Retail Contrarian

Will You Make the Difference?

It's on.  Or let me be more precise and say that the holiday season is "officially" on this week.
 
Are you?
 
I believe that some specialty retailers are going to have an extraordinary holiday this year.  Some will have a good holiday; others fall short.  Some will fall so far short they may not survive their poor performance.
 
I'm sure those retailers who fall short will blame the economy, discounters, and the Internet.
 
Let's turn that excuse around.  Do you think the specialty retailers who have a good holiday season are going to say they were successful because of the economy?  Of course not.  Will they say they beat the discounters and the Internet?  I doubt it.
 
Retailers who do well this holiday will say they made it happen.  "They" meaning the owner/manager and his/her entire staff made it happen.
 
Sure, some retailers might tell you they were blessed or lucky to do well in the 2009 holiday, but make no mistake - when we look back in January 2010 at the just-concluded holiday season it will be clear that they made it happen.
 
They were the difference.  Or should I say they will be the difference?
 
As we stand at the starting line of the "official" start to the holiday, will you be a difference maker?
 
It doesn't matter what your position is since it will take each and every staff member to create a successful holiday. It's going to take a strong manager/owner, assistant, permanent employees, and seasonal staff.  Everyone.

How? That part is easy. Maximize EVERY single customer opportunity.  Deliver an extraordinary experience that results in an extraordinary sale. Focus and drive will result in the performance necessary to be successful this holiday.

A lot of retailers disagree with my premise that people in the store can and will make the difference between a good and bad holiday. Then again, these are the same people who believe their holiday is almost predetermined by the economy, the discounters and the Internet.
 
So let me ask again, will you be a difference maker this year?  The only one who will establish that is you.
 
Doug
 
To our US readers: Happy Thanksgiving to you, your family, and your entire staff.

Start a Customer Service War!

Walmart, Target, and Amazon.com have spent the last few weeks locked in an ever-escalating price war. Although consumers may be short-term winners in the price war, the long-term cost of selling products below cost will be high – impacting other retailers, authors, studios, and other companies associated with the products.

Forget price wars: I want to see a Customer Service war.  I want to see companies try to one-up each other over who can deliver the best service.  Instead of dropping prices by a penny, add another something you do for the customer.

Of course the big discounters will never do this because they don't really focus on service.  It's not their competitive advantage.  But it is the competitive advantage for specialty and independent stores. Shouldn't they be starting a Customer Service war?  As a matter of fact, shouldn't you be starting one every day?

To win the war you obviously have to be better and more consistent than the competition. Here are some things you might be able to declare:

• We warmly welcome every customer. We're happy you've come to our store and it shows.
• We treat customers like old friends.  Many of you are.
• We call customers by name and are happy when they know ours.
• We make our customers comfortable by sometimes serving drinks and snacks.
• We understand our customers needs and wants before we recommend products.
• We provide a great experience for the entire family, including the children. 
• We offer unique and interesting products at competitive prices.
• All of our employees are product experts.  More importantly, our employees are customer experts. You won't find a better staff anywhere.
• Our store is fun. One thing you'll always find in stock is a smile.
• We make shopping easy. The same holds true for returns and exchanges.
• We offer special touches that our competition doesn't.  This might include free seminars, free gift-wrapping, special delivery, charitable events, etc.
• Our checkout process is fast and efficient, but more important it's enjoyable.
• We're thankful for our customers and we prove it with thank you cards, follow-up calls, and invitations to future events.
• No matter how busy the store, our employees are able to work with multiple customers and still give individual service.  It's an art and we're good at it.
• We understand that we're not going to be a customer's only retailer but we'll do whatever it takes to be their favorite retailer.

I say let the big box stores duke it out over who can sell the farthest below cost.  That's a war that none of us can ever win and unless you're Walmart, Target or Amazon you'll be a big loser if you try.

Win the Customer Service war.  That's a war worth fighting.

So let me ask, would you win the Customer Service war in your area?  Isn't it time you declare war?

Doug

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Dynamic Experiences Group, LLC helps retailers and other companies improve their on-floor performance.

There are four ways we do that:

1. Work with organizations to deliver more engaging and profitable customer experiences.
2. Help managers and owners to become better leaders.
3. Coach owners and executives to improve their companies.
4. Present engaging and high-energy high-impact programs and keynotes to educate and motivate audiences.

Contact us to learn how we can help you transform your business or meetings.

The Holiday Season - It's On!

While Black Friday, the official start to the holiday may still be over two weeks away, the reality is that the holidays have already begun. Or as they say in the Southwest airline's commercial - It's on!
 
I know many people are fundamentally opposed to acknowledging the holiday season before Thanksgiving.   A friend of mine refuses to even discuss the holidays in his store before Thanksgiving.  I believe this has hurt him in the past and I think that if he keeps it up it will hurt him even more this year. 
 
It's on.  Are you?
 
Consumers know that Black Friday will offer incredible deals.  They also know that retailers are likely to have less inventory this holiday than previously.  We're already hearing customers asking if something will be in stock this holiday.  Scarcity could be as big a motivator as price this year.
 
My recommendation is to approach every customer today the same way you will on the day after Thanksgiving.  Most retailers won't be thinking that way; that's why you're more successful than they are.  Let them wait another two weeks while you maximize your early November.

Here are five ways to profit from treating every day like it's Black Friday:
 
1. Assume the customer is holiday shopping.  Many customers won't be but studies show that over half of all consumers start their holiday shopping before Thanksgiving.  Many started last year December 26.  Your own assumptions have the biggest impact on your early November sales.
 
2. Suggest the customer do their holiday shopping while they (and you) have time to work together one-on-one.  Isn't it more relaxing to do your holiday shopping when the crowds are minimal and the pace is slower?  You can even offer to hum Christmas songs if that helps get them in the mood.  I'm kidding.  Or not.
 
3. Ask who else is on their shopping list. Just by getting the customer to mentally go through their holiday list you're able to create additional opportunities. This is a very simple and effective action that not enough retailers do.

4. Use scarcity to create urgency.  As noted above, customers know that if they wait too long to make their purchase they may not find what they want or need.  Don't use it as a scare tactic, but there's no reason not to mention it since it's probably the case.
 
5. Reward the customer for purchasing now.  For those in a position to do so, offering a gift with purchase or some other reward for buying early is a great way to encourage customers to start their holiday shopping early.  At the very least, offer to wrap the present at no charge.
 
The holiday season is on. Are you?

Crank Up Your Store Meetings and Fire Up Your Team

When payroll is tight one of the first thing that gets cut is often the monthly staff meeting.  This is a mistake because store teams need this face-to-face time to train on new products, work on issues together, and continue to develop as a team. While e-learning and other vehicles can help transfer information to employees, you can't beat a monthly face-to-face meeting of the whole staff.
 
However, it is imperative that these meetings are productive, engaging, and result in a positive return on the time and payroll investment.  Companies can't afford poorly run and poorly executed meetings.
 
Years ago I worked for a store manager who was scared to death to speak in front of group of people even if those people were her employees.  Because of that our monthly store meetings consisted of her reading from a script while she fanned us with the shaking papers in her hands.  We always thought about positioning an employee behind her in case she passed out.  I was never sure who was in more pain, the staff or the manager.
 
I'm sure you run your meetings more smoothly than she did but since there's always room for improvement, here are some tips to crank up your meetings and fire up your team.
 
1. Don't use meeting time to transfer information.  Unless you're hiring pre-school students, your staff can read and they don't need anyone to read memos to them.  Assign all necessary reading before a meeting.  The same holds true for new product information.  Even if you're planning a splashy introduction of the product itself at the meeting, have the employees learn about them before the meeting starts.
 
2. Make the first five minutes of every staff meeting a WOW.  Dress up as some character, crank up some music, have the employees up and dancing, throw candy and treats, do anything else you can do to get your team excited and pumped up. Yes, it gets harder and harder to top what you did last time, but since we expect our people to keep improving the customer experience shouldn't we do the same?
 
3. Introduce new products with style and flair. At Bose we went to great lengths to unveil new products to the entire company.  I've come across very few employees who don't love getting to see - and play with - new products.  Even when the staff knows the products are coming in you can still make the first time people see them a fun experience.
 
4. Use the meeting to apply what people have learned.  Instead of discussing the details of a new product, talk about how to sell the new product.  Do roleplaying and a competition on who can best state the benefits to the customer.
 
5. Play games (with a little friendly competition) to reinforce learning. I always like to split the staff up in teams and play games like Jeopardy and Retail Truth or Dare.  And if you have any high school or college memories of Truth or Dare I assure you that this version is not like that one!  Think role-playing and product knowledge. 
 
A good store meeting should involve and engage the entire store team.  The majority of the owner's/manager's time should be in planning the meeting, and not having to carry the whole meeting him/herself.
 
So let me ask, how engaging are your meetings and trainings?

Doug and Brian