Photo by duong thi hai yen
How you can successfully compete with the big box stores.
In a sense, big box stores create the impression that they take customers for granted. They resemble inventory dumps, and appear to play a race-to-the bottom in pricing.
Because of their sheer volume and size, they make the mistake of broadcasting broad generic messages leading to cheap transactions. Conversely, they could be making local, personalized dialogues with customers for long-term relationships.
How your small business should avoid the mistakes by large market chain stores:
1. Create your own value.
Because big box stores have more capital and operate at a massive volume, they’re able to sell at the lowest prices. Small businesses fail if they try to price-match the big stores.
Instead, small retailers should create and own their value. This would accomplished by developing product and personalized customer-service expertise with a smile, and becoming completely immersed in the community they serve.
2. Create a memorable environment.
Big store customers tend to shop online, which is actually what the stores want in order to sell high volume at a low cost. This enables them to economically run their operations. So they have an uninspiring buying environment for their customers.
In contrast, small stores can entice customers to visualize how products w0uld fit in their environments. With friendly employees, you can hold events and workshops to personally educate your customers.
3. Create personable experiences.
Big box stores have an impersonal, one size fits all display of products.
In reality, small stores can create a personalized experience for customers. Then top it all off with a community-minded focus.
4. Empower your frontline staff.
Employees at big box stores aren’t trained in personalized service. In general, they only know how to push through sales. Typically, they don’t have a deep knowledge of the products.
Counter with good staff training. The more employees know, the more excited they’ll be about your products. Such passion creates a happy, buying environment for shoppers.
Unsatisfactory experiences
A high percentage of customer engagement is a valuable objective, and should be the goal of every manager and employees who deal with customers.
But how many times has a store employee asked you: “Did you find everything OK?”
Your answer: “No.”
Then promptly, the employee fails to do something about it.
Supported by data in a study
Well, such negative experiences occur countless times at chain stores. Not only in-person feedback, but in responding to online surveys, too.
By failing to manage the dialogue, such companies have run bigger risk of seeing complaints on X, Facebook and in online reviews. A study showed 85 percent of shoppers at big-box retail stores gave the requested consumer information.
But only 46 percent of surveyed consumers believed the information would be used to improve customer service. That was the word from Empathica, Inc. The company surveyed 6,500 U.S. consumers in 2012. (Empathica was acquired by Mindshare Technologies in 2013 and subsequently became part of the customer experience intelligence platform of InMoment.)
Shoppers indicated they wanted to answer the retailers’ questions, but they were dissatisfied with the lack of responsiveness. Some 81 percent of respondents believed their feedback should be shared with all store locations. But just 52 percent think the stores, managers and employees would get the information.
The irony? Four out of five respondents “agreed or strongly agreed” they would be loyal to such companies, if they followed up on the feedback.
Why customers shop elsewhere
Indeed, Biz Coach research shows customers change brands 70 percent of the time because they feel ignored.
But there is an irony.
“Our research proves that consumers really do want to provide feedback and engage in conversations with brands,” said Dr. Gary Edwards, Empathica’s chief customer officer.
“But at the same time, they are clearly disappointed by not having any visibility into what happens afterwards,” he said. “Feedback remains a one-way street and what consumers are yearning for is two-way dialogue. They want to know that their feedback is being acted upon in ways that will drive meaningful changes to the customer experience at the locations they frequent.”
The most popular delivery feedback has been online. About 50 percent would give feedback for an incentive. However, incentives haven’t been necessary for the majority – 31 percent have been willing to give positive input and 25 percent would give negative feedback.
“Unfortunately, a lot of retailers fail at creating the transparency that customers desire,” added Mr. Edwards.
“Admitting some areas of the business require more attention builds credibility and helps retailers realize the huge potential for brand advocacy,” he said. “There are large numbers of customers out there who are motivated to provide feedback for the brand.”
Conclusion
Obviously, big box retailers have been wasting billions of dollars in research. Hopefully, your company has a better track record.
It’s imperative to act on valuable consumer feedback, and thank the customer. It’s good business. Besides, wouldn’t it be better to manage the dialogue?
From the Coach’s Corner, suggested reading:
Understanding Customers — Social Media Humbles Companies — Marketing is the understanding of your customer for the cost-effective process of selling the right product or service at the right time and at the right price. Inexplicably, Verizon joins the list of big companies failing to understand how poor research and judgment would draw fire from their customers and social media.
Critical Essentials to Develop the Best Marketing Formula — There are critical essentials for marketing, which includes the right channels and developing the right message.
At some time in the life cycle of every organization, its ability to succeed in spite of itself runs out.
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