What can a small store like me do to get more business?
(MarketingRx welcomes Chiqui Escareal-Go as our guest columnist this week. We get lots of questions from small store owners (which can be grouped into the question that Chiqui answers below), so we thought that the author of the new book “Small Store Marketing” would have lots of insights to share.)
Q: I have a small store with good products, but I think I lack marketing. What can a small store like me do to get more business?
A: Many small store owners may have a keen awareness of what products sell best in their neighborhood. Most don’t even need to conduct some form of research; they just need to see what people are buying from the other store down the street.
How many small businesses selling barbecue on the same street have you counted today? Maybe that’s the price of “success”—when people see something selling or doing well, people copy.
I believe, here lies one basic mistake in small store marketing: all stores sell the same thing, do the same thing, and assume the same thing when it comes to customers.
In the book I wrote entitled “Small Store Marketing,” I discussed seven principles that would help small store owners be more effective in their efforts to grow their businesses.
SEVEN PRINCIPLES
First principle: STAND OUT AND BE DIFFERENT!
Here, I posed a question on what makes a store different that is hard to copy. In attempting to answer this question, I challenged store owners to understand and really know their customer: Why does he buy from you and not the other store? Is it just relationship or price? What if he buys from you because you have new products (not stale) and that you give exact change immediately? Do you know the real reasons why? Sometimes, it could be because you’re the only store left open. What does that mean if you close early? What are your options so as not to lose customers to competition? It is not enough to be different but to also be relevant to your customer.
Second principle: GROW WITHOUT CANNIBALIZING EXISTING SALES.
This urges the store owner to plan what they offer the customers. You need to go back to a clear understanding of customers once again. Who buys what when? For example, do you know that there are peak times when people buy from sari-sari stores, say 5 p.m. to 7 p.m. when housewives start preparing for meals? This is different from the children who buy merienda from 2 p.m. to 3 p.m. What do you do with this kind of information? Shouldn’t you have something different to offer customers at different times of the day?
The third (INCREASE TRANSACTION SIZE) and fourth (ADD SERVICE TO PRODUCT) principles explore stimulating the buying behavior and to have the right product and service offerings. These may include offering special “deals-a-day” where people can form groups to avail of special prices of products while offering free delivery of razor blades because men often forget to replenish their stocks. Service can, in fact, be a more regular source of income which can further differentiate your store from the others.
The fifth principle, CONVERT FROM FUNCTIONAL TO EMOTIONAL, suggests the need to develop customer bonding and loyalty. Here, what is important is what we call “person marketing.” Why should the customer choose you when all he has to do is buy soy sauce? This is where the credibility and integrity of the store owner come into play and should not be taken for granted. How does your customer perceive you as a store owner?
Sixth principle emphasizes the need to HAVE THE DISCIPINE TO EXPAND through inventory and financial management. How many store owners actually keep records of inventory to prevent stock-outs or over-stock? Problems on inventory may happen because of lack of cash flow which could be due to lack of clear separation of personal from business funds. This will definitely affect your opportunities for expansion and for fulfilling customer needs consistently.
Final principle, DREAM, talks about going for bigger plans and pursuing a vision for the future. And it is in the clear understanding of what these dreams are that store owners learn to focus on the essentials or 3Cs of marketing: understanding the customer, knowing what makes you different from competition and what it is that makes you stand out as a company (store).
So it’s not just about having good products but also the right formula inspired by the 7 Principles of Efective Small Store Marketing.
For the complete discussion of the 7 Principles, the book “Small Store Marketing” by Chiqui Escareal-Go is available at National Bookstore for only P85.
Keep your questions and comments coming! Send us an e-mail at [email protected] or [email protected]. You may text us also at 0917-5074588. Have a good weekend and God bless!
