We have been hearing about how online shopping is steadily growing, and the local brick and mortar businesses are feeling the pinch.
Yet regularly, I see stories on the lifestyle and current affairs shows telling us about the latest place to buy products cheaper online overseas. I for one feel very let down by our local media running these stories especially encouraging people to purchase products overseas. They are encouraging people to take their money away from our local businesses and our local community but fail to inform the public of the possible repercussions.
Our retail businesses are struggling, and when customers choose to purchase their products online, and especially overseas, the businesses have no option but to cut costs.
One of the largest costs to a small business in Australia is staff wages. We like to get paid well in Australia, to support our modern lifestyle. So as customers shop elsewhere, we loose jobs. And what about the consequences to our economy when our earnings are sent overseas. No wonder we don't have money for our schools and hospitals. And all this is because, in many cases, people shop online just to safe a few dollars.
I buy online only when I can't find the products in a retail store or from a local retailer that sells online for convenience. I prefer to support my local small business. I have owned small businesses before, I understand their struggles.
Like many others, I still prefer to shop in a 'real' shop because I like to touch, feel, try on or see the product work. I prefer the people interaction, the advice I get and the support I get when things wrong.
Online shopping it's just sooo BORING!! Nothing beats the retail experience. Unless of course the retailer does not deliver what is expected of them!
People shop online for reasons other than to save money. Some local retailers really need to lift their game in order to attract the customers back to their stores.
Sadly there are a lot of brick and mortar retail stores that are simply boring. Boring product selection, boring displays, boring shopping experience. Watch how long people stay and browse in your shop, if they are in and out quick, then you haven't engaged them.
Some have poor customer service, staff may have an unfriendly manner, don't know how to answer questions about products (some are even too scared to talk) the business has little to offer in retail, they are out of stock or they have very poor selection on offer, or even worse, in order to keep costs down, they stock cheap and poor quality products. No wonder customers take their money elsewhere!
To stay in the game and cater to todays customers, small businesses need to make the shopping experience a fun, engaging and pleasurable experience.
Provide a shopping experience that will give the customer 'something to talk about' with their friends. An experience that they will look forward to, over and over again.
How can this be achieved?
Firstly, know your customers.
Know your customer demographics, their needs and wants. If they are not buying from you, they are buying elsewhere. Find out where and why? Is there a need you have failed to meet? And if you get the answer, ' I bought it elsewhere because it was cheaper' don't give up. Ask them, ' what would compel you to buy the product from us at the RRP?' and keep asking questions until you get the ideas you need to make the necessary changes.
Some ideas to get you started are: convenience, expert advice, follow up and support, incentives from a loyalty program, personalized attention, the chance to try before they buy, make it more fun and exciting.
Know your trade
Study the retail businesses, brick and mortar as well as online, see what makes them successful, and what makes others fail.
Study your own business, look at it critically to assess where improvements can be made. (Sometimes you may need outside help as you are in the business everyday it will be hard for you to see areas for improvements).
Are your staff attending regular training to keep abreast of industry trends? Do they keep updated with the latest product knowledge so that they can provide the best and latest service and advice? (Many small businesses don't send staff to training as they see it as an expense. I think it'll cost the business a hole lot more in the long run if the staff are not trained properly)
Do you offer a good selection of products and services to meet all you clients needs? Do you offer the best quality products, with a good reputation? (Many businesses choose cheaper products thinking it will be easier to sell, but especially in tough times, customers seek out quality, they want value for their money)
What makes your business unique? Why SHOULD customers buy from you? (These are critical questions that most small business owners have no answer for, and will be overshadowed by businesses who not only know this well but communicate it effectively to the consumers)
Do you have a well thought out and documented business, financial and marketing plan, updated yearly? (No one should be running a small business without these documents, these are critical to the business success and survival)
What is your marketing strategy? Internally as well as externally? (And I am not talking about advertising)
Is your business retail area designed for maximum impact? Is your retail and merchandising updated regularly and is current? Do you have a show-stopping display? Are customers encouraged to engage with the products before they buy? How?
What makes shopping fun and exciting with you? Why would customers choose to buy from you? (Differentiate yourself from your competition and especially the online competition)
Are your staff immaculately presented, well spoken, approachable, friendly, informed and can close sales consistently? Do they actively work at building a long term customer base for the business? What expertise can your staff offer your customers that customers cannot get elsewhere? (In small business, your staff ARE the business)
Is there a future for brick and mortar businesses in Australia?
In my opinion, absolutely! But they cannot continue doing what they have always done and expect to survive. Times have changed, and local retailers are not only competing with their local and national competition, but international via the online presence as well. And this will not go away. In fact, shopping online is fast becoming a fact of life even for a 'traditionalist' like me. I love shopping in real stores.
So my advice to small business is, shine above everyone else, make your business stand out, make it really interesting to shop at your store, give me something to talk to my friends about. I want to support you, and I don't mind spending the few extra dollars. But make it fun and exciting!
