For any business to be successful it is imperative to know where you want your business to be, and to decide that you must first understand where you are. Whether you are opening a new business or are just interested in improving your present one, the important first step is deciding where you are in the business environment. By this I mean you should conduct a situation analysis or business review. The first situation analysis you do will be lengthy and time consuming, but if done properly it will be a useful marketing tool for your business and vital to the decision-making process. In this instance we are discuss retail stores and their business review.
To begin, go and sit down outside of your store and look in. It helps to get a different point of view, rather than always from behind the counter. Write down the strengths and weaknesses of your business. Be Objective! Try to avoid the temptation to include generic ideas such as “Great Customer Service” as that is what every business will write down among their strengths, and you want to find the things that you provide that no one else does (ie: what makes your business better than the competition). Is it your visual set-up, or the selection of products, or is it the prices that make them come in and shop your store? And for what reasons might a customer not shop in your store?
To take this a step further, go to your business on your day off. Is the location a strength or weakness? Can customers see your store easily? Is your sign noticeable and inviting? Notice any traffic difficulties that might irritate a customer ( ie: no available parking, ease of exiting and entering from the street). When you come to the store front look in and see how business is done while you are not around. I’ve met many store managers who take the same day of the week off every week because it’s the slowest day of the week. Unfortunately, what they eventually find out is that it is the slowest day of the week because they are not there. Although your workers may do a good job in your absence, do they give that extra effort they might give if you were standing right behind them? And of course you, as a manager, will know the store and its products better than anybody and should be the best salesperson. Your workers may be doing their best, but is it possible that you might have sold some of the customers that they didn’t. It happens. So analyze your training program for your employees and try to develop it so each can become the best salesperson possible. This leads to another common problem. Is there someone present who can answer all the customers questions. Never tell a customer to come back tomorrow and have the manager help them – their question or problem should be taken care of right away.
These are just some of the questions you need to ask yourself to determine what you do best. But do not focus only on negative aspects, look for positive things as well. Maybe your staff is your greatest strength, or your location . Your greatest strength is that which will make a customer buy from you and not a competitor, whether it is your products, prices, free delivery, or the extra hours you stay open at night. Don’t underestimate the crazy process of how a customer determines where he will shop. In the next column we’ll cover the next part of your situation analysis which is the competitor analysis.