Archive Page 5
How Will You Check Out Customers?
Written by Jeff Grant, June 27, 2008
With payment by fingerprint and interactive shopping carts a reality in some cutting-edge retail stores, you should start thinking about how your customers will pay you in the future. According to this study on MediaPost.com, 19% of U.S. customers surveyed expect to check out via fingerprint recognition by 2015. They also look forward to shopping carts that “locate products in the store, check prices and promotions, upload recipes and complete the checkout process.”
Even if you’re store doesn’t offer shopping carts, it’s worth looking at the study results to see what a cross section of consumers expect in the future. Shopping by mobile phone and social networking shopping websites aren’t too difficult to get involved with, although holographic sales assistance sounds more like a something for the Jetsons at this stage.
You owe it to yourself and your clientele to keep up with the latest technologies at the cash wrap, on the sales floor and in the dressing room. If you’ve been to an Apple or Old Navy store, you know that many sales associates are in constant communication with each other via wireless headset, and some can ring up sales on the spot via wireless checkout devices that even print receipts. I certainly appreciate checking out fast even when there’s a line at the POS, and I think consumers will come to expect such convenience the more they’re exposed to it.
Read the survey results and see what I’m talking about. The more you learn about what consumers really want, the more likely you’ll be ready to satisfy their needs in the not-so-distant future.
Organic Scanning from the Kitchen
Written by Jeff Grant, June 20, 2008
Supermarket shopping via home computer has been around for a while but this new product from Ikan Technologies makes it a whole lot easier. It’s a countertop scanner that resides in your kitchen. When you’re done with a food product or other scannable item, you run its barcode under the scanner. This builds a list of items you need from participating merchants. When you’re ready to order, you can review the list before sending it wirelessly to your PC, which then transmits the order to the merchant. You can pick up the goods or have the market deliver them to you, depending on store policy.
This seems like a fantastic way to speed up shopping. Of course, it doesn’t come cheap. The Ikan scanner lists for about $399. But I see it as another way for smart retailers to engage their clients and solidify their loyalty. I can see applications even in non-food retailing, such as office-supply, athletic-goods, pool-supply and other stores that stock disposable merchandise. You’d need to convince you clients that a system like this will save them time and money. I think many of them would agree.
Speaking of kitchens, this article cites a study that shows people who buy organics are much more receptive to new products and ideas than the rest of the buying public. Affluence doesn’t appear to be a factor when buying organically, even though most organic products sell for more than their non-organic counterparts. What this study says to me is that just by promoting a few organic products in your store, you might have a better chance of attracting new customers. Whole Foods Markets, for example, sell organic clothing, skin-care products and other goods along with its organic foods. I’m sure that the customers who buy that clothing are going to walk out of Whole Foods with more than just some hip new threads.
Keep abreast of the latest in scanning technology. And don’t overlook the organic market. Sounds like a winning combination to me.
A Boulder Vision for REI
Written by Jeff Grant, June 16, 2008
I’ve always loved poking around REI stores, with their vast selection of outdoor goods and clothes. I haven’t always agreed with their merchandising tactics, however. It seemed to me that merchandise was just clustered around the store by product type, such as kayaks in one corner, handheld GPS systems in a kiosk, hiking boots in a rack, etc. I didn’t feel like I was having much of a customer experience at a destination store. Instead, it was just a walk through an assortment of departments with nice merchandise.
Now it looks like a more thoughtful approach to merchandising is seeping into the national cooperative chain, according to an article in Today’s Facility Manager. Top management is doing what any retailer — large or small — should do on a regular basis: imagine how your store(s) will look two, five or 10 years down the road.
You don’t have to pay analysts or buy research data to get ideas on planning for the future. Ask employees and customers for feedback. REI sales associates had plenty to say about floor comfort, so the REI prototype store of the future in Boulder, Colorado, incorporates their suggestions. Lighting also was a concern, so the new store features a tubular lighting system that saves energy by funneling sunlight from the roof to throughout the store.
To maintain ties to its community, the prototype store has a 2,000-square-foot community center with meeting areas and play area for kids. For-profits can rent the space, with revenues donated to various environmental groups. That’s sure to please REI’s large base of eco-aware members.
The store was kept open for all but five days before the grand opening, and was promoted on REI’s website so customers could keep abreast of the upcoming changes. Overall, it sounds like REI did a great job of planning and building out the prototype store with great concern for staff and members.
You should be thinking about your future as well. If you’re not doing so already, be sure to keep up with the latest design and merchandising trends. It’s very easy to do on the web. It took me all of 30 seconds to find the article about REI via a Google search. Survey your customers by email, and your employees in person, to find out what they like now and what they’d like to see in the future. You don’t need to plan on a scale as grand as REI’s. But if you don’t plan at all, the reality is that you might not have much of a future to look forward to.
Swedish Fashion Stores Know How to Sell
Written by Jeff Grant, June 13, 2008
I had heard of the Swedish clothing chain H&M, but didn’t give it too much thought since they didn’t have a store near me. That all changed recently when my wife and daughter made it very clear they were going to visit the first H&M in San Diego County as soon as possible after its recent opening. Then this article about H&M appeared on the front page of The San Diego Union-Tribune’s print editions. It’s been a long time since I can remember the U-T running an article about a specific retail store chain, so H&M must be doing something to garner such attention.
While it’s the low-cost, well-made, great-looking apparel that draws shoppers in, it looks like H&M knows how to market itself as well. The article notes that H&M planned to give away free T-shirts and $10 to $250 gift cards to the first 200 people in line, literally roll out a red carpet and have a disc jockey on hand on opening day. They didn’t need to, since people have waited in long lines up to 18 hours to be the first inside new H&M stores elsewhere.
A photo I saw of the new store’s interior showed clean, contemporary store fixtures with plenty of space for shoppers to wander the aisles without facing a crush of other shoppers. Since H&M relies on rapid turnover of its merchandise, it makes sense that they would display the newest, hottest items near the front of the store and less seasonal clothing farther inside.
I noticed that H&M is also on top of its online sales strategy, with a website that incorporates video and rich media. A recent article in EcommerceTimes.com names those two online features as “must-haves” for merchants who understand their online demographic.
I encourage you to read up about H&M and the “must-haves.” Great advice like this is free all over the Web, and by walking into successful retail stores. It’s all there just waiting for you to emulate in your own inimitable style. If you can get a line waiting outside your store any day of the week, you’ll have done your homework.
Havana Huge Success with Cuban-Style Apparel
Written by Jeff Grant, June 9, 2008
When customers want to buy your display items in addition to the merchandise, you know you’re doing something right. That’s what happened to Henry Leace, who started a Cuban-style shirt store in Miami. Now his Havana Shirt Store chain sells cigars and artwork in addition to the private-label shirts that have taken off in south Florida.
I haven’t seen images of his original store, but take a look at the current photos on MiamiHerald.com. They show clean, modern design that invites browsing. That’s attractive to Leace’s demographic: 25- to 55-year-old males who seek casual clothes with a little bit of a flair. The decor also should appeal to the women (or men) in their lives who seek the latest in clothes to buy for them. The Art Deco style of his Miami Beach store is pretty cool, too.
In addition, Leace is successfully going after the Hispanic market, which is extremely hot right now, according to the retail-trend analysis firm cited in the article. Leace seems to have a knack for retailing. He started out wholesaling men’s ties in 1986, did well with tie kiosks in a shopping mall and transitioned easily into retail stores. Not bad for a one-time physics major and college football player. He recognized his skill for the creative side of retailing and ran with it.
But he says he’s also good at looking for opportunities. That’s what any devoted retailer should do. Sure, you might be good at certain aspects of retailing than another, such as merchandising vs. inventory control. If you’re a good delegator, you’ll have someone performing those duties for you. That way, you can have more time to check the opportunities that are waiting for you to uncover.
Is Your Store Your Customers’ Favorite?
Written by Jeff Grant, June 4, 2008
I recently told students in one of our classes to “make your store your customers’ favorite.” I say this rather often, so I was pleased to see it reinforced in this article in Marketing Daily.
If a customer tells you that your store is his or her favorite place to shop, consider yourself lucky. And keep working hard to stay in their favor. At least that’s my take on the study discussed in the article. It found that 75% of consumers favor shopping at just one or two stores on a regular basis. That’s pretty scary when you consider how much competition there is trying to capture their retail dollars.
The study also notes that while shoppers might visit other stores for promotions and special offers, they’re still likely to return to your store if they’re happy with you. Furthermore, what you offer at point of purchase — “such as packaging design, display timing and location, in-aisle messaging, self talkers and shelf layout — all have a profound effect on what ends up in consumers’ shopping carts.”
So, make sure your POP is interesting and changes regularly so customers will look forward not just to visiting your store, but also to leaving with some impulse buys. That’s something else I tell those attending our seminars. I’m glad that I’m sending them off with third-party verification to back me up.
Ask Your Senator for a Break
Written by Jeff Grant, May 29, 2008
This blog rarely gets political, but a new retail-related bill that passed a House of Representatives vote last week is worth your attention.
According to an article in The New York Times, the Energy and Tax Extenders Act of 2008 would let retailers write off their remodeling costs over 15 years instead of the current 39 years. The bill would apply whether you owned or leased your retail space.
I’m on the side of the National Retail Federation (NRF) on this, and I encourage you to support the bill as well. As the NRF says, “the shorter period will help boost the economy by encouraging more store and restaurant owners to re-invest in their businesses.” The bill also would provide tax incentives for those retailers who go green, which is even more reason to get behind it.
The Senate is supposed to consider the measure next week. If you agree that its passage is a great way to assist retailers and stimulate the economy, contact your state senator’s office to let them know how you feel. It’s easy to do on the Senate’s web page that provides links to each senator’s “contact me” page. Just fill in the form fields and off your message goes. Democracy in action, courtesy of the Internet Age.
I’ll be watching the news next week to see how the bill fares. If you’ve ever wondered about how you senator feels about your business, this is the time to find out. And all it takes is a few clicks of your mouse.
Boston’s Really Big Apple
Written by Jeff Grant, May 27, 2008
Apple keeps topping itself in the retail arena. They just opened their biggest store anywhere, this time in Boston, according to Boston.com (free registration may be required). When you can get the mayor and news crews to attend a media preview, I would say you’ve done a great job.
I’ve been to the Apple stores in San Diego, San Francisco and Los Angeles, but it looks like the Boston space outdoes them all at 20,000 square feet. The circular see-through staircase is a real eye-popper. On the third level, Apple seals the deal for me with an entire floor devoted to customer support and education, mostly at no cost.
The article’s author points out that only a primarily single-brand store can afford to offer such intense attention to customers. The big-box stores can’t because their staff would need to be educated in many brands, and couldn’t appear to push one brand over another.
How can you apply so much customer-focused attention in your store? Even though you’re not the size of an Apple Store, you can train your staff to really know the merchandise, and to be really helpful. In San Diego, I’ve been to the lesser-known Sony Style store in the same mall as an Apple Store. While the products at Sony Style range from MP3 players to laptops to HDTVs, the sales floor was nearly devoid of customers each time I visited. The sales staff was hardly as enthusiastic as Apple’s, and I left feeling I hadn’t enjoyed the greatest customer experience.
Don’t let that happen in your store. A little education on product and customer service can go a long way. Look where that took Apple. I can hardly wait to see what they do to outshine the Boston store.
Consumers Like to Shop Where They Live
Written by Jeff Grant, May 20, 2008
Thinking of relocating your store or opening a new one? If you live in a typical U.S. city, take a look at the neighborhoods where consumers are deciding to live. There’s Lincoln Park in Chicago, SoHo in New York and East Village in San Diego. More and more, it seems like residents want easy access to shopping.
Civic officials in Hilltown, Pennsylvania, are studying whether to allow a mix of commercial, residential and retail in an area that would look like more like a 19th century village. Retailers in downtown Syracuse, New York, are eagerly awaiting new housing that will bring more customers who like to walk to shopping from home.
While suburban living is far from dead, the high cost of commuting is causing many empty-nesters and baby boomers to reconsider their living situation. A relative of mine used to pay about $375 a month for his 80-mile round-trip commute. Now it’s more like $615. Since he lives near downtown San Diego, he’s considering looking for a job there and moving nearby. Even with the relatively high cost of housing downtown, he figures he can use the gas savings to pay for a new mortgage. Plus he’ll save money on auto upkeep and insurance. That, and he’s looking forward to walking to the new supermarkets and specialty shops popping up all the time.
I encourage my retail customers to analyze the housing trends in their community when it comes to opening or moving a store. Just having low rent isn’t always the best reason to choose a location. Yes, it might cost a little more to move into the heart of the city. But if a significant number of people are moving there as well, your customer base is already off to a good start.
It’s easy to find out where the live/work/shop hot spots are. Set up search agents for “downtown residential,” “retail shopping trends” and similar terms on your daily newspaper’s website. Also check municipalities’ websites for postings about building permits to see where new businesses are heading. You might find yourself among them soon enough.
Committing to Commitment
Written by Jeff Grant, May 19, 2008
Harvard Business School may not be where you learned how to run your widget shop, but its online Working Knowledge forum pages offer some lessons that can apply to whatever you’re selling.
This particular forum is about something called “deep metaphors,” which are “basic frames or orientations we have toward the world around us.” It’s pretty heady stuff but worth perusing to apply to your business. The authors of Marketing Metaphoria: What Deep Metaphors Reveal about the Minds of Consumers (HBS Press, 2008) say some pretty interesting things about customer loyalty, which is what I’m always harping about. For example:
“Connection is a two-way street, and consumers are most apt to feel loyalty to brands and companies if they feel those in charge have a commitment to them.”
To me, that means you have to show your customers that everyone in your store – from the owner to the newest salesperson – treats them with the courtesy and respect they deserve. You need to look out for their interests by offering the best merchandise at the best price. You also must maintain a regular channel of communication, whether its email blasts, online or print newsletters or occasional phone calls to say you have something on the shelves that may interest them.
“Companies must convey that they have the consumer’s best interest at heart. This is one reason consumers use their perceptions of how firms treat their employees as a proxy for how firms value their customers. As one consumer put it, ‘If they don’t treat their staff well, you can hardly expect them to care about us.’ ”
I’ve blogged frequently the importance of having well-trained staff. But I haven’t said much about how well you treat your staff. If customers see you berating, chastising or interrupting a sales associate for any reason, it makes them wonder about your skill at treating customers. Compliment your staff often for jobs well done; save any criticisms for informal, relaxed post-mortems.
I’m no Harvard professor, but I think the authors of Marketing Metaphoria have some good information for those of us down in the trenches. I would invite their critiques anytime.
