Service Culture Report

1. Service Culture Report

欧尚零距离
Auchan Touch – “Zero Distance”

2. Content

10 useful benchmarks
Insights from the staff survey
Insights from interviews
Consistency with the Auchan
Service Strategy
• SWOT analysis
• Questions raised
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3.

Benchmarks
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4. Focus on 10 brands focusing on customer experience in China

Restaurant
Retail
IT
Logistic
Bank
Home
Appliances
Airline
Auto
Fashion
China
Merchant Bank
Haier
Hainan Airline
Mercedes – Me
Pop Up Stores
Five star
services,
best air
experienc
es with
humanbased
services
Immersio
n
experienc
es to
Mercedes
tech and
environm
ent
Various
Immersive
Experienc
e
Starbucks
Haidilao
Hema Fresh
K11 shopping
mall
XiaoMi
SF Express
Innovation
s, up-todate
Detail
focused
service
New retail
model,
online+
offline
Museum
Retail,
Modern
Space
Making
friends
with fans
& users
Customer
Caring
Service
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The most Proactivel
updated
y
financial
approach
service
customers,
put their
experienc
e at the
first place
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5.

Interviews
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6. The interviews

• The interviews have been run from 13.07.2018 to 19.07.2018
• 20 persons have been met: YP1, YP2, Headoffice, Regions, from
various management levels and staff levels
• Interviews from 30 to 60 minutes
• Very nice climate of discussion, open
• The goal was to understand the strategy, the organisation and the
current customer culture at Auchan China in day to day situations
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7. Customer culture at Auchan China: at basic level but the strategy is to change to more mature culture

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1
A new strategy is set to prepare for a new world
2
Is the knowledge about the actual customer experience good enough?
3
The Customer Culture is product and process oriented, with a lack of customer care
4
How can we put the Auchan management culture and the Chinese culture
together?
5
The customer culture has also to come from within the company
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8. 1 A new strategy is set to prepare for a new world

1.1
The Chinese context pushes us to change rapidly
• We are aware that we must change and we have started changing. The hypermarket
models doesn’t work anymore here, we just have ageing people coming to store to
socialise.
• If we don’t target excellence, we will be “has-been” very quickly in China.
• We digitalise retail. It is a must for us.
• We need to reduce the gap with the normal standards in China and in Shanghai. It is
a big challenge for us because we kept the same customers as 20 years ago.
• Shanghai is the city of delivery. You can order everything you want.
• [but] Distribution time to Eastern China and Central China may take 10-15 days. [...]
Alibaba and others have more high-end systems.
• Competitors are not only “Hyper”, but whoever competes with us for the customers
are our competitors.
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9. 1 A new strategy is set to prepare for a new world

Auchan has decided on a winning and engaging new strategy…
1.2
We want to be modern and accessible.
We want to build a new company based on the Human project and the Brand project
Our strategy of area of living is great .
We want customers to live a real experience that would push them to come to a
store.
• We want to provide experience + care, but as well be more professional.
• Manage zen atmosphere together with the shouting and friendly atmosphere of a fish
market.
• How to attract Y and Z generations to our stores?
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10. 1 A new strategy is set to prepare for a new world

1.3
…and has started launching actions, with some challenges to face
• The Digital transformation has started recently; Alibaba was a pioneer in this field.
Quite a lot has been done, with Auchan Delivery; Taobao app;
• We have an incredible luck of having the hypermarkets and be able to build a digital
offer around that.
• We have talents for the Digital transformation: we have enrolled many individuals, got
people with IT skillset.
• How to do new retail: aggregate of online and offline; for online we are over 30%, the
ratio is not big though; offline still has multiple possibilities.
• We multiply opportunities of partnerships, with partners that are very demanding. My
fear is that we would deceive them.
• In the process of implementing/adaptation of new project, how to select new model
swiftly; For example, Auda store - does it fit the Chinese model?
• We are considered by the Corporate as a laboratory.
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11. 2 Is the knowledge about the actual customer experience good enough?

• We don’t have good information about each store and its exact environment. Just
NPS per store.
• If we are not professional enough, we will not be able to do anything, NPS shows that
our priority number 1 is to be more professional on all sectors.
• Now customers want to focus on quality and price. This is the most important.
• We spend money offering 5000 SKUs in the section while customers want only 2000.
• With digitalisation we save customers time – Quick checkout; Self-checkout; enhance
experience [but] Self service is a challenge for some customers who have difficulties.
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12. 3 The Customer Culture is product and process oriented, with a lack of customer care

3.1
The customer culture is at a low or basic level, in staff but also in
customer behaviour
• Globally people are too focused on products, on their own tasks.
• Employees are globally not interested by customers. I don’t see a customer service
mindset. And human relationship is globally at a less high level as in Europe. What is
important is the result. Here is considered as the norm if you are not well treated.
• It has to be balanced. I give and I receive. In the Chinese culture this must be a care
that is based on friendliness. Because we fit together, I will take care of you.
• They have in mind to serve the other, maybe not to deliver a sustainable level of
service.
• Cashier people are the most sensible to service, because this is the only product they
can sell, and this is where you can create relation.
• Good service at cashier is being positive and speed.
• Twice a year there are the crazy days ; You can’t manage the crowd in that case. We
staff just stand there to check security.
• Nobody minds being crushed here.
• There are few processes, we don’t write enough.
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13. 3 The Customer Culture is product and process oriented, with a lack of customer care

3.2
With 2 types of employees having different expectations and attitudes
• PCs feel part of Auchan. They have the same uniform so they are the same in the
eyes of the customer.
• PCs are more aggressive, they get incentives if you buy. Whereas for a Auchan staff,
if someone does purchase something, it is considered as additional work.
• PCs have no attachment to the company, they always are in a kind of conflict of
interest, with an even higher turnover. At the same time they represent 90% of the
customer culture.
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14. 3 The Customer Culture is product and process oriented, with a lack of customer care

3.3
The Auchan culture requires more mature customer culture
• We are completely far form the idea of Auchan in respect of customer culture, on all
aspects: service, decision process or behaviours.
• Skill number 1 that is needed is discipline and precision
• It will be good to give more customer view to the commercial teams, and involve the
section managers. They are not customer oriented and not focused on cost-benefit
analysis.
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15. 4 Can we put the Auchan management culture and the Chinese culture together?

4.1
Management levels are a target for change
• Our management style is very Chinese. The boss requests, it is delivered with no
question.
• If you don’t accompany correctly a section manager, he will leave after 1 or 2 years.
• […] the store managers are young, with a high turnover. They might lack experience
to analyse complex studies.
• Some managers don’t feel capable of managing their staff.
• The boss is always right. It is difficult to make them [staff] talk, if they don’t agree with
the decision. They wouldn’t like to lose face.
• We have meetings once a month. We discuss customer relations and target customer
satisfaction
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16. 4 Can we put the Auchan management culture and the Chinese culture together?

4.2
Staff turnover is a big issue
• We face a staff turnover of 30%.
• Our staff come to Auchan because it is an international company [...] They stay
because the performance we are asking is low, there are more holidays, they can
grow thanks to training and growth of the company.
• We have a paradox between ageing customers and much younger staff.
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17. 4 How can we put the Auchan management culture and the Chinese culture together?

4.3
We are on our way to adapt to a Auchan-style of Management
• We have an ambiguity. Can we put the Chinese culture and the Auchan Culture
together? Auchan is not very structured and we expect collaboration and bottom up
approach.
• For those who would like to work with empowerment, it is very complicated.
• Participative management like we do at Auchan is more difficult in China. They
expect the boss to organise everything.
• Auchan needs loyal people with passion. We need to hire bold individuals, with
vision, proactivity and with desire; enthusiasm. They have to have team
consciousness – a willingness to spend time for training of subordinates; giving
feedback to superiors; and competitive spirit.
• Our management is fair & just; each individual has his own range of responsibilities;
responsible, with an exact division of labour; optimal organisation of work;
understanding of strengths and weaknesses of each one.
• We have created the SMART programme to solve this lack of management skills. In 3
years they should become store managers. They are good. They say what doesn’t
work. They suggest changes.
• The good thing in China is that we are not afraid of test and learn.
• We have too many KPIs in the company
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18. 5 The customer culture has also to come from within the company – Consideration Symmetry©

• One of the challenges is the co-operation within the company/the managers.
• We need to involve & engage, make sure everybody’s on the same page, have the
same perspective.
• There is a very big pressure from business lines.
• My second surprise is the silos of teams[..]. I try to share resources between the
teams, not easy. It is not in the culture. As an example, look at the offices, with all
those walls and doors.
• The supply chain is a blind side; it does not receive development effort; especially in
outer territories.
• We could have the same kind of consideration for employees and for customers. We
face the same issues of recruiting and maintain them.
• They [are engaged, they] continue dealing with our internal clients even evening and
weekends on wechat.
© Academie du Service
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19.

We want [Chengdu 5] to be our learning flagship, our HR lab
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20. Insights from interviews

Aligned
Discrepancies
• The strategy seems to be the right one
• The Auchan culture should / shouldn’t be the
main culture at Auchan (vs Chinese culture)
• The Chinese environment is not yet mature in
customer experience (except digital)
• Staff customer skills are low and/or not
consistent
• Customers don’t behave smoothly
• PCs customer attitude is / isn’t efficient
• The managers communicate well / not well
• We should have more / less staff in stores
• Staff turnover is a priority
• To succeed, Consideration symmetry© is a
must
• Managerial routines (meetings) are good
@ Academie du Service
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21.

Surveys
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22. The project would be named…

最后 请为该项目挑选一个你喜欢的主题名字 选一个
what is your favourite option to name the project?
欧尚零距离
Auchan Touch – “Zero Distance”
最重要的小事欧尚心连心
I care
欧尚心连心
Auchan Touch / Connecting Hearts
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23. The survey

• The survey has been run from 27.07.2018 to 11.08.2018
• Answers collected from 44 Stores (see detail in appendix)
• 1525 persons answered: young, woman, PC or staff, facing
customer, more than 1 year with Auchan
Age
Positions
Gender
Facing
or not facing the customer
Not facing;
9%
Man
27%
Under 30
31%
30 or Above
69%
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Women
73%
Manager
SMDM:2 PC:32%
7%
Staff:41
%
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Facing;
91%
Working at Auchan
Less than
1 year,
19%
More than
1 year,
81%
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24. What is your favourite store for shopping? 你最喜欢的购物地点是哪里

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Bailian 百联
Tianhe Department store(s)…
Lao Niang 老娘舅
KFC 肯德基
Sunart Square 高鑫广场
Ikea 宜家
NGS Group 农工商
FamilyMart 全家
Huierjia 惠而佳
Yunhe Shangjie 运河上街
Wujiao 五角
GAP
Department store(s) 百货
Chengdu Chunxi Road 成都…
15
Sanjiang Supermarket 三江…
4 3 2 2 2 2 3 2 6 1
Convenience Store 便利店
电子产品商店
Yintai 银泰
Huierjia 惠而佳
16
YP1
2 6 1 1 2 1 1 1 4 1
Walmart 沃尔玛
Comprehensive Market 综…
Carrefour 家乐福
1 2
Audio Library 音响图书店
5
Life Square 生活广场
7
Electrical Stores 电商
47
31
Taobao 淘宝
20
Snack shop 小吃店
64
56
Online 网上
163
Big Supermarket 大型超市
2 1 1
Yonghui Superstores 永辉
33
25
10
Bairong Mall 百荣
Big Market 大型商场
2 7
菜(市场
Pinduoduo Electronics…
Auchan Supermarket 欧尚…
Market 商场
Supermarket 超市
What is your favourite store for shopping? 你最喜欢的购物地
点是哪里
• Big fans of supermarkets…not many names mentioned
Favourite store
176
130
129
37
5 4 4 1 12 6 3 1 3 5 9 1 1 2 3 1 1 1 2 3 3 3 2 1 1 2 8 2 2 2
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25. What is the main reason for you to choose this store concept? 是什么原因使你选择这家商店？（选一个）

What is the main reason for you to choose this store concept? 是
什么原因使你选择这家商店 选一个
• 850 answers not naming
Auchan, Taobao or Sunart
• We have focused the analysis
on their answers, to keep the
analysis focused on non
Auchan concepts
• “Choice”, “Close to my place”
and “Price” are the most
important criteria
是什么原因使你选择这家商店 选一个
What is the main reason for you to choose this store concept?
选择多样化 / The choice
靠近我家/方便 / It is close to my place, convenient
价格 / Price
质量 / Quality
有网上线下的商店 / It is clean
有网上线下的商店 / I can choose offline / online
时尚 / It is trendy
0
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50
100
150
200
250
300
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26. What is the most important for you when you go to that store? 当你走进一家店里，你认为什么是对你最重要的？（选一个）

What is the most important for you when you go to that store?
当你走进一家店里 你认为什么是对你最重要的 选一个
“Friendliness” comes first, as well as “I can get a precise answer to any question”
当你走进一家店里 你认为什么是对你最重要的 选一个
What is the most important for you when you go to that store?
店内员工很友好
The staff is friendly
任何问题都能获得准确的回答
I can get a precise answer to any question
店员总是会为我的问题找到解决方案
They always find a solution for me
店内Staff 员工很了解我
The staff knows me well
0
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50
100
150
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200
250
300
350
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27. Speaking about Auchan, choose 3 words that would best describe the care we could show to customers 现在关于欧尚来回答一些问题

选择三个选项来
形容我们能够展示给顾客的关心
• The description of care is focused on basic dimensions of care (“advice”, “listening”, “clean”).
• More mature customer oriented features (“share passion”, “be helpful”, “make things easy”,
“considerate the customer whatever section he is in”) are less mentioned
现在关于欧尚来回答一些问题 选择三个选项来形容我们能够展示给顾客的关心
Now, speaking about Auchan, choose 3 words that would best describe the care we could show to customers
提供所需要的意见 为了客户对购物经验满意
Give all necessary advice to sell exactly what the customer needs
用心听顾客的声音
Carefully listen
保证一切都干净 整洁
Ensure everything is always neat and clean
更有礼貌
Be polite
分享我们对欧尚 欧尚产品 服务的热情,
Share our passion about Auchan and Auchan products and services
对顾客有帮助的
Be helpful to the customer
为顾客把事情变得简单
Make things easy for the customer
无论顾客在哪个部门
Considerate the customer whatever section he is in
0
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100
200
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300
400
500
600
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28. Choose 3 words that would describe the care we could show to our colleague 选择你将用于描述我们对同事能够更关心的词

Choose 3 words that would describe the care we could show to our colleague 选
择你将用于描述我们对同事能够更关心的词
• Top 3 for both staff and PCs: “be always helpful”, “carefully listen”, “try to understand what his/her
feeling is”
选择你将用于描述我们对同事能够更关心的词选择你将用于描述我
选择你将用于描述我们对同事能够更关心的词选择你将用于描述我们
们对同事能够更关心的词 (staff)
Choose 3 words that would describe the care we could show to
our colleague (staff)
对同事能够更关心的词 (PC)
Choose 3 words that would describe the care we could show to our
colleague (PC)
总是应该互相帮助
Be always helpful
总是应该互相帮助
Be always helpful
用心倾听
Carefully listen
试着理解他 她所感受的
Try to understand what his/her feeling is
试着理解他 她所感受的
Try to understand what his/her feeling is
用心倾听
Carefully listen
要有更多友好
Be friendly
要有更多友好
Be friendly
对他 她将使事情更加简单
Make things easy for him/her
总是寻求解决方案, 履行承诺
Always try to find a solution
总是寻求解决方案, 履行承诺
Always try to find a solution
对他 她将使事情更加简单
Make things easy for him/her
保持他 她对你所提供的服务表示满意
Check if he/she is happy with what you did
0
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50
100
150
200
250
300
350
400
保持他 她对你所提供的服务表示满意
Check if he/she is happy with what you did
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0
50
100
150
200
250
300
350
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29. Choose 3 words that would describe the care we could show to our colleague 选择你将用于描述我们对同事能够更关心的词 (manager)

Choose 3 words that would describe the care we could show to our colleague 选
择你将用于描述我们对同事能够更关心的词 (manager)
• Top 3 for managers: “try to
understand what his/her
feeling is”, “carefully listen”,
“fulfilling commitments” >
more advanced type of care
• 2 in common with staff
(“carefully listen”, “try to
understand the feelings”)
Choose 3 words that would describe the care we could show to our colleague
选择你将用于描述我们对同事能够更关心的词 (manager)
试着理解他 她所感受的
Try to understand what his/her feeling is
用心倾听
Carefully listen
履行承诺
Fulfilling commitments
对他 她将使事情更加简单
Make things easy for him/her
要有更多友好
Be friendly
总是应该互相帮助
Be always helpful
关心她/他 无关他属于不属于我的团队
Considerate him / her, even if not from my team
总是会为问题找到答案
Always try to find the answer to the question
帮助每个团队成员表达他/她意见 概念
Help every team member to express opinions and ideas
共享我对Auchan 欧尚的热情
Share my passion for Auchan
0
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20
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40
60
80
100
120
140
160
180
200
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30. To your mind, what is the level of quality of care to customers today at Auchan China? 在你看来，今日Auchan 欧尚中国顾客服务Quality 质量怎么样？

To your mind, what is the level of quality of care to customers today at Auchan
China? 在你看来 今日Auchan 欧尚中国顾客服务Quality 质量怎么样
• The respondents considerably underestimate the
rate of positive customers
To your mind, what is the level of quality of care to
customers today at Auchan China?
1
2
3
Internal survey July 18
NPS May 18
Average 7.5
4
5
31%
9-10
48%
6
7
28%
7-8
41%
0-6
46%
8
9
7%
10
0
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50
100
150
200
250
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31. To your mind, what is the level of quality of care to employees today at Auchan China? 在你看来，公司对于自己 员工的关怀做的怎么样？

To your mind, what is the level of quality of care to employees today at Auchan
China? 在你看来 公司对于自己 员工的关怀做的怎么样
To your mind, what is the level of quality of
care to employees today at Auchan China?
1
Average 6.9
2
3
4
5
6
7
8
• Total respondents: 6.9
9
10
0
50
100
150
200
250
• Detail Staff only: 6.8
• Detail PCs only: 7
• Detail Managers only: 6.6
• Surprisingly, PC are less critical although external employees
• Managers are most critical
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32. Comparison between customer and employee perception of care

• Employee care is clearly less valuated by
respondents, with a big proportion of
negative comments
Comparison between customer and employee
perception of care
60%
50%
• Very positive / promoters = 8 to 10
• Very negative / detractors = under 1 to 6
40%
30%
20%
10%
0%
Very positive about
customer care
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Very negative
about customer
care
Very positive about Very negative
employee care
about employee
care
32

33.

Appendix
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34. Detail of stores

Stores
WGQ1, 14
UNKNOWN, 14
SZ4, 51
BJ2, 15
ZS1, 1
BJ1, 53
YP2, 1
BJ3, 1
BJ4, 11
BJ5, 46
YP1, 66
CD1, 24
SZ3, 50
SZ2, 22
SX2, 1
CD2
, 58
SZ1, 43
SX1, 23
CD3, 41
CD4, 57
NB7, 51
CD5, 57
NB6, 40
CX1, 43
NB5, 54
DG1, 45
Supermarket
Convenience Store, 1
DG, 1
NB4, 52
GZ1, 44
HJ, 3
NB3, 47
NB2, 13
HJ1, 46
NB1, 121
HZ1, 53
JX1, 58
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JD1, 28
JD11, 22
MZ1, 22
MH1, 41
JD2, 61
KS, 1
KS1, 29
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35. Detail of names

Best name for the project
• NB: a considerable
number of non
respondents (1122)
我想为您做、、I'd
like to
Warmth
in Auchan 温暖在
do for
you…;
1; 0%
欧尚;
1; 0%
A smile for two 微笑X2;
17; 4%
我们不一样
We're different;
1; 0%
Care for
you 关怀你
我; 29; 8%
Staff and Customer Care
员工及顾客关怀; 53; 14%
Auchan Touch (literally
"Zero Distance") 欧尚零距
离; 145; 37%
Auchan Touch (literally
"Connecting Hearts") 欧
尚心连心; 60; 15%
I care 最重要的小事; 86;
22%
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36. Insights from surveys for Auchan Care

Main attributes of a good care experience
Main attributes of a good care experience
• The staff is friendly
to staff / colleague
• I can get a precise answer to any question /
Give all necessary advice to sell exactly what
the customer needs
• Try to understand what his/her feeling is
• Carefully listen
• Be always helpful
• Ensure everything is always neat and clean
• Fulfilling commitments
• Carefully listen
• Be polite
> The understanding of BASICS seems OK
> More complex levels of customer relation are not really part of the actual customer culture (such as
cooperation, make things easy, feedback and empowerment)
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37.

Extract from Auchan Service Strategy
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38. Inspiring elements from Group and China strategy

VISION
3 PRIORITIES
Auchan changes life
Reinventer l’hyper
Developper les nouveaux
formats
Accelerer O2O
AMBITION
An innovative Caring Retailer
that changes everyday life
2 NECESSITES
ATTRIBUTES
Quality Standards
Costs little, costs less
Attractive
Passionate
At your service
Convergence des back office
dans RT Mart
Avoir les meilleures equipes
VALUES (TO BE CONFIRMED)
Openness
Innovation
Excellence
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39.

SWOT analysis Customer and Employee Care at Auchan China
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40. To be completed together

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• Strong Auchan Group culture and brand platform, with
good customer culture
• Staff willing to change, agile
• Strong top management team, aligned on the need to
change and strengthen care to customers and staff at
Auchan China
• Transformation has started at Auchan China. Care is
one of its pillar
• Emerging need in China for more customer
experience oriented brands
• Creation of the SMART group of managers who can
be trained to customer orientation and design thinking
• Support from the Auchan Group and the consistency
with the Auchan brand platform
• Existing and strong offline know-how, that not all
competitors have
• Level 1 of customer orientation, not a great
understanding of what level 2 would be
• Lack of knowledge about the real customer
experience and customer expectations
• Not a good brand awareness in China, so how to be
recognised for a good care?
• Staff turnover hinders from investing in customer
relation skills
• Risk of choosing a care model that would be too far
from Auchan China DNA
• The pace of change in China vs the time needed for a
cultural change at corporate level
• Some competitors invest a lot on customer experience
and care
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41. Questions raised

• How to raise the awareness of staff and managers about the existing customer satisfaction /
customer experience?
• How to measure the staff engagement towards customers?
• How to ensure the level 1 of customer care / and employee care?
• How to push to level 2?
• How to position Auchan China towards its competition, with a specific and consistent Care project?
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42.

Share
passion
and
emotion
Make things easy for
him/her
Considerate the customer whatever
section he is in
Be helpful to the customer and available on all
channels.
Give all necessary advice to sell exactly what the
customer needs
Be polite and clear in your answers
Ensure everything is neat and clean
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