EuroAsia Research Experts conducted a price survey among 5 major retailers in the Philippines whithin the Ortigas-Shaw Area last March 10, 2016. The survey was conducted within a 10 hour period and all 58 items canvassed were bought from the different supermarkets.
Disclaimer: Euroasia Research Experts does not endorse any product/brand/retailer. This exercise was conducted purely for research purposes.
Price Index Average
Price index-a normalized average of price relative for a given class of goods or services in a given region, during a given interval of time.
% of items not available on shelf
*Not available on shelf-items that were not found during the store visit, products can either be out of stock or not carried by the retailer.
The substantial growth of the Philippine economy over recent years has significantly increased the purchasing power of the country’s Upper C-Class, making it the current demographic to watch closely.
The entire retail chain (manufacturers, suppliers, and distributors) has been reactive to this opportunity, upgrading product offerings with more premium items supported by strong commercial campaigning, notably including more and more investments in brand ambassadors.
Aside from enlarging their product ranges, retailers have also looked to improve on merchandising, with customer experience becoming increasingly important for younger generations of consumers.
The timing is crucial for both vendors and retailers, as this is a huge opportunity to gain market share in premium products, and a valuable push in sales and value margins moving forward. Organized retail chains are prime beneficiaries, as this is a chance to edge out their traditional (e.g. Sari-Sari stores) competition that won’t have the same capacity to improve in marketing.
All this, however, comes with obligatory considerations to ensure a profitable foray into the trend of Premiumisation. Here’s some food for thought:
1) When and where is it happening?
It is already evident in stores located in main cities, specifically in areas benefiting from a more premium market. The challenge lies in a balanced execution, something which many retailers are still having difficulty with. More on this below.
2) What is the impact on assortment and merchandising?
Listing new premium items should in no way destabilize the existing assortment structure suited to the market profile.
Some local retailers tend to sacrifice items categorized as basic necessities in order to accommodate a premium upgrade. This is a risky move in the still unpredictable Philippine market where consumers have shown a desire for premium products, and yet maintain a need for basic commodities and low prices. Listing and delisting products should be carefully addressed to take in consideration the number of SKUs and price segmentation expected for a given category.
Adaptation in merchandising is a challenge driven by market profile as well as the size of the store. Merchandising should reflect the proportion that the retailer has decided to allot to low, mid, and premium segments.
Finally, overspacing for premium items may have negative consequences on sales productivity and price image. Underspacing on the other hand may reduce the opportunity for the trend altogether. The trick is finding balance, balance, and more balance. Remember that the spirit of Premiumisation is one of complementing and not replacement.
3) How far are you willing to take it?
Alignment of your marketing initiatives with your vendor’s program is key. When people see products represented by celebrities on TV, they expect to find these at the forefront of the store.
Upon launching a premium product, try to feature it as much as you can in catalogues. Organizing in-store activities will surely reinforce its visibility, so seek out all opportunities your vendor can provide such as sampling, booths with promodizers, etc.
Forecasting sales with the vendor is also a must in order to replenish stocks in a timely manner.
At the end of the day, Premiumisation provides a unique opportunity for retailers and vendors to work hand in hand under the same interest of getting an uptick in sales value and margins. The biggest risk you can take is not taking the risk at all and missing the boat on this trend.
The Philippine retail industry is growing, and fast. Can your employees keep up? Retail experts are difficult to find. You might be able to hire skilled employees, even with minimum experience, but will they be loyal? The borrowing of talents is a short-term solution.
Instead, consider training your employees. Look into providing them managerial and technical tools. Support the individual development of your employees. If training is a key component of the company strategy, you will be better equipped to keep up with the changing industry.
The basics
The first step is to identify the type of training your team needs. What is required by your company strategy? What vertical and horizontal trainings are necessary? The goal of this process is to align the needs of individual employees with the company’s priorities. Find common themes and specific modules needed to improve your company’s technical or managerial capabilities.
The next step is scheduling. Allocating time for training means taking employees away from their daily tasks. In the retail industry, this can be a challenge. You should find a schedule that is optimal for the employees involved, to make sure that everyone benefits from the training session.
The third consideration is the expense. When you prepare your budget for the next year, you should include yearly training and its associated costs.
As with many other aspects of business, the ambition and support of the management is key. Set training goals for each year. Monitor and evaluate closely, to make sure the employees reap the full benefits of the training. See what you can improve. Few retail companies are consistent in their training plans.
Appoint a training and development manager
In many companies, training is assigned to the human resources department, or to a manager with many other responsibilities. In such cases, the training might be poorly handled, and it simply becomes a waste of time and effort. Instead, appoint a training and development manager.
During my experience with Carrefour in Saudi Arabia, we invested in a training and development manager, and it was a true success. We were able to plan training sessions and organize the logistics for each year, with minimal issues. We managed the entire process, from the training plan, the organization of the training and related activities, to the monitoring of the progress. In a country with limited exposure to retail best practices, it helped the company to set standards early.
Plan a yearly training schedule
It always helps to plan ahead. When you prepare your yearly schedule, you can select and prioritize programs, allocate appropriate time, and adjust the budget. Such planning and foresight also shows the entire organization the value of the training. In addition, your managers can anticipate the impact on operations, when they or their staff are called away for training.
Company priorities will help you narrow down the specific technical trainings that individual employees need. Horizontal trainings often help augment individual performance, especially for positions supervisory and higher.
Some companies also conduct trainings on specific topics, not necessarily those directly connected to the company’s work. These trainings are among the benefits provided by the company.
Get qualified trainers
Training is a special skill. Technical expertise is an advantage if you can deliver the key messages. Communication skills are essential, as well as the capacity to manage people of different group sizes.
With qualified trainers, you are assured that your employees will benefit from the training. Your team will pay better attention, be more interested, and show more respect if the trainer is clearly a professional. A professional trainer will be able to provide you with a structured program, and documentation that you can keep as a reference.
You will also have access to the trainer’s wealth of experience, which will be shared with your team. A qualified and experienced trainer can provide a benchmark on the best practices. This will help you and your team to assess the company’s current practices, and measure gaps and opportunities. The trainer’s skills and knowledge will result in immediate learning for your team.
Choose a nice facility
I recently met with a client for business reviews. The client chose to meet with vendors in a nice, well-equipped venue, away from their head office. The vendors were impressed with the place. The buying team was able to focus on their presentation and on discussions with vendors. All presentations took place in a pleasant environment. The hotel provided ample service, from snacks and coffee to technical assistance. All these conveniences made our stay comfortable and helped us focus on our work.
If you can, hold your training out of the office. Bring your team to an environment where they can forget their everyday concerns. The conditions should allow them to focus their full attention on the program. Taking the training out of the office reduces the possibility of distractions like phone calls, faulty equipment, or noise. Make meal times pleasant, with healthy food.
Provide your team with an experience they will remember and talk about in the office for weeks! If they are comfortable and relaxed, they will get the full benefit of the training, and that will be time and money well-spent.
These are rather vague guidelines for interacting with customers. Customer service is a critical aspect of any business, but it is an aspect of business that where many companies make mistakes. It may help for customer service staff to think, “What if I were in this customer’s shoes?” When you put yourself in the customer’s position, you can more easily figure out how to truly serve their needs.
Why is customer service important?
Customer service policies exist because unexpected concerns arise: a product does not meet expectations, the wrong size was purchased, the product turned out to be of poor quality. Perhaps there are problems with the product. There may be room for improvement.
These concerns stem from one critical assumption: that your product is of good quality. A good product should provide consumers with a good experience. So when a customer files a complaint or requests an exchange, you should see it not as a disaster but an opportunity.
Customer service is an opportunity to turn a negative experience into a positive event. Rules for return and exchange should always have the end goal of providing the customer with a positive experience. The customer has a problem involving your product, and you should do your best to provide a solution, one that reduces the customer’s stress and annoyance.
99.9% of customers are honest.
Paranoia is common amongst retailers. There are fears of profit loss, cheating by cashiers or sales staff, and other unscrupulous practices. To protect the company, retailers often lay down customer service rules that are overly strict, filled with tedious procedures and endless forms. These ensure protection for your business, but they are not very accommodating to your customer.
Online stores have been very progressive with their exchange and refund policies, and brick-and-mortar stores would do well to follow suit. Your customer most likely has a genuine request. Very likely your customer wants to come back to your store. Your customer service policy should encourage customers to keep coming back. Start with the assumption that all customers are honest, and design your rules for them. Inevitably there will be some unscrupulous customers, but these are an exception and not the rule.
Rules, decisions and escalation.
All employees of retail organizations have to follow strict rules. The same goes for customer service. But most sales staff don’t have the authority to make decisions about return and exchange. The request is only granted after the customer has spoken directly to the sales staff supervisor. This is frustrating and time-consuming for everyone involved.
Even lower-ranking employees should have authority to make decisions about return and exchange. Escalating the problem to their supervisor should only be a last resort, and addressing the problem should not take up too much time. Rules should be customer-oriented; simple and easy to understand and to implement; and flexible enough to accommodate customer requests.
In most of Europe, exchanges, refunds and returns are quick transactions in any establishment, be it a large supermarket chain or a small family store. If you are not happy with the product, even if it is fresh produce, a half-empty bottle of wine, or half-cooked meat, the proprietor will replace or refund it, no questions asked.
Trust that your staff will make the right decisions to satisfy the customer. Review each case of return or exchange, and make sure your employees understand the proper way to respond to customer complaints.
It’s not what you say. It’s how you say it.
Most stores have a sign that indicates their return and exchange policy, usually written in legal language, full of “must” and other forbidding words, as well as mentions of relevant consumer laws. Such signs tend to discourage consumers. If they make a mistake with their purchase, they have little assurance that they can easily correct the mistake.
Your policy can be phrased in a positive and friendly manner. You can say, “Reassessing your purchases? Feel free to change your mind. You can exchange or refund items from any of our stores up to 7 days from date of purchase.” Friendly language is much more accommodating and less hostile to consumers.
Remember, you spend money on promotions and advertising to get new customers. But how much are you willing to spend to keep them coming back?
If well-managed, exchange and refunds are neither a treat nor a loss of sales. They are an opportunity to show respect and empathy to customers, at almost no cost.
To be the best then learn from the experts. EuroAsia Research Experts will conduct a free consultation on assortment merchandising and product placements on November 23, 2015.
If you’re a part of a merchandising team or if you’re from the retail industry then take this opportunity to learn from the experts.
Last November 10, 2015, EuroAsia Research Experts organized a Food Safety Forumevent that was attended by representatives from the different sects of the retail industry. The event focused on food safety particularly GMP and HACCP Certification, Food Safety Act of the Philippines, and the importance of being certified.
The Speakers: (L-R) Christina Diaz of SGS Philippines, Patty Velasquez of EuroAsia, and Timothy Moises Mendoza of FDA
Patty Velasquez sharing insights on food safety in the retail industry and the GMP and HACCP Certification process
Timothy Moises Mendoza explaining the Food Safety Act of 2013
Christine Diaz sharing the importance of being certified
About the Author:
Eric Poiret Strategic Planning Director – EuroAsia Research Experts
Eric has a solid experience of more than 25 years in the management of retail chains in the Gulf Region, Asia and France. Before becoming the Chairman of ERE, he was Managing Director for Metro Gaisano, Chief Operating Officer for ASWAAQ, a Dubai Government-owned company, and Chief Executive Officer for MAF Carrefour KSA. Eric Poiret’s expertise lies in strategic planning and operations management.
There are many factors that contribute to the success of a new store, but one of the most critical elements is your location. You may have done everything perfectly, but in the wrong site, your business could easily fail.
As with all other aspects of business, you need thorough research and careful planning when it comes to the ideal location. This begins with a crucial step: understanding the requirements of your business format. Different formats have different needs. For example, convenience stores need to be in urban areas with heavy foot traffic, while a grocery store can be located in residential areas that have ample parking space.
Once you have identified the needs of your business format, you can assess locations based on these criteria:
Demographics.
In any business, one of the first things you do is you identify your target market. What are their income brackets? What brands do they buy? What are their buying habits? When you determine these, you can also figure out the areas they frequent. You can look at these areas for your store location, because your target market is already there.
Accessibility and visibility.
You have to make it easy for your target customer to visit your business. If your business format requires a lot of foot traffic, you can choose locations along main roads or busy streets, or near public transportation routes. Do you expect your target customers to drive to your store? You may need ample parking space and a large driveway. The flow of traffic is also an important consideration, especially since roads that are one-way today may become two-way in a few years, or the flow of vehicular traffic may change. Which side of the road would be better? Are there upcoming commercial or residential developments that might affect your business?
Potential for development.
Study not only the current business landscape, but also the future of that area. Many thriving business and commercial districts started out as idle or undeveloped locations five or ten years earlier. In addition to researching upcoming developments, you can assess current and potential competitors in the area to see how you can compete with them.
Clustering.
Often you have to look at multiple locations because you have to open more than one store. But it’s not practical to open one store in one place, and then open a second store on the other side of the country. If the locations are too geographically distant, you will have problems with logistics. You may want to consider opening multiple stores in a single city, business district or region, for example. This will help build your brand recognition, paving the way for expansion to other areas in the future.
Risk management.
There are many risks to consider when setting up a new business or opening a new store. Some of these risks you can plan for, such as prospective sites in flood-prone areas or earthquake zones. Other risks are difficult to predict, such as changes in traffic management schemes or a large shopping mall suddenly opening. Think of possible situations that might have a big impact on your business, and draft contingency plans for them.
Budget.
One of the most important things to remember when choosing a new location is your budget. There are many costs involved in opening a new store, and it may be tempting to spend a lot on what you think is the ideal location. If you find an optimum space that is over your budget, think carefully if it is worth the expense. The additional cost of this location could be detrimental to other aspects of your business. Did you find a low-cost location? Cheaper is not always better.
These are a lot of factors to consider when choosing a new location. How do you decide? You can assign a weight to each criterion, determining which factors are most important for your business format. Then you can create a score card for the different locations you are considering, and see which one is the most ideal. When you find your ideal location, you are already contributing to the success of your business.
About the Author:
Eric Poiret Strategic Planning Director – EuroAsia Research Experts
Eric has a solid experience of more than 25 years in the management of retail chains in the Gulf Region, Asia and France. Before becoming the Chairman of ERE, he was Managing Director for Metro Gaisano, Chief Operating Officer for ASWAAQ, a Dubai Government-owned company, and Chief Executive Officer for MAF Carrefour KSA. Eric Poiret’s expertise lies in strategic planning and operations management.
The Philippines for the past years has been a flourishing and thriving market for retail operations. International, national, and local players each have established their presence in key cities and are continuously expanding like wildfire to rural centers, even to before unexpected locations. In the past, most malls were only located in the cities, but recent developments have seen the rise of malls in every municipality and town. Expansion strategies of big mall owners to target more market segments have reached the provinces through smaller channel formats like supermarkets and groceries. The proliferation of convenience stores from business districts have reached the residential areas and are now present in every street corner. These developments were brought about by Filipino consumerism and the increase in their purchasing power.
International and national players have taken advantage of this progress and competed head-to-head on market share and profitability, leaving some local players dumbfounded on how to cope with the ever-changing landscape of competition due to the bigger investors and the ever-growing consumer needs. Yes, there may be an apparent difference in terms of investments and capabilities between big and small players, but that doesn’t sound all correct to be able to achieve success and compete fairly. The obvious disparity in the standing and going points of the retail players, oftentimes overshadow the core aspects of operating a business. This is where not only the local players are caught into but even the bigger players.
Knowing the landscape.
Market varies from one place to another, even in similarities there are differences and uniqueness. This aspect can be better understood by doing Market Research. Knowing and understanding the market is essential to planning and implementing strategies. What will work and what will not, what is necessary and what is not. Market research will help find out the right location for a business, the population to target, its demographics and economic base, and other necessary information. For instance, since the Philippines is an archipelago, topography and market composition differs from one place to another. The research will help retailers determine what format to implement based on the data gathered. Thus, market research will enable custom-fitting to a specific market.
Market research will tell retailers where to go. Location is crucial to a business’ success, that’s why most big players are looking for the best location rather than going for the cheapest one. Though not a priority, the cost of getting the desired spot is a consideration for retail operations. The space where to establish a business will somehow dictate its effectiveness.
Planning is the heart.
Accurate strategic planning allows retailers to understand and select the best options for development in line with their ambition and financial capabilities. Understanding their strengths and weaknesses will enable them to act appropriately. A business fails mainly for two reasons: (1) Lack of planning and strategizing for development; and (2) Under-evaluating the costs of developing the business. Business owners all want to develop quickly but aren’t well-prepared with their business plans and commercial concepts. If market research tells where to go, good planning tells what to do and how to do it.
Organized retailers, mainly international and national players, have understood this from their myriad of experiences. They plan better and keep the trend while adjusting their commercial concept. Recent developments will show for instance, how some national players diversify and expand their retail operations. From the big malls, they have further saturated the market and extended their brand through smaller and complementary formats like supermarkets, neighborhood stores, and convenience stores. These aren’t out-of the-blue decisions, but rather part of their master plans, with some adjustments along the way as changes and development occur.
Consistency is the key.
Adhering and being consistent with the plan is also essential. The lack of understanding of it will lead to random, inappropriate actions. Mid-term expectations are preferable to short term anticipations in order to avoid discouragement. Local retailers and outsiders, however, show hesitation and uncertainty during the development phase or the execution of the plan. Even on the first sign of difficulty, some immediately reconsider their plans. Remember, if you planned well, trust the plan and go with it. Make the necessary adjustments as you see fit. But again, don’t veer away from the plan. If the return of investment is slow, you can adjust the commercial concept and economic model, instead of stopping.
Organization and resources are rarely appropriate to face challenges in developing the company. Retailers see the necessity to upgrade the model but are hesitant to engage in necessary investments. They should make sure that their standards will support their ambitious development plan. Commercial excellence in merchandising and operations are required to achieve the expected level of performance.
Moreso, the alignment of plans with the entire retail organization is a pre-requisite to embrace changes that promise the company’s growth. Everybody in the group should be aware of the plan, be connected, and aligned. They should push for the achievement of the plan. This step will prevent internal resistance that might cause delays and gaps with the company’s qualitative and quantitative targets.
Monitoring.
The discipline in monitoring the development of the strategic plan is an important factor to its success. Retailers usually focus quickly on the economic performance without ensuring that all conditions and pre-requisites have been set, thus resulting to wrong assumptions. It is important for retailers to have a management that concentrates on company goals, tackles unique scenarios, and provides a clear road map.
In a progressive and competitive retail environment, only those that are structured, well prepared, and equipped with the right tools will remain steadfast.
About the Author:
Eric Poiret Strategic Planning Director – EuroAsia Research Experts
Eric has a solid experience of more than 25 years in the management of retail chains in the Gulf Region, Asia and France. Before becoming the Chairman of ERE, he was Managing Director for Metro Gaisano, Chief Operating Officer for ASWAAQ, a Dubai Government-owned company, and Chief Executive Officer for MAF Carrefour KSA. Eric Poiret’s expertise lies in strategic planning and operations management.
In 2015, the International Group Ocean Conservatory and McKinsey Center for Business & Environment ranked the Philippines as the 3rd biggest contributor to plastic waste that goes into worldwide seas.
This translates to the earth-shaking figures below.
based on 21 waste assessments conducted in 6 cities and 7 municipalities in the Philippines.
The research illustrates that a year’s worth of sachets can cover the entire Metro Manila one foot deep in plastic waste.
If that is not alarming enough, then the entire nation will literally be underneath a big pile of trash.
Be the Change
How can we be part of the solution? Taking small steps to cut down on plastic use every day may start out as tiny ripples that can become gigantic waves with immeasurable impact on the environment.
Choose to Refuse
The potential of not using any plastic for an entire month may sound impossible — and unfortunately, it pretty much is. But let it not stop you from trying. Instead, it’s all about being part of the solution in a way that works for your lifestyle — while still naturally challenging yourself.
With the pandemic still evidently posing a clear danger and risk, it may be trickier than usual to avoid single-use plastic this July. That is completely understandable as the world prioritizes health and safety above environment-friendly. Instead of being hard on yourself, be completely aware to use something reusable instead of something single-use whenever possible. At restaurants, bars and venues, say no to a straw as you order your drink. Choose products with less packaging while out shopping. Every little ‘no’ adds up.
As a guide, simply think — If you can’t reuse it, refuse it.
Aim to Reduce
We can all do our bit to cut down on plastic we use every day.
It can start with bringing your own utensils when dining out, using your own bottle for drinks and refills, bringing a bag when shopping. Choose loose fruits and vegetables from the supermarket or take your own containers when grocery shopping. If that is still too much, start with disposing off your plastic waste responsibly, or picking up plastic trash you spot on the way.
According to the Global Alliance for Incinerator Alternatives (Gaia) from its five-year trash audit, the average Filipino uses 591 pieces of plastic sachets, 174 shopping bags, and 163 plastic “labo” (translucent) bags or almost a thousand plastic pieces yearly.
If every one Filipino would reduce plastic use by even a half every day, we liberate our country from 464 pieces of plastic every year or over 50 billion plastic wastes if every one of the 110 million Filipinos would do the same.
Start to Reuse
Remember the times when you were duped by a tumbler of ice cream in the freezer containing frozen meat or fish? Or when Grandma’s collected glass coffee containers suddenly repurposed as drinking glasses at home?
Chided as habits that are uniquely Filipino (only in the Philippines), these were practical efforts of our elders to reuse old containers instead of dumping them straight into the bin to decrease household waste
Certainly, one good habit worth keeping and passing on to generations.
So before throwing something into that dumpster, remember Grandma and take a good look at it.
Give it a second chance at being useful, and yourself, the opportunity to save the world.
Simply Segregate
Remember the old Sesame Street song … “One of these things is not like the others, One of these things just doesn’t belong, Can you tell which thing is not like the others, By the time I finish my song?”
For the GenX, this may be our first lesson in segregating. Only this time, we sort not candies nor shapes, but waste. There may be different categories to group your trash but the simplest principle is to separate the Wet from Dry. Other than for environment preservation and protection of human health, waste segregation at source improves collection efficiency and leads to better processing of waste.
As a business entity, let’s make it as easy as possible for people to correctly segregate waste in by labeling, making sure there are enough accessible bins and making it clear why segregation is so important.
As a consumer, the next time you’re presented with a choice to put your plastic bottle in a general waste bin or a plastic bin, reach over to the plastic one and drop it in there.
Make the Switch
Choose the healthier and earth-friendlier alternative this July. Below are some items you can immediately consider to make that big Switch.
Paper towels or napkins to cloth or linen.
Facial tissues o handkerchiefs.
Disposable plates, cups, and cutlery to washable silver.
Plastic food bags to washable reusable food containers.
Plastic straws to metal or bamboo types.
Gift wrapping paper to recycled magazine pages or newspapers.
BYO refillable water jug versus bottled water.
Mugs for your everyday coffee instead of paper coffee cups.
Choose loose veggies and fruits over cling wrapped ones.
Your own reusable bag instead of plastic ones.
The choice is simple – Plastic or Planet?
Spread the Word!
Tell others about what you are doing and encourage them to reduce plastic use as well. Don’t be afraid to guilt-trip them if you spot them using unnecessary plastic! There are many ways and channels to make people aware of the problem in the environment.
Use the power of communication on a personal, professional, and digital level to influence people to REFUSE, REDUCE, REUSE, SEGREGATE, SWITCH, and SPREAD the word.
Still too much waste? Sort your stuff and repair, repurpose, re-sell or regift.
Remember, someone’s trash may be another one’s treasure.
So what can we do to help?
We might say that we can leave this problem for eco-warriors, bigger organizations, or the government to handle, thinking there is little or nothing we can do to impact a change. On the flip side, we can also say that this is way out of our league. The truth of the matter is, this problem involves everyone living on this planet, and it is a sacred responsibility to DO SOMETHING ABOUT IT. Whether we are a private corporation, in public service, an ordinary citizen, or a world leader, there is always an action to be taken to be part of the solution.
WWF-Philippines President and CEO Joel Palma says, “We’re so used to the alleged ‘convenience’ and ‘efficiency’ of plastic because it’s cheap and easy to dump. We have to go back to the basics. In the end, all this convenience will cost more, for us and for our children.”
Are you ready to make the plastic-free pledge? Let us help you find that spot where you can spark a solution and be the change.
Groceries. Office supplies. Clothes. Whatever consumers are looking for, they can find it on the Internet. Some check online for items on sale at the local supermarket. Children can find out which department stores are selling the latest toys. With just one click, customers can find out where to go to buy what they need.
If consumers are searching online, it makes sense your businesses should be online as well. Online selling and online catalogues go a long way towards sustainability and longevity for any business, especially in retail.
Yet many retailers still hesitate to put up a website. They don’t realize that they are missing out on many potential customers.
Here are a few benefits of setting up a website for your business:
Visibility
A website will help customers learn more about your business: what you offer, where you are located, what your store hours are. Many customers go online to do research before they make a purchase, so if you don’t have a website, customers won’t know about your products or your prices, and they won’t get to know your business. If customers don’t know you, they won’t buy from you.
An online presence is crucial to your company’s exposure. If you have a company website, you have worldwide visibility. With more visitors to your website, you can get more customers and more sales.
Access to information about you—all the time
Even if your website does not have an online purchasing feature, it can serve as your online showroom. Customers can check out your products before they visit your physical store to make a purchase.
Here’s an example of how a website would benefit your business: At Thanksgiving there are many family gatherings, which usually means a lot of picture-taking. Now imagine running out of ink while printing souvenir pictures. You would probably drive to the nearest Staples. But the store would be closed, as announced recently. The trip would have wasted gas and time. Instead of driving to a closed store, you could have checked the Staples website to find out when they would open.
Websites are accessible 24 hours a day, 365 days a year. Even if your store is closed, potential customers can still get information from your website.
Credibility
Many people look up products and companies online first. They check if you are running a legitimate business, and they look at what other people have to say about you. They look at what you are selling, and they compare it to the products sold by other companies.
Your website is a chance to show customers why they should trust you. You can show customers more than just your products. You can share your company history, your philosophy, your return-and-exchange policy. You can show visitors how you do business. This validates your professionalism and build trust among customers.
The more customers trust you, the more likely is it that they will buy from you.
Marketing
Marketing is one of the biggest advantages of having a website for your business. Traditional marketing strategies usually involve costly measures: print ads, TV commercials, telemarketing. Your website provides a way for your business to connect with customers at a much lower cost, with the added benefit of a wider reach.
Your website also serves another purpose: reaching a more targeted market. Depending on how you design your site and what information you publish, your website—or different parts of your website—can be geared towards more specific markets: different age brackets, men or women, consumers in certain locations, and so on.
On your website, you can easily update your catalog, highlight items that are on sale, and alert visitors to new promotions. Customers can subscribe to your website to get email alerts about new products or promotions. You can announce that you have new stock of a popular item, or that it is now available in different colors and sizes.
Such marketing campaigns can easily be published on your website, with little additional cost. It also helps if you use every opportunity to remind customers to check your website for updates.
Brand Identity
In addition to showing your products, your website should also tell customers what your brand is about. Many businesses rely on billboards and TV ads for this, but you can use your website for your brand identity too.
But how should it look? The logos, colors and other design elements that appear on your posters, in flyers or on shopping bags, should also appear on your site. Your website’s design should be consistent with all your other marketing materials. This way, your visual identity is consistent, whether it’s online, on TV, or in print.
Every part of your website is an opportunity to show customers who you are and what you do. Every word or picture should say something about you. Every page should be relevant and well-thought out. But before working on all the small details, you should focus on the most critical part: your domain name. As early as possible, you should register (www.yourbusiness.com). At a glance, that string of words establishes a strong online brand identity.
With all the right elements, your website can be an effective and powerful tool. And with enough time, effort and thought put into it, your website can be a part of your business that makes you proud.
