“The problem with conventional wisdom lies in its definition.” Nothing typifies this more than the prevailing attitudes of many large and small merchants today. Conventional wisdom focuses almost entirely on having the lowest prices or the biggest percent savings.
In every focus group discussion, I have witnessed, price is important, but it is seldom the only consideration in what customers/clients want. Even more important is to distinguish your organization from the masses.
Focusing on price forces merchants to accept lower margins to constantly lower prices. It reduces the services they can afford to offer. It contributes to keeping wages low, and ultimately it costs the merchant customers because price loyalty is fleeting. I believe the best way to build loyalty is to offer real value, appreciating that while price is still important, it is not the only consideration.
As a merchant, you want to build on your competitive advantages, the things that make you better and unique, to stand out in the marketplace. You should want to build value and try to avoid the “race to zero” that most conventional merchants seem determined to achieve. Consider trying these ideas as a start.
Develop a reputation for fulfilling your customers “wants and needs” without any hassles. This sounds obvious but it is surprisingly rare among merchants who create internal “hurdles” for their customers and ultimately drive customers to competitors. Successful merchants deliver their products and services with a smile and a “can-do” attitude every time, when, and where they promise. Your manta throughout your organization should be to exceed expectations in every interaction with customers or clients.
Resolve customer/client issues quickly, easily, and efficiently. Mistakes and errors happen, foster a team that takes ownership of problems, and makes resolution so painless your clients/customers will be amazed. Will some customers take advantage of you, likely, but that will only be a small number, don’t let 1% of your customers make you punish the other 99%? Track the costs and the results, consider …
“CUSTOMER SERVICE IS PART OF MARKETING AND ADVERTISING”
Make a habit of requesting and encouraging positive reviews. Your reputation in your community is a valuable resource, spread the work, and make “asking” for reviews part of the follow-up to every sale. The flip side of this is to respond quickly to negative reviews, not from the perspective of defending, but rather by listening, learning, and resolving the issues behind negative or poor reviews.
Have something to say. Consistency is important in marketing and advertising but not to the extent that every marketing campaign or advertisement looks the same. Tout your competitive advantages and what makes your organization special. Create value, answer questions, educate, and incorporate “fun” for your customers/clients as well as for your people.
Avoid fine print and don’t hide behind policies. Trust and honesty should be the hallmark of your marketing efforts. You should want your customers and clients to make informed decisions. You don’t want customers to be unpleasantly surprised at any point in their relationship with you or your people.
Don’t constantly change your prices. Many big retailers have people whose job it is to change the store’s prices weekly. Customers’ trust is eroded when they discover sale items have had multiple different regular prices in sequential months.
Be mindful of customer/client experiences. Smiling and being genuine cost nothing. Offer a clean, friendly, and welcoming environment for every customer/client, whether they are the first customer or the day or the last. Have clean and accessible washrooms; background music that fits the image and atmosphere you want to project; having an activity center for children is a nice touch if your target demographic is families; and most importantly you and your associates should remember that you want your customers to leave thinking, “Wow, what a great place to be.”
Adopt a “no-wrong door” approach. When a customer/client has a question or a problem, everyone in your organization who encounters them should respond helpfully. Simple ways to do this include, transferring a call personally rather than simply providing a phone number for the customer to call; never saying “We’re too busy,” instead of trying to find ways to accommodate what the customer needs now or at an alternate time; and most importantly, returning calls when promised, even if you don’t have an answer yet. No one in your organization should ever say, “That’s not my job.”
Have community ambassadors. I have encouraged clients to have retired associates serve as community representatives for their organizations. Well-known and/or popular former associates who have a high community profile can provide a social “face” to the organization at community events, parades, and social events. The position is a way to be involved for the ambassador in a volunteer capacity and the costs only include such things as tickets to events, expenses, and annual small donations to a charity of the ambassador’s choice.
Publicize your competitive advantages for your customers and your associates to see and remember. Tell and remind people what makes you different, what makes you special, and shout it from the rooftops. Strategically posting your competitive advantages in your organization, in advertisements, and on social media should be ongoing.
Have what you advertise. Avery simple thing, but so many merchants do not follow this basic rule. If stock is limited, be transparent because disappointing customers/clients is always counter-productive. If you don’t have something don’t advertise it.
Don’t have a sale every day or every weekend. Merchants who do this, are training their customers to only buy when something is featured. If this is your reputation, many customers will simply wait to purchase which costs margin and only further drives you down the “road to zero.” When you do have a sale, make it a real sale, a popular deception with some retailers is to advertise a sale, but in fact, they either raise the price or remove an existing “sale price tag” to make it appear like the consumer is saving when in fact they may be paying more than they would normally.
During a sale, try to provide better service and pricing than normal. During an event, new customers/clients may decide to patronize your organization for the first time. It is important to avoid the “busy excuse” and strive to ensure your level of service does not suffer for your regular and new customers/clients.
Be involved in your community. Emphasize your organization and your people are part of the community. Encourage your people to volunteer and participate in local sports, and events, and to serve in local charitable organizations.
Add services for your customer rather than removing them. Look at your competitors; what do they do well, what do they do poorly, and what could you do better. Loyalty only exists if you do something better than your competitors. Never assume someone who patronized your organization previously will continue to do so in the future. You must prove you are better than your competition on every sale and every day.
Cross-pollinate ideas and events. Seek complementary organizations and offer collaborations to help shared customers and clients. Develop business partnerships and offer special incentives to each others’ organizations. Examples include furniture stores working with builders, large employers having “special savings nights” for their people at a merchant’s store, and joint participation in charitable challenges with local businesses.
Things that go without saying: A clean store; everything on display working; easy-to-use websites; a real receptionist who answers your incoming calls; thank you calls or letters to your customers/clients; and making a visible effort to honestly help your customers every time they reach out to your organization.
And don’t forget the price. Price is still important in marketing; however, being competitive, transparent, and willing to demonstrate what value your organization are the key to success.
The “race to zero” is a reality and many merchants subscribe to this philosophy. Merchants who can do more than focus on “price,” that build, offer, and communicate great value will be able to turn the page on price as the focus of their marketing.
Uniqueness is the building block to having competitive advantages, and remember, doing something different than everyone else, doesn’t make you wrong.
Good luck,
Paul.
Great post. I’m dealing with a few of these issues as well..