Fun with Fleener on his retail blog

    by Doug Fleener

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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?

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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?

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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 ¾ 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 ½ 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 share in their joys?  Their sadness?  Do you accommodate them when necessary?  Do you help them strike a balance between work and life?

How good are you at connecting and inspiring the heart of others?  What do you think your employees would say if I asked them?  What would they say about your ability to connect with and inspire them?  Because ultimately, that's what really matters.  We make the choice to lead but at the same time others make the choice to follow.

So let me ask, are you inspiring others to follow?

 

January 14, 2009

Six Ways to Overcome "I'm Only Buying What's on Sale"

Contrary to what's taking place in retail today, you can't give products away and stay in business. We have to make sales AND profits.

But some might protest that right now customers are only buying items that are on sale and if they can't buy something on sale they won't make the purchase.  I don't agree.  I think a number of customers do come into a store with the intent to only buy items that are on sale. Intent!  A great experience and a well-trained staff can overcome that need for a sale price.

Here are six actions you can take with your next customer to move past their intent to only buy products on sale and have them leave thrilled about their full price purchase.

1. Deliver an engaging and enthusiastic welcome.  I firmly believe that the first thirty seconds makes or breaks most sales. A welcome is especially important when other retailers are cutting back on floor staff and the remaining employees are not feeling too thrilled about the atmosphere.  Big smiles and big welcomes really do overcome "sale price only" intent.

2. Be the best experience your customer will have today.  Most retailers have to do sales because they are in the business of transactions. I'm positive that if you make sure that every customer who walks through your door has the best experience he/she will get in the entire day, price becomes secondary.  As a matter of the third annual Customer Experience Impact Report from Harris Interactive found that 58 percent of U.S. consumers said that in a down economy, they will "always" or "often" pay more for a better customer experience.

3. Assume every customer is a buying customer.  Let them prove you wrong or even better, let them prove you right.  Treating every customer as a buyer increases the likelihood of making a non-sale sale.

4. Engage with purpose. Find the reason the customer has an interest in your store.  As I tell my speaking audiences, I don't walk into sewing machine stores but I do walk into sporting goods stores.  Learn who your customer is and why they're in your store.

5. Focus on the personal values of the customer, not price.  Think about your own shopping.  Is it more important to you to find a product you love or a great sale price? Of course we all love to get both, but most people would rather find the right product at a fair price than compromise on the product at a great price.

While your competitors are only telling the customer what's on sale, you should be learning what's important to your customer besides price.  Whether it is fashion, convenience, quality, ease of use, or whatever, focusing on your customers' values before price will increase your odds of making a sale.  When people want something price almost always becomes secondary.

6. Give the customer an opportunity to make the purchase.  It's as simple as asking the customer to buy it. The more bad economic news there is, the less likely your competitors will ask for the sale. Do you?

So let me ask, are you ready to be successful, sale price or not?

 

January 7, 2009

Learning From My New Best Friend Mario

 

I have a confession to make. Since Christmas morning I've become totally hooked on Mario Kart. For those of you without children or a video game habit, Mario Kart is a fun little go-kart racing game based on the Super Mario series from Nintendo. The only problem with the game is that it's extremely addictive.

I sat down to write this newsletter and there beside me was the Wii Steering Wheel calling my name. It took every ounce of willpower to. . . well, let's just say willpower is overrated.

After twenty minutes of action-packed driving I remembered I still needed to write today's newsletter. But that's okay, because I realized that there are several business lessons in that fun little video game.

Here are two of those lessons I've learned playing Mario Kart:

1. Practice doesn't make me perfect but it sure makes me a lot better.  When I started playing this video game my daughters, who first played last summer, left me in the dust. The conversation between them was whether I would finish in 11th or 12th place.  But the more I practiced the better I got; I'm proud to say that I am now a fairly competitive driver.

The same thing applies in a store.  As a manager I hated having difficult conversations with employees until I learned to practice them beforehand.  That also held true for calling customers to invite them into an event or as a follow-up after a purchase. Practicing a few times with another person makes it a lot easier and as a result that call goes so much better.

This is especially true for the customer experience.  The most productive stores almost always keep practicing and improving their customer experience.  They break down the elements of the experience and pay special attention to those elements that create sales.  If your store slows down after the first of the year, take time to practice for Every Day Success.

2. When I run off the path, the quicker I get back on the better I do.  While this sounds so simple, my early racing proved differently.  Whether it was the long grass of Moo Moo Meadows or the deep waters of Peach Beach, I was taking too long to get out of where I was and get back in the race.

Sound familiar? It happens to all of us. We all run off the path from time to time but what really matters is how quickly we get back into the game. I was in a local store today that usually has very good service but this time the staff was definitely off the path. They were lethargic, ignoring customers and, frankly, having conversations they shouldn't be having on the floor.

I wanted to tell them that the competition is going to pass them if they don't step on the accelerator, get back on the path and go!  I admit that's a sign of a guy who played too much Mario Kart over the holiday break - but on the other hand it's probably the best advice I could give any retailer here at the start of 2009.

So let me ask, are you on the right path with the pedal to the floor?

Or, for you Mario Kart players, are you on the right path with the #2 button pressed down?

December 31, 2008

Every Day Success in 2009
Here are my final thoughts on 2008. Good riddance!

As 2009 begins, our industry is facing the most tumultuous year in a very long time.  A dramatic pullback in consumer spending is causing a ripple effect from retailers to manufacturers to suppliers to landlords and on and on and on. Many experts are predicting that more stores will close in 2009 than in any year since the early 1970s.

Not a pretty picture.

I never forget the human toll this economy takes. I know that for every store that closes, whether it is locally owned or part of a national chain, employees and their families are dramatically affected. These are not easy times, and they’re especially challenging for retailers.

But with these great challenges come great opportunities.

Fewer stores will mean less competition.  Consumers will shy away from retailers who are either known to be struggling, or project an air of “struggle” in their customer experience.  Consumers will continue to seek out and remain loyal to retailers who deliver a good value and a great experience. Will you be one of those retailers?

You can CREATE and MAXIMIZE the success you deserve in 2009 IF you’re 100% ENGAGED.  That’s true for every owner, executive, manager, support staff, and salesperson.

But it won’t happen on its own; those days are long gone.

In order to succeed, specialty retailers must now create enough store traffic every day.  Events, educational programs, and other activities that drive traffic will be key in 2009. Will you be able to create enough traffic to succeed?

Specialty retailers have to maximize every customer every day and turn it into a sale.  Retailers who still think that all they have to do to make a sale is open the door are in deep trouble. And there are a lot of them out of there.  Only 20% of the stores I visited last weekend even attempted to make a sale. I will not be surprised if at least half of those stores are gone by this time next year.  Are you maximizing every customer opportunity?

Specialty retailers must also focus on creating a customer-focused staff that is engaged and maximizing every single customer opportunity everyday. Great people are the only way to compete against the discounters who commoditize products. Is your staff ready to maximize the opportunities you create?

Keeping customers in 2009 will be even more important than making a sale. Retailers will have to engage their customers every day to create the long-term loyal advocates necessary to compete in these challenging times.  Remember, if you keep the customer you’ll get the sale. Will you?

And last but not least, success or failure in 2009 will come down leadership.  No one achieves success by hoping or wishing for it. Success comes when the leader(s) of a store or organization create positive energy and make sure everyone is taking positive actions every day.  Are you ready to lead?

We are. It is our goal to help your organization create Every Day a Success in 2009. We’ll help you succeed every day so you can make your week, your month, and then your year. You’ll be thriving when other stores are just trying to survive.

I welcome the opportunity to discuss how we can help your store create Every Day Success in 2009.  Whether you’re a large international chain or an independent retailer, we can help.

We’re ready to MAXIMIZE 2009. Are you?

 

December 24, 2008

Maximize Your Post Holiday Opportunities
I believe that high executing retailers can beat last year's numbers for the last week of December if they have their staff focused on turning returns into sales and shoppers into buyers.

I also believe that consumers who have been cautious this holiday will cut loose right after Christmas. Shoppers will be looking to spend those Gift Cards they received and exchange those unwanted presents for something else. A staff with a post-holiday positive attitude has the best opportunity to create positive post-holiday results.

A retailer once said to me that returns are "just a fact of life" and you have to "grin and bear it." I agree with him about the importance of the grin but I differ about the need to "bear it."  All retailers will have returns after Christmas; how the retailer handles those returns can ultimately determine their month.

There are three common mistakes retailers make when it comes to holiday returns:

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

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

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

With the right approach to handling post-holiday returns, a retailer can not only save sales but create them as well. This year we are again recommending that your staff members know and execute the "Three I's with a Smile" approach to handling returns and exchanges.

1. Intercept all customers before they get to the counter. Greet them with a warm smile, a heartfelt "welcome" and an offer to take the return from them.  In most stores associates rarely do more than point toward the counter any customers who are seeking to make a return. This is not only a big mistake that ends up increasing the amount of returns, but it makes the person with a return feel less important than person making a purchase.

Try to engage the customer as close to the door as possible without making them feeling accosted. If a customer gets to the counter un-engaged your chance of saving the sale is greatly decreased.

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

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

A store manager of mine use to say, "Any retailer can make buying something a good experience for a customer, but it takes a GREAT retailer to do the same with a return or an exchange." When done well, the return or exchange will be a GREAT experience for both the customer and the store.

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

 

December 17, 2008

Crunch Time Success Tactics

Try these four tactics - they just may help you be wildly successful this last week before the holidays.

1. Review and improve your impulse items.  Take a look at the impulse items you have at the counter.  Are these products selling at or above your expectations?  If not, you need to take action and not wait for them to magically start selling. Even if your sales and traffic are off you should still be moving impulse items at the counter.

I've heard that a number of national retailers are switching out their impulse items for lower price points to increase sell through. We're also seeing retailers repositioning impulse items in the aisle to increase attachment rates with related items and to increase units per transactions.

2. Make sure your staff knows how to properly answer the "What's on sale" question. This is especially important if you're a specialty store with limited sale items.  Even more to the point is using the opportunity to engage the customer and identify the opportunities to create a sale.

Customer: "So what's on sale?"
Employee: "We do have some great values. Are you looking for yourself, someone on your list, or even both?"

Customer: "So what's on sale?"
Employee: "We do have some wonderful specials right now. Whom on your list are you shopping for??"

Don't show any specials or sale items until you know the answer to your question.

3. Remind customers who else should be on their list.  Instead of just asking the customer whom else they need to buy for, remind them of some people they may have forgotten such as hairdressers, babysitters, blog writers (that's a joke!) and others.

4. Remind your team that they may need to work with multiple customers from here on out. When a store gets slammed, employees must shift from working one-on-one to one-on-many.  The sales process doesn't really change, you just break away at different points. Here's a simple example:

One-on-one
This cable sweater will look beautiful on you.  I know that both the blue and green will both look fabulous. Let's go have you try them on.

One-on-many
"This cable sweater will look beautiful on you. I know that both the blue and green will look fabulous.  Why don't you go try them on and I'll meet you in the dressing room in a few minutes." (Employee them jumps back to another customer.)

Here's another example

One-on-one
Based on what you've told me about your husband, I'd recommend this XYZ by Motokia. You mentioned that he gets lost a lot so let me show you how the GPS in this works.

One-on-many
Based on what you've told me about your husband, I'd recommend this XYZ by Motokia. (Employee turns to a customer next to them who is also looking at the same phone.) Hi, if you'd like to join us I can also show you some of the features I'm showing Mrs. Smith. (Back to the Mrs. Smith) You mentioned that your husband gets lost a lot so let me show you how the GPS in this works."

You do have to be careful that the second customer doesn't try to dominate the conversation.  If that starts to happen then you can either ask another salesperson to step in and assist them or you can tell them you'll be with them in a moment. When done well you can close both sales at the same time.

 

December 10, 2008

Crazy Busy or Crazy the Store is so Slow

The first two weeks in December are some of the most challenging days of the season.  It seems the store is either extremely slow or exceptionally busy.  The customers who are in the store seem to either buy up a storm or storm off when you try to help them.  What's a staff to do?

I'll start with the easy part, a hopping store full of buyers.  It's times like this that make working retail during the holidays so much fun. Here are some tips to ensure as much money as possible makes it into the register.  I know you've heard these all from me before but December is a good time for a refresher course.

1. When showing a customer different products always give your opinion on which one he should buy. Even better, suggest he buy all of them.

2.  Remember the Butcher rule; always show the best product first. 

3. Never ask "Will there be anything else?"  That's code for, "You're done, right?"  Instead, ask who else is on your customer's shopping list.  Keep asking questions and suggesting products until the customer says he/she is done.

4. Don't bring the customer to the counter until she tells you she is done shopping.  If the customer has several products in her hands and you want to help her out do not say, "I'll put these behind the counter."  Don't even mention the word "counter" or "register." Instead say, "Let me hold these for you while you continue to shop."

Now, about those slow days and the "just looking" crowd.  Try these tips to turn the browsers into buyers and the register into singers.

1. Do NOT ask the customer how you can help him. I was in a mall over the weekend and was shocked at how many times I was asked that question. You know the answer, why bother to ask the question?

2. Do welcome the customer and tell her about your store's holiday specials. "Hi, welcome to ABC Kitchen Supply.  We have some amazing holiday specials including a buy two get one free."  What you follow-up with depends what works for you personally and your customer's reaction to your welcome.

3. If the customer appears to be open to your engagement you might ask him how he'd doing on his shopping list or if he's treating himself to something.  Use however the customer to ask a follow-up question.  Suppose the customer says, "Well, the good news is that I'm almost done with my shopping."  You could respond with, "Congratulations. I'd love to show you a few things to help you complete it.  Who's left on your list?"

4. During this time in the season you need to be persuasive and proactive in moving the customer into your products.  I'm not saying to be overbearing or obnoxious but you can't be passive and just ask people if they need to be helped.  As one fiery retailer in Las Vegas says, you can work it or clerk it.  The key to "working it" is to display passion, energy, and a true interest in the customer.

So whether the store is crazy busy or you're crazy the store is so slow, be sure and maximize every opportunity with every customer.

December 3, 2008

Wednesday Musings: Maximizing Downtime, !!!!, and Other Holiday Stuff
Every Wednesday I share some assorted musings with my Daily Retail Experience subscribers. This week I thought I would share them with you too. Enjoy!

Successful retailers know they have to maximize both busy and slow times during the holiday season.  Many store staffs do a great job when they're busy but waste the slow time by standing around waiting to get busy again.  This year more than ever, stores need to be productive on the slower weekdays.  I say all hands on deck calling customers and anything else that can be done to drive additional traffic.
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Speaking of all hands on deck, a reader whose business was struggling told me how he used their downtime during the holiday to rearrange the store. I never heard back when I asked why he didn't use it to generate additional sales and traffic. Then again it might have been that comparison to the furniture on the deck of the Titanic.  I'll say it again, use your down time wisely. It could be the difference this holiday.

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I'm fascinated by how people use exclamation mark on signs.  I was recently in a toy store that felt it necessary to add four exclamation points to an "employees only" sign. Think about it.  A respectful sign is "Employees Only, Please" or "Employees Only."  Those four exclamation points are like using all capital letters in an email; it looks like they're shouting at customers. The same store also had a sign warning "Display Only!!!!"  My advice is to reserve the exclamation marks for anything that is important to the customer.

The same holds true for memos. Ending a memo with "We can do it!!" is fine but "Pick up after yourself!!!!" is obnoxious.  Use your exclamation marks to motivate people, or at the very least keep it a single mark.

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I'd be remiss if I didn't mention the tragedy that occurred at the Long Island Walmart on Black Friday.  It was totally avoidable and Walmart clearly has to change their Black Friday approach. I like the Best Buy approach.  Their system of handing out tickets for the most in-demand products to those waiting in line is a sensible and workable way to maintain an orderly line.  A writer from the Philadelphia Daily Times I spoke with wrote a good article about it here.

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A Daily reader tells me that one way she's been successful is by creating a tax-free area within her store.  She says, "The Tax Free Zone is a great talking point and is