As they interview various folks, you hear their stories of the oppression, poverty and abuse they suffered in other countries. They have excitement on their face, and are so relieved to finally be part of the USA.
We so frequently bitch and moan about how hard it is, and all the problems that we have, but when you listen to these folks, you realize we ain’t got it so bad. One young lady discussed the rape and torture that were part of everyday living for her. Others discussed how they lived in throw together huts and are now thankful for the opportunity to work at what we consider to be menial jobs.
Albeit, I am one of those who will point out what I think is wrong here at times. Today, I have a sense of appreciation and thankfulness that I was born here, and have had every opportunity that I wanted to pursue.
I will shut up and go to work now. All the best to you.
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Market Share Recapture
Over the past year, I have been traveling from store to store, group meeting to group meeting, distributor conferences, markets, etc. Along the way, I have spoken to hundreds of independent retailers and listened to their stories. We have shared ideas (both good and bad), and have tried various things. As a result, we have now assembled an offering which supports an independent retailer, and postures the retailer to regain market share in their trade area.
When you look at the independent channel over the past decade, there was a tremendous shift in terms of the manner in which consumers secured furniture, appliance and electronics. There was growth amongst the big box folks, warehouse clubs, and the emergence of e-com as a viable tool. As a result, billions eroded from the independent channel. Many independents went away. Of those that are left, they are forced to do business differently to compete. There are buying groups and associations to assist, however the retailer still needs to think and act differently.
If you are an independent retailer, your mantra has to be “Market Share Recapture”. The next part is the “How” question. Everyone wants to know how. It is not just working hard, retailers already do that. It is not about Service. Folks know service comes from an independent, and that is an advantage, however most important is to be VISIBLE at the time the consumer is in purchase consideration mode. Where do 90% of consumers go before they embark upon the store visit? The Internet. You need to be found. But, being found is no longer the answer. Retailers need to be compelling.
If you ask a consumer (as we do in focus groups and usability studies) what matters to them, here is what the majority of them say: They want to be able to find the retailer through a generic search of the product category they are seeking, see a good website that depicts the retailer, and see the offering that is available on the floor. They love that retailers have catalogs, but they want to know what they can get quickly, and at what price. They do not mind spending a little more in exchange for the service they get and the support of their local community. However, when they go online, they see a competitive set (big box and e-com) that illustrates all the features and a price. In most cases, independents are not showing a price or their actual inventory. The consumer who finally has free time at 9:00 PM does not have time to track down an independent the next day. They are going to buy online or use the big box because their website was postured to help them. They would love to work with an independent, but the independent made it too hard for them to purchase. That is a very sad truth.
Those independents who are illustrating their in-stock (or available quickly) goods with a price are winning. We see examples everyday. As a result, they are gaining back in their markets. Those who are not continue to slide. The sliding has to stop. Commit to this if you are an independent. Stop handing your earned market share away. Consumers want to support their locals. The locals need to support the consumers by helping them purchase what they want.
Stay tuned-we have some exciting stuff coming from Tailbase. We are committed to helping the independents gain back market share. We are building a set of tools that will help achieve this. The tools we have today work, but we have some phenomenal stuff coming…
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We are approaching another holiday season. This past year has been something. We got through an election, horrific weather occurrences, and we seem to have weathered the economic storm. But, did you?
This year, I have traveled more than I ever have. I have been on retail floors, in manufacturer/supplier showrooms, and pretty much all over the place. I have always talked about tandem marketing, and the concept of having your online/social marketing work together to reach and entice an audience. I have listened to those who are doing it, and they are telling some stories.
There was one retailer who is up 65% this year. Another who doubled his revenue. Yet, another who is speaking of a major expansion due to success. Despite the economic condition, people still possess a need for home furnishings items. If an effort is made to capture your local audience, and entice them, you stand the best chance of conversion.
I wrote an article for Retailer Now for their High Point Market issue: http://www.retailernowmag.com/putting-it-all-together/
If you are a retailer, and you are not thinking like this in terms of the ROI of your online marketing, then you are probably not gaining market share either. Make a playbook and succeed!
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In speaking with a client early this morning, he made reference to all of the work we have been doing with the IHFRA Reps, retailers and manufacturers relative to integrating social media into a media plan, using iPads, and embracing Internet Marketing. I have known this retailer for over a decade, and he has been a Web4Retail client since inception. His comment to me after explaining everything we are doing was “You Guys are Changing Everything!”
This perplexed me for a moment. We have not changed anything. We are helping our clients adapt. I explained to him what I meant by helping retailers/manufacturers “adapt” to the changing environment. I have been barking at folks for well over a decade about embracing the Internet and the opportunities existent. Now, with the growth of Internet Marketing, and the growth of Social Media, if a retailer/manufacturer fails to “adapt”, there are many risks.
In the inverse, many of our Web4Retail clients who have embraced a solid Internet Strategy, have had a very good year. They have grown, gained market share, and now have a consumer audience who interacts with them daily. They are not only active in their physical communities, but in their virtual communities as well. As a result, they have consumers who consider them first when embarking upon a purchase. It is like anything else; you tend to go to whomever is familiar when you need something.
What does all this mean with a new year approaching? Well, if the analysts are accurate, 2012 is going to be a better retail year. If that is the case, are you postured for it? Are you currently in a position to engage and convert your audience? You are going to be competing with those who are. Think of the retailers in your market who are succeeding. Do they have a strong presence online as well as in social media circles? Are they referring consumers to their social media (i.e. Facebook Page) in their ads?
There are common success factors amongst those who are succeeding in retail with a strong Internet Marketing and Social Media presence. It is time to get prepared to take advantage of the opportunities that will present themselves in 2012. If you are a retailer, and elect not to grow your community/audience, good luck competing.
All the best for a phenomenal 2012!
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As we roll out of the High Point Market, we are now looking to the balance of the year and wondering how this calendar year is going to finish up. I have spoken to those who we deem experts. I have reviewed various data elements, and looked at a whole bunch of research. I then talked to some retailers who are doing pretty well, and took a look at their forecast.
Here it is. This is not a crystal ball, or a tea leave scenario. What we are talking about here is placing your marketing in a forum where the consumer is today. The consumer is spending the bulk of their time online. Specifically, the target consumer in our retail segments is spending her time in social media channels. Now, how do you engage a slippery consumer who is out there on social media?
That is the question weighing on the minds of consumer product marketers each and every day. The answer is varied, but what we are seeing is a new and innovative method of consumer engagement. It can be a cute contest, a neat event in a store, or something clever. The key is to utilize every channel at your disposal to get the word out. Then, utilize your social channels to interact and engage.
We are seeing conversions grow by the utilization of this method. It is the new world of marketing. If you embrace the new manner in which the consumer is showing receptiveness, you may just like the way the remainder of the year goes.
This year, the holiday season is predicted to be slightly better than last year. If you want to have a nice close to the year, fire up your boat and move it to the part of the pond where the fish are.
All the best for a great finish. Run through the tape.
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It is all coming together…
In speaking with folks in various industries on a daily basis, there is one theme that seems to be resonating. Those that have made an effort to engage their audience and grow a community, are having success. In addition, they are reducing their spend on some media which is leading to a better net.
These retailers, who are in home furnishings, auto, electronics, gift, etc. are no different from the retailers who are reading this right now. The only aspect that separates them is they are reaching consumers, and converting them because they are attempting to actively engage them.
My advice to you is get started if you have not done so already. Get your social channels in place, and begin to work with your consumers. I assure you that it will be fun and educational. That is something we hear from many of our clients. Like any relationship, the level of engagement will dictate the level of success.
For instance, if a consumer feels they are receiving pertinent information from you and your staff, they are going to keep you top of mind when they think of a product or service that you provide. It is all about keeping the lines of communication open to keep the relationship fresh.
Make sure you take the time to think about how you are marketing, and as to whether you are currently communicating with your consumers on their terms. If you are seeing business fall off, you may want to look in this area first…
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Every Lead is an Airplane
While in the midst of a marketing discussion today, I was thinking of an airplane analogy relative to the manner in which we tend to treat leads today. Every consumer out there considering a product you carry, is like an airplane looking for a place to land. The plane will land somewhere. It is essential that you provide them the landing strip.
Where I am going with this? For you to consider (if you are a retailer) the fact, consumers in a variety of ways, are seeking what you have sitting right there in your store. However, as they take off in pursuit of their needs, are they getting instructions from your tower? What is meant by that is are these consumers aware you can help them?
In the majority of cases, a consumer will venture out online to determine a place to secure what they are seeking. There will be all types of options. Are you one of them? If you are, what are you providing that differentiates you? Can consumers see testimonials (reviews/citations) from other consumers about their experience at your store? Will they be dissuaded in any way? Are you interacting with them via social media?
If they are not seeing you, the point has come to just say “Shame on You”. With 90+% of the consumer audience turning to the Internet to search for products, good luck trying to get by on 10% of the audience and on repeat business.
So, in relation to “instructions from the tower”, it is essential that you give consumers a depiction of who you are, and what you are all about. The consumer expectation is that you will engage them. If not, there is no reason not to go to the big box or warehouse store. If they do not perceive your service offering as an advantage over going to the places they are not expecting service, then you have left them without a choice…
So, please bear in mind, it is essential that you ensure that the consumers in your market know they are welcome to land at your store.
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More Learnings From The Road
For the past 3 weeks, we have been out on the road working with retailers, and talking to folks in all different kinds of industries. Aside from selling clients (why we travel), we do everything we can to learn what is and is not working out there from a marketing standpoint.
If you think back just a few years, I am sure you will agree that the marketing landscape has changed a great deal. Consumers are all over the map in terms of what they admit enticed them. As yesterday was Valentine’s Day, we all can relate to doing something, or providing an “enticing” gift.
It is no different from the consumer’s perspective. They want to be romanced. To those on the fashion-oriented, design inspired retail end of the spectrum, you do not need a reminder as to how the consumer has changed. Have you changed? Are consumers leaving your store/studio feeling as though they were enriched by the experience? If not, how do you differentiate yourself from the vanilla stores and big box stores who are providing a value proposition?
We all get hungry. We all want to eat. Sometimes we drive thru at a franchise because we do not perceive a dining experience to be available that will also enhance us as well as fulfill a calorie requirement. That all changed for us recently. A local restaurant that is a typical pub decided to put in a new dining room, and enhance the menu. The decor they elected to go with is exceptional, and the chef has totally nailed the menu. Our kids actually now exclaim they want to go there rather than get a lead coated toy in a box with grease and filler.
It is no different in retail. You service someone right, and provide them the right fit, you then have a raving fan. These fans have friends…
However, as mentioned, the landscape has changed. Folks are willing to go online and secure goods that are brought to them via UPS. They perceive it more convenient even though they are paying (in most cases) a ticket price higher than found on a local retailer’s floor. Why?
1) They did not find a local retailer when they searched online
2) They found a local retailer, however the retailer’s web presence was so archaic and non-female friendly that they bounced (terms for a consumer who looks at a site and immediately leaves)
3) There was nothing enticing anywhere relative to that retailer and the service they provide.
Times have changed, and those retailers who want to gain back their market share will do something about it.
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As many of you know, it is still Bowl Season. It used to be Bowl Week, but now there are 35 bowls between December 18th and January 10th. Modern media has found a way to take the national championship drama away from New Year’s Day, and stretch it to a 3 week period. Soon, I am sure we will have Bowl Month. However, being a fan of most sports, I watch. I like college football, and in the case of the Orange Bowl, the Goo Goo Dolls did halftime.
In watching the Orange Bowl, which was Stanford against Virginia Tech, I was amazed that Stanford has over 300 offensive plays to choose from. Yes, 300 different ways to move the ball down the field. In fact, those of you who are football fans, see the little flip chart on the Quarterback’s arm with plays. In the case of Stanford, they also had a flip chart on the Center’s arm. They won the game, however I just found it interesting as to the level of diversification they were at in terms of offense.
I began to think, imagine if we approached marketing to consumers in the same fashion. If we ran our marketing plan like Stanford’s playbook? Bear with me, I am not suggesting that we need 300+ different methodologies, however I think we need to assess what plays are working, and then run more of them. Also, look at the level of diversification existent in your current marketing plan. Are you postured to reach the consumers you want to reach utilizing the tools they use?
The take away here is that we need to be diversified, but also we need to do more to attract consumers in the manner other entities are. We need to go on offense. If folks are out there with a greater response rate via web and social media, then we need to be there. If a certain type of television spot seems to be working better, then we need to be running more like that. If print is no longer moving the ball, then print needs to have a seat on the bench.
I am suggesting that you become the head coach of your marketing, and utilize your marketing plan as a coach runs a playbook. It has never been more essential to be strategic.
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Another Fresh Start
Well, here we are just hours away from a brand new year. If you read the predictions for 2011, and buy into them, you have to believe that 2011 will be a better year than 2010. There are varied opinions as to how much better. The good news is everyone agrees upon better. So, we have that going for us. Which is nice…
The real questions is what does that mean to you? We can all set goals, write beautiful plans, continue to talk about all the things we are going to do differently. However, what are we actually going to do? The hardest thing is not settling back into a familiar routine. We all see it. For the first two weeks of January, you cannot find an open machine in the gym. Everyone is embarking upon their resolution plan. Then, mid-January comes and there are some open machines. By the end of February, the place is back to normal with 30-40% occupancy at peak hours, and real quiet during off hours.
Consider what you are doing from a marketing perspective. I was talking with a client this morning relative to his plan for the first quarter. Some of us his goals are to better expose himself in an expanded trading area, increase engagement with his customer base, and to help his salespeople utilize modern tools to interact with existing and prospective customers. As opposed to just talking the talk, he has hired us to ensure it comes to fruition.
One of the lessons I learned years ago when I was running the marketing and sales of organizations was that we sometimes need to task others and delegate to them. There are only so many things we can handle within our work set. In addition, we do not always have time to learn a new tool or methodology. Sometimes, we need to depend upon others. I had a hard time doing that, but learned how much more effective I was when I bought in to using folks who were expert in their area.
So, my challenge to you, and I hope you accept it, is to actually do something new and different in the new year. Use some folks who know what they are doing in their expertise area, and make your whole organization better. Since we know there will be some degree of growth in 2011, there will be consumers out there seeking what you have. Your ability to lure them will determine your size of the pie.
It’s a whole new world. Adapt to it and enjoy. Happy New Year!
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