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Education

Community Personality

May 5, 2007 | By: deaneparkes

When does a store outgrow dependence on an individual[s] personality and create its own personality with the customers and community at large? Why is this both valuable to you as a business owner in building more brand equity [how much you will get when you sell] while also relieving you of the stress of always being ‘tied’ to your business?

Recently I had dinner with 2 long time natural food retailers, Janet from Rainbow Natural Foods in Ottawa and Monique from Sol in Aylmer Quebec. Both have wonderful stores and have served their community for 25 plus year.  During our discussion Janet mentioned something to the effect that the store had out grown her. I found this very interesting as it enlightened me on how a store/business changes personality from a person[s] to have its own personality. So often a small business relies on one person[s] for success and though this may be a nice ego boost it does limit the business and leave it open for major challenges should this person leave or just plain wear out. [Burnout is a fairly common in retail].

Most retailers’ hope/dream to one day retire and sell their business. A key-determining factor to the value of the business is the goodwill. Goodwill is not easy to put a dollar figure to however if the goodwill is mainly the efforts of a person[s] then the day the person leaves so does the goodwill. With a store that has developed its own goodwill, not based on a person[s] the value is much higher. There also is a sense of freedom when the store takes on a personality as it frees up tying any one person to the store to succeed.

As I thought this over I wondered what/who/how do you create this store ‘brand’ personality. I feel it is important for any business owner who hopes to be free from the day to day and build valued goodwill to consider the brand image their business projects to their community.

What are some traits I have seen in stores that have become part of the community?

Intense commitment to a cause – the store often is more than just a way to make money for the owner but is an expression of an intense passion [sometime fanatical..ha!] to get the products and services out to the community. Customers pick up on this passion and the store will attract other avid supporters to the cause. Overtime these customers ‘assume’ ownership of the store as it reflects their passions. When a customer feels the store is part of their life the store is the focal point of fulfilling their needs. The products and services are the main focus and the people in the store are seen as a means to this end not the end in themselves. I doubt either Janet or Monique had any idea their stores would become focal points for natural health in their community as they were so busy doing what they loved and perhaps at times did not like to make sure the products were made available. In our industry these retailers were often the first to provide full selection one stop stores.

Continual Improvement -When I look at Sol and Rainbow and similar stores they have continually changed and improved over the years/decades. What started as a small retail space has grown into a large format full service store. I know for many to get to this point has taken years of sweat, tears, fears and cash flow issues. Often instead of having money in their pockets the money went for a larger space, more products and new coolers, etc. The customer came to expect ‘their store’ to reflect their needs and the store provided.

Passionate staff – Often these stores have had loyal staff that has been with them for years/decades. The store reflects their personal passion for helping others and they pass this passion on to the customers. Over the years many customers become ‘friends’ and known on a first name basis. Where better to shop than in a store where you have friends?

Is having this community goodwill enough to protect a retailer as we move into the future? I am not sure. I have seen stores that at one time were ‘the’ place to buy health food to be replaced by another. As we move into the era of the large Whole Foods store moving into the major cities [prepare as they will come at some point] will your long time loyal customer base that has supported you over the years be around or will they change shopping habits and take their goodwill with them?  I feel it is vital you contact Danny Wells and Associates and ask for his brilliant DVD on customer retention. No one is better at giving our industry valuable, user friendly, candid information than Danny.

I also suggest you pick up the book E – Myth revisited especially if your store relies on you or a specific staff member for success.

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