The Retail Experience Newsletter

    by Doug Fleener

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May 7, 2008

Get In the Zone

To most retailers, zoning a store means assigning an associate to a particular area.

To retailers who want to deliver memorable and effective customer experiences it means to focus on certain customer activities in different areas of the store.

Here are the three zones for everyone on the team:

Zone #1: The No-Engage Decompression Zone. The decompression zone is the area a customer enters immediately after walking into your store.  The size of the zone depends on the store's overall size and layout. For some retailers the decompression zone might be only three feet wide while in other stores it could ten or twenty feet wide. Whatever its size, we should avoid engaging customers here. Customers need this time and space to acclimate themselves to their new surroundings.

A big mistake many retailers make is greeting and engaging customers while they are in the decompression zone. Watch how customers react when they are engaged too soon after they enter a store. They seem almost surprised to be greeted and are much faster to say they are just looking. They are also much more likely to see the staff as pushy and overbearing compared to stores that let the customers get through the decompression zone before engaging them.  I strongly encourage you to identify the decompression zone in your store.

Zone #2: The Welcome/Greet Zone. This is obviously the area right after the decompression zone and this is where customers should be welcomed.  By keeping the welcome to this area you prevent customers from being over-greeted. When customers are over-greeted the store staff appears insincere and pushy.  Customers by and large find being over-greeted to be extremely annoying; I've left stores because of it.  Once customers leave the Welcome/Greet Zone you should only greet or welcome them if you are positive that no other employee has done so.

You might also consider "banning" closed-ended questions and certain phrases in this zone including, "How may I help you?" and "Do you have any questions?"

Zone #3: The No Shadow One-to-One Zone.  After the Welcome/Greet Zone is zone three, which is most of the store.  It's in this area that experiences are delivered and sales are made. Or not.  As we saw last week, being too overbearing in this area can actually upset customers. That's why zone three is a No Shadow Zone.

The goal in this area is to engage the customer in a one-on-one conversation.  Not a sales pitch per se but a conversation to get to know your customer and develop a relationship with him/her.

If your customer clearly wants to be left alone then by all means do so.  And this doesn't mean just stopping talking but also giving him/her the appropriate physical space to enjoy your store.  No shadowing!  I'm sure that if your customer has a question or wants to buy something he'll find you.

The no-shadow rule of course does not apply to people you suspect might have less than honest intentions. If you believe a customer is interested in your products but not so interested in paying for them then of course you want to show them so much attention they get annoyed and move on to another store.

Owners/managers of stores that aren't already sectioned into zones may well want to review this three zone system.  You'll find that such an approach goes a long way to ensuring that every customer has a great experience and has the opportunity to share their money with you.

 

April 30, 2008

The Four Me Managers

In working with retail managers I've observed four different styles of management.

The first is the "Like Me" approach. This person manages by being one of the gang. They try to get everyone on the team to like them so the employees will want to achieve their goals for the manager.  They dislike any type of conflict and work hard to have team harmony.

The upside to the Like Me management style is that it makes for a fun place to work since the team usually enjoys each other's company. The downside is that Like Me managers often don't hold their employees accountable to the appropriate standards because they don't want to risk people disliking them. They are also less likely to confront unacceptable behavior or deal with internal conflict.  It's peace at any cost.

Another style is the "Fear Me" approach.  Under the disguise of high standards, these autocratic managers rule with an iron hand. While the advantage of this management style is a high and consistent level of execution, the price is high. The staff is rarely happy and has zero loyalty to the manager.  Why should they?  They usually feel underappreciated and are shown little respect.

While the Fear Me manager offers some short-term success, in the long-term they will fail not just because the staff will not continue to respond to the Fear Me manager's threat but also because they don't especially want the manager to succeed. The sad part is that the majority of Fear Me managers don't even know they manage this way. They see themselves as tough or demanding but unfortunately the only way they know how to show toughness is through fear and intimidation.

The third style is the "Skate with Me" manager. This person often has some of the same traits of the Like Me or Fear Me manager but they lack motivation. Their only goal is to do enough to get by. They live to stay below the radar and not create any waves.

Skate with Me managers are usually well-liked because they're so easy to work for. They only demand enough of their employees to meet the minimum standard. The problem is that Skate with Me managers bring the other employees down with them. I have met some very talented employees who never rose to their potential until we moved them away from a Skate with Me manager.

The last managerial style is the "Follow Me" manager. These folks lead as much as they manage. They understand that while it's nice to be it's more important to be respected. Follow Mes lead by example because they have extremely high standards for the store and for themselves.

Their staff doesn't fear the Follow Me but they also know that the manager has no problem calling out them out when they under-perform.  They also know that this is balanced with recognition and encouragement.  People grow and develop under the Follow Me manager and often go on to become Follow Me managers themselves.

Looking back, I see that I have been all of these mangers at one time or another. When I was a young manager I was a Like Me.  When I took over an under-performing store I tried to be a Fear Me manager but failed miserably. The staff needed to be held to a higher standard but they needed to be lead, not driven.

At one time I was burned out on retail and was slowly becoming a Skate with Me manager.  It was only after I left retail for a while that I fully recognized this and realized how that harmed not only me but my staff the most.

I'm also proud to say I can look back and see that I was successful because I evolved into a Follow Me manager.  I grew into being a manager that led with respect, humor, and a positive attitude.  Most of all, I'm happy to say I created other Follow Me managers, and that is the best legacy that any manager can leave.

So let me ask, which Me Manager style have you been lately?

 

April 23, 2008

What's it Going to be Today: Distractions and Reactions or Actions and Satisfaction?

I got a call the other day from a retail colleague of mine I haven't spoken to in a long time. We talked about family and mutual friends, and then the conversation turned to work.  He said that his business is off from last year and immediately launched into an economic dissertation worthy of the front page of The Wall Street Journal.

He started with "the recession that started a heck of a lot earlier than the feds want to admit." From there it was the collapse of the housing market, the rising price of gasoline, spiraling food costs, tightening credit, and consumer confidence.  I think he eventually even tied in Paris Hilton but I'm not sure because by then he had lost me.

When he was done ranting I asked, "But aren't those just distractions? A lot of stores are hitting their goals."

And off he went again.  This time he told me about all the challenges he faces as a result of the above. His payroll was cut, his marketing budget is down, his inventory has been reduced and his travel budget was cut, which he doesn't seem to really mind since it means he is home more.

To which I replied, "But those are just reactions to the distractions. What are you doing to help your stores achieve their DAILY goal?"  There was a long pause on the phone, and then he said, "Probably not as much as I should be doing."

My old colleague is an excellent motivator. He's wonderful with people, he's a great coach, and people love working for him. But he's gotten so caught up in the distractions and the reactions he can't control that he hasn't been doing the things that will enable his stores to succeed.

I reminded him that he could have a great year by just having a successful day. Today. That's all it takes. One day. If he can lead his stores to hit today's goal in spite of the distractions and reactions then he is on his way.

I told him to forget everything he just ranted about.  I jokingly suggested that he clearly needs to spend less time online or watching the news. What he needs to do is figure out what actions he and his managers can take to achieve today's goal.

The actions he needs to take today are no different than last year or even five years ago. Be a great leader. He needs to encourage and motivate his team, set high expectations, coach them to achieve those expectations, and take action if someone is falling short.  How he does those things might be different than before, but the actions are the same. Because he manages managers he also needs to make sure this is happening in every one of his stores.

It was a great call for both of us.  I was energized by the conversation and you could hear the difference in my colleague's voice.  He seemed excited to get off the phone and do what he can to make today's goal.

Of one thing I am absolutely certain.  If we set aside distractions and reactions and focus on the right actions, we'll receive the satisfaction of hitting the one goal that's most important. TODAY'S.

So regardless of your position, what actions are YOU taking to achieve today's goal?

 

April 16, 2008

50 Ways to Improve Your Customer's Experience

Three years ago I shared with readers a list of 50 ways to be more customer-focused and deliver a better experience.  I've decided to update the list and publish it again.  It's a bit long so you might want to print it out and read it later.  Even better, check off those actions you and your team take on a regular basis.

Here are 50 Ways to Improve Your Customer's Experience:

1. Open the door for your customer whenever possible.  This is especially important if her hands are full.

2. Don't just hand your customer his product, "present" it to him.

3. Keep the store temperature at a setting that is comfortable for customers.  Most retailers set the thermostat at what's comfortable for the employees.

4. Acknowledge your customer's children.

5. Offer to gift-wrap purchases if you already know it is a gift.  Don't wait for your customer to ask.

6. Always suggest accessories and other items that will enhance a customer's purchase and his/her life.

7. Offer to carry your customer's purchase, however big or small, to her car.

8. Send handwritten thank-you notes.  Come on, do you really do it?

9. Smile. 

10. Introduce yourself to your customer.

11. Ask your customer her name.  Use it.

12. Compliment your customer on his purchases.  This is especially effective if he is another staff member's customer.

13. Don't give your customer too many choices.  You're the experts, so recommend a product based on what you learn from him/her.

14. Tell her why a product isn't right for her.

15. If you can't fulfill a customer's need, suggest another company that may be able to do so.

16. Never ever say something negative about another company.

17. Act just as happy to see a customer with a return as you are one who walks into make a purchase.

18. Make it easy for customers with returns.  Almost all customers are honest and should be treated as such.  If you have to give a customer a refund, end the conversation with "I'm sorry this product didn't meet your needs but we will welcome the chance to serve you again."

19. Warmly welcome every customer who comes into your store.

20. Loan umbrellas on rainy days for customers to get to their cars.  Ask them to either drive up to the sidewalk where you are waiting to receive the umbrella back or to bring it back on the next visit.  Most customers will turn you down but you score major points for offering.

21. Don't interrupt the customer to talk.  Talk - listen - talk - listen.  You get the idea.

22. Do whatever you can - within reason - to keep an unhappy customer.  What you'll lose on the one transaction you'll make it back because he will tell his friends and family how wonderful you are.

23. Refrain from visiting with a colleague when he/she is with a customer.  It's distracting to both the customer and the colleague.

24. Never rush customers out at closing time.  Gently let them know that you'll be closing in a few minutes.  Never flash the lights or sound the air horn. (I'm joking.)

25. Offer to teach your customer how use the products.  Clothing and home goods retailers might show their customers how to accessorize the items he/she have already selected.

26. Never blame the company for a policy or decision.  You are the company.

27. When a customer says "Thank you," say "You're welcome."

28. Add "It's my pleasure" after you say "You're welcome."

29. Provide written details of frequently asked questions.

30. Don't coach or reprimand an employee or colleague in a customer's presence.

31. If you're on the phone with a customer and you absolutely must put him on hold, tell him approximately how long he will have to wait.

32. Don't interrupt an employee with a customer unless it's extremely important.

33. Create a children's craft area in your store so the kids can create art while their parents shop.

34. Give your customer your undivided attention when she is talking.  Everything else can wait.

35. Accept responsibility when the store has made a mistake.  Too err is human.  To not admit it is stupid.

36. Empathize with upset customers.  Say you're sorry.

37. Offer free drinks to your customer. 

38. Give a gift for no reason.  Even better, give a gift for being such a great customer.   

39. Have the owner or manager personally call a high-ticket customer and thank her for her purchase if the sale was made by another staff member.

40. Loan books and other resources at no charge.  This positions you as an expert and creates repeat traffic.

41. Ship a replacement to a customer with a defective product before you receive the original back.

42. Open the doors early when customers are waiting outside.

43. Provide seating for customers and offer to bring them product to look at.

44. If you're busy and a customer is waiting for help, give him an estimate of how long he'll have to wait for someone to help him.

45. Stop cleaning and doing busy work when customers are in the store.  They're less likely to ask for help if you're doing other things.

46. Partner with restaurants and other stores to present exclusive discounts and offers to your customers.  (A win-win-win.  The other company gets incremental revenue, your customer saves money, and you're the nice person doing it for both of them.)

47. No checking email or text messages on your phone when customers are in the store.  It makes you look bored and nobody wants to shop in a boring store.

48. If you have to walk away from your customer to go to the backroom or counter tell her what you are doing.

49. Always offer to contact your customer when a product she wants comes in.  Never tell her to call and check.

50. Always thank as many customers as you can for coming into your store and invite them back.

51. Always go above and beyond for every customer.

You can download the 50 Ways to Improve Your Customer's Experience article that's formatted as a handout.

April 9, 2008

A Retail Phenomenon Alert

Some of the retailers I've talked with recently have told me that to some degree they are seeing less traffic than previously.  While it seems that most weekend traffic is holding up pretty well, the weekday traffic appears to be the most affected.

In talking with retail associates during a recent mall walk I heard time and time again about the slow days and lack of traffic.  One employee commented that "corporate" keeps telling them to "sell, sell, sell" and she wanted to respond "to whom, to whom, to whom?"

The challenge is that the slower the store the less focused and attentive the staff becomes. Now before anyone becomes defensive let me say that I know this for a fact from working the floor myself. I almost always executed at a higher level on busier days than the slower ones.

Please put tongue in cheek and read on!

On slow days we all become victims of the dreaded "slow store trance" phenomenon. You know the slow store trance, don't you?  The clock slows way, way down until you're no longer sure it's moving at all.  Then the yawning starts.  From there the only way to stay standing up is by leaning on the counter or a fixture.  Sometimes you don't even realize you've fallen into the slow store trance.  One sure sign it's happening is that you spend an endless amount of time talking about what you're going to have for lunch or dinner, or what you're going to do that night.

The challenge with the slow store trance is that you're unable to quickly snap out of it. When a customer comes in you think you're operating at full capacity but you're not.  As a result you don't completely maximize the customer opportunity, which then causes you to go even deeper into the trance.  It's an ugly spiral.

I'm sure you're wondering why other retail experts don't write about this malady.  I'd like to tell you that it's because I'm the only one who is brave enough to take on this fearsome subject, but the fact is most of them probably don't have the vivid imagination I do.  But I digress.

Here are some ways to avoid the slow store trance and maintain productivity:

1. Use the buddy system. That's right; friends don't let friends fall into trances.  By using the buddy system a staff can warn each other when they see signs that a trance is approaching.  Remember, those signs include yawning, leaning, and endless talk about your next meal or what you're going to do that night.

2. Remain focused on your daily sales goal.  Sales are to the slow store trance as garlic is to a vampire. A laser focus on making goal is a sure fire way to repel the trance and make the time fly by.

3. Roleplay. Whenever you see that a fellow team member has fallen into the trance, use roleplaying to help snap them out of it. Think of it as CPR for the trance but thank your lucky stars you don't have to put your lips on your co-workers.

4. Create mini-contests throughout the day.  For most employees, their competitive nature easily trumps the conditions that allow the trance to take hold. The manager/owner can even put up some small prizes, an action that almost guarantee the trance will move on down the street and take up residence with another retailer.

So what's it going to be today, an alert and sales focused team or the dreaded slow store trance?

April 2, 2008

Obsession: Your 2008 Strategic Competitive Advantage

One way to not simply survive but thrive during the current financial (insert whatever word you'd like to use here - situation, opportunity, challenge, crisis) is to become even more obsessed about your customer's shopping experience.

Contrary to what some people are saying, customers are shopping and they are spending money.  Malls were packed with shoppers last weekend.  While consumers are not spending the way they did this time in 2007 or 2006, it's not really that far off.  They're just being more selective in what they buy and where they buy. 

What I see when I walk malls and strip centers are retailers who haven't changed many of their actions beyond marking merchandise down faster and faster.  Sure, customers want value but they also want to feel good.  As a specialty retailer, part of your value proposition is how you make your customer feel when he/she is in your store and, most importantly, when he/she makes a purchase.

Is there any better time to make customers feel good about their experience with you?

Since that retail experience is indeed part of your value proposition, you must deliver a better experience in 2008 than you did in the past.  Failure to do so will have a direct impact on both your top and bottom lines.

Ask yourself and your team these six questions about your customer's 2008 shopping experience:

1. Does your customer feel a positive and energetic vibe when he/she enters the store?

This usually comes from a combination of the staff's attitude, quality of greeting, music, and other variables.

2. Is it clear to your customer that he/she is the staff's highest priority - without being pounced on as they walk in the door?

Some retailers have cut back staffing to a point that the employee's priority is now completing tasks instead of focusing on the customer.

3. Are you creating some type of memorable moment for your customers?

What is happening inside your store that isn't happening anywhere else?  Is it that bottle of water your customer is offered, a comfortable chair, a piece of candy or a product sample?  While the best memorable moments are usually the result of your staff doing something spontaneous with a customer, a planned strategic memorable moment is a very effective tool.

4. Are your customers able to check out quickly when they're ready?

Customers never feel good if they have to wait a long time to finalize their purchase. Sometimes they don't even bother. A friend of mine was at a department store last weekend and wanted to buy over $400 worth of clothes but the only register open was much too slow for him.

5. Is your store impeccable?

Not just clean, not just well merchandied, impeccable! Beyond the staff, the store environment plays a big part in the customer's experience.  Are the product displays well maintained  Are new shipments put out quickly without causing any disruption to the customer?  Is the cashwrap clutter-free?

6. Most important of all, is every single employee in your company obsessed with your customer's experience?

That by far is the most important thing you can and should be doing right now. Every employee in your company or store should be obsessed with the customer's experience because they know that it is the highest priority and there's no one more obsessed about the customer's experience than you.

So let me ask, are you obsessed enough to be a strategic competitive advantage?

Note:
A printer friendly version of this article to share with others or to use in a store meeting is available here.

Into Action Tip: At your next store meeting have the staff brainstorm additional ways that they can add value with the store experience they deliver. Think outside of the box and use this as an opportunity to create an even stronger strategic competitive advantage.

March 26, 2008

Helping Customers Trade Up Not Down

According to Retailing Today, a survey by AlixPartners of more than 7,400 consumers, shoppers are keeping low cost in mind when making purchasing decisions. The survey found that pricing is now important to consumers at all income levels, and all were likely to shift "one level down" in terms of the type of stores they shop, with aspirational high-end retail shoppers shifting down to department stores, department store shoppers now buying at mass-market stores and so on.

I have a bit of trouble with the "all were likely to shift" comment since it makes it sound like customers are all engaged in some sort of mass exodus.  But there is no doubt that some customers may have to trade down and others are at least considering trading down.

Does this mean that every retailer needs to drop their prices or risk losing their customers?  Of course not. What it does mean that our employees must be able to articulate the value of our products to our customers so they don't consider trading down. It also means that we do need to price products with a sharp pencil. 

Consider focusing on attributes like durability and versatility.  This is usually a secondary consideration for customers but could now be a key driver in their decision process. When showing a woman a piece of jewelry a retailer might point out that the piece can be worn with both casual and formal attire.  Or if a retailer is showing a jacket or a handbag they might point out that many customers continue to enjoy their jacket or handbag for many years.

Help your customer picture the use and pleasure the product will bring them. I believe many customers trade down because some retailers are treating the products like a commodity. Treat every product and every purchase like something special - because it is.  For example, if a woman is looking at a silk dress you could find out where she's planning to wear it and talk with her about the place or event.  This is the hardest value to articulate to the customer but also the most effective.

Get the product in the customer's hands and demonstrate its value. Open up that luggage and have them unzip some special compartment.  Get the phone in their hand and have them call someone.  Have the customer open and close those premium pruning shears, just watch your hair!  I bring this up time and time again because time and time again I see people miss this chance to demonstrate a product's value and transfer ownership.

Though some customers might trade down, continue to show the customer the best product that meets their needs first.  While a retailer might be tempted to show their lowest priced product first, that's really unfair to the customer.  Always lead with the best and, based on the customer's reaction, you can move to a less expensive product if it's appropriate.

Remember that if a few of your customers trade down, so are some other retailer's customers as well. So make sure you continue to deliver the best experience all customers will receive that day.  No matter what, customers will always want to do business with a retailer that respects them, appreciates them, and makes them feel good. Add a great value on top of those things and you, my friend, just made a sale.

March 19, 2008

An Education from the Observation

One of my favorite parts of my job is spending time with owners and executives in their stores observing how the staff goes about their business.  Sometimes improving some of the smallest details can pay some of the biggest dividends.  I decided today to share with you some of my observations from a recent store visit. 

* One employee always positioned herself in approximately the middle of the store so she could greet and engage customers from where she was standing.  Another staff member stayed closer to the counter that was in the back of the store.  To greet and engage the customer she had to walk towards them.  It was interesting to see that customers were more open and friendly to the staff member who didn't have to physically move towards them.  I'm not sure I ever noticed the difference before but you could see how much more defensive the customer became when an employee walked towards them.

* The owner had coached the team to focus on making multi-unit sales. One thing we observed is that about half of the team would tell the customer about an additional product while walking towards the counter.  The other half transitioned to an additional product in the same spot or led the customer to a different place in the store.  When we looked at the historical units per transaction averages for the staff it wasn't surprising to see that most of those who tried to talk about a second product while going to the counter had the lowest average.

* I've talked about this one a lot but it was fun to see in person. The best salesperson always got the product into the customer's hand.  It was obviously second nature to her because I'm not sure I ever saw her hold a product except for the brief moment it took to pick it up and hand it to the customer. We observed that the less productive salespeople had a tendency to point at products or just stand in front of them but rarely got them into the customer's hands.

* I was really impressed with one woman's ability to engage customers who said they were just looking. She would welcome and engage a person and whenever they said they were just looking she responded by thanking them for coming in and giving them a 10-second overview of what made the store unique. What made this woman's approach stand out is that she never took it personally or became defensive when the customer said they were just looking.  As a matter of fact her enthusiasm level was where it would be if the customer had just said he would take one of everything in the store. We compared that to other employees, whose energy level dropped and approach changed if the customer said they were just looking.

* One thing the entire team did well was to reinforce the customer's purchase during the checkout. This is a skill that the owner had clearly spent time teaching her staff.  Every single customer walked out of the store not just believing but knowing that they had made a good purchase.  I really liked when they linked it back to something they had learned from the customer when asking questions.  Not surprisingly, this store's return rate is extremely low.

I think the owner was quite surprised what we could learn in just a few hours. It's not that these things are terribly hard to see but you have to look for them and then put what you've learned into improving your team.

So let me ask, when did your team last spend time observing the fine details of each other’s sales and experience approach?  I think you'll be amazed at what you can learn that will improve your store and your overall sales.

March 12, 2008

Coaching Sales to Success

One thing I've learned is that high-performing store managers and owners are extremely focused on being good sales coaches. I see some managers and owners who are good people coaches and have strong business skills but their stores never reach the desired level of performance because they fall short in coaching sales.

One of the mistakes I made when I first became a district manager was rewarding strong operationally focused managers before those who were more sales focused. While running an operationally sound store is certainly important, I now see that a manager/owner needs to be focused more on coaching sales than running a perfect store.

Here are some of the activities I see those high-performing sales coaches carry out on a regular basis:

1. They coach each individual - as well as the team - to perform at a peak level. Many managers have a tendency to coach the team as a whole but unless they work with each individual the team will never reach that next level.

2. They regularly meet with each individual as well as the team.  High-performing managers and owners know that constantly communicating with their team is key to their success. Taking time to meet one-on-one with their team at least once a month pays huge dividends. They use the time to discuss the employee's strengths as well as those areas that need improvement.  A mentor of mine once told me that if every employee doesn't know what areas they need to work to improve then you're not effectively coaching your team.

They also have a monthly staff meeting that no one would dream of missing.  Those meetings are used to improve the team's teamwork and performance by focusing on training and business development. These managers/owners never use this meeting to communicate information that transmitted in a memo or one-on-one.  Having the team all together is so valuable that the time should never be used for anything except improving the team and business results.

3. High-performing sales coaches have their team focused on the behaviors that improve sales performance. The key word is behaviors.  High-performing sales coaches know that right behavior drives the desired results.   Just talking about the desired results isn't enough; you have to teach people what those behaviors are.  I have sat through countless rah-rah meetings where a manger/owner went on and on about making goal but never once said what the team needed to do to achieve it.

In sports, before every game a coach will meet with his/her team and tell them what they need to do to win.  They don't just say "Go win the game," the players already know that; they tell them how to win.

4. They spend a lot of time on practice and feedback, feedback and practice. High-performing sales coaches never miss a chance to praise an employee and tell them what they could do better.  They find the time to roleplay every day until it becomes second nature to the team.

So let me ask, are you a strong sales coach?

March 5, 2008

Win Like Joey N.

Let me share a quick story with you. Joey was 10 years old when he played on a Little League team with kids who were both bigger and older than he was.  Because of this he was intimidated when it was time to join his team.

Joey talked to his father about his concerns playing with the bigger and older boys.

Joey: "You know, Daddy, those other kids are so good. I don't have a chance."

Father: "Well, then you take that uniform off right now. Take it back to the manager and tell him that you can't make the team because the other boys are better than you."

Joey looked at his father with sad eyes: "Oh no Daddy, I can't do that."

Father: "If you can't make the team, what's the use of keeping the uniform?"

Joey: "But Daddy, they're so good."

Father: "You're good too. You can field grounders. You can hit the ball. You know where to make the plays."

The father gave Joey a choice; return the uniform or practice with the team.  If, after practice, he didn't feel he was better than every other kid, he should quit.

Joey said he'd try.

As it turns out, Joey was the best player on that team and on every team to follow.

Joey's dad loved to tell people about one game that season when Joey came in to pitch with the game tied and no one out. Joey struck out the side and then hit the game winning home run.

Joey continued to be a winner, even when he grew up and started going by "Joe."  You've probably heard of him - Joe's last name is Namath.

In Namath, a biography by Mark Kriegel, Joe's father John said he knew that it was important that confidence came before success.  Joey gained confidence when he didn't give back the uniform and took on the bigger and older boys. We know that confidence stayed with Joe Namath and served him well when he predicted a victory for his team in Super Bowl III, a prediction he backed up with a victory nobody else expected.

The elder Namath always told people, "What you should feel is that you are better than everyone else out there."  If you don't then you probably won't achieve the success you desire.

The same holds true for specialty retailers.  To succeed you have to know that you are indeed better than your competitors.  You may not always have the lowest price or the largest inventory, but you must be confident that the store experience you offer is indeed the best.

Keeping that confidence is easy when things are going well but it can get challenging if you're falling short of goal.  And once a team begins to lose confidence it becomes even harder to win.

Every day your store is open you're stepping up to the plate. Every day you either hit your goal and win that day's game, or you fall short and you don't.

I guarantee that if, when you open your doors in the morning, you are absolutely positive your team is indeed better than everyone else, then you've got a great shot at winning that day's game.

As Joe Namath's father pointed out, the others may be older and bigger but if you don't believe you're the best then just give back the uniform and go home.  Of course like Joe, you have to back it up with your performance.

So let me ask, are you the best out there?

 

February 26, 2008

Ten Ways to Know if You're Working or Clerking

I recently talked with an executive from a specialty store chain who is worried about the economy's impact on his stores.  Sales were off so he contacted us to see what we might be able to do to help.  I said I would shop a few of his stores and follow-up with him.

After visiting four stores in three different markets it was clear that indeed he has a problem - but not the one he thinks he has.  The problem I saw didn't have anything to do with an economic slowdown but it had a lot to do with a customer focus slowdown. In every store I visited the staff was not very attentive to the customers and didn't seem that concerned if the customer made a purchase or not.

While in the fourth store I heard my friend Donny's booming voice in my head call out, "THE PROBLEM, PEOPLE, IS THAT YOU'RE CLERKING IT AND NOT WORKING IT!"  (I'm often grateful that people can't hear what sometimes goes on inside my head.)

As I looked around I saw all the signs of a staff that was clerking the customer, not working with customers.  Since you're a regular reader of The Weekly Retail Experience I'm sure you don't lack the customer and selling focus that this retailer did.

Just to be sure, here are the top ten signs you know you're working with customers and not just clerking them. (I'm not going to bold each one so please read them all!)

Degclerkorwork 1. A customer rarely gets to the counter to make a purchase without having already been engaged by you or one of your teammates. Actually, very few customers even get to the counter who aren't brought there by a staff member.

2. You enjoy greeting and engaging customers when they come into your store.

3. You're not behind the counter unless you're ringing a sale.

4. You naturally ask your customers questions to see how they can best be served.

5. Unless the store is extremely busy you know exactly which customers have been assisted by which one of your colleagues.

6. Asking the customer if they'd like to purchase what you're showing them has become second nature - and if it hasn't yet it's your goal.

7. You already know what product you're going to show the customer after you've finished showing the current one.

8. You're disappointed when your customer doesn't make a purchase but you never let them see it.

9. Customers seek you out when they come into your store.

10. You're extremely focused on providing a great experience to every customer who comes into your store. 

11. You try to go above and beyond for every single customer.

So let me ask, are you working or clerking?

 

February 19, 2008

Adapting for Sales and Engagement Success

One of the ways GREAT retail salespeople differentiate themselves from good retail salespeople is in their ability to adapt their sales and engagement approach to the customer. Most retail salespeople will engage the customer based on their own style and approach. Some are high energy, some are low key, and most are somewhere in-between. Good retail salespeople will deliver the same quality experience throughout the day with little difference between the first and last customers of the day.

Degwomenshakinghands GREAT retail salespeople deliver a quality experience but they adapt each experience to the customer themselves. They are able to quickly size up a customer and completely adjust their sales and engagement approach based on the customer's style and mannerisms. It's a real art, but it's one that can be learned.

Years ago I worked with a guy like this at The Sharper Image in Palm Beach Gardens, Florida. The man was a master retail salesperson. Or at least he was when he hadn't stayed out all night before coming to work. But when he was on, he was on! His ability to adapt to each customer was unbelievable.

The result was that customers just loved him and were practically begging him to sell them things. For the life of me I can't remember his name so I'm going to call him Bob. These are four ways Bob personalized his approach to each customer that made him a GREAT salesperson.

1. Bob mirrored the customer's energy level. Bob's own energy level was extremely high. Sometimes he'd get talking so fast you weren't sure if he was speaking English or not. You knew when he arrived at work because it was if a whirlwind had hit the store. But when he was with customers you would only see that energy level with customers who also had high energy. He always welcomed a customer in his natural style but would ramp it down if needed based on the customer himself. Within minutes he would be at the almost same energy level as the customer, always remaining just a bit more energetic. He didn't just adapt how he spoke to the customer but he even adjusted the speed he walked with them.

2. Bob always got - and used - the customer's name. This is one of those things we know will make us better salespeople but we simply don't feel comfortable doing it. Or maybe we've convinced ourselves that people don't like it so we don't do it. The reason most people don't like salespeople using their name is because it seems forced. This happens because salespeople are using a customer's name just for the sake of using her name. Bob set out to create a relationship with each customer and if you're going to have a relationship you should at least know the other person's name.

3. He personalized the pace of the experience he delivered to the customer's own pace of shopping. It's always easy to see when a customer is in hurry but each and every customer wants to shop at his/her own pace. Some customers are slow and deliberate while others want to move the process along quickly. Don't confuse a customer's energy level with pace. To judge a customer's pace you should observe how he is moving between products and how focused he is. Customers who like a quick pace are often misjudged as in a hurry or "cranky," while customers who are slower and more deliberate are mistakenly labeled as browsers and non-buyers. The more you are aligned with your customer's desired pace the more likely you are to complete a sale.

4. Last but not least, Bob always assumed and asked for the sale. Bob was our top salesperson practically every month because he spent his time working with buyers while the rest of us waited on customers. The difference lies within our own thoughts and attitudes.

So try this out on your customers this week. Adapting to your customers might just get you adapting to higher sales.

 

February 12, 2008

Making The First Day Count

Remember when you were first learning to count down a register?  I don't know about you, but for a while I was as slow as molasses. For the first few weeks I thought my manager was going to wear out the carpet pacing while he waited for me to finish.  Over time, of course, I got faster and faster.  Like most retailers, I eventually learned to count down a register at lightening speed while talking on the phone and completing paperwork.  How did I improve?  Practice, of course. The more I did it the faster I got.

Degfirstday There is one task you have that you don't get to practice much even though it is one of the more important parts of your job.  You probably don't even realize the impact it has on your store's long-term success.  I'm talking about working with new employees.

Unless you run a large retail operation, outside of the holidays you may only bring new employees on a couple of times a year. Because you don't do it that often you may not do it as well as you'd like.  I know, because I've done my fair share of starting new employees and more often than not the experience wasn't up to the standards I had expected.

Here are some tips to help you make sure you give your new employees the best possible experience.

1. Schedule an employee's first day for a day you can give them your undivided attention. Always start the new person on your slowest day. For most of us that means Tuesday through Thursday.

2. Staff up on an employee's first day. You need enough employees to cover the floor so you can spend an appropriate amount of time with your new employee.  Don't make the mistake I did - I not only didn't staff up but I would schedule the new employee to work the floor. You can imagine how well that worked out.

3. Have all of the employee's paperwork ready days before they start.  Once I started an employee only to discover I was out of new employee packets. So there I was spending all of my time getting other stores to fax me the necessary paperwork. Yes, it was a fax and not an email.  I've been doing this for a while, you know.  I'm sure the employee went home and told her family what an idiot her new manager was.

4. Have an agenda for their first few days so both of you know what is going to take place.  Having a successful new employee orientation is important for getting the new hire off on the right foot.  An agenda keeps you focused on everything that needs to be done and done correctly.  If you work for a large retailer there is a good chance your employee will miss their first paycheck if you don't get everything done correctly and completely. You want talk about how NOT to start a new employee, have them not get paid for a month.

5. Assign a mentor to the new employee. I think we can all remember how awkward it is to start a new job. You don't know how to do much and you walk around feeling like you have two left hands and two left feet. The last thing you want to do is keep asking your new manager so many questions you're fearful that you're bugging them.  By having a non-manager as a mentor the employee will feel more comfortable asking questions, and we know the staff knows more than you do anyway!

6. Celebrate the employee's first day. I'm written before that it's odd that we throw a party when an employee leaves. "Hip hip hooray, you're leaving!"  Okay, there are employees we would do that for, but most of the time we're sad to see our employees go. Well, throw a celebration when an employee leaves AND when they start.  Imagine how special someone feels when you celebrate their joining the team. A little cake, a few balloons, a welcome card signed by the entire staff and you've delivered a WOW that will keep giving for a long, long time.

So while I doubt you'll get as good at starting new hires off as you are at counting down a register, with a little bit of planning and focus you can do it well enough for an employee to always remember how great it was to start working for you.

Remember, we can't expect our employees to wow our customers until we wow them first. And that starts on the very first day.

 

February 6, 2008

Our Opinion Sort of Counts

While visiting a wireless store I overheard the following conversation. A customer was looking at an entry-level phone and when the salesperson walked up to him they had the following encounter.

Degmanthumbsdown Salesperson: "Can I help you?" (Gee, that's original!)

Customer: "I was interested in this phone."

Salesperson: "The (brand removed)?"

Customer: "Yes. What can you tell me about it?"

Salesperson: "You don't want that phone."

Customer: "Why's that?"

Salesperson: "It doesn't have Bluetooth capabilities or a very big display for reading emails and surfing the net. The camera is also only 1.2 pixel."

Customer: "Hmm. I'm just going to look around then. Thanks."

Salesperson: "No problem. If you have any more questions or need any more help just let me know."

Two minutes later the customer was out the door. A lost sale and a lost customer because the salesperson "helped" them out and pushed his opinion on the customer.

Wouldn't it have been great if this had happened?

Salesperson: "It doesn't have Bluetooth capabilities or a very big display for reading emails and surfing the net. The camera is also only 1.2 pixel."

Customer: "Well I don't need Bluetooth capabilities or a big display for reading emails or surfing the net. I may or may not use the camera.  All I want is to make calls.  I really don't want to spend any more money than I have to for any more phone than I need but since you didn't bother to learn anything about my needs and only shared your opinion I'm going to look around for just a few more minutes and then hightail out of here and go buy a phone somewhere else." (Customer then catches breath!)

Salesperson: "No problem. If you have any more questions or need any more help just let me know."

A retail salesperson's professional opinion is extremely important to your customer.

The problem is that many salespeople, like this one, share their personal opinion.

Degmanthumbsup While I'm sure the guy's heart was in the right place, his personal opinion doesn't add value to the customer's experience.  What does add value is his professional opinion, and the only way to form a professional opinion is to learn something about the customer to whom you are speaking.

In the instance above, if the salesperson had asked questions like "how do you think you'll use the phone?" and "Do you like to read email or use the internet?" and "Do you like to use a headset?" and "Does your current phone have a camera?"

After the customer provides enough information the salesperson can make a professional recommendation, but until you hear the answer to those questions you're just giving the customer your personal opinion.

Just because we like a certain look or want certain features doesn't mean the customer does.  We're not buying it!  We're helping the customer buy it, and our role is to help him/her buy the right thing.

So the next time you're giving a customer your opinion stop ask yourself, is it personal or professional?

 

January 30, 2008

Turning Your Cards Into a Winning Hand

I was talking recently with a retailer in my mentor and coaching program who said she seemed to be having "one of those bad weeks."  Among the contributing factors was that her best employee had just given his notice, one of her top lines was picked up by one of her competitors, and the anchor in the center where one of her stores is located has gone out of business.  After going through the list we both agreed that she was lucky it was only "one of those weeks" and not "one of those months."

We commiserated for only a minute or two and then agreed that she needed to move past her current thinking.  I even challenged the notion that she was having a "bad" week. Maybe her week was actually a good week.  I reminded her that more often than not the difference between a good week and a bad one is your perspective.

Degpokerplayer I told her the story about my daughter learning to play poker with her cousins a few years ago. Jane seemed to catch on pretty quickly and even won once or twice in the first hour. After a while, though, she wasn't doing so well. At one point she came over to me to complain that she wasn't doing well.  I looked at her cards and she had drawn an ace high straight.  Jane thought because she didn't have a pair or three of a kind that her cards were bad. Once she learned to see her cards differently she started to win more.

The same thing happens to us. We're dealt something at work or home we immediately view as bad but if we look at it from a different perspective it may not be so bad at all.  I told a friend of mine this story and he said, "You're right. After I lost my job when my company downsized I had more time to look for a better job."  Obviously my friend is a smart aleck and was trying to say that I was being a little Pollyannaish.  I got the last laugh when two weeks later he landed a great job he never would have gotten if he hadn't been downsized. Okay, I did luck out on that one.

If you're going to run a successful business or store you need to be able to play the cards you are dealt and turn them into a winning hand.

That's just what the retailer I was talking with is doing.  The best employee who gave his two-week notice is leaving retail so this gives the owner a chance to promote another up-and-coming employee.  To get this person trained she is going to have another store manager be a mentor to the new manager.  This is a perfect scenario since the owner is considering promoting the store manager to an area manager and this will be a way to try her out in the new role.

She also realizes that her competitor picking up one of best lines is actually a good thing. When she thought about it she realized that the competitor has a lot more foot traffic, is only carrying a limited selection, and offers sub-par service.  So instead of moving out of this product line she is going to increase the number of skus and advertise it more.  I think this is a winning hand!

And in regard to the anchor going out, well there's not a whole lot she can do about that. She is going to meet with the store team and hopefully together they'll come up with some ideas to drive traffic.  And who knows, maybe they'll get an even better anchor.

So let me ask, are you turning your cards into a winning hand?

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January 23, 2008

The Attack of "How's It Going?" and "May I Help You?"

Most retailers who miss sales do so by ignoring customers.  Others miss sales when they over-engage the customer. Yes, there really can be too much of a good thing!  I know that nothing will run me out of a store faster than too many people trying to help me.

Degscream Last year I was in a store that was obviously implementing a new company initiative that required staff to talk to a customer whenever the customer was within a certain distance. I was asked at least eight times either "How's it going?" or "May I help you?" within the first five minutes I was in the store.  The funniest - or maybe it's the saddest - part is that there were only four or five employees working in the store! I was attacked by some of the employees more than once. Either I'm not a very memorable person or they were only going through the motions and didn't really care how I was doing or if I needed help. I suspect it was a little of both.

When I was attacked for the ninth time I snapped and said I'd been doing pretty well until I came into this store and was asked over and over how I was doing. I'm sure they talked about the crabby customer after I left.  I didn't care because I had no plans to return (unless I needed something to write about.)

Greeting or welcoming a customer when they enter your store is an important piece of delivering a quality customer experience.  I was discussing this with some clients on Friday and someone compared it to someone coming to your home.  You welcome them when you answer the door but you don't keep greeting them over and over.

These are the different types of QUALITY engagement that should take place in a store:

1. Greeting and engaging the customer when he/she first comes into the store.  I've covered this many times in the Daily so I won't go into much detail here. What I do think is that it should happen within thirty seconds or so and can be done either verbally or non-verbally.

2. Re-engaging by the same employee who first greeted and engaged the customer. This is often a continuation of the conversation the employee had with the customer. Customers should probably only be re-engaged once unless he/she is clearly open to it. Don't overdo it or you'll ruin their shopping experience and your chance at making a sale.

3. Acknowledging the customer by a different employee. If a sales associate is somewhere near a customer and makes eye contact it more than appropriate to smile and say hello. Sometimes you can tell the customer wants help but more often than not they are just being friendly.  Skip "How's it going?" and "May I help you?"  Just acknowledge the customer and show by your actions that you're willing to help.

4. Engage for a reason. When done well this can be one of your most effective sales tools but when done poorly it is potentially extremely annoying to your customer.  Engaging for a reason is when an employee engages a customer he/she did not initially greet in a conversation.  The engagement can be based on what the customer is looking at, what they are wearing, bags they are carrying, etc.  If the store I wrote about above had engaged for a reason then I wouldn't have left so annoyed.  Then again, engaging the customer nine times in five minutes is annoying no matter how you slice it.

Note what isn't listed:

* Asking customers how you can help them.
* Asking the customer if anyone is helping them.
* Following customers around the store.
* Talking to the customer without purpose.
* Telling someone "welcome" when they're well into the store.

The difference between making and not making goal is often based on a staff's ability to naturally engage the customer.  The difference between a customer having a good or a poor experience is usually based on how much value the employee's engagement approach adds to the customer's experience.

So let me ask, how well do you and your team engage and not over-engage the customer?

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January 9, 2008

Grow Your Business with POP

One of the most effective tools for growing your business doesn't cost a dime but it works with astounding results. It can be used by any retailer of any size who sells any given product.  It works for anyone in just about any position including store management, retail owners, executives, and internal support managers.

Instead of me telling you about this tool I'm going to have one of our Daily Retail Experience readers do so with an email she sent last week.  Here's Patti from Canada.

This year we've had a lot of new customers that have been recommended by other people. We know because they walk in and tell us that so-and-so sent them to us. It made me wonder what was different from last year. I realized that what had changed is I had started complimenting my staff more than I had in the past. I see now that it made them feel appreciated and as a result we delivered a higher level of service and then they told more customers about us. And as result our sales have grown along with our customer count.

Degthumbsup Patti discovered that the powerful tool that can help you grow your business is praise.  Regularly recognizing your employee's contributions, both big and small, can absolutely impact your bottom line. I've seen managers come into an existing store and grow sales five or ten percent just by doing what Patti did in her store.

I suspect that a lot of managers praise their staff less than they actually think they do. I know I personally thought I was pretty good at it until someone told me otherwise.  I was pretty surprised by that feedback but because it was given by someone I respected and considered both a colleague and a friend I had to take it to heart.

Here are five important things to consider about using praise to grow your business.

1. Praise must be authentic.  If you don't mean what you say then odds are that the people you "praise" will see right through it. False praise is worse than no praise.

2. Recognizing someone for their contribution is not the same thing as thanking them for their contribution.  One of the things I learned about myself is that I was pretty good at thanking people for their hard work and efforts and in some strange way I thought that was praise.  It isn't.  Saying, "Hey Bob, thanks for taking care of that unhappy customer" is not the same as "Hey Bob, you did a great job of turning that unhappy customer into a happy one."  Obviously you thank someone as well as praise them but don't confuse the two because they're not the same.

3. Recognize both big and small contributions.  I think a lot of us are probably pretty good at recognizing employees when they go above and beyond the call of duty but we probably miss those less obvious opportunities.  I was in a store one day and a customer walked in and asked for a $3,000 stereo.  The employee went to the back, got the product, brought it to the counter, rang it up and delivered it to the customer's car.

Ten minutes later another customer walked in looking for a specific product.  Instead of telling the customer the product wasn't in stock the same salesperson made a call to another store and tracked down the item the customer wanted.

Guess which customer interaction the manager praised the employee for?  I hope you picked the second one.  While I think many managers would have mistakenly praised the employee for making a big sale, the manager of this store was very skilled at recognizing when her employees did something well; she praised the employee for giving the second customer a great experience.  Okay, maybe she praised for both of them but you get the picture.

4. Don't over praise. We all know that if you over praise the recognition will eventually mean nothing to your staff.  As long as you keep your praise authentic this is less likely to happen.  Even so, when in doubt, over praise.  Believe me, if your team had to pick from hearing praise once a day or once a year, they'll take the daily praise.

5. If praising people doesn't come naturally to you consider giving yourself a praise quota. I know that sounds silly but I know from experience that it works.  After being told I didn't praise my team enough I told myself that I would make at least one statement of praise every day.  It was more of a reminder than a true quota, but it worked.

So let me ask, how much are you using the Power of Praise to grow your business? It worked for Patti and it can work for you too.

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January 2, 2008

Resolutions to Improve Your Execution

With a New Year comes new beginnings and new opportunities. An annual event for many people this week is making New Year's Resolutions. I figure if we all work together on 2008 resolutions then we all Resolutions2008will have a better chance of keeping them.  And I guarantee that if you keep these resolutions you'll achieve success in 2008.

For Store Managers:

I resolve to delegate more of my administrative paperwork to my assistant and spend more time coaching and developing my staff on the floor.

I resolve that by March 1st every staff member will know what I believe are their strengths and they will have an action plan for improvement opportunities.

I also resolve that by that date I will have worked on my assistant's development in the areas he/she needs to develop further as a manager.  By the end of the year I want that person ready to run a store.

I resolve to write down three areas in which I want to grow and improve. Once each month I will review that list so I remain focused on becoming the best leader I can be.

I resolve to spend ten minutes every work day reviewing store results to date and strategizing my day to achieve goal.  I resolve to create success and not just wait for it to happen.

Finally, I resolve to achieve sales and other performance targets no matter what.

For Independent Store Owners (Some retail executives may consider these as well.)

I resolve to take the actions listed for the store manager position and/or ensure my managers do those resolutions.

I resolve to spend at least one hour each week focused on growing my business and my own personal development.  I know that if I don't do this that it will be harder for my business to grow and succeed. (Our Dynamic Experience Group Coaching and Mentor Program is a wonderful tool to help you with this resolution.)

I resolve to put into place a structured sales and experience approach to make sure we maximize every single customer opportunity.

I resolve to stop complaining about Wal-Mart, Target, Home Depot, Bed Bath and Beyond, Toys R Us, or any other big box retailer because of what they sell and how much they sell it for.  I will instead use that same energy to find opportunities that are available in key niches not being served by the big boxes as well as delivering more personalized service.

I resolve that by the end of the year I will only be employing great employees or employees who are on their way to greatness.  I know I can't afford to have any staff member that I wouldn't want helping me in a store if I was a customer.

I resolve to hand off more of my low impact tactical tasks and spend more time coaching my team and working on strategic plans.

Finally, I resolve to set and achieve sales and other performance targets no matter what.

For Store Support Team Members

I resolve to discover more ways that my department and/or role can help the store be more efficient in 2008.

I resolve to find ways that my work can help improve the experience a customer receives in our stores.

I resolve to be a resource to a manager who is struggling in his/her role and do my best to not be frustrated with that person.

Finally, I resolve to achieve my performance targets no matter what.

For All Store Employees

I resolve to spend 5-10 minutes each work day improving my sales and experience skills or product knowledge.

I resolve to try to do a little something extra for each and every customer.

I resolve to not show a customer a product until I know something about them or their needs.

I resolve to never finish a sale. I will keep recommending products and solutions until the customer finishes the sale.

I resolve to not take personally anything an unhappy customer says.  I will also try to turn them from unhappy customer to raving customer advocate.

I resolve to be a good team member by recognizing my colleagues when they do something above and beyond for a customer or another team member.

I resolve to be a positive influence on the entire team.

I resolve that no matter what 2008 brings, I'm going to enjoy it as much as humanly possible.

I resolve to make 2008 the best year ever both professional and personally.

Finally, I resolve to achieve sales and other performance targets no matter what.

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December 26, 2007

Post-Holiday Returns and Exchanges = Incredible Sales Opportunities

Happy Day after Christmas! I hope and trust that those of you who celebrate Christmas had a fabulous day with family and friends. We had a splendid and relaxing day. The girls were excited that Santa Claus had put them on the "nice" list and left presents under our tree. We had a splendid dinner with extended family and a wonderful time was had by all.

Today retailers move into the third holiday season. The first season is Black Friday, the season of bargain hunters and lookers. The second season is the week before Christmas, the season of procrastinators.

Return The third season, which runs for the next ten days or so, is The Season of Me. Starting today, customers will be descending on your stores armed with gift cards, cash, and a strong desire to buy for their favorite person, themselves. Many of them will also have gifts that were purchased before Christmas to return and/or exchange.

Here's how to maximize this third season, The Season of Me.

* It's vital that everyone on the team understands that the next ten days offer great sales opportunities. Customers with returns and exchanges offer opportunity, not inconvenience. Think sales, not refunds.

* Be aggressive in turning returns and exchanges into additional sales. There are three common mistakes retailers make when it comes to holiday returns.

1. They assume the customer wants a refund. Wrong.

2. If the customer doesn't have a receipt, or they have a gift receipt, the retailer assumes that the customer will only spend the amount of the product they're returning. Wrong.

3. They assume that if they can just break even on the few days after Christmas they are doing well. Wrong.

Last year I shared with readers our Three 'I's with a Smile approach to handling returns. Do this and I'm sure you'll maximize your post-Holiday opportunities.

Intercept all customers before they get to the counter. Greet them with a warm smile, a heartfelt "welcome" and an offer to take the return from them. In most stores associates ignore customers with refunds, or at the very least just point them to the counter. This is not only a big mistake that ends up increasing the amount of returns, but makes the person with a return feel less important than person making a purchase. A store manager I once worked for told me that any retailer can make buying something a good experience for a customer, but it takes a great retailer to do the same with a return or an exchange. Try to engage the customer as close to the door as possible without making them feeling accosted.

Identify why the customer is making a return. Since you are assuming the customer will make an exchange (and quite possibly spend even more money,) listen carefully to what they say as you will gain information that will you help your next step be the correct one. One important thing you need to know is whether the person returning the product is the original buyer or received the item as a gift.

Influence the customer by suggesting or recommending products that better meet their needs than the product they are returning. The customer may object to this and state that he/she just wants a refund. With a smile and the information you've gained from your identify step you can easily try to overcome the objection by stating what you've learned from them. I think we owe to the customer and ourselves to always try and overcome at least one refund objection. This can save a retailer thousands of dollars in returns. If the customer objects again then of course you escort them to the counter and get their return handled cheerfully and efficiently.

* A store manager once told me that a customer's disappointment is an individual problem that needs an individualized solution. As sure as Christmas comes every year, so do a few unhappy customers. When you're faced with an unhappy customer, listen carefully to what she has to say and don't determine your solution un