Subscribe
Share
Share
Embed
This podcast is for multi-unit managers and independent owners striving to scale their success and widen the scope of their success and impact. Together we will strive to get you to the top of the mountain.
Understanding Customer Behavior: A Convenience Store Owner's Survival Guide
Howdy folks. Mike Hernandez here. Welcome to this edition of Drive from C-Store Center. Let's be real – running a successful store is a lot tougher than grabbing a Slurpee and chilling on the counter. Part of your success depends on understanding those folks that walk through your door: from sweet old ladies wanting their daily paper to hangry teens grabbing a midnight snack.
Understanding customer behavior is like having a superpower – it helps you make the right decisions, deliver excellent service, and build relationships that keep those customers returning for more. So, buckle up, my friend, and let's dive into the wild and wonderful world of customer psychology.
Customer Behavior 101
Customer behavior is how people act when they shop — what they buy, why they buy it, how they decide, and even how they feel while browsing your aisles. Yeah, it gets a little complex. But think about yourself for a moment. Why do you sometimes grab those impulse-buy candy bars by the register? Or why do you prefer one brand of chips over the other?
Several things shape customer behavior:
• Personal Factors: This covers age, personality, and interests – what makes your customers unique. An energetic teen and a busy mom won't shop the same way.
Let's dive deeper into those personal factors that make every customer tick differently.
The Uniqueness of Every Shopper
Age: Picture this: Your store rocks those brightly-colored energy drinks and those extra-flamin' hot chips... perfect for a teenager looking for an adrenaline rush. But a middle-aged customer? They might be more into your selection of teas or grab-and-go healthy snacks.
Personality: Some customers are naturally chatty – looking for friendly banter with the cashier. Others are all business, in and out, with no time to waste. Recognizing these personality types lets you tailor your approach and make each interaction more comfortable.
Interests: This one might go unnoticed, but it's influential. Is your store near a school? Sports fans might flock in before a big game, looking for snacks and drinks.
Located by a hiking trail? To meet those needs, you should stock up on energy bars and bottled water.
Anecdote Time!
Remember Mrs. Johnson, the sweet lady who always comes in for the daily newspaper and a bag of her favorite hard candies? She represents the value of understanding personal factors perfectly. I learned that her grandson visits on Sundays, bringing along his two young, boisterous kids. Guess what? Now, I always ensure the candy aisle is extra well-stocked before the weekend, ready for their whirlwind visit! Those few extra dollars in sales have added up over time, and most importantly, they keep Mrs. Johnson happy—a loyal customer is worth their weight in gold.
• Psychological Factors: Mood, emotions, attitudes – these all play a significant role. A stressed-out customer might be crankier and more indecisive.
Now that we've explored personal factors let's shift gears and discuss something less tangible: Psychological Factors.
Psychology at Play: How Emotions Drive Decisions
Mood, emotions, and even general attitudes can significantly impact customer behavior in your store. Here's why:
Mood Swings: A customer who just had a stressful day at work might be short-tempered and less patient while waiting in line.
Emotional Needs: A customer rushing to a sick child might prioritize grabbing a quick meal replacement over browsing for the perfect snack.
Attitudes About Value: A customer who feels your prices are fair is likelier to make impulse purchases, whereas someone who perceives them as high might stick strictly to their shopping list.
The Power of Empathy
Let's face it: everyone has bad days. Recognizing these psychological factors allows you to be more empathetic towards your customers.
Remember that time the regular customer stormed in, looking flustered?
He usually buys a coffee and a newspaper on his way to work, but this time, he practically threw his money on the counter and grabbed both items without a word. Recognizing his usual demeanor, I simply greeted him with a friendly "Good morning, sir" and wished him a better day. The next day, he stopped by again, apologized for his behavior, and explained that he was late due to a car issue. See? A little understanding can go a long way in building rapport and fostering customer loyalty.
• Social Factors: Family, friends, trends, what people see on social media – external pressures can sway how, why, and where customers spend their money.
Now that we've explored the inner workings of a customer's mind let's look at the external factors that influence their behavior: Social Factors.
Social Butterflies and Shopping Trends: How the World Around Us Shapes Decisions
Our families, friends, and social media feeds play a surprising role in how we shop. Here's how:
Family Influence: Parents might stock up on specific snacks their kids love after seeing them advertised online.
Peer Pressure: Teenagers might grab a trendy new energy drink because their friends are discussing it.
Social Media Buzz: If a social media influencer raves about a particular candy bar, you might see an increase in sales for that item.
Keeping Your Finger on the Pulse
Staying aware of social factors lets you tailor your offerings to current trends. It's not about blindly following every fad but understanding what your customer base is interested in.
The Power of Social Media
Remember the time a new local bakery went viral for its amazing cupcakes? Suddenly, everyone walking through the door was asking for them.
Because I knew the social media buzz, I contacted the bakery and started stocking their cupcakes. They sold out within a day! It was a win-win – happy customers and extra sales for my store.
By understanding social factors, you can position yourself to capitalize on trends and keep your customers engaged with what's hot.
The Psychology of Complaints -Yikes!
No one likes dealing with complaints, but they're inevitable. But guess what? Complaints can be a goldmine of insights! See them not as attacks but as frustrated customers trying to communicate a problem, sometimes poorly.
Think about these common reasons customers complain:
• Bad Service: Slow checkout, rude staff, you name it. Customers want to feel respected and valued.
Now that we've explored the various factors influencing customer behavior let's delve deeper into what makes them tick – precisely, the things that can lead to complaints. First up, the big one: Bad Service.
Making Customers Feel Valued: Why Service Matters
Let's face it: Nobody enjoys feeling inconvenienced. Customers expect a certain level of service – to be greeted politely, have their questions answered efficiently, and have the checkout smooth. Here's how lousy service hurts your business:
Slow Checkout: Long lines and inefficient cashiering lead to frustration and lost sales. Customers on their lunch break might abandon their purchases and head elsewhere if the wait is too long.
Rude Staff: A grumpy cashier or someone who doesn't acknowledge customers can leave a lasting negative impression. Remember, a happy customer is a repeat customer!
Unhelpful Staff: Customers come to your store for a reason, whether to find a specific product or get a quick answer. Those customers might take their business elsewhere if your staff isn't knowledgeable or helpful.
The Ripple Effect of Bad Service
A bad service experience can ripple effect, damaging your reputation and hurting your bottom line.
A Lesson Learned
There was a time when I lost a regular customer because of a simple cashier mistake. She came in for her usual pack of cigarettes, but the cashier accidentally charged her twice.
The customer was understandably upset, and despite my apologies and a full refund, she never returned.
This taught me a valuable lesson: Bad service can have lasting consequences. By prioritizing good customer service, you create a positive and welcoming environment that keeps people returning for more.
• Faulty Products: Expired food, broken toys - quality matters!
Let's move on to another common complaint trigger: Faulty Products.
Quality Control: Why Keeping Your Shelves Stocked with Top-Notch Products Matters
Imagine this: A customer grabs a sandwich, ready for a quick lunch, only to discover it's expired. Needless to say, they won't be happy. Here's why faulty products are bad for business:
Safety Concerns: Expired food or malfunctioning electronics can pose health or safety risks. This is a major concern and can damage your reputation.
Customer Dissatisfaction: No one wants to pay for something that doesn't work or is unusable. Faulty products lead to unhappy customers, bad reviews, and lost sales.
Wasted Inventory: Expired products must be thrown away, costing you money.
Maintaining Customer Trust
Keeping your shelves stocked with high-quality products is essential for building customer trust. Customers must know they can rely on you to provide safe and reliable items.
A Commitment to Quality
I once had a customer return a faulty phone charger. It sparked when he plugged it in, which was a safety hazard. Not only did I give him a full refund, but I also contacted the supplier immediately to report the issue. This showed the customer that I take product quality seriously and prioritize their safety.
He not only continued to shop at my store, but he also told his friends about the positive experience.
• Unmet Expectations: If your advertising promises the best cup of joe in town, you better deliver!
The final piece of the complaint puzzle is Unmet Expectations.
Delivering on Promises: Why Meeting Customer Expectations is Key
We've all seen those flashy advertisements promising the best coffee in town or the tastiest hot dogs around. Here's the thing: if your advertising sets a high bar, your products and services better live up to the hype! Here's how unmet expectations hurt your business:
Disappointment: If customers expect a gourmet coffee experience and get lukewarm instant coffee, they'll be disappointed. This can lead to negative reviews and lost sales.
Loss of Trust: If your marketing promises one thing and your store delivers another, customers will lose trust in your brand.
Missed Opportunities: Unmet expectations can prevent you from attracting new customers who might be looking for exactly what you advertise.
Setting Realistic Standards
It's essential to be honest and upfront in your marketing. Highlight your strengths, but don't overpromise and underdeliver.
The Power of Authenticity
A while back, I decided to promote my store's fresh-brewed coffee. Instead of claiming it was the "best in town," I focused on the fact that it was locally roasted and brewed throughout the day for maximum freshness. This set a realistic standard, and customers responded positively. They appreciated the quality and the honesty, and my coffee sales increased!
Remember, understanding customer complaints isn't just about damage control; it's about identifying areas for improvement. Addressing these common triggers can create a positive customer experience that keeps people returning for more.
Role-Playing Time: Let's Put on Our Customer Hats!
Understanding customer behavior is not just about theory. It's about empathy – putting yourself in your customers' shoes. Let's practice with some role-playing scenarios, shall we?
Scenario 1: An Impatient Customer The line's backing up, and a middle-aged man is tapping his foot, loudly sighing. How do you handle it?
So, we've identified that impatient customers are a common hurdle. Here's how to navigate that scenario of a middle-aged man tapping his foot and sighing in a backed-up line:
Scenario 1: The Impatient Customer
We've all been there – in a hurry, stuck in a long line. Here's how to handle this situation calmly and professionally:
Acknowledge the Wait: Make eye contact with the customer and say, "I apologize for the wait. We'll be with you as soon as possible." A quick acknowledgment shows you're aware of the situation and haven't forgotten about them.
Offer options: Let the customer know if another checkout lane is open or suggest they browse while waiting. This empowers them and gives them a sense of control.
Maintain a Positive Demeanor: Stay calm and friendly, even if the customer is grumpy. Their frustration might not be directed at you. A positive attitude can help diffuse tension and create a more pleasant experience for everyone.
Work with Efficiency: The best way to shorten a wait time is to be efficient at checkout. Have everything scanned and bagged quickly without sacrificing accuracy.
Remember: A little empathy goes a long way. By acknowledging the wait and working to move the line along, you can turn a potentially negative experience into a positive one.
Scenario 2: The Indecisive Shopper: A teenage girl hovers in the candy aisle, looking overwhelmed by choices. How do you help out?
Now that we've tackled the impatient customer let's shift gears and focus on a different type of shopper:
Scenario 2: The Indecisive Shopper.
This scenario features a teenage girl overwhelmed by the candy aisle's glorious, or slightly terrifying, array of choices. Here's how to navigate this situation and turn it into a positive sales interaction:
The Indecisive Shopper: A Guide to Choice Overload
We've all been there – staring at a wall of candy, paralyzed by indecision. Here's how to help a teenager feeling overwhelmed by choices:
Offer a Friendly Greeting: A simple "Hello, how can I help you today?" can break the ice and open the door to conversation.
Engage, Don't Pressure: Instead of a pushy sales pitch, ask open-ended questions like, "Are you looking for something sour or sweet?" or "Do you have a favorite candy flavor?"
Highlight Popular Choices: Mention some of your best-selling candies or new arrivals. This can give the customer a starting point and help them narrow their options.
Offer Samples, if applicable: If you have sample packs or individual pieces available, suggesting a try can be a great way to help them decide.
Remember: The goal is to be helpful and informative, not pushy.
By offering friendly guidance without pressuring them into a decision, you can create a positive experience that might lead to a sale and encourage them to return.
Scenario 3: The Curious Newbie An older gentleman asks where to find a specific item. He seems lost and confused by your store's layout. What do you do?
Sometimes, you encounter customers who are new to your store and might feel a little disoriented. Here's how to handle Scenario 3: The Curious Newbie – an older gentleman asking for help finding a specific item.
The Curious Newbie: Guiding Customers Through Your Maze of Merchandise
We've all walked into a new store and felt a bit lost. Here's how to assist a customer who needs help navigating your layout:
Stop What You're Doing and Give Them Your Full Attention: Make eye contact and offer a friendly greeting. Let them know you're happy to help.
Listen Attentively: Let the customer explain what they're looking for. Don't interrupt – their description might give clues about the item's location.
Offer to Walk Them There: The best way to help is to guide them to the product physically. This shows them where it's located and avoids any further confusion.
Point Out Related Items, Optional: If you know of similar or complementary products, mention them briefly. For example, if they're looking for peanut butter, you could suggest some jelly options nearby.
Thank Them for Their Business: A simple "Thank you for shopping here today!" goes a long way in creating a positive first impression.
Remember: A little extra help can make a big difference. By taking the time to guide a new customer and answer their questions, you're not just providing good service; you're potentially creating a loyal customer who will return again and again.
Wrapping It Up
Running a successful convenience store means more than fully stocked shelves and clean floors. It's about truly understanding the people who keep your business alive.
Oh, and before I go, here are some questions for you to consider:
• What kind of customers mainly frequent your store? Are they primarily locals, passing-by travelers, or a mix of everything?
• What are customers' most common positive AND negative things about your store? What can you learn from this?
• Imagine how it feels to be a first-time customer in your store. Is it easy to find things? Is the atmosphere welcoming?
Think of this as the beginning of an incredible adventure! The better you understand your customers, the stronger your connection will be with them, and that's the key to building a lasting business.
I look forward to your insights and questions. I am working on two exciting things I hope to have ready in the next few months. One is a digital newsletter or magazine for store-level employees called C-Store Thrive. I will share more information when the time comes. I will also start a podcast to talk to employees like you who keep the industry going. Let me know if you want to share your story with the industry. Please email your questions and comments to admin@cstorecenter.com.
Thank you for tuning in to another insightful episode of Arrive from C-Store Center. I hope you enjoyed the valuable information. If you find it useful, please share the podcast with anyone who might benefit. Again, I'm Mike Hernandez. Goodbye, and see you in the next episode!
Arrive from C-Store Center is a Sink or Swim Production.