Some small business owners may be wondering if the current economic crisis is causing consumers to be more conservative in their spending, explaining the recent dip in sales.
Although the current economic crisis may be a cause, Kathy Macomber, a business development specialist with University of Missouri Extension, says business owners should also consider the increasing impact of the Internet.
"Whether or not you have a Web site or market online, your customers are using the Internet for shopping, price comparisons and stock availability," says Macomber.
Nielson Online conducted a survey in November 2008 which showed the Top 10 Reasons to Shop Online. The number one reason was the ability to shop 24 hours a day. The number two reason was to "save time" and third was to "avoid crowds" followed closely by "saves gas."
Other top reasons included "sales/discounts," "low prices," "comparison shopping," "selection," "available product information," and "items in stock."
"To learn what your potential customer learns about your business, consider using a search engine on your company name. Even if you don't have a Web site, you will likely see a map link and quite possibly some customer reviews of your store and products," says Macomber.
She recommends reading any reviews and comments. If there is misinformation, add your own comments correcting the errors. Do not be defensive or critical, and thoughtfully consider whether there are changes you could make to prevent the continued misperception.
"It is also a good idea to take a look at your top ten products and services. Then do a search on them to see what your customers are finding for price comparisons. Your loyal customers may take you off their shopping list before you ever knew you were on," says Macomber.
When looking at the combined price and shipping costs, is your pricing attractive? Do you add sufficient value, through customer service and knowledgeable staff to justify a higher price?
One simple and inexpensive way to establish a Web presence is to create a blog (i.e. weblog). There are many free services, such as blogger or blogspot with simple templates. Do a search on blogs and read a few to get a flavor for the frequency of posts and the quality of information.
"Blogs should not be a solicitation or advertising, but can demonstrate your expertise and can subtly communicate information on your business. Providing information consumers value and building a reputation as an expert in your area can build readership," explains Macomber.
Macomber also says to not underestimate the simple strategy of surveying customers informally as they visit your business, or more formally with direct mail or email.
"Are they spending less with you than they historically have? What would it take to earn more of their business? The top ten list is a good start for the questions to ask in order to understand what your customers value most," Macomber notes.
Source: http://www.missouribusiness.net/docs/where_customers_gone.asp
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