RetailBizBlog

I have had a poll on my page for a few days now asking people which level of service they prefer when calling a company. I have also hosted several discussions about the topic. The result was somewhat surprising. The stats (at time of this article) were a lot closer than I expected between waiting to speak with a live person, and using an automated system that has the option to speak with a person. I believe that the automated system is a necessary avenue most companies need to explore during this penny-pinching economy. If it is structured properly, it is quick, convenient, and available whenever I need it! Unfortunately, most are not structured properly. There are pretty much two primary purposes for using this kind of system. 1. Informational/Bill Pay - This option will give the caller such things as; location, directions, business hours, account information, other FAQ's. Most of these are structured in such a way that are quick and efficient for callers to use. 2. Call ...

The most important people in any company that use retail outlets to sell their products are the Store Managers. Every company has a basic job description of what a successful store manager should be capable of. The job description that no company can create is a list of the intangible traits that a store manager should bring to a company. A truly successful store manager recognizes and embraces that they are responsible for the "face" of their company to the public. Unfortunately, it seems that there are way too many store managers that do not understand that point. Store Managers must be constantly setting the bar, and then raising the bar. One area that seems to be easily forgotten, but costs tons of payroll is receiving. Typically the receiving team is very small, and works with little to no supervision. It is a very easy scenario for people to lose their drive and ultimately a huge drop in productivity occurs. It is up to the Store Manager to set that standard, up...

I was forwarded an article about several quotes from Costco Founder and CEO, James Sinegal. Quotations From James Sinegal He mentions several things that I think most retailers should listen to. I particularly like two of the quotes: 1. "I think the biggest single thing that causes difficulty in the business world is the short-term view. We become obsessed with it. But it forces bad decisions" With all the growth that has occurred over the last several years, many retailers got caught up in the short-term, and did not make wise decisions that would protect themselves from the inevitable slow down in the long-term. I think Mr. Sinegal hit the nail right on the head with that one! 2. "This is almost like show business. I mean, every day you're opening up and it's show time." This has actually been a saying I have heard in variations for years. Those who practice it do very well. This translates to everything from the cleanliness and visual standard of th...

As with Whole Foods, Starbucks is another major company that has taken a look at themselves and are offering something new. A Starbucks that is not a "Starbucks"!! NPR reported Saturday, Starbucks Goes Into Stealth Mode . Starbucks, a company that has done pretty much everything it can do, has found a way to continue to grow in their same niche. They looked outside themselves, the ones who commercialized and popularized the industry, to find out what more they could do. They "dropped" their own name, and essentially the brand recognition that they have "taken over the world" to achieve, to offer a "mom-and-pop" feeling coffee house experience. Two more additions to this new venture is the addition of alcoholic beverages and live music. I do admire and even encourage major corporations to take a look at themselves to discover opportunities for growth. However, I do have a criticism on this Starbucks approach. If they identified the late(r...

In a time when customers are demanding value and are really trying to stretch ever dollar to it's limit, some companies are doing their part to help. Whole Foods Markets are giving "value tours" to their customers to show them that even at a store with a pricey reputation, value is within reach. You can read more about their approach in Hawaii's Star Bulletin's: Getting the Whole Picture. I previously discussed the importance of corporate image to consumers. Whole Foods, embraced their reputation as a high-priced grocery retailer. They offer a level of quality and freshness that has raised the bar in the grocery industry. Instead of lowering prices and sacrificing the bottom line to grow their seemingly cult-like following, they took a more pro-active approach by educating their customers on more cost-conscious ways to shop. This is the kind of "outside-the-box" approach that more companies need to explore.

As I was walking the mall this past weekend I noticed a few strange trends. There were a lot of people in the mall, but there were lots of stores without a single customer. I chatted up some of the employees, and consistently received this generic response, "Yeah, it has been kinda slow lately". Then I went into some of the more "crowded" stores, and heard things like,"We are beating last year!", "Back to school seems to be starting early!", and "The mall seems to be picking up.". How can this be? I did notice one common thread that distinguished all of the slow stores from the busy stores. The stores that were slow were messy and dark. There were fingerprints allover the windows, dust-bunnies in every corner (one actually swirled around the table when I picked up a bag), and lights out around the store. If it is so "slow" how is there no time to clean or change lights? Then, to top it off, the employees had this ki...

This is a question I keep hearing as I work on this blog. It seems that no matter where you go, that companies pride themselves on putting the customer first, but that doesn't really seem to be the truth. I have found nightmare stories from telephone customer service operators, to in store employees. But I have also read some amazing stories of how an employee went well beyond their job description to make a customer happy. When I got into retail in the early 90's, customer service was king. Empowerment for employees to that end, was almost unlimited. Recognition for the individuals going above and beyond was common. It was a time when companies realized it was their people and their people's ideas and successes that drove the company's success. Southwest Airlines exploded by taking a radical approach to customer service. At the same time they also took a radical approach in the treatment of their people, doing such things as "costume day". Work was f...

Wow, so this will be my first "look what I found" entry! While surfing the web for some inspiration for my next article(s), I stumbled upon a website called www.customerssuck.com. It is pretty much a site for retail employees to share their "customer nightmare" stories. Anyone who has worked in retail has had their fair share. I remember one guy poured a bag of wet laundry on my cashwrap and demanded reimbursement for all of it, because the shirt from our store (the only item from our store) bled on his clothes and tinted the entire load blue. To take it a step further he brought in the tag that was attached to the shirt detailing the unique dye-process would "run" and to wash with like colors (that was his proof our shirt was the culprit). One of the posts I read described a situation when a customer started pulling on locked doors to gain entry into the store five minutes past closing time. He was very "rude" because his watch told him he...

In my last post, I referred to the customer experience as being a major part of a corporate image. I received a few responses asking me to discuss that a little more. With the rapidly changing economic conditions, retail has had to evolve very quickly. Companies are being forced to reevaluate the way they are doing business, and more importantly, reevaluate the customer experience within their stores. Creativity is necessary to increase consumer spending. Ikea is known for their "maze" of sales floor, that is designed to get you to "imagine" all the possibilities to decorate your entire home and office. They incorporate a powerful combination of creative merchandising, aggressive price point marketing, an easy to find sales staff and consumer psychology. They have built a successful business model entirely centered around the customer experience. From their lay-flat packaging, to their low cost food court, Ikea is the extreme model of the customer experience...

Recently, I have been finding myself getting into discussions about corporate images. It seems that some retailers are "playing it safe" in terms of their image. They are carrying lines that have been consistent sellers. The "Gap" that I remember, was the best place to get basics and to fill the "holes" in my wardrobe...guess what? They are again! Even Abercrombie & Fitch doesn't seem so "scandalous" as they now carry an extensive offering of polos, plaids, and oxford button-downs. According to the NY Times, Eddie Bauer has filed chapter 11, and the investor group that is poised to make the buyout, is the same group that passed on Eddie Bauer in 2003 when they were also in bankruptcy trouble. Eddie Bauer executives at the time had a future vision of Eddie Bauer as a conservative womens retailer. The investment firm felt that was not a smart move considering the foundation and reputation Eddie Bauer had established for over 80 years. Now, ...