Have you heard the adage ‘with all things being equal’ then price will be the difference in the customer’s mind?  

This naturally leads us to question, how do you maximise your inequality such that price and margin are protected? Interestingly, in our research we see that one of the top five reasons why a customer will migrate to your competition, it is in fact due to service and product quality. The overall retail experience rates consistently higher than price for lost customer traffic.

We also see that a loyal customer is likely to contribute up to 20 per cent additional sales and profitability so being unequal in your service delivery is an outcome to being obsessed with all aspects of your Effective People framework.

So what are you unequal at?

Do you have...

* A unique and sustainable position built on expertise? (Think Apple)

* A dominant range and smart retailing relative to your target market? (Think JB Hi-Fi)

* Location, extended hours, wide range, commodity width and processes? (Think Wesfarmers/Bunnings/supermarkets)

* Fashion, direction, styling, impact, instore and multi channel experience? (Think our top 25 fashion retailers)

* A Well delivered multi channel retail offer, integrated and in line? (Think Witchery)

* A High service offer, focussed on a unique people model?

There are many other examples of unequal retail performance out there and being 'fit' in retail is really about maximising your unequal position such that systems, productivity and profitability follow.

Recently I listened to the chairman of one of our client companies addressing a room of their suppliers discussing trading terms and he openly said to them that his company wanted ‘their unfair share’ of the suppliers business. In other words, being unequal in the negotiation and creating margin growth was their point of being unequal.

Another client only employs management executive from direct word of mouth and endorsements, not using the more traditional methods of recruitment. Their unequal advantage is in their recruitment practices and the culture of the people they recruit and engage.

A CEO colleague and customer, said to me despite all their systems in management measurement they had for performance, their business was simply not firing to her expectations. The unequal advantage desired in management reporting systems was being equalised by the cultural misalignment of the business. Or put more simply, could be measured although wasn’t buying into the outcomes required.

Deeply consider where your unequal advantage actually lies, or if you are simply operating an ‘equal’ business where price becomes your weapon of competition? This also applies to all forms of retail even the commodity discounter who value adds the shopping experience, offering services such as home delivery to protect price and margin. How will you be unequal such that your ‘place in the sun’ is assured whilst delivering increased and unequal returns for your stakeholders?

Management is doing things right, leadership is doing the right things, being unequal is maximising the unique capabilities and delivery of your organisation to “fitness” and greatness .

Happy ‘Fit’ Retailing

The Retail Doctor

Come to The Retail Doctor’s ‘The Connected Retailer’ Breakfast Seminar this March to find out how to improve your business fitness and be more connected with your customers. For more information and to register, visit www.retaildoctor.com.au or contact louise@retaildoctor.com.au or 02 9460 2882.

Contact us: www.retaildoctor.com.au, email businessfitness@retaildoctor.com.au or phone us on 02 9460 2882. Alternatively visit our sites on LinkedIn, Twitter, Facebook or Slideshare.