Retail Contrarian

Your Customers

Some things you may or may not know about your customers:

They don't compare you to other people who sell what you do.  They compare you to every store they shop in.

They appreciate being treated like they're special, even if don't show it.

Although they might decline that drink or cookie you offer, they appreciate and remember the gesture.

They will tell other people about your store if you give them a reason.  What they tell people is up to you.

They dislike being hounded, but they also hate being ignored.  Yes, that's confusing and yes, that's why selling in retail is not easy.

Most of them worry more about overpaying than about getting the lowest price.

They respect what you know about the products you sell.  They like being respected in return.

They watch how you handle your products to see how much they’re really worth.

Even if they don't come to an event they remember that you do things for your customers.

They're happy to hear from you on a regular basis, but they don't want you trying to constantly sell them something, either.

They appreciate knowing that your store is a good place to work as well as to shop.

They like buying from local businesses, but most aren't willing to pay too much extra to do so.

Even though they appreciate your employees, they like getting that little bit of extra attention from the owner.

They appreciate being appreciated.

Most will be loyal if you'll be loyal to them. This means that sometimes you have to do what's more in the customer's best interest than yours.

You have many customers but each one is unique.  The more uniquely you treat them the more likely they are to remain your customer.

A few of them are a pain but that should never change how you think of them.  Remember, each one is unique.

They appreciate the little things you do to deliver a great experience. A lot of them remember to tell you that: some of them forget. 

So allow me to say it for all of your customers, "Thank you."

Are You Meeting YOUR Expectations?

We retailers spend a lot of time trying to figure out what makes our customers happy and how to keep them loyal to us. The answer isn't usually hard to find since it almost always lies within us. More often than not those of us in the industry have higher expectations of retailers than do most customers. Tell me you don't get really annoyed when a retailer does a poor job and that you don't get excited when a retailer exceeds your expectations.

To test this out I asked a retailer in my coaching and mentor program to write down three to five things she encounters as a shopper that make it more likely she will be a loyal customer.  She responded with these four:

1.  "I want to be acknowledged when I walk into a store.  Not pounced on but acknowledged. I might or might not want to be helped right away but if they're paying attention they should be able to tell."

2. "I know this sounds obvious but they got to have something I want to buy. There used to be this cute gift store in my town with really nice people working there but I never found a single thing I wanted to buy. I eventually quit going there."

3. "I want salespeople who really know their products. That's why I buy most of my clothes at a local store, not at department or chain stores. The women at that store always know exactly what will and won't work on me. So I guess that means they really have to know me as well as they know their products."

4. "I want to be appreciated.  This is a big one for me. I get so mad when stores act like they're doing me a favor taking my money."

Then I asked the big question.  How well do you and your staff meet these standards? Before she could answer I reminded her that there is a difference between hoping they do these things and knowing they do these things. "How would I know unless I'm at the store every minute of every day?" she asked.  My answer is that you know because making sure these actions are taken is ingrained in the organization and people do them without even thinking about it.

She thought about it and said, "I know we do the first one really well.  And I'm pretty sure we have the right products for our customers.  If we didn't our business wouldn't be growing every year. I also feel very confident that my people know their products inside and out.  I think we can do better at understanding our customer's needs but you and I are working on that."

Then the phone went quiet for a minute.  She continued, "I'm not sure we really show our customers how much we appreciate them. We tell people "thank you" when they buy something but I'm not sure we do much beyond that.  It's so important to me when I'm shopping but we're not doing it very well ourselves."

We talked a bit more and came up with several actions she can take. They include:

1. When thanking the customer the staff member will also tell the customer that they appreciate their business.

2. The owner and manger will each call a couple of customers a week to express their gratitude.

3. The staff will become more diligent about sending out thank-you cards.

So let me ask, how well are you and your store(s) executing what YOU expect as a customer? I would encourage you to go through the same exercise that we just did to learn of the opportunities that you might have to deliver an even more memorable and effective customer experience.

Delighting a Disappointed Customer

I have written previously that one way to turn a negative customer experience into a positive one is to ease the customer's inconvenience.  To do that an employee needs to assess what inconvenience the problem is causing and what action can be taken to relieve it.

Sometimes a problem a customer has with either the store or a product results in disappointment more than an actual inconvenience.  One of the differences between an average staff and a GREAT one is the ability to pick up on a customer's disappointment and then take action that will turn disappointment into delight.

Some customers complain when they're disappointed but most don't.  They may make a comment but not a complaint.  Retailers who are focused on delighting a disappointed customer will hear those comments and can then take action to delight them, resulting in the customer being more loyal and an advocate. There's probably no better customer advocate than a disappointed customer who has been delighted.

As an example, my wife recently ordered something online since she couldn't find it locally.  When placing the order she was informed that the product was not in stock but would likely ship in four or five days.  Since she really wanted it she went ahead and finalized the order.  She was disappointed she had to wait but it wasn't a major inconvenience.  Two days later she received an email that the product was now in stock and they were "upgrading" her order to a faster shipping option at no additional charge. She was delighted!  For a small additional expense this company has turned my wife into a loyal customer and advocate.

Here are some other opportunities that may enable you to delight a disappointed customer. Say a customer casually mentions that he was disappointed with something he bought from you on a previous visit.  A lot of retail employees won't even notice that the customer is voicing his disappointment since he's not really complaining.  GREAT employees will catch it and do what they can to delight the customer.  If the product wasn't purchased a long time ago they might offer to take it back or at least contact the manufacturer for them. 

But what if it was bought three, five, or more years ago or wasn't even purchased from that retailer?  That's still a great opportunity to delight the customer.  Maybe the customer could be offered 10-20% off on a replacement, or if the product is broken the retailer can offer to ship it in for repair.  There's always an opportunity to delight a disappointed customer.

Another common occurrence is when a customer tells you in conversation that she missed a sale or is disappointed that a particular product is out of stock.  If you're not authorized to give her the sale price you could take her name and contact information and contact her when the product goes back on sale or is once again in stock.  Believe me, your call will result in a delighted customer.  There's always an opportunity to delight a disappointed customer.

If a customer has to leave the store because of her children you could offer to call her and take an order over the phone or schedule an appointment before the store opens.  Or if a customer expresses his disappointment but wants a refund you could give him a discount on his next purchase. There's always an opportunity to delight a disappointed customer.

Coming up with the right action to take is the easy part. The challenging part is to actually hear disappointment that may be implied rather than clearly stated.  I guarantee that if you listen for it, you'll hear it, and if you take action, your customer will reward you with future sales and additional customers.  Sounds like a win-win to me!

Remember, there's always an opportunity to delight a disappointed customer. Are you hearing and delighting yours?

Customers Rock Thinks 50 Ways Rocks

For those of you who haven't had the chance to check out Becky Carroll's Customers Rock blog it's well worth a few minutes out of your day. Recently, Becky quoted from Doug's "50 Ways" list within a framework of focusing on the customer experience. While it's not specifically a retail site, Customers Rock is a great place to find ideas and insights on delighting customers and creating a positive experience. Check it out!

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.

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.

Making Sales by Stimulating the Senses

When I was a little kid my dad owned and operated several movie theaters.  He'd been in that business for many years, and his office was full of relics from the golden age of Hollywood - though most of them were from the exhibitor's point-of-view.  One of my favorites was a handbook of sorts for successfully running a concession stand.  It was really nothing more than a collection of best practices from theater owners all over the country, collected, typed up onto fifty or so pages, and bound with three brass clasps along the left margin.  I can remember rifling through the pages and learning all about how the way a snack bar was merchandised, presented, and staffed could have a positive effect on the amount of money people would spend.

One of the things that always stuck with me was the recommendation that popcorn be popped while customers were waiting for the movie to begin.  This flew in the face of conventional wisdom that dictated you pop your corn when there were no customers around so you wouldn't be too busy to tend to customers.  However, the smell of freshly popped popcorn and the visual of it bursting out of the popper would send customers into a buying frenzy, enticing even those who already had their Ju-Ju-Bees and Coke into buying a bucket.  And do you know what?  It worked. 

Today, we know for a fact that we can influence buying by stimulating more senses simultaneously.  Show somebody a product, and they might have an interest in it.  Let them touch, hear, smell, and maybe even taste the same product, and the level of interest rises into a level of desire.  This has worked especially well in the food industry with free samples, and it's a staple of the automotive industry where a test drive lets you feel all the aspects of the vehicle, smell the new-car smell, and hear the solid THUNK of the door as you close it. 

So, here's an opportunity for you.  Look around your store.  What are you doing to stimulate more of your customers' senses?  Is your background music conducive to your brand and products?  What does your store smell like?  Can customers touch the products?  Is the lighting effective in showing off merchandise?

You probably won't be able to stimulate all the senses, and depending on what you're selling, you might not want to.  But if you focus on stimulating more of the senses than you are now, you'll find customers' interest levels rising.

Okay, I've got to go get my popcorn.

What Does Your Email Address Say About You?

My typical Friday morning routine involves breakfast at a great little spot down the road.  The kind of place that only serves breakfast and lunch, where the waitresses call you Hon and know your regular order by heart.  I usually read the weekly newspaper while I eat, but the last time I went there was no weekly paper to be had.  They hadn't published that week due to staff vacation.  Okay, fair enough.

So I found myself reading the paper placemat.  In addition to a few word games to occupy little ones the placemat features a border of advertisements for local businesses.  Usually these ads are just reprints of business cards, and there's nothing wrong with that.

As I looked at the different ads I took note of how many businesses have websites and email addresses. No website?  Okay, that's forgivable for some businesses.  No email?  Again, somewhat allowable, but it's becoming less excusable.  Let your customer contact you in as many was as possible, and in the way they want.  Most businesses wouldn't dream of placing an ad without their phone number in it.

What I found most confounding is the number of businesses who have a website with their own domain name, but their email uses a generic service provider.  For example, a local pet groomer might display www.petgroomer.com in their ad, but their email address is jdoe@verizon.net.  Or jdoe@aol.com.  Or jdoe@hotmail.net.  Some folks would use petgroomer@whatevertheirprovideris.com, and that's a little better.

My questions is: why not use jdoe@petgroomer.com?  Or info@petgroomer.com?  Or anything@petgroomer.com?  I actually saw an ad for a local company that builds websites, and even they were using a generic email address!  This tells me these businesses are either using the free webspace their internet provider includes or they didn't want to spend a few bucks to have somebody set up an email account using their own domain name.  Either way it makes one question how serious these businesses are about making it easy for their customers to reach them.

How to Get Customers to Spend More: Make 'Em Cry

The Associated Press recently wrote about a multi-university study on how emotions affect the spending habits of consumers. The study essentially confirmed what many human behavior and retail experts had known for a long time: sad customers spend more.

Study participants who watched a sadness-inducing video clip offered to pay nearly four times as much money to buy a water bottle than a group that watched an emotionally neutral clip.

Most folks will agree that a bit of shopping can lift them out of the doldrums, but what this study illustrates is the commonly unknown impact of mood on spending. Interestingly enough, subjects in the study who were exposed to the sad video and offered to pay more for the water bottle were adamant that the video had no bearing on the price they were willing to pay.

“This is a phenomenon that occurs without awareness,” Jennifer Lerner, a Harvard professor who studies emotion and decision making, said in a phone interview. “This is really different from the idea of retail therapy, where people are feeling negative and want to cheer themselves up by shopping. People have no idea this is going on.”

This phenomenon can be looked at two ways. First, retailers can do what advertisers have been doing for years: take advantage of customers' low levels of contentment and appeal to their need to be happy. The other way is to understand how a customer is feeling when they buy, and work to make sure the sale is permanent. One major side effect of misery spending is the realization that purchases don't have a long-term curative effect. This often leads to buyer's remorse and returned products, and if you don't have an effective way to handle those returns, you'll soon find yourself feeling down. And you know what happens then.

Kill Germs - WOW the Customer

Sometimes the most memorable part of a customer's experience comes from a small but thoughtful detail. Details that less customer-centric businesses rarely think of doing.

This is definitely the case at my local bank Cambridge Savings Bank. At each teller window they have placed a bottle of hand sanitizer for the customer's convenience.  LOVE IT! I've seen this also used at some grocery stores, including Trader Joe's, with the shopping carts. 

What a great message to your customers, especially during cold and flu season. Kill some germs and WOW the customer.

So let me ask, what are you doing that shows the customer that you want them to have the best possible experience?

Forget customer service. It's all about the experience.