J.D. Associates Retail POS Solutions Blog

"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

Get Ideas From Your Competition

When was the last time you went shopping for ideas? Yes, I said ideas.

Although you may be doing a pretty good job running your business, you can always do better. You have to work harder and smarter to get consumers to part with their dollars. It seems like you have to come up with new ideas all the time to attract new customers and cultivate existing customer loyalty. But where can you get all those new and creative ideas? Steal them! Or if that terminology makes you feel uncomfortable, then just borrow them.

It seems the only thing that retailers notice about each other is how their competition prices their inventory. What's the best way to find out about some new and exciting ideas from other retailers? Go shopping! Most retailers get so bogged down in their day-to-day business that they don't take the time to get out and shop the competition. Although price is more important today than it was before the recession, it's not the only thing that customers factor into a buying decision. So what do you look for when shopping another store?

1. FIRST IMPRESSIONS are often a determining factor when people are making buying decisions. You feel a certain way about a store when you first walk in.  That could be good or bad. How does your store look, feel, hear and smell to your potential customers?
2. HOW WELL IS THE STORE MERCHANDISED?  If the store doesn’t carry the merchandise I want, or if I can’t find the items I’m looking for because the placement of the merchandise makes no logical sense, I probably won’t return to that store.  If I can’t find it, I can’t buy it.  By shopping your competitors, you may get some great ideas on how to better merchandise your inventory and pair up complementary items.  
3. HOW IS THE STORE HYGIENE?   Is the store clean or is it a pig sty?  A dirty store tells the potential customer that you have no respect for them and, if they come to that conclusion, they won’t buy from you.   Additionally, they will tell their friends.
4. ARE IN-STORE PROMOTIONS AND EVENTS OBVIOUS AND ENTICING?  Promotions and events are becoming increasingly important.  Not only do stores need to keep their inventory fresh, they need to create a “buzz” that attracts return visits.  
5. DO YOUR COMPETITORS HAVE A GOOD SELECTION OF MERCHANDISE AND IS IT COMPETIVELY PRICED?  Knowing your customer is critical when selecting merchandise.  Successful stores are constantly monitoring trends and customer preferences.  A retailer’s point of sale system or POS software usually has customer relationship management capabilities that unobtrusively track the buying habits of their customers.  A point of sale system collects data to feed these now necessary business intelligence tools.

Shopping your competition is not a onetime deal. Scheduling the time to shop on a monthly basis is the best way to ensure that it will happen. Don’t go to the same stores every month.  Mix it up.  If you’re afraid you’ll be recognized as a spy, send a mystery shopper.  But don’t forget to take notes, notes and more notes.  

You may be surprised at how rewarding shopping can be.

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Are you looking for key financial information that will help track and manage your retail performance? 

Download the complimentary copy of How To Get To the Numbers That Matter In Retail (12 pages) and discover how the small changes can have a large impact on your bottom line. 

The Return of the Layaway

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 Customer Loyalty Programs Really Work? Part I

“Customer Loyalty” is certainly the buzz these days in retail.  Loyalty programs extend to almost every retail vertical market with few exceptions.  So if loyalty programs are so ubiquitous, why aren’t they more successful? Interested in becoming a retail pro?

First of all, what is a customer loyalty program?  Generally speaking, a customer loyalty program is a concerted marketing effort to attract and retain customers as well as to increase customer shopping frequency and the dollar value of their purchases.  Customer loyalty programs come in all sizes and flavors with benefits ranging from immediate discounts on purchases to “point” accumulation which can be used in the future for free or discounted merchandise.  Most serious Point of Sale Systems are capable of integrating with various types of customer loyalty programs.  Unfortunately, many retailers believe that if they install a customer loyalty program at Point of Sale, they will experience immediate and dramatic success.  This is rarely the case.  A long-term customer loyalty strategy must be implemented and regularly monitored for effectiveness.  When developing a customer loyalty strategy certain considerations deserve attention.

1. Who are you trying to target?  To answer this question, you need to run a report on your best customers.   They aren’t necessarily the customers you see most frequently in your stores.   Often, customers who are perpetual bargain hunters show up at your stores on a regular basis to see what you are “giving away.”  They seldom buy at full price and, when they do buy they often have a higher-than-average return rate.  In fact, they’re probably costing you money.  A “Best Customer – Worst Customer” report will give you all the information you need and help you tailor a customer loyalty program that will be attractive to your best customers.
2. How do you make your customers aware that you offer a customer loyalty program?  Several weeks ago I visited my local card and gift shop and something dawned on me.  Every time I went to pay for my purchases, a clerk would quickly ask me if I had a Hallmark reward card.  Usually, in a rush to get out of the store, I would invariably say no, and I would be on my way without anyone asking me if I would like to sign-up for one.  Finally, the last time I made a purchase at the store and was asked if I had a card, I took the initiative and said, “No, but how do I get one?”  The clerk courteously gave me a brief form to fill out and issued me a key chain card.  She still never told me what benefits I would get by using this card, and again, because I was in a hurry and customers were waiting in line behind me, I never asked.  So I am walking around with a card that has “mystery” benefits anxiously awaiting the tchotchke I will get after my 10^th purchase.
3. Are you offering rewards that are desirable to your best customers?  Once you have a list of your best customers, study their buying habits and try to come up with some common denominators.  What types of merchandise do they buy and how often they frequent your stores?  With this information, you can segment your best customers and even customize their rewards according to their preferences.  For example, since I am a male reward card holder who frequents a local pharmacy for toiletries, I really don’t want a “bounce-back” coupon offering me a free tube of lipstick after 10 purchases.  I find these types of rewards not only annoying but insulting. 

Part II will be posted on Tuesday, March 2nd.

If you'd like to find out about our Customer Loyalty Programs written for Retail Pro, then click on the Customer Loyalty for Retail Pro.

 

Build Customer Satisfaction - Start Today

2009 was a challenging year. But Christmas wasn't cancelled; customers spent money, hopefully in your store. And there will be lots of new customers redeeming their gift cards over the next few months - and beyond. This is a huge opportunity for you and your staff to build your customer base and fill it with ‘raving fans.’ How do you do it? With off-the-graph customer service, that's how. Do something different that distinguishes you from other retailers to get your customers talking about thier experience in your store. And you should be tracking all customers through your retail POS system, or as some refer to it, your inventory management software. You need to know what they buy so you can target market to them, based on their buying history. POS systems will tell you this information in great detail. 

Be prepared to serve them in a way that is remarkable. You want your customers to say remarkable things about you, your store, your brand. Look at the word REMARKABLE. Within the word is the word-REMARK. You want them to remark about your store to their friends. Set a good example of how the customer should be treated and your staff will follow your lead. This should be your marketing plan cornerstone for 2010 and beyond.

Is Lean Inventory Good Inventory Management?

The strategy of many retail operations for this holiday season was to go lean on their ordering.  They are hopeful that this approach will cut down on their post-holiday inventory dumping and less inventory management.  Although that strategy may have some merit, it could also backfire for future sales. 

A couple of weeks ago, I was shopping for my wife at a well-known higher-end woman's store.  I must note that I was the only customer in the store at the time.  Being a man with a hunter's instinct, I honed directly in on my target and within a minute or two found exactly what I wanted, I thought.  Then I went to look for the right size.  I searched rack after rack with no success.  Only after I had spent about five minutes looking throughout the store, had the manager approached me and asked if I needed help.  When I told her I could not find the appropriate size, she immediately told me that all of the inventory was on the floor and the store would not be restocked with additional sizes before the holiday.  She didn't even bother to ask me what size I was looking for.  Nor did she ask me if she could help me find something else! 

I left without making a purchase and bought a comparable item at another store. She missed out on creating customer satisfaction leading  to my customer loyalty.

This experience was certainly a "retail turnoff." If the unproven strategy is to go lean on inventory during tough economic times, shouldn't retailers train their help to deal with this situation in a productive and positive way?