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.
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What will you do with the information?
Informing or just offering another discount
Just days after Christmas, we read this report about holiday shopping:
“While online holiday shopping is robust this year — given a projected 22 percent spike compared to last year — 36 percent of retailers aren't collecting customer preference data and that doesn't bode well for capitalizing on the e-commerce swell.”
“In addition, according to a Possible NOW survey, 31 percent of businesses aren't even sure if they are collecting customer preference insight, according to a press release on the data.”
We have concern for the 36 percent who are not gathering any information, just as we have concern for the 31 percent stating they are not sure if they are collecting any information that provides insight to the preferences of the customers.
At the advent of online retailing there was a company with the domain of toys.com who was thought to be the big threat to every brick and mortar toy business. The business failed early and hence few of us have ever heard of it. What we remember was at the time of auctioning what remained of toys.com was what turned out to be the biggest asset they had – their customer data. More was paid for that database than all the inventory they had. Even at that early time, people recognized there was value in information about people that would shop online.
Of course, our first concern today will be to make sure that whatever your business model, you are giving customers a reason to share their information with you. And therein lies the challenge and solution.
Why would a person share this information with you? Whether the customer is a business or an individual, as much as we have all gotten used to being asked for the information, why would you share your email with another business?
As one who studies this question and the answers businesses give, I make a point to always give my information so that I can see what the business is going to do with the information.
The unfortunate answer, for the business, is that the business wants to email the customer on a frequent basis telling them what products, and/or services, they are currently offering at a discount price.
Nothing more; just an email that says this is what we have on sale for a specific number of days. Hopefully the customer will see something in the email they want or need and decide to make a purchase. The customer may come into the business, call in an order, or place an order online.
The business hopes the customer will also see something else they want or need and make that additional purchase. If only it would work that way. Making the additional sale online means the website has to be more than a series of pictures and list of product features and a price.
If the person calls or comes into the business, it has to be more than the person in the business saying, “Anything else you need?” or “Did you find everything you needed?”.
And when the business looks at the results, they wonder why there were not add on sales or why sales spike upward only when they have sent one of these emails. The final comment frequently heard is one of, “all today’s customer looks for is a discount”.
Let’s take a look at what we have created. A customer chose to do business with us and we asked to stay in touch with them. The customer shared their contact information and we began to send emails with the overall theme of the emails being, “here is a sale price on some stuff we sell”. Nothing more; just a message of, “we discount”.
Any wonder of why this is the customer we get?
What if we were to change the focus of the message? Other reports, as well as a simple observation, show people are more tense than last year. There is no sign of life getting easier, and nerves becoming calmer.
What if our email message were to change to one of enjoyment? We call this content marketing; Telling customers how to use and enjoy the same products and services they have purchased from us.
We can tell of techniques and new offerings from our business. We can share news about the industry that we find to be relevant to our customer. We just won’t continue with the item and price constant messaging.
What will you do with the information?
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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.
