J.D. Associates Retail POS Solutions Blog

Gift Card Regulations Change Sunday, Aug. 29

Over the years retailers have been continually asking questions about gift card fees and gift card expiration dates.  Because of often “fuzzy” answers, many retailers made up their own rules about gift cards and were frequently challenged by consumers who felt they were being bushwhacked with unfair fees and shortened expiration dates.  Well, all that is about to change and, for the most part, questions regarding gift cards should disappear due to new federal regulations which go into effect on Sunday, August 29, 2010.  The details of gift card regulation can be found in the Credit CARD Act (Credit Card Accountability Responsibility and Disclosure Act of 2009). 

In short, fees for gift card inactivity and other miscellaneous fees can only be assessed under very specific circumstances and gift cards cannot expire for at least 5 years from the date they are issued.  Additionally, fees and expiration dates as well as a toll free phone number or website must be printed on each gift card.
For those of you who are interested in the actual legalese, cut and paste the following link in your browser:  http://clerk.house.gov/library/reference-files/HT_Credit_Card_PL_111_24.pdf  The specifics on gift cards are listed under Title IV, Sec 401-403.  While you’re there, it might help to read the entire act which was primarily designed to regulate credit card companies.

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We have parnerships with gift card providers that offer automated online reporting and easy gift card management for single and multi-store retail businesses. 

And, you can integrate your point of sale software with your credit cards and gift cards. 

Call or email today to learn more!

Debra.neville@jdapos.com   978-840-2096 x 242

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Customer Loyalty and Peeping Toms, Part II

If you read Tuesday's post, by now you've figured out who 'big blue' is.

Earlier today, when speaking with one of my blog subscribers, I was asked to confirm blue's identity. I did and  gave even more details about the experience. More positive details that I didn't include in the post. For example: The calls I got came from the manager of the window treatment department; my calls have not come from central calling in Idaho.

 

 Was my experience totally remarkable?  No, it wasn't (but I did remark about it). 

Did 'blue' break new ground in how I was serviced as a customer?  No, they didn't.  But they did service me and that's the point.  And now I'm talking about it again because they called my cell phone yesterday and wanted to do another three-question survey on this blind-replacement experience. As big as big blue is, I'm beginning to think they really care about my business.

There's a lesson to be learned here. I often write about customer service and the loyalty that's built when specialty retailers really service their customers. I often suggest retailers differentiate themselves from the big-box stores, by servicing their customers because the big-box stores don't usually do a good job of servicing their customers. 

I stand corrected. It seems that some of the big-box guys are servicing their customers.

So, if there's only one take-away from this week's rant, it's pay attention to your customers.  You know who your competitors are; make sure you have a competitive edge. Track the customer in your retail point of sale software and you'll really have the competitive edge!

Download a 3-page white paper with some pretty creative ideas to build loyalty.  I didn't create this tag line, but, Just Do It!

Nine Strategies to Create Customer Loyalty

Customer Loyalty and Peeping Toms

I had a recent shopping experience that needs to be shared because it was so off-the-graph positive.

Several weeks ago, I moved into a new townhouse which quickly needed window treatments. I started with cellular shades and went to a large home improvement store that's branded blue. I went through many gyrations of what to install: color, top-down or bottom-up, single header with one large shade or single header with two shades.  In the end, the decision was mine.  But I was slightly misguided by the salesperson, who was very experienced.

The shades arrived at the home improvement store, waiting for pickup. The installer followed and viola! privacy! The installer, who is contracted by big blue, surveyed me after the install.  I answered honestly. My bedroom window could potentially be a magnet for any local peeping Toms. There was a 3/4 inch space separating the two blinds covering three side-by-side windows (a configuration I OK'ed) giving way to a privacy breach.  He jotted down my concerns as he completed his survey. 

Next day I got a survey call from the blue store.  I voiced the same concerns taking responsibility for approving the configuration.

What happened? Big blue replaced the bedroom shades with one large bedroom shade at their expense.

Why did it happen?  Because they want my next purchase to be with them. 

What happened next? Within two weeks of the shade purchase, I bought a new HE washer and dryer during the tax-free weekend. They earned my business; they got my business.

Treat your customers the way you want to be treated (isn't that a 'Golden Rule' we learned in kindergarten?) and they'll be loyal to you.

Track those customer purchases in your retail point of sale software and create a customer loyalty program. Reward them for their purchases and they'll reward you with their loyalty.

"Recipe" for Retail Success?

David LaLiberte has a winning recipe created from scratch:  a cupcake bakery. 

David's little sweet treats not only look beautiful, but taste amazingly delicious (says his POS software trainer, Dave Kelley at J. D. Associates) and are almost recession-proof.  You can purchase (and eat) a feel-good item, without spending a lot of money. 

And, I've read that cupcakes are the new wedding cake!

'Treat's' phenomenal, early success,says David LaLiberte, the owner of the newly opened Treat Cupcake Bar in Needham, MA is due to lots of hard work, connecting with experts like: Retail Concepts, who worked with David for about 1.5 years in preparation for his opening; or for store layout he hired C & J Katz design; for his logo and packaging he hired the 47th; to handle the marketing of his business he hired Marlo Marketing/Communications.

It takes a village of experts to help a business succeed.  Did I mention he hired J.D. Associates to implement his point of sale inventory software?

 

To read more about David's secrets of success, subscribe to the Retail Source, and check out the August 18th issue and read his words verbatim.

To read about David's success, excerpted from the Boston Globe July 31st issue, click here:  Treat Cupcake Bar story

Driving Sales

Today's blog post comes to us by way of Bob Phibbs, The Retail Doctor. And yes, you CAN believe every word Mr. Phibbs says. He'll be the keynote at our event on October 12th in Leominster, MA:  You Can Compete! I'll be blogging about it in coming weeks.

There's really only one way to make money in business and it isn't busting your suppliers over COGs on a monthly basis or your latest coupon promotion. No the only way to make money is drive profitable sales. Without that, none of your percentages of COGs, labor, rent, etc. make any sense.

But it can be tough when you have purchased or built a beautiful car but don't sit in the driver's seat.

Anything but the driver's seat limits your ability to see the whole picture and limits your effectiveness. This short article will help you decide where you are in your car and where you want to be to drive sales.

When you are in the driver's seat you:

• Are actively participating in and driving sales.
• Are setting a path to where the business is going.
• Know how to care for the inside with employees and on the outside with customers.
• Adjust to changing conditions.
• Scan the horizon looking for opportunities and dangers.
• Pay attention to everything on the road and in the car.
• Take care of the car, regular tune-ups, checking the tires, etc.
• Acknowledge, "It's my fault if we crash or don't make it on time."

If you're stuck in the passenger's seat you:

• Are passively watching the world go by; has very little to do with the business' success.
• Are not participating in the day-to-day of sales.
• Are coming and going as you please.
• May think you are helping with directions but may not know how to read the map.
• Are not interested in the car, but what's outside so you comment on the road signs, (competitors down the block, the economy, politics, etc.)
• Don't notice the pothole in the road – only that the driver swerved to miss it –and spilled your drink.
• Take care of the car, regular tune-ups, checking the tires, etc.
• Will say, "If we crash, it wasn't my fault."

If you're stuck in the back seat, you probably:

• Issue a lot of instructions, give a lot of advice, offer no end of criticism.
• Don't do a bit of the hard work.
• Second-guess most everything the driver (or your manager/ partner) does.
• Are often scared at what the driver is doing, especially since the backseat driver may not know how to drive.
• Are stuck in a car that you once liked but instead of acknowledging to not ride any longer, make everyone else in the vehicle's life miserable.
• Have "a better way," not necessarily based on anything other than their opinion.
• Are unable to see the big picture
• As you crash say, "I should have stepped in long ago and put my foot down. No one can do anything as well as I can."

Even worse, you're in the rumble seat.

1. Free and easy person lovin' life. If there's money left over at the end of the month you're successful!
2. No way to even hear the conversations in the car, much less pay attention to any of it.

To read the rest of this article and find out Bob Phibbs' "7 Ways to Jump Into the Driver's Seat," subscribe to our monthly Retail Source newsletter and you'll read it in the August 19th issue.

Researching retail point of sale software? Call Debra @ 978-840-2096 x 242 and talk aobut the right retail technology for your business.

New Retail Rules

New Retailer Rules

This interesting post has plenty of take aways; after you read it on the Retail Technology Blog, commit to one of the suggestions.  I bet you'll infuse new life into your retail store, and may gain some customer loyalty as well. 

Based on the 'new retailer rule' you select, you can run reports in your retail POS to have immediate and accurate data that then becomes actionable.

 

Retail has come full circle: local to global and now back to local. Retailers are trying to cater to the individual shopper preferences of their best customers. Jeff Jarvis’ book, What Would Google Do? inspires ten guidelines that help retailers thrive today.

 

New Retailer Rules

1. Listen to customers.  Convert the critics to fans and the fans to influencers.
2. Become a destination for information.
3. Be transparent.  Share both your successes and failures with your customers.
4. Click here to see the full article presented in a great, easy-to-digest format. Retail Technology Blog

Ecommerce Software: Ways to Make Your E-Store Successful

I will never forget the worst ice storm I have ever witnessed in Central Massachusetts where the roads were impassable for almost a month and power was out for thousands for at least 2 weeks.  The date was December 11, 2008, just 2 weeks before Christmas!  Any similar event that prevents shoppers from getting to your stores at the most critical time of the year could prove to be an unrecoverable catastrophe.

So how does a retailer cushion themselves against such unpredictable and unpreventable disasters?   

To help address this issue, J.D. Associates partnered with UniteU Technologies to host an Ecommerce Summit in June at our corporate office.   This Summit was a full day packed with valuable information for retailers who were either interested in opening an ecommerce store/site or looking to improve their existing ecommerce site’s performance.  

 

Unfortunately, many ecommerce adopters have the idea that if “the build it, they will come.”  This attitude will most often prove fatal to the ecommerce initiative and can also have a negative impact on the image of the entire enterprise.  From the very beginning, ecommerce needs to be treated as seriously as any brick and mortar store to be a success.  The following are some of the key considerations:

 

 

1. HIRE A WEB DEVELOPMENT PARTNER WITH PROVEN EXPERTISE –  Ask the potential development partner for a list of their clients and make calls to assess customer satisfaction.  Also, ask the development partner for a written proposal outlining the deliverables and fees.
2. DESIGNATE A FULL-TIME PERSON TO MANAGE THE E-STORE –   It is good to keep in mind that, unlike your brick and mortar stores, your e-store is open and visible to the entire world!  What do you want them to see?
3. CHOOSE A SHOPPING CART THAT INTEGRATES WITH YOUR EXISTING INVENTORY CONTROL SYSTEM – Integration with your brick and mortar inventory control system (retail POS)can help you avoid stock outs, increase the efficiency of fulfillment, streamline the payment process and track online and offline customer purchases to improve customer loyalty resulting in repeat business.
4. DEFINE THE MISSION OF YOUR E-STORE – It should be eminently clear to you and your customers what you are trying to accomplish.  Keep in mind that the e-store can affect the brand of the entire enterprise in either a negative or positive way. 

Read the rest of the article in the July issue of the Retail Souce, due out on July 21st. If you want to subscribe to our monthly retail newsletter, click here.

THE Place to Work

Today's post is from our guest author, Doug Fleener.
He's so readable and spot on!

I believe that the most important element of specialty retail is our extraordinary people. In order to attract and keep extraordinary people we must be THE place to work. While I know that many specialty stores are great places to work, I'm not sure they're THE place to work. It's sort of like nightclubs. There might be any number of popular nightclubs in a city but there's usually only one or two that people are willing to stand in line to get in to. It takes a lot of work to be THE place to work but, as is the case with most hard work, there are also handsome rewards.

Here are five signs that your business is THE place to work.

1. You rarely have a position open. Not that you never have openings, because turnover is healthy in a store, but because people are clamoring to work for your company you have extraordinary people jumping at the chance to join.
2. Your employees are always recruiting their friends and family. Again, they don't wait until there's an opening because they know how fierce the competition is to get in the door.
3. While some people have worked in your store for a long time, others have moved on to very successful careers elsewhere but are still happy to work for you, if they can, during the holidays.
4. Both current and potential employees can rattle off the perks of working in your store. And because you want to be THE place to work, the perks must be both better and different from other retailers.

Here are some comparisons of perks from a good store and THE store.

Good: 40% employee discount.
THE: $50 merchandising credit every month that can be accrued and used towards a bigger purchase.

Good: Get to participate in charity events at the store.
THE: Get one paid day per quarter to volunteer with a charity of your choice.

Good: Can wins prizes in store contests from time to time.
THE: Can win some amazing prizes in store contests.

Good: Has an annual holiday dinner.
THE: Regularly treats staff to lunch and dinner when working holidays and sometimes just for a show of appreciation.

Good: Is paid well.
THE: Is paid extremely well with the opportunity to earn considerably more when the store performs above expectations.

Good: Is flexible with the schedule.
THE: The staff can, within reason, practically write their own schedule.  

Good: Receives regular training.
THE: Is pushed to grow and develop every day.

Good: Are regularly thanked for their services.
THE: Are regularly thanked for their contribution, and formally recognized for their individual performance and contribution to the store's success.

You get the point. If you want your business to be THE place to work, the perks must be better and different.

5. Last but not least, you communicate to your customers what an amazing staff you have. Why wouldn't you, since it's your competitive advantage? So let me ask, are you THE place to work in your community?

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Contact Doug to learn how he can help you transform your business or meetings.

Call: 866-535-6331
Email: doug@dynamicexperiencesgroup.com
Tweet around with him on Twitter: twitter.com/dougfleener
Web: www.DynamicExperiencesGroup.com

The Re-Return of the Layaway

This is a rerun of a former blog post that was popular with our readers:

The layaway concept dates back to the Great Depression when retailers gave customers a chance to buy items they would not have been able to afford otherwise. Kmart has had a  layaway program for more than forty years.  It was available to customers the day the store opened its doors for business or soon thereafter. I suspect it's been a profit center.

Here's a short list of national retailers who currently offer layaways (some multi-store retailers offer layaway, but only in selected stores, strangely enough): Sears, Kmart, Toys R Us, Best Buy, T.J. Maxx, Fashion Bug, Victoria's Secret, Kay Jewelers, Walmart (did away with layaway in 2006, but some stores offer jewelry layaway), Burlington Coat Factory, Marshalls and AJ Wright.

Have you considered a layaway program for your store? Surprisingly some high-end women's shops have a layaway program; it's an opportunity for their shoppers to make a major purchase without worrying if that 'must-have' item will be out-of-stock when they have the cash to buy it.  It's also an easy way to grab popular gifts.  Layaway is making a comeback and the reasons make sense.

The consumer is becoming more grounded, thinking more about planning and budgeting than before the economic slowdown. Many are realizing that credit card companies are making lots of money on their late payments; putting stuff on credit cards is falling out of fashion.

Creating a layaway plan can be the best service your store offers, but there are a few things to think about:

1. Make sure your retail POS system can track those committed items so you have them in stock when your customers pick up their layaway. 
2. Get a deposit.  A percentage of the purchase price is often charged.
3. Make sure you have terms (30, 60 or 90 days) with payments every week or bi-weekly.
4. Are there restrictions on what can be placed on layaway? Put everything in writing--it's your 'layaway agreement'--and it'll be clear to you, your staff and the consumer.
5. Will you charge a non-refundable service fee? 
6. If they change the layaway in any way, a 'cancellation fee' can be charged.
7. No cash refunds should be given. Any returns should be converted to a gift card or store credit.  Whatever you do, it should be easily tracked.  That happens most effectively through a retail POS solution.
8. If you sell fine jewelry, you may want to extend the terms as the items are far more expensive than most average inventory. 
   
9. If you offer layaway as a convenience to your customers, promote it thought in-store signage. You might also want to promote it on high-ticket items.

There are lots of consumers out there who consider themselves frugal and they love layaway; it's now very trendy to be thinking of your finances compared to just a few years ago when we were credit-card crazed. Make layaway into another twin-win situation.  If you have your layaway program well-thought-out and in writing so there are no surprises--and you're willing to provide the administration necessary--a layaway program will give your customers what they want and need and, you'll make sales.

If you're a Microsoft Dynamics RMS or POS 2009 or Retail Pro user and want to know more about layaway, click here for some documentation on how to create a layaway in your retail POS. 

If you have more questions send an email to: support@jdapos.com

 

 

Do You Have Dormant Customers? Wake Them Up!

I recently read an article about dormant customers. It's a huge, costly problem; we all have them in our businesses.  The challenge is:  how do you wake them?  How do you get them talking to you about them, about your business, about what they'd like to see on your shelves in your store? How do you get them involved? The article I read gave some good suggestions, some I've written about in the past our our retail blog, while others have been addressed through our 15-second marketing tips.

At its most basic level waking dormant customers means talking with them. Ask them what you can be doing better in your business that will impact them in a positive way. Listen and cull their great ideas.  You might even build a campaign around identifying those who make suggestions by creating a 'Conspicuously Excellent Tip of the Month' program in the store. Interview them and put that interview on YouTube (with their permission, of course). Have some fun with the interview. Or give them credit (even a store credit) for the idea and market it to the hilt in your store.

To read the article in full, check out the link: How to Wake Dormant Customers.