- Many small businesses think they have to be competitive and that the word "competitive" means lower prices or undercutting the store across the road.
- It could also be said that most businesses identify customers as wanting to buy at the best possible price.
However these two points are far from the truth.
Let me start by outlining four main types of businesses.
"We Are Here" type business
There are businesses that simply wait for an order to appear from a customer whose only role it is to send orders. These businesses are totally dependent on the customer’s willingness to process orders.
"We Have The Lowest Price" type business
These businesses focus on cutting prices or under cutting their competitors or the perception there of. Customers are assumed to be seeking the lowest price tag.
"Can I Help You?" type business
There are businesses that communicate with customers in terms of price. You know these business as they ask questions like "Can I Help You" and your replay is "No! Just looking"or when you ask for their best price they reply with "Buy today and ...." . They will go out of their way to create a sale and negotiate a price.
"Wow, I Need To Share This" type business
Than there are the businesses that seeks to understand their customer’s needs and share what they know freely to build trust and a long term relationship. They also know that customers are people just like them. Business that do this create such a bond that promotes repeat business, higher valued sales, referrals and are seen as a unique provider. The person will identify the business as a valued and respected partner in their life.
The diagrams shows "All Businesses" (left triangle) with the corresponding results in the 2nd triangle. In general terms, a few businesses generate the bulk of the business. The large group at the bottom of the first triangle share in a very small return. Then we have the businesses in the middle that create an average return. We can see this in all industry sectors.
The face that most of us display when going shopping is to buy at a good or fair price. We do this as we may be called upon to justify our purchasing strategy to our partners or bosses. The lower two business groups know this and are price focus.
However the businesses near the top of the first triangle do something very different.
- They seek to understand the customers needs. They ask questions.
- They than share what they know freely with the person.
To better explain this let me share a buying experience.
Just before christmas a few years ago I was about to call in and see a client but at the last minute it was cancelled. Having some spare time, I decided to do some last minute christmas shopping. A book shop was just across the road so I entered hoping to secure one or two gifts.
Visited the kids section first, followed by the cook book area and then the technology section. Within a minute or two a sale's assistant approached me. She asked me "You appear to be looking for christmas gifts". What a great question.
Me "Yes I am!",
Sales "If you tell me who you are buying for I may be able to help."
Me "Ok! A niece"
Sales "How old is she"
Me "About 6 years"
Sales "Ah, She would be into fairies and ballet!" I nodded, agreeing "We have a wonderful educational product that she will love and get hours of enjoyment from."
In the bag it went and in 10 minutes she found me three more great gifts solving my last minute christmas shopping.
Did I expect to pay out near $300 in 10 minutes? No. But I certainly appreciated how she seek to understand my needs and then share what she knew. My family love the gifts so that was a bonus.
So how can you create the Wow factor in your business?
We have recently introduced a Table Talk at the Adelaide Hills Business Centre by the same name as this BLOG so if you would like to explorer "How to create the Wow factor in your business?", simply book in.