrategythatyoushouldprobablyrunfromandnotrunto!The
strategysuggestsyouaddanyoneyou'veinteractedwithonline,bethatvia
mailsorevenLinkedIntoyouremaillist.Theconceptofimplied
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permissionisaterribleadviceandamorethanoftenaturnoffformost.
Thepeopleonyouremaillistshouldbepeoplewhochoosetosignupnot
anyrandompersonyoudecidedshouldbeonyourlist.Peopleprefertobuy
fromsomeonetheyknow,likeandtrust.
Theconceptofimpliedpermissioncomesinasanuninvitedpresence
waytoointriguingandshady!Notexactlyhowyouwouldhavelikedit.
3.Trytoreachpeoplewhoarentinterested:

Franklyspeaking,gonearethedayswhencoldcalls(orevenemails)and
doortodoorvisitswereafairwaytogetbusiness.
Ifsomeonecomesandtellsyou,Justtryhardertoreachthosewhohavent
expressedanyinterest,bearwithhisignorancebutdontbelievehim.Stop
wastingyourtimeandeffortstryingtoreachpeoplewhoarentinterested.
Itsawiserwaytogrowyourbusinessspendingthattimegrowingyour
audiencethatprovidethemwithareasonastowhytheyshoulddobusiness
withyou.

ThedigitalmarketingspacecanbetheWild
West.Dontgetcaughtupinwhatscommon.
Tostandout,youhavetobedifferent.
KimanziConstable

EmailMarketing, MarketingStrategy, EmailStrategy

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Writtenby

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