In thinking about how shoppers see your shop there are five areas where you control the dialogue: the prices that you charge; the quality of the products that you sell; the quality of the service you will provide; the depth of range and availability that you will provide; and the atmosphere of the shop. All are levers that an independent retailer can use to engage the loyalty of shoppers. In thinking about which are the most important for your shop, you need to think about who your key customers are; the 20% who generate 80% of the profits (note I say profits and not sales). What are they looking for and how do you match your offer to meet their interests? For example, if you have children buying trading cards, how do you make this a great buying experience for them? What other products with high margins will appeal to them? Would you put up a poster in store with a countdown to the launch of a new collection? Would you set up an in-store event so that children could swap cards with each other?
True in part to my New Year resolution, I held a business meeting in an independent coffee shop today just next door to a Starbucks. The cafe was presented well and four staff were busy preparing for the lunchtime rush, at 11am. As my guests were late, I had a half hour overview of footfall on the street outside and in the restaurant. Six customers. Barely enough to form the queue in Starbucks or Pret-a-Manger just down the road. Plus one Italian girl who dropped off her CV. Some people stopped to look at the posters in the window and moved on. The owners seemed quite happy. When I left just after 1215, they were doing brisk trade. However, I have the impression that the business is not working hard enough. It could easily have managed 120 customers between 11 and 12, instead of 12. This is lost profit as the fixed overheads and staff costs are already in place. The owners are clearly busy - perhaps too busy to take time to look at the potential that their cafe has. What shou...
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