66Speak is a subsidiary of Ningbo E-Commerce Company which has technically started in December 2014. In the past three months, less than ½ students come up for renewal. Compared to the growth rate of the company's sales in August this year, the growth rate in September fell by 25%. Aiming at this situation, the author conducted a questionnaire survey through analyzing 47 copies of questionnaire to find that 66Speak has the following main problem in three aspects. Firstly, the training courses set up by 66speaker fails to meet the customer's individual needs; second, 66Speaker fails to effectively find and encourage students’ individual needs; thirdly, 66Speaker management is unable to improve consumer satisfaction. To solve the above-mentioned problems, the author proposes a personalized service strategy, including providing individualized courses, providing personalized learning career management, reforming the company's performance appraisal system, improving communication with students and strengthening communication with parents, as well as designing targeted promotions measures, CEM system and optimization of organizational structure.
Keywords: 66Speak; customer churn rate; personalized service strategy; customer satisfaction; customer demand關鍵詞：66speak；客戶流失率；個性化服務策略；客戶滿意度；客戶需求
China's 12th Five-Year Development Program points out implementation of the strategy of rejuvenating China with science, education and human resources; paying attention to personnel training; taking personnel training as an important guarantee to enhance the country's core competitiveness and overall national strength; stressing vigorous development of vocational education, development of various forms of training of vocational skills, development of distance education and continuing education, building a learning society with lifelong learning people (Long, 2013). Since the reform and opening up, China's economy develops with a rapid rise of 8%, economic development promotes increasingly strong demand for talents, the requirements for talents are also increasingly higher. China has a large population, the market scale of the education industry is very large, in 2014, the total scale of the entire education and training market was about $ 150 billion dollars (Wang, 2014). Chinese education is examination-oriented education system, school kids are faced with competitive pressure, which provides a broad market for training and education (Hang, 2009). In China, parents pay attention to their children's education, affected by the traditional culture, Chinese parents make every effort to promote their children to be talent, currently, children's education spending has exceeded pension and housing consumption and become the most purpose of household savings (Wang, 2014). With the development of China's Internet technology, online education has been popular, compared to traditional education, online education is considerably flexible, it eliminates costs for teaching spaces and other expenses, training costs are significantly reduced, lower training costs attract more people to participate in the training. According to statistics, in 2014, the market scale of China's online education reached $ 15 billion (Wang, 2014). In this favorable macroeconomic backdrop, 66Speak (溜溜英語 in Chinese), a subsidiary of Ningbo E-Commerce Company, technically started in December 2014. It offers one-on-one customized virtual Language lessons to the students who want to learn authentic languages from the native speakers. The total number of students who taking classes has reached 60 and it’s still increasing, but the problem is that after the first 3-month session, less than ½ students come up for renewal. Compared to the growth rate of the company's sales in August this year, the growth rate in September fell by 25%. How to improve 66Speak online customers’ royalty concerns my partners and me a lot. We’ve employed personalized service strategy to solve the problem by personalized, one-stop service strategy, communication strategy and strategy of establishing long-term relationships between the company and its customers. The author expects that through these strategies, in the next six weeks, the customer churn rate will be reduced from 50% to 15%, the growth rate of the monthly income will be improved from a decline of 25% to 10%.
Table 1: Customer Loss Rate
Figure 1: Customer Loss Rate
Table 2: Monthly Income of 66Speak (7-9)
Figure 2: Monthly Income of 66Speak (7-9)
2.0 Company information and problems
2.1 Company information
66Speak was an online English training institution established in December 2014. It has always adhered to "warm, pragmatic, altruism," core values and focused on the integration of quality educational resources and advanced Internet technology to provide services to English learners. 66Speak breaks traditional teaching modes, by emphasizing oral language, focusing on communication, taking English as a skill to train students, so that students can overcome the difficulties of fearing to speak and they can be fluent in using English in conversation. The teachers in 66Speak come from the United States, Britain, Australia and they all have teacher certification, they provide students with most professional service. 66Speak provides service to the participants by the network, students can make an appointment at any time to enjoy quality service without leaving home. Meanwhile, the price of training courses provided by 66Speak is the most favorable among similar training courses.
2.2 Questionnaire results
Since July, the number of defecting customers achieved 88 in 66Speak, the author was through phoning to determine that there were 58 customers who were willing to accept questionnaire survey. The questionnaires were distributed and taken back in the form of e-mail. Among the recovered questionnaires, 47 copies were valid, the effective rate was 81%. Contents of the questionnaire include three parts. The first part introduces the purpose of the questionnaire survey. The second part describes respondents’ views on 66Speak, and the third part investigates the background information of respondents. Contents of the questionnaire are shown as follows.
The survey results showed that 22 people chose 66Speak to improve their oral English; 11 people’s reason was to experience authentic English education and foreign cultures; 31 people were for improving their English test scores; 28 people chose “improving ability in using English to meet work needs; 9 people chose other reasons.
The survey results indicated, 31 people left 66Speak, as the training provided by 66Speak failed to help their to achieve the intended purpose; 17 people left after they achieved their intended purpose by the training; 21 people left because they were not satisfied with the communication, management and service provided by 66Speak; 8 people left to go to other better training institutions; 9 people left for other reasons.
The survey results showed that 31 people chose CET; 24 people chose IELTS; 21 people chose BEC; 11 people chose GRE; 22 people chose TOEFL; 5 people chose other tests.