Retail Vs. the smaller providers
If you thought that retailers in the IT market were going to pose a challenge to some of us partners, then read the following article about Starbucks.
If you don’t get the chance to read it, then just read the following whilst imagining yourself as the local one-off coffee shop:
Last month Starbucks announced its plans to open a new store every fortnight for the next decade in London.
So what are the other coffee shops going to do to keep in business? What is it that has kept them going so far? Do they dare to be different? Is the quality of service second-to-none? Is it convenient? Do they know your name and what you drink when you walk in?
What makes them different from the slick and bigger brands?
You’ll see from the article that customers are trying to find ways to get a cheaper beverage but none the less they keep on coming back. Customer/ client mentality for low-cost convenience is everywhere!
There are many parallels that can be drawn from this (note the ‘we hate Starbucks‘ campaign - similar to the latest Mac adverts*?) and the key (again!) is to work out what you have that differentiates you from the big guys.
I remember when I went out to Seattle (home of Starbucks) a few years back and Harry B pointed out a small coffee shop that did the best lattes in town. So I went there and he was right! Far better than Starbucks! The cafe was packed out and people were enjoying the experience - however, replicating this particular store would probably take away the reasons why they do so well now.
Having the confidence to stand your ground within your business is important so that your customers can trust and rely upon you. Starbucks may be predictable and convenient but there’s nothing better than finding somewhere where you know what you receive is special.
What we look for is long term relationships with our clients and not the mass-market approach that can potentially make clients indifferent and less loyal. Ultimately it’s about quality and not quantity.
*but we know better right?