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Retail The Customer Centric Business

Written by: Dave Soteros

Article Overview: The 3 keys to retail business success!

Retail The Customer Centric Business

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/

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  Sales And Marketing Is All About "You"
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Article Tags: Britney Spears, business owners, competitors, competitors, Demographics, keys to business success, Psychographics, successful business



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Happy Worker as of Dec 31 2007 - Here's mine... I'm now off to make an offering to the business planning gods for their help in getting to these goals & beyond. To the combined success of Prophets 2 Profits! ----------------------------------------- 1) Corporate a) Retail - Sales reps covering all major markets (1M or more) - Retail product launch plan - 1 more retail release (TBD) b) The Toy Agency - Systems for: o Creative process o Pricing o Manufacturing o Logistics - Marketing agency strategy in place - 1 new customer every 2nd month (5 new customers); 1 of which will be rev of >= 500K/year c) Business - Creative talent pool management strategy & process - Outsourced and/or weekly bookkeeping - Monthly budgeting & forecasting - Better banking organization (Line of Credit, CCs, automate billing for appropriate vendors) - Team total of 5 - Larger office d) Web site - Daily updates - Start of separation of Blog/TTA/Retail 2) Personal - Most weekends “off”! - Entirely separate personal finances; basic personal financing plan - Family….?
Re: Two Useful Books To Help You Focus On The CLIENT - Hi David, To add to your thread, I'd like to recommend Jonathan Tisch's "Chocolates On The Pillow Aren't Enough: Reinventing The Customer Experience". Tisch's book includes content on "Welcoming Customers", "The New Art of Customization", "The Challenges of Customer Diversity" and "Offering Something Extra to Your Customers" to name a few.
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.
Exclusive: Interview with Results - Hi Forum Members, I'm helping start up a Business Coaching and Consulting company here in Toronto, Ontario, Canada (a Subsidiary of RSC Business in Los Angeles). As a Research and Development Intern I am required to practice my listening and interview skills by surveying Small and Medium Businesses on thier Business. This Survey is designed by RSC Business to also assist the Business being interviewed more insight into their own business. I am looking to interview about 30 businesses across North America over the span of 3 months. At the end of these interviews I will be publishing a report of the results and they will be made available for free to the Interviewees. The Report data will include responses from a minimum of 100 interviews. I would like to extend this opportunity to members of the Forum. If you would like to have this short 20-30 minute interview conducted on your Business and you reside in North America please send me an email or PM. Please contact me at andy[at]jvprosperity[dot]com to arrange our interview and to get free access to the results when they are published.
Re: Paypal process $315 million in payments per day. - I agree with you David, their Customer relations suck. This mean other payment systems like 2CO and WORLDPAY should work on their customers relations to take more slice of the market.


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