Month: January 2017

Why am I excited about retail today?

Part one of a series.

I find myself energized when I walk into a great outdoor retailer or send a friend to a great independent retailer. But I often wonder: “What are the things that come together to make me passionate about the place the retailer holds today?”

I’ll try to answer that question over a short series of blog posts, starting within the realm of customer service. I am not a person who likes to only operate on feel. I prefer to balance my gut with numbers and facts whenever possible. Here are some notes from an American Express Customer Service Survey in 2015:

• 60% of customers have halted a transaction because of a poor customer service experience
• 68% of people are willing to spend more with companies that provide a better service experience (of these, many are willing to spend 20% more)
• 80% of Americans agree small businesses place a greater emphasis on customer service than large businesses
• ‘Excellent customer service’ is the second most important factor consumers consider when choosing a company with which to do business, immediately after ‘good value for the price’

To recap the above: Anyone who considers coming into a retailer feels that good service is a very important factor in where they spend money. The vast majority are optimistic that they’ll get better service from a small business AND they are willing to pay more for that service! Sounds like pretty phenomenal opportunity, doesn’t it?

Suddenly, it is no wonder Amazon is investing heavily into retail! And with meaningful personal interactions struggling despite social media, a real in-person interaction is so powerful that people will spend 20% more!

That’s a reason to be excited about retail. More than ever, customers both want good service and are willing to invest to get it. But what about getting customers in the door? More to come in part two of this series.

I had a great chat with a bicycle retailer just before the new year regarding the rise of the mobile mechanic. I’ve heard more than a couple of retailers express concern about Velofix and Beeline as threats. Mobile repair isn’t a new idea at all, but combining a great online booking system and the repair-shop-in-a-van is a solid model that is definitely worth watching. I think both of these companies will find great success over the long haul because of their customer-centric approach.

Working with this retailer, we distilled the appeal of the mobile bike mechanic down to this (note that it is almost exactly Velofix’s marketing slogan): The customer saves time and rides more.

To add some more details, here are some assertions about why this model appeals to the customer:

1. The customer cares that it is easy and transparent to book a service.
2. The customer cares that it is done professionally (on-time and accurate).
3. The customer cares that they can put in a minimum time investment to execute on 1 and 2.
4. The customer is probably willing to pay a premium for this reduced time investment.

Now, when you look at it like that simply, it begs the question:

“Are you, the retailer, keeping pace with those customer desires?” 

My retailer friend and I did some math and determined that, even in his expensive and densely populated area, he could break even on a company van by charging a very reasonable delivery fee (or by simply raising service rates slightly across the board). Add an online calendar into the mix and, voila!, you have met the customer needs.

Making customers happier and countering a perceived threat? It doesn’t get much better than that.

Happy New Year to all.

I’m very excited to announce that I’ll be presenting two seminars at the CABDA expo this year! I can’t wait to see old friends and make some new friends too. More details will be coming soon.

Other awesome news: If you’re a retailer interested in attending IT IS FREE until January 16! Sign up right away!