Connecting the Dots between Your Customers and Subway Restrooms - A thought provoking story of QB House

 Over the weekend I watched a show that featured QB House, an innovative Japanese company that specializes in a quick haircut service. To be more specific they cut your hair in 10 minutes for 1,000 yen (About $11). That's their motto.

The company appeals mostly to Japanese businessmen because it's quick and it's cheap. So naturally they open locations in business districts and subways.

In Japan the majority of the businessmen take the train, so rents are typically very high in subways. But QB House found a creative solution that not only captures relevant foot traffic but also charges much less rent as compared to other stores in the subway.

Their choice of location? Next to the restrooms.

You see, most of the businesses in the subway are restaurants and therefore they wouldn't even think to place themselves next to restrooms. But QB House realized that people tend to notice the need for haircuts while they stare at themselves in the mirror.

Imagine that while you are washing your hands you notice that your hair is getting long. Now imagine, as soon as you step out of the restroom you find a quick, cheap hair salon. Odds are that you are going to stop by for a quick trim.

The proof? Of all the QB House locations, those that are stationed next to the subway restrooms tend to generate the highest revenues.

In today’s global economy we have access to the most sophisticated technology - some even capable of analyzing terabytes of data. Yet companies like QB House illustrates that simple observation of their customer's behavior can turn out to be just as effective as the most sophisticated technology deployed by businesses.