#1 Thing To Do To Compete Against Big Box Retailers
Clients often ask me what they can do to keep up with big box retailers, particularly in an economy when shoppers are more aware than ever as to why and where they spend their money. With stores such as Macy’s, Target, Dillard’s, Walmart, and so many others offering sales of up to 70% off, independent retailers are struggling to keep up. Every action they take when communicating with customers is crucial in whether or not they make a sale, however there is one step that I believe makes the ultimate difference, and that is customer service.
Giving More to Get More
While big box retailers may be taking more off their prices at retail, they are also taking more away from the customer service they once offered. Stores are cutting dollars in payroll, therefore customer service is few and far between on retail floors these days. In a recent visit to Macy’s on State Street in Chicago, it took me nearly five minutes to find a sales associate available to answer a question about a product for me. And forget getting an answer with a smile – I was delivered a quick response that left no opportunity for further inquiry. I ended up leaving Macy’s with no shopping bags despite some pretty amazing sales.
Had I visited a boutique that sold the same or similiar product, I am confident I would have received as much time and as much support as I needed while making my shopping decisions. I’m certainly not the type of shopper who likes my hand held the whole time by a store associate, however I do appreciate feedback and support when I request it. I even appreciate it without having to ask as long as it’s not overbearing. This said, I truly believe that customer service is the #1 thing boutiques and all other independent, small based retailers can offer customers right now – and always.
There will always be the type of customer who shops to save every penny no matter how little customer service she receives, however there will also always be the type of customer who wants support no matter where, why, or when she spends her money. As a retailer, you should strive to satisfy both customers by constantly evaluating how you offer customer service and why you should be flexible when delivering your customer service. Remember that what one customer wants is not always want another wants from you as a sales associate. For example, when shopping at an apparel retailer, I do not like to be told that something will look good on me when in fact I know it won’t because I know my body and my style. That said, another woman may want this type of service and without it may not buy anything. As a retailer, you need to learn how to listen and react to your customers so that you can offer them individually the best service they each will need. Often, listening will come without words, though. Learn body language and shopping habits through experience and over time, you will be able to support your customers with the unique customer service that each potential customer walking through your door needs. But remember – some people really do walk in just to browse, so never be the “pushy” type that doesn’t let this happen, either. It’s all part of the pleasant customer service game.
A Step Further
Beyond providing unique customer service based on each individual shopper, you should also consider your store’s general customer service policies. Consider the following:
1. Return and Exchange Options
2. “On Hold” Options
3. Special Treatments
a. Beverages
b. Accessories to try on, such as footwear and hosiery
c. Digital camera for quick photo snaps of customers in a potential outfits so they can see for themselves – you can even email this to them if they want to show friends
d. Other one of a kind services catered to your store / product
By offering more than what your general big box retailer does, you are providing an experience to your customer that is often worth paying a bit more for. Consider all of these points and evaluate how you stand out among your local big box competition and then ask not only yourself, but your customers, what more can help you in your customer service strategy. Remember – every store is different and every customer is as well. Let each detail that shapes your store, your competition, and your customer also shape your customer service approach.
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Katie Kuertich
I think employees are a big part of customer service, too. Can you give some suggestions on how to motivate store associates? I love my business and feel like my customer service is great, but when I am not in the store, how can I be sure my employees are working their best, too? Thank Retail Minded.
Nicole Reyhle
Making sure your employees are well trained in how you want your customer service to be delivered in your store is essential. I suggest new hire trainings as well as all store employee trainings / updates either every quarter or as needed. This is also a great opportunity to encourage employee morale and offer some fun time as a team. Stay tuned for a future blog on employee trainings!
Marketing Expert
I disagree with your tips. Especially in this recession. No one cares about what service they get. Is all about how much they will save in times like this, period.
Example: Wall-Mart. Every year on black Friday shopper get up at 3am to wait 2-3 hours in a line waiting patiently until Wall-Mart open’s it’s doors to save 30% on selected items only. Now, there’s no Beverages, Special Treatments, smiley faces, clowns, or any type of catering service on behalf of Wall-Mart. As a matter of fact, there’s plenty of fights, arguments and people being rude to each other.
What does Wall-Mart do as a service? They have 6-11 police officers on premises ready to arrest customers.
I’m sorry but I strongly disagree with you. I showed you my prof of my argument now where’s yours? Do you have any prof of any business charging more for the same product and getting more clientele due to customer service only? I would love to hear this one. Teach me all mighty one 🙂
Look, the truth is you do not have the experience or are fit to write anything on this topic. You are an entrepreneur. You have no clue on what you’re saying.
Although my post might sound painfully harsh, it was in no way to bash, to be rude or embarrass you in anyway. This is just a constructive criticism.
Good luck my friend 🙂
Nicole Reyhle
While I do believe there are shoppers who are only shopping to save money and will continue to shop at the places that will give them the best deal, my site is dedicated to small business owners such as boutique stores and independent shops. They cannot compete with Walmart when it comes to the numbers, so what they offer customers is different than what big box retailers are offering customers, such as Walmart. For independent retail business owners, I definitely believe customer service will help keep them alive or even advance them in their sales if they deliver it the best they can as well as better than their direct competition. It’s tough, though. But they aren’t looking to out sell Walmart but rather they are looking to out sell the boutique in the next town over who sells the same products they do.
Finally, I am not telling anyone what to do but rather offering my opinion based on my professional experience. Each retailer should ultimately do what they believe is best for their business.
Toy Store Owner
We have a small specialty toy store on the main drag through town. We have had very little cash flow to advertise, so we have relied on cross-promotions with other businesses and some Facebook ads to increase our customer base–but mostly it’s word-of-mouth that is working for us.
We had a good Christmas shopping season, nearly doubling our opening month of December 2009, despite none of the press fanfare or last year, increased competition from the new Sears “toy store” department, a specialty toy store that put out a catalog and a pop-up toy store all in the same mall less than five miles away. So we feel we are on the right track.
We have always looked at it this way: What consumers are we trying to attract?
While people standing outside Walmart at 3:00 AM make TV news, they are not a majority of consumers, and they are not the customers we are trying to attract to our store. We focus on unique toys, games and puzzles that are NOT even carried by Big Box retailers. The market penetration we need is very small to be successful. We are not looking for everyone, so fishing with a wide net is not the answer.
We need to double again over the next couple of years to reach our profitability goals. Advertising is a puzzle to us. It is very expensive (even on Facebook) and every advertising dollar must pay for itself and then some for it to be worthwhile.
What kind of advertising is most effective for the consumers we want to reach?
Nicole Reyhle
It sounds like you have done a great job already – congrats! I would suggest focusing on local advertising with a concentration in niche markets with your target market in mind. From what you have written, it seems you know who he/she is. From here, find out where else they shop and see if you have advertising opportunities there. Marketing vs. advertising may be your best bet, as well. Local organizations, chambers and cross promotions between businesses can all help support you in gaining new customers.