I recently did a feature article for Lagniappe that examined the health of Fairhope’s downtown businesses. This examination was prompted by the observation of an outside consultant that the city’s downtown was in crisis.
The not unexpected reaction from some quarters was both denial and offense that such a thing had been reported. Others expressed concern, but resignation – nothing they can do about it. A small number called to agree with the assessment and to describe what they were doing to remain competitive in the face of Wal-Mart, Starbucks, Bass Pro Shops, the Eastern Shore Mall, The Wharf, the Colonial Craft Farms Mall – and whatever else is out there now or coming soon.
In a departure from my usual whiny comments on some city council’s action or inaction, I’m going to give business owners – wherever they are – a prescription for success. Success, regardless of how competitive their market segment has become. This prescription is blended from the recent thoughts of those confident merchants mentioned above and what little I can still recall from my previous life as a corporate marketing director. So here goes:
Decide what your business is – and do whatever it is well. This seems obvious, but there are places we all visit that are physical examples of the adage: “Jack of all trades, master of none.” If you aren’t very good at anything, you will fail in competition with anyone who is very good at something.
Build discriminators that set you apart from the herd. Give buyers a reason to buy your goods or services. Warning: If they come only because you offer the lowest price, you better get a new business model. There is no loyalty at the bottom of the business food-chain. Someone comes in a penny or two cheaper – your customers defect in a flash. If you’re playing the price game, when the Big-Box guys come to your neighborhood, they’ll run you off the field just about as quickly.
An example of a well-timed move to escape this situation is the repositioning of the Fairhope Greer’s. They are now focused on a market segment above Wal-Mart and aren’t going to face a head-to-head price battle.
Value your customers – and treat everyone as a potential customer. Greet them, engage them, help them. Consider everyone who walks through your door as being in a relationship with you that is intended to last for as long as the both of you shall live. And make sure all of your employees know the most important people at your business are the customers – not you, or a fellow employee, or their significant other. Nobody but that customer.
Communicate enthusiasm for what you do. Dispirited sales people aren’t going to win many sales. Worse, they are likely to fail to do what I just prescribed in the previous paragraph and the shop is going to fall short of the mark on the following advice.
Create an interesting and pleasant buying environment. Cause people to want to come in (Bass Pro Shop does this exceptionally well). Not every product is exciting or shopping experience entertaining, but you can make your place attractive. Failing that, at least aim for clean. Shabby-chic may be trendy, but it works best if the emphasis is on the second word.
Make buying – the act that keeps you in business – quick and easy. Never forget that inventory control and computerized point-of-sale data collection systems and the like are tools for managing your business, not for managing your customers. If a process makes work for the customer – like in, “Would you get me one that the scanner can read?” – change it. Some retail stores look like computer software businesses with a shop attached for the sole purpose of demonstrating nifty new programs. Unless computers are your business, make all this stuff invisible to the customer.
Give your customers unexpected value. This is not lowest prices. Although customer loyalty price breaks, free delivery, gift-wrap, etc. can fit here, my though is to provide something they value that isn’t commonly available.
If you have people rushing in minutes before closing, don’t just stay open until they leave – tell them about the extended hours on selected nights and Sunday sales (that you just decided to try). Remember what people are looking for and see if you can get it – call them with the news of success and offer to order it special.
This makes the customer feel the same way: Special – even if they decline to buy. They will remember and they will tell their friends. A personal example: I always start my hardware shopping at our small local store. The one that stayed open longer than anybody else when hurricanes were headed our way.
And if you’re doing all of these things, work continuously to retain shoppers’ interest. Make your place the place they always want to visit. Come up with innovative ways to keep in the public’s eye. Host a party for some obscure-but-clever, unserious, anniversary or milestone (Trotsky’s birthday or the Vernal Equinox come quickly to mind). Hire a clown or an authority on something (they may be one in the same) to appear at your shop. Make it light, make it fun, make ‘em laugh.
People enjoying themselves at your place of business will want to compensate you for making them feel good – by buying. And better yet, they will want to come back to do it again, or at least to relive the joy of the moment.
So there’s my prescription for business success. And it’s guaranteed – to be worth at least what you paid for this newspaper.
Contact Pete Gleszer at jubilee@lagniappemobile.com.
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