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What the smart customer can't get over the internet

August 3, 2006

I am a reader, dear reader. And, since I travel so much to various retailers around the country doing sales/design training and consulting, I have a lot of time to read a lot of business books.

For any of you who are following my blog on a regular basis, you may have noticed that I haven't written for a little while. That's true. Why? I've been thinking. I've been thinking about why a few independents are thriving and most independents are struggling. The difference, I think, is understanding and, then, acting upon the one thing that customers can't get from e-commerce interaction.
 
As I talk to owners and retail sales consultants in various parts of the country-this is what I hear: "Everyone is price shopping me on the internet." "I can spend several hours with a customer, build a relationship, and then they will still try to shop what I've shown them on the internet." "How do I combat this?"
 
Here are my thoughts:
 
Recognize that e-commerce is growing, not declining, as a way to purchase furniture and that you have to develop OTHER uniquely competitive differences in order to make it worth it for the consumer to purchase from you vs. an e-commerce website- which is often easier for them. What is the main competitive difference you can offer that a customer can't experience over the internet?
 
Face to face interaction.
 
What are you doing to actively manage and build the credibility of your sales consultants?
 
Have they had first class training-not just in product knowledge, but in sales and design? I am sure all of you know that customers are coming in more educated than ever via HGTV, magazines, the internet, etc. Have you provided any type of training to them other than basic sales, systems and product knowledge training to help them gain confidence when they are making whole room sales? What are you doing to help them build their personal credibility with your customers? Are you branding them on your websites? Don't know what I mean- email me at tkp@sbcglobal.net for more information on this concept.
 
The ONLY thing a customer can't get over an e-commerce site is first rate face-to-face design assistance. They may get good help over a phone, but it's not the same and you can all use this as your unique selling proposition, but you have to make the commitment to focus on it. Building warm emotional bonds is one thing most sales consultants are pretty good at already. I'm not talking about that. I'm talking about taking it to the next level and beyond.
 
What customers can't touch, see, hear or feel over the internet is…. creativity. Retailers-this is your unique selling proposition. WHATEVER you can do to encourage, stimulate,  grow  and promote creativity and design ability in your sales teams is going to be what keeps your customers coming back to YOUR store and your people. Customers want access to great creative ideas for their homes and they want to feel acknowledged, needed, listened to and….dare I say it…loved.
 
Invest in excellence-not pretty good-but excellent. That is the key-nothing else. All of us will pay( a little more)  for excellence when we need it to get at a desired goal.
 
 Do your consultants have the knowledge and the capabilities to build their design credibility with your customers to the point where that customer will only want to work with them and, most importantly, where the customer needs and values that design imput to the point where they will pay extra for it?
 
If you can answer yes to this question and have consultants who do this on a regular basis, please email me with THEIR stories- tkp@sbcglobal.net  Let's build an archive of sales excellence together.
 
 If you're a retailer who works on volume and low pricing, I understand that this strategy is not for you.
 
But, if you're answer is no and you're not a volume/price point retailer- recognize that furniture is a commodity now and you must invest in what the internet can't provide- face-to-face time with creative, design-savvy people.
 
How many of you own an I-Pod or have kids who do? A perfect example of creating higher perceived value through design innovation.
 
Let's take that lesson and apply it to the PEOPLE in our business. Higher sustained profits and margins will be the result.

Posted by Leslie Carothers on August 3, 2006 | Comments (1)
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August 24, 2006
In response to: What the smart customer can't get over the internet
Undetermined commented:

Excellent article ! Owners/managers are not investing time and effort to help their salesfloor people become successful. It is easy for the consumer to say "I'm just looking" then walk off with prices in their heads and just purchase off the internet. Take time to invest on proper sales closing techniques, product knowledge, and watch store sales go up.

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