When your retail business is facing challenges and the future is uncertain, how do you decide what to do?
Change is hard, and small business owners can feel very alone when trying to come up with a plan to deal with the growing number of threats from competitors.
I regularly work with specialty retailers as a business coach, helping them to decide what actions to take to ensure their business remains strong.
My advice to owner-operators includes three simple principles;
keep your service standards high,
focus on a core range of products and
don’t discount your prices.
1.Ensure your “customer experience” is a point-of-difference
Customers know that they won’t receive the same high quality, personalised service from discount chains as they get from your specialty store. This is a well-understood trade-off that customers make when they choose which retailer to visit.
It is vitally important that every facet of the first impression your customers get is superior – from your windows, doors and entranceway to the carpet, lighting and signage. Your customers must always be greeted promptly and provided with helpful, professional service at every point of their journey through your store.
An exceptional instore experience creates a lasting impression, and this is amplified by your customer rewards programme and follow-up, personalised marketing that reminds customers of their relationship with your business.
2. Know what to recommend
New Zealand society is relatively homogenous. Whether you are in Porirua or Fendalton, Kaitaia or Invercargill your customers are coming into your store with common wants and needs. This means that there is a “core range” of products and advice that every staff member needs to be fluent in.
Smart retailers have a Product Formulary which all staff are trained to use, so that everyone is on the same page providing consistently good advice and the right products.
3. It’s not all about price
Every retail market worldwide has seen the growth of discounters, and, at the same time, a growth in stores operating at the “premium” or “high service” end of the market. Meanwhile, the retailers in the middle that are neither cheapest nor best are losing market share.
Everyone understands that your small business can’t purchase goods in the same volume as the big discounters and therefore you can’t match their everyday cheap prices. You can still provide good value without having to drop your prices across the board.
Positioning
The spread of discount chains has confirmed the position that smaller, locally-owned stores should occupy. Being highly trusted for delivering quality service and advice is a winning strategy that underpins the most successful owner-operated stores.
