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Listening Your Way to Better Sales

“The fool speaks, the wise [business]man listens.” -African Proverb

Here is one tip to increase your business this year. Are you listening?

Be a better listener.

What your customer is saying is extremely important. Over-the-top important. It is the center of her universe and the whole reason she is in your store trying to give you money.

But she won’t give you that money if she doesn’t think you’re listening.

Be a better listener.

“It is better to listen in order to understand than to listen in order to reply.” -Anonymous

Here is a simple little game that I did with my staff to help them focus on listening…

Have your staff pair up in twos. Have the first person tell the second person what he or she likes most about working for your store. The person listening must repeat back what the first person said. If the second person gets it right, then the second person can share what he or she likes most about working for your store with the first person repeating it back. Then each pair must stand and tell the entire group why the other person likes working here so much.

The repeating it back is the key. To be able to do that, you have to listen to understand, not simply listen to reply. The goal for each staff member is to repeat back every question or important comment the customer makes this month. The more they do it, the more they get into the habit of doing it.

Repeating back to the customer what she just said might seem annoying, but it actually serves three distinct purposes.

  • It helps to clarify the customer’s concerns and make sure you got it right.
  • It gives you an extra moment to think about your response
  • It helps the customer trust that you are paying attention, are in the moment, and have her best interests at heart.

It is a simple acknowledgment that goes a long way in building the long-term relationship you want with your customers. Now, repeat this all back to me. (Paraphrase if you’d like. That is perfectly acceptable.)

-Phil Wrzesinski
www.PhilsForum.com

PS There is another benefit to the training I did with my staff. I had each staff member verbalize why they like working for me. Then it was verbalized two more times, reinforcing it even more. Plus, by verbalizing it to the entire group, everyone got reinforcement for why this is such a great place to work. Oh, and if someone cannot come up with a good reason for why they like working with you – fire them!

Setting Yourself Apart From the Pack

I read a fascinating book called Built to Sell by John Warrillow. The book is a business parable about a guy who owns an advertising agency and wants to sell it. His mentor shows him how to transform his business to make it salable.

Most retailers would dismiss the book because on the surface it doesn’t seem to apply. The first step is to limit your focus to only that which you do better and more profitable than anyone else so that you can create a turnkey operation. That doesn’t translate well to indie retail.

But there is a lesson hid inside there that we all can use.

Maybe you cannot change your product mix to become the leader of the pack, but you certainly can change your services. In fact, you can change them so radically that you become a category of one (another good business book worth reading).

Simply decide which customer subset you want to cater to, and then cater to them at the exclusion of all others.

Roy H. Williams calls this “choose who to lose”.

For instance, you could decide you only want to cater to the uber-rich. You’ll probably want to change some of your product, but to truly capture that customer you’ll have to totally change your services. Hours by appointment only. Red carpet ready and waiting to be rolled. Soft sofas and chairs for seating. Food and drinks served. A personal shopper to bring the items to the customer. Private showings for her and her friends at her penthouse.

Or you might be a toy store that caters to the daddy crowd. That might mean beer and pizza and big-screen TV’s, pre-wrapped gifts, diaper changing service, plenty of activities to keep the kids occupied until the game is over.

Do something like that and instead of the kids clamoring to go to the toy store, dad will be suggesting it during breakfast.

While it is getting more and more difficult to separate yourself just on the products you carry, this age of self-serve checkouts leaves you a ton of room to separate yourself from the pack by the services you offer.

Who are you willing to lose to win the heart (and pocketbook) of someone else?

-Phil Wrzesinski
www.PhilsForum.com

PS We started with the bargain hunter. I don’t match prices or run coupons or special deals just to entice people in the door. Yes, we have a clearance sale to move out the dogs, but that’s it. We instead focus on customers looking for trust. There are plenty of them out there.

My Three Biggest Facebook Posts This Year

This year I have had three totally different Facebook Posts that stood out among the rest.

The first was this…

Can you all help me out? 

I need to hype up our JUST FOR FUN SALE that starts this Thursday 9:30am to 6pm.

Hundreds of great toys, hobby and baby products at deep discounts including LEGO and Playmobil, including ride-on toys and summer toys, including board games and puzzles, including dolls, including tons of arts & crafts, including bedding and feeding accessories, including a whole lot more.

Please hit the Share button and help me spread the word.

Thanks! You are the best fans ever!!

That post had a reach of 7,316 people (yet we only have 2890 fans). I got 179 Shares from that post. I had engaged enough with my fans that when I asked a favor of them, they responded in a big way! They responded because I had built up trust. I can’t go to this well too often or I’ll lose that trust and they’ll run away.

The second was this one…

We have a whole bunch of pallets from the many great shipments we have received this winter. Anyone want them? (please?)

There was also a picture of the pallets. Within 17 hours the pallets were gone. Total reach 4,136, including 48 shares. (My dad would say this just goes to show that any fool can give it away.) 

The third was this…

A crib mattress shouldn’t do this.

You shouldn’t be able to fold it in half with one hand while you take a picture of it with the other.

Your baby needs a firm flat surface for sleeping for a number of reasons… skeletal growth, proper breathing, protection from Sudden Infant Death Syndrome (SIDS), etc. The more firm, the better.

Don’t take my word for it. The American Academy of Pediatrics says it, too. So does every other organization interested in the health of your child (The Danny Foundation, First Candle, SIDS Alliance, et al)

Firm mattresses don’t fold in half as easily as this one did. 

When you go shopping for your nursery, there are three things you don’t want to skimp on – the crib, the mattress and the car seat. 

We won’t let you get a mattress that won’t be safe for your child. Apparently other stores don’t feel the same way as we do.

There was a picture of a crib mattress being folded in half with one hand. This reached 3,518 people including 28 shares. There was an emotional edge to the post. Baby safety is a hot topic right now. Hit the right emotional topics and you’ll see a lot of interaction and engagement.

Note than they all had a different style. They all also reached way more than 100%. One was asking for help. One was giving something away. One was sharing information.

The point to take away from this is that variety is the spice of life. Mix up your posts. Don’t make them all the same. Try new things and measure the results. When you find something that works, use it, but not too often.  Engage, engage, engage. Give your fans something shareworthy, regardless of whether it is about selling your store or your products.

-Phil Wrzesinski
www.PhilsForum.com

PS There are easy ways to “beat” the Facebook Algorithm. My FB posts for Toy House regularly reach 50% or more of our fan base. Click here to find out why.

People Do Business With People

A friend of mine is going through a change with her business. She opted out of a franchise agreement and is now going independent.

She had a momentary bout of panic when the franchise webpage listed her store as “closed”. She wasn’t closed. She was open. Just doing business under a different name. How were people going to find her?

After we discussed all the steps for getting the new name out (press releases, ads, new website, owning her Google Place, contacting her networks to update her info with them, emails, Facebook, Twitter, etc), I reminded her of one simple thing:

She was the same person doing the same business in the same location with the same Core Values and the same vision and mission.

None of that had changed. And by her own estimate, 90% of her customers did business with her, not the name on the sign. All the extra advertising and on-the-pavement sales she had planned for the transition would help her pick up that other 10% in no time at all. In fact, based on what we discussed, I expect she’ll be at 110% within a couple months.

People do business with people.

You can do all the advertising you want, but if your people aren’t performing, your business will suffer. Likewise, if your people are outstanding, you can overcome almost anything. It is your people that get customers to come back and bring their friends.

Put your money into your people and no matter what curve balls come your way, you’ll knock ’em out of the park.

-Phil Wrzesinski
www.PhilsForum.com

PS Put more emphasis on hiring the right people to begin with. That makes the training easier. Yes, training. If your business relies on repeat and referral traffic, your training budget should far exceed your advertising budget.

Many Happy Returns

Returns are one simple way to set your store above the rest in terms of customer delight. The more you can do to make a customer happy while making a return, the better.

Here is what I reminded my staff regarding returns…

MANY HAPPY RETURNS

Actually, we hope we have very few returns, but we do know we will have some returns. I want all of them to be as happy as possibly. Here are some ways to make them Happy Returns.

Yes, we will take it back! Don’t worry about the customer’s motive, whether it is opened/damaged/re-sellable, etc. First and foremost make the customer happy by saying yes. Some items we can re-package to sell. Some we will get credit from the company. Some we can steal parts from to fix others. Some we can use as demos. Some we can donate to places that take used toys.

Yes, we will refund your money! If you have a receipt. Otherwise we will gladly give you a store credit good on anything at any time. This is one area where you might get someone demanding money back even without a receipt. If they are being really pushy about it, just give them cash back and send them on their Merry Way. (Get them out of the store as soon as possible.)

Apologize! Someone is bound to come in saying we ruined their Christmas because we sold them an obviously used/broken toy. Well, no, we didn’t. Not on purpose. But that doesn’t matter. Apologize. Say, “I’m really sorry that happened. What would you like us to do to fix this?”

Fix it! This can be tough. We might be out of what they need. It might be a part that needs to be ordered. But do whatever is in your power to fix it.

If we have the item in stock—swap it out for them, parts or the whole thing, whichever is easier.

If we do not have the item, you can offer to order replacement parts. Often we can order them directly through the company and have them shipped to the customer. You can check online or on the phone while the customer is right there.

If we cannot order the part or replace the product, offer them a store credit or a refund. But most of all apologize.

Remember this order…

  1. Make the customer happy.
  2. Tell me later what you did.

-Phil Wrzesinski
www.PhilsForum.com

PS You might not make everyone happy. There are always unreasonable people and just plain rude people. If you have tried your best and nothing seems to be working, do whatever it takes to get them and their negativity out of the store as fast as possible before they infect anyone else. Take the loss if necessary. Handle it with professionalism, kindness and respect regardless of how they treat you. Remember that other customers are watching and judging you and your character. Show them what you got!

Make the Guys Happy This Week

Starting today, the guys are hitting the stores. We are last-second shoppers by nature. Ladies shop fifty two weeks a year. The men? Ten days tops. Although I won’t speak for all guys, here are three things you should do to maximize their transactions.

  • Limit their choices. Guys don’t want to make too many decisions. Bog them down with lots of options and choices from the get-go and you might not get them to go to the checkout. Show them the best in the category. If they balk at that option, find out why and show them one other option. Show them one option at a time until they buy. But always start with the best.
  • Make them feel smart. Don’t question their judgment. Don’t use big words or insider terminology. Explain things in a simple, but not condescending way. Ask only the necessary questions. Let them do as much of the talking as possible. Reinforce their statements and beliefs. You will win their trust and their wallets.
  • Offer them time-saving services. Do you giftwrap? Assemble? Deliver? Guys are willing to pay extra for time-saving services and conveniences. Tell them all that you can do for them. They won’t ask, but they will say yes when you offer. Guys are the reason the “convenience store” concept even exists. Anything to save a few steps, a few minutes, a few hassles.

Guys want their shopping trips to be smart, fast, and hassle-free. The best way to maximize these final days of the season is to be ready for the guys. They should start arriving this afternoon.

-Phil Wrzesinski
www.PhilsForum.com

PS One more thing you can do to help the guys – refresh your signage. According to Paco Underhill’s book Why We Buy, guys are the number one reader of signs. According to Rick Segal, signs increase sales by 43%. According to Phil Wrzesinski, Introverts (50% of the population) are the #2 reader of signs.

Treat Your Sales Reps as Partners

The dreaded sales rep. We all have one. Maybe more than one. The rep that just doesn’t get you or your business. The rep you wish didn’t get all the good lines. The rep who makes you wonder if they even care. The rep that makes you roll your eyes just setting the appointment.

Then there is the good rep. The one who gets it. Who gets you. Who anticipates your needs. Who knows your style, your store’s style, your store’s goals. Who you can’t wait to work with again.

My buddy Tim Miles illustrated the difference between those two reps – the order taker and the true partner.
Much of the burden on becoming that good rep belongs to the rep himself. He has to want to be your partner.

But I wonder if there is not also some burden on us.

Do you treat your rep as a partner or an order taker?
Do you share your goals for the store – especially for that line of products or services – with the rep?
Do you share your visions and philosophies with your rep?
Do you share the responsibility of all the work with your rep – or do you expect them to do all the heavy lifting?
Do you take them out to lunch instead of expecting them to always buy?
Do you listen to their suggestions?
Do you even ask for their suggestions?
Do you consider them to be part of your team?
Do you offer them the some of the same benefits you offer your own employees?

There is an anonymous quote that says, “Your customers will get better when you do.”

I think the same applies to our reps.

-Phil Wrzesinski
PS I offer all my product sales reps the same employee discount my staff gets. It is just one way to make sure they understand they are part of my team.

Redefining the Terms

You don’t sell products. You sell feelings.

The jeweler doesn’t sell diamond rings. The jeweler sells the look on her face when he opens the box and asks, “Will you marry me?”

The shoe salesman doesn’t sell shoes. The shoe salesman sells the bounce in your step and the self-confidence you have when your feet feel good.

The toy store doesn’t sell toys. The toy store sells play value and imagination and creativity.

You and I get this. Our customers don’t.

Not because they can’t, but because the big chains won’t let them. Especially the discounters. They are trying to commoditize everything you sell. Make it all about the price. It isn’t about which toys you buy, but how many. The big chains know you can outperform them on getting the right items. They want to make sure the customers don’t even think about that. They’re winning, too, because we allow them to control the conversation.

They talk about the products. We talk about the products. We’re speaking their language. We need to instead talk about the feelings.

We need to talk less about the products we sell and more about how our products make the customer feel. We need to talk about the emotions behind the products, the emotions behind the purchases, the feelings we create.

We need to bring the importance of the purchase, the reason for the purchase back to the forefront.

When you write your ad copy, whether for print, broadcast or social media, ask yourself two questions.

  1. Is this copy about the product or the feeling?
  2. How can I make it more about the feeling?

The more you do that, the more you change the conversation back to one you will win.

-Phil Wrzesinski
www.PhilsForum.com

PS For example, here are two radio ads I have run this fall to change the conversation. These are the left-brained, logical ads. The more emotional ads run next month.

We Sell Play Value
Over the next couple months a bunch of stores will start advertising to you about toys. They’re talking about the wrong thing. You don’t buy toys. You buy Play Value. You don’t buy toys; you buy creativity and imagination. You don’t buy toys, you buy engagement and fun. You can forgive them for not knowing this. They only sell toys part time. We sell Play Value all year long. That’s why you shop at Toy House and Baby Too in downtown Jackson. We’re here to make you smile.

Made Up Lists
Fortunately, you guys are smart. You know all those Hot Toy Lists are fake, phony, decided in some backroom meeting months ago. Designed to get you to buy what they want to sell. As if your kids were sheep and only happy if they got one of the “hot” toys.  That’s not you. That’s not us. We aren’t going to hype you into buying what we want to sell. We’re going to help you find what works best for you. Over twice the selection of the big chains, ten times the play value, and none of the hype. Toy House in downtown Jackson. We’re here to make you smile.

Broken Communication, Broken Trust

One of my employees bought a new house. She got bombarded with the typical mail a new home owner gets. Tons of offers for phone and Internet and cable services. She received close to a dozen offers from one particular company for her cable and Internet.

She finally decided to talk to an agent. You all know how that worked out.

The great offers in the mailings were nowhere to be found in the offers made by the agent. In fact, he seemed to have no clue about them and wasn’t about to go find out.

Words like slimy, snake oil, scam artist, and bait-and-switch come to mind. Definitely a huge lack of trust.

But what if he just didn’t know? What if no one in marketing had told him about the great deals they were mailing out to potential customers? What if no one had trained him well enough to know where and when to check for special deals? What if no one had followed up to make sure he was aware of the current programs?

What if you told your customers about a great deal or announced a fun event on Facebook and forgot to tell your part-time high school kid who only works nine hours a week? Forgot to inform the weekend manager who had been on vacation?  Forgot to train your seasonal staff to read the promotions book at the beginning of each shift?

Can you see how trust can be so easily broken?

My general optimism would like to believe that what my employee experienced with the cable company was nothing more than a communication problem between marketing and sales. Whether that is true or not, at least it is a lesson we all can learn.

If you’re planning an event or a promotion. Make sure everyone is in on it and knows ALL the details. The trust you’ve already worked so hard to earn depends on it.

-Phil Wrzesinski
www.PhilsForum.com

PS Your entire reputation can hinge on the actions of one employee to one customer. Bad will spreads much more easily than good will. That’s a lot of pressure to make the right decisions in the hiring and training process. If you haven’t yet read Hiring and the Potter’s Wheel: Turning Your Staff into a Work of Art, now might be a good time before you start hiring for the holidays.

More Than a Fair Exchange of Value

You all know I follow a bunch of blogs. You’ve probably read a blog or two on my blog roll. I read them because they challenge me. They challenge my thoughts on retail. They challenge what I think I know. A few minutes ago, I read this on a blog about Customer Loyalty.

5) Deliver a “fair exchange of value”. Too often retailers want to create “delighted” customers. Many retailers spend far too large a percentage of their revenue trying to create “delighted” customers. The reality is that customers want a fair exchange of value and rarely expect a retailer to delight them. Give them a good value, provide a comfortable and efficient shopping experience, work with them through any issues, solve their problems, and they’ll become not just loyal, but committed.

Can I agree to disagree?

Yes, customers expect a fair exchange of value. I grant that. But a fair exchange of value is the minimum. It is the bar. You have to do that just to keep them from flaming you on Facebook or Yelp. Do anything less than a fair exchange of value and you’re screwed. It is the lowest level of entry into the game.

Customers expect a fair exchange of value from frickin’ Wal-Mart!

If all you give them is a fair exchange of value, then you’re no better than Wal-Mart. And in today’s retail environment, that is not good enough. It might get you a thanks, but it won’t win you loyalty.

After you give them a fair exchange of value, you have to delight them. You have to make them say WOW! You have to make them think of you not as a store, but as their new bestie. You have to delight them to the point they cannot wait to tell their friends, tell their co-workers, tell their family.

Loyalty doesn’t come from a discount or cash back. You aren’t loyal to your friends or family because of the financial kickbacks. You’re loyal because of your shared values. You’re loyal because your friends and family have your back. You’re loyal because at the end of the day, you know those people care.

If you want loyalty from your customers, you better first give them a fair exchange of value. Then you better have their backs, you better share their values, and you better care.

My own personal belief is that too often retailers don’t do anywhere near enough to delight their customers. Yet that is where the loyalty is hiding.

-Phil Wrzesinski
www.PhilsForum.com

PS This doesn’t mean I’ll stop reading that blog. There is always something to learn. The true key phrase in that passage above is, “Customers… rarely expect a retailer to delight them.” Just think how much you will stand out in the crowd when you’re the exception to that rule.