Discussion: Is Your Local Business Losing Customers To Digital Providers For Want Of Communication?

[MiriamEllis]

This week, I came across an article citing a fascinating statistic from The Harris Poll which surveyed consumers and found that the #1 reason they shop digitally for groceries is when they can’t purchase an item from their routine shopping sources. In other words, if the supermarket they shop at doesn’t carry Seventh Generation Laundry Soap (or some other product), then they’ll turn to a digital provider for fulfillment.

This survey focused specifically on grocery items, but what it sparked in my brain was the fact that ANY local store that doesn’t have in place an active campaign to discover unmet consumer desires is likely going to see an increasing loss of sales as shoppers turn to online competitors. I’m going to jot down a few ideas for how better communication could lessen these types of losses, and I would really love it if our community could add to the list of suggestions:

1. Have in-store signage that states, “Don’t see a favorite product of yours? Ask us to carry it!"

2. Have SMS/text messaging that requests this same info from mobile users.

3. Train staff to ask a clear, direct question like, “Is there anything you wish we carried here?” and have a process for aggregating that data to make new inventory buys.

4. Be sure the company website is also asking for this feedback and making it clear that the store will gladly order items not already in-stock.

5. Use social outreach to gather ideas from customers about favorite products that are missing from your inventory.

Those are just some ideas off the top of my head. Now, I’m a Local SEO, not a retailer, so some of you will be better equipped to answer this question than I:

How would you gauge whether a product is actually popular enough to keep permanently in-stock, rather than just being a one-time thing you’d special order for a customer with unusual tastes?

I do wonder about how that plays into this scenario, and how a retailer should invest in new products not knowing whether just 1 customer will buy them or they will be a major hit with lots of customers.

One final thought on this: a pain point I’ve noticed in the online/offline equation is time. I’ve had a store offer to special order an item for me, but if it’s something I need right away, I’ll look for a different source locally, or, if there isn’t one, may as well just order it online myself. So this makes me think:

• If you have access to extra fast shipping (faster than the average consumer could get a product shipped to his home) this would be a point to emphasize. If you can get a product overnight or maybe in 2 days without the consumer having to spring for a big shipping charge, this could influence his decision

• Google says that 30% of consumers state they would buy from a local store, rather than online, if they knew a product was available. So, this would indicate to me that making it very clear you’ve got the products a customer wants is vital.

I recently took a 50 mile trip to purchase a high quality picnic basket from a retailer, because I needed it quickly. I couldn’t wait the 3-5 business days the manufacturer said it would take if I ordered online. Point being, if a local retailer has geographic convenience and fast service on their side, they’ve got an advantage.

Please, add your thoughts and tips for strategies that could protect local retailers from losing customers to digital competitors. I’m really looking forward to reading any comments!

[MiriamEllis]

Hi Vadim!

Thanks for sharing your take on best wording for this. I like your suggestion.

[vmialik]

"Don’t see a favorite product of yours? Ask us to carry it!"

I would reward that a bit, and say "Don’t see a favorite product of yours? Ask if we have it!" Not trying to be picky, however asking to carry is a hope for future availability, customers turn online because it's immediate order to their current desire.

Granted you will not be able to produce the product, however with this wordage it's more likely that customers will ask and give you input into their desires.

Just food for thought!

[MiriamEllis]

"align incentives for recognizing and reporting stock deficiencies and customer satisfaction."

That's an excellent point, Donna! Employees who know their follow-through will be appreciated and rewarded are sure to take a more active part.

I've had your same experience with checkers, in particular, asking if I found everything I wanted. I'm thinking of a store, in particular, that simply does not carry a product I use almost daily (organic masa harina for making tortillas). They have a bulk section, but simply don't carry this product. I have to either order it online, or take a 50 mile trip to get it from a different store. Next time I'm at the masa-less store, I'm going to tell them I didn't find everything I need, and see what the checker does. From past interactions, I'm not hopeful that this will result in them stocking this product, but it should be interesting to analyze what occurs.

Appreciate you taking the time to contribute, and I think your suggestion is a very good one!

[DonnaDuncan]

Good question Miriam. A point of frustration for many local shoppers, and a risk / opportunity for retailers.

I run into this problem all the time. I'm frequently asked "were you able to find everything today" but the person asking the question usually doesn't usually listen to or care about my response, much less have a process or suggestion for what I could do next.

I see this is as risk and opportunity for local businesses. It's a risk for the reasons you've described above. It's an opportunity for local online merchants without brick and mortars (and vice versa) to align and reach, as well as, satisfy more customers. Amazon offers same and next day delivery now. Others will undoubtedly follow suit.

It's a training and cultural challenge as well. Even when there is a process for becoming better aware of stock deficiencies, customer facing workers have to shift their focus from throughput to customer satisfaction. They have to be provided with incentives that will reward that behavior and not punish them when productivity slows. So I'd add one more suggestion to your list, align incentives for recognizing and reporting stock deficiencies and customer satisfaction.