Oct. 28, 2011 - Over the last few months I have been working with
clients in eleven countries. All of them have had economic difficulties.
Some retailers are looking at the state of the economy and complaining
about lost sales whilst others are looking at the same economy and
seeing business opportunities.
Some of these retailers are in the same retail sector and it is
interesting to see how attitude can make a difference, but apart from
attitude there are other important points that create the point of
difference.
1. Customer service is not the answer
During my travels I came across sales staff who were exceptionally good
and others who were just interested in processing me and sending me on
my way. Before I left Australia, I presented at a conference where one
of the other speakers was Sue Anderson of the Australian Retail
Association. She gave an excellent presentation on customer service and
why it was not working. She introduced the concept of day-makers. That
in the new economy the aim of someone in retailing is not to serve the
customer, but to make their day. This concept stuck in my mind as I
traveled and visited various retailers. It is the day-makers that
actually grow sales for businesses.
Making a person's day is about recognizing them as an individual and
listening to their needs. The irony is that you can be a day-maker
without having any product knowledge. Day-makers can relate to the
consumer and ensure that the consumer leaves the business relationship
with a bigger smile than when they entered the relationship
2. Care for your community
In recent months I have seen a shift in marketing. Business are now
connecting more closely with their own community and helping local
causes. This has always been a part of marketing for business, but in
recent months there has been a change of focus. Research indicates that
consumers want to support local business and especially those local
business that support local communities. Caring business will be growing
businesses.
Retailers and suppliers need to look at what are the needs and wants of
the local community and how they can help improve the local situation.
3. Providing the consumer with value
Consumers have started to look for value; many retailers are looking at
discount and confusing this with value. More expensive items can provide
value to the consumer. I have just been talking to our local
electrician who is doing some work in our office. He mentioned we could
go to the local supermarket and purchase some light bulbs. He then
followed it up by saying the local electrical shop also had light bulbs
that were about 10 per cent more expensive, but would last three times
longer. The more valuable proposition is initially the more expensive
proposition, but will soon provide a return on our investment. Astute
retailers realize that value and discount are two completely separate
things.
4. Confusion can reduce sales — it does not have to be always new
Whilst I was in America I worked for some garden centres and they were
telling me about the amount of new plants that were entering the market.
In fact I am told that 75 per cent of plants on sale now in America did
not exist ten years ago. Unless you are a “plant nut” the result is
confusion. One retailer told me of the challenges that he was facing as a
retailer. The plant he was offering last year as the best in the market
place for its type has been replaced by another improved from this
year. If this is happening occasionally than the customer can understand
upgrades and improvements, but when it happens at such a rapid and
regular occurrence the customer starts to get suspicious and feels this
is a ploy to get more money out of them rather than offering an improved
form. As retailers we need to be careful about how we introduce new
items if we are to keep building a strong relationship with our
customers. This is especially important at present when consumers are
looking towards nostalgia items rather than it must be new items.
Building relationships with consumers is a high priority for retailers
at present. It is time to invest in relationship building before it is
too late and the customer decides it is less stressful to go online for
all their shopping need and wants.
John is a conference speaker and consultant with clients in over 33 countries.
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