Posted by Debra Neville on Fri, Jul 30, 2010 @ 03:18 PM
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.
- Free and easy person lovin' life. If there's money left over at the end of the month you're successful!
- 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.
Posted by Debra Neville on Wed, Jul 14, 2010 @ 08:56 AM
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
- Listen to customers. Convert the critics to fans and the fans to influencers.
- Become a destination for information.
- Be transparent. Share both your successes and failures with your customers.
- Click here to see the full article presented in a great, easy-to-digest format. Retail Technology Blog
Posted by Debra Neville on Fri, May 28, 2010 @ 01:21 PM
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. 
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)
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Posted by Debra Neville on Fri, May 21, 2010 @ 10:22 AM
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.
- 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?
- 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.
- 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.
- 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.'
- 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.
- 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.
- They do not review employees to high standards; this allows the weak to thrive on the owner's dime.
- 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.
- They have little or no presence on social media, which means they are unaware of what customers are saying about their business.
- 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.
Posted by Don Capman on Tue, Mar 02, 2010 @ 12:09 PM
To read Part I (1-3) of this blog article go to: http://blog.jdapos.com and scroll down.
4. Is it easy for your best customers to make use of your loyalty program? Grocery stores were one of the first retail vertical markets to offer customer loyalty cards. The most common rewards in a grocery store are immediate discounts on selected items and “bounce-back” coupons good for discounts on future purchases. When a major grocery store chain in the northeastern United States decided to offer a loyalty program, they issued keychain loyalty cards to all customers. Well, God forbid that you should drive a different car one day and take the keychain that didn’t have the card because you were refused the loyalty discount.
This infuriated most customers and finally the store stopped requiring the physical presence of the card.
Customer loyalty is supposed to be a reward not a punishment.
5. Do you reinforce the value of being a rewards card holder? Every time I make a purchase, I should be reminded of the benefits of being a loyal customer. If it's an immediate savings, the sales associate should let me know how much I saved even if it's printed on the receipt. If the reward is in the form of bonus points that are going to result in a future gift or discount, the sales associate should tell me how many more points I need to reach my goal. If I’m close to my goal, I may even make another purchase on the spot just to reach my reward.
6. Do you keep the customer loyalty program fresh and meaningful? Many stores begin a customer loyalty program with an enthusiastic blitz. Staff and customers get excited and sign up customers by the droves. Often, prizes or bonuses are given to the staff member who signs up the greatest number of customers. As often, after the initial blitz is over and the prizes are won, customer loyalty programs languish and are put on the back burner to die a slow death. To be successful, you need to look at customer loyalty programs as living, breathing organisms that need regular replenishment and stimulation. Periodic events for members, mail or emails to alert members about new merchandise or special “member-only” sales, signage throughout the store that makes it evident of the benefits or being part of the program are all part of keeping the programs alive and profitable. The staff needs to be provided with regular and meaningful incentives to recruit new members and keep them fully committed to the program.
While software add-ons for loyalty programs are great tools that will help you track long-term customer value, those tools will only be as successful as the additional on-going efforts that keeps these programs meaningful. Loyalty is something that cannot be taken for granted but must be earned every day. Retail statistics commonly agree that it costs 4-6 times more to attract a new customer than it does to retain an exisiting customer. Keeping this statistic in mind certainly seems to justify the expense and work that is put into a well thought out and dynamic strategy designed to increase and maintain customer loyalty.
If you'd like to find out about our Customer Loyalty Programs written for Retail Pro, then click on Customer Loyalty for Retail Pro.
Posted by Don Capman on Thu, Feb 25, 2010 @ 02:56 PM
“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.
- 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.
- 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 10th purchase.
- 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.
Posted by Debra Neville on Tue, Feb 23, 2010 @ 08:19 PM
I'm always looking for new material for my blog postings; I keep coming back to customer service which in its simplistic form is about engaging the customer.
Another Road Trip
In the past few days, I've been in the Boston environs--south and west of the city--visiting independently owned specialty stores, big-box stores and a B&B. In two of my experiences I'll tell you what happened and then I'll tell you what should have happened.
HAPPENED: Gift store:I love the line of Brighton handbags. This day, though, I needed a new business card holder. I spotted a Brighton one on sale--40% off; I grabbed it and made my way to the register. "Have you ever shopped here before?" "No, I've always wanted to stop in; I love the Brighton line; this is my first time here," I said. "That'll be $38.50," the clerk replied.
Sale t(ended) at the retail POS.
WHAT SHOULD HAVE HAPPENED: Talk to me. Tell me about the Brighton line that's coming in for Spring. Tell me about your customer loyalty program; ask me if I want to be part of it. Tell me about your store e-newsletter. ASK me if I want to receive future emails from you about store events, preferred customer sales. Ask me for my email address. Talk to me. Give me something to talk about.
HAPPENED: Big-box stores: I went to seven stores searching for a pasta machine. I know I had a quizzical look on my face as I walked the aisles many times in each store, trying to find the elusive machine. Not one person in any of the stores engaged me at any time. I know it's February and stores are still experiencing the slowness of the post-Christmas season, so stores have bare-bone staffing levels. Some stores had no staff in sight until you got to the register. I left all seven stores empty-handed.
WHAT SHOULD HAVE HAPPENED: Motivate your staff to service the customer at all times. Hands-on attention from staff will win any customer, even if he/she leaves empty-handed. Tell me about your CLEARANCE items so I can stock up. Don't you want me to open up my wallet?
TIP for Mangers and Store Owners: Ask your customers what they think of your store's customer service. Take a survey. Ask them their mood rating as they walk into the store. Give them that number. As they're leaving, ask their mood rating again. If it went up--congratulations. If it didn't or went down, ask yourself and your staff some questions about the customer experience they delivered to the customer and how they can improve it for the next customer.
Posted by Debra Neville on Thu, Feb 18, 2010 @ 09:35 AM
Some of you may read this post and say, "Big deal, I'm already doing that." If so, then I say, "It is a big deal. Congratulations on being a successful retailer and knowing how to treat the customer."
Rhode Island Road Trip
I took my 83-year old mom shopping for shoes. She lives near Providence and she has plenty of shoe-store shopping options. Saturday was our day. I drove 65 miles to bring her to this independently owned, single-store shoe store. They wowed her 20 years ago and they continue to wow her (and build customer loyalty) with their product knowledge and service. In the past, she was buying shoes for comfort and style (in that order), now she's buying shoes to fit a foot condition so it's more of a need. Not orthopedic shoes, just shoes that are designed with enough room to accommodate a toe with a mind of its own.
tip 1: Update your customer information while tendering the sale at point of sale. And don't forget to ask a 'senior' if they have an email address.
I arrived at the 2,000 sf store and needed a minute to get the lay of the land. No one jumped me before I got both feet past the threshold (a pet peeve of mine) and asked, "Can I help you?" There were about 20 customers and a total of 6 staff ready to answer questions and find the perfect fit.
tip 2: Make sure the email address is their 'primary' email address. Often times you'll get an email address that isn't routinely checked. So, by telling them that you'll send them 'preferred customer' sale info, etc., you're more likely to get the coveted primary email address.
My mom selected two styles from the display and asked for a dainty size 9 1/2. The shoe sales person stared at her feet for a moment and told her she was more like a size 9. She politely disagreed; he then took out his handy shoe-fitting tool. He measured both feet and reported that she was in fact, a size 9. He delivered her two selected shoe choices. After trying them both on and walking around the store, she made her decision based on fit and style preference. He strongly suggested she consider the other shoe as that had the kind of room her independent toe would immediately need. She whispered to me before acquiescing, "That's why I come here; they know what they're doing."
tip 3: Since your customers do have options where to spend their money, try saying, "Thank you for coming today" at some point during their time in the store. Mean it (as if you wouldn't?) and the sincerity will resonate. Dare to be different; they'll remember it.We left the shoe store, they with two new customers: me-impressed with how the seasoned sales guy handled the sale and my husband with a 9W pair of Allen Edmonds.
I'll be back though, for those FitFlops.
Posted by Debra Neville on Wed, Jan 13, 2010 @ 05:29 AM
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.