Fun with Fleener on his retail blog
Here is a sample of the postings from Doug's blog Retail Contrarian. To read more or add your comments, go to www.retailcontrarian.com.
January 4, 2012
 Your 2012 Resolutions
I know how busy for the last few weeks, so I've taken the liberty of putting together some potential resolutions for you and your team in 2012.
This is a fairly extensive list, and you're probably already very good at most of these things. Even so, there might be one or two areas where improvement will have a positive impact on your business.
If you will, let me know which of these are right for you, and tell me about any of your resolutions that I've missed.
1. Taking your customer experience to the next level. Your store/company's customer experience is good, but deep down you know it could be so much better.
2. Improve your staff's sales abilities. Your staff is really nice and delivers a very good customer experience. Now you aim to translate that to higher conversion and average sales.
3. Better clienteling. As online sales continue to grow and outpace traditional retail, in some segments the personal relationship between the customers and staff will become vital to keeping and maximizing customers.
4. More relevant marketing. The good news is you've got your Facebook page up and you're posting on a fairly regular basis. The bad news is you have no idea the impact it's having on your business. That probably means it isn't having much.
5. Increase accountability within your store/company. This could be in all sorts of different areas. Maybe it's expecting more from your frontline employees. It might also be holding managers and district managers more accountable for each store's sales performance.
6. Move the underperformers up or out. If you're tired of talking about the same underperformers over and over, maybe 2012 is when you finally improve their performance or promote them to customer. Yes, this goes hand in hand with #5.
7. Challenge and grow your top performers. The worst thing you can do is to not continue to develop your top people. It might be time to either create a new program for high-potential employees or, at the very least, figure out a way to better leverage their talents.
8. Invest more time and focus on developing your people. Unless you're competing on price you're probably competing with your people and the service/experience they deliver. Are you spending the appropriate time and energy on them?
9. Be more comfortable giving people the direct feedback they need to be successful. One of the managers I work with recently said to me, "I can't believe I coach without thinking about it! It feels natural now to give feedback at anytime, to anyone, and not worry about how it will be taken. We all "get it" that it is just information we need to get the results we want!" That's how we all need to think.
10. Improve your hiring process. This could be interpreted to be about improving the quality of the people you hire, but I don't want anyone to think that you haven't hired good people. You just need to get better at your process so you can do that more consistently.
11. Standardize your training and development. Chances are you and your stores/staff are good at training new people. The challenge is that no two new hire trainings are the same.
12. Work more strategically. Some people say you should work smarter but not harder. I think if you've survived the economy we've had for the last few years you're pretty smart. A lot of people they just need to work from a better-defined plan and then work the plan.
13. Delegate more. I hesitated about putting this on the list since most of the time delegation isn't the real issue. It's usually either that people can't give up control or they don't have the quality of staff to delegate to. Whatever the reason, you probably need to do less.
14. Become a better merchant. Whether it's buying, visual presentation, or financial management, you know that if you improve in this area you'll see an improvement to the top and bottom lines. Frankly, I put this at the bottom of the list since I know that most of you I know are stronger at these things that the above items. But hey, they're your resolutions.
15. Be more action oriented. Your list of things you were going to do or wanted to do is probably longer than what you did. Don't feel bad, that's true for most of us. But did you do what you know you needed to do to be more successful? The road to mediocrity is paved with good intentions.
So let me ask, what will your resolution be for 2012?
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December 27, 2011
Flip It
One of the keys to being successful this week is the ability to flip customers who come in for a refund or exchange into making a big purchase. It won't happen with every customer, but it rarely happens at all if you don't try.
The game/contest Flip It makes trying a lot more fun.
The goal of Flip It is to have the largest sale of the day that began with a return or exchange.
I like to make the prize a $20 bill or gift card and then have the prize passed around as one employee tops another. I used to do this back in my Sharper Image days, and I'm convinced some of the salespeople enjoyed taking the prize from a colleague more than the prize itself.
Here's an example of how it works. The first customer of the day comes in with a $20 return, but the salesperson then sells him $60 of additional items. That means the current top Flip It sale is $40. (You have to net out the return or exchange.)
The next customer has a $130 item to exchange, and the salesperson sells her additional items worth $200. The net Flip It sale is $70. He/she now gets to take the cash or gift card from the other salesperson.
Another way to play Flip It is to pay everyone a prize for flipping customers. You could, for example, say that any return or exchange that has a net increase of $100 or more wins a $5 gift card.
The key to flipping the customer is to NOT ask if he/she wants to see something else. Use proactive phrases like, "You have to see these items on sale" or "I have the perfect widget to go with the red one you're exchanging."
While I'm sure I don't have to remind you of this, it's important to make sure trying to flip the customer doesn't have a negative impact on his/her experience. It's all in the passion and enthusiasm you use to move your customer to other products, and remaining keenly aware of how each customer is reacting.
So let me ask, are you and your team successfully flipping returns and exchanges into bigger sales?
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December 19, 2011
Which leader will you be this week?
How are you doing? You, not your store, although I'd love to hear about last week's sales. Right now I'm more interested in how you are. I ask because the energy and attitude you as a leader bring this week has a huge impact on your results.
This is the week to be an extraordinary leader.
Retail leaders usually fall into one of these categories at this time of year:
1. The tired leader. If you ask this owner/manager how he's doing he'll tell you how tired he is. If you don't ask how he's doing he'll still find a way to work it into the conversation. Not surprisingly, everyone on the staff is pretty tired too, or at the very least tired of hearing about it from the owner/manager. And of course when everyone is that tired, more opportunities are lost than are created.
2. The stressed-out leader. You can find these owner/managers without ever setting eyes on them. All you have to do is talk to stressed-out staffers. This owner/manager might try to tell you everything is fine, but the short fuse and tense facial expression is a dead giveaway. The stress could result from any number of other reasons, none of which really matter. It all leads to more lost opportunities.
3. The overworked leader. This owner/manager loves to tell anyone who will listen how much he/she is working. I had a manager once who would refuse to take a day off between Thanksgiving and Christmas, and then spend every day talking about how she hadn't had a day off! This owner/manager's need to talk about him/herself results in lost opportunities.
4. The overwhelmed leader. While this owner/manager may at first appear to be a stressed-out leader, you can spot them by the lack of leadership and confusion within the team. This manager/owner is working extremely hard but the store is slowly spiraling out of control, taking opportunities out of reach.
I'm the first to admit that at one time or another in my retail career I've been every one these leaders. I also learned from some great mentors to become the fifth type of leader.
5. The crunch-time leader. This leader is far from perfect. As a matter of fact they're just as likely to be tired, stressed-out, overworked, or maybe even overwhelmed, as any of the other leaders. The difference is that they're not showing it.
The crunch-time leader leads. The busier the store, the more she elevates her game. She shows more energy, not less. She's demonstrating more passion and giving out more encouragement to her team. She's keeping everyone focused on the customer and, most importantly, she's keeping it light and fun.
Leaders lead, especially in busy times when the opportunity is there.
So let me ask, which leader will you be this week?
Here's wishing you a Merry Christmas - or Happy Hanukkah - or if you have no holiday preference a Happy Holiday! - Doug
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December 12, 2011
Rock the boat!
I recently spoke with a retailer who is disappointed with the performance of one of her key employees. When I asked how she is handling the situation she replied, "I haven't really said much. I don't want to rock the boat this close to Christmas."
I hope your reaction is the same as mine. Rock the boat!
Here's why. A mentor of mine recently explained that people and organizations have a finite amount of energy and focus at their disposal. This energy and focus is used both externally in creating sales and building your community, and internally in dealing with organizational problems, challenges and opportunities.
What he said next really stood out for me: Any additional energy and focus that's required internally is taken away from the external customer side. We may fear rocking the boat during the holidays, but not quickly resolving issues during the holidays will cost you a lot more money than will rocking the boat.
Here's my advice for that retailer and any other owner/manager in the same position. If an employee is falling short of your expectations, address it now. As I've said many times, most employees want to do a good job. They can't improve if you don't let them know what to work on.
Nine times out of ten these conversations go better than we expect. Remember, keep the focus on future behaviors and don't dwell too much on past actions. Keep it positive. Express your support of the employee and be done with it. Take the internal distraction, fix it, and get the energy and focus back on the customer.
Also, don’t forget to praise and thank all of your employees at the end of each day. It’s Showtime!
So let me ask, do you need to rock any boats?
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December 7, 2011
Assume a HUGE weekend
Can you believe that after this weekend there is only one more full weekend until Christmas?
Every customer who comes into your store offers you the chance to connect, deliver a memorable experience, and win him/her as a customer with the biggest possible sale.
When I talk about making the biggest possible sale, I'm not saying that we should be pushy or try to sell people a bunch of stuff they don't need or want. What I am saying is that by maximizing the relationship you build with your customers, you can help them purchase more of your wonderful products for the people on their list.
Most salespeople believe that the outcome of a sale lies in the customer's motives and actions. I believe that our actions, and the language we use, influence sales as much as anything the customer thinks or does.
Let's go into the weekend assuming that if you use these three tips, you and your colleagues will have a HUGE weekend.
1. Assume that every customer is walking into your store to make a purchase. I know this sounds line a no-brainer, and I bring it up from time to time, but my own shopping experiences remind me that not everyone thinks this way. At 7:30 on Black Friday morning a sales clerk actually asked me if I was out shopping. I felt like responding, "No, I'm playing a round of golf and I think I sliced my shot into your store." Of course I'm out shopping!
And we want to go beyond that initial assumption. Don't just assume the customer is out shopping; assume the customer is walking into your store with his holiday list. With less than three weeks to go and the crowds only getting bigger every day, why wouldn't a customer be out buying?
If you're assuming that your customer is ready to buy more than he thinks he is, remind him of the benefits in buying now. (Shorter line, better selection, faster gift wrap, getting to work with you as their sales associate, etc.)
2. Use assumptive language to maximize your opportunity. Of course, this goes hand in hand with assuming the customer is coming into your store to buy for their list. Assumptive language conveys to your customer that you are ready to help her make a purchase, and helps her picture the people on her list receiving and using the gifts she gives. It also does the same if she is buying something for herself.
Try these key assumptive words:
Will - "You will really enjoy this" or "This will look beautiful on her."
When - "When he opens this" or "When she puts it on for the first time."
Use or Wear - "When you use this you'll be amazed at how well it works" or "When you wear this I'm sure you'll just love it." (Come to think of it, Love is another great assumptive word.)
3. Assume your customer will buy multiple products for multiple people on his list. As I've said many times, let the customer decide when he is done. Here are some examples of using assumptive language to continue the sale
"Here are the matching earrings" instead of "Would you like to see the matching earrings?"
"This smaller one is a perfect compliment to this one." instead of "If you're interested, there is a smaller version."
"Who else is on your list?" instead of "Will there be anything else?"
Remember, it's only rude if you keep showing the customer products when she says she is ready to leave. Give yourself a goal of allowing every customer to make the decision to go to the register.
So let me ask, are you ready for a wildly successful and assumptive weekend?
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November 10, 2011
Purposeful parties and events
Last week one of our clients announced to their employees that the traditional holiday party will not be held this year. The employees were very disappointed. The annual event has long been a high point of the year because it brought families together together for an evening of food, drinks, and socializing.
The disappointment turned to excitement when the owner announced that the holiday party hasn't been completely cancelled, but will be replaced by a smaller scale event that will enable people to give back to their community.
The company is giving each employee a gift card to use to purchase holiday gifts for children in need. The employees, along with their families, will bring their purchases to a giftwrapping party held over consecutive nights at the company's office. The giftwrapping party will be catered and is shaping up to be a wonderful evening.
LOVE IT!
It's a holiday party with a purpose. Employees are still recognized for their contribution to the company, but at the same time the organization is able to give something to their community. It's a win/win that makes a difference, and in this particular instance it could spell the difference between a child having a present under the tree or not.
Whether you currently do something like this or not, it's a great reminder of the opportunities to touch more lives we have in our businesses. You also can't underestimate the impact this has on both employees and customers.
Here are a few more suggestions for ways to add more purpose to holiday parties and events:
* Donate a gift or make a contribution for every customer who shows up at a VIP or Wishlist event. This gesture could be the tipping point for a customer who is undecided about whether to attend or not.
* Ask customers to bring a gift or canned goods as the price of admission for an event. Even better, match the donation.
* Offer a gift card or discount for bringing in a gift or canned goods. This is a great way to start the sale. It's up to you and your team to finish it.
* Let customers vote on Facebook and/or in the store for your holiday charity.
* Partner with a local shelter or charity to create a Wishlist tree. Customers can purchase an ornament that helps a particular person or family in need, and those customers are invited to an exclusive evening or weekend holiday event.
So let me ask, how can you add more purpose to your parties and events?
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October 19, 2011
Are you getting your additional 13%?
The 2011 American Express Global Customer Service Barometer finds that 70% of American consumers are willing to spend an average of 13% more with companies they believe provide excellent customer service.
13%! That's up almost 50% over last year, when 58% of consumers said they would spend an average of 9%. So even more people are willing to spend even more money for excellent service.
Here's the news that's either good or bad, depending on the quality of your customer experience. Four in ten (42%) said companies are helpful but don't do anything extra to keep their business. And one in five (22%) think companies' take their business for granted.
The problem is that most retailers think about the experience, or talk about the experience, but don't have the discipline or leadership to actually deliver an excellent experience. It comes down to basic fundamentals delivered with every customer.
1. The customer is the only highest priority. Everything else comes second.
2. The staff is attentive and available.
3. The customer is acknowledged/welcomed upon entering the store.
4. The staff adds value to the customer's experience without pestering.
5. The staff is passionate about helping their customers make a purchase.
6. The staff is driven to meet, and attempts to exceed, their customer's expectations.
The key for specialty stores to maximize their opportunities is to execute those last three fundamentals extremely well. If that doesn't happen employees are either perceived by customers as annoying, or they miss sales.
Here's my challenge for you. Rate your store/company on a scale of 1-10 for each of the seven fundamentals, with 1 being the worst and 10 being the best. Take your lowest number and come up with two or three specific actions (things someone can see or hear) that each employee can take today to improve that fundamental.
So let me ask, are you getting that extra 13% from the 70% of customers who want that better experience? They don't give it to us....we have to earn it!
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September 14, 2011
How to build a more effective team
The quality of your employee's work experience has a direct impact on the quality of your customer's experience. Give me five minutes shopping in a store and I can usually tell you how the staff feels about working there.
One of the key drivers of the employee experience is how the staff feels about their colleagues. That's why teamwork at the store level is such a vital component of a store's success. When a staff works well together and feels proud to be part of the team, and is lead by a customer-focused leader, the quality of both the employee and customer experience is superior to that of a weaker team.
The key to effective teamwork is leadership. It's leadership that makes teamwork an expectation. It's leadership that holds people accountable to contribute to the betterment of the team. It's leadership that is able to take a group of individuals and make them one.
To that end, here are four actions that will create a more effective team. You'll see that the list doesn't include a ropes course, walking over hot coals, or any other popular "team building" activities. It's the day-to-day actions we take that truly determine a team's success.
1. Stop drama in its place. Nothing tears apart a team more quickly - or more quietly - than drama. If people are complaining about someone, address it immediately. If two people aren't getting along, sit them down together and put a stop to it. I find two words are very effective for dealing with drama: STOP IT.
2. Regularly communicate your assessment of your team's teamwork. Share what you see are the strengths and areas of improvement needed in teamwork. The more you talk about your teamwork, the better it will be.
3. Don't enable poor performance and unacceptable behavior. Teams begin to splinter when the majority feels that one or more individuals aren't contributing to the team. Most employees can look past someone who is struggling in their role. What they can't accept is when those employees are allowed to continue to underperform, or act in a way that negatively impacts the others.
Of course you obviously can't discuss how you're working with/coaching one employee with the rest of the team, the team should be able to see that you're working with that person to create a stronger and more effective team.
4. Recognize and celebrate effective teamwork, behaviors, and results. It's important to not only encourage teamwork from your staff, but to recognize and celebrate it when you see it. Just as we coach individuals, be sure to call out the behaviors and actions you saw and heard that created the effective teamwork. Sometimes leaders label a successful day as "good teamwork" without being specific about why the teamwork was good, but the more we recognize positive behaviors and actions the more likely they are to be repeated.
So let me ask, how are you doing in building a more effective team?
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August 10, 2011
Inspiring retail leadership
I recently asked a client's store directors for examples of how they inspired an employee or their staff in the past week. Not to be clichéd, but they inspired me with their responses.
I'd love to share all of their examples, but since that would be a very long post I'll limit myself to three. These three really stood out to me because they are such great examples of action and not just talk.
This first one, from Anitra, I think is absolutely brilliant. Her store needed some big days to bring in their month, and it was vital that her team believed they could actually sell that much.
The first thing Anitra did was to ask an employee who had just had a huge sales day herself to help her in getting the team to believe they could do it. It's one thing to cheer people on. It's another when an employee can say to her colleagues, "I did it, and you can, too."
Anitra also posted a big note in the back room saying that she believed the team could achieve these stretch goals. Then she wrote down two strengths of each employee who was working that day to show why she believed each person could be successful.
LOVE IT!
Putting each employee's strengths up in big bold letters did a few things. First and foremost it showed that she believed the team had the skills to reach their stretch goals. Anitra wasn't just being a cheerleader. She linked the staff's abilities to the goals, and that gave them confidence.
Secondly, it kept the staff's strengths front and center for the day. They not only remained focused on what they could do, but they also leveraged each other's strengths throughout the day.
Last but not least, seeing their strengths written down for their peers to see gave each individual a sense of pride and made them believe in themselves.
I'd file this idea away to use on that last weekend before Christmas or some other big day. What an inspiring idea.
Another favorite was from Jusdean.
Jusdean was talking with a staff member about calling customers about a promotion at the store. The employee said that she thinks calling the customer is too pushy. Jusdean suggested that it isn't pushy since the customer willingly shared his/her phone number and contact information.
At this point I think many managers would have just encouraged their employee to go make the calls. Jusdean knew it was important that not only does an employee need to hear that it's okay to call a customer, she needs to believe it and know how to do it.
Jusdean asked the employee to shadow her as she made a call with the customer. Just as important, she told the employee her techniques BEFORE she made the call so the employee could watch and listen for them.
Jusdean made sure the employee saw that she tried to act like the customer was right in front of her in the store, not like she was making a telemarketing call. She also told the employee to listen for the way she presented the promotion to the customer with energy and enthusiasm.
After the call, the employee felt more confident and was able to make the rest of calls without apprehension. Jusdean also noticed that the employee was even more confident talking about the promotions with the customers in the store.
What I love about this example is that Jusdean made the time to show someone how to do something she wasn't comfortable doing. It can be challenging for a manager to slow down and teach instead of tell, but it's these teachable moments that allow employees to grow and develop.
Here's a similar example of inspiring people by leading by example.
So many managers talk about their staff having and using clientele books, but how many have and use them themselves? Sue, another of my client's directors, inspired her team by making eight sales in one day simply by contacting the customers from her client book.
Not only were the employees working that morning impressed, but as the night shift came in Sue's eight sales from the book were the talk of the day.
Again, anyone can try to inspire with words, but it's actions and results that make the biggest impression and deliver the most inspiration.
Thank you Anitra, Jusdean, Sue, and the other executives, owners, and managers who inspire me every week. You are truly extraordinary!
So let me ask, how will you inspire your team this week?
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May 6, 2011
Four initiatives to improve long-term results
Here are four initiatives to focus on right now for a positive impact on your long-term business results. I've written about these before, but I also keep talking with clients and readers who aren't making positive changes in these areas. I encourage you pick one or two and focus on it as a key initiative through the end of June.
1) Increase your buyer contact capture rate. Of course, if you're not measuring your capture rate then that's the place to start. For the rest of you, increasing your capture rate by 5-10% will result in more repeat traffic and additional sales. I believe aiming for anything below a 75% capture rate is usually a mistake, although your store may be higher or lower.
2) A concentrated effort to transition newsletter readers to Facebook. The other day I spoke with a retailer who has something like 2,000 newsletter subscribers and 150 Facebook followers. Be sure your "Like us on Facebook" logo is at the top and bottom of your newsletter, and try a targeted Like Us on Facebook campaign that rewards customers for Liking you. You might also consider using QR codes in the store so that customers with Smartphones can Like you right in the store.
3) Measure - or increase - employee average daily sale (ADS) and units-per-transaction. It doesn't matter if you have individual, group, or even no sales goals; not measuring the productivity of every employee is a lost opportunity. So is not having a sales goal, but I'll save that for another day.
As I work with specialty retailers I often see large productivity gaps between employees, and if an owner or manager hasn't measured that gap it is impossible to determine the most productive place to focus time and effort.
If you do measure and regularly use individual ADS and UPT data, consider an initiative to raise the company average by 5 - 10%. Use these numbers as a way to drive a strategic objective and not just to review past performance.
4) Set specific targets for any under-performing employee to achieve or else be asked to leave. I recently came across a great metaphor that applies here. Under-performing employees are like fish. If you pull the fish out of the refrigerator and it doesn't smell so good, you don't put it back in the refrigerator, come back and check a few days later to see if things have gotten any better. It never gets better! Or at least that's the case with the fish, and rarely does the employee improve without your assistance.
Either get the employee to where you need him/her to be, or promote him/her to customer. Probably 95% of our employees do a good or great job, but it's that other 5% that is leaving money on the table and losing customers to competitors. Time to set the bar. Either they clear it or they don't.
So let me ask, which initiative will you execute over the next eight weeks?
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April 26, 2011
Failing forward
A while ago a colleague and I worked together on what we both believed was a great opportunity. After a lot of hard work, especially on my colleague's part, the project turned out to be a bust. Failure is never fun. As matter of fact, it stinks. And while I was disappointed with the outcome I'm also glad I had the opportunity to fail.
Does that sound strange? Not if I see that as a result of this project I got to learn from both my colleague and a wonderful woman who works with him. I got the chance to refine some of the experience concepts I've been working with for years, and as a result my work will be better than before. Yes, our project failed but I know that in the long run we'll both benefit. Call it failing forward.
Some failure is actually good because it means you're trying new things. If you never fail it means you're either stuck doing the same old thing, which is never good for business, or your name is Midas.
Failures are only good if you learn from them and adapt your business going forward. Unfortunately, so many people fail backwards. After trying something new and failing they quit trying new things that might improve their business. As a result, they lose ground in their industry and their market.
I've seen retailers institute a new way to engage and sell customers only to fall back on their old ways if the new initiative doesn't create immediate results. Those retailers would be much better off if they gave the new way a fair chance. If it doesn't work, fail forward. Look for how to adjust and improve the approach.
When an event doesn't result in the expected traffic or sales some retailers take that to mean that events don't work for them. Maybe that particular event didn't work but it doesn't mean they should fail backwards and quit doing events altogether. Try failing forward and brainstorm three to five things to do differently next time.
It's absolutely true that my colleague and I believed that our project was worthwhile. It's also absolutely true that I would have appreciated earning what we had hoped on the project, but now I'm looking forward to earning on what I learned by failing forward. And the only way to get an ROI on failing forward is to learn from it and take action.
So let me ask, are you failing forward or backwards? Even worse, are you not failing at all?
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April 19, 2011
Moments of connectivity
In customer experience management we often talk about Moments of Truth. 'Moments of Truth' was coined by Jan Carlzon, who managed the Scandinavian SAS Airlines. He uses the term to mean those moments in which important brand impressions are formed and where there is significant opportunity for good or bad impressions to be made.
In retail, Moments of Truth occur in key interactions:
* On the phone
* When a customer enters the store
* When he/she is engaged by an employee
* At check-out
* Leaving the store
* Follow-up cards, emails, newsletters.
Together, along with store's products and environment, these moments add up to the customer's experience.
At the staff level in specialty stores we can drill it down another level to what I call Moments of Connectivity. Those happen by taking advantage of key interactions to connect with the customer in a meaningful way. A meaningful connection is one that develops trust, demonstrates a commitment to the customer, and leads to more meaningful and enjoyable experience.
Many of these key interactions overlap with the Moments of Truth, but there are also some additional engagement points that are vital to the Moments of Connectivity.
I believe three of the most important Moments of Connectivity are as follows:
1. First engagement. Sadly, many stores short-circuit right here by ignoring customers or opening with a "how may I help you." Fall short here and it's much more difficult to create connectivity later on.
The goal at this point is to:
* Demonstrate your priority to customer service/experience.
* Let your customer know you're glad he/she came into your store.
* Create a welcoming environment.
2. The transition from welcoming the customer to developing the relationship. Many customers want to be left alone, and that's fine. But more often than not, the customer wants to be left alone because of the quality of the first engagement. We control this more than we know.
At this connection we want to learn about our customer and the reason for his/her visit. There's a reason a customer comes into our store. Notice the word "reason," not "need." Too often we disconnect from the customer if they don't state a need.
Remember this: It's all about the customer, and their connection to our store, our products and the reason for the visit! Our questions and comments should be leading us to establish that connection.
Great sales associates don't small talk; they establish a relationship through meaningful conversation. They engage with purpose. They show sincere interest in their customer without making it about themselves. There may be the rare customer who is indeed interested in your foot surgery from five years ago, but it's safe to say that talking about yourself keeps you from establishing the connection with the visit.
3. Showing or recommending the product. The most successful sales associates establish a very strong connection here. They continue to learn more about their customer in relation to the products. They aren't shy with their professional opinion, but at the same time they never forget that the goal is to help the customer purchase the right products for them. It doesn't matter what the sales associate likes.
If an associate hasn't connected with the customer before this, the chance of truly connecting while showing the products is low. It's usually why these associates have a below average conversation rate.
I've seen a number of people who establish a number of wonderful connections with the customer and then disconnect when showing/recommending products. I'd have to guess there are two reasons.
They either didn't learn enough about the customer before showing/recommending products, or they have unresolved issues about being in retail sales. Don't underestimate that second one.
So let me ask, how are you doing in Moments of Connectivity with your customers? Are you connecting in a way that enables you to win the customer and maximize the opportunity?
Forget customer service, it's all about the connection and experience!
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April 12, 2011
Your exceptional day
There are two ways to have an exceptional sales day. For most stores and sales associates, an exceptional day results from a combination of traffic, weather, specials, and luck. We'll call it TWSL.
For a few stores and sales associates, an exceptional day is the result of being exceptional. While TWSL contributes to their results, the number one reason they have an exceptional day is because they've created it themselves.
Here are five actions to create an exceptional day:
1. Be determined. Most people say things like, "Let's shoot for $5,000 today" or "I'm hoping to do $1,500." Exceptional people use positive language. "We're doing at least $5,000 today" or "I'm selling a minimum of $1,500, but aiming for $2,500."
2. Focus on how. When most people wait around for TWSL, determined teams and individuals are focusing on how they're going to create their exceptional results. How will they drive in traffic? How will they develop that relationship with their customers? How will they engage customers with products? How will they enhance the sale so that customers love what they buy? How will they succeed?
3. Deliver an exceptional experience. Retailers who don't elevate their customer experience are destined to become an Amazon.com showroom. You create an exceptional day by making sure that every customer leaves your store feeling like he/she just visited the best store in town, maybe the best store anywhere.
How you do that varies from store to store, but what doesn't vary is it's the result of exceeding each individual customer's expectations. A lot more stores think they do this than really do. Be positive you are.
4. Stop asking for permission to be exceptional. Drop the "Would you" in your interactions with the customer. This is a huge opportunity for many of you.
Stop: "Would you like a bottle of water?"
Start: "Here's a drink for you to enjoy while you're shopping."
Stop: "Would you like to see that?"
Start: "You just have to see how beautiful that is on?
Stop: "Would you like me to get you a basket?"
Start: "Here's a basket to make your shopping easier."
5. Maximize every customer opportunity. Here's how. After a customer leaves your store, quickly rate yourself on a scale of 1-10 on how well you maximized that customer opportunity. Ask yourself:
* How well did I deliver an exceptional experience?
* Did I get the customer's contact information so I can add her to our community?
* Did I recommend and show the products that he might like to own?
* Did I get the product on her, or in her hands, so she can experience how wonderful it is?
* Who stopped the sale? The customer or me?
* And most important of all, did my customer just leave believing she just experienced the best store in town and maybe anywhere?
I guarantee that if you honestly score yourself a 9 or 10 with every customer you will indeed create your exceptional day whatever the TWSL.
Is it easy? Of course not. If it were, everyone would be doing it.
Is it possible? Absolutely. I saw it last week.
So let me ask, will YOU have an exceptional day today?
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April 6, 2011
Five ways to instill passion in your team
There is no doubt that passionate employees deliver a better experience and create more sales than employees who aren't. Can you, as a leader, instill passion in others?
We'll define passion as "a strong fondness, enthusiasm or desire." Obviously, you're not going to instill passion in someone who hates his/her job but as long as an employee is a good hire I believe a leader can instill passion. Not only can you, it's a key requirement of being a leader.
Here are five ways you can instill passion in your team this week:
1. Focus on what you can control. You may be a leader in your business but you don't control the weather, the economy, nuclear power plant leaks, crazy world leaders, or the outcome of the NFL talks. If I'm wrong, please introduce yourself.
Passion begins by feeling empowered and knowing you have the opportunity to be successful. When leaders focus on what they cannot control the staff slowly takes on a "why bother" attitude. When the focus is on what employees can control, they are much more likely to be excited about the opportunities that are presented.
2. Avoid negativity, but don't be Pollyannaish. Employees want to feel good about their work and their day. While most leaders are naturally positive, there are some who inadvertently put a dark cloud over their store. I can tell how positive a leader is without even meeting them just by meeting with their team.
The more leaders focus on the positive aspects of people the more passion the employees will have. It doesn't mean you don't point out when things go wrong or what a person can do better, but it's not positioned as a negative. Compare asking an employee "Why did your sales stink yesterday?" with "In spite of your efforts I see yesterday's sales fell short. Why do you think that happened?"
3. Praise employee efforts and recognize successful results. Never, ever, underestimate the impact of saying "great job" and "thank you." It's the fuel that feeds most people's passion.
Most of us don't praise as much as we think. Your employees aren't mind readers. If you're not praising out loud or in writing, your employees aren't receiving it. The higher you are in a company the more difficult it is to discover the opportunities to praise, but that praise also creates the most passion in people. There is a small minority of leaders that overpraise. Believe me, the staff knows it's not authentic and it has the opposite effect. Stop it.
4. Keep raising the bar. Complacency is a passion killer. Boredom can drive talented, and potentially talented, employees to mediocrity. Expecting people to be little bit better every day keeps the staff fresh, challenged, and will result in more success. That in itself creates even more passion and enthusiasm.
5. Be consistent. Most passion comes about when an employee's personal values align with organizational values. If the organizational, or at least manager's/owner's, values change the employee's passion is lost.
While priorities may change based upon the needs of the business, key areas of focus such as customer experience, customer satisfaction, and making sales should remain constant. The more consistent you are about what's important, the more likely your employees will embrace and be passionate about those very elements.
So let me ask, how well are you instilling passion in your team?
March 31, 2011
The 50-50 relationship
Make the most of your buying trips
The quality of the relationship between employees and leaders has a direct impact on the customer experience. I believe employees are just as responsible for their relationship with owners/managers as the owner/manager is. All relationships are a 50/50 venture. Sometimes we have to teach people how to carry their half.
How do you create a 50-50 relationship with a supervisor or subordinate? Easy, just follow these tips. (Okay, it's not really that easy, but every relationship, both inside and outside work, will improve when you follow these suggestions.)
1. Don't hold back. Healthy relationships are the result of open dialogue. Unhealthy relationships result from of lack of trust and poor communication. When there is no open dialogue or trust there's usually resentment simmering right below the surface, poisoning the relationship.
The only way to create a 50-50 relationship is to bring issues and resentments to the surface and deal with them. Obviously this has to be done in an appropriate and respectful manner. You can always ask a third party to assist in the conversation if needed.
2. It can't be personal. Our relationships are the sum of our feelings about another person's behaviors and actions. When we feel good about a person's behaviors and actions, we feel good about the relationship. We have a 50-50 relationship. It's when we don't like the person's behaviors and actions that the relationship breaks down.
For a 50-50 relationship, both parties need to be able to articulate what behaviors and actions the other person is demonstrating that are making them happy or unhappy. You can't have a 50-50 relationship if it's personal.
Here are a few examples:
Personal: "You're mean to me."
Behavior/action: "You always cut me off when I'm talking."
Personal: "You're condescending."
Behavior/action: "The tone you use when delivering feedback is the same a parent uses with a toddler."
3. Each person needs to articulate what he/she needs in the relationship. Unless the other person is a psychic we need to tell the other person what we need from them to create a 50-50 relationship.
A supervisor might need to tell the employee, "I'm sorry you feel my tone is inappropriate. I'm really not aware of when I do that, so would you please tell when it happens so I can change it?"
He/she might also ask, "In our group Take Five meetings you often openly challenge my suggestions and comments. I'd like to ask that if you disagree with me that we meet one-on-one after the Take Five."
An employee might say, "I need five minutes of your time at the end of a shift to talk through any issues that came up."
He/she could also say, "When you tell me what I'm doing wrong in front of others it undermines me with the rest of the team. Could we please have those conversations privately?"
4. Take responsibility for your 50%. My friend Steve always says that he's 100% responsible for 50% of every relationship. When a relationship isn't working most people focus their attention on the other person's 50%, but that's the part we can't change. We can only change our own behaviors and actions. 50-50 relationships are always the result of each party owning and working on his/her own 50%.
If your relationship with a supervisor or employee isn't 50-50, it is your responsibility to approach the other person and ask to meet to begin the path to a healthier and more productive relationship.
So let me ask, are your relationships 50-50? If not, what action will you take to move your half to 50%?
March 23, 2011
Making the most of your buying trips
This Daily Take Five is written by DEG partner Nancy Proman.
No matter what type of retail business you operate, going to market to purchase new merchandise is a vital part of ensuring a fresh and saleable inventory. Since going to market is both necessary and costly, it's important to put time and thought into planning a successful buying trip. So, here are a few tips to help you with the process:
1. Pre-market trip intelligence
Several weeks before your trip, set aside time to read your industry's trade publications to learn about latest trends, new vendors, and ideas that will spark your vision for the upcoming season. Make appointments with both current and new vendors so that your time will be used most effectively at the market. If possible, group appointments by category of merchandise so you can evaluate all similar items.
Use your point-of-sale system's ability to print specialized reports. This gives you the information you need to analyze the current performance of each of your vendors. Evaluate what is selling, style by style, and what percent of the merchandise was sold at regular price vs. marked down price. Note the gross margin by vendor, and also compare this year's (or season's) sales with previous seasons to get a better picture of each manufacturer's profitability for your business.
Additionally, compile a list of current open orders. Don't accept merchandise past delivery completion dates without some concession from the vendor (discounted invoice, free shipping, etc) and only if you believe that the merchandise is still saleable. This is especially important with more seasonal products.
Armed with this information, it's time to create a buying plan. Going to market with dollars designated by product category will help you make sound buying decisions. The more specific you are now, the easier the task when you finally sit down to write the orders.
2. Using your market time wisely
Once at market, walk the halls of the entire show, not just that section of it with your particular product category. Why look at product categories you're not buying? It's a great way to get a sense of universal trends you can then look for in your specific niche. Visit all of your vendors before you write any orders - this way, you can evaluate everything fairly. The vendors might not be happy with this approach, but remember, this is about your business, not the commissions of the sales representatives!
If allowed, take pictures of the items you might be interested in purchasing. There are two main benefits to this. When you do finally write your orders, having a picture will remind you of exactly what you are buying. After you make your purchases, create a photo album to show your staff and customers what merchandise will be available at your store in the coming months. You can also post it on Facebook to get your customers excited about your buy.
3. Making the buy
Once you have scoured the market and taken detailed notes and pictures, you are ready to sit down and create your stock assortments. When I was buying for my stores, I found this task easiest when I took one classification at a time. Since my buying plan provided a dollar amount by category, I knew how much money I could spend and still have my stores' inventories balanced.
When all categories are complete, group your photos and visualize how your store will look once the merchandise is in stock. This is also a great time to start thinking how you will be displaying your new inventory as well as your marketing and promotional efforts.
Buying trips are both exhausting and exciting; the success of your store depends on the decisions you make every time you go to market. Be prepared, make the most of your time, and you will undoubtedly reap the benefits of your hard work
March 16, 2011
Is your perspective hurting or creating sales?
While in a store I overheard a salesperson talking with a customer about some newly arrived products. She told the customer that she loves the design but hates the new colors.
A bit later, another salesperson showed a different customer the same products and talked about how much she looooooooved the new products and colors. (That was exactly how she said it.)
Guess which of the two customers ended up being more interested in the new products? You're right!
I bet the first salesperson isn't even aware that sharing her perspective influenced her customer and may have cost a sale.
Does that mean we shouldn't share our perspective? Absolutely not. I think your point of view is extremely important since you are an expert on the products you sell. But you have to use that perspective in a way that will add value to the customer's shopping experience.
Here's an example. I met a woman who just loved a particular line her store sold. She was so passionate about the line that she showed it to just about every customer she met. It didn't matter what you came in for, she found a way to get most customers to look at this line.
She wasn't pushy or obnoxious. If her customer was in a hurry she didn't bring it up. But when she had the opportunity, she didn't miss showing it. She showed the products with such energy and joy a customer couldn't help but be interested.
But here's what made this woman so successful. After sharing her perspective she then discovered the customer's. She understood that it is the customer's perspective that ultimately matters. She would ask questions like "What do you think?" or "Isn't it beautiful" or "Does this look like something you would enjoy?" If the customer said "yes," she would then ask more open-ended questions to discover exactly why the woman liked or didn't like the products. With those answers, she would find the right product for her customer.
Even more important, she listened to the customer's answer and then used the information. I know that doesn't sound earth shattering, but some salespeople don't listen since they're too busy talking or thinking of talking.
Here's my challenge for you this week. Practice sharing your perspective to engage a customer with one or more of your favorite products. Then make that transition to discovering your customer's perspective by asking both closed and open-ended question. And last but not least, take what you learn and recommend the best product for that customer based on their perspective.
March 10, 2011
Assorted musings from the road
Two weeks I was checking into a hotel and noticed that the front desk employees were all wearing big buttons with different numbers on them. One person was wearing 26, another's button read 52, and the third was wearing 94. I approached 94 in case they were displaying their recent mystery shop scores.
When I asked about the numbers the employees sighed almost in unison, and 94 told me the numbers were based on the 100 things that make their property unique. Each employee then begrudgingly shared his/her number.
I like the idea of getting the employees to engage the customers on the uniqueness of the property, but very few people feel good about wearing company buttons. I'll never forget the time I asked a store employee about the button he was wearing and he replied, "It should just read I've got a loser job." I don't think he had a loser job, but the button sure did nothing for morale.
I'm not totally anti-button (although I'm close), but it was a great reminder that our employees need to feel good about the customer engagement and marketing programs we create. I'm sure someone at this company's corporate office thought this number campaign was brilliant, but it didn't look so smart when #26 looked like she was being tortured as she shared her line on what made the property unique.
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One way we can differentiate ourselves in the market is with premium offers and services. One of the fastest ways to disappoint, or even lose, a customer is to fall short in these areas. Sadly, there are no points awarded for effort.
Here's an example from the road. For the last few days I've been staying at the Venetian hotel in Las Vegas. One of the premium amenities is an in-room printer. That's a big deal for a road warrior like me. Now I can print client documents and boarding passes right in my room. Well, I could if the printer wasn't out of ink.
So now I'm disappointed that the printer doesn't work even though I didn't even expect a printer in my room. There are no points for effort.
What are some of the premium or unique things that you offer?
Free gift wrapping, or offering to carryout a customer's purchase? You can't be too busy to ask.
Free drinks? Either you do it or you don't, but if you do and you don't offer a beverage to every customer you could lose one of those customers who isn't offered something to drink.
It's almost unfair that you could lose a customer because you didn't do something once that practically every other retailer doesn't bother to do at all. Then again, we score the points and they don't. Remember, there are no points for trying.
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A shuttle driver at the Doubletree hotel in San Antonio totally exceeded my expectations. I was told at the front desk it would be a twenty-minute wait for the next shuttle to the airport, but the driver who was standing there took the initiative to take me immediately since it was only a five minute ride. Talk about making my day!
Here's where it got strange. The front desk clerk actually questioned him in front of me about whether he really wanted to take me to the airport. Hello!!! I'm standing right here. One employee is trying to deliver a great experience and the other one is trying to talk him out of him it. You can't make this stuff up.
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I love when retailers promote in their newsletter and Facebook the things they do to make their stores a great place to work. Daily Take Five reader Tanya Burmaster, owner of baby store Snuggle Bugz, recently posted this on her Facebook page.
Just heading out to make a surprise pancake breakfast for our staff meeting at the Burlington store this morning ... should be a blast! :)
Now check out a few of the responses:
Lisa G. I wish I worked for a company that did that for its staff! :)
Nicole G. I'd like to work at Snuggle Bugz. Sounds like a great place to be employed!
Oakville Moms. You guys are so nice to your staff! Great job!
Of course Tanya couldn't let that one slip by. She responded:
Well, we are hiring! If you know anyone that is looking for a job have them check out our website.
Imagine all of the positive impressions this post made. The more you share about your store and your fabulous team, the stronger the connection you'll make with your customers. Well, within reason.
Have a great week, and I hope to see you on the road.
March 2, 2011
The hesitation of delegation
Not a week goes by that a manager, owner, or executive doesn't tell me that he/she needs to delegate more to the staff. While I'm sure that's the case, let us never forget that the road to hell is paved with good intentions.
Most people who need to delegate more talk about it but rarely actually take the action. Why? The default is that they don't know how. I don't buy that. There's very little involved in delegating. The real issue is that they don't necessarily understand why they're not already delegating more.
Here are four reasons people hesitate to delegate.
1. They like or need to be in control. Not to go all Dr. Phil on you, but the majority of people who struggle to delegate have trouble letting go. There's a connection to them between doing and controlling.
I always remind managers that their job title doesn't change when they delegate. While they might not be able to control the task they've delegated, they're still in control of the overall store or business. There's a lot of power in letting go.
2. They're very particular about how things are done. Maybe too particular. Years ago I coached an owner who always cleaned the bathroom herself. She insisted that none of her six employees did it right. Truthfully, if I were one of those employees, I'd make sure to not do it right since I knew the owner would clean it herself. The real issue was that they didn't do it her way. The staff might not have done it the exact way as the owner, but their way would have also resulted in a clean bathroom.
Managers need to focus on the outcome and let employees find their own ways of doing tasks. It doesn't mean you can't teach a person how you do a particular task, but then let go and let the employee discover what works best for him/her. Who knows, he/she might even find a better way of doing it! Let it go.
3. They're not teaching enough. One big reason managers don't delegate is because they're the only one who knows how to do something. It is easier and faster to do something yourself than to teach another person how to do it, but when you're the one doing all the tasks then it's not really easier, is it? Taking the time to teach others is like a financial investment. There's rarely an immediate payoff, but you'll definitely reap long-term benefits.
4. They choose not to. I think this is biggest reason most people don't delegate. When I was a manager of a Sharper Image I liked to do the cycle counts. I told everyone it was because I needed them to be accurate, but deep down the truth was that it was something that I could do that kept me off the floor. It was my choice. Of course, I would have been a much more effective leader being out of the floor coaching my people than in the back room counting products, but I hadn't learned that particular lesson just yet.
You can't delegate success. As leaders, we need to spend our time on high-payoff activities and delegate those tasks that aren't as high-payoff. Sure we may like doing those other tasks, but success comes from making the right choices that lead to success.
The more a manager delegates the more time he/she has to lead, coach their team, and work with and learn from the customers. For owners it also means spending more time finding new products and building their customer community.
Remember this: If a store is going to succeed, the manager or owner has to work on what needs to be done, not what he/she wants to do.
As you go through your day, just keeping asking yourself, "Should I be the one doing this? If not, why am I?
February 24, 2011
Simply brilliant
Simplicity is a competitive advantage. Most people overcomplicate things, and when they do they lose their effectiveness.
Here are some examples I've seen and, sadly, even played a part in:
* An 18-page performance review. You know you've complicated things when your thesaurus runs out of words to help you.
* An 88-slide fiscal strategy PowerPoint for a small retail chain. By slide 36 I knew it was going to be a bad year.
* A checklist for a checklist. You can't make this stuff up.
* I was once invited to a meeting to prepare for a planning meeting for a meeting. I declined. I was too worried I'd be confused about which meeting we were talking about.
* A store's fifteen-steps of the sale. I always figured by step eight the salesperson either quit on the sale or just told the customer to take it or leave it.
It's human nature to want more. If that weren't the case Costco wouldn't have a business model and Dr. Drew wouldn't have a television show.
It's not easy to be simple.
It's easier to write a paragraph than a sentence.
It's easier to make the store look great by making twelve floor moves than three, but three gives you more time with the customer.
Why can't a performance review or a strategic plan be one page? It might be hard to create but it would be a lot easier for everyone to understand and execute.
Don't confuse "keeping it simple" with "dumbing it down." People know the difference. Dumbing down is not how you win friends and influence people.
Of course you'll be ineffective if you're too simple, but that's rarely the problem. Especially for owners, executives, and managers.
The simplest way to keep from overcomplicating things is to keep asking yourself, "Is this simply brilliant?" If it's not, you need to determine what has to change and/or be removed.
Remember, simplicity is a competitive advantage.
So let me ask, can you be simply brilliant today?
February 17, 2011
Retail experience required - or not
The number of retailers who require job applicants to have retail experience always amazes me. I particularly don't understand why it's so essential for a part-timer or temporary employee to have retail experience. In my experience, unless you're hiring for a management position, it's often easier to hire and teach people who don't have retail experience.
A storeowner once told me why she only hired people with retail experience. "This way people understand they have to work nights and weekends, they have to stand on their feet all day, and they have to learn our way of retailing."
Wouldn't it be easier to simply tell people they will have to work nights and weekends, and stand on their feet all day? This way, new employees won't have to unlearn all the bad habits they've fallen into while working for other retailers who don't expect as much as we do.
Here's what I require of someone I'm hiring to work at a specialty store:
1. Be a genuinely nice person. Is anything else more important?
2. Care about people. You can teach products and processes but you can't teach someone to care about others. Don't confuse this with people who say, "I'm a people person." Tell me what you've done to show you care.
3. Be happy. It's amazing how many unhappy people are hired to work in stores.
4. Smile. Why would you hire someone who doesn't smile during the interview? Happy people smile, especially in a job interview.
5. Enjoy making other people happy. People who find joy in other people's happiness deliver great customer experiences.
6. Be confident but not cocky. The difference is in number five. Never be afraid to hire confident people. Confident people sell more.
7. Play well with others. Every time you add an employee you're changing the team's dynamics. Being able to work well with colleagues is a key attribute.
8. Love, or at least be truly interested in, the products you sell. Always ask applicants what they like about your store and products. If they can't answer, move on. They at least should have learned about them before the interview.
9. Love to learn. This is often the difference between good and great salespeople. I want people who want to know more and be better every day.
10. Want to work at my store. There's a big difference between someone who wants a job and someone who wants to work specifically for you.
11. Sell during the interview. You can call the open position anything you want, but if you work in a specialty store it's a sales job. Even good cashiers sell. If a candidate can't make an attempt to selling him/herself in the interview, this may not be the right person for the job.
12. Be available when I need you to be. The job might require nights and weekends, but if an applicant has the first eleven requirements I might just find a way to hire him/her regardless of availability.
As you can see, these are tougher requirements than simply having worked in a store. That's why I believe we should never limit ourselves to applicants with retail experience.
So let me ask, what are your hiring requirements?
February 2, 2011
Tempted to text
During a recent shopping expedition I couldn't help but notice the number of store employees using cellphones while on the floor. I wondered if these companies allow their employees to use their phones at work, or if these folks were just not following company rules. I did ask one person if her company was okay with her checking email instead of paying attention to her customers. Oh, if looks could kill!
So I instead of running the risk of being hit by a flying cellphone, I decided to ask the readers of My Daily Take Five instead. Here's what they said.
1. Do you allow employees to carry their phones with them while on the floor?
Yes 20%
No 70%
Other 10% (Mostly in case of emergencies)
2. Do you allow employees to access their phones while on the floor?
Yes 15%
No 75%
Other 10% (Mostly in case of emergencies.)
3. Do you have a written policy on cellphone use at work?
Yes 55%
No 45%
4. How many locations do you have?
The size of the organization doesn't make much of a difference to whether or not cellphone use is allowed. Not surprisingly, multi-store locations are more likely to have a written policy.
Most readers are pretty firmly against cellphone use by employees.
"Cellphone use on my clock is strictly prohibited. They must be turned OFF upon arrival to work and all purses are left in the office to help prevent employee theft."
"We would like to allow the use, but invariably they end up texting, gaming, or on Facebook and customer service suffers or is ignored completely."
A few people are fine with it.
"I don't mind if my employees access their phones as long as there are no customers in the store."
"In today's world cells are an integral part of life. They are used in lieu of a watch. Kids and elderly parents need just one number for emergency contact. Quick texted messages are less disruptive than phone calls to/from the store. But phone conversations are to be taken off the floor. If phone isn't a disruption/ doesn't impede service, is ok."
One store manager even leverages the phone for good service:
"We let employees take pictures from their cell of product to email customers with new merchandise or product that they think their customer is interested in."
So what's the right answer? Should or shouldn't you allow cellphone use at work?
I'm torn on this one. Part of me says that we're all adults and we shouldn't have to have a rule. Shouldn't we be able to expect our employees to do what's best for the customer and the business? I wish it were that easy.
Here in Massachusetts, the legislature recently passed a new law prohibiting emailing or texting while driving. Not even at a stoplight or in a traffic backup. As a smartphone junkie, going cold turkey has been extremely difficult, I'll admit. I've had a few slips, but I'm doing my best!
The temptation to text, email, and Facebook is very tough to overcome.
I can't say what's right or wrong for your business, but let me share what I would do for my business. Again, it may or may not work for you.
First, I would have a written cellphone policy that is reviewed and signed by the employees annually. It would be short and to the point, spelling out specifically what is and is not allowed. I knew it was dumb and dangerous to text or read email while driving way before the state outlawed it, but my behavior only changed when the law did.
Next, I would have to go with a zero tolerance for phone use on the floor except in an emergency. I wish I could say otherwise, but I do think most people will check their phones when they shouldn't. We see it all the time in our daily experiences. Not long ago I encountered a Starbucks barista checking his phone while taking my order. The customer and his/her experience has to be our priority.
It's fine with me if people use their phones in the back on break and at lunch. As a matter of fact, I might even consider putting a computer in the break room for employees to use during break and lunches. A number of my Daily readers didn't agree with me on this one,
I would also implement a two-strike policy. Strike one, you're on probation. Strike two, you're terminated. I know that sounds harsh, but in reading my reader comments it seems that many of you are having a challenge with people following your policy. That bothers me. Either people follow the rule or they don't. Sadly, if there are no consequences for actions then some percentage of people won't follow the rules.
At the same time I would be extremely lenient when asked by an employee if they can check email. I know we live in connected world, but at the same time we can't afford to let anything distract us from winning the customer, maximizing the opportunity, and creating an incredible store experience.
Yes, we live in connected world, but the most important connection we can make is with our customer, at every opportunity. The rest can, and will have to, wait.
January 26, 2011
Stopping the deal and low price mentality
Last week I sent time visiting and secretly shopping retail stores, insurance agents, and other companies. I feel like I'm in an episode of Undercover Boss, except I'm not their boss.
One common issue I'm seeing is that of employees assuming the customer doesn't want to spend much money. In almost every interaction I've been told about a sale and shown the cheapest products. I would ordinarily use the words "least expensive," not "cheapest," but that's the word the salesperson used. I even had one person tell me to go buy from their competitor to save money! You can't make this stuff up.
This belief that shoppers ONLY want a deal, or to buy the least expensive product available, has to have a negative impact on sales. Yes, some consumers have traded down the last few years. Yes, some consumers do want a deal. The key word is some. Not all.
I understand that a number of customers do ask for deals and what's on sale. They're a vocal group by nature. They stand out because the rest of the customers don't walk in and announce they're willing to spend whatever it takes to buy what they like. I call them the silent majority.
I firmly believe that we owe it to our customers to assume they want to buy the best product that meets their needs or fulfills their desires. Period. It's a disservice to do otherwise.
This is why you should always recommend products to your customers using what we call the Butcher Rule. Let me remind you about the Butcher Rule and how to apply it.
The Butcher Rule is to always show the best product that meets the customer's needs.When you walk up to a butcher counter and ask the butcher what's good he will never reply, "The ground turkey is great today." Instead, he will tell you about the filet mignon or prime rib.
Of course, if a customer is looking for chicken the butcher won't suggest a filet since that would not meet his/her needs. But the butcher might recommend the free-range chicken that listened to opera instead of the chicken that was penned up and didn't get to enjoy any tunes before meeting her demise.
The key to applying the Butcher Rule is to ask the right questions and then use that information to recommend the best product without giving your customer sticker shock.
Say you run a store that sells nothing but wallets. You carry wallets from $5 to $5,000. If a customer comes in and is looking for a wallet you aren't going to show her the $5,000 wallet first thing.
Instead, you want to discover what kind of wallet she currently has and what else she has owned. You also want to know if she is looking for something casual or something for a special occasion. You want to know if there are any particular brands and styles she likes and appreciates.
Based on her answer you might show your customer a wallet in the $400 range. If she asks, "What else do you have?" take one step down. As a result, your customer might leave your store very happy with her new $300 wallet.
Chances are, if you had started with the $5 wallet your customer would have walked away empty-handed. She might not have sticker shock but she might have salesperson-missing-the-boat shock. Not understanding a customer's needs and showing too inexpensive a product can be just as off-putting as showing a product that's far above the customer's budget.
As experts, it's our role to match each customer with the right products. The only way to do that is to know as much as possible about both the customer and the product. I believe most customers get sticker shock because the salesperson didn't learn enough about them to show them the correct product.
I'd like to encourage every reader to use the Butcher Rule today. No more trying to sell up from the least expensive item or always leading with what's on sale. Instead, talk with your customer and then sell down from the best product that meets his/her needs or desires.
So let me ask, are you committed to the Butcher Rule? As Sam the Butcher says, "Never suggest hamburger to a customer who wants a steak."
January 21, 2011
People persons and great customer service
How often do you hear from job applicants, "I'm a people person"? I don't know about you but I always think to myself, "Of course you're a people person. Would you really apply for a retail job if you were a string bean person? Or a bug person?" I'm okay if someone says they really like to meet new people but "I'm a people person" is nothing but a canned line with very little substance.
When I started working with companies instead of individuals I discovered another canned and overused line. Whenever I have an introductory call with a potential client the owner or executive will inevitably tell me, "We give great customer service."
I always reply, "That's great. What do you do that demonstrates great customer service?" The answer is usually about some form of waiting on customers. I'm not trying to be negative, and I'm sure the owner or executive sees that as great service, but all retailers give at least some form of customer service.
Not everyone's customer service can be great because if everyone's customer service is great, great would be the norm. Follow my drift? People who give great customer service can describe why their customer service is great.
When I was talking with a potential client the other day I asked him what made his company so special. I thought to myself, here comes the great customer service line. I was pleasantly surprised when he replied, "It's our company goal to exceed every customer's expectation. We may not always achieve it but we never stop trying."
Think about the difference. "We give great customer service" versus "We try to exceed every customer's expectation." Imagine two stores that sell the same products and are located next door to each other. One of the stores gives great customer service; the other strives to exceed their customer's expectations. Which store do you think delivers a better store experience? Where would you rather shop? Seems like a slam-dunk to me.
How does a retailer exceed a customer's expectation? The particulars are different for every retailer. Whatever those particulars, exceeding a customer's expectations almost results in a shopping experience that is fun, easy, enjoyable, and results in a customer owning the right products. It inevitably it comes down to one thing: people. Not just regular "people persons," either. It takes a staff that is empowered, engaged, and proud to represent the company.
Here's an exercise your staff can do together or an owner/manager/salesperson can do him/herself. Take a sheet of paper and draw a line down the middle. On the left side, identify the actions you take today to exceed a customer's expectations. The longer the list the better!
On the right side, come up with some new ideas of ways to exceed your customer's expectations. Be realistic. Make them actionable. Identify those you can put in place as soon as possible. I guarantee that setting a goal of exceeding every customer's expectation will absolutely impact both the top and bottom lines.
As we say at the Retail Contrarian. . . Forget customer service. It's all about the experience.
January 13, 2011
Are passion and energy requirements for the job?
Is having passion and energy a requirement to be a manager?
If you're answering the question out loud I can't hear you, so let me take the liberty of debating both sides of this question.
Yes, passion is a "must" for a member of management. The energy level and enthusiasm employees have for the products and the customers almost always mirrors that of the leaders.
How can a company ask employees to passionately engage customers and create sales if the manager doesn't demonstrate the same behavior? One could argue that leaders must be even more demonstrative than the staff. Even in owner-operated businesses a manager's passion, or lack thereof, directly impacts the team. Passion must be a job requirement.
Now the other side of the coin...
Absolutely not. There is no way you can hold people accountable for passion. What does passion look like? How can you look at person and say they're passionate or not? How are you going to interview for it? How you going to measure it? Do you actually have a "passion" section on the manager's job description and performance review? I doubt it.
We always talk about the importance of passion in leaders, but I wouldn't even know how to coach someone to be more passionate. And is passion a real indicator of true performance? I've seen a number of managers who are passionate about their job but it didn't make one bit of difference in the end results. And isn't that what really matters?
So what do you think? Which side are you on?
I believe both sides are correct. A leader's passion and energy is vital to a store or company's success. At the same time, passion is a quality that really can't be measured. If you can't easily define and measure passion, you can't say it's a requirement.
What you can expect of a manager is that he/she (and that manager's team) demonstrates specific behaviors and actions with every customer. You can define the expected behaviors and actions. You can expect them. You can see them. You can measure them. They either happen or they don't.
That said, I'm convinced that the manager's passion and energy level will determine whether the team wants to do what's expected of them, and if they actually do it. A high performance team starts with a high performance manager.
So yes and no, passion and energy is a requirement to be a successful manager. Aren't you glad I cleared that up?
Here is the key takeaway. I want to hire and promote people I believe have the passion and energy to be great leaders, and what I expect - and reward them for - is their team's ability to deliver what's expected of them. Believe me, they do go hand-in-hand.
So let me ask, do you have the passion and energy necessary to be a great leader?
January 5, 2011
The unmerited merit raise
In most companies every employee is eligible for an annual merit raise. Usually the owner or manager goes through some strange process that has nothing to do with either merit or performance but always ends up at an increase of base pay between 3% and 5%. It makes you wonder if someone is spinning some Wheel of Compensation that only has numbers between three and five on it.
I remember one year meeting with an employee who recommended that all her managers be given a raise of, yes, you guessed it, somewhere between 3% and 5%. This included two managers that she had had problems with all year.
When I asked why she was recommending that under-performers receive a merit increase she told me that everyone expects a merit increase.
I reached for my dictionary and looked up the word "merit."
Merit: something that deserves or justifies a reward or commendation; a commendable quality, act, etc.
Did these two employees deserve a raise? No. Did their efforts and performance justify being paid more money? No. And why were we giving these two employees a raise? It wasn't because the employees were expecting it, although they were. It was because the manager didn't want to deal with the fallout of not giving someone a raise when they expected one.
Universities talk about grade inflation. This is pay inflation. Pay an under-performing employee more money and all you have is a wealthier under-performing employee.
Merit increases need to be based on past performance. Period.
This also means that your best people deserve a larger share of the available increases than do the others. Oh wait, we can't do that because it might upset people! But isn't that the same excuse that has us paying under-performing employees when we shouldn't?
Even worse, we can't give top-performer Barbara Bucks a large annual increase because she'll be making more than long time average-performer Sandy Standsaround. Now that so-called reasoning makes me want to pull out my hair!
Top performers deserve larger raises than do average performers. If, over time, that adds up to being paid more than other employees, so be it.
Average performers need to be paid more than poor performers, especially since you should be moving poor performers out. Or as my client and friend Todd says, "Promote them to customer."
It's not easy to pay on true merit rather than giving everyone an annual increase, but that's what good leaders do.
It's never easy to tell an employee they're not getting a raise, but that's what good leaders do.
It's really hard to tell an employee they're not getting a raise if you've not had any of those difficult one-to-one conversations. Do the right thing and you'll get those conversations started, and next year the employee can get one of the larger raises!
So let me ask, how will you decide merit increases in 2011?
Read more postings at Doug's blog Retail Contrarian here.
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