I'm often asked a very specific question, usually in a troubled voice, when speaking to groups of small business people. Can small business compete with Wal-Mart? Not to single out one retailer, we are really talking about any large organization. With the recent extensive expansion of businesses (and their sophisticated/aggressive approach to marketing and customer service) it's no wonder this question is on the minds of many small businesses today.
I would like to suggest that what small businesses might be suffering from is an inferiority complex. We automatically assume defeat before we have considered the advantages we have going for us.
1. Outmaneuver Them
A small business can view itself as a speedboat able to maneuver quickly, slowing down or speeding up as needed, and completely turn around in a much smaller space than a larger business or battleship for example.
2. Offer Genuine Personal Attention
Small business can offer real, personal attention, greeting you by name and having a brief conversation as you enter their establishment. After all, customer service is more than screaming 'hello' indiscriminately when someone walks into a store. I find this particular activity, conducted mostly by larger chain stores, to be somewhat unsettling and quite insincere.
3. Choose Between Help And Help Yourself
I prefer to buy from a small business because they're typically more ready, willing and able to help me. It seems like sometimes you have to make a choice between help and help yourself in the larger chains. Staff at some larger organizations tends to be busy stocking shelves and while they may point out where something is, they don't always have the time or the expertise to assist you in making a purchasing decision.
4. Education
Education can be an important part of the purchasing process. When you have multiple products delivering essentially the same benefits it is not always easy to make the right choice. In order to select the best product or service for your needs you may require education. Small businesses tend to be better suited at offering assistance and in cases of special needs they are the only choice for 1 time requests or requests for unusual or rare products.
5. Tailor Your Product Offerings
A small business has the ability to tailor their product or service selection to their specific customers. The most popular products or services your specific customer group desires can be stocked in depth. This can be a disadvantage at some large businesses as they may carry a wide range of products but a very shallow depth of choice within a specific product group. Consider that your business may represent one section of one aisle at a big box store. You don't need to worry about the rest of their store and the rest of the products they offer as you are not in those businesses.
6. Training
Make sure you don't make the same mistakes that some large businesses make. Don't fall into the trap of being too busy to provide good service. Unfortunately, several large businesses seem to have staff to stock shelves but not very many people to help you and in some cases even to take your money. Somehow I can't imagine any small business allowing a customer to stand in the middle of the floor with their money in their hands and no one to give it to. This unfortunate experience happened to me in one of our well-established Canadian department stores. Forget about the concept of up selling, I couldn't even pay for the one item I came in to get.
But remember small doesn't automatically guarantee good service either. It's up to you to train your staff. Your larger competitors likely have training programs in place. You have an advantage in that you can have an informal, real time, on the spot, as needed training program for your staff. The trick is to augment any formal group training with small amounts of input at the time when the education is needed. If you notice something wrong or there's a situation where you can improve your service it can be put into effect almost immediately versus your larger competitors - the battleship, who may have to take months to develop a more formal structured training program.
7. Don't Compete On Price Alone
Some small businesses charge a little more than a larger competitor but that's OK. There are segments of your target group willing to pay a little more in order to receive additional service. It's up to you to provide the additional service. And make sure they are aware they are receiving added value. There will always be customers that look for the lowest price and they will shop around, use your time and expertise and ultimately end up going to your larger competitors to make the purchase.