Can retail survive the internet economy?
It’s no secret that retail businesses have been under assault from internet retailers for some time. Let’s face it, shopping online has never been so easy, convenient or, dare I say it, satisfying.
The reasons for this are plentiful. First, a truly staggering selection of products are available for purchase on the internet. Online retailers are always open, and customers can shop for products at any time, day or night, right from their computer or even their phone, if they’re so inclined.
Furthermore, online retailers have access to lots of inventory so, whatever the customer is looking for, is probably available – at an attractive price. And in many cases, the purchase made online will likely be delivered overnight, at no charge, to the customer.
How to compete?
This is the place where I’m supposed to point out that a good point of sale system will solve all your problems. Well, that just wouldn’t be true. (But it would be a good first step.)
To really compete with the online competition, you have to start by giving your customers a compelling reason to do business with you, again and again. If they don’t have a good experience shopping in your store, with all the options available to them, they aren’t likely to return.
Look at your store from the customer’s perspective. Are you making it easy for them to do business with you? (See “the Checklist," below)
Power of POS
One way to free up staff members to get them out on the floor to create that great customer experience is relatively easy: Automate those time consuming back office chores like purchasing, ordering, and receiving.
A point of sale system that can suggest which items to purchase using your store’s historical sales data, instead of rigid minimum and maximum quantiles, would be a huge asset. When inventory purchases are based on upcoming need, you’ll find yourself buying less, meeting customer demand with fewer out-of-stock events, and parking your profits in your checking account instead of in overstocked merchandise.
Let’s say that you have this awesome, intelligent, feature-packed, point of sale system in place, ready to perform all these tasks. Still, there’s one more requirement: a leap of faith. Turning these important duties over to a piece of code hiding inside a computer can be more than a little unsettling. You’ve already made a financial commitment to the product you’ve chosen. Now, you have to trust it to deliver the promised results and benefits. At least give it a chance.
Change is good
It is possible to survive, even thrive, in the current environment. Staying competitive may require you to think about your business a bit differently, to look at it through different eyes. You may have to offer services or products that you never imagined in order to engage with your customers and get them to spend more time wandering the aisles of your store.
In spite of all the technology available to you today, the success of any retail enterprise will ultimately rest with the ability to build strong relationships with customers and give them a positive shopping experience. If you can do this, you will create a legion of loyal customers willing to jump in their car and drive to your store to interact with you and your staff.
Why? Because they look forward to the experience they will have in your store rather than ordering something passively over the internet.
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Retail 101: The Checklist:
• Does your store open up early enough to serve contractors and stay open late enough for people who work all day?
• Are employees actively greeting customers and engaging with them to direct them toward the products or solutions they’re looking for?
• Is your staff well-trained? Do they have enough knowledge to suggest add-on items that will increase the total sale?
• Is your store clean and neat? Are prices displayed so they are easy to see?
• Does your inventory reflect the unique needs of customers in your area?
• Are you stocking the right depth of these and all other products?
• Are you giving your repeat customers an incentive to return by signing them up for a rewards program?
• How smooth is your checkout system? Are cashiers well trained and able to quickly handle any situation?
• Do you have an outside sales person working in the community, finding new customers and serving your current customers?
• Do you offer free delivery?
George Maginnis is on the marketing team of Paladin Data Corp. For more information, visit Paladinpointofsale.com.