The
dynamics of retailing have changed significantly and traders who want to turn
back the clock are just wasting their time. How often do you hear traders say “Just
bring back the customers we used to have” as if we simply have to recreate the
conditions of the past. It is true that we need to understand what drives our
customers but meeting their needs is going to involve totally different ways of
doing things and the customers we used to have no longer exist.
The
answer to our question “Who is in control of retailing?” used to be wholesalers
who searched the world looking for products and then made them available to
retailers often with a high degree of exclusivity involved. Then retailers got
wise and started doing the same thing. They would go direct to factories
overseas, cut out the wholesaler and offer direct to their extremely grateful
customers who liked the new transparency and the slightly cheaper prices that
often went with it. But now, thanks to the world wide web, it is the customer who
has direct access and their understanding of what a product is worth has changed
significantly. Online retailing is quiet amazing. You can sit in the comfort of
your home, examine catalogs at your leisure, make a choice, pay immediately,
and then sit back and wait for the goods to arrive, usually delivered to your
door. The convenience aspect is huge and there is little doubt that the
customer is now in control.
Does
that mean that retailers like us are superfluous? Well, no. Consumers still
want to touch and feel products. They still want expert product advice. And
they still enjoy the bricks’n’mortar shopping experience. But, to put it
crudely, you cannot afford to piss them off because online is a very attractive
second choice. Does that mean that retailers like us need to change how we
operate? Well, yes. We need to get the convenience aspect really right. No
broken promises, no nasty surprises, and no stock outs (unless you set up a
raincheck). Keeping up with what's hot and being innovative is also very important. We need to provide great value at all times, not just in the
product, but in the services that go with it. Even more, we need to show that
we are prepared to go the extra mile to meet their needs. It is becoming
increasingly apparent that price is not the be-all and end-all of good customer
relations. Customers will be prepared to pay a little extra, maybe as much as
20% extra, if the service you provide is exceptional.
