Retail Contrarian

Like or Love?

When a post is titled "Like or Love" you might think I am going to recommend that Facebook update the Like button.  It would actually be interesting if they added a Love link next to the Like link, but that would require yet another new layout I'd get lost navigating.  But I digress.

Like or Love.  Most employees like working for certain companies or managers; some even love it. I think that's fine if you're a typical retailer who competes on price, promotion, or convenience.

It's not fine if you're a retailer whose competitive advantage is your staff and the in-store experience they deliver.  Like doesn't get it done.

Think about the difference between two people telling you about a local restaurant.  One of them really Likes the restaurant.  They will tell you where it is, why they like it, and maybe recommend their favorite dish.

The person who Loves the restaurant will share the same information, but with more passion, energy, and conviction. They wouldn't be just telling you about the restaurant, they'd be selling it. The Like person would say try the shrimp, and the Love person will tell you that you HAVE to try the shrimp.

While you may or may not end up going to the restaurant, I believe the Love person gets you to make a decision on the spot.  I'm sure the person who Loves the restaurant sends a lot more new customers to the restaurant than the person who merely Likes it.

Can you really staff a store with more Love than Like people?  I don't think you have a choice if you're a specialty store that needs its people to sell with passion and conviction.

So how do you do that?

That's next week’s post.  Today, I have a homework assignment for you.  Okay, homework may bring back bad memories so let's call it a challenge.

As you go through your day today I want you to label every person you interact with in a work setting (either your work or theirs) as either a Like or a Love person.

Does the barista Like or Love their job?

Does the bank teller Like or Love their job?

Take a walk through a few of the stores at the mall or downtown and determine if the employees you meet are Love or Like associates.  Big hint: If they don't engage you, they don't Love their job.

Look at your own team and determine the ratio of Like to Love.

And finally, look in the mirror.  Is it a Live or a Love person looking back at you?

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Doug Fleener is a proven retail and customer experience expert that helps companies dramatically improve their customer experience and their results. Visit our website or call Doug at 866-535-6331 to discuss how he can help you create extraordinary results.

Are you getting your additional 13%?

The 2011 American Express Global Customer Service Barometer finds that 70% of American consumers are willing to spend an average of 13% more with companies they believe provide excellent customer service.

13%! That's up almost 50% over last year, when 58% of consumers said they would spend an average of 9%.  So even more people are willing to spend even more money for excellent service.

Here's the news that's either good or bad, depending on the quality of your customer experience.  Four in ten (42%) said companies are helpful but don't do anything extra to keep their business.  And one in five (22%) think companies' take their business for granted.

The problem is that most retailers think about the experience, or talk about the experience, but don't have the discipline or leadership to actually deliver an excellent experience.  It comes down to basic fundamentals delivered with every customer.

1. The customer is the only highest priority.  Everything else comes second.

2. The staff is attentive and available.

3. The customer is acknowledged/welcomed upon entering the store.

4. The staff adds value to the customer's experience without pestering.

5. The staff is passionate about helping their customers make a purchase.

6. The staff is driven to meet, and attempts to exceed, their customer's expectations.

The key for specialty stores to maximize their opportunities is to execute those last three fundamentals extremely well.  If that doesn't happen employees are either perceived by customers as annoying, or they miss sales.

Here's my challenge for you.  Rate your store/company on a scale of 1-10 for each of the seven fundamentals, with 1 being the worst and 10 being the best.  Take your lowest number and come up with two or three specific actions (things someone can see or hear) that each employee can take today to improve that fundamental.

So let me ask, are you getting that extra 13% from the 70% of customers who want that better experience? They don't give it to us....we have to earn it!

 

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Doug Fleener is a proven retail and customer experience expert that helps companies dramatically improve their customer experience and their results. Visit our website or call Doug at 866-535-6331 to discuss how he can help you create extraordinary results.

Different ways to WOW your VIPs

In my previous post I shared how to identify and leverage the three types of store VIPs.  The three types of VIPs are:

* Top VIPs. These are the top 10-25 customers.

* Current VIPs. The top 50, 100, or 250 customers.

* Community VIPs. These are customers who are important to your store but not necessarily big spenders.

Here's different ways you can WOW your VIPs and maximize your relationship with them.

Private shopping hours. Offer your VIPs exclusive private shopping hours before the store opens.  To increase the value, make the private shopping hours seem to be in limited supply.

First look events.  Invite your VIPs to be the first to see and purchase new products at exclusive events. You'll be amazed at how special this makes your VIPs feel.

Limited product opportunities. Got a hot product that's limited supply?  Don't put it on the floor for sale, call and offer them to a couple of your Top VIPs.

Breakfast with the designer or expert.  Host a VIP breakfast before your next trunk show or event.

Dinner with the designer or expert.  Invite a Top VIP to join you for dinner with the visiting designer or expert.

Birthday gifts. While recognizing every customer's birthday with a card and gift card is good business, you might consider sending a Top VIPs and select Current and Community VIPs a gift directly to their home.  What a nice surprise!

Surprise and special occasion gifts.  There are numerous opportunities to WOW a VIP - if you listen for them.  For example, a customer who is shopping for something to wear for her anniversary could be sent a gift certificate to a local restaurant.

Follow-up thank you calls from the owner or manager.  If you miss the chance to thank a VIP when he/she is in the store, why not call and say "thank you" for their business or visit?

A call or email about a new product you think might interest that customer.  This is obviously a key action of clientele-ing.  I always like to remind people that clientele-ing isn't keep a customer book....it's using a customer book!

Thank you card. While you probably want to send all of your customers a thank you card for a substantial purchase, send your Top and Select VIPs a thank you card for being your customer. You can also thank the Community VIPs for supporting your store.

So let me ask, did I miss something that you do to WOW your VIPs?  Did you see something new you might try?

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Doug Fleener is a proven retail and customer experience expert that helps companies dramatically improve their customer experience and their results. Visit our website or call Doug at 866-535-6331 to discuss how he can help you create extraordinary results.

Identifying and leveraging your VIPs

Of course all of your customers are important to the success of your business, but your top customers are even more important.  Let's call them your VIPs.  There are three types of retail VIP customers.

One set of VIPs are customers who buy the most over a given time period.  I like to measure spending over an 18-24 month period. This makes it easier to spot customers who are falling down or coming up the list. The number of VIP buyers you track depends on how big your business is. Most retailers track the top 50 to 100 per store.

I like to break the VIP buyers into two groups. The top 10-20 customers are my Top VIPs; the rest of the top 50-100 customers are my Current VIPs.

Another group of VIPs aren't actually big spenders but are still vital to a store's success. These are either loyal advocates who bring in a large number of new customers, or someone in the community we benefit from being associated with.  Examples include someone famous, a political mover and shaker, and well-known businesspeople.  Call this group your Community VIPs.

Most retailers have identified their Current VIPs but haven't necessarily segmented the Top VIPs or officially identified their Community VIPs.  It's important to not simply identify your three different groups of VIPs, but to also to leverage each group.

Do you keep track of when a Current VIP last visited your store?  Do you call or send a note or gift to your Top VIPs to invite them in to see the newest products?  Are you making sure your Community VIPs are getting special invitations for key events?

Loyalty cuts both ways.  The customer who spends a $2,000 a year deserves more of your attention and an even better experience than the one who spends $50 a year.  As always, the goal is to WOW every customer, but elevate the WOW and personal service to an even higher level for the VIPs. This also enables us to create incremental visits and sales from our VIPs. 

So let me ask, are your very important customers getting enough of your attention and a VIP experience?

 

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Doug Fleener is a proven retail and customer experience expert that helps companies dramatically improve their customer experience and their results. Visit our website or call Doug at 866-535-6331 to discuss how he can help you create extraordinary results.