Retail Contrarian

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!

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?

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?

Podcast, Article, and New Program Oh My

1. Listen to this Building a Smarter Planet podcast from IBM. "Is the Consumer King?"  features yours truly and others looking at how retailers can respond to the current economic pressures and the new breed of empowered consumers.

2. Garden Centers and  retailers who sell collectibles might enjoy this article "Growing a Collectibles Business" from Green Profit magazine.

3. I am offering an Every Day Success program for multi-unit managers.  This is a great opportunity for senior level managers of small chains as well as district/ area managers of any size chain. 

12 Weeks to Leading Every Day Success
This program is designed for the owners and executives of independent retailers to jump-start their business and ensure Every Day Success in 2009. The goal of this program is to create an extensive amount of change in a short period of time.  Only retailers who are open-minded and willing to do the required work should apply.

This program is a combination of one-on-one coaching, group teleconferences, partnering with another owner, and an intense amount of self-evaluation and development.

At the end of 12 weeks you will have:

• Removed the personal roadblocks that kept you from being an Every Day Success leader.

• Engaged every employee to ensure they are contributing to the store's every day success.

• Evaluated and improved the in-store sales experience to maximize every sales opportunity.

• Started on a path to create Every Day Success in 2009.

The first program begins Monday January 12th, 2009. Cost is $750.

Reserve your space now or contact me to find out if this program is right for you.  Call now because space is limited!

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?