The retail industry has changed, mainly due to the huge growth in online purchasing and online information retrieval. Customers are now able to obtain information about the products and services they need a lot quicker than the consuming public could do before the development of the Internet. This increased use of the Internet has changed the way customers purchase products.
There are many cases where 'bricks and mortar' retail stores have failed to keep up and adapt to the new powers the customer now has. As a result some of these businesses, especially the ones that don't even have an Internet presence, are losing customers fast.
Increase In Consumer Online Confidence
People are becoming more and more confident in their use of the Internet, it is often more convenient for them to make their purchase online rather than having to go physically to a shop (assuming a shop selling the goods exists anywhere near them!). Each passing year we hear how online sales have rocketed. Any business that does not have, at least, a brochure website will be losing out on the potential of this huge online traffic.
Increase In Independent Product Reviews
Prior to the rise of Internet usage, businesses had strong control over how and what product information was spread. What a customer heard about any product was mostly what the business wanted them to hear.
Now, the Internet has given people a forum to review the products they've bought and the customer treatment they have received. They can talk openly about any concerns they may have and post their grievances up for the world to see. The amount of information available means the customer can more easily find alternative products and is thus more likely to make the right product choice.
Public Relations Preparedness
Sale pitches in the retail store have also changed in terms of preparation. Retailers need to know what reviews are being given and what people are saying about the products they are trying to sell. Simply memorizing prices and benefits from company literature is no longer enough, their sales staff must be ready to answer any question and deflect any criticism gleaned from review websites.
Business Internet Training Requirements
Retail businesses should be prepared to train their in-house staff, or hire external suppliers, to look after the business website. They will need to handle any complaints or questions posted on their website. They should also be prepared to do the same on review websites and forums in order to uphold the company image.
No need for 'bricks and mortar'
For some businesses the presence of the Internet means they no longer need a physical store on Main Street. If all purchases are made online, all customer communication carried out via email, they no longer need so many staff and they no longer pay store rental then their overall costs will be much reduced and some of this reduction in cost can be passed onto their customers making them far more competitive.
Conclusion
The Internet's ease of access and volume of information has seen some transfer of power from retailers into the hands of the consumer when it comes to buying and selling a product. Having this extra power means consumers are in a much stronger position to negotiate favourable prices for the products they buy. Retailers, rather than viewing the Internet as an enemy, should use its strengths to improve the quality of service they offer their customers thereby winning goodwill and leading to a more successful business.
There are many cases where 'bricks and mortar' retail stores have failed to keep up and adapt to the new powers the customer now has. As a result some of these businesses, especially the ones that don't even have an Internet presence, are losing customers fast.
Increase In Consumer Online Confidence
People are becoming more and more confident in their use of the Internet, it is often more convenient for them to make their purchase online rather than having to go physically to a shop (assuming a shop selling the goods exists anywhere near them!). Each passing year we hear how online sales have rocketed. Any business that does not have, at least, a brochure website will be losing out on the potential of this huge online traffic.
Increase In Independent Product Reviews
Prior to the rise of Internet usage, businesses had strong control over how and what product information was spread. What a customer heard about any product was mostly what the business wanted them to hear.
Now, the Internet has given people a forum to review the products they've bought and the customer treatment they have received. They can talk openly about any concerns they may have and post their grievances up for the world to see. The amount of information available means the customer can more easily find alternative products and is thus more likely to make the right product choice.
Public Relations Preparedness
Sale pitches in the retail store have also changed in terms of preparation. Retailers need to know what reviews are being given and what people are saying about the products they are trying to sell. Simply memorizing prices and benefits from company literature is no longer enough, their sales staff must be ready to answer any question and deflect any criticism gleaned from review websites.
Business Internet Training Requirements
Retail businesses should be prepared to train their in-house staff, or hire external suppliers, to look after the business website. They will need to handle any complaints or questions posted on their website. They should also be prepared to do the same on review websites and forums in order to uphold the company image.
No need for 'bricks and mortar'
For some businesses the presence of the Internet means they no longer need a physical store on Main Street. If all purchases are made online, all customer communication carried out via email, they no longer need so many staff and they no longer pay store rental then their overall costs will be much reduced and some of this reduction in cost can be passed onto their customers making them far more competitive.
Conclusion
The Internet's ease of access and volume of information has seen some transfer of power from retailers into the hands of the consumer when it comes to buying and selling a product. Having this extra power means consumers are in a much stronger position to negotiate favourable prices for the products they buy. Retailers, rather than viewing the Internet as an enemy, should use its strengths to improve the quality of service they offer their customers thereby winning goodwill and leading to a more successful business.
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