Six Attributes of Leadership 28 July, 2010, 4:46 am
There are many attributes that extraordinary leaders have that good managers don't. Here are six that come to mind. 1. They don't have to have the answer. Early in my management career I thought that being in charge meant I had to have all of the answers to any issue or problem that arose. I learned over time that it's my role as a leader to ensure issues and problems are solved, but that by no means do solutions have to come from me. Most of the time the solution to a problem should come from those closest to the problem itself. 2. They seek out other viewpoints even if they differ from their own. Life is a lot easier if everyone around you, especially your employees, agrees with your ideas and opinions. However, you're not always right, and sometimes other people's ideas and opinions create an even better result then would have been reached if the matter had been left up to you. One of the most powerful questions a leader can ask is, "What do you think?" It's even more effective when you ask before you share your own opinion. 3. They're always teaching. Managers usually tell but will teach when they have to. Leaders usually teach but tell when they have to. Nothing develops an employee faster and makes a greater impact than leaders taking advantage of teachable moments. There are many teachable moments in a day but we're usually too busy to see them and way too busy to take advantage of them. Teachable moments take more time but the return on investment is huge. Never miss the chance to invest wisely. 4. They repeat themselves. A lot. Imagine if your parents had only told you once to wash your hands before eating. Repetition is not only a key element of learning, it helps position those things that are most important to your success. If the customer experience is vital to your business then you can't afford to only talk about it once a year at a company meeting. It's a vitally important subject that needs to be brought up again and again. 5. They constantly give employees direct and constructive feedback. I estimate that somewhere around 20% of all managers are really good at giving employees direct and constructive feedback, but that 80% of managers think they are. When companies reduce that performance gap in their managers they're able to improve employee productivity and the overall working environment. I recommend you read the article at the end of this Daily if you're in the 80% and not the 20% 6. They encourage the heart. Employees are more committed to the company and the customer when they know their efforts are recognized and appreciated by their manager and others in the company. It's amazing how much mileage a leader gets out of saying things like "thank you," "great job," "we appreciate you," "thanks for working here," etc. I know I've written about these last two over and over - but that just proves point #4. So let me ask, are you displaying these extraordinary leadership attributes?
A Five-Star Experience 20 July, 2010, 6:49 pm
Last week I spent a few days at a terrific hotel in Dallas. The Rosewood Crescent Hotel is a luxury hotel located in downtown Dallas. The property was fantastic and the rooms were very well appointed, but it was the staff that stood out the most. Every employee was pleasant, attentive, and never missed the opportunity to call a guest by his/her name. Even the housekeepers called me by name while cleaning my room or delivering ice in the evenings. I wish every hotel delivered this level of experience. Some might say that of course you should assume this level of experience from a five-star hotel. True, but just because you expect a high level of experience doesn't mean you'll always receive it. The experience isn't excellent because it's a five-star hotel; this is a five-star hotel because of the experience guests have of the environment and the outstanding staff. As a matter of fact the Rosewood Corporation says on their website they believe that world-class status is only achieved when a hotel combines the traditions of its host community with exceptional service, a luxury product and incredible attention to detail. Here are some things you and your team can do today to deliver your own five-star experience. 1. The customer and his/her experience is always your first and only priority. It doesn't mean that other activities aren't important to the store operation, but nothing is more important than customers and their experience. Here's a great example. One afternoon while working in my room three housekeepers came in to clean. Their primary responsibility was to clean the room, but the priority was to not disturb me. They talked quietly so as not to disturb me, and they asked if they could run the vacuum cleaner. 2. Never miss a chance to personalize the experience. When those housekeepers knocked on the door of my room they were prepared to call me by name, even though most rooms aren't occupied when they knock on the door. Even if you don't know your customer's name there is always an opportunity to personalize their experience. When you engage with purpose you'll always learn something about your customer you can then use to personalize the experience. Then again, if you ask your customer's name you'll be able to use it. 3. Actively anticipate your customer's needs. When I checked out the front desk clerk asked if I needed a valet to get my car or hail a cab. I did indeed need a cab. The desk clerk called the bellhop to hail a cab so it was ready when he completed checking me out. It's a small and pretty simple detail, but something very few hotels do proactively. When I walked outside the bellhop said, "Your cab is ready, Mr. Fleener." (See #2.) 4.The experience - and the difference - are in the details. No detail is too small to manage in a five-store hotel. The same holds true in delivering a five-star retail experience. It doesn't matter what products you sell or at what price point, a luxury five-star retail experience is the result of extraordinary people striving to be amazing. Only stores that strive for perfection gets anywhere near it. Most stores fall far short and as a result can best be described as "average" or even "mediocre," which is of course good news for you. Managing the fine details in a store and the customer's experience isn't really that difficult, but making sure that everyone in your store has the desire and focus to do so is. Do you? So let me ask, how many stars will your store deliver today?
A Five-Star Experience 20 July, 2010, 6:49 pm
Last week I spent a few days at a terrific hotel in Dallas. The Rosewood Crescent Hotel is a luxury hotel located in downtown Dallas. The property was fantastic and the rooms were very well appointed, but it was the staff that stood out the most. Every employee was pleasant, attentive, and never missed the opportunity to call a guest by his/her name. Even the housekeepers called me by name while cleaning my room or delivering ice in the evenings. I wish every hotel delivered this level of experience. Some might say that of course you should assume this level of experience from a five-star hotel. True, but just because you expect a high level of experience doesn't mean you'll always receive it. The experience isn't excellent because it's a five-star hotel; this is a five-star hotel because of the experience guests have of the environment and the outstanding staff. As a matter of fact the Rosewood Corporation says on their website they believe that world-class status is only achieved when a hotel combines the traditions of its host community with exceptional service, a luxury product and incredible attention to detail. Here are some things you and your team can do today to deliver your own five-star experience. 1. The customer and his/her experience is always your first and only priority. It doesn't mean that other activities aren't important to the store operation, but nothing is more important than customers and their experience. Here's a great example. One afternoon while working in my room three housekeepers came in to clean. Their primary responsibility was to clean the room, but the priority was to not disturb me. They talked quietly so as not to disturb me, and they asked if they could run the vacuum cleaner. 2. Never miss a chance to personalize the experience. When those housekeepers knocked on the door of my room they were prepared to call me by name, even though most rooms aren't occupied when they knock on the door. Even if you don't know your customer's name there is always an opportunity to personalize their experience. When you engage with purpose you'll always learn something about your customer you can then use to personalize the experience. Then again, if you ask your customer's name you'll be able to use it. 3. Actively anticipate your customer's needs. When I checked out the front desk clerk asked if I needed a valet to get my car or hail a cab. I did indeed need a cab. The desk clerk called the bellhop to hail a cab so it was ready when he completed checking me out. It's a small and pretty simple detail, but something very few hotels do proactively. When I walked outside the bellhop said, "Your cab is ready, Mr. Fleener." (See #2.) 4.The experience - and the difference - are in the details. No detail is too small to manage in a five-store hotel. The same holds true in delivering a five-star retail experience. It doesn't matter what products you sell or at what price point, a luxury five-star retail experience is the result of extraordinary people striving to be amazing. Only stores that strive for perfection gets anywhere near it. Most stores fall far short and as a result can best be described as "average" or even "mediocre," which is of course good news for you. Managing the fine details in a store and the customer's experience isn't really that difficult, but making sure that everyone in your store has the desire and focus to do so is. Do you? So let me ask, how many stars will your store deliver today?
The 2010 Birthday Edition 14 July, 2010, 6:46 pm
On Sunday I turned 52, which frankly blows my mind. It didn't seem that long ago I couldn't wait to drive a car, get in a bar, or get an AARP card. Oh wait, that last one I wasn't waiting for. In keeping with my annual tradition, here are 52 things I've learned so far. While most of these are new, you may recall some from last year. 1. Success comes from doing things, not thinking about doing things. You have to take action if you want to grow your business. 2. Never be too proud to ask for help. 3. Simplicity is a competitive advantage. Most people overcomplicate things. 4. The more improvements you make to get closer to your customer, the more successful you'll be. 5. Never miss the opportunity to not say something. 6. Never miss the opportunity to say something. 7. Seek the wisdom to know the difference. 8. It's good karma to help someone when they ask for it. It's even better karma to help without being asked. 9. Never be too busy to think and plan. 10. Coaching and developing people has a huge impact on results. I wish more people made it a priority. 11. Gossip has a huge impact on teams and ultimately their results. I wish more people didn't do it. 12. I can't control what others hear but I do control what I say. 13. I'm far from perfect but that's okay, since I'm just trying to achieve progress. 14. Fun is strategic competitive advantage for specialty retailers. 15. It takes a lot of work to have fun at work. 16. Remove energy-suckers and negative people from your life. 17. The line between confidence and arrogance is remaining teachable. 18. Keeping work and life in balance is about making the right choices. 19. If you don't believe you have the power to make that choice you should make a change in your life. 20. Holding on to resentments is a total waste of energy. Let it go. 21. Writing down your business and/or personal goals increases your chances of achieving them. 22. Don't envy more successful people. Learn what they do and then do it your way. 23. Just because you've always done it doesn't mean you should continue. 24. Then again maybe you should. They key is to know why you're doing it. 25. Listen to the advice others give you. 26. Listen even more to the advice you give others. 27. The more you believe people have good intentions the more you'll see it in them. 28. Time is one of the most important assets you have. Don't waste it. 29. If your staff is one of your greatest assets them your actions need to convey that. 30. I doubt I knew any of these things before I was 30. 31. People aren't mind readers. We have to say what we believe others need to hear. 32. Saint Francis got it right when he said it is better to understand than being understood. The first leads to the second. 33. The very essence of business is trading value for value. Too many people want to receive more value than they offer. 34. Being more interested in the person than in making a sale leads to more and bigger sales. 35. Technology can either save or cost you time. Know which is which. 36. You don't have to believe or agree with everything you read, but you can always use it as a basis to form your own ideas and opinions. That's the entire philosophy behind the Daily. 37. 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. 38. This writing down what you've learned and your thoughts is a great exercise that everyone should do once a year. 39. The only person or thing that can hold me back is me. 40. We all need mentors in life. Do you have one? More important, are you using that person to challenge your thinking and assumptions? 41. Do what's best for the customer - unless you no longer want that customer. 42. Manners matter. Always say, "thank you," "please," and "you're welcome." Expect the same from your staff and your children. 43. Love and value your friends and family. You never know when your time together will end. I miss those I've lost. 44. Be grateful. Demonstrate it with both words and actions. 45. Passion trumps knowledge and skill. Never try to cover a lack of knowledge and skill with passion. 46. Here's a formula for success. Add your experiences of the past with what you've learned today to make a better tomorrow. 47. In retail we should hire on attitude and personality and then teach skills and product knowledge. You can't teach someone to have a personality. 48. Never hire someone unless you're incredibly excited about hiring him/her. 49. It's important to articulate your expectations to your staff. It's even more important to measure and report on them. 50. If you're not happy with an employee's performance you need to tell him/her. The same holds true if you are happy with an employee's performance. 51. If people don't agree with your business approach they'll never execute it to the level you want. 52. Never believe someone is too old or too young to teach you something. We can learn something from anyone and anything if we're teachable. 53. Always go above and beyond in everything you do, especially when it is for others. Thank you for sharing another year with me. I appreciate your support and your reading The Retail Contrarian. Have a great week.
The 2010 Birthday Edition 14 July, 2010, 3:15 pm
n Sunday I turned 52, which frankly blows my mind. It didn't seem that long ago I couldn't wait to drive a car, get in a bar, or get an AARP card. Oh wait, that last one I wasn't waiting for. In keeping with my annual tradition, here are 52 things I've learned so far. While most of these are new, you may recall some from last year. 1. Success comes from doing things, not thinking about doing things. You have to take action if you want to grow your business. 2. Never be too proud to ask for help. 3. Simplicity is a competitive advantage. Most people overcomplicate things. 4. The more improvements you make to get closer to your customer, the more successful you'll be. 5. Never miss the opportunity to not say something. 6. Never miss the opportunity to say something. 7. Seek the wisdom to know the difference. 8. It's good karma to help someone when they ask for it. It's even better karma to help without being asked. 9. Never be too busy to think and plan. 10. Coaching and developing people has a huge impact on results. I wish more people made it a priority. 11. Gossip has a huge impact on teams and ultimately their results. I wish more people didn't do it. 12. I can't control what others hear but I do control what I say. 13. I'm far from perfect but that's okay, since I'm just trying to achieve progress. 14. Fun is strategic competitive advantage for specialty retailers. 15. It takes a lot of work to have fun at work. 16. Remove energy-suckers and negative people from your life. 17. The line between confidence and arrogance is remaining teachable. 18. Keeping work and life in balance is about making the right choices. 19. If you don't believe you have the power to make that choice you should make a change in your life. 20. Holding on to resentments is a total waste of energy. Let it go. 21. Writing down your business and/or personal goals increases your chances of achieving them. 22. Don't envy more successful people. Learn what they do and then do it your way. 23. Just because you've always done it doesn't mean you should continue. 24. Then again maybe you should. They key is to know why you're doing it. 25. Listen to the advice others give you. 26. Listen even more to the advice you give others. 27. The more you believe people have good intentions the more you'll see it in them. 28. Time is one of the most important assets you have. Don't waste it. 29. If your staff is one of your greatest assets them your actions need to convey that. 30. I doubt I knew any of these things before I was 30. 31. People aren't mind readers. We have to say what we believe others need to hear. 32. Saint Francis got it right when he said it is better to understand than being understood. The first leads to the second. 33. The very essence of business is trading value for value. Too many people want to receive more value than they offer. 34. Being more interested in the person than in making a sale leads to more and bigger sales. 35. Technology can either save or cost you time. Know which is which. 36. You don't have to believe or agree with everything you read, but you can always use it as a basis to form your own ideas and opinions. That's the entire philosophy behind the Daily. 37. 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. 38. This writing down what you've learned and your thoughts is a great exercise that everyone should do once a year. 39. The only person or thing that can hold me back is me. 40. We all need mentors in life. Do you have one? More important, are you using that person to challenge your thinking and assumptions? 41. Do what's best for the customer - unless you no longer want that customer. 42. Manners matter. Always say, "thank you," "please," and "you're welcome." Expect the same from your staff and your children. 43. Love and value your friends and family. You never know when your time together will end. I miss those I've lost. 44. Be grateful. Demonstrate it with both words and actions. 45. Passion trumps knowledge and skill. Never try to cover a lack of knowledge and skill with passion. 46. Here's a formula for success. Add your experiences of the past with what you've learned today to make a better tomorrow. 47. In retail we should hire on attitude and personality and then teach skills and product knowledge. You can't teach someone to have a personality. 48. Never hire someone unless you're incredibly excited about hiring him/her. 49. It's important to articulate your expectations to your staff. It's even more important to measure and report on them. 50. If you're not happy with an employee's performance you need to tell him/her. The same holds true if you are happy with an employee's performance. 51. If people don't agree with your business approach they'll never execute it to the level you want. 52. Never believe someone is too old or too young to teach you something. We can learn something from anyone and anything if we're teachable. 53. Always go above and beyond in everything you do, especially when it is for others. Thank you for sharing another year with me. I appreciate your support and your reading The Retail Contrarian. Have a great week.
You Won't Believe This and Other Musings 8 July, 2010, 6:53 am
One of our readers was shopping in what she describes as a nice clothing/gift store in Texas when she noticed an employee wearing a rather unique necklace. She even got the employee to pose for a picture. (I've blurred out the young woman's face for privacy reasons.)
That's right, this retail salesperson is wearing a necklace that says "You Suck." Is that unbelievable or what? But wait, there's more. When Diana told the woman she found the necklace offensive the employee said she could have worn another one that includes the F word. Alrighty! If anything it makes you appreciate your staff even more! Unbelievable.--------------- In last week's Time magazine, novelist James Patterson is asked what he would say to critics like author Stephen King who say that Patterson is not a great prose stylist. Patterson replies, "I am not a great prose stylist. I'm a storyteller. There are thousands of people who don't like what I do. Fortunately, there are millions who do." I love it. A lot of retailers want everyone to love their store. They want every customer to think their products are fabulous and their staff is incredible, and they're practically offended when someone doesn't absolutely love the store. Trying to be all things to all people is a path to mediocrity. We'll always find more success in being an extraordinary retailer to a targeted group of customers than being an average retailer to everyone. I know it's hard to miss sales and see customers walk out empty-handed, but you have to remind yourself they're not your customers. ---------------Shooting video for your Facebook page is easier than you think. Watch this two-minute video to learn how.
The total time to produce this video was less than 15 minutes. It only took a few minutes to shoot and about ten minutes to load on to the computer and upload to YouTube. After that, it's a simple link on your Facebook page. Is the video perfect? Of course not. There's a lot I would change including the road noise. But you don't need a perfect video. When you shoot video in the store it's okay that you can hear customers and employees. While I wouldn't put something I shot in one take with no editing on my homepage, but for the purpose of engaging your Facebook fans, it's fine. You can learn about the Kodak Zi8 Pocket Video Camera I used to shoot the video here.---------------Apropos of nothing: 1) Unless you're a mind reader, you need to ask your customer or employee what they're thinking or if they like something. Anything else is an assumption that may or may not be correct. 2) I still don't get why more companies aren't green, or don't display their green initiatives. I bet fewer than 10% of the hotels I stay in have recycle bins in rooms. Show your green! 3) Trying to complete a sale by lying to the customer about how many of a particular item is in stock is just wrong. 4) When's the last time you watched - really watched - your customer traffic patterns in the store? Sometimes our primary displays aren't in the primary position. 5) Will free Wi-Fi at Starbucks be a good thing or a bad thing? I guess it will depend on whether or not you have a table or not. 6) I just spent a few days in Times Square. Anyone who can run one of those stores is a retail hero in my book. 7) I wonder where one buys a necklace like that? Have a great week! - Doug Fleener
You Won't Believe This and Other Musings 8 July, 2010, 6:53 am
One of our readers was shopping in what she describes as a nice clothing/gift store in Texas when she noticed an employee wearing a rather unique necklace. She even got the employee to pose for a picture. (I've blurred out the young woman's face for privacy reasons.)
That's right, this retail salesperson is wearing a necklace that says "You Suck." Is that unbelievable or what? But wait, there's more. When Diana told the woman she found the necklace offensive the employee said she could have worn another one that includes the F word. Alrighty! If anything it makes you appreciate your staff even more! Unbelievable.--------------- In last week's Time magazine, novelist James Patterson is asked what he would say to critics like author Stephen King who say that Patterson is not a great prose stylist. Patterson replies, "I am not a great prose stylist. I'm a storyteller. There are thousands of people who don't like what I do. Fortunately, there are millions who do." I love it. A lot of retailers want everyone to love their store. They want every customer to think their products are fabulous and their staff is incredible, and they're practically offended when someone doesn't absolutely love the store. Trying to be all things to all people is a path to mediocrity. We'll always find more success in being an extraordinary retailer to a targeted group of customers than being an average retailer to everyone. I know it's hard to miss sales and see customers walk out empty-handed, but you have to remind yourself they're not your customers. ---------------Shooting video for your Facebook page is easier than you think. Watch this two-minute video to learn how.
The total time to produce this video was less than 15 minutes. It only took a few minutes to shoot and about ten minutes to load on to the computer and upload to YouTube. After that, it's a simple link on your Facebook page. Is the video perfect? Of course not. There's a lot I would change including the road noise. But you don't need a perfect video. When you shoot video in the store it's okay that you can hear customers and employees. While I wouldn't put something I shot in one take with no editing on my homepage, but for the purpose of engaging your Facebook fans, it's fine. You can learn about the Kodak Zi8 Pocket Video Camera I used to shoot the video here.---------------Apropos of nothing: 1) Unless you're a mind reader, you need to ask your customer or employee what they're thinking or if they like something. Anything else is an assumption that may or may not be correct. 2) I still don't get why more companies aren't green, or don't display their green initiatives. I bet fewer than 10% of the hotels I stay in have recycle bins in rooms. Show your green! 3) Trying to complete a sale by lying to the customer about how many of a particular item is in stock is just wrong. 4) When's the last time you watched - really watched - your customer traffic patterns in the store? Sometimes our primary displays aren't in the primary position. 5) Will free Wi-Fi at Starbucks be a good thing or a bad thing? I guess it will depend on whether or not you have a table or not. 6) I just spent a few days in Times Square. Anyone who can run one of those stores is a retail hero in my book. 7) I wonder where one buys a necklace like that? Have a great week! - Doug Fleener
Make It Unique 30 June, 2010, 2:20 pm
I recently asked a store employee to tell me the difference between three different brands of the same type of product. He answered, "They're all pretty similar. Take your pick." Of course I couldn't help but ask, "So why do you carry three different brands?" He said, "I don't know. I just work here." I bit my tongue and purchased the least expensive one. While it's easier to describe the unique quality of some products than others, just about everything you sell has something unique about it. Sometimes the uniqueness is a feature, sometimes a benefit, and sometimes it's the story behind a product. Here are a few reasons to share the unique qualities of a product. 1. You increase the perceived value of the product. A lot of customers will pay a premium if they understand why a product is priced higher. That means that retail associates must articulate that reason, and all too often they do not. A product that is not unique is just a commodity. Example: "Because this window cleaner uses an ammonia byproduct it requires 33% less effort to clean your windows. (feature and benefit) 2. It makes an emotional connection. Customers buy with both their head and their heart, and the heart is a bigger spender than the head. Connect the product uniqueness to the customer's heart and chances are you've made the sale. Example: "These delicious cheeses are made by a local farmer who only uses milk from cows that have been equipped with gas-catching devices that are much better for the environment. (benefit and story) 3. It creates the customer's story. Customers love to show their friends and families what they buy, and when they can include a story behind the product it makes it that much more special. Many of you are quite good at doing this, and most of you should be. Example: "These pictures frames are made from the South Pacific Monkey Tree and can only be harvested between four and six o'clock on a cloudy day. (story and feature) 4. It makes the product more memorable. I love when a customer comes back after looking at a product and says how they couldn't quit thinking about it. On the other end of the spectrum is when a customer comes back for something and they can't say what it is or even what it looks like. Sharing the uniqueness continues to sell the product even when the customer has left the store. 5. It increases conversion rates and ultimately sales. Need I say more? So let me ask, are you demonstrating and/or telling the customer what's unique about every product you're recommending. Here's a quick tip. In your Daily Take Five meetings today have everyone show two products and share what's unique about each one.
Make It Unique 30 June, 2010, 2:20 pm
I recently asked a store employee to tell me the difference between three different brands of the same type of product. He answered, "They're all pretty similar. Take your pick." Of course I couldn't help but ask, "So why do you carry three different brands?" He said, "I don't know. I just work here." I bit my tongue and purchased the least expensive one. While it's easier to describe the unique quality of some products than others, just about everything you sell has something unique about it. Sometimes the uniqueness is a feature, sometimes a benefit, and sometimes it's the story behind a product. Here are a few reasons to share the unique qualities of a product. 1. You increase the perceived value of the product. A lot of customers will pay a premium if they understand why a product is priced higher. That means that retail associates must articulate that reason, and all too often they do not. A product that is not unique is just a commodity. Example: "Because this window cleaner uses an ammonia byproduct it requires 33% less effort to clean your windows. (feature and benefit) 2. It makes an emotional connection. Customers buy with both their head and their heart, and the heart is a bigger spender than the head. Connect the product uniqueness to the customer's heart and chances are you've made the sale. Example: "These delicious cheeses are made by a local farmer who only uses milk from cows that have been equipped with gas-catching devices that are much better for the environment. (benefit and story) 3. It creates the customer's story. Customers love to show their friends and families what they buy, and when they can include a story behind the product it makes it that much more special. Many of you are quite good at doing this, and most of you should be. Example: "These pictures frames are made from the South Pacific Monkey Tree and can only be harvested between four and six o'clock on a cloudy day. (story and feature) 4. It makes the product more memorable. I love when a customer comes back after looking at a product and says how they couldn't quit thinking about it. On the other end of the spectrum is when a customer comes back for something and they can't say what it is or even what it looks like. Sharing the uniqueness continues to sell the product even when the customer has left the store. 5. It increases conversion rates and ultimately sales. Need I say more? So let me ask, are you demonstrating and/or telling the customer what's unique about every product you're recommending. Here's a quick tip. In your Daily Take Five meetings today have everyone show two products and share what's unique about each one.
Indie Owner Jones and the Raiders of Retail 23 June, 2010, 3:06 am
In the movie Raiders of the Lost Ark, archeology professor Indiana Jones is recruited to find The Ark of the Covenant, a biblical artifact believed to carry powerful energy and, possibly, hold the key to human existence. If you've seen the movie you know that he has to overcome a plethora of challenges, and that's just in the first half hour. As the owners of independent stores, you too must use powerful energy to overcome the challenges in your quest for sales, profits, and financial security. Presumably you don't have to deal with evil people, snakes and large boulders in your pursuit, but you do have to overcome an ever-changing market, new technologies, national competitors and more. (This also applies to all managers, so please read on.) Here are ten tips for you to consider in your retail journey: 1. Hire extraordinary people who want to be part of an extraordinary team. Every day it's a battle for customers, sales, and market share, and you want and need the best team you can get. Refuse to buy into everyone else's beliefs that it's hard to find good people to work retail. There are plenty of Raiders out there, but you have to go find them since most of them are not walking into your store. 2. Share your bounties. Most independent retailers say they can't afford to pay their employees at competitive rates. I agree. They can't afford to if they're going to have an extraordinary team. I believe they need to pay above market, which should include a variable element so employees are rewarded for store success. 3. Stay current. As an indie retailer you should have a great website, an active presence on Facebook, manage your Yelp account and other feedback sites, and regularly communicate electronically with your customers. Some retailers will need to start to Tweet more, use more online video, and using or testing Foursquare. Don't do any of these until you've done the first list. 4. Stay fresh. Regularly update primary displays. Give your walls a fresh coat of paint. Keep finding new and exciting products and lines nobody else has. Boring is death to the independent retailer 5. Work with other Raiders. Find vendors and supplies committed to helping independent retailers succeed. That doesn't mean they don't sell their products elsewhere, but they give you the tools and opportunities to compete. If they don't, consider dumping them. 6. Embrace the database. In the past your most valuable asset was your product inventory, but today it's your inventory of customers. There are too many companies out there vying for your customer's attention and business for you not to put great effort into creating long-term on-going relationships with your customer. 7. Leverage your people. Use your staff beyond the floor. You don't have to run your Facebook page yourself; you can assign it one of your younger employees. No, you're not giving up control or letting the staff decide how customers are engaged online. You're tapping into the power and skills of your extraordinary team. Everyone on your team should own something. 8. Stop procrastinating. If you know you need to do something then either find the time, find someone else to do it, or drop it and move on. It's incredibly sad and frustrating when I talk to retailers who are going under and they keep telling me about all of the things they meant to do. 9. Focus on selling. I always remind my audiences that we're in the business of selling. If customers are buying - we're selling. Selling your wonderful products to people is a fabulous thing. Bugging people in your store and trying to push products isn't. They're not the same and it's important for your people to understand that, and that starts with you. 10. Be bold. Try a lot of things and keep what works. You may not have to dodge boulders the way Indiana Jones did but there are plenty of other obstacles that will mow you over if you're not moving forward. 11. Always go above and beyond for your employees and customers. It's truly what separates the Raiders from the rest. How about it, Indie Owner? Are you ready for this year's retail adventure?
Fries with That? 23 July, 2010, 4:00 am
The relentless march of the add-on sale… Seems I can’t approach a check out these days without the inevitable question coming up: “Would you like something else with that?” I understand the logic here of trying not to leave any stone unturned, of making sure every customer is truly satisfied, but the phenomenon has gotten so out of control that we seem to have lost our way just a little. It's one thing to truly offer the customer something they need, which they haven’t thought of, and I’m a big fan of the impulse items at the end of our shopping trip. But unless this last step is a little more nuanced, it’s at best annoying and, at worst, it feels kind of desperate--the retail equivalent of giving someone your number at the end of a date when they didn’t ask for it. I’ve thought of a multitude of responses to these kinds of questions over the years, but not many have made it past my lips. Just the other day, I was asked, “Is that all for you today?” "Yes, that’s why I am at the check out." Then “Did you find everything you were looking for today?” What kind of response do you give to this? “Well, I did wake up this morning wondering what my higher purpose in life was, but I don’t suppose you have that do you?” Even more perplexing was that this question was leveled at me by a man with a purple mohawk in a miniscule gas station convenience store in which the loo seemed to be bigger than the sales area. I was fairly convinced I could have found everything I was looking for in his paltry selection blindfolded. But, the best recent example came just last night, when arriving at the check out of my local pharmacy with two sticks of deodorant. The lady behind the counter yawned through her requisite “Do you want something else with that?” routine, but something in the moment made me pause and hold off on my usual grunt of “No thanks.” Perhaps I’d reached my limit; perhaps it was the fact that I was curious as to the add-on for a brace of underarm scent. Whatever the reason, I had to ask, “What did you have in mind?” It was clearly not a response she was used to. But I wondered, if she’d been given the tools she required, maybe this was going to be one of those moments when I would never again reject the kind offer of a truly relevant add-on sale. I waited with baited breath in the midst of a pregnant pause and a soundtrack of a muzak-version of Journey. And as our eyes locked over the wireframe tower of Listerine Pocket Packs between us, she thought for a moment before issuing her response in a breathless whisper. “Cookies?”--Christian Davies, Guest Blogger
Dunkin' Donuts Dives Into Mixology 20 July, 2010, 8:31 am
If you ever visit Portland, Ore., be sure to hit up the Teardrop Lounge, a spot known for its creative team of mixologists capable of creating a host of fruity, oaky and/or salty beverages. Mixology is truly an art. So, when I read that Dunkin' Donuts added the “fine art of mixology” to its menu, I was a bit taken aback. Did they recently receive their liquor license? It seemed a little off the mark with its existing product line, but anything is possible. Come to find out, the big DD was adding its own rebranding efforts to the term mixology with its Coolatta frozen slush drinks - which do not contain any alcohol - but I sense might be nicely paired with rum. These slushy summertime drinks come in a variety of flavors: blue raspberry (this cannot be good for your tongue), coffee & vanilla bean, watermelon & strawberry and Tropicana orange & vanilla bean.
In addition, DD is putting out the call via Twitter to mixologists to submit recommendations for unofficial names of each of the new Coolatta mixes. When folks use hashtag #DDMIX with their drink name suggestion they’re eligible to win a $60 gift card (at $2.29 each, that’s a lot of Coolattas). Personally, I think someone needs to recommend a new name for the slushies. Coolatta? Really? That’s the best the marketing department could do? There have to be other options. And to take the “cool” factor one step further, DD created its own custom music station on Pandora, Keep It Coolatta 2: Flavor Boogaloo. Oh boy. Customers are recommending songs inspired by the Coolattas. If these slushies are good enough to inspire songs, I have to try one. Bring the DD back to Oregon! In the meantime, you can check out these new mixology drinks and let us know how they match up. And feel free to comment with any suggestions for rebranding the Coolatta name. Am I the only one convinced there must be better options? Talk to me! --Heather Strang
Europe Moves In On U.S. Online Shopping 15 July, 2010, 7:06 am
For some strange reason, it always seems like Europeans do
everything so much cooler than us here in the states. Have you ever noticed
this? Whether it’s American Idol or British comedy (wait, didn’t we do those
better? I suppose it’s debatable…), it seems like they’re edgier, and let’s
face it, more fun. Maybe it’s the accent, I can't be entirely sure.
And so, the Europeans are coming yet again with the launch
of Kelkoo.com for the United
States. According to a release from Kelkoo,
the new site will offer access to more than 2 million products from more than
1,500 online retailers – including 19 of the top 25. By the end of 2010, the
site anticipates offering more than 5 million products from 5,000 retailers.
Currently, the site receives close to 1 million visits per
month, resulting in £127.7 billion in sales. And if there’s one thing Americans
know how to do its shop - with a reported $156 billion in online sales in 2009, which obviously presents a rich market for Kelkoo.
While the site will continue to be hosted in Europe, it will include shipping and tax calculators for
ease of shopping here in the states. To
me, Kelkoo.com seems a lot like Travelocity.com for retail. I do love plugging
in dates/locations and having Travelocity find the right flight for me. Now, I
can go to Kelkoo.com and have it find just the right products.
Will Kelkoo.com be the hottest retail shopping portal yet?
It will be interesting to see what comes of it. I still prefer to shop
in-store, but for online shopping junkies Kelkoo.com may provide the perfect
fix.
What’s your take on the European’s bringing Kelkoo to the U.S. market?
Will you use it? Tell us about it here!
--Heather Strang
Tell Us Your Best Places to Shop 7 July, 2010, 4:11 pm
Consumer Reports is really good at what they do. However, I
tend to tire of reading endless survey results in the hopes that somehow I’ll
have a true understanding of what consumers think and feel about retail. So,
when I saw the most recent research on the “best places to shop for everything”
I decided to encourage Retail Design Diva readers to weigh in with their (i.e., your) fave
spots.
To give ourselves perimeters, we’ll narrow the focus to the best
in chain stores. I love Annie’s boutique with its indie music and kitschy
design, but today we’re keeping the conversation focused on the big retailers.
Surprisingly, the Consumer Reports survey found that
Wal-Mart and Kmart weren’t as revered as they expected, but Costco, Dillard’s
and Macy’s did very well. For this retail diva, Target always takes the cake. I
absolutely love it. If you want to get me something for my birthday, Christmas
or just because (I mean, who doesn’t send their favorite blogger gift cards?!)
– make it a Target card. Why? I can get everything I could ever possibly want
there, at a reasonable price and a moderate quality level. Note: To be clear, I
do value quality, but typically for expenditures like travel or the dress that
will cause my ex to fall over. I would guesstimate that roughly 50 percent of
everything I buy comes from Target.
Wrong? Maybe, but I can’t help who I love. Can you? Where do you find the best value when it comes to
retail chains? Leave your nominations here. Let’s show Consumer Reports what’s
up.
-Heather Strang
Wave of the Future: Shopping Via Phone? 2 July, 2010, 4:00 am
Apple is all about innovation. At least that’s what they
keep telling us. From iPad to iPod, from iPhone to apps, the computer/software/retail
giant just keeps on growing. Recently, Apple introduced a new app that left me
wondering if it might be innovating itself right out of the need for retail
stores.
The Apple Store app was released mid-June and lets customers
purchase Apple products from their phone or iPod touch. Customers can shop the
full selection of products and accessories, receive Apple product news, read
customer reviews and receive answers to product questions.
As a lover of retail and a believer in the store experience,
I’m not so sure I’m with Apple on this one. Now, they do include options in the
app to make reservations for tech support or workshops, as well as personal
shopping appointments and “personal training sessions” through its One-to-One
program (where a Mac trainer supports users in the application of computers,
software, etc.). That’s a nice way to encourage folks to still utilize the
retail stores.
But if other retailers follow suit - which they’re sure to
do since Apple is often the leader with these types of things - are retailers
in danger of making accessibility too accessible? Personally, I’ll always want
to go into a store to experience the product and interact with the culture of
the retailer. But will super iPhone addicts feel the same? While there’s no way
to predict the future, I’m going to keep my eye on this. Yes, Apple is hip and
convenience is important, but is there a possibility of going too far? This
retail blogger is beginning to wonder…
What are your thoughts? Tell us about it here!
--Heather Strang
Seen And Heard: Part Deux 30 June, 2010, 7:43 am
This is line for line, word for word, a direct transcript of a recent conversation as seen and heard at Abercrombie & Fitch on Fifth Avenue. I call it, “WHY TEENAGERS REALLY SHOP.” REAL BLONDE: Oh my God, look at this! (Points to two-tiered table) FAKE BLONDE: What? REAL BLONDE: This! (Holds up abbreviated plaid western style shirt) FAKE BLONDE: This? REAL BLONDE: Yeah. FAKE BLONDE: They’re totally hot. REAL BLONDE: It’s like $64...on sale! FAKE BLONDE: Like, for real? REAL BLONDE: *%$#! I hate this store, it’s such a rip-off. FAKE BLONDE: My mom says I can get a job at the one in the Paramus Mall when I’m a senior. REAL BLONDE: You know you have to be a model. FAKE BLONDE: Why are we here? I’m tired. I’m so over…. REAL BLONDE: …This is sick!. (Points to jeans cut to pieces) FAKE BLONDE: I love those. REAL BLONDE: Mandy has a pair... FAKE BLONDE: Mandy has everything! REAL BLONDE: She’s such a *%$# FAKE BLONDE: I hate her. She was born out of wedlock. REAL BLONDE: Duh! I hate her too. I can’t believe we used to be best friends. FAKE BLONDE: She is so lame…she plays the tuba. REAL BLONDE: For real? FAKE BLONDE: Not. REAL BLONDE: (Looks at cute boy folding A&F polos) I love his hair. Take his picture…please!!!!! FAKE BLONDE: Go talk to him. REAL BLONDE: You think? FAKE BLONDE: That’s what he’s paid for. Why are we here? It’s so freakin’ cold!!! REAL BLONDE: No one is talking to us. (Refers to pack of boys in board shorts and t-shirts goofing off) What about them? FAKE BLONDE: They look like stuck-up. I need to buy something. Pay attention. REAL BLONDE: Why? FAKE BLONDE: So I can get a bag…hello? REAL BLONDE: Just ask for one. FAKE BLONDE: Yeah, like they just hand out bags. Get real!--Ron Knoth, Guest Blogger
Preparing for Christmas? Toys “R” Us Is 24 June, 2010, 7:04 am
Summer is barely underway. As the Northeast broils under
high temperatures, the West Coast impatiently awaits summer weather. And in Wayne, N.J., the execs at Toys “R” Us are hard at work on a…Christmas shopping program. What?
Seems a bit out of whack, right? Maybe not.
Toys “R” Us has developed a fascinating Christmas shopping
program to help families prepare for one of the biggest holidays of the year.
With the Christmas Savers Club, shoppers can set aside money for the holiday
early. As an added bonus, customers receive a 3 percent surplus based on
the total funds they save. Up to $2,500 can be saved on any one card, and with
the 3 percent bonus, an additional $75 can be added. The club card (sound familiar?)
is available now through Oct. 16, 2010, and never expires. As an added
feature, the cards can be used at any Toys “R” Us and Babies “R” Us stores throughout
the United States,
in addition to orders placed on either store Web site.
The new savings promotion feels a lot like a ramped up
layaway program with an added rewards bonus. Not a bad deal. But, is anyone
thinking about Christmas right now? Well it is less than six months away!
Although it may be difficult to start dreaming of a white
Christmas now, Toys “R” Us seems to be ahead of the game by offering customers
a savings program with benefits. My only question is whether consumers
are thinking this far in advance about the holiday season. It hadn’t even
occurred to me to think about Christmas until I discovered this promotion.
What’s your take on the Toys “R” Us Christmas Savers Club?
Is it too early? Right on track? Or do you know other retailers prepping for
the holiday season now? Tell us about it here!
--Heather Strang
Seen and Heard 22 June, 2010, 11:25 am
This is line for line, word for word, a direct transcript of a recent conversation as seen and heard at Gracious Homes, on the Upper West Side of Manhattan. SALESPERSON: Can I help you? CUSTOMER: No one can help me. I have to make up my mind. Usually, I’m a good decision maker, I know just what I want, but today I just don’t know. I just have no confidence . SALESPERSON: Well, if you need help I’ll be right over there (points towards lampshades). CUSTOMER: So you’re going to leave me, just like that? SALESPERSON: No madam, I… CUSTOMER: Madam? Do I look like a madam? SALESPERSON: No, mad…no…what is it you’re looking for? CUSTOMER: I’m here, in towels, isn’t it obvious? SALESPERSON: These are new. The color is butterscotch. Isn’t it dreamy? CUSTOMER: Yuck! Butterscotch! I’m not a butterscotch person, I’m looking for turquoise, and I don’t see anything turquoise in this entire store. I was already in Bed, Bath & Beyond, and Layton’s, which was a madhouse, and all over Macy’s, which is always a nightmare, and I had a 10% off coupon, and no one has anything turquoise, what’s the deal? It’s like there’s a conspiracy… SALESPERSON: …There’s no conspiracy. I can order you turquoise, but it will take six to eight weeks to come in. How about an accent color? CUSTOMER: No it has to be turquoise, I already repainted. Eight weeks, that really means three months. I’m so frustrated. I’m ready to cry. SALESPERSON: (Under his breath) Tissues are in aisle three, upstairs. How about teal? Teal and turquoise is nice. CUSTOMER: Are nice. I use to teach English. I don’t want to rub a teal towel around by body when I get out of the tub. Would you? Would anyone? No wonder you have a pile of them. What do you think about these (she holds up a red towel)? SALESPERSON: Red and turquoise? It’s too Pee-Wee's Playhouse. How about ivory or white, that goes with everything. CUSTOMER: I already have white. White is so blaa! I’m not a blaa person. Can’t you tell? SALESPERSON: I know you’re turquoise. How about… no... no…forget it... CUSTOMER: What were you’re going to say? SALESPERSON: This is called “cerulean mist,” but it’s really closer to aqua, its very Santé Fe. CUSTOMER: Santé Fe, that’s sort of '80s Golden Girls, don’t you think? I don’t know... maybe… no…it’s not me. SALESPERSON: I just sold a set to Kelli Ripa. CUSTOMER: Kelli Ripa? Hmm. I love Mark Consuelo. He’s so cute. I wouldn’t mind having the same towels as him. SALESPERSON: And last week, I almost sold a set to Dr. Oz’s wife…what’s her name?CUSTOMER: Lisa Oz? Okay, you sold me…”cerulean mist.” Now can you help me in shower curtains? SALESPERSON: That’s not my department. Mark! Can you help a customer in shower curtains?--Ron Knoth, Guest Blogger
Is Less Really More? 17 June, 2010, 7:55 am
My sister wanted her birthday to be special, so she threw a
party at one of the top wine bars and bistros in the city. Upon reviewing the
menu, I was discouraged to find only a handful of offerings. It was one of the
smallest menus I had ever seen. With a host of food allergies, this did not
bode well for me. And while the atmosphere was off the charts, I won’t return
to said spot for anything more than a glass of wine.
So, what’s the point of this less than interesting story? (I do have a point, I promise.)
Reduced offerings equal reduced customers. At a recent
Nielsen Co. conference, the very same (well not exactly the same)
information was also released. More than half of consumers reportedly assert they
are likely to shop elsewhere if they notice a reduced product selection. In
addition, nearly half of retailers have indicated they do plan to decrease
product offerings. Yikes. This may not work out.
Or will it? Only 7 percent of consumers have noticed a
reduction in selection, even though 42 percent of retailers have made roughly a 1 percent cut to assortments. And the 2010-2011 year seems to call for more
retail reductions.
Could there be a benefit to consumers from all this
downsizing? To be honest, it seems highly likely. The reductions mean retailers
will be more strategic about the products they do offer. And less really is
more these days. That shee-shee restaurant couldn’t provide the top ingredients
(including fresh veggies from its rooftop garden) if it had a menu like Red
Robin’s (which c’mon, a whole page of burgers is far too many). Retailers can
offer their store brand products along with a strategic mix of top of the line
and lower level items.
In fact, after reading Nielsen’s press release, I am less
irritated at the restaurant for offering roughly 10 dishes. It seems like the
downsizing may allow retailers to be less wasteful, while letting consumers be
more strategic about purchases. Perhaps we’ll discover some new favorite
product or find a retailer with just the right mix of what we want.
Is retail on the right track with product downsizing? What
are the benefits? The challenges? Share your thoughts here!
--Heather Strang
History for Dummies 15 June, 2010, 4:00 am
Who knew you could learn so much from a dummy?(No, not that kind.) Turns out that the study of fashion mannequins, or “dummies,” reveals a lot about the contemporary culture of their era. Today, European design leader Atrezzo celebrates this unique facet of the fashion world with its new Rock Eco Collection.Atrezzo's fascinating news release describes the evolution of the fashion dummy over the last century, from its origins as a heavy, wood-carved figure during the birth of Fashion Merchandising in the early 20th century. Realistic-looking, smiling mannequins mimicked real-life Hollywood stars during the 20s, but became serious and stern as World War II began.By the middle of the century, dummies were viewed as art. They re-created the abstract surrealism of the era. The chaotic 60s saw slender, androgynous figures vie in popularity with housewifely mannequins, and the 70s marked the introduction of multi-ethnic models. Dummies assumed action poses in the 80s, then closed the century as larger-than-life avatars, robots, and super heroes.Atrezzo draws on this rich past for its collection, integrating contemporary dance poses with historic and aesthetic mannequin developments and existential themes. The choreographed figures focus on the strength and flexibility of the body and contrast it to an absurdly light head.As Atrezzo shows, mannequins reveal a lot about culture and history - and there's nothing dumb about that.--Lillian Civantos(Re-posted from TalkContract.)
Supercharged Checkins 28 July, 2010, 7:24 pm
Location-based social networks are the latest fad to hit mobile phones. Foursquare seems to be getting most of the attention even though MyTown, Brightkite, and Loopt actually have more users. The concept has mobile phone users using GPS to "checkin" to establishments, including restaurants and retail stores. Checkins are rewarded differently by each system, but some benefits include getting location information (maps, hours, description), reviews, find nearby friends, or receive coupons. There's also the game angle for those that like to collect points, unlock rewards, and gain status.
Retailers would like to know when someone shows up at a store. Its a good time to entice them with an offer, or better yet attract them from a nearby competitor. CardStar, the mobile application that consolidates all your loyalty cards, is now automatically performing a checkin via Foursquare when you use your loyalty card. That marriage makes perfect sense.
Now SCVNGR is taking checkins to the next level. Retailers create challenges for users to perform in exchange for rewards. For example, a retailer may provide a coupon to anyone that checks into 2 different store locations in the same day. Users can earn points for checkins, comments, and photos they take of the store. Then when a certain point threshold is reached, they get a reward.
The flexibility of the program allows retailers to tailor the program to influence behavior better than just a simple checkin. Starting tomorrow, SCVNGR users can earn a $10 coupon at Journeys 800+ stores by winning challenges and earning points. These activities are meant to engage customers and have them get to know the shoe store.
Seems to me that supercharged checkins make a nice addition to loyalty programs.
Shopping Conversations 23 July, 2010, 1:48 pm
Blippy is an interesting concept but I found the stream of purchases, well, a little mind-numbing. Jane bought this and Joe bought that. It was helpful to see what iPhone apps people were buying, but there are better ways to get that sort of information (App Store Top 25 for example).
In most cases social media should make everyday social interactions more efficient. I don't yell over the fence to my neighbors every time I watch a Netflix movie, so having Blippy automate that process doesn't do much for me.
ShopSocially, on the other hand, seems to better approximate real-world conversation. What do people do around the water-cooler from a shopping perspective? They talk about the important purchases they've made, usually explaining their reasoning and outcome. Then they ask others for opinions on purchases they are contemplating. ShopSocially makes both of those processes, sharing and asking, more efficient through the use of social networks.
I spoke with Jai Rawat about his new company, his fourth start-up, and I think he's on the right path. The last thing I want to do is join another network, but ShopSocially is already linked to Facebook and Twitter so those social networks can be leveraged.
And I think this could complement product comments on websites. After posting a comment, a button could allow the reviewer to push to ShopSocially, which may in turn push the comment to Facebook and/or Twitter. Retailers get the same benefits they've always gotten from these types of social interactions. When they take care of the customer, the customer tells their friends -- only with today's technology more people are reached in less time.
Top 10 Retail Insights 20 July, 2010, 10:42 am
Just back from speaking at Crosstalk, Duncan Angove, General Manager & Sr. VP of Oracle Retail, gave an interview to InformationWeek as part of a series of interviews with Oracle executives.
Global CIO: Oracle's Top 10 Retail Insights A Must-Read For All CIOs
The article does a nice job of describing today's retail landscape and the impact of social, mobile, and search.
Share the Social Media Knowledge 13 July, 2010, 1:50 pm
Social Media Middlemen is a blog posting that discusses the fact that employees need to be trained regarding their company's social media programs. Its frustrating when you try to use a promotion from Twitter and the store associate asks, "what's Twitter?" For promotions to be effective, store employees need to understand how they work, perhaps even to the point of being able to help customers subscribe. When a customer asks how they can access more deals, every store employee should be able to suggest the customer use Facebook, Twitter, FourSquare, etc., and in some cases show them how to sign up.
I've seen the same thing when talking to the management ranks of large retailers. They understand social media and its place in retail, but often they are unaware of their own company's efforts. To be effective, everyone needs to some awareness so brand image can be consistently enforced.
Chili's, for example, ran a promotion via Foursquare and had the forethought to include some instructions for their staff:
@ Chili's Grill & Bar: Check-in @ Chili's & get free Chips & Salsa on every check-in! Simply show your server the screen after checking-in! Chili's servers, use coupon code #23 to redeem.
With this approach, at least there's some hope the server will actually know what to do, although I bet they still won't know what Foursquare is.
The Semantic Web and Retail 7 July, 2010, 10:59 am
The software industry has been using XML for quite a while since it carries meaning along with the data. But websites are written in HTML, not XML, so all the information is hard for computer programs to understand. Over the past few years the W3C has been pushing something called the Semantic Web, an approach to adding metadata to websites so that computers can find meaning more easily.
Take an e-commerce site for example. All the information about the products is available for customers to view. They can see the image, the description, the price, related items, etc. But when a crawler (software program) looks at the page, it has a very hard time "understanding" what it sees. It could infer that the numbers following the "$" are the price, but it could also be the discount amount, or a pre-order price. Because of this, most retailers export their product data to comparison shopping engines using XML.
As the Web has matured, we've learned how to augment web pages with information that makes the pages easier to index by search engines. This practice is called Search Engine Optimization, and while it helps lead people to answers, it doesn't provide answers. Put another way, instead of asking Google "What cameras are available for the iPad?" we search for "iPad camera" then use the returned results to answer our real question. The Semantic Web would be able to provide the answer more directly.
As part of its Open Graph program, Facebook has chosen to use RDFa, code that augments HTML pages with meaning. Google is also using RDFa in order to produce "rich snippets," convenient summary information about search results at a glance. Many of their examples are for product reviews.
Best Buy began using RDFa in its web pages about two years ago in order to share more information about its stores. They leverage Good Relations, a vocabulary created specifically for e-commerce.
GoodRelations is a standardized vocabulary for product, price, and company data that can (1) be embedded into existing static and dynamic Web pages and that (2) can be processed by other computers. This increases the visibility of your products and services in the latest generation of search engines, recommender systems, and other novel applications.
The retailers that include semantic aspects in their websites will have an advantage over those that don't. Best Buy has already reported an unexpected 30% increase in search traffic. As more sophisticated crawlers appear, retailers need to expose their data in new ways that enhance a shopper's ability to find exactly what they're looking for.
NRF Mobile Retailing Blueprint 7 July, 2010, 6:00 am
The Association of Retail Technology Standards (ARTS), a division of the National Retail Federation (NRF), has been developing retail technology standards in cooperation with retailers and vendors since 1993. After creating many retail-specific XML schemas, retailers began to ask how these standards fit with SOA so ARTS decided to create the SOA Blueprint for Retail.
Building on the success of the SOA Blueprint, ARTS released a Cloud Computing for Retail paper, and as of this week, the NRF Mobile Retailing Blueprint.
From the paper:
The Mobile Retailing Blueprint is the first phase of the NRF Mobile Retail Initiative. The mission of the Mobile Retail Initiative is to be a catalyst for mobile-inspired innovation that enhances the retail shopping experience and improves internal business processes. This retailer-led initiative will guide and direct the industry in the dissemination of mobile-related best practices and the development of standards and documentation for the purpose of maximizing benefits and minimizing implementation expense, ongoing costs, and fees.
The first phase of this effort involves retailers, vendors, analysts, and standards organizations. This blueprint captures the experience of retailers and vendors who have experimented with mobile applications, leverages their experience, and tailors it to retail. The blueprint was created by members of GS1, NACHA, the NFC Forum, the NRF and its ARTS, Shop.org, and RAMA divisions; RSPA, and the Smart Card Alliance to help retailers understand the current mobile retailing landscape, recognize what types of applications are on the horizon, and determine how best to embrace this trend.
Retailers should use this blueprint as a reference to understand what is possible using mobile phones. The blueprint can help readers answer the following questions:
• How can mobile retailing improve my business?
• What capabilities do mobile phones currently offer?
• What types of mobile applications help consumers shop?
• What are the choices for mobile payment?
• What types of mobile applications help associates be more efficient?
• What technologies and standards apply in the mobile field?
• What implementation options should be considered?
The reader will walk away with a better understanding of how mobile phones can and do affect retailing and more ideas about how this trend can help the reader's particular business.
As vice-chair of the Mobile Blueprint, I had the pleasure of working with over fifty subject-matter experts including retailers, vendors, analysts, and other standards organizations to produce this comprehensive look at the state of mobile application for retail.
Additional information is available from the slides below:
NRF Mobile Retail Initiative, June 2010View more presentations from David Dorf.
Legendary Returns 6 July, 2010, 12:52 pm
Most people in the retail business have heard the lore of the tire return at Nordstrom. Even though Nordstrom is a high-end department store that has never sold tires, they accepted the return in order to please the customer. Although there were some odd circumstances, the tale is nevertheless true and serves as an important example of going the extra mile for the customer.
Another company with an impressive return policy is Costco. They used to take anything back anytime, but in 2007 found it necessary to limit electronics to 90 days. Even so there are always limits, as this story explains. But I have a story of my own. My neighbor's treadmill finally broke after 4 1/2 years of above average use. He ordered parts to repair it, but when they arrived he found they didn't fit. On a whim he explained the situation to Costco, where he originally bought the treadmill (and still had the receipt), and they offered to refund his money. Although he subsequently used the refund to buy another treadmill from Costco, Costco lost money on that deal but retained a very loyal customer.
The NRF estimates retailers loose about $9.6B yearly from fraudulent returns, so retailers must find the right balance between customer service and loss prevention. To help, many are using software that tracks returns so they can detect fraud, limit abuse, and most importantly -- take care of their best customers. (For example, consider Oracle Retail Returns Management.)
When I recently went shopping for deck tiles for my patio, I chose to pay a little extra at Costco for the security of a good return policy. Sometimes the return policy can actually make the sale.
Mobile Platforms in Retail 30 June, 2010, 3:25 pm
At our recent Crosstalk event, Dave Sikora from Digby talked about mobile commerce and its importance to the retail industry. He started by noting several key trends:
3.3 Billion mobile phones in use today: 3 times greater than internet adoption
More than 65 Million SmartPhones will ship in 2010 in North America (Canalysis)
37% of SmartPhone owners purchased merchandise via phones in 2009 (Internet Retailer)
U.S. mobile commerce sales hit $1.20 billion in 2009 and will grow to $2.42 billion this year and $23.83 billion in 2015 (Internet Retailer)
The world is continuing mobile phone adoption, there's a shift toward smartphones, and commerce via mobile phones is increasing. All this should be leading retailers down the path to mobile commerce.
Digby got its start as a mobile mall application on the Blackberry where consumers could buy products from multiple retailers. But they soon discovered that retailers want more control and therefore prefer their own branded applications.
So this leads retailers to make a few key decisions. Which mobile platforms should be supported: feature phones, smartphones, e-readers, gaming consoles, tablets? If we go down the smartphone path, then which operating system family should be supported? As you can see from the chart below, Apple owns the largest share of the US market, but what you don't see is that Symbian has more market share overseas.
Digby added some data to the conversation, which I graphed below. Looking at the visits across their many mobile retail applications (both native and browser), you can see that Apple, RIMM, and Google account for 92% of their traffic. The other platforms are just noise. (Note that Digby's customers are principally in the US.)
At least for US retailers I think its clear that in order to reach the greatest number of customers, they need a multi-platfom strategy that includes iPhones, Blackberrys, and Android Phones. That can be handled either via a mobile browser, or several native mobile applications. Of course the safest strategy is to cover all the bases.
Shopping Games 28 June, 2010, 4:30 pm
Its often been said that retailers need to go where their customers are, and these days that seems to be on popular social sites. An awful lot of people are spending time playing games on Facebook, and the clear leader in gaming is Zynga. Their Farmville and Mafia Wars games, to name two, have an incredible following. There are 235 million monthly active users playing Zynga games via Facebook, Yahoo, and the iPhone. (Interestingly, activity goes up during working hours.)
These social games are different than traditional computer games. They are extremely easy to learn and require no special skills. They take very little time, but require frequent participation. And they incorporate social aspects, so they are more fun when played with friends, which of course leads to viral marketing.
Teen fashion is especially ripe for this channel. Retailers like Wet Seal are engaging customers with games like i-Dressup with more on the way. And separate, non-retailer sites like RoiWorld are popping up.
I'm most impressed with Zynga's partnership with 7-Eleven. TechCrunch reported, "In total there will be more than 30 branded items in store, ranging from cups, bottles water, a signature ice cream and more. Consumers will be able to connect back to the social games by using their product redemption codes for limited edition 7-Eleven goods within FarmVille, Mafia Wars and YoVille." This is the first but certainly not the last example of tying physical shopping to fun, online activities.
Crosstalk: Retail Innovation is Thriving 25 June, 2010, 2:14 pm
At this year's Oracle Retail Crosstalk user conference the theme was "retail redefined," and Duncan Angove wasted no time looking backwards. He began by describing now as an "inflection point" where in the future we will look back and realize this was the point when our industry underwent massive changes. He then went on to showcase innovation and customer success stories.
I asked a customer that had attended previous Crosstalks how this year's ranked. He said the event gets better each year as we continue to add more customers. This year there were 124 retail executives from 63 companies. Another person pointed out that what makes Crosstalk so valuable is that its a retail conference, not a product conference. The breakouts were delivered by retailers and focused on real-world examples of solving business problems. The general session painted the strategic vision using a combination of retailer presentations, panels, and a forward-looking keynote speaker (Jeff Jarvis). I heard several times that this combination of here-and-now and what's-on-the-horizon provided tremendous value.
My favorite highlights were:
1. The iPOS demo showed how partners are innovating around Oracle Retail products. In this case, iPOS provides essentially the same capabilities as found in the Apple store, using the same iPod Touch hardware to provide a low-cost mobile POS.
2. For the last several years Oracle Retail has offered a scientific approach to analyzing retail businesses, discovering opportunities, and quantifying possible ROI. Duncan announced our intent to productize this offering so that retailers can re-run it throughout the year.
3. Intuit demonstrated their integration with Oracle Retail's POS to enable their forthcoming (next month) QuickReceipts program. Home Depot and Best Buy have already committed to the program.
4. John Kubo of Wet Seal described his approach to adding social media to Wet Seal's customer engagement model, including the use of Facebook, Twitter, co-shopping, and a future Facebook game not unlike popular games Farmville and Mafia Wars.
5. The Technology Trends Panel featured forward-looking companies Google, Buzzient, and Digby each of which described their innovative solutions for the retail industry.
6. Jeff Jarvis, author of What Would Google Do?, showed the audience how to think and act like Google, explaining the demise of certain industries that couldn't adapt fast enough, and citing emerging companies that are taking us in new directions.
7. Lastly, Duncan applied Jarvis' principles directly to the retail industry with a provocative demonstration of what retail could look like in the future. The Democratization of Retail, a term he coined, called for retailers to share information that allowed customers greater control over merchandising.
Clearly innovation is occurring throughout the retail industry, and I look forward to telling my future grandkids I was part of it.
How to Motivate High Potential Employees 26 July, 2010, 7:00 pm
I recently received an email from a jewelry store outside of Los Angeles.The owner posed an interesting question that she suggested would be a wonderful discussion question for my readers. I agreed that it would be a great question and I would get as many opinions as possible. So here goes:Dear Rick,I have an employee who has worked for me for 3 years. I own a smaller jewelry store outside of Los Angeles and employ 14 people who all work part-time. The business was originally started by my husband who passed away 9 years ago. I have been running it alone by myself since then. My children have graduated from college and have no interest in entering the business (one is an accountant, the other is an electrical engineer). Tracy, who is in her early 30’s is one of the most talented employees I have ever had. She outsells everyone in the store, including me, all of the other employees love working with her, and customers call to find out when she will be in.Tracy is also one of the most honest and trustworthy people I know. So, what could be wrong? She really doesn’t want to work, and I don’t know what I have to do to motivate her. Most people are probably thinking by now that she doesn’t need the money. WRONG! She is a single mom with more debt than you can imagine. In her defense, her husband ran up a bunch of credit cards and took off. She has made payment arrangements with most of the credit card companies but she needs to honor her commitments. She has one 12 year old son.Having said all of that, maybe you can start to share my frustration when I tell you she calls in sick or has an excuse why she cannot come in more than any other employee I have ever had. I can’t depend on her. We tell customers that she is scheduled to work on a specific day. They come in with pieces to have redesigned and/or buy something new, and Tracy is not there. I am particularly frustrated today because one poor couple have now come in three different times and left because she wasn’t there to take care of them. They will not return. I am guessing now, but it was probably a $5,000 lost sale.Now to make matters worse. When I confronted Tracy, she felt terrible about her actions, and promised that she will make it up to me. And she did. They day I confronted her with this she felt so bad she made four $3,000 sales; one $12,000 sale, and helped two other people to have sales over $2,500 each.The irony is the fact that the store wasn’t even busy that day. It’s as if she has the ability to just manufacture sales. She also refused to take her normal commission on $5,000 of those sales because of the sale that was lost.The next day after she had $24,000 in sales, she felt so bad and apologized that it would never happen again. But she didn’t show up for work until 1:00 when she was scheduled to open at 10:00. At least she did call me to open and said she was running a little late. I have offered her more money, bigger bonuses, a flexible schedule, health insurance, and have even looked into help with her child. Rick, I just don’t know what to do. I really would love to sell her the business, and although I have mentioned it a few times, she has never responded to my suggestions. She is a combination of a daughter, sister, friend, colleague and business partner. I could never dream of firing her because I couldn’t do it.I know she has a very active social life, but we don’t talk about it while sometimes I think I should. It is not as if she has even setting a bad example to the other employees because she openly admits she is wrong. Rick, what should I do? I am at my wit’s end. PLEASE HELP!Sincerely,Eunice K.Eunice, I feel your frustration. I had a similar situation happen to me many years ago. Unfortunately, this employee left the store, but I always wondered what might have been.
Now here’s the challenge.
Write in at rick@ricksegel.com or coment below and share your opinion with any possible suggestions to make Eunice’s life less stressful and to help Tracy reach her full potential. I will leave you with just one idea, and I will be working on ideas all week long. And that would be to sit down with Tracy and draw up an agreement of do’s and don’ts or some type of contract between the two of them. I look forward to your responses and let’s see if we can help Eunice out.Have a great week.
Seven Ways to Get Your Retail Website to Pop 19 July, 2010, 7:00 pm
Websites today can become exciting with simple techniques. Having said that, we are focusing on the look of the site, the graphics as opposed to the backend technical navigation and “mumbo jumbo” which is still the backbone to every website. It still amazes us that relatively basic looking sites can do exceptionally well because technically they work. The bottom line is we need the fun and exciting stuff along with the basics.
Think USA Today: The reason for the success of USA Today is because it has lots of headlines, short stories with short paragraphs and graphics that support the story. This sounds simple enough to do and yet as you surf he web, you will see site after site with long paragraphs that no one will ever read.
Think Headlines: Although we just mentioned the use of headlines when we refer to USA Today, spend some time writing a captivating headline that people want to learn more about.
It’s About the Reader Not You: So many times when people write their websites, it is I, I, I or it is just focused on your company or yourself. Think in terms of benefits to the reader. Think in terms of the website that says “we have been in business a hundred years”. The owner of the business is very proud of that and uses the argument that because we have been in business, we must be good. The reader reads that and says “what does all that mean to me”.
Make it Personal: Always have an about us section and share pictures and your personal philosophy. On an award winning website, the owner of the company is pictured sitting on a stool, holding a beagle and beside that is a short message to the reader that has a script signature to make it appear as if it is a personalized signature. Within the body of the owner’s message, there is a click through to send her an email.
The Use of Fonts: Generally speaking, homemade websites or less professional looking websites have a tendency of using overused fonts such as Arial or Times Roman. Select the font that you like which has the same feel and look of your company and stick with it. One of the biggest errors people make is they go font crazy and they begin to put three of four different fonts on the same page. You can use the same font but use the italicized version of it and/or all capitals.
Color Contrast: So many times we will see sites that use colors that are beautiful but unfortunately not readable. I recently reviewed a site that was in gray with a darker gray lettering. I couldn’t read the site. Mauve and gray are great for a living room, but not for a home page. Businesses that use all black backgrounds must be careful with the use of the color red. Red is a great accent color on a black and white site, but don’t use a red font consistently.
The Convenience Factor: Websites are about convenience. They allow us to save time and money by truly letting our fingers do the shopping. We block the convenience factor when we have Flash openings with words or images flying in from every direction and music blaring in the background. All of these sites have a button that says “skip intro”. 93% of the people who go to these sites, hit “skip intro”. That stuff is not necessary or as I like to put it, it is the graphic designer having an orgasm.
The Bonus: I said the 7 steps, but I am giving more than expected. Make sure on your website you give more than the viewer expects. In New Orleans, they just call it “lagniappe”. What it means is a small gift to the customer by a merchant, such as the thirteenth donut. My extra point is this - use small graphic calls to action to interest your reader to stay on this site longer. After all, isn’t that what I did to have you read this?
What’s The Story Behind That Product? 12 July, 2010, 7:05 pm
Increase the Perceived Value by Sharing the Why of The Buy
Have you ever gone to a store, looked at a piece of merchandise, and not bought it because you thought it might be an inferior product? That just happened to me. I was shopping at a store in the Boston area that is known for everyday bargains. It is the type of store that people rarely go to for a specific item. It’s the type of store that you end up buying a bunch of stuff that you never knew you needed. Their prices are extremely low and their advertising slogan is “don’t you just love a bargain?”
I affectionately refer to this store as an old fashioned five and dime store on steroids. They sell lots of party products, kitchen items, gift items, books, packaged foods, cosmetics and probably another thousand categories. It is a chain of 20 plus stores that is not necessarily the neatest and most organized, but no one really expects it to be either. You get the feeling you are getting a great deal on everything you buy.
One of the reasons for some of the great values that they offer is that many of the time dated products will have closer expiration dates, which is perfectly OK as long as you aware of that. The majority of the items are not this way. What I am saying is you are looking for reasons why something might be such a great deal. That was the case with me. Let me explain.
Again, remember I went into the store not looking for anything in particular and just killing some time. I did, however, have a shopping cart which I was filling up with a bunch of useless items I had to buy. Then I came to the men’s personal item area and picked up a can of shaving cream and noticed a razor from Gillette. I had never heard of this type of razor; it was a Fusion ProGlide Power Razor that was only $8.99 which seemed cheap enough to make me buy it. BUT where I had never heard of this razor, I was afraid that it might be a discontinued item that Gillette had experimented with, didn’t work out, and were dumping the balance of the products into this discount store. That was OK because I go through a lot of razors since I travel so much and I have a tendency of leaving them somewhere. So, I figured since I probably wouldn’t be able to get the blades for this in the future, I would purchase the 8-pack of blades. I was a bit surprised that the 8-pack of blades sold for $26.99, but I happened to need a razor so I bought it. I want you to know I did have buyer’s remorse because I felt I had bought a discontinued product. The reason why I felt that way is because these razors and blades were thrown into a bin. Then two things happened to me.
First, I used the razor. It was the most unbelievable shave I have ever received and with a bald head this is an area I am expert at. I am still believing and questioning why they would be discontinuing such a great razor.
Then, I went to CVS to pick up a prescription where right there in front of me was this beautiful display on an end cap announcing the newest and greatest razor by Gillette, the Fusion ProGlide Power Razor. It was selling for $12.99 and the blades were $29.99. It is not a huge discount, but it is still a substantial discount, especially on a brand new product. Here is the interesting part. I happened to ask the cashier, who I believed was some type of manager or assistant, how those new Power Glide Razors were selling? Her comment was “we keep them in stock”.
I will go as far as saying that CVS is doing a far superior job on selling these products than the store that is known for lower prices. There is an old expression that says “its worth is what it looks like it’s worth”. CVS increased the perceived value of the product by featuring it, signing it and supporting it with professionally prepared displays by the vendor. The discount store didn’t even have a hand written 3 x 5 card saying “new product” or “great buy”. It got so bad that even though I purchased the item, I actually considered returning it.
Are you doing the same thing in your store? Are you making it easier for the customer to understand the products you are selling? I was at an airport shop the other day that sold art by the artist, BRITTO. The products were posters, framed art, t-shirts and ceramic pieces. It was OK, however, the value of those products skyrocketed when I saw the artist pictured with various world leaders, including President Clinton and an announcement that he was selected to create a new stamp for the United Nations. That’s credibility! That’s the story behind the product. Share the story and you will increase the value of your products. Try it, it works!
The Three Types of Sales Associates 6 July, 2010, 5:09 am
Which One Do You Employ?
I am sure there are more than three types of sales associates, but for the sake of discussion I have always looked at three main categories - the Weak Sales Associate, the Average Sales Associate and the Superstar. Let’s first define each of these categories.The Weak Sales Associate: This employee can have many different attributes from being not trained and not knowledgeable to having a destructive attitude. Either way you look at it, both of these qualities can kill your business. The interesting aspect of this is that it’s not always that employee’s fault, but rather fault of management.The weak sales associate: This category of sales associates is one who is not trained and knowledgeable is the easiest to improve. Duh! They require training and knowledge. The question is how are you going to train and make them more knowledgeable. There are many stores that have long detailed training programs for new employees, some of them are as simple as a two to five day training session. The topics which should be covered would be the history of the business, the philosophy of the business, a discussion of the mission or vision statement a business might have and all of this would come under a category that might be referred to as a new employee’s indoctrination. What you are attempting to do here is to start to have the employee understand why you do what you do.The other two areas that you want to cover in the initial training would be product knowledge and why you buy what you buy and sell what you sell. The last section of any training program should be what the employee is expected to do and how to do it. In other words, we are going to teach them about our products, tell them what your expectations are and how to sell them.The danger that many of us have in training employees is that we will assign an employee to follow another employee. That’s a great way of doing it, however, don’t just have the new employee follow just one person, rotate them. You don’t want an employee to pick up all of the bad habits from one. One last word on training, it is a constant and ongoing commitment. Understand that the new employee with a wonderful attitude who doesn’t understand the business, the products or how to perform is just as bad as the employee with the destructive behavior. Let’s talk about the employee with the destructive behavior. Generally speaking when we talk about bad behavior, it always comes down to they have a BAD ATTITUDE.Attitude is comprised of three elements:
Facial expressions -- looks
Body language
Tone of their voice
All of these elements are easy to recognize and we seem to get a quick image when we mention any one of these factors with a bad attitude. Can’t you just picture the person who rolls their eyes or looks disgusted and you just know what their body language is going to be like. And don’t we all know the tone of their voice? One of the exercises that I will do in a live seminar is to ask people to say the phrase “good morning” but say it as if they are disgusted, aggravated, annoyed and then have them contrast it to happy, excited and positive. The facial expressions and the body language go with it naturally.The bottom line, make your employees aware of what a bad attitude is, ways to improve it and if they do not, they must be terminated. It just flat hurts you and your business.The Average Sales Associate: This is a category where the majority of our employees fall. What they do is whatever is asked of them, they generally have good attitudes, they are pleasant with customers and they will make a sale when the customer wants to buy. In short, the average salesperson rarely hears the expression “I had no intentions of buying, I just stopped in to say hello”.
The average sales associate are many times referred to as just an order taker. They rarely suggest multiple items and their Units Per Transaction will always be close to 1; as opposed to the superstar who will have Units Per Transaction of 3, 4, 5 or more. This average employee will have some customers request them, but not often. This associate can feel secure about their job, but should always worry about being compared to stronger employees. This is the employee who we should work with to improve their skills and encourage multiple sale transactions.The Superstar: I believe there are two parts to the superstar. First, they are engaging with the customer, they have a belief that they are there to service the customer and help them to buy what they want and need. They don’t necessarily look at themselves as salespeople. Many times people get confused and think that the strongest salespeople are the most outgoing with a bubbly personality. That’s just not so. Many of these superstars do have outgoing personalities, but the one thing they all have in common is that they ask the customer questions and listen to their answers.That is the reason why customers relate so well to them because the superstar is focused on that customer. I recently had a friend who went to Chico’s and raved about her experience because the salesperson befriended her by listening to her needs and wants and made suggestions that fulfilled those needs and wants and made maintained the attitude that “this is what we should do” as if to say “I am on your team”. That is why my friend bought more than she expected, spent more than she planned, left happy but realized when she got home she didn’t need a couple of the minor accessory pieces. Then felt so bad about returning it and didn’t want to return it when her superstar was there because she didn’t want to hurt her feelings.BINGO! Guilt is a wonderful thing. Logically, she does not need those accessory pieces. Emotionally, she will probably keep them. The best part is she will go back to the store and ask for this superstar by name and even call in advance to make sure she is there.Now the bad or dark side of the superstar -- many times they know it. The true superstar is NOT a prima Donna. They are team players, they help out weaker sales associates and they don’t ask for special favors. You can be as friendly to this employee as possible, but never at the risk or health of the business. True superstars don’t put management in comprising positions. They don’t ask for special favors and their focus is always in the best interest of the store first. Sales ability is great but sales ability with a strong team attitude makes the true superstars. That’s why every NBA team wants LeBron James because not only can he perform, he is a consummate team player and natural leader. Let’s learn something from basketball, when you find people like that go after them, recruit them and watch your business grow.
WHAT WOULD YOU DO IF SOMEONE SAID NEGATIVE THINGS ABOUT YOUR BUSINESS... to the WORLD 29 June, 2010, 6:20 am
"Rick, PLEASE HELP!!!" One of my customers was so unhappy that I wouldn’t give her a refund on something she bought 6 months ago. She is destroying me on the internet. I don’t know what to do. Please help me. "I believe in treating people fairly and honestly but this woman tried to return a $350 serving set that we sell mostly at Christmas time. I did take it back but I gave her a gift card for $350, plus the tax she paid. She complained that she gets cash back everywhere she goes and she would never come back.""Then this happened. As she was leaving the store, she noticed we had the exact same serving set in our clearance section. It happened to be marked down to $99. Yes, this woman bought and NOW she demanded the difference back in cash.""We politely said no and that she would have to spend the balance. Again she opened a mouth and told us she would tell the world what horrible people we are and what a horrible business this was.""Well, she did.""She wrote posts on my blog, she sent out tweets, entries on Facebook and any social media networks you can imagine. Rick, what can I do and where do I go?"Signed by Mary X, a Gift Shop Owner in the Midwest (The store owner wanted to remain anonymous but granted me permission to use this scenario.)This is becoming a rapidly growing problem. The customer today has power over us like never before. We are almost at their mercy and it kills me to say that. Throw "FAIR" out the window. We are living in a world of FREE, have it your way, totally customized for you, type of world.In a minute I will share what the experts on negative feedback say. But I want you to consider two issues.
The cost of this negative publicity can be far more expensive than the return. Yes, I know it’s the principle BUT we can win a battle and lose a war. I once was almost involved in a lawsuit that I had a 100% chance of winning. But I chose NOT to sue because the cost of suing was more than the victory would have been.
We can be as nice as possible and still have a customer upset with us. So don’t beat yourself up and accept the new reality. Social media such as Twitter, Facebook, blogs and more are great tools to use to connect with customers. The great thing about social media is that you really put yourself out there. But with this openness, problems can occur.
But how do you deal with negative feedback?
Create A Policy - Before you start having comments available whether it's through a blog or a Twitter conversation, make sure you clearly outline the organization's policy on commenting. I know it sounds excessive, but having some guidelines in place will ensure that you won't be caught off guard.
Make sure it’s not libel - In the United States and in many countries around the world, truthful statements about another person are safe to publish. However, publishing outright lies with the intent to defame or injure the reputation of others is illegal.
Don't Lash Out - It's easy to respond quickly when someone makes you mad. The best thing to do however is keep your cool, no matter what the situation. You will come off as the better person for it.
Respond Publicly - If someone makes a negative comment, respond publicly to let others know how you've handled the situation. Maybe others were wondering the same thing, but didn't want to ask. Being able to handle the situation shows that you (and the organization) are in control.
Respond Privately - This may seem the opposite to the point above, but let me explain. While some situations require a public response, others do not. If you are being harassed, you may not want the situation to play out over the blog. Also, if a negative situation is going back and forth many times, you should move that to a private conversation as to not interfere with your other posts/comments.
Respond in a Timely Manner - If you take too long to reply, people may think that silence is your answer. Try to respond as quickly as you can, even if just to say that you will be able to provide an answer/opinion shortly. That way people know that you are involved.
Be Clear and Concise - Nobody's going to read a response that's many paragraphs long. Keep your answers clear and concise and you will get your point across.
Mary, I hope this helps.
(A special thank you to the pros at Synthesis Communication and The Reputation Hawk for their contributions.)
Here Is a Simple Idea That Works 21 June, 2010, 6:55 pm
I just got an interesting job that I think could become a great business tool for you. This is so good a business model that I might even want to pursue it even further and use it for more than this one client. But the best part is that anyone can do it and reap the rewards from this model. I will be working for a distributor that has two major trade shows a year. All of the vendors he represents attend these buying shows. They offer 2 educational programs before the show begins and I will be doing one presentation for their sales reps and another one for their retailers. In addition to the presentations, the distributor asked me to do a rather interesting assignment that could become a major trend. What I will be doing is going from trade show booth to trade show booth, with a video camera and a microphone and asking the vendors sales/managers or sales reps a few simple but powerful questions: What is HOT from your company?Why is it HOT?Why should the consumer buy it?What’s new?What are the advantages of doing business with your company?When I edit the responses I will break the videos down to a 3 to 5 minute maximum. They will be converted into YouTube and placed in a private section of YouTube. Then the distributor will offer this library of videos for the retailers to use on their websites. FREE Content. And the distributor will charge the vendor an advertising fee. What makes this important for you to do? One of the reasons that online sales have been strong is because of the amount of educational data, product reviews, customer feedback, and owner’s polls. When you think about it, an online merchant is able to beat the retailer at their own strength which has traditionally been customer service, expertise, and dependability of the specialty retailer to know and stand behind the product. Things have changed and the difference is in the area of expertise and sharing that expertise. Having a website filled with instructional and informative short video makes your website one that people will return to again and again. Even if someone doesn’t buy from you, people will be talking about you and in time that will pay big dividends. SO WHAT IS THE ACTION STEP? First, ask every vendor you do business with if they have created short instructional, fun, or informational videos that you can use on your website. If not, start to bring a camera to trade shows, any point and shoot camera works since they all take movies today. Then, ask the questions I listed earlier. OR When a sales rep is in your store, take a video. OR you can use SKYPE (it’s free or has a tiny charge) to capture a video recording right through your computer. I have found someone to edit my videos. Trust me, there are plenty of people who do that work as a part time job. Then just have them up load it to YouTube (it’s really pretty simple- I even did 2 of them a month ago myself). Once they are on YouTube, you can easily add them to your website and Facebook site. You can even use these videos in your store if you have a flat screen monitor. You can use some of the smaller screens that are not very expensive. This is really a winner and it just enhances the shopping experience within your store. It also makes your website far more interesting and encourages your visitors to return again and again.
Here Is a Simple Idea That Works 21 June, 2010, 6:55 pm
I just got an interesting job that I think could become a great business tool for you. This is so good a business model that I might even want to pursue it even further and use it for more than this one client. But the best part is that anyone can do it and reap the rewards from this model. I will be working for a distributor that has two major trade shows a year. All of the vendors he represents attend these buying shows. They offer 2 educational programs before the show begins and I will be doing one presentation for their sales reps and another one for their retailers. In addition to the presentations, the distributor asked me to do a rather interesting assignment that could become a major trend. What I will be doing is going from trade show booth to trade show booth, with a video camera and a microphone and asking the vendors sales/managers or sales reps a few simple but powerful questions: What is HOT from your company?Why is it HOT?Why should the consumer buy it?What’s new?What are the advantages of doing business with your company?When I edit the responses I will break the videos down to a 3 to 5 minute maximum. They will be converted into YouTube and placed in a private section of YouTube. Then the distributor will offer this library of videos for the retailers to use on their websites. FREE Content. And the distributor will charge the vendor an advertising fee. What makes this important for you to do? One of the reasons that online sales have been strong is because of the amount of educational data, product reviews, customer feedback, and owner’s polls. When you think about it, an online merchant is able to beat the retailer at their own strength which has traditionally been customer service, expertise, and dependability of the specialty retailer to know and stand behind the product. Things have changed and the difference is in the area of expertise and sharing that expertise. Having a website filled with instructional and informative short video makes your website one that people will return to again and again. Even if someone doesn’t buy from you, people will be talking about you and in time that will pay big dividends. SO WHAT IS THE ACTION STEP? First, ask every vendor you do business with if they have created short instructional, fun, or informational videos that you can use on your website. If not, start to bring a camera to trade shows, any point and shoot camera works since they all take movies today. Then, ask the questions I listed earlier. OR When a sales rep is in your store, take a video. OR you can use SKYPE (it’s free or has a tiny charge) to capture a video recording right through your computer. I have found someone to edit my videos. Trust me, there are plenty of people who do that work as a part time job. Then just have them up load it to YouTube (it’s really pretty simple- I even did 2 of them a month ago myself). Once they are on YouTube, you can easily add them to your website and Facebook site. You can even use these videos in your store if you have a flat screen monitor. You can use some of the smaller screens that are not very expensive. This is really a winner and it just enhances the shopping experience within your store. It also makes your website far more interesting and encourages your visitors to return again and again.
It’s Time to Recoup, Refocus and Regrow 14 June, 2010, 7:00 pm
I just spent a long weekend at The International Humor & Creativity Conference sponsored by the Humor Project. It was located at a sprawling resort and conference center at Silver Bay on Lake George in New York. It was like going back in time a 100 years-- not only because the facility was 100 years old but for 3 days I was at a location that had limited telephone service (no phones in the rooms and one public phone to share with 20 guest rooms). Cell phones did not work at all and internet access was limited to only a few of the building in a 40+ building facility. The term rustic was used many times but being in a facility like that, with all of the distractions of the world at bay, it clears the air and makes you think about who you are and what you are doing with your life and career. This was a very different audience for me because most of the groups I speak to are focused on business issues, where this group consisted of doctors, medical professionals, educators, and just a whole bunch of really bright creative people who believe in the importance of fun, humor, and playful behavior. They are serious about their fun and the benefits both medically and emotionally. It was a place that lent itself for long philosophical discussions on the type of porch that we might have seen Roosevelt and Churchill discussing the politics of the day. This porch that overlooked the Lake accommodated over 50 old rocking chairs and was the right place with the right people and the right environment to truly make a difference on the world. So how did it affect me? The biggest thing was it reinforced a belief I have held for a very long time and is clearly documented in the first chapter of both of my Dummies books. I talk about dreaming. Yes, a touchy feely subject but one that is so important. It was asked how many times is a house built? The answer is twice. It is first built in your mind, then the second time it’s built with bricks and wood. It all starts with a dream. The people that start a business all start with a dream. If you were to ask most entrepreneurs if they would rather work for someone for more money or be in business for themselves, the answer is always to stay in business for themselves. Yes, it’s tough sometimes but it’s worth it. The message I want to share is that sometimes it’s important for us to go back to the original dream we had for and about our businesses. The unfortunate thing is that sometimes life gets in the way: recessions, urban renewal, competition, new ideas, a changing demographic, or a new technology that changes the way we do business. There sometimes seem like there are a 100 things that can go wrong and very few that make things right. We feel like that from time to time. The grass is always greener on the other side of the street. By the way, customers aren’t any different all over the world. The customer today wants it all because they can get it all. Competition is tougher than ever before. IT’S NOT JUST YOU. We need to focus on the customer that appreciates what we do. As you revisit your dream, add this to the equation. Ask yourself how you and your business can enhance the lives of your customers. Are you bringing unique merchandise that they can’t find elsewhere? Are you providing a service that is so special they wouldn’t go elsewhere? Or realize that your competitive advantage is the location and the convenience you offer your customer? Just know what makes you special and/or why your customers think you are special. After all, if you are going to be a specialty business, it’s time you put special back into your businesses. Sometimes we might just have to change or adjust our dreams and goals and remember this. People love change. It’s the transition from changing from one thing to another that we hate. We all want change to be immediate and it never is. One last point from this philosophical mood I have taken with me from the conference. We tend to beat ourselves up over some of the tough times we go through. We are never as good as our greatest success and never as bad as our worst failure. Start dreaming again. After all it got you to where you are today. Besides, if it was good enough for Walt Disney, it’s good enough for me.
It’s Time to Recoup, Refocus and Regrow 14 June, 2010, 7:00 pm
I just spent a long weekend at The International Humor & Creativity Conference sponsored by the Humor Project. It was located at a sprawling resort and conference center at Silver Bay on Lake George in New York. It was like going back in time a 100 years-- not only because the facility was 100 years old but for 3 days I was at a location that had limited telephone service (no phones in the rooms and one public phone to share with 20 guest rooms). Cell phones did not work at all and internet access was limited to only a few of the building in a 40+ building facility. The term rustic was used many times but being in a facility like that, with all of the distractions of the world at bay, it clears the air and makes you think about who you are and what you are doing with your life and career. This was a very different audience for me because most of the groups I speak to are focused on business issues, where this group consisted of doctors, medical professionals, educators, and just a whole bunch of really bright creative people who believe in the importance of fun, humor, and playful behavior. They are serious about their fun and the benefits both medically and emotionally. It was a place that lent itself for long philosophical discussions on the type of porch that we might have seen Roosevelt and Churchill discussing the politics of the day. This porch that overlooked the Lake accommodated over 50 old rocking chairs and was the right place with the right people and the right environment to truly make a difference on the world. So how did it affect me? The biggest thing was it reinforced a belief I have held for a very long time and is clearly documented in the first chapter of both of my Dummies books. I talk about dreaming. Yes, a touchy feely subject but one that is so important. It was asked how many times is a house built? The answer is twice. It is first built in your mind, then the second time it’s built with bricks and wood. It all starts with a dream. The people that start a business all start with a dream. If you were to ask most entrepreneurs if they would rather work for someone for more money or be in business for themselves, the answer is always to stay in business for themselves. Yes, it’s tough sometimes but it’s worth it. The message I want to share is that sometimes it’s important for us to go back to the original dream we had for and about our businesses. The unfortunate thing is that sometimes life gets in the way: recessions, urban renewal, competition, new ideas, a changing demographic, or a new technology that changes the way we do business. There sometimes seem like there are a 100 things that can go wrong and very few that make things right. We feel like that from time to time. The grass is always greener on the other side of the street. By the way, customers aren’t any different all over the world. The customer today wants it all because they can get it all. Competition is tougher than ever before. IT’S NOT JUST YOU. We need to focus on the customer that appreciates what we do. As you revisit your dream, add this to the equation. Ask yourself how you and your business can enhance the lives of your customers. Are you bringing unique merchandise that they can’t find elsewhere? Are you providing a service that is so special they wouldn’t go elsewhere? Or realize that your competitive advantage is the location and the convenience you offer your customer? Just know what makes you special and/or why your customers think you are special. After all, if you are going to be a specialty business, it’s time you put special back into your businesses. Sometimes we might just have to change or adjust our dreams and goals and remember this. People love change. It’s the transition from changing from one thing to another that we hate. We all want change to be immediate and it never is. One last point from this philosophical mood I have taken with me from the conference. We tend to beat ourselves up over some of the tough times we go through. We are never as good as our greatest success and never as bad as our worst failure. Start dreaming again. After all it got you to where you are today. Besides, if it was good enough for Walt Disney, it’s good enough for me.
A Lesson From The Dentist… There Is A Lot to Learn Here 7 June, 2010, 7:00 pm
The other day I had an appointment with my dentist because I broke a tooth and needed to have a new veneer made. Because of the moves I have made in the last few years, I have only been with this dentist for two years. However, of the four different dentists I have used over the last 35 years, my current dentist and his company is the best, most professional dental firm I have ever encountered. There are actually 3 or 4 dentists, at least 6 hygienists, and lots of assistants who are just buzzing around all day. There are 3 wows about this practice:Appointment times are always honored and I have never had to wait more than 5 minutes from arriving. Your first appointment has a 30-minute sit down face-to-face meeting so that the dentist can better understand the whole patient. It’s a nice touch but isn’t that what wows are? My dentist is a nice, very personable, wonderful man, a great employer, and also a brilliant man without being obnoxious about his intelligence. So what could a gift shop or a garden center learn from my dentist? LOTS. See if this sounds familiar:I will refer to my Dentist for the purpose of this article as Dr. T. We were discussing the phenomena of the effect that Extreme Makeover TV Show had on the dental industry. On the show they used a method that was called the Davinci Process for capping or putting veneers on teeth to create beautiful white teeth. Dental labs and dentists across the country were getting lots of inquiries for this process. It got so big that the process developed by a dental Lab in LA actually developed a license/franchise agreement with the labs and dentists around the world. (Great PR works…That’s the first lesson to learn.) It is a very good process but most dentists and labs can do similar things. That’s what started a most interesting discussion. Dr T then made the statement, “Doesn’t it kill you when a patient (a customer in our world) tells you that they went someplace else to have work done and it’s work you do?” In his case, this meant someone going to another dentist for cosmetic dentistry. He said that’s what he does and besides he hated the term cosmetic dentistry. My response was, “What do you expect? How are your patients supposed to know what you do?” He didn’t have a sign, a testimonial, a before and after picture other than one created by dentists for dentists. He didn’t even have a simple brochure describing his services. He responded that he never advertised and everything was done via word of mouth advertising. Now understand, this is a very bright man but something doesn’t seem right. He is dependent on his patients to tell his story about an extreme makeover of someone’s smile. If he is busy now, I wonder how busy he could be with the proper marketing? So then I asked the biggie. “How does your website handle your services?” His response was “not great because I even have a problem navigating the site.” Now that’s a bad sign-- if you can’t navigate it, how is your reader going to do it? And speaking of signs, I suggested that he should have signs on the ceiling right above the chair. Is there a more captive audience than a patient lying down in a dentist’s chair with nothing else to do but read a sign? I explained that today we can’t just depend on word of mouth advertising like we used to because the natural way people look for new services or goods is NOT by asking a friend. It is by “Googling it”. Plus customers today are bolder about negotiating or at least not afraid to ask the price and shop dental services more than ever before. So I said when he finished my tooth repair, I would take a look at his website. His website was absolutely beautiful. The graphics were first class. BUT that always scares me because if they look pretty, somehow they aren’t always functional. Plus they just never seem to score high on web results testing. Dr T showed me the services section and I saw before and after shots. However, there was no testimonial or endorsement or any type of emotional connection. It was all insider shop talk void of the people and personalities. There were no videos on the site at all. There weren’t any video endorsements or dental tips by the dentists. Even a video on what to expect if you have Cosmetic Dentistry. I then ran the website through websitegrader.com. His website’s score was 24 out of a 100. That was terrible. This site cost him thousands of dollars to create. It was written on a graduate school level but that’s not who his clients are. The before and after shots lacked any type of touchy feely feeling and certainly sounded like insider talk about the various procedures. The site was just too stuffy and didn’t serve the needs of his community. I then graded the website developer that was charging these dentists huge fees. Their score was 84%. Although this is good, people who do this for a living should have scores of 95% or better. My last comment was that the site was all about the dental practice. NOT HIS PATIENTS or the benefit he brought to his patients. He didn’t offer anything to his patients, no newsletter, no blog, no ask the dentist section, no videos to make the flow of information easier, no CALL TO ACTION BOXES TO MAKE IT EASIER TO DOWNLOAD ANY SPECIAL REPORTS, tips or anything else. The goal TODAY: TRY TO POSITION OURSELVES AS THE EXPERT. Dr. T already has that level of professionalism but he is throwing it all away by not reinforcing it. People pay extra for expertise which also means he should create his own brand for his process for capping teeth. Call it the Michelangelo Method or better yet, he could use his own name in the process. The bottom-line is that it is about the customer. Not us. How can we serve them better? How can we communicate what we do and how it benefits the customer? What can we do for them and how are we teaching them today? Now act on what you have learned. I know Dr. T is going to. This is an alternative ending:Last point and this is the tough one. As you can plainly tell from my tone I really like Dr T. I would recommend him in a second. I am as loyal a customer/patient as you can get. BUT 5 weeks ago my wife needed a crown and we were still in Florida. She went to a dentist that we had no long-term relationship with. He told her she needed a new crown and the price would be X. She then called Dr. T office to have it down there. After making the appointment she asked how much would it cost? She was shocked when she received the estimate which was $500 less. Guess where she had the work done! We still have to price competitively.
