Retail Contrarian

7 Ways to Maximize Every Holiday Opportunity

Hard to believe it's a little over a week before Christmas.  What you say and do with every customer between now and the end of the year has a huge influence on their experience and how well you maximize your customer opportunities.
 
Let me share with you some things to consider saying and doing with your customers - although I'd think long and hard before I actually used the first two.
 
You could try the threat method. "You either spend more or I take a hairdryer to the snowman."
 
The guilt approach does work but might be hard for most of us to pull off. "Only you know how good a husband you've really been.  Should I keep showing you more items?"
 
Now for some more serious suggestions.
 
1. One way to be successful this week is to change your mindset about how you approach the customer.  Instead of "showing" the customer something to buy, approach the customer with the attitude that you are there to help him/her select the right gift.  Nobody should walk out empty handed. Here are some quick hits that will do just that and are sure to lead to an additional sale.
 
"This will be perfect."
 
"She/he will love this."
 
"You have to see this."
 
"I've got the perfect gift for him/her right over here."
 
 
2. Since you're helping the customer select gifts you should also assist them with their decision to buy.  You also need to do this so you can serve as many customers as possible.  To do so successfully, try a few of these effective lines.
 
"Shall I gift wrap that for you?"
 
"Why don't I put one behind the counter for you?"
 
"That's a great choice.  Shall we go with that?"
 
 
3. One very effective way to sell more during the holidays is to ask questions that the customer will answer with a yes.  When they do, it gives you perfect opening to complete the purchase of that item.
 
"Don't you think he's really going to like that?"  (Customer answers yes.)  "Great, I'll grab one so they don't sell out."
 
"Will she be thrilled to receive that?" (Customer answers yes.)  "I agree.  Do you want that gift wrapped?"
 
 
4. After a customer has decided on one item don't offer to show them additional similar items.  Just keep showing them the rest of the fabulous products you sell.
 
"This will go perfectly with that."
 
"Now you just have to see this."
 
"I've got something else I know you'll want to see."
 
"Now look at this. . . . "
 
 
5. Once a customer decides on a product you can also find out if maybe that isn't also a good gift for someone else on their list.
 
"Do you have someone else on your list who would appreciate receiving this?"
 
 
6. And even though most people are out shopping for gifts, we all love to treat ourselves as well.
 
"How about treating yourself today?"
 
"Would you like one for you?"
 
"Now how about something for you?"
 
 
7. And last but not least, here are some things you don't want to say:
 
"Will that be all?"
 
"Feel free to think it over."
 
"If they don't like it they can always return it."  I'm guilty of this one but it really is the lazy way to make sales.  Why plant the seed that the gift will not be appreciated?  If you need to say something at least say something like, "I'm sure they're going to love it but if for some reason they don't they can always exchange it."

Have an awesome week. Good luck and happy holiday selling.
 
-  Doug Fleener and Brian Sullivan

Three and Sixteen Days to Go

With three days until Hanukkah and sixteen selling days until Christmas, here are some quick thoughts and ideas to consider:
 
1. Take time over the next few days to check in with each employee and review his/her seasonal performance to date.  Ask each employee to identify how they've best contributed to the results so far, and what one or two actions can they take to improve their performance even more.  It takes constant improvement by each member of the team to create extraordinary holiday results.
 
2. Are you and your staff recommending or showing multiple products?  Sometimes when associates show multiple products they unwittingly lead the customer to choose between products, not two or more of them.  Avoid using the word "or."  Say "and" or "both."
 
3. This is a great week to call your best customers and invite them in for some personal shopping time.  You might consider having a special gift for them to demonstrate your appreciation for their loyalty.
 
4. If you have a business crowd who shops during the lunch hours you might offer sandwiches or a buffet to keep them in the store longer.  If you have an email list you can promote this with a quick invitation to join you for a "holiday lunch while you shop."
 
5. Make a list of what you'd like to accomplish this week if you have a little extra time. Whenever the store is slow and you have plenty of staff, spend fifteen minutes working on your list.  Then go back on the floor and wait for the next opportunity. You'll be amazed how much you can get done when you're ready to take advantage of a brief lull.
 
6. No matter what you're doing, if you are the owner or manager you need to always be the reference standard when working with a customer.  Whether it's recommending multiple products, introducing yourself to the customer, or adding on, you can never fall short of excellence.  Believe me, the one time you do it the entire staff will be watching.
 
Here's a final thing to consider. 
 
7. If you raised all of your prices 10% tonight, what actions could you take tomorrow to keep your sales from falling off?  Think about it.
 
Now if you take those actions without raising your prices I bet you can increase your sales 10% or more.  Right?  Hmmm...
 
Have a great day and be extraordinary!

Learn how we can help you grow your sales at http://www.dynamicexperiencesgroup.com

Needs, Wants, and an Extraordinary Shopping Experience

I had an interesting discussion about the holiday season with the owner of an independent store.  I'll do my best to recreate it as I think the topic is worth sharing with you and your team. 

Owner:  Our goal during the holiday is to sell our customers what they want and quickly get them on their way.
 
Me:  How do you know what the customer wants?
 
Owner:  They tell us.
 
Me:  But do you know that's what they really need?
 
Owner:  Isn't it the same?
 
Me:  Not always, especially during the holidays.  What most people want to buy during the holidays is a gift that will make someone happy.  What they need depends on what product they should buy to make the recipient happy.
 
Owner:  But don't some people know what they need to buy?
 
Me:  Absolutely.  Someone who has done her research before coming into a store knows what she needs to buy.  Or if you're asked to pick up a specific item for someone then obviously you know what you need to buy.  But most customers at this time of year have more of a "want" than know precisely what they "need." 
 
Owner:  So our goal of having what the customer wants is incorrect?
 
Me:  I wouldn't say it's incorrect.  Your goal should be to understand more about the customer's wants so you can then help him choose what he needs.
 
Owner:  And how do we do that?
 
Me:  First things first.  Don't focus on what you're selling until you know a little something about who your customer is shopping for.  I like to think we should sell the same way the customer makes their list. That means working with the customer by who, not what, is on their shopping list.
 
Owner:  But who has time for that during the holidays?
 
Me:  We all do.  It only takes a few seconds to ask a question or two about the intended recipient of the gift; less time than we take droning on about products that may or may not be what our customer needs.
 
Owner:  Can we really do that when we're busy? 
 
Me:  We can and I think we have to.  It will not only help you sell more of whatever it is the customer needs but it also helps keep your return rate down.  Granted, as the season gets busier and busier you may not be able to do this with every single customer but if you can, you should.
 
Owner:  I'm just concerned that we won't get customers out the door as fast they want.
 
Me:  I question your assumption that every customer wants to get out of your store as fast as humanly possible.  What almost all customers want is to have a pleasurable shopping experience, especially in an extraordinary specialty store. 

While getting checked out quickly and efficiently is certainly part of it for many of them, it's not the only part.  They want to feel good about their purchase and their experience in your store.  As an example, thanking a customer and presenting them their purchase is more important than hurrying them out to wait on the next customer.
 
Owner:  But won't that upset others in line?
 
Me:  Not if the people waiting can see that the process is moving quickly and efficiently as well as pleasantly.  It's easy to strike a balance if you focus on the customer and making sure that her entire checkout process is enjoyable.  So if you think about it, your goal is to know what the customer wants so you can help her buy what she needs and make sure the shopping experience is one the customer enjoys.
 
Okay so it wasn't a life changing conversation, but I can guarantee that if you sell by who and not what you'll sell more. Our clients who did this were up 30% on Black Friday weekend. It works!
 
So let me ask, how well do you and your team know what the customer needs so you can help him/her buy what he/she needs and to make sure the shopping experience is an extraordinary one?

Doug

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.

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?

Demonstrating Your First Priority

The weeks between now and mid-November can be a challenging time for many store owners and managers.  There's seasonal staff to be hired and brought on board, holiday orders to being finalized, marketing and events to be planned.

But that's just the start. The holiday orders are arriving and seasonal merchandising needs to be completed. And it never fails during this time that something unexpected happens in the store or with the staff.

There's one big difference during this time between successful owners and managers and the rest.  It's a difference that has nothing to do with the holiday. The difference is that successful owners and managers are never too busy to keep the staff focused on their first priority: each and every customer who comes in to the store.

More important, the owner and manager demonstrate that priority every day.  No matter how long the to-do list, they understand that it's their actions that demonstrate to their staff that their first priority is the customer.

Here are six reminders for how you can demonstrate that customers are still your first priority, even while you're busy getting ready for the holidays.

1. Start every employee's day with a Daily Take Five.  To me this is a given but sometimes we can let the morning get rolling and let it slip.  Don't let it. (You can read about the Daily Take Five here.)

2. Be on the floor during peak times.  Yes, peak times during the weekday aren't insanely busy and the staff may get by without you, but being on the floor when the store is busy demonstrates your priority to your team.

3. The minute you're on the floor you're working the floor.  Sometimes our body may be on the sales floor but our mind is still on our projects in the office.  Don't let that happen! Your entire team will be watching and will notice if you miss a chance to engage a customer.  Remember, when you're on the floor you're "on".

4. Don't be too quick to hand off customers to a staff member.  It never fails that if you walk away from your holiday work and go on the floor that every customer comes to you instead of the staff. I'm not saying to not hand them off when the time is right, but doing so immediately demonstrates that your first priority isn't the customer.

5. Check in with your team from time to time about what's taking place on the floor.  You do have a lot of things to get done that are critical to your holiday and by all means do them.  But also take some breaks to check in with the team.  Don't just go out and say, "Is everything okay? Good, call me if you need me."  Instead, find out what's been sold and who's been in the store.

6. Print out Monday's Daily Retail Quote and post at your desk. It read, "The key is not to prioritize what's on your schedule, but to schedule your priorities." -  Stephen Covey

Taking these actions will remind your staff that even though you're busy getting ready for the holidays, your first priority is still the same. The customer.

So let me ask, are you demonstrating your first priority?

Doug and Brian

Every Day Success in 2009

Here are my final thoughts on 2008. Good riddance!

As 2009 begins, our industry is facing the most tumultuous year in a very long time.  A dramatic pullback in consumer spending is causing a ripple effect from retailers to manufacturers to suppliers to landlords and on and on and on. Many experts are predicting that more stores will close in 2009 than in any year since the early 1970s.

Not a pretty picture.

I never forget the human toll this economy takes. I know that for every store that closes, whether it is locally owned or part of a national chain, employees and their families are dramatically affected. These are not easy times, and they’re especially challenging for retailers.

But with these great challenges come great opportunities.

Fewer stores will mean less competition.  Consumers will shy away from retailers who are either known to be struggling, or project an air of “struggle” in their customer experience.  Consumers will continue to seek out and remain loyal to retailers who deliver a good value and a great experience. Will you be one of those retailers?

You can CREATE and MAXIMIZE the success you deserve in 2009 IF you’re 100% ENGAGED.  That’s true for every owner, executive, manager, support staff, and salesperson.

But it won’t happen on its own; those days are long gone.

In order to succeed, specialty retailers must now create enough store traffic every day.  Events, educational programs, and other activities that drive traffic will be key in 2009. Will you be able to create enough traffic to succeed?

Specialty retailers have to maximize every customer every day and turn it into a sale.  Retailers who still think that all they have to do to make a sale is open the door are in deep trouble. And there are a lot of them out of there.  Only 20% of the stores I visited last weekend even attempted to make a sale. I will not be surprised if at least half of those stores are gone by this time next year.  Are you maximizing every customer opportunity?

Specialty retailers must also focus on creating a customer-focused staff that is engaged and maximizing every single customer opportunity everyday. Great people are the only way to compete against the discounters who commoditize products. Is your staff ready to maximize the opportunities you create?

Keeping customers in 2009 will be even more important than making a sale. Retailers will have to engage their customers every day to create the long-term loyal advocates necessary to compete in these challenging times.  Remember, if you keep the customer you’ll get the sale. Will you?

And last but not least, success or failure in 2009 will come down leadership.  No one achieves success by hoping or wishing for it. Success comes when the leader(s) of a store or organization create positive energy and make sure everyone is taking positive actions every day.  Are you ready to lead?

We are. It is our goal to help your organization create Every Day a Success in 2009. We’ll help you succeed every day so you can make your week, your month, and then your year. You’ll be thriving when other stores are just trying to survive.

I welcome the opportunity to discuss how we can help your store create Every Day Success in 2009.  Whether you’re a large international chain or an independent retailer, we can help.

We’re ready to MAXIMIZE 2009. Are you?

Doug Fleener and Matt Norcia

Maximize Your Post Holiday Opportunities

I believe that high executing retailers can beat last year's numbers for the last week of December if they have their staff focused on turning returns into sales and shoppers into buyers.

I also believe that consumers who have been cautious this holiday will cut loose right after Christmas. Shoppers will be looking to spend those Gift Cards they received and exchange those unwanted presents for something else. A staff with a post-holiday positive attitude has the best opportunity to create positive post-holiday results.

A retailer once said to me that returns are "just a fact of life" and you have to "grin and bear it." I agree with him about the importance of the grin but I differ about the need to "bear it."  All retailers will have returns after Christmas; how the retailer handles those returns can ultimately determine their month.

There are three common mistakes retailers make when it comes to holiday returns:

1. They assume the customer wants a refund. Wrong.

2. If the customer doesn't have a receipt, or they have a gift receipt, the retailer assumes that the customer will only spend the amount of the product they're returning. Wrong.

3. They assume that if they can just break even on the few days after Christmas they are doing well. Wrong.

With the right approach to handling post-holiday returns, a retailer can not only save sales but create them as well. This year we are again recommending that your staff members know and execute the "Three I's with a Smile" approach to handling returns and exchanges.

1. Intercept all customers before they get to the counter. Greet them with a warm smile, a heartfelt "welcome" and an offer to take the return from them.  In most stores associates rarely do more than point toward the counter any customers who are seeking to make a return. This is not only a big mistake that ends up increasing the amount of returns, but it makes the person with a return feel less important than person making a purchase.

Try to engage the customer as close to the door as possible without making them feeling accosted. If a customer gets to the counter un-engaged your chance of saving the sale is greatly decreased.

2. Identify why the customer is making a return.  Since you are assuming the customer will make an exchange (and quite possibly spend even more money) listen carefully to what they say as you will gain information that will u help your next step be the correct one. One important thing you need to know is whether the person returning the product is the original buyer or received the item as a gift.

3. Influence the customer by suggesting or recommending products that will better meet their needs than the product they are returning. The customer may object to this and state that he/she just wants a refund. With a smile and the information you've gained from your identify step you can easily try to overcome the objection by stating what you've learned from them. I think we owe to the customer and ourselves to always try and overcome at least one refund objection. This can save a retailer thousands of dollars in returns. If the customer objects again, then of course you escort them to the counter and get their return handled cheerfully and efficiently.

A store manager of mine use to say, "Any retailer can make buying something a good experience for a customer, but it takes a GREAT retailer to do the same with a return or an exchange." When done well, the return or exchange will be a GREAT experience for both the customer and the store.

Here's wishing a Merry Christmas - or Happy Hanukkah - or if you have no holiday preference a Happy Day!

Doug Fleener and Matt Norcia

Downloads
1. A printer-friendly version of this newsletter to share with others or to use in a store meeting is available to download here.

2. Here is a Three I's with a Smile sign to post in the back room on December 26th.

-----

Crunch Time Success Tactics

Try these five tactics - they just may help you be wildly successful this last week before the holidays.

1. Review and improve your impulse items.  Take a look at the impulse items you have at the counter.  Are these products selling at or above your expectations?  If not, you need to take action and not wait for them to magically start selling. Even if your sales and traffic are off you should still be moving impulse items at the counter.

I've heard that a number of national retailers are switching out their impulse items for lower price points to increase sell through. We're also seeing retailers repositioning impulse items in the aisle to increase attachment rates with related items and to increase units per transactions.

2. Make sure your staff knows how to properly answer the "What's on sale" question. This is especially important if you're a specialty store with limited sale items.  Even more to the point is using the opportunity to engage the customer and identify the opportunities to create a sale.

Customer: "So what's on sale?"
Employee: "We do have some great values. Are you looking for yourself, someone on your list, or even both?"

Customer: "So what's on sale?"
Employee: "We do have some wonderful specials right now. Whom on your list are you shopping for??"

Don't show any specials or sale items until you know the answer to your question.

3. Remind customers who else should be on their list.  Instead of just asking the customer whom else they need to buy for, remind them of some people they may have forgotten such as hairdressers, babysitters, blog writers (that's a joke!) and others.

4. Remind your team that they may need to work with multiple customers from here on out. When a store gets slammed, employees must shift from working one-on-one to one-on-many.  The sales process doesn't really change, you just break away at different points. Here's a simple example:

One-on-one
This cable sweater will look beautiful on you.  I know that both the blue and green will both look fabulous. Let's go have you try them on.

One-on-many
"This cable sweater will look beautiful on you. I know that both the blue and green will look fabulous.  Why don't you go try them on and I'll meet you in the dressing room in a few minutes." (Employee them jumps back to another customer.)

Here's another example

One-on-one
Based on what you've told me about your husband, I'd recommend this XYZ by Motokia. You mentioned that he gets lost a lot so let me show you how the GPS in this works.

One-on-many
Based on what you've told me about your husband, I'd recommend this XYZ by Motokia. (Employee turns to a customer next to them who is also looking at the same phone.) Hi, if you'd like to join us I can also show you some of the features I'm showing Mrs. Smith. (Back to the Mrs. Smith) You mentioned that your husband gets lost a lot so let me show you how the GPS in this works."

You do have to be careful that the second customer doesn't try to dominate the conversation.  If that starts to happen then you can either ask another salesperson to step in and assist them or you can tell them you'll be with them in a moment. When done well you can close both sales at the same time.

5. Post today's Daily Retail Quote.
"Nothing is more expensive than a missed opportunity." -  H. Jackson Brown Jr.

Here's wishing you a wildly successful Crunch Time.

Crazy Busy or Crazy the Store is so Slow

The first two weeks in December are some of the most challenging days of the season.  It seems the store is either extremely slow or exceptionally busy.  The customers who are in the store seem to either buy up a storm or storm off when you try to help them.  What's a staff to do?

I'll start with the easy part, a hopping store full of buyers.  It's times like this that make working retail during the holidays so much fun. Here are some tips to ensure as much money as possible makes it into the register.  I know you've heard these all from me before but December is a good time for a refresher course.

1. When showing a customer different products always give your opinion on which one he should buy. Even better, suggest he buy all of them.

2.  Remember the Butcher rule; always show the best product first. 

3. Never ask "Will there be anything else?"  That's code for, "You're done, right?"  Instead, ask who else is on your customer's shopping list.  Keep asking questions and suggesting products until the customer says he/she is done.

4. Don't bring the customer to the counter until she tells you she is done shopping.  If the customer has several products in her hands and you want to help her out do not say, "I'll put these behind the counter."  Don't even mention the word "counter" or "register." Instead say, "Let me hold these for you while you continue to shop."

Now, about those slow days and the "just looking" crowd.  Try these tips to turn the browsers into buyers and the register into singers.

1. Do NOT ask the customer how you can help him. I was in a mall over the weekend and was shocked at how many times I was asked that question. You know the answer, why bother to ask the question?

2. Do welcome the customer and tell her about your store's holiday specials. "Hi, welcome to ABC Kitchen Supply.  We have some amazing holiday specials including a buy two get one free."  What you follow-up with depends what works for you personally and your customer's reaction to your welcome.

3. If the customer appears to be open to your engagement you might ask him how he'd doing on his shopping list or if he's treating himself to something.  Use however the customer to ask a follow-up question.  Suppose the customer says, "Well, the good news is that I'm almost done with my shopping."  You could respond with, "Congratulations. I'd love to show you a few things to help you complete it.  Who's left on your list?"

4. During this time in the season you need to be persuasive and proactive in moving the customer into your products.  I'm not saying to be overbearing or obnoxious but you can't be passive and just ask people if they need to be helped.  As one fiery retailer in Las Vegas says, you can work it or clerk it.  The key to "working it" is to display passion, energy, and a true interest in the customer.

So whether the store is crazy busy or you're crazy the store is so slow, be sure and maximize every opportunity with every customer.