Retail Sales Training

Increase Your Sales with Less Traffic

2009-01-31T16:33:00.000-05:00

Let's face it...most retailers are experiencing a drop in traffic counts. However, here are three ideas you can apply right away to increase your sales even when store traffic has declined.

Talk to every customer. Be proactive and approach every customer in the store instead of relying on them to make contact with you. Most retailers wait for their customers to ask a question. While there is nothing technically wrong with this approach, you miss many sales opportunities because many people will simply leave your store if they can’t find what they’re looking for.

Make recommendations. Ask your customers one or two questions to determine what they’re looking for and what they’re specific needs are. Then make recommendations for additional products that complement the original item.

Bundle products together. This is a greatly missed opportunity. Instead of trying to sell a single product, bundle together products that relate to each other. Even if you reduce the total price slightly, the overall sale will be higher which means more money in the till and in the bank!

© 2009 Kelley Robertson, All rights reserved.

Complete the Sale

2008-11-06T10:55:00.000-05:00

Many retailers leave money on the table because they don't complete the sale. Their customer makes the initial purchase of a particular product but the sales associate does not ask them if they want additional items that are related to the initial purchase. Here are just a few examples:

Eyewear: protective cases, cleaner

Electronics: batteries, power bars, extended warranties, high quality connecting cables, cleaning products, bags, etc.

Pets: food, treats, cleaning supplies, deodorizers, shampoo, etc.

Furniture: lamps, pictures or paintings, coffee and end tables, throw cushions, extended warranties, fabric protection

Footwear: cleaners, polish, shoes trees, arch supports, insoles, conditioner, extra laces

Appliances: cleaners, polish, extended warranties, baking sheets/pans, etc.

Patio Furniture: accents, umbrellas, plants, wall hangings, candle, bug repellent, etc.

The list could go on but hopefully you get the idea.

The biggest challenge is that front-line sales associates feel they are going to be perceived as being pushy if they suggest additional items. However, let's look at it from a customer's perspective.

When I bought my first computer many years ago the sales associate did not suggest a power bar or extension cord. When I setp up the computer I discovered I needed these because I did not have enough receptacles close to where the computer was located. Do your customer and yourself a favour: suggest additional items and complete the sale.

Cheers!
Kelley

Sell on Value, Not Price

2008-10-28T09:29:00.000-04:00

I came across this article in a colleague's newsletter. Ron LaVine runs a company called Accelerated Sales Training and specializes in B2B cold calling. You may be wondering what that has to do with retail. One of his clients, Mark Norato of Infomentis sent Ron this story about a retail experience.

I recently visited a local hardware store to purchase several gallons of paint for a remodeling project my wife and I had undertaken. After I found the color I wanted, a clerk walked up and asked, "Can I help you?"

I answered “I’ve found the color that I want, but honestly, your prices are higher than the Wonder-Mart super store down the street.”

The clerk immediately replied, “Sir, you’ve selected our premium brand paint. It comes with a five-year warranty against fading and peeling and will cover in one coat. Because of the way it s blended, scratches and other surface marks will wash off easily. I’m very familiar with the Wonder-Mart brand, it s a good, lower-end paint but it has no warranty, and you will probably need at least two coats depending on the color you re painting over, so it s not really the bargain it appears to be.”

I nearly fell on the floor! This 20-something year old clerk working at a hardware store in Conyers, Georgia understands what most sales professionals don’t...it’s not the price, it’s the value!

The clerk could have chosen to defend his price, which would have been a losing battle since his product was already higher priced, and I was convinced based on my limited knowledge that paint was paint. He could have offered me a discount, which would have only reinforced my opinion that his product was no different than the Wonder-Mart brand in addition to depleting his margins. Or he could have bent himself into a pretzel like so many sales professionals do by using some sort of manipulative sales tactic to overcome my price objection. Instead, he simply chose to sell the value of his product in a straight-forward manner that helped educate me on the fact that paint was not paint.

This exact same scenario takes place every day in B2B sales, only in most instances the sales professional almost always falls back to selling price. Consider this fact & regardless of the product or industry segment you re selling into, when customers are presented with price versus value decisions, 73% of the time the purchasing decision will be based on factors other than price.

This is not to suggest that price is unimportant obviously is however, it's typically not the primary driver in the purchasing decision, although most sales professionals seem to believe otherwise. This principal should not seem all that extraordinary. If price was the only thing that mattered, we would all be driving Yugo automobiles and purchasing our clothes at Wal-Mart. The fact that Toyota commands a premium for its automobiles and department stores such as Nordstrom’s thrives on selling premium-branded products proves otherwise. The key point here is that unless you explain what value your product or service brings to the table, the client is left to think that price is all that matters, in which case the cheapest will always win.

I have always been a believer that there is more involved in a buying decision other than price. But...this concept is difficult for many retailers to grasp. The key is to find your differentiating factors and make sure that your customers are aware of them. AND, make sure your staff know how to tell your customers about these differentiating factors.

Read my article, The Myth About Price.

Cheers!
Kelley

That Was Easy!

2008-10-06T16:34:00.001-04:00

Back to school shopping is challenging for most people. However, I recently encountered one retailer who made this annual event easier for their customers. A local Staples store created a one-page list of the necessities for each grade level. Plus, they also drew up a one-page plan-o-gram of the store and highlighted the specific areas where the items were stocked. This information was strategically placed just inside the front entrance of the store which increased their visibility and prominence.

I thought this strategy was brilliant for a number of reasons:

It was customer focused. The lists explained the necessary supplies a student requires in each grade. Plus, the store map sped up the shopping process which is something every time-crunched parent appreciates.

It was very inexpensive to execute. Each list was neatly typed and printed on colour paper.

It was properly located. It was difficult to miss this display because it was situated directly inside the front entrance which means that most people shopping for school supplies would have the opportunity to take advantage of it.

Staples slogan is “That was easy” and they certainly delivered on this.

What can you do to make the shopping experience easier for your customers?

Complete the Sale

2008-07-31T11:45:00.000-04:00

It always surprises me when retailers don't complete the sale. Here is an example;

I recently bought a wireless speaker that would allow me to listen to my stereo or iPod while sitting on my back deck. However, when I went to connect it, I discovered that I needed a transmitter for my receiver. That meant I had to go through the hassle of locating that item, driving to the store, and waiting in line to pay for it.

If the salesperson had been on top of his game, he would have known that I needed that extra piece and would have sold it to me. Instead, I ended up buying it from a different store and was frustrated in the process.

Examples like this are abundant. It doesn't matter whether it's a lack or product knowledge, poor sales skills, or the plain old fear of suggesting additional items, this costs you money both in lost sales and lost customers.

Get more information on this subject.

Here is another article that will help you.

Cheers!
Kelley

How to Retain Your Gen-X Workforce

2007-08-30T12:13:00.000-04:00

Retaining retail employees is challenging at the best of times. However, today's younger workforce are not motivated by the same things you are. Author and speaker, Cam Marston, has written a brilliant article that can help get past this hurdle.

You've hired them. Now how can you keep them around? If I could give you one bit of advice on dealing with the latest generation of employees to come under your management, it would be to remember those words…things aren't always what they seem.

If you are like most business leaders, you've no doubt noticed a trend in the way employees behave in recent years. Most likely you consider it a negative trend—too much entitlement, not enough loyalty, no work ethic, only interested in themselves, and on and on. But I challenge you to consider that perhaps these are not negative trends, just different ones.

To better understand who your employees are and what drives them to succeed, perhaps it's easiest to understand who they are not—you. That's right. They may even be your offspring but in the workplace they bear little resemblance to the "you" of yesteryear.

Gen Xers (born 1965-1979) and Millenials (born after 1980) are operating in this world with a completely different perspective. Their definitions of loyalty, time and success are often quite different from yours. Rest assured they do recognize all of these concepts and value them in very important ways. The key to your organization's future success is understanding how the Millenials view the world and using that knowledge to motivate them in a way that works. Here's a hint: meet them where they are and they will achieve your underlying goals; try to force them to fit your definitions and they will run for the door every time. So let's take a look at some of the pervasive myths about our youngest generation in the workforce and discuss why these changes are happening and how you can tailor your workplace to meet the needs of you, your employees and the company.

Myth: Younger generations have no work ethic.
Reality: Younger generations have a self-centered work ethic. This is not necessarily the negative that it may seem at first. Millenials are dedicated to completing their task well. They have not been raised in a way that demands them to look around and see what should be done next. Instead they ask "what is my job" and go about figuring the best, fastest way to complete that task. Then they consider themselves done. This is a key differentiator between your employees and yourself. The younger they are, the more your employees view their jobs as "something to do between the weekends."

For most, early employment has nothing to do with a career path; it is a way to earn money to have fun in their free time. And that is okay. When you understand what motivates your employees you are better able to set mutual expectations for success.

Instead of being frustrated that your youngest employees are not interested in climbing your corporate ladder, embrace their true motivation—reliable spending money—and use it to your advantage. When you tell an employee, "I understand this is not your lifelong career, but to earn the paycheck every week, here is what I expect…" they are much more likely to respond than if you try to motivate with promises of promotions and titles down the road.Understanding that being at the job isn't as important to Millenials as completing the assigned task also opens up new opportunities for motivation and reward.

Younger employees are very likely to respond to offers of paid time off. A leading retail organization has recognized this new way of thinking with its "Working Hard Card." When managers witness an employee rising to a challenge, exceeding expectations or otherwise giving 110 percent, they can hand the employee a "Working Hard Card" on the spot. Each card is worth a set amount of paid time off to be used at the employee's discretion. It is a simple strategy that rewards employees in the currency they value most—their time.

Myth: They don't want to put in the hours to get ahead.
Reality: They are willing to put in the time to do the job, however they are uninterested in "face time." Gen Xers and Millenials view time as a currency. While Baby Boomers tend to see time as something to invest, the younger generations view it as a valuable currency not to be wasted. These are the generations that demand work-life balance and paid time off. They want to get the job done, then put it behind them and enjoy life.

Boomer managers have a tendency to lose the interest of their Millenial employees by looking too far into the future. Millenials live in timeframe based on right now. Their world has proven that nothing is a guarantee—from nationwide layoffs to war to soaring divorce rates—and have decided that there's not a lot you can count on. As a result they are not interested in promotion plans for five years from now. They don't even want to know what will happen at the end of the summer. Life is uncertain.

To reach the Millenial employee and reduce turnover, make it certain. Tell your employee that you have a plan. Take pains to ensure it is in a timeframe short enough for them to envision. Be prepared to fulfill your promise—once fooled, forever jaded. This approach feeds into their reality, while simultaneously building trust and buying you more time. Reward small successes along the way, string these milestones together and you will soon realize longer tenures among your staff.

Myth: They have no respect for authority.
Reality: They have great respect for leaders and loyalty. But no, as a rule they don't respect authority "just because." For the younger generations, every ounce of loyalty and respect must be earned. But when it is earned, it is given fiercely. In fact, loyalty to the individual is the number one reason Xers and Millennials stay in the job, especially during the first three, tenuous years. Dissatisfaction with the boss is the number one reason they quit.

So in order to increase retention, managers must take a flipped view on leadership—it is no longer enough to hire the right people and show them the way, now you must BE the right person to win their affection. Sounds a little touchy-feely for the workforce, yet the faster leaders understand this new relationship, the sooner you will see the reward in the way of increased retention. There is one big caveat to the "be the person they want you to be" approach to leadership, however.

Millenials have a tendency to seek tight bonds—they want a boss who is close, caring and aware. And you can be all that. It is very easy to cross the line between "boss as advocate" to "boss as friend." That is a slippery slope. It can be especially tempting in situations where managers and employees are close in age. When activities outside of the office become too regular, too casual or largely social in nature, it is time to examine how this will affect your role as a leader. What Millennials need most out of a boss is a guide, not a social life.

Myth: They don't want to grow up.
Reality: They really don't know how. The youngest generations in today's workforce are facing a delayed adulthood. They are getting married later, having children later and just generally facing the "real world" later. This isn't the result of a mutated maturity gene, it just is. And if we are being completely honest, Boomers had a lot to do with why it's happening.

First, as parents, Boomers had a tendency to coddle their children and use their own good fortune to make sure their children didn't experience adversity. Second, as career models, Boomers demonstrated the toll of working long hours and "paying one's dues" in a way that made their children less likely to follow in their footsteps.

Millenials today look at the corporate ladder and think, "there must be another way."My advice to you—don't waste time wishing they were different. Don't spend your energy comparing today's youth to the desires and drive you had at age 18. These employees are not a reflection of you, nor are they an earlier version of you. And again, that is okay. Your task is to take this new understanding and use it to reposition how you interact with, motivate and reward your staff. Take attire for instance. Your 18-year-old self would have gladly donned whatever uniform was necessary to fit the company mold. Be it pressed khakis and a tie or a specific corporate uniform, fitting in was part of the package.

Today's youth wants to stand out. They want their individuality to shine through even when required to provide a consistent standard of service and performance. Balancing corporate needs with individual desires takes some creative thinking.

Home Depot is one company that has addressed this dilemma at a very basic level—company uniforms. They simply require that all employees wear a standard Home Depot apron. Be yourself underneath (within reason) and show the customer that you are on the Home Depot team with this bright orange apron. Is there a standard that you can adopt to accommodate individual preferences? Something to think about. Not all change is bad.

As we've discussed, the myths surrounding today’s young employees are not always what they seem. Attitudes toward work, life, loyalty and respect have all changed, but each is still considered valuable. In fact, some of the demands made by today's youth are creating positive benefits for employees in every generation.

Flexibilty and respect for the individual, as well as the organization, are good for everyone. Loyalty from younger employees, once earned, is long-lasting. The adjustments you make to accommodate the changing attitudes of today's youth will be returned to you tenfold with decreased turnover, improved morale, and measurable business results. And when the frustration mounts, just remember things aren't always what they seem. Open your mind to the possibility that there is a benign, generational reason for the disconnect between what you want and what your employees are providing, and you may just find room to create a shared vision of success.

Cam Marston is a consultant who specializes in multigenerational communications and marketing, educating executives about the workplace expectations of different generations. For more on Cam Marston and Motivating the "What's In It For Me?" Workforce (John Wiley & Sons; May 2007), visit www.cammarston.com.

Higher Prices Don't Mean Lower Sales

2007-07-27T09:37:00.001-04:00

I read an online article this week about Karen Wilson (a Canadian designer) who made a strategic decision to charge a premuim for her products (purses). She believed that in the long run she would not be able compete with foreign-made products and knock-offs so she deliberately priced her pocketbooks at a premium level.

Many retailers would consider this to be a suicidal approach but I respect her decision. She was also clever in HOW she executed her plan. Retailers who sell her products were skeptical about her pricing so she offered area rights and gave each retailer the exclusive right to sell her products within their local trading area.

Her strategy seems to be paying off. She has a growing list of retailers and is currently expanding her product line to keep up with the demand.

Remember, price is not the only influencing factor in a person's buying decision. If you provide true value and can effectively position that value, price becomes less of a factor. However, when everything is equal, price becomes the default factor.

Take a lesson from Karen's approach and think of how you can change your results.

**Read the entire on-line article here.

5 Types of Shoppers

2007-07-15T09:42:00.000-04:00

I came across this article written by Mark Hunter

In the retail industry, it seems as though we are constantly faced with the issue of trying to find new customers. Most of us are obsessed with making sure our advertising displays, and pricing all "scream out" to attract new customers. This focus on pursuing new customers is certainly prudent and necessary, but, at the same time, it can wind up hurting us. Therefore, our focus really should be on the 20% of our clients who currently are our best customers.

This idea of focusing on the best current customers should be seen as an on-going opportunity. To better understand the rationale behind this theory and to face the challenge, we need to break down shoppers into five main types:

Loyal Customers: They represent no more than 20% of our customer base, but make up more than 50% of our sales.

Discount Customers: They shop our stores frequently, but make their decisions based on the size of our markdowns.

Impulse Customers: They do not have buying a particular item at the top of their "To Do" list, but come into the store on a whim. They will purchase what seems good at the time.

Need-Based Customers: They have a specific intention to buy a particular type of item.

Wandering Customers: They have no specific need or desire in mind when they come into the store. Rather, they want a sense of experience and/or community.

If we are serious about growing our business, we need to focus our effort on the Loyal customers, and merchandise our store to leverage the Impulse shoppers. The other three types of customers do represent a segment of our business, but they can also cause us to misdirect our resources if we put too much emphasis on them.

Let me further explain the five types of customers and elaborate on what we should be doing with them.

Loyal Customers: Naturally, we need to be communicating with these customers on a regular basis by telephone, mail, email, etc. These people are the ones who can and should influence our buying and merchandising decisions. Nothing will make a Loyal customer feel better than soliciting their input and showing them how much you value it. In my mind, you can never do enough for them. Many times, the more you do for them, the more they will recommend you to others.

Discount Customers: This category helps ensure your inventory is turning over and, as a result, it is a key contributor to cash flow. This same group, however, can often wind up costing you money because they are more inclined to return product.

Impulse Customers: Clearly, this is the segment of our clientele that we all like to serve. There is nothing more exciting than assisting an Impulse shopper and having them respond favorably to our recommendations. We want to target our displays towards this group because they will provide us with a significant amount of customer insight and knowledge.

Need-Based Customers: People in this category are driven by a specific need. When they enter the store, they will look to see if they can have that need filled quickly. If not, they will leave right away. They buy for a variety of reasons such as a specific occasion, a specific need, or an absolute price point. As difficult as it can be to satisfy these people, they can also become Loyal customers if they are well taken care of. Salespeople may not find them to be a lot of fun to serve, but, in the end, they can often represent your greatest source of long-term growth. It is important to remember that Need-Based customers can easily be lost to Internet sales or a different retailer. To overcome this threat, positive personal interaction is required, usually from one of your top salespeople. If they are treated to a level of service not available from the web or another retail location there is a very strong chance of making them Loyal customers. For this reason, Need-Based customers offer the greatest long-term potential, surpassing even the Impulse segment.

Wandering Customers: For many stores, this is the largest segment in terms of traffic, while, at the same time, they make up the smallest percentage of sales. There is not a whole lot you can do about this group because the number of Wanderers you have is driven more by your store location than anything else. Keep in mind, however, that although they may not represent a large percentage of your immediate sales, they are a real voice for you in the community. Many Wanderers shop merely for the interaction and experience it provides them. Shopping is no different to them than it is for another person to go to the gym on a regular basis. Since they are merely looking for interaction, they are also very likely to communicate to others the experience they had in the store. Therefore, although Wandering customers cannot be ignored, the time spent with them needs to be minimized.

Retail is an art, backed up by science. The science is the information we have from financials to research data (the "backroom stuff"). The art is in how we operate on the floor: our merchandising, our people, and, ultimately, our customers.

For all of us, the competitive pressure has never been greater and it is only going to become more difficult. To be successful, it will require patience and understanding in knowing our customers and the behavior patterns that drive their decision-making process. Using this understanding to help turn Discount, Impulse, Need-Based, and even Wandering Customers into Loyal ones will help grow our business. At the same time, ensuring that our Loyal Customers have a positive experience each time they enter our store will only serve to increase our bottom-line profits.

Cheers!

Kelley

What Are YOUR Policies?

2007-07-09T15:45:00.000-04:00

I'm always fascinated how many retailers create policies to manage the extreme situations. I ran across this article on-line that focuses on handling returns and how the policies of some retailers are costing them business.

All Michelle Gluckow and her 13-year-old daughter wanted to do was buy a summer's worth of camp clothes in one night at a New Jersey Abercrombie & Fitch.

After she suffered through long lines, blaring music and low lighting, Gluckow says, the cashier refused to sell her all 24 items, because of a policy that capped purchases at 20 to limit reselling. Gluckow, incredulous that she couldn't pay full price for all the clothes she wanted, refused to leave the store until she had all the layered outfits her daughter needed. "In my opinion, the [20-item] policy is ridiculous," says Gluckow, who was buying different colors and items, all in the same size. "They said they were just protecting their other customers, which I thought was ironic."

Ultimately, she says, the manager grudgingly let her split the purchase between two credit cards. Gluckow says the Abercrombie manager told her she could pay cash or with a check for the four items over the 20-item limit, but she refused. Splitting it between two credit cards seemed silly enough.

Gluckow was luckier than Robert Martin, who says he couldn't get Sears to take back a faulty 7-month-old phone -- despite repeated calls and letters -- because accepting it back would violate store policy. Martin, a 30-year Sears credit card holder, says the decision shows why many businesses are losing loyal customers.

Read the full article here. © 2007 USA Today. All rights reserved.© 2007 ECT News Network. All rights reserved.

Sometime last year, I wrote a post about policies and how the wrong policy can hurt your business. While I certainly understand that retailers face more challenges today with respect to people buying an item then returning it a few days or weeks later, it is still a VERY small portion of the buying public who actually does this.

I personally believe that the more liberal your return policies are, the easier you make it do business with you. And this often leads to increased business.

I welcome your comments on this topic.

Cheers!
Kelley

What's Your Conversion?

2007-07-06T09:19:00.000-04:00

What's your current conversion? That is, what percentage of people who enter your store actually make a purchase?

If you don't track this critical measurement, I guarantee that you are likely underestimating how many people visit your store in a day/week/month, overestimating your conversion, and missing valuable sales opportunities.

When I worked with one retailer, the staff consistently complained that customer traffic was slow in the early part of the week. After installing traffic counters, the managers realized that it was not nearly as low as they expected.

Before installing the counters they believed their conversion ratio was approximately 20%. However, the data showed their actual conversion was just over 10% which demonstrated a HUGE opportunity to improve their sales.

If you own, or work in, a small store, you may think the investment of traffic counters is an expense you can't afford. My perspective is that you cannot afford NOT to track the numberof people who flow into your store.

Proper analyzing can help you optimize your scheduling--including when your key people should be working. And this can actually save you money by helping you increase your sales during peak times in your store.

Cheers!

Old Business-New Approach-Huge Results

2007-07-03T11:21:00.000-04:00

I watched the morning news with great interest this morning because the station featured a segment on an old business-dental.

At least 25% of the population experiences major stress when visiting the dentist; usually because of a negative or painful experience sometime in their past.

However, a new approach is being taken by several dental offices.

They are offering a range of additional services, each designed to help the patient relax BEFORE their actual appointment. They call themselves Dental Spas and they offer services such as massage therapy, hot stone massage, manicures, and in some cases, even champagne.

Not surprisingly, the concept is taking off and becoming wildly successful.

Think of how this concept applies to your business and determine what you could do with your "typical" retail store to make it different than your competitors.

Cheers!

Save Your Customer's Time

2007-06-29T14:32:00.000-04:00

"According to a Wall Street Journal article, the average shopper at a Wal-Mart Supercenter spends 21 minutes in the store and, in the process of speeding through the shop, fails to find 30 percent of the items they came in to buy." (Source Retail Wire)

That's the advantage a small, boutique store has over their big-box competitor. The challenge is helping your customers recognize that you can save them time. In today's time-strapped society, you can gain a signifigant advantage by demonstrating this to your customers. You can't compete on price so why not focus on the time element?

Case in point...I much prefer to shop at a smaller hardware store and grocery store than the big competitors because I know I can get in and out of the store FAST.

Why not loudly and proudly state this in your advertising? This certainly goes against many retailer's philosphy of advertising specials and low prices. But, if positioned properly, you could attract many consumers away from your big-box competitor. The change would not happen overnight (there's no such thing as a quick fix) but it could be significant.

Got comments on this posting? I'd love to hear them.

Cheers!
Kelley

The Art of Skillful Qualifying

2007-06-29T12:40:00.000-04:00

I am constantly under whelmed when sales associates approach me in a store. I find they typically use one of a few approaches:

1. They stand and wait for me to ask questions.
2. They launch into a pitch about the product.
3. They attempt to make small talk to try to make me open up.

Each of these approaches is very ineffective and does nothing to help the customer move toward making a buying decision. If you really want to make a difference and demonstrate to your customer why they should buy from you need to take a different approach.

First of all, recognize that if you truly want to separate yourself from your competition you must fully understand their needs before you begin talking about a product. Unfortunately, this seldom happens in the retail sales situation. However, that can make it very easy for you to begin differentiating yourself from other retailers. Here’s how you do it:

Ask questions.

§ What brings you into our store?
§ What reasons do you have for buying a…?
§ What were you looking for in a…?
§ Who else is involved in this purchase?
§ What is most important to you with this purchase?
§ Where else have you been?
§ What was your experience at…?

Each of these questions gives you the chance to uncover the customer’s buying motives. Every time you learn more about your customer the closer you get to actually closing a sale providing you utilize that information properly.

You’ll notice that the above questions are all open ended which means they require the customer to respond with more than just a ‘yes’ or ‘no’ answer. Open-ended questions serve two purposes;

1. They require the customer to think before responding. This means that you will receive quality information that will help you determine their specific needs and wants.

2. They actively engage the customer. This means that they will begin to feel more comfortable with you because they are actually participating in the buying/selling process.

The critical thing to remember is that virtually everyone in the world loves talking about themselves and the more you encourage the customer to talk about themselves or their situation the more they will begin to trust and open up to you.

The majority of retail sales staff do not appreciate the power of this approach. In my training workshops I frequently hear objections such as:

“This process takes too long. I don’t have time.”
“People get defensive when I ask them questions.”
“Customers only care about getting the best price.”

I definitely understand these objections. Effective qualifying does take time. Some people do get defensive. And some customers do care only about getting the best price. However, this approach will garner you different results.

First of all, the time you invest qualifying will be saved in presenting your product and trying to overcome objections. If you fully understand what your customer needs and want you will be able to show them a product/service that meets those needs. This means that they will have fewer objections. I have discovered that the more thoroughly you qualify a customer the less likely they will express objections.

Second, if you create a comfortable environment people will answer any question you ask. But you must give them a reason to do so. They must see that the question(s) you are asking are leading somewhere and are being asked for a specific reason.

Third, you need to determine if the price conscious customer is someone you really want as a client.Skillful qualifying takes effort, energy and practice. I suggest that you develop a list of open-ended questions that are relevant to your industry and practice utilizing them. The more comfortable you become asking valuable questions the more effective you will be become at uncovering your customer’s needs and wants. In turn, you will demonstrate to them why they should buy from you, today, at your price.

Cheers!
Kelley

Merchandising Matters

2007-06-20T20:25:00.000-04:00

I was recently looking to replace my cell phone and ventured into my local wireless provider's store to view the current phones. It had been over two years since I purchased my phone so I expected to see some great updates and a wider selection to choose from.

As I wandered around the store and checked out their available wares, I noticed that the only information about the phones that was visible was the price.

One phone caught my eye but it was gross pink--a colour I wouldn't even dream of carrying around. My wife asked the salesperson if that phone came in different colours--a question I didn't think of asking. Fortunately, that particular model was also available in a steel grey, and after seeing it, I bought it.

However, had my wife NOT asked that question, I would have left the store without making a purchase.

The manner in in which your store is merchandised will influence a person's decision to make a purchase. In fact, I remember no longer shopping at particular grocery store because they continually changed where products were located. Bundle like-products together. Position complementary items in the same area. If your products come in different colours, make sure your customers can see them. Merchandising makes a tremendous difference.

Cheers!
Kelley

Creatures of Habit

2007-06-18T08:52:00.000-04:00

It's hard to teach an old consumer new tricks, and a new Canadian study explains why.

People like to buy the same products at the same familiar stores simply because it's easier, the paper shows, despite the best efforts of marketers to sell them on better options. From economists to Bill Gates, everyone predicted the Internet would lead to consumers buying wherever they found the best products and prices, says Kyle Murray, an assistant marketing professor at the University of Western Ontario's Richard Ivey School of Business. Instead, they continue to flock to the same Web sites, stores and products they always have. His paper, in the June issue of the Journal of Consumer Research, determined why.

"People learn to use something like an Amazon, and they become more comfortable with it, they become better at using it, they're more efficient with it," Murray says. "They develop some shopping habits that mean they don't shop around, even though it would [take] maybe 15 seconds to find a lower price somewhere else." He and co-author Gerald Haubl at the University of Alberta conducted experiments that approximated online shopping, but the findings apply to stores, electronics or any product people become skilled with over time, Murray says.

Customers often shop on auto-pilot, getting familiar products from familiar stores or Web sites, though a bit more effort and exploration could mean more savings.

One experiment revealed that even if two retailers or products are the same in every way, when consumers are given the chance to use one repeatedly, the familiar option becomes vastly more attractive.

A second experiment demonstrated that consumers are not being duped into thinking their usual choice is better -- it's simply easier for them to get what they want quickly when they've had practice (a phenomenon familiar to anyone who beelines straight for the right aisle to find a specific product in their grocery store).

"The vast majority of what we do day-to-day is habitual or automatic, and it's only the occasional decision that we put a lot of thought into the way marketers think we think about all products," Murray says.

This is known as "cognitive lock-in" and it amounts to a very strong form of product loyalty, he says. "Lock-in" is normally an economic term that refers to the financial cost of switching from one product to another -- the penalty fees cellphone companies charge for breaking a contract are one example -- Murray says. But his study showed there is a "thinking penalty" that may keep people using the same MP3 player, online bookstore or grocery store simply because of the learning curve involved in switching to a new one.

For Loblaw Companies Ltd., the popular President's Choice brand is both a signature that sets them apart from other chains and a constant in their 1,100 Canadian stores, which include No Frills, Real Canadian Superstore, Dominion and Independent.

"It's that balance of making sure that people come back and those things they look for every week are there, and at the same time offering them a few surprises," says Elizabeth Margles, vice-president of communications.

Murray conducted a third experiment that offers some hope for businesses hoping to woo customers away from the competition. Habitual consumer behaviour is "goal-specific," the study showed, meaning people cling to their old standbys for familiar tasks but are more willing to try something else if there's a new task at hand. A customer habitually visiting the same grocery store to buy orange juice and eggs, for instance, might try the one down the street if they're suddenly in search of a birthday cake, Murray says.

Products that undergo redesign and retailers that overhaul their Web sites or stores risk "break[ing] the habits" of their usual customers, he says, because what they used to do on auto-pilot is now unfamiliar -- and that makes switching to the competition an easier proposition.
Gap Inc. is currently engaged in that balancing act, with radical redesigns transforming their stores into sleeker, more intimate spaces. Renovations are underway in Toronto, Edmonton, Ottawa, Winnipeg, Victoria and Red Deer, with the rest of the chain's 157 Canadian locations to follow.

Tara Wickwire, senior manager public relations, says the aim is "innovating and changing to the point where it's new and interesting for customers, yet there's a strain of familiarity."

Ultimately, consumers are creatures of habit. How can you use this to get people back to your store and prevent them from going to your competitor?

Source: Shannon Proudfoot, CanWest News Service

Quit Complaining

2007-06-08T16:05:00.000-04:00

While standing in line to pay for a purchase at a local store today, I overheard the sales associate complain about the temperature in the store to a customer. She was lamenting the fact that the air conditioning did not seem to be working although a few days earlier it had been.

In a newspaper article this past week, a retail employee complained about the type of customers he had to deal with and suggested that people be more understanding of a retailer's problems such as inventory issues and being short-staffed.

Several months ago I listened to two employees complain about their schedule directly in front of me.

Give it a rest already!!

As a consumer, I don't care about your problems or issues; I have enough of my own to deal with. And quite frankly, this type of behaviour only fuels my desire to shop at one of your competitors.

I suggest that you--the retail owner or employee--recognize the negative impact conversations like this have on your business. Unfortunately, in my career as a retail consultant and trainer, I have discovered that many owners and managers are the root cause of this type of employee behaviour. So...here are a few ideas to consider...

1. Teach your team to maintain a positive demeanor at all times. This is easier said than done but it can have a tremendous impact. Have them visit other stores in your local trading area and observe the staff in those stores. Get them to share their observations and brainstorm ideas how they can avoid leaving a negative impression with your customers.

2. Hire the right staff. Let's face it...hiring great retail staff is challenging at the best of times. However, too many retail managers and owners hire a warm body simply to fill a time slot on a schedule. Unfortunately, this means that they often end up with the wrong person. Hire for attitude and personality rather than job experience and many of your problems will disappear.

3. Lead by example. This is, by far, the most essential ingredient. If you fail to maintain a positive behaviour, your staff certainly won't either. I can venture into almost any type of retail store and tell you--within 5 minutes--what the management team is like simply by watching how the staff behave. Remember, your actions speak louder than words.

I know that running a retail operation is no easy task. I also know that a multitude of problems can crop up at any given moment. However, complaining in front or, or to, your customers, serves no purpose.

Cheers!
Kelley

Stand Out With Service

2007-06-01T12:21:00.000-04:00

A recent article I read (I don't recall where I saw it) stated that many customers now expect less-than-great service when they shop. The first thought that jumped into my mind was the incredible opportunity this gives the smart retailer.

If your competition provides average service, you have the opportunity to increase your marketshare simply by improving your service. But what does this entail? Or, how do you define good or great service?

Certainly service is a personal issue and what is important to one customer barely matters to someone else. However, I believe there are two key ingredients that almost everyone looks for.

1. Friendly & helpful staff. This means employees who smile at customers. Sales associates who have a positive demeanor. Employees who possess a genuine interest in other people. Teach your employees to be proactive in helping customers rather than waiting for your customers to take the initiative.

2. Quick resolutions to problems. The majority of retail sales associates seem bound and determined to make excuses for problems instead of correcting them quickly. Customers don't care about your policies, problems, or internal issues. They want their concern or problem fixed--fast and without hassle.

I know this sounds like common sense. However, if you visit your competition I will bet that many of them simply fail to execute. Which means you can stand out from them by making sure that you do.

Cheers!

Make It Easy

2007-05-25T09:15:00.000-04:00

The easier you make it for your customer to buy from the more money they will spend in your store. Here's an example:

Last week I decided to buy a new bicycle, and after a botched purchase at a big box store, I visited a store that specializes in selling bikes. A sales person approached us a few moments after we had entered and inquired what we wre looking for.

I gave him a bit of information and he proceeded to show me a bike that met my needs perfectly. He gauged my size and recommended a specific frame size (something I wouldn't have thought of). He then retrieved a bike from the back, took it outside and encouraged me to go for a spin. When I returned, he made a few sugestions for add-on items such a lock, kickstand, bottle cage.

The entire process took less than 15 minutes and he made it easy for me to make a buying decision.

- He knew what bike to suggest because he asked me a few questions.
- He pointed key difference between two bikes I was considering.
- He recommended specific additional high-margin items.
- He removed the risk through his knowledge and actions.

What can you do to make it easier for your customers to buy from you?

In Praise of the Heavy Spender

2007-05-22T08:41:00.000-04:00

I came across this article in ReportonBusiness.com. The author, George Stalk Jr., defines the importance of paying attention, and catering to, your top 20-30% of customers.

With virtually every category of retail products a very simple segmentation exists that is potentially much more powerful than any demographic or social-economic scheme being used: the heavy versus the light spender.

If you are a retailer or a supplier of consumer goods 20 to 30 per cent of your consumers are buying 70 to 80 per cent of your goods. This is not an insight. Indeed, this is the old 80-20 rule.

The insight is that the needs of heavy spenders differ from everyone else. These consumers think and behave very differently than light spenders. Heavy spenders have intense needs for product and service selection, a variety of types of information and service, and an emotional engagement with their category.

These consumers are worth focusing on. Yes, they are more expensive to serve, but do the math: Heavy spenders shell out four to 14 times as much in their favoured category than do light spenders. Get this right and big bucks can be made.

Retailers can "manufacture" the shopping experience of heavy spenders. By understanding how people shop and designing a store with that behaviour in mind, retailers can guide shoppers through their store and strongly influence their purchase behaviour, including the desire to return. Heavy spenders want point-of-sale material for performance products, "trial" opportunities for items where look and feel are important, logical product placement and organization of floor space, targeted promotions, etc. Generous return policies to encourage trial and affinity programs are further attractors of heavy spenders.

Consider Home Depot. The motto of most big-box retailers is, "stack 'em high and sell 'em low!" Home Depot was like that at one time. Its kitchen renovations department was the epitome of low costs - a limited selection of goods and minimal on-floor service to keep costs down and inventory-turns up. Then Home Depot realized that 70 to 80 per cent of that department's revenue was coming from 20 to 30 per cent of the department's customers.

That was an "ah-ha" experience for Home Depot executives. They speculated that perhaps the heavy spenders for kitchen renovations might be tempted to spend even more if the store organized the department around meeting their needs.

Heavy spenders want choice - and lots of it. They want information and help in making their purchase decisions. This means more selection and better-trained floor help as well as computer-aided design systems and suites of innovative kitchen layouts arranged in ways that heavy spenders could readily sense what they'd be getting for their money.

Home Depot's bet was that although the department's servicing costs would rise in the heavy-spender model, revenue and gross margin would increase even more. When the retailer experimented with a kitchen renovation department set up to appeal to the heavy spender, it found that revenue and gross margin per square foot were much greater multiples than those of the traditional, low-cost department meant to satisfy all consumers.

Home Depot had the added benefit of having many stores - stores that could serve as test sites to psyche out the needs of heavy spenders and attempt to scratch those itches. Heavy spenders in categories such as window treatments, painting and wall papering, bathroom renovation, basement redecoration and on and on were hypothesized and pursued successfully.

Such customers seek consistency in terms of value for money, quality, service, selection and a good purchase experience. In return, they become brand zealots - eager to spend their dollars and share their "find" with other heavy spenders in the same category. The heavy spender will, when served appropriately, spend more per visit, visit more often and "creep" into adjacent categories.

Further, a virtuous circle can be established, with the high revenue per square foot actually resulting in lower costs for the department, even though it is offering increased service.

Serving the heavy spender represents a huge opportunity to gain competitive advantage. The company that overinvests (by industry standards, anyway) in heavy spenders and makes it expensive for them to switch to a different brand (there are many ways to accomplish this) can increase its share of this group and enjoy a revenue gain significantly greater than that of competitors that average their offerings across spender groups. The company can also increase purchase volumes to the point that its costs go down, relative to its competitors.

The opportunities to serve heavy spenders are everywhere. In my travels I hear people excitedly describe their efforts to build home-security systems, meet the day-to-day needs of aged parents, fawn over pets, decorate gardens and be the best-equipped road warriors to earn the dough to pay for all this.

What about the light spender? Forget 'em! If they don't like it let them go elsewhere. Odds are, though, they are heavy spender "wannabes" and will actually respond positively to the efforts you make to attract and secure the heavy spender.

George Stalk Jr. is senior partner and managing director of The Boston Consulting Group of Canada Ltd. and adjunct professor of strategic management for the Rotman School of Management at the University of Toronto.

Cheers!
Kelley

The Key to Keeping Customers

2007-05-11T07:34:00.000-04:00

This article was recently featured in the Financial Post.

'Show me the service,' Canadian consumers say

OTTAWA - "Show me the service," could be the mantra of Canadian consumers, according to survey results that suggest most feel the best way a company can show its appreciation to its customers is by providing good service.

And consumers in this country are more likely to feel they have received good, even great service, from Canadian companies than they have from companies in other countries, according to the TD poll results released Wednesday.

Three out of four said "just show me good service" was the best way for companies to express appreciation for their business, far outranking any other forms of thanks, including a gift, cited by just 13 per cent, or a donation to charity, picked by only seven per cent.

However, what Canadians mean by good service varies from region to region, with Quebecers most likely to choose "respect" as the most important aspect of service to them, Atlantic Canadians "friendliness, and other Canadians "knowledgeable" service.

The findings confirm some well-established tenets of customer service, the analysis of the survey results said, noting, for example, that more than 80 per cent agreed that one experience can make or break their relationship with a particular brand or company, and that 94 per cent say they have shared both their good and bad customer experiences with friends and family.
Eight in 10 Canadians also claim that those shared experiences have influenced the purchasing habits of others.

The results also suggest that the word-of-mouth method of expressing discontent is used more than formal complaint channels, with just six in 10 saying they have complained in writing to at least one company about bad service.

"Canadians' passion for the topic of customer service is astonishing," said Tim Hockey, TD Canada Trust's group head of personal banking.

Overall, Canadian companies get high marks for providing service.

Just over three-quarters say Canada is the best place for service from any type of company, well ahead of the U.S., which was selected by just eight per cent, and everywhere else with scores of four per cent or less.

However, only 62 per cent said they have received "great service" in the past month, ranging from about 70 per cent in Manitoba, Saskatchewan, and British Columbia to a low of just over 50 per cent in Quebec and Alberta. And 14 per cent of Albertans said it's been more than a year since they experienced great service while 10 per cent of Quebecers said they "never" have.
While Canadian companies may be doing a better job servicing customers than other countries, the results suggest they have to keep trying to do better, Hockey said.

The online "loyalty" poll of 1,000 adult Canadians, conducted last month by Ipsos Reid, is considered accurate to within 3.1 percentage points, 19 times out of 20.

Cheers!

One Person CAN Make a Difference

2007-04-20T11:00:00.000-04:00

A friend of mine send the following link to me. It's a short video relating to customer service and how one person can make a difference. It's worth watching.

Service From the Heart

Cheers!

Kelley

Industry Trends Worth Considering

2007-04-18T16:56:00.000-04:00

A few newspaper articles caught my attention in the past couple of days. These articles give some interesting insights into new trends affecting retail and business.

Trend#1-Bigger is Not Better.
The first was an article that outlined Home Depot's plans to build smaller stores. The plan is to create stores approximately 26,000-45,000 square feet compared to the 105,000 square feet required for a typical store. This certainly means they have to think outside the box and significantly adjust their approach.

This could spell trouble for the small independently-owned hardware store. After all, one of their competitive advantages is their size because it takes much less time to run in and pick up a few home improvement items compared to shopping at a Goliath like Home Depot.

Watch out Home Hardware!

Trend#2-Change Your Approach to Marketing
The second article focused on Proctor & Gamble's marketing ploy of opening a retail store in downtown Toronto. Called LookFab, its primary goals is to promote a variety of new P&G products. The store is divided into three makeover station and will showcase 6 beauty and personal-care lines. Consumers can get treated to a makeover, receive a free skin analysis, get simple beauty tips, and leave with a bag of freebies. What a great way to promote new products!!

A marketing professor stated that this could be much less expensive than creating a national television ad and I have to agree. An ad can cost as much as $500,000 just to create not to mention the expense required to air that advertisement. In all, P&G would likely spend several million dollars if they took they approach. Imagine how far a million dollars could go with their current approach, especially if they opened stores in major metropolitan areas in Canada.

BTW: The store will be open for less than a month.

Trend #3-Taking Care of Business
The bigger a company gets, the press it usually receives. And not all of that coverage is positive. In the last few years, Wal-Mart has had its share of negative press, particularly due to it perceived labour practices.

According to a recent poll, 71% of shoppers said they view the company "favourably" down from the 76% in 2005. Twenty-seven percent of the people polled said their perception of Wal-Mart has become more negative in the past year. And 11% said they shop at the retailer less because of concerns about the company's practices.

I'll be the first to admit that I do not shop at Wal-Mart. However, I do respect many of their business practices such as; just-in-time inventory, ordering systems, and their ability to command (dictate) terms of doing business with them if you are a supplier.

However, in my opinion, they could have done a much better job at managing this situation if they had taken of their less-than-favourable business practices the moment they came to light.

Trend #4-Utilize Technology
In recent years Starbucks has undergone a massive expansion and found, Howard Schultz, has plans to increase this even more. One of the challenges with this anticipated growth is maintaining consistency from store to store. In fact, I have personally seen a rapid decline in the consistency of their coffee drinks. What is a latte in one store seems to be a cappuccino in another, depending on the barista.

A few years ago I was in Manhattan, where, by the way, there seems to a Starbucks on every corner. I actually heard that there were over 1000 Starbuck just in Manhattan!! Anyway, every store had an automated espresso machine and every coffee I had was perfect. Now, the Canadian seem to adopted this approach. Plus, it also seems that their baristas have undergone an intensive training because virtually every coffee drink I have had lately has been consistently made. Technology works when it is ultilized properly AND when people are taught how to use it.

Take a look at these trends and consider how they affect your business. What can you do to improve your competitive advantage?

Cheers!
Kelley

How Comfortable Are Your Customers?

2007-04-13T08:40:00.000-04:00

Most retailers pay a great deal of attention to the merchandising, layout, and design of their stores. However, many fail to consider the comfort level of their customers.

Somethig as simple as temperature can affect a person's decision to buy from you or how long they spend in your store. And, we know that the longer someone spends in your store, the more likely they will increase the amount the spend.

I came across this article and thought you would enjoy it. http://www.stores.org/archives/2007/4/edit1.asp

The concepts may not be directly applicable to your type of retail store. However, with a little thought and brainstorming, I'm sure you can think of ways to use this information to improve the shopping experience for your customers.

Cheers!
Kelley

The Case of the Shrinking Inventory

2007-04-11T10:56:00.000-04:00

Loss or theft of products, commonly known as shrink, is always been a challenge in retail, regardless of what you sell. Here are a few tips that can help you reduce this loss.

First of all, it's important to recognize that there are three source of shrink: Suppliers, Customers, Employees.

Supplier Shrink
Very few ethical suppliers will intentionally short-ship products. However, some of your products may be of value to a less-than-honest driver and if you don't carefully check every delivery against the original order you could be losing money without realizing it. This can be challenging especially during a busy day. However, if your driver knows that you habitually don't check shipments for accuracy, you make it easy for him/her to "misplace" one or two items.

It is also critical to check invoices for accurate pricing. I once dealt with new supplier who "accidently" over-charged me for one particular item. Although the individual unit price was small, the cost in a year would have been significant due to the number of these items we used throughout the year.

Employee Shrink
I recently read that financial loss by employees averages $1350 compared to just $196 by shoplifters. How can you prevent your employees from stealing?

1. Track every shipment that you receive.
2. Conduct cycle counts on your high-cost items.
3. Keep your back door locked.
4. Limit the number of bags an employee can bring into your store. Conduct audits from time-to-time. This last point requires some finesse and employees MUST be told that a periodic search of their belongings is part of their employment contract.
5. Watch for an excessive number of "no-sale" transactions or refunds that do not have a receipt.
6. Read your reports. I once had an assistant manager who voided several transactions at the end of his shift then pocketed the money because he did not have enough money for rent. Fortunately, our POS system had a void report and we reviewed this report daily.

Customer Shrink
The easiest way to prevent shoplifting is to improve your customer service. Research has shown that most shoplifters will NOT steal if they know a store employee or manager is aware of their prescence in the store.

Greet your customers. Make eye contact. Check to see if they need help. Above all, approach them if you think they are behaving in a suspicious manner. If you work in a mall and are not comfortable approaching them for safety reasons, contact security and have them watch the individual's in question.

Lastly, watch the floor. Fact: most shoplifting is done within 6 feet of an employee. I have seen dozens of security video tapes that capture a customer stealing while a store employee is engaged with another customer or is engrossed in paperwork or tasks such as merchandising or talking on the telephone.

The Bottom Line
Most retailers don't understand the financial impact shrink has on their bottom line. If your profit margins are 10% then you need to generate $1000 in sales for every $100 in product that is stolen, lost, or taken from your store.

Cheers!
Kelley

Heads Up, Eyes Open

2007-03-30T11:03:00.000-04:00

I recently traveled to another city to conduct a sales training workshop for a retail client of mine. At the end of the day I ventured into a local restaurant for dinner, and because I was by myself, I chose to sit at the bar. The only other people at the bar were a group of 3 people to my left and a lone female patron to my right. I sat patiently, waiting for one of the 2 bartenders to approach me.

Eventually, one of them made his way to my end of the bar to check on the group of three. He swiveled, walked directly past me, and asked the female customer if she wanted anything else. It wasn’t until I requested service several minutes later that someone approached me.
This isn’t an uncommon scenario in the hospitality business OR in retail.

I have noticed that most people don’t watch what is happening around them. If you work in a retail environment, you need to be aware of what is going on around you. You need to be aware of customers who require assistance, who is ready to pay for their purchase, and potential secruity issues.

Talking to your coworkers, calling a friend on your cell phone, reading a magazine, or dazing off into space prevents you from being aware of your surroundings and what is going on around you.

Improve your service, sales and business. Keep your head up and your eyes open.

Cheers!
Kelley

Talk To Me

2007-03-23T16:44:00.000-04:00

What one thing do most people want to talk about?

If you said "themselves" you are absolutely right. So, what does this have to do with retail?

Well, smart retailers engage their customers in conversation. And not just about products or promotions. And they definitely don't wait until the customer is standing at the sales counter to strike up a conversation.

I certainly won't dispute that this can be a challenge, especially with today's consumers. Many customer's tend to be closed, and perhaps somewhat aloof, when we first approach them. The primary reason is that they don't want to be sold something they don't need or want. And, if they know you or your team work on commission, they may be even more reluctant to talk to you.

Another reason people may be hesitant to talk to you is your initial approach.

Too many front-line retail staff approach people with a greeting similar to "Can I help you?" This old, tired greeting does nothing to elicit any type of response from customers except for something like, "Just look."

Finally, too many retail staff wait for customers to take the initiative and approach them rather than being proactive. I think I wrote about this on a previous blog.

Ultimately, we need to change our approach AND our greeting. And how we view this intial, yet important stage of the sales process.

A comfortable way to engage people in a conversation is to focus on THEM. Strike up a conversation, just like you would a friend (just make sure it's professional!). Talk to them about their children, the weather, sports, local events, world news, etc.

If you can't bear the thought of starting a conversation of this nature, change your approach and focus on helping them by saying, "It's looks like you're having difficulty making a decision" or "I see you're looking at our new..." or "That's a great product." Each of these openings encourages the other person to respond, and because it is different, you will generally receive a genuine, open response. Try it...it works.

Cheers!

Kelley

Managers Make A Difference

2007-03-16T08:39:00.000-04:00

I read this article which reinforces the impact a manager can have on a retail store. If you are experiencing high than usual turnover rates then maybe you need to take a look at your approach (assuming of course you are the manager).

Walking around, carrying a big stick and beating people into submission does not foster a great work environment. If you're serious about improving your business focus on taking care of your staff. This will reduce turnover which usually leads to better customer service, and ultimately, an increase in sales.

Cheers!
Kelley

Employee Creativity & Brainstorming

2007-03-15T11:24:00.000-04:00

I read an article in the Globe & Mail recently that intrigued me. It focuses on tapping into the creativity and ideas of your employees. Take a few minutes and read it because I think it has merit for virtually every type of retailer.

Most retailers don't utilize their employees to their full potential. I'm not talking about task completion but rather, seeking their ideas on how the business can be improved. Many front-line staff haves tremendous insights and ideas that can help improve your business...if you take the time to tap into them. Read this article and think of how you can use the strategies in YOUR business.

Cheers!
Kelley

Working with a Failing Star

2007-03-10T12:12:00.000-05:00

I read the following article in Sales & Marketing Managment magazine and immediately thought of its relevance to retail. Here is the article:

It's a problem you're likely to face at some point in your management career: A talented rep joins the team, only to reveal poor working habits and a bad attitude. Do you fire the rep? Try to change him? Rick Pitino (basketball coach, author, speaker) faced this dilemma with Derrick Caracter, a freshman this year who, talent-wise, was considered one of the top few recruits in the nation. But it was well-known that Caracter had a lazy streak. For that reason, Pitino never pursued him, but when Caracter asked to play for Louisville, the coach accepted him conditionally.

"I pointed out all the consequences of being late to class, and I told him the consequences of not working hard," Pitino says. "I told him what our program was about and he said he was buying into it. He's a terrific young man but the unfortunate thing is old habits are tough to break."

Indeed, Caracter found it hard to change and in late December, Pitino asked him to take a break from the team. "I realized that he was not part of this team, he exuded too much negative energy and not enough positive energy," Pitino says. "I sent him home and said… 'if you want to come back I'm going to make you sign a contract. If you violate it you will immediately be suspended and I'm going to work with you because we're going to try and change you.' " Caracter quickly violated two parts of his contract, the terms of which Pitino keeps private, and Pitino showed him to the bench.

"If he was in the corporate world he would immediately be fired," Pitino says. "But here you're dealing with a young person who you're trying to help in life, so you've got to go as far as you can go." In early February, Caracter still had the opportunity to come back if he met the contract terms, but Pitino says that all depended on the player: "The one thing I explained to Derrick before he broke this contract, is once you break this contract it's not me suspending you. If you violate any of these things that you've agreed to, then you're suspending yourself, it's not me."

Asked if it was worth giving up a talented player in the lineup in order to adhere to principles about effort, Pitino says, "When someone says 'your team really worked hard,' to me that's not a compliment. You're supposed to work hard. If your team doesn't work hard, then you don't have a team. That's your common denominator."

I have encountered many retail managers and owners who ignore substandard performance of a key employee because they are afraid of losing sales or having the employee quit and go to a competitor or because the store is short-staffed. However, ignoring this situation adversely affects your ENTIRE team. It is critical to summon up the courage and deal directly with this person's performance even if it means the consequences will be somewhat painful. Those consequences are usually short-lived while the impact of NOT taking action can be felt for a long period of time.

If you are interested in learning more about motivating emplyees, register for my upcoming tele-seminar, "Secrets to Motivating Your Retail Team" scheduled for June 12th. You can get details here.

Cheers!
Kelley

The Art of Skillful Qualifying

2007-03-02T14:55:00.000-05:00

As a trainer, consultant, and consumer I am constantly under whelmed when sales people approach me in a store. I find they typically use one of a few approaches:

1. They stand and wait for me to ask questions.
2. They launch into a pitch about the product.
3. They attempt to make small talk to try to make me open up.

Each of these approaches is very ineffective and does nothing to help the customer move toward making a buying decision. If you really want to make a difference and demonstrate to your customer why they should buy from you need to take a different approach.

First of all, recognize that if you truly want to separate yourself from your competition you must fully understand their needs before you begin talking about a product. Unfortunately, this seldom happens in the retail sales situation. However, that can make it very easy for you to begin differentiating yourself from other retailers. Here’s how you do it:

Ask questions.

- What brings you into our store?
- What reasons do you have for buying a…?
- What were you looking for in a…?
- Tell me about your current situation.
- Who else is involved in this purchase?
- What deadlines are you working with?
- What is most important to you with this purchase?
- Where else have you been?
- What else have you seen?
- What was your experience at…?

Each of these questions gives you the chance to uncover the customer’s buying motives. Every time you learn more about your customer the closer you get to actually closing a sale providing you utilize that information properly.

You’ll notice that the above questions are all open ended which means they require the customer to respond with more than just a ‘yes’ or ‘no’ answer. Open-ended questions serve two purposes;

1. They require the customer to think before responding. This means that you will receive quality information that will help you determine their specific needs and wants.
2. They actively engage the customer. This means that they will begin to feel more comfortable with you because they are actually participating in the buying/selling process.

The critical thing to remember is that virtually everyone in the world loves talking about themselves and the more you encourage the customer to talk about themselves or their situation the more they will begin to trust and open up to you.

The majority of retail sales staff do not appreciate the power of this approach. In my training workshops I frequently hear objections such as:

“This takes too long. I need to spend my time overcoming objections.”
“People get defensive when I ask them all these questions.”
“Customers only care about getting the best price.”

I definitely understand these objections. Effective qualifying does take time. Some people do get defensive. And some customers do care only about getting the best price. However, this approach will garner you different results.

First of all, the time you invest qualifying will be saved in presenting your product and trying to overcome objections. If you fully understand what your customer needs and want you will be able to show them a product/service that meets those needs. This means that they will have fewer objections. I have discovered that the more thoroughly you qualify a customer the less likely they will express objections.

Second, if you create a comfortable environment people will answer any question you ask. But you must give them a reason to do so. They must see that the question(s) you are asking are leading somewhere and are being asked for a specific reason.

Third, you need to determine if the price conscious customer is someone you really want as a client.

Skillful qualifying takes effort, energy and practice. I suggest that you develop a list of open-ended questions that are relevant to your industry and practice utilizing them. The more comfortable you become asking valuable questions the more effective you will be become at uncovering your customer’s needs and wants. In turn, you will demonstrate to them why they should buy from you, today, at your price.

If you need help with this I recommend that you read my book, Stop, Ask & Listen. It lists over 400 questions for virtually every type of retail business.

When is "late" actually late?

2007-02-22T15:16:00.000-05:00

At a recent workshop I conducted for retail managers, I asked how many people had to deal with employees who were consistently late for their shifts. Hands shot up all around the room and I was met with groans and moans.

As we continued the conversation, I was struck by how FEW managers actually did anything about this behaviour when it occurred. Excuses ranged from, "I'm too busy" to "I'm short-staffed so I can't afford to lose them" to "I've got more pressing issues to deal with." Some people also said that being a few minutes late was no big deal, even though they did express their frustration.

My opinion is that late is late. It doesn't matter if it's five minutes or fifty-minutes. If an employee is scheduled for a specific time then he/she is expected to arrive and be on the floor ready to go at that time.

However, how you, the retail owner or manager, handles this makes the difference. If you accept tardiness, people will continue to be late. If you nip it the bud, it will seldom become an issue in your store. This starts with you clarifying your expectations and communicating these expectations to your team.

When I managed restaurants, I made it very clear when an employee was first hired that punctuality was a non-negotiable standard. While I certainly made occassional allowances for extenuating circumstance such as weather or unexpected traffic, everyone who worked in our store knew that lateness was not acceptable. And, employees also knew--some from personal experience--that we would take disciplinary action if they were late. As a result, this was seldom a problem we had to deal with.

Decide now what your policy is for lateness. Communicate it to your team. Lead by example. And take action when employees breach this standard. You will be surprised how quickly tardiness disappears.

**If you manage a chain of stores or have a large store with several managers AND you would like them to learn how to deal with employee performance, contact me at 905-633-7750 or by email and we can discuss a program that addresses your particular situation.

Cheers!

Are You Having Fun Yet?

2007-02-15T14:50:00.000-05:00

Have you ever walked into a store and immediately felt a high level of energy in that business? How about tension so thick you could slice through it with a knife? What made the difference?

In most cases, it was the level of the fun the employees were having. Does this mean that they were goofing off and horsing around? Of course not. They were si ply having fun, enjoying what they were doing.

I used to work for a restaurant chain that encouraged its employees and managers to have fun during their shift. This is one of the things that made it different than its competition. However, many years later, everyone acts serious and that extreme energy is no longer is apparent.

We often forget that buying products is stressful for some people. This creates a strong physiological need that must be fulfilled. What to buy, where to buy, and of course, who to buy it from. Consider what your customers experience when they walk through the front door of your store.

- Are they greeted enthusiastically and with a genuine smile?
- Do they encounter employees who love what they do
- Do they deal with Sales Professionals who are passionate about the products they sell?

If you answered "yes" to these questions then you are on the right track. If you answered "no" then you need to consider how you and your team can have more fun at work. Loving what you do and demonstrating this enjoyment will lead to increased sales and success for your store.

Cheers!
Kelley

Customer Behaviour

2007-02-02T13:12:00.000-05:00

My youngest daughter forwarded this link to me and I thought you would enjoy it.

It's a forum called "Customers Suck" and it presents some pretty funny stories about customer behaviour. As a retailer, I'm sure you will be able to relate to some of the scenarios--you may even have experienced some similar situations in your own store.

Enjoy!

Kelley

Retail Sales Training - What Does Your Store Appearance Say?

2007-01-25T12:24:00.000-05:00

I came across an interesting article written by Britt Beemer, founder of America's Research Group, about the impact your store's appearance.

IS IT WORTH GOING IN?
I am consistently finding that consumers are paying less attention to advertising and more attention to store appearance. Our numbers say that the exterior of a store generates 45% of an entire marketing image. This includes the building's appearance, the signage, the landscaping, and the parking area. Consumers form impressions about the quality and selection of merchandise inside the store based on what they see the outside of the store. Some retailers are aware of this, and the outside appearance of their store is carefully thought out. Circuit City the electronics retailer, for example, put a two-story facade on a one story building, making a 26,000 sq ft. building look like 60,000 sq. ft. They found it very effective, and other retailers have followed suit.

Selection is also critical. Consumers have been shopping less since 9/11.They prefer to go to fewer stores and to go to stores where they know they're going to get a great selection. They don't want to have to look further.

One quarter of a consumer's decision to enter a store comes from the four-color circulars in the news paper. Advertisements like these can help or harm your selection image. You need to show a big assortment of merchandise in your advertisements and displays. Showing the same old stock can turn off customers. They’ll think, “Well, that’s all they’ve got.”

IS THERE SOMETHING HAPPENING IN THIS STORE THAT’S UNLIKE ANYWHERE ELSE?
Seventy-three percent of the consumers we’ve surveyed believe that all stores within a particular category look alike. This is caused by the demise of good merchandising. By using computers to track stock and sales, retailers are merchandising their stores into sameness. Consumers want a unique shopping experience, and retailers need to under stand the importance of differentiation. One way to do this is to have “showstoppers" that bring customers into the store. These are items that may not sell well but bring in business. An example is a furniture store that sells leather sofas. These are typically a pretty boring product. The storeowner could advertise or display a yellow, lavender, or red sofa and sell twice as many leather sofas. The dramatic colors catch attention, and shoppers will stop in and check them out. Chances are they’ll still leave the store with a beige, green, or brown sofa, but it was the “showstoppers" that got them in. That's where the return on investment comes in.
In my 25 years of market research, I have learned that you don’t market to sell merchandise, you market to sell the store. I advise my clients to go after the “Wow Factor" to differentiate their store from everyone else's. Chico's apparel specialty store has done the best job of this in the last two years. Their stores stand out from the competition in and out of the malls. Their unique product lines, color choices, and displays have made Chico's the hottest retailer for sales growth.

STORE PRIDE
When customers look around your store, do they get the impression that someone takes pride in the store? Is it clean? Is the merchandise well organized and displayed thoughtfully? Are the clothes on the racks in the correct size category? Not only does this show that staff and owners care, but it makes it easier for customers to find what they need. Shopping should not be work. An orderly store helps customers make buying decisions quickly and easily.

FINANCIAL STABILITY
One of the first things customers look at is gaps in merchandise displayed. Retailers don't always appreciate consumer's awareness of this. Regular customers will notice gaps the most, and, ironically, this can cause struggling stores to lose their best customers just when they need them most. If you've got ten some negative press about financial troubles, make sure your shelves are stocked to the hilt. Try to take the customer's perspective. Being privy to some one's financial struggles is a bummer.

COMMITMENT TO A CATEGORY
This is the single biggest weakness of retailers. When retailers think about adding a category of merchandise, they usually look at what the other stores are doing, and they devote the same amount of store space to a product category. To be successful, a retailer should make an effort to be known for some thing. Nordstroms is a good example. They are committed to their shoe department and they are known for that. Nordstroms' shoe department is two or three times bigger than the other stores' that shows their depth of commitment. Customers know they can find a shoe they like there. I advise my clients to continually strive to be a leader in a particular category, especially one that no one else is doing a good job with. Before you add an additional product category, you better make sure you have a big enough selection to make a commitment to it. The display has to convince consumers that this isn’t just a fringe category for you.

IS THIS A STORE OF THE FUTURE?
Consumers also make judgments about a store based on signage, display racks, and even light fixtures. These tell your customers whether you're a store of today, yesterday, or tomorrow. Has your building looked the same for 30 years, or does your building's décor tell your customers that you're moving ahead? Are you using the old style fluorescent light fixtures rather than the newer ones that high light the merchandise? Do your displays and signage fit your customers' sense of style??

IT IS WORTH RETURNING?
A consumer is always trying to decide whether you want them to come back or not, and they'll make that decision based on their entire shopping experience. Was it easy to get in and out of the store? Were they able to find items quickly and easily? Were the sale items that were advertised or displayed actually available? This can go a lot further than just being the cheapest guy in town.

Cheers!
Kelley

Retail Sales Training - You Set The Tone

2007-01-24T12:03:00.000-05:00

As an owner or manager, it is critical to remember that you set the tone for your store. Whether you are a franchisee, corporate store manager, or own an independent store, what you do and say reflects on your business. Let me elaborate...

From merchandising, to service, to employee behaviour, YOU influence it all. I can walk into almost type of retail store and within 5 minutes accurately guess what kind of person runs that particular store. Here are two examples:

1. A local store nearby specializes in imported food. All the employees greet customers with a smile and they are exceptionally friendly. Plus, they deliver great service, day after day. Turnover is low--I recognize staff that have been there for 10 years or more--something that is virtually unheard of in retail today. Business is brisk--every day! I can almost guarantee that the management of that store focus on their staff and treat them well.

2. Another store sells pet products. The staff at this store seldom smile or take a proactive approach to help customers. It's not uncommon to hear the cashiers complain to each other about the schedule, hours, etc. No one goes out their way to create a memorable experience. It's not difficul to figure out that this is not the greatest place to work. And in all likelihood, it's because of the manager. I can this because I once spoke to the manager and he was short and abrupt during our conversation.

Too many retailers blame the economy, competition, head office, and sometimes customers, for the lack of business or a decline in sales. However, it is critical to look within and at yourself first.

- Are you treating your staff with dignity and respect? Or, do you demand respect?
- Do you talk to your team? Or do you "tell" them what you want them to do?
- Do you keep your people informed and updated? Or, do you tell them what you "think" they need to know?
- Is your store a fun place to work? Or, is it a place where people show up because they have bills to pay?
- Do you have high standards and expect your team to perform to the best of their ability? Or, do you accept the bare minimum because that's all you think people will deliver?

I once wrote about the daughter of a friend who started working for a independently-owned clothing store. During her first week, the owner loudly criticized my friend's daughter--in front of customers. Needless to say, she quickly found another place to work. I suspect that store owner has a revolving door of staff and that she struggles with her business.

Ultimately, your mentality and approach sets the tone for your success. Are you going to succeed?

As always, I welcome your thought and comments.

Cheers!
Kelley

Retail Sales Training - How People Shop

2007-01-19T11:20:00.000-05:00

Not surprisingly, men and women approach the buying process from two completely different perspectives. During the last several years I have done quite a bit of research on this topic and I recently came across an article that offered another perspective. The article was written by Dr. Karen Wade and here is a brief overview of her thoughts.

Generally speaking, men approach the buying process with three objectives:

1/ Research
2/ Hunting
3/ Purchasing

Men will do some research on the product they intent to buy and usually does not the opinions of very many people. He will create some criteria for his ideal purchase and during his "hunt" he settles for a solution that meets most of his criteria.

Women, on the other hand, differ in their approach. They still have 3 objective but they are different:

1/ Research
2/ Discovery
3/ Purchasing

Women tend to do much more research and talk to many more people than men, especially for high-ticket items. Their "discovery" process pertains to the many emotional apsects of the purchase: defining and expressing a personal and/or family style, trade offs between what she really likes and what will work financially and practically in her life.

You can increase your sales substantially by adapting your sales appraoch to each gender. Generally, men will make a buying decision MUCH more quickly than a women. However, when you focus your attention on helping your female customers make an educated buying decision, you will earn her trust and gain a more loyal customer.

Cheers!
Kelley

Retail Sales Training - Get Ready for Superbowl

2007-01-11T11:29:00.000-05:00

If you work in the electronics business, you can expect sales to be brisk in the next few weeks since Superbowl 41 is just 24 days away. Part of the hype and lead-up to this event are the statistics involved. Here are some numbers to consider:

- Cost of a 30 second ad: $2.4 million plus production and development costs.
- Total game time: 60 minutes; total commercial time: 30 minutes
- Number of viewers: 125+ million
- Guacamole consumed on Superbowl Sunday: 8 million pounds
- Chips consumed: 14,500 tons
- Increase in Antacid sales the day after: 20%

So, what do these stats have to do with retail?

Well, statistics also indicate that sales of big screen TVs increase by five times in the week leading up to this event. Plus, 42% of the viewers are women. If you sell electronics, sports attire or memorabilia you should be thinking how you can maximize your sales during the next couple of weeks. Here are a few tips you can use to improve your sales results when selling to the opposite sex in the next couple of weeks.

Men selling to women:
1. Slow down your pace
2. Invest time and energy getting to know your female customer so they will be interested in continuing the relationship
3. Talk abut her, her business, her interests, her needs and not about yourself
4. Listen carefully to what she says
5. Avoid giving advice unless you are directly asked

Women selling to men:
1. Look, sound and act confident
2. Keep your conversations related to business or the male clients’ interests
3. Spend less time on social conversation
4. Move more quickly through the sales process and get to the point faster
5. Set clear goals to increase your effectiveness

Please recognize that these strategies are general in nature and are not intended to include ALL members of the opposite sex. However, I have learned in my sales interactions and training workshops that these tips are very helpful. Get more information on this topic in my book.

Don't wait for customers to come to you, be assertive and proactive in seeking them out. And don't forget to focus attention on your female customers--remember almost half of the viewers will be women.

Cheers!
Kelley

Retail Sales Training - Timing is Everything

2007-01-03T10:44:00.000-05:00

I was buying a pair of jeans the other day, and surprisingly, received some excellent assistance from one of the sales associates working in the store. I tried on several pairs and finally decided on one particular pair.

I thanked the sales associate for her help and proceeded to the POS to pay for them. As the manager(?) rang up the sale she said, "We have a 60 day exchange policy if you're not satisifed with them." My immediate thought was, "Why is she telling me this?" I had already tried the jeans on and if I wasn't satisifed with them, I would not have bought them.

While I appreciate the fact that the store has a liberal exchange policy, her timing was way off. It would have been much better for the sales associate to say this while I was trying the jeans on, not after I had already made my decision. Or better yet, advise me of this poilicy if I had demonstrated some hesitation or concern about buying the jeans.

Remember, you don't need to tell every customer about your policies. If you do tell them, make sure the timing is right.

Cheers!
Kelley

Retail Sales Training - Women, the Softer Side of Retail

2006-12-28T16:39:00.000-05:00

It's a well-known fact that women make up to 85% of the buying decisions in most households. However, most retailers have been slow to catch on to this.

An article in USa Today examines the approach Best Buy is starting to incorporate into to their stores to capitalize on sales opportunities. If your store is staffed primarily by men or you sell items typically purchased by men you should read this. Check it out here.

If you want to learn how to improve your results when selling to the opposite sex check out my first book.

Cheers!
Kelley

Retail Sales Training - Dealing with Refunds

2006-12-28T16:25:00.000-05:00

It's the post-Christmas season and more likely than not, your store is dealing with it's share of refunds. Although this is an undesirable aspect of retailing, it comes with the territory. Here are few tips that can make this less stressful and challenging.

1. Be proactive. Instead of ignoring people who are returning an item, take the the initiative and approach your customers with the intent of helping them. This will help you stand out and differentiate yourself from your competition .

2. Listen to them. Many refunds are caused because the customer has no need for the product or item that was given to them. Or, in some cases, it's because they can't figure out how to use it. Listen carefully to your customer's reason because it leads us to the next point.

3. Try for a different sale. Many people are looking for a solution to their probelm, not getting their money back. When you listen to the primary reason behind the refund you can often identify other items that may be of use or value to that customer. Don't be afraid to suggest an alternative solution.

These points are particularly important if your store has a designated area for refunds such as a customer service desk or counter. Far too often, the individual's working this area act like robots instead of human beings, and as a result, lose the personal touch and the opportunity to make an additional sales.

Cheers!
Kelley

Small Mistakes Cost You Big Money

2006-12-20T18:03:00.000-05:00

My wife and I are currently looking for a new lighting fixture to hang above our dining room table. We want something relatively contemporary, and so far, have visited approximately 10-15 stores in search of the perfect light.

This quest has uncovered some incredible mistakes that are costing store owners big money in the form of lost sales. Here's an example of some of the situations we have encountered.

1. We walked into one store early in the evening and were greeted with a heavy rock station blasting over the speakers. Although I like rock music, it is definitely NOT appropriate for a retail environment unless you are selling music, extreme sporting goods, or cater directly to a demographic that appreciates this type of music. Based on the selection of product on display, I suspect this lighting store's target market is people between the ages of 35-70 which means their music choice was a significant mistake. I certainly can't picture my mother feeling comfortable making a purchase in this store. In fact, when I mentioned this scenario to her, she immediately said, "I wouldn't shop there!"

2. Another store promised the region's largest selection of lighting fixtures which definitely intriqued us. We dropped by the store, and indeed, they did have a fantastic selection of lights, including several that appealed to our individual tastes. However, very few of the lights were operable which meant we couldn't see what they looked like when lit. Call me silly but when I buy a light I expect to be able to see exactly how it will look when it's turned on.

3. We ventured into another store that had a very good selection of lighting fixtures. We were looking at one in particular and there was a salesperson nearby. She mumbled something to us about the light--I guess to help us--but what she said was incomprehensible and immediately left us to retreat behind the sales counter.

4. Store #4 had a website that appealed to my wife for a variety of reasons and it sounded like this might be the place we find our ideal dining room light. However, the first thing that struck us as we entered the store was the smell of stale cigarette smoke, and as non-smokers, this definitely turned us off. This store had given us the impression on their website that they had an extremely large selection of contemporary fixtures but we didn't see anything that caught out eye. Although there were a few wall hangings and paintings that were attractive we did not want to bring home the smell of stale smoke, so we left. Oh, did I mention that we were greeted by a small dog who barking at us until we left. What a great way to make your customers feel comfortable!

5. We went into another store and noticed several employees standing behind the sales counter, chatting with each other. We looked at lighting fixtures for several minutes (approximately 7-10) but at no time, did any of them make an attempt to assist us. I guess they figured if we needed help that we would ask. Too bad for them.

I could keep going but I think you get the picture. Each of these retailers made some serious blunders that cost them potential sales and profits. What is very unfortunate, is the fact that they probably don't even know it.

Take a good hard look at your business from a customer's perspective and start looking at the mistakes you might be making that are costing you money.

Cheers!
Kelley

Retail Sales Training - Be Kind to Your Team

2006-12-15T19:06:00.000-05:00

I came across this article in the Globe and Mail (A national newspaper in Canada).

Retailers better watch out, because they could find themselves crying if they alienate their staff this holiday season, a survey warns. Santa could find even his most loyal elves walking out of the workroom when he needs them most unless he cuts them some slack in this high-stress time of year, according to the poll of 1,000 hourly retail employees conducted by Harris Interactive for employee management software developer Kronos Systems Inc.

It found that 46 per cent of retail employees said the way they are treated could cause them to quit over the holidays. But the findings speak to the stresses facing employees in the holiday season in all industries, from factories to offices, says Toronto-based Spiros Paleologos, vice-president of operations for Kronos in Canada.

This trend has become more pronounced in the past few years, he says. "Companies need to understand that the drive to create more efficiency, lower expenses and raise shareholder value has not been accompanied by taking the needs of employees into account."

That is especially true for younger workers, who have different priorities than their parents, Mr. Paleologos says. "They rate their personal lives and preferences as at least as important if not more so than their professional priorities." In previous generations, there were always more young people looking for work around the holidays than there were jobs. "An employer could just post a schedule and people were expected to accept what you got. If you turned it down, the employer had no problem filling the slot with someone else."

But there are fewer young people in the work force today and that means companies are competing for workers more than in the past, he says. When retail employees were asked what would cause them to quit their job over the holidays, 32 per cent said they'd bail out if the boss wasn't treating them with respect, 19 per cent said it would be the result of being overworked because there are not enough employees to do the job, and 14 per cent said they'd leave if their request for time off was rejected.

The survey also found that 43 per cent of retail employees said that, if they ask for a day off but are scheduled anyway, it has a negative effect on their job performance. Nearly all of them selected three ways an employer's lack of empathy with their needs would affect them: They are likely to be less motivated at work; they may call in sick; and they may arrive late or leave early.

Employers who ignore these findings could see customer service suffer, Mr. Paleologos says.
The survey also found a troubling number of employees willing to take revenge for alleged slights: 29 per cent said they have witnessed a disgruntled fellow employee stealing from their current or past employer. So what can managers do about it?

Mr. Paleologos says the following tips for keeping employees happy during the holiday crunch will go a long way toward keep them loyal year-round:

- Maintain appropriate staffing levels and mix of skills to reduce the stress that comes with being overworked.
- Identify training needs and provide the right opportunities for staff to develop effectiveness. The investment will benefit employees' careers and improve the operation in the process.
- Ensure you have the right employee at the right place at the right time to supply staff with the resources they need.
- Measure performance and productivity and identify areas that need improvement as well as acknowledging strengths.
- Allow employees to provide input on work preferences and availability, as well as vacation and leave time. This encourages them to plan for time off rather than having to fake an illness to get a needed day away.
- Set up an online system to make it easy for tech-savvy young employees to review their scheduling.
- Provide rewards -- a little thanks goes a long way for employee morale.

"Managers who don't understand their employees' preferences and work with their abilities will end up finding the workshop is empty when the elves are needed the most," Mr. Paleologos suggests. But keeping those employees happy throughout the year, he says, means they will be more prone to go that extra mile when required.

The lesson here is obvious. Take care of your staff and they will take care your business.

Cheers!
Kelley

Retail Sales Training - Service is Slipping

2006-12-15T18:55:00.000-05:00

An article in the Edmonton Journal recently stated that customer service has slipped during this Christmas season. While some customers accept this, I beleive it gives specialty retailers a HUGE opportunity.

Adding one or two people to the sales floor and making sure that you process a customer's sale quickly can help you demonstrate the value of buying from you versus from a department store or big box retailer. This may cost you a few extra dollars but this investment can pay huge dividends later in the year.

Remember, with increased traffic counts, you have the opportunity to impress many more people than normal. And, if you market this properly, it can help you increase your competitive advantage against the retail giants.

Cheers!
Kelley

Retail Training Tip - Watch the Heat

2006-12-13T19:10:00.000-05:00

I was shopping in a few retail stores this past weekend, and noticed that in most cases, they had the temperature cranked up high.

I realize that your staff need to feel comfortable while they're working but it's important to realize that your revenue comes from your customers. And, if they are uncomfortable in your store, which I was by the way, they will leave and give their money to one of your competitors.

I'm not suggesting that you drop the temperature by 10 degrees but it is critical to recognize that most customers (at least in the northern hemisphere) wear coats because it is cold outside. That extra layer of heavy clothing adds heat to their body and if the temperature in the store is set at high, it becomes unbearable for most people.

Seperate yourself from you competition by making it comfortable for your customer to shop in your store.

Cheers!

Kelley

Retail Sales Training - Retail Horror Stories

2006-12-09T16:42:00.000-05:00

I was reading an article in the local newspaper today about extremely difficult customers that some home builders have faced and some of the stories blew me away.

For example, one new homeowner complained that her floors were discoloring and after some research, the builder discovered that the owner's cat had been urinating on the floor and the lady had been so slow to clean afterwards that the urine was staining the floor.

In another situation, a man complained about leaks from his kitchen counter, which was being flooded with water. Later, he admitted that he cleaned his countertop by tossing bucket of water on it.

These stories got me thinking. I have heard some pretty wild retail-related stories over the years including one about an ex-military person who complained that the corners on the box that contained his VCR weren't sharp and crisp enough so he demanded a replacement. (The company refunded his money and told him buy another brand.)

I have decided to compile some of the wildest retail stories and I need your help.

If you have a story about a nightmare customer, the person from hell, or horrifying experience, I'd love to hear from you. If I use your story in this compilation, I will state your name, store (or company) as well as your URL. Plus, I will send you a free copy of the book when it is completed--I'm not sure if this will be an e-book or paperback yet. Don't worry about spelling, grammar, or punctuation--that's what editors are for. Send your story to me via email to Kelley@RobertsonTrainingGroup.com and please put Horror Story in the subject line. I will also post some of the more entertaining stories on this blog from time-to-time.

I look forward to hearing from you.

Cheers!
Kelley

Retail Sales Training - Competing Against the Giants

2006-12-07T10:12:00.000-05:00

Specialty retailers are facing more competition from the giants than ever before. I get calls and emails on a regular basis asking for advice on competing against these big-box stores. Unfortunately, there is no easy, one-size-fits-all solution. However, that does not mean that it isn't possible. Here's an example of what one health food retailer did when a giant moved into town.

Living Seed Health Foods, based in Toronto, had been in operation for over 20 years when a major health food chain announced they were opening just one block away. The two owners of Living Seed (a husband and wife team) decided to wait before making any major changes. However, shortly after the giant retailer opened, they found their sales dropping so they knew they had to take action.

At the time most of their business came from food sales and they knew they couldn't compete with their new competition so they gradually changed their product selection. Eventually, their product mix became 80 percent supplements and 10 percent food compared to 60 percent food and 30 percent supplement before the change. They were patient--helping customers learn more about the products they bought even when the products were purchased from the giant down the street. However, they didn't stop there. They gave their store a makeover that included designing a new logo, painting the interior, and introducing new shelving. Over time, customer counts started to climb and business began to return.

The entire process took about four years and there were times the owners felt they weren't going to make it. But persistence paid off and they are happily co-existing with the giant retailer.

It's not easy to compete against the big-box stores and giant retailers but it is possible.

I came across this story in the Sept/Oct issue of Canadian Health Food Retailer. I hope it has been helpful. As always, I welcome your comments.

Cheers!

Kelley
Kelley

Retail Sales Training - Are You Unique?

2006-12-07T08:44:00.000-05:00

An article in the Nov/Dec issue of Sales & Marketing Management highlighted a small bank who completely changed the appearance of their branches in order to compete with their large competitors. As we all know, most banks have pretty much the samem utilitarian look.

This company (Umqua Bank) has comfortable lounging chairs, Internet access, and areas where people can listen to music. They have also started referring to their branches as stores. And they tend to hire people with a retail background instead of financial expertise. Plus, they sell CD's of local musicans and hold concerts from time-to-time to attract younger clientele.

Their strategy seems to be working. Wwhen they embarked on this strategy, they had 6 locations and $150 million in deposits. Twelve years later they boast 130 stores and over $7 billion in deposits. This is remarkable!

They have managed to accomplish what most retailers dream of. Become completely unique in their niche.

What can you do to create your own uniqueness in your niche?

Cheers!
Kelley

Retail Sales Training - Selling Extended Warranties

2006-11-29T10:30:00.000-05:00

If your retail store sells extended warranties you already know how challenging it can be to capture sales. Well...it could get even more difficult.

A recent Internet article published by Canada.com stated that Consumer Reports has announced that shoppers should stay away from these programs. They state that profit margins are high (without reporting the costs associated) on these programs. That could make your job that much harder.

Here are a few tips that can improve your results:

1. Rather than present the extended warranty as a separate presentation, integrate it into your overall product discussion. Mention just one feature and benefit at a time instead of rattling off everything that your program offers.

2. Be prepared for objections. Plan responses for the most common objections you hear and practise these rebuttals until they flow smoothly and comfortably.

3. Mention the program to EVERY customer. Most front-line retail staff make assumptions about their customers and do not present the information about their extended warranty program to all of their customers. Instead, they pick and choose who they think will be interested and present the info to those customers.

4. Ask for the sale. If you have taken the time to present and discuss your extended warranty program to your customer in a professional manner, you have earned the right to ask them for the sale.

We know that most consumers either love or hate extended warranty programs. The key to successfully selling them is to believe in them yourself.

Check out my book, Stop, Ask & Listen for more information on selling extended warranties.

Cheers!
Kelley

Retail Sales Training-Dealing with Refunds

2006-11-24T07:41:00.000-05:00

A national newspaper (Globe and Mail) recently reported that refunds in the retail industry on are the rise, citing that 5-30% of all purchases end up being returned to the store. The article also went on to say that refunds are increasing by as much 50% in some categories.

One of the way you can reduce the number of returns is to invest more time uncovering your customers' needs and wants. When you learn more about how the customer will be using the product they are planning to purchase, you can make recommendations. And these recommendations often help your customer see how one particular product would be more appropriate for their situation. If you sell electronics or computers, it is critical to help people understand how to use their new toy, due to the complexity of newer technology.

However, you can still turn a refund into a sales opportunity. Instead of simply processing the refund find out why the customer is returning the item. And when appropriate, make suggestions for different items or products that may be more suitable for that particular customer.

Plus, your refund policy can make a difference whether people buy from your store versus a competitor. My youngest daughter once asked a particular store if they would refund her money if the blouse she was buying did not match her pants. Unfortunately, the store said 'no' and my daughter took her business to a competitor because she didn't want to be stuck with a blouse that she wouldn't wear.

Refunds are a fact of life in retail. How you deal with them makes a difference.

Cheers!
Kelley

Retail Sales Training - Don't Fall Short

2006-11-22T09:59:00.000-05:00

I received this advice from a retail consultant and thought you would appreciate it.

The demands of the holiday season can occasionally keep us from performing some of the services and elements of the customer experience that are standard operating procedure during the rest of the year. Maybe the store traffic is too high or the holiday customer just isn’t interested in a particular element. Take serving warm cider. A store that serves its customers warm cider throughout the winter may choose to not do so on last two weekends before Christmas. The store may find that the especially heavy traffic resulted in too many spilled drinks.

But there could be even a more important reason to stop offering the free cider. If the store was unable to keep up with the demand for the cider, the empty cider container would result in disappointed customers. Remember: Failing to fully execute a key element of your customer experience is worse than not offering it all. It’s true. Falling short is worse than not offering it all.

Here’s an example. I recently brought my car to one of those speedy oil change places. In the corner of the waiting room was a nice fixture with a sign above it that read “Complimentary gourmet coffee.” Unfortunately the fixture was bare except for some cups. Having a cup of coffee wouldn’t have even crossed my mind if the sign and fixture wasn’t there. But because there were visual cues that I should have gotten a free cup of coffee, I felt that I hadn’t received the full value of doing business with this company. And if they couldn’t keep up with a coffeepot, might they also be missing a few steps while working on my car? Falling short of executing a key element of your customer experience is worse than not offering it all.

A greeter who ignores customers is worse than no greeter at all. Having big rolls of wrapping paper in full view of the customer but not offering to gift wrap a customer’s purchase is worse than not offering gift wrapping at all. An empty candy dish is worse than never giving out candy. I think one could most definitely make a case that under-trained sales associates are worse than leaving customers on their own and just having cashiers to ring up purchases. Falling short of executing a key element of your customer experience is worse than not offering it all.

This isn’t just a seasonal issue, either. You see it in stores all of the time. You’ll see an empty brochure rack, or signs that read “No tipping for carryout service” but no one offers to carry out your purchase. Falling short of executing a key element of your customer experience is worse than not offering it all.

So let me ask, are there any changes you need to make to your store this holiday or going forward to ensure that you’re delivering on all of the elements of the customer experience?

Source: Doug Fleener

Cheers!
Kelley

Retail Sales Training - Types of Shoppers

2006-11-11T11:03:00.000-05:00

In this weekends newspaper, I read an interesting article about 6 different types of shoppers. Here is a quick overview of them:

The Return Artist
This person buys things to feel good. When she gets home she realizes she doesn't need the items so she brings them back.

The Ditherer
This individual has a difficult time making up his mind for a variety of reasons. Sometimes he is concerned he is paying too much, or he is afraid of making a poor buying decision.

The Impulsive
As the name suggests, this person makes impulse buying decisions, and not only for minor purchases. They may not need the item but they have a difficult time saying no.

The Tire Kicker
We've all experienced this person. Shopping is the hobby for this person, not the act of buying. She will try on designer clothes and test drive a luxury vehicle but have no intention of making a buying decision.

The Anti-Shopper
This person thinks shopping is trivial, frivolous and a waste of time. They typically enter a store with the intent to buy a specific item(s) and will not usually buy additional products.

The Junk Junkie
This individual is obsessed with sales and love the art of the deal. . They often shop in secondhand stores, seldoming pay full price for items.

As retailers, it is important to recognize each type of shopper and adapt your approach accordingly in order to get the most from each shopper. I haven't done much research in this area yet, but I have learned a thing or two about selling to different genders and have outlined these strategies in my book.

Source: Toronto Star, Saturday November 11, 2006

Cheers!
Kelley

Retail Sales Training - Ask for the Sale

2006-10-27T15:02:00.000-04:00

A national business magazine recently conducted a test of airline call centres. Among other things, they rated;

- the length of time spent on hold
- the friendliness of the agent
- how quickly the transaction was processed
- if the agent tried to close the sale

Not surprisingly, most agents did NOT make an attempt to close the sale after they had provided the information to the caller. This is a common mistake that many retailers fall prey to as well.

Most front-line staff are not taught how to ask a customer for their business. The majority of retail sales staff I talk to, tell me that they don't want to come across as pushy or that they don't want to upset the customer. Yet, if they were taught how to ask for a sale in a professional manner, the store's sales will increase--instantly!

Asking for the sale does not mean you have be aggressive, rude or pushy. If you have followed the rest of the sales process properly, you have earned the right to ask for the sale. And many of your customers expect it.

Learn how to do this by reading my book. Read the first two chapter for free here.

Cheers!
Kelley

Retail Sales Training - Are Policies Hurting Your Business?

2006-10-20T16:19:00.000-04:00

A customer’s purchase is overcharged by $10.00. The store policy is clear… “No cash refunds” so the sales associate refuses to issue the refund even though the mistake was hers. The customer was told he would have to accept a store credit or wait for a cheque to be issued by head office.

A customer wants to exchange a sale item she bought three hours earlier but the store policy states, “All sales are final.” The employee adamantly refuses to exchange the item for the customer.

What is the likelihood that these customers will buy from those stores again? As a customer, do you like being told, “That’s our policy?” I highly doubt it.

We all know that policies are instituted for a reason – to protect the company and reduce their liability. However, in many situations, policies are put into place to manage a tiny portion of the business – people who look for ways to exploit your business or who try to get something for nothing. Unfortunately, these policies are designed to control the minority rather than the majority.

There is no question that some people will take advantage of liberal and flexibly policies. However, my experience has taught me that these individuals are far and few between. Case in point; when I published my first book, I offered an unconditional money-back guarantee to anyone who did not feel the concepts would help them improve their business. My publisher was distraught about this decision, telling me that I was setting myself to be taken advantage of. Later, I extended this policy to the products I started selling on-line. In the last 4 years I have sold over 7000 copies of my book and many thousand of dollars of other products but I have only issued 2 refunds. Was the risk worth the reward? Absolutely!

Here is another example. One of my first clients expressed concern about doing business with an unknown vendor (me). When she asked what would happen if she wasn’t satisfied with the program I was going to develop for her, I told her that she wouldn’t pay. I even agreed to include this in my contract with her. Her company is still a client, almost four years later.
Here is something else to consider. When your policies change – which is not uncommon in today’s business world – don’t force existing customers to adhere to the new policy. At the very least give them an grace period to help them adjust to the new procedures.

The easier you make it for someone to do business with you, the more business they will generate, providing of course, you offer a good product at a fair price. I firmly believe that flexible policies can help a business gain more market share.

Many people are hesitant to do business with someone they have not purchased from in the past. And for good reason, they have been sold goods and services that have not lived up to their expectations. Reduce their concern and hesitation by making it easy and risk-free to buy from you. Evaluate the policies you have implemented over the years and look at them from a customer’s perspective. They may be costing you business.

Cheers!
Kelley

Retail Sales Training - Make the Most of Christmas

2006-10-12T10:48:00.000-04:00

I know Christmas is still 2 1/2 months aways but for most retailers, this is the make or break season of their year. If you are a specialty retailer who experiences a huge upswing in business during this time of year, here is a tip to increase your sales even more.

Contact your regular customers now and invite them to make their Christmas purchase(s) early. You can tell them that you will be able to spend more time with them before the December crunch hits. You can also remind them that inventory levels are better during late October and early November which means they are more likely to find the items they need. Some customers might express concern about Christmas sales and specials. Consider making these specials available to them--if they come in early.

This approach not only shows your customers that you are thinking about them, it gets them in your store BEFORE the real Christmas crunch. This also means that you can increase your October and November sales and free up your time in December to deal with all the walk-in traffic.

While you're thinking about Christmas, consider buying your employees a copy of my book, "Stop, Ask & Listen-Proven Sales Techniques to turn Browsers into Buyers". You can read the first two chapters here.

Cheers!
Kelley

Retail Sales Training - Avoid the Under Sell

2006-10-08T13:18:00.000-04:00

Long-time subscribers of my weekly newsletter may know that I used to be an avid runner, having completed a couple of marathons and several other running events. I am now getting back into the sport and need a new watch with a few specific features.

I ventured into one store and briefly explained what I was looking for. Much to my surprise, the first—and only question—the sales associate asked was, “How much do you want to spend?” Until that point, I hadn’t thought too much about my budget—I was more concerned with finding something to meet my specific needs. However, without thinking, I blurted out “As little as possible” and she immediately showed me a basic watch with the features I wanted.

After leaving the store, I couldn’t help but think that she short-changed the sale by focusing strictly on price. If she had asked me a couple of questions about my running regime, habits, goals and objectives, it is very possible that she could have recommended a more expensive watch. While I never recommend that you sell people goods and services that they don’t need or want, I believe it’s important not to under-sell either. Most people will spend more if they are given the opportunity.

Cheers!
Kelley

Retail Sales Training - Be Quick!

2006-08-24T09:55:00.000-04:00

As I wandered through a local farmers market last weekend I noticed 2 different approaches used by the vendors. In some cases, the farmer simply stood behind his display and waited for people to approach his/her stand to make a purchase. However, other vendors, were very active in generating attention AND sales.

Two vendors stood out among the dozens of stands selling everything from fruits and vegetables to fresh bread to clothing. In both cases, the people working the stand was actively seeking people out. They were quick to acknowledge customers and extremely upbeat and energetic. Plus, they actual sold their goods, each in their own manner.

One person had a well-rehearsed infomercial developed that he recited as he demonstrated his product. Another used descriptive words to tell people how fresh his produce was and he created a sense of urgency. In both cases, the vendors kep their eyes open and continually watched the people at their stand so they could process every sale fast.

They didn't make people wait. They didn't wait for customer to approach them. They didn't waste any time capitalizing on every sales opportunity. They had a constant flow of people and I'm sure they both generated significant sales during the day.

How does this apply to a typical retail environment?

Don't wait for your customers to approach you with a question. Take the initiative and be proactive. Talk to your customers. Ask them questions. find out what they're looking and help them make a buying decision.

Read the first two chapters of my retail sales book.

Cheers!
Kelley

Retail Sales Training - Invest in Your People

2006-07-29T10:51:00.000-04:00

Running a retail operation is extremely challenging. Increase competition. Margins that get smaller and smaller every year. And dealing with employee turnover.

One of the best investments you can make is to make the time and effort to properly train your staff. I am constantly surprised how many well-known retailers DO NOT invest time or resources in the development of their staff. Yet, this is often one of the most commonly-cited reasons people leave their job in favour of another.

Some retailers state that the primary reason they DON'T provide adequate training is because they'll just lose thay employee to a competitor. While that may be true, you stand a greater chance of keeping that employee longer, when you invest in their development.

Most retailer want to improve their average sale per transaction but are not willing to invest anything to achieve this goal. I guess they think it will just happen on its own. I won't dispute that training takes time AND money. But so does recruiting new employees every several weeks or couple of months.

Whe you invest time and resources into the training and development of your staff, you show them that you value them. And when people know that you care about them, they'll start to care about you.

Got an opinion about this? I'd love to hear it (even if you disagree with me!!).

Kelley

Retail Sales Training- What Happened to Respect?

2006-07-18T18:57:00.000-04:00

Most grocery stores have an express lane; in fact, some stores now have two different express lanes (1-8 items and 1-16 items). However, when was the last time they actually enforced this guideline?

I get tired of standing in line behind someone who decided to use one of these checkout lanes even though they were well over the number of items. But what really frustrates me, is that no one in the grocery store EVER says anything to these individual's which means the stores actually condition people to ignore the restriction. I usually make it a point to mention the item restriction to people who abuse the system, and more often than not, I'm told to mind my own business.

The same holds true for handicapped or invalid parking spots. I think it's intolerable that healthy and fit people use these spots because they're too lazy to walk the extra steps. Yet, I have NEVER seen anyone get a ticket for parking in one of these spots. I wish retailers AND mall landlords would monitor the use of these spots and IMMEDIATELY ticket and tag, or better yet, tow unauthorized vehicles. But, they're too concerned about possible repercussions. they feel that by making these spaces available--which is required by law anyway--that they have done their duty.

It's time for everyone to speak up. When you see someone disregarding laws and rules like this, you need to stand up and say something to that person. Teach them that their disrespect for other people isn't going un-noticed.

Just once, I'd like to see a cashier or a supervisor tell a customer to pack up their shopping cart and move to the proper line. As a retail employee, manager, or owner, you can improve your business by refusing to allow people to take advantage of these restrictions. Will you take some heat for it? Perhaps. And it will also take courage. But you will also gain a tremendous amount of respect from your other customers.

Cheers!
Kelley

Retail Sales Training- Be Proactive

2006-07-04T18:45:00.000-04:00

Most retailers tend to be reactive versus proactive., especially when it comes to selling. Even though their existence depends on increasing their revenue, very few take a proactive approach to selling. The exceptions tend to be stores that pay strictly on commission where you end up with aggressive sales people who care only about closing the sale. There is a better way...

A proactive approach does not mean you need to be aggressive. It doesn't mean you try and sell people products and services that you don't need or want. And it doesn't mean you have to pay only on commission.

The key is to help your team realize that when they take the initiative and approach customers in the store they are actually being helpful. They don't have to pounce on customers; in fact, allowing people time to become comfortable in the store is important. Being proactive means taking the initiative to find out what customers are looking for. In certain stores--department, general merchandise, drug stores, etc. this approach isn't necessary. However, in the majority of other retail environments, it can speed up the sales process and improve the level of service your customer's receive.

When you or your team approaches someone, your primary objective is to find out what they are looking for, what they need, and why they want/need that particular item/product. This means asking them a couple of questions, preferably open-ended and listening to their response. The challenge with this approach is that most retail sales associates don't want to appear rude or pushy. Providing they approach the customer with a freindly smile and a genuine interest in helping them, this won't be an issue.

This simple step can make a signifigant difference in your sales because it will give you the opportunity to make recommendations and suggestions. This is another topic which I will address in a future post.

Cheers!
Kelley

Retail Sales Training - How Long is the Line?

2006-06-10T17:52:00.000-04:00

One of my pet peeves in a retail store is waiting in line to pay for my purchase, especially if there are several cash lanes that are unattended.

A new drug store was built close to my home a couple of years ago. They installed 4 cash counters which I thought was great. However, it is rare that they have more than one or two people working these cash lanes. Today, for example, at 4:00 P.M. on a Saturday, they had one cash open while the line up continued to build. At one point there were more than 8 people in line waiting to pay for their purchases.

As a I left the store--without making a purchase--I expressed my frustration to the cashier only to be told that they were in the middle of a shift change and if I would just wait a few minutes someone would eventually help me. I took my business to their competiton across the street!

I can accept a line up when all the cash counters are open and I know that scheduling is challenging in retail. However, if this is a reoccurence in your store then you need to take a serious look at it because many people will eventually take their business elsewhere.

Cheers!
Kelley

Retail Sales Training- The Discounting Game

2006-06-10T13:14:00.000-04:00

Listen to this tip here: http://tinyurl.com/hmyrr

Virtually everyone who sells for a living is faced the dilemma of discounting from time-to-time in order to close a deal. However, it is critical to look at this wisely.

I once spoke to retail owner who sold her products at cost to one customer just to prevent him from going to the competition. She mistakenly believed that this person would eventually pay full price for her products down the road. My perspective is that it would be more profitable for her to let that customer go and take his business to the competitor.

A friend of mine was asked to do a presentation for much less than his standard fee. Even though he did not have anything booked on that particular day, and given the short notice, it was unlikely his calendar would fill up on the day in question, he resisted the temptation to discount his fee because he knew the value of his presentation to the company who had contacted him.

You won’t do business with everyone that contacts you. And severe discounting is seldom the best long- term answer. Here is the best rule of thumb to follow: if you don’t feel comfortable with the discount learn to let go of the sale.

If you face constant requests to discount your products or services then you should attend my upcoming tele-seminar series, Negotiate Like a Pro.

This 4-module series offers practical advice that will help you manage these requests much more effectively. You will feel more confident negotiating with price buyers. You will sell your products/services for a higher price. And you will feel better about yourself.

If you want to win more of your negotiations, then check it out right now. This program starts in less than 10 days so you have to act quickly. Don't wait. Register today.

Retail Sales Training - Service is King

2006-06-04T14:03:00.000-04:00

You can listen to this tip here... http://tinyurl.com/lgsdx

Some friends of mine are in the process of creating a garden in their backyard so they visited a local garden centre to buy some plants and shrubs. They approached an employee and asked where they could find a particular plant and the employee gestured vaguely to a section of the store. My friend asked about a shrub and received this exasperated reply when the employee noticed her list, “You want me to help you find everything? That will take me all day.” Needless to say, my friends decided NOT to spend their money at the particular store.

They drove a few blocks to a competitor and were greeted by a friendly employee who gave them all the information they needed to make an educated buying decision. Even though the plants were more expensive, they chose to buy everything at this particular store and ended up spending about $2,000.

People in my workshops often believe that price is the primary motivating factor in someone’s buying decision. However, more often than not, it’s the service you, your employees, or your company provides to your customers that influences their decision to buy from you rather a competitor. This is applicable for both retailers and people who sell B2B.

Cheers!
Kelley

Retail Sales Training - Never Do This!

2006-05-28T18:43:00.000-04:00

I came across this tip in another newsletter (www.salestrainingcamp.com) and thought it delivered a great message.

“My wife and I were out shopping for a graduation gift for our niece. We found an attractive ladies sport watch and decided to buy it. After I told the clerk that we wanted to take the watch, the clerk violated one of the never-do principles of selling... he volunteered a discount! Please note: I did not ask for a discount. But, without blinking, he gave us 30% off of the retail price. This prompted my curiosity. I wanted to see how much more I could get if I did a little bit of work. So, I went into the role of the recalcitrant customer who is having second thoughts.

“I told the salesman that we wanted to look at some other stores in the mall before we made our final decision. He responded by taking another 20% off. That's a 50% discount in less than 30 seconds! Now, I was really curious to see how far I could get him to go before he threw up his hands and asked us to leave the store.

“I continued to press the sales rep and, every time I stalled, offered an objection or gave him some indication that I may not be ready to make the decision, he responded with a discount. I finally walked out of the store with the watch in my hand, having paid only 35% of the listed price!”

What is the lesson for business-to-business salespeople? Never, ever, under any circumstances, volunteer a discount before a prospect has indicated a real hardship associated with paying the price that you are asking. Written by Gil Cargill – www.cargillsells.com

My comments: This reinforces the issue that sales people are often guilty of bringing up price objections. I remember talking to a sales person years ago after he had presented an idea to me. When I told him I planned to use another vendor he asked, "Was it my price?" I found this particularly interesting because we had NEVER discussed the price of his product!

Avoid this mistake and don't assume that price is the only reason make a buying decision.

Cheers!
Kelley

Retail Sales Training - The Power of Positive Contact

2006-05-16T16:33:00.000-04:00

Imagine walking into a business and upon asking the employee working behind the counter how his day has been, you hear, “Do you really want to know?” delivered in a sarcastic manner. Now picture this same person complaining about the amount of paperwork he has to complete.

Would you be inclined to do business with this company? Highly unlikely.

As a business owner or manager, you are probably shaking your head and thinking this could never happen in your company. Think again! I experienced this situation a few months ago when I was looking for a replacement battery for my cordless telephone.

These types of situations happen in an instant. And in those few moments of time a customer is potentially lost. Every moment of contact you and your team have with your customers either reinforces their loyalty and confirms their decision to do business with you or causes them to consider taking their business to one of your competitors.

Obviously, you cannot monitor every comment made by your employees every moment of every business day. However, you can reduce the possibility of this happening by following a few strategies.

First, you must lead by example. Your employees pay careful attention to how you treat customers, suppliers, and their coworkers. Actions always speak louder than words. You can tell your team to treat customers with respect and dignity but if you occasionally snap at a customer or show your frustration on a regular basis, your behaviour will ultimately influence the way your employees interact with your customers. This is particularly challenging because owners and managers must wear so many hats and deal with a variety of situations at any given time.

The second strategy is to hire the right people. We tend to hire people based on technical ability, yet we frequently let them go because of their inability to interact well with our customers or other employees. You can teach almost anyone “how” to do something providing they possess the desire to learn. However, it is extremely difficult to teach customer service skills to individuals who do not possess interpersonal skills.

Rather than focus on their job experience during an interview, direct your attention to how they have handled specific situations in the past. Ask behavioural style questions to determine their ability to manage challenging customers or deal with stressful situations. Here are a few examples;

“Describe a situation when you had to deal with a challenging customer.”
“Tell me how you manage several tasks at a time.”
“Explain what customer service means to you? How do you ensure that you deliver good service?”

Questions such as these will help you determine if the individual you are considering for the position possesses the necessary skills to represent your business in a positive manner.

The third strategy is to create a positive work environment. My wife and I generally buy our groceries at two or three different stores. At one store, a manager or supervisor is constantly “prowls” in front of the cash terminals taking notes on a clipboard. They seldom smile or talk to the cashiers unless they are giving instructions. In fact, based on their facial expressions, it appears that the managers always seem to be dealing with some crisis or problem. The employees in the store rarely speak to their customers and most give the appearance that they would rather be someplace else.

Compare that environment to the other two stores where all the employees smile and talk to the customers. Cashiers willingly help each other when they are not busy or do not have customers in line. Other employees in the store make eye contact and smile as well. There is a good feeling in the store and the shopping experience is enjoyable. The impact of the management team’s approach is visible - the first store is constantly advertising for staff while the other two stores have very little turnover.

The final strategy is to help your team understand the impact their actions have on the well-being of the business. It is not uncommon for employees to discuss their personal problems with each other at work. However, more often than not, this is done within earshot of customers. Customers have enough problems of their own – they don’t want to hear employees griping about their concerns.

The most effective way to get this point across is to ask your team members when they have experienced negative behaviour by an employee of a business. There is a strong chance that everyone will be able to recall a situation. Ask them to share how this experience influenced their decision to do business with that particular company. Then ask them to think of a time when a similar situation may have occurred in your business. Finally, ask them to brainstorm ideas how they can prevent these situations from arising again. This will help them fully understand the impact of their actions.

Every contact with a customer affects your business. Help your team learn the impact of positive contact.

Cheers!
Kelley

Retail Sales Training - "Just Looking"

2006-04-28T17:23:00.000-04:00

This is an exerpt from Kelley'r best-selling book, "Stop, Ask & Listen." Read the first two chapter free at Stop, Ask, & Listen.

Regardless of your work in retail, what type of store you manage, or operate, you’ve no doubt heard these two words more times that you care to remember. Over the years, I have come to understand just how much these words annoy, frustrate, and aggravate sales people. This frustration is magnified when situations like this occur: A customer enters your store, you greet them, and they respond with the standard “just looking”. Two or three seconds later they ask, “Do you have…?” You check yourself, containing your potentially caustic, sarcastic reply. Why is it that consumers say this?

First, it is a conditioned response. Years of shopping and dealing with sales people has caused consumers to say blurt out this phrase reflexively. We know from our experience that buyer will respond with this even when they’ve been asked a question such as “How’s the weather today?” We must understand and accept that this response is simply a conditioned response.

The second reason people say this is that until they actually buy something, they are just looking. They have not yet made a decision, they haven’t agreed to purchase anything, nor have they taken out their wallets and handed over their cash or credit card. They are just looking!

Here are two tips on how you can overcome the “just looking” response.

1. Use humor. When people enter our stores they are often apprehensive. If we can create an opportunity for them to smile or laugh we will help them become comfortable. It is physiologically impossible for someone to remain tense when they are smiling or laughing. Responses such as:

“You picked a great day to look. It’s 50% cheaper today than it was yesterday.”
“Feel free. It’s one of the few things that the government hasn’t been able to tax yet.”

When stated in a positive, non-condescending manner, these replies can disarm the customer’s natural tendency to be defensive. Using a humorous response can be the perfect icebreaker to help get the sale moving without making the customer feel threatened.

2. Vary your greeting. Let’s take a moment and view the shopping from the customer’s perspective for a moment. We’ve been in a busy mall shopping for several. We’ve been into countless stores and in most of them have been greeted in a similar fashion:

“Hi, how are you today?”
“Hi, how’s it going?”

Is it any wonder we receive a conditioned response? Vary your greetings with all of your customers, differentiate yourself from all the others stores in your mall, separate yourself from the competition.

“You look like you’re on a mission. What can I do to help?”
“That’s an amazing picture on that TV isn’t it?”
“These beds are great for having pillow fights!”

By varying your greeting when you first approach the customer you can give them reason not to respond with the conditioned response.

These two techniques are simple and easy to use. Yet, they are also very effective. They will help you to break out of the habitual greetings you generally use. Try them, work them into your natural style, and incorporate them into your presentation. And don’t allow that conditioned response to distract you from the real issue at hand…taking care of your customer!

Learn more retail sales strategies by going here http://tinyurl.com/q8lut.

Find out how to create a world class retail team at http://tinyurl.com/fvs8x

Cheers!
Kelley
http://www.RobertsonTrainingGroup.com

Retail Sales Training - Get the Sale, Lose the Customer

2006-04-22T13:59:00.000-04:00

Click on the link to listen to this sales tip...
http://www.audioblogger.com/media/113778/346587.mp3

I find it fascinating that some companies think that it is more important to take advantage of every sales opportunity without thinking of the consequence of their actions. Here’s an example,
A few weeks after returning my leased car to the dealership, I received a bill that included an “excessive wear and tear” charge for a very minor scrape on the bumper. I paid the $425 charge but vowed to never, ever buy or lease a vehicle from that manufacturer again. Considering that I lease two new vehicles every four years, this translates into at least 14 vehicles I will lease or buy over the next 30 years. This means the company sacrificed $324,000 in potential revenue in order to capture a $425 sale.

In a retail environment, it is not uncommon for a store to ‘push’ a particular product because they have an excess of inventory or because it will soon be discontinued. Too many sales people focus on the short-term sale without considering the long-term impact of their actions and this short-sightedness costs them market share. Don’t nickel and dime your customers, it will only cost you money.

Read the first two chapters of my retail sales book at...
http://www.stopasklisten.com/downloads/Chapters%201-2.pdf

Cheers!
Kelley
http://www.RobertsonTrainingGroup.com

Retail Sales Training - Would You Like Fries With That?

2006-04-20T21:08:00.000-04:00

In today’s competitive retail environment, sales and profitability are on-going concerns with many, if not most, retailers. Shareholder and/or corporate expectations of a healthy return on investment and consumer demands for lower prices appear to be diametrically opposed. There is, however, a way to survive the pressure from these demands.

Sell more add-ons or accessories.

This may appear to be a simplistic approach, but the truth is that most retailers leave thousands of dollars lying on the counter because their employees neglect to actively sell additional high margin items. These items contribute immediately to top end sales and bottom line profitability.
Both employees and managers have excuses why they don’t capitalize on this sales opportunity:

Employees say...
“I don’t have time.”
“Customers will tell me if they want anything else.”
“I’m concerned customers will think I’m being pushy.”
“I’m afraid of losing the sale.” (Particularly for commissioned sales people)
“I don’t get paid commissions so why bother?”

Managers tell me...
“Most of my employees are teenagers and they don’t care.”
“My store is too busy.”
“I’m constantly short-staffed so everyone is overworked.”
“I don’t have time to train my staff.”

I’ll reference McDonald’s, the burger giant, to address some of these excuses:

“I don’t have time.”
When the counter person states “Would you like fries with that?” it takes exactly 1.4 seconds. Suggesting add-ons does NOT take much extra time particularly when you consider the potential payoff.

“I don’t get paid commissions…”
You or your employee(s) may not make commission; neither does the counter person at McDonalds.

“Most of my employees are teenagers and they don’t care.”
What is the average age of a counter person at McDonald’s? Sixteen? Seventeen? If they can do why can’t you?
“My store is too busy.”
See response to “I don’t have time.”

“I’m constantly short-staffed so everyone is overworked.”
See response to “I don’t have time.”

Now, let me deal with the remaining objections by relating some personal experiences.

“Customers will tell me if they want anything else.”
When my wife and I bought our first computer we could hardly wait to get home and set it up. However, when I went to plug in the last power cord I was lacking a receptacle. I needed a power bar. This didn’t even cross my mind when I was in the computer store but if the salesperson had suggested it I would have bought one.

“I’m concerned customers will think I’m being pushy.”
Several years ago I was shopping for new suits. The sales staff brought me shirts, ties and socks to compliment my suits. When I left the store I was excited because I knew I had several combinations of suits, shirts and ties to wear. Not once did I feel that the sales people were pushing me into buying something I didn’t want or need.

“I’m afraid of losing the sale.”
In the example above, I didn’t even consider NOT buying the suits because the sale people were assertively accessorizing. I wanted and needed the suits and I had already invested a significant amount of time in the process.

“I don’t have time to train my staff.”
Training does take time and time is a critical issue in the retail environment. Neglecting your team’s development however, means that you are exposing yourself to higher turnover, loss of revenue, and increased stress.

Do yourself a favor, teach your staff the importance of upselling and incorporate suggestive selling into the routine of everyone on your team. Execute consistently and watch your sales and profitability increase!

To receive free sales training tips go to my website and subscribe to my weekly newsletter. http://www.kelleyrobertson.com/newsletter.html

Read the first two chapters of my retail sales book at: http://www.kelleyrobertson.com.stopasklisten.html

Cheers!
Kelley

Retail Sales Tip - Are Policies Killing Your Business?

2006-04-17T08:08:00.000-04:00

I'm constantly underwhelmed by retailers who make it difficult to do business with them. Here's an example;

A lady buys a sweater and shortly after leaving the store she notices that the sales associate had over-charged her for it. She immediately returned to the store to ask for a refund only to be told that all refunds had to be issued by check by their head office. Even though the employee made the mistake, she refered to the company policy and refused to give the customer the amount she had been overcharged!

Here's another example...

My teenage daughter was looking for a new top to wear with a specific pair of pants. Unfortunately, she did not bring the pants with her when she went shopping. After venturing into several stores, she eventually came across two tops she really liked. Her only concern was whether or not they would match and fit well with her pants. When she asked about the store's return policy she was told that a refund could not be given - instead they would issue a credit note. My daughter is a university student which means that money is pretty tight so she was reluctant to spend her hard-earned cash if she couldn't bring the items back. It's not like she planned to wear the tops once or twice and return them - which is known to happen in retail. She was a serious buyer. However, because of the store's policy she chose to continue shopping. That particular store lost at least $100 in revenue that day because of their policy.

I recognize that retailers face a multitude of challenges and that consumers are more difficult to please than ever before. But let's face it, sometimes policies need to be bent because of the situation or circumstances. Far too often, companies create policies to protect themselves from the minority of customer rather than making it easy for the majority of people to buy from them.

Examine your policies and make sure they're not costing YOU business.

Cheers!
Kelley

For free sales tips go to http://www.RobertsonTrainingGroup.com/newsletter.html