Retail The Customer Centric Business
Retail The Customer Centric Business
Earning customer loyalty is more difficult today because consumers have greater access to information for comparison-shopping via the Internet. Thus, there has been a dramatic increase in competition.
So what can you do to build a successful business?
Success in business requires customer research as well as intuitive judgement.
There are 3 keys to business success:
1. Know your customers - Demographics
2. Know why your customers buy - Psychographics
3. Know your competitors
Who are your customers - Demographics?
Demographics is the study of where your customers live, their age, how much money they make etc.
Demographics help business owners define their target customers. If you knew that most of your customers lived in a defined area of your community you would know where your business should be located and where to spend your advertising dollars. If you knew they were 30-40 years of age you wouldn't bother hiring Britney Spears to endorse your business. Of course, if you knew that your customers where in a low or high-income bracket you would adjust your products, services, and prices accordingly. It is essential to survey your customers and prospects.
Know your customers and your competition.
Why do your customers buy - Psychographics?
Psychographics helps us understand our customer's buying patterns.
It is critical to understand your customers' emotional attachment to your product or business. When your customer
sees a candle, it's not the wax or the wick they see it is what the candle personally represents to them. It's the feeling they get when they picture this formation of wax and string in their lives. The candle could represent relaxation, romance, fulfillment, comfort etc.
If purchasing decisions are emotional and not logical why do customers buy from you and not your competitors? Is the relationship a customer has with a store emotional as well? I can tell you that it is and you know it is. Think about your favorite store and why it is your favourite store. Why do you choose that store over the rest? Logically it is the location, trust, quality, values, beliefs, service, brand image, the store projects. Ultimately the logical reasons instil an emotional feeling about that store. You feel good about doing business in that store.
What are you doing to engage customers and change their feelings regarding your store?
What does the salesperson say to a customer walking into their retail store?
"May I help you"?
"No thanks, just looking."(the usual response)
Now why do you suppose the salesperson asks that question when he knows what the customer will say?
If you could increase sales by 10% by asking something other than "May I help you" would you do it?
What if you asked if they had ever been in your store before? If the answer was positive you could ask them to participate in your loyalty program. If not you could offer them a free gift upon making their first purchase.
By trying different ways to engage your client and tracking the results you can improve your clients experience as well as your bottom line. The act of trying, testing and tracking new ideas introduces innovation into your sales process and your business.
Who are your competitors?
New ideas don't have to come from you or your customers they can also come from your competitors.
You can emulate the success of your competitors by following their lead. Big chain stores spend many thousands of dollars figuring out what customers want and why they buy. Go out and shop your competition and other retail stores. When out shopping focus on what is good about what they do and think about how you could implement it in your store.
How are their products displayed and in what space?
What colours and shapes do they use? What is the overall feeling?
Ask for help to find something and see how they respond. Ask questions about products and sales and buy something to test their sales processes. You may also try to return what you bought to test their return process.
There is one caveat in copying what the other guy is doing. Sometimes what they do doesn't work and you will have just copied their failure.
If you are continually focused on what your CUSTOMER wants you will succeed over time. If you focus on what YOU want you are putting yourself at risk for failure.
Don't be afraid to ask your customers what they want and what they need and don't be afraid to try something different. And most importantly track the results and prove that what you are doing is working.
Dave Soteros is a Executive coach with Alrym Consulting Services.
For more on Leadership and Management insights please stop by his blog at http://alrym.blogspot.com/
Retail The Customer Centric Business - To learn more about this author, visit Dave Soteros's Website.
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It may seem strange but my experience is that most business owners do not consider their customers when making decisions. Typically they are so caught up in their tactical day-to-day activities that they fail to focus on the needs of their customers. Some don't even acknowledge that their customers' needs have been ignored as they watch them exit the store empty-handed. How many of us have felt like the invisible man when out shopping. Even if the customer does buy something the business owner may not know why.
Earning customer loyalty is more difficult today because consumers have greater access to information for comparison-shopping via the Internet. Thus, there has been a dramatic increase in competition.
So what can you do to build a successful business?
Success in business requires customer research as well as intuitive judgement.
There are 3 keys to business success:
1. Know your customers - Demographics
2. Know why your customers buy - Psychographics
3. Know your competitors
Who are your customers - Demographics?
Demographics is the study of where your customers live, their age, how much money they make etc.
Demographics help business owners define their target customers. If you knew that most of your customers lived in a defined area of your community you would know where your business should be located and where to spend your advertising dollars. If you knew they were 30-40 years of age you wouldn't bother hiring Britney Spears to endorse your business. Of course, if you knew that your customers where in a low or high-income bracket you would adjust your products, services, and prices accordingly. It is essential to survey your customers and prospects.
Know your customers and your competition.
Why do your customers buy - Psychographics?
Psychographics helps us understand our customer's buying patterns.
It is critical to understand your customers' emotional attachment to your product or business. When your customer
sees a candle, it's not the wax or the wick they see it is what the candle personally represents to them. It's the feeling they get when they picture this formation of wax and string in their lives. The candle could represent relaxation, romance, fulfillment, comfort etc.
If purchasing decisions are emotional and not logical why do customers buy from you and not your competitors? Is the relationship a customer has with a store emotional as well? I can tell you that it is and you know it is. Think about your favorite store and why it is your favourite store. Why do you choose that store over the rest? Logically it is the location, trust, quality, values, beliefs, service, brand image, the store projects. Ultimately the logical reasons instil an emotional feeling about that store. You feel good about doing business in that store.
What are you doing to engage customers and change their feelings regarding your store?
What does the salesperson say to a customer walking into their retail store?
"May I help you"?
"No thanks, just looking."(the usual response)
Now why do you suppose the salesperson asks that question when he knows what the customer will say?
If you could increase sales by 10% by asking something other than "May I help you" would you do it?
What if you asked if they had ever been in your store before? If the answer was positive you could ask them to participate in your loyalty program. If not you could offer them a free gift upon making their first purchase.
By trying different ways to engage your client and tracking the results you can improve your clients experience as well as your bottom line. The act of trying, testing and tracking new ideas introduces innovation into your sales process and your business.
Who are your competitors?
New ideas don't have to come from you or your customers they can also come from your competitors.
You can emulate the success of your competitors by following their lead. Big chain stores spend many thousands of dollars figuring out what customers want and why they buy. Go out and shop your competition and other retail stores. When out shopping focus on what is good about what they do and think about how you could implement it in your store.
How are their products displayed and in what space?
What colours and shapes do they use? What is the overall feeling?
Ask for help to find something and see how they respond. Ask questions about products and sales and buy something to test their sales processes. You may also try to return what you bought to test their return process.
There is one caveat in copying what the other guy is doing. Sometimes what they do doesn't work and you will have just copied their failure.
If you are continually focused on what your CUSTOMER wants you will succeed over time. If you focus on what YOU want you are putting yourself at risk for failure.
Don't be afraid to ask your customers what they want and what they need and don't be afraid to try something different. And most importantly track the results and prove that what you are doing is working.
Dave Soteros is a Executive coach with Alrym Consulting Services.
For more on Leadership and Management insights please stop by his blog at http://alrym.blogspot.com/
Retail The Customer Centric Business - To learn more about this author, visit Dave Soteros's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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