They aren’t always quick to see it, but local merchants have some built-in advantages over national chains and big-box retailers. There’s no denying that local merchants find it hard to compete on price. But consumers don’t care only about price: they care about service, too, and that’s a real opportunity for local merchants.

A recent survey found that women increasingly are shopping for clothing online. How does that news help local merchants? A whopping 84 percent of those who reported taking their business away from bricks and mortar stores did so because of poor customer service. And customer service is where local merchants have an advantage over larger competitors. Owners and managers of local businesses usually are closer to the customer, and are often the first to hear about issues or concerns. They have the ability to react to customer needs and even break (or change) the rules if circumstance dictate.

Chanel Boutique on Wicklow Street (via chacrebleu)

One thing local merchants can do to exploit their natural advantages is to adopt a “boutique” mentality. One big difference between boutiques and other stores is their focus on providing a unique, personalized experience, not just selling a product. Customers often respond favorably to that experience, not just by paying extra for it once, but by becoming loyal customers and by sharing their experiences with their social circle. The combination of premium pricing, repeat business and word of mouth is exactly what local businesses want to achieve.
The boutique mentality isn’t limited to retail. There are boutique hotels, boutique wineries, even boutique auto mechanics – a really good one services my race car. Most boutiques are small, but they are defined by service, not size. A small retailer that doesn’t provide a unique experience to every customer isn’t a boutique; it’s just small.

Part of the boutique experience is the sense that the relationship with the customer doesn’t end with the sale. Whether it’s as simple as a follow-up phone call or as elaborate as a series of surprise gifts, boutiques understand that continuing to engage after the sale helps create customers who are not just loyal, but vocal.

The best boutiques thrive on data. Knowing and catering to customer preferences is the hallmark of the successful boutique, especially boutique hotels. But hotels aren’t the only boutiques that have access to data about their customers. With tools like Zavee, almost any business can learn who their best customers are, how much they spend and how frequently.

It may take some effort to fit the boutique mentality into a business that doesn’t already have it. It certainly takes commitment to make it work, because it requires a focus on the customer that isn’t second nature for every merchant. And it sometimes requires some investment, especially for businesses that are new to managing customer data. But it may be just what a merchant needs to compete in difficult times.

The Zavee takeaway:

• A business that wants to charge more, generate repeat business and earn referrals from vocally loyal customers should think and act like a boutique.
• Boutiques are customer-focused before, during and after the sale, and rely on data to understand customer preferences.
• The boutique mentality can be applied to businesses in virtually every category; it just takes commitment and creativity.