ASK THE EXPERT
Doug Fleener
W
ith over 25 years of hands-on retail experience with world-class
companies like Bose Corporation and The Sharper Image, Doug Fleener
knows that boosting sales and profits need not be complicated. Author
of The Profitable Retailer: 56 Surprisingly Simple and Effective Lessons to
Boost Your Sales and Profits and The Retail Contrarian blog, his approach to retail is direct and
practical.
Here, this president and managing partner for customer experience consulting firm
Dynamic Experiences Group LLC shares easy-to-implement strategies and expert insights
on retail topics like cycle discounting and growing the sales force, among others.
1.
The modern consumer looks for discounts
before spending. Critics of discounting think
this strategy can lead to business ruin. How can entrepreneurs motivate consumers to spend without falling
into the trap of cycle discounting?
What the modern consumer is really looking for is value,
but most know how to articulate that only in terms of discounts and deals. And how can you blame the consumer for
that perception? They’re bombarded with daily deals where
anything less than 50 percent off is a bad deal, which is commoditizing these products and services.
To motivate consumers without discounting, companies
must add value throughout the entire purchasing process.
First and foremost, they need to go beyond typical “customer
service” and deliver an experience that exceeds their customer’s expectations. Studies have shown that 85 percent of
all consumers will pay more for a better experience.
Great experiences create an emotional connection between
consumer and business that goes far beyond price.
Welcoming your customer in a heartfelt and authentic way
creates that emotional connection. Give your customer your
undivided attention, or as I like to call it, demonstrating your
priority. Offer him/her a free drink or snack. Always thank
your customer for coming into your business. These are just
some of the many ways to make this connection.
It’s important to focus more on the customer and his/her
needs, and less on the product. Take time to learn three
things about your customer before recommending specific
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October 2011
products and services that meet his/her needs. By personalizing your recommendations, you can focus on the benefits of
the products and services you offer, which increases the value
and makes price less important.
Remember, the customer will always revert back to price if
you fail to meet his/her expectations.
“By personalizing your recommendations, you can focus on the benefits of
the products and services you offer,
which increases the value and makes
price less important.”
2.
Given today’s financial times, how should
entrepreneurs rethink retail strategies?
The biggest change is the increasing importance of becoming
more focused on driving customer traffic. We’re finding that
events are extremely valuable for bringing both existing and new
customers into the business. When consumers are feeling
uneasy about the economy, they’re more likely to tell themselves
why they shouldn’t spend money on a product or service, but if
they have another reason to visit your business, you create
another opportunity to make a sale.
Some of the most successful events I’ve seen over the last
year include charity events, lectures and other educational programs, and events hosted with other companies that share the
same customers.