Small business retail advice: the battlefield is customer experience, not price

In today’s world of huge online retailers and national retail chains chasing business, the local retail business advantage is in creating memorable, human-centric experiences. This is where retail businesses, like newsagencies, shine.

I was in Japan in business a few weeks ago and visiting retail there reinforced the importance of the in-store experience. Retail staff are grateful you are shopping with them. Their engagement is gentle. They take pride in serving. Their attention to detail is excellent.

The service we provide in our shops is a key and valuable differentiator to online and big business competitors. It is the best place to start if you want to differentiate your business from them.

Double down on in-store service. Train your staff to be genuine experts and consultants. Remember customers’ names and preferences. Offer a level of personalised service and product knowledge that an algorithm cannot replicate. Create a welcoming physical atmosphere that makes people want to visit.

Anyone making the effort to shop in-store versus online needs to feel welcome. We need to remember they could be looking for more than just the product.

1. Personal is your differentiator: Online (Amazon) can’t compete with the feeling of walking into a welcoming space. No matter how much they try, they can’t offer a friendly, face-to-face conversation, a curated sensory environment, or the immediate satisfaction of discovering something unique. Your physical experience is your moat against online giants.
2. Personal builds emotional loyalty: A transaction is forgettable. An experience is not. Positive experiences create emotional connections that build genuine loyalty. Loyal customers are less price-sensitive, they recommend you to others, and they choose to support you because they want you to succeed.
3. Personal supports your price point: A customer who has a wonderful experience in your shop is less likely to go home and search for the same item to save a few dollars online. The personal experience you provide become part of the value they take away. The experience itself makes the purchase feel more worthwhile.
4. Personal creates a “third place”: Retail experts talk of in0store shoppers looking for a “third place”, somewhere that isn’t home (first place) or work (second place) where they can feel comfortable. Your shop can be that place.

Here are some tips for pursuing these points:

1. Welcome every visitor.
2. Help when needed.
3. Provide a warm experience: fewer bright lights, for example.
4. Ensure the shop always smells good with scents that appeal.
5. Ensure the shop sounds good with music people hum along to.
6. Add value every time you can: like how to use a product or when giving something as a gift is best.
7. Thank them for stopping by.
8. Support local in every way you are able.

The path to success against online giants isn’t about competing on their terms of price and scale, but by mastering the one area they can’t touch: the in-store experience. By offering a welcoming atmosphere, fostering genuine human connections, and embedding your shop in the local community, you  build a loyal following and create a memorable destination that customers will choose to support, ensuring your business not only survives but thrives.

In local small business retail we can complain all we like about online and big retailers, or we can provide in ur own a shop an experience that sets us apart and demonstrates in every contact the value of shopping local.

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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents keen to evolve their businesses for a bright future. You can reach him on mark@newsxpress.com.au or 0418 321 338.