Retail Contrarian

Bite the Bullet and Move On

In early March when the rest of the East Coast was getting slammed with snow, we here in the Boston area were pretty "lucky" with only heavy rains and wind.  You have to live in the Northeast to appreciate near hurricane force winds and torrential downpours. (Note to Mother Nature: Please be kind and not make me the cause of a major snowstorm.)
 
As a result of the rain and melting snow my basement sump pump was running non-stop. Well, except for when it wasn't.  If you've never owned a sump pump, that's a very bad thing.
 
Since the sump pump was only a couple of years old I figured it just needed to be adjusted.  It would work for a while but then I would need to mess with it again.  This went on for a few weeks.
 
Then one day I went down to the basement and discovered that the pump had stopped altogether.  Luckily I caught it before there was too much flooding.  Twenty minutes and a hundred dollars later I had a brand new sump pump and the problem was solved.
 
I hate to admit how much time and energy I wasted on this pump.  Even worse, I hadn't thought through the real cost of this pump failing.  I think I was more focused on the fact that it was only two years old and should not have failed.
 
Sometimes you just have to bite the bullet and move on.
 
Minutes after replacing the pump an owner in my mentor program called to discuss a problem employee. (You can see where this is going, can't you?) This is not the first time we have discussed this employee.  The owner really wants the person to succeed but she's spending way too much time and energy on this person.
 
Sometimes you just have to bite the bullet and move on.
 
This advice doesn't apply only to people.  I know retailers who hang on to a product line, determined to make it work, when what they really need to do is just dump it.  What's the true cost of tying up cash that could be used for products that sell?
 
The same goes for an underperforming location you keep trying and trying to turn around. What if you could channel that time and energy into growing your profitable stores?
 
What about that "good" customer who no matter what you do returns half his purchases and sucks the life out of the staff?
 
Sometimes you just have to bite the bullet and move on.
 
This also applies to what you're not doing, or making the necessary changes to your business.  Sometimes you just have to bite the bullet and invest in some additional help, or maybe a retail and customer experience expert who can also replace sump pumps. (Yes, shameless plug but I couldn't resist.)
 
So let me ask, are there any bullets you need to bite and then move on?  Today's a great day to start anew.

Isn't That Special?

Do you remember what television character was known for asking, "Well, isn't that special?" This same character would also say, "We like ourselves, don't we?"  Do you remember?
 
If you answered Church Lady, you are correct.  Church Lady was created and played by Dana Carvey on Saturday Night Live.  Carvey also did great impersonations of Ross Perot and George H. W. Bush - but I digress.
 
Little did we know that Church Lady was giving specialty retailers great advice when she asked, "Isn't that special?"  In this day and age, specialty retailers who aren't special will struggle to find their place in the market.
 
Don't underestimate how challenging it is to be special.  I think it is extremely difficult to be special.  Years ago (pre-Internet) it was pretty easy for a retailer to be special with either a location or product selection.  Not today.  Location and products have both been commoditized.
 
Don't get me wrong; presenting a unique collection of products can make you special. It's just not nearly as easy as it once was, and since very few retailers have any sort of exclusivity it's vital to make the store experience itself special, too.
 
How products are displayed makes them special.  How you make the customer feel in your store makes your store special.  Heck, making your customer feel special is what ultimately makes the whole experience special.  I know, I'm out of control with special, but that's what it takes. That's why we're called SPECIALty retailers.
 
So you have to ask yourself, are you special enough?  During the past week was your store experience truly special?  Just as important, are you communicating that point of SPECIALty?
 
Here's a quick example. Last week many stores promoted jewelry, specifically charm bracelets.  I'm sure your products were special, but was that special enough to get customers into the store?  Some of those stores promoted a men's night.  Is that special enough?  A few of those stores promoted their ability to create the perfect personalized charm bracelet.  Now that's special.
 
As you complete your next e-newsletter ask yourself, "Well, isn't that special?"  After you're just about finished merchandising a part of your store stop and ask yourself, "Well, isn't that special?" Most important of all, as your customers leave your store are they saying to themselves, "Well, isn't that special?"
 
When the answer is "yes" the results will be, too.
 
            
    
So let me ask, are you special enough?


-  Doug Fleener and Brian Sullivan

Your 2009 Difference - Part Two

Last week I described the top five things the retailers I've worked and engaged with in 2009 learned and developed throughout the year.  I hope you invested the time to identify your top five so that you can leverage them in 2010 and beyond.
 
But as I noted last week, it's just as important to see where you fell short, maybe missed an opportunity, or didn't take action when you should have or could have.  I know a few people won't look at these shortcomings because it makes feel like they failed.
 
I think it's only a failure when you don't address areas that need improved.  Call it a delayed reaction!  It's all perspective isn't it?
 
So here are the top five things the retailers I've been engaged with this year need to improve on as they move into 2010.
 
1. Be more strategic in how they run their businesses.  While this is true for both high-performing and struggling retailers, it's vital for those stores who aren't doing as well as they hoped.  I still see too many companies that are in a slow death spiral and no one is working a well-defined plan to reverse it.
 
2. Address a major problem that is having a negative on the company and results.  Most of the time this is a person, and sometimes it's a family member.  Problems rarely go away on their own, no matter how much you try to avoid them or sweep them under the rug.  It's not fun to deal with people issues but the pain of not dealing with them is a whole lot worse.
 
3. Become more aggressive in capturing and using customer contact information.  Maybe obsessive is a better word.  If you're not obsessive about building and adding to a customer database, you're not maximizing your opportunities and leaving money on the table.
 
4. Hold people more accountable.  Way too many managers and owners let employees opt out of what are supposedly required activities and behaviors.  If there's no accountability and consequences then those behaviors and actions are not required, they're optional.  Rewarding and recognizing people is also important to maintaining high expectations and high performance.
 
5. Continue to challenge the staff to become even better.  At the end of every month (or quarter) you should be able to review with every employee how he/she has grown and developed.  A lot of people do this with under-performing employees, but they don't always push the good or great employees to become even better.  It's amazing how great people can be if leaders encourage and lead them.
 
What about you?  What can you learn from in 2009 and do better in 2010?  Again, I encourage you to write them down and share them with someone else.  Even more important, determine what one or two actions you'll take on each one to ensure you create the success you deserve.
 
So let me ask, as you close the books on 2009 are you ready to parlay that into an extraordinary 2010?

Your 2009 Difference - Part One

Everywhere you turn this week you'll see stories about 2009. The "remember when" of top news stories, who died, who was arrested, politics, and just about any other topic from Tiger Woods to the economy.
 
Personally, I don't read or watch these stories since I've already lived through it once. Why spend time on something when you already know the outcome?
 
What's more important is to review your own story of 2009.  That's the one that can make a positive difference in 2010.
 
Most people learn and experience more in a year than they ever realize.  And therein lies the opportunity.  By taking an inventory of how you developed as a leader, manager, employee, parent, spouse, and friend, you're able to see how you have grown in those areas.
 
Just as important is seeing how you fell short, missed an opportunity, or didn't take action when you should or could have.  Many people can't do this because they internalize it as failing, but it's only failure when you don't try to learn from it.  It's better to see whatever it is as a shortcoming that can be corrected and leveraged in the coming year.
 
I have worked with and engaged with a number of retailers over the last year.  If I had to collectively sum them all up, these are the top five things these individuals learned and developed in 2009.
 
1. To create high performance you must have high expectations.  As simple as this sounds, most people have high aspirations with little expectations.
 
2. Fix or remove under-performers.  I can't tell you the number of times a client or reader told me they wished they had fixed or removed a problem employee sooner.  No one ever told me they took action too quickly.
 
3. You have to be responsible for your own traffic.  This was the year that a lot of specialty retailers figured out that hoping for walk-in traffic is not an effective strategy. Retailers who worked hard this year in communicating with and engaging this customer base on a regular basis were rewarded this past holiday.
 
4. Daily success comes from developing and motivating employees every day.  Not a week or monthly meeting, not a memo or an email, but leaders leading at every opportunity. Not surprisingly, these are the staffs that performed at the highest level.
 
5. It's always, always, about the customer.  This isn't something these retailers learned this year - it's something they've always known and have continued to put into practice in spite of the economy and other challenges.
 
How about you? What are the top five things you learned and experienced over the last 364 days?  Invest in yourself and write them down.  Even better, write them down and share them with someone else. (I'd love to hear them.) Celebrate your list as you carry these lessons and personal growth in to 2010.
 
Next week we'll look at the areas that retailers fell short, and what they can do to correct and benefit from in the year ahead.

Start a Customer Service War!

Walmart, Target, and Amazon.com have spent the last few weeks locked in an ever-escalating price war. Although consumers may be short-term winners in the price war, the long-term cost of selling products below cost will be high – impacting other retailers, authors, studios, and other companies associated with the products.

Forget price wars: I want to see a Customer Service war.  I want to see companies try to one-up each other over who can deliver the best service.  Instead of dropping prices by a penny, add another something you do for the customer.

Of course the big discounters will never do this because they don't really focus on service.  It's not their competitive advantage.  But it is the competitive advantage for specialty and independent stores. Shouldn't they be starting a Customer Service war?  As a matter of fact, shouldn't you be starting one every day?

To win the war you obviously have to be better and more consistent than the competition. Here are some things you might be able to declare:

• We warmly welcome every customer. We're happy you've come to our store and it shows.
• We treat customers like old friends.  Many of you are.
• We call customers by name and are happy when they know ours.
• We make our customers comfortable by sometimes serving drinks and snacks.
• We understand our customers needs and wants before we recommend products.
• We provide a great experience for the entire family, including the children. 
• We offer unique and interesting products at competitive prices.
• All of our employees are product experts.  More importantly, our employees are customer experts. You won't find a better staff anywhere.
• Our store is fun. One thing you'll always find in stock is a smile.
• We make shopping easy. The same holds true for returns and exchanges.
• We offer special touches that our competition doesn't.  This might include free seminars, free gift-wrapping, special delivery, charitable events, etc.
• Our checkout process is fast and efficient, but more important it's enjoyable.
• We're thankful for our customers and we prove it with thank you cards, follow-up calls, and invitations to future events.
• No matter how busy the store, our employees are able to work with multiple customers and still give individual service.  It's an art and we're good at it.
• We understand that we're not going to be a customer's only retailer but we'll do whatever it takes to be their favorite retailer.

I say let the big box stores duke it out over who can sell the farthest below cost.  That's a war that none of us can ever win and unless you're Walmart, Target or Amazon you'll be a big loser if you try.

Win the Customer Service war.  That's a war worth fighting.

So let me ask, would you win the Customer Service war in your area?  Isn't it time you declare war?

Doug

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Dynamic Experiences Group, LLC helps retailers and other companies improve their on-floor performance.

There are four ways we do that:

1. Work with organizations to deliver more engaging and profitable customer experiences.
2. Help managers and owners to become better leaders.
3. Coach owners and executives to improve their companies.
4. Present engaging and high-energy high-impact programs and keynotes to educate and motivate audiences.

Contact us to learn how we can help you transform your business or meetings.

The Holiday Season - It's On!

While Black Friday, the official start to the holiday may still be over two weeks away, the reality is that the holidays have already begun. Or as they say in the Southwest airline's commercial - It's on!
 
I know many people are fundamentally opposed to acknowledging the holiday season before Thanksgiving.   A friend of mine refuses to even discuss the holidays in his store before Thanksgiving.  I believe this has hurt him in the past and I think that if he keeps it up it will hurt him even more this year. 
 
It's on.  Are you?
 
Consumers know that Black Friday will offer incredible deals.  They also know that retailers are likely to have less inventory this holiday than previously.  We're already hearing customers asking if something will be in stock this holiday.  Scarcity could be as big a motivator as price this year.
 
My recommendation is to approach every customer today the same way you will on the day after Thanksgiving.  Most retailers won't be thinking that way; that's why you're more successful than they are.  Let them wait another two weeks while you maximize your early November.

Here are five ways to profit from treating every day like it's Black Friday:
 
1. Assume the customer is holiday shopping.  Many customers won't be but studies show that over half of all consumers start their holiday shopping before Thanksgiving.  Many started last year December 26.  Your own assumptions have the biggest impact on your early November sales.
 
2. Suggest the customer do their holiday shopping while they (and you) have time to work together one-on-one.  Isn't it more relaxing to do your holiday shopping when the crowds are minimal and the pace is slower?  You can even offer to hum Christmas songs if that helps get them in the mood.  I'm kidding.  Or not.
 
3. Ask who else is on their shopping list. Just by getting the customer to mentally go through their holiday list you're able to create additional opportunities. This is a very simple and effective action that not enough retailers do.

4. Use scarcity to create urgency.  As noted above, customers know that if they wait too long to make their purchase they may not find what they want or need.  Don't use it as a scare tactic, but there's no reason not to mention it since it's probably the case.
 
5. Reward the customer for purchasing now.  For those in a position to do so, offering a gift with purchase or some other reward for buying early is a great way to encourage customers to start their holiday shopping early.  At the very least, offer to wrap the present at no charge.
 
The holiday season is on. Are you?

Is It Time to Upgrade?

A couple of years ago I switched from Windows to Mac and my only regret is not doing it sooner.  The MacBook has been perfect for me, except that every now and then I have too many applications open and the spinning ball appears.
 
Whenever the spinning ball appeared I would tell myself that I ought to upgrade the MacBook memory. Then the spinning ball would disappear and so would the upgrade idea. This pattern repeated itself more often than I care to admit.
 
The other day I read something online, one thing led to another, and I finally got around to ordering and installing that new memory. It essentially doubled the memory on my MacBook.
 
The difference is unbelievable.  No, the difference is UNBELIEVABLE.  My MacBook is now lightening fast, no spinning ball and my productivity has skyrocketed.  It's like I have a brand new computer.
 
The total cost for this amazing difference was $39.90 and 15 minutes of my time.
 
What's really unbelievable is the amount of time and productivity I wasted thinking and talking about upgrading my computer instead of just doing it.
 
The same thing happens in stores every day.
 
Someone might put off painting the store and as a result the space looks tired and old.  That's a missed upgrade.
 
Some retailers hold on to products too long, determined to get full price.  Then they can't bring in new and exciting products that will actually turn. That's a missed upgrade.
 
Sometimes retailers stay with lines that are no longer relevant to their customer, which keeps them from bringing in new ones. That's a missed upgrade.
 
I hear a lot of stores talking about doing a Facebook page, an electronic newsletter or more events. But month after month they just haven't found the time to do anything about it.  That's a missed upgrade.
 
There are sales associates that aren't working to improve key elements of their sales approach. They might be really good, but they could be GREAT. That's a missed upgrade.
 
There are managers and owners who fail to address under-performing employees who are costing them sales and losing them customers. That's a missed upgrade.
 
What about you?  What are some of the upgrades you've been thinking and talking about but just haven't done?  Your particular upgrade is probably going to cost you more than the $39.90 and 15 minutes mine did, but what's the true cost of not doing it? Even better, what will be the reward for doing so?
 
So let me ask, what upgrade do you need to start today?

After "I'll Take It."

One of the differences between Superstar retail associates and all the others is what happens after the customer says, "I'll take it." The successful associate knows there are still plenty of opportunities to both enhance the customer's shopping experience and maximize the sale.

These are a few of the attitudes they have and/or the actions they take:

1. Whether you call it enhancing the sale, or adding-on to the sale, successful retail associates know that they just made the first sale, not the sale. We're doing customers a disservice if we don't suggest additional products that are appropriate with the product they are purchasing or otherwise meet their needs.  As you've read here before, think of it as an all-you-can-eat buffet and don't stop until the customer tells you he's full.

2. Reinforce the customer's purchase. So often a customer's first thought after announcing that she'll buy something is to start doubting her decision. She'll begin to tell herself that maybe she shouldn't be buying it now or that should shop around a little more. Your role is to put the customer at ease by complimenting her purchase and congratulating her. This is easy to do if you've done due diligence in identifying what it is your customer needs.

3. Offer the appropriate services and needed accessories. I'm always amazed how many retailers have nice added services like free gift-wrapping in place but their employees never offer it to customers. Even worse is when associates act put-upon when a customer requests it. We can easily disappoint a customer once they return home when they realize that we failed to gift-wrap their purchase or remind them to purchase needed products like batteries, cables, etc.  It's our job to ask the customer, not the other way around.

4. Remain focused on the customer until he/she has left the store. If you're checking the customer out it is important that you not let other employees and customers distract you. The other day I was making a purchase and the cashier was actually reading a text message on his phone. I thought about asking him his phone number so I could send him a text message to put down the phone and do his job.

5. Smile and thank the customer. It should go without saying but all too often it goes unsmiled and unsaid.

So let me ask, are you a Superstar retail associate or in the middle of the pack?

The Slow Drift From Great to Good

I love a GREAT cup of coffee. For years I began every day by grinding freshly roasted beans to make a rich and full-bodied cup of morning goodness.  There isn't much better than that first cup of the day.

About a year ago I begin to tire of having to grind the beans in the morning, so I started to grind them before I went to bed at night.  Everything I've read says the coffee begins to drop in quality soon after grinding the beans but I figured it was a small price to pay for convenience.

After a few months I decided that grinding the beans at night was becoming a grind.  I decided to buy my coffee already ground.   I did notice the difference in my morning coffee between my freshly ground beans and the already ground coffee I bought at Peet's or Starbucks but I figured it was a small price to pay for convenience.

Now that I was already buying pre-ground coffee I figured that I might from time to time skip the extra trip to the coffee store and buy coffee at the grocery store.  Even thought there have been some great strides in the improvements in packaging technology, there is still a noticeable difference in ground coffee bought at a Peet's or Starbucks store and the same brands bought at the grocery store.  But sometimes when I was in hurry I just grabbed some coffee at the grocery store.  I figured it was a small price to pay for convenience.

One morning as I drank my "GREAT" cup of coffee I was reading an article in Cook's Illustrated about how to properly brew coffee.  As I read the article I thought to myself over and over, "I used to do that."

I realized that my GREAT cup of coffee wasn't really that great any more.  Over time I had slowly drifted away from the small but simple steps required to make a great cup of coffee.  Because each change I made only reduced the quality by a small amount I didn't really notice how much less "great" my morning coffee had become.   Of course it was all in the name of convenience.

I'm sure you know where I'm going with this.

The same thing can happen in our stores and in the experience we deliver.  One or two of the little things you would once did to make your store a GREAT place to shop fall by the wayside.  It might be to save time, payroll, or inconvenience.  And it's such a small thing it won't make a big difference.

It happens often.  A store offers to carry every purchase, no matter what the size, to a customer's car.  Then over time they might only offer if the purchase is big and bulky. But now they only carry purchases to the customer's car when the customer asks.

Or maybe it's the practice of offering customers something to drink. The store goes from offering all customers a drink, to those customers they're working with on a sale, to only giving a beverage to the long-time customer who still asks for one.

Other areas that sometimes get lost in the name of convenience are gift wrapping, follow-up phone calls, thank you cards, and getting customer contact information.

The point is that just like the decline in quality of my morning coffee, these small changes slowly takes the experience away from what used to make it special.  The cost of saving time, money, or just making things a little more convenient for us is a lot higher than we think.

Right after reading that article I went back to doing what it takes to brew a GREAT cup of coffee.  The difference is amazing.  Over the last year my morning coffee was good, but good isn't great.  Sometimes good is okay, but we shouldn't fool ourselves into thinking that good is GREAT.

So let me ask you as you enjoy your morning coffee, is there anything in your business you've let slip to good even though it's GREAT that is the key to your success?   If there is, what steps will you take today to turn it around?

By The Way
Be sure and set your Tivo/DVR for this Sunday morning to catch me on a short segment on MSNBC's Your Business. I'll be discussing how small retailers can take advantage of the slumping real estate market with a pop up store strategy.  Your Business airs on MSNBC at 7:30 am ET.

10 and 51 - The Birthday Edition

I can't believe it but my youngest daughter, Jane, turned 10 the other day. It's hard for me to believe but I no longer have a child in single digits. And then the next day I turned 51. 

Here are 51 things I've learned in my life.  Some you may have read last year, but like life this list is constantly changing and evolving.

1. It's easier to give advice than take it.  Usually the advice I give is also meant for me.

2. Focus is extremely underrated. The most successful people I know have the ability to focus and get things done.

3. Jobs, places, and things come and go.  It's the people we meet that make life special.

4. It's my actions that define who I am, not who I say I am.

5. Learning to start my day over was one of the best lessons I ever learned.

6. Humility is the greatest trait I can have as a leader, partner, husband, friend, and father.

7. Having humility is easier said than done.

8. The more I try to learn from successful people the better my chance at success.

9. The only person who can decide if I'm having a good day or bad day is me.

10. The more teachable I am the more I know.  The more I know the more I can help others.  The more I can help others the better my life, and that's why I try to remain teachable.

11. Work hard when it's time to work, but go home when you're supposed to go home.

12. When you're a manager people have to do what you want them to do.  When you're a leader people want to do what you'd like them to do.

13. Everyone makes mistakes but not everyone learns from them. The difference has a huge impact on your ability to have a happy and productive life. 

14. The only person or thing that can hold me back is me.

15. We all need mentors in life.  Do you have one?  More important, are you one?

16. Your children won't remember much of what you said while they were growing up but they'll always remember how you said it.  The same advice applies to people who work for you.

17. To be a good parent and a good manager I need to set high but appropriate expectations.  It's even more important to hold the children or the employees accountable for meeting those expectations.

18. Most people are inherently good.  I can't let the few who aren't impact how I feel and act towards the others.

19. Take care of your employees and they'll take care of the customers.  Take care of the customers and they'll take care of the business.

20. Neither your employees nor your customers will know you care unless you tell them.  Tell them.  Often.

21. I can't let the news and what happens in other people's lives affect how I feel about mine.

22.  I believe faith and spirituality is extremely personal. I'm always offended when someone tells me what or how I should believe.

23. Always do what's best for the customer  - unless you no longer want that customer.

24. The best thing I can do when I am wrong is to promptly admit it.

25. Every time I'm told by a retailer "we have no competition" I always think, "You're delusional."

26. Criticizing someone you don't know and who has no impact on your life is a total waste of energy.  Criticizing someone you know is a waste of good karma.

27. Innovation is important to most retailers' success only if it is built on the bedrock of a commitment to customers and employees.

28. I make an effort to learn something every single day.  I know that combining the experience of the past with the knowledge gained today creates success.

29. Failing is important because if I never fail I'm not trying enough new things.

30. I can't afford to have resentments. I hope those who have one with me share it instead of holding it.

31. Don't miss the moment.  As my wife says, keep your head where your feet are.

32. Be grateful. Demonstrate it with both words and actions.

33. Specialty retail is more about relationships than selling products.  I wish more retailers understood that.

34. Accept or change anything in your life that causes you problems or concerns but don't waste energy complaining about it.

35. The greatest gift you can give someone you don't know is a smile.

36. Ask for help when you need it.  Offer to help when you don't.

37 Surround yourself with positive people who love life and love you.  Don't listen to people who don't share the same values you do.

38. Never regret the past.  Use it today to create a better tomorrow.

39. Compliments are wonderful things to give and receive.  I need to remind myself to give more than I do.

40. Prioritize your day and always put the customer first.

41. Whatever your title, if you're in a leadership role you always go first.

42. Passion trumps knowledge and skill.  Never try to cover a lack of knowledge and skill with passion.

43. Never shy away from a difficult conversation with an employee, friend, or family member.  You'll both be the better for it.

44. Be happy for others.  Don't compare their lives to yours, identify with what they do or have done so you can do the same.

45. Always say, "thank you," "please," and "you're welcome."  Expect the same from your staff and your children.

46. Sometimes bad things happen.  It's one thing to be a victim; it's another to stay one.

47. No matter the cause, if I'm bent out of shape about something the problem is always within me.  If I don't believe that I'm giving others the power to control me.

48. If you don't take the time to enjoy the rewards of your hard work, why work hard?

49. I wish you could buy patience online.  Since you can't, you have to just find it within yourself.

50. Thinking about doing something is not doing something. As they say, Just Do It!

51. Love and value your friends and family. You never know when your time together will end. I miss those I've lost.

52. Always go above and beyond in everything you do, especially when it is for others.

Thank you for reading this and sharing my birthday! May every day of your life be a learning day.