Businesses Thrive In Digital Age

Justin Goodbread CFP®, CEPA, CVGA, at WealthSource Partners, LLC, is a financial educator, wealth manager, author and speaker.

getty E-commerce has become a booming industry over the last couple of decades. In fact, recent data from FTI Consulting suggests that online retailers in the U.S. will reach $1.14 trillion in sales this year. This represents a 10% increase over last year. Although e-commerce sales growth is expected to be 10% or less in the coming years, FTI suggests that this will still double the growth rate of traditional brick-and-mortar retailers.

With numbers like that, it's no secret that online businesses represent a major competitive threat to small-to-midsized brick-and-mortar businesses. So what can traditional business owners do to ensure their companies don't just survive but thrive in the age of digital commerce? I've come up with four strategies to help leverage a competitive advantage.

Enhance The In-Store Experience If you've ever had to spend a day sitting in the lobby of the DMV, then you can probably appreciate the value of a calm and inviting atmosphere. If your business is in disrepair, unkempt or makes no effort to please the senses, chances are, you're missing out on a lot of business. In fact, one study found that the physical environment exhibited more influence on customer emotion and satisfaction than the social environment.

With this in mind, there are many ways you could improve the in-store experience for your customers. If you operate a service-based company, you might consider offering comfortable seating and a small menu of snacks and beverages for clients waiting to be served. Another simple solution is to incorporate a diffuser to infuse the air with inviting scents. This is a common practice in retail stores such as Abercrombie and Victoria's Secret.

Another way to create an exceptional in-store experience is to host product training sessions and demonstrations. Apple has embraced this, offering free in-store workshops that train customers on how to use all the latest features on their favorite Apple devices.

By creating a space where your clients want to be, they're motivated to spend more time in your store, potentially spending more money.

Leverage Technology Just because you're operating a more traditional business doesn't mean you can't take advantage of the features that make online shopping so convenient. Even better, you have a unique opportunity to expand on the offerings of some of your digital competitors.

For example, you could offer a "click and carry" feature, allowing your customers to purchase online and pick up in your store. This allows them the convenience of online shopping while saving on shipping costs.

Today, retailers have access to a wide array of technologically advanced tools at their disposal. From augmented reality platforms designed to allow customers to "try before they buy," to customer search and purchasing data that helps you identify the products and services your clients are most interested in, technology is changing the way we do business.

Get Personal Another way to differentiate yourself from your online competition is to get personal. One of the biggest drawbacks of the e-commerce movement is that it lacks the human touch. Therefore, it's important to foster genuine customer relationships.

A great way to begin this relationship is to refer to your customers by name. Research shows that our brains become ecstatic at the sound of our names. We perk up and begin to pay attention to everything that is being said. Think about it. Would you rather hear, "Thanks for your business," or "Susan, it has been a pleasure to serve you today"?

Similarly, you can make notes about past purchases in your CRM, enabling your team to ask how they're enjoying the product or service on future visits. Likewise, developing a loyalty rewards program can be a powerful way to facilitate customer loyalty. This is especially true when you remember to send a special birthday wish or offer small perks as a way of celebrating each individual customer.

Get Involved In Your Community Finally, taking an active role in your community can generate a lot of goodwill. Now, I'm not saying do good things for the sake of making people like you. While there is an element of letting others know about the good things you're doing, it shouldn't be entirely self-serving. Instead, be authentic. Participate in local causes that you believe in. In doing so, you'll contribute to the causes you're passionate about while gaining some notoriety in your community.

Likewise, you could offer products from local producers that shoppers may not have access to online. Fundera reports that 61% of consumers shop at local businesses because of their unique product selection. Therefore, offering exclusive, locally sourced goods could be a major draw for your customers.

Conclusion Even with the modern conveniences of e-commerce, small brick-and-mortar business owners can compete. By employing these strategies, you could position your business to thrive in the digital era. Remember, no two businesses are alike. Each has its own unique advantages that can be leveraged to differentiate itself from the pack. These four strategies are just a few of the many that your business could implement to drive growth and create lifelong customers.

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Businesses Thrive In Digital Age

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