Why SMRs Compete On Service
By Erin Harris, Editor-In-Chief, Cell & Gene
Follow Me On Twitter @ErinHarris_1
Why do SMRs compete on service? Because they have to. If you’re a small to midsize retailer, you probably can’t compete with the big boxes on product and price, but you can compete (and win) on service. Yet, service goes beyond the knowledgeable, friendly associate, a user-friendly e-commerce site, and call center known for its speedy problem solving capabilities. Immense amounts of valuable data are available to SMRs that can help them better understand their best customers and better understand why they’re unable to drive others to conversion.
Data analytics is not just for the big retailers. Affordable BI (business intelligence) software solutions exist for even the smallest of retailers with the leanest of IT shops. Not only can these solutions rid an SMR’s world of messy spreadsheets and disparate systems, they provide real-time metrics that help them make informed decisions.
If an automated BI solution isn’t in the budget, there are other affordable ways to improve service. In our 2014 Annual Small To Midsize Retailing Research Report, Leslie Hand, VP, IDC Retail Insights, wrote in her forward-thinking, actionable report, Tier 1 Best Practices On An SMR Budget, why new technologies are helping SMRs understand their business better and level the playing field with big box retailers. She also provides sound advice on how social media can boost service. Hand states, “SMRs must look at social media like they do any other part of their operations, making key, strategic decisions that benefit the company with the lightest lifting and the lowest cost. This is not to say that they need to go the cheap route, but they need to look at the solutions that will offer the greatest benefit.” (Watch your mailbox later this year, as Hand will pen the 2015 Annual SMR Research Supplement, which will help retailers understand how to satisfy consumer needs by employing an omni-channel operations platform that is future-proof; assess how their digital and omni-channel programs compare with the competition; and develop a roadmap for digital and omni-channel transformation.)
Taking a cost effective approach to improving customer service is, indeed, one viable answer. Ask yourself: What makes you different? Is it extra-mile customer service? Is it your merchandise mix, branding, and consistently valuable yet unobtrusive communication with your customers? All of these things lead to significant wins for SMRs, but stand-out customer service is the First Commandment of retailing.
Steve Rowen, managing partner at RSR Research, agrees with me. Just recently, I had the pleasure of talking to Steve about what innovation in retail really means. During our podcast, Steve shared his insight on why SMRs, especially, are suited for customer service greatness and why an understanding of innovation can help them achieve this outcome.
There’s no question that intelligent, innovative technology investments can help SMRs grow rapidly. And tech coupled with superior customer service serves as SMRs’ one-two punch that helps them compete with large retailers. But, consistent, personalized customer service on its own is a key to loyalty and increased margins.