Get fit for business with the Retail Doctor

I have just attended a business breakfast that was hosted jointly by the Balmain/Rozelle and Leichhardt/Annandale Chambers of Commerce. There was a very interesting speaker, Brian Walker (aka the Retail Doctor) and I thought what he had to say would be of interest to many of my followers, as well as to local retail precincts in general.

There was a lot of information that I won’t (or can’t) attempt to convey in totality – merely to comment on what stood out most to me, and my interpretation of it. For more information from the source please go to www.retaildoctor.com.au.

Multi-channelling

The whole retail landscape has changed dramatically over the last decade. However, and despite the protestations of Gerry Harvey and others, online sales account for only 7% of retail sales. Brian estimates that in five years this will have gone up to 12-15% - hardly signalling the demise of the bricks and mortar store.  Shopping online has had a lot of media attention but that doesn’t mean online-only retailers are sitting pretty – one of the biggest, Amazon, has only recently started to turn a profit.

There are multiple facets or channels in the whole shopping experience. These range from the more traditional high street shopping strip, large shopping malls, catalogues and mail order to websites, e-commerce, blogs, or social media. These are constantly evolving and changing – for instance there is a move in Australia from malls back to a community ethos of high street shopping.

Each method appeals to different demographics in different ways and there are not many retail businesses that can just stick to one or even two channels – unless perhaps they are in some sort of monopolistic position.

Cross-channelling

The proportion of customers who research before buying is very high, particularly for high ticket items – whether this is online before buying in-store, in-store before buying online or any permutation thereof, not forgetting the research (or sale) may be done with the competition.

Research will also be done with other customers, past and present. This can be face to face or increasingly through online reviews and social media. The latter cannot be underestimated, as previously word of mouth was one-to-one, now it is to the whole world and sometimes can make or break a business.

So not only should a retailer use multiple channels, but these channels must be complementary and guide an existing, new or potential customer to the ultimate goal of a sale.

Shopping experience

Good customer service, pricing and good staff are not really unique selling points – not many retailers would admit to falling short on any of these. Rather they are just expected and are prerequisites to being fit for business and growth. What businesses can compete on successfully is providing an experience.

Customers are people who have five senses to which you can appeal. Online you can (currently) only appeal to two, sight and sound. Of course there are many other ways to attract a customer such as having a unique product, appealing to vanity or fashion, or just good marketing (“you can’t afford not to have this product!”).

Whatever the strategies or channels used the experience needs to be about the customer – but keep it real!