When the future comes, there will be no room for error on the retail floor.Oh and look – the future is here.
Retail guru Bob Negen, a fixture on the NAMM education circuit and frequent lecturer for other retail industries, has looked into his crystal ball and has come up with insight for the savvy retailer as the world continues to become exponentially technology driven.
Buckle up, as here’s what he’s seeing on the ever-changing retail landscape.
It’s Not About You
“The store owner is no longer in charge,” Negen says. “Thirty years ago, if a guy in a town in Michigan wanted a guitar, he went into the store and picked from whatever the store chose to carry. That will no longer be the case, and so it becomes all about the customers. It’s not about buying what [the retailer] likes, but what the customer wants.”
The Emergence of Apps
“Apps to help the consumer shop will become more sophisticated and personalized,” Negen says. “There will be apps that can make product recommendations in real time, and they will be geography-sensitive.”
So Jane the bass player is driving through a town with an MI store and the app will pick up that the store carries Brand X basses, something the app knows she likes because she’s been researching it. She’ll look at her smartphone or tablet at the stop sign because it just sounded an alert, and see that the store is three blocks away. Oh and look, that store has a 4-1/2 star rating on Yelp and the owner used to be the bass player for one of her favorite local bands.
Instantly. Ubiquitously.
“The app will be a ‘personal concierge’ and will manage your credit cards and track purchase and search history. It will become an ‘expert’ on you, and will tap into the world through a much bigger app… and unless the world changes, Google will run it, because they have the most data and they know that Jane likes that bass, so she will like this bass.”
The Knowledge Battles
It’s been a known quantity for years that the customer walks in the doors informed about what he’s interested in. Negen sees this increasing exponentially to the point that some customers will likely be experts on something above and beyond your sales person. But every situation is ultimately a new opportunity, and he suggests there’s nothing wrong with flattery. “Wow, you seem to know a lot about that bass – tell me what you like most about it?” can be the response. “The salesperson can and should learn a lot from the customer, especially in situations like this,” he says. “And being genuinely interested in someone’s opinion does not make you less smart, it makes you more interesting.”
It’s About the Experience
The evolution of the successful retailer will involve creating a unique shopping experience. “As the world moves toward being more information-based, the world becomes less personalized,” Negen states. Those who provide a personalized shopping experience understand that the need for relationship building is greater than ever, keep the store’s look current and updated, and continue to bring in new and interesting product not seen everywhere else will come out ahead. The customer can never get that kind of experience online.
Value Beyond Your Doors
Make your retail operation of tangible value to the community. Promoting local concerts, staging open mics, shilling for local recordings and bands, being a sponsor at that local talent contest. “Get out there and have fun, because people want to do business with someone they like, trust, and respect,” Negen says. “I imagine that musicians will want to more than ever create a community that draws people in.”
Related to this is what Negen calls “the emotional bank account” concept. By being the most liked, the most trusted, and a stand-out in the community, you become a “bank” of good will. The emails you send that promote a local event or announce another open mic night at our shop are a deposit. The email promoting that sale, asking them to buy something, is a withdrawal. “Keep that ‘bank’ of yours in the black by sending the message that you’re about creating better musicians, that you’re more enthusiastic about the music scene than the other guy – keep scratching that itch musicians have to be encouraged and engaged.”
Do What You Do Best
“Focus your strategy on the two to four things you do really well, better than anybody, and hang your hat on that.” The retailer that tries to be all things to all people will likely find herself competing on price, which will continue to be a losing proposition.
But Don’t Shy Away from New Markets
That folk music store can experiment with renting band instruments, especially if there’s a dearth of competition for that in the immediate area. “I remember with my kite store, for the first 12 years, we were purist,” Negen says. “Only kites. Then I realized we’re not in the kite business, we’re in the fun business, and we moved into toys too. We would have never survived if we didn’t do that.”
Know The Changing Social Media Landscape
“My seventh grader is already done with Facebook, saying it’s for ‘old people!’” Negen laughs. “It’s already losing its cool factor.” Simpler social networking sites like Instagram, Snapchat, Pinterest, and tumblr, among others, will come into play and need to used by retailers in the future, especially if part of their target audience is teens and young adults.
Be Great
“My sincerest advice to any retailer in general is to focus on greatness _ what makes you great and what makes your store great,” Negen says.
The value you provide won’t just be the expertise – it’s that you have the things the customer finds valuable, and the experience is of value.
Final Thoughts: “The store has to look great, it has to be stocked properly, the retailer has to buy well, and the sales people have to be trained relentlessly – it all has to lead to an amazing customer experience.”
In short, there’s no room for error, but the possibilities for success ultimately come down to exploiting what brought you into the business in the first place – your passion.
