Price war is on in Canada. Got your helmet?

The news is good for consumers this holiday season (http://money.canoe.ca/News/Other/2009/11/19/11817561.html?cid=rssmoneynews).  There is a huge price war raging between the big chains and retailers such as Walmart, Sears and Loblaws are leading the way with price cuts and early sales along most categories. Consumers can expect to pay less for electronics, apparel, dry goods and grocery items which is really good news for beleaguered Canadian shoppers. These price cuts and the marketing behind it should increase sales for major retailers this holiday season.

What does it mean for small business? In the article, Willy Kruh of KPMG says “The only thing smaller retailers can compete on is service and in this economic climate I’m not sure it will work”. I have to disagree with Mr. Kruh. I believe shoppers are looking for service. Well, let me rephrase that. Shoppers are looking for an experience and only smaller merchants can provide that to them.

I don’t disagree that we are in a difficult time in retail. Shoppers are disgruntled if not cynical towards our industry. As terrible customer service has become common place at the big box, shoppers are now more particular about where they spend their money. Customers have a need to be appreciated and will patronize merchants that provide a complete shopping experience. The real question I have to merchants is: “Have you thoroughly defined what that customer experience is?”

Saying you provide good customer service doesn’t really mean anything to your customers anymore. They could easily go into Walmart, yell at the manager and get what they want. What I’m talking about is the total experience. How does the customer feel when they get home? What could they possibly tell their friends and family about the experience? Will they have thoughts of returning to your store? This requires connecting to your customer on a much deeper level. I advise my merchants to really know your category and the kind of customer that shops it. Smaller merchants can blow their larger counterparts out of the water when it comes to customer connections.

Your staff should embrace the customer experience as well. Your associates are representative of your brand and they could be the decided factor for having a good or bad customer experience. All my clients have refresher training sessions in place for the next few weeks. It’s a great way to get your staff on board with the customer experience revolution.

All is not lost for the smaller retailer. In fact, this is a golden age of opportunity for small merchants. Have you been to your competition yet? Go visit your local Walmart or Sears and see what’s going on there. I guarantee you can find ways to compete on a level that big box can never hope to achieve. Optimize your USP  and define your customer experience and you will see bigger baskets and greater loyalty from your patrons.