Retail Contrarian

Learning From My New Best Friend Mario

I have a confession to make. Since Christmas morning I've become totally hooked on Mario Kart. For those of you without children or a video game habit, Mario Kart is a fun little go-kart racing game based on the Super Mario series from Nintendo. The only problem with the game is that it's extremely addictive.

I sat down to write this newsletter and there beside me was the Wii Steering Wheel calling my name. It took every ounce of willpower to. . . well, let's just say willpower is overrated.

After twenty minutes of action-packed driving I remembered I still needed to write today's newsletter. But that's okay, because I realized that there are several business lessons in that fun little video game.

Here are two of those lessons I've learned playing Mario Kart:

1. Practice doesn't make me perfect but it sure makes me a lot better.  When I started playing this video game my daughters, who first played last summer, left me in the dust. The conversation between them was whether I would finish in 11th or 12th place.  But the more I practiced the better I got; I'm proud to say that I am now a fairly competitive driver.

The same thing applies in a store.  As a manager I hated having difficult conversations with employees until I learned to practice them beforehand.  That also held true for calling customers to invite them into an event or as a follow-up after a purchase. Practicing a few times with another person makes it a lot easier and as a result that call goes so much better.

This is especially true for the customer experience.  The most productive stores almost always keep practicing and improving their customer experience.  They break down the elements of the experience and pay special attention to those elements that create sales.  If your store slows down after the first of the year, take time to practice for Every Day Success.

2. When I run off the path, the quicker I get back on the better I do.  While this sounds so simple, my early racing proved differently.  Whether it was the long grass of Moo Moo Meadows or the deep waters of Peach Beach, I was taking too long to get out of where I was and get back in the race.

Sound familiar? It happens to all of us. We all run off the path from time to time but what really matters is how quickly we get back into the game. I was in a local store today that usually has very good service but this time the staff was definitely off the path. They were lethargic, ignoring customers and, frankly, having conversations they shouldn't be having on the floor.

I wanted to tell them that the competition is going to pass them if they don't step on the accelerator, get back on the path and go!  I admit that's a sign of a guy who played too much Mario Kart over the holiday break - but on the other hand it's probably the best advice I could give any retailer here at the start of 2009.

So let me ask, are you on the right path with the pedal to the floor?

Or, for you Mario Kart players, are you on the right path with the #2 button pressed down?

Every Day Success in 2009

Here are my final thoughts on 2008. Good riddance!

As 2009 begins, our industry is facing the most tumultuous year in a very long time.  A dramatic pullback in consumer spending is causing a ripple effect from retailers to manufacturers to suppliers to landlords and on and on and on. Many experts are predicting that more stores will close in 2009 than in any year since the early 1970s.

Not a pretty picture.

I never forget the human toll this economy takes. I know that for every store that closes, whether it is locally owned or part of a national chain, employees and their families are dramatically affected. These are not easy times, and they’re especially challenging for retailers.

But with these great challenges come great opportunities.

Fewer stores will mean less competition.  Consumers will shy away from retailers who are either known to be struggling, or project an air of “struggle” in their customer experience.  Consumers will continue to seek out and remain loyal to retailers who deliver a good value and a great experience. Will you be one of those retailers?

You can CREATE and MAXIMIZE the success you deserve in 2009 IF you’re 100% ENGAGED.  That’s true for every owner, executive, manager, support staff, and salesperson.

But it won’t happen on its own; those days are long gone.

In order to succeed, specialty retailers must now create enough store traffic every day.  Events, educational programs, and other activities that drive traffic will be key in 2009. Will you be able to create enough traffic to succeed?

Specialty retailers have to maximize every customer every day and turn it into a sale.  Retailers who still think that all they have to do to make a sale is open the door are in deep trouble. And there are a lot of them out of there.  Only 20% of the stores I visited last weekend even attempted to make a sale. I will not be surprised if at least half of those stores are gone by this time next year.  Are you maximizing every customer opportunity?

Specialty retailers must also focus on creating a customer-focused staff that is engaged and maximizing every single customer opportunity everyday. Great people are the only way to compete against the discounters who commoditize products. Is your staff ready to maximize the opportunities you create?

Keeping customers in 2009 will be even more important than making a sale. Retailers will have to engage their customers every day to create the long-term loyal advocates necessary to compete in these challenging times.  Remember, if you keep the customer you’ll get the sale. Will you?

And last but not least, success or failure in 2009 will come down leadership.  No one achieves success by hoping or wishing for it. Success comes when the leader(s) of a store or organization create positive energy and make sure everyone is taking positive actions every day.  Are you ready to lead?

We are. It is our goal to help your organization create Every Day a Success in 2009. We’ll help you succeed every day so you can make your week, your month, and then your year. You’ll be thriving when other stores are just trying to survive.

I welcome the opportunity to discuss how we can help your store create Every Day Success in 2009.  Whether you’re a large international chain or an independent retailer, we can help.

We’re ready to MAXIMIZE 2009. Are you?

Doug Fleener and Matt Norcia

More Realistic Roleplaying

I've often equated roleplaying on the sales floor with flossing. You know that it's good for you and you should do it more often than you do. One of the biggest challenges with roleplaying is that it isn't very realistic. One way to make roleplaying more realistic and interesting for your staff is to create a series of customer profile cards.

Write down on an index card the following information:

Customer's Name
Sex
Age
What product the customer has previously purchased
Reason for coming in the store. "Just looking" - "Need a gift" - "Need a certain type of product"
What products they might be interested in.

Then have each staff member role-play once every day with a colleague.  One person is selling; the other draws a customer card and uses that profile for the roleplay exercise.

I believe if everyone on the staff role-plays daily that a store can't help but improve sales. And don't forget to floss too.

Happy 500th Mine Your Own Business

Congratulations to Mike Buckley at the Mine Your Own Business blog on his 500th post. As I told him he doesn’t look a day over 450.

Mine Your Own Business is one of the best blogs there is for the independent retailer. The blog came about when Tacony Corporation president Bill Hinderer suggested a blog for their customers. Tacony Corporation is actually four different business units: Sewing, Home Floor Care, Commercial Floor Care and Ceiling Fans & Lighting. They also manufacture vacuum cleaners and commercial cleaning products. So obviously they have a lot of smaller independent retailers as customers.

But what makes Mine Your Own Business such a great resource is they don’t try to sell to their customers on the blog.  Rather, they use the blog to be “a valued business partner" and to "help their customers work on their business and not in their business.” As a result, Mike became the accidental blogger and has done a fabulous job ever since.

Regardless of what you sell, if you’re an independent retailer or support independent retailers I recommend that you subscribe to Mine Your Own Business. I know I’m looking forward to the next 500 posts and you will too.

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.

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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.

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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.

How to Ruin Brand Loyalty

Recently, Doug and I had the opportunity to visit some stores throughout the area. Some were clients, some weren't. I was especially excited to visit one store in particular because I have been a loyal fan of their product and brand for many years, and had yet to visit their store.

Upon entering, I was struck by the awesome assortment of product, most at very reasonable prices relative to other brands in the industry. I felt like a kid in a candy store. My immediate thought upon entering was that if I had a larger house (and a more understanding wife) I could easily spend a few hundred dollars in the short time we would be there. I found things I didn't even know this company sold. I found great impulse items. I even found stuff I didn't know I wanted or needed until I saw it!

But what kept me from going on a crazy spending spree was the staff. The behaviors and attitudes of the three or four employees who stationed themselves behind the cash wrap completely turned me off. Here I was, picking up products, commenting on things, remarking on the great prices, and the staff remained completely aloof and uninterested in my desire to spend money. There was no attempt to build rapport, apart from a cursory and well-worn "How can we help you?" Instead they discussed lunch, talked among themselves, and sat on the back counter. If somebody were to erase the retail environment from around this group, it would be difficult to distinguish them from any other group of twenty-somethings hanging out at the mall, much less determine what brand they were representing. Remember, this was a manufacturer-owned and operated store. The employees work directly for the brand they're selling... or not selling, in this case. One would think that the talent on the sales floor would provide an experience that's representative of the quality and uniqueness of the brand's product. Instead of adding value and raising customers' perception of their product (and, not coincidentally, justifying the premium prices), the staff's lack of interest in their customers and product nearly ruined my appreciation and loyalty for their brand. Imagine what it would do for a customer who had yet to be enticed by the magic of these products.

Whether you're a manufacturer or retailer, brand loyalty is one of the most valuable assets you can build in your customers. The trust and advocacy that comes from a loyal customer is priceless. It's critical to empower employees with the skills and tools necessary to build brand loyalty in customers. Otherwise your brand simply becomes a name.

Predictions for Retail in the New Year (Plus One)

The National Retail Federation's Stores.com website recently published a list of predictions for the upcoming year in retail. While there were no real surprises (consumers will continue to shop despite threats of recession, "green" practices will continue to pervade the way retailers appeal to customers, shopping excursions will become less of an event for more shoppers), there were a few interesting points of interest and one glaring omission.

First, the interesting bits. While social networking remains a dominant activity on computers, its infiltration into portable devices (cell phones, smartphones, media players) will drive a need for retailers to provide a more proactive approach to engaging customers. When a customer is able to get their questions answered by referencing a website or personal expert via their handheld device while they're standing in front of the product, retailers will need to be able to communicate a compelling reason to buy from them.

Another interesting, if not perplexing, conundrum facing retail in the next year is the growing rate of consumers' paradoxical desires. As Stores.com puts it:

You know this guy, right? Installed solar panels on the roof of his home; insists on cutting his grass with a push mower; recycles with vengeance. Yet, parked in his driveway is a Hummer. Having trouble putting the pieces together? That’s the challenge retailers and marketers face.

The real challenge will be to provide an experience on the retail floor that appeals to all sides of this consumer's psyche. Expect to see more and more customer segmentation and personality profiling studies over the next twelve to eighteen months.

Finally, it looks like one prediction was left off of the list. It speaks to a few different items on the list, but it deserves to stand out on its own because it's something retailers can have direct control over so that it doesn't adversely affect their business. We predict that over the next twelve months, customers will continue to grow increasingly intolerant of unengaging store personnel. As time and money start to reach parity in terms of value and scarcity, and more and more retail employees are brought on board with little-to-no customer engagement skills development, the result will be more consumers turning to the web or other avenues for their purchasing, eroding the loyalty that's so valuable to growing a business.

Well, just like Ebenezer Scrooge was able to prove the Ghost of Christmas Future wrong by changing his ways, retailers can thwart this course to destruction by investing the resources into making their sales talent engagement specialists. The retailers that succeed beyond the next year will be the ones that have customers singing the praises of their people.

Sustaining Staff Development Through the Holidays

In all the hustle and bustle of the season it’s easy to neglect the continued development of your staff. Too many retailers cite the chaos of the holiday season as an opportunity to close the training valve for a while, a sure indication that they either don’t place a high enough value on the long-term investment of good development, or they just don’t know how to be flexible in their training initiatives.

Of course, smart retailers know there’s never an excuse to totally cut off training. Here are five easy things you can do to continue your staff’s development through the holiday season and into early next year.

1. Place a moratorium on major new training initiatives. Notice that we said “new training initiatives”. This is not the time to launch your New Year’s Training Blitz Extravaganza. If you have vendors who provide training programs, you should have kindly asked them to hold off until after the first of the year.

2. Continue training on a few (no more than three) popular or promotional products or services via a one- page info sheet. Use this training as a quick refresher for employees to review before their shift starts or during a break. The sheet should contain an FACQ (Frequently Asked Customer Questions) section, a list of features and benefits, as well as promotional pricing info and/or how many need to be sold to reach a particular sales goal.

3. Keep your subject-matter experts focused. Too often during this season retailers will institute a “code red” condition where everybody steps out of their typical roles in order to meet high customer demand. It’s important that individuals with expertise in specific areas (product or function) be able to perform in those areas in order to facilitate the customer experience and offer support for peers.

4. Post a trivia question or riddle in the back room for employees to solve during the day. Have them submit their answers in writing to you and award a prize to each day’s randomly chosen correct answer. This exercise creates a positive mental distraction for the staff, and helps them to focus on something other than the chaos on the floor.

5. Feedback, feedback, feedback. Don’t let any employee leave for the day without giving them some positive and specific feedback on their work. Feedback is a crucial part of any type of development. This time of year is no exception. However, given the stress of the season, daily feedback during the holidays should be informal and focus on reinforcing positive behavior, rather than formally calling out improvement opportunities. Just a simple comment telling an employee they did a great job with a particular customer can make a hectic day seem well worth the effort.

Retail Experience Approach - Dumb or Dumber

Last week at a Customer Experience seminar I shared with the participants the need to design retail experiences so they are both memorable and effective.  Great retail experiences don’t just happen as a byproduct of a physical store, but because the retailer has designed the desired customer outcome.  The only way for that to occur is for the retailer to give the staff the knowledge and skills necessary to achieve those desired outcomes.

The most important tool you can give your staff is a well-defined systematic approach to delivering the desired experience.  Without a defined approach every employee is free to deliver the experience as they see it, not as the company defined it.  The easier the approach is to learn and apply, the more likely the employee will execute it consistently.  This is why any retailer’s “10-steps of the sale” rarely will work.  It’s just too complicated to happen on the floor.

As I was walking the seminar group through some examples of systematic approaches one of the participants asked, “Why do you people think we have to dumb down retail?”  The question stopped me in my tracks, not only because I wasn’t sure who “you people” were but because I had never thought of this kind of tool as a “dumb downed” approach.

After some spirited debate we agreed to disagree.  This gentleman’s opinion is that if we make something easy to learn and easy to apply then it’s dumbed- down.   My opinion is that any tool that helps employee be consistent and achieve their goals is a good thing.  Making something easy to learn and easy to apply enables that success, it doesn’t take away from it.

One has to ask which is dumber....a well-defined easy to learn and easy to apply approach to the customer experience, or letting employees do whatever they see fit with the customer?  I know which is more effective.

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