Retail Contrarian

The Four Me Managers

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

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

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

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

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

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

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

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

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

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

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

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

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

Green or Green?

Here's something for non-mall stores to consider.  Those of us who have been in retail for a long time have long since accepted the custom of propping open the front door to encourage more foot traffic.  As customers and retailers alike become more focused on green initiatives and energy conservation, is this still a good idea? 

Does an open door while the AC or heat is on inside a store actually turn off more customers than it brings in?  I don't know the answer but it is something to think about. Got any thoughts?

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

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

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

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

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

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

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

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

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

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

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

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

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

Updating the Employee Referral Bonus Program

I've always been a big proponent of paying employees a referral bonus since the quality of employees you get from staff referrals is usually higher than when you rely on people just walking in off the street.  I've always believed that you shouldn't pay the referral bonus until the new employee reached his/her 90th day. 

I recently read an article from the restaurant industry pointing out that in today's instant gratification world the three-month wait for a payout may no longer be enough to motivate employees. 

I think they have a point. Almost every company I talk to feels that their referral program isn't used as much as they would like it to be. I've come around to a new position on this.  I would pay 50% of the bonus when the referred person is hired and the other 50% when they make their 90 days.

50 Ways to Improve Your Customer's Experience

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

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

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

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

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

4. Acknowledge your customer's children.

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

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

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

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

9. Smile. 

10. Introduce yourself to your customer.

11. Ask your customer her name.  Use it.

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

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

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

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

16. Never ever say something negative about another company.

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

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

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

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

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

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

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

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

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

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

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

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

29. Provide written details of frequently asked questions.

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

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

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

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

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

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

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

37. Offer free drinks to your customer. 

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

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

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

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

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

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

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

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

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

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

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

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

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

51. Always go above and beyond for every customer.

You can download from our website the 50 Ways to Improve Your Customer's Experience article that's formated as a handout.

Complimentary Webcast This Thursday, April 17th

Join Doug Fleener this Thursday, April 17th at 1 p.m. ET/10 a.m. PT, for a complimentary webcast entitled Drive More Business with Personalized In-Store Services and Web Technology.

Sponsored by Timetrade System, the leader in self-service appointment scheduling, Doug will be presenting along with Todd Haggerty, Manager of Store & HR Systems at David's Bridal. Ed Mallen, President & CEO of TimeTrade Systems, will be moderating the one-hour webcast.

As Ed said in the press release to announce the webcast, "Personalized retail services have become a trend in customer service. Big-box retailers, well-known specialty retailers like David's Bridal - as well as smaller organizations - have come to realize that by providing personalized attention and reducing customers' wait time, businesses can experience enhancements in operational efficiency and brand loyalty. As this greatly improves the customer's overall experience, organizations quickly reap the benefits."

Attendees at the free April 17 Webcast will receive a complimentary three-month subscription to our daily newsletter, The Daily Retail Experience. (Limited to 10-stores.)

To reserve your spot click here.

Michelli + Fleener = Shared Wisdom

Dr Joseph Michelli, bestselling author of The Starbucks Experience, recently posted a brief podcast on his site in which he talks about our own Doug Fleener's 50 Ways to Improve the Customer Experience. An insightful and outspoken proponent of the customer experience in his own right, Dr. Michelli offers some flattering words for Doug and Dynamic Experiences Group, and shares 12 of Doug's 50 tips with his listeners. It's definitely worth four minutes of your time.

Happy 500th Mine Your Own Business

Congratulations to Mike Buckley at the Mine Your Own Business blog on his 500th post. As I told him he doesn’t look a day over 450.

Mine Your Own Business is one of the best blogs there is for the independent retailer. The blog came about when Tacony Corporation president Bill Hinderer suggested a blog for their customers. Tacony Corporation is actually four different business units: Sewing, Home Floor Care, Commercial Floor Care and Ceiling Fans & Lighting. They also manufacture vacuum cleaners and commercial cleaning products. So obviously they have a lot of smaller independent retailers as customers.

But what makes Mine Your Own Business such a great resource is they don’t try to sell to their customers on the blog.  Rather, they use the blog to be “a valued business partner" and to "help their customers work on their business and not in their business.” As a result, Mike became the accidental blogger and has done a fabulous job ever since.

Regardless of what you sell, if you’re an independent retailer or support independent retailers I recommend that you subscribe to Mine Your Own Business. I know I’m looking forward to the next 500 posts and you will too.

A Retail Phenomenon Alert

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

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

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

Please put tongue in cheek and read on!

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

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

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

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

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

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

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

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

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

The First Sale is Made Internally

One of the worst things that can happen right now is for your salespeople to start believing that a customer coming in the store will not be making a purchase.  Remember, the first sale we need to make is to our own people.  We need to keep reinforcing our own store's value proposition and points of differentiation to our employees so they remain positive with every customer interaction.