August 21, 2012
Retail TouchPoints: Retail Executives Share Challenges With Solution Provider Partners
Through a special arrangement, presented here for discussion is a summary of a current article from the Retail TouchPoints website.
At the RetailNOW conference held in Vegas in July, one of the highlights was the customer panel discussion, designed to allow end-user retail and hospitality customers to let their solution providers partners know how they can help their businesses move forward.
Panel members shared their experiences with their current solution provider partners and how those relationships could improve. As a single-store retailer, Mario Berlango, owner, Mario’s Westside Market, expressed particular concerns around receiving proper attention and service from his solution provider partners.
"Mario’s comment is the biggest complaint of smaller retailers," noted Greg Buzek, President, IHL Group. "They feel they are treated as a notch on the bedpost. Once a solution provider gets the sale, they’re gone." Instead, he advised solution providers to differentiate themselves with service offering. "If you sell with the mindset of how to help the retailer succeed and provide processes for key initiatives, such as loyalty, you will endear merchants and they will feel they have a partner to guide them along their journey."
Doug Redding, technology manager, sales, Nature’s Best, the natural foods wholesaler, noted that his retailers often need assistance finding information on new technologies and facilitating change. "As a distributor working with many different retailers, what we ID as a key challenge is helping to control change," he explained. "I have had retailers call me to ask how to go about searching for a new POS system. If you (as a solution provider) can control that fear of change and provide answers to tough questions, then you will earn their trust."
Raphael Cohen, founder & president, Universal Watch Co., shared a specific instance in which his company did not receive the expected services in a new technology implementation, resulting in lost sales. When moving forward with a new e-commerce platform, Mr. Cohen found out, during the process, that the system was not offering guest checkout. "This was a big turnoff for our customers," he said. "Our sales dropped 40 percent without that feature." Later, Universal Watch learned that the feature did exist within the platform — it just wasn’t turned on.
Phil Crawford, CIO, Yard House Restaurant Group, expressed his satisfaction with some of his VARs (value added resellers), who work to interact with the company. He adds, "Having mutual respect and understanding of the business’ wants and needs … is very important to us."
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Discussion Questions
Discussion questions: What common complaints do you hear from retailers in working with solution providers? What are some further steps providers could be taking to ease the exploration and implementation of technology solutions? What recourse do smaller stores have for better service levels?
Poll
It shouldn’t require a conference to hear what your customers have to say. No wonder then, when you do hear at a conference that customers feel neglected. I think companies that treat customers this way are “walking dead” as nimble, agile cloud vendors will be all too happy to do a much better job and listen well beyond the contract signature date. In the new economy, the go forward mantra might as well be “listen to your customers or perish.” Not listening = #FAIL
Smaller retailers have traditionally been the early adapters in the retail industry. They step up and offer their stores as laboratories and allow technology partners to prove their concepts with ‘real’ numbers, when larger retailers cannot be bothered. After they provide the technology company the credibility they seek, they are often left in the dust as the technology company moves their focus on to bigger paydays with larger retailers.
While strong contractual language may discourage some of this mistreatment, it is imperative that these early adapters glean all they can from these tests, engage and understand how to optimize and activate any benefits from this technology while they have their tech partner’s attention.
Turning to the technology solution provider, I believe they would benefit by better understanding the needs of all sizes of retailers. Installing and testing technology, without a consultative approach, often leaves the retailer with something they do not understand how to fully use. It’s important to remember that technology solutions almost always have broader implications into the retailer’s business than just the functionality of the product. Exploring and expanding the use of the technology in a consultative environment would benefit most retailers and solution providers immensely.
The best-in-class solution providers create a user group and with them, develop a set of software releases. Since so many solution providers have a large customer base from more than one segment, user groups and planned releases work well for them.
No surprises here. One way to get these issues out in the open is to involve user groups, like the independent IBM User Group, that is not run by IBM, as an example. Other ways that solution providers have eased the pain for smaller implementations is to offer a prepacked solution, or all-in-one/express solution. SAP has some solutions that are much faster and easier-to-swallow than a huge ERP solution.
To maximize the service levels, the vendor or partner must understand the retailers problems and agree on the path for the right solution and the best way for their firm to “accept” the changes. This is a tough process, but the firms that get it right get more business — all via word of mouth. Key is know the problem before applying the solution.
As VP/Retail at Catalina Marketing, I frequently met with retailers to promote our Checkout Coupon program. At the end of every presentation, my practice was to ask, “What problems are you struggling with in your business currently?” It often opened the floodgates about concerns that had nothing to do with Checkout Coupon and extended one-hour meetings to two or three-hour meetings. In the Retail Division of Catalina, we made it a habit to listen more than we talked.
The concern most often voiced to me by retailers was POS-related. Faced with an increasing selection of front-end software and even frequent shopper programs, and relying on outdated POS hardware and IT departments with private agendas, they were confused. We gave them our best advice with NO agenda, based on our experiences with thousands of retailers, and then followed up with information that had nothing to do with our products. It bred loyalty and usually helped us gain permission to install our program.
The greatest complaint that I hear from retailers has more to do with customer service and support, and less to do with technology. Most solution providers have standard offerings, and attempt to force-fit retailers, particularly smaller ones, into the standard products rather than design a custom program that does not include more than the retailer needs nor omitting parts that are critical to that retailer specifically.
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It shouldn’t require a conference to hear what your customers have to say. No wonder then, when you do hear at a conference that customers feel neglected. I think companies that treat customers this way are “walking dead” as nimble, agile cloud vendors will be all too happy to do a much better job and listen well beyond the contract signature date. In the new economy, the go forward mantra might as well be “listen to your customers or perish.” Not listening = #FAIL
Smaller retailers have traditionally been the early adapters in the retail industry. They step up and offer their stores as laboratories and allow technology partners to prove their concepts with ‘real’ numbers, when larger retailers cannot be bothered. After they provide the technology company the credibility they seek, they are often left in the dust as the technology company moves their focus on to bigger paydays with larger retailers.
While strong contractual language may discourage some of this mistreatment, it is imperative that these early adapters glean all they can from these tests, engage and understand how to optimize and activate any benefits from this technology while they have their tech partner’s attention.
Turning to the technology solution provider, I believe they would benefit by better understanding the needs of all sizes of retailers. Installing and testing technology, without a consultative approach, often leaves the retailer with something they do not understand how to fully use. It’s important to remember that technology solutions almost always have broader implications into the retailer’s business than just the functionality of the product. Exploring and expanding the use of the technology in a consultative environment would benefit most retailers and solution providers immensely.
The best-in-class solution providers create a user group and with them, develop a set of software releases. Since so many solution providers have a large customer base from more than one segment, user groups and planned releases work well for them.
No surprises here. One way to get these issues out in the open is to involve user groups, like the independent IBM User Group, that is not run by IBM, as an example. Other ways that solution providers have eased the pain for smaller implementations is to offer a prepacked solution, or all-in-one/express solution. SAP has some solutions that are much faster and easier-to-swallow than a huge ERP solution.
To maximize the service levels, the vendor or partner must understand the retailers problems and agree on the path for the right solution and the best way for their firm to “accept” the changes. This is a tough process, but the firms that get it right get more business — all via word of mouth. Key is know the problem before applying the solution.
As VP/Retail at Catalina Marketing, I frequently met with retailers to promote our Checkout Coupon program. At the end of every presentation, my practice was to ask, “What problems are you struggling with in your business currently?” It often opened the floodgates about concerns that had nothing to do with Checkout Coupon and extended one-hour meetings to two or three-hour meetings. In the Retail Division of Catalina, we made it a habit to listen more than we talked.
The concern most often voiced to me by retailers was POS-related. Faced with an increasing selection of front-end software and even frequent shopper programs, and relying on outdated POS hardware and IT departments with private agendas, they were confused. We gave them our best advice with NO agenda, based on our experiences with thousands of retailers, and then followed up with information that had nothing to do with our products. It bred loyalty and usually helped us gain permission to install our program.
The greatest complaint that I hear from retailers has more to do with customer service and support, and less to do with technology. Most solution providers have standard offerings, and attempt to force-fit retailers, particularly smaller ones, into the standard products rather than design a custom program that does not include more than the retailer needs nor omitting parts that are critical to that retailer specifically.