Differentiating in retail

Can an entrepreneur, setting up another retail store that would retail multiple product brands (consumer durables) differentiate himself from the rest of the pack? Yes, he or she can! Here are a few :

• Customer Service Experience and Engagement

In a market that is short of retail brands that focus their energies on servicing the customer,  pricing  is often viewed as the only 'Reason to Buy'. Customers will seek out those retailers who offer the best deals or the lowest prices. While this is great for the customer, a new entrant will find it difficult to compete against the bigger chains on the pricing front because of a multiple of reasons, chief amongst them, the economies of scale versus a startup's need to recoup the costs of starting up. It requires one to then focus on other aspects of the buying experience to differentiate oneself. The 'focus' must be on delivering an experience that overcomes the pain points that a potential customer experiences at your competitor's, from the moment a customer interacts with your Brand to post purchase or visit.

• Focus on a Segment of customers or categories that are not catered to by the big boys

Could be the bottom of the pyramid or the top of it.These segments of the pyramid may have their own unique needs and aspirations that have not been catered to by the mainstream. Be attentive to these needs that can be as simple as getting rid of a barrier in access,(finance) to satisfying an aspiration for a certain lifestyle

• Geographical Focus

Be present in smaller towns or cities where the big boys have not yet set shop.Be the first mover and learn faster than the big boys.

Service, a key differentiator, even for PRODUCT brands

Recently, I went furniture hunting for an apartment and zeroed in on a reputed retail brand that I felt offered  value for money in terms of pricing,quality and aesthetics. It is promoted by one of India's oldest business groups and I feel they surely have hit a sweet spot and big opportunity for reasonably priced, quality and contemporary furniture with the brand.

The brand experience up to the point of selecting the furniture and paying for it was satisfactory, and in line with most brands in the segment.

However, the delivery experience was nothing to write home about. I am sure most of you have experienced this often, being kept waiting for hours on end, constantly postponing meetings and other appointments in the fear that the elusive delivery man would drop in any moment and if I miss it, meant another day of the same! On contacting the store was given the number of the transporter and requested to contact him directly (another Indian practice). On enquiring his whereabouts,I got a response that he was at the Airport,doing an urgent delivery, and would be at my place in an hour and a half!! This is after having waited for more than two hours and countless assurances from the store that they were on their way and should reach any moment!

Isn't it about customer's time valued as much as his money? Such an experience seems to plague  almost every retailer that offers delivery as part of its value proposition. Would it not be a better customer and brand experience, if deliveries were made on time and efficiently? Delivery is the second last touch point of the brand with the customer, the last being the assembly.

It may seem a SMALL matter but there are plenty of small stuff  that add up to creating a BIG impression and brand experience. Some of them include

• Politeness and Motivation
• Body language and Attitude
• Focus and alertness
• Product knowledge

Remember, SERVICE can be a big differentiator even for predominantly product brands.