Unless your company happens to operate in a complete monopoly, it has competitors. Perhaps even an industry full of them, especially given how small the world has become through the power of the Internet, and not just the other guys down the street or across town. Given the number of choices a consumer has, why might he or she choose to shop with your business compared to the others? Here are a few thoughts:
Price
There are certainly a lot of customers who look for the best deal they can get, with the Baymard Institute assessing that at least half of shoppers cite price as a major concern. That’s natural, of course, as most people try to be sensible and not waste money if they can avoid it.
But there’s a problem with chasing price, as we’ve discussed on this blog many times. Chasing price is a race to the bottom for profit, which will only result in the thinnest of margins and a list of compromises to minimize expenses—usually in the form of sacrificed quality and service. And it’s nearly impossible to fight that kind of war with big-box stores or online warehouses, as they have supply-chain advantages and access to volume discounts your business probably doesn’t have. Many of those kinds of companies are even willing to sell some of their products at a small loss to get people in the store, where they’re confident they’ll be able to sell other products to get them to back into the profit.
Aim to be competitive on price, sure, but don’t sacrifice so much profit you can’t afford to offer a better experience than your competitors.
Convenience
Another factor that’s often cited by consumers is ease of access or convenience. If someone needs a box of nails, for example, they’ll pay a little more at a locally owned hardware store compared to a big-box one if the small one is much closer and easier to get-in and get-out of.
While your business won’t be able to control how close someone lives to it, you can control the experience of shopping in your store. Consider what processes you can streamline to make life easier on your customers, including how your store’s merchandise is laid out, the signage, and having enough staff to help them as they visit your store.
You want your customers to leave your business happy with their experience, which will make it so much more likely they return.
Quality
Quality is an all-encompassing term: not only does this apply to the products and services you offer, but it also means the kind of customer service and support you provide. It’s a growing concern, too, as more and more customers are pointing to it even over price and convenience.
From a merchandising and workmanship point-of-view, you want to be proud of the products and services you sell. Consider this quote from Apple co-founder Steve Jobs: “I have to tell you there’s some stuff in our industry that we wouldn’t be proud to ship, that we wouldn’t be proud to recommend to our family and friends. And we can’t do it, we just can’t ship junk.”
Think about what your business sells: are you proud of every last item? Would you recommend all of it to family and friends? If the answer is no to anything your business does, get rid of it. Specialize in quality. Focus on what you believe in.
This is especially applicable to your staff, as you should expect all of them to be the best part of your business. No business owner would be proud of bad habits or a lack of accountability—so don’t tolerate those problems and get that out of your company. Hire better, train smarter, and improve forever. If you believe in high standards and your business operates with that same mindset, you’ll attract customers who feel the same way. Those are the best kind, as those are the ones who want the experience you offer even above the products you sell.
Want to learn more about what your customers think of your company’s prices, convenience, and quality? The Brandt Group can help you with all of that. We will develop whatever you need, from a customer-feedback survey to a world-class mystery-shopping program. The data we generate will enable you to make the right marketing and training decisions and ultimately stay competitive in an ever-shrinking world. Fill out our contact form and let’s get started today!
