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Category: Customer Expectations

Avoiding the Discount Mentality

Everyone wants a discount. Everyone wants a deal. Everyone wants a coupon. Or so you might be led to believe.

One of my employees went to a fast food restaurant and said, “I’d like a three-piece strips, a biscuit, and a small drink.”

The employee answered, “The drink isn’t included with that.”

She responded, “That’s okay, I want a three-piece strips, a biscuit, and a small drink.”

He replied, “But the drink isn’t included.”

She said, “I don’t care if it is included or not, I want a three-piece strips, a biscuit, and a small drink.”

He replied, “But the drink isn’t included. You’ll have to pay extra for the drink.”

This went on for several more exchanges until the clerk finally got her what she wanted. He had no concept of how to take care of a customer if it didn’t fit into his special value meal buttons.

Unfortunately, his actions aren’t far from his experiences. There are many customers out there who would have not gotten the drink because it wasn’t part of the bargain. They would have ended with the strips and biscuit or chosen something else that included a drink.

That is the Discount Mentality that has taken over much of America. And it is reinforced and fueled by retailers all across the country who only offer customers the bundles, deals and specials. 

Don’t be that store.

There are also a large swath of shoppers who are more like my employee, who know exactly what they want and how they want it. They are willing to pay extra for the drink, because to get it any other way is to not get what they want.

While the rest of the world caters to the Discount Mentality…

  • You need to find and hire employees who don’t think that way. 
  • You need to train your team to first give the customer exactly what she wants (and then worry about any specials or deals). 
  • You need to create a store where falling in love with the product is more important than fitting a budget or a price. 

You do that and you’ll have plenty of customers willingly paying extra for the drink. They’re thirsty for a store that gives them exactly what they want and how they want it.

Be that store.

-Phil Wrzesinski
www.PhilsForum.com

PS For those of you who have read Dr. Ross Honeywill’s book One Hundred Thirteen Million Markets of One, you’ll know that I am talking about selling to NEO’s. I’ll show you how to get customers to fall in love with your products in the next post.

The One Loyalty Program You Need to Grow Your Business

Your brain has a gatekeeper. His name is Broca. He protects your brain from all the boring, mundane and predictable in the world.

Roy H. Williams, aka, The Wizard of Ads, was the first person to introduce me to Broca. Most advertisements fail because Broca saw them coming a mile away. But it isn’t just ads that Broca blocks.

Tell me all the mundane things you did yesterday. Bet you can’t remember them all.

Tell me all the surprising things that happened yesterday. Bet you nailed that list.

According to Roy, “Surprise is the foundation of delight.”

If you want to delight your customers, you have to do something surprising. If you want to make your customers’ experience memorable, you can’t be boring, mundane or predictable.

Strativity Group Inc. in a new survey, found that people who had been “delighted” by their favorite brand were more than twice as likely to be brand-loyal than those who weren’t delighted.

Another Royism… “If a person expected something to happen, and it happened, there can be no delight.”

  • If you give your customer less than she expects, she’s going to shred you.
  • If you give a customer exactly what she expects, at least she won’t shred you, but she won’t be loyal, either.
  • If you surprise a customer with more than what she expects, you’ll be memorable and she’ll be loyal.

Go ahead and surprise her. That’s the loyalty program you really should be offering.

-Phil Wrzesinski
www.PhilsForum.com

PS The easiest way to surprise and delight her is to evaluate all the interaction points a customer has with your store from the front door to the checkout and figure out exactly what she expects during each encounter. Then figure out what you can do that is a little bit more than she expects. It is far cheaper to you and more effective on her than any discount you might offer her.

PPS Need a head start on evaluating what she expects? Download the FREE e-book – Customer Service: From Weak to WOW!

Your Customers Already Have the Power

Your customers have incredible power. They can take your business down overnight. One unchecked and unanswered complaint, one un-refuted accusation, one video of something you did wrong going viral, and you’re gone.

Just ask Paula Dean.

It didn’t use to be this way. You used to have all the power. You controlled access to the products. You had all the information. You were the gate-keeper. The customer had to go through you and your policies to get what she wanted.

All that has changed. Thanks to the Internet your customer often knows as much or more about the product than you do. She also found fifteen places where she could buy it without leaving her house.

Never before in the history of retail has the customer had this much power.

According to Tom Wanek, that’s a good thing. In his book Currencies that buy Credibility, one of the ways you can earn your customer’s trust is by giving up Power & Control. He gives the example of an online shoe seller – Shoeline.com – that puts complete and full reviews (regardless of how good or bad) right below every shoe they sell. They show the warts and all and let the customers know up front what people think about each pair. They don’t try to hide anything.

You know that nothing is perfect, right? So does your customer. She knows that everything has a downside and no matter what you try to sell her, she will be looking for that downside. By showing the downside up front, Shoeline.com is building trust. Their transparency of the downsides puts the power and control into the hands of the customer.

Zingerman’s Deli in Ann Arbor, MI has another interesting take on transparency. They tell all their employees all of their financials. They believe it is better for everyone to know what is going on with the company. Their experience is that it gives the employees some level of control to know how they influence the financial well-being of the company. It works. They now have nine different parts of their business and do tens of millions of dollars.

Full transparency builds trust. Your customer knows you have an agenda – to sell her stuff. When you are open and honest about the downsides, open and honest about your pricing, open and honest about why you do what you do, you cede all power and control to her, which earns her trust and, more importantly, the sale.

She already has most of the power, yet she’s standing in your store. No sense holding on to what little power you have left.

-Phil Wrzesinski
www.PhilsForum.com

PS Speaking of transparency, I don’t get a single penny from any affiliate programs. Tom did give me some free books for a class I was teaching a couple months ago, but I write about his book not for any financial gain (other than yours). I get paid through my retail business at Toy House and for doing speaking gigs. I write this blog and give away information for free because A) I can, B) I love helping. I’ve done these posts about Trust because I believe it is one of the single most important tools indie retailers have left that we can use better than our competitors.

Sometimes No Actually Does Mean Yes

No means No.  Most of the time I agree.

Here is where it doesn’t. When your No leads to their Yes.

There is a toy company that just put it out to the American Specialty Toy Retailing Association (ASTRA) that they said No to Amazon. That’s a pretty big deal. That’s a lot of volume in one place that they turned down. That’s a lot of sales missed.

They said no to an opportunity for more sales and more money. And many, many more stores that had maybe been on the fence about carrying their product just said Yes to them.

We’re talking about Trust. Trust is the most critical element you have to earn to grow your customer base and increase customer loyalty. In Tom Wanek’s book Currencies That Buy Credibility, one of those currencies you can pay is Opportunity.

When you are willing to turn down opportunities just to stay true to who you are, you earn trust. When you put your mission ahead of profits, you earn trust. When you say, “No, we won’t do it that way even though it might be (easier, more lucrative, more profitable),” you earn trust.

Tom brings up the Toyota-founded company Scion that makes those funky, weird-looking vehicles. Scion could sell tons more vehicles than they do, but they don’t want to be a mass-market company. So instead of ramping up production, they limit it and scale it back so that their vehicles remain rare and funky. Their customer base, having seen them forego opportunity to remain true to the original mission, has a level of trust far higher than otherwise.

There are certain toys every year that I just say No to. Why? Because they don’t have the Play Value that is so necessary for children. Could I sell a whole bunch of these other toys? Sure. They have shelf-appeal and advertising behind them. But if I spent decades talking about Play Value and then started selling these toys, I would lose all credibility the moment I put those toys on the shelf.

When you say No, you mean No. But sometimes your No leads to another person’s Yes.

-Phil Wrzesinski
www.PhilsForum.com

PS The picture above is a product called Baby Paper. Yes, I plan to order it. They earned my trust. I want to repay it. That was my initial reaction and it will be your customer’s initial reaction when they see you turn down opportunities just to remain loyal to your mission and your current customer base. Not only will I order, I’ll tell others like me to order. Not only will your loyal customers remain loyal, they’ll bring others like them to the table. That is what Trust does.

Would You Ever Admit You Weren’t the Best?

Avis did.

Avis ran a whole ad campaign for several years based on the fact that they were NOT the number one company in their industry.

We’re number two. We try harder.

They stood naked to the world. We are not number one. That admission was enough to garner a whole lot of trust. Any company willing to admit something like that so boldly shows that they have nothing to hide.

The Currency they were spending was Reputation and Prestige. They put their reputation and prestige on the line, told everyone their warts, and used it to their advantage. End result? Their market share rose from 10% to 35%!!

Admitting your flaws or shortcomings may seem counter intuitive to getting people to trust you, but in reality, it can be one of your most powerful tools to earning that trust. They say honesty is the best policy, right?

Being honest about your flaws is simply the right thing to do. Admitting when you made a mistake wins the heart of the customer. They know you made a mistake. You know you made a mistake. Trying to cover it up or ignore it only builds distrust and resentment.

Everything and everybody and every business has flaws. No one and nothing is perfect. When you try to show that you are perfect to everyone, they see right through you. They know there is a downside. They will be looking for the downside whether you tell them or not. So go first. Tell them the downside to doing business with you before they start looking. Tell them the downside to the product you’re trying to sell them. The upside of telling them the downside is that they are more willing to trust everything else you say.

  1. Admit your mistakes and shortcomings.
  2. Tell them the downside.

Building trust doesn’t cost as much as you think. You just have to spend the right currencies.

-Phil Wrzesinski
www.PhilsForum.com

PS Patagonia is another example Tom Wanek used in his book. They were a multi-million dollar company when the owner realized his company wasn’t lined up with his own personal values of being environmentally conscious. He totally revamped the company and lost a lot of business in the process. But he gained a lot of trust, too. That trust is what led him back from the brink. His customer base basically said, “Anyone willing to take so much heat and so many financial losses to run his company in a way he could be proud is someone I can trust to do what he says he’ll do.”

PPS You don’t need business examples to know this is true. The media and celebrity world give you all the examples you’ll ever need. Admit the scandal and people forgive you. Deny the scandal and the storm never blows over.

We Trust the Non-Sellers More

Late night infomercials have done more to harm the trust relationship between retailers and customers than almost anything else out there.

You’ve seen the shows where the person claims to be the expert on something, but you have a hard time believing them because they are also trying to sell you something. You doubt the veracity of their claims. You question their motive. No matter how much of an expert they prove to be, you just don’t trust them.

Yet, one of the Currencies that buy Credibility is the Time & Energy you invest in educating your customer base and showing off your expertise.

So how do you invest your Time & Energy in a way that builds trust instead of breaking it down?

BEFORE THE SALE – DROP THE SALES PITCH

The key to educating your customer base in a way that builds trust is to remove any sales pitch from the process. The sales pitch is what undermines trust, so drop it.

In Tom Wanek’s book, he mentions the REI website that is chock full of educational articles. Those articles are extremely useful and helpful to anyone thinking about camping and outdoor recreation. More importantly, they don’t try to sell you on one brand or another. They give you suggestions about the types of products you need, but stop short of pushing any particular product.

They have shown the customer that they are willing to invest their time and energy to make sure you know everything you need to know – even if they don’t get the sale! That’s the sacrifice they will make to build trust.

We do similar types of classes here – purely informational. Whether it is about toys or baby products, I take the approach of teaching the customers everything they need to know to make smarter choices without telling them what to choose. Yes, they can take that information and go shop elsewhere with confidence. At the same time, because I am building trust, I am winning them over to shop with me. I am training them to look at toys or baby products the same way I look at those items.

I know my customers are going to go to other stores. I know my customers are going to go online. I also know that at the end of the day they are going to buy from the store they trust the most. By dropping the sales pitch, I win the sale.

AFTER THE SALE – SERVICE THE CUSTOMER

Apple has a different approach. They invest their Time & Energy after the sale. They call it the Genius Bar. The Genius Bar tells customers…

“We understand our products have a learning curve. We so strongly believe you will enjoy our products that we will invest the Time and Energy to make sure you know how to use them properly.”

The power of Apple’s approach is that their willingness to help you out after the fact gives you trust and confidence in the purchase, and they reinforce the purchase decision by making sure you use the product to the best of its abilities, which creates loyalty.

You are an expert on your products and your industry. You can build trust by investing the Time & Energy to share that expertise with your customer base. Just drop the sales pitch. We trust the non-sellers more.

-Phil Wrzesinski
www.PhilsForum.com

PS The Internet has changed one thing about information – the expectation that information should be free. The gatekeepers of information are gone, replaced by a flood of information greater than anything Noah ever faced. With so much information out there, the information that is most trusted is the information that isn’t trying to sell you anything. Make sure your company is the source of that information and you’ll garner enough trust to not have to make a sales pitch at all.

How Far Behind Your Products do you Stand?

Everyone claims they stand behind their products. The question is, how far back do you stand? Far enough to distance yourself when something goes wrong? Or right there to take care of even the most minor of problems?

One of the most powerful currencies you can spend to buy credibility and gain trust from your customers is to “put your money where your mouth is”.

Yes, I’m talking about a guarantee. A money-back, no-questions-asked, we-really-do-stand-behind-our-products guarantee. Something like what Nordstrom’s and LL Bean offer.

Here is what it says on the LL Bean website…

Our products are guaranteed to give 100% satisfaction in every way. Return anything purchased from us at any time if it proves otherwise. We do not want you to have anything from L.L.Bean that is not completely satisfactory. (emphasis mine)

Here is what they are really saying…
We believe in our products so much that we will pay you back for anything that doesn’t live up to our lofty standards, and more importantly, your lofty standards. We will gladly take a moentary hit on anything that you don’t like just to make sure you are satisfied.
More importantly, here is what they are doing…
They are proving to you that your satisfaction is greater than their monetary gain. That builds trust.
We sold a board game to a customer recently who brought it back because they didn’t like it. Yes, we took it back. Why? Because we knew she would turn around and buy something else. We steered her away from the games with a similar play as the one she didn’t like and she ended up spending another $150 that night. She’ll be back to spend more money on more games later. Why? Because she trusts us.
Did I lose money on the return? A little. I more than made it up with the rest of her sales. Plus I put the board game into our demo library for future game nights. Plus I learned about a board game that wasn’t getting favorable reviews. Plus I can donate the game and take a write-off if I just want to get rid of it.
Most importantly, I showed through my actions that I believe so strongly in my products that I will stand behind every sale fully and completely. That sends a message of confidence and builds a level of trust that keeps customers coming back time and time again.
-Phil Wrzesinski
PS Yes there are some people who will try to take advantage of you. Yes, there are some exceptions to the rule. We had a customer who brought back 14 puzzles one year, all missing a piece. Of the one million puzzle pieces we sell each year, her 14 pieces were the only ones missing that year. I pulled her aside after #14 and politely told her that she was welcome to continue buying puzzles from us, but I couldn’t take any more puzzles back from her. She still buys her puzzles from us. Partly, I think, because I handled it with politeness and kindness. Partly, I think, because she knew what she was doing. Partly, I think, because she trusts us

You Have to Pay for Trust

She doesn’t trust you. She has been burned by many retailers before you. If you want her to trust you, you better be ready to pay for that trust. You better be ready to show her what you are willing to sacrifice to earn her trust.

Are you willing to give up money to earn her trust?

Are you willing to give up power and control to earn her trust?

Are you willing to give up time and energy to earn her trust?

Are you willing to give up opportunities to earn her trust?

Are you willing to put your reputation and prestige on the line to earn her trust?

Are you willing to risk safety and well-being to earn her trust?

These are the six Currencies that buy Credibility as outlined by Tom Wanek in his book of the same name. If you want her to trust you, she needs to know that you are willing to pay one (or more) of these prices.

If you are willing to pay the price, you will not only earn her trust, you’ll earn her loyalty. You will not only earn her business, you will earn access to her network. When your customers trust you, you have built a recession-proof, competition-proof business. 

Just remember that trust is fragile and easily broken. And actions speak louder than words.

We’ll explore all six of these prices to pay in upcoming posts.

-Phil Wrzesinski
www.PhilsForum.com

PS Tom’s book has some great examples. I plan to add a few examples of my own. Some of these, you are already doing (but might not realize it). Some of these are things you would do if asked. Some of these are things you would do if you knew what a difference it would make. Some of these are things you’ll say No Way!  That’s okay. Just remember that the more you’re willing to sacrifice for the customer, the more she will trust you.

Do Your Customers Trust You?

I’ve plowed my parking lot clean. I’ve held open the front door for my customer. I’ve greeted her with a genuine hello and thanks for coming in. I’ve avoided the dreaded Can I help you? phrase.

Those are the easy obstacles to remove.

The biggest obstacle is a lack of trust. A new customer sails in on cargo ship full of cynicism the first time she visits you.

It is easy to see why.

Many retailers, especially the biggest among us, have forsaken that trust time and time again. The bait & switch. The mark-it-up-to-mark-it-down. The everything-must-be-locked-because-we-think-you’re-a-thief displays. The 4.5 font fine print. The No’s (no returns, no refunds, no touching, no opening the package, no exceptions). The because-one-customer-burned-us-once-you-all-have-to-pay policies. The too-good-to-be-true offers that weren’t. The defects. The lost orders. The wrong orders. The lack of trained employees. The lack of employees who care. The lack of employees, period.

The list goes on and on.

You might not do anything on that list, but your customer has experienced it somewhere so she believes every retailer is out to screw her either on purpose or through their own ineptness. That is her reality so that is her expectation.


THE BAR IS REALLY LOW

The only good news is that since her expectation is pretty low, it doesn’t take much to exceed that expectation and start to build up that trust. The bad news is that it only takes one slip up, one time where you acted like all those other stores, for her to lump you in with the worst of them.

Even if you only do the most minimum of transgressions, you get treated like the worst offender ever. And unlike the big box stores, the indie retailer has to fight twice as hard for a second chance.

It makes you wonder why anyone would want to be in our profession in the first place.

Trust, however, is the single most powerful tool you can use to grow your business. Trust trumps sales and discounts because trust creates loyalty, customers that will pay your price and have your back at the same time. Trust trumps huge advertising campaigns because without trust, your message falls on deaf ears. Trust trumps technology because even the most advanced systems cannot fix a broken heart.

But Trust can be bought.

Tom Wanek wrote the defining book on the topic – Currencies That Buy Credibility. Over the next few posts, I’ll show you how you can build trust in your customers’ hearts by spending one of six different currencies Tom spells out in his book.

-Phil Wrzesinski
www.PhilsForum.com

PS This Wednesday the students in my Jackson Retail Success Academy class will get all six currencies at once, along with a few other lessons on Marketing & Advertising. One of these days I’m going to get Tom up here to Jackson to talk about it directly. In the meantime, keep your eyes out for an announcement about how you can partake in shortened versions of JRSA later this year.

The Four Worst Words in Retail

You know them. You’ve probably even said them. More than likely you started cringing even as the words were floating across the ether.

Can I help you?

You say those words and the response is automatic.

No thanks, I’m just looking.

Here is why those words are so bad.

First, the knee-jerk reaction, even from someone who actually wants your help, is to say NO. The last word you want your customer to say is NO. NO puts up a wall between you and your customer. NO ends the conversation and makes you feel bad, too.

Second, you just got your customer to say out loud that she is Not. There. To. Buy. She told you she was just looking. She told herself that she was just looking. Once she says it, she starts to believe it. It becomes her reality.

Third, about three-fourths of your customers are scared to be approached by your staff in the first place. In part it has to do with how we communicate – especially the guys.


MEN AND WOMEN COMMUNICATE DIFFERENTLY

I’m going to share a secret with you. Men and women communicate differently. Yes, I said it. Crucify me now if you want. I speak the truth.

Men speak vertically. Did what I say make you think higher of me or lower of me? This is why guys don’t like to ask directions. To ask is to imply that I don’t know. To ask is to make someone think lower of me. Sorry, I’m just not comfortable doing that.

Women, however, speak horizontally. Did what I say draw me in closer or push me further away? Women love to ask for help. It draws them into the inner circle.

For men, when the sales staff approaches and asks to help them, they immediately go into a shell. They put up the wall of defense. They say “I’m just looking,” sometimes before you even say a word. In reality, they are just looking. They are looking for a sign to tell them the information they need so that they don’t have to ask anyone. If you want to assist a man who is shopping, you have to say things that empower him and make him feel important and smart.

For women, understand that even though they like to ask, about half of them need time to formulate the proper question before they will ask. Those are your introverts. They will engage, but only after they have figured out exactly how they want to engage. You have to bring them into the inner circle on their terms. Get too close too soon and up goes the wall.


A BETTER APPROACH

Rather than bombard your customers with a barrage of “Can I help you’s?”, Try a different approach. Say “Thank you for coming in,” with a genuine smile and appreciation. After all, they didn’t have to come to your store. With all the options out there, they chose you. Be thankful. The guys will feel empowered. The gals will feel like they are invited into the inner circle. The introverts won’t feel threatened. The wall won’t get built.

Then you have a chance to do what you’re really supposed to do with your customers – build a relationship that leads to trust.

-Phil Wrzesinski
www.PhilsForum.com

PS Building a relationship that leads to trust isn’t as hard as it sounds. If you were paying attention, the last three posts were about the parking lot, the front door, and the greeting. Building the relationship is next.