Retail Contrarian

Crank Up Your Store Meetings and Fire Up Your Team

2009-11-04T19:04:42-05:00

When payroll is tight one of the first thing that gets cut is often the monthly staff meeting. This is a mistake because store teams need this face-to-face time to train on new products, work on issues together, and continue to develop as a team. While e-learning and other vehicles can help transfer information to employees, you can't beat a monthly face-to-face meeting of the whole staff.

However, it is imperative that these meetings are productive, engaging, and result in a positive return on the time and payroll investment. Companies can't afford poorly run and poorly executed meetings.

Years ago I worked for a store manager who was scared to death to speak in front of group of people even if those people were her employees. Because of that our monthly store meetings consisted of her reading from a script while she fanned us with the shaking papers in her hands. We always thought about positioning an employee behind her in case she passed out. I was never sure who was in more pain, the staff or the manager.

I'm sure you run your meetings more smoothly than she did but since there's always room for improvement, here are some tips to crank up your meetings and fire up your team.

1. Don't use meeting time to transfer information. Unless you're hiring pre-school students, your staff can read and they don't need anyone to read memos to them. Assign all necessary reading before a meeting. The same holds true for new product information. Even if you're planning a splashy introduction of the product itself at the meeting, have the employees learn about them before the meeting starts.

2. Make the first five minutes of every staff meeting a WOW. Dress up as some character, crank up some music, have the employees up and dancing, throw candy and treats, do anything else you can do to get your team excited and pumped up. Yes, it gets harder and harder to top what you did last time, but since we expect our people to keep improving the customer experience shouldn't we do the same?

3. Introduce new products with style and flair. At Bose we went to great lengths to unveil new products to the entire company. I've come across very few employees who don't love getting to see - and play with - new products. Even when the staff knows the products are coming in you can still make the first time people see them a fun experience.

4. Use the meeting to apply what people have learned. Instead of discussing the details of a new product, talk about how to sell the new product. Do roleplaying and a competition on who can best state the benefits to the customer.

5. Play games (with a little friendly competition) to reinforce learning. I always like to split the staff up in teams and play games like Jeopardy and Retail Truth or Dare. And if you have any high school or college memories of Truth or Dare I assure you that this version is not like that one! Think role-playing and product knowledge.

A good store meeting should involve and engage the entire store team. The majority of the owner's/manager's time should be in planning the meeting, and not having to carry the whole meeting him/herself.

So let me ask, how engaging are your meetings and trainings?

Doug and Brian

The Eyes Have It

2009-10-29T09:20:38-04:00

One of the "skills" I found very useful when I worked in a store was the ability to do many things at once.  Most people call this multi-tasking. I called it retail.

The longer I worked in retail the better I became at doing many tasks simultaneously. I could check in an order, deal with a customer issue and answer an employee's questions all at the same time without missing a beat. And that's when things at the store were slow.

When I moved into the corporate office at Bose I found the pace maddeningly slow.What really drove me nuts was that it seemed like people only did one thing at time. I used to tell people in the office they'd never make it in the stores.

One day after a meeting a colleague pulled me aside to give me some feedback. I had worked with Pete for a while and knew him to be a straight shooter although I didn't always like what he had to say.  Pete told me that my behavior in the meeting had bordered on rude.  I had no idea what he was talking about.

He told me that people didn't think I cared what they had to say since I didn't pay attention when they were talking. I was flabbergasted. I told Pete that I was always paying attention even though I might have been doing a few other things at the same time.

Pete told me something I've never forgotten.  He said, "You might have heard them, but you weren't listening. To listen you have to use your ears and your eyes." I tried to explain that it was just a habit I had from working in the stores and he said, "Well, it was rude then, too."

Ouch. I realized he was right.  From that day forward I tried to listen with both my ears and eyes.  I'm sure I failed from time to time when meetings started to drag on, but all in all I did use my eyes a lot more.

The best salespeople always listen with their eyes. While some salespeople are looking around the store or watching colleagues when a customer is talking, the best salespeople are completely focused on their customer whenever he or she is talking. Not surprisingly, hearing more allows them to sell more.

Whatever your position in a retail organization, when you take the time to listen with both your ears and your eyes, you can't help but make a stronger connection with the other person.  And isn't that ultimately how we make a difference in both our stores and in our lives?

And Some Miscellaneous Musings

1) With Halloween on Saturday this year I recommend going all out to make your store a great experience this weekend. It's opportunities like this that let your store experience stand head and shoulders above the competition.

2) New research shows that high-potential employees are motivated by a desire to give back to their communities and increasingly seek out employers that allow them to do so on the job. Something to consider as you go into the holiday or post-holiday season.

3) Speaking of giving back, two weeks ago at the Brighton store manager's meeting all 140+ managers spent one evening at different shelters and organizations helping women in need. What a great activity for a manager's meeting!

Have a Happy Halloween and a great week.

Doug and Brian

Demonstrating Your First Priority

2009-10-21T00:01:00-04:00

The weeks between now and mid-November can be a challenging time for many store owners and managers. There's seasonal staff to be hired and brought on board, holiday orders to being finalized, marketing and events to be planned.

But that's just the start. The holiday orders are arriving and seasonal merchandising needs to be completed. And it never fails during this time that something unexpected happens in the store or with the staff.

There's one big difference during this time between successful owners and managers and the rest. It's a difference that has nothing to do with the holiday. The difference is that successful owners and managers are never too busy to keep the staff focused on their first priority: each and every customer who comes in to the store.

More important, the owner and manager demonstrate that priority every day. No matter how long the to-do list, they understand that it's their actions that demonstrate to their staff that their first priority is the customer.

Here are six reminders for how you can demonstrate that customers are still your first priority, even while you're busy getting ready for the holidays.

1. Start every employee's day with a Daily Take Five. To me this is a given but sometimes we can let the morning get rolling and let it slip. Don't let it. (You can read about the Daily Take Five here.)

2. Be on the floor during peak times. Yes, peak times during the weekday aren't insanely busy and the staff may get by without you, but being on the floor when the store is busy demonstrates your priority to your team.

3. The minute you're on the floor you're working the floor. Sometimes our body may be on the sales floor but our mind is still on our projects in the office. Don't let that happen! Your entire team will be watching and will notice if you miss a chance to engage a customer. Remember, when you're on the floor you're "on".

4. Don't be too quick to hand off customers to a staff member. It never fails that if you walk away from your holiday work and go on the floor that every customer comes to you instead of the staff. I'm not saying to not hand them off when the time is right, but doing so immediately demonstrates that your first priority isn't the customer.

5. Check in with your team from time to time about what's taking place on the floor. You do have a lot of things to get done that are critical to your holiday and by all means do them. But also take some breaks to check in with the team. Don't just go out and say, "Is everything okay? Good, call me if you need me." Instead, find out what's been sold and who's been in the store.

6. Print out Monday's Daily Retail Quote and post at your desk. It read, "The key is not to prioritize what's on your schedule, but to schedule your priorities." - Stephen Covey

Taking these actions will remind your staff that even though you're busy getting ready for the holidays, your first priority is still the same. The customer.

So let me ask, are you demonstrating your first priority?

Doug and Brian

Four Words That Will Transform Your Business

2009-10-13T21:52:03-04:00

On Saturday afternoon we had a family outing to Wrentham Premium Outlet Center to buy some clothes and shoes for our daughters. The place was packed. The line of cars to get into the center was backed up on to the highway from both directions.

All I could think was "look at all these opportunities." It was enough to make my retail heart go pitter-patter. Judging from the number of bags in people's hands I would say that most stores had a good day. Some might have even had a great day.

But if my experience was like most customers, the stores that had a good day could have had a great day, and the stores that had a great day could have had an extraordinary day - if they had remembered these four simple words:

Maximize every customer opportunity.

Knowing how to greet and engage customers doesn't matter if you don't do it with every customer.

The ability to help customers make informed decisions about the latest fashions or a product's features and benefits doesn't matter if you don't do it with every customer.

Recommending additional products that will enhance a customer's purchase and his/her life doesn't matter if you don't do it with every customer.

Having fabulous new products or incredible sale doesn't matter if people don't know about them. Sure, you can post signs to that effect but nothing reinforces the message more than an employee enthusiastically telling me about them. But it doesn't matter if you don't do it with every customer.

Lots of store traffic is a wonderful thing but you leave money on the table if you don't maximize every customer opportunity.

Maximizing every customer opportunity sounds simple but if it were that easy, more retailers would be doing it. I'd say that fewer than 10% of specialty retailers maximize every customer opportunity.

I'm not saying this to be negative but quite the opposite. It's exciting because I see incredible opportunity for retailers like you if you make maximizing every customer opportunity the foundation of what you do.

Almost all retailers talk about how important customers are. Very few stress how important every customer is and the impact that has on business.

Look at the difference.

Welcome and engage customers.
Welcome and engage every customer.

Suggest products and services to the customer.
Suggest products and services to every customer.

Offer additional add-ons.
Offer additional add-ons to every customer.

Deliver a great customer experience.
Deliver a great experience to every customer.

Makes sales.
Make sales to every customer.

Maximize your opportunities.
Maximize every customer opportunity.

So let me ask, are you maximizing every customer opportunity?

If not, consider the impact doing so will have on your business if it becomes your number one priority.

Is It Time to Upgrade?

2009-10-07T10:16:26-04:00

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?

Expert, Clerk, or Somewhere In-Between?

2009-09-30T09:01:24-04:00

A couple of weeks ago I rented a tuxedo jacket for one of my holiday speeches. I must admit, a tailcoat paired with a Hawaiian shirt is an interesting look. But I digress.

After trying on the jacket I told the woman working at the store that it was perfect. She insisted that it wasn't and that she needed to hem the sleeves. I responded that I was in a hurry and since it was really just a costume for a speech it didn't matter. She told me that it did matter and if I didn't adjust the sleeve length it wouldn't look right when I raised my arm.

She was clearly an expert so I agreed to wait for her to hem the sleeves. I'm glad I did. I even thanked her for the great service and for being an expert.

Compare that to another recent shopping excursion. The salesperson let me into the dressing room and when I came out she was nowhere in sight. I eventually found her on the other side of the store talking to another employee.

Since I wanted an expert opinion I went up to her and asked what she thought of this shirt. She replied, "Any of our shirts will look good."

She was clearly a clerk, not an expert, so I left without making a purchase. I didn't say anything because she was too busy chatting with her colleague.

There's a huge difference in performance between an expert and a clerk.

1. Experts take the time to know their customers before matching them with products. Clerks don't.

2. Experts recommend products and service specifically for their customers. Clerks show products.

3. Experts share opinions with their customers to help them make the best possible purchase. Clerks give their personal opinion for no reason.

4. Experts help customers buy additional products that will enhance what they are buying or will enhance the customer's life. Clerks do add-ons because they're told to.

5. Experts have no problem telling a customer not to buy something if it isn't the right product for them. Clerks probably wouldn't know if it isn't the right product.

6. Experts proudly sell. Clerks are afraid of being a salesperson.

7. Experts ask questions. Clerks only answer them.

8. Experts create sales. Clerks make them.

9. Experts are an asset to the company. Clerks are on the payroll.

10. Experts have my admiration. Clerks have my appreciation.

So let me ask, are you an expert, clerk, or somewhere in-between?

Doug and Brian

Dealing With Mr. or Ms. Cranky

2009-09-23T10:40:33-04:00

A friend of mine once said that retail would be so much easier if it wasn't for the people and the products. Sometimes he would add, "And the product part isn't that difficult." Of course he was joking. Okay, maybe there were days when he was only half joking.

In my years of managing a retail staff I've had the privilege of working with some wonderful people. These are people that I thoroughly enjoyed working with. I'm still friendly with a number of former colleagues today. Of course these aren't the people to whom my friend was referring.

He was talking about people like James. (Name changed to protect the guilty.) James was a full-timer who constantly went back and forth between being the nicest guy in the mall and the crankiest. What made James really difficult to work with is that he could switch back and forth faster than you or I could wipe down a cashwrap. James was a great salesperson but, to say the least, a challenging teammate.

Got any cranky people on your staff?

I do - and since I usually work alone we know who the cranky one is!

We're all human.  We all have up days and down days, but when an employee has too many down days or too many moody days it becomes a problem that impacts the entire team.  And when that happens it impacts the quality of the customer experience and ultimately sales. Not good!

Here are few tips to deal with Mr. or Ms Cranky:

1. Don't make excuses for them. We all have things going on in our lives. Some people from time to time have a lot to deal with outside and sometimes inside the store, but that still doesn't give anyone the permission to act in a way that negatively impacts the rest of the team. That doesn't mean we're not empathetic, but it does mean that we can't allow anyone to constantly display behaviors that impact the store in a negative manner.

2. Address the cranky (or worse) behavior as soon as it becomes a problem.  Most of us can have some (sometimes justifiable) cranky moments from time to time but the moment passes and we move on. But when Mr. or Ms. Cranky can't seem to stop sharing the bad attitude and dark cloud you need to take action.

3. Help Mr. or Ms Cranky turn it around.  Let them know what behaviors you are seeing, the negative impact it is having on the team, your expectations for the behaviors to stop, and your confidence that the individual can snap out of it.

You can't say, "Whoa, someone got up on the wrong side of bed" and expect things to get better. Instead you might say, "I notice that when talking with so and so you were extremely short with them and were very dismissive. (behavior) Because of that everyone is avoiding you and it's impacting how we work together today. (impact) I need you to be more respectful with your teammates (expectations) and I'm sure that won't be a problem for you. (stated confidence)"

Chances are Mr. or Ms. Cranky doesn't even realize they're acting this way because they're in such a cranky mood, and they'll be even a bit embarrassed that you've had to address it. The really cranky employees sometimes get even crankier as a result of your talk. You may need to move forward with a more formal corrective action approach with these folks.

Here's the bottom line.  If Mr. or Ms. Cranky's behavior is disruptive to the store, then it doesn't matter how good they are or what position they're in. They're hurting the team, and as a leader you can't allow that to happen. More important, you have to be positive that you're not Mr. or Ms. Cranky.

So let me ask, are you addressing any cranky employees and helping them turn it around?

Doug

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Book Doug for Your Upcoming Holiday Meeting

Doug is again offering his annual retail rallies for those organizations that are holding an upcoming holiday meeting. This year's are titled Soaring To Holiday 2009 Success andLeading with Holiday POPS.

Here are what some participants said after attending these keynotes last week:

"I was blown away. Thanks for your time and effort to make retail a better place to work." - Jim
"Your seminars were amazing. I took tons of notes and have already planned a management meeting, met with my team, and we are implementing the POPS as a team." - Roxanne
"This meeting was just what I needed to get me going. Thank you." - Lori
"Your insights in retailing were very motivating to me. I'm back and ready to execute what I learned." - Jane

Call Brian at 866-535-6331 to book your meeting now. Learn more about Doug's programs at www.dougfleener.com.

After "I'll Take It."

2009-09-16T09:21:34-04:00

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?

Your True Incremental Value

2009-09-09T12:05:00-04:00

Part of delivering an exceptional customer experience is delivering incremental value along with the products and services you sell. Some of you may charge for incremental value such as design services but most of you use it to differentiate your store, increase average sale, and create more loyal customers and advocates.

But what is the incremental value you offer really worth, and is it something the customer sees as adding to their experience?

Consider this. What if your store was empty? What if you not only quit selling products, but also took everything out of store except for your counter and some chairs? Would your customer still visit? Would your store be the first place your customer turns to for advice and an opinion?

I think these are fascinating questions since they define the true incremental value you and your team delivers.

I can think of a few stores I would still visit. One obvious choice is the Apple store. Even if the place were devoid of products I would still go there to ask questions, and probably hang out and shoot the breeze.

I know I would also go to Jordan's Furniture store. It's is the only store in town that not only contains a trapeze school and an IMAX theatre but also boasts a replica of the Massachusetts State House made out of jellybeans.

I would also stop in and visit Kathy Fields at The Crafty Yankee, a wonderful store not too far from my home. I know that if I asked Kathy or a member of her staff for advice on gift buying they would have some fabulous suggestions.

These stores deliver incremental value besides the products they sell.

There are many more stores I would never go in again. The only reason to go to these stores is because they sell something I want or need. Because of that I have no loyalty to them. Given any reasonable alternative I have no reason to ever go back. These stores have little, if any, incremental value.

Maybe some of these stores have incremental value than I've ever seen but because they didn't deliver it proactively when I was there to make a purchase I wouldn't think to go back now that they don't have any product.

Here's an exercise for you and your team. List five to ten ways your store offers incremental value. Maybe you teach people how to pack, or share with your customer the latest fashions. The value is dependent on what you say. . . or maybe I should say what you used to say with what you use to sell.

Now ask yourselves what percentage of the customer's experience consists of that incremental value? Are you proactively delivering that value?

So let me ask, would you still have customers if you were no longer selling products?

A Flawless Experience Resulting in a Sale

2009-09-02T07:46:12-04:00

"Nobody rises to low expectations." - Calvin Lloyd

The expectations we set for our employees ultimately define our customer experience. I recently talked with a regional retailer who, for one reason or another, has over time lowered his expectations of his employees to the point where they can't deliver a quality customer experience that creates a sale. All they can to is to help customers who are making a purchase.

I don't believe this is the case for most of you. I don't think you can read the The Retail Contrarian on a regular basis and deliver a poor or even mediocre experience. As a matter of fact, I believe that most of you deliver an above average -if not outstanding - customer experience.

But that doesn't mean that there still isn't an opportunity for you to do even better. And when there are opportunities, there can be more sales, more loyal customers, and more advocates. And that creates even more sales. It's a beautiful thing.

Imagine if every customer who walked in the door was delivered a flawless experience resulting in a sale. Can you imagine? Every customer is WOW'd and every customer makes a purchase. A close rate of 100%! I'm all verklempt. Talk among yourselves. (If that doesn't make sense, ask an older colleague.)

So do it. Imagine it and then execute it.

What would you have to do TODAY to deliver a flawless experience?

Everyone focused on the floor? Check.

Not ask experience-killer questions like "May I help you?" Check.

Quickly build a strong personal rapport with every customer? I know they all don't want that, but that's okay because a flawless experience is based on the customer's perceptions and not ours, right? Check.

So what will it take for your store to get there?

Now imagine every customer making a purchase. That's a little harder isn't it? It is, but if you don't strive for a high goal you'll never come close. I don't think it's impossible.

What would you have to do TODAY to make a sale to every customer?

Treat every customer as though he/she is in the store to make a purchase? Check.

Get past those "just looking" comments? That's a tough one because we have to do it while delivering a flawless experience. Nobody said being an outstanding retailer is easy! Check.

Recommend products with energy and passion? Check

So what will it take for your store to get there?

Are you and your team up for the challenge? Are you willing to do what it takes today to deliver a flawless experience to every customer so it results in a sale? Even better, are you up for the challenge to do this through the WEEKEND? Here in the states it's a three-day holiday weekend. Imagine the opportunities!

Remember, the expectations we set for ourselves ultimately determine our customer's experience AND our success.

I think you'll be amazed at what you and your team can do.

Doug and Brian

The Exceptional Experience Line

2009-08-26T14:18:50-04:00

In every customer's experience there is a point, a line if you will, where the customer moves from an average experience to something they view as exceptional and memorable. The ability to engage and move customers beyond that line on a regular basis has an incredible impact on revenue, as well as customer loyalty and advocacy.

The challenge for all of us is that this line is different for every customer. The opportunity is that the Exceptional Experience Line for most customers is usually within a certain bandwidth based upon common points of references, i.e. mostly average and sub-par experiences in their everyday activities.

Why do so many companies fail to get their customer to - and beyond - the positive experience line?

It's because most don't try, and if they're someone like a big-box retailer it probably doesn't matter since they're competing on low prices, convenient locations, and wide selection. Any positive experience is icing on the cake. And don't be fooled, some of them are gunning for that line.

Unlike big-box retailers, it's vital for specialty retailers and independent businesses to move customers to and beyond that line. Unfortunately, many fail to get their customers anywhere near the line because they're not aiming for it.

As a regular reader of The Weekly Retail Experience, I like to think that most of you are far closer to that line than are your competitors. Some of you are able to go beyond that line with almost every customer.

Companies that are able to surpass the line on a regular basis have the following in common:

1. They've trained their people to focus on exceeding every individual customer's experience. While they may not have specifically labeled it a "line," the line is the point where expectations have been exceeded.

2. They have specific tools and activities that, when combined, move the customer beyond the line. Those tools and activities include, but are not limited to, offering the customer a beverage or a snack, using their name, welcoming them on a regular basis, proactively offering to carry a purchase to the car, suggesting additional products that enhance the purchase, engaging their children, a follow-up phone call and a host of other things.

The key is the combination. Because every customer has different expectations and perspective, only doing one or two of them doesn't move most customers to the line.

3. Last but not least, everyone is focused on the Exceptional Experience Line. This includes the owner or executive team, the management team, the floor staff, and the back-office support team. Everyone!

So let me ask, are you and your entire team driven to move the customer beyond their Exceptional Experience Line?

The Slow Drift From Great to Good

2009-08-19T09:31:54-04:00

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.

The More You Know The More You Sell

2009-08-12T06:20:42-04:00

Last month I needed to go to New York for a few days to present at a jewelry show. It's roughly 225 miles from my house to Times Square.

Here were my transportation options:

1. Airplane. Definitely the fastest option, although that could depend on the traffic from LaGuardia to my hotel. The total cost with taxi and parking at Boston's Logan airport is around $350.

2. Train. It's by far the easiest and most comfortable way to travel but it does take longer than flying. I could work while traveling and even use the Wi-Fi. Total cost would be in the vicinity of $250.

3. Car. A little faster than the train but more effort on my part. Gas and parking total about $150.

4. Bus. By far the most cost effective but also likely to be the most challenging. The bus lines all had varying price and some would require a cab once I got in to NYC. We'll average it out and say that the total cost for the bus trip is $50.

What would you have chosen, and why?

But what if you were going to book my travel? Which option would you have chosen for me?

Don't worry, I'm not turning the Weekly into a travel newsletter; here's where I bring it back to retail.

If this had taken place in a store some retail employees would have:

* Assumed I was inquiring about a trip, not that I was there to book it.

* Offered me the bus first because it was the least expensive. One of the biggest impediments to success is believing that all anybody is looking for is the least expensive product. People want the most value. In my particular case value is time, effort, convenience, and cost.

* Started telling me about whichever transportation option I was looking at that moment. If each transportation mode had a section in the store and I was standing in front of "driving" I would have heard about the different places to park.

* Told me what they would do. Maybe the salesperson doesn't like to fly so they would never suggest that option. Someone else's dislike of flying has nothing to do with me, but it's amazing how many salespeople think it does.

Helping me book this trip is no different than helping me buy something in your store. The more you know me and what's important to me, the better you can match me up with the right product you sell that is the best value for me. The more you do this the more likely it is that you'll make a sale.

Telling me my options would not have helped at all. I already knew my options. What I would have being looking for is an expert to tell me what was the best way for ME to go from Boston to New York.

You would need more information, don't you? I'm going to guess that you would want to know things like the following:

* Are you in a hurry?
* Is there any particular time you need to arrive in New York City?
* Will you need to be back in Boston by a certain time?
* What is your preferred mode of transportation?
* Are you traveling alone?

So let me ask, do you take the time to get to know your customer before showing them products, or do you just tell them about what you have to offer?

By the way, I was going to take the train but at the last minute I decided to bring my family so we drove. That was the fifth question. That's why it is important to know as much as you can before recommending a solution.

The Opportunity When You Can't Say Yes

2009-08-05T08:32:57-04:00

While not saying "no" to a customer should always be your goal, sometimes the inability to say "yes" can also give you an opportunity to delight or wow. The key is to always tell the customer what you can do for them, not what you can't.

Here are two good examples. I'm in New York City last week speaking and moderating a panel at a Jewelry Show. Since I was driving to the city I brought my family with me for a mini-vacation. I'm staying at a new Sheraton Four Points, which has small but well-appointed rooms.

Sunday night I called down to the housekeeping to request an extra bedspread and sheets for one of the girls to use to sleep on the floor. Three times we called but got no answer. We called the front desk and still got no answer.

So I took the elevator down 25 floors to find two people working the front desk. When one of them finally looked up I told her that I needed an extra blanket or quilt for my daughter to use as padding to sleep on the floor. I barely got the words out of my mouth when she snapped, "We don't have extra bedspreads or rollaways." And then silence. She didn't offer a single alternative.

Not surprisingly, I was getting annoyed by now and snapped, "Great. At least in the future please answer your phone so I don't have to come all the way down here to not be helped." She frowned and said, "Well, I can get you some blankets and sheets if you want." At least Ms. Happy was now trying to help me. I took her up on her offer and 10-minutes later housekeeping showed up with a couple of sheets. Still not great but better than nothing.

Think about how this different this experience could have been if she had responded to my first request without saying "no." She could have said, "I'd be happy to help make the floor a little more comfortable for your daughter. While I don't have any extra bedspreads, I bet we can find something else. Can I send someone up to your room in the next 10 minutes?" With a response like that I could have cared totally forgiven my unanswered calls.

Simply telling me what she could do instead of what she couldn't do would have easily moved me from frustrated to delighted.

Here's a great example of not saying "no" and WOWing a customer. Monday morning I went to the local Starbucks to order coffee. The smiling barista told me, "We've had a problem with our coffee maker but I'll be happy to make you an Americano instead." Then she added, "And I'll even make it on the house."

Not only did she not say "no," she WOW'd me by giving it to me at no charge. And drinking the Americano reminded me how much better it is than a bold, and chances are I'll start drinking the higher priced Americano for now on.

This employee took a situation where she could have said no and sent me on my way, but instead she WOW'd me in a way that will result in my spending more money with her company. That is how you maximize the opportunity in not saying "yes."

So let me ask, do you and your team maximize the opportunity when you can't say yes?

An Impeccable Customer Experience

2009-07-29T13:19:16-04:00

When my children were younger and were called to a meal or wanted to help in the kitchen my wife always asked them if their hands were impeccably clean. She would explain why impeccably clean hands were needed. She pointed out that you always want to eat with clean hands, and if you are going to be help in the kitchen you need clean hands to handle the food.

At first I wondered why she just didn't tell them to go wash their hands since she knew they hadn't, but I came to realize that she wasn't asking them to go through a motion, she was teaching them to maintain a standard. Just as important, she wanted them to create a habit of washing their hands instead of having to be told.

Over time, the girls learned that impeccably clean meant never coming to the table or to expect to help in the kitchen without first washing their hands with soap and warm water. (Disclaimer: It doesn't always happen but for learning purpose let's pretend it does. I digress.)

The point is that the girls learned why it's important to have clean hands and inherently understood the expected outcome.

Successful companies use this same approach to deliver a better customer experience than their competitors. Employees who understand why an extraordinary and memorable customer experience is important to the company and their own success are more likely to deliver it than those who don't understand that concept.

Customer-centric companies also have a standard for the customer's experience. Like my wife's expectation for children to sit down to dinner with impeccably clean hands, there is a stated desired outcome that all employees strive to deliver. It's a key part of the company culture and is reinforced on a daily basis.

Of course everyone needs to be trained how to do their job, but when employees know the why and the expected outcome the how becomes much more important.

Take something as simple as a customer walking in the door. Most retail employees have been taught to "greet" the customer within x amount of time but they don't understand why those first thirty to sixty seconds are so important in setting the tone of the customer's overall experience. They also don't engage the customer in a meaningful way since they've never been taught how the customer should feel as a result of this initial engagement. So they say things like, "How's it going?" but never stop to hear a reply because as far as they know their how is over and done.

Companies will always be more successful when the how is only taught after the why and the expected outcome.

So let me ask, metaphorically of course, does your staff have impeccably clean hands or do you have to tell them to go wash? The difference is in the experience.

10 and 51 - The Birthday Edition

2009-07-25T08:18:35-04:00

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.

The Daily Take Five Meeting

2009-07-16T11:05:37-04:00

The other day a reader asked me to explain what a Take Five meeting is. I realized that even though I always encourage people to use the Take Five, it's been too long since I've actually described what it is.

The Take Five meeting is a tool I began using in my days as a Sharper Image store manager. Back then I called it the morning huddle. For a while I called it the Five to Thrive meetings, but finally changed it to Take Five to align with what many of our readers are calling it.

Take Five is a DAILY meeting between the owner or manager and his/her team before the employee begins the day. It can be done as a group or one-on-one. I recommend you do at least one one-on-one Take Five every week with each staff member.

To use the Take Five to its fullest you need to use it with every employee at every shift. Not just when the doors are opened, not just when the team is together, but every single time someone starts his/her workday. Put the responsibility on the employee to find the manager/owner for the Take Five Meeting before they start their shift.

In your Take Five meeting you want to review all of the crucial information the team needs to have a successful day, and you want to make sure they are focused, motivated, and ready to go. The Take Five is not just for in-store use; it's also useful for internal support and field management teams.

In the store, you can use the Daily Take Five Meeting to review things like sales results, daily goals, and other key information the staff will need. That can include everything from the lunch and dinner schedule, specials, contests, and floor coverage.

It is vital that every meeting also include giving feedback, praise, and coaching. Too many meetings are just a download of information when they should be about improving everyone present. Take the time to share some observations of what you've seen employees do well and what they can still do better.

Challenge people on what area they're going to improve in that day. I've always said if an employee can't answer what they're trying to improve in then you're not truly developing your staff. If you have the time do some quick roleplaying. Okay so it becomes a Take Ten or a Take Fifteen Meeting, but that's better than just standing around after they start their shift. It also becomes some of the most productive time in the day that pays the highest return on investment.

Always end the meeting on a positive note. I remember attending one meeting that ended on such a down note I wondered why the staff even bothered to open the door for the day. The team needs to feel energized and ready to succeed at the end of the Take Five.

We're in the people business. That's where our opportunities are, that where our focus needs to be, and to maximize those opportunities and that focus we need to start every day with a Take Five.

Your Customers

2009-07-08T09:19:08-04:00

Some things you may or may not know about your customers:

They don't compare you to other people who sell what you do. They compare you to every store they shop in.

They appreciate being treated like they're special, even if don't show it.

Although they might decline that drink or cookie you offer, they appreciate and remember the gesture.

They will tell other people about your store if you give them a reason. What they tell people is up to you.

They dislike being hounded, but they also hate being ignored. Yes, that's confusing and yes, that's why selling in retail is not easy.

Most of them worry more about overpaying than about getting the lowest price.

They respect what you know about the products you sell. They like being respected in return.

They watch how you handle your products to see how much they’re really worth.

Even if they don't come to an event they remember that you do things for your customers.

They're happy to hear from you on a regular basis, but they don't want you trying to constantly sell them something, either.

They appreciate knowing that your store is a good place to work as well as to shop.

They like buying from local businesses, but most aren't willing to pay too much extra to do so.

Even though they appreciate your employees, they like getting that little bit of extra attention from the owner.

They appreciate being appreciated.

Most will be loyal if you'll be loyal to them. This means that sometimes you have to do what's more in the customer's best interest than yours.

You have many customers but each one is unique. The more uniquely you treat them the more likely they are to remain your customer.

A few of them are a pain but that should never change how you think of them. Remember, each one is unique.

They appreciate the little things you do to deliver a great experience. A lot of them remember to tell you that: some of them forget.

So allow me to say it for all of your customers, "Thank you."

The Most Important Thing You Do

2009-06-30T16:15:39-04:00

I recently asked a group of owners and managers to tell me the most important thing they do in a day. Owners and manager usually have to do ten things at once and a hundred or more different things to take care of throughout their day, but I was looking for that one thing they consider the most important part of their job

I heard a lot of different answers including:

"Drive sales."
"Develop my staff."
"Protect the store assets."
"Drive traffic into the store."
"Make my customers happy."
"Deliver a great shopping experience."

What do you think is the most important thing you do?

I'll tell you what I think it is. I think the most important thing you can do as a manager or owner is to create the best place to work. That's right, I think delivering an employee experience that has people loving their job is the most important thing you do.

Why do I say that? Because as a specialty retailer what makes your store truly special is your people. You might have a beautiful store with fabulous products but chances are whatever you sell I can find somewhere else. It's the people in your store that make the difference. It's the people that keep your customers coming back time and again. The reverse is true, too. At some stores the reason the customers don't come back is because of the people.

Making your store a great place to work drives all those other important things listed above. Happy employees create more sales. Happy employees want to grow and develop and make a greater contribution to the store. Happy employees are less likely to steal. Happy employees create loyal customer advocates who keep coming back and tell others about your store. And last but not least, happy employees deliver great shopping experiences that result in happy customers. Everyone's happy!

So why don't more owners and managers make this the most important thing they do? For some it's because they don't know they should or don't know how. For many it's because creating a great place to work takes hard work. As today's quote says, "The dictionary is the only place where success comes before work." Then again, in both your store and the dictionary, happy and employees come before profits.

So let me ask, is your store a great place to work?

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

Doug Fleener, the author of the book The Profitable Retailer: 56 surprisingly simple and effective lessons to boost your sales and profits, is a veteran retailer with over 25 years of hands-on retail experience including owning his own specialty store. He is president and managing partner for Dynamic Experiences Group LLC, a retail and customer experience training and consulting firm that helps specialty retailers to maximize their in-store performance. Learn more at http://dynamicexperiencesgroup.com or call 781-861-7803.

Skepticism and Lost Opportunities

2009-06-17T08:10:56-04:00

Have you ever walked into a store and seen something on sale at an unbelievable price? If you're like most customers your first thought is, "Wow. This is great." But then it's immediately followed by, "And I wonder what's wrong with it?" Of course you're skeptical. You've been told ever since you were a child that if something sounds too good to be true then it probably is. You might be so skeptical that you end up passing on a great deal.

Customers are naturally skeptical. It's a defensive mechanism to keep from being taken advantage of or making a mistake. It can also keep customers from getting a great deal and doing business with a very good company.

Whether we know it or not, we lose sales to skepticism every day. One of the biggest challenges for independent retailers is overcoming customer's skepticism of the independent's prices. Most believe that an independent's prices are much higher than the big box or national chains even though that is not always the case.

Skepticism also impacts our ability to make sales. When products are marked down customers often think there must be something wrong with them, or at the very least are something nobody else wanted - so why should they? Customers are also skeptical of brands they've never heard of. That's always one of the biggest challenges when you bring on a new line in a segment where brand recognition is a key part of the decision-making process. You wouldn't think twice about buying a Canon camera but you can't say the same for a Danon camera.

The key to overcoming a skeptical customer is to proactively give them the necessary information to keep them from being skeptical. If an independent retailer prominently posts a sign telling shoppers about the price guarantee, the customer knows that this store is competitively priced, which may or may not be the case.

The same approach works with markdowns. If you're giving the customer a great deal you need to tell them why. A "50% Off Our Top Sellers" or "50% Off Spring Clearance" will always be more effective than just a "50%" sign by itself. When working one-on-one with a customer you should also explain why something is "such a good deal."

You might even be skeptical of this post, which of course proves my point. From time to time everyone is skeptical, and you'll sell more products and capture more customers if you're aware of that and take steps to proactively overcome it.

Take Five Exercise*
Brainstorm three reasons a customer could be skeptical while shopping in your store. Determine ways you can proactively overcome it.

* The Take Five Exercise is a new feature to stimulate conversation in your morning Take Five or store meetings and make it easier to put the Retail Contrarian into action.