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There’s an app for everything…

Thursday, September 30th, 2010

Apps

Apps

Following a consumer insight survey, Price Waterhouse Cooper are predicting a post-recession permanent change in shopping behaviour, with shoppers taking a more thoughtful approach to buying, rather than obsessing over deal seeking. Although they do admit that many of the new skills in money saving learned during the recession will still be used, such as price comparison websites, loyalty schemes and voucher collecting for example.

Heading out of recession, they predict that new spending groups will come to dominate in our stores. Generations X & Y as opposed to the Baby Boomers that spent their way out of previous recessions. Now if Generation X is a well known soft drink advertisement to you, hold on for a quick run through the demographics.
Generation X are aged from 29 to 45, while Generation Y are aged from 10 to 28. The top end of Generation X is in the middle of a high spending stage in life, and Generation Y has a willingness to spend, especially on new technologies – Which won’t be news to anyone who’s part of the new App age !

Coming out of this recession, customers are expecting to buy differently, across many channels, so they may buy in store, on-line, via a catalogue or through a third party, this “seamless shopping” is creating many challenges for retailers, How can we give our customer the same experience, availability and service from our brand however the consumer chooses to shop ?

In the very early days of ecommerce (that’s only around 10 years ago), multichannel retailing was almost unheard of. But it has since grown and developed within every retail sector - even clothing and fashion, which cynics said would never work online. Integrating systems using technology to maximise benefits is the new challenge.

Technology is a great leveller, small independent businesses can compete on a more level playing field with large stores, if they understand how to use technology to their advantage, and of course if they have the budget to fund it.

A good example of using technology to promote retail was recently launched in Wigan, where they are piloting a town centre trading push.

HometownPlus is designed to “get more people to visit their hometown more often and spend more money locally” by enabling consumers, using a smartcard or phone app, to access personalised offers and savings. This scheme is designed to complement, not compete with, retailer loyalty programmes.

Retailers and other participants in the WiganPlus debut project, will benefit from the opportunity to drive footfall, target promotions and access real-time shopping data. Independent stores are likely to be the first on board, but they hope that multiples will see the benefits and join too.

This scheme will receive £230,000 Government match-funding and comes in the wake of increased concern about the appeal of town centres. (Empty stores in town centres stand at 12% according to The Local Data Company).

I think that most of our towns could benefit from such a visionary scheme which treats the town centre as a live venue, promotes it and keeps it in the forefronts of shoppers minds.

Not a budget for business ….

Sunday, April 26th, 2009

Small comfort for small businesses ...

Small comfort for small businesses ...


Having had a little time to review the Chancellors budget (not my favourite weekend activity) it looks like overall, it was a bit of a missed opportunity. While the borrowing figures of £175 billion (and that’s just this year) with £173 billion next year, are enough to make me feel a bit giddy. There’s the news that economy is going to shrink by 3.5% to digest too…

With such big borrowing sums being bandied about, its small wonder that there’s small support for our small businesses.

Missing in action was a reduction of employers’ National Insurance contribution rate and tighter government control over bank charges(which would have been nice!).

There was no extension of VAT reduction to 15 per cent for a further 12 months and there were only a few real high points.

1. Main capital allowance has doubled to 40%, which is helpful for those of us investing, as we all know that cashflow is the numbero uno in the priorities list, particularly in a recession.

2. An extension of the three year carry back means that loss-making businesses can reclaim tax on profits made in the last three years, this should help lots of small businesses.

3. Business rates: The spread of uplift is a positive move for small businesses.

4. VAT threshold increased: While the extension of the reduction didn’t happen, the raising of the threshold to £68,000 at least means that many small businesses will fall outside the VAT bracket.

5. The introduction of a top-up supply chain insurance to help companies protect themselves against non-payment.

But there were also some nasty surprises for those of us wondering why we do in fact bother?

1. The 2p rise on fuel duty – this always has an impact on costs somewhere down the line.

2. No change to corporation tax rates with the rise from 20-21% remaining in place;

So if we cast our minds back as to why we did set up in business… if it was for the long hours and ever present responsibility, the learning how to steer a sometimes unmanageable ship in difficult waters, or the satisfaction of knowing that our bank is receiving good returns on their oh so reasonable charges….. or maybe it was because we just love giving the opportunity to the government through our employment of our staff, to increase the tax aspect of the PAYE and NI and add some more paperwork?

If, however it was to be successful and be recompensed for our hard work, then you have to wonder if the opportunity to earn, which is a stimulant for most entrepreneurs is going to seem as bright if the government is going to reserve the right to take nearly 60% in tax and NI when we do….

Ok so there aren’t many directors of small businesses who earn over £150,000 but it’s a nice dream….!

So thanks Mr Darling, but not that much !

Ask a better question…!

Friday, March 13th, 2009

question_mark-1We spend our whole lives thinking, or at least we think we do. After all, what is thinking? What’s the actual process of thinking? What do we do when we’re thinking?

Well, what we actually do when we are thinking (or think we are, stay with me here) is we ask questions ! You can really see how the world breaks down into two camps from the questions people ask themselves….

For instance, If you want to lose weight and you can’t seem to, you might ask the question? Why can’t I lose weight? Then your brain will tell you “because you’re a fat pig that’s too lazy to exercise, that’s why!” So you go round again in the same old familiar circle, trying to lose weight, not really doing it, and feeling bad about it.

I’ve used the weight example because it’s one that we’re all pretty familiar with, but it could be anything: forming a new relationship, opening another shop, getting great staff…

So, given that our brains are programmed to give us the answers to the questions we ask them, (and quite brutally usually – lets face it, we all talk to ourselves much more viciously than we’d let anyone else talk to us!)

What can we do with this information? Well, the really interesting thing here is that if you want to move forward and out of the cycle of dispiriting answers, then you’ve got to start asking better questions!

So, to go back to our old fat analogy. If, instead of asking “Why can’t I lose weight?”, we had asked “What can I do to lose weight?”, we’d have got an answer something along the lines of: Exercise; eat sensibly; have a goal to aim for; a reason to be setting out to lose the weight; a losing weight partner; a trip of a lifetime as a reward etc. So, our brains know the answer to the questions, if we just ask the right questions.

So, now then - Recession ! Now that’s a word that’s pretty much guaranteed to strike fear into the hearts of full grown men and women.

Instead of us fearing the recession (and that does seem to be the national psyche at the moment) with everyone running around asking how can this be happening to me? What about my job? What will become of me?

How about we ask the question “What’s good about this recession?”

I think the answer will be along the lines of – Opportunity, a new way of looking at your business, using our brains to work out how to respond, instead of just doing the same old things we’ve always done. Shedding stock, moving resources that we should have moved a long time ago, coming out of lines that never really worked for us, but we were attached to, looking at new markets as an opportunity rather than another thing we have to do and a host of other things waiting to be explored.

Retail is changing, shops are changing, jobs are changing, technology is changing - heck, life is changing! So why would any of us think it should somehow stay the same…? If you want to move on, then you’ve got to take something on…!

In the words of Bruce Springsteen, “these jobs are going boys and they ain’t coming back!”

Another great speaker that I’ve admired for years, Jim Rohn famously said “Don’t wish it was easier, wish you were better!” - which is fabulous advice at a time like this…. So the questions we could be usefully asking ourselves are things like : What have I learnt recently? What new skills or training have I invested in? How can I develop my marketing? How can I widen my horizons and get really excited about the future?

So if you want a better answer – Ask a better question?

USP’s - They’re the name of the game…!

Friday, March 6th, 2009

Welcome to the party !

Welcome to the party !

What’s your USP? Have you worked this out? Are you clearly articulating it at every point of contact with your customers? On business cards, websites, blogs, advertisements, on your windows, your signage, delivery vans, and your packaging and bags?

In tough economic trading, and most of us are agreed this is no picnic, some businesses will scrap and scrabble for any business they can get their hands on just to stay in the game.

You know when a business is in danger, when the business suddenly starts diversifying into products that have no relevance to their initial offering. You’ll see from my canine friend at the top of this post, that this can have disasterous connotations as customers struggle to decipher the mixed messages your business is sending out.

The danger of grabbing anything you can, is that you can lose sight of the distinctive benefits that your product or service delivers to your customers and you’ll end up being treated like a commodity and coming under severe price pressure. Any business that operates as a commodity is going to come under price pressure, that’s a given.

Your aim as the business owner, or champion must be to create a vision and personality for your business, something to communicate to your customers so that they understand the value of being part of your network and doing business with you. They literally are choosing you from all the other alternatives out there, so you must give them compelling reasons to make that choice.

Winning retailers clearly articulate the distinctive benefits they bring to their customers. Those who grasp the upside of the downturn and come out as winners are those who

* Ensure their offer is distinctive and that their customers value this distinctiveness, and don’t mind paying for it.

* Are clear and confident in articulating their distinctiveness of their business at every opportunity

* Say “no” to opportunities where their distinctiveness is not valued, or the products take their offering away from their USP

These challenging times are a real test of leadership and nerves! Whatever you do, don’t just wait and hope that things will get better. Now is the best time for you to show the clarity, focus, resilience, and persistence of a leader.

Take some time, get curious about what’s working and what’s just not. Get clear on what is your business’s USP and once you’re clear on this, get creative and shout about what makes your business distinctive.

By doing this, you create a better future for your business, for your employees, and of course, for you!

You can download our free e-book on USP’s from this website, just log in.
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