Off the Shelf

Delegating Customer Service

Flying this week reminded my how frequently companies delegate customer service activities back to the customer. It's like delegating backwards. Just in the airline industry alone, customers now handle their own baggage (carry on), print our own boarding passes, directly make our own reservations, and bring our own food (which was really never a bad idea). Many retailers have scan machines so customers can check their own prices, many financial institutions have automated services and websites where customers never interact with a human being.

While many of these innovations are good and make things easy, don't you think that many times they also get in the way of helping the company brands succeed? Zappos, for example, has a unique way of giving me a lot to do, but also a way of extending themselves so I don't feel neglected or not able to contact them directly. I think AMEX also strikes a nice balance between "delegating" services but also giving me easy access to someone to whom I can talk when I have a problem or have a question. Apple is also a company to imitate for unbelievably good support and service. For example, I love the chat feature in the store because if I don't need help, I can go about my business, but if I have a question, someone is there, ready for me.

Companies who delegate too much or don't give customers balance between delegation and a real human being lose. 

• They lose the opportunity to talk to customers. This is huge. How do they know what's going on with their product of service if they don't listen and interact with live customers?

• They lose branding opportunities. They are setting their brand up to be defined by the customer as unfriendly, uncaring and rigid.

• They trade efficiency and short-term cost savings for longer term damage. They are measuring results incorrectly and ignoring the long-term opportunity that customer loyalty and trust can bring to any organization.

What do you think? Do you like having these responsibilities delegated back to you? What about your organization, how have you kept in contact with your customers, but also maintained cost efficiency?

Handlebars, Program Code and Motivated Employees

A few weeks ago I had the privilege of visiting Logos Bible Software. We are fortunate to have them as partners with us as they are the backbone of the software portion of our Bible and Reference business. We have over 650 resources in Logos format and their program is simply the best. Bob Pritchett and his team do a phenomenal job for us and hundreds of thousands of happy users.

Several things struck me while we were there. First, they have a tremendous passion for the customer. It became obvious that they want to talk to users, solve any learning concerns and truly serve them.

What also struck me was their commitment to their employees. Being a software company obviously programmers and software development people are the heart beat of the organization. Keeping them motivated and happy is a good thing because it translates to quality software, employee retention and ultimately satisfied customers.

About a year ago, Logos’ IT Manager, Jim Straatman submitted a novel idea. Since Bob is always asking his employees for ways to make Logos a better place to work, Jim suggested a putting a Bike Repair shop in the back of the main developer room. Since so many employees ride their bikes to work (the offices are in Bellingham, WA) Bob agreed.

Logos has about 170 employees and the Bike Shop is open to all of them. They have everything you’d find in a professional bike shop and all you’d ever need to fix a bike. According to Ryan Burns, “If I were to ballpark it, I’d say 40-50 people have used the shop.”

The shop is open all the time, according to Ryan, and employees can stop by whenever they want. He goes on to say, “Obviously working on your bike isn’t ‘work’ so people are encouraged to  use it during breaks and before or after work,”

Logos even has specially designed bike shirts.

Logos employees are very encouraged by their Bike Shop. It seems that even those who are not bikers appreciate it. Ryan adds, “It shows Logos is a company that cares about and listens to employees. Like I said, I don’t bike, but I tell people how cool it is to work for Logos, I inevitably mention that we have a Bike Shop in our office.”

And for those winter months? The Bike Shop becomes a Ski and Snowboard repair shop completely outfitted with a turning stand,  hot wax, P-tex and everything else a person would need to have their equipment in shape before they hit the slopes.

Bob and his team have set a great example that I need to follow.

The Six Rights of Retail

Retailing is one of those oxymoron businesses - it's simple and complex. It's fun and it's hard work, Many successful retailers take great pains to focus on the basics and that strong focus and attainment helps them then develop the more subtle or complex strategies necessary for creating excellent customer experience.

The six rights of retail are extremely basic, yet important concepts for any good retailer to practice:

1. The right product. It starts here. You must have the right product for your store, and your customer. It needs to fit your niche and carry the quality you feel your customers require.
2. The right place. Good product needs to be merchandised correctly. Shopping cannot be hard, it needs to be fun and create a feeling of discovery. Even the best product in the wrong place won't sell.
3. The right time. This not only applies to seasonal offerings but style and trends as well. It's no good to have inventory of heavy coats in August, nor is it right to have too many dial phones in stock. Your store needs to reflect both the calendar season as well as the trend season for that product.
4. The right person. Your product selection needs to reflect your customer. If you are a specialty store, who is your customer? What do they expect from you? Find out and carry products that reflect your customer, not necessarily your personal taste and affinity.
5. The right promotion. Dollars can be so easily wasted on poorly executed promotions. Make sure you have well-planned and executed promotions that are also in line with the products you are featuring.
6. The right price. Not everything needs drastic pricing. You need to focus on the mix of your selection as well as the promotion of price. Too often retailers spend so much time on price they leave precious margin dollars on the table. Your products need to reflect the best price, not necessarily the lowest.

Keep the six rights in mind as you merchandise your store and as you work to attract and keep customers. Execution on these six will help you then spend your time on creating the store your customers will shop - frequently.

Good News for Independent Booksellers

I was talking to our VP of ABA (general market) sales yesterday. He told me that since January independent bookstores in his market are outpacing the large chains like Barnes & Noble and Borders. This is good news for the independents and the communities they support. There are several reasons that come to mind for this shift in sales.

• People are not driving as much so the more localized store makes sense. Perhaps people don't want to spend the extra time and gas to drive to a location when an Independent is handier?
• The Borders Stores are not having a good year and some of their customers are migrating to the Independent/specialty book retailer.
• Local communities and their residents may be fed up with the drain on "community" cash by the big boxes who transfer money out of local banks to corporate headquarters. So, they shop elsewhere hoping to keep the money in their local city and have it spent in their local area.
• Book readers may like the better customer service or specific product selection offered by a local, Independent retailer.

Whatever the reason (and please add your own comments and thoughts) the facts are clear - teh general market, Independent/Specialty book stores are seeing an increase in sales.

Some weeks ago I spoke at the BEA convention and met several Independent Bookstore owners who are having banner years. After talking with them, I realized that they were solid retailers who had found a customer-driven niche to serve. They realized they were Specialty stores and offered products, promotions and service that matched or exceeded customer expectations for that type of store.

Technorati Tags: Books, Customer Service, Experience, Retail

Will Somebody Answer the Phone?

Unfortunately my Father is having some medical problems. I was talking to my Mother yesterday and she was upset. "Why can't anybody answer the phone?" She was reacting to a Doctor's office that had an automatic phone system and venting her frustration that she could never get a live person. Here she is waiting for critical data and the only Doctor she can get is Dr. Sbaitso.

I think she's right. Why would an office that deals daily with either nervous patients or anxious loved ones trust their communication system to a emotionless machine?

Some of you may remember "Megatrends: Ten New Directions Transforming Our Lives" (John Naisbitt). Written in the 1980's Naisbitt predicted certain future trends, one of which was "high tech/high touch" where he explained that the more technology is added the more we also need an accompanying amount of "touch".

Many retailers, especially specialty retailers, have forgotten the high touch. While one store shouts from 25 feet away, "Welcome to ______ ", another pays no attention to customers at all. It's too bad. Most shoppers don't expect discount store or discount club levels of personal service (touch) when shopping in a specialty store.

So, how does your business, church or ministry treat its customers when making initial contact? Do you relegate important information to the answering machine? Or do you have a way for people, like my Mother, to interact with someone who'll care for their needs? Do you shout your welcome, or genuinely enjoy inviting "guests" into your store or business?

Technorati Tags: Customer Service, Leadership, Management, Retail

Women are Job #1

David Bohan, founder of BOHAN Advertising/Marketing here in Nashville recently shared some interesting facts about the "power of the purse" in the Tennessean:

Did you know:

• Women make more than 80% of all consumer buying decisions -- and not just personal, home or family-centered purchases.
• Half of all corporate managers and professional staffers are women and 58% of all purchasing agents are women, as are more than half of all wholesale and retail buyers.
• In the past 15 years, 70% of all small business start-ups have been led by women.
• 75% of all travel decisions are made by women
• Nine out of ten women have either sole or joint responsibility for all household financial decisions
• 2/3's of all wine and 40% of all beer is bought by women

WOW!

If you are in the product or retail business and you're not taking these numbers seriously you may want to rethink your strategy. We all need to take the "power of the purse" very seriously.

One person I look to for help is Michele Miller. Her blog is tremendous and I'm so excited that her new book,

"The Soccer Mom Myth" (Michele Miller, Holly Buchanan)

is coming to a store near you (March 10). Michele is sending me a review copy so I can review the book here soon, but knowing Michele, I'm sure it will be a helpful tool for all of us to understand that in marketing and developing products, women are job #1.

Technorati Tags: Customer Service, Merchandising, Product Development, Marketing, Retail

Enjoying Retail with Over-the-Top Service

This past week I found another retail internet site that blew me away. I needed a pair of shoes so I shopped at zappos.com for the first time. My wife discovered this site first and recommended it to me (for any retailer there's nothing like a referral from a trusted source) and so I tried it. I have to tell you, it was great.

Why?

Well, I have feet that are not easy to fit. They are narrow to begin with and one foot is about a half size larger than the other one. So when you have to buy shoes in pairs, this last point can be a real problem.

What makes Zappos unique is how easy they make it. I bought a pair, they came next day (I actually ordered them at 8:00 PM and I had them the next evening) and they didn't fit. NO problem. Zappos has a quick and easy way for returns, in fact the language on their website begs for returns from unhappy customers. So, since I actually liked the shoes I ordered another pair (which came the next day) and returned the ones that did not fit. To my surprise and delight I had a credit to my account - you guessed it -- the next day. Wow.

So if you are a more traditional retailer reading this, don't lose heart - learn from it. Retailers who attract attention don't have to be on line, they just have to give fantastic service and get rid of stupid policies that irritate customers. Welcome people, like Zappos to enjoy what you have and, if it's not right, don't make them feel like idiots when they return it. Don't post silly signs that turn people off (line one store I visited that had three signs on the POS terminals that said "No Cash Refunds"). Treat customers like you'd treat people coming to your home for a joyous occasion. Serve them, laugh with them, greet them and make them feel comfortable and welcomed back.

Technorati Tags: Customer Service, Experience, Leadership, Management, Retail

Creating Experience When You are a Small(er) Company

I want you to know - I've heard you.

Several people emailed me that my recent article on creating unforgettable experience only focused on the big players. The common email thread? "Sure Apple can do it, they have all kinds of money. How can I do it?"

The answer is, "YOU CAN".

It starts with your vision and passion for your customer. As an owner or manager it's vitally important for your people to hear you and see you love customers. If you are stuck in the back -- get out front. Your people need to see your heart for customers in action. It's contagious.

Second, great experience comes with a focus. I don't care what your focus is, but get focused on something so customers see you (and your people) as experts in your field. If you sell Christian books, become an expert on Bibles. If you sell camping gear, become an expert on a single phase of camping. Whatever it is, get focused so people come to your store because you know more than anybody.

Third, train your people to love customers and passionately serve them. For a starter, see my first paragraph in this list. After that, you cannot over train. Take away foolish polices that punish the 2% and put in place simple policies and let your employees serve people. A small investment in this (and it must be ongoing) will pay tremendous dividends and give customers a reason to return.

Fourth, be in stock. Nothing hurts retail experience more than out of stocks. Put solid inventory practices in place so you don't burden cash flow and commit to be in stock at all times of the things that are core to your business. You can make money and serve customers at the same time.

Lastly (at least for this post), is to learn how to say "thank you" to your customers. I know several retailers who call customers every day and thank them for a recent purchase. Want to stand out from the crowd? Take the time to thank customers in a personal way for their business.

Sure, coffee bars are nice, but in reality you don't need a coffee bar to create experience. You simply need to commit yourself and your people to loving customers and meeting their needs. Would you want people whom you love to come to a dark, messy, unorganized, unfriendly place? No, you wouldn't. Not if you are trying to create a great shopping experience.

You don't need to be one of the Fortune 500 players to create experience. It's simple -- love your customers and meet their needs and they will not only shop today, they'll continue shopping tomorrow.

Technorati Tags: Customer Service, Management, Experience, Retail

Christmas Retail: Boom or Bust

I guess it depends on what you read, what you view and with whom you talk. Most experts feel this Christmas retail season was not up to expectations and they may be right. It's always an odd year when Thanksgiving is early and people "wait" for Christmas. So, the crush of "oh my gosh, I need to shop" happened and didn't happen (again depending on where you get your news). For me, I come at things a bit differently and have a different perspective.

Here goes -- in my humble opinion, excellent retailers had a great Christmas. Retailers who were just doing business as usual had a bad one. Unfortunately, there are more mediocre to lousy retailers than there are good ones.

Let me illustrate my point.

1. On-line retailers seemed to have a super Christmas. I've read some reports that give double-digit growth. The BBC reported that there was a 50% increase in on-line sales in England. Let's face it, it's so convenient to buy on-line, there's selection, fast shipping and very few hassles if you choose your retailers wisely.
2. Specialty stores carried the day. I visited several specialty stores before and after Christmas and business was booming. Our local Apple store was packed. in Golf Galaxy I had to wait in line to get a question answered (when I bought my new/Christmas putter). I've blogged several times about Chico's and they remain a favorite and must of had a booming Christmas (at least two local stores I visited told me they were seeing tremendous sales and up from last year). Another specialty store, Jared Jewelry told me that they had a record November and were on track for similar results in December. So big wins for specialty stores (and if you are a specialty retailer and had a weak Christmas selling season maybe it's time to learn from some of these stores and copy their success formula).
3. Gift Cards. Everywhere I turn people have gift cards. They have become one of the easiest and best gifts for most shoppers. Gift card sales are way up which accounts, in part, for merchandise sales being down. Look for the next few months and if you are a retailer, make sure you stay in stock of core items. Those gift-card-totiing customers will want to redeem them and not wait for you to get back in stock.
4. Department stores were down to flat. Certain items (higher end items at Nordstrom's for example) did well, but overall the "look alike" department stores were flat to down. They need to shake things up.

So, I think this retail Christmas season was good for those who gave great service, had stores that offered not just fair prices (it's not always about low prices), but also gave the customer tremendous experience and product selection.

Technorati Tags: Apple, Customer Service, Merchandising, Retail

Mid-Size Retail in Crisis

in the aftermath of "Black Friday" (or the Day after Thanksgiving), I read several articles about American shopping habits. Most of the articles I read indicated that there was a schism happening in retail. They told us that the more upscale retailers were doing well as were the discount stores like Target and Wal-Mart. In their view the American retail scene was duplicating society as a whole and the middle was disappearing.

I don't think I totally agree with this thinking.

What's disappearing, in my mind, is a compelling reason to shop in the middle.

A few years ago I attended the annual National Retail Federation convention. One of the best panel discussions involved the the respective Chairmen of Ralph Lauren and Federated Department Stores. At one point Lauren's Chairman said to the Federated Chairman, "No wonder you sales are down, all your stores look the same." I think he was right.

In too many cases middle-level retailers have forgotten the importance of the shopping experience -- they all look the same. Why are Apple Stores and Chicos always crowded? They care for the customer, they have quality merchandise, and the stores are packed. But many middle-level stores care, and have quality, don't they? Of course they do, but they leave no room for customer experience. They have no uniqueness -- just racks of the same merchandise and virtually the same floor plan and no level of customer experience. What's exciting about that?

Customers know what they want. If they want an "experience" of low price, they want Wal-Mart or Target, if it's an overall sense of experience (which often doesn't include pricing), they they are turning away in droves from the cookie-cutter middle-level stores and stretching to someplace unique, different, fun and, well, experiential.

Technorati Tags: Customer Service, Leadership, Management, Merchandising, Retail