Old vs New
I have been visiting my in-laws in Taree (mid north coast NSW, Australia) area. This is a town with about 25000 people. There is an interesting business case study happening in this town. To keep things in order I have keep the name of the stores out of this post suffice to say that the stores in question are electrical goods retailers.
There is one store who has been in Taree for a long time. This store we will call OLD. It is a second generation business and the current owner is in his 70’s. The store is a disorganised mess. It is poorly set out. Also there is the main front section and then you go through a back door to another section (that is if you know where to look). The floor desperately needs attention. However they have a great reputation for service and sourcing anything you may want. Because of the time in town however they have a loyal customer base.
In recent months a new (new to Taree, but has a number of stores in NSW) has opened. This store is very well set out, well stocked and with a large range of items. The store feels fresh, clean and modern. The staff seem helpful and courteous.
Both stores stock similar goods and apparently their prices are similar. Which store will win the bigger business? My in-laws previously a loyal customer of OLD recently bought from NEW. When I asked why, they could not directly answer. However when I started to ask for impressions on the store, the issue of presentation and range came to the fore. (It was not price).
So even though OLD had a loyal regular customer, they lost the business because of the competitors range and presentation of the store.
Too many businesses do not pay enough attention to presentation. It is about the little things that matter. That is the floors, lighting, cleaniness. We notice these items subconsciously.
Remember just because your customers are regular repeat now, be warned that you need to keep fresh.
Service is King (Deliver more value)
Following on from the previous post regarding what is important when the economy has a slow down I know explore the second important item for business. Service is King. In a downturn customers / clients become very choosy in who they use. This applies to the general consumer as well as the business client. Now I hear some people say they become price driven. I say they become more conscious of value. They want value for their money. So it is not about reducing prices, but rather about delivering better value. Not only do businesses have to be more conscious of the value being deliver but they have to make sure that their clients understand the value. AAn often complaint in service business is that client X just does not understand the work/effort etc that has gone into the service. It is the businesses responsiblity to firstly understand what is important to the client and to educate the client on the value being delivered. Take the effort to truly understand what is important to the client. What is it exactly that they are after? Then deliver and exceptional service. With this exceptional service and an educated client your business will thrive in any recession. How can you find out what is important to your clients? Ask them. How can you deliver better value? How can you improve your service?
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