Fun with Fleener on his retail blog

    by Doug Fleener

Sign-up for our free weekly newsletter The Weekly Retail Experience.


January 20, 2010

Aligning Expectations with Your Actions

Last Thursday's Daily Retail Quote was one of the most downloaded and printed quotes in quite a while.  The quote was, "A leader leads by example, whether he/she intends to or not."  That clearly resonated with many of our subscribers.
 
As leaders, we know we lead by example, but we often think it is a timely or conscious decision.  This quote reminds us that we're always leading by example. It's not something we turn on or off.  Instead, it is something we're either aware of or not.
 
Any leader who tells his team, "do as I say and not as I do" is only fooling himself. Your team determines what's important by a combination of your actions and expectations.  If the two aren't aligned, it communicates a lack of commitment and, not surprisingly, your employees aren't committed either.
 
Let me give you an example.  When I was at Bose, a requirement of working in the store was to do a scripted product demonstration at the end of the Bose Music Theater show. One day I was watching one of my employees do a show and I noticed he left out part of the script.
 
I pulled him aside and asked why he didn't do the script as written.  Much to my surprise, or maybe I should say horror, he said that I had been shortening up my script so he figured he was allowed to do the same.  Yes, I had deviated from the script when I had other work to do but I never realized that anyone noticed.  I learned my lesson on that one.
 
Aligning a leaders expectations and actions are especially important to the customer experience.  A great customer experience is the result of many small actions, and if employees see a manager or owner not doing what's expected they will internalize, either consciously or unconsciously, that these small actions aren't important. The opposite is true when employees consistently see a leader do what is expected.
 
Do they see the leader warmly welcome customers when they enter the store?  Do they hear the leader ask a customer a series of questions before they show a product?  Do they see the leader always come out from behind the counter to present the customer their purchase?
 
How about you? Are your actions and expectations aligned?  Remember, a leader leads by example, whether he/she intends to or not.
 

January 13, 2010

Have You Told Them How Good They Are?

At the end of Sunday's New England and Baltimore football game (well, actually it was more like a pounding than a game) the television commentator said that the Baltimore coach wouldn't have to work as hard this coming week as he had the previous week. It seems that Coach Harbaugh spent an awful lot of time telling his team how good they were, and clearly the 33-14 final score proved his point.
 
It reminded me once again that good storeowners and managers need to tell their teams that they're good at what they do.  Most owners/managers fall into one of three categories.
 
Some owners and managers constantly let the team know how good they are but the performance doesn't necessarily reflect that.  At first you might think it's because the team isn't as good as the owner/manager says it is.  While that can certainly be the case, more often than not it's because the owner/manager isn't expecting enough.
 
I know I keep saying this but I'm going to say it again - there is a direct correlation between high expectations and specialty store results.  People too often confuse mediocrity with high-performance.  Managers and owners need to motivate their team to keep reaching for higher performance by nailing the basics of an extraordinary experience with every customer.
 
There is another group of owners and managers that have a really good team but never let them know.  I once worked for a manager like that. He was a nice guy but the man never, ever, praised anyone or gave any positive feedback.  He didn't give any developmental feedback of any sort. While this manager/owner may expect more from their team than the first type of owner/manager, the staff will never know it because no one ever tells them.
 
The best owners and managers tell the staff how good they are because, well, they are. They've set daily goals and the staff is either achieving them, or at the very least they're taking the actions necessary to reach the goal.  Everyone on the team knows why he/she is being praised.  Usually it's a combination of both team and individual focus and development.
 
I'm big on telling people how good they are because they're demonstrating right behaviors.  This way, even if the results right now aren't always what we want to see, they eventually will be if the staff keeps showing that they're taking the actions necessary to get there.   It's a big old wheel that the leader has to keep spinning.
 
Here's what I want you think about.  In what area could you walk up right now and tell your team how good they are?  Wait; before you head off to do this, what do you think they will say?  Okay, now ask them.  If their answer matches yours, you're right on the money.  If they don't match, think about what developmental work you should be doing with the staff.
 

Go ahead; tell your team how good they are.  I'm sure they've earned it.

 

January 6, 2010

Your 2009-2010 Difference - Part Two

Last week I described the top five things the retailers I've worked and engaged with in 2009 learned and developed throughout the year.  I hope you invested the time to identify your top five so that you can leverage them in 2010 and beyond.
 
But as I noted last week, it's just as important to see where you fell short, maybe missed an opportunity, or didn't take action when you should have or could have.  I know a few people won't look at these shortcomings because it makes feel like they failed.
 
I think it's only a failure when you don't address areas that need improved.  Call it a delayed reaction!  It's all perspective isn't it?
 
So here are the top five things the retailers I've been engaged with this year need to improve on as they move into 2010.
 
1. Be more strategic in how they run their businesses.  While this is true for both high-performing and struggling retailers, it's vital for those stores who aren't doing as well as they hoped.  I still see too many companies that are in a slow death spiral and no one is working a well-defined plan to reverse it.
 
2. Address a major problem that is having a negative on the company and results.  Most of the time this is a person, and sometimes it's a family member.  Problems rarely go away on their own, no matter how much you try to avoid them or sweep them under the rug.  It's not fun to deal with people issues but the pain of not dealing with them is a whole lot worse.
 
3. Become more aggressive in capturing and using customer contact information.  Maybe obsessive is a better word.  If you're not obsessive about building and adding to a customer database, you're not maximizing your opportunities and leaving money on the table.
 
4. Hold people more accountable.  Way too many managers and owners let employees opt out of what are supposedly required activities and behaviors.  If there's no accountability and consequences then those behaviors and actions are not required, they're optional.  Rewarding and recognizing people is also important to maintaining high expectations and high performance.
 
5. Continue to challenge the staff to become even better.  At the end of every month (or quarter) you should be able to review with every employee how he/she has grown and developed.  A lot of people do this with under-performing employees, but they don't always push the good or great employees to become even better.  It's amazing how great people can be if leaders encourage and lead them.
 
What about you?  What can you learn from in 2009 and do better in 2010?  Again, I encourage you to write them down and share them with someone else.  Even more important, determine what one or two actions you'll take on each one to ensure you create the success you deserve.
 
So let me ask, as you close the books on 2009 are you ready to parlay that into an extraordinary 2010?

December 30, 2009

Your 2009 Difference - Part One

Everywhere you turn this week you'll see stories about 2009. The "remember when" of top news stories, who died, who was arrested, politics, and just about any other topic from Tiger Woods to the economy.
 
Personally, I don't read or watch these stories since I've already lived through it once. Why spend time on something when you already know the outcome?
 
What's more important is to review your own story of 2009.  That's the one that can make a positive difference in 2010.
 
Most people learn and experience more in a year than they ever realize.  And therein lies the opportunity.  By taking an inventory of how you developed as a leader, manager, employee, parent, spouse, and friend, you're able to see how you have grown in those areas.
 
Just as important is seeing how you fell short, missed an opportunity, or didn't take action when you should or could have.  Many people can't do this because they internalize it as failing, but it's only failure when you don't try to learn from it.  It's better to see whatever it is as a shortcoming that can be corrected and leveraged in the coming year.
 
I have worked with and engaged with a number of retailers over the last year.  If I had to collectively sum them all up, these are the top five things these individuals learned and developed in 2009.
 
1. To create high performance you must have high expectations.  As simple as this sounds, most people have high aspirations with little expectations.
 
2. Fix or remove under-performers.  I can't tell you the number of times a client or reader told me they wished they had fixed or removed a problem employee sooner.  No one ever told me they took action too quickly.
 
3. You have to be responsible for your own traffic.  This was the year that a lot of specialty retailers figured out that hoping for walk-in traffic is not an effective strategy. Retailers who worked hard this year in communicating with and engaging this customer base on a regular basis were rewarded this past holiday.
 
4. Daily success comes from developing and motivating employees every day.  Not a week or monthly meeting, not a memo or an email, but leaders leading at every opportunity. Not surprisingly, these are the staffs that performed at the highest level.
 
5. It's always, always, about the customer.  This isn't something these retailers learned this year - it's something they've always known and have continued to put into practice in spite of the economy and other challenges.
 
How about you? What are the top five things you learned and experienced over the last 364 days?  Invest in yourself and write them down.  Even better, write them down and share them with someone else. (I'd love to hear them.) Celebrate your list as you carry these lessons and personal growth in to 2010.
 
Next week we'll look at the areas that retailers fell short, and what they can do to correct and benefit from in the year ahead.

 

December 23, 2009

That "Crazy" Lady with the Return

I will never forget the "crazy" women who came in to The Sharper Image store I was managing. It was the day after Christmas and as the woman, accompanied by her college-age daughter, made her way towards the counter you could see she was not happy.

 

I met her before she made it to the counter and asked how I could her help her. She demanded to see the manager. When I told her I could help her she asked if I was the manager. I told her no, but I was the manager on duty. She looked at me with disdain and said, "I guess that will have to do."

 

She informed me that we had "ruined her Christmas" since the gift she had bought from us for her son didn't work when he plugged it in. She demanded to know what I was going to do about the ruined Christmas. Of course I apologized and told her how sorry I was that the product didn't work but I would be happy to replace it. She looked at me and said, "That's fine but I asked what you're going to do about the ruined Christmas."

 

I was pretty speechless. Other than replacing the product and apologizing I wasn't sure what else I could do. Long story short, she stomped out of the store with her new product but angry because we couldn't fix her ruined Christmas.

 

After she left I was standing on the floor talking to one of the sales associates about the crazy lady who wanted me to fix her holiday, ruined because of some defective product. While we were having a good laugh about the lady the daughter walked back into the store and approached me.

 

She said to me, "I want to apologize for how my mother just acted. Usually she's a very nice lady but she just gets so upset when everything at Christmas isn't perfect. You see, she didn't have much growing up so she now overcompensates with us kids. She was just so excited about giving my brother that pinball machine and when it didn't work she was more upset than my brother. I'm sorry." And she left the store.

 

It made me realize that our customers often have a big emotional investment in the holidays and when things don't go as they hope they can be extremely disappointed. The result is that they sometimes take out their disappointment on us. After the daughter left the store I realized I felt badly for the mother and decided that I would try to fix things. Later that day I called the mother and invited her to bring her son in the next day.

 

When they came to the store I presented her son with two small gifts that we had specially wrapped for him. You could tell he appreciated it but was a little taken back by the attention. I looked over at the mother and she was beaming from ear to ear, clearly pleased that we had fixed her Christmas. At that moment I knew we had done the right thing.

 

Remember, doing the right thing and making the customer happy doesn't mean you're admitting that you or your staff did anything wrong. You're just admitting that you like to do the right thing.

 

Our goal for the rest of December is:

 

1. Try to make as many customers happy as possible.

 

2. Turn returns into exchanges, and exchanges into sales.

 

3. Always try to do the right thing from the customer's perspective.

 

Here's wishing you a Merry Christmas - or Happy Hanukkah - or if you have no holiday preference a Happy Day!


 

December 16, 2009

7 Ways to Maximize Every Holiday Opportunity

Hard to believe it's a little over a week before Christmas.  What you say and do with every customer between now and the end of the year has a huge influence on their experience and how well you maximize your customer opportunities.
 
Let me share with you some things to consider saying and doing with your customers - although I'd think long and hard before I actually used the first two.
 
You could try the threat method. "You either spend more or I take a hairdryer to the snowman."
 
The guilt approach does work but might be hard for most of us to pull off. "Only you know how good a husband you've really been.  Should I keep showing you more items?"
 

Now for some more serious suggestions.
 
1. One way to be successful this week is to change your mindset about how you approach the customer.  Instead of "showing" the customer something to buy, approach the customer with the attitude that you are there to help him/her select the right gift.  Nobody should walk out empty handed. Here are some quick hits that will do just that and are sure to lead to an additional sale.
 
"This will be perfect."
 
"She/he will love this."
 
"You have to see this."
 
"I've got the perfect gift for him/her right over here."

 
 
2. Since you're helping the customer select gifts you should also assist them with their decision to buy.  You also need to do this so you can serve as many customers as possible.  To do so successfully, try a few of these effective lines.
 
"Shall I gift wrap that for you?"
 
"Why don't I put one behind the counter for you?"
 
"That's a great choice.  Shall we go with that?"
 

 
3. One very effective way to sell more during the holidays is to ask questions that the customer will answer with a yes.  When they do, it gives you perfect opening to complete the purchase of that item.
 
"Don't you think he's really going to like that?"  (Customer answers yes.)  "Great, I'll grab one so they don't sell out."
 
"Will she be thrilled to receive that?" (Customer answers yes.)  "I agree.  Do you want that gift wrapped?"
 

 
4. After a customer has decided on one item don't offer to show them additional similar items.  Just keep showing them the rest of the fabulous products you sell.
 
"This will go perfectly with that."
 
"Now you just have to see this."
 
"I've got something else I know you'll want to see."
 
"Now look at this. . . . "

 
 
5. Once a customer decides on a product you can also find out if maybe that isn't also a good gift for someone else on their list.
 
"Do you have someone else on your list who would appreciate receiving this?"
 
 
6. And even though most people are out shopping for gifts, we all love to treat ourselves as well.
 
"How about treating yourself today?"
 
"Would you like one for you?"
 
"Now how about something for you?"
 

 
7. And last but not least, here are some things you don't want to say:
 
"Will that be all?"
 
"Feel free to think it over."
 
"If they don't like it they can always return it." 
I'm guilty of this one but it really is the lazy way to make sales.  Why plant the seed that the gift will not be appreciated?  If you need to say something at least say something like, "I'm sure they're going to love it but if for some reason they don't they can always exchange it."

Have an awesome week. Good luck and happy holiday selling.

 

December 9, 2009

Three and Sixteen Days to Go

With three days until Hanukkah and sixteen selling days until Christmas, here are some quick thoughts and ideas to consider:
 
1. Take time over the next few days to check in with each employee and review his/her seasonal performance to date.  Ask each employee to identify how they've best contributed to the results so far, and what one or two actions can they take to improve their performance even more.  It takes constant improvement by each member of the team to create extraordinary holiday results.
 
2. Are you and your staff recommending or showing multiple products?  Sometimes when associates show multiple products they unwittingly lead the customer to choose between products, not two or more of them.  Avoid using the word "or."  Say "and" or "both."
 
3. This is a great week to call your best customers and invite them in for some personal shopping time.  You might consider having a special gift for them to demonstrate your appreciation for their loyalty.
 
4. If you have a business crowd who shops during the lunch hours you might offer sandwiches or a buffet to keep them in the store longer.  If you have an email list you can promote this with a quick invitation to join you for a "holiday lunch while you shop."
 
5. Make a list of what you'd like to accomplish this week if you have a little extra time. Whenever the store is slow and you have plenty of staff, spend fifteen minutes working on your list.  Then go back on the floor and wait for the next opportunity. You'll be amazed how much you can get done when you're ready to take advantage of a brief lull.
 
6. No matter what you're doing, if you are the owner or manager you need to always be the reference standard when working with a customer.  Whether it's recommending multiple products, introducing yourself to the customer, or adding on, you can never fall short of excellence.  Believe me, the one time you do it the entire staff will be watching.
 
Here's a final thing to consider. 
 
7. If you raised all of your prices 10% tonight, what actions could you take tomorrow to keep your sales from falling off?  Think about it.
 
Now if you take those actions without raising your prices I bet you can increase your sales 10% or more.  Right?  Hmmm...
 
Have a great day and be extraordinary!

 

December 2, 2009

Needs, Wants, and an Extraordinary Shopping Experience

I had an interesting discussion about the holiday season with the owner of an independent store.  I'll do my best to recreate it as I think the topic is worth sharing with you and your team. 

Owner:  Our goal during the holiday is to sell our customers what they want and quickly get them on their way.
 
Me:  How do you know what the customer wants?
 
Owner:  They tell us.
 
Me:  But do you know that's what they really need?
 
Owner:  Isn't it the same?
 
Me:  Not always, especially during the holidays.  What most people want to buy during the holidays is a gift that will make someone happy.  What they need depends on what product they should buy to make the recipient happy.
 
Owner:  But don't some people know what they need to buy?
 
Me:  Absolutely.  Someone who has done her research before coming into a store knows what she needs to buy.  Or if you're asked to pick up a specific item for someone then obviously you know what you need to buy.  But most customers at this time of year have more of a "want" than know precisely what they "need." 
 
Owner:  So our goal of having what the customer wants is incorrect?
 
Me:  I wouldn't say it's incorrect.  Your goal should be to understand more about the customer's wants so you can then help him choose what he needs.
 
Owner:  And how do we do that?
 
Me:  First things first.  Don't focus on what you're selling until you know a little something about who your customer is shopping for.  I like to think we should sell the same way the customer makes their list. That means working with the customer by who, not what, is on their shopping list.
 
Owner:  But who has time for that during the holidays?
 
Me:  We all do.  It only takes a few seconds to ask a question or two about the intended recipient of the gift; less time than we take droning on about products that may or may not be what our customer needs.
 
Owner:  Can we really do that when we're busy? 
 
Me:  We can and I think we have to.  It will not only help you sell more of whatever it is the customer needs but it also helps keep your return rate down.  Granted, as the season gets busier and busier you may not be able to do this with every single customer but if you can, you should.
 
Owner:  I'm just concerned that we won't get customers out the door as fast they want.
 
Me:  I question your assumption that every customer wants to get out of your store as fast as humanly possible.  What almost all customers want is to have a pleasurable shopping experience, especially in an extraordinary specialty store. 

While getting checked out quickly and efficiently is certainly part of it for many of them, it's not the only part.  They want to feel good about their purchase and their experience in your store.  As an example, thanking a customer and presenting them their purchase is more important than hurrying them out to wait on the next customer.
 
Owner:  But won't that upset others in line?
 
Me:  Not if the people waiting can see that the process is moving quickly and efficiently as well as pleasantly.  It's easy to strike a balance if you focus on the customer and making sure that her entire checkout process is enjoyable.  So if you think about it, your goal is to know what the customer wants so you can help her buy what she needs and make sure the shopping experience is one the customer enjoys.
 
Okay so it wasn't a life changing conversation, but I can guarantee that if you sell by who and not what you'll sell more. Our clients who did this were up 30% on Black Friday weekend. It works!
 
So let me ask, how well do you and your team know what the customer needs so you can help him/her buy what he/she needs and to make sure the shopping experience is an extraordinary one?

November 24, 2009

Will You Make the Difference?

It's on.  Or let me be more precise and say that the holiday season is "officially" on this week.
 
Are you?
 
I believe that some specialty retailers are going to have an extraordinary holiday this year.  Some will have a good holiday; others fall short.  Some will fall so far short they may not survive their poor performance.
 
I'm sure those retailers who fall short will blame the economy, discounters, and the Internet.
 
Let's turn that excuse around.  Do you think the specialty retailers who have a good holiday season are going to say they were successful because of the economy?  Of course not.  Will they say they beat the discounters and the Internet?  I doubt it.
 
Retailers who do well this holiday will say they made it happen.  "They" meaning the owner/manager and his/her entire staff made it happen.
 
Sure, some retailers might tell you they were blessed or lucky to do well in the 2009 holiday, but make no mistake - when we look back in January 2010 at the just-concluded holiday season it will be clear that they made it happen.
 
They were the difference.  Or should I say they will be the difference?
 
As we stand at the starting line of the "official" start to the holiday, will you be a difference maker?
 
It doesn't matter what your position is since it will take each and every staff member to create a successful holiday. It's going to take a strong manager/owner, assistant, permanent employees, and seasonal staff.  Everyone.

How? That part is easy. Maximize EVERY single customer opportunity.  Deliver an extraordinary experience that results in an extraordinary sale. Focus and drive will result in the performance necessary to be successful this holiday.

A lot of retailers disagree with my premise that people in the store can and will make the difference between a good and bad holiday. Then again, these are the same people who believe their holiday is almost predetermined by the economy, the discounters and the Internet.
 
So let me ask again, will you be a difference maker this year?  The only one who will establish that is you.
 
Doug
 
To our US readers: Happy Thanksgiving to you, your family, and your entire staff.

November 18, 2009

Start a Customer Service War!

Walmart, Target, and Amazon.com have spent the last few weeks locked in an ever-escalating price war. Although consumers may be short-term winners in the price war, the long-term cost of selling products below cost will be high – impacting other retailers, authors, studios, and other companies associated with the products.

Forget price wars: I want to see a Customer Service war. I want to see companies try to one-up each other over who can deliver the best service. Instead of dropping prices by a penny, add another something you do for the customer.

Of course the big discounters will never do this because they don't really focus on service. It's not their competitive advantage. But it is the competitive advantage for specialty and independent stores. Shouldn't they be starting a Customer Service war? As a matter of fact, shouldn't you be starting one every day?

To win the war you obviously have to be better and more consistent than the competition. Here are some things you might be able to declare:

* We warmly welcome every customer. We're happy you've come to our store and it shows.
* We treat customers like old friends. Many of you are.
* We call customers by name and are happy when they know ours.
* We make our customers comfortable by sometimes serving drinks and snacks.
* We understand our customers needs and wants before we recommend products.
* We provide a great experience for the entire family, including the children.
* We offer unique and interesting products at competitive prices.
* All of our employees are product experts. More importantly, our employees are customer experts. You won't find a better staff anywhere.
* Our store is fun. One thing you'll always find in stock is a smile.
* We make shopping easy. The same holds true for returns and exchanges.
* We offer special touches that our competition doesn't. This might include free seminars, free gift-wrapping, special delivery, charitable events, etc.
* Our checkout process is fast and efficient, but more important it's enjoyable.
* We're thankful for our customers and we prove it with thank you cards, follow-up calls, and invitations to future events.
* No matter how busy the store, our employees are able to work with multiple customers and still give individual service. It's an art and we're good at it.
* We understand that we're not going to be a customer's only retailer but we'll do whatever it takes to be their favorite retailer.

I say let the big box stores duke it out over who can sell the farthest below cost. That's a war that none of us can ever win and unless you're Walmart, Target or Amazon you'll be a big loser if you try.

Win the Customer Service war. That's a war worth fighting.

So let me ask, would you win the Customer Service war in your area? Isn't it time you declare war?

 

November 11, 2009

The Holiday Season - It's On!

While Black Friday, the official start to the holiday may still be over two weeks away, the reality is that the holidays have already begun. Or as they say in the Southwest airline's commercial - It's on!
 
I know many people are fundamentally opposed to acknowledging the holiday season before Thanksgiving.   A friend of mine refuses to even discuss the holidays in his store before Thanksgiving.  I believe this has hurt him in the past and I think that if he keeps it up it will hurt him even more this year. 
 
It's on.  Are you?
 
Consumers know that Black Friday will offer incredible deals.  They also know that retailers are likely to have less inventory this holiday than previously.  We're already hearing customers asking if something will be in stock this holiday.  Scarcity could be as big a motivator as price this year.
 
My recommendation is to approach every customer today the same way you will on the day after Thanksgiving.  Most retailers won't be thinking that way; that's why you're more successful than they are.  Let them wait another two weeks while you maximize your early November.

Here are five ways to profit from treating every day like it's Black Friday:
 
1. Assume the customer is holiday shopping.  Many customers won't be but studies show that over half of all consumers start their holiday shopping before Thanksgiving.  Many started last year December 26.  Your own assumptions have the biggest impact on your early November sales.
 
2. Suggest the customer do their holiday shopping while they (and you) have time to work together one-on-one.  Isn't it more relaxing to do your holiday shopping when the crowds are minimal and the pace is slower?  You can even offer to hum Christmas songs if that helps get them in the mood.  I'm kidding.  Or not.
 
3. Ask who else is on their shopping list. Just by getting the customer to mentally go through their holiday list you're able to create additional opportunities. This is a very simple and effective action that not enough retailers do.

4. Use scarcity to create urgency.  As noted above, customers know that if they wait too long to make their purchase they may not find what they want or need.  Don't use it as a scare tactic, but there's no reason not to mention it since it's probably the case.
 
5. Reward the customer for purchasing now.  For those in a position to do so, offering a gift with purchase or some other reward for buying early is a great way to encourage customers to start their holiday shopping early.  At the very least, offer to wrap the present at no charge.

November 4, 2009

Crank Up Your Store Meetings and Fire Up Your Team

When payroll is tight one of the first thing that gets cut is often the monthly staff meeting.  This is a mistake because store teams need this face-to-face time to train on new products, work on issues together, and continue to develop as a team. While e-learning and other vehicles can help transfer information to employees, you can't beat a monthly face-to-face meeting of the whole staff.
 
However, it is imperative that these meetings are productive, engaging, and result in a positive return on the time and payroll investment.  Companies can't afford poorly run and poorly executed meetings.
 
Years ago I worked for a store manager who was scared to death to speak in front of group of people even if those people were her employees.  Because of that our monthly store meetings consisted of her reading from a script while she fanned us with the shaking papers in her hands.  We always thought about positioning an employee behind her in case she passed out.  I was never sure who was in more pain, the staff or the manager.
 
I'm sure you run your meetings more smoothly than she did but since there's always room for improvement, here are some tips to crank up your meetings and fire up your team.
 
1. Don't use meeting time to transfer information.  Unless you're hiring pre-school students, your staff can read and they don't need anyone to read memos to them.  Assign all necessary reading before a meeting.  The same holds true for new product information.  Even if you're planning a splashy introduction of the product itself at the meeting, have the employees learn about them before the meeting starts.
 
2. Make the first five minutes of every staff meeting a WOW.  Dress up as some character, crank up some music, have the employees up and dancing, throw candy and treats, do anything else you can do to get your team excited and pumped up. Yes, it gets harder and harder to top what you did last time, but since we expect our people to keep improving the customer experience shouldn't we do the same?
 
3. Introduce new products with style and flair. At Bose we went to great lengths to unveil new products to the entire company.  I've come across very few employees who don't love getting to see - and play with - new products.  Even when the staff knows the products are coming in you can still make the first time people see them a fun experience.
 
4. Use the meeting to apply what people have learned.  Instead of discussing the details of a new product, talk about how to sell the new product.  Do roleplaying and a competition on who can best state the benefits to the customer.
 
5. Play games (with a little friendly competition) to reinforce learning. I always like to split the staff up in teams and play games like Jeopardy and Retail Truth or Dare.  And if you have any high school or college memories of Truth or Dare I assure you that this version is not like that one!  Think role-playing and product knowledge. 
 
A good store meeting should involve and engage the entire store team.  The majority of the owner's/manager's time should be in planning the meeting, and not having to carry the whole meeting him/herself.
 
So let me ask, how engaging are your meetings and trainings?
 

October 28, 2009

The Eyes Have It

One of the "skills" I found very useful when I worked in a store was the ability to do many things at once.  Most people call this multi-tasking. I called it retail.
 
The longer I worked in retail the better I became at doing many tasks simultaneously.  I could check in an order, deal with a customer issue and answer an employee's questions all at the same time without missing a beat.  And that's when things at the store were slow.
 
When I moved into the corporate office at Bose I found the pace maddeningly slow. What really drove me nuts was that it seemed like people only did one thing at time. I used to tell people in the office they'd never make it in the stores.
 
One day after a meeting a colleague pulled me aside to give me some feedback.  I had worked with Pete for a while and knew him to be a straight shooter although I didn't always like what he had to say.  
Pete told me that my behavior in the meeting had bordered on rude.  I had no idea what he was talking about.
 
He told me that people didn't think I cared what they had to say since I didn't pay attention when they were talking.  I was flabbergasted. I told Pete that I was always paying attention even though I might have been doing a few other things at the same time.
 
Pete told me something I've never forgotten.  
He said, "You might have heard them, but you weren't listening. To listen you have to use your ears and your eyes."  I tried to explain that it was just a habit I had from working in the stores and he said, "Well, it was rude then, too."
 
Ouch.  I realized he was right.  
From that day forward I tried to listen with both my ears and eyes.  I'm sure I failed from time to time when meetings started to drag on, but all in all I did use my eyes a lot more.
 
The best salespeople always listen with their eyes.  While some salespeople are looking around the store or watching colleagues when a customer is talking, the best salespeople are completely focused on their customer whenever he or she is talking. Not surprisingly, hearing more allows them to sell more.
 
Whatever your position in a retail organization, when you take the time to listen with both your ears and your eyes, you can't help but make a stronger connection with the other person.  
And isn't that ultimately how we make a difference in both our stores and in our lives? 
 
And Some Miscellaneous Musings
 
1) With Halloween on Saturday this year I recommend going all out to make your store a great experience this weekend.  It's opportunities like this that let your store experience stand head and shoulders above the competition.  
 
2) New research shows that high-potential employees are motivated by a desire to give back to their communities and increasingly seek out employers that allow them to do so on the job. Something to consider as you go into the holiday or post-holiday season.
 
3) Speaking of giving back, two weeks ago at the Brighton store manager's meeting all 140+ managers spent one evening at different shelters and organizations helping women in need. What a great activity for a manager's meeting!

Have a Happy Halloween and a great week.

October 20, 2009

Demonstrating Your First Priority

The weeks between now and mid-November can be a challenging time for many store owners and managers.  There's seasonal staff to be hired and brought on board, holiday orders to being finalized, marketing and events to be planned.

But that's just the start. The holiday orders are arriving and seasonal merchandising needs to be completed. And it never fails during this time that something unexpected happens in the store or with the staff.

There's one big difference during this time between successful owners and managers and the rest.  It's a difference that has nothing to do with the holiday. The difference is that successful owners and managers are never too busy to keep the staff focused on their first priority: each and every customer who comes in to the store.

More important, the owner and manager demonstrate that priority every day.  No matter how long the to-do list, they understand that it's their actions that demonstrate to their staff that their first priority is the customer.

Here are five reminders for how you can demonstrate that customers are still your first priority, even while you're busy getting ready for the holidays.

1. Start every employee's day with a Daily Take Five.  To me this is a given but sometimes we can let the morning get rolling and let it slip.  Don't let it. (You can read about the Daily Take Five here.)

2. Be on the floor during peak times.  Yes, peak times during the weekday aren't insanely busy and the staff may get by without you, but being on the floor when the store is busy demonstrates your priority to your team.

3. The minute you're on the floor you're working the floor.  Sometimes our body may be on the sales floor but our mind is still on our projects in the office.  Don't let that happen! Your entire team will be watching and will notice if you miss a chance to engage a customer.  Remember, when you're on the floor you're "on".

4. Don't be too quick to hand off customers to a staff member.  It never fails that if you walk away from your holiday work and go on the floor that every customer comes to you instead of the staff. I'm not saying to not hand them off when the time is right, but doing so immediately demonstrates that your first priority isn't the customer.

5. Check in with your team from time to time about what's taking place on the floor.  You do have a lot of things to get done that are critical to your holiday and by all means do them.  But also take some breaks to check in with the team.  Don't just go out and say, "Is everything okay? Good, call me if you need me."  Instead, find out what's been sold and who's been in the store.

Taking these actions will remind your staff that even though you're busy getting ready for the holidays, your first priority is still the same. The customer.

So let me ask, are you demonstrating your first priority?

 

October 13, 2009

Four Words That Will Transform Your Business

On Saturday afternoon we had a family outing to Wrentham Premium Outlet Center to buy some clothes and shoes for our daughters.  The place was packed. The line of cars to get into the center was backed up on to the highway from both directions.
 
All I could think was "look at all these opportunities."  It was enough to make my retail heart go pitter-patter.  Judging from the number of bags in people's hands I would say that most stores had a good day.  Some might have even had a great day.
 
But if my experience was like most customers,
the stores that had a good day could have had a great day, and the stores that had a great day could have had an extraordinary day - if they had remembered these four simple words:
 
Maximize every customer opportunity.
 
Knowing how to greet and engage customers doesn't matter if you don't do it with
every customer.
 
The ability to help customers make informed decisions about the latest fashions or a product's features and benefits doesn't matter if you don't do it with
every customer.
 
Recommending additional products that will enhance a customer's purchase and his/her life doesn't matter if you don't do it with
every customer.
 
Having fabulous new products or incredible sale doesn't matter if people don't know about them. Sure, you can post signs to that effect but nothing reinforces the message more than an employee enthusiastically telling me about them.  But it doesn't matter if you don't do it with
every customer.
 
Lots of store traffic is a wonderful thing but you leave money on the table if you don't maximize
every customer opportunity.
 
Maximizing every customer opportunity sounds simple but if it were that easy, more retailers would be doing it.  I'd say that fewer than 10% of specialty retailers maximize every customer opportunity.
 
I'm not saying this to be negative but quite the opposite. 
It's exciting because I see incredible opportunity for retailers like you if you make maximizing every customer opportunity the foundation of what you do.
 
Almost all retailers talk about how important customers are.  Very few stress how important every customer is and the impact that has on business.
 
Look at the difference.
 
Welcome and engage customers.
Welcome and engage every customer. 
 
Suggest products and services to the customer.
Suggest products and services to every customer.
 
Offer additional add-ons.
Offer additional add-ons to every customer.
 
Deliver a great customer experience.
Deliver a great experience to every customer.
 
Makes sales.
Make sales to every customer.
 
Maximize your opportunities.
Maximize
every customer opportunity.
 
So let me ask, are you maximizing every customer opportunity? 
 
If not, consider the impact doing so will have on your business if it becomes your number one priority.
 

October 6, 2009

Is It Time to Upgrade?

A couple of years ago I switched from Windows to Mac and my only regret is not doing it sooner.  The MacBook has been perfect for me, except that every now and then I have too many applications open and the spinning ball appears.
 
Whenever the spinning ball appeared I would tell myself that I ought to upgrade the MacBook memory. Then the spinning ball would disappear and so would the upgrade idea. This pattern repeated itself more often than I care to admit.
 
The other day I read something online, one thing led to another, and I finally got around to ordering and installing that new memory. It essentially doubled the memory on my MacBook.
 
The difference is unbelievable.  No, the difference is UNBELIEVABLE.  My MacBook is now lightening fast, no spinning ball and my productivity has skyrocketed.  It's like I have a brand new computer.
 
The total cost for this amazing difference was $39.90 and 15 minutes of my time.
 
What's really unbelievable is the amount of time and productivity I wasted thinking and talking about upgrading my computer instead of just doing it.
 
The same thing happens in stores every day.
 
Someone might put off painting the store and as a result the space looks tired and old.  That's a missed upgrade.
 
Some retailers hold on to products too long, determined to get full price.  Then they can't bring in new and exciting products that will actually turn. That's a missed upgrade.
 
Sometimes retailers stay with lines that are no longer relevant to their customer, which keeps them from bringing in new ones. That's a missed upgrade.
 
I hear a lot of stores talking about doing a Facebook page, an electronic newsletter or more events. But month after month they just haven't found the time to do anything about it.  That's a missed upgrade.
 
There are sales associates that aren't working to improve key elements of their sales approach. They might be really good, but they could be GREAT. That's a missed upgrade.
 
There are managers and owners who fail to address under-performing employees who are costing them sales and losing them customers. That's a missed upgrade.
 
What about you?  What are some of the upgrades you've been thinking and talking about but just haven't done?  Your particular upgrade is probably going to cost you more than the $39.90 and 15 minutes mine did, but what's the true cost of not doing it? Even better, what will be the reward for doing so?
 
So let me ask, what upgrade do you need to start today?

September 30, 2009

Expert, Clerk, or Somewhere In-Between?

A couple of weeks ago I rented a tuxedo jacket for one of my holiday speeches.  I must admit, a tailcoat paired with a Hawaiian shirt is an interesting look. But I digress.

After trying on the jacket I told the woman working at the store that it was perfect.  She insisted that it wasn't and that she needed to hem the sleeves.  I responded that I was in a hurry and since it was really just a costume for a speech it didn't matter.  She told me that it did matter and if I didn't adjust the sleeve length it wouldn't look right when I raised my arm.

She was clearly an expert so I agreed to wait for her to hem the sleeves.  I'm glad I did.  I even thanked her for the great service and for being an expert.

Compare that to another recent shopping excursion.  The salesperson let me into the dressing room and when I came out she was nowhere in sight.  I eventually found her on the other side of the store talking to another employee.

Since I wanted an expert opinion I went up to her and asked what she thought of this shirt.  She replied, "Any of our shirts will look good."

She was clearly a clerk, not an expert, so I left without making a purchase.  I didn't say anything because she was too busy chatting with her colleague.

There's a huge difference in performance between an expert and a clerk.

1. Experts take the time to know their customers before matching them with products. Clerks don't.

2. Experts recommend products and service specifically for their customers. Clerks show products.

3. Experts share opinions with their customers to help them make the best possible purchase. Clerks give their personal opinion for no reason.

4. Experts help customers buy additional products that will enhance what they are buying or will enhance the customer's life.  Clerks do add-ons because they're told to.

5. Experts have no problem telling a customer not to buy something if it isn't the right product for them.  Clerks probably wouldn't know if it isn't the right product.

6. Experts proudly sell. Clerks are afraid of being a salesperson.

7. Experts ask questions. Clerks only answer them.

8. Experts create sales.  Clerks make them.

9. Experts are an asset to the company.  Clerks are on the payroll.

10. Experts have my admiration. Clerks have my appreciation.

So let me ask, are you an expert, clerk, or somewhere in-between?

September 23, 2009

Dealing With Mr. or Ms. Cranky

A friend of mine once said that retail would be so much easier if it wasn't for the people and the products. Sometimes he would add, "And the product part isn't that difficult."  Of course he was joking.  Okay, maybe there were days when he was only half joking.
 
In my years of managing a retail staff I've had the privilege of working with some wonderful people.  These are people that I thoroughly enjoyed working with.  I'm still friendly with a number of former colleagues today.  Of course these aren't the people to whom my friend was referring.
 
He was talking about people like James. (Name changed to protect the guilty.) James was a full-timer who constantly went back and forth between being the nicest guy in the mall and the crankiest.  What made James really difficult to work with is that he could switch back and forth faster than you or I could wipe down a cashwrap.  James was a great salesperson but, to say the least, a challenging teammate.
 
Got any cranky people on your staff?
 
 I do - and since I usually work alone we know who the cranky one is!
 
We're all human.  
We all have up days and down days, but when an employee has too many down days or too many moody days it becomes a problem that impacts the entire team.  And when that happens it impacts the quality of the customer experience and ultimately sales. Not good!
 
Here are few tips to deal with Mr. or Ms Cranky:
 
1. Don't make excuses for them. We all have things going on in our lives.  Some people from time to time have a lot to deal with outside and sometimes inside the store, but that still doesn't give anyone the permission to act in a way that negatively impacts the rest of the team. That doesn't mean we're not empathetic, but it does mean that we can't allow anyone to constantly display behaviors that impact the store in a negative manner.
 
2. Address the cranky (or worse) behavior as soon as it becomes a problem.  Most of us can have some (sometimes justifiable) cranky moments from time to time but the moment passes and we move on.  But when Mr. or Ms. Cranky can't seem to stop sharing the bad attitude and dark cloud you need to take action.
 
3. Help Mr. or Ms Cranky turn it around.  Let them know what behaviors you are seeing, the negative impact it is having on the team, your expectations for the behaviors to stop, and your confidence that the individual can snap out of it.
 
You can't say, "Whoa, someone got up on the wrong side of bed" and expect things to get better.  Instead you might say, "I notice that when talking with so and so you were extremely short with them and were very dismissive. (behavior)  Because of that everyone is avoiding you and it's impacting how we work together today. (impact)  I need you to be more respectful with your teammates (expectations) and I'm sure that won't be a problem for you. (stated confidence)"
 
Chances are Mr. or Ms. Cranky doesn't even realize they're acting this way because they're in such a cranky mood, and they'll be even a bit embarrassed that you've had to address it. The really cranky employees sometimes get even crankier as a result of your talk.  You may need to move forward with a more formal corrective action approach with these folks.
 
Here's the bottom line. 
 If Mr. or Ms. Cranky's behavior is disruptive to the store, then it doesn't matter how good they are or what position they're in. They're hurting the team, and as a leader you can't allow that to happen.  More important, you have to be positive that you're not Mr. or Ms. Cranky. 
 
So let me ask, are you addressing any cranky employees and helping them turn it around?
 

September 16, 2009

After "I'll Take It."

One of the differences between Superstar retail associates and all the others is what happens after the customer says, "I'll take it." The successful associate knows there are still plenty of opportunities to both enhance the customer's shopping experience and maximize the sale.

These are a few of the attitudes they have and/or the actions they take:

1. Whether you call it enhancing the sale, or adding-on to the sale, successful retail associates know that they just made the first sale, not the sale. We're doing customers a disservice if we don't suggest additional products that are appropriate with the product they are purchasing or otherwise meet their needs.  As you've read here before, think of it as an all-you-can-eat buffet and don't stop until the customer tells you he's full.

2. Reinforce the customer's purchase. So often a customer's first thought after announcing that she'll buy something is to start doubting her decision. She'll begin to tell herself that maybe she shouldn't be buying it now or that should shop around a little more. Your role is to put the customer at ease by complimenting her purchase and congratulating her. This is easy to do if you've done due diligence in identifying what it is your customer needs.

3. Offer the appropriate services and needed accessories. I'm always amazed how many retailers have nice added services like free gift-wrapping in place but their employees never offer it to customers. Even worse is when associates act put-upon when a customer requests it. We can easily disappoint a customer once they return home when they realize that we failed to gift-wrap their purchase or remind them to purchase needed products like batteries, cables, etc.  It's our job to ask the customer, not the other way around.

4. Remain focused on the customer until he/she has left the store. If you're checking the customer out it is important that you not let other employees and customers distract you. The other day I was making a purchase and the cashier was actually reading a text message on his phone. I thought about asking him his phone number so I could send him a text message to put down the phone and do his job.

5. Smile and thank the customer. It should go without saying but all too often it goes unsmiled and unsaid.

So let me ask, are you a Superstar retail associate or in the middle of the pack?

September 9, 2009

Your True Incremental Value

Part of delivering an exceptional customer experience is delivering incremental value along with the products and services you sell. Some of you may charge for incremental value such as design services but most of you use it to differentiate your store, increase average sale, and create more loyal customers and advocates.

But what is the incremental value you offer really worth, and is it something the customer sees as adding to their experience?

Consider this. What if your store was empty? What if you not only quit selling products, but also took everything out of store except for your counter and some chairs? Would your customer still visit? Would your store be the first place your customer turns to for advice and an opinion?

I think these are fascinating questions since they define the true incremental value you and your team delivers.

I can think of a few stores I would still visit. One obvious choice is the Apple store. Even if the place were devoid of products I would still go there to ask questions, and probably hang out and shoot the breeze.

I know I would also go to Jordan's Furniture store. It's is the only store in town that not only contains a trapeze school and an IMAX theatre but also boasts a replica of the Massachusetts State House made out of jellybeans.

I would also stop in and visit Kathy Fields at The Crafty Yankee, a wonderful store not too far from my home. I know that if I asked Kathy or a member of her staff for advice on gift buying they would have some fabulous suggestions.

These stores deliver incremental value besides the products they sell.

There are many more stores I would never go in again. The only reason to go to these stores is because they sell something I want or need. Because of that I have no loyalty to them. Given any reasonable alternative I have no reason to ever go back. These stores have little, if any, incremental value.

Maybe some of these stores have incremental value than I've ever seen but because they didn't deliver it proactively when I was there to make a purchase I wouldn't think to go back now that they don't have any product.

Here's an exercise for you and your team. List five to ten ways your store offers incremental value. Maybe you teach people how to pack, or share with your customer the latest fashions. The value is dependent on what you say. . . or maybe I should say what you used to say with what you use to sell.

Now ask yourselves what percentage of the customer's experience consists of that incremental value? Are you proactively delivering that value?

So let me ask, would you still have customers if you were no longer selling products?

 

September 2, 2009

A Flawless Experience Resulting in a Sale

The expectations we set for our employees ultimately define our customer experience. I recently talked with a regional retailer who, for one reason or another, has over time lowered his expectations of his employees to the point where they can't deliver a quality customer experience that creates a sale. All they can to is to help customers who are making a purchase.

I don't believe this is the case for most of you. I don't think you can read The Retail Contrarian on a regular basis and deliver a poor or even mediocre experience. As a matter of fact, I believe that most of you deliver an above average -if not outstanding - customer experience.

But that doesn't mean that there still isn't an opportunity for you to do even better. And when there are opportunities, there can be more sales, more loyal customers, and more advocates. And that creates even more sales. It's a beautiful thing.

Imagine if every customer who walked in the door was delivered a flawless experience resulting in a sale. Can you imagine? Every customer is WOW'd and every customer makes a purchase. A close rate of 100%! I'm all verklempt. Talk among yourselves. (If that doesn't make sense, ask an older colleague.)

So do it. Imagine it and then execute it.

What would you have to do TODAY to deliver a flawless experience?

Everyone focused on the floor? Check.

Not ask experience-killer questions like "May I help you?" Check.

Quickly build a strong personal rapport with every customer? I know they all don't want that, but that's okay because a flawless experience is based on the customer's perceptions and not ours, right? Check.

So what will it take for your store to get there?

Now imagine every customer making a purchase. That's a little harder isn't it? It is, but if you don't strive for a high goal you'll never come close. I don't think it's impossible.

What would you have to do TODAY to make a sale to every customer?

Treat every customer as though he/she is in the store to make a purchase? Check.

Get past those "just looking" comments? That's a tough one because we have to do it while delivering a flawless experience. Nobody said being an outstanding retailer is easy! Check.

Recommend products with energy and passion? Check

So what will it take for your store to get there?

Are you and your team up for the challenge? Are you willing to do what it takes today to deliver a flawless experience to every customer so it results in a sale? Even better, are you up for the challenge to do this through the WEEKEND? Here in the states it's a three-day holiday weekend. Imagine the opportunities!

Remember, the expectations we set for ourselves ultimately determine our customer's experience AND our success.

I think you'll be amazed at what you and your team can do.
 

August 26, 2009

The Exceptional Experience Line

In every customer's experience there is a point, a line if you will, where the customer moves from an average experience to something they view as exceptional and memorable. The ability to engage and move customers beyond that line on a regular basis has an incredible impact on revenue, as well as customer loyalty and advocacy.

The challenge for all of us is that this line is different for every customer. The opportunity is that the Exceptional Experience Line for most customers is usually within a certain bandwidth based upon common points of references, i.e. mostly average and sub-par experiences in their everyday activities.

Why do so many companies fail to get their customer to - and beyond - the positive experience line?

It's because most don't try, and if they're someone like a big-box retailer it probably doesn't matter since they're competing on low prices, convenient locations, and wide selection. Any positive experience is icing on the cake. And don't be fooled, some of them are gunning for that line.

Unlike big-box retailers, it's vital for specialty retailers and independent businesses to move customers to and beyond that line. Unfortunately, many fail to get their customers anywhere near the line because they're not aiming for it.

As a regular reader of The Weekly Retail Experience, I like to think that most of you are far closer to that line than are your competitors. Some of you are able to go beyond that line with almost every customer.

Companies that are able to surpass the line on a regular basis have the following in common:

1. They've trained their people to focus on exceeding every individual customer's experience. While they may not have specifically labeled it a "line," the line is the point where expectations have been exceeded.

2. They have specific tools and activities that, when combined, move the customer beyond the line. Those tools and activities include, but are not limited to, offering the customer a beverage or a snack, using their name, welcoming them on a regular basis, proactively offering to carry a purchase to the car, suggesting additional products that enhance the purchase, engaging their children, a follow-up phone call and a host of other things.

The key is the combination. Because every customer has different expectations and perspective, only doing one or two of them doesn't move most customers to the line.

3. Last but not least, everyone is focused on the Exceptional Experience Line. This includes the owner or executive team, the management team, the floor staff, and the back-office support team. Everyone!

So let me ask, are you and your entire team driven to move the customer beyond their Exceptional Experience Line?
 

August 19, 2009

The Slow Drift From Great to Good

I love a GREAT cup of coffee. For years I began every day by grinding freshly roasted beans to make a rich and full-bodied cup of morning goodness.  There isn't much better than that first cup of the day.

About a year ago I begin to tire of having to grind the beans in the morning, so I started to grind them before I went to bed at night.  Everything I've read says the coffee begins to drop in quality soon after grinding the beans but I figured it was a small price to pay for convenience.

After a few months I decided that grinding the beans at night was becoming a grind.  I decided to buy my coffee already ground.   I did notice the difference in my morning coffee between my freshly ground beans and the already ground coffee I bought at Peet's or Starbucks but I figured it was a small price to pay for convenience.

Now that I was already buying pre-ground coffee I figured that I might from time to time skip the extra trip to the coffee store and buy coffee at the grocery store.  Even thought there have been some great strides in the improvements in packaging technology, there is still a noticeable difference in ground coffee bought at a Peet's or Starbucks store and the same brands bought at the grocery store.  But sometimes when I was in hurry I just grabbed some coffee at the grocery store.  I figured it was a small price to pay for convenience.

One morning as I drank my "GREAT" cup of coffee I was reading an article in Cook's Illustrated about how to properly brew coffee.  As I read the article I thought to myself over and over, "I used to do that."

I realized that my GREAT cup of coffee wasn't really that great any more.  Over time I had slowly drifted away from the small but simple steps required to make a great cup of coffee.  Because each change I made only reduced the quality by a small amount I didn't really notice how much less "great" my morning coffee had become.   Of course it was all in the name of convenience.

I'm sure you know where I'm going with this.

The same thing can happen in our stores and in the experience we deliver.  One or two of the little things you would once did to make your store a GREAT place to shop fall by the wayside.  It might be to save time, payroll, or inconvenience.  And it's such a small thing it won't make a big difference.

It happens often.  A store offers to carry every purchase, no matter what the size, to a customer's car.  Then over time they might only offer if the purchase is big and bulky. But now they only carry purchases to the customer's car when the customer asks.

Or maybe it's the practice of offering customers something to drink. The store goes from offering all customers a drink, to those customers they're working with on a sale, to only giving a beverage to the long-time customer who still asks for one.

Other areas that sometimes get lost in the name of convenience are gift wrapping, follow-up phone calls, thank you cards, and getting customer contact information.

The point is that just like the decline in quality of my morning coffee, these small changes slowly takes the experience away from what used to make it special.  The cost of saving time, money, or just making things a little more convenient for us is a lot higher than we think.

Right after reading that article I went back to doing what it takes to brew a GREAT cup of coffee.  The difference is amazing.  Over the last year my morning coffee was good, but good isn't great.  Sometimes good is okay, but we shouldn't fool ourselves into thinking that good is GREAT.

So let me ask you as you enjoy your morning coffee, is there anything in your business you've let slip to good even though it's GREAT that is the key to your success?   If there is, what steps will you take today to turn it around.

August 12, 2009

The More You Know The More You Sell

Last month I needed to go to New York for a few days to present at a jewelry show.  It's roughly 225 miles from my house to Times Square.

Here were my transportation options:

1. Airplane. Definitely the fastest option, although that could depend on the traffic from LaGuardia to my hotel.  The total cost with taxi and parking at Boston's Logan airport is around $350.

2. Train. It's by far the easiest and most comfortable way to travel but it does take longer than flying.  I could work while traveling and even use the Wi-Fi. Total cost would be in the vicinity of $250.

3. Car. A little faster than the train but more effort on my part.  Gas and parking total about $150.

4. Bus. By far the most cost effective but also likely to be the most challenging. The bus lines all had varying price and some would require a cab once I got in to NYC.  We'll average it out and say that the total cost for the bus trip is $50.

What would you have chosen, and why?

But what if you were going to book my travel?  Which option would you have chosen for me?

Don't worry, I'm not turning the Weekly into a travel newsletter; here's where I bring it back to retail.

If this had taken place in a store some retail employees would have:

* Assumed I was inquiring about a trip, not that I was there to book it.

* Offered me the bus first because it was the least expensive. One of the biggest impediments to success is believing that all anybody is looking for is the least expensive product. People want the most value.  In my particular case value is time, effort, convenience, and cost.

* Started telling me about whichever transportation option I was looking at that moment. If each transportation mode had a section in the store and I was standing in front of "driving" I would have heard about the different places to park.

* Told me what they would do. Maybe the salesperson doesn't like to fly so they would never suggest that option.  Someone else's dislike of flying has nothing to do with me, but it's amazing how many salespeople think it does.

Helping me book this trip is no different than helping me buy something in your store. The more you know me and what's important to me, the better you can match me up with the right product you sell that is the best value for me.  The more you do this the more likely it is that you'll make a sale.

Telling me my options would not have helped at all. I already knew my options. What I would have being looking for is an expert to tell me what was the best way for ME to go from Boston to New York.

You would need more information, don't you?  I'm going to guess that you would want to know things like the following:

* Are you in a hurry?
* Is there any particular time you need to arrive in New York City?
* Will you need to be back in Boston by a certain time?
* What is your preferred mode of transportation?
* Are you traveling alone?

So let me ask, do you take the time to get to know your customer before showing them products, or do you just tell them about what you have to offer?

By the way, I was going to take the train but at the last minute I decided to bring my family so we drove. That was the fifth question.  That's why it is important to know as much as you can before recommending a solution.

August 5, 2009

The Opportunity When You Can't Say Yes

While not saying "no" to a customer should always be your goal, sometimes the inability to say "yes" can also give you an opportunity to delight or wow. The key is to always tell the customer what you can do for them, not what you can't.

Here are two good examples.  I'm in New York City last week speaking and moderating a panel at a Jewelry Show.  Since I was driving to the city I brought my family with me for a mini-vacation.  I'm staying at a new Sheraton Four Points, which has small but well-appointed rooms.

Sunday night I called down to the housekeeping to request an extra bedspread and sheets for one of the girls to use to sleep on the floor.  Three times we called but got no answer. We called the front desk and still got no answer.

So I took the elevator down 25 floors to find two people working the front desk.   When one of them finally looked up I told her that I needed an extra blanket or quilt for my daughter to use as padding to sleep on the floor.  I barely got the words out of my mouth when she snapped, "We don't have extra bedspreads or rollaways."  And then silence.  She didn't offer a single alternative.

Not surprisingly, I was getting annoyed by now and snapped, "Great.  At least in the future please answer your phone so I don't have to come all the way down here to not be helped."  She frowned and said, "Well, I can get you some blankets and sheets if you want." At least Ms. Happy was now trying to help me.  I took her up on her offer and 10-minutes later housekeeping showed up with a couple of sheets.  Still not great but better than nothing.

Think about how this different this experience could have been if she had responded to my first request without saying "no."  She could have said, "I'd be happy to help make the floor a little more comfortable for your daughter.  While I don't have any extra bedspreads, I bet we can find something else.  Can I send someone up to your room in the next 10 minutes?"  With a response like that I could have cared totally forgiven my unanswered calls.

Simply telling me what she could do instead of what she couldn't do would have easily moved me from frustrated to delighted.

Here's a great example of not saying "no" and WOWing a customer.  Monday morning I went to the local Starbucks to order coffee.  The smiling barista told me, "We've had a problem with our coffee maker but I'll be happy to make you an Americano instead."  Then she added, "And I'll even make it on the house."

Not only did she not say "no," she WOW'd me by giving it to me at no charge.  And drinking the Americano reminded me how much better it is than a bold, and chances are I'll start drinking the higher priced Americano for now on.

This employee took a situation where she could have said no and sent me on my way, but instead she WOW'd me in a way that will result in my spending more money with her company. That is how you maximize the opportunity in not saying "yes."

So let me ask, do you and your team maximize the opportunity when you can't say yes?

July 29, 2009

An Impeccable Customer Experience

When my children were younger and were called to a meal or wanted to help in the kitchen my wife always asked them if their hands were impeccably clean.  She would explain why impeccably clean hands were needed.  She pointed out that you always want to eat with clean hands, and if you are going to be help in the kitchen you need clean hands to handle the food.

At first I wondered why she just didn't tell them to go wash their hands since she knew they hadn't, but I came to realize that she wasn't asking them to go through a motion, she was teaching them to maintain a standard.   Just as important, she wanted them to create a habit of washing their hands instead of having to be told.

Over time, the girls learned that impeccably clean meant never coming to the table or to expect to help in the kitchen without first washing their hands with soap and warm water. (Disclaimer: It doesn't always happen but for learning purpose let's pretend it does.  I digress.)

The point is that the girls learned why it's important to have clean hands and inherently understood the expected outcome.

Successful companies use this same approach to deliver a better customer experience than their competitors.   Employees who understand why an extraordinary and memorable customer experience is important to the company and their own success are more likely to deliver it than those who don't understand that concept.

Customer-centric companies also have a standard for the customer's experience.  Like my wife's expectation for children to sit down to dinner with impeccably clean hands, there is a stated desired outcome that all employees strive to deliver.  It's a key part of the company culture and is reinforced on a daily basis.

Of course everyone needs to be trained how to do their job, but when employees know the why and the expected outcome the how becomes much more important.

Take something as simple as a customer walking in the door.  Most retail employees have been taught to "greet" the customer within x amount of time but they don't understand why those first thirty to sixty seconds are so important in setting the tone of the customer's overall experience.  They also don't engage the customer in a meaningful way since they've never been taught how the customer should feel as a result of this initial engagement.  So they say things like, "How's it going?" but never stop to hear a reply because as far as they know their how is over and done.

Companies will always be more successful when the how is only taught after the why and the expected outcome.

So let me ask, metaphorically of course, does your staff have impeccably clean hands or do you have to tell them to go wash? 
The difference is in the experience.

July 22, 2009

10 and 51 - The Birthday Edition

I can't believe it but my youngest daughter, Jane, turned 10 the other day. It's hard for me to believe but I no longer have a child in single digits. And then the next day I turned 51. 

Here are 51 things I've learned in my life.  Some you may have read last year, but like life this list is constantly changing and evolving.

1. It's easier to give advice than take it.  Usually the advice I give is also meant for me.

2. Focus is extremely underrated. The most successful people I know have the ability to focus and get things done.

3. Jobs, places, and things come and go.  It's the people we meet that make life special.

4. It's my actions that define who I am, not who I say I am.

5. Learning to start my day over was one of the best lessons I ever learned.

6. Humility is the greatest trait I can have as a leader, partner, husband, friend, and father.

7. Having humility is easier said than done.

8. The more I try to learn from successful people the better my chance at success.

9. The only person who can decide if I'm having a good day or bad day is me.

10. The more teachable I am the more I know.  The more I know the more I can help others.  The more I can help others the better my life, and that's why I try to remain teachable.

11. Work hard when it's time to work, but go home when you're supposed to go home.

12. When you're a manager people have to do what you want them to do.  When you're a leader people want to do what you'd like them to do.

13. Everyone makes mistakes but not everyone learns from them. The difference has a huge impact on your ability to have a happy and productive life. 

14. The only person or thing that can hold me back is me.

15. We all need mentors in life.  Do you have one?  More important, are you one?

16. Your children won't remember much of what you said while they were growing up but they'll always remember how you said it.  The same advice applies to people who work for you.

17. To be a good parent and a good manager I need to set high but appropriate expectations.  It's even more important to hold the children or the employees accountable for meeting those expectations.

18. Most people are inherently good.  I can't let the few who aren't impact how I feel and act towards the others.

19. Take care of your employees and they'll take care of the customers.  Take care of the customers and they'll take care of the business.

20. Neither your employees nor your customers will know you care unless you tell them.  Tell them.  Often.

21. I can't let the news and what happens in other people's lives affect how I feel about mine.

22.  I believe faith and spirituality is extremely personal. I'm always offended when someone tells me what or how I should believe.

23. Always do what's best for the customer  - unless you no longer want that customer.

24. The best thing I can do when I am wrong is to promptly admit it.

25. Every time I'm told by a retailer "we have no competition" I always think, "You're delusional."

26. Criticizing someone you don't know and who has no impact on your life is a total waste of energy.  Criticizing someone you know is a waste of good karma.

27. Innovation is important to most retailers' success only if it is built on the bedrock of a commitment to customers and employees.

28. I make an effort to learn something every single day.  I know that combining the experience of the past with the knowledge gained today creates success.

29. Failing is important because if I never fail I'm not trying enough new things.

30. I can't afford to have resentments. I hope those who have one with me share it instead of holding it.

31. Don't miss the moment.  As my wife says, keep your head where your feet are.

32. Be grateful. Demonstrate it with both words and actions.

33. Specialty retail is more about relationships than selling products.  I wish more retailers understood that.

34. Accept or change anything in your life that causes you problems or concerns but don't waste energy complaining about it.

35. The greatest gift you can give someone you don't know is a smile.

36. Ask for help when you need it.  Offer to help when you don't.

37 Surround yourself with positive people who love life and love you.  Don't listen to people who don't share the same values you do.

38. Never regret the past.  Use it today to create a better tomorrow.

39. Compliments are wonderful things to give and receive.  I need to remind myself to give more than I do.

40. Prioritize your day and always put the customer first.

41. Whatever your title, if you're in a leadership role you always go first.

42. Passion trumps knowledge and skill.  Never try to cover a lack of knowledge and skill with passion.

43. Never shy away from a difficult conversation with an employee, friend, or family member.  You'll both be the better for it.

44. Be happy for others.  Don't compare their lives to yours, identify with what they do or have done so you can do the same.

45. Always say, "thank you," "please," and "you're welcome."  Expect the same from your staff and your children.

46. Sometimes bad things happen.  It's one thing to be a victim; it's another to stay one.

47. No matter the cause, if I'm bent out of shape about something the problem is always within me.  If I don't believe that I'm giving others the power to control me.

48. If you don't take the time to enjoy the rewards of your hard work, why work hard?

49. I wish you could buy patience online.  Since you can't, you have to just find it within yourself.

50. Thinking about doing something is not doing something. As they say, Just Do It!

51. Love and value your friends and family. You never know when your time together will end. I miss those I've lost.

52. Always go above and beyond in everything you do, especially when it is for others.

Thank you for reading this and sharing my birthday! May every day of your life be a learning day.

 

July 15, 2009

The Daily Take Five Meeting

The other day a reader asked me to explain what a Take Five meeting is.  I realized that even though I always encourage people to use the Take Five, it's been too long since I've actually described what it is.

The Take Five meeting is a tool I began using in my days as a Sharper Image store manager.  Back then I called it the morning huddle.  For a while I called it the Five to Thrive meetings, but finally changed it to Take Five to align with what many of our readers are calling it.

Take Five is a DAILY meeting between the owner or manager and his/her team before the employee begins the day. It can be done as a group or one-on-one.  I recommend you do at least one one-on-one Take Five every week with each staff member.

To use the Take Five to its fullest you need to use it with every employee at every shift. Not just when the doors are opened, not just when the team is together, but every single time someone starts his/her workday.  Put the responsibility on the employee to find the manager/owner for the Take Five Meeting before they start their shift.

In your Take Five meeting you want to review all of the crucial information the team needs to have a successful day, and you want to make sure they are focused, motivated, and ready to go. The Take Five is not just for in-store use; it's also useful for internal support and field management teams.

In the store, you can use the Daily Take Five Meeting to review things like sales results, daily goals, and other key information the staff will need. That can include everything from the lunch and dinner schedule, specials, contests, and floor coverage.

It is vital that every meeting also include giving feedback, praise, and coaching. Too many meetings are just a download of information when they should be about improving everyone present.  Take the time to share some observations of what you've seen employees do well and what they can still do better.

Challenge people on what area they're going to improve in that day. I've always said if an employee can't answer what they're trying to improve in then you're not truly developing your staff. If you have the time do some quick roleplaying. Okay so it becomes a Take Ten or a Take Fifteen Meeting, but that's better than just standing around after they start their shift. It also becomes some of the most productive time in the day that pays the highest return on investment.

Always end the meeting on a positive note. I remember attending one meeting that ended on such a down note I wondered why the staff even bothered to open the door for the day.  The team needs to feel energized and ready to succeed at the end of the Take Five.

We're in the people business.  That's where our opportunities are, that where our focus needs to be, and to maximize those opportunities and that focus we need to start every day with a Take Five.

July 8, 2009

Your Customers

Some things you may or may not know about your customers:

They don't compare you to other people who sell what you do.  They compare you to every store they shop in.

They appreciate being treated like they're special, even if don't show it.

Although they might decline that drink or cookie you offer, they appreciate and remember the gesture.

They will tell other people about your store if you give them a reason.  What they tell people is up to you.

They dislike being hounded, but they also hate being ignored.  Yes, that's confusing and yes, that's why selling in retail is not easy.

Most of them worry more about overpaying than about getting the lowest price.

They respect what you know about the products you sell.  They like being respected in return.

They watch how you handle your products to see how much they’re really worth.

Even if they don't come to an event they remember that you do things for your customers.

They're happy to hear from you on a regular basis, but they don't want you trying to constantly sell them something, either.

They appreciate knowing that your store is a good place to work as well as to shop.

They like buying from local businesses, but most aren't willing to pay too much extra to do so.

Even though they appreciate your employees, they like getting that little bit of extra attention from the owner.

They appreciate being appreciated.

Most will be loyal if you'll be loyal to them. This means that sometimes you have to do what's more in the customer's best interest than yours.

You have many customers but each one is unique.  The more uniquely you treat them the more likely they are to remain your customer.

A few of them are a pain but that should never change how you think of them.  Remember, each one is unique.

They appreciate the little things you do to deliver a great experience. A lot of them remember to tell you that: some of them forget. 

So allow me to say it for all of your customers, "Thank you."

 

July 1, 2009

The Most Important Thing You Do

I recently asked a group of owners and managers to tell me the most important thing they do in a day.  Owners and manager usually have to do ten things at once and a hundred or more different things to take care of throughout their day, but I was looking for that one thing they consider the most important part of their job

I heard a lot of different answers including:

"Drive sales."
"Develop my staff."
"Protect the store assets."
"Drive traffic into the store."
"Make my customers happy."
"Deliver a great shopping experience."

What do you think is the most important thing you do?

I'll tell you what I think it is.  I think the most important thing you can do as a manager or owner is to create the best place to work.  That's right, I think delivering an employee experience that has people loving their job is the most important thing you do.

Why do I say that?  Because as a specialty retailer what makes your store truly special is your people.  You might have a beautiful store with fabulous products but chances are whatever you sell I can find somewhere else.  It's the people in your store that make the difference. It's the people that keep your customers coming back time and again.  The reverse is true, too.  At some stores the reason the customers don't come back is because of the people.

Making your store a great place to work drives all those other important things listed above. Happy employees create more sales.  Happy employees want to grow and develop and make a greater contribution to the store.  Happy employees are less likely to steal.  Happy employees create loyal customer advocates who keep coming back and tell others about your store.  And last but not least, happy employees deliver great shopping experiences that result in happy customers.  Everyone's happy!

So why don't more owners and managers make this the most important thing they do? For some it's because they don't know they should or don't know how.  For many it's because creating a great place to work takes hard work.  As today's quote says, "The dictionary is the only place where success comes before work."  Then again, in both your store and the dictionary, happy and employees come before profits.

So let me ask, is your store a great place to work?

June 17, 2009

Skepticism and Lost Opportunities

Have you ever walked into a store and seen something on sale at an unbelievable price?  If you're like most customers your first thought is, "Wow. This is great."  But then it's immediately followed by, "And I wonder what's wrong with it?"  Of course you're skeptical.  You've been told ever since you were a child that if something sounds too good to be true then it probably is. You might be so skeptical that you end up passing on a great deal.

Customers are naturally skeptical. It's a defensive mechanism to keep from being taken advantage of or making a mistake.  It can also keep customers from getting a great deal and doing business with a very good company.

Whether we know it or not, we lose sales to skepticism every day.  One of the biggest challenges for independent retailers is overcoming customer's skepticism of the independent's prices.  Most believe that an independent's prices are much higher than the big box or national chains even though that is not always the case.

Skepticism also impacts our ability to make sales.  When products are marked down customers often think there must be something wrong with them, or at the very least are something nobody else wanted - so why should they?  Customers are also skeptical of brands they've never heard of.  That's always one of the biggest challenges when you bring on a new line in a segment where brand recognition is a key part of the decision-making process. You wouldn't think twice about buying a Canon camera but you can't say the same for a Danon camera.

The key to overcoming a skeptical customer is to proactively give them the necessary information to keep them from being skeptical.
  If an independent retailer prominently posts a sign telling shoppers about the price guarantee, the customer knows that this store is competitively priced, which may or may not be the case.

The same approach works with markdowns.  If you're giving the customer a great deal you need to tell them why.  A "50% Off Our Top Sellers" or "50% Off Spring Clearance" will always be more effective than just a "50%" sign by itself. When working one-on-one with a customer you should also explain why something is "such a good deal."

You might even be skeptical of this post, which of course proves my point.  From time to time everyone is skeptical, and you'll sell more products and capture more customers if you're aware of that and take steps to proactively overcome it.

Take Five Exercise*

Brainstorm three reasons a customer could be skeptical while shopping in your store. Determine ways you can proactively overcome it.

* The Take Five Exercise is a new feature to stimulate conversation in your morning Take Five or store meetings and make it easier to put the Retail Contrarian into action.

June 10, 2009

Assorted Retail Musings: Success, Time, and Credibility

I believe that we're always either moving towards or away from success.  There is no such thing as standing still in business or in our lives. The world around us, including our competition, is in constant change and flux, so to do nothing is to move backwards.

There are times where the forces around us are greater than before, and as a result we need to double and triple our efforts to keep driving towards success. If we're not pushing harder than the forces around us then we're moving away from success. The greatest danger is when we're not even aware of it.

Let me ask, are you moving towards or away from success?

-------------------------------

I often hear owners and managers say they don't have time to do something they know they should do.  I suggest that if they really wanted to do it, they would find the time. When we say we don't have time to do something we need to ask ourselves two questions:

1. Is it important that I do it or can someone else take care of it?

2. What do I need to stop doing so I can do this something else?

We all have things we like to do but sometimes those aren't the things we should be doing.  As owners and managers we need to be focused on high-impact, high-payoff activities and delegate the low-impact and low-payoff activities to members of the staff.

Let me ask, are you spending your time wisely?

-------------------------------

What's the fastest way to lose credibility with your customer? Believe it or not, it's speaking poorly of other companies and people.  Most customers are quite forgiving if you don't know something, but they don't like rude or unsportsmanlike behavior.

Here are five ways to lose credibility with your customers:

1. Speak poorly of your competitors.  I was visiting a retailer once and heard everyone on the staff constantly put down one of their competitors. When I brought it up to the owner she said that they were just passing along what their customers told them.  I reminded her that while that might be true, it sounded like sour grapes.  Now if someone asks about their competitors they just smile and say, "We're happy to say that our customers tell us how much more like they shopping here."

2. Speak poorly of a customer. While shopping recently I heard a store employee get off the phone and then go on and on to a colleague about the "stupid" customer.  As a customer, you can't help but wonder what they say about you after you leave the store. The only stupid person here is the employee who lost all credibility.

3. Speak poorly of another employee. This sometimes happens when a customer has a problem and one employee blames another for making a mistake. You'll hear things like, "He's new and doesn't really know much." While I'm sure the employee is saying that without malice, it doesn't sound good. Instead he might have said, "Since he was new I'm sure he was mistaken."

4. Speak poorly of a product in the store. I think this is a cardinal sin that unfortunately is committed more than we'd like to admit. Employees don't think about the message they're sending about their company when they make comments like, "You don't want to buy that" or "I refuse to sell that."  The customer is left to wonder why the company continues to sell the product if it's such a dog.

5. Speak poorly of a manufacturer or distributor you do business with.
The customer can't help but wonder why you're carrying their products if they are as bad as the employee is making them out to be.

Remember the old adage, if you have nothing good to say then say nothing at all. Just as important, if you have something good to say then be sure and say it!

 

June 3, 2009

The Art of Greeting: Guest, Friend, and Customer
 

It's not hard to notice that so many store staffs rarely acknowledge customers until they make a purchase.  It's like you're invisible or unimportant until you decide to spend your money.

There are also store staffs that are clearly following a company policy of greeting every customer are as about as friendly as a dark alley at 3:00 a.m.  There's a quick acknowledgement and the obvious hope that you don't want to talk to them.

What is the right way to greet and engage customers?  Some people say you should do it within the first ten seconds a customer is in the store, others say within a minute, and clearly many retailers seem to think you should let the customer be the one to engage the employees.

First and foremost, it is extremely important to welcome each customer as he/she enters your store.  Not greet, welcome.  When you welcome customers you acknowledge that they are your priority; it is the first step in creating a great experience that will lead to a sale.

You want to engage your customer and treat them like an old (or new) friend. Inevitably, when I bring this up in a seminar or training I hear that "customers want to be left alone" or "they say they're just looking no matter what I say or do."

That's true.  Sometimes customers want to be left alone and sometimes they say they're just looking, but most of the time they do that because the salespeople aren't adding value to their experience. They're following a script, or doing something because they've been told to and not because they want to.  Customers know when a salesperson isn't being authentic.

Don't try to "help" your customer.  Don't get in his face and ask if he has any questions. Treat each and every customer like they're special.  Show them you're happy to see them in your store and that you're going to exceed their expectations.  Be an ambassador for your store.

If you welcome your customers and engage them like an old or new friend, more than 85% will respond in a positive manner (give or take a few percentage points based on where you live). So what if 15% of the people blow you off?  Don't look at it like 15% of your customers didn't let you get to know them, look at it like 85% of the people who came into your store are now your friends!  And friends help friends make purchases.

Once you have welcomed your customer, you can learn more about him/her and how the products you sell can add value to his/her life. The best customer experiences are when customers walk out with purchase they're happy they made.

That's why every single person who comes in your door should be welcomed like a guest, treated like a friend, and shown products so they become YOUR customer. That's what makes a specialty store like yours special.  Forget customer service, it's all about the experience!

May 27, 2009

So Let Me Ask

I loved a recent Daily Retail Quote that came from Robert Half.  In case you missed it, here it is again: "Asking the right questions takes as much skill as giving the right answers."  True when you're working with customers and true when you're developing your staff.

When I first start managing people I thought I had to have all the answers. Over time I learned not only that it's impossible to have all the answers but also that it's not right way to lead people, anyway.  I've come to see that strong leaders balance the questions they ask with the answers they provide.

These are some of my favorite questions:

1. "What do you think?" and "What should you do?" When I was promoted to store manager at The Sharper Image I took over a store whose previous manager made every single decision.  I'm surprised he didn't tell his staff what to have for lunch.  As a result, the staff couldn't be proactive in taking care of customers, and the manager couldn't get anything done because he was so busy answering questions.

The only way to change that culture was to answer a question with a question.  It drove the staff nuts for a while but eventually they started bringing me solutions instead of questions.  Once they became more comfortable making decisions I was able to empower them so they didn't have to come to me with a solution.  They knew how to take care of an issue or an opportunity immediately.

2. "What would you do?"  This looks like the same question as the ones above but I use it differently.  With this question we're asking for people's opinion and insight but they don't and won't own the decision themselves.

I like to ask people what would they do if it were their name on the front the building.  By doing this you will not only will get some great ideas from your staff but it's also a terrific way to develop people's understanding of how business work.  Is someone tells you that if it was his company he would run more sales you have a perfect opportunity to teach how sales impact margins and the bottom line. 

3. "What did you do well and what could you have done better." 
The best way to develop people is to teach them how to assess their own performance.  Try asking this question to an employee on the sales floor after he/she has worked with a customer.  When I did first begin doing this as a store manager, my staff knew that they had to be prepared to answer, so they learned to assess themselves after each customer interaction.

I then found it to be vital tool for managing people remotely.  I discovered that one of the toughest parts of being a multi-unit manager was not seeing my staff in person for weeks and months at a time.  By asking them to give me their assessment of their week or a particular event I was able to coach them. 

I also find this to be a great tool to use with my children.  I learned early that it doesn't work with my wife.  She just gave me The Look and said, "What do you think?" and that shows how these questions go full circle!

So let me ask, "How well do you ask questions, and what can you do to improve how you use them?

May 20, 2009

Building Advocacy Before the Purchase

Most companies and experts look at the relationship businesses have with their customers in three steps with seven stages. Known as the Customer Relationship Lifecycle. (CRL) the three steps and seven stages are:

Pre-Purchase
1. Awareness
2. Knowledge
3. Consideration

Purchase
4. Selection or trial

Post-Purchase
5. Satisfaction
6. Loyalty
7. Advocacy

Too bad so many companies take this approach because it has a fundamental flaw. What's wrong with it? Advocacy should be in the pre-purchase step.  Most companies think that only buyers can be advocates, but the fact is that some of your best advocates may not have made a purchase yet - and maybe they never will.

Smart retailers focus on building advocacy during the pre-purchase step for three reasons:

  1. To potentially turn non-buyers into advocates.
  2. To lead more buyers into becoming advocates.
  3. To use the advocacy elements to influence the consideration stage and improve the purchase potential.

To focus on creating advocates in the pre-purchase stages, consider the following:

1. Teach your employees that some non-buyers actually create a lot more revenue than the average customer spends. As a matter of fact, some studies have shown that in some businesses the highest spending customers are not the most effective advocates.  This is why we like to teach all retail employees to never label a customer as "just a looker."

2. Make it a company goal to deliver an amazing and delightful experience to every single customer. I love the retailer who told me that her goal is to have every customer who leaves her store feels better than when they came in.

How the experience is delivered varies from retailer to retailer but what doesn't vary is that retailers who deliver a superior experience have identified the steps to delivering the experience. It's usually a combination of activities including a warm welcome, a drink or some other gesture, and may include a surprise that delights the customer. The easiest way to get customers to advocate your store is to give them something to tell others about. What happens in your store that your customer will most likely tell a friend or family member about?

3. Capture contact information for all visitors.  Retailers who only capture the contact information at the point of sale are losing revenue opportunities and potential advocacy by non-buyers. Give the customer a reason to give you the contact information in the pre-purchase phase and you'll increase the number of post-purchase people.

So let me ask, is building advocacy in your pre or post-purchase stage?

May 13, 2009

Are You Meeting YOUR Expectations?

We retailers spend a lot of time trying to figure out what makes our customers happy and how to keep them loyal to us. The answer isn't usually hard to find since it almost always lies within us. More often than not those of us in the industry have higher expectations of retailers than do most customers. Tell me you don't get really annoyed when a retailer does a poor job and that you don't get excited when a retailer exceeds your expectations.

To test this out I asked a retailer in my coaching and mentor program to write down three to five things she encounters as a shopper that make it more likely she will be a loyal customer.  She responded with these four:

1.  "I want to be acknowledged when I walk into a store.  Not pounced on but acknowledged. I might or might not want to be helped right away but if they're paying attention they should be able to tell."

2. "I know this sounds obvious but they got to have something I want to buy. There used to be this cute gift store in my town with really nice people working there but I never found a single thing I wanted to buy. I eventually quit going there."

3. "I want salespeople who really know their products. That's why I buy most of my clothes at a local store, not at department or chain stores. The women at that store always know exactly what will and won't work on me. So I guess that means they really have to know me as well as they know their products."

4. "I want to be appreciated.  This is a big one for me. I get so mad when stores act like they're doing me a favor taking my money."

Then I asked the big question.  How well do you and your staff meet these standards? Before she could answer I reminded her that there is a difference between hoping they do these things and knowing they do these things. "How would I know unless I'm at the store every minute of every day?" she asked.  My answer is that you know because making sure these actions are taken is ingrained in the organization and people do them without even thinking about it.

She thought about it and said, "I know we do the first one really well.  And I'm pretty sure we have the right products for our customers.  If we didn't our business wouldn't be growing every year. I also feel very confident that my people know their products inside and out.  I think we can do better at understanding our customer's needs but you and I are working on that."

Then the phone went quiet for a minute.  She continued, "I'm not sure we really show our customers how much we appreciate them. We tell people "thank you" when they buy something but I'm not sure we do much beyond that.  It's so important to me when I'm shopping but we're not doing it very well ourselves."

We talked a bit more and came up with several actions she can take. They include:

1. When thanking the customer the staff member will also tell the customer that they appreciate their business.

2. The owner and manger will each call a couple of customers a week to express their gratitude.

3. The staff will become more diligent about sending out thank-you cards.

So let me ask, how well are you and your store(s) executing what YOU expect as a customer? I would encourage you to go through the same exercise that we just did to learn of the opportunities that you might have to deliver an even more memorable and effective customer experience.

May 6, 2009

You're Never a Long Shot

Did you see the Kentucky Derby?  WOW!  It usually lives up to it's billing as the most exciting two minutes in sports but this year it was off the charts.

As you probably have already heard, 50-1 long shot Mine That Bird absolutely blew away the field.  A horse that was purchased for a mere $9,500 and was racing against animals valued at millions of dollars is not supposed to win.

But win he did.  Mine That Bird was dead last at the ľ mile marker, in twelfth place at the mile marker, and by the time jockey Calvin Borel got him to the straightaway he had flown by the field to take the lead and win by over six lengths.  Love it!  For Borel in an emotional post-race interview to dedicate the race to his deceased parents was icing on the cake.

Obviously I couldn't help but think of all the lessons we could take away from Calvin and Mine That Bird.

1. You don't have to be the biggest or the richest to compete but you do have to be in the race to win.  Some of the horses that Mine That Bird beat were purchased as foals for over $3,000,000, are owned by very wealthy people and are trained by the most prominent and successful trainers in the business.  Mine That Bird's trainer is an unknown out of New Mexico.  While your competitors may have deeper pockets than you do, the one who executes the best will still win.

2. Seize the opportunity when it presents itself.  One of the keys to Mine That Bird's victory was the ability to not only get to the inside rail, but to get through two openings between horses to get to the lead.  Any hesitation by jockey Calvin Borel and Mine That Bird may well have been caught behind the pack, unable to break through.  We are presented with opportunities every day but they'll pass us by if we're not a) looking for them and b) willing to act quickly and decisively to maximize them.

3. Pedigrees and experience are great but never underestimate hard work and a big heart. Mine That Bird came into the race as, the Boston Globe said, "An extra in a 19-horse race of stake winners owned by bluebloods." Jockey Calvin Borel is described by Sports Illustrated as ". . .not often thought of in the first flight of today's top riders even though he has over 4,000 victories and a Derby win in 2007."  It reminded me that some of my best employees never went to college, or had no retail experience when I hired them.  Don't look at what people don't have on the outside, but look what they have inside them. The same holds true about yourself.

4. Last but not least, believe in yourself.  As Calvin was celebrating his victory while still atop Mine That Bird, he pointed toward his helmet and screamed, "It's all in your head." Think like a winner, believe you're a winner, and chances are you'll fly to victory just like Calvin Borel and Mine That Bird.

Remember this; people, horses, and companies are only long shots because someone wasn't smart enough to bet on them.

April 29, 2009

Play and Profit From SPRING Into Spring

You receive many benefits when you subscribe to our newsletter The Daily Retail Experience.  You not only gain the knowledge and skills that will make you a more successful retailer but from time to time you will also be given different tools to use in your store.  Some of the most popular tools are the contests and games that can be easily personalized for your store and will help your staff improve their on-floor skills and drive sales.

Last week we offered subscribers a game/contest called SPRING Into Spring that was an instant hit with owners, managers, and store staff.  Everybody loves a good game, especially one that results in more sales!

So now lets play the SPRING Into Spring game. This game can be played on the weekday or weekend.

Download and print out one game card and fill in the blanks based on the needs of your business. 

SPRINGintoSpringGameCardThe object is to fill in as many blocks as you can by the end of a shift.  There are a few ways you can pick a winner.

1. If everyone is working the same shift then the first person to fill out the card can win.

2. The person who fills in the most squares wins the SPRING game.  In this version there can be multiple winners.

3. Everyone who fills in the entire card is entered into a drawing for a prize.

4. However you want to do it, it's only a game!

If you would like to try The Daily Retail Experience newsletter for three weeks at no charge,  go to www.thedailyretailexperience.com and complete the form at the bottom of the page.  Sorry, this offer is limited to retailers only.

April 22, 2009

Be a More Effective Leader Today

Here are five ways to be a more effective leader today:

1. Remain keenly aware of the message you're giving.  There are no "off the record" moments in leadership.  Consider the example of a store owner/executive/manager who tells the team that he/she feels confident that goals are achievable but then talks about how much customers are cutting back or that the store don't have enough of the products that are selling.  What messages do you send, especially in casual conversations with your staff?

2. Keep the focus on what the staff can control. Why talk about the economy if you can't personally do something about it?  Why focus on pricing or inventory levels if those things are decided at the corporate office?  The staff should be discussing how to increase the average sale or pull in more traffic. Spending time and energy on what you can't impact is nothing but an energy and time waster.  Do you keep your staff focused on what they can control?

3. Have a daily plan of action.  Action is the key word.  It's amazing how busy an owner/executive/manager can be and still have his/her store(s) in a slow death spiral. I was once in a company meeting where everyone was brainstorming what we could do to turn the store sales around immediately. After coming up with a less than impressive list of ideas an employee said, "Are we just going to keep rearranging the deck chairs on the Titanic, or are we going to figure out how to pump out the water?"  He had a point.  Our list contained either low-impact ideas or things that would take forever to payoff, neither which was going to save the store. We changed our focus and ended up with a list of ideas that we could begin putting into action right away.  Do you and your team have a daily plan to succeed?

4. Remain positive and upbeat without being Pollyannaish.
As a leader, it is up to you to keep your staff's spirits up and keep them feeling good about the possibilities. Is that sometimes hard to do?  You bet, but nobody said being a leader is easy.  The difference between realistically positive and mindlessly optimistic is #3 above. When you have a good plan and you work your plan, then you don't have to worry about being a Pollyanna. Are you being a positive enough leader?

5. Lead by example. You can't just say "do this" or "do that," you have to demonstrate how to do whatever it is and then let your staff see you doing what you ask them to do. There is no break in being the leader.  So let me ask, are you displaying the right behavior at every opportunity?

April 15, 2009

Small Changes Create Impressive Results

My youngest daughter has many wonderful qualities but keeping a neat room is not one of them. In her defense she has the smallest room in the house, which is sometimes harder to maintain but we figure if she had a bigger room she would just end up with a bigger mess.

One day I decided to give her hand as we went in search of the carpet. I figured I would use the time to give her some fatherly advice on how she might better maintain her room. As we talked I saw that she was completely overwhelmed by the idea of keeping her room neat. I realized she was overwhelmed because she couldn't visualize how small changes in her behavior could lead to impressive results.

The same thing can happen to us. Not that we're not necessarily overwhelmed, except for maybe that pile of papers on the desk that desperately needs filing, but we often fail to see how small changes can result in some impressive results.

Let's take the case of a specialty store that averages about 200 people a day walking through the door. Currently the store converts 32 people a day into buyers, a conversion rate of 16%. The store's average sale is $85.  As a result, the store averages $2,720 a day in sales.

If our example store follows suggestions they read about in The Weekly Retail Experience and makes some small changes to the way they engage their customers they should be able to increase their conversion rate one percentage point, from 16% to 17%.  That 1% difference means the store converts 2 additional customers into buyers.  Assuming the average sale stays at $85, the store will sell an additional $61,500 a year in sales.  That 1% increase in conversion translates into a 6% increase in sales.  What retailer wouldn't take a 6% increase in sales?  

What if the team makes some changes to how well they recommend additional products and as a result is able to increase their daily units per transaction (UPT)?  As a result of this extra focus on the store's UPT, let's say the store increases their daily average sale (ADS) by just $5.  That sounds doable, doesn't it?  That $5 bump in the average daily sale will result in an additional $57,920 in annual sales, a healthy 5.9% increase.  Who wouldn't take that?

I'm sure you know what's coming next.  What if through small changes and some solid focus the store is able to do both? With just a 1% bump in conversion and a $5 increase in the average daily sale, this one store could increase annual sales by $123,080.  That comes out to a 12.5% increase in annual sales as a result of increasing conversion and average daily sale.  Any store would take that!  And if this was one store in a one hundred store chain, all of them making these same small changes, the company would be looking at more than $12,000,000 dollars in additional revenue.  Sweet!

I'm sure someone is thinking, "Sounds good, Doug, but how practical are those small changes?"  I say they are not only extremely practical but achievable.  If it is the last day of the month and you're pushing to beat goal, do your conversion and ADS go up?  If there is a sales contest and you're trying hard to win, do your conversion and ADS go up? 

Imagine what would happen if you did those same things you do on that last day of the month or during the sales contest every single day with every single customer?  I can imagine it.   The result of an increase in your conversion and ADS will probably be a double-digit sales increase.

Is it possible? Is it achievable? The only people who can make that decision are you and your store team.  Small changes will create impressive results if you actually take action.

Believe me, if I could eventually see Jane's floor, you can make a difference in your business.

April 8, 2009

Create an Extremely Successful You

In order to have a successful holiday weekend, store owners and managers have to think and act like successful retailers. YOU will set the tone and energy level for the weekend. YOU will either lead your team to achieve your goals or you will sit on the sidelines and probably fall short.

So here are six ways to "Create an Extremely Successful YOU" which will lead to an Extremely Successful Easter Weekend.

1) YOU achieve what you believe.  For you to meet the goals you set for the weekend you have to believe you can exceed them. That's why setting goals that are a stretch but are attainable is so important. If you start the weekend believing you're behind the eight ball, you'll never get out from behind it. You'll be destined to fail. Believe in what you want to achieve and you'll be sure to succeed.

2) Successful people like YOU don't blame outside forces.  The way to achieve success this weekend is to refuse to blame anything or anyone on why you could fall short.  Success this weekend (and every other day) is based on one factor and one factor only - how well you and your team create it.

3) YOU lead by walking it - not talking it. You know what has to happen for you to exceed the weekend goals. You need to show your staff the way.  It's what you say that matters.  People will do what their leader's ACTIONS tell them to do.  Whatever you expect from your team they need to see from you with every single customer.

4) YOUR energy creates successful store synergy.  Synergy is defined as the "interaction of two or more forces so that their combined effect is greater than the sum of their individual effects."  When store teams are on, they're unstoppable.  It's a leader's energy and passion that creates the synergy that creates success.

5) Encourage YOUR team often.  While your staff appreciates a weekend contest and the opportunity to win prizes, there's nothing more satisfying than to have their manager recognize and appreciate their contribution.  Spend the weekend praising your team and recognizing what's going right and you're sure to find success. This doesn't mean you shouldn't give constructive feedback as long as it is done at the appropriate time and place.

And last but not least. . . .

6) Success happens to those like YOU who earn it.  Almost everyone desires success. But desire isn't enough.  Success comes to those who take the appropriate actions and create the success they desire.

Your goals are set and you've got everything in place. The only thing between success and you is. . . YOU. 

April 1, 2009

The Butcher Rule Revisited

For years now we have focused our clients on training their staffs to recommend the best product that meets a customer's needs.  As simple as that sounds, most retail salespeople show the least expensive product first every time, whatever the customer says he/she is looking for.   In our Customer FIRST sales and experience approach we call this the Butcher Rule.

We named it the Butcher Rule after noticing how well the butchers at my local Whole Foods recommend the best product first.  Think about it.  When was the last time you walked up to a butcher counter, asked for a recommendation and heard, "the ground turkey is great today."  Instead, you hear 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 won't meet his/her needs, but she might suggest the free-range boneless breast chicken over the wings on special that week.

Does the Butcher Rule still make sense in a changing economy?  Could the Butcher Rule lose sales because we're showing customers the most expensive products?  My answer is yes and no.

Yes, it still makes sense to show the customer the best product that meets their needs. We're doing the customer a disservice if we don't. The key to the Butcher Rule is we're not suggesting products without having some information from the customer.

Let's say a store sells grills that range in price from $200 to $2,500.  After interviewing her customer the salesperson knows that he owned a Weber for ten years, that he wants a gas grill, and that he mostly cooks just for the family.  The customer's exact words were, "I don't need anything fancy."

Based on what the customer told the salesperson she is going to suggest three different grills. One is a mid-level grill and sells for $750, another is a step down and sells for $500, and there is always the entry price point grill of $250.

Using the Butcher Rule the salesperson might say, "I have several grills I believe are just right for you."  She will first suggest the $750 grill.  Based on the customer's reaction and response she may or may not move to the $500 grill and then on to the $250 grill.

Because of this economy some salespeople are starting with the $250 grill. That's crazy. First of all, it's not up to us to determine what our customers can and will spend.  It's our job to suggest products based on what the customer tells us.  Second of all, it will cost a store a huge amount of sales if they only recommend the least expensive products.

Are people still buying those $2,500 grills?   Absolutely.  Are some people trying to get another year out of their old grill instead of buying a new one? Absolutely.  Are some people trading down? Absolutely.  But it doesn't matter what "people" are doing.  What matters is what the customer you're working with needs, wants, and is willing to buy. They deserve to be shown the best product that meets their needs.  Period.

So yes, the Butcher Rule is still valid in this economy.  You could even make a case that it's more important than ever since people want to get the most value for their money.

So let me ask, are you and every employee in your store still applying the Butcher Rule?


- Doug Fleener and Matt Norcia
Beyond the Butcher Rule
Let us bring our Customer FIRST retail approach to your company or stores. Our proven approach will help your staff to maximize their customer opportunities and grow their sales. We offer ˝ and 1-day seminars, as well as a train-the-trainer approach. Give Doug a call at 866-535-6331 to discuss the best solution for your company.

 

March 25, 2009

A Positive Spring Perspective

Here in the Northeast the arrival of spring is a bit subtler than in other parts of the country. While we're happy that most of the snow has melted, those warmer days and budding flowers still seem far off in the distance.

But if I think about it, maybe we really are closer to that spring weather I'm looking forward to.  It has been a long time since I experienced spring and in the meantime we've lived with months of cold and an above average amount of snow.  Could it be that my perspective is clouded by four months of gloomy winter?

Clearly, the answer is yes.  When I wake up today I heard birds chirping, a sound I didn't hear just a few weeks ago.  At the end of the workday the sun is still shining, a welcome change.  And I can't forget that a lighter weight jacket has replaced my heavy winter coat.

I believe things are getting better in spite of my perspective!

Could the same thing be happening in your store?  Could things be starting to improve a bit in your store?  I'm not saying the economy is in a lot better shape (unless of course you were on the AIG bonus list) but is there a chance that your perspective is looking backwards rather than forward.

I recently exchanged emails with a retailer who planned to introduce the theme "We're Not Participating in the Recession" at her annual meeting.  While she didn't ask for my opinion, I did share with her an experience I had with that theme.

Late last fall I used the same line in a presentation.  Afterwards, a woman came up to me and reminded me that a lot of people don't want to participate in the recession but that hasn't kept them from losing their jobs. While she didn't say so directly I could sense that maybe the recession was hitting home for her whether she wanted it to or not.

From that day forward I quit saying that line.  While I know people mean it in a positive way, I can't help but think about this woman and so many others who have been forced to participate in the recession.

In my email exchange with the woman planning her annual meeting I hit upon a better way of rallying her team.  We came up with the "Let's Lead the Recovery!" theme.

Isn't that so much more positive?  Instead of dwelling on a negative past, "Let's Lead the Recovery" focuses on around creating a positive future.  Creating!  Taking Action!  And it doesn't hurt anyone who may be struggling as a result of the recession.

Perspective can make a difference.

So let me ask, what's your perspective?  Are looking forward to a more positive future or are you dwelling on that gloomy past?

Spring's not here yet but it is a lot closer than it was yesterday. Ah, perspective.

 

March 18, 2009

From Stranger to Superhero to Friend

While wandering in and out of stores in New Orleans last week I became aware of the strikingly different attitudes retail employees present to customers.  In just one hour I was treated so differently I started to develop a personality complex.

Some retail associates treated me like a complete stranger, doing every thing possible to avoid eye contact.  It was almost like we were meeting in some dark alley, not a well-lit mall surrounded by people.  At least when our eyes did (accidentally) meet they smiled and then went about their business.  I followed their lead, left their store and went about my business, too.

Other store employees treated me like a superhero - if the superhero was Invisible Man.  I'm not complaining because at least they weren't avoiding me and I could see they were extremely busy.  Busy playing solitaire, updating Facebook or checking phone messages.  I didn't want to interrupt them so I disappeared from the store, which is easy to do when you're Invisible Man.

I'm happy to say that some associates treated me like a visitor.  They acknowledged me when I walked in to the store and politely offered their assistance if I needed any.  I appreciated their attention but because I didn't need anything I didn't buy anything.  It was a nice visit, though.

In two stores it was much different.  I wasn't a stranger, I wasn't Invisible Man, and I wasn't a visitor. Instead, I was a new friend.  In both of these stores I felt like those salespeople were glad to see me. They were happy, smiling, and inquisitive. As friends do, they asked where I had been, where I was from, and if I was enjoying New Orleans.  Never once did they ask to help me.

One woman was so friendly she wanted to know if I was visiting with family or not. When I told her that I was traveling alone, on business, she inquired about my children. And being such a good friend, she pointed out some nice Mardi Gras beads she thought my children would like.  I have no idea how she knew my daughter's favorite colors are red and blue, but then again she was my new friend.

She was also kind enough to sell me some of those famous New Orleans pralines, and she suggested a couple of other things that I declined since I didn't have much room in my luggage. While it was only about a $15 sale, it was a sale that my new friend created. And if she treated every customer like a new friend I can't imagine how much those $15 sales added up to.

I'm sure you don't treat your customers like a stranger or Invisible Man/Woman.  So let me ask, do you treat your customers like a visitor or a new friend?  I can personally vouch for the effectiveness of making friends.

 

March 11, 2009

Every Customer a Sale

There are multiple definitions of the word "sell."  In our Daily and Weekly newsletters we usually focus on the transfer of goods and services in exchange for money and to persuade or induce someone to buy something.  Another definition of sell is also important to our success and that is to cause or persuade to accept; convince.

Good retail associates sell much more than just products.  They sell their customers on talking to them, they sell them on trying something out or on, and they even sell them on coming back.  Some associates don't sell at all; they just hope, ask, or wait for the customer to decide to do something themselves.

For some reason, many retail associates have a negative view of selling.  They equate "selling" with being pushy and obnoxious.  Naturally, being pushy and obnoxious is not going to work.  Selling means, as it says in the definition, to "convince" or "persuade." The best associates do that by smiling, by taking a genuine interest in their customers, by being passionate about the products they sell, and by believing that the most satisfied customers are those that make a purchase.

So let me ask:

Do you persuade (sell) customers to engage in conversation with you or do you just hope they'll start talking to you?

Do you convince (sell) customers to try out a product or try something on, or do you wait for the customer to do it him/herself?

Do you persuade (sell) customers on the value of sharing their contact information, or do you just ask for it?

Do you influence (sell) customers on coming back for a future visit, or do you just hope they do?

Do you induce (sell) a customer to have their friends and family come visit your store, or do you just hope they'll put in a good word for you?

Do you persuade (sell) your customers into buying products they like and are right for them, or do you just show them something and hope they decide to buy it?
 

Selling requires action.  The exact actions depend on the relationship between you and your customer.  "Hope" and "wish" are feelings, not actions.

Actions create happy customers.  Actions create sales.  Are you selling every customer?

 

March 4, 2009

The Competitive Advantage of Being an Opportunist

op·por·tun·ist     (ŏp'ər-tōō'nĭst, -tyōō'-)  
n.   One who takes advantage of any opportunity to achieve an end.

Last week I was talking with a retailer about the importance of optimism, especially these days. I loved her comment, "I'm both an optimistic and an opportunist."  I have to say I don't think I've ever before heard anyone describe herself that way.

She explained that her father used to say that one of the keys to success is to never miss an opportunity when one is presented to you.  She said that it was her father's belief that people encounter many more opportunities than they realize.  As a result, they miss out on many.  So this woman has lived her entire life looking for opportunities every single day.  I don't know about you but I find this incredibly powerful.

It reminded me of a salesman who worked for me at The Sharper Image.  I like to joke that Jeff was the most annoying man in retail but boy, could he sell. Now that I think about it, what made Jeff so successful is that he was an opportunist.  He saw opportunities no one else on the staff did.

He was the kind of person who would ask questions and show products to a customer who came in asking us to make change for the parking meter.  When other salespeople might be annoyed at being asked to make change by someone who clearly didn't plan to make a purchase, Jeff saw an opportunity to engage the person and attempt to make a sale.  To tell the truth he was rarely successful in making a sale to the person asking for change but it's that opportunistic mindset that made him our top salesman almost every month.

Jeff is the only person I've ever known who tried to sell the UPS guy something every day.  We always told Jeff to back off but of course when the UPS driver finally did make a purchase it's not hard to guess who made the sale.  Jeff.

Are you looking for the opportunities in your day or could you missing one or two as so many people do?  Think about it.  Every day there are coaching opportunities, selling opportunities, new product opportunities, learning opportunities, and for you single readers there might even be romantic opportunities!

Here's a challenge I'll throw out to you today. I'd like you to find one or two opportunities today that can improve your business, your staff, or most of all.. . . . .you!

In these times being both an optimist and an opportunist will be an incredible competitive advantage.

February 25, 2009

The Everyone Trap

My oldest daughter and I have the same conversation almost every week. It usually goes like this:

Kate: "When can I get a cellphone?"

Me: "For the 134th time, when you need one." (The only thing that changes is that the number goes up each time she asks.)

Kate: "But I need one."

Me: "Did you have a need to call someone and not have access to a phone?"

Kate: "No. But I still need a phone."

Me: "Why is that?" (I don't know why I bother to ask this question because I know what's coming.)

Kate: "Because everyone else has one."

The conversation will go on a lot longer if I ask her who "everyone" is but I know for a fact that Kate is not the only student in the whole sixth grade who doesn't have a cellphone. Many do, but not everyone.

I've never said we won't buy her a phone, I've said that we'll get her a phone when there is a need. But rather than focus the discussion on why she needs a cellphone, she gets tripped up because of her perception of "everyone" else.

The same thing happens to adults, too. (You knew I had to eventually get it back to retail and management or I would have to rename this The Weekly Parent Experience.) Lumping "some" into "everyone" can actually cause people to make poor decisions that do impact everyone - and the bottom line.

I had a call last week with a retailer whose store is losing money. At one point she said, "But everyone is struggling." First and foremost, not everyone is struggling and I can guarantee that not everyone is losing money. What matters is what is happening in her store and what she's doing to stem the losses.

I've also heard over the last few weeks:

* Everyone has stopped buying. If that's the case why are retailers letting people walk out of the stores with their products? And why are the thieves standing in line at the register before stealing?

* Everyone is asking for a discount. Some are looking to pay less but if every customer is looking for a discount then I suspect your pricing is way out of line.

I've also heard "everyone" comments about employees, vendors, and the business community as a whole.

The minute we starting talking about "everyone" we've given up the ability to manage or control our own destiny.

If the staff thinks all customers are cutting back then they will miss making sales to all of those people who are spending money. If they believe that all customers are asking for a discount they'll go into each customer engagement in a defensive mode that will cost sales. You can't work successfully with a vendor if you think all of them are changing how they do business.

As specialty retailers we succeed one customer at a time. There is no "everyone." There's just someone. An individual "someone" in front of us or on the phone; someone with a unique life and a unique set of circumstances.

Don't fall into the "everyone" trap. Not only will staying out of that trap help you be a more successful retailer during challenging times but if you're a sixth grader it might even help you get your first phone.

Have a great week!
 

February 18, 2009

Extraordinary Actions for Extraordinary Times

Last week I shared here seven things that retailers could do on a slow day. They were:
  1. Create an event. 
  2. Call your customers. 
  3. Put an employee near the front door and invite people in to enjoy something to drink and eat or to participate in a special event. 
  4. Keep music playing throughout the day. 
  5. Don't let the staff congregate in the store. 
  6. Ask (or politely tell) your customers to tell their friends and family about store specials or events. 
  7. And last but not least, maximize the traffic you do have. 

While a number of retailers responded via email to share their experiences on how they've used these ideas and served up some of their own, one of my "regulars" Pam responded much differently.

In not so many words Pam said that my suggestions didn't go far enough. She said "that in drastic times retailers need to take drastic actions." She need rattled off some of her own ideas including:

  1. Change your store around.
  2. Buy off-price.
  3. Rework your inventory budget.
  4. Move out merchandise that hasn't moved to increase your cash flow.
  5. Buy just in time.
  6. Buy off price and mark it down aggressively.
  7. Get the store in tip top shape for when traffic picks up in the spring.
  8. Call your vendors and see if there are any extra good deals being offered to freshen up your merchandise.

While I think that all of Pam's ideas are quite valid, not everyone who reads The Weekly Retail Experience can or even needs to do these things.  Not every store has seen the huge drop-off in sales and traffic others have experienced but for many stores Pam's ideas are on the money.

Framing Pam's point a bit differently, these are extraordinary times and call for extraordinary actions.  The specific actions necessary will be different for every store. They will be different for every executive, owner, or manager.  What matters is what extraordinary action YOU are taking today.

If you're a store manager, what are you doing that is extraordinary?  What actions are you taking to achieve your sales goal today?  Is it improving your staff to increase your average sale?  Is it motivating your team to drive traffic?  Is it doing more with less, and not just doing the same things you've always done?  Are you feeding information to those who make pricing and buying decisions?  Are YOU taking extraordinary actions?

If you're an owner, are you aggressively managing your inventory?  Are you making the floor moves to improve your store?  Are you buying right and pricing to sell?  Are you looking for the long-term opportunities that are out there for retailers in strong cash positions?  Are you maximizing your staff?  Are YOU taking extraordinary actions?

If you're an executive, are you engaging your stores to make sure your entire company is working together to succeed?  Are you asking and receiving feedback from employees and customers?  Are you streamlining your operations without sacrificing your customer experience and your store support? Are you being the visible leader your stores need? Are YOU taking extraordinary actions?

There is no one-size fit all action in this economy.  We will continue to help you maximize your customer experience through your people.  That's what we do and we do it very well, and as a specialty retailer that's what you need to do in any economy. Wherever you are or whatever you sell, an extraordinary customer experience will always result in higher sales today and more sales tomorrow.

Have an extraordinary week.

February 11, 2009

Turn Slow Days into Good Sales Days

Try some - or all - of these seven ways to create more quality traffic and sales during slower days:

1. Create an event.  Remember in college when "every day was a good day to throw a party?" Well, maybe you didn't go to the same college I did, but one of the best ways to create traffic is to give people a reason to come to your store.  Don't miss the biggies like Groundhog Day or Valentines Day.  This Friday is the 13th and could be a fun way to kick off Valentines Day.

But after you hit the obvious "Days," create your own.  How about Avoid Spring Cleaning Day, Pitchers and Catchers Reporting to Spring Training Day, or We Love Cupcakes Day?  Heck you can either do Celebrate Thursday Day. The more fun and different the event, the more likely you are to pull people in.

2. Call your customers.  I know this one isn't a favorite of most employees but on slow days the best investment of the staff's time is to get on the phone.  Obviously you want to call your top customers who haven't been in the store for some time.  Think about calling some recent buyers to make sure they're happy with their purchase.  You'll be surprised how often that leads to additional sales.  Of course if you're doing events you call and invite customers to join you.

3. Put an employee near the front door and invite people in to enjoy something to drink and eat or to participate in a special event.  Don't be overly aggressive; wait to make eye contact with a person before inviting him/her into the store.  The key is to have a reason for them to come in (beyond your good-looking face, of course).

4. Keep music playing throughout the day.  On slower days a too quiet store can unnerve some people and cause them not to stay as long than if other customers were in the store.  You might even turn the music up a bit louder than usual so people passing in front of the store hear it.  Just be sure it's not too loud for those customers already in the store.  

5. Don't let the staff congregate in the store.  I recently walked into a store on a weekday afternoon and felt like I needed to walk through a rugby scrum to get to the merchandise I wanted to see. Customers who only have a mild interest in visiting your store will turn away if they see more employees than customers.

6. Ask (or politely tell) your customers to tell their friends and family about store specials or events.  This is the most low-cost, low-tech, highly effective method to increase your traffic.  The power of suggestion is amazing.  The odds of people advocating your store go up considerably when you ask them.

7. And last but not least, maximize the traffic you do have.  Sometimes the traffic really isn't that bad but once we start to think it's a problem we miss opportunities.  Remain positive, keep engaging your customers, and take action to make your week.

So let me ask, what can you do today to make it a Good Sales Day?

 

February 4, 2009

Are Your Staff Believers?

When I was a kid one of the first bands I was into was The Monkees. Yes, the Monkees. I never missed their show on television and knew all of their songs by heart. So while shopping yesterday I immediately noticed when the Muzak in the store was I'm a Believer.

If you're over 40 I'm sure you could sing along with me. "Then I saw her face, now I'm a believer, without a trace of doubt in my mind, I'm in love, I'm a believer, I couldn't leave her if I tried."

Naturally the song stayed stuck in my head for hours.  As I walked into different stores humming I'm a Believer I started wondering if the store staffs I encountered were Believers. Did they believe that customers were coming into the store to spend money? Did they believe they were going to be successful that day?

If I asked the employees those questions I'm sure they would say, "Of course I'm a Believer." But as we all know, actions speak louder than words.

Are your employees Believers? Do they believe that customers come into your store to spend money? Do your employees believe they have a good shot of achieving goal for the day?

Here are some quick tips to turn any staff into Believers:

1. Accentuate the positive. I can't emphasize this enough.  I don't believe in ignoring the negative but I do believe in highlighting the positive. If traffic is off 5% you still have 95% of the previous traffic. Many retailers would love to be able to say that.

2. Give achievable stretch goals. One of the biggest mistakes a retailer can make right now is to give the staff a daily goal that can't be reached. If a store is trending down 35% but the goals remain the same, even Mickey, Davy, Mike, and Peter couldn't turn those employees into Believers.

3. Give the staff three tips and tools Every Day to enable them to exceed goal.  This might include:
* A contest
* A selling tip
* A product of the day
* A spiff
* A drawing
* A roleplay
* A marketing activity
* And the list goes on and on.

People are Believers when a Believer leads them. And just like the staff, Believers demonstrate their commitment by their actions. If managers and/or owners are not doing the things they need to do to have a staff of Believers, then clearly they're just a Daydream Believer and there's no chance of them being retail homecoming queen. (Sorry, I couldn't resist.)

What do you need to do today to have a staff of Believers?

 

January 28, 2009

Your Upcoming Successful Weekend - or Not

Here are five actions you can take to increase the likelihood of having a successful weekend.

1. Offer the customer a free service. Retailers who sell jewelry or handbags can offer to clean the customer's jewelry or handbag while they shop.  Shoe stores can offer to change out the shoelaces in their customer's shoes. Cellphone retailers could offer a mini tune-up on the phone by polishing the display, cleaning the camera lens, and checking for any software update.  And before you discount this idea you might want to talk to Susan who did this last Wednesday and made a $1,000+ sale to one customer!

2. Create impromptu events. Pick a product or product category and offer demonstrations throughout the weekend.  To thank your customer for taking time to participate in the demonstration, enter him/her into a drawing for a free product or gift card.  Not only will this engage customers and increase the possibility of making a sale, but you'll also get contact information to follow-up with them next week.

3. Offer some aggressive weekend-only specials. While I'm not a big fan of competing on price, some weekend specials are great for "priming the pump."  Be sure to highlight that the specials are only good through Sunday.

4. Offer food and drinks. I'm telling you, this works, and one of the reasons it works is because so few people do it.

5. Combine all four into a Customer Appreciation Weekend. Sometimes the best parties are the impromptu "just because" kind. People right now need to feel good and be appreciated, and if anything this will create good Karma!


Here are now five things that you can do to decrease the likelihood of having a successful weekend.

1. Stalk customers as they shop in the store. Remember, if you follow a customer around without adding value it's called stalking, not service.

2. Be too quick to ring a sale and don't offer the customer additional products.  You want to have a high Unit-Per-Transaction (UPT), not a high Undersized-Purchase-Total.

3. Plan on having a so-so weekend.  Plan to succeed.  Positive energy works wonders.

4. Don't work the customer, clerk the customer.  As someone said to me the other day, if you don't know the difference, you're clerking.

5. Do the same thing you've done every weekend this year. That is, of course, unless you've beat your sales target every weekend this year. If that's the case then hit "reply" to tell me what you're doing and I'll share it with your fellow readers.

Good luck, have fun, and make your successful weekend a reality!

 

January 21, 2009

The Leader in You

As of approximately noon Eastern Standard Time on Tuesday those of us in the United States have a new president and a new leader. That seems to be a good opportunity to review the leader in you.

Jim Kouzes and Barry Posner, the authors of my favorite business book The Leadership Challenge, say that leaders must unite their constituents around a common cause and connect with them as human beings.  That only happens when you connect with your staff from the heart.

Ask yourself these four questions to see how you’re doing as a leader and gauge your ability to connect with and inspire the hearts of your constituents.

1. When rallying your team and sharing your vision and strategy, do you speak from your head or your heart?  Followers use their heads to process the information that is presented to them; passion comes from the heart.

To connect with the heart we must speak from the heart.  Open up.  Tell stories that have shaped either this new direction or your own personal convictions.  Stories are wonderful ways to motivate and teach others.  Sure, there's a lot of information behind your decision but rarely does information by itself create a connection.  If it's passion you want, it's passion you must deliver.

2. Do you speak as a colleague or friend, or do you speak from an authoritarian point of view?  Everyone knows you're the boss.  You don't need to remind them. Remember, your employees have a choice: to follow you with conviction and purpose, or to simply go through the motions. It's not like they're going to stand up and say, "No way buddy. You're a jerk. Lead this!"  You may never know until you fail that your team wasn't with you.

I know that I'm more likely to follow someone I not only like and respect but whom I believe likes and respects me.  Never treat anyone as a subordinate; deal with people as trusted colleagues. Your success depends on it.

3. Do you frequently encourage your staff? When giving instructions or projects do you tell your staff members that you know they'll do a good job and that they'll be successful? When they fail, do you let them know that it's okay and that together, with your help, they'll succeed next time?  Do you ask them what they need to be successful?  Do you cheer them on when they're down?  Do you recognize them when they succeed? If they've fallen short do you let them know they're still valuable?

4. Do you show them you care? The old adage that actions speak louder than words is so true when it comes to connecting with and inspiring the hearts of your staff members. Do you recognize accomplishments with notes?  A gift?  A smile?  A heartfelt "Thank You"?  Do you celebrate birthdays?  Do you recognize their employment anniversary? Do you