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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.

Tell Your Customers What You Stand Against

It is easier to rally a crowd against something than for something. Just ask any political campaign manager what really moves the needle.

The same works in business advertising, too. Tell the people what you are against and watch a flock of like-minded people come see you. Tell the world why you don’t agree with your competitor’s world view and everyone who feels the same way will pay attention. Compare and contrast. Tell them what you won’t do.

Peter Reynolds, VP of Sales of Janod Toys did a presentation for my staff last night and put up this graphic.

It is a perfect contrast of Mass Market stores versus Specialty Stores.

MASS                                     SPECIALTY
More for Less                          Less is More
Promote Low Prices                  Promote Benefits and Features
Emphasize Quantity                  Emphasize Quality
Create Wants                             Fulfill Needs
Good Toys are Hot/Licensed       Good Toys are Basic
Toys are Possessions                 Toys are Tools
Toys are Consumables                Toys are Investments
Toys Entertain & Distract           Toys Involve & Empower
Toys Promote Imitation              Toys Promote Creativity
Toys Promote Conformity           Toys Promote Uniqueness
The Toy Directs the Play             The Child Directs the Play

There is a whole year of what-we-stand-against advertisement messages in that above list. Do you see it?

-Phil Wrzesinski
www.PhilsForum.com

PS When people talk about what they stand for, it is usually in generalities – world peace, strong economy, health. When people talk about what they stand against, it is more often specifics – low pay for… discrimination against… injustice for… The power is in the details.

Lose the Battle to Win the War

We all have those unreasonable customers. Ones that want to bring an item back months after they bought it, not in resell-able condition. Ones that demand money back without a receipt or they will flame you on Yelp. Ones that want you to do something that your stated policies say you don’t clearly do.

You could take a page from Best Buy and fire those customers. You could be like the Soup Nazi on The Seinfeld Show – no soup for you!!

Here is another approach I want you to consider.

Kill ’em with kindness. Break your policy and do what they ask. Bend the rules and give them what they want. Do it with a HUGE smile on your face, sincerity in your heart, and genuine concern for their needs.

“I’m really sorry that item didn’t work out for you. Yes, I can see why your husband would cut it in half. We’d be happy to take it back. Would you like to pick something else out? Maybe I can offer a couple suggestions of items that might work better? No? Okay, here is a refund. Let me know if there is anything we can do to help you out in the future.”

It might sting a little bit. You might lose some money on that particular transaction. But don’t be penny-wise and pound-foolish.

When you kill these customers with kindness, a few things could happen.

They might not notice and continue to be a thorn in your side.
But your other customers noticed. They didn’t get the whole story of what was going on with the customer. They didn’t see how unreasonable she was. But they did see how you reacted. They saw how you took incredible care of the customer. They saw how you had the customer’s back. They noticed how you were calm and friendly and respectful and helpful and caring.

They might become one of your best customers ever. 
I could regale you with many tales of unhappy customers we have turned into mega profit machines because we bent the rules a little. Heck, you can regale me with many of the same stories. In fact, retail is the only place I have actually seen true alchemy – turning lead weight into gold.

At a time when we are all screaming about how to draw more traffic, maybe firing our current customers isn’t always the best tactic.

As one anonymously brilliant person said… Your customers will get better when you do.

-Phil Wrzesinski
www.PhilsForum.com

PS Never let short-term profits get in the way of your long-term goals. This strategy may “lose” you a battle or two, but you’ll win the war. Yes, it requires patience. Yes, it requires eating a little crow (but crow sprinkled with a helping of cold hard cash can be rather tasty sometimes). Yes, there will be customers who make you duck into your office for a few minutes. Yes, they got more than they deserved. Isn’t than the hallmark of incredible over-the-top customer service?

Beating Amazon?? Win Your Customers’ Hearts

I just read an article from Entrepreneur.com called 5 Ways Your Small Business Can Topple Amazon This Holiday Season.

Usually I like what Entrepreneur has to say, but they got me this time. Shame on them. (Next time shame on me).

First, let’s start with the obvious… No small business is going to “Topple Amazon”. Not you. Not me. Not any of our friends.

Second, only two of the five tips were really tips. Two of them were just standard business procedures you should be doing regardless of who you are. And the last was “keep your chin up”.  As if just having a positive, Pollyanna attitude would keep my competition at bay. Sheesh. As far as I’m concerned they shorted me a tip just so that they could put an odd number in their headline.

As for Amazon? You shouldn’t worry about them at all. They are not your target. If you want to have the kind of holiday season you can take to the bank, you need to focus on one thing and one thing only – your current customer’s heart.

What is in her heart? What moves the needle for her emotionally? What solves her problems? What fulfills her needs?

Tim Miles and Co. gives you a great way to find this out here.

One simple truth of retail is this… If you take incredibly awesome care of your current customers, you don’t have to worry about what the competitors are doing. You only have to worry about how to continually raise your own bar.

Customers are going to shop where their needs are met – all of them. Make your store that store.

-Phil Wrzesinski
www.PhilsForum.com

PS I’m not saying to ignore Amazon completely. You can always learn from them. In fact Entrepreneur.com redeemed themselves with this article here. Number two is spot on!

PPS Great Customer Service is giving your customer exactly what she expects every single time. You want to win her heart? You gotta take it one step further and give her more than what she expects. Do that and you won’t ever have to worry about the competition other than whether you want to move into their now empty space.

photo credit: Ben K Adams via photopin cc

Sometimes Second Place is the Winning Position

If you’re an indie retailer, quite often you get customers in your store that have already shopped (and even bought from) the competition. They know the big chains thanks to multi-million dollar ad campaigns. They know the big chains from the huge signs over the giant buildings on the busiest streets. They know the big chains. They visited the big chains. They purchased.

Your first thought is often one of dismay. Another sale lost to the big guy. Another customer shopping at my competitor. When you ask them what they are looking for and they tell you about buying something from another store, it is hard not to show your disappointment.
Except you shouldn’t be disappointed. You should be happy. Why?
First, they came into your store. Not everyone who shops the competition is coming through your door, too. But this customer did. Celebrate her! Here’s a deep dark secret… even your best customer has been to your competitor more than once.
Second, you now have access to a spy. Rather than change out of your uniform and take the time to go scout the competitor incognito, you have someone who just did that for you. And from the point of view of a customer, too (instead of your jaded, biased, store-owner mentality). Get her to talk about her experience and you’ll learn far more than if you went yourself.
Third, you have the easiest opening ever into discovering what the customer likes and wants.
When you find out a customer has been to another store, simply say, “That’s awesome! What did you see there that you liked?”
You’ve praised her, which makes her feel good. 
You’ve asked her expertise, which makes her feel good. 
You’ve listened intently, which makes her feel good. 
You’ve identified what rocks her world so that you can rock her world, too, which makes her feel good. 
You’ve gained valuable insight into both your customer’s mind and what your competitor is doing, which makes you feel good.
Sometimes being second can be a real winning proposition. You just have to look at the opportunity the right way.
-Phil Wrzesinski
PS Most importantly, if you listen closely, your customer just told you how you can treat her better than your competitor, so you now have a blueprint to win her over. Sure, you may have lost the initial sale she made at the other place, but if you can win the rest, you can win her friends so that you’ll be first with them.

It’s All About the Story

One final thought from my trip to Walt Disney World…

I took two teenage boys to the land of pink princesses, Frozen queens, and fairy tales come true. I took two roller coaster freaks who think Cedar Point (a mere 2.2 hour drive from us) is the Mecca of amusement parks to the land of talking mice, mermaids, and musicals. I took two teenage boys on rides that one would expect them to find more boring than the 21 hour drive we took down I-75.

My older son summed up his experience in two words, “My Childhood!”

My younger son only needed one word, “Epic!”

Walt Disney World delighted an entire family including two boys who on the surface wouldn’t seem to fit their demographic. But Walt knew what he was doing. It’s right here in this quote I took from an area under construction…

“It is my wish to delight all members of the family, young and old, parent and child.” -Walt Disney

How did he accomplish that? It’s all about the story.

We didn’t go on a roller coaster. We took a limo across town to get to the Aerosmith concert.
We didn’t go on an up-and-down thrill ride. We visited a haunted hotel in the Twilight Zone.
We didn’t go on a water ride. We were told the story of Br’er Rabbit.
We didn’t go on a G-Force simulator ride. We flew a spacecraft to Mars.

From the moment you got in line, the story was being told. Costumes, decorations, and activities while you waited were all designed to tell you the story. No detail was spared.

Were the rides as thrilling as Millenium Force? No. But they were every bit as fun. Even DINOSAUR, which my son likened to “driving on Michigan roads”, was fun enough to do it twice.

The lesson here is that the story sells it. The story makes it far more exciting, memorable, and likable than it is on its own. The story wins the heart. Most importantly, when you include the customer in the story, when you make her story your story, you’ll win her heart and all the members of the family, just like Walt.

-Phil Wrzesinski
www.PhilsForum.com

PS It isn’t as hard as you might think to come up with stories that include the customer. Just get the customer to start her story and then add your store and product stories to the narrative.

Moms, Mobile Phones, and the Transactional Customer

I have been bombarded with companies selling me on the merits and benefits of Mobile Marketing. The main focus is sending out texts with coupons and deals to people in the vicinity. Some of these companies are offering me packages less than $20/week. Others want me to commit to thousands a month. They have the statistics that show they will bring me gold.

“Lies, damned lies, and statistics.” -Mark Twain

Kids Today magazine just had an article this month with even more statistics on mobile that I found quite enlightening and worth exploring deeper.

Here is the first statistic from the article:

“According to the latest data from comStore, overall mobile purchasing accounted for 11% of e-commerce spending in 2013.”

E-commerce spending, depending on your source, is anywhere from 3% to 10% of all retail purchases, so mobile purchasing is anywhere from 0.3% to 1.1% of all retail purchases. Before you drop a load of your advertising budget on mobile, keep that in mind. Shopping on their phone is an incredibly small percentage of all retail sales.

But what about coupons they get on their phones and then bring into the store?

Here is the second statistic:

“Nine out of ten moms take notice of advertisements on their smartphones. One-quarter clicked to get a coupon after receiving a mobile ad and 15% of moms clicked on the ad to go to the website.”

In other words, almost all of the moms saw the ads, but 75% of the moms did not take the bait, 85% of the moms were not enticed to go to the website. Now, don’t get me wrong. Twenty-five percent is still a pretty good click-thru rate. But remember who is clicking – the Transactional Customer – the mom who believes she is the expert on the product and knows more about it than you do. These moms are loyal to one thing only – the deal. They have no loyalty to your store and only buy from you when you have a sale.

But aren’t all moms all about the price?

Here is the third statistic:

“More than half the moms, 53%, say coupons are appealing in a mobile ad; while 23% want a deal that is located nearby.”

Once again proof that roughly half the population in any category, including the technologically savvy new moms, is interested in the deal (Transactional Customers) and the other half is more interested in the trust factors (Relational Customers).

When you plot out your strategy, decide which customer you want to attract and proceed accordingly. While your competitors go after that 53%, remember that there is a lot of business to be done with the 47% who don’t find coupons on their phones appealing.

-Phil Wrzesinski
www.PhilsForum.com

PS Don’t think of me as anti-technology. Smartphones are here to stay. You need a website and it needs to be optimized for mobile. You need social media as one part of your relationship-building portfolio with your customer base – and many moms are using their smartphones as their primary tool for social media. You also need to be smart about where and how you spend your money. Your most loyal customers are not loyal because of your coupons, they are loyal because they trust you. Before you buy a mobile marketing plan, make sure you’ve put enough effort into building that trust and that the mobile plan reinforces that trust, not undermines it.