Life is tough in a crowded, competitive market, with multiple brands doing the same thing in the same space. Businesses try to outplay their competitors by striving to be the best – with better features, service, or price.

But what difference will a slightly better offer make in winning the customers’ loyalty? Very little. You’re still just another frog in a big pond. And how long will it take competitors to match your hard-won advantage? Not long. Just look at the automobile industry. They crowd each other and fight each other, but business does not seem to be getting much better for most of them.

It’s time to re-draw the competitive map. Instead of trying to be better than your competition, just be different. Being different or unique will get you noticed: rather than playing your competitors’ game, you’ll be foremost in customers’ hearts and minds if you give them something unique that they need.

Toyota did this in the 90’s when they launched the Previa: Instead of needing to make do with a souped-up delivery van, families could buy a good-looking car-like vehicle, designed for the specific needs of family life.

This doesn’t mean you have to invest time and money to develop a whole new product. Your aim is simply to add value for your (and your retailer’s) customers.

Perhaps all you need is to roll out online guided selling. Guided selling tools are hot right now. They make it so much easier to choose a product – and therefore, to promote and sell products. This year, Google started using them to help sell phones and music.

Shop Assistant is an online guided selling system for your (and your retailers’) website. It shows customers which of your products will best suit their needs. It’s incredibly helpful for customers trying to negotiate a crowded technological landscape, when they just want to make a clear choice in a succinct timeframe. As customers engage with the selection process, they can clearly see how your product can add value to their lives.

Unique things never stay that way for long. Just look how crowded the people-mover market got!

Leapfrog while you can. Read the Whitepaper, or call us.

Photo by Adam Fagen.

The post Leapfrog your competitors, before it is too late first appeared on Online Shop Assistant.

Wise manufacturers see their retailers as key allies, with networks, real estate, and expertise to sell things better than they can – but the temptation to go direct is real.

Our previous post discussed the perils of manufacturers being left out of the sales process. When retailers alone understand customers’ buying choices, manufacturers have poor information on which to base development and stock control decisions.

So why would a manufacturer not set up shop online? Because there are risks.

Profit, or rather, the loss of profit, is the foremost risk. A manufacturer can get caught between the slow ramp-up of direct sales on the one hand, and indirect sales plummeting because alienated retailers will recommend and promote competing brands. Stepping on the retailers’ toes may not be the best strategy.

The logistics involved with direct sales follows as a close second. The manufacturer will have to learn all about deliveries, warranties, returns, servicing and support. Customers expect all of these services to be top-notch. When logistics fall below anything other than excellence, customer find their loyalty to the brand slipping away.

So it turns out that selling through a retailer is not a bad idea after all. The reality is that manufacturers and retailers need each other.

But what about getting closer to customers? Is that not more important than profit, logistics and keeping legal? Of course it is. The good news is that manufacturers can have their cake and eat it, because Connective Retail is about creating win-win-win situations.

When manufacturers embrace Connective Retailing, they build manufacturer-retailer partnerships that maximise individual strengths. E-commerce can be refined through collective knowledge, promotions can be co-branded and measured, and new data can be added back into the pool of knowledge.

When manufacturers and retailers work together to get closer to the customer, the outcome is better products, good margins, and happier customers.

Read more about this idea in our whitepaper “Sell direct without selling directly”

Photo by Curtis Malinowski.

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Despite the success of online retail websites, in-store sales still dominate and consumer preference for a physical in-store experience is rising.

Consumers go to the store to touch, feel, try on and get reassurance that their purchase will fulfil their specific requirements. They use their mobile technology to search for detailed product information, best prices, social media, reviews and comments. However, this online information does not verify product suitability re their specific needs, so they ask the salesperson.

One of the key functions of a professional salesperson is to “ask, listen, understand and recommend” the best product for a user’s requirements, but this is becoming increasingly difficult. Sales people work hard to keep up with the latest product developments, features and technical specifications, but due to an ever increasing range of product choices is makes it impossible for any-one salesperson to know the right answer.

The village marketplace

Before the advent of long distance shipping and mass production, the consumer could speak directly with the manufacturer to ask specific usage questions, authenticate source material and agree on “the best choice”. As product diversity grew and retail stores offered more-and-more brands, the manufacturer was edged out of the sales process and forced to rely on the skill, enthusiasm and knowledge of the retail outlets.

The manufacturer-retailer-consumer formula has worked well for many years. There was a time when it was possible for the salesperson to remember the features of all products in the store and to accurately recommend the most appropriate product based on individual needs. The in-store sales process was able to add value and trust to the transaction and formed the basis of an ongoing business relationship for repeat purchases and personal referrals. But all that has changed and sales revenue is being lost. Manufacturers are seeking ways to re-connect directly with their customer without offending their existing retail channel.

Catch 22

Retailers want their people to build an in-store sales relationship and recommend the most suitable product, but it is impossible to keep up with all the specifications and latest product details.

Manufacturers have the information that the salesperson and the consumer are searching for, but the manufacturer is excluded from the sales process.

So what are the imperatives for CIOs in this environment?

Customer focus: Recognise that today’s tech-savvy consumers are willing to take their business elsewhere and collaboration, transparency and connectivity are critical to the success of the consumer in-store experience.

Technology:The balance of power regarding access to computer information has shifted. Employees may have IT controlled restrictions to information during their work hours, but once they leave the building, they become a “connected shopper” via their mobile device and they are demanding accurate answers, product verification and an authentic relationship.

Delivery: Transform your customer’s experience by providing real answers to consumers and retailers. Move away from out of date manufacturer-retailer separation, use technology to get alongside the people that are buying your product and re-connect directly with your end user.

Rediscover: Rediscover your market. Strengthen business relationships and increase sales by making sure your information is readily available to the people who are searching for it.

The post There is a new breed of consumers – and they are demanding to be treated as individuals first appeared on Online Shop Assistant.

Wired Internet Group’s Mike Baddeley says modern retail has seen the loss of the manufacturers’ product knowledge in the sale process. “Connective Retailing,” he says delivers this knowledge to the consumer through the retailers’ different channels.

Wired Internet Group works closely with manufacturers and retailers to restore consumer connection and to rediscover the market.

When the retailer, the manufacturer and the consumer are brought together, there is an increase in product knowledge, affinity, brand value and retail sales.

Connective Retailing uses Shop Assistant technology to ensure a better fit for the specific needs of the consumer, resulting in a quality product differentiation, relationship trust and a satisfied customer, rather than a one-time price only purchase.

Consumers increasingly want an authentic experience which includes understanding more about the source of the product and knowing why it is the best-fit for their specific requirements.

There was a time when the manufacturer could speak directly with the consumer. It enabled the manufacturer to answer specific usage questions, understand consumer likes/dislikes and ensured that the consumer always had access to the latest information about products and services.

As long-distance shipping became viable and product diversity grew, so did the separation of the manufacturer and the consumer.

It was thought that mega stores and more product selection would be good for all parties, whereas the reality is that consumers are often overwhelmed with choice, retailers are constantly investing in product education and manufacturers are no longer connected with the consumer.

Physical stores remain popular because the consumer can touch the product, they can get the item immediately, and they can verify the product’s suitability. In the absence of accurate in-store product information, consumers have taken to the internet to search for manufacturer details that should be available at a retail level.

Connective Retailing adds expertise and confidence to the consumer retail experience, whether that is in-store or online. The brand representation remains unified across all channels and as a result the consumer is better informed and more confident re product suitability, and more likely to purchase the product or service.

Connective Retailing brings the retailer, the manufacturer and the consumer closer together.

Mike Baddeley is managing director of Wired Internet Group. Retailers using its Shop Assistant sales tool are Myer, Farmers, Best Buy and Smith City.

Related story

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What manufacturers do best: designing great products. What retailers do best: selling those products to consumers. This three-way relationship has become an accepted norm, deemed to benefit each party.

While all appears well and good on the surface, the lack of contact between manufacturers and customers is a huge, often under-recognised problem.

With products assigned to retailers, manufacturers cede control, and are usually out of the loop sales-wise. They don’t hear the in-store purchasing questions or post-purchase niggles. Instead of being connected to their market, manufacturers are dependent on the quality of the retailers’ sales skills, knowledge, and feedback. If they’re not getting the full picture, they may not even know it.

We have forgotten that understanding customer needs is vital for sales, stock decisions, and product development. Without this understanding, manufacturers tend to build ever-higher specs in an effort to sell more units or, even worse, get sucked into price wars.

But more features or cutthroat prices don’t necessarily equate to more sales. Research on smartphones, for example, place simple things like durability and long battery life at the top of shoppers’ wish lists[1].

Manufacturers’ websites, their version of a shop floor, are often far from simple, with screeds of products and technical lingo. While modern consumers are happy to do online research, most do not understand industry-specific specifications and lack the experience to select the products that best fit their unique needs.

What’s needed? Connective Retailing, which brings manufacturers, retailers and customers closer to each other.

Manufacturers that weave the human touch of Connective Retailing into their websites find themselves able to ask questions and make recommendations, like a great salesperson would. Customers are better informed towards a buying decision. Manufacturers get feedback on responses via their website, and can use those to better align their products. The manufacturer may sell products at this point, or more commonly, simply assist with a buyer’s research leading up to a retail sale. Both manufacturers and retailers benefit.

But most importantly, Connective Retailing allows manufacturers to rediscover their most precious resource – their customers.

References

1. What Do Consumers Want In A New Smartphone?

Photo by Saranya Ghosh.

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