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Technology can be fatal
Is all this technology necessary for your small business?
When as a writer, a visit with the producers and resellers of Point of Sale Systems frequently finds me struggling to keep up with the conversation.
IT is information technology; AI is artificial intelligence; and IoT is Internet of things. I did figure out VAR (Value Added Reseller) but past that I am lost. During conference calls I find I need to keep pencil and paper handy to write down the acronyms they use and take to a friend who owns one of these type of companies and ask her to “translate” what they are saying. Occasionally there are terms even she does not understand.
In our industry, in addition to getting lost in this rapid change of technology, it appears too many of us try to adopt technology because of the fear of being left behind. Perhaps we need to look at this rapid change as being our advantage and not our challenge.
As you consider the next piece of software to install; the next app to download; and especially the next change of how you do business, let me share two examples.
A friend owns a local pharmacy. They have one location; hours that are not competitive with a chain store pharmacy; and a total of three aisles of “over the counter” pharmacy items. What they do that the chain store pharmacy won’t or can’t is special order items for you, get to know you on a first name basis, call to confirm your auto refill prescriptions, and deliver your purchase.
Unfortunately, I observe, they installed a fancy phone system. When you call you get a voice recording with a series of options. All but the last option leads to a series of additional options, including the refilling of a prescription. This is just like the chain store pharmacy.
What if one of the people in the pharmacy you had gotten to know actually answered the phone and said hello? This experience would be unique in that an employee actually engaged the customer in a one-on-one conversation. How many businesses still do that?
The second example is friends owning a liquor store. When we visit they like to share that their business is a “technology business”. As we discuss the need for all of their staff to learn more about the thousands of wines, spirits, beers, and related products they sell, we also discuss the need of employees in any business to practice their selling skills.
Instead, the owners show an app on their phone of which all employees are required to download the same. The app allows the owners to send out messages about new products; products being moved in the store; and allow employees to converse with each other. As the individuals controlling the app, the owners can see which of the employees have participated in discussions and have looked at any of the messages about the items previously mentioned.
It seems they believe their employees do not want to get together to learn but believe the employees can learn everything they need to know by looking at an app on their phone.
Somehow this writer does not see how an app can replace or duplicate what an employee would learn about products and sales skills by interacting with another employee.
When you are next looking at some piece of technology for your business; perhaps to control the lights or thermostat; you are going to see a cost savings.
However, when it comes to anything that has to do with human interaction, technology may not be the way to go. When we remove the one-on-one interaction with our customers, we are only one step away from finding that customer shopping on the Internet.
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This article is copyrighted by Tom Shay and Profits Plus Solutions, who can be reached at: PO Box 128, Dardanelle, AR. 72834. Phone 727-823-7205. It may be printed for an individual to read, but not duplicated or distributed without expressed written consent of the copyright owner.
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With over 25 years of frontline experience Tom Shay is America's leading Small Business
Management
Expert. He's a "Must Have" for your next event.
Perhaps you have investments outside of your small business; gold, stocks, bonds or money market funds. With each you likely know what the rate of return is.
What about your busines? Do you know what the rate of return is for your business? You should. After all, you do not want to be the person who has just bought themselves a job.
We see a lot of social media with what we think is a "sympathy plea" do do business with local small businesses.
It is not going to work. People select where they do business based on positive reasons. We discuss what we are seeing.
Article of the Month
A timely article for the holiday season. With any business that has inventory, are you looking at sales per square foot? Are you looking to see which is the most valuable space in your business? You can increase sales by knowing which items to place where.
Book of the Month
Fix This Next by Mike Michalowicz. We love this description of the book; The biggest problem entrepreneurs have is that they do not know what their biggest problem is.
If you find yourself trapped between stagnating sales, staff turnover, and unhappy customers, what do you fix first? Every issue seems urgent - but there is no way to address all of them at once. The results? A business that continues to go in endless circles putting out urgent fires and prioritizing the wrong things.