#WowtoWin2014

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Wowing Customers and Winning Dollars: How To Differentiate Your Store From The Big Boxes

and Get Customers Into Your Store

January 18, 2014

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Creative Business Consulting Group www.cbc-group.net

�25 + Years Retail Industry Experience

�Fortune 500 Sales and Marketing

Executive

�Successful B-T-C Strategist

�Experienced Brand Manager And

Marketing Executive

�Social Media Strategist and Developer

�Contact Information: (617) 437 -9191

Email: [email protected]

Creative Business Consulting Group –Lynn Switanowski

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Creative Business Consulting Group www.cbc-group.net617-437-9191

The Long and Winding Road Toward Making A Purchase in 2013

• Consumers Now Move Along A

Complex, Nonlinear Pathway To

Final Purchase

• 83% Say Path To Purchase May

Involve A Greater Number Of

"Stops," But It Takes Less Time

Than It Used To

• Shopping Today Is A More Personal

And Emotional Experience

• 79% Of Consumers Say Their

Relationship With Brands Is Much

More Personal Than Ever Before


Today’s Retail Landscape Is Full Of Competition And Is Increasingly Polarized

Who Will Succeed In The Battle For The Customer Dollar?


The Rules For Shopping Have ChangedGG

• There Is A Perceived Battleground

Between Big Box And Small

Independent Merchants

• Big Box Stores Can Compete More

Effectively On Price Due To

Economies Of Scale In Purchasing

• Small Independents Must Utilize A

Differentiation Strategy To Gain

Competitive Advantage

• 68% Say Shopping Today Is "Less

About The Brands/Products

Themselves And More About Me -

What They Are Feeling Or Needing

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The Good At Everything Strategy Is A Recipe For Failure

• Many Retailers Try (Unsuccessfully)

To Follow The Strategy Of Being

Good At Everything

• Strategy Is About Trade-offs

• Strategy Is More About Deciding

What You’re Not Going To Do, Than

About Deciding What You’re Going

To Do

• The Good At Everything Strategy

Is Doomed To Failure Against The

Big Box Because They Can Do

Everything As Well As You But At A

Lower Cost


The Differentiation Strategy Is An Opportunity For Success• A Differentiation Strategy Adds

Value To The Products Sold Or

Services Provided And

Distinguishes You From The

Competition In A Noticeably

Superior Way

• It Requires Focused Resources

Coordinated In A Single Strategic

Direction

• It Is A Big Reason Why Some

Stores Succeed While Others Fail

� Successful Stores Know

Where They Are Going And

How To Get There


How Do I Decide On My Point(s) of Differentiation?

• Big Box Competitor Weakness� Slower To Respond To Emerging Customer Needs

� Personalized Service Is A Challenge With Large Staffs

� More Cumbersome Merchandise Adaptations

(Big Box Is Aware Of These Weaknesses And Working To Change

Consumer Perceptions And Operational Execution)

• Our Strengths� Flexibility – Be Able To Change Or Be Changed According To

Circumstances

� Intimacy - Relationship Building And The Personal Touch

Our Strengths and Big Box Weaknesses Present Opportunities To

Compete On Unique Dimensions

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Independent Retailers Have Ability To Respond Quickly To Emerging Consumer Needs

• By Actively Listening And

Scanning For New

Product Ideas, We Can Be

Earlier Movers On New

Trends

• We Anticipate What Our

Customers Want And

Move Quickly To Meet

Those Needs First

• Our Agility And Flexibility

Enable Us To Rapidly

Change Merchandise And

Be First To Meet Emerging

Consumers Needs

Flexibility:


Speed and Responsiveness To Consumer Trends Requires Active Scanning and Listening

• Follow Market Trends In

Order To Adapt To The

Changing Market

Conditions

• Where Do I Find The Latest

Industry Trend Ideas

� Scan Industry

Magazines

� Review Retail

Newsletters

� Talk To Other

Independent, But Non-

competitor Independent

Retailers

Flexibility:


Seek Out New Products To Engage, Inspire And Keep Your Customers In Awe Of Your Store • Identify And Understand Your Store’s

Target Market To Choose The Right

Product For Each Segment Of

Shoppers Who Visit Your Store

• Flexibility And The Ability To Move

Quickly Enables You To Change

Product Selection More Rapidly Than

The Big Box

� Shop New Product Aisles At

Trade Shows

� Use Distributors For Unique

Sourcing

� Use Online Resources For New

Ideas With Low Risk

Flexibility:

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Update Merchandising Techniques To Maintain Advantage

Flexibility:

Merchandising Ideas

• Digital Window

Displays

• In-Store Product

Information Screens

• Computerized Selling

Tools (Tablets, etc.)

• Interactive

Merchandising

Installations

• QR Code Integration


Ask Yourself if Your Visual Displays Are Attracting Customers and Influencing Sales

Color

Flexibility:


Engage In High-Touch Customer Service

• Through Continuity In Staffing,

Personalized Marketing And An

Intimate Approach To Service,

Retailers Can Establish Unique

Relationships With Every Customer

• The Ability To Forge Strong

Personal Relationships With

Customers Will Provide The

Opportunity To Earn Greater Levels

Of Customer Engagement And

Ultimately Loyalty

• Retailers Must Develop Compelling

Reasons Why Consumers Should

Give You Their Business On Every

Occasion

Intimacy:

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Closer Customer Connections, Loyalty and Engagement Increases Share Of Wallet

• Consumers Have Discretionary Spending Money They Will

Allocate Over A Given Period Of Time To Specific Spending

Categories. Your Goal Is To:

� Increase The Overall Share Of Spending Into Your Specific

Category

� Increase The Your Portion Of Their Spending – “Share Of

Wallet”

• Consumers Value Service – Those That Don’t Will Only Shop

For Price And Will Likely Not Be Your Loyal Customer Base

� Price Is Important, But Only Apt (Good Enough)

� They Don’t Want To Feel Gouged, Yet They Are Less

Sensitive To Price

Intimacy:

Gaining Greater Share Of Wallet Requires Exceptional Service –

Consumers Will Make You Earn It


Create A “The Market of One” Message With Your Marketing Tactics And Communication Tools

• Create A “Market-of-One” Shopper

Experience In Your Store With Individualized

Marketing Programs Such As:

• Specific Mailing Lists (Products/Events)

• Personalized Mobile Marketing

Programs

• Customized Direct Mail/Catalog Offers

• Get To Know Your Existing And Potential

Customers, Especially Their Needs – Ask

How Your Business Can Enrich Their

Experience To Drive Repeat Visits

• Communicate With Customers Using The

Tools They Prefer In Order To Identify Their

Likes And Dislikes, Needs And Wants

Intimacy:


Don’t Forget To Use Social Media: Customers Often Break Up With Brands That Ignore Them

• Customers May Feel The

Relationship With A Brand Is One-

sided.

• The Feeling Of Unreciprocated

Admiration Will Often Cause

Customers To Break Up With Brands

• On Average, A Business Loses

About 20% Of Its Customers Just By

Failing To Tend To Customer

Relationships

Getting Customers Back After A Break

Up Can Cost You Both Time And Money

Intimacy:

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Deeper Customer Connections Are Possible Using Social Media; The Question Is Where?

• People Who Engage

With Brands Via Social

Media Demonstrate A

Deeper Emotional

Commitment To Those

Brands

• They Spend Between

20% - 40% More Than

Other Customers On

The Products And

Services Offered By

The Brands

Source: Bain & Company

Intimacy:


Retailer Authenticity Requires Constant Flexibility and Intimacy Across All Customer Interactions

Source: Bain & Company

• Consumers Meet Your Business In Many

Different Ways Every Day, All Year Long

• Your Differentiation Strategy Must Reach

Across All Touch Points of Your Business To

Be Effective ----And Believable

• Create A Product Strategy For Your Retail

Store That Meets Your Customers’ Needs

• Create Market Of One Messages To Help Your

Store Gain Market Share

• Technology Can Help Facilitate Your

Differentiation, To Use It Consistently – Your

Customers Are
