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Author: Phil Wrzesinski

Phil Wrzesinski is the National Sales Manager of HABA USA toy company, a Former Top-Level, Award-Winning Retailer, a Thought-Provoking Speaker, a Prolific Author, a 10-Handicap Golfer, an Entertaining Singer/Songwriter, and a Klutz Kid who enjoys anything to do with the water (including drinking it fermented with hops and barley), anything to do with helping local independent businesses thrive, and anything that puts a smile on peoples' faces.

Are Background Checks Necessary?

(Note: the last three posts talked about making a character trait list, posting better job descriptions and help wanted ads, and crafting insightful interview questions. You’ve done your interviews. Now what?)

I got a phone call. “I’m doing a background check and one of our applicants listed you as a former employer. Can you verify when this employee worked for you?”

I have made this same phone call. As employers we have rules of what we can and cannot say during one of these phone calls. Each state has its own rules. A former employer can confirm dates of employment, roles/titles, and usually answer one simple question … “Is this employee eligible for rehire?” 

It kinda sucks when you’re checking someone’s background with these limitations. If they were honest about when they worked and what they did, and they are still eligible for rehire, you learn very little. In fact, most background checks are done not to confirm a potential hire but to derail that job offer. Give me one reason to say No.

Even though they rarely ever confirm a good hire, background checks are still necessary. It is better to have exhausted all the reasons to say No. Background checks still tell you something. They tell you if someone is honest. They tell you if someone has neglected to tell you everything about themselves.

Along with calling former employers I also check the court sites. One applicant had three six-month gaps in his employment record. He told me in the interview he was working for a friend doing odd jobs. His friend must have worked at the county jail each of those stints. Another applicant was being considered for a warehouse and delivery position until the list of speeding tickets and two reckless driver tickets appeared.

Sometimes, however, a background check can surprise you. I called one former employer who said, “Wait, are you telling me she’s looking for a job? I need to call her. I’d love to have her back!”

One time when someone called me about one of my former employees the caller asked, “Is there anything else you can tell us?” He knew the answer was likely No—especially if you call a big chain store. My answer surprised him …

“If you don’t hire her, you will have made the biggest mistake in your HR life.”

Sure, seasonal retail help is one of the lowest rungs on the employment ladder. These aren’t confirmation hearings for lifetime positions so you likely won’t need the Senate or FBI. But your store deserves to have the very best. Almost all my full-time employees started as seasonal staff. If you do the proper job identifying the right team members at this stage, you’ll create the team and culture you want for the long run in no time at all.

WHEN TO CHECK THEIR BACKGROUNDS

Some employers check backgrounds before doing interviews. For big positions with tons of qualified applicants, I can understand vetting before interviewing. If you have more good applicants than you have time to interview them all, do a quick search of your District Court, State Felony, and Sex Offender websites. If that doesn’t eliminate anyone, then go to social media and see what they are posting on FB or Instagram. Chances are good that might knock out one or two people.

I preferred to check backgrounds after the interview. I only checked on the people I liked, looking for some reason to sway me off hiring that person. If they didn’t show the character traits I wanted through the application and interview process, I wasn’t wasting my time checking their backgrounds.

Although I have been used as a personal reference several times (and written several letters of recommendation), in my early days of hiring I rarely ever checked those references. I only called former employers who weren’t chain stores. I also made a few bad hires in my day and twice heard from someone who had been listed as a personal reference that told me they wouldn’t have recommended that person to work for me. I learned that lesson the hard way.

References are mainly for filling in holes in the details and finding reasons to say no. It is worth checking them. Otherwise Buyer Beware.

-Phil Wrzesinski
www.PhilsForum.com

PS Check with your state’s hiring laws to see what you can and can’t ask in a reference check (and also to know what you can and can’t answer when someone calls you). Bookmark your local District Court site, your state’s felony site, and your state/local sex offender registry sites. Your customers deserve that from you.

PPS The former employee of mine got the job. She told me her boss said it was my comment that won him over. She’s been there 12 years now. I hired the employee whose former employer wanted her back. That was all the reference I needed.

Using Character Traits to Write a Better Job Description and Help Wanted Ad

I jumped the gun yesterday. I started talking to you about interview questions before we even discussed how to get the right applicants through your door in the first place. My bad.

Did you know you can “pre-qualify” your applicants? No, I don’t mean by writing, “Only people with [ __________ ] need apply.” That’s lazy and useless. You can pre-qualify your applicants by writing a better job description and a better help-wanted ad. That traits list we created helps.

JOB DESCRIPTION

Most job descriptions follow the same pattern. First a bullet list of duties and responsibilities. Second a bullet list of qualifications. It is that second list that pre-qualifies applicants. Most companies get that part wrong by listing all the required schooling and experience, without talking about whether you even have the right traits for the job.

A typical list might include:

  • [Level of schooling required]
  • [Minimum years experience doing the actual job as listed in the title]
  • [Minimum years experience doing the tasks for the job]

Just because someone did the job doesn’t mean they were good at it or had the right traits to do it well.

Instead you should be listing the traits of the person you want to hire. Here is a list I helped a fellow store owner create as the qualifications for a manager position:

The Store Manager must be someone who:

  • Can manage and motivate employees
  • Can build and foster teamwork and collaboration
  • Can stay calm and level-headed in tense and hectic situations
  • Can juggle multiple tasks during the course of the day
  • Can keep a high level of energy throughout a long day, a long week, and a long season
  • Can listen carefully and learn quickly
  • Loves to help other people grow
  • Loves to be part of the community
  • Loves to encourage and foster creativity in the team
  • Loves to play and have fun

Notice all those “can” statements? Those are the traits for the job. All of those “love” statements are the Core Values of the company. Someone who has these traits will instantly see themselves in that job description. You also have your basis for your “Tell me …” questions.

“Tell me about a time you had to motivate someone to do something they didn’t want to do. How did you get him to do it? What was the result?”

HELP WANTED AD

Your ad is the other place to really highlight the traits you want to hire. Once again, most help wanted ads fail to pre-qualify because they talk about the job and the duties, not the character traits. But what if you wrote an ad that looked more like this?

“Are you a team player looking for the chance to take that next step? Do you have the skills to help other people grow into their best? Do you get fired up at the chance to lead a high-performing team that gets to solve problems and bring joy to others?

You might be the perfect candidate for GTS.

GTS is looking for innovative people with true leadership skills to join us to help create and manage the kind of team everyone wants to be on, the kind of team that has fun working together, has fun being a part of our wonderful communities, and has fun finding new and better ways to serve our customers.

Yes, you will work weekends from time to time. Those days are the most fun.”

Notice how we incorporated all the can and love statements from the above description into one ad? We posted this in November for a toy store. (Yeah, November is not the best time to be hiring new managers, but such was the case.) Not only was this store owner able to find new managers and assistant managers for all three of her locations instantly, all were a perfect fit.

The first year I switched to this style of help-wanted advertising at Toy House I noticed two things. First, I had fewer overall applications. Only the people who saw themselves in the ad applied. Second, I had far more people worthy of an interview. The pre-qualifying with character traits gave me a better pool of applicants than before and made the interviewing process even easier (if slightly longer).

It all starts with the character traits you identify for each job. When you get a good list and use it to describe the job and the applicant you get better applicants from which to choose.

-Phil Wrzesinski
www.PhilsForum.com

PS We used Indeed.com for the store manager posting above. We also used Indeed for seasonal positions but she got several applicants from social media and signs in her store.

PPS Since I closed Toy House I put my hat into the ring for job searches on LinkedIn. Several times I have seen jobs I know I could do incredibly well, but the first two qualifications were often “Must have a 4-year Marketing Degree” and “Must have 3-5 years working as a Marketing Manager or similar title.” I had the traits (and even the experience) to do well in several of those jobs, but they missed out on me even applying because I didn’t have the degree or the title. I would hate for you to miss out on some qualified people for the same reasons.

PPPS Here is a job description using the traits from yesterday and my Core Values of Fun, Helpful, Education, and Nostalgia

  • Engaging – Can meet and greet people with ease
  • Friendly – Can build meaningful relationships with others
  • Caring – Can show empathy and caring for others
  • Creative – Can find creative solutions to interesting problems
  • Determined – Can find ways around objections and stick to a problem until it is solved
  • Fun – Loves to have fun on the job
  • Helpful – Loves to help others
  • Education – Loves to learn new things
  • Nostalgic – Loves to celebrate births, birthdays, and Christmas

Are you a fun-loving person who loves to meet new people? Do you care deeply for others and just want to help? Do you have the creativity and determination to find solutions when none seem possible? Are you the kind of person who celebrates holidays with a passion. Do you love to learn something new every day? You might be the perfect candidate to work for Toy House.

How Your Traits List Affects Your Hiring

It takes a lot of guts to tell Harvard you think they are wrong.

But that’s exactly what I was doing through the aughts as I was developing my own hiring philosophy. In the late 90’s I read the Harvard Business Essentials book Hiring and Keeping the Best People. Like all the other business books on hiring, it said the most important thing to hire for was experience.

Except I had one problem with that statement …

You can have decades of experience in retail sales and still suck at it.

Hiring and the Potter's Wheel Book Cover
Since I didn’t like the books I was reading on hiring, I wrote my own!

I knew salespeople in retail. I had hired people with several years of “experience.” I had worked with retail salespeople at the stores I visited frequently. Some were good. Some still sucked.

The reason they sucked is because so few retailers have any type of formal training or continuing education for their team. Experience alone does not teach you what you need to be successful as a retail salesperson. College doesn’t prepare you for retail sales either.

The skills you need to be successful at retail sales are those traits we identified yesterday.

  • Engaging
  • Friendly
  • Caring
  • Knowledgeable
  • Creative
  • Problem-Solver
  • Determined

Two of those traits are teachable (Knowledge and Problem-Solving). The other five, however, are not. The first key to being successful at retail is what your new hires already bring to the table in the way of the non-teachable traits.

The fastest way to raise the bar of customer service in your store is to fire every salesperson who isn’t Engaging, Friendly, Caring, Creative, and Determined, and start over. Add your Core Values to that list and go hire people who have those non-teachable traits. You’ll have the foundation for a rock star staff in no time.

IDENTIFYING THE TRAITS

How do you identify those non-teachable traits? Through the interview process. Let’s call it a “process” rather than just an interview because it is far more than just simple questions and answers.

I always went up front to greet applicants and walk them back to my office. The walk back gave me an early glimpse into how friendly and engaging they might be. Sure, many were nervous, but just the act of walking and talking not only calmed their nerves—which made the rest of the interview go better—and it also got me the chance to view them in a less formal setting. If possible I would introduce them to staff along the way and see how they interacted.

In the interview I asked questions only about what they did, not what they thought or believed. My favorite questions started with …

“Tell me about a time when …”

  • Tell me about a time when you were the most creative on the job. What did you do? How was it received?
  • Tell me about a time when you had to go above and beyond what was expected of you? What did you do?
  • Tell me about a time when you made friends with a customer. How did it happen? Are you still friends now?

When you ask questions about actual events in their life you get more authentic answers, not something they think you want to hear. You also gain better insight. You learn what they consider to be “above and beyond” or “creative” on the job.

When I switched my hiring process over to focusing on non-teachable traits instead of experience and actions instead of beliefs, I found the results changed dramatically for the better. None of that was in the Harvard Business Essentials book.

Experience plays a role only when that experience is “better” than the experience you are offering. Then again, if you are running your business correctly, there won’t be anyone else offering a better experience, better training, or better work environment. So don’t worry about experience. Hire for character traits and fit (Core Values). You can teach them the rest.

Sorry, Harvard, but from my experience and the experience of so many other retailers, you’re wrong.

-Phil Wrzesinski
www.PhilsForum.com

PS You’ll still need to have Knowledgeable people who know how to solve your customers’ problems. Those are the teachable traits. Knowledge is simply learning all the features and benefits of the products you sell (as well as the products your competitors sell). Problem-solving is simply the process of turning a customer into a relationship into a sale into an evangelist for your store (The Ultimate Selling Workshop). 

PPS It takes a lot of guts to write your own book on hiring when it flies directly in the face of all the other hiring books out there. I did that back in 2008 and it got rave reviews. I still have a few copies left if you’d like to read it. (Sorry, only hardcover, no electronic versions.)

The Pitfall of Using Personality Tests for Hiring Purposes

I’ve taken several versions of the Myers-Briggs test and so far they all have resulted in ENFP (The Campaigner). But my N score is fairly close to the S and my F is barely across the line from T. There are definitely moments in my life when I am more of an ESFP (The Entertainer), especially when I’m playing guitar at Poison Frog Brewery or standing on stage leading a workshop or presentation. In conversations, especially debates, my ENTP (The Debater) personality kicks in and I gladly take on the role of devil’s advocate. (Not surprisingly, the ESTP personality is called The Entrepreneur. Go figure.)

Now you know why I like to wear a cape!

I’ve also taken the Enneagram Personality tests. I have always scored as #7 The Enthusiast, but I share some tendencies of #2 The Helper and #3 The Achiever.

The point I want to make is that these personality tests are fun, fascinating, and insightful, but dangerous when you use them to pigeonhole or label someone. For instance, while reading this description of a #7 The Enthusiast, it says that one of my weaknesses is my ability to stay focused. An employer might read that in the description and immediately assign that label to me. Yet most of my bosses throughout my life have talked about my ability to stay focused on the task at hand as one of my overall strengths.

Black Friday is only 45 days away. You’re in the process of hiring and training your seasonal staff. You’re looking for anything to speed up the process and help you find good people.

I want to implore you not to use the personality tests to hire people.

No one can be truly described by these tests in a perfect way, yet as a shortcut we often use the labels and descriptions to pigeonhole people and assign them characteristics they don’t have. The other downside is that there is no single personality type in these tests that fits perfectly to the characteristics you need for the job for which you’re hiring.

THE BETTER APPROACH

Rather than using shortcuts, the best way to find the perfect people for your team is to create your own “personality profiles.” Identify the most important traits to describe the perfect person for each position. For instance, if you are looking for a Salesperson, you might want someone who is:

  • Engaging
  • Friendly
  • Caring
  • Knowledgeable

If the job requires them to find unique solutions to interesting problems, you might also choose:

  • Creative
  • Intuitive
  • Problem-solver

If you sell items that require a lengthy sales process you might also add:

  • Patient
  • Determined

Then list your Core Values. These also play a role in finding the right people for your team.

Get your list together. The more clearly you identify the person you want to hire before the hiring process, the better you will recognize him or her when you start that process.

Tomorrow I’ll show you what to do with that list and how to attract a better group of applicants.

-Phil Wrzesinski
www.PhilsForum.com

PS I asked my salespeople to play many roles including stocking shelves, answering phones, giftwrapping packages, and running the cash registers. My list included:

  • Engaging
  • Friendly
  • Fun-Loving (core value)
  • Helpful (core value)
  • Creative
  • Desire to Learn (core value)
  • Decent Math Skills
  • Nostalgic (core value)

Notice how I left off Knowledgeable. I’ll explain why tomorrow.

PPS Personality tests can play a role with your team, but only after the hiring is done. If you have a full understanding of the personality test shortfalls and limitations, and are willing to use them only as a guide rather than a definitive description, you can understand people’s tendencies and preferences better, which helps you position them and motivate them for better results.

Why Signs Increase Sales

Whether you agree with them or not, I have found a lot of value in personality tests such as Myers-Briggs. They have helped me understand my own choices in life and also helped me understand why we don’t all see eye-to-eye on everything. It also helps that I had an expert on these types of tests explain to me exactly what they show and their shortcomings.

One thing he taught me was a new definition and understanding of the terms. For instance, I always believed Extrovert meant outgoing and Introvert meant shy. They don’t.

Extrovert and Introvert are just two different ways we energize ourselves and recharge our battery. They have nothing to do with shyness. Extroverts (like me) get our energy from interacting with others. We seek out crowds, groups, hanging with friends, because it picks us up. Introverts, on the other hand, get their energy from being alone. They can be every bit as engaging and fun-loving and outgoing as anyone else, but that exhausts their energy. They need alone-time to recharge their batteries.

Introverts aren’t shy, they are just cautious with whom they will expend their energy.

Before I learned this I would have been surprised to find out that, like the population as a whole, half of my staff identified as Introverts. This helped me understand why certain people liked solitary jobs more than others.

I also learned why signs are such an important element of your merchandising displays.

Great use of signs in a Game Dept

SIGNS INCREASE SALES

Rick Segel told a group of baby store owners once that signs increase sales by 43%. He never told us where that statistic came from or why, but he encouraged us to put up more signs on our displays.

Now, with my new understanding of Introverts, I started to see why. Introverts would rather read a sign or read the side of the box to get basic info than spend their energy interacting with a salesperson. It isn’t that they won’t interact, but they want to know as much as possible before asking their questions. They want to formulate the right question so that they don’t have to ask too many questions.

There is another group of shoppers who also prefer signs over salespeople. I belong to that group. Men.

Men communicate differently than women. Men speak vertically. Did what I say make you think higher of me or lower of me? That’s the reason why we won’t stop to ask for directions. We don’t want to admit we don’t know. That is also why we don’t actively seek out a salesperson unless we know exactly the item we want.

If we’re looking for the Makita XT269M 18V Cordless Drill, that’s one thing. But if we’re just going in to look at cordless drills, not knowing exactly which one we want, we’re not looking for a salesperson because we don’t want to be asked a question we don’t know or show off our total lack of knowledge on the subject.

Men want signs to educate us before we have to interact with someone so that we don’t look foolish or stupid.

I’m an Extroverted Man who is not afraid to admit when I don’t know something. Yet, I get this mentality fully. I can see how signs can make a difference.

With most of the men and most of the Introverts preferring signs before salespeople, now Rick’s 43% starts to make sense. Armed with that knowledge the most important elements of a good sign are:

  • Answers to the most frequently asked questions about this item
  • Benefits of owning this item
  • Price

Want to create a sign that sells? Ask you staff what are the two most common questions asked about the product and what are the two most beneficial reasons for owning the product. Put those answers on your sign and you’ll see your sales rise with the sign.

-Phil Wrzesinski
www.PhilsForum.com

PS Before you rip me about how biased, inaccurate, wrong, or even dangerous these personality tests are, understand that I am not using them to label people but to give you some insight into differing human behavior. Introvert and Extrovert are tendencies and preferences. In reality the majority of us are often a little of both with a tendency to lean one way or the other. Likewise, not all men are afraid to ask directions. These generalizations about our tendencies and preferences, however, give you an understanding how to adjust your business in a way that best suits your customers.

PPS My free eBook Merchandising Made Easy (pdf download) is on the Free Resources Page under the heading “Improve Your Money” because it is part of Inventory Management, but it fits equally well with Customer Service and your customer’s shopping experience. Think of Merchandising as a tool you have that sets you apart from your competitors. It is one of your competitive advantages over the Internet.

Building a Browsing Store

Amazon wasn’t built for browsing. Oh sure, they have a fully-functional search engine, one of the most heavily used, but most people go there only when they know or have a darn good idea what they want.

According to a study done late last year, Amazon was the top place people searched when they knew what they wanted, but other search engines such as Google were tops when people didn’t know what they wanted, when they were browsing.

Amazon wasn’t built for browsing. But the bigger question is … are you? This is one area where you can kick Amazon’s virtual ass. Are you maximizing this advantage?

The best displays tell a story.

Browsing is a visual game of Capture-the-Eye. 

When a customer walks through your door, what catches her eye? Where does she look? Do you control that or does she? Do you give her a place to look or not?

Think about your grocery store. When you walk in, what is the first thing you see? Produce! What is the most visually compelling item in a grocery store? Produce! Coincidence? I think not.

When a customer walks through your door her eye will be drawn to a focal point. Where that eye goes is dependent on three things:

  • The geometry of the store
  • The angle at which she enters
  • What you give her to see

THE PATH

Walk into your store and see where, based on the geometry and angle, your eye is naturally drawn. Do you have something compelling to see there? That is your Spotlight Spot. Put something cool, profitable, new, and visually compelling there.

Walk over to that spot and look around again. Where does the eye travel? Better yet, where do you want it (and her) to travel? Make sure all those options are easily visible from this location.

This is how you create a shopping path through your store, one visual display at a time. If you have a whimsical, boutique store layout, you can lead customers through your store one display at a time and make sure they see exactly what you want them to see.

If you have long aisles like a grocery store, the aisles themselves dictate some of your traffic. Your endcaps of each aisle become your most obvious locations for compelling visual displays.

But while great endcaps can draw customers and sell a lot of merchandise, they don’t get customers to go down your aisles. You draw a customer to each aisle by how you merchandise the first four feet of that aisle. The first four feet are what she can see from the main aisle. If it doesn’t catch her eye, she walks on by.

Once you get her to the aisle, you need something in the middle of the aisle that draws her gaze. If the shelves are all the same level all the way through, she’ll take a look, feel like she’s seen the whole aisle and walk on. You have to break the lines in the middle to get her attention.

(Note: you should try to keep the shelves the same level all the way to the visual break in the middle. If the shelves are constantly changing height every four feet then the aisle is a hot mess that won’t get people browsing, either. If they are the same level, they draw the eye down to the visual break in the middle.)

Merchandising is a game designed to encourage browsing and discovery. It is a game designed to control traffic flow and guide customers through your store. It is a way to put the products in front of your customers you want them to find.

To paraphrase Mark Twain …

Those who don’t merchandise their stores consciously have no advantage over those who can’t merchandise.

CHANGE IT UP

One question often asked about merchandising is how often to change up the displays. That answer depends on several issues. You should change your displays for any of these reasons:

  • The seasons change
  • The buying cycle changes
  • You have something newer to show off
  • You don’t have enough product to fully fill the display
  • Your product mix in your store is constantly changing

People will still come in asking for certain products or Brands. If you have a major draw, put that Brand in the back of the store to draw people in deeper. Then build visual displays to lead the customer back to the front of the store.

Build your store for browsing. Guide your customers through your merchandising to the products you want them to buy. Play the Capture-the-Eye game and you’ll capture her dollars, too.

-Phil Wrzesinski
www.PhilsForum.com

PS When you enter your store to see where your eye is drawn, also ask yourself this question … “How far into the store can I see?” The deeper the better. If you don’t have anything visual to draw the eye to your back wall, find something. The deeper people can see, the farther they are drawn in. That’s the other reason produce is always near the front of a grocery store. Not only is it visually compelling, you can look over it to see more deeply into the store.

PPS Not surprisingly, a website design is similar to the merchandising game. Each page needs to be visually compelling and lead you directly to the next action/page/display. If you have too much on the page, drawing the eyes all over, your web page is a hot mess.

 

Solving the Merchandising Equation

My dad had a super power. It was merchandising. He could take 400 square feet of product and fit it into 280 square feet of space with room left over. And it would look amazingly good! I think he would be a master at Tetris if he ever gets a handle on using a computer or video game console.

He didn’t need a plan-o-gram. It wouldn’t have worked in a store like ours anyway. The stock was always changing and always in need of rearranging. He could just look at the boxes, visualize it, and make it work.

I used to always say, “My dad is spatial.”

The Groovy Girl aisle

The challenge to our merchandising was our long aisles of shelves. We were closer to a grocery store in design than a boutique store. But unlike a grocery store where you might start at one end and snake your way up and down each aisle until your basket was full and your list complete, in our store we had to create visual pictures to draw people into each aisle.

I likened merchandising to a trying to solve a complex equation with several variables. We were trying to accomplish all of these goals at once with each aisle:

  • Organize everything by Category
  • Organize everything by Brand
  • Organize everything by size and color
  • Organize everything by price
  • Eliminate any wasted space or gaps between products
  • Make the first four feet of an aisle visually compelling and inviting
  • Make sure the bottom shelf products were visible and easy to read
  • Put the most profitable items at eye-level
  • Put some kind of visual break in the middle of the aisle to draw you into the aisle (either through color or shelf positions)

My dad could do all those things instinctively. I had to teach myself this skill through trial and error, through understanding why each of those bullet points was important so that when compromises needed to be made, I knew where to make them.

Morris Hite taught me something that always helped.

“Advertising moves people toward goods. Merchandising moves goods toward people.”

First and foremost your merchandising needs to be eye-catching.

You need to get the customer interested in wanting to see more. You need displays that “pop” and draw the eyes their way. Because of the design of our store with our long aisles, I focused on the first four feet of an aisle (the only part you can see while walking down a main aisle) and the visual break in the center. The rest fell into place after that.

Endcaps, tables, and free-standing displays are a whole different set of challenges. Along with being visually compelling and neatly organized, these need to tell a story. It takes a different set of skills and talents to make powerful displays that tell a story.

I never acquired that skill. I was more in the category of, “I’ll know it when I see it.” Fortunately I had some people on my team with a better eye than mine. I turned them loose on endcaps and free-standing displays.

Not everyone on your team will be skilled at merchandising. Some can learn. Others won’t. Cultivate the good ones, the ones with an eye for design and storytelling. Turn them loose on your store.

For everyone else, teach them to Stock, Straighten, and Dust.

  • Stock: pull all items from backstock out to the floor and make sure there is an ample amount of each on display.
  • Straighten: put items back where they belong and pull them to the front edge of the shelf
  • Dust: (yeah, this needs no explanation)

While bargain hunters (transactional customers) are willing to dig through heaping messes of products to find the best deals, your Relational Customers will lose trust if your store is a hot mess. You’ll lose sales when your customers (or even your sales staff) cannot easily find what they need.

There is an art to properly merchandising your store. There is also a science. Paco Underhill, in his book Why We Buy, outlines the science quite clearly. I read that book six times in the year I spent working on plans to completely remodel the store. It is worth reading (again).

By the way, normally I start a topic by discussing the “why.” Today I started with the “what.” Tomorrow I’ll tell you why those first four feet and the visual break in the center are so critical. Stay tuned.

-Phil Wrzesinski
www.PhilsForum.com

PS I hate stores that are a hot mess. I won’t go in them. My mom is the same way. She gets physically ill in messy stores and won’t go back no matter how good the deal. But we both love stores where the merchandising style could be called “whimsy.” Surprise and delight us. You’ll win. (By the way, we aren’t alone. There are many shoppers exactly like us.)

PPS Yes, there is a FREE eBook on the Free Resources page called Merchandising Made Easy. You should check it out.

By Brand or By Category?

In the early stages of my running the baby department at Toy House one of our staple companies for car seats and strollers was Graco. They had several nice car seat and stroller combos in great fabrics. I even had a customer drive from Canada one night because we were the closest store to have the Graco stroller in the fabric pattern his wife desired.

Graco also had playpens and highchairs they sold in the matching patterns. My Graco sales rep would beg and plead with me to display the entire collection together. “You’d sell more if you did,” he would tell me.

He was right, too. If I displayed all his items together as a collection, I would sell more … of his stuff.

Customers would then have a matching set of car seat, stroller, highchair, and playpen (not that the car seat or stroller would ever be in the same vicinity of the highchair or playpen).

This does beg the question, however …

Do you merchandise by Brand or by Category? 

MERCHANDISING BY BRAND

Pros: When you merchandise by Brand you are making a statement. “We carry this brand.” Department stores do this a lot. You can find the Levi or Docker section in most clothing stores. This style of merchandising makes it easier for customers who shop by Brand, who come in looking for a specific company’s offerings. It also makes it easier for customers to know what brands you carry and, by relation, what kind of store you are.

Also, you can often get point-of-purchase material from the Brand to help decorate your branded sections. Vendors love branded sections because, like Graco, they know when you create a branded section you will sell more of their Brand.

Cons: One problem is how often a Brand will have products that fit into several categories. Creating a branded section makes it harder for customers to compare similar products from different brands. It also makes it harder for your staff to easily show off two or three solutions to the customer’s problems. The curation process becomes complicated.

The other problem is if you have a branded section you are likely taking those branded items out of your category-merchandised sections, making it harder for category-shopping customers to find those items.

When to use: 

  • When the Brand is strong enough to drive its own traffic to your store
  • When the Brand is willing to give you point-of-purchase materials and help you build the section
  • When the Brand is willing to give you special deals such as exclusive products, better margins, freight or dating programs, etc.
  • When the Brand fits into your Core Values as a store
  • When there is a dominant Brand in your store or in a category
  • When customers come in asking specifically for the Brand, not the product

MERCHANDISING BY CATEGORY

Pros: Merchandising by category helps shoppers compare brands more easily. It helps your staff curate the selection more easily. It helps you find solutions for your customers more easily. It is far more customer-centric than branded sections. But …

Cons: It is less visually appealing. It takes more work on your end to make the displays attractive and keep them organized and neat. You potentially lose out on special discounts and deals from the vendors. You and your customers have to look harder if you are searching specifically for one Brand. You don’t get to take advantage of the power of the Brand.

When to use: While this style may be more customer-centric in terms of finding specific solutions to specific problems, and your store is hyper-focused on solving customers’ problems, it isn’t always the best method. Use it only:

  • When there isn’t a dominant Brand in that category
  • When you have several different Brands in that category
  • When customers regularly compare Brands in that category
  • When customers come in asking for the product, not the Brand

CASE BY CASE

The best approach is to find some combination of the two. You have to look at each Brand and Category separately and decide which style will help you sell the most product and solve the most problems. For instance, we found our Preschool Department sold best and was easiest for customers to navigate when we divided it by age and development, but Duplo —a LEGO product for preschoolers—sold better when it was in the LEGO-branded section on the other side of the store.

You can even do a branded section within a Category. It gives you the benefit of both worlds by making the Brand stand out in your customer’s mind and giving your customer the chance to more easily compare Brands.

The key is to do your merchandising consciously with thought and design, taking into consideration how your customers prefer to shop those Brands and Categories. Remember first and foremost it is all about the customer.

Build your merchandising around what suits your customer’s needs best.

Then add in one more element—Surprise and Delight. Add fun little things into every display that catch the customer’s eye and makes her smile. It might be a funny sign. It might be an out-of-place-but-totally-fits product. It might be a quote. It doesn’t have to be big or obvious. In fact, the more obscure, the more someone who sees it will be delighted.

At the end of the day your job is to affect your customer’s feelings and mood. A happy mood is a buying mood.

“If shopping doesn’t make you happy, then you’re in the wrong shop.” -Mimosa Rose

-Phil Wrzesinski
www.PhilsForum.com

PS The Brands spend billions of dollars in advertising to get people interested in them. When you carry a brand doing this, there is value in your store being recognized as a source for this Brand. Customers often called us the “LEGO store” or the “Thomas store” because of our LEGO and Thomas the Tank Engine branded sections.

PPS One other element that will take your merchandising to the next level is signage. It is such a big deal it gets its own post. We’ll talk about what goes into a quality sign tomorrow.

Where Are the Employees?

Last year I did something I had never done before. I went shopping on Black Friday. No, not in the early morning hours with all the mobs. I’m not that kind of shopper. I went out in the afternoon to see what the stores looked like after the mobs had left.

It was exactly what I expected. I had to fight the urge to want to straighten and re-merchandise the empty, messy shelves. (I actually did some straightening in Target just to get it out of my system.)

Some of my former employees have reported the same feeling. They find themselves straightening racks and displays constantly. If you’re a merchandising neat-freak like we were, I’m sure you’ve done the same.

This was taken mid-day on a Saturday in September!

Just recently one of my former employees was in Macy’s. She was straightening a rack, as is her habit. Nearby was a group of young men searching for an employee. They were singing, “Oh Macy’s employeeeeeee. Where are yooooouuuu?”

They saw her and asked hopefully, “Do you work here?”

When she said, “No,” they returned to their singing and standing on their tiptoes trying to find help in the cavernous and employee-less department store.

As she told me this story, two thoughts came to mind …

First, if your employees don’t have that urge to straighten and rearrange the displays in other stores, you haven’t trained them well enough.

Second, the lack of well-trained employees on the sales floor will be the downfall of the department stores, not Amazon, not the economy, not their failure to latch onto some shiny new tech, not their website, not their omni-channel efforts, not their advertising.

All the traffic in the world won’t matter if there is no one to take care of that traffic.

Don’t make the mistake that has shuttered the stores of JC Penney’s, Sears, Bon Ton, Younker’s, Elder Beerman, and so many others.

Train your staff well and have enough of them on the floor to make a difference.

That will be the winning formula this holiday season.

-Phil Wrzesinski
www.PhilsForum.com

PS I used to have a red polo shirt. I wore it into Target once. Once. Retailing may be one of the lower rungs on the employee food chain, but when you find the right people and train them well, you get a team where retail is in their blood. They will get mistaken for employees in other stores on a regular basis. That should be a goal you strive for your team—to have the kind of people who want to make the shopping experience better no matter where they are.

A Tool You Can (and Should) Use From Time to Time

We offered a layaway program at Toy House. It was one of those services my grandfather thought would be helpful for customers buying toys. It was simple, too. Just pick out the toys you want, take them to the register, put down a 10% deposit, make a payment once a month, and pay it off when you’re ready to pick up the toys.

Some people would pick up their layaway late afternoon Christmas Eve. They only had to hide the toys from prying children’s eyes one night.

On the customer’s end the layaway program was simple. On our end it was a lot of work. (That’s the way any program should be in a customer-centric business.) One reason it was a lot of work on our end was because our biggest fear was losing a customer’s product. In the thirty five years I worked in the store (including my part-time roles while in high school and college) we only lost three items that we didn’t have in stock in the store. That’s not bad considering we did over a quarter of a million dollars in layaway every single year.

Then again, we agonized over every single one of those losses because it was a failure on our part to service the customer.

I still remember them. One in particular was a Little Tikes Football Toy Chest. I remember it clearly because I was sixteen years old and my dad had me drive to Lansing to Toys R Us to buy one so that we could replace the one that was missing.

Another time I ordered the missing product from a fellow toy store owner out in California. I paid $84 in next-day shipping to have the $14.99 item in my hands Christmas Eve for the customer.

I didn’t bat an eye at the $84 shipping cost because I was looking at the big picture. It wasn’t $84 for a $14.99 item. It was $84 to protect the trust of a lifetime value customer. It was $84 to protect the integrity of the layaway program and the $250,000 in business it affected.

Sometimes it is worth losing a few dollars today to make more money tomorrow.

You probably don’t have a layaway program. But you do have customers in your store today looking for a solution you don’t have in stock nor plan to have in stock in the next day or two. She could have gone to Amazon, but she didn’t. She came to you. If you send her out empty handed, she’s likely going to Amazon now (and she might never come back to you.)

Unless you order it for her.

You could go online and order the item for her. Have it delivered to your store. (Note: you don’t even have to order it from Amazon. You can choose to support someone else.) It is the same for her whether you order it or she does.

The difference is how she feels about you.

You won’t make as much money as if you had it in stock, but you kept a customer happy by solving her problem for her (as she was hoping you would when she walked through your door.) Plus you get her back in the store to pick up the item.

If you know the lifetime value of a customer, quite often this will be worthwhile. If you look at each transaction as simply a transaction, then it will never make sense.

I don’t recommend this as a standard policy. You’re much better off having the right solutions in stock. At the same time, I want you to have the right frame of mind if you do decide to help out a customer this way. It makes sense if:

  • It will Surprise and Delight the customer
  • It will keep her as a loyal customer
  • There is a lifetime value of the customer that will pay off down the road

It isn’t a policy so much as a tool to help you keep a customer happy. Like all tools, it has a specific use. When used right it will make a difference.

-Phil Wrzesinski
www.PhilsForum.com

PS I have actually pitched this idea to several manufacturers that happen to also sell directly online. They should have a code for each vendor (such as your account number) where you can order directly online from the vendor, put in your code, get a back-end discount, and make the customer happy. Just think how much better that would be for you, your vendor, and most importantly the customer, than to have the vendor undercutting you or the customer leaving to go to Amazon.