J.D. Associates Retail POS Solutions Blog

Driving Sales

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

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

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

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

When you are in the driver's seat you:

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

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

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

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

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

Even worse, you're in the rumble seat.

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

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

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

THE Place to Work

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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.

 

Tips for Creating Winning Store Window Displays

As a retailer, your display windows are literally your windows to the world. They are the face that you present to passersby, the first impression you make with customers, and the easiest way to draw attention away from your competitors.

Whether it’s Valentine’s Day, Father’s Day, or back-to-school time,
a good window display should include a theme. Moreover, you want to highlight your store’s image. Are you trendy? Cutting edge? High end? Do you offer great bargains? While you can’t judge a book by its cover, you can tell a lot about a store by its window displays

Many retailers overlook the potential of their display windows to grab the attention of potential customers. Think of them as three-dimensional billboards.

From a creative aspect, there is a lot that can be done to make your store windows dazzle. However, there are also practical concerns to address. Before you begin, first consider these ten tips:

1. Don’t overdo it. Less can be more, or at least more easily discernable to the eye. A cluttered window loses appeal and featured items can get lost.
2. Make merchandise the focal point. Not unlike a television commercial in which everyone remembers the commercial but forgets the product, you do not want your window dressing to overshadow your products.
3. Accentuate products with good lighting. Whether the window is recessed or under a spotlight, the goal is to highlight the products within the overall display. If the window design simply features your brand/image, rather than specific products, then balance the lighting throughout.
4. Stack products or use a pyramid. Place items in the window at varying heights and depths to catch shoppers' attention and make the overall display inviting to the eye.
5. Have fun with mannequins. If you are using mannequins, create interesting poses, and make sure that each one is well lit and easily visible to customers passing by.
6. Be creative. Let your imagination run free — as long as you don’t lose sight of the objective — and draw customers into the store with innovative, attractive, and compelling displays.
7. Remember your theme. Keep your window theme in mind and decorate according to that theme.
8. Draw in drivers. If your potential customers drive rather than walk, make your display larger and use more color to draw the attention of a passing motorist.
9. Use backdrops. Backdrops are useful tools to create positive and forceful displays, and to separate the window from the store.
10. Stock up on featured products. Don’t draw customers in to buy merchandise that you don’t have enough of.

 

Professional Help vs. Do It Yourself

Yes, you can spend money to have someone come in and do your windows for you. There are highly skilled and professional windowdressers out there who can do amazing things. Of course, before you hire an outside person, be sure to see a portfolio of their work and ask for references. However, unless you own or manage a major department store with numerous windows, you should be able to handle the job yourself. If you have an exceptionally creative member on staff, you might consider making this person the de facto window designer.

Once you start working on the actual displays, go outside often to get an idea of how the display looks from the outside. Does it grab your attention? Is your theme clear? Keep tinkering until you have the look that you want, and remember to change your window displays often to keep them fresh.

article from www.allbusiness.com

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

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?).

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!

 

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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We May Not Be in Love, But We Ought to Get Engaged

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.