5 Tips That Can Save Any Retailer
As we come to the close of the year, many retailers are examining their performance and finding the results aren't pretty. If that's the case with your business, follow these five tips to get back on the track to success in 2012:
1. Buzz isn't sales. Plain and simple, buzz is bull. It’s a word that means nothing. Without specific sales deliverables or expectations attached, buzz is like a whoopee cushion: a joke that has all the noise and none of the consequences for the real thing. Never talk about buzz as a synonym for sales. Always operate with clearly defined conditions of satisfaction and goals.
2. Never, ever compete on price … ever! Never develop a reputation for having the lowest price or fee and never sell or compete on price. This doesn't mean you can’t price fairly or offer package pricing, just don’t undercut the competition or try to compete with big business. Figure out what you need to charge to make substantial built-in profits above your “nut” — i.e., the cost of doing business.
Most consumers don't go to a business because it offers the lowest price; they go because they perceive value. If consumers perceive your product or service is low quality and offers little value to them, they'll leave, regardless of price. Worry more about value and personal connection to your customer base and less about competing on price.
3. Find your profit center. Know which products, services or activities make you the most money. Then devote your time and resources to sell the heck out of them to secure your present and future. Service them well and create new services for them where and when you can. Doing so builds a layer of protection around your business in slower or leaner times.
4. Three customer nevers. With fleeting loyalty, you must consistently and fiercely connect with your customers. Show them not what you did for them lately but what you'll do for them tomorrow. The best business and customer relationships focus forward. Ask questions, listen to responses and note as many details as you can. And always keep these three rules in mind:
- never take customers for granted;
- never assume you really know your customers; and
- never stop selling your company to your customers.
5. Know your competitors. This may seem strange after I just stressed the importance of never competing on price, however, you need to compete smartly. Your best weapon? Information. Know as much as you can about your competitors. Then ask yourself questions like the following:
- How much business is at stake?
- How do I get ahead?
- How do I compare?
- What are my strengths and what are my competitors’ weaknesses? How do I leverage both of these?
Information is power. Knowing your competition and how to outmaneuver them to better build and run your business is key.
Jeffrey Hayzlett is a former Fortune 100 c-suite executive. He's a well-traveled public speaker and the author of the best-selling book “The Mirror Test.”
