Retail Observer

RETAILOBSERVER.COM APRIL 2017 48 I n the ultra competitive world of small business, particularly in the home retail appliance industry, having a cohesive, streamlined online and marketing apparatus is absolutely essential. A cumbersome, sloppy website or an unfocused marketing or advertising strategy are a surefire way to annoy and confuse customers, ultimately ensuring a lack of foot traffic in your store. Since it is absolutely essential for a small business to find and maintain a loyal customer base in order to survive, owners must be able to outmaneuver and undercut their larger but less adaptable competitors using the benefits of new technologies. Personalized website designs and page content, the use of CRM (customer relation management) software to track buying, and the implementation of marketing automation are just a few directions small businesses can go to beat their competition. The popular conception that larger businesses have a more favorable position than their smaller counterparts is oftentimes true. However, when it comes to employing innovation, small businesses have the upper hand. When a larger enterprise decides to update a facet of their operation using an advanced method, the process is complicated and time consuming due to legacy technologies. The cost for replacement of their out-of-date system and the retraining of staff to learn a new technology, often outweigh the potential benefits. Most importantly, large companies invariably cling to a "if it ain't broke, don't fix it" mentality which stifles more efficient methods of doing business. Small businesses do not have these hang-ups since they have fewer employees, are less clunky, and are more adaptable to new technology. It also helps that efficiency made possible by cutting-edge ideas means less spending, which is enormously beneficial to any small business. The advantages of new technology, particularly in digitization, are discussed in this month's issue of Entrepreneur magazine. In "What Small Businesses Need to Do to Win in Online Retail," by Corey Tollefson, the examples of Sports Authority and Circuit City are cited early on to remind readers of the pitfalls of large companies that resist innovation. Tollefson goes on to list how small retail companies can beat larger companies by luring millennials through a mixture of personalization and analysis of customer behaviors. He states, "Millennials make up the majority of the global population—and these tech-savvy shoppers are anything but traditional when it comes to shopping. To attract and retain this generation, personalization is key. Retailers that can offer consistent yet customized offerings are most likely to come out ahead of competitors." To follow up on the benefits of enticing the millennial shopper, retailers must be able to collate and analyze customer data to predict buying trends. Retailers can use new technology to capture, store and evaluate customer behaviors. This capability allows the traditional brick-and-mortar retailers to analyze data in the same way online retailers have been doing for years. Collecting data on their lifestyle, brand choices and their expenditures will help you learn more about your customers and how to best cater to their needs. The use of CRM software and marketing automation to accomplish this end is yet another avenue small businesses can utilize to challenge the supremacy of the big box retailers. Advances in technology have, in essence, given independent retailers a unique opportunity unlike ever before. Through the use of customized websites, software that identifies buying habits, and the identification of a new breed of shopper, small businesses are now armed with the tools necessary to lure customers away from their entrenched competitors. Once you have this data from your customers you have the opportunity to customize your social media posts, email and direct mailings with new product information, helpful insights, and valuable coupons that are in line with their buying habits. For the small independent retailer, these new technologies are resources that should be taken advantage of, particularly in the current climate where once stable market conditions have been turned on their ear. With formerly dominant companies growing antiquated by their inability to embrace technology, large shares of the retail market are ripe for the taking. John White Appliance Trends John White, EVP of Major Appliances & CMO at BrandSource RO SMALL BUSINESSES CAN OUTMANEUVER LARGER COMPETITORS WITH NEW TECHNOLOGIES

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