Retail Observer

RETAILOBSERVER.COM MAY 2016 40 S urveys of the shopping preferences of Millennials show that they are drawn to authenticity—defined as "genuineness or truth of something." But I think most buyers want that same thing. And the failure of many retailers to tell the truth is what has made today's consumer wary. When every ad reads, "70% off" or "3 days only" or "limited supply" or "overstock", why should consumers believe them? Is every retail buyer that bad? Does every merchant buy too much inventory? Do all suppliers double and triple ship to their customers? Is any offering a real "deal?" What does warehouse or discount pricing really mean? Today's customer has access to incredible information—they know the difference between an unrealistic MSRP and your sale price. They no longer have sticker shock—they just think you're trying to get them. When they see "20% off" they want to know, "Off of what?" I still hear from dealers that they have to inflate their prices—or tag products at manufacturer's "list" price—because all their customers want a discount. They all want a deal. Customers don't believe in "deals" any more than they believe in Santa Claus or the Easter Bunny. They want to be treated fairly and get a good value. When now defunct Saturn first promoted "no-haggle" pricing, it turned the auto industry on its head. But that was more than thirty years ago, in 1985! Consumers want the truth. If your marketing says you stock all brands and the customer can't find the one he wants to buy, you have no credibility. When you tout that you have the best product experts in town, they need to be professional in answering your prospects' questions. They need to be tech savvy and take the customer to the vendor's website to see what options might be available. Big, bigger or biggest is no longer best. Customers are willing to pay more to shop the limited organic offerings at Natural Foods or Sprouts. Even referring to it as "Whole Paycheck," some folks flock to Whole Foods for the boutique experience offered by that chain. Trader Joe's customers are brand evangelists exchanging brand name products for the store's own line. With its limited selection, I find it nearly impossible to fill my complete shopping list from TJ's but the parking lot is always jammed. Millennials have a preference for local businesses over national chains. They want to know that the bartender serving their beer is a partner in their favorite pub. Remember Cheers—where everybody knew your name? In her article in Inside Retail (Australia) Karen Spear best described the need for creating authenticity. "We're all aware of the trends. In this time of increasing digital transparency and empowered consumers and shoppers, brands telling a genuine and original story are winning the battle for our hearts and minds. People believe in honesty and sincerity. They are seeking out authentic brand interactions and experiences. They are drawn to brands that stand for something and those that are totally clear about who and what they are," Spear said. Spear goes on to describe three keys to creating and maintaining an authentic brand. • Storytelling – One of the greatest assets to your brand is taking people on a journey, sharing history, creating a connection and inspiring loyalty. • Clarity – Being totally clear about who you are, what you stand for, and what you do best, and being intentional about how you communicate this. • Consistency – Ensuring every interaction someone has with your brand communicates your brand personality and provides an engaging and memorable experience. Your story runs deep—you've been in business for three generations and contributed to your community by your commitment to many local efforts. Post pictures of your sponsored events and letters of thanks you've received from their leadership. Get your staff out into the community—build a team to run in your next charity race. Develop a clear and consistent message about who you are, what you do well and why customers should buy from you. If you haven't read it, buy Sam Geist's book Why Should Someone Do Business With You…Rather Than Someone Else. Answer that one question and you're a long way to achieving real authenticity. Elly Valas is an author, speaker and retail consultant. She can be reached at elly@ellyvalas.com or 303-316-7568. Elly Valas Retail Views RO BE REAL OR BE GONE

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