J.D. Associates Retail POS Solutions Blog

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

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?

_______________________________________________________

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

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.

Scan This Barcode Article, Will You?

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

Being 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.

•    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!

 

Meet Five Retail Experts

Today's blog post is devoted to five retail experts I know personally.  Some have written for the Retail Source, our monthly e-newsletter, some have been keynotes at retail-focused seminars sponsored by J.D. Associates.  All are good guys. Check out their sites; if they have a newsletter, subscribe; if they offer consultation time, and you feel you need it, call them. I guarantee you'll learn something. Their range covers HOW TOs in: customer service, customer loyalty, retail POS, retail expansion, business intelligence, KPIs, point of sale software and many other important retail topics.

In alphabetical order:

1. Jim Dion: Written books on retail like the Idiot's: Retail Selling Ain't Brain Surgery, It's Twice As Hard. And he's very funny. Can keep a large audience interested and entertained for hours. He's been the keynote at two seminars sponsored by J.D. Associates. www.dionco.com
2. Doug Fleener: He writes every day(!!) and has a retail quote that's formatted to be printed and displayed for your staff to read and hopefully be inspired by. Often times I print out the quotes to keep them top-of-mind. He's so readable and often very humorous. www.dougfleener.com
3. Ted Hurlbut: He's a retail expert with experience to the hilt. Has contributed to our newsletter and has more than 25 years of retail expertise under his belt. His website tagline is: Helping Retailers Make More Money. Now that makes good sense. www.hurlbutassociates.com
4. Rick Segel: Rick is well known in retail and on the speakers' circuit. He's been a keynote at a J.D. Associates-sponsored seminar. Has written the Dummies book on retail: The Retail Business Kit for Dummies. www.ricksegel.com
5. Mike Tesler: Mike has many years working in and around retail and it shows in his ability to help retailers. His website tagline says "we help retail entrepreneurs build the businesses they envision." And he's so good at it. www.retailconcepts.com

Knowing the right company to call when you have a retail-related concern is critical. We know retail (our tagline) and we know POS systems.You can always start with J.D. Associates and we'll point you in the right direction.

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Top 10 Mistakes Retail Independent Businesses Make

The top 10 tips below, courtesy of Bob Phibbs, The Retail Doctor  I'm passing Bob Phibbs' list along because it caught my attention. 

Some of his mistakes that retailers make can be quickly corrected through the use of POS software.  We've got a POS system for every budget.  Let's talk.

1. They hire the exact same person as themselves. This works if all you want to talk to is people like you, but having a balanced crew lets you speak to all four of the personality types. With only one type of person, you often find a "hive" mentality where it's us versus them. I've witnessed this first hand; one time I walked into a busy sewing shop - you'd think I had lobsters growing out of my ears as they stared, never getting up or trying to engage me. How did they not know I wanted 10 machines for the new high school?
2. They fill their stores with merchandise based on "gut feeling." Rather than having a system to replace the sellers as well as remove the dogs, their floor is littered with duplicates that leads to the merchandise being dated, shopworn and inhibits their ability to repurchase best-sellers.
3. They have no sales process. This leads to customers doing all the work and employees that become slackers. Clerking has no place except in fast food - no, it has no place- everyone can up sell.
4. They display their merchandise with no flare, creativity, or system. Stack it on the shelves and hope it sells. More often than not, it's accompanied with a handwritten starburst sign with a price, rather than a fun sign that makes us stop and consider the items in the display. Remember: just because it's cheap doesn't make it 'want-able.'
5. If they have a website, it frequently is lacking in the most crucial details -- rendering it invisible to potential customers. Because owners don't understand the Internet, many throw up their arms and settle or tell themselves it's great when it misses on the most basic of criteria.



6. They train by crisis, instead of logic. This often means the best employees leave quickly and the worst are rewarded. Being the chief only means you'll be the one taking all the stupid questions when you take a day off or go to the bank.
7. They do not review employees to high standards; this allows the weak to thrive on the owner's dime.
8. The only quiver in their bow is to discount their merchandise, price match and participate in multiple discount programs anyone brings them, in a wrong-headed belief it will grow sales. This robs profits and often means they're putting money into the business, instead of taking it out.
9. They have little or no presence on social media, which means they are unaware of what customers are saying about their business.
10. They whine that it's the economy, government, or their online competitors who are ruining them - never taking responsibility that it's up to them to make a profit.

 

Cause-Related Marketing Can Be Good for Your Retail Business

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.

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.

HELP WANTED--Professional Worrier

My 84-year-old mother, dear lady that she is, happens to be a professional worrier.  A day doesn’t go by without a worry list.  If it happens that there is nothing current to worry about, she digs something up from a past list.  If, perchance, she is having a halfway decent day, she always says “everything is going okay, so far……”   I used to question her worries but realized over time that any challenge to her “profession” (worrier) would only result in more worries.  So I gave up and like a dutiful son, I now just listen.

The mass media happen to be a lot like my mother.  Worry sells news.  Most of what you read and watch in the news is negative.  Very little time is devoted to the positive.  Take for example the evening news.  Almost the entire 30 minutes of the news is devoted to “bad” news.  Only at the very end of one network newscast do they have a regular segment lasting about a minute highlighting some positive news.  So why wouldn’t they do the same when talking about the economy and retail sales?
The latest news from the Commerce Department reported on April 14, 2010 was that retail sales had beat market expectations for the second month and risen 1.6% instead of the 1.2% expected.  This rise can be attributed to several factors:

1. PENT-UP CONSUMER DEMAND - In spite of the high unemployment rate, the consumer is tired of self restraint.  Most consumers have been on a spending diet for two years and they are now ready to splurge a little.
2. BETTER MARCH WEATHER IN MUCH OF THE COUNTRY – Many parts of the country experienced better weather than usual putting the consumer in the mood to shop.  Retail point of sale systems are finally beginning to wake up from a long sleep.
3. EARLY EASTER – Easter came earlier than usual this year so much of the Easter shopping was done in March.

Now let’s get out the worry machine.  The media are predicting very short lines at point of sale in April because everyone did their shopping in March.  If retail sales happen to fall below expectations in April, the media will rejoice in an “I told you so” moment.  Like golf, the state of the economy is deeply affected by psychology.  Although sound fundamental principles are necessary in both golf and the economy, if you approach either with a negative attitude, success is doubtful.  
We are beginning to see more positive trends than “blips” in the overall economy and retail.  There are many indicators that are pointing to economic recovery.  Are we there yet?  Of course not.  But we’re alright, so far….. 

The Seven Deadly Sins of Retail Management

Today's post is written by our guest author, Doug Fleener.  He's one of the most readable and prolific retail bloggers. 

I'm sure that most of you are familiar with the Seven Deadly Sins of pride, envy, gluttony, lust, anger, greed, and sloth.  You might not be as familiar with the Seven Deadly Sins of Retail Management, those foibles and pitfalls that impede our abilities as managers and our capacity to achieve our desired success.  Let's look at the Seven Deadly Sins of Retail Management.
 

1. Procrastination: We can call procrastination "sloth with excuses."  Procrastination can devastate a store and a manager's career.  I've seen managers lose their jobs because they wouldn't get around to doing some of the simplest paperwork. I'm sure all of us procrastinate from time to time, but most of us don't do it to the point that it has a negative impact on our customers or employees.
2. Arrogance: There's a fine line between confidence and arrogance, with the difference being the manager's own view of his/her importance. I've met some very talented people who failed as managers because they somehow got it into the heads that they were more important than others in the organization. Successful managers understand that to succeed they must serve both their customers and their employees.
   
3. Apathy: Managers are the leaders of their stores.  By their actions they determine the level of passion, excitement, and pride felt by the rest of the staff. When managers lose interest it has a domino effect that falls all the way to the bottom line. The problem in retail chains is that because apathy is so difficult to identify in retail management, mid-level managers and executives let apathetic managers remain in their positions.
4. Gossip: This "sin" looks harmless on their surface but can cause major damage to a store team and manager's creditability. Gossip often happens without the participants even realizing what they're doing. The best way to avoid gossip is to never say something about someone unless you would be okay with that person standing besides you as you say it. I know that whenever I start a conversation with "Just between you and me. . ." there's a good chance I shouldn't be having that conversation.
5. Inflexibility: Great stores are the result a manager/leader who can take a group of strong individuals and have them execute as a team. One of the biggest barriers to this occurring is the manager's need to exert control rather than influence. Anytime a manager says "my way or the highway" then the chances are they're losing their team. Remaining flexible and open to new ideas invariably leads to growth of the staff, the manager, and the overall store sales.
6. Inappropriateness: Creating any type of hostile workplace is completely unacceptable. While a manager rarely does do that on purpose, it happens with more frequency that most of us even know.  The key is to not only not go near "the line" but to stay far, far away from it.
7. Lack of accountability: The biggest impediment to a store achieving goal is almost never foot traffic or inventory availability.  The biggest culprit is mediocrity.  Specifically, the store management team allowing mediocrity to take hold in the store. This often is the result of a manager or management team not holding the staff accountable for their actions because they don't want to have those difficult conversations necessary to turn around or remove underperforming employees.  Not only is it unfair to the rest of the team (and the company as a whole) to not hold underperforming employees accountable, it's also unfair to the employee themselves.

 
So let me ask, how much sin do you avoid?
 
Doug

Contact Doug and his team to learn how they can help you transform your business or meetings.

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

Swimming Across the Retail Multichannel - Part I

Today, almost all merchants have a multichannel strategy or at least are seriously thinking about one.   Multichannel initiatives vary from retailer to retailer with some choosing one additional channel while others may choose three or four.  A good rule of thumb is to bite off only as much as you can chew.  While multichannels can and should complement each other, one unsuccessful channel can have adverse effects on the rest of the channels including the original brick and mortar store.  The other consideration to keep in mind when choosing to pursue additional channels is to hire an expert advisor.  Each channel has different ways of enhancing the customer experience and choosing inexperience can and will prove to be a very costly mistake across all your channels.

BRICK & MORTAR

Although some merchants like QVC and HSN may never open brick and mortar locations, by and large, brick and mortar has been the primary method by which most retailers market their goods to the public.  There can be many advantages as well as pitfalls to consider when opening a brick and mortar location.  The following are just a few of the primary considerations that should be taken into account when opening a physical store.

• Location is a primary concern for any brick and mortar store.  The store must be easily accessible and the demographics should demonstrate sufficient demand for the merchandise.  For example, you might not want to open a teen apparel store in the middle of a retirement community.  Then again……?
• Is there an adequate and competent workforce in the surrounding geography to ensure exceptional customer service?   When customers require assistance, they are usually looking for well informed, friendly people.  Hiring friendly and intelligent sales people is only half of the equation; training them properly is the other half.  Attracting and retaining talent means creating and maintaining a positive work environment as well as providing very competitive reimbursement.   Generally speaking, personnel turnover in retail is exceptionally high and costly.
• Is the store attractively merchandised?  Because brick and mortar locations ask more of the customer than any other channel in terms of travel expense and time, customers need to want to make the extra effort.  If a store is disorganized, unkempt and generally a difficult and unpleasant place to shop, most customers will choose to shop elsewhere or will shop online or through a catalog.
• Does the store frequently freshen its merchandise?  It doesn’t take long for customers to get bored with stale merchandise.   Don’t be afraid to get rid of SKUs that aren’t moving and free up some cash for new merchandise.  New merchandise generates curiosity and excitement resulting in more frequent visits.  If new merchandise isn’t readily available, moving merchandise around in the store will often generate the same excitement.
• Is the store adequately capitalized?  Brick and mortar stores require considerable expense.  Unlike other multichannel initiatives, a physical location usually involves a long-term commitment.  Leases need to be negotiated and signed, build-out can be costly, store fixtures are not inexpensive and merchandise needs to be paid for usually before it’s sold.

All of the considerations of brick and mortar cause many retailers to look into multichannel alternatives when looking to expand.  Retailers who consider multichannel expansion generally want to increase their revenue and their visibility while controlling many of the expenses associated with brick and mortar expansion.

Next week, we’ll look at Multichannel Expansion. What does the term mean and what does it take to be a successful multichannel retailer?

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