I was recently shopping in an upscale vacation town and overhead a conversation between two middle-age women. Okay, I put myself in a position to overhear them, but it was all in the name of research for you, my readers. Both women were what I would consider affluent consumers and regular buyers of luxury goods.
They were both carrying several shopping bags and had just exited a women's boutique. One woman turned to the other and said, "Last year I would have bought that outfit." To which her companion replied, "Same here. It was cute but not today."
Granted, I only heard part of the conversation, but it was a textbook example of today's consumer. They had shopping bags in their hands and money in their wallets but they made a conscious choice to pull back their spending a bit.
This is exactly why it is so important for specialty retailers to execute at the highest possible level. Today's consumer is still spending money - but not as much as last year. There's little room to fall short. You want these consumers cutting back in someone else's store and not yours.
Here are three things specialty retailers can do to maximize their opportunities with today's consumer.
1. Have what the customer wants in stock. Having the right product in stock has always been important. Today it's more important than ever. Not having a product in stock gives your customer extra time to consider whether he/she should buy the product or not. I can't necessarily measure it but I guarantee that second chance sales and drop ships from stores are down this year compared to the past.
At the same time, the staff needs to sell what's in stock. Obviously you want to match the customer up with the best products that meet their needs, but getting customers excited about something they can't buy right away rarely meet their needs either. Sell what's in stock!
2. Create a great first impression. That first minute when a customer enters a store is crucial to setting the stage for a great experience. Last year those two women I overheard walked into stores with a lot more purchase intent than they did this year. A memorable and unique store experience will begin to sway the buyer from "maybe I won't" to "maybe I will." As I told a potential client the other day, I'm convinced that the first one or two minutes have a greater impact on sales than any other element of the customer's experience.
3. Engage with purpose. When the economy is humming along most retailers make sales in spite of their approach. When things tighten up, those easy "low-hanging fruit" sales are the first to go. Retailers have to work harder for their sales. That's great news for retailers who can create sales.
Engaging with purpose begins with the belief that every customer is a potential buyer. In order to create that sale the retail staff must make a strong enough connection with the customer to identify his/her true needs and opportunities. "How may I help you?" won't create a sale. Engaging your customer in a friendly non-threatening way will. Asking questions so that every answer leads the associate to recommending a product will. Recommending a product with enthusiasm and passion will. Engage with purpose or leave money on the table.
Those two women I overheard weren't in your store and chances are they aren't your customers. But, every single one of you has customers just like them. It's important to ask yourself everyday, are you and your staff executing at the highest possible level so they cut back their spending in somebody else's store and not yours?
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