Today every shop keeper or a small business owner has one question in their minds, how to compete with e-commerce sites/ malls/ big brands who have deep pockets to market like anything and also they can offer huge discounts??!!! Can small business owner survive these strategies? or it is time to end or change the business?!!
1. Respect your customers : You will say what's new in this point, we know how to deal with customers! Many times our behavior leaves a negative impact on customer's mind when they come to shop for something. Customer has a right to check, compare and know all the things about the product they want to buy. A shopkeeper has to show him all the options available and without making faces and taunting him, one should assist him to buy what he needs! Sometimes a customer will end up the visit without buying anything, but this should never be the reason to disrespect the customer. Sometimes owner is very well behaved but the staff is kinda rude towards handling the customer. Here staff should be strictly instructed about proper behavior with the customers. Remember if customer feels that shopkeeper or service provider is acting rude then that customer will be lost forever and he will tell this about others as well. So behave well with your customers.
2. Offer discounts to the customers : Most of the customer who buys online or from the malls have only one reason: "they offer discounts!" Yes that is true! Though in some cases there are no upfront discounts, some changes MRP and again its lowered to show it as a discount. But what we have to understand that humans like discount and when they give lower money than what they are asked make them feel good about it! Psychologically this might be boosting their ego and they feel like getting a victory in a war! so why not let your customer have that winning feeling every time when they come to shop. Let's assume that any business allows 5-50% of the profit margin. So can't we share small part of our profit with these customers? Remember a small discount offered to customer will make him return to shop. So choice is yours!
3. Give your customer a experience rather than a business transaction: Every time a customer comes to shop or sometimes just for inquiries , let them be comfortable in your business place. If customer does not feel comfortable, he will stop visiting your shop. You can give him something extra by providing a home delivery, extra carry bag, small discount, some credit if you are knowing him, free sample or just a smiling face! Is this very difficult? we have to understand that everyone expects to get something extra than what he actually pays. So let's not disappoint the customer and give them a great shopping experience.
4. Quality will never put you out of competition : Sometimes to attract customers, shopkeepers compromises the quality of the product to reduce the cost and increase the profits. However in long run bad quality or lower quality products will affect you negatively. It is better to educate customer about the quality and price of the product rather than giving him lowered quality product at low rate! This will build trust and customer will feel that he will never get cheated in your shop!
5. After sales service is not a rocket science : When customer buys certain products which comes under warranty they have a faith that local shopkeeper will be helpful when it comes to warranty or change the product. sometime customer can return the product after trying or may be size change is needed. So never let your customers down when it comes to after sales service. Let it be repairing or checking the product onsite, replacement or changing the part or whatever it takes, stand with your customer if you want him to come again at your shop!
6. Be a friend to your customers: eCommerce sites and big brands have CRM where they remember all the important dates of customer like birthday, anniversaries etc. A person will feel good if he/she gets a message and special offer for shopping on their special day. There is no need for important software for this. You can use calendar feature on your phone and set a reminder of every year. See the magic
7. Arrange expo once in a while : A different set of vendors can come together and can organize a exhibition kind of thing in festive season or off season so customers can come and they can have feel of shopping mall and get all the items under one roof. shopkeepers of food stuff, clothes, cosmetics, jewelry, grocery etc can come together and give customer a feeling of mall culture. Vendors can keep this exhibition in bigger halls or banquets. This will beneficial to both customers and vendors. Every vendors will get other vendor's customers and all the customers will come in contact with new vendors. They can market this expo well in advance with newspaper ads, pamphlets etc so customer won't go to malls especially in festive seasons or off season sale.
8. Vendors can buy together for bulk quantity and discounted rates: Nowadays people can use new ideas to increase profitability in business. Particular vendors of a region can come together and buy products together so they can negotiate better with the upper level and ask for additional discount. This will increase the profitability and they can compete with malls and eCommerce sites. This is not very simple but if once can implement this effectively it will give them huge advantage.
In this way any shopkeeper can survive the difficult time where Ecommerce sites and malls are ruling the market. They can try implement above pointers and see themselves what is the difference they can feel. Nothing is permanent and nothing is impossible. If you have a will and you don't mind going for an extra mile for your customers then no one can you throw out of your business!
Cheers!
1. Respect your customers : You will say what's new in this point, we know how to deal with customers! Many times our behavior leaves a negative impact on customer's mind when they come to shop for something. Customer has a right to check, compare and know all the things about the product they want to buy. A shopkeeper has to show him all the options available and without making faces and taunting him, one should assist him to buy what he needs! Sometimes a customer will end up the visit without buying anything, but this should never be the reason to disrespect the customer. Sometimes owner is very well behaved but the staff is kinda rude towards handling the customer. Here staff should be strictly instructed about proper behavior with the customers. Remember if customer feels that shopkeeper or service provider is acting rude then that customer will be lost forever and he will tell this about others as well. So behave well with your customers.
2. Offer discounts to the customers : Most of the customer who buys online or from the malls have only one reason: "they offer discounts!" Yes that is true! Though in some cases there are no upfront discounts, some changes MRP and again its lowered to show it as a discount. But what we have to understand that humans like discount and when they give lower money than what they are asked make them feel good about it! Psychologically this might be boosting their ego and they feel like getting a victory in a war! so why not let your customer have that winning feeling every time when they come to shop. Let's assume that any business allows 5-50% of the profit margin. So can't we share small part of our profit with these customers? Remember a small discount offered to customer will make him return to shop. So choice is yours!
3. Give your customer a experience rather than a business transaction: Every time a customer comes to shop or sometimes just for inquiries , let them be comfortable in your business place. If customer does not feel comfortable, he will stop visiting your shop. You can give him something extra by providing a home delivery, extra carry bag, small discount, some credit if you are knowing him, free sample or just a smiling face! Is this very difficult? we have to understand that everyone expects to get something extra than what he actually pays. So let's not disappoint the customer and give them a great shopping experience.
4. Quality will never put you out of competition : Sometimes to attract customers, shopkeepers compromises the quality of the product to reduce the cost and increase the profits. However in long run bad quality or lower quality products will affect you negatively. It is better to educate customer about the quality and price of the product rather than giving him lowered quality product at low rate! This will build trust and customer will feel that he will never get cheated in your shop!
5. After sales service is not a rocket science : When customer buys certain products which comes under warranty they have a faith that local shopkeeper will be helpful when it comes to warranty or change the product. sometime customer can return the product after trying or may be size change is needed. So never let your customers down when it comes to after sales service. Let it be repairing or checking the product onsite, replacement or changing the part or whatever it takes, stand with your customer if you want him to come again at your shop!
6. Be a friend to your customers: eCommerce sites and big brands have CRM where they remember all the important dates of customer like birthday, anniversaries etc. A person will feel good if he/she gets a message and special offer for shopping on their special day. There is no need for important software for this. You can use calendar feature on your phone and set a reminder of every year. See the magic
7. Arrange expo once in a while : A different set of vendors can come together and can organize a exhibition kind of thing in festive season or off season so customers can come and they can have feel of shopping mall and get all the items under one roof. shopkeepers of food stuff, clothes, cosmetics, jewelry, grocery etc can come together and give customer a feeling of mall culture. Vendors can keep this exhibition in bigger halls or banquets. This will beneficial to both customers and vendors. Every vendors will get other vendor's customers and all the customers will come in contact with new vendors. They can market this expo well in advance with newspaper ads, pamphlets etc so customer won't go to malls especially in festive seasons or off season sale.
8. Vendors can buy together for bulk quantity and discounted rates: Nowadays people can use new ideas to increase profitability in business. Particular vendors of a region can come together and buy products together so they can negotiate better with the upper level and ask for additional discount. This will increase the profitability and they can compete with malls and eCommerce sites. This is not very simple but if once can implement this effectively it will give them huge advantage.
In this way any shopkeeper can survive the difficult time where Ecommerce sites and malls are ruling the market. They can try implement above pointers and see themselves what is the difference they can feel. Nothing is permanent and nothing is impossible. If you have a will and you don't mind going for an extra mile for your customers then no one can you throw out of your business!
Cheers!
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