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Customer Loyalty and Peeping Toms, Part II

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retail customer loyalty

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.

customer loyalty

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

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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.

peeping tom

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.


Do You Have Dormant Customers? Wake Them Up!

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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.

quiet customer

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.


Scan This Barcode Article, Will You?

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Many, many, many, many years ago, while in high school, I worked part-time at a grocery store.

retail_helpBeing a stock boy, I was armed with my trusty price gun, which was the only way to tell how much each item cost since there were very few barcodes (which were useless anyway since there were no scanners to read the barcodes). If someone needed a price check, the manager would have to go to a huge paper price book in the office and look up the correct price. When an item was put on sale, it would have to be manually repriced and then priced back to full retail when the sale was over.


Then there was the checkout line. I guess in those days we were more used to waiting than we are today and wait we did. Regular customers would know to wait in "Crazy Cathy's" checkout line even if there were more customers in her line because they knew from past experience that her fingers would rip across the keypad with unwitting speed and accuracy. I often imagined her with a candelabra sitting on top of the register and wearing a sequined smock with a crystal name tag since she was, of course, the "Liberace" of the cash register.


There was the dreaded quarterly physical inventory. Attendance at these quarterly love fests was mandatory, and everyone was given a graph pad of paper and assigned a department. Number 2 pencils with clean erasers were mandatory in case you made a mistake. After all, the bookkeeper was going to have to spend many long and tedious hours reconciling the inventory. She didn't need to see dirty smudges all over the graph paper.


Weeks later the inventory report was ready for review and the losses were calculated. Shrink trends were hard to spot and generally went unnoticed or ignored. So often we take for granted the time and money that the little label with the bars saves us every time we make a purchase or as an employee, scan a purchase for a customer.  Interestingly enough, the first retail application for barcodes was developed for the grocery industry in the l960’s and is now present in all types of retail businesses.  Although we seldom give it a second thought, the barcode has completely revolutionized retail.


keys_cash_register•    We can receive our inventory in the backroom with a portable scanner and instantly update the on-hand quantities in our retail (pos) point of sale system.
•    We can print barcode tags for every item received and get them onto the sales floor where they belong in record time.
•    We can transfer inventory by scanning the items onto a transfer document that will permanently update quantities in both the sending and receiving store.
•    We can put items on sale instantly and change them back to full retail without changing a tag.
•    We can speed up check out at point of sale while giving the customer full visibility to each item as they are scanned.
•    We can eliminate the need for timely price checks by strategically placing price check kiosks on the sales floor.
•    We can run sales reports down to item detail instantly and whenever needed to help eliminate overstock and understock.
•    We can print customer loyalty cards with barcodes for every customer and give them meaningful rewards for instant or return shopping.
•    We can take frequent full-store physical inventories or cycle counts by department with a fraction of the staff in a fraction of the time saving thousands of dollars and giving us instant actionable data regarding shrink and trends.
Barcode technology and usage continues to expand and develop at a rapid rate saving retailers billions of dollars every year.  No longer do we require the skills of a “Crazy Cathy” to make our customers happy.  Today anyone, including the customer, can scan items with ease and accuracy.  Technology marches on!

 


Do You Love Your Customer? Be a Retail Pro

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Let us count the ways.

Customer satisfaction guaranteed.
 
Every company values its customers; right?  Sometimes we lose sight of the customer as we focus on the bottom line.  But forgetting that the customer is the most important focus is precisely what will alter that all-important profit and loss statement.  We must love our customers.  We must treat each of them as though he or she, alone, determines our strength as a company.  Because each does.  And we need to show all of them just how much they mean to us.
 
The customer is always right. 

Let's consider the things that make (and keep) consumers happy.  When clients have a question or a problem, can they speak to a real person when they call your business, or must they navigate through a bothersome automated substitute?  And what about when they make a special request?  Does your company do everything possible to meet their needs?  And have you ever followed up with customers?  Have you given them a survey about their experiences with your company?  What have you done with the data collected?  Do you act?  Reshape policy?  Modify procedures?  You should. 
 
The customer is king. 

Customer service is one of the most important ways you can market your products and services.  Providing an exceptional experience for customers will ensure their return for future business.  Happy customers, those who have experienced extraordinary service, will tell their friends, their business acquaintances, anyone who will listen.  Some will even write about their experience with your company online.  That's good press.  It's worth the investment. 

The quality of our work depends on the quality of our people. 

How do you know that your customers are really being taken of?  Do you personally talk with each one?  No, of course not.  And that is why customer service must be a company-wide focus.  You have to hire people who love people.  You need to have a meeting with everyone who has contact with your customers.  Even the receptionist, especially the receptionist, needs to have a voice in deciding how your company, your brand, will interact with the consuming world.  Each of your employees must know that he or she, and therefore your product and services, will be judged by what he or she does in every single interaction with a client.  There are no exceptions.

If we don't take care of our customer, someone else will.

Consumers are savvy.  They know the difference between outstanding customer service and lip service.  Their opinions are easy to analyze because they vote with their dollars.  They also notice the little things. great customer service Perhaps you guarantee to fix a glitch with your product within 24 hours and free of charge.  Maybe you make sure that every employee in your office knows the names of your clients and greets them personally when they enter.  You may offer a soda or water to anyone who enters your place of business.  Whatever it is you do to make a customer feel comfortable and welcome is noticed.  Don't be afraid to invest money in making them happy. 

To my customer:  I may not have the answer, but I'll find it.  I may not have the time, but I'll make it.

What will be your customer service goals in the new year?  What can your company do to set itself apart from the competition?  How will you treat customers so that they return to you?  How can you make sure that every meeting and every phone call leaves the consumer feeling at ease, at home, and ready to trust his or her business with you?  You must first decide just how important he or she is to you.

 

(guest author: Virginia Weinstein, The Partner Marketing Group)

_______________________________________________________

 

Live DEMO? Say YES!


5 Considerations In Building a Retail Brand

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Tell the world who you are. Brand yourself with the hot iron of success.

What are some of the things that come to mind when you hear Bloomingdale’s?  Exclusive, high-end designer merchandise, unique-and-wide selection, great atmosphere, superior customer service, and a place to treat yourself? These are just some of the things that immediately may come to mind. Opening its doors in 1872, the Bloomingdale brothers knew that if they were to succeed big-time in the Big Apple, they had to do something different.  Instead of selling what everyone else was selling, they imported high-end European fashions and by the 1920s they had expanded into an entire city block.  They knew who their loyal customers were, listened to them and, amazingly, 128 years and many stores later, still do.  They recognized the value of “branding” and consistency and were generously rewarded.


What is branding and why is it so important?  Branding is the unique image that goes through a person’s mind when he or she is thinking of your store(s).  When done right, a consistent theme should dominate and that theme should withstand the test of time. 

Another great example of branding is Disney.  We all have images imprinted on our brains when we think of Disney because those images have been pretty unique and consistent throughout most of our lives.

retail shopping bags
How is successful branding achieved?  Branding isn’t always in a name.  After all, before Disney created his magic, the name Disney meant little or nothing to the general public.  Now it is synonymous with a certain mouse, some theme parks, many movies, and exciting vacations.  This recognition and association did not happen overnight.  Whether your store be a small family-run business or a large chain, brand strategy and recognition is critical.  A starting point might be to ask yourself the following questions:

  1. HOW DO YOU WANT THE WORLD TO VIEW YOUR STORE(S)?  Is there something unique about your store(s) that causes the public to remember you in a certain way?  It might not a bad idea to make a list of what you think makes you unique and take a customer survey to validate those perceptions.  Sometimes who we are and who we think we are can be two very different things.
  2. WHO ARE YOUR CUSTOMERS?  Do you know the average profile of your most loyal customers?  Why do they shop in your store(s)?  How can you be sure you are buying the right merchandise if you don’t understand and know your target customers?   The saying “You can’t be all things to all people” is especially true in retail.  It is important to find your niche and work it to the hilt.
  3. IS YOUR MESSAGE CONSISTENT?  There are many ways to message your brand.  You can do print advertising, television, e-marketing, social-cause marketing, and event marketing to name but a few.  All of these methods should present a consistent image of your store(s).  This message could be in a store name, logo, slogan, song, in-store graphics, website or all of the above,  as long as it is pervasive, consistent and appropriate and gets across the image you would like to project.
  4. DOES YOUR BRICK-AND-MORTAR STORE HAVE A CONSISTENT AND CUSTOMER-CENTRIC ATMOSPHERE?  Is the store designed and merchandised with your loyal customer profile in mind?  People spend money in places where they feel most comfortable.  That’s why teens and young adults spend big bucks at stores like Aeropostale and Abercrombie and Fitch.  They feel comfortable and know what to expect.  Conversely an elderly woman might feel most comfortable in the Alfred Dunner department at Macy’s.  She also feels comfortable and knows what to expect.   Most importantly, both the teen and the elderly woman identify with the brand.
  5. DOES YOUR WEBSITE DELIVER A MESSAGE THAT IS CONSISTENT WITH YOUR STORE IMAGE?  Successful branding demands consistency throughout the enterprise.  Your website and/or e-store should be a reflection of your brick and mortar store(s) and be easily recognizable to your target customers.  Choosing an inexpensive and amateurish standard template driven e-commerce solution can result in a long-term costly mistake.  Your website is your window to the world.                                                   

    In a world racked with political and economic turmoil, it is easy to impulsively change your direction and message in hopes that another approach will work better.  If your message becomes unclear or confusing and you lose sight of your brand, you may also lose your best customers. If you don’t understand who you are, it is unlikely your customers will.

Grow Your Retail Business Using Our Point-of-Sale Software.

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Cause-Related Marketing Can Be Good for Your Retail Business

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Six Benefits to Cause-Related Marketing (CRM) 

There are lots of different ways to approach CRM; you need to decide which is best for your company and the charity you support. You walk a fine line with your altruism.  Make sure you're authentic; then your efforts will be received in the way you intended: philanthropic first and foremost. Research, research, and more research for your CRM approach.

What is CRM? A definition you’ll see on many websites defines CRM as, "The association of a for-profit company with a nonprofit organization to raise money for the nonprofit while promoting the product and services of the for-profit."

It’s what I call a twin-win situation as both organizations can benefit.

cause related marketing

The phrase, Cause-Related Marketing was coined in 1983 by American Express for a three-month campaign that donated one penny to the Statue of Liberty restoration project, each time anyone anywhere used their AMEX card. It was hugely successful. That year during the Statue of Liberty campaign, AMEX had a 45% increase in new users and a 28% increase in card use. More than 1.5 million dollars were raised.

Several years before the AMEX campaign, in the late 70s, Wally Amos became the national spokesperson for Literacy Volunteers of America (LVA); it brought attention to his Famous Amos brand of chocolate-chip cookies and LVA which sparked new LVA programs across the country. Other examples of cause-related marketing? Paul Newman and his line of Newman's Own cookies, spaghetti sauces etc. have raised more than 250 million for many charities. Of course, Ben & Jerry’s ice cream was an early adapter of cause marketing as a major contributor to a new charity each year.

In the 2010 Super Bowl, Pepsi sat out from the ad blitz for the first time in their 23-year ad spot history and donated 20 million from their ad budget, in the form of grants, to laid-off workers or setting up free community health clinics around the country. As a cautionary measure to Pepsi: (and all companies who use CRM as part of their marketing plan) they need to be perceived as doing the right thing versus trying to push more pop on an already-drowning-in-soda society.

Why Cause-Related Marketing?

It’s socially responsible for businesses and heightens the public awareness of both the company and the charity. It can be a significant boon for both. You want to pay attention so the charity you’re supporting doesn’t do anything to damage their reputation, therefore your reputation. Research well and choose wisely.

Alden Keene’s 6 business benefits to cause marketing: 

Cause-Related Marketing:

  1. Can directly enhance sponsor sales and brand.
  2. Is respected and accepted business practice.
  3. Can heighten customer loyalty.
  4. Can boost a company's public image and helps distinguish it from the competition. I would add that it can also give corporate PR officers a new story to tell.
  5. Can help build employee morale and loyalty.
  6. Can improve employee productivity, skills and teamwork.

If your company isn't prepared to be philanthropic with or without CRM, try 'giving back' yourself. First figure out what spins your wheels.  Then try to match up your passion or interest with what's needed in your community. My company, J.D. Associates, is committed to Habitat for Humanity North Central Massachusetts.  I'm a Literacy Volunteer of the Montachusett Area.  

It feels good to do something bigger than yourself.  Most everything is.


8 Lines Customers Love to Hear (that build customer loyalty)

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This post is directly from the Monday, April 26th issue of NRF SmartBrief:

The company owner sets the rules, and employees need to live and know them. The old adage "the customer is always right" isn't realistic, but empowering employees and rewarding employees for superb service helps each customer sense your appreciation. (Aren't we talking about building customer loyalty?).

customer loyalty in retail

Perhaps sharing the following with the front-line people can add to the desired goals of dependability, promptness and competence.  Helping the customer service representative communicate in an upbeat, positive way, may just help the customer feel appreciated. Here are some useful phrases to incorporate in customer communications:

  1. "Good morning. How can I help you?" This starts the conversation in a friendly, non adversarial tone plus invites discussion. A customer feels you want to help them and not sell them a product and also putting them at ease.
  2. "I can help you solve your problem." Now the customer service professional places the customer as the most important participant and promises a positive outcome. The positive statement inspires customer confidence.
  3. "I am not sure of the answer but I will find out for you by ...." A sophisticated buyer could be bating a customer service representative for an answer the customer already knows, so it is always best to be honest and not just try to wow a customer with some fancy rhetoric without a definitive and honest answer. Honesty answers inspires integrity.
  4. "I am responsible for this and I will take care of it." A customer knows what to expect and can depend on the customer service representative to stick by the agreed upon terms, price and if applicable, the promised delivery date.
  5. "I will call you on Friday (or whenever) and update you on my progress." If you promise to call on Friday with updates, make sure you follow-up and make sure you call.
  6. "Your delivery date is set for ...." If a delivery date is set for Thursday, it is the company's job to make sure the delivery day is met. Sometimes it takes a better relationship with vendors to ensure delivery dates. When companies pay vendors on time, learn to deal with honorable vendors, insist on reliability and dependability of their vendors, delivery dates happen at specified and agreed upon dates and times. Efficient pre-planning and efficiency don't just happen; they are cultivated and nurtured.
  7. "I have the particulars of your order. Let's go over it." Each order must be exactly what the customer ordered. Customers don't want to hear of a similar product or a promise that what you are going to deliver is better. They want what they ordered.
  8. "Did you get everything you ordered and are you satisfied with your order?" The order should be complete and the customer should have everything they ordered, in the time they ordered, in the method agreed upon when ordered, and in great condition.

Superior customer service includes, the infamous "I appreciate your business, and is there anything else I can do for you?" Follow up with surveys, thank you notes and, more service; customers are sure to keep coming back.

Build it (customer loyalty) and they will come! Click here for: 9 Proven Strategies
That Increase Customer Loyalty
!

 


Does Customer Loyalty Create a Referral Engine?

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Get back to fundamentals.  A satisfied customer is your best salesperson.
 
According to Incentive Central, "...Existing customers cost less to reach, cost less to sell, are less vulnerable to attacks from the competition, and buy more over the long term." You always need to be building your customer base, but not at the expense of forgetting those customers who've help make your retail business very successful. Since your best salesperson is your customer, how do you inspire them to talk about you?
  1. Develop a customer communication program.  There are lots of options.  An e-newsletter is quick, relatively easy to publish and able to be tracked for open rates.  You can use Constant Contact or JangoMail as your vehicle to send your e-communications. You can instantly see what articles/offers resonate with your customers by analyzing what they open, how many times they open it, and conversely, what they don't open. Through your e-newsletter remind your customers of your services and products. Communicate at least monthly and make them feel good about doing business with you.
  2. Create a Rewards for Referral program. This is an organized way of not only saying thank you to your customer for giving you a new customer referral but also staying top-of-mind for the next referral. Click here to see the J.D. Associates' Rewards for Referral program and get free Stonewall Kitchen products for 6 months! We continue to work it - to ensure it continues to work.
  3. Surprise marketing. Use the power of surprise to surprise.  Keep it fresh, make it different and you'll become REMARKable. I've heard about lots of ways business owners do this successfully. The following ideas have stuck with me since I first heard about them: I read about a female owner of a former Saturn dealership who gave a flower(s) to customers who bought a car. Or the business owner who gives lottery tickets to her best customers each month or when the jackpot reaches a certain amount.  Another retailer gift-wraps a goodie and puts it in their bags of purchases to open on their way home. A local retailer used to give a trendy soft, fizzy drink to those customers who come in the store. Finally, chocolates!
  4. Feedback is critical.  Responding to the feedback is even more critical. Build on your successes but be prepared to address your weaknesses/complaints.  You can turn the feedback into the basis of your "recovery strategy.' This can be your way of making amends and correcting something that has gone wrong:  Service?  Attitude? Product quality?
 
What have you done lately to retain your customers?
 
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How to Incease Sales With a Company-Wide Clean-Up

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Is your business at risk of being yellow-taped
as a disorganization crime scene? 

A once-a-year spring clean-up will drive sales. Having clutter around your POS system, on the sales floor and in your back room (near your inventory management software system area) will cost you time.  It may even cost you sales.

Imagine this: your customers are in line and you're looking for a product on the sales floor or in the back room. Your POS system won't allow you to pause a sale; customers wait because you're unorganized.  The POS system area is cluttered, the back room is a disaster and you have to walk around the unorganized messes to get to where you need to be. That too, is unorganized. In the meantime, the customers are mentally tapping their fingers (and muttering under their breath, "Gimme a break, I've got more important things to do than stand for a few extra minutes in line." 

retail POS system

WHAT TO DO?

WHERE TO START?

According to Julie Morgenstern, author of "Organizing From the Inside Out," set aside one day a year as a 'clean-up day,' Yes, you're taking some key staff off line, but your unorganized retail life is costing money. Below are her five steps to getting and staying organized:

1. Prepare in advance. Make a list of the supplies you'll need for this project and have them on hand: bins, labels, trash bags etc. No Home Depot or Staple runs to interrupt the pace.

2. Select a leader to guide staff. This person is well respected and is decisive. 

3. Determine the guidelines of what stays and what goes.  Your staff shouldn't and can't make this decision themselves.  You and your leader should write the guidelines; your leader shares those guidelines.

4. Reevaluate the space for efficient work flow. What do you do in the back room that needs a better work flow? Gift wrapping?  Ordering? Receiving merchandise?  Tagging? Make sure everything you need to complete a task is laid out in the order you need it with little movement so there is economy of space and movement.

5. Label areas to help staff stay organized. Clutter-free space sustains order.

It's everyone's responsibility to help maintain order by putting things back where they belong.  The author thinks that you're really setting them up for their next use. By keeping your business organized and clutter-free, your employees will have more time to spend with their customers, building relationships (customer-loyalty building) and increasing sales.

Our point of sale software systems (we have four in our portfolio) inherently force you to order your business.  You can pause a sale, all past customer receipts are archived, you can determine if an item is in stock from your retail POS systems screens, and plenty more. Fill out the form by clicking on the link and I'll call you today to determine how we might help you organize your retail life with a top-notch POS software.  I might even call you in the next 15 minutes.


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