Convenience from the Customer’s Perspective

IT’S YOUR UP

Tom Jennings Retail Training Expert

Tom Jennings is a lifelong member of the flooring business. Since selling his family’s retail business in 2006, he has served the industry as an educator and speaker. He is a past board chairman of the WFCA and is currently the board chairman of WFCA Services, Inc. He may be reached at tomg.jennings@gmail.com

Convenience from the Customer’s Perspective

Many times, when visiting with locally owned flooring retailers, I will ask them what primary advantage they feel that they have over the national chain stores. The response that I seem to hear most often is, “we are more convenient to do business with” or “we give better service”.

When asking them to further explain their beliefs, these dealers almost always explain that they can deliver a more satisfactory purchase than the chain stores. While this may often be the case, I am convinced that too often the local store never had the opportunity to make their presentation, since they did not ask themselves what defined convenience from the customer’s perspective.

Let’s examine some items that define convenience in the customer’s eyes:

Hours of Operation

This is one area in which I believe the chain stores have gained the greatest advantage over independent retailers. Let’s face the facts — people like to shop evenings and weekends. As proof, examine your buying habits. This is when the majority of major purchases are made. I have seen statistics that indicate that over 50% of the retail flooring sales are made between 6 pm Friday and 6 pm Sunday. You don’t have to like this fact — but you do have to acknowledge it. If your store is not available to be shopped the majority of these hours, you are likely denying your business the opportunity to serve a large portion of the retail market. Customers view expanded hours as convenient.

Availability of Credit

Today most retailers have credit plans available to them. An alarming number of them, however, do not seem to embrace them as a major tool to increase volume. The chain stores are constantly using financing as a primary tool to increase the number of sales and the average ticket size. Why all the emphasis on credit? Because customers respond! You cannot sell credit as an afterthought. It must be a primary part of your offer and you must understand how it works from both the customer’s and the suppliers’ point-of-view. Having credit readily available and knowledgeably presented is viewed as convenient by the customer. Fumbling around with the paperwork and time-consuming details is not. Do your credit homework today!

Let’s face the facts — people like to shop evenings and weekends. As proof, examine your buying habits. This is when the majority of major purchases are made.

Regular Promotions

The chain stores have gained a major advantage with customers because they are very good at staying in contact with their customer base. Think of the frequency with which you receive advance notice of an upcoming promotion, special appearance, etc. from businesses where you have made previous purchases. Flooring is usually a postponable purchase. Customers will wait for a reason to buy. When products are promoted for a specific time, many feel that it is easier to get a decision reached without additional delay. Are you making it easy for your existing customer base to respond to new offers? Your competition is.

Ease of Shopping

Most chain stores do a reasonably good job of departmentalizing their display floors. It is clear to the customer where the various floor types are shown. The point of purchase displays and graphics are typically helpful. Cynics will say that this is to compensate for less knowledgeable staff. This may be true, but it is a common belief that the written word takes priority over the spoken one in the customer’s mind. Is your display floor logically arraigned with appropriate graphics, or is it just one more rack shoved aside of another? Customers will respond best to product offerings that are the easiest to understand. What type of mental pictures is your showroom helping to create?

Claims Processing

Try as we may, claims are a fact of life for any business. Many national stores recognize this fact. They tend to have return and replacement policies that are liberal and clearly stated. They understand the lifetime value of a customer is not just the current item in question. A customer does not feel as if she is preparing for battle when she approaches the customer service department at a national store. Can the same ease of mind be found at your store?

I certainly don’t want to come across as believing that the national stores have all of the advantages and that the local independent dealer doesn’t stand a chance. Quite the opposite is true if the local dealer will make changes to enable their business to compete in today’s market. Business, as usual, isn’t going to get it done anymore.

Many lessons can be learned from large operations. They spend countless dollars researching what the customer views to be most to their liking. They have done the hard part. You simply need to pay attention to the findings. Then do what you can do best – execute! This is always the area that the large stores have the most problem with. You will have the advantage of being able to respond in a more timely fashion, but only if the customer elects to give you the chance.

Remember that the customer will ultimately get what they want. The only question is where are they going to get it? Make them believe that all things considered, it is most convenient for them to select you! ❚