14 October, 2013

Nice is good, but reliable is better

I'm over retailers who think that being nice is enough to keep them in business. There, I've said it.

Being in any type of service industry is hard work. There are numerous touch-points with customers where you will be judged, and if you're not prepared to place a premium on your customer's good opinion and at least try to get these right, then you're probably in the wrong industry.

Three recent experiences illustrate how easy it is to be nice, but still lose your customer's goodwill.

I want to give you money - 1

The craft shop was an Aladdin's cave of lovely things. Looking at all the pretty things, it took me a while to realise the voice I could hear from the other end of the aisle was aimed at me. I was being acknowledged by a salesperson, which is great, though as we hadn't made eye contact, it was a little awkward, which is less great. Her continuing to talk at me when I just wanted to be left alone was annoying. Still, pretty things to look at, so allowances made. 

Come time to pay for my selection, I waited at the counter...and waited...and waited.
Whilst one staff member was busy with a customer, the other was sitting at the back of the store doing some paperwork.

By the time the staff member at the back had finished what she was doing and started heading to the counter, I was already walking out the door (having placed the item back on the shelf, I hasten to add!).

It was a lovely store, and the staff were pleasant, but none of that makes up for my custom being less important than filling out a form.

I want to give you my money - 2

A small hobby business with an online presence was having a sale. We couldn't get to their store, so decided to place an order via their website. About to enter our credit card details, we noticed that the checkout wasn't a secure site, so were reluctant to use it and didn't complete the order.

After contacting the owner to ask if there was an alternative way of paying, explaining why we didn't want to use his website, we received an email telling us he couldn't hold orders open. No acknowledgement of our concerns and, seemingly, no effort to provide a solution. 

Will we go back to that business? It's highly unlikely. It's a good example of a customer prepared to pay more elsewhere for better service and peace of mind. 


I want to give you my money - 3

Picture taken at 10:55am, and still no signs of life.


I understand that sometimes you're unable to open for trade at the usual time: that's what cafes and newspapers are for. That said, I do expect you to be realistic in when you say you will open. I'm not prepared to hang around indefinitely, and nor should I have to.







As a potential customer, how did these instances alienate me:

  • I need to have my space respected. It's great that I'm acknowledged, but it doesn't mean much if you're talking to my back, or continuing with an interaction I clearly don't want to have.
  • I want to feel like the most important person in your store. I certainly want to feel more important than paperwork.
  • If I raise a concern with you, I'd like it to be acknowledged. You may not be able (or willing) to do anything about it, but I'd like to feel you're listening to what I'm telling you.
  • You don't have to make an effort to find a solution to my problem, but don't then wonder why I'm not bothering to come back.
  • Don't steal my time. If you say you're going to be back at a certain time, be there. If you think it possible you'll be late, state a different time. 


I've talked before about the importance of reliability in building customer goodwill, because being nice just isn't enough.









29 August, 2013

Success can come accidentally - just not very often.

When what you do reaps rewards, it's a great feeling. But if you want that feeling of success more often, don't expect it to just happen, you have to plan for it. This is particularly relevant during the tough times when sales are harder to come by but costs as consistent as ever.
What's the easiest way to success? Involve your staff. 

Talk sales
If you're in retail, making sales is paramount. If it's important to you, it should be important to your staff.
Let them know your daily sales figures, and how they track against the previous year and target. A great way of doing this is a small whiteboard in the tearoom which can be refreshed daily. Better still, a sheet of paper detailing the previous year's sales and daily target for the week, which is updated with actual - and cumulative - sales on a daily basis. You can also do this for monthly figures.
You'll be surprised at how quickly staff engage with this sort of information, and start asking how sales are tracking throughout the day. 

Set sales related goals - and reward their achievement
More that just daily sales, you can also set goals around averages sales, items per sale and conversion.
This covers a lot of ground, which means you can keep things interesting; essential if you want to keep the momentum going.
A goal can be for any period you choose, but unless you're basing it on monthly sales, limit them to a maximum of two weeks. Longer than that and people start to lose focus and its effectiveness lessens.
Most importantly, remember to keep your goals SMART!

Recognise and reward great performance
If you want people to keep doing the good stuff, encourage them by acknowledging what they've done. Nobody operates well in a vacuum, and a bit of praise can go a long way. Recognising positive behaviours is about encouraging more of the same and setting new standards of performance for all staff.
Be creative with rewards, and know it's not just about money. An effective reward is anything the individual staff member or team values. It could be a chocolate bar, being allowed to go home early, additional responsibilities (yes, for the right person this is a reward as it represents trust), movie tickets, morning tea...or anything else you can think of. What you provide as a reward is limited only by your imagination and your knowledge of your team.
Unlike rewards for achieving goals, which are often discussed and set in advance, rewards for recognition of positive behaviours should be unexpected. Once people know that if they do A they get B, the reward loses its impact. Keep it unexpected and keep it fun.

In a nutshell:

  • Share sales results with your staff - it's all about the numbers
  • Set sales related goals
  • Change the nature of the goals on a regular basis to keep people engaged
  • Recognise positive behaviours
  • Be creative in the rewards you give - but don't be predictable

Actively making your team a key part of your sales strategy makes achieving goals much easier - and running the business a great deal more enjoyable. Giving them different goals and sharing information with them also makes the job more interesting for them. After all, we all know how easy it is to get tired and jaded if you do the same thing day in day out with no variation and no feedback. 







16 July, 2013

Breaking it down and making it easier

As important as it is to set goals, they can be a little overwhelming. Of course we want to increase sales, run a major event or upgrade our systems, but how to do it and where to start? 

All big tasks are made up of many little ones, and the trick is in tackling them one by one. Start by making a list of what's involved, however minor it may seem:
  • It makes it less likely that anything will be missed;
  • It allows you to prioritise tasks, which is especially important when the start of one is dependent upon the completion of another;
  • It encourages you to delegate.
Once you've made the list, you're better able to assess your resources and how you're going to use them. Set time limits and allocate responsibilities. In this way, what once seemed overwhelming is now manageable - you have created an action plan.

If we apply this to our previous SMART goal - to increase sales for the month of July by 10% on the previous year - the action plan might be as follows:

HOW
WHO
BY WHEN
Asking for every sale
All staff
Ongoing
Dedicated floor walkers during busy periods
Rosters up daily
All through July
Relaying fiction and new titles sections
Bob
3 July
Changing the staff recommendations display weekly
Gordon
Every Thursday in July










The action plan has three components:
  • How These are the specific actions which have an impact on the outcome
  • Who If it's everybody's responsibility then it's nobody's
  • By when There's no point reaching the due date and finding that key elements haven't been done in a timely manner
The actions required will vary depending upon the type of goal set. Increasing sales has a different set of requirements to designing and printing a catalogue, and the task list will reflect that. However, the principles are the same: what is involved in achieving the desired outcome and how best to manage that process.

Some of the benefits of this approach:
  • Utilising time and resources constructively;
  • Being able to review successes and failures and learn from them;
  • You're creating a template for how to execute a successful project;
  • A useful training tool for developing staff skills;
  • Minimises stress.
Remember the 5Ps and involve your staff in the planning stage if you can. No-one has a monopoly on insight or good ideas, so your action plan will probably be the richer for it. 

Breaking a goal down into smaller component tasks makes it much less stressful and more easily achieved. Less stress, better results - what's not to like about that?


01 July, 2013

How SMART are your goals?

You may have noticed that I have a love of acronyms. No, I will not LOL, don't do TTFN and as for PMSL, let's not even go there. But I do like an acronym which helps explain a concept and focus the mind. To that end, I'd like you to say Hello to SMART.



What does SMART mean?

  • Specific If it's vague, it's meaningless.
  • Measurable Are you able to quantify success?
  • Attainable Make it too difficult, and you set yourself up for failure. It should be challenging, but achievable.
  • Relevant Is it applicable and important to your business?
  • Timebound When does it start and finish?




Let's put this into context.

"My goal is to increase sales". Sound familiar? It's certainly something I hear a lot when I ask about business goals. But is it SMART? Whilst it may be relevant, it lacks detail. When do you want to increase sales? By how much? What are you comparing the increase to? When will you assess the success of your goal?

If we take that goal and add a few simple details we can make it something easier to manage and more useful to the business: "I want to increase sales for the month of July by 10% on the previous year."

Is it specific? Absolutely.
Is it measurable? If you keep clear and accurate records of sales, and you have a reliable system which can tell you how much you have taken on a daily basis, then yes, it is measurable.
Is it attainable? Only you know that. If you've been experiencing sales increases of 2% like on like then aiming for an increase of 10% is unrealistic, unless you have special measure in place to boost sales. 
Is it relevant? Sales are always relevant in retailing, so a resounding Yes.
Is it time-bound? We have a start and finish date - the month of July. Again, a resounding Yes.

You can see how the second goal can be measured and reviewed in a way which the first can't. It's important to be able to review the success of your goal: you want to replicate what worked and change what didn't. Without this element of review, you're missing a key tool to develop and grow your business.

The principles of SMART can be applied to pretty much any goal, from redoing the window display to planning for a stocktake. It also has the benefit of taking something vague and overwhelming and making it accessible. For example, by being more specific about what you want to achieve, it makes it easier to think about how you're going to achieve it*. It also enables you to share your goals with your staff in a meaningful way (which WILL increase your sales)*.

SMART and I have become firm friends. I think you'll be smitten, too.

[*Want further information on breaking down goals and sharing them with your staff? If you'd like my next blog post to be about this subject, let me know. Hell, don't be bashful, let me know what you think anyway!]








18 June, 2013

Do you know what your shrinkage is?

Why is this important? Firstly, let's start by talking about what shrinkage is, because it's not just customer theft.

In its most simplified form, shrinkage is the difference between what you should have and what you do have. Whilst customer theft is a big part of that, and certainly the most high profile, so is staff theft (yes, it happens), short supplied stock, goods sold incorrectly, goods priced incorrectly, goods not received into stock correctly and so on. In fact, it's not uncommon for the largest part of your business's shrinkage to be down to internal rather than external factors. 

Which brings us to the importance of knowing what your shrinkage is: without measuring it, you can't constructively manage it.

Any business which relies on the movement of physical stock will experience shrinkage to some degree. However, without regular comprehensive stocktakes, it is very difficult to measure the extent of that shrinkage. Financial, or computer generated, stocktakes are useful in telling you what you should have, but without comparing that to a physical check, your shrinkage remains unknown.

I'm a great advocate of the annual stocktake; bringing in extra staff, shutting the store and checking everything - EVERYTHING - in one session. As much as this requires a great deal of planning and effort, as well as the cost of extra staff (how many staff is down to how quickly you want it done), it's outweighed by the benefits to your business:
  • Having a clean database;
  • Accurately measuring shrinkage;
  • The ability to produce a report of all discrepancies;
  • Being able to assess areas of particular risk;
  • Discovering those items which should be gaining repeat sales but which have dropped off the system through loss;
  • Calculating an accurate, rather than an estimated, cost price for stock.

Whether the cause is theft related or a matter of human error, it is within your control to minimise the extent of your loss. Unusual occurrences or patterns may be an indication of a larger issue.

Which department are being targeted?
You'll almost certainly find that some product is more prone to theft than others, and the results may surprise you. If this is the case, you may need to move sections around or reconsider your display options. In some cases, if the theft issue is particularly challenging, you may need to consider whether you stock the product or range at all.

Are certain areas of your store particularly prone to theft?
It may be that the location rather than the product is the problem. This is something you may notice as a pattern having done several stocktakes. If so, consider new lighting, redesigning the layout, or perhaps even removing and replacing units.

Does your discrepancy report show odd margins or quantities?
Your problem may be in the back office in goods receiving or data entry. It may extend to the accuracy of sales being put through the register or the way customer orders or laybys are handled.

The preparation for a stocktake can also highlight potential problems: are completed customer orders still showing as outstanding; are laybys being cleared promptly; stock accumulating in non-sale areas, such as behind shelving, in back rooms, under counters etc.

Look at a stocktake as an opportunity to gain an accurate snapshot of what's happening in your business, and you'll find numerous ways to improve both the efficiency and effectiveness of how you operate. There are so many benefits to running regular stocktakes that you'll wonder why it took you so long to start.



04 June, 2013

Don't sabotage your message

You want to convey a message to your customers, so you formulate a sign, have it made up and display it. What response are you hoping for? Chances are you're expecting an increase in footfall, wanting to raise your profile and be front of mind for potential customers or looking to reinforce your place as part of the local community. Perhaps all of these things. 
Unfortunately, too often good intentions are let down by poor execution and lack of care.

This got my attention for all the wrong reasons.
I came across this sign the other day. It got my attention, but left me shaking my head. The idea was a good one, and the window is in a great location, but many people will be walking away wondering about the professionalism of an outfit which can't get a simple sign right.

Pedantry? Perhaps. However, customers make shopping decisions for a myriad of reasons, some of them emotional and instinctive. If they're making a split second judgement of your store, make sure you're putting your best foot forward.

Whilst the example above is striking, there are other, less obvious, ways retailers drop the ball in how they present their message:

  • Signs which are out of date, in poor condition or containing spelling errors;
  • Handwritten signs (and not the creative, engaging kind);
  • Sticky tape, fishing line, staples etc not cleanly removed;
  • Too many messages;
  • Not reinforcing what's stated externally, internally (if it's in the window, display it front of store, or at least make it easy to find).

The examples on this list aren't exhaustive, but they are commonly found. Unless you can say for certain none of this is going on in your store, then it's worth doing a walk through and checking for them. When you spend day after day in your store, it's easy to develop "store blindness", not noticing what's obvious to others. 

With so much competition for a customer's attention - and dollars - you can't afford to be ordinary. You certainly can't afford to look unprofessional. When you work hard to attract new customers and convince existing ones to return, it's a shame to undermine that effort with carelessness elsewhere.

Have you seen examples of good signs gone bad? Perhaps you have your own horror story. Don't be bashful, share the love.




28 May, 2013

You won't find sincerity on a checklist

During a recent visit to a local shopping centre, I had two exchanges which, for me, highlighted the difference between genuine customer service and working to a script.

Store A: "If that's not the right size, you can bring it back and exchange it."
Store B: "Were you after anything in particular?"

In each case it was the first communication with a staff member and in each case I walked out having formed an opinion on that business.

I had visited Store A to purchase a replacement saucepan lid, which I had spotted on a previous visit. The offer to exchange it if not suitable was made whilst I was paying, and came unsolicited. Though only spending $4, that staff member wanted to make sure I was happy with my purchase. It was a great, and very simple, piece of customer service, which also acted as an invitation to return. I walked out of that store feeling they valued their customers and knowing that if I had a problem, they'd be prepared to help solve it. They have now become a destination store for me. 

The exchange at Store B, the next store I walked in to, came from nowhere. When I say "nowhere", I mean it was made to my back. It was only when I looked around that I saw a staff member there. Who likes being talked at? I know I don't. Nor did I like being called "sweetie", as it's a level of familiarity which I find inappropriate. [Unless you've built up a suitable level of rapport with a customer - or are River Song - don't do it. Just don't.] What impression did I take away of that store? That they have a great range, but the staff are going through the motions and don't care whether I visit or not. Which, when you have three stores within a matter of metres selling similar product, is not a sensible approach to building your business.

Last week I spoke of the importance of communication and the skills involved in listening, which speaks to the nature of customer service checklists: they're meaningless unless backed up with a genuine desire to provide great customer service.  

Whilst setting customer service standards is admirable, it's only the starting point. 


You need the right people. 
This mean people who like people. As obvious as this sounds, there are countless sales assistants (and business owners) out there who don't. We've all come across them and the experience is invariably less than impressive. If you don't like people, you shouldn't be in retail.

Help your staff develop their customer service skills. 
Telling them what's required and why is only the beginning. This needs to be reinforced by showing them what's expected, giving them feedback when they fall short and showing them how to do better next time, and helping them to understand their customers' needs. Great customer service is a skill, requiring practice and ongoing development. 

Value the little things.
I love visiting stores and discussing all things retail. After a recent visit to a store in regional Victoria (the very fine Foster's Little Bookshop) I received an email from the owner, in which a very good point was made: the small things may not be at the front of a customer's conscious thought, but when they're not there, customers notice. 
What sort of things am I talking about? Stepping out from behind the counter to hand over the purchase; opening the door for a customer; offering to put an item aside or mail it out if a customer can't come in; letting the customer know they can exchange the item if it's not suitable...
It's the thought and care behind the little things which speaks to the sincerity of the service provided and which is appreciated by customers.

All this said, don't be put off establishing some basic customer service standards. It's important to let your staff know what your values are what's expected of them. However, appreciate that if all you're doing is providing a checklist, then you're only paying lip service to those values. Whether you want your staff to be warm bodies who do what they have to, or skilled assistants, is up to you. As with all things, you get out what you put in.

Does your store have defined customer service standards in place and, if so, how are they used? I'd love to hear from you.





20 May, 2013

The art of listening

I was in a kitchenware store recently when I overheard the following exchange:

Customer: Are these the biggest teapots you have?
Assistant:  We have more over there, but they're not spotted.
Customer: Are they bigger?
Assistant:  No.

I suspect the sales assistant didn't understand why the customer left looking unimpressed. But such is the nature of actively listening: very few do it and those that don't leave a trail of unhappy people in their wake and never understand why.

Whilst the example above is particularly obvious, I'm sure we've all been guilty of not listening at one time or other. I know I have. I can still remember the customer who came into my bookstore holding a newspaper clipping. "I read this review in the newspaper at the weekend..." she said to me. "Ah, say no more", I responded, whizzing off to the shelf to get the book. When I returned with it, looking very pleased with myself, the customer finally had the chance to say "it was the second volume I was after". Of course, if I had simply let her finish what she was saying, it would have saved us both time and I would have looked a darn sight more professional. 

So, what is active listening, and why do so few people do it? Active listening is about understanding and not just hearing. Gaining understanding of what people are telling you requires a set of habits which people can often find difficult to practice.

There are four key elements to active listening, and the first is also the most difficult - keeping an open mind. Unless you're a machine, you will have attitudes and assumptions that have developed over time; these must be set aside if you're to listen to what is being said, rather than what you think is being said. 

Active listening also takes time. Try to rush it, and you're going to miss cues, as well as make your customer feel they're being a nuisance to you. Whilst the various demands on your time can make this difficult, it's the exception which should prove the rule. 

You communicate a great deal through your body language, so use body language which will encourage open discussion and show your interest in what is being said. Face the person you're speaking with and maintain eye contact. Nod your head to acknowledge understanding. Smile. 

If you're not sure you understand what is being said, ask questions. Open questions are best for drawing out information and engaging in discussion. However, there are times when closed questions are needed to help clarify precisely what's being discussed. Reflective questions are also very useful, as they summarise the discussion to check understanding. They also show the customer you've been listening to what they have said. 

In summary, to actively listen, you need to:

  • Keep an open mind
  • Take time to listen
  • Use appropriate body language
  • Interact and ask questions

Is any of this ground breaking? Not really. Does it take a conscious effort to do? Absolutely. For it to become habit it first needs to be a practiced consistently. Consistency is a difficult thing to achieve, but well worth the effort. 

It's probably already struck you that active listening isn't just about customer service and selling. It's invaluable in all relationships and interactions, whether it's your staff, the person who services your car, family members, your suppliers or anyone else. If you're not actively listening, you don't know what you're missing.

As ever, if you have any questions, comments or feedback, I love to hear it.





07 May, 2013

You don't have to be on Facebook

That probably sounds an odd statement to make, right. After all, in this day and age, when social media is ubiquitous, having a presence on Facebook and Twitter is a given for any business wanting to connect with their customers. 
Well, yes and no. 
It's a terrific tool which allows you to engage with your customers in an informal and inclusive way...if you approach it in a professional manner. Because there's the rub: that it's informal doesn't mean you should approach it casually. 

What sort of things have me ready to click on "Unlike" or "Unfollow"?

Carelessness
As irritating as it might be, the old saying "retail is detail" has never been more true. I've spoken previously about the importance of merchandising and housekeeping; your social media presence is an extension of that. Incorrect set up (if your business has a Facebook Profile rather than a Page, then I'm talking to you), misspelling, missing information, not updating information...you get the picture. As retailers, we know we're judged on how we present ourselves and our stores, however unconsciously it may be done. Social media is simple another way of doing that.

Tumbleweeds
Social media is about engagement, so you need to engage; simply setting up a presence isn't enough. 
Post regularly and keep it relevant. Monitor interactions with your account. If people are engaging with you, then acknowledge that, and do it in a timely manner. Check your accounts once a day at the very least. Remember that by setting up a social media account, you're encouraging engagement with your customers; don't be careless with it when they do just that.

If anyone's going to be entertained, it should be your customers
I don't want to know if you're playing Farmville, or have had a great night out with your buddies, yet this is the sort of thing I've seen from businesses I have followed. Save that for your personal accounts, because I really don't want to be reminded that you'd rather be doing something else.

Don't spam me
Are your posts about selling, such as promoting your catalogue or current sale items? Do you use supplier promotional copy and press releases? Do you do these things almost exclusively? If so, you're spamming me. 
If I want promotional material, I'll go to your website or sign up for your catalogue. If I follow you on Twitter or Like you on Facebook, it's because I want to know more about your business and your team, so charm me. 
Post things which are interesting and relevant, and I'll be happy to read the occasional sales message. Make selling all you do and I'll run a mile.

What sort of things engage me?

Discovery and surprise
You know your business and product better than I do, so tell me things I don't know, or may not have discovered. It may be an article, video, website, or just a snippet of information. As long as it's relevant, you're on the right track. Avoid anything ubiquitous - you don't want to look as though you're late to the party!

Personalise it
If you care about what you do, that's your story. If you have a great team, that's your story. If you engage with your local community, that's your story. Share your story with me. If you're sincere and inclusive, it's difficult to resist.

Fun and whimsy
Finding your voice can take a little time, but it's worth the effort. If you can make me smile, I'll hardly even notice when you're selling to me.

Acknowledge me
That business which didn't respond to my post on their Facebook page about updating their address? I won't be seeking out their new location. The company which took three days to respond to my tweet praising some exceptional customer service in one of their stores? So much good work undone. 
However, the person who sent me a private message within an hour of a Facebook post about problems with ordering, you did your organisation proud. 


There's still a lot of fear and confusion around social media, but looking back on my comments it surprises me how much of it relates to good customer service and good housekeeping. Which shouldn't be a surprise at all, because everything a retailer does should be about their customers.
It's about the 5Ps, and again this should come as no surprise. Spend a little time setting parameters, such as who's responsible for the site and the sort of things you'll post and how often. Also do some research on what's out there and who does it well and why - as well as who does it badly and why - and you're setting yourself up for success.

So now you know that when I say you don't have to be on Facebook, it's not that I consider it unimportant, but rather that if you're going to do it in a half hearted way, you're probably better off not doing it at all.

Who do you think does social media well? Have you picked up tips from other businesses and, if so, how have they worked for you? I'd love to hear your feedback.



01 May, 2013

Good customer service is also good security

Do you know what your store's shrinkage level is? If the answer is No, you're not alone. Which is a pity, because not only does shrinkage have a direct impact on the viability of a business, but it can also be managed through staff behaviour. 
Knowing the extent of the problem (if you're in retail, you're going to have theft - it's just a question of degree) and the areas most affected allows you to adapt and make changes to minimise your loss. 
If you don't have the numbers or breakdown, don't worry, there are basic things you can do that not only make your business less attractive to thieves, but also more attractive to customers. 

What to look out for
You can't spot a potential thief by the way they dress or behave. People steal for all sorts of reasons and all sorts of people steal. There are, however, certain types of behaviour which should raise a flag:
  • Nervousness;
  • Loitering or monitoring surrounds. If they're less interested in your product than in the layout of your store or what your staff are doing, they may not be there to shop;
  • One member of a group of people keeping you occupied and unable to monitor the others;
  • Wearing unseasonal clothing, such as coats or heavy jackets in warm weather, or carrying them in cold weather (useful for hiding your stock);
  • Placing personal items on top of merchandise in a way which obscures it.
You should also look out for:
  • Large bags, backpacks, prams etc, which can be used to conceal merchandise;
  • Piles of stock where they don't belong;
  • Price stickers or security tags beneath or behind shelves
It's worth mentioning that whilst someone may display one or more of these behaviours, it doesn't mean they will try to steal from you. They may be acting oddly because...well...they're odd. It happens. Use this information as a tool, the way you would any other.

What you can do about it
If you're beginning to feel a little overwhelmed and vulnerable, know that there are some simple things you can do to make your business less attractive to thieves. 
  • Greet everyone who enters your store. Thieves like to remain anonymous and prefer not to run the risk of being recognised;
  • Be unpredictable. Thieves love predictability, so counter bound staff are a gift. Get out from behind the counter, walk the floor, take different paths (if possible) when travelling between counter/office/backroom/toilet etc;
  • Keep fields of vision as clear as possible. Tall shelving and display stands can act as cover for thieves;
  • Dark corners and poor lighting are also a shoplifter's friend. Keep your store appropriately lit and have good visibility in all areas;
  • Keep non sales areas secure by having locks and/or alarms on doors - and using them! Thieves will take advantage of any opportunity, which includes nipping into the back room and rifling through drawers and personal possessions;
  • Good housekeeping and tidy shelves make it easier to spot merchandise which has been moved;
  • Keep expensive or targeted items near the counter where they can best be monitored. Alternatively, consider a lockable cabinet;
  • Make it easy to summon assistance by having a bell or some other form of alert at the counter;
  • Farewell people as they leave your store. For some opportunist thieves, this simple act is a strong deterrent.
As you can see, there's little here which isn't also about customer service, whether it's acknowledging the customer, creating a welcoming environment or being on the shop floor where they're most likely to need assistance, rather than behind the counter. 
Best of all, it will cost you nothing.

So, if you think addressing store theft is too hard, think again. Some of the easiest - and most effective - steps you can take not only cost you nothing to implement, but are also good for sales. What's not to like about that?

And remember, good customer service is also good security.

24 April, 2013

Managing staff - it's all about the 5Ps.

There are two main recruiting practices:
  1. Filling a vacancy as quickly as possible and hoping for the best;
  2. Spending extra time and effort in the early stages to set all parties up for success.
The reality is that most of us have, at some stage, been guilty of option one. Your business doesn't slow down because you're short staffed, and the demands of Now can be overwhelming, overshadowing the Benefits of Later. But being prepared to suffer a little pain in the short term can set the stage for greater success - and much less stress - in the long term and on an ongoing basis.   

Proper
Preparation
Prevents
Poor
Performance
You're likely already familiar with the 5Ps. Make them the cornerstone of everything you do and you'll avoid much frustration and save a great deal of time dealing with avoidable problems.  
How to apply them to recruiting new staff? Here are a few tips:

Recruiting
There isn't a foolproof way to picking the perfect staff member, the aim here is to reduce the chances of selecting someone who isn't right for you or your business. 
The interview process can be a difficult one. Make it easier and more reliable by having a list of core questions you ask each interviewee. Base them on the requirements of the role and the values you're looking for. In this way you'll be comparing like for like on what's important to you. Also, if you're like me in having a terrible memory, you'll not forget to ask key questions!
If you can, do a second interview, ideally with a different interviewer. Different people pick up on different things, and this fresh approach can add real value to the process. Ideally, it will reinforce your original assessment. However, be prepared for the opposite. 

Induction
This is where it often starts to go wrong: a new staff member is brought into the business, shown little more than where the tea room is and how to use the register, then left to get on with it. 
Take time to share important information about your business: the history; business values and standards; policies and how to access them; services offered; what sets you apart from your competitors and so on. Help them to understand the why, how and where of your business.
Talking about your business not only sets the tone about professionalism and performance, but also goes a long way to making a new staff member feel part of it.

Training
Most jobs are far more complex than they appear. A task may appear straight forward, but have elements which must be fully understood to be performed well. Having a structured training component of the induction process will ensure that a new staff member is fully trained in all aspects of their role and set up to succeed.
As with the interview process, have the training component documented to make sure nothing is left out. Start with the basics and build on that, step by step, taking a logical progression. In this way more information will be retained and confidence developed.
Use the "show me" technique to ensure understanding. This is also useful as a refresher if there's a break before the task is actually performed, say a day later or before the next stage of training. When they're performing the "show me", be patient. Remember that they're not only new to the task (or at least your particular systems), but also probably worried about making a mistake. Letting them know you understand this will go a long way to relieving what anxieties they may have.
Don't feel that you have to complete every element of the training yourself. If you have staff with particular strengths, involve them in the process. It takes some of the pressure off you and shows the existing staff member you value their knowledge and ability to communicate it. 

Review
This is an ongoing process, whether a staff member has only just started or been with you for years. Whilst me may assume our staff know if we're happy - or unhappy - with their performance, the reality is that if we're expecting staff to "read between the lines", then chances are there are going to be errors and misunderstandings.
Clear and open communication is essential in the review process, as it is in all areas. At its simplest, this takes the form of constructive feedback, both negative and positive. Negative feedback helps a person understand what they have done wrong and how to fix it; it gets them back on track. Positive feedback reinforces desired behaviours and encourages more of the same. Both are essential and both should be done in a timely manner to be effective.
Why is it essential to do it in a timely manner? If you're failing to address a negative behaviour, the the perception is you're condoning it, making it much more difficult to deal with later. If it's a positive behaviour, then the perception will soon be that effort is not recognised and appreciated.
How often to give feedback? With positive, as often as possible. Look for wins to recognise. Sometimes, this could be as simple as thanking someone for doing a particularly good window display, or washing everyone's mugs without being asked. Feedback doesn't just have to be about the big things.


As you can see, none of this is difficult, though it does require planning and documentation. The beauty of it is that once this is done, it can be replicated each time someone new is brought into the business.
In summary, next time you recruit, set yourself up for success by doing the following:

  • Spend time to find the right person
  • Welcome them into your business 
  • Give them the tools and knowledge to do their job to a high standard
  • Keep them informed of their progress

Do you follow this process and, if so, how has it worked for you? Would you like to follow it but feel unable to? What do you think? I'd be interested to hear from you.





16 April, 2013

Want to build goodwill? Do what you say you will.

Each time I walk down my local shopping strip, I pass by a cafe I used to frequent. It doesn't have a particularly smart fit out, it doesn't have tables outside, it doesn't really have anything in particular to recommend it, apart from being part of a health food shop close to the train station. It's a business which relies on the goodwill of its customers, as so many businesses do. But goodwill is a frail and ephemeral thing, which needs to be fed and nurtured to survive. Take it for granted and you're likely to lose it. 
I ceased to be a customer when I felt my goodwill was being taken for granted, in this case by the cafe regularly opening later than stated. 

If you want my goodwill, do what you say you will.

The things which irritate me as a customer are probably the same things which irritate you. They're obvious and shouldn't happen, and we'll complain about them when they do. Yet how often do they happen in our own stores?

Not sticking to our trading hours
Generally speaking, customer are creatures of habit; make things easy and convenient for them and they'll come back to you. Conversely, make things difficult, confusing, uncertain or unreliable, and they'll look elsewhere. 
Having people visit your store when you should be open, only to find your doors closed, is likely to have them looking for somewhere more reliable next time. No-one likes standing around waiting for a store to open, and no-one likes having their time wasted by turning up to find everyone's gone home. 
Unless there's a compelling reason - and no, simply being quiet doesn't cut it - make sure you're ready and waiting to serve customers when you say you will.
Nor will not having a trading hours sign on display help. That just creates another sort of uncertainty which won't endear you to customers.

Not calling customers back when we say we will
How many times have you waited for someone to call you back, only to have waited in vain? How has it made you feel? Angry? Unimportant? Helpless? Vowing never to darken their doorstep again? 
We all hate it, yet it continues to happen anyway. So often, those who will complain when on the receiving end will justify it when they're the one failing to make the call. Yes, you might be busy. Yes, you might not have the relevant information to hand. No, this does not make it acceptable. If you tell someone you're going to call them by a certain time, then call them by that time, even if it's to explain why you don't have the final answer or information. Keeping people informed of progress goes a long way to maintaining their goodwill. 

Not automatically providing a discount or offer which we've promoted
If you have a special offer of any sort, be it a gift with purchase, discount on selected products, competition entry or some other form of call to action for customers, make sure all staff know about it and deliver it without prompting.
As a rule of thumb, if you make people ask, you've lost some goodwill. If you make them ask for something which they're entitled to automatically, then you're not only losing goodwill, but you're also risking your reputation for reliability. 

Not putting our customer first
I lose track of the number of times I've seen a business go out with a strong marketing campaign to drive people into their store, only to fail by not backing it up with great - or often even good - customer service.
The act of opening a store and inviting potential customers in to it is making a unspoken promise about service. Fail to deliver on the basics of that promise and it's unlikely that customers will return. The basics aren't complicated - acknowledging customers when they come in, having product knowledge, being open and available to assist, assessing their needs before making recommendations, thanking them for their custom/visit. Much of this is simple courtesy, and it all goes a long way to building goodwill and loyalty.

Some of these promises are clearly stated, such as abiding by trading hours or honouring a commitment to return a call. Others are implicit, though just as much of a promise to your customer. Ultimately,  however, the ability to build and maintain customer goodwill is in your hands.



09 April, 2013

Who's the most important person to your business?

Before you say, "our customers, of course", stop and think - would your customers agree?
If any of the following sound worryingly familiar, it might be time to step back and look at your store with a fresh pair of eyes.

"I hate the music"
I love the music, but not when it's inappropriate or too loud. When it's both, then I feel you clearly hate me and want me never to return.
Too often the choice of music played is down to whoever is nearest the player, which can result in the staff being happy, but not necessarily the customers. 
Consider who your customer is and what's likely to appeal to them or represent your business best. Have a playlist for your store and make sure everyone sticks to it. Try to avoid music which is ubiquitous (there was a time a few years back when the merest hint of Dido as I walked into a store was enough to make me turn around and walk back out again) as well as anything appealing to too narrow an audience. Music should contribute to the atmosphere, not demand your customers' attention. 
A final thing. Beware of lyrical content. I once used a song which had great energy and tone, a song I loved, in a playlist for a workshop. It wasn't until I listened to it afresh that I realised it may not be as appropriate as I had hoped.*

I feel the walls closing in
I find it difficult to walk past kitchenware stores. There, I've said it. I'm the customer that will browse in your store hoping to find something without which their life will be incomplete. 
So why do I now avoid the kitchenware store in my local shopping centre? Let me tell you.
Having established themselves through doing a lot of things right - clean and clear fit out, quality product and strong range - they have now undone all of that work by placing trestle tables containing sale and bargain stock in the entry. Not a problem in and of itself, except that it has resulted in the entrance now being so narrow that entry and browsing can be awkward, the store looks cluttered and untidy and the shelves of full price product at the front of store are difficult to browse. 
A decision which was made to allow for the display and quick sale of extra stock has resulted in an unwelcoming entry and most likely affected sales of full price product from prime retail space.
On the face of it, this was a decision made with convenience, rather than the customer, in mind.

Don't make me have to ask you
A good retailer knows the value of engaging with customers, and will encourage interaction in a number of ways. That said, if your store is poorly laid out, with unclear signage and no thought to merchandising, then you're making it difficult for your customer to find what they're after. 
If you make your customers ask for help, they'll resent it. Not in the "I'm going to put a curse on you" kind of way, but enough to make some of them decide to shop elsewhere next time. Then there are those customers who just won't ask and will go elsewhere instead.
Consider, also, what happens during busy periods when you may not be able to get to all customers in a timely manner. If you're making someone ask, then making them wait to do it, you may as well kiss any return visits from that customer goodbye.

"Computer says no"
I don't care how nice your staff are, if they don't have decent product knowledge, aren't sure of their processes and can't show flexibility or initiative in responding to my requests, they're wasting my time. End of story.
Train them properly, give them the tools to do their job and show them that customer service is your priority. If you're not doing those things, you're not  about the customer.

You're dead to me now...
You've had great service from the sales assistant. They've been pleasant, helpful and knowledgeable; all the things you look for. They take you to the counter, put the sale through, take your money, hand the bag over, then...switch off and go back to what they were doing!
I think of this as the "you're dead to me now" behaviour. Whilst there's a possibility of a sale, you're the focus of attention, but once the transaction is complete, you no longer exist.
Your customer is judging you until they walk out your door. Don't undo all your good work by making them think you're insincere.

What do we take from this?
Your customers should be front of mind with everything you do, from the way you lay out your store to the music you play to the way you behave. Not in some things and not most of the time - in all things and all of the time. 
Maintaining a consistently high standard isn't easy to do, but those retailers who make it their business to ensure their customers feel welcome, happy and valued are those who are best able to weather the tough times.

I'd be interested to hear what you think. How do you show your customers you value them?



*If you're interested, you can check out the song by clicking here. I think you'll like it - just watch where to play it!