Retail Contrarian

Get In the Zone

To most retailers, zoning a store means assigning an associate to a particular area.

To retailers who want to deliver memorable and effective customer experiences it means to focus on certain customer activities in different areas of the store.

Here are the three zones for everyone on the team:

Zone #1: The No-Engage Decompression Zone. The decompression zone is the area a customer enters immediately after walking into your store.  The size of the zone depends on the store's overall size and layout. For some retailers the decompression zone might be only three feet wide while in other stores it could ten or twenty feet wide. Whatever its size, we should avoid engaging customers here. Customers need this time and space to acclimate themselves to their new surroundings.

A big mistake many retailers make is greeting and engaging customers while they are in the decompression zone. Watch how customers react when they are engaged too soon after they enter a store. They seem almost surprised to be greeted and are much faster to say they are just looking. They are also much more likely to see the staff as pushy and overbearing compared to stores that let the customers get through the decompression zone before engaging them.  I strongly encourage you to identify the decompression zone in your store.

Zone #2: The Welcome/Greet Zone. This is obviously the area right after the decompression zone and this is where customers should be welcomed.  By keeping the welcome to this area you prevent customers from being over-greeted. When customers are over-greeted the store staff appears insincere and pushy.  Customers by and large find being over-greeted to be extremely annoying; I've left stores because of it.  Once customers leave the Welcome/Greet Zone you should only greet or welcome them if you are positive that no other employee has done so.

You might also consider "banning" closed-ended questions and certain phrases in this zone including, "How may I help you?" and "Do you have any questions?"

Zone #3: The No Shadow One-to-One Zone.  After the Welcome/Greet Zone is zone three, which is most of the store.  It's in this area that experiences are delivered and sales are made. Or not.  As we saw last week, being too overbearing in this area can actually upset customers. That's why zone three is a No Shadow Zone.

The goal in this area is to engage the customer in a one-on-one conversation.  Not a sales pitch per se but a conversation to get to know your customer and develop a relationship with him/her.

If your customer clearly wants to be left alone then by all means do so.  And this doesn't mean just stopping talking but also giving him/her the appropriate physical space to enjoy your store.  No shadowing!  I'm sure that if your customer has a question or wants to buy something he'll find you.

The no-shadow rule of course does not apply to people you suspect might have less than honest intentions. If you believe a customer is interested in your products but not so interested in paying for them then of course you want to show them so much attention they get annoyed and move on to another store.

Owners/managers of stores that aren't already sectioned into zones may well want to review this three zone system.  You'll find that such an approach goes a long way to ensuring that every customer has a great experience and has the opportunity to share their money with you.

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.

Obsession: Your 2008 Strategic Competitive Advantage

One way to not simply survive but thrive during the current financial (insert whatever word you'd like to use here - situation, opportunity, challenge, crisis) is to become even more obsessed about your customer's shopping experience.

Contrary to what some people are saying, customers are shopping and they are spending money.  Malls were packed with shoppers last weekend.  While consumers are not spending the way they did this time in 2007 or 2006, it's not really that far off.  They're just being more selective in what they buy and where they buy. 

What I see when I walk malls and strip centers are retailers who haven't changed many of their actions beyond marking merchandise down faster and faster.  Sure, customers want value but they also want to feel good.  As a specialty retailer, part of your value proposition is how you make your customer feel when he/she is in your store and, most importantly, when he/she makes a purchase.

Is there any better time to make customers feel good about their experience with you?

Since that retail experience is indeed part of your value proposition, you must deliver a better experience in 2008 than you did in the past.  Failure to do so will have a direct impact on both your top and bottom lines.

Ask yourself and your team these six questions about your customer's 2008 shopping experience:

1. Does your customer feel a positive and energetic vibe when he/she enters the store?

This usually comes from a combination of the staff's attitude, quality of greeting, music, and other variables.

2. Is it clear to your customer that he/she is the staff's highest priority - without being pounced on as they walk in the door?

Some retailers have cut back staffing to a point that the employee's priority is now completing tasks instead of focusing on the customer.

3. Are you creating some type of memorable moment for your customers?

What is happening inside your store that isn't happening anywhere else?  Is it that bottle of water your customer is offered, a comfortable chair, a piece of candy or a product sample?  While the best memorable moments are usually the result of your staff doing something spontaneous with a customer, a planned strategic memorable moment is a very effective tool.

4. Are your customers able to check out quickly when they're ready?

Customers never feel good if they have to wait a long time to finalize their purchase. Sometimes they don't even bother. A friend of mine was at a department store last weekend and wanted to buy over $400 worth of clothes but the only register open was much too slow for him.

5. Is your store impeccable?

Not just clean, not just well merchandied, impeccable! Beyond the staff, the store environment plays a big part in the customer's experience.  Are the product displays well maintained  Are new shipments put out quickly without causing any disruption to the customer?  Is the cashwrap clutter-free?

6. Most important of all, is every single employee in your company obsessed with your customer's experience?

That by far is the most important thing you can and should be doing right now. Every employee in your company or store should be obsessed with the customer's experience because they know that it is the highest priority and there's no one more obsessed about the customer's experience than you.

So let me ask, are you obsessed enough to be a strategic competitive advantage?

Note: A printer friendly version of this article to share with others or to use in a store meeting is available here.

Into Action Tip: At your next store meeting have the staff brainstorm additional ways that they can add value with the store experience they deliver. Think outside of the box and use this as an opportunity to create an even stronger strategic competitive advantage.

The Self-Inflicted Economic Slowdown

Excuse me while I rant. On Saturday my daughter and I went shopping. The center was packed with barely a parking space to be found. I guess nobody told these shoppers that we are supposed to be in the midst of an economic slowdown. The only slowdowns I saw were by the staffs of almost every store we went into. 

My shopping experience was nothing short of pitiful. The first store Kate and I went into couldn’t be more than 800 square feet.  Three employees working and all three of them completely ignored us. It’s almost impossible to ignore customers in such a small store but they managed.  Since this store sells premium frozen meats it’s not like we weren't easy to greet and engage.  But nope, the staff talked among themselves and possibly even missed a sale. Yep, there’s a slowdown alright.

The next store was a company-owned athletic shoe and apparel store. The most engaging part of our experience was when an employee looked up from the computer, said “How’s it going?” and then went back to looking at the screen without waiting for an answer.  Never acknowledged us again. Yep, there’s a slowdown alright.

The next store I figured would be different since it is a partnership between a cable company and an consumer electronics retailer. We walked into a surprisingly quiet store, which we didn’t expect given the number of televisions and home theater systems surrounding us.  We were immediately approached with a “May I help you?”  What could I say but “Just looking?”  It seems to me that you might ask me questions about my cable provider or if I have HD.  But no, she went back and hung out with the five other employees doing nothing. Yep, there’s a slowdown alright.

We hoped in the car and went to another shopping center.  This one was more crowded than the first one.  Yep, there’s a slowdown alright. 

It was here that we had by far our best experience. The staff was attentive, engaging, and helpful.  You won’t be surprised to learn that it’s also where we made our only purchase of the day. It’s also the only big box store we shopped at. That’s right, the only store where we received a high quality engaging store experience from the staff was at the Sports Authority store in Woburn, Mass.  In every department we walked into there was a staff person who acknowledged us, engaged us, and was genuinely interested in us as shoppers. At a big box store!!

I don’t think there is a specialty retailer out there who can afford to ignore their customers and not attempt to create a sale, but that happened to me on Saturday time and time again. Yep, there’s a slowdown alright, and on Saturday it was mostly taking place in specialty stores.

Come on guys, we need to put the “special” back in specialty stores and quit causing our own self-inflicted slowdown. Remember, we win and lose with what happens between the staff and our customer. Do that well and you will overcome any economic challenges and have a great year at the expense of your self-inflicting competitors.

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.

An Education from the Observation

One of my favorite parts of my job is spending time with owners and executives in their stores observing how the staff goes about their business.  Sometimes improving some of the smallest details can pay some of the biggest dividends.  I decided today to share with you some of my observations from a recent store visit. 

* One employee always positioned herself in approximately the middle of the store so she could greet and engage customers from where she was standing.  Another staff member stayed closer to the counter that was in the back of the store.  To greet and engage the customer she had to walk towards them.  It was interesting to see that customers were more open and friendly to the staff member who didn't have to physically move towards them.  I'm not sure I ever noticed the difference before but you could see how much more defensive the customer became when an employee walked towards them.

* The owner had coached the team to focus on making multi-unit sales. One thing we observed is that about half of the team would tell the customer about an additional product while walking towards the counter.  The other half transitioned to an additional product in the same spot or led the customer to a different place in the store.  When we looked at the historical units per transaction averages for the staff it wasn't surprising to see that most of those who tried to talk about a second product while going to the counter had the lowest average.

* I've talked about this one a lot but it was fun to see in person. The best salesperson always got the product into the customer's hand.  It was obviously second nature to her because I'm not sure I ever saw her hold a product except for the brief moment it took to pick it up and hand it to the customer. We observed that the less productive salespeople had a tendency to point at products or just stand in front of them but rarely got them into the customer's hands.

* I was really impressed with one woman's ability to engage customers who said they were just looking. She would welcome and engage a person and whenever they said they were just looking she responded by thanking them for coming in and giving them a 10-second overview of what made the store unique. What made this woman's approach stand out is that she never took it personally or became defensive when the customer said they were just looking.  As a matter of fact her enthusiasm level was where it would be if the customer had just said he would take one of everything in the store. We compared that to other employees, whose energy level dropped and approach changed if the customer said they were just looking.

* One thing the entire team did well was to reinforce the customer's purchase during the checkout. This is a skill that the owner had clearly spent time teaching her staff.  Every single customer walked out of the store not just believing but knowing that they had made a good purchase.  I really liked when they linked it back to something they had learned from the customer when asking questions.  Not surprisingly, this store's return rate is extremely low.

I think the owner was quite surprised what we could learn in just a few hours. It's not that these things are terribly hard to see but you have to look for them and then put what you've learned into improving your team.

So let me ask, when did your team last spend time observing the fine details of each other’s sales and experience approach?  I think you'll be amazed at what you can learn that will improve your store and your overall sales.

- - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - - - - -

An Education From the Observation in Your Store

Send us an email with “Tell me more” and I’ll share how you can receive your own education from the observations in your store with our Store Visit service.

- - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - - - - -

You Get by Going

A friend of mine said to me, "I've always found that you don't get where you want to be, you go there." I asked him to say that again and when he did I replied, "That's brilliant."  He smiled and said, "Yeah, I know.  I read it somewhere and thought I'd try it out on you."  Oh well, even if he didn't make it up it's still brilliant.

If you're going to be a successful retailers you're not going to get there unless you take the actions to go there. For most specialty and independent retailers that involves improving your customer's in-store experience.

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

Adapting for Sales and Engagement Success

One of the ways GREAT retail salespeople differentiate themselves from good retail salespeople is in their ability to adapt their sales and engagement approach to the customer. Most retail salespeople will engage the customer based on their own style and approach. Some are high energy, some are low key, and most are somewhere in-between. Good retail salespeople will deliver the same quality experience throughout the day with little difference between the first and last customers of the day.

GREAT retail salespeople deliver a quality experience but they adapt each experience to the customer themselves. They are able to quickly size up a customer and completely adjust their sales and engagement approach based on the customer's style and mannerisms. It's a real art, but it's one that can be learned.

Years ago I worked with a guy like this at The Sharper Image in Palm Beach Gardens, Florida. The man was a master retail salesperson. Or at least he was when he hadn't stayed out all night before coming to work. But when he was on, he was on! His ability to adapt to each customer was unbelievable.

The result was that customers just loved him and were practically begging him to sell them things. For the life of me I can't remember his name so I'm going to call him Bob. These are four ways Bob personalized his approach to each customer that made him a GREAT salesperson.

1. Bob mirrored the customer's energy level. Bob's own energy level was extremely high. Sometimes he'd get talking so fast you weren't sure if he was speaking English or not. You knew when he arrived at work because it was if a whirlwind had hit the store. But when he was with customers you would only see that energy level with customers who also had high energy. He always welcomed a customer in his natural style but would ramp it down if needed based on the customer himself. Within minutes he would be at the almost same energy level as the customer, always remaining just a bit more energetic. He didn't just adapt how he spoke to the customer but he even adjusted the speed he walked with them.

2. Bob always got - and used - the customer's name. This is one of those things we know will make us better salespeople but we simply don't feel comfortable doing it. Or maybe we've convinced ourselves that people don't like it so we don't do it. The reason most people don't like salespeople using their name is because it seems forced. This happens because salespeople are using a customer's name just for the sake of using her name. Bob set out to create a relationship with each customer and if you're going to have a relationship you should at least know the other person's name.

3. He personalized the pace of the experience he delivered to the customer's own pace of shopping. It's always easy to see when a customer is in hurry but each and every customer wants to shop at his/her own pace. Some customers are slow and deliberate while others want to move the process along quickly. Don't confuse a customer's energy level with pace. To judge a customer's pace you should observe how he is moving between products and how focused he is. Customers who like a quick pace are often misjudged as in a hurry or "cranky," while customers who are slower and more deliberate are mistakenly labeled as browsers and non-buyers. The more you are aligned with your customer's desired pace the more likely you are to complete a sale.

4. Last but not least, Bob always assumed and asked for the sale. Bob was our top salesperson practically every month because he spent his time working with buyers while the rest of us waited on customers. The difference lies within our own thoughts and attitudes.

So try this out on your customers this week. Adapting to your customers might just get you adapting to higher sales.

Retail Academics

Some of the fine folks at the National Association of College Stores recently had the opportunity to hear Doug speak at their Creating Xtreme Customer Experiences Workshop, and they've posted a few of his recently-published comments on their blog (with permission, of course) to share with their members who were not in attendance.  This also serves as a reminder for those who were there and might have missed or forgotten something Doug said.  Ultimately, though, their inclusion of these bits of wisdom reflects what the NACS wants their stores to strive for.  Check out their blog and some of the other valuable insights they're sharing.