---
title: "Bestore's Mo Jun: Digital Operations, Earn More Than Competitors!"
description: "Mo Jun, from Bestore, shares how the company achieved double-digit growth through digital operations, emphasizing understanding and loyalty to customers, and detailing their omnichannel marketing strategies and digital tool implementation."
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published: "2019-05-18"
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# Bestore's Mo Jun: Digital Operations, Earn More Than Competitors!

> Mo Jun, from Bestore, shares how the company achieved double-digit growth through digital operations, emphasizing understanding and loyalty to customers, and detailing their omnichannel marketing strategies and digital tool implementation.

Source: Chaos University (ID: hundun-university)
Author: Mo Jun
**Many companies hope customers are loyal to them, but few consider whether they are loyal to customers. Understanding a person is true loyalty to them.**
**——Mo Jun**
Whether you are a 3-year-old child or an 80-year-old elder, you can enjoy the sweet and soft taste of snacks, leaving a lingering fragrance. Eat snacks when heartbroken, to say goodbye to your ex; eat snacks when promoted, it's worth celebrating; eat snacks when working overtime, to revive fully. Have you ever wondered why sometimes you're not hungry but really want to eat snacks?
My name is Mo Jun. I joined Bestore in 2014, mainly responsible for marketing, sales, products, HR, and organization. In this week's course, I will share Bestore's successful experience in digital operations to drive omnichannel growth.
From the opening of its first store in 2006 to expansion to over 2,000 stores by 2016, Bestore was constrained by rising operating and labor costs, facing single-digit growth in store revenue. After two years of digital transformation, Bestore returned to double-digit growth (25%) and maintained a high repurchase rate (70%). So, how did Bestore do it?
**Digital Operations: Earn More Than Competitors**
First, improve the output of each business unit, returning retail to the essence of "whether you can make more money than others," and operate more proactively. **As a traditional retail business, Bestore's core business is stores. How to move from inside the store to outside, proactively understand, satisfy, and stimulate user needs is crucial.**
Second, more efficient matching. By improving internal supply chain efficiency and channel capabilities, precisely match user needs to give users a greater sense of joy and experience.
Because **Bestore's sales ratio across units is 7:5:1, i.e., omnichannel sales 70%, store sales 50%, e-commerce 10%. So we focus our efforts on digital transformation of stores.**
**Omnichannel Marketing: Tenfold Sales Growth**
**The core metrics for single-store operations are new customer acquisition, repurchase, and increasing average order value. From the customer side, can new customers come in, form repurchases, and become loyal brand members?** From the enterprise side, can we provide a good experience, let users buy more and buy happily, from originally buying only a few products to buying new products and signature items, thereby increasing average order value.
**The snack category has a characteristic: 90% of consumption comes from impulse buying, with a very low decision threshold.** So, we must stimulate users' purchase needs from all dimensions and all touchpoints, making users unable to stop eating, and feel itchy when they stop.
Double 11 is commonly known as "the carnival day for e-commerce platforms, the fear day for merchants." What merchants fear most is that users hold back their wallets and wait until Double 11 to splurge, enjoying a feast. This affects sales in the two to three weeks before Double 11.
Now, this situation has greatly improved, thanks to Bestore's omnichannel sales model, which re-empowers stores and brings traffic. **Starting from November 3, through stores + APP, WeChat Moments, food delivery, social groups, etc., we carried out comprehensive water retention and guidance, driving Double 11 sales to surge sixfold, reaching 62 million yuan in sales, with 23 million activity exposures, of which smart shopping guides contributed the most, gaining 15.25 million in sales.**
In the Double 11 campaign, three key points helped with marketing customer acquisition and fission new customer growth:
**1. Two-way interaction.** During Double 11, are you overwhelmed by dazzling promotional information from merchants? Do you need to search for the products you really need? In the past, marketing was quiet; merchants silently put discounts into users' wallets. But Bestore, through shopping guides, interacted and communicated frequently with users in the two weeks to the last week before the event, helping remind users that "the discounts are huge, you'll lose out if you don't buy," which is more effective than simply distributing coupons.
**2. Proximity.** In the shopping process, the closer to the shopping scenario, the higher the conversion rate. Although there are many traffic hotspots in our daily life, whether these traffic can bring high conversion is unknown.
**3. Hero products.** For new customers, the most important thing is to let them know your signature dish, use the most valuable product at the most powerful price to impress them and complete conversion.
**After Double 11, we implemented the most effective fission play, extending the water retention period to make the marketing explosion more explosive, creating urgency and scarcity, and speeding up users' purchase decisions.** Bestore employees often send messages to users, such as "Dear, how have you been? Long time no see, miss you," "Dear, it's been rainy lately, take care," etc. This shows that the role of shopping guides is no longer limited to selling goods, but to show humanistic care for users and become their friends.
**Understanding Users Is the Greatest Loyalty to Them**
After the big promotion, many new users come. At this time, how should we retain customers? Many companies hope customers are loyal to them, but few consider whether they are loyal to customers. Loyalty to customers means understanding their preferences and making precise marketing matches.
So, we can use the RFM model, i.e., Recency (last purchase), Frequency (purchase frequency), Monetary (purchase amount), and based on Bestore's tens of millions of member data, classify users. In the figure below, the red part is **users with high frequency and high consumption, whom we define as loyal customers**, while **users in the last three months are called occasional customers, and this part is very easy to lose.**
With this classification, how should we serve these users? **Retail follows the 2080 rule: 20% loyal customers contribute 80% of sales.** Therefore, we choose to operate the top 20% of users and introduce the work logic of old customer operation—right people, right content to do this.
What does "right people" mean? We subdivide the 20% loyal users; some are bottom loyal users, others are top loyal users. We hope to upgrade bottom loyal users to top, i.e., loyalty upgrade. For example, we set sales goals. If it's an ordinary loyal person, meaning high purchase frequency and low unit price, then our goal is to increase average order value.
After setting goals, we analyze consumption data to find user behavior characteristics, infer their needs and preferences, and set category preferences, purchasing power preferences, activity form preferences, consumption intervals, etc. For example, for "meat lovers," we recommend similar activities and provide related products based on their age, achieving the "beer + diapers" purchase effect.
After selecting products and assembling goods, we analyze user purchase channels (e-commerce, stores), purchase times (weekdays, weekends, holidays), and export a complete marketing strategy to marketing personnel to integrate the marketing plan.
**Activity Case: Understanding User Preferences, Precision Marketing**
Starting from user characteristics and needs to drive marketing personnel to design marketing plans greatly standardizes their thinking habits, ways of thinking, and working methods, which is more effective than previous decision-making by intuition.
Member A is a high-quality loyal gold card member who prefers dried fruit and preserves, doesn't care about points, and likes high cost-performance products. His main problem is low store visit frequency. We found that he mostly buys on rest days and often uses WeChat and APP to receive information.
So, **we defined the product demand as dried fruit and preserves, and the communication script focused on "benefit points + core product value,"** such as "Ding! Your coupon for new cherry dried fruit is credited, rich in vitamin C, beauty and skincare; Bestore takes you on a taste journey with [new] products, more new products in store." **Since the user buys on rest days, we chose to push promotional information every Friday.** This marketing strategy was quite effective, with a 1:13 return on investment, increasing average order value by 6%, store visit rate by 10%, and visit frequency by 15%.
This shows that understanding a person is true loyalty to them.
**How to Build a Digital Platform?**
Next, let's talk about how to use digital tools for platform construction.
In the past, when Bestore invested in systems, it often bought whatever was missing. In recent years, with gradual exploration of digitalization, we started from the most urgent and critical places to organize and build digital tools. So, with 8,000 employees doing repetitive work day after day, how can we ensure every minute and every action of these people yields maximum output?
**Five Steps to Build a Complete Digital Tool**
**First, build a digital tool chain around frontline employees.** Take the marketing activity just mentioned as an example. Even if frontline employees do nothing, I can see the work effect. From online task distribution to whether users open marketing information, whether they receive coupons, whether they redeem them, the entire chain is transparent and forms a closed loop, leaving no place for employees who slack off.
**Second, online learning and training.** Two or three years ago, our marketing activity process was: send emails, from headquarters to branches to regional supervisors to store managers, with layers of phone conferences. Some employees half-understood, leading to significant differences between actual marketing effects and expectations. Now, we have streamlined the process to two layers. The headquarters marketing department directly connects with all store managers and staff, launching live broadcasts at the same time to tell employees activity goals, key nodes, sales methods, scripts, etc. After the live broadcast, collect employee feedback and synchronize it to the headquarters marketing department to improve marketing plans.
**Third, online user reach.** There was a transaction where a user requested an apology card to his girlfriend when purchasing a product. This shows that this order was not just a simple transaction but added more human touch. The next goal is how to continue to become good friends with users.
**Fourth, online activity effectiveness.** By evaluating marketing effects, i.e., how to do it, when to do it, and how well it was done, promote marketing conversion, evaluate employee performance, and share excellent employee experiences with other colleagues for learning, improving employee performance.
**Fifth, online activity revenue, i.e., by setting target rewards, employees know in advance how much money they can get,** so they will strive for excellence and work harder.
In summary, **when building digital tools, we must both return to the frontline and solve frontline problems, and also put all core tasks online to improve employee efficiency and output, allowing them to earn more money and make their lives easier, happier, and more interesting.**
When we have digital tools, we will find that some work steps are redundant. By making the organization flatter, simplifying work processes, improving communication efficiency and transparency, our backend departments can understand frontline needs, "let those who hear the gunfire call for fire." As a result, our employees will feel satisfied because many futile tasks have been simplified and optimized through tools. Thus, their youth and energy can be spent on more valuable and growth-oriented things.
**The Role of Online Digital Construction**
1. It helps accelerate talent growth and replication, allowing employees to quickly reach our standard level, understand and set next-stage goals, and self-challenge and grow.
2. Through transparent and closed-loop business chains, feedback performance faster, allowing better store managers to obtain more resources and more backend support.
3. By enabling employees to handle business more efficiently, they have more time to learn and improve themselves. **Many post-90s employees are young and promising. They crave growth and progress. They very much hope managers can tell them—"how did you succeed, where is your career path, what abilities are needed at each step, and where to learn these abilities."** To this end, we have built employee position development standards and equipped corresponding training materials to meet employees' learning and growth needs.
**Summary**
In the era of big data, every company is facing digital transformation. Doing the following three things well can achieve twice the result with half the effort.
1. Let dreams and fears coexist:
Envision user needs, freeze future success, and unfold the gap with reality.
2. Establish confidence and situation:
Don't set big plans, seize small businesses, treat small wins as big wins, use momentum to draw blueprints, plan teams, find resources, and build foundations.
3. Make execution yield strategic results:
Strategic intent with big goals, business design with clear paths, organizational division with tasks, front-back coordination with rapid iteration, and performance management to ensure co-creation.
Source: WeChat public account @混沌大学. Chaos University is an online business school for business innovation groups, based on philosophical and scientific thinking, inviting 200 top global teachers to create an innovation education system, helping Chinese workplace elites cultivate innovation capabilities.
Tips will be paid 400-2000 yuan once adopted.
**China FMCG + Internet Professional New Media**
**Committed to FMCG manufacturer and distributor transformation and channel digital solutions**


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