Retail Contrarian

Good Days and Bad Days, and Going Half-Mad Days

There's a Jimmy Buffet song that goes, "I've had good days and bad days, and going half-mad days."  Sure has described October hasn't it?

We've seen record high and low days on Wall Street. The good news is the market ended yesterday with its second largest one-day point gain ever. Yea!

Some of the bad days were the ugly predictions coming out about this holiday shopping season.  One retail analyst I have followed for years was quoted as saying, "The worst is yet to come for retailers."  Another analyst predicted that the retail industry could lose between 10% and 15% of stores next year. Boo.

And that brings us to the going half-mad part. Between the stock market and all of the press it has been quite the roller coaster ride or, as we say here in Boston, a "wicked" roller coaster ride.

I'm thrilled we finally got some good news, and we'll take the "bad" news with a grain of salt. But instead of going half-mad, let's take a look at a few actions retailers can take to NOT be one of that potential 10% - 15% that doesn't make it.

1. Increase the amount of marketing to your customer list. We've always said it's more productive to market to the customer you know versus the one you don't know, and that's true now more than ever. I would especially focus on the top 100 to 250 customers who offer the most opportunity.

2. Keep your team motivated and focused. The successful retailers I'm seeing right now are those who are keeping the carrot directly in front of their employees.  I would run some kind of company or in-store contest or other incentive as often as you can between now and Christmas.  I know it's tempting to cut back in this area - but don't.

3. Invest time, energy, and even more dollars in employee training.  A lot of companies will cut back in this area; a huge mistake for them and potentially a great opportunity for you.  I know I've said it over and over again, the most important thing a specialty retailer must do right now is to maximize every customer opportunity.

Focus the training skills on:

• How to engage and sell customers who are "just looking."
• How salespeople can create incremental sales and increase the average ticket.
• How cashiers can demonstrate and suggest additional products that will enhance the customer's purchase and shopping experience.
• Holiday selling for maximum performance.
• Anything else that will create sales.

I've been talking with a regional retailer about launching a new training program early next year.  In our most recent conversation I was told, "We don't believe we can afford to move forward."  My response was, "I don't believe you can afford not to. If you don't keep improving your employees you will lose market share." They said they'd get back to me.

So let me ask, are you taking actions to ensure you have a successful holiday?

Here is a printable copy of this article to use in your store.

A Lesson from the Presidential Debate

Although I've always tried to keep politics out of my newsletters, there is a lesson from last week's presidential debate that can help us better engage and sell customers.  It's this: Always start with the assumption that your customer doesn't know the details of the product or service you're talking about.

In last Wednesday's debate, John McCain brought up Barack Obama's association with both former Weather Underground member Bill Ayers and the voter registration group ACORN.  A lot of his supporters were happy he brought these issues up but Sen. McCain wasn't as effective as he could have been because he never explained who Bill Ayers is or what ACORN does.  If you follow politics you already know the details, but the debate is the opportunity to talk to those who might be less informed.

We run the same risk in our stores.  If we assume the customer is an informed consumer we may miss an opportunity.  This is manifested in salespeople using acronyms that mean nothing to the consumer, not translating features into benefits, not highlighting how to accessorize a particular purchase, and failing to point out competitive advantages of products and the retailer themselves.

But you're also at risk at alienating the customer if you assume they aren't informed but they are. An informed customer might want to know about more obscure features or at the least not be told background information they know.

How to know which customer is which?  Ask!  Before discussing any products, ask the customer if they've been doing any research or how long they've been considering the product.  If they answer "not much" or "I just started" then obviously they're not that informed.  If they answer "quite a bit" or "been checking them out on online" then you have a more knowledgeable customer and should discuss the product at a higher level.

Whatever your political affiliation or leaning, the better you know your audience the more likely they are to vote for you and your products by saying, "I'll take it."

Have an awesome week. Remain positive and maximize every single customer opportunity.

One Hundred Percent Team Success

“Coming together is a beginning.  Keeping together is progress.  Working together is success.”  -  Henry Ford

There's a Jimmy Buffet song that goes, "I've had good days and bad days, and going half-mad days."  The last two weeks has been like living that song. Between the stock market and all of the press it has been quite the roller coaster ride or, as we say here in Boston, a "wicked" roller coaster ride.

In these times every sale counts. Nobody can afford to miss a single sale. Given the challenges facing this economy it is vitally important that every staff member gives 100% with every customer.  If four employees give 100% and one employee only gives 75%, then the store isn't giving 100% and is less likely to succeed.

With that being said, here are four actions every staff member can take to maximize their opportunities and achieve maximum success:

1. Start your day with a positive attitude. Check any issues or negative thoughts at the door when you arrive at work.  You can't give 100% if you're holding on to negative thoughts.  Yes, I know it's easier said than done, but if anyone can do it, you can.  One tool that can help you and your staff remain positive is our free Daily Retail Quote like the one above. The Daily Retail Quote can be downloaded and posted in your backroom or office 365 days a year. Subscribe to the Daily Retail Quote here.

2. Use each other to maintain a positive atmosphere.  If one staff member starts to go negative it's your responsibility to stop them.  Most people don't even know they're saying negative things, so they'll appreciate you saying something.  If they don't appreciate it, I don't see how they'll be giving their 100% that day.

3. Recognize and reward success among your colleagues. Give that high-five when someone makes a sale. Thank someone for doing the task everyone else hates to do. Compliment your colleague for trying to create a sale even when it didn't work out.  The fuel that will power each individual toward achieving 100% comes from both within the employee and the other team members.

4. Call out those who aren't giving 100%.  I'm not looking to start problems in your store but if a person isn't giving 100%, address it.  Don't get in his/her face or something but don't ignore it, either.  Just be upfront and say that, based on your observation, you believe there is more that he/she could be doing.  My theory is that if you aren't willing to do this then you're not a true teammate.

Are these things easy?  Of course not; that's why there are more losing teams than winners.  So let me ask, are you doing everything it takes for your team to achieve success?

Dating and Making the Sale

You may not have ever realized it but there are similarities between retail selling and asking someone out on a date.

When I was in high school I worked in a large discount store similar to Target.  I had a huge crush on a girl who worked in another department. We shared the same manager so I had the opportunity to work with her from time to time. 

For months I tried to gather the courage to ask her out.  Finally I did but she didn't say yes.  She didn't say no, either. I tried over and over for weeks, with little luck. Then one day when I was talking with her she gave me a look and said, "Are you asking me out?"  I said yes and she said yes and I could barely contain myself.

Later that week we went out to dinner and I asked her, "How come you finally said yes this time?"  Her answer was, "What do you mean this time?"  It seemed that all those times I thought I was asking her out I wasn't being direct enough.  I wasn't confident enough to come right out and say, "Would you like to go out on Friday night."  I have no idea what I was saying but I was clearly not asking her out.

The same holds true for helping a customer make a purchase in your store. If you aren't direct enough in the questions you ask your customer you're unlikely to get the results you want.  Here's a perfect example. A few weeks ago I was at the mall shopping for some new clothes.  I tried on pants in four different stores.  Every time I came out of the dressing room I was asked a question by a salesperson working in the area.

In Macy's I was asked, "How were they?" "They?"  I'm not sure if I was to report back on the other people in the dressing rooms or what, so I avoided answering her.

At Sears I was asked, "Everything okay?"  I wasn't sure how she knew I had gotten my underwear stuck in my fly so I avoided answering her.

At Lord & Taylor I was asked, "What do you think?" I hated to admit that I wasn't really thinking, so I avoided answering him.

At Nordstrom's I was asked, "Which pair did you like?" Since that question was specific to what I was doing I told her that I liked two of the three. Then she said, "Great. Do you want to look at some shirts to go with them?"  When I said "no, thanks" she said, "Super. I'll ring those up for you right over here."

No beating around the bush or vague questions - and on the flip side no hard close either. Just a direct question about what I liked and the saleswoman's assumption of the sale based on my positive response.

I encourage you to be aware of the questions you ask your customers. The more direct you are and the less you leave open for interpretation, the more likely you are to make a sale. And if you're single, it might even help you to get a date!

By the way, after dinner that night my date and I went to see the horror movie Carrie. When that arm came through the ground at the end of movie, it scared me so much I couldn't stop shaking for at least 10 minutes.  As a result, it was our first and last date.  Oh well, at least I learned not only how to ask someone out but also to never go to a scary movie on the first date.

The Rewards of Retail

As specialty retailers we're in the business of people. Sure, we sell products to people, but ultimately we're in the business of connecting with people to match them up with the right products. When done well we're rewarded with a sale. When done really well we're rewarded with the opportunity to make a difference in someone's life, which inevitably makes a difference in our own lives.

With today being the start of National Breast Cancer Awareness Month I am especially pleased to share this story of some retail employees who made a difference. Below you will find a letter received by Craig and Angela Pettit, owners of a chain of Brighton licensee stores. The customer shares in her own words how the employees in the Temecula, California Brighton store made a difference in her life when she most needed it.

Enjoy. - Doug

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Letter to Brighton Retail

I would like to tell you about some ladies at your store in Temecula, Ca.
I have breast cancer and am having bi-lat mast surgery on Tuesday, September 23rd.

On Sat the 20th, my daughter (30) and Granddaughter (7) and I were out for a beauty day before the surgery. We had our hair done, nails painted and we wanted to get matching necklaces. I want you to understand the state of mind we were in before we entered your store.

My daughter and I had just done my pre-op the day before. <Retailer with name removed> carries the contract for my insurance for the post-op camisoles that have to be worn right after surgery. We had gone there to be fitted and pick them up. It was a terrible experience!! The ladies made me feel embarrassed and for the first time since I had been diagnosed. . . I felt diseased!

So needless to say I was a little shy about being around people right then. When we went into the Temecula store . . . of course, we were asked if we could be helped. We said we were just looking.

As we got to the front of the store we saw the sign for the 2008 Breast Cancer bracelet. My daughter and I were looking at each other and one of the ladies asked if we would like to pre order one because they sell so fast. PJ, my daughter, asked when would they be in and was told Thursday.

One of the ladies then asked if we've been touched by or known anyone who had breast cancer. PJ looked over at me and then told her I was having surgery on Tuesday. I am in a wheelchair and because of what had just happened the day before I had turned myself away from the counter because I didn't want to see them look away from me or have them be embarrassed.

Those wonderful, beautiful, caring ladies stopped what they were doing and surrounded me. They bent down to my level and every one of them touched me, on my arm or shoulders, they let me know they were there. They looked me in the eye and asked questions and told me everything would be ok. We finished our shopping, found just the necklaces we needed and wore them out of the store.

As we were leaving those angels in Brighton told us bye, using our names, and that they would be thinking of us. My daughter and I sat in the car and cried. This time it was tears of joy and relief. It was like we weren't alone. There were women out there who were fighting with us.

I have sent these ladies a Thank You card but I wanted you to know, if you didn't already, that you have amazing women working for you. The only thing I regret is that I didn't get their names but I know God knew who I was talking about when I asked Him to bless them!

Signed,

<name withheld>

I’ll say it again. When done really well we're rewarded with the opportunity to make a difference in someone's life, which inevitably makes a difference in our own lives. Go make a difference!