by Leslie Lyon
http://www.spas2b.com
©
2009
Many have become more conscious about spending, not
necessarily because they have to, but because they feel less secure about the
future. There's much talk about the "New Normal", but what exactly does
it mean to your business?
Here are just a few of the buzz
words we've picked up on: Diversify; Emotional engagement; Brand integration;
Self serve; Polarizing; New modesty; Revolution in values; Ethically based choices;
The Power of the Individual; Staff dependency; Time Management; Downsizing; Empowerment;
Skill development; Opportunities; Indispensable; Leverage
But
knowing what you do well and doing more of it, is your first directive. And by
all means, never forget to engage your FIVE SENSES:
1. WHO
is your new customer?
Your new customer requires "emotional
engagement", because the importance of the experience now outweighs the importance
of the purchase. This means you are now more dependent on your staff than ever
before. In fact, perhaps staff is your new, most important customer. You always
said they were, but were they really? The power of the individual not only means
the consumer's increased ability to drive economic decisions, but it also represents
your staff's ability to actively participate in the restoration and re-growth
of your client base. Your attention to your staff needs must ramp up, NOW. Re-assess
Leadership Skills; Job Descriptions; Evaluations; Pay Scales; Rewards; and Disciplines.
Do not underestimate this critical part of the New Normal.
2.
WHAT does your client need now?
Two points prevail:
i)
A Revolution in Values
Service will undoubtedly be your
key competitive asset in both of these categories; but the adaptation of stronger
belief systems related to ethical and emotionally based choices may force you
to re-evaluate your business strategies as a whole; not only in your staffing
plans, but including your purchasing and operational plans. Need i) = A revolution
in values means you need to show quality and commitment through obvious value
and informed business choices.
ii) Stricter Time Management
Controls
Provide your clients with time saving service and
shopping solutions to help them get to their next task quicker, and their next
appointment, on time. Never frenzied, but always efficient. Depending on your
situation, consider these points instead of, OR in addition to traditional methods:
Self-serve bars and services; expanded "On the Go-Go" (mini) service
menu. And think "speed shopping": Re-visit service and product bundling;
direct shoppers to items under $20; $50; and $100; have a "Top 10 Must-Haves"
checkout section.
Need ii) = Stricter time management controls
mean you need to provide service and shopping solutions in record time.
3.
WHERE should you direct your attention?
Supporting your
brand with new integration strategies, such as stronger in-store advertising campaigns,
will expand anddiversify your existing client's purchasing decisions. Focus on
cross promotion; up-selling; and add-on selling through repetitive exposure on
multiple levels and stages. *Consider polarizing your choices from mid-level services
and price points, to budget and luxury only. (Remember the hourglass shaped economy
model is morphing into the pyramid shaped economy model). Announce to potential
clients that you offer both luxury items, as well as the less expensive versions
of them. If you have both, you can cater to your client's "new modesties"
and avoid the always frowned upon, mediocrity. For now, it seems your clients
are either interested in budget purchases only, OR luxury items only (but fewer
of them).
4. WHEN can you feel better about the future?
NOW,
because your downsizing (or restraints) over the last year have empowered you
and your staff. Cost-cutting may have improved your profitability; forced you
to acquire increased levels of skill development; making you more indispensable;
and providing you with industry influence. Opportunities abound if you are only
prepared to enjoy your new-found potential.
5. WHY are your
old ways no longer effective?
Not only have there been radical
changes in personal priorities; there have been radical changes in business, and
it's called diversification. Your near-term survival is important, and I'm going
to assume your long-term survival is too. Retailers are becoming suppliers; and
suppliers are becoming retailers. As suppliers move ever closer to the consumer,
so must you find ways to supply bigger business. Your focus, if not global, must
at least be larger in scale. Your ability to diversify and develop off-shoots
of your business may be your saving grace.
Your job: Integrate
new strategies and diversify revenue streams that will ensure your growth into
the future.
Your 6th Sense:
In this
case, it's not intuitive; magical, or even spiritual, it's just three facts: Prioritize;
Focus; and Commit. You've heard it said before; these are always the primary ingredients
that are missing in the struggle for success. Just remember: DON'T take it on
unless you are fully committed; DON'T ask for advice or assistance from anyone
who is not fully committed; and most importantly; DON'T underestimate what fully
committed really means.
Today's Key Take-Away: Service is
undoubtedly your key competitive asset.
