Retail Observer

RETAILOBSERVER.COM JUNE 2018 52 D epending on who you talk to, the retail industry is either on its death bed or in the midst of a great renaissance. If you take a step back and look at the long arc of retail, this scenario has played out over and over again. First it was the Sears catalog that was going to undue the bustling frontier retailers. Years later, national retailers were going to bring doom and gloom to single store merchants. Then it was the Internet. Now it's Alexa. But from where I sit, and within our buying group, those retailers that provide amazing in-store experiences and focus on solving problems are thriving. Those retailers who have embraced change and dared to evolve have come to the realization that providing solutions instead of products is the real forte of the modern retailer. They have come to realize that you can't out-Amazon Amazon. And that's why solutions-based retail selling is a clear differentiation between in-store and on-line approaches to retail. So what do I mean by solutions-based selling? Solution- based selling refers to the practice of uncovering a customer's pain points and then providing products and services that address the underlying problem. And it all begins with understanding how shoppers shop. Those who know what product they want – and want it NOW – those are Amazon shoppers. In my world, shoppers who are looking into a new TV for the family and only know some of the buzz words (like 4K) are in need of a solution. Here is how one of our buying group members describes solution-based selling: "The only way to appreciate the majesty of a 4K HDR TV is to see it in person," says Dave Gilbert, senior vice president of Hi-Fi Sales in Cherry Hill, NJ. "And when shoppers come in, we educate them and let them know they will need a 4K HDR DVD player if they collect DVDs. If they opt for streaming, no problem. But we let the shopper know they will probably have to upgrade their router, and quite possibly add an additional wireless access point if the kids have mobile devices or tablets, and everyone likes to stream stuff on the computers. Now you get to see how a comprehensive solution-based selling proposition takes shape, versus how low Amazon is advertising any given TV price." And that's not all. Luxury brands continue to thrive at the top end of the market. With excellent in-store service, retail ambiance and conveniences that make shoppers happy, luxury retailers have always been natural solutions-based sellers. A solution-based sales approach is based on the needs of the shopper; quite possibly problems they didn't even know about might impact their choices and/or what their ultimate budget will be. In a solution-based sales environment, the retailer finds a specific problem that the customer has and tries to meet that need by offering a comprehensive solution. The advice I give to our members is to not fear change. Instead, concentrate on where you can be relevant vis-à-vis solving problems and providing solutions. Diversify into new products and services to meet the changing needs of your customers. Keep your staff up-to-date on product information so they can educate and inform your customer base. Focus on solutions, not products. Dave Workman Consumer Electronic Trends Dave Workman is CEO and President of the ProSource Buying Group. RO SOLUTIONS-BASED RETAIL SELLING

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