Retail Contrarian

Flip It

One of the keys to being successful this week is the ability to flip customers who come in for a refund or exchange into making a big purchase. It won't happen with every customer, but it rarely happens at all if you don't try.

The game/contest Flip It makes trying a lot more fun.

The goal of Flip It is to have the largest sale of the day that began with a return or exchange.

I like to make the prize a $20 bill or gift card and then have the prize passed around as one employee tops another. I used to do this back in my Sharper Image days, and I'm convinced some of the salespeople enjoyed taking the prize from a colleague more than the prize itself.

Here's an example of how it works.  The first customer of the day comes in with a $20 return, but the salesperson then sells him $60 of additional items.  That means the current top Flip It sale is $40. (You have to net out the return or exchange.)

The next customer has a $130 item to exchange, and the salesperson sells her additional items worth $200. The net Flip It sale is $70.  He/she now gets to take the cash or gift card from the other salesperson.

Another way to play Flip It is to pay everyone a prize for flipping customers.  You could, for example, say that any return or exchange that has a net increase of $100 or more wins a $5 gift card.

The key to flipping the customer is to NOT ask if he/she wants to see something else. Use proactive phrases like, "You have to see these items on sale" or "I have the perfect widget to go with the red one you're exchanging."  

While I'm sure I don't have to remind you of this, it's important to make sure trying to flip the customer doesn't have a negative impact on his/her experience. It's all in the passion and enthusiasm you use to move your customer to other products, and remaining keenly aware of how each customer is reacting.

So let me ask, are you and your team successfully flipping returns and exchanges into bigger sales?

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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.

Which leader will you be this week?

How are you doing?  You, not your store, although I'd love to hear about last week's sales. Right now I'm more interested in how you are.  I ask because the energy and attitude you as a leader bring this week has a huge impact on your results.

This is the week to be an extraordinary leader.

Retail leaders usually fall into one of these categories at this time of year:

1. The tired leader. If you ask this owner/manager how he's doing he'll tell you how tired he is.  If you don't ask how he's doing he'll still find a way to work it into the conversation. Not surprisingly, everyone on the staff is pretty tired too, or at the very least tired of hearing about it from the owner/manager.  And of course when everyone is that tired, more opportunities are lost than are created.

2. The stressed-out leader. You can find these owner/managers without ever setting eyes on them. All you have to do is talk to stressed-out staffers. This owner/manager might try to tell you everything is fine, but the short fuse and tense facial expression is a dead giveaway.  The stress could result from any number of other reasons, none of which really matter. It all leads to more lost opportunities.

3. The overworked leader. This owner/manager loves to tell anyone who will listen how much he/she is working. I had a manager once who would refuse to take a day off between Thanksgiving and Christmas, and then spend every day talking about how she hadn't had a day off! This owner/manager's need to talk about him/herself results in lost opportunities.

4. The overwhelmed leader. While this owner/manager may at first appear to be a stressed-out leader, you can spot them by the lack of leadership and confusion within the team. This manager/owner is working extremely hard but the store is slowly spiraling out of control, taking opportunities out of reach.

I'm the first to admit that at one time or another in my retail career I've been every one these leaders. I also learned from some great mentors to become the fifth type of leader.

5. The crunch-time leader. This leader is far from perfect. As a matter of fact they're just as likely to be tired, stressed-out, overworked, or maybe even overwhelmed, as any of the other leaders. The difference is that they're not showing it.

The crunch-time leader leads. The busier the store, the more she elevates her game. She shows more energy, not less. She's demonstrating more passion and giving out more encouragement to her team. She's keeping everyone focused on the customer and, most importantly, she's keeping it light and fun.

Leaders lead, especially in busy times when the opportunity is there.

So let me ask, which leader will you be this week?

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

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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.

Rock the boat!

I recently spoke with a retailer who is disappointed with the performance of one of her key employees. When I asked how she is handling the situation she replied, "I haven't really said much.  I don't want to rock the boat this close to Christmas."

I hope your reaction is the same as mine.  Rock the boat!

Here's why.  A mentor of mine recently explained that people and organizations have a finite amount of energy and focus at their disposal.  This energy and focus is used both externally in creating sales and building your community, and internally in dealing with organizational problems, challenges and opportunities.

What he said next really stood out for me:  Any additional energy and focus that's required internally is taken away from the external customer side.  We may fear rocking the boat during the holidays, but not quickly resolving issues during the holidays will cost you a lot more money than will rocking the boat.

Here's my advice for that retailer and any other owner/manager in the same position. If an employee is falling short of your expectations, address it now.  As I've said many times, most employees want to do a good job.  They can't improve if you don't let them know what to work on.

Nine times out of ten these conversations go better than we expect.  Remember, keep the focus on future behaviors and don't dwell too much on past actions.  Keep it positive. Express your support of the employee and be done with it.  Take the internal distraction, fix it, and get the energy and focus back on the customer.

Also, don’t forget to praise and thank all of your employees at the end of each day. It’s Showtime!

So let me ask, do you need to rock any boats?

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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.

Assume a HUGE weekend

Can you believe that after this weekend there is only one more full weekend until Christmas?

Every customer who comes into your store offers you the chance to connect, deliver a memorable experience, and win him/her as a customer with the biggest possible sale.

When I talk about making the biggest possible sale, I'm not saying that we should be pushy or try to sell people a bunch of stuff they don't need or want.  What I am saying is that by maximizing the relationship you build with your customers, you can help them purchase more of your wonderful products for the people on their list.

Most salespeople believe that the outcome of a sale lies in the customer's motives and actions.  I believe that our actions, and the language we use, influence sales as much as anything the customer thinks or does.

Let's go into the weekend assuming that if you use these three tips, you and your colleagues will have a HUGE weekend.

1.  Assume that every customer is walking into your store to make a purchase.  I know this sounds line a no-brainer, and I bring it up from time to time, but my own shopping experiences remind me that not everyone thinks this way.  At 7:30 on Black Friday morning a sales clerk actually asked me if I was out shopping.  I felt like responding, "No, I'm playing a round of golf and I think I sliced my shot into your store."  Of course I'm out shopping!

And we want to go beyond that initial assumption.  Don't just assume the customer is out shopping; assume the customer is walking into your store with his holiday list.  With less than three weeks to go and the crowds only getting bigger every day, why wouldn't a customer be out buying? 

If you're assuming that your customer is ready to buy more than he thinks he is, remind him of the benefits in buying now. (Shorter line, better selection, faster gift wrap, getting to work with you as their sales associate, etc.)

2. Use assumptive language to maximize your opportunity.  Of course, this goes hand in hand with assuming the customer is coming into your store to buy for their list. Assumptive language conveys to your customer that you are ready to help her make a purchase, and helps her picture the people on her list receiving and using the gifts she gives.  It also does the same if she is buying something for herself.

Try these key assumptive words:

Will - "You will really enjoy this" or "This will look beautiful on her."

When - "When he opens this" or "When she puts it on for the first time." 

Use or Wear - "When you use this you'll be amazed at how well it works" or "When you wear this I'm sure you'll just love it." (Come to think of it, Love is another great assumptive word.)

3. Assume your customer will buy multiple products for multiple people on his list. As I've said many times, let the customer decide when he is done.  Here are some examples of using assumptive language to continue the sale

"Here are the matching earrings" instead of  "Would you like to see the matching earrings?"

"This smaller one is a perfect compliment to this one." instead of  "If you're interested, there is a smaller version."

"Who else is on your list?" instead of  "Will there be anything else?"

Remember, it's only rude if you keep showing the customer products when she says she is ready to leave.  Give yourself a goal of allowing every customer to make the decision to go to the register.

So let me ask, are you ready for a wildly successful and assumptive weekend?

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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.

Don't wait - create!

On Monday I was in a store and asked a few employees who were standing around how business was. Well, I really wanted to ask why they were standing around talking among themselves, but I restrained myself. But I digress.

The employees said they had been pretty busy over the weekend, but now they were "just waiting to get busy again." I totally get it. The first full week of the holiday season is always a bit maddening. At times it doesn't even seem like it's the holiday, and then BAM you get slammed for a while. Then it's back to slow again.

You can approach the next couple of weeks in two different ways. You can wait for success or you can create it. Don't miss the opportunities that are before you because you're waiting for future opportunities to show up.

The slower periods offer an incredible opportunity to get to know your customers better and deliver an experience that is second to none. As matter of fact, these slower times should allow you to greatly increase your average sale and units per transaction.

When not with customers I would be on the phone or on email inviting customers to come into the store. Work off a short script that gives your customer three benefits to coming in soon.

1. During the early part of the holiday it is more relaxing to shop in the store.

2. You are able to spend more time helping them find the perfect gift and/or items for themselves.

3. More products are in stock. You especially want to share this if you have a gift with purchase that is in limited supply.

Don't wait for success to find you this holiday...create 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.

The leadership holiday effect

There are several somewhat intangible staff attributes that separate the good from the great stores over the course of the holiday season. They aren't things we train on, but are the result of the leadership and the effect they have on his/her team.

These intangibles directly impact the customer's experience and, ultimately store results, in a positive or negative way. Here are some key intangible for your consideration.

Attitude

Well-led teams are excited about the upcoming holiday. They know that the next six weeks will be very busy and at times very tiring, but they're also eager to get started because they know how important Christmas is to a store's long-term profitability.

In other stores, the staff is dreading the holidays. They're talking about how difficult customers are, how the store hours stink, and everything else they believe is going to be bad about the holiday.

The attitude of the leader is the attitude of the team.

Beliefs    

Well-led teams believe they control what happens this holiday. They don't dismiss how challenging the economy has been for a lot of people, but they also know they have the products and store experience that people will pay for.

Other teams are already preparing for failure. They've been told that customers prefer other stores so they just do the best they can. Unfortunately for them, when the bar is set so low the best isn't going to be good enough.

Staff beliefs come directly from the leader.

Energy

This may well be an outcome of attitude and beliefs, but customers can feel the energy and passion from a well-led team. Energized teams have a bounce in their step as they work the floor and enthusiastically welcome their customers into their store. 

Not so for the other teams. Maybe they'll find it when the holiday crowds hit - but if they don't have the energy now I'm not sure they'll get it later.

The daily energy level of the leader sets the energy level for the team.

Focus

Well-led teams are laser focused on the customer. Their goal is to win every customer who walks in the door, maximize the opportunity, and extend the relationship by setting up the next visit. Everything else is secondary. The holiday is well underway in these stores.

Other teams are still waiting for the holiday customers and are juggling current customers with getting everything ready for the big day. They fail to see that every day is now the big day.

A team's focus is determined by the leader's expectations and own actions.

As a leader, all you have to do is look around to see what your attitude, beliefs, energy, and focus are. Your team is displaying them today. I hope you like what you see.

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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 2011 holiday outlook for specialty stores

With Black Friday just fifty-nine days away, it's time to take a look at this year's holiday predictions. Here are some recent headlines about the upcoming holiday.

Joyless Holiday Retail Forecast  Wall Street Journal - Sep 21, 2011

Moderately healthy holiday sales forecast  Pittsburgh Post Gazette - Sep 22, 2011

Holiday season may be a bah-humbug for retailers  The Associated Press - Sep 21, 2011

Retailers Expect More Sales, Fewer Shoppers During Holidays  KBOI - Sep 22, 2011

Forecasts point to modest holiday growth  BusinessWeek - Sep 22, 2011

Holiday Apparel Sales Will Increase Despite Lower Foot Traffic  Sporting Goods Intelligence - Sep 23, 2011

That cleared things up, right?  What's funny is that these headlines are all based upon two different holiday predictions that have fairly similar outlooks.

And there's the key word: Outlook.  I believe your holiday success will be determined more by your outlook than any national predictions.  With a zero national market share, you have the ability to influence your results more than the outside influences driving the national predictions.

Here are three reasons I believe some specialty retailers will have a terrific holiday:

1. Deal fatigue and the experiential purchases.  Although deal-of-the-day sites like Groupon and online shopping sites including Amazon have saved consumers a lot of money, they've also added a new level of stress to shopping.  Of course shoppers want a deal, but they also want to enjoy shopping.

Most consumers will be looking for deals this holiday, but these same consumers also set aside part of their budget to shop with stores that deliver a stress- and deal-free memorable holiday experience. I 'll write more on this topic as we get closer to the holiday season, but as every year I'll be challenging you to create a unique and memorable in-store experience that differentiates you from the competition. This customer is going to appreciate it even more this year.

2. Focus on events.  Almost every holiday report is predicting a decrease in store traffic.  I'd say that's a pretty safe prediction, since that's already happening in most stores.  Specialty retailers that can successfully use events to create incremental visits from their customer base won't be as affected by this trend.  Even more important, these events are exactly the type of feel good holiday experiences at which consumers will make incremental purchases.

3. The staff's ability to deliver a great experience and create a sale.  Ultimately, the stores with the right product and the best staff will be successful.  WOWing customers while at the same time focusing on conversion and average sale will be essential to success.  Frankly, most stores can't or won't do this.  Now is the time to work with your staff so they're ready to maximize every customer opportunity this holiday season.

One of my favorite sayings is, "Optimists are right.  So are pessimists.  It's your choice." Forget the national predictions...let's make our own.

Here's my headline prediction:

Select specialty stores to have a very successful holiday  Retail Contrarian - Sep 27, 2011

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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.

Modeling and Flip It

In my experience, the few weeks from late December into around the middle of January are some of the most frustrating in retail.  Every day is a roller coaster of sales and returns.  One minute you're having a great day and the next minute you're in the hole.  One minute you're slow, and the next minute you're slammed.

Our biggest challenge through it all is making sure we're doing all the little things that make us successful.  Sales are so easy to make in December that it's easy to slip into too much clerking.

That's why your leadership is as important now as it was in the thick of December sales.  It's important that every manager be setting an example with every customer.  I'll admit that when I was a store manager, after the holidays I was pretty quick to hand off customers to the staff so that I could "catch up on my work."  And I really did have things to catch up on, but maybe not as much as I made it seem.

Several years later I was out visiting stores and a met an assistant manager who told me that he was a model.  This guy was a fine fellow, but I wouldn't say he was an especially sharp dresser and I couldn't picture him on the cover of GQ.  I figured maybe he was a hand model or something.

I asked, "What kind of modeling do you do?"  He said with a smile, "The most important kind.  Role modeling!"  He was right, and he was especially on the mark for after the holidays.

Another way to keep everyone on track this week is to do a one-day contest.  One of my favorites at this time of year is called Flip It.  The goal of Flip It is to have the largest sale of the day that began with a return or exchange.

I like to make the prize a $20 bill or gift card and then have it passed around as one employee tops another. I used to do this back in my Sharper Image days, and I swear some of the salespeople enjoyed taking the prize from a colleague more than the prize itself.

Here's an example of how it works.  The first customer of the day comes in with a $20 return, but the salesperson then sells them $100 of additional items.  That means the current top Flip It sale is $80. (You have to net out the return or exchange.)

The next customer has a $100 item to exchange, and the salesperson sells them additional items worth $110. The net Flip It sale is $110.  He/she now gets to take the cash or gift card from the other salesperson.

Another way to play Flip It is to pay everyone a prize for flipping customers.  You could, for example, say that any return or exchange that has a net increase of $75 or more wins a $5 gift card.

Have fun today, and be sure your modeling and flipping every Season of Me opportunity.
 
Talk to you again in 2011!

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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.

Post Holiday Success: Maximizing the Season of Me

On the day after Christmas, retailers move into what I call the Season of Me.  Customers will descend on your store for the next two weeks armed with gift cards, cash, and a strong desire to buy for their favorite person, themselves.  Many of them will also be carrying gifts to return and/or exchange.

The key to a successful Season of Me is creating opportunities and increasing sales.  Far too many retailers go into the post-holiday season dreading the prospect of dealing with returns and exchanges. 

That attitude is a recipe for creating nothing.  Every customer who walks into your store, for whatever reason, is an opportunity to create a sale and deliver an extraordinary experience that will bring that person back throughout the coming year.

Look at your customers who come in with a return or exchange as an opportunity, not inconvenience.  Think sales and experience, not refunds. Think turning returns into dollars.

Don't assume the customer wants a refund. Don't assume the customer will only spend the value of the product they're exchanging.  And most important, don't assume that you can't finish in the black this weekend. All it takes is an approach I call Three "I"s with a Smile.

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 ignore customers with refunds, or at the very least just point them to the counter. This is not only a big mistake that ends up increasing the amount of returns, but makes the person with a return feel less important than the person making a purchase. Try to engage the customer as close to the door as possible without making them feeling accosted.

2. Identify why your customer is making a return or exchange.  Since you are assuming the customer will make an exchange and probably spend even more money, listen carefully to what he says in order to gain information that will 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. Inspire your customer to upgrade her return or exchange by enthusiastically recommending products that will better meet her needs.  Your customer may object to this and state that 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 her.  You'll be surprised how many customers will agree to look at what you're recommending.  It often just takes a bit of finesse because the customer came in with the mindset of getting a refund.

I can't stress enough that how you present the refund alternative impacts the results. When you do this with confidence, passion, and a smile you'll often get the results you want.  We owe it to our customers- and ourselves - to try and overcome at least one refund objection.  This can save a retailer thousands of dollars in returns.

If, after you've taken these steps, the customer wants to move forward with a return then of course you'll escort him to the counter and get his return handled cheerfully and efficiently.

So let me ask, are you ready for The Season of Me? All it takes is the right mindset and Three "I"s with a Smile.

You can download a printable handout and Three "I"s with a Smile sign to review with your team.

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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 (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.