Retail Contrarian

When a customer freaks out

While waiting for a flight the other day I watched a very stressed passenger freak out on an airline representative.  The passenger’s behavior was embarrassing and completely unacceptable, and of course I couldn’t help but watch to see how the agent handled it.

Overall she did a great job, but at the same time I saw things she could have done better.  I know you don’t have people freak out on you very often (thank goodness) but here are a few tips to remember when it does happen.

1. Remain calm.  Okay, as calm as you can.  It is easier said than done, but getting aggravated just doubles the drama and pretty much guarantees things will get worse.

Don’t take it personally.  The passenger was screaming that she was going to get the agent fired, but the real issue was that she missed her check-in time and her seat was given away to another passenger.  If whatever situation hadn’t happened, you wouldn’t even be involved.

2. Don’t blame the customer. The goal is to calm the customer and address the issue. When we inadvertently blame a customer for what happened they become more defensive.  The customer might have messed up, or doesn’t want to follow the policies, but making it about them will only make matters worse.

3. Say you’re sorry.  As I’ve written and said many times, saying you’re sorry doesn’t mean that you or anyone in your store have done anything wrong.  You’re simply expressing regret that the customer is upset.  That’s something I didn’t see the agent do, which only made the passenger freak out even more.

4. Keep the focus on finding a resolution.  As obvious as that sounds, it doesn’t always happen.  Extremely upset people have a tendency to keep going back to the issue and reiterating how much they’re upset. When the passenger screamed for the fiftieth time how upset she was I expected everyone at the gate to yell out, “We know!”  One thing the agent did very well was that every time the passenger did that she responded, “I understand that. Now let’s work on getting you to your destination.”

5. Bring in another person if it gets too personal.  This poor agent wasn’t going to do anything to escape the customer’s wrath. When she finally realized that, she had another agent step to handle the situation.  At that moment the passenger completely stopped freaking out.  It was like someone had unplugged her.  There might just be times when an owner or manager needs to ask an assistant or associate to work with the customer.  I know that some owners/managers may not agree with that approach, but I’ve personally used it twice to bring resolution for a very unhappy customer.

6. Last but not least, don’t accept unacceptable behavior.  I thought the agent showed great restraint with the customer who was freaking out, but she was probably pretty close to calling the airport police. If the customer crosses a line into unacceptable behavior then you owe it to your staff, the other customers, and yourself to remove the customer.  Of course if we do the first five thing listed here that probably won’t have to happen.

Let’s hope you never have to apply any of these tips, but if you do have a customer who freaks out I hope you’re able to remember to apply them.

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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 an extraordinary experience and 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.

The (Rare) Unhappy Holiday Customer

Over the next 10 days almost all of your customers will be delightful to work with but, inevitably, you will encounter one or two stressed out, unhappy customers.  Here are seven things to keep in mind when they've decided to take it out on you.

1. Let the customer vent.  My experience has taught me that that once the unhappy customer starts talking, let him go.  Don't be defensive, but listen actively.  Make eye contact.  You might be thinking that you would love to stick candy canes in your ear so you don't have to listen to the guy, but you know you can't do that.  Like a good fire, most of the time these customers burn themselves out.

2. Don't let them disrupt the store. A customer has the right to be unhappy with something, but her unhappiness doesn't give her permission to ruin everyone else's experience. If she's talking very loudly or inappropriately, you need to politely ask her to lower her voice.  If necessary you can ask the customer to follow you to another part of the store to continue the conversation.

3. After the customer comes up for air, establish the facts without judgment. "So what you're telling me is that you're unhappy that you bought this last month and it was your understanding it would never go on sale and now it is on sale?" Compare that to "Nobody who works here is going to tell you that something would never go on sale."

4. Express your regret that she is unhappy and express your desire to find a resolution. "I'm sorry you're upset but let's see what we can do." Remember that saying "I'm sorry" doesn't mean you or anyone on your staff was wrong.  It just means that you are expressing sympathy and regret for what happened.

5. Ask him what he thinks would be a fair resolution. More often than not the customer's suggestion will be something you'll find more than acceptable. Most of the time, the unhappy customers just want to be heard.  If the customer's resolution is acceptable, take it.  If not, tell him what you can do for him.

Here's my recommendation when it comes to refunds and exchanges during December. Sometimes it is smart business to just give in and do whatever it takes to make the customer happy. A disruptive customer can cost you a whole lot more in sales than whatever it is they are asking for, let along the aggravation it causes you personally. That's your call, but I'm not going to argue over a few dollars and miss hundreds or thousands as a result.

6. Afterwards, thank your customer for allowing you opportunity to resolve the issue. This one little step will amaze your customers. They so rarely hear that comment that it is sure to turn the crabbiest customer into a raving advocate.

7. Most of all, don't let it ruin your day.  Don't take it personally. Live and let live. It's great if you've made the customer happy, but there are people who will choose to stay upset no matter what you do.  Don't let someone else's character defects bring out your own.  Move on and enjoy the rest of your cheerful holiday customers.

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Doug Fleener is a proven retail and customer experience expert that helps companies to improve their on-floor and management performance. Vist our website or call me at 866-535-6331 to discuss improving your company's experience and results.

The Customer-Centric Company

Here are seven signs that you're running (or working for) a truly customer-centric company:

1) The CEO or owner talks constantly about customers and their experience. He/she talks about it so much that it would be annoying to the employees if they didn't feel as passionate about the customers as their boss does.
 
2) Managers often quote the CEO or owner.  A few employees might think the manager is just trying to act important, but the manager knows that every level of leadership must articulate this focus on customers and their experience.
 
3) Employees routinely seek out opportunities to exceed a customer's expectation.  You're a great retailer if employees see an opportunity and go for it.  Yours is an extraordinary company when employees attempt to create those opportunities.
 
4) Employees automatically apologize if the customer has a less than stellar experience. Most retailers only apologize if something was the company's fault, but customer-centric companies are always sorry if their customer's experience is short of their expectations.
 
5) The staff knows and executes the service standards that are key to the company's success. These store standards aren't just bullet points on a framed document in the backroom. They are the foundation of every employee's day.  Everything else an employee does is secondary.
 
6) It's a challenging work environment. Maintaining an intense focus on the customer and exceeding their expectations is a lot of hard work, and there are people who have no desire to either work that hard or to serve others. While the dropout rate shouldn't be in the Navy Seal range of 70-80%, if some people aren't leaving you're either doing a great job hiring or your expectations aren't high enough.
 
7) It's a rewarding place to work.  I really like Tuesday's Daily Retail Quote from William James, "Act as if what you do makes a difference. It does."  I'm sure some people question how working retail can make a difference. Well, it doesn't if you're only focused on the tasks or products, but when your customer is your priority you can't help but make a difference. You can uplift your customer's experience, share information that will benefit him/her, or participate in a charitable event.  Simply being a positive, helpful person makes a difference. There are so many ways we can make a difference, but it starts with people.
 
So let me ask, how customer-centric are you and your company?

Using Your Pedestal

Every employee in your company carries around a pedestal.  Not literally, but figuratively.  With each customer interaction an employee chooses to use that pedestal in one of three different ways.
 
The first group puts themselves on the pedestal.  These ego-inflated associates believe they always know more than the customer or, even worse, believe they're in some way better than their customer.  Most customers, not surprisingly, can't stand it when these employees peer down at them from the pedestal.
 
Other associates end up sitting on their pedestal. Sometimes they're lazy and sometimes they're lackadaisical, but whatever the reason, it's not a productive place.  I'm sure these employees think they're helping their customers, but how can you do that from a pedestal?
 
Another group of associates put the products on their pedestal.  I'd say that the majority of retailers fall into this group.  It is a lot better than putting yourself on a pedestal, but it's especially not ideal for specialty retailers to do.  I like to think that instead of putting products on a pedestal, we should (figuratively speaking) put them on a platter and present them to the customer.
 
Last but not least, there's a small group that has a pedestal for each customer.  From the moment the customer steps foot into the business the goal is to put the customer on the pedestal.  And they do this if it's the customer's first or one-hundredth.
 
It's the small details of the experience that place the customer on the pedestal.  From the engaging welcome to the invitation to return, everything the employee does keeps the customer on that pedestal.  The best part is that customers always spend more when they're up on that pedestal.
 
Putting customers on a pedestal is the essence of creating and delivering extraordinary experiences.  If that's your goal, the bigger challenge isn't how we intend to use our pedestals, but how successful we are at getting the customer on, and keeping them on, that pedestal.
 
So let me ask, are you maximizing your pedestal?

Are You a Good Conversationalist?

Have you ever been at a function and gotten stuck talking with someone who doesn't know how to carry on a conversation?  They do all the talking and it's not long until you're planning your escape.  You can't bring yourself to care what he/she has to say because it's so one-sided.
 
Now compare that to a good conversation. When one party speaks the other one listens closely to the other and then replies, or even takes action, based on what was said.
 
So let me ask, how are the conversations with your customers?

Are you having a good two-way dialogue with your customers?  The best retail salespeople listen as much as they talk.  Their ability to engage customers in conversation comes from their desire to learn more about their customer and then use that information in the sales process.

Or are you or someone else on the staff droning on about products or the store like the bore at the function you can't wait to get away from?  I believe that most associates who do this aren't even aware of how their customers perceive them.  They confuse talking with having a dialogue.

For specialty retailers there's a direct link between the quality of the conversation you have with your customer and maximizing the opportunity that customer represents.  Good conversationalists and intent listeners have the ability to recommend additional products, which increases average sale and units-per-transaction.

Here's a simple test you can ask yourself or someone on your staff.  After a customer leaves the store, what do you know about them besides what product he/she was looking for?  If you or your employee can rattle off two, three, or four things (what they own, what they like, favorite colors, etc.) about the customer or their situation, it was a good conversation.

If you or your staff member don't know anything about the customer besides what they're looking for, chances are you or you employee might be guilty of too much talking and not enough listening.  At the very least, there aren't enough questions being answered.

The Art of Lineology

If you have one register all associates use or multiple registers with dedicated cashiers, how well an employee facilitates the checkout process has a huge impact on the customer's experience.

I know that I personally have had more than one good store experience ruined in those last ten feet.  I've also had many a mediocre store experiences turned around by a terrific cashier.

Lineology, the art of delivering a great checkout experience, uses most of the same skills and behaviors required to work with customers on the floor.  It might be even more challenging because practitioners need to multi-task while delivering a great experience.

Here are some tips for mastering Lineology:

1. Always give your customer your undivided attention.  Any conversations with co-workers and others should wait until you have completed ringing up a sale.  The checkout process should be fast and efficient but at the same time must never make the customer feel rushed.

2. Never interrupt another employee who is checking out a customer.  The number of managers who interrupt the cashier when he/she is working with a customer always dismays me.  Unless it's an emergency it can wait.

3. Always greet your customer in a friendly manner including a smile and eye contact. The eye contact is important because it establishes a stronger relationship in the short amount of time you're with the customer.

4. Avoid overused questions like "How are you today?"  That is the "How may I help you" of checkouts.  Try to keep it more personal or about what the customer is purchasing. "Are you enjoying this beautiful day?" or "Isn't that the cutest blouse?"

5. Try to acknowledge the next customer in line while ringing up your current one.  That simple acknowledgment will demonstrate to the customer that they are your priority and it will be keep them from getting annoyed by you talking with another customer.

6. Really hear what the customer is saying.  A lot of customers indirectly voice pleasure or displeasure, and your ability to recognize and respond to what someone is saying without maybe quite saying can make a big difference to that customer's experience.

Example: A customer might say, "The store is so busy it's difficult to get a dressing room."  Many employees would either not respond at all or agree with the customer's statement.  The master of Lineology will respond by saying, "Is there something you would like to try on?  I can set these aside and get someone to assist you."

7. Know that some of your hardest tasks are vital to your store's success.  Every time you capture a customer's contact information you're creating future sales.  Take pride in your ability to capture that information.

The same goes for doing required add-ons.  If your owner or manager has asked you to suggest an additional product, do it to the best of your ability.  Remember that almost everyone will say "no," the "no" is not personal, and enjoy those moments when the customer says "yes."  By the way, I'm not a huge fan of those types of add-ons, but to each their own.

8.  At the end of each transaction look your customer in the eye and say "thank you."  That brief moment of demonstrating your gratitude will stay with the customer beyond their time in your store.  You may also, if appropriate, want to invite the customer back.

If you're a cashier, or you occasionally checkout a customer, never underestimate how important you are to the success of the store.  Thank you for being a Master of Lineology!

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.

Four Words That Will Transform Your Business

On Saturday afternoon we had a family outing to Wrentham Premium Outlet Center to buy some clothes and shoes for our daughters.  The place was packed. The line of cars to get into the center was backed up on to the highway from both directions.
 
All I could think was "look at all these opportunities."  It was enough to make my retail heart go pitter-patter.  Judging from the number of bags in people's hands I would say that most stores had a good day.  Some might have even had a great day.
 
But if my experience was like most customers, the stores that had a good day could have had a great day, and the stores that had a great day could have had an extraordinary day - if they had remembered these four simple words:
 
Maximize every customer opportunity.
 
Knowing how to greet and engage customers doesn't matter if you don't do it with every customer.
 
The ability to help customers make informed decisions about the latest fashions or a product's features and benefits doesn't matter if you don't do it with every customer.
 
Recommending additional products that will enhance a customer's purchase and his/her life doesn't matter if you don't do it with every customer.
 
Having fabulous new products or incredible sale doesn't matter if people don't know about them. Sure, you can post signs to that effect but nothing reinforces the message more than an employee enthusiastically telling me about them.  But it doesn't matter if you don't do it with every customer.
 
Lots of store traffic is a wonderful thing but you leave money on the table if you don't maximize every customer opportunity.
 
Maximizing every customer opportunity sounds simple but if it were that easy, more retailers would be doing it.  I'd say that fewer than 10% of specialty retailers maximize every customer opportunity.
 
I'm not saying this to be negative but quite the opposite.  It's exciting because I see incredible opportunity for retailers like you if you make maximizing every customer opportunity the foundation of what you do.
 
Almost all retailers talk about how important customers are.  Very few stress how important every customer is and the impact that has on business.
 
Look at the difference.
 
Welcome and engage customers.
Welcome and engage every customer. 
 
Suggest products and services to the customer.
Suggest products and services to every customer.
 
Offer additional add-ons.
Offer additional add-ons to every customer.
 
Deliver a great customer experience.
Deliver a great experience to every customer.
 
Makes sales.
Make sales to every customer.
 
Maximize your opportunities.
Maximize every customer opportunity.
 
So let me ask, are you maximizing every customer opportunity? 
 
If not, consider the impact doing so will have on your business if it becomes your number one priority.

An Impeccable Customer Experience

When my children were younger and were called to a meal or wanted to help in the kitchen my wife always asked them if their hands were impeccably clean.  She would explain why impeccably clean hands were needed.  She pointed out that you always want to eat with clean hands, and if you are going to be help in the kitchen you need clean hands to handle the food.

At first I wondered why she just didn't tell them to go wash their hands since she knew they hadn't, but I came to realize that she wasn't asking them to go through a motion, she was teaching them to maintain a standard.   Just as important, she wanted them to create a habit of washing their hands instead of having to be told.

Over time, the girls learned that impeccably clean meant never coming to the table or to expect to help in the kitchen without first washing their hands with soap and warm water. (Disclaimer: It doesn't always happen but for learning purpose let's pretend it does.  I digress.)

The point is that the girls learned why it's important to have clean hands and inherently understood the expected outcome.

Successful companies use this same approach to deliver a better customer experience than their competitors.   Employees who understand why an extraordinary and memorable customer experience is important to the company and their own success are more likely to deliver it than those who don't understand that concept.

Customer-centric companies also have a standard for the customer's experience.  Like my wife's expectation for children to sit down to dinner with impeccably clean hands, there is a stated desired outcome that all employees strive to deliver.  It's a key part of the company culture and is reinforced on a daily basis.

Of course everyone needs to be trained how to do their job, but when employees know the why and the expected outcome the how becomes much more important.

Take something as simple as a customer walking in the door.  Most retail employees have been taught to "greet" the customer within x amount of time but they don't understand why those first thirty to sixty seconds are so important in setting the tone of the customer's overall experience.  They also don't engage the customer in a meaningful way since they've never been taught how the customer should feel as a result of this initial engagement.  So they say things like, "How's it going?" but never stop to hear a reply because as far as they know their how is over and done.

Companies will always be more successful when the how is only taught after the why and the expected outcome.

So let me ask, metaphorically of course, does your staff have impeccably clean hands or do you have to tell them to go wash?  The difference is in the experience.