Retail Contrarian

The Art of Greeting: Guest, Friend, and Customer

It's not hard to notice that so many store staffs rarely acknowledge customers until they make a purchase.  It's like you're invisible or unimportant until you decide to spend your money.

There are also store staffs that are clearly following a company policy of greeting every customer are as about as friendly as a dark alley at 3:00 a.m.  There's a quick acknowledgement and the obvious hope that you don't want to talk to them.

What is the right way to greet and engage customers?  Some people say you should do it within the first ten seconds a customer is in the store, others say within a minute, and clearly many retailers seem to think you should let the customer be the one to engage the employees.

First and foremost, it is extremely important to welcome each customer as he/she enters your store.  Not greet, welcome.  When you welcome customers you acknowledge that they are your priority; it is the first step in creating a great experience that will lead to a sale.

You want to engage your customer and treat them like an old (or new) friend. Inevitably, when I bring this up in a seminar or training I hear that "customers want to be left alone" or "they say they're just looking no matter what I say or do."

That's true.  Sometimes customers want to be left alone and sometimes they say they're just looking, but most of the time they do that because the salespeople aren't adding value to their experience. They're following a script, or doing something because they've been told to and not because they want to.  Customers know when a salesperson isn't being authentic.

Don't try to "help" your customer.  Don't get in his face and ask if he has any questions. Treat each and every customer like they're special.  Show them you're happy to see them in your store and that you're going to exceed their expectations.  Be an ambassador for your store.

If you welcome your customers and engage them like an old or new friend, more than 85% will respond in a positive manner (give or take a few percentage points based on where you live). So what if 15% of the people blow you off?  Don't look at it like 15% of your customers didn't let you get to know them, look at it like 85% of the people who came into your store are now your friends!  And friends help friends make purchases.

Once you have welcomed your customer, you can learn more about him/her and how the products you sell can add value to his/her life. The best customer experiences are when customers walk out with purchase they're happy they made.

That's why every single person who comes in your door should be welcomed like a guest, treated like a friend, and shown products so they become YOUR customer. That's what makes a specialty store like yours special.  Forget customer service, it's all about the experience!

Building Advocacy Before the Purchase

Most companies and experts look at the relationship businesses have with their customers in three steps with seven stages. Known as the Customer Relationship Lifecycle. (CRL) the three steps and seven stages are:

Pre-Purchase
1. Awareness
2. Knowledge
3. Consideration

Purchase
4. Selection or trial

Post-Purchase
5. Satisfaction
6. Loyalty
7. Advocacy

Too bad so many companies take this approach because it has a fundamental flaw. What's wrong with it? Advocacy should be in the pre-purchase step.  Most companies think that only buyers can be advocates, but the fact is that some of your best advocates may not have made a purchase yet - and maybe they never will.

Smart retailers focus on building advocacy during the pre-purchase step for three reasons:

1. To potentially turn non-buyers into advocates.
2. To lead more buyers into becoming advocates.
3. To use the advocacy elements to influence the consideration stage and improve the purchase potential.

To focus on creating advocates in the pre-purchase stages, consider the following:

1. Teach your employees that some non-buyers actually create a lot more revenue than the average customer spends. As a matter of fact, some studies have shown that in some businesses the highest spending customers are not the most effective advocates.  This is why we like to teach all retail employees to never label a customer as "just a looker."

2. Make it a company goal to deliver an amazing and delightful experience to every single customer. I love the retailer who told me that her goal is to have every customer who leaves her store feels better than when they came in.

How the experience is delivered varies from retailer to retailer but what doesn't vary is that retailers who deliver a superior experience have identified the steps to delivering the experience. It's usually a combination of activities including a warm welcome, a drink or some other gesture, and may include a surprise that delights the customer. The easiest way to get customers to advocate your store is to give them something to tell others about. What happens in your store that your customer will most likely tell a friend or family member about?

3. Capture contact information for all visitors.  Retailers who only capture the contact information at the point of sale are losing revenue opportunities and potential advocacy by non-buyers. Give the customer a reason to give you the contact information in the pre-purchase phase and you'll increase the number of post-purchase people.

So let me ask, is building advocacy in your pre or post-purchase stage?

From Stranger to Superhero to Friend

While wandering in and out of stores in New Orleans last week I became aware of the strikingly different attitudes retail employees present to customers.  In just one hour I was treated so differently I started to develop a personality complex.

Some retail associates treated me like a complete stranger, doing every thing possible to avoid eye contact.  It was almost like we were meeting in some dark alley, not a well-lit mall surrounded by people.  At least when our eyes did (accidentally) meet they smiled and then went about their business.  I followed their lead, left their store and went about my business, too.

Other store employees treated me like a superhero - if the superhero was Invisible Man.  I'm not complaining because at least they weren't avoiding me and I could see they were extremely busy.  Busy playing solitaire, updating Facebook or checking phone messages.  I didn't want to interrupt them so I disappeared from the store, which is easy to do when you're Invisible Man.

I'm happy to say that some associates treated me like a visitor.  They acknowledged me when I walked in to the store and politely offered their assistance if I needed any.  I appreciated their attention but because I didn't need anything I didn't buy anything.  It was a nice visit, though.

In two stores it was much different.  I wasn't a stranger, I wasn't Invisible Man, and I wasn't a visitor. Instead, I was a new friend.  In both of these stores I felt like those salespeople were glad to see me. They were happy, smiling, and inquisitive. As friends do, they asked where I had been, where I was from, and if I was enjoying New Orleans.  Never once did they ask to help me.

One woman was so friendly she wanted to know if I was visiting with family or not. When I told her that I was traveling alone, on business, she inquired about my children. And being such a good friend, she pointed out some nice Mardi Gras beads she thought my children would like.  I have no idea how she knew my daughter's favorite colors are red and blue, but then again she was my new friend.

She was also kind enough to sell me some of those famous New Orleans pralines, and she suggested a couple of other things that I declined since I didn't have much room in my luggage. While it was only about a $15 sale, it was a sale that my new friend created. And if she treated every customer like a new friend I can't imagine how much those $15 sales added up to.

I'm sure you don't treat your customers like a stranger or Invisible Man/Woman.  So let me ask, do you treat your customers like a visitor or a new friend?  I can personally vouch for the effectiveness of making friends.

Every Customer a Sale

There are multiple definitions of the word "sell."  In our Daily and Weekly newsletters we usually focus on the transfer of goods and services in exchange for money and to persuade or induce someone to buy something.  Another definition of sell is also important to our success and that is to cause or persuade to accept; convince.

Good retail associates sell much more than just products.  They sell their customers on talking to them, they sell them on trying something out or on, and they even sell them on coming back.  Some associates don't sell at all; they just hope, ask, or wait for the customer to decide to do something themselves.

For some reason, many retail associates have a negative view of selling.  They equate "selling" with being pushy and obnoxious.  Naturally, being pushy and obnoxious is not going to work.  Selling means, as it says in the definition, to "convince" or "persuade." The best associates do that by smiling, by taking a genuine interest in their customers, by being passionate about the products they sell, and by believing that the most satisfied customers are those that make a purchase.

So let me ask:

Do you persuade (sell) customers to engage in conversation with you or do you just hope they'll start talking to you?

Do you convince (sell) customers to try out a product or try something on, or do you wait for the customer to do it him/herself?

Do you persuade (sell) customers on the value of sharing their contact information, or do you just ask for it?

Do you influence (sell) customers on coming back for a future visit, or do you just hope they do?

Do you induce (sell) a customer to have their friends and family come visit your store, or do you just hope they'll put in a good word for you?

Do you persuade (sell) your customers into buying products they like and are right for them, or do you just show them something and hope they decide to buy it?

Selling requires action.  The exact actions depend on the relationship between you and your customer.  "Hope" and "wish" are feelings, not actions.

Actions create happy customers.  Actions create sales.  Are you selling every customer?

Podcast, Article, and New Program Oh My

1. Listen to this Building a Smarter Planet podcast from IBM. "Is the Consumer King?"  features yours truly and others looking at how retailers can respond to the current economic pressures and the new breed of empowered consumers.

2. Garden Centers and  retailers who sell collectibles might enjoy this article "Growing a Collectibles Business" from Green Profit magazine.

3. I am offering an Every Day Success program for multi-unit managers.  This is a great opportunity for senior level managers of small chains as well as district/ area managers of any size chain. 

12 Weeks to Leading Every Day Success
This program is designed for the owners and executives of independent retailers to jump-start their business and ensure Every Day Success in 2009. The goal of this program is to create an extensive amount of change in a short period of time.  Only retailers who are open-minded and willing to do the required work should apply.

This program is a combination of one-on-one coaching, group teleconferences, partnering with another owner, and an intense amount of self-evaluation and development.

At the end of 12 weeks you will have:

• Removed the personal roadblocks that kept you from being an Every Day Success leader.

• Engaged every employee to ensure they are contributing to the store's every day success.

• Evaluated and improved the in-store sales experience to maximize every sales opportunity.

• Started on a path to create Every Day Success in 2009.

The first program begins Monday January 12th, 2009. Cost is $750.

Reserve your space now or contact me to find out if this program is right for you.  Call now because space is limited!

Shout! - A Little Bit Better Now

Welcome to a politics free Weekly Retail Experience.

Remember the Isley Brothers song Shout?  One of my favorite parts of that song is near the end when they're singing very quietly:

(Shout) a little bit softer now
(Shout) a little bit softer now
(Shout) a little bit softer now
(Shout) a little bit softer now

Replace the word "softer" with "better" and you have a formula for success.

Some of the best retailers I know have a knack for making things "a little bit better now." Years ago I worked for a manager who had this philosophy.  No matter what you did or what you brought to him he would challenge you by asking, "How can you make it better?"  Since you knew you'd be asked that you would try to figure out ways to improve whatever the situation was before you went to him.  It was a brilliant way to keep making the store and the employees better.

You and your team can do the same thing.  No matter what you're doing, ask yourself how you can make it a little bit better now.  This applies to displays, customer experiences, signage, employee coaching, and just about anything else.

It's a good thing to do on slower days to engage the staff and improve the store.  Look at a section of the store and ask, "How do we make this a little bit better now?"  I like the now part because it helps us focus on improvements that have an immediate impact and are usually the least expensive to implement.

On busy days keep asking yourself, "How can I work with this customer a little bit better now?"  You'll be amazed by how you'll be able to increase your sales and how much fun you'll have. The best part is that customers start feeling. . . you got it. . . a little bit better now.  Then they go tell all of their friends and family about their fabulous experience and the buzz about the store experience gets. . .  Hold on now. . . wait a minute. . . .that buzz gets a little bit louder now.

And that makes you wanna throw your hands in the air and SHOUT!

            - Doug

The Rewards of Retail

As specialty retailers we're in the business of people. Sure, we sell products to people, but ultimately we're in the business of connecting with people to match them up with the right products. When done well we're rewarded with a sale. When done really well we're rewarded with the opportunity to make a difference in someone's life, which inevitably makes a difference in our own lives.

With today being the start of National Breast Cancer Awareness Month I am especially pleased to share this story of some retail employees who made a difference. Below you will find a letter received by Craig and Angela Pettit, owners of a chain of Brighton licensee stores. The customer shares in her own words how the employees in the Temecula, California Brighton store made a difference in her life when she most needed it.

Enjoy. - Doug

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

Letter to Brighton Retail

I would like to tell you about some ladies at your store in Temecula, Ca.
I have breast cancer and am having bi-lat mast surgery on Tuesday, September 23rd.

On Sat the 20th, my daughter (30) and Granddaughter (7) and I were out for a beauty day before the surgery. We had our hair done, nails painted and we wanted to get matching necklaces. I want you to understand the state of mind we were in before we entered your store.

My daughter and I had just done my pre-op the day before. <Retailer with name removed> carries the contract for my insurance for the post-op camisoles that have to be worn right after surgery. We had gone there to be fitted and pick them up. It was a terrible experience!! The ladies made me feel embarrassed and for the first time since I had been diagnosed. . . I felt diseased!

So needless to say I was a little shy about being around people right then. When we went into the Temecula store . . . of course, we were asked if we could be helped. We said we were just looking.

As we got to the front of the store we saw the sign for the 2008 Breast Cancer bracelet. My daughter and I were looking at each other and one of the ladies asked if we would like to pre order one because they sell so fast. PJ, my daughter, asked when would they be in and was told Thursday.

One of the ladies then asked if we've been touched by or known anyone who had breast cancer. PJ looked over at me and then told her I was having surgery on Tuesday. I am in a wheelchair and because of what had just happened the day before I had turned myself away from the counter because I didn't want to see them look away from me or have them be embarrassed.

Those wonderful, beautiful, caring ladies stopped what they were doing and surrounded me. They bent down to my level and every one of them touched me, on my arm or shoulders, they let me know they were there. They looked me in the eye and asked questions and told me everything would be ok. We finished our shopping, found just the necklaces we needed and wore them out of the store.

As we were leaving those angels in Brighton told us bye, using our names, and that they would be thinking of us. My daughter and I sat in the car and cried. This time it was tears of joy and relief. It was like we weren't alone. There were women out there who were fighting with us.

I have sent these ladies a Thank You card but I wanted you to know, if you didn't already, that you have amazing women working for you. The only thing I regret is that I didn't get their names but I know God knew who I was talking about when I asked Him to bless them!

Signed,

<name withheld>

I’ll say it again. When done really well we're rewarded with the opportunity to make a difference in someone's life, which inevitably makes a difference in our own lives. Go make a difference!

Verrill Farm - More Than a Farm Stand

This is a guest post from DEG Vice-President Carin Casey.

We’re very lucky to live in an area where there are still farms that grow fruits and vegetables to sell locally.  There are several good farm stands within just a couple of miles of my house.  So why, for the last twelve years or so, have I driven past all of them to shop at Verrill Farm in Concord, Massachusetts?  And why am I one of the many people in and around Concord who are so saddened by the news that the VerrillFarm store was destroyed by an electrical fire last Saturday?  Nobody was hurt, they’ve got insurance, it’s only a farm stand, kitchen and bakery, for Pete’s sake.

But Verrill Farm isn’t just a farm stand.  It’s a place where knowledgeable people will gladly tell their customers about the differences between more varieties of tomatoes than you probably knew existed.  They’ll offer recipe suggestions, too.  So will the other customers as you strike up conversations over three types of corn or four sorts of eggplant.  It’s where small children get excited about trying new foods.  What finicky four-year-old can resist a tomato called “Mr. Stripy?”  Or a red carrot or a blue potato?  Cooking classes for children as well as adults, festivals, hayrides, a kitchen that makes delicious prepared foods and some of the best pie you’ll ever have, Verrrill Farm is much more than just a place to pick up some green beans for dinner.

They’ll get excited about a neat bug, too.  Last year a friend and I were shopping at Verrill with our kids.  The kids wandered into the greenhouse where their attention was completely (and somewhat loudly) captured by a spider and its beautiful and intricate web.  The employee who was watering plants in the greenhouse stopped what she was doing and engaged the girls in conversation about spiders and webs.  Then she climbed up, carefully gathered up the spider and held it so the kids could get a close-up look before she brought it outside and let it go.   Personally, I’m not sorry I missed the up close and personal spider meeting but it was a memorable moment for the kids.  A memorable experience that had nothing to do with making a big sale.

The fire was Saturday.  On Monday what was left of the building was being torn down, a sad sight.  But New England farmers don’t give up easily.  As ruins were being cleared a temporary stand was being set up nearby.  Corn and tomatoes are still being harvested.  The Verrill family says they will rebuild.  A building may have been lost but the building was not what made Verrill Farm special.  What’s really important – people who don’t just grow amazing food or bake delicious pies but share with customers their pride and passion in the work that they do – remains.  So thanks, Verrill family, for your commitment to reopening and rebuilding.   Your customers, this family included, will be there.

A Customer Experience List for the Store Staff

Here are twenty signs you're focused on delivering a great retail experience.

1. Rather than greet customers who walk into the story you actually meet them at the front. That's what friends are for right?

2. You personally see it as a challenge when a customer says, "I'm just looking."

3. You're bummed when the customer's "just looking" really means leave me alone. You know most people say it as a natural reaction to other store's bad service.

4. People comment how you're always in a good mood. You and I know better, but we'll keep that our little secret.

5. Customers ask for you by name. Even better, you know theirs when they do.

6. Customers will wait for you to come in to buy something even if you're not on individual commission. While you've told them they don't have to wait for you, you've also told them how much you appreciate the gesture. By the way, never dismiss the customer for doing so.

7. Even on the busiest days you pretty much know which customer has been helped and by which employee.

8. When the store is really busy you always work with multiple customers at once. More often than not the customers who didn't know each other end up buying together like friends do.

9. You always assume the customer will be making a purchase, and you're actually taken back a bit when they don't. Of course you would never show that to the customer. 

10. Since you get to know your customers so well when they say they'll be back to purchase something you know if that's really the case or not.

11. You're surprised when a customer returns a product you sold since you take such pride in matching customers up with the right product.

12. You know that an apology without some type of action is unlikely to make things better for the customer.

13. You enjoy the challenge of an upset customer. Sure most people on the team would rather chew glass than deal with that customer walking in that looks loaded for bear, but for some strange reason you actually enjoy it.

14. You work with a customer the same way if the president of the company is watching or you're alone on the floor.

15. Some people might think you're really competitive, but really you just love to win every single sales contest. Oh wait, you are competitive.

16. You're happy to jump in and help your colleague make a sale, but you'd never considering interrupting them unless it was an emergency.

17. You welcome feedback from your manager and colleague since you're always out to improve.

18. You're always checking to see how your sales, ADS, and UPTs are compared to your colleagues.

19. Nothing makes you happier than to see your customer happy.

20. Even if you don't do all of these things every single time, you keep striving to do so.

21. You go above and beyond for your customer whenever you can.

As a retailer I appreciate what you do. As a consumer, I love what you do. Thank you.

                   - Doug & Matt

A Liberal Return Policy That's Worked for Over 60 Years

Over the summer one of my favorite shopping experiences was at The Vermont Country Store in Weston, Vermont. The Vermont Country Store describes themselves as purveyors of the practical and hard-to-find.  I found it to be a fun, hands-on and engaging store with something different at every turn.  If you've ever read their catalogue you know what I mean.  Where else would you find customers with maple butter, a rubber Mr. Bill doll, beautiful placemats, a corn slitter, penny candy and an old-fashioned flannel nightshirt all in one shopping basket?

But what stood out even more was The Vermont Country Store's 100% customer satisfaction guarantee. If for any reason a customer is dissatisfied, they will exchange the product or refund the money with no hassles or fuss.  It doesn't matter how long ago the product was purchased or even the condition of the product itself.  If the customer is unhappy, they'll fix it.  As they say on their website, this is the way they've been doing business since 1946!

When I talk to retailers about leveraging a more liberal return and exchange policy they often tell me they can't afford to do so.  I suspect that if a liberal return policy wasn't profitable The Vermont Country Store wouldn't have done it for the last 62 years.

As specialty retailers, we are in the business of customers.  To be successful we need to ensure that our policies, procedures, and most of all our people meet and exceed our customer's expectations.  When we do that we are rewarded with a lifetime of business.

When we fall short of those expectations we may still get a transaction or two from that shopper, but they're not our customers. The difference between the two makes a huge difference to the bottom line.

So let me ask, are your policies, procedures, and people customer focused?  If not, what changes do you need to make in order to make them so?

And thanks to the Vermont Country Store for a great experience and proving that a liberal return policy is smart business.