Not for a second did I ever think, in my 30-plus years as a small business owner, I would be focusing on completely rebuilding my business as if it were a brand-new venture. However, post-COVID, that is exactly what I’m doing, and I believe that is most likely the case with everyone who owns or manages a small business.
As owners and managers, we are always working on our businesses, but this time the circumstances are uniquely different, and it’s not just because of COVID. This time, in addition to crawling back from the COVID calamity, small businesses and consumers have also been kicked in the teeth by the direct consequences of COVID: inflation, supply-chain shortages, and multiple issues that interrupt the “normal flow” of business. Just when we felt it was safe to go back into the water…
When circumstances beyond our control create a multi-tiered challenge, what are the best practices to employ? History has shown us that successful managers and owners continually observe and re-examine the reasons customers elect to engage with their businesses. Fortunately, most established businesses have a successful history, and a reputation on which the business stands. But the truth is, historical success doesn’t guarantee future success.
No matter what current circumstances we face, customers always expect a consistent level of quality. That might be salvaging the wreckage caused by COVID or developing new programs because of the renewed interest for in-person activities. The big question is what effect has COVID had on the behaviors and engagement habits of customers? The answer may surprise you.
Emerging from our recent challenges, the advantage goes to small businesses. Large businesses have the advantage of more product availability and, oftentimes, pricing. But smaller businesses have the unique advantage of providing quick, personalized service to their customers, as opposed to the “automated style” of larger businesses.
Small shops also have the advantage of individuality and uniqueness in “personalized design.” And in this marketplace, that is what is sought by the post-COVID customer.
The pandemic has left the door open for boutique businesses to embrace an important shift in customer behavior. Have you noticed the new kid in town? Well, maybe he’s the new kid, but he’s wearing retro clothes. The new customer attitude is “Mad Men”-like. It’s tail fins and bouffant hairdos all over again. To survive, we, as small businesses, must get on the same page with the customer’s desire for engagement.
Before COVID, we had completely turned into a “faster is better” culture. But that way has now become like frozen food to the new granola gang. It is OUT! Society is currently composed of the experience seekers, and businesses must discern the difference between an “experiential” and a “transactional” model.
Experiential vs. Transactional
Experiential marketing enables the customer to engage in the experience of purchasing the product or service. To embrace this strategy, you must interact with your customers and help them understand how they would use your service or product. Expand the experience. Show them possibilities. Most importantly, find creative ways for the customer to interact with your product or service. That way, the consumer becomes engaged with your business and enjoys the actual process of his purchase.
Transactional marketing involves little customer engagement. Rather than establishing a rapport with the patron, the emphasis is on the sale. The key factor is best price, greatest availability, biggest volume, or just the best deal. Obviously, there are those customers who intend to buy products this way. They only consider price, availability, timeliness of delivery, et cetera and are simply interested in the product that meets their every requirement. These customers tend to have a limited engagement with your business.
COVID definitely took experiential off the table, and because of that, most people want it back more than ever. Post-COVID customers have a rekindled passion for experience. They have become more rogue in their thinking, and they have become more inventive. The real gift of the past many difficult months has been the opportunity for personal renaissance.
Along with revitalizing customer service, we now have the chance to revert to an experiential model and to move away from the mind-numbing “transactional” model that is so readily embraced by large companies. The advantage here goes to smaller businesses because smaller businesses are quicker to make adjustments. Small businesses take more risks; they are less afraid to think in a “boutique fashion,” and they are not afraid to be inventive or to invite customers to join them on the journey.
In Closing
The bottom line is to stay relevant and unique. We will have to do more with making every experience within our businesses feel fresh and inspiring. In many ways, we are truly starting over and the good news is it gives us the chance to rekindle, refresh, and rebuild. Importantly, we now have the opportunity to reexamine the principles that our businesses were originally built on and to realign what has gone stale and emotionless. We can now start over from scratch, or at the very least, take a mulligan. We have a chance to make “experiential” our first priority, and let the big boxes own the transactional model.
In Today’s Music Business… Time-Tested Practices Still Serve You Well