Archive Page 7
Don’t Let ‘em Leave Empty-Handed
Written by Jeff Grant, January 30, 2008
If you’re not reading Entrepreneur magazine or Entrepreneur.com, get with the program. It should be required reading for anyone in retail, whether new kid on the block or seasoned veteran.
Entrepreneur columnist Brad Sugars has a great piece on MSNBC.com on six steps you and your staff can take to turn shoppers into buyers. Besides the obvious–banning “Can I help you?” from the retail floor–Sugars says the first step is to calculate your conversion rate. It’s easy to do and the results will help you fine-tune your sales techniques.
Even answering phone inquires correctly can help boost sales, Sugars says. I called an auto repair shop recently to get an idea of what they charge for various services. The guy at the other end acted like he was put out and in a rush to get off the phone. If he had only asked me a few questions about my car or my driving habits, he probably would have had a new customer. But he didn’t and I eventually found a more customer-focused mechanic.
You hear it stressed again and again: Listen to the customer before you start your sales pitch. Act like you’re a trusted adviser rather than a salesperson trying to make a quota. Whether face to face, on the phone or online, remember that customer loyalty starts with great customer service.
Read what Sugars has to say. Then make sure your sales staff reads it. And encourage them to visit Entrepreneur.com. It could be the best sales pitch you ever make.
Addicted to Text
Written by Jeff Grant, January 16, 2008
Here’s a juicy nugget of information: “About 68 percent of Americans spend more time with their computers than their spouses,” says a trend-spotter quoted in this Cincinatti.comarticle. It’s juicy because savvy retailers can turn that rather sad statistic into a marketing advantage.
Even though the article is mostly about grocery retailers, it points out how customers really cherish relationships with their favorite stores. “Only 27 percent of grocery shoppers are loyal to a store,” an IBM retailing pro says. “That leaves three of four shoppers up for grabs.”
One way to grab them, the trend-spotter says: “Reach them with text messages and you lock in a customer.” I think it’s a great idea. Tex-messaging your customers’ cell phones and sending regular emails helps cement their loyalty to you. Making them the first to know about new products or special sales is easy and effective. Both tactics should be a part of your retailing toolkit. And if their spouse gets jealous, all the better for you 
The article also discusses the growing impact of devices such as handheld scanners that allow shoppers to check each item they put in their cart, and then do a self-checkout without using a cashier. “Consumer goods companies now have the ability to talk directly to a customer in the store and are less reliant on commercials on TV,” a Motorola marketing exec says. “Electronic marketing offers a real competitive advantage.”
While such in-store devices are just debuting now, you should check them out now. You don’t want to be left in the dust when your customers decide to be loyal to someone else.
New Year, New Opportunities
Written by Jeff Grant, January 9, 2008
I hope you had a great holiday season. But as we constantly hear from the experts, that season is when many retailers grab one-third of their annual revenues. Now that you’re on a roll, how are you going to keep from rolling downhill?
First of all, take some time for yourself, the article says. Relax, take a vacation, get your mind off work for a while. Then start focusing on how to keep the sales momentum going. Get more connected to your customers than ever, those experts say, because if you’re not doing it, someone else is.
In this challenging economy, you’ve got to do more than have great store layout and great merchandise. Make sure your staff also is well-rested and ready to tackle the new year. Watch you customers’ shopping patterns. Are more customers coming in during the lunch hour than in the evening? If so, modify the work schedule so you have more staff during the busy hours.
Customer loyalty is more important than ever. Use every trick in the book to maintain it. Use invitation-only sales, email newsletters, rewards programs, coupons and community sponsorships. “How a person feels after they shop at a store is extremely important,” a retail-turnover expert says. Make it your resolution to make everyone who shops at your place feel like a special guest. Don’t go overboard, but show your appreciation every way you can. You can be sure your competition is.
A Blog’s-Eye View of 2007
Written by Jeff Grant, January 8, 2008
It’s hard to believe that we started this blog almost exactly one year ago! The retail landscape continues to evolve at Internet speed, even for strictly brick-and-mortar stores. I rarely find a retailer who hasn’t tapped into the web’s power, either for online ordering or to keep track of the competition.
Looking back at 2007, here are a few of the blog topics that stood out in my mind, some web-related, some not:
• Are You Hitting the Right Notes with Customers? January 25: Industry studies show that the right music keeps customers in stores longer and keeps them in spending mode…Not sure what kind of tunes your customers like? Ask them. Give them a quick music survey form to complete and drop in a box.
• Online Reviews are Nothing to be Afraid Of; February 15: As this article in Business Week points out, letting your customers honestly critique your business can be a good thing…In this age of online social networking, the article says, “…63% of shoppers are more likely to purchase from a site if it has ratings and review.”
• Are You “Experienced”? March 28, 2007: Now I see in The New York Times (free registration may be required) that retail giants like Samsung are opening huge “experience” stores where they don’t sell a thing…I try to make every store our company designs an experience in itself. We do our best to get customers in your door. The rest is up to you.
• The Customer is Always Right, You Guys; May 10, 2007: Places like Vons, Cost Plus World Market and Coco’s are more helpful than before. They look you in the eye, listen to your questions and are eager to help. If these guys–I mean these staff members–can do it, so can your guys, gals and other valued employees.
I look forward to learning about more retail changes in 2008. There’s plenty of helpful advice online. I always encourage retailers to visit the competition as well as stores they admire. Analyze how they entice customers from the front windows to the back shelves, and then emulate them in your own style.
Even in this down economy, I’m still the optimist – I see nothing but good times ahead this year. We’ll soon announce some exciting news about how we can help you improve all aspects of your retail business. Whether you buy your fixtures from us is unimportant. We just want you to give you the tools for success. Because when you succeed, it benefits all of retail.
Happy New Year. You deserve it!
The Doctor Is In…The Retail Groove
Written by Jeff Grant, January 3, 2008
Independent computer-repair shops are usually pretty dreary places. Even with the Geek Squad campaign that elevates PC nerds to lovable heroes, I’ve found the smaller independent “screwdriver shops” to be pretty good at repairs and data recovery, but not at all good at store layout. Not that they necessarily need to be attractive, but it wouldn’t hurt, either.
I mention all this because I just visited a fairly new addition to this market, Data Doctors. Their new shop in Vista, California, stands out from the pack, starting with the signage. It’s bold and bright, and immediately tells you what kind of place this is. Inside the store are large, great-looking wall hangings that reinforce the message. One graphic is of a toaster popping up CD disks, with the headline “Is your data toast? We’ll recover it.”
The store is clean and inviting, with modern cabinetry and just a long counter for the geek on duty. Behind that are panels shielding the actual repair area, which we probably wouldn’t want to look at anyway, so long as the work gets done properly.
If anything, I think the place looks a little too sparse in front. No chairs, no magazines, nothing that makes a customer want to stick around. Now that in itself might be a good way to keep naggy non-geeks from lingering. But I think a few items of merchandise and chairs would lend a homier touch — and a reason to check out all the graphics. There were so many, I didn’t have time to check them all out.
Data Doctors is a small chain that seems to be growing fast. They didn’t pop up on the first page of Google searches for “computer repair” and “data recovery.” I hope they have smart marketers who will remedy that situation. I think Data Doctors is on track for success with a winning prescription of graphics and design. And with a little more self-medication, they might give the Geek Squad a run for their money.
What Did You Learn This Holiday Season?
Written by Jeff Grant, December 29, 2007
Every year at this time, the media devote an enormous amount of space to holiday retail shopping. This year, the main thrust seemed to be how retailers were slashing prices, staying open late and hoping last-minute shoppers would snap up gift cards. Did all these strategies work? My opinion is: yes, yes and yes.
If you’re a small to medium-size retailer, consider each approach and see which works best for you. Deep price cuts might be a good idea at holiday time. They let you clear the back shelves of slow-moving inventory and, if displayed near higher-priced items, can lead to additional sales with better margins.
Staying open late — or opening early, for that matter — is a good way to differentiate your store from the competition. You see the big-box retailers doing it all the time; why shouldn’t you? But make sure you have some great merchandise or great prices to draw the customers in. Let them know in advance that coffee, juice and donuts will be served. You could even throw in a Visa gift card for the first customer in the door. Use your imagination to make it worthwhile for customers and employees alike.
We’ve blogged about gift cards here before. They’re relatively inexpensive to buy. You can even purchase all the components needed to make your own. Card sales can bring in short-term cash flow and, of course, “bonus” cash from customers who lose or forget about their cards. Make sure you have safeguards in place to assist would-be card-bearers who misplaced theirs — it’s not worth it to upset a potential repeat customer.
Continue to read up on what the large retailers did to overcome fears that the economic downturn would negatively impact their sales. With gas prices predicted to hit $4 a gallon in the months ahead, you’re going to have to learn how to get customers to drive your way.
If They Can Get It, So Can You
Written by Jeff Grant, December 26, 2007
I think the phrase “get it” — as in “Some small retailers really get it when it comes to satisfying their customers” — is already a cliché. But in that sentence, the “get it” part is absolutely true, as this New York Times article points out.
I have to cheer when I read about retailers doing the right things to entice customers. Even though they might also sound clichéd, simple things like setting out cookies and cider during the Christmas season shows shoppers that you’re thinking of their personal comfort and joy. And that puts them in a better shopping mood.
But the retailers mentioned in the article go beyond just offering refreshments. They are tuned in to their customers’ wants and needs via email surveys, in-store feedback, private parties, free gift wrapping…the kinds of thing this blog has been advocating for so long — even training you staff to give alternate gift recommendations if certain items are out of stock.
All the tools you need to get in touch with your customers are easy to come by. Online surveys, web page hosting, email blasting and the like are found with a simple Google search. Use those tools to get customers in the door. Then keep them inside by demonstrating how you offer personalized attention that the big-box stores can’t beat.
Just before Christmas, I picked up some clothes from the dry cleaner I sometimes use. I had barely spoken to the owner over the years. But this time, he wished me a merry Christmas and handed me a little bag of candy. I could tell he appreciated my business, and it made me feel good about being his customer.
This holiday season is a good time to remember: All the great store layouts and merchandising tricks don’t mean a thing if your store doesn’t make customers feel like they belong there. It’s up to you and your staff to make it happen — not just this holiday shopping season but all year long. It’s the best gift you can give yourself. Success stories like those in the Times article abound. With a little effort, you can find yourself among them.
Naughty Shoppers, Nice Solution?
Written by Jeff Grant, December 15, 2007
I don’t know why the executive editor of NRF Stores was so surprised to find rude shoppers at the mall, many of them glued to their cell phones while trying on clothes and checking out at the register. You see the same thing at restaurants, sporting events, airports and just about everywhere people congregate. And especially at this time of year.
Maybe these shoppers become more civil when they can personalize the gifts they’re buying, as this USA Today story suggests. I’ve blogged before about how customers like to feel more connected to the buying process. Now retailers are making it easy for them to do things like add photos to gift cards, write messages in chocolate bars and build custom-colored athletic shoes right in the store.
It’s not that expensive to get into the personalization process, especially when weighed against the customer loyalty it builds. A Google search for “make your own retail gift cards” turns up dozens of companies that can help get you started. Everything from MP3 player ear buds to wine bottles can be personalized.
If getting personal with your customers helps cut down the rudeness factor, I say go for it. You might even get them to call their friends on their cell phones to tell them about your great deals.
A Tale of Two Cities’ Design Scenes
Written by Jeff Grant, December 11, 2007
Los Angeles and San Francisco have always been rivals in everything from baseball teams to culinary superiority to cultural attractions. Having lived in both cities, I can verify that those rivalries are indeed real.
Now it looks like L.A.’s retail boutiques are suffering an economic blow, while San Francisco’s fashion scene is on a roll. The reason? I think the creative director for Barneys New York, quoted in the Bay Guardian blog, has it nailed: “People here (San Francisco) are into design. It’s about the craft of fashion, not the hype of fashion.” In L.A., he points out in the article, style is all about exhibitionism or what other people think of what you’re wearing. “Here,” he says, it’s what you think of what you’re wearing.”
After reading the Los Angeles Times article and the Bay Guardian blog, I conclude that the L.A. shops didn’t pay enough attention to the bottom line. They were the fashion flavor of the month, with customers’ loyalty lasting only until the next trendy boutique popped up. When the realities of the economic slump finally hit their customers, it was too late. Virtually all the shops were beaten down by the Macy’s, Nordstroms and even the Mervyns of the retail world.
In San Francisco, the trendsetters stuck together for the betterment of their community. As the Guardian blogger said, “…the point is that here, creativity, innovation, and plain old weirdness is still king.
It would behoove you to know what your competition is up to, and to possibly form an alliance with them–a retail owners’ association, for example, that creates sidewalk sales, block parties, coupon clubs, etc. Successful retailers know that they have to stay ahead of the curve. Make sure you don’t fall behind it.
Are You on the Cozy Bandwagon?
Written by Jeff Grant, December 5, 2007
The holiday season usually brings an overload of news stories with forecasts, trends and advice for retailers and customers alike. A reporter at the The Mercury News in San Jose, Calif., assembled some of the latest data nuggets from industry experts. It’s fun to see if you agree or disagree with them.
For example: “…metallic is out and warmer colors are in…merchants are turning to palettes that contain more red, orange, brown, green and yellow in order to create cozier environments. Some stores are adding carpeting and even applying sound-absorption techniques.” I agree. Nothing wrong with cozy. Sound-absorption materials can get pricey, though. Maybe if you’re shop is next to an adventure-sports store with a cranked-up sound system.
“…ages 18-29, born 1978 to 1989 are much more interested than other generations in having retailers provide valet parking.” If it’s OK with your landlord, local parking lot owners, and local municipal codes, I say go for it. Anything you can do to get them through your front door is worth the cost.
“…the ‘Silent/GI Generation’ (62 and older, 1900-1945) prefers shopping at Wal-Mart to other stores and do less holiday shopping on Black Friday than other generations.” That’s good to know. If your customers fit that demographic, lure them in with specials early in the day or other times your store isn’t as busy as it could be.
“…84 percent of consumers said they wouldn’t be completing their Christmas shopping until either two weeks before the holiday, one week before or…Dec. 24.” Those last two weeks always deliver a crush of consumers. Entice them in with late-shopper bargains, coupons, emails, phone calls, etc. Make it a point to reward to their tardy habits.
You can find this kind of advice all over the Internet. Make sure it’s from credible sources before you apply it to your needs. And it’s not too early to start looking for data on post-Christmas sales as well. I’ll keep you posted. In the meantime, keep your retail elves busy.
