last word
conference
The last
Use the recession as
WORD
an agent of change!
By Nik Davis Director of Consultancy Services at Retail Assist
Nik Davis, Director of Consultancy to change is particularly critical for concepts that evoke a response and
Services at Retail Assist, believes store-based retailers. The world of what learnings apply to you?
that retailers should take a robust e-commerce has irreversibly Experience your own stores through
approach to looking at their oper- changed the purpose of store shop- the eyes of a customer – not just
ations that will help them both to ping. A store visit must now be through formal market research.
thrive in today’s climate and to about more than simply buying a Get friends and family to give hon-
build stronger businesses, capa- product and the experience is now est feedback, chat to customers in
ble of adapting to tomorrow’s critical in a way it has not been for store, and get comment from social
challenges. many years. Stores need to entice networking sites. Run brainstorm
the customer to buy on the spot or workshops with managers and em-
Not a day passes without a com- encourage them to buy subsequent- ployees to define your desired cus-
ment from some source or other as ly from their own online site. The tomer experience – their first hand
to where the recession is on its cycle. changes needed can be addressed experience, whilst not a substitute
Regardless of where we are on the more easily by asking three key for your vision, brings a practical
cycle (and it’s only with hindsight questions: Where do we really stand perspective, and their involvement
that we will really know) the retail in the market in terms of the seg- aligns them with your vision.
market has definitively changed and ments in which we operate and
Nik Davis Director of will continue to do so. Boom times, compete? To what extent do we An Agile Business
Consultancy Services at retail-only as we knew them, are unlikely to re- represent an experience that will en- This is about ensuring processes are
technology provider, Retail Assist. turn in the short term and the ef- courage customer footfall and efficient, costs are minimised and
fects of this recession will simply be spend? And how agile are we when hard measures in place to ensure
replaced by new challenges. In order it comes to shaping our offer to the that the business is on track. Carry
to prosper, retailers need to accept, emerging retail environment? out a high level ‘key performance in-
understand and adapt to this reality dicator’ analysis to identify areas of
before the next set of changes occur. The Market the value chain that are not perform-
You need a new methodology to A pragmatic, robust assessment of ing to requirements. Then drill down
beat the recession and this will re- your strategic position to realistically to those areas to understand what
quire a mindset that combines intu- show your strengths and weaknesses needs to be improved. Summarise
itive retailing ‘nous’, a fixation on in relation to market segments and the key issues that are causing the
customer needs and a keen eye for competition is the starting point. Be majority of your pain and carry out a
operational efficiency. brutally honest about the market you root cause analysis on them. Keep
Firstly, accept that society has are in and your ability to compete. asking until you get to the bottom of
changed. Shoppers are now far Don’t just rely on gut instincts and the problem. Structure a simple,
more savvy and selective and with perception. Analyse the facts to hard-hitting and focused programme
the volume of competition out there prove or disprove where you think of activities for improvement. Ensure
they can pick and choose as they you are. Don’t be afraid of change. If the programme has dedicated re-
wish. One of the greatest casualties the market cannot deliver growth sources with clear terms of reference
of the recession is customer loyalty. and profit, face up to it and look at and can deliver improvements quick-
In this climate, differentiating loyal all of your options. Shop with your ly. Immediate benefits should certain-
customers from disloyal customers is competitors and compare what they ly be achievable within 3/4 months.
a false categorisation. With so much do to your own stores. Also, bring These three elements constitute
competition, shoppers are only as your management team together to the key facets of a business, and
loyal as the last experience enjoyed go through this process and involve must be in balance. More than ever
(or not) with you. Therefore you your employees and suppliers. before, retailers need to get the fun-
need to fight harder to ensure cus- damentals right and the rest will flow
tomers are loyal. You should ap- The Customer Experience from that. This recession and what-
proach every customer engagement What is it about your offer that ever economic climate succeeds it
as a first date; in a market where draws customers to your stores to may just reconnect us with what it
customers have less money to make them spend? Define the type takes to make and grow a successful
spend, loyalty comes from the com- of experience you want your cus- retail business.
plete offer, not just from the brand. tomers to have. Think about re-
The answer lies in crafting an offer tail/business models that you can For more information visit
that combines great products, at- aspire to: not necessarily your com- www.retail-assist.co.uk
tractively priced, with an alluring en- petitors, just retailers who have
vironment to create a memorable done something that resonates with
customer experience. That’s the you. Visit their stores, thinking
brand of the future, not the retailer about the experience you are having
name or product label. The necessity and why – what is it about such
26 Garden & Hardware News
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