Retail Contrarian

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.

Like or Love?

When a post is titled "Like or Love" you might think I am going to recommend that Facebook update the Like button.  It would actually be interesting if they added a Love link next to the Like link, but that would require yet another new layout I'd get lost navigating.  But I digress.

Like or Love.  Most employees like working for certain companies or managers; some even love it. I think that's fine if you're a typical retailer who competes on price, promotion, or convenience.

It's not fine if you're a retailer whose competitive advantage is your staff and the in-store experience they deliver.  Like doesn't get it done.

Think about the difference between two people telling you about a local restaurant.  One of them really Likes the restaurant.  They will tell you where it is, why they like it, and maybe recommend their favorite dish.

The person who Loves the restaurant will share the same information, but with more passion, energy, and conviction. They wouldn't be just telling you about the restaurant, they'd be selling it. The Like person would say try the shrimp, and the Love person will tell you that you HAVE to try the shrimp.

While you may or may not end up going to the restaurant, I believe the Love person gets you to make a decision on the spot.  I'm sure the person who Loves the restaurant sends a lot more new customers to the restaurant than the person who merely Likes it.

Can you really staff a store with more Love than Like people?  I don't think you have a choice if you're a specialty store that needs its people to sell with passion and conviction.

So how do you do that?

That's next week’s post.  Today, I have a homework assignment for you.  Okay, homework may bring back bad memories so let's call it a challenge.

As you go through your day today I want you to label every person you interact with in a work setting (either your work or theirs) as either a Like or a Love person.

Does the barista Like or Love their job?

Does the bank teller Like or Love their job?

Take a walk through a few of the stores at the mall or downtown and determine if the employees you meet are Love or Like associates.  Big hint: If they don't engage you, they don't Love their job.

Look at your own team and determine the ratio of Like to Love.

And finally, look in the mirror.  Is it a Live or a Love person looking back at you?

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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.

Are you getting your additional 13%?

The 2011 American Express Global Customer Service Barometer finds that 70% of American consumers are willing to spend an average of 13% more with companies they believe provide excellent customer service.

13%! That's up almost 50% over last year, when 58% of consumers said they would spend an average of 9%.  So even more people are willing to spend even more money for excellent service.

Here's the news that's either good or bad, depending on the quality of your customer experience.  Four in ten (42%) said companies are helpful but don't do anything extra to keep their business.  And one in five (22%) think companies' take their business for granted.

The problem is that most retailers think about the experience, or talk about the experience, but don't have the discipline or leadership to actually deliver an excellent experience.  It comes down to basic fundamentals delivered with every customer.

1. The customer is the only highest priority.  Everything else comes second.

2. The staff is attentive and available.

3. The customer is acknowledged/welcomed upon entering the store.

4. The staff adds value to the customer's experience without pestering.

5. The staff is passionate about helping their customers make a purchase.

6. The staff is driven to meet, and attempts to exceed, their customer's expectations.

The key for specialty stores to maximize their opportunities is to execute those last three fundamentals extremely well.  If that doesn't happen employees are either perceived by customers as annoying, or they miss sales.

Here's my challenge for you.  Rate your store/company on a scale of 1-10 for each of the seven fundamentals, with 1 being the worst and 10 being the best.  Take your lowest number and come up with two or three specific actions (things someone can see or hear) that each employee can take today to improve that fundamental.

So let me ask, are you getting that extra 13% from the 70% of customers who want that better experience? They don't give it to us....we have to earn 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.

Why adding-on may be costing you sales

Most specialty retailers whose staff is sales-focused emphasize add-ons.  When done well, this approach can slightly increase a store's average sale, but I believe it also reduces how well a staff can maximize sales opportunities.

In some stores, an add-on is an inexpensive item suggested to the customer at checkout.  In other stores, it's a suggested product that complements a product a customer is buying. Both approaches are better than just ringing up the sale without any suggestions for an additional purchase, but the best salespeople go far beyond adding-on. They SELL-ON.

Selling on is the act of continuing to show and recommend products and services the customer may want to purchase.  This may sound like semantics, but it's a completely different mindset and approach.

The most successful retail salespeople never stop the sale.  They continue to sell on until the customer says he/she is done.  They assume a customer is there to buy multiple products.

Of course the first recommendation will be for a product that naturally complements the item the customer is buying.  They'll show a wallet with a handbag, or an equipment bag with a baseball or softball bat.

Top salespeople don't stop there.  If the customer says "no" to the complementary product, they transition to additional products.  If you focus on add-ons the customer's "no" means that the sale is over and it's time to check-out.  When you focus on selling-on, "no" just means "no" to that product.

Do yourself a favor and reread that last paragraph.  I'll wait.

Ready?  

The salesperson that sells-on then moves to the next product and keeps showing and suggesting products until the customer says he/she is done.  The customer might say no two or three times, but there's also a good chance there will be another one or perhaps two "yes" responses.

Compare that to the add-on approach of one "no" and you're done.

So let me ask, why limit your sales and not give your customers the opportunity to own even more of your wonderful products?  The secret is to quit adding-on and begin selling on.

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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.

Moving towards your future success

I believe that we're always moving either toward or away from success.  This is true for companies and individuals.  Our challenge is that that success is also moving, driven forward by changes in market and industry conditions, technology, changing consumer preferences, and local and national events.

So not only do we need to make sure our strategy and tactics are moving us towards success, but we have to be moving as fast, if not faster, than the speed of change.  That was a lot easier fifteen or twenty years ago.

I see six key areas of focus in which a specialty retailer must develop and grow to create the necessary movement forward toward future success.

1. Leadership development.  It doesn't matter if you're an owner, executive, or manager - you need to be growing by leaps and bounds.  It doesn't matter if you're a single store, a national chain, or somewhere in-between - you need to be growing by leaps and bounds. This is the area that is probably receives the least attention in any size company.

2. Staff development.  Especially as it pertains to adding value to the customer's experience and maximizing the sales opportunities.  Specialty retailers who fail to do this and cannot compete on price stand a good chance of being insolvent before 2020.

3. Customer community marketing.  The specialty retailer's future success depends on the ability to emotionally connect with customers at the store and extend that connection into the customer's life.  Simply being transactional is like dragging an anchor while chasing future success.

4. Seeking out opportunity-centric vendor and product mixes.  Just a few years ago we advised retailers to select vendors and products based on their targeted customer. While that's still true, it's also vital that retailers select vendors that offer retailers the best opportunity to be successful. That means not only selecting the right companies and brands, but also removing those that don't properly support your path to success.

5. Leveraging technology. This is going to be a challenge for all retailers, but especially for smaller independents and regional chains.  As consumers, especially those under the age of 35, blur the line between online and brick and mortar retail, retailers need to integrate more technology into their customer experience. Greatest opportunities are with customer engagement tools and mobile point-of-sale. 

6. Proactively managing experience elements. We've said for years that retail is detail, and with today's finicky customers the details are the difference between winning and losing customers. From visual presentations to customer engagement, the ability to create and manage repeatable authentic experiences is essential.

Here's a quick exercise.  Score yourself on a scale of 1 to 10 in each one of these categories. 

So let me ask, how are you doing in the six areas? More important, are you moving forward fast enough?

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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.

Summer events

Summer often brings a slowdown in sales and traffic for retailers who don't depend on the seasonal customer.  As a result, stores cut back or even stop holding customer events all together.
 
It is easy to understand why, but isn't a slowdown in sales and traffic exactly the time you want to increase your sales and traffic?  I advocate doing more events over the summer, not fewer.
 
Here are some thoughts and recommendations on leveraging summer events:
 
1.  The goal of summer events is to create incremental visits.  Imagine the impact on your summer business if every customer in your community visits your store one extra time this summer.  Cha ching!
 
2. Events give customers a reason to visit the store besides the need/desire to make a purchase. Your top-notch staff can turn that visit into a sale.
 
3. Events give you an easy way to stay in contact with your customer without being overly promotional.  Promoting your summer events via email and Facebook reminds customers about how special your store and store experience is.  Your summer events may not be well attended, but promoting them may lead to a different visit over the summer.
 
4. Simplify your summer events compared to the rest of the year.  You want to do this for two reasons.  First of all, because most summer events are less productive than the rest of the year you probably want to reduce your costs.  Second, most stores run with less staff over the summer since many of the employees are taking vacations, so making your events less labor intense allows your focus to remain on the customer already in the store.
 
5. Do lots of fun mini one-day events. It can be something as simple as inviting a local Girl or Boy Scout troop in to celebrate Lemonade Shopping Days.  Most stores can do a Customer Appreciation Ice Cream Social from 12-3 and 6-9.  A baby store could hold a Stroller Wash. A hobby store can do a Remote Control Car Demo Day.  A boutique reader of ours hosted a High Heels and Highballs Shopping Night with a percentage of the sales going to charity.
 
6. Partner with other stores and companies to reduce your costs and promote the event together.  Maybe a local ice cream store will work with you on ice cream social.  Maybe the local liquor store could sponsor the daiquiri and shopping night.  A vendor could sponsor the Stroller Rodeo.
 
7. Just as with bigger events, have employees invite their regular customers to a summer event.  It doesn't matter if the customer doesn't answer the phone or if they reply to the email to say they're on vacation. The employee still connected with the customer and the customer appreciates being invited.
 
So let me ask, are you planning on increasing or reduce the number of events you're doing this summer?

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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.

Thumping the slump

Just about any store or person hits a sales slump sometime in the year. Some slumps last a day, some last a couple days, and some last an excruciating amount of time longer. Although slumps a natural part of the business cycle, it is vital to get out of one as soon as possible.
 
Here are some tips to work your way out of a slump.
 
1. Own your slump.  Don't blame the weather, economy, competitors, customers or any thing else for the slump.  Own it.  Claim it as yours.  Take full responsibility.  You can't control or change any of those external events, but if you own your slump your actions can get you out of it.
 
2. Identify the core issue.  Slumps are an effect, not the core problem. Retail slumps are caused by one or more of the following:
 
a) Lack of traffic
b) Lower conversion rate
c) Lower average ticket
d) Lower units per transaction
 
To thump the slump, rank the four core issues from most likely cause to least likely.  Most stores are quick to say lack of traffic is the issue, but that's not always the case. This is why I advise my clients to invest in traffic counters. 
 
(I didn't include product since that's rarely the issue, but if it is then it's not a slump. It's a spiral down.)
 
3. Identify three individual actions each employee will take today.  Even the best athletes in the world hit a slump, and every one of them will say they have to play their way out of it. The basketball player doesn't stop shooting, and the baseball player doesn't quit swinging the bat. We need to play through it, too.
 
At retail, that means taking high-impact ACTIONS each day to thump the slump. I like three actions per person. The actions should be based upon what you've identified as the core issue.  If traffic is the issue, then short of wearing a sandwich board outside the store one of the actions should be the staff calling x number of customers.
 
Other actions might be to show every customer a particular product, encourage customers to try something on, demonstrate a new product or technology, get a product into a customer's hands, ask a particular question, etc.  
 
You might give each person the same list of actions but I believe you'll thump the slump faster if each individual works from a personalized list. This way you can leverage each individual's strengths and improve a key challenge.
 
4. Lead the charge! It's crucial for leaders step up during slumps. Skip the speeches. Leaders need to be on the floor encouraging the team, giving them feedback, and keeping people focused on success. Leaders also need to be doing what they are asking everyone else to do.  Leaders go first.
 
It's also a great time to run a one-day contest, role-play with each employee, and/or do anything else you can to lead the team to a great day.  It's not a time to retreat to the office, point fingers, sulk, or demonstrate any other behaviors that keep the slump alive.
 
I hope you're not currently in a slump, but the next time you are you'll be ready to claim it, identify the issues, take action and lead the thumping of the slump.

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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.

Four initiatives to improve long-term results

Here are four initiatives to focus on right now for a positive impact on your long-term business results.  I've written about these before, but I also keep talking with clients and readers who aren't making positive changes in these areas.  I encourage you pick one or two and focus on it as a key initiative through the end of June. 
 
1) Increase your buyer contact capture rate.  Of course, if you're not measuring your capture rate then that's the place to start.  For the rest of you, increasing your capture rate by 5-10% will result in more repeat traffic and additional sales.  I believe aiming for anything below a 75% capture rate is usually a mistake, although your store may be higher or lower. 
 
2) A concentrated effort to transition newsletter readers to Facebook.  The other day I spoke with a retailer who has something like 2,000 newsletter subscribers and 150 Facebook followers. Be sure your "Like us on Facebook" logo is at the top and bottom of your newsletter, and try a targeted Like Us on Facebook campaign that rewards customers for Liking you. You might also consider using QR codes in the store so that customers with Smartphones can Like you right in the store. 
 
3) Measure - or increase - employee average daily sale (ADS) and units-per-transaction. It doesn't matter if you have individual, group, or even no sales goals; not measuring the productivity of every employee is a lost opportunity.  So is not having a sales goal, but I'll save that for another day.
 
As I work with specialty retailers I often see large productivity gaps between employees, and if an owner or manager hasn't measured that gap it is impossible to determine the most productive place to focus time and effort.
 
If you do measure and regularly use individual ADS and UPT data, consider an initiative to raise the company average by 5 - 10%.   Use these numbers as a way to drive a strategic objective and not just to review past performance.
 
4) Set specific targets for any under-performing employee to achieve or else be asked to leave.  I recently came across a great metaphor that applies here. Under-performing employees are like fish. If you pull the fish out of the refrigerator and it doesn't smell so good, you don't put it back in the refrigerator, come back and check a few days later to see if things have gotten any better.  It never gets better! Or at least that's the case with the fish, and rarely does the employee improve without your assistance.
 
Either get the employee to where you need him/her to be, or promote him/her to customer. Probably 95% of our employees do a good or great job, but it's that other 5% that is leaving money on the table and losing customers to competitors.  Time to set the bar. Either they clear it or they don't.
 
So let me ask, which initiative will you execute over the next eight weeks?

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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 him at 866-535-6331 to discuss improving your company's customer experience and results.

Failing forward

A while ago a colleague and I worked together on what we both believed was a great opportunity. After a lot of hard work, especially on my colleague's part, the project turned out to be a bust. Failure is never fun.  As matter of fact, it stinks.  And while I was disappointed with the outcome I'm also glad I had the opportunity to fail.

Does that sound strange?  Not if I see that as a result of this project I got to learn from both my colleague and a wonderful woman who works with him.  I got the chance to refine some of the experience concepts I've been working with for years, and as a result my work will be better than before. Yes, our project failed but I know that in the long run we'll both benefit. Call it failing forward.

Some failure is actually good because it means you're trying new things. If you never fail it means you're either stuck doing the same old thing, which is never good for business, or your name is Midas.

Failures are only good if you learn from them and adapt your business going forward. Unfortunately, so many people fail backwards. After trying something new and failing they quit trying new things that might improve their business.  As a result, they lose ground in their industry and their market.

I've seen retailers institute a new way to engage and sell customers only to fall back on their old ways if the new initiative doesn't create immediate results.  Those retailers would be much better off if they gave the new way a fair chance.  If it doesn't work, fail forward.  Look for how to adjust and improve the approach.

When an event doesn't result in the expected traffic or sales some retailers take that to mean that events don't work for them.  Maybe that particular event didn't work but it doesn't mean they should fail backwards and quit doing events altogether. Try failing forward and brainstorm three to five things to do differently next time.

It's absolutely true that my colleague and I believed that our project was worthwhile.  It's also absolutely true that I would have appreciated earning what we had hoped on the project, but now I'm looking forward to earning on what I learned by failing forward.  And the only way to get an ROI on failing forward is to learn from it and take action.

So let me ask, are you failing forward or backwards? Even worse, are you not failing at all?

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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 him at 866-535-6331 to discuss improving your company's customer experience and results.

Make the most of your buying trips

This Daily Take Five is written by DEG partner Nancy Proman.
 
No matter what type of retail business you operate, going to market to purchase new merchandise is a vital part of ensuring a fresh and saleable inventory.  Since going to market is both necessary and costly, it's important to put time and thought into planning a successful buying trip. So, here are a few tips to help you with the process:
 
1. Pre-market trip intelligence
Several weeks before your trip, set aside time to read your industry's trade publications to learn about latest trends, new vendors, and ideas that will spark your vision for the upcoming season.  Make appointments with both current and new vendors so that your time will be used most effectively at the market.  If possible, group appointments by category of merchandise so you can evaluate all similar items.
 
Use your point-of-sale system's ability to print specialized reports.  This gives you the information you need to analyze the current performance of each of your vendors. Evaluate what is selling, style by style, and what percent of the merchandise was sold at regular price vs. marked down price.  Note the gross margin by vendor, and also compare this year's (or season's) sales with previous seasons to get a better picture of each manufacturer's profitability for your business.  
 
Additionally, compile a list of current open orders.  Don't accept merchandise past delivery completion dates without some concession from the vendor (discounted invoice, free shipping, etc) and only if you believe that the merchandise is still saleable.  This is especially important with more seasonal products.
 
Armed with this information, it's time to create a buying plan.  Going to market with dollars designated by product category will help you make sound buying decisions. The more specific you are now, the easier the task when you finally sit down to write the orders. 
 
2. Using your market time wisely
Once at market, walk the halls of the entire show, not just that section of it with your particular product category.  Why look at product categories you're not buying?  It's a great way to get a sense of universal trends you can then look for in your specific niche.  Visit all of your vendors before you write any orders - this way, you can evaluate everything fairly.  The vendors might not be happy with this approach, but remember, this is about your business, not the commissions of the sales representatives!
 
If allowed, take pictures of the items you might be interested in purchasing.  There are two main benefits to this. When you do finally write your orders, having a picture will remind you of exactly what you are buying.  After you make your purchases, create a photo album to show your staff and customers what merchandise will be available at your store in the coming months. You can also post it on Facebook to get your customers excited about your buy.
 
3. Making the buy
Once you have scoured the market and taken detailed notes and pictures, you are ready to sit down and create your stock assortments.  When I was buying for my stores, I found this task easiest when I took one classification at a time. Since my buying plan provided a dollar amount by category, I knew how much money I could spend and still have my stores' inventories balanced.  
 
When all categories are complete, group your photos and visualize how your store will look once the merchandise is in stock.  This is also a great time to start thinking how you will be displaying your new inventory as well as your marketing and promotional efforts.
 
Buying trips are both exhausting and exciting; the success of your store depends on the decisions you make every time you go to market.  Be prepared, make the most of your time, and you will undoubtedly reap the benefits of your hard work
 
- Nancy Proman

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Dynamic Experiences Group, LLC is a proven retail and customer experience consulting firm that helps companies to improve their on-floor and management performance. Vist our website or call us at 866-535-6331 to discuss improving your company's customer experience and results.