The stakes of doing business get higher every day as retailers vie to win the eyes, ears and wallets of customers for their stores. The Internet has made price almost completely transparent and independent retailers are constantly challenged to find new and unique merchandise that big box down the street don’t carry. This seminar explores how independent retailers can find merchandise to meet their customers needs while differentiating themselves from other stores.

1. Wowing Customers and Winning Dollars:
How To Differentiate Your Store From The Big Boxes
and Get Customers Into Your Store
January 18, 2014
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Creative Business Consulting Group –
Lynn Switanowski
25 + Years Retail Industry Experience
Fortune 500 Sales and Marketing
Executive
Successful B-T-C Strategist
Experienced Brand Manager And
Marketing Executive
Social Media Strategist and Developer
Contact Information: (617) 437 -9191
Email: lynn@cbc-group.net
Creative Business Consulting Group
www.cbc-group.net
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2. The Long and Winding Road Toward Making A
Purchase in 2013
• Consumers Now Move Along A
Complex, Nonlinear Pathway To
Final Purchase
• 83% Say Path To Purchase May
Involve A Greater Number Of
"Stops," But It Takes Less Time
Than It Used To
• Shopping Today Is A More Personal
And Emotional Experience
• 79% Of Consumers Say Their
Relationship With Brands Is Much
More Personal Than Ever Before
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
Today’s Retail Landscape Is Full Of
Competition And Is Increasingly Polarized
Who Will Succeed In The Battle For The Customer Dollar?
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
The Rules For Shopping Have Changed
• There Is A Perceived Battleground
Between Big Box And Small
Independent Merchants
• Big Box Stores Can Compete More
Effectively On Price Due To
Economies Of Scale In Purchasing
• Small Independents Must Utilize A
Differentiation Strategy To Gain
Competitive Advantage
• 68% Say Shopping Today Is "Less
About The Brands/Products
Themselves And More About Me What They Are Feeling Or Needing
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
2

3. The Good At Everything Strategy Is A Recipe
For Failure
• Many Retailers Try (Unsuccessfully)
To Follow The Strategy Of Being
Good At Everything
• Strategy Is About Trade-offs
• Strategy Is More About Deciding
What You’re Not Going To Do, Than
About Deciding What You’re Going
To Do
• The Good At Everything Strategy
Is Doomed To Failure Against The
Big Box Because They Can Do
Everything As Well As You But At A
Lower Cost
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
The Differentiation Strategy Is An Opportunity
For Success
• A Differentiation Strategy Adds
Value To The Products Sold Or
Services Provided And
Distinguishes You From The
Competition In A Noticeably
Superior Way
• It Requires Focused Resources
Coordinated In A Single Strategic
Direction
• It Is A Big Reason Why Some
Stores Succeed While Others Fail
Successful Stores Know
Where They Are Going And
How To Get There
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
How Do I Decide On My Point(s) of
Differentiation?
• Big Box Competitor Weakness
Slower To Respond To Emerging Customer Needs
Personalized Service Is A Challenge With Large Staffs
More Cumbersome Merchandise Adaptations
(Big Box Is Aware Of These Weaknesses And Working To Change
Consumer Perceptions And Operational Execution)
• Our Strengths
Flexibility – Be Able To Change Or Be Changed According To
Circumstances
Intimacy - Relationship Building And The Personal Touch
Our Strengths and Big Box Weaknesses Present Opportunities To
Compete On Unique Dimensions
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
3

4. Flexibility:
Independent Retailers Have Ability To Respond
Quickly To Emerging Consumer Needs
• By Actively Listening And
Scanning For New
Product Ideas, We Can Be
Earlier Movers On New
Trends
• We Anticipate What Our
Customers Want And
Move Quickly To Meet
Those Needs First
• Our Agility And Flexibility
Enable Us To Rapidly
Change Merchandise And
Be First To Meet Emerging
Consumers Needs
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
Flexibility:
Speed and Responsiveness To Consumer
Trends Requires Active Scanning and Listening
• Follow Market Trends In
Order To Adapt To The
Changing Market
Conditions
• Where Do I Find The Latest
Industry Trend Ideas
Scan Industry
Magazines
Review Retail
Newsletters
Talk To Other
Independent, But Noncompetitor Independent
Retailers
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
Flexibility:
Seek Out New Products To Engage, Inspire And
Keep Your Customers In Awe Of Your Store
• Identify And Understand Your Store’s
Target Market To Choose The Right
Product For Each Segment Of
Shoppers Who Visit Your Store
• Flexibility And The Ability To Move
Quickly Enables You To Change
Product Selection More Rapidly Than
The Big Box
Shop New Product Aisles At
Trade Shows
Use Distributors For Unique
Sourcing
Use Online Resources For New
Ideas With Low Risk
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
4

5. Flexibility:
Update Merchandising Techniques To Maintain
Advantage
Merchandising Ideas
•
•
•
•
•
Digital Window
Displays
In-Store Product
Information Screens
Computerized Selling
Tools (Tablets, etc.)
Interactive
Merchandising
Installations
QR Code Integration
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
Flexibility:
Ask Yourself if Your Visual Displays Are Attracting
Customers and Influencing Sales
Color
Creative Business Consulting Group
www.cbc-group.net
Intimacy:
Engage In High-Touch Customer Service
• Through Continuity In Staffing,
Personalized Marketing And An
Intimate Approach To Service,
Retailers Can Establish Unique
Relationships With Every Customer
• The Ability To Forge Strong
Personal Relationships With
Customers Will Provide The
Opportunity To Earn Greater Levels
Of Customer Engagement And
Ultimately Loyalty
• Retailers Must Develop Compelling
Reasons Why Consumers Should
Give You Their Business On Every
Occasion
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
5

6. Intimacy:
Closer Customer Connections, Loyalty and
Engagement Increases Share Of Wallet
• Consumers Have Discretionary Spending Money They Will
Allocate Over A Given Period Of Time To Specific Spending
Categories. Your Goal Is To:
Increase The Overall Share Of Spending Into Your Specific
Category
Increase The Your Portion Of Their Spending – “Share Of
Wallet”
• Consumers Value Service – Those That Don’t Will Only Shop
For Price And Will Likely Not Be Your Loyal Customer Base
Price Is Important, But Only Apt (Good Enough)
They Don’t Want To Feel Gouged, Yet They Are Less
Sensitive To Price
Gaining Greater Share Of Wallet Requires Exceptional Service –
Consumers Will Make You Earn It
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
Intimacy:
Create A “The Market of One” Message With Your
Marketing Tactics And Communication Tools
• Create A “Market-of-One” Shopper
Experience In Your Store With Individualized
Marketing Programs Such As:
• Specific Mailing Lists (Products/Events)
• Personalized Mobile Marketing
Programs
• Customized Direct Mail/Catalog Offers
• Get To Know Your Existing And Potential
Customers, Especially Their Needs – Ask
How Your Business Can Enrich Their
Experience To Drive Repeat Visits
• Communicate With Customers Using The
Tools They Prefer In Order To Identify Their
Likes And Dislikes, Needs And Wants
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
Intimacy:
Don’t Forget To Use Social Media: Customers
Often Break Up With Brands That Ignore Them
• Customers May Feel The
Relationship With A Brand Is Onesided.
• The Feeling Of Unreciprocated
Admiration Will Often Cause
Customers To Break Up With Brands
• On Average, A Business Loses
About 20% Of Its Customers Just By
Failing To Tend To Customer
Relationships
Getting Customers Back After A Break
Up Can Cost You Both Time And Money
617-437-9191
Creative Business Consulting Group
www.cbc-group.net
6

7. Intimacy:
Deeper Customer Connections Are Possible
Using Social Media; The Question Is Where?
• People Who Engage
With Brands Via Social
Media Demonstrate A
Deeper Emotional
Commitment To Those
Brands
• They Spend Between
20% - 40% More Than
Other Customers On
The Products And
Services Offered By
The Brands
617-437-9191
Source: Bain & Company
Creative Business Consulting Group
www.cbc-group.net
Retailer Authenticity Requires Constant Flexibility
and Intimacy Across All Customer Interactions
• Consumers Meet Your Business In Many
Different Ways Every Day, All Year Long
• Your Differentiation Strategy Must Reach
Across All Touch Points of Your Business To
Be Effective ----And Believable
• Create A Product Strategy For Your Retail
Store That Meets Your Customers’ Needs
• Create Market Of One Messages To Help Your
Store Gain Market Share
• Technology Can Help Facilitate Your
Differentiation, To Use It Consistently – Your
Customers Are
617-437-9191
Source: Bain & Company
Creative Business Consulting Group
www.cbc-group.net
Creative Business Consulting Group
www.cbc-group.net
7