Categories
Apple Box stores Business culture Buy Local Competition Creativity Customer relationships customer retention Customer service ECommerce Retail Small Business Strategy websites

Showrooming and the sales prevention department

Last time, we discussed the often forgotten reason for showrooming that happens after price shopping: convenience and time/fuel savings.

Remember Kübler-Ross’ five stages of grief? If you’ve forgotten, they are denial, anger, bargaining, depression and acceptance.

When applied to showrooming, it isn’t much different. Acceptance and the clarity that accompanies it are where the sales live. Even big retail is figuring it out.

Big retail embraces showrooming

Big retailers are starting to embrace showrooming because they’ve realized that reacting to and/or punishing it has proven ineffective. Learn from their mistakes, research and investments. Customers who showroom are likely to be better informed shoppers that you don’t want to lose. Their phone might help them decide that your store is the right place to buy.

Retailers that welcome the smartphone shopper in their stores with mobile applications and wi-fi access — rather than fearing showrooming — can be better positioned to accelerate their in-store sales – particularly with the holiday shopping season approaching.

Shoppers armed with smartphones are 14 percent more likely to make a purchase in the store than those who do not use a smartphone as part of their in-store journey. – Deloitte study for Saks Fifth Avenue

Most small businesses don’t have the resources to embrace showrooming with a smartphone app, or don’t think they do. If that’s the case, what do you do?

The simplest answer is to side with the customer. Do this by making the in-store experience so much better than anything anyone can provide online. That’s where it pays to visit an Apple store – where nothing is like retail as you typically see it.

The last Apple store I visited was in Portland. In an average-sized mall store, there were 28 employees on the sales floor – and all of them were with customers. I thought this was odd, so I tried another Apple store.

Same thing.  There were over 100 shoppers in the store. Almost all of them were in groups engaged in a conversation while they used an Apple device. Many of those conversations included an Apple staffer.

The sales prevention department

Compare that to the shopping experience in a typical consumer electronics store.

Try to test drive a Kindle. It’s locked in demo mode. You can’t pick it up and hold it because of the security device and short “don’t steal me” cable attached to it.

The display of the device is focused on theft prevention. Why is this a bad thing? Because theft prevention becomes sales prevention.

In an Apple store, nothing’s locked down. Sure, there are lots of people around to make sure you don’t walk out the door with that fancy MacBook – but the products are presented in a way that is clearly designed to encourage you to pick them up and try them out.

Unlike most stores that sell laptops and tablets, the devices aren’t cabled down, nor is there a password protected screensaver that prevents you from doing any real examination of the machine.

They make this happen because no matter what you do to the device, at the end of the day, they have systems in place to “wipe” them and reset them to out-of-the-box new condition, software-wise. This assures that the next day’s sales aren’t impacted by what someone might have done to a device. They can also reset them during the day if someone went really crazy.

It’s almost unfair to sell against a setup like that. Perhaps that’s why Apple’s retail sales per square foot are higher than anyone else’s – over $6000 per foot.

What’s different?

If you’ve ever visited an Apple store, you’ve never seen a dead machine, much less one with a message that tells you it needs attention from a technical person. You won’t see a locked screensaver.

Now think about other electronics retailers. Their sales floor machines are locked down that you can’t do anything and there’s almost always one that’s off in never-never land, waiting for some tech help.

Step back a few paces. This isn’t just about Apple, laptops or tablets. It’s about encouraging someone to engage with your product, thus *enabling* a purchase.

No matter what you sell, ask yourself these two questions:

  • Are your displays focused making it easy to fall in love with a product and buy it?
    OR
  • Are your displays focused on controlling the sales process and preventing theft?

Making it easier to buy is something every one of us can do. It’s price-based showrooming’s Kryptonite.

Categories
Automation Box stores Business culture Competition Customer relationships customer retention Customer service ECommerce Retail Setting Expectations Small Business websites

Forgotten: What happens after they showroom?

Plastic supermarket carts.
Creative Commons License photo credit: Polycart

The last time we talked about showrooming, I referred to a Harris Poll that exposed a conflicting behavior among shoppers.

The behavior? “Most” people (70%) say they showroom because of price, yet they often buy locally even if it means having to pay a slightly higher price.

That’s right, 70% didn’t choose solely on price. Once again, buyers say one thing, but when convenience and access to local expertise enter the picture, they often behave differently at purchase time.

The survey’s findings echo my buying tendencies – which surprised me a little. Shopping is not an endorphin releasing event for me. I’ll *always* buy from a store that is easier to get in, find what I need and get out of, even if it’s a little more expensive than a competitor whose shopping experience is cumbersome, time-consuming or just plain difficult.

Do you feel the same way about the brick and mortar stores you visit? If so, why would you expect your customers to feel any different when they compare shopping locally to shopping online?

In the last piece, I didn’t mention that the WalMart moving boxes were cheaper. What I did tell you was that they couldn’t tell me if they had them in stock unless I placed an order and waited “a few hours” for an email or a text message. Not convenient.

Claiming that price is the sole or dominant cause of showrooming appears to align with how people shop early on, but it seems research “forgets” to follow behavior all the way to the actual purchase. Recent research is showing that showrooming starts because of price but continues for convenience – so be careful about discouraging it.

That good shopping experience

Can shoppers have a “good shopping experience” at your online store? Can they buy and have it delivered? Can they have it reserved and ready to pick up?

You might be thinking “What a hassle. I never had to do this before. Why should I start now?“ While you’re probably right, that’s exactly what big box online stores hope you’re thinking.

Have you asked your customers if they have a smartphone? Have you asked them if they use it to visit your store? Have they ever walked into your store to buy something and found you didn’t have it in stock?

What seed does that plant in their mind? What will they think about coming to your place the next time?

These things matter everywhere, not just in urban locales. Fuel and time are costs people like to avoid. When your store or website causes them to waste either one, it doesn’t help you to become (or remain) the main place they shop.

The moving boxes again

Remember that cumbersome moving box shopping experience I mentioned earlier? What happened *before* I drove to Home Depot?

  • I ran out of boxes…but it was more complex than that.
  • I ran out of boxes in the evening when my local stores were closed.
  • I ran out of boxes on a holiday weekend when the local UHaul stores were closed.
  • I shopped at another big retailer’s site that couldn’t tell me if they had boxes in stock.
  • I shopped at Home Depot’s site, which told me exactly what they had (and didn’t).

My experience online reflects some of the complexities and frustrations of your customers’ lives when they shop in your store.

That frustration is also what drives people online – where they are often frustrated by your web store.

Take everything away that a local store can provide that online shopping rarely provides – and you’re left with the local equivalent of Amazon.com, without reviews and (probably) with a slightly higher price.

Is that what shoppers want? What aren’t they getting *prior* to making a buying decision?

Just looking

Think about why we say “Just looking” when we enter a store. Sometimes it might be because we’re just looking, but we often say it by reflex. If you really are there to buy something, I’ll bet “Just looking” pops out for one of these reasons:

  • Because most of the floor employees know less about what we came there to buy than we do.
  • Because you’ve already done your research and made up your mind.
  • Because you don’t want someone following you all over the store.

Is that why your customers say it?

Categories
Box stores Buy Local Competition Customer relationships Getting new customers Retail Small Business strategic planning Strategy Wal-Mart

The big showrooming lie: “It’s all about price.”

Last time, we talked about how showrooming is impacting the retailer, briefly discussed what causes it and covered how a home store’s effective website selling experience helped me save time by avoiding a trip to a store that couldn’t decide whether it could help me.

All the retailers say it’s about price and the research agrees.

Since everyone’s in agreement, let’s dive in.

What makes people showroom?

Piles of research make it hard to argue that showrooming is about price. A recent Harris poll indicated that 96 percent of showrooming was at least “somewhat about price”, while 82% said price was “very” or “extremely important”.

Ask anyone why they showroom and they will almost always say “price”. What reason do they have to lie? It must be about price.

So how should retailers react? Let’s look at a few real-world reactions.

What Best Buy did

Two years ago, showrooming was hammering Best Buy and their financial performance showed it. While it might not have been the sole cause, it’s tough to argue that it wasn’t a factor – particularly since their stores are reported as “most often showroomed”.

They first took an “us vs. the customer” stance. They blocked out shelf barcodes so customers couldn’t scan them. They required that manufacturers provide Best Buy specific product codes (SKUs). These SKUs appear in package and shelf barcodes. Since they’re unique to Best Buy, consumers couldn’t easily price check an item vs. prices at Amazon.com.

These strategies weren’t particularly effective, nor did they improve customer relations.

Since then, they’ve had success using these strategies:

  • Price matching vs. Amazon.com
  • Improving their website shopping experience
  • Offering more in-store promotions and discounts
  • Improving their on-floor knowledge about new products.

Half of these strategies rely on price. For now, Best Buy has the resources and buying power to price match Amazon and WalMart, but I think you’ll see this backfire in the long term.

Using discounting to make a sale breeds a relationship that’s easily broken. All it takes is someone else’s lower price to “steal” your customer.

I’m not saying price isn’t important, it’s simply a poor long-term relationship builder. The easiest customer to lose is a customer you gained solely by having the lowest price – so that better not be your only edge.

What WalMart did

Rather than fighting the price checking that built them, WalMart leverages having the customer in store – even when there to showroom.

They have an app that produces a list of items that are on sale that day, which is displayed on your phone when you enter the store. The app also lets you scan barcodes and keep track of what you’ve decided to buy.

They embraced their customers’ behavior to their advantage. While people might enter the store to showroom, they’re likely to buy something else they need if they’re made aware of on-sale items while in the store.

So why the “selling by price is bad” conversation for Best Buy and “selling by price is good” for WalMart? Simple. Their business models are much different. Unlike Best Buy, WalMart’s business model is designed around “Lowest price. Always.” and driven by world-class logistics.

The takeaway from WalMart’s showrooming strategy? Taking advantage of customer behavior you can’t change is much easier than fighting it.

What an Aussie retailer did

Earlier this year, a Consumerist story told of an Australian retailer who battled showrooming with a “Just Looking” fee.

Their strategy? Charge everyone who enters the store a five dollar “Just looking” fee and refund it when a purchase is made.

Is this really how you want to make a first impression with a prospect, much less engage a customer? I think not.

Consumers: “It’s about price, but it isn’t.”

So…what’s the big lie?

Remember the 82% of consumers who told Harris Polls that price was “very/extremely important” and the 96% who said it was “somewhat” important?

Despite those big numbers, 70% of the same respondents said that if they had a good shopping experience at an online store, they would be less likely to buy the item elsewhere, even if it was cheaper.

The same goes for local retail.

Showrooming is more complex than just price. A small retailer can address the problem in ways big retail can’t or won’t.

Next time, we’ll drill down on what’s really behind “It’s about price, but it isn’t”.

Categories
Amazon Automation Box stores Buy Local Getting new customers Marketing Positioning Retail Small Business Strategy systems Technology Wal-Mart

Are you being showroomed?

Multi-Touch
Creative Commons License photo credit: DaveLawler

If you have a retail store, you’ve almost certainly had people showrooming in your store.

If you haven’t heard the term,”showrooming” can be summarized as “shopping at local stores to check out an item before buying online.”

Showrooming takes different forms and includes:

  • Price checking items on the internet while walking through a store. That bottle of foo-foo shampoo is $28.99 at the local grocery. Maybe it’s cheaper online, so people use the barcode to find a price at Amazon. A showroomer might even order right there in aisle five before they forget.
  • Going to a local store to check out a product you plan to buy online.

Electronics stores and retailers who sell complex, expensive items like cameras are most often showroomed.  Seems harmless until you consider that the local retailer is paying rent, salaries and other expenses to provide you with a free way to make sure that thing you want is really what you want – so you can leave their store and buy it at Amazon or B&H.

Internet-ready smartphones didn’t create showrooming. It’s just easier now. The same thing happened to retailers during the catalog mail order era.

Rather than complaining about it, let’s take a different tack.

One antidote to showrooming: A decent website

Showrooming isn’t just about checking out products and then going home to order them. The good kind happens too – meaning your website shows what you have in stock that’s ready to pick up today or when you can deliver it.

I’m in the process of moving to a new place. One of the unbridled joys of moving is packing your stuff. With the long weekend in front of me, I figured I’d knock out a bunch of packing. Silly me – even though I started the day with 40 boxes, I ran out Saturday evening.

Thus began the battle. U-Haul places are closed because of the long weekend. Most home stores and some box stores carry moving boxes, but it was after six, so that meant I was out of luck locally and would have to drive to town. I don’t “drive to town” for giggles, so I started surfing in hopes that someone had them in stock. If not, then my weekend plans will change (yes, a little of me was hoping I’d come up empty.)

Call it reverse showrooming, but I want to find what I need before I go chasing all over the valley for no reason.

The first box store site shows that their stock is online-order only unless I want to wait a few hours to find out what they *do* have – and then only after placing a “pick up and wait for a call/email/text” order – which felt more like betting on horses.

Some sites make searches like this easy.

For example, Home Depot has a filter on their website that eliminates anything that isn’t in stock at my “home store” (the store that I’ve told the site is closest to me). That works well, since I want immediate gratification – if you can call a shopping trip for boxes “gratification” (doubtful). Anyhow, if I can see what’s in stock, then I don’t have to take a chance at a 36 mile round trip for no reason. Finding up to date store inventory info on their site means they help me avoid wasting time and money – even at full price.

In Home Depot’s case, they also have tabs showing “All products”, “In-Store”, or “Online” – plus the filter I mentioned above.

I drove the 40 minutes and spent the 40 bucks because my local retailer was closed (which is OK) and because Home Depot’s site had enough information to allow me to make a solid decision.

Why do people showroom?

One reason is price, but for many products, the online merchant has done a poor job of selling the item. As a result, the prospect has to invest additional time to find the product and make sure it’s really what they want/need.

Why can’t your store site do that?

TIP: Big corporate stores often use automatically collected product data pulled from manufacturer data feeds (I’ve worked on these systems). Want some evidence? Look at a nationally-sold item at several large retail websites. Is the description identical? Is the picture?

You can do better. Next time, we’ll dig deeper on the causes of showrooming and discuss some solutions.

Categories
attitude Box stores Business culture Competition Corporate America Customer relationships customer retention Customer service ECommerce Getting new customers Leadership Retail Sales Small Business Strategy Wal-Mart

WalMart: “We don’t care”

Listening to WalMart’s VP of Information Technology and their lead e-commerce exec talk on Fortune Brainstorm Tech this morning, they said “We don’t care whether or not you buy in the store, online, via mobile, etc.”

Where they went one step further: They gave local store managers credit for ALL sales that happen in their store’s ZIP code, not just the sales that occur within the store’s four walls.

Suddenly, WalMart.com isn’t the local store’s enemy. Now the store doesn’t care if they are being showroomed by WalMart.com customers. They only have to care about WalMart’s customer, vs. caring that someone is an in-store customer vs an online customer.

The story here isn’t just a WalMart thing or a strategy to fight showrooming. It’s much bigger than that.

The real lesson is that they eliminated something that absolutely would pit a store manager against the company’s online presence – which ultimately pits the store manager and their staff against their company’s CUSTOMERS. When would that ever be a good thing?

Now it’s your turn.

 

Categories
Box stores Business Ethics Consumer Advocacy Corporate America Customer relationships customer retention Customer service Improvement Leadership Management Retail Small Business

The most expensive refund

During my recent trip to Tulsa, I stopped into a chain drug store (similar to Walgreens) next door to the hotel.

When I got to the register, a mom with two young kids was trying to exchange an item she had purchased for a very similar item that had the same price and was made by the same company.

Standing in line behind her, it seemed like a pretty simple thing to exchange an unopened, undamaged item from the same company.

But not today, not with this policy and not with this manager.

Your card, please. It’s our policy.

You see, the mom didn’t have the debit/credit card that was originally used to pay for the item – because her husband paid for the purchase during their last visit. He wasn’t with her on this trip.

Despite the fact that she had the original receipt, the store manager couldn’t adhere to store policy without the card used to make the purchase.

You see, store policy required that he refund the item being exchanged onto the original card used to buy the item, then sell the exchanged-for item as a new purchase. It really wasn’t an exchange, but a refund and a purchase – and that’s why policy intervened.

The store’s point of sale system was designed to enforce the store’s refund policy, which required having the card present in order to refund. Having the original card used for the purchase is not a requirement of a merchant card vendor account. It’s an intentional limitation put in place by the store to serve their refund policy.

Most likely, it’s designed to make it impossible to return cash back to a customer who paid with a credit or debit card. In the case of a return for refund, this makes perfect sense – but it still doesn’t require the original card. Merchant card accounts are perfectly capable of refunding or voiding purchases to the original account – even without the original card being present.

Win-win policy

In situations where a customer is exchanging identically priced items, a refund-only policy puts staff and management in a bad place.

Normally, the register clerk would’ve exchanged the item with a simple transaction at the point of sale where the barcodes on both items are scanned and no money changes hands. This transaction makes sure that inventory reflects reality and that store replenishment is correct when the next truck arrives – both good things. This serves the needs of the customer as well as the store. While tax-driven issues can be created when there’s a long period of time between the original purchase and the refund, they can be handled.

An exchange policy that is really more of a refund and new purchase policy turned this into far more than a simple transaction. Policies should give a manager the ability to be a customer advocate, even while protecting the store.

Training matters

As the manager repeatedly quoted the same policy-driven argument with the customer, that well-intended, audit-proof store policy turned a repeat customer into an upset customer who might never return.

This wasn’t entirely the manager’s fault. He was simply adhering to corporate store policy. If he defied it, transactional data sent to corporate could mean he’d have to answer for his efforts to please the customer, despite the zero cost transaction.

Does your management training encourage your staff and managers to make common sense decisions to preserve customer relationships? It should. The cost of an equal exchange nets out to zero, unless you lose a long-time customer in the process.

Hard costs

Losing customers like a family with two young kids over the exchange of a $12 item is a poor choice. Two kids under the age of five means 13 years of drug store trips, say $20 a month. 13 years (age five to 18) times 12 months times $20 a month is $3120, not including the word of mouth costs of losing that customer. $3120 doesn’t seem like much, but it’s the cost of just one exchange transaction that should cost nothing.

While writing policies to protect your business, be sure to consider how they’ll work in the field. A group that included an experienced register clerk, a store manager and their assistants could reveal win-win training and policy changes that protect this business while encouraging customer loyalty.

The most expensive refund is one that costs you a customer.

Categories
Business culture Business Resources Customer relationships customer retention Customer service Hospitality Improvement quality Restaurants Retail service Small Business The Slight Edge

Help them help you

20130714-111557.jpg

During a recent road trip, I encountered this sign in a rest room entryway at an Oklahoma Turnpike rest stop.

Below the sign was a standard wall light switch.

While I didn’t test it and hang around to measure response time, it’s a nice idea that allows customers to help a business’ staff become aware of problems more quickly than their periodic monitoring might reveal – particularly at a very busy highway rest stop where a mess might be just around the corner.

The longer that new mess hangs around unaddressed, the more likely it is that it will make a bad impression on a visitor. While not foolproof or automatic, the switch is one more way to build in systems/processes that can improve the business environment.

What systems, tools and processes have you established that enable your customers to help your business?

What about your products and services? Depending on the nature of them, it’s possible for them to alert you to situations you should be aware of that will improve your business and how it’s perceived.

Categories
Automation Business Resources Customer relationships customer retention Direct Marketing Email marketing Entrepreneurs Getting new customers Internet marketing Marketing Recurring Revenue Restaurants Retail Sales Small Business systems The Slight Edge Web 2.0 Web Analytics websites

Six simple questions about your website

I received these questions in an email from Tony Robbins last year.

The premise was to ask if you could answer these questions without doing a bunch of research, much less if you could answer them at all.

  1. How many visitors come to your website per month?
  2. How many of those turn into sales?
  3. How many emails are you collecting per month through your website?
  4. How long has the site been up?
  5. How many emails are in your database that have been collected through your website?
  6. What are you doing to follow up with visitors and close sales?

Seems to me they’re as important now as they were in 1995, much less last year.

A lot of businesses pay attention to #1. Many pay attention to #2.

Number 3 and 5 get plenty of attention from some, not so much from others.

The Big One

Number 6 is the one that I see the least effort on across the board.

Are you assuming they’ll come back? Are you doing something to get them to come back? Are you doing something to keep them as a customer over the long term?

So many questions…

Rather than being overwhelmed by it all, deal with the lack of an answer one at a time – particularly if it requires work.

Having one answer is much better than having none.

Categories
Advertising Amtrak Competition Creativity design Direct Marketing Email marketing Getting new customers Internet marketing Lead generation Marketing Restaurants Retail Small Business Travel marketing

How to Win The Three Inch Tourism War of Words

tourismbrochurerack

When I’m on the road, I always take a look at tourism brochure racks.

Take a look at this rack in the Havre Montana Amtrak station.

It’s a typical floor-standing tourism brochure rack that you might see around your town or at the local chamber of commerce office.

I took the photo at this height and angle because I wanted to simulate the view the “average” person has when scanning the rack for something interesting to do or visit.

The critical part is that this is also the likely view they have of your brochure.

If you’re the tourist and this is your eye level view:

  • Which brochures get your attention and provoke you to pick them up?
  • Which leave you with no idea what they’re for?

A critical three inches

The critical question is this: Which ones easily tell their story in the top three inches?

Those top three inches are the most important real estate on a rack brochure because that’s the part everyone can see.

Everything below that point is meaningless if the top three inches can’t provoke someone to pick it up and open it. That cool info inside and on the back? Meaningless if they don’t pick it up.

Whenever I see one of these racks, I always wonder how many graphic designers put enough thought into the design of these rack pieces to print a sample, fold it up and test drive it on a real rack in their community.

If they tried that, do you think it would change the design? How about the text and background colors how they contrast? The headline? Font sizes? Font weights? Font styles?

I’ll bet it would.

I guarantee you it isn’t an accident that you can clearly see “Visitor Tips Online”, “Raft”, “Rafting Zipline” and “Fishing”  from several feet away.

Brochure goals

The primary goal of a brochure isn’t “To get picked up, opened, read and provoke the reader to visit (or make a reservation at) the lodging, attraction or restaurant”, nor is it to jam as many words as possible onto the brochure in an attempt to win an undeclared war of words.

The first goal of the brochure is to get someone to pick it up.

That’s why you see “Raft”, “Fishing” and “Visitor Tips Online”. Either they care or they don’t. If they don’t, you shouldn’t either. From that point, it needs to satisfy the reader’s interests and need to know. If you can’t get them to look at your brochure – all that design and printing expense is wasted.

Is that the goal you communicated to your designer when you asked them to make a brochure? Or was it that you wanted it to be blue, use a gorgeous photo or use a font that “looks Victorian”?

None of that matters if they don’t pick it up.

Heightened awareness

I wonder if brochure designers produce different brochures for the same campaign so they can test the highest performing design.

Do they design differently for different displays? What would change about a brochure’s design if the designer knew the piece was intended for a rack mounted at eye level? What would change if the brochure was designed to lay flat at the check-in counter or on a desk?

Now consider how you would design a floor rack’s brochure to catch the eye of an eight year old, or someone rather tall? Would it provoke a mom with an armload of baby, purse and diaper bag to go to the trouble to pick it up?

This isn’t nitpicking, it’s paying attention to your audience so you can maximize the performance of the brochure.

“Maximize the performance of the brochure” sounds pretty antiseptic. Does “attract enough visitors to allow you to make payroll this week” sound better?

Would that provoke you to go to the trouble to test multiple brochure designs against each other? To design and print different ones for different uses?

This doesn’t apply to MY business

You can’t ignore these things if your business doesn’t use rack brochures.

The best marketing in the world will fail if no one “picks it up”, no matter what media you use.

What’s one more visitor per day (or hour) worth to your business? That’s what this is really about.

Categories
Amazon Automation Box stores Business model Buy Local Community Competition Customer relationships customer retention Customer service Direct Marketing Internet marketing marketing to the affluent Marketing to women Retail Small Business

The Amazon Prime Directive

Moving away from the light....and into the darkness of night
Creative Commons License photo credit: mendhak

What did you learn from – and change in your business – after Amazon launched Amazon Prime?

If you aren’t aware, Amazon Prime is a membership-based service that provides access to Amazon video-on-demand and free Kindle books from the Kindle lending library – but more importantly, it upgrades all purchases to from regular ground shipping to free two-day shipping.

The question remains – what did you take away for your business from the launch and subsequent success of Prime? Did it provoke you to change anything about your business and how you work with customers?

Even if you don’t do retail, there are lessons to be learned from what Amazon is doing.

The Fresh Prime of Bel-Air

Plenty has been written about the success of Prime and what it’s done for customer loyalty.

One quote from the Small Business Trends piece (linked above) that might get your attention – a comment from a Morningstar analyst who researched Prime:

What we found is that, generally speaking, last year Prime members spent about twice as much as non Prime members. (emphasis mine) They spent about $1,200 dollars compared to $600 for non Prime members. What’s also interesting is that the average person shopping online last year spent approximately $1,000. What that says to us it that Prime members generate more incremental revenue per than non Prime shoppers. They are doing most of their online shopping on Amazon as opposed to going to other sites. Prime members generate more income.

Recently, Amazon took the service a step further with the introduction in Los Angeles of Amazon PrimeFresh, which expands upon their Seattle-based test program.

What can you take away from this and implement at your business? Do it for them. Deliver it for them. Automate it for them, as appropriate. All with more personal touch than Amazon can afford to do *in your community* and *in your market* with *your customers*. Yes, automation *can* result in more personal touch.

The key is the emphasis on your community, your market, your customers. I’m not suggesting that you try to clone Amazon.

Behavioral shifts

There’s much more to this than automation allowing you to buy produce via your web browser. Customer behavior is central to what Amazon does.

When Amazon saw that Prime members behaved differently, then they could work differently with them. Simply by buying a membership in Prime, a buyer is telling Amazon “I am going to buy more, more often.”

If your customers could send you a signal in advance like that, how would you use it to improve what you do for them? How do you care for your best customers? How do you encourage new customers to take advantage of what you offer like your best customers do? How do you make buying friction-free and easy?

Now reverse that. If you look at customers who buy more and more often from your business, what are you doing to take care of them? What if you did those things for more of your customers – would it turn some of them into Prime-like customers?

Amazon, WalMart, You

We’ve talked repeatedly about “When Wal-Mart comes to town“. Amazon’s taken WalMart’s game and made it more convenient and logistically efficient.

Take from them what makes sense for your business and implement it a step at a time, even if your implementation looks completely different. The lesson is doing what matters for your customers, rather than blindly cloning what Amazon or WalMart do.

For example, let’s say you sell high quality, organic meats that your area’s chain grocer doesn’t carry.

Do your customers forget to stop by your place? When they’re at the grocery, do they grab something there because it’s in front of them? That convenience can cost you a $25 sale. How many can you afford to lose each week?

While you probably can’t afford to provide same-day delivery like Amazon does in Los Angeles, you can serve your neighborhood or small town in a similarly convenient way. Maybe you deliver on Thursday evenings so people have their weekend meat supply for campouts and family gatherings in advance of their weekend grocery shopping. A part-time employee could deliver their pre-paid orders.

You don’t have to cover the whole state 24 hours a day, just your market area (or part of it) as convenient.

Make quality, local buying easy. That’s the local Prime Directive.