DECISIONS, DECISIONS, DECISIONS Getting the Customers to Leave Their $$$ in Your Store           —Don Capman, President              J.D. Associates

It seems like only yesterday when my partner, John Deery, got this bright idea of starting a business to help retailer's become more successful.  Having been retailers ourselves for many years, we watched the business of retail become more and more competitive and less and less traditional.  Independent retailers were becoming a dying breed; “downtown” businesses were closing in droves; and the “majors” were trying to conquer the world in “cookie-cutter” malls, which were springing up everywhere.

In an attempt to decimate the small-to-medium-sized retailer, these “big box” retailers were spending millions on retail automation that was far beyond the means of the “ordinary” retailer.

So, how did the specialty retailer, not only survive, but also prosper in such a hostile retail environment?  Although all smart specialty retailers always keep a secret bag of tricks up their sleeves, the answer to this question is relatively simple.  The successful specialty retailers provided and continue to improve on providing:

1. exemplary SERVICE
2. outstanding SELECTION

Over the years, the meaning of these two words has matured significantly.  This article will primarily focus on the evolution of service in specialty retail.

SERVICE

In the ”good ol’ days”, POS simply meant automation at the register or “POINT OF SALE.”  Basically, this involved nothing more than replacing the mechanical cash register with a computerized system that would help keep track of the inventory.   Specialty retail had finally caught up with the supermarkets!  Unfortunately, if the retailer did not put the correct information into the computer, the scan would not be accurate and the customers would end up getting overcharged or undercharged for their purchase.  We always had a good idea of how many customers were being overcharged but hardly ever found out when customers were being undercharged. Isn’t it strange how some customers can be so selective about mistakes?  At the beginning of the POS age, customer service, although a goal was not always at the forefront. 

As time went on and customers demanded more service, many retailer's implemented solutions at point of sale, such as customer loyalty programs, where regular customers received special treatment and were rewarded with discounts or merchandise for shopping in the store.  As affordable technology became available to the specialty retailer, customer purchases could easily be tracked at the register and “POINT OF SALE” now known as “POINT OF SERVICE.”   

It soon became a proven fact that most stores implementing and maintaining customer loyalty programs received more repeat customers and ultimately sold more merchandise.

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Unfortunately, many retailers still have not converted their “POINT OF SALE” counters to “POINT OF SERVICE” stations and have not learned how to reap the benefits of this easy-to-use technology.

As time marched on and technology and competition became more and more sophisticated, the specialty retailer had to continually come up with new ways of providing superior service that could distinguish them from the “big box” Goliaths.  To address this challenge, a new and exciting concept was taking retail by storm.  This concept shifts some of the attention away from the exit-line checkouts and moves the focus into the store where the customer is actually trying to make the decision to buy or not to buy. This in-store location is called the “POINT OF DECISION."This is the critical point when the customer either picks up the product or walks. Try asking yourself a simple question: “Do I make up my mind to buy a product when I am in the checkout line or do I commit to that purchase when I pick up the item on the merchandise floor?”  Unless you are at the checkout and some strategically placed impulse items catch your eye, the decision to purchase is made where the merchandise is placed in the store.

There are many major “POINTS OF DECISIONS” in stores.  Observe your customers when they approach these areas and see if they make the desired decision. Perhaps they don’t even notice the merchandise you are trying to sell.  Maybe it’s not attractively displayed or perhaps there isn’t enough information about the product and its benefits.  Don’t be afraid to ask your customers' opinions.  After all, they are the reason you stay in business.   Each and every product in your store should speak to them and scream “BUY ME!”  If it doesn’t say that, it doesn’t belong in your store.