Retail Contrarian

Kill Germs - WOW the Customer

Sometimes the most memorable part of a customer's experience comes from a small but thoughtful detail. Details that less customer-centric businesses rarely think of doing.

This is definitely the case at my local bank Cambridge Savings Bank. At each teller window they have placed a bottle of hand sanitizer for the customer's convenience.  LOVE IT! I've seen this also used at some grocery stores, including Trader Joe's, with the shopping carts. 

What a great message to your customers, especially during cold and flu season. Kill some germs and WOW the customer.

So let me ask, what are you doing that shows the customer that you want them to have the best possible experience?

Forget customer service. It's all about the experience.

Turning Your Cards Into a Winning Hand

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

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

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

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

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

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

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

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

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

Recession or Recession Not? A Retailer’s Viewpoint

Remember the commercial for women’s hair coloring that asked, “Does she or doesn’t she?”  It’s almost like what’s happening with retail executives and whether or not we are in a recession.

The Chicago Tribune recently ran an article that assembled the opinions on the state of US economy of several retail executives.

Coach Chairman and CEO Lew Frankfort said he believes the recession began in December and is unlikely to evaporate anytime soon.

Urban Outfitters Inc. CFO John Keyes said instead of a recession he would describe it as more of a resurgence.

J. Crew Group Inc. CEO Mickey Drexler told investors that he wants his company to act like there is a recession though in reality he doesn't think one exists.

Well that sure cleared it up!  If we were talking about hair coloring I’d say shave your head and let’s move on!

I’m not an economist so I’m going to leave the questions of whether or not we’re in a recession to the experts.  Too many people who aren’t qualified to say so are trying to tell people we are or are not in a recession.  I also don’t buy into the notion that the press is causing much of the economic problems.

Let's face the facts. 2008 is not going to be a gangbuster year for the majority of retailers whether or not we have or are already in a recession.  It doesn’t mean a retailer can’t have a good year, but it is going to take some smart retailing to overcome the Recession or Recession Not current economic conditions.

Last week I told the readers of my subscription newsletter The Daily Retail Experience that they have a shot at a good year if they do the following:

1. Invest more, not less, in training and development. 

2. Focus on conversion, conversion, conversion.  Maybe we should name 2008 The Year of Conversion.  Retailers who do not focus on converting traffic to sales will struggle the most this year.

3. Fix their people problems sooner rather than later.  When the economy is slowing down is when you can least afford managers or employees who aren't doing what you expect them to do.

4. And last but not least. . . no blaming the economy for falling short of a goal.

I don’t care what you call it, I don’t care who you blame, the fact is that retailing is going to be a little harder this year than it’s been in quite a while.

The good news is that recession or not, some retailers are going to not only survive but thrive.  Do what it takes to be one of them.

How to Ruin Brand Loyalty

Recently, Doug and I had the opportunity to visit some stores throughout the area. Some were clients, some weren't. I was especially excited to visit one store in particular because I have been a loyal fan of their product and brand for many years, and had yet to visit their store.

Upon entering, I was struck by the awesome assortment of product, most at very reasonable prices relative to other brands in the industry. I felt like a kid in a candy store. My immediate thought upon entering was that if I had a larger house (and a more understanding wife) I could easily spend a few hundred dollars in the short time we would be there. I found things I didn't even know this company sold. I found great impulse items. I even found stuff I didn't know I wanted or needed until I saw it!

But what kept me from going on a crazy spending spree was the staff. The behaviors and attitudes of the three or four employees who stationed themselves behind the cash wrap completely turned me off. Here I was, picking up products, commenting on things, remarking on the great prices, and the staff remained completely aloof and uninterested in my desire to spend money. There was no attempt to build rapport, apart from a cursory and well-worn "How can we help you?" Instead they discussed lunch, talked among themselves, and sat on the back counter. If somebody were to erase the retail environment from around this group, it would be difficult to distinguish them from any other group of twenty-somethings hanging out at the mall, much less determine what brand they were representing. Remember, this was a manufacturer-owned and operated store. The employees work directly for the brand they're selling... or not selling, in this case. One would think that the talent on the sales floor would provide an experience that's representative of the quality and uniqueness of the brand's product. Instead of adding value and raising customers' perception of their product (and, not coincidentally, justifying the premium prices), the staff's lack of interest in their customers and product nearly ruined my appreciation and loyalty for their brand. Imagine what it would do for a customer who had yet to be enticed by the magic of these products.

Whether you're a manufacturer or retailer, brand loyalty is one of the most valuable assets you can build in your customers. The trust and advocacy that comes from a loyal customer is priceless. It's critical to empower employees with the skills and tools necessary to build brand loyalty in customers. Otherwise your brand simply becomes a name.

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

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

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

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

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

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

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

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

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

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

Note what isn't listed:

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

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

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

Do You Make an Excuse or Give an Apology? (Repost)

This is a repost since the previous post was still in draft form but that darn send button is to close to the preview button! I apologize for the inconvenience and I will do my best to not post a draft again. (See, I take my own advice in today's post.)

I always appreciate it when a company understands the difference between an excuse and an apology.

We have a pizza place in town that delivers a phenomenal pizza in about 45 minutes. A while back we ordered a pizza but after almost an hour and a half we started to wonder where the pizza could be. Right before we called them they called us to say that the pizza driver had been in an accident and they were making a new pizza for us and would deliver as soon as possible.

While disappointed we had to wait even longer, we understand that accidents happen (and were relieved to hear that the driver had not been hurt.) Our pizza eventually arrived and as the delivery person handed us our dinner she told us that it was on the house.

Now if there was ever a good excuse for a pizza being late it was this one, but I appreciate that the company wanted to make the situation right instead of making an excuse.

Excuses may explain why something has happened but they rarely satisfy a customer.

Whenever we need to make an excuse it should always be followed up with an apology and an action to make things right for the customer. Thank you, Upper Crust Pizza for knowing the difference.

So let me ask, does your team know the difference between making an excuse or giving an apology?

Forget customer service. It's all about the experience.

Leading With Edge

One of my favorite books on leadership is The Leadership Engine by Noel Tichy. Noel Tichy is a professor at the University of Michigan Business School and worked closely with Jack Welch for years. In the book Tichy talks about leaders having Edge, which he defines as the "unflinching readiness to face reality and the courage to act."

Facing reality in business is not always easy. Leading organizations is fun when things are going well but all businesses are cyclical and there will always come a time when a leader must face hard realities. Those realities might concern product, property, time, money, resources or, toughest of all, people. Successful leaders have the ability to separate themselves from their emotions and see situations for what they are, not what they want them to be.

I have found that decisions about people are by far the most difficult. Behind every downsizing, every role change or termination is a person and a family. And that's why Edge is most important when it comes to giving people feedback. The worst thing we as leaders and managers can do is not give people honest and straightforward feedback. How will people ever improve if we don't tell them where they're excelling and what they need to work on? Edge is about confronting employees who fail to do what is expected of them, even when we like them. Edge is about doing what's right for the company and the team, regardless of our own personal feelings.

When I was about twenty years old I was going to school full time as well as working full time at a stereo store as an assistant manager. I thought I was doing a pretty good job in spite of my extremely full schedule. One day I was called into the office by the store manager. I was sure I was going to be given a raise. Instead I was fired. The manager said he had been trying to coach me for months but I had failed to improve. My job was in jeopardy and I didn't even know it. I failed in my job but my manager failed in his. He didn't have the Edge necessary to tell me directly what I was doing wrong.

From that day on I promised myself that if I ever had to fire someone, it would never be a surprise. I told myself that I would give people the feedback they deserved. I haven't always been successful but I try. What I have realized over the years is that if I have faith in a person's ability I can give them any kind of feedback. It's when I see people failing in a job they shouldn't have that I struggle to give feedback. In the end, though, I can do it because of my own experience. My ultimate aim here is to be able to look at a person I've had to terminate and know that I've given that person every possible chance. They might have failed in the job but I did not fail them.

So let me ask, do you have Edge? Do you see things as they are or as you want them to be? Are you addressing the things in your organization that you deep down know you need to address? Are you giving people who work for you the feedback they need to hear? Are you doing what you know you need to do?

Tichy ends his chapter on Edge with this: "The final test of edge is whether the leader can in total honesty say, "I acted when I should have. I've had the courage of my convictions." I hope you follow yours.

Does a What Follow Your Why?

I've been reviewing sales reports from a client's store managers and it's been a pretty interesting exercise because I've actually never met any of the managers. 

What stands out to me is that when a store falls short of goal the majority of the managers explain why.  It's almost always something to do with traffic or weather or the mall or the local economy. 

It made me realize that instead of saying "why" a store didn't make goal, the manager should also include "what" he/she did to try to achieve it.  "Why" almost doesn't matter unless it's followed by "what."   

Action is the key in retail!  By adding a required "what" actions they took to achieve goal, I bet the extra focus might just have more stores hitting goal.   

Are you and your people focusing as much on the "what" as the "why?"

Are Kids a Problem at the Mall?

Last Tuesday there was a non-fatal stabbing of a teenage boy in the parking lot of the The Mall in Columbia outside of Baltimore. As a result I was contacted by the reporters for The Baltimore Sun and asked if kids are a bigger problem in malls today than in the past.

As someone who worked in The Sharper Image, a teen magnet store if there ever was one, I definitely have experience with kids and malls. Personally, I don’t see a difference between a Friday night at the mall in 2008 and a Friday night at the mall in 1998. Ever since the malling of America began and many downtowns up and died, malls have become the new hangout for kids.

In the article A coarser world invades mall life, Paco Underhill agreed that the violence that happened at the Columbia mall could happen anywhere. "It could have happened in a school parking lot," said Underhill, CEO of Envirosell in New York City. "The fact that it happened at the mall is testament to it being the town center."


What’s really changed are the youth themselves. When I was a teenager we settled our differences with fists. Okay, I didn’t but I knew guys who did. Today’s youth are more likely to use knives or guns than fists. Obviously it is a very small group of kids who create the problems but the question to be asked is if these kids more prone to violence have a negative impact on the malls?

I believe that we are as safe at a mall as at any other public venue, but when violence happens at a mall it’s more disturbing to use because it breaks our sense of security. So the greater challenge for malls isn’t necessarily teenagers, but the perceptions of teenagers by other shoppers.

So let me ask, do you think kids are a bigger problem for malls today than they were in the past?

Would You Like a Velvet-Lined Heart-Shaped Box for this iPod?

Jeweler Tiffany & Co. recently announced weak comp store growth, due to a 2% decline in its U.S. stores. This news arrives despite a 10% increase in sales at their flagship New York store and 12% growth in international stores. With approximately 160 stores around the world (a third of which are in the U.S.), Tiffany is feeling the economic sting that many other high-ticket companies like American Express are beginning to experience. This indicates that the financial burdens of Americans are being shared across class lines, and aren’t just the worries of lower- to mid-income folks.

Of course, customers will continue to buy jewelry, and with Valentine’s Day fast approaching the need is about to reach its first spike of the year. However, recent positive sales figures from retailers like Best Buy, Toys R Us, and Barnes & Noble indicate that many of the sales over the end of the year were for more practical and less ornamental products. Flat screen HDTV sets, video game consoles, iPods, and GPS devices were among the season’s hottest sellers. While it’s easy to look at Tiffany’s dip in the U.S. as a harbinger of rough economic seas ahead, this is really a prime opportunity for independent and specialty stores to get creative and offer financially cautious customers the chance to think outside of the jewelry box for Valentine’s Day. A string of pearls or a Nintendo Wii? Hmmm…