Posts Tagged ‘how to kill competition’

The ability to market your products or services is the very essence of business.  Very often businesses tend get wrapped up with matters like branding, advertising, pricing and promotion and they lose sight of what really matters.  Buying decisions are interplay between demand and supply and here are 4 simple truths that make or break the retail business…

Ability to Consume

Target people who have the ability to consume.  If you are looking at running a travel company for women then your target group should be women who wish to travel alone, looking for exotic travel locales and interesting experiences, working or non-working but with the ability to pay for the travel experience.

Recently I was reading an article about wedding photographers who capture impromptu moments and make the wedding album look real vis-à-vis others who make the couple pose and make the whole thing look orchestrated.  The people who are opting for the services of such photographers are young, hip and happening couples who don’t mind paying the price!

Willingness to Buy

Many a time people have the ability but not the willingness to buy.  This is all about one’s attitude towards money and spending habits which are rooted in our upbringing.  A colleague was talking about how she stops and thinks about whether she really needs something before she buys it because that’s how she was conditioned to spend.

While people might have the money to buy they might still not set the cash counters ringing at your store because they are just not ready to spend.  It’s not that your products and offerings are wrong or inadequate they are just not willing to buy.

Propensity to Consume

Why does spending around festivals and special days increase?  There isn’t a science to it, its just that around festivals everyone spends, its customary to buy and exchange gifts and goodies so even the most unwilling buyer ends up spending.  People are just more inclined to spend around that time.

You need to identify events and occasions when people have greater propensity to consume and make a sales pitch accordingly.

Opportunity to Spend

When you go out for a movie you tend to buy popcorn at the theatre grab a few drinks or even catch a meal before or after.  It’s not like you go out thinking you are going to spend or with a plan to spend but it’s just that you have more opportunities to spend en route and back.

Good retailing is about giving people greater opportunities to spend which they may or may not take but you still put it out there.  Probably why restaurants are exhibiting works of art that people can look at while they eat and choose to buy if they wish to later!

Image: http://www.freedigitalphotos.net/images/view_photog.php?photogid=2365

Why do we love some people?  You might say because they are nice, loving, thoughtful, helpful and the like but I would say it’s mainly because those people make you feel good.  The “feel good” factor underlies every long lasting relationship that we have be it with our family, friends or colleagues.  It’s the same with brands.  As customers we love brands that make us feel good.

While brand loyalty is becoming scarce and tastes and preferences become even more transient the writing is on the wall…You should focus on building a “feel good” brand.  Here are 7 reasons why…

Brands are guided by certain underlying principles and these are essentially the reasons why business owners should work towards building “feel good” brands:

 Dominant Moods and Expectations of the Time

If you look at consumption patterns at any point of time they depend on the dominant moods and expectations of that time.  Take for instance a festive occasion like Christmas when all purchases around that time will resonate with the spirit of the festival.  It is a time for family, gifts, food and laughter so products and services consumed around Christmas will reflect that.

Closer to home, Diwali, the festival of lights witnesses high consumption of sweets and traditional sweetmeat shops have come out with a range of sweets that are sugar free thereby creating  “feel good” brands that help you eat sweets without the guilt of indulging. 

Lifestyles When Prosperity Grows

When incomes rise, prosperity grows, consumption patterns undergo a sea change and the preference for brands that help people show that they are “moving up” in life.  This is probably why recent research studies have shown greater preference for brands among people from small towns in India. 

A good number of these people shop online for big brands at www.fashionandyou.com and the like and when asked why they said, they could afford brands that make them look good, feel good and help them align their buying motives with product features. 

An effective appeal to the consumer through advertising is one which recognizes the consumer psyche while helping them strike a balance between what they want and what the brand offers them.  Ask yourself whether your brand is recognizing lifestyle changes and keeping up with them. 

Quality Assurance during Inflation

An inflationary trend shows a sharp rise in income which is not accompanied by an increase in the supply of goods and services.  A brand that assures people of quality will sell even if prices rise because it still offers value which is far beyond money. 

Bottom lines Matter When Tough Times Loom

The depth of your product line is its strength especially when tough times loom large.  The best example of this is that of gold jewellery, prices of which have spiraled at a global level.

 In a country like India where gold is a preferred investment and a big part of the socio-economic fabric of life, jewellers who have  realized the importance of creating light weight jewellery, selling exquisite designs in diamonds and coming up with one gram gold jewellery have stood the test of time.

They have customers queuing up to buy jewellery even today when prices are soaring simply because they have a good bottom line of products. 

Variety is the Spice of Life

Novelty has great allure for all human beings which is probably why we reach out to wear a new outfit vis-à-vis the older outfits in our wardrobes and the same applies with products. 

Giving customers something new that makes their lives simpler or interesting always works.  An example of this is India’s fascination with kitschy and quirky products.  This has heralded a business opportunity for businesses like Chumbak and Tappu ki Dukaan which give Indian buyers the chance to bring a slice of kitsch in to their homes. 

Reinvention is the key to survival in business and if you want to score brownie points with your customers and set the cash counters ringing then click here to know more about how and why you can reinvent your business offerings and strategies. 

Personalization is the Key

The customer today does not want just a T-shirt; he wants “his” T-shirt.  Brands that allow for personalization are greatly preferred by customers who seek to flaunt their individualistic style and make a mark with their appearance and lifestyles.

It needn’t be a long drawn out process that you might think it will be.  A friend of mine who bakes cupcakes is very much in demand because she allows buyers to suggest their own toppings and decorations.  A simple product like a little cupcake encrusted with your name, your favorite flavor of icing and topped off with a piece of fresh fruit  becomes just what you want it to be because she allows you to make all the choices. 

For more ideas about personalized products and services click here. 

Your Brand is Not What You Think It Is

To sign off on this blog post, I would say most business owners fail to realize one small but very important detail, “Your brand is not what you think it is”.   Your brand is what other people think it is.  This is why you have to begin by thinking about the core values that you what your brand to stand for and then move on to thinking about it from a third person perspective.

For instance a customized tailoring store might regard itself as standing for personalization at the price the customer is looking for and willing to pay.  But customers may regard this store as one which will help them make personal style statements without compromising on quality. 

Our relationships with products and services are built on the same premise as that with people around us…the ability to make us “feel good”.  Are you building a “feel good” brand?

Image: http://www.freedigitalphotos.net/images/view_photog.php?photogid=2617

Most people might be surprised by the title of my blog post for today.  Why would anyone want to drive customers away or even want to know what you can do to drive them away?

 Well I’m not saying that business owners do anything to drive customers away consciously or deliberately but yes…many of them do things that have the same consequence…whether consciously or unconsciously they end up driving customers away.

Here are the top 3 things that can irk customers no end to the point that they might just never come back to your store…

Unwelcoming Attitude, Behavior or Tone

A friend of mine was talking to me about two of the most well established brand names in Pune city.  I won’t name the brands but let me just say one is a very famous bakery and the other a well known bookstore.  She said, “You know what?  The attitude of the people at —–bakery and —-bookstore makes me sick.  The one thing these people don’t want is a customer coming to them.”

I asked her why she said that to which she replied, “It’s written all over the faces of the sales staff.  They are so unwelcoming towards customers and will not extend a helping hand when you need it.  This isn’t just about me and my experiences.  I’ve observed this each time I’ve been there.  They don’t need customers in fact they are under the illusion that customers need them.”

There you have it…you can turn customers away if:

• You don’t extend a warm welcome
• Are unwilling to help them find what they are looking for
• Are rude and/or snappy with people when they come to you
• Couldn’t care less about customer satisfaction
• Refuse to answer queries

If you want customers to visit your store and keep coming back then you have to improve your people skills.  Start from the moment you say hello, offer to help and make suggestion, don’t cut people off and pay attention to your body language. 

Imposing Your Ideas on Customers

A designer store I visited to get my clothes custom tailored for my cousins wedding was manned by the owner, a young girl who had just set up the store.  After looking at the display I felt I should get something tailored instead of picking something off the rack so we sat down to discuss the designs.

I am not comfortable with low backs for my sari blouses, embellishments hanging from ribbons that are used to tie backs of the outfits and I made that quite clear.  But the designer went on telling me how “in” that is and why I should wear low backs and embellished ribbon tie ups.  After fifteen minutes of explaining how uncomfortable I was, she really didn’t seem to get it.

Am I going back to her?

Definitely not.  The problem with her wasn’t that her work wasn’t good, she had an excellent flair design and color sense but she wanted to impose her ideas on me.  She failed to realize that comfort in clothing is equally if not more important that the fit, tailoring and fashion trends.

If you impose your ideas on customers you are in fact refusing to listen to them.  A good businessman or woman always listens to other people.  Give your customers what they want don’t shove what you want to give them down their throats. 

Promising but Not Delivering

Reliability is really high on my list when I’m looking at a supplier or store from where I make purchases.  I expect to get my goods delivered when I indicate that I need them, not when it is convenient to the supplier.

I was a regular member of an online circulating library and when my membership expired I renewed it online and kept my cheque towards the subscription ready for collection by the library staff who came by to drop off books and collect books and payment. 

One week later when the cheque had not been collected, I called the office to ask what the problem was and they said they would send someone in a day or two.  That did not happen.  Eventually six months later they called to ask me why I had not renewed my membership and I told them what had happened.

The person on the line said, “Okay we’ll get it collected in a day or two.”  There was no apology for keeping me waiting and not turning up let alone not having access to the convenience of my books being delivered at my doorstep.

 I told them that I did not want to renew my membership.  Reason?  They promised to do something but didn’t do it for months together.  They had proved to be unreliable.

Customer retention is not always about great offers, sales and discounts.  More often customers don’t mind paying more if you are polite, welcoming, listen to their ideas and deliver what and when you promise to. 

If you want your customers to stay think about what to do and what not to do!