Tuesday, January 31, 2006

Getting Things Done

I just introduced a new program at the Seattle Gift Show this past weekend, which is a bit of a departure from the usual type of programs that I do on marketing and business building. The program was on organizing and controlling all of the things that a business person needs to do. I called the program “Making Your Success Happen”. What motivated me to do a program such as this is just having a great idea is only half the battle. As the quote goes, “It’s not how many ideas you have, it’s how many ideas you implement”.

It is important to understand that I am not the most organized person in the world. My desk is messy, my in basket is full, and I hate to throw things away. However, I am tired of trying to be organized using systems from people who were already organized to begin with! So it would almost seem incomprehensible that I would reveal a course of organizing and controlling the things that need to get done. The other reason that motivated me into tackling the subject of organization was because I am in the middle of writing a book on Ecommerce that must be finished before the end of March. This is one of the most demanding projects that I have ever undertaken because of the extensive research required in writing the book.

Let me share my 10 simple rules in organizing and I have to credit David Allen, author of “Getting Things Done” for the some of the inspiration. However, I have certainly modified many of his concepts to make them work for me. Here are my rules:


1. The Collection Vehicle. In this hi-tech world where I own 2 different computers and a Treo 650 telephone Palm pilot, I have come to the conclusion that sometimes a permanent notebook can be more powerful than the state of the art electronics. Let me explain. I like a notebook where you can’t rip out the pages, where yesterday’s to-do list is still available, where you can have a section of new ideas that you have learned about, and yesterday’s history is still there. My closest friend uses his computer to maintain all of the same information and after trying to emulate his actions, I have come to the conclusion that it is just simpler to manually control it.

2. Understand the concept of Do It! Dump It! Delegate It! Defer It!
Do It—means that any job that completed within 5 minutes should be done immediately.
Dump It—doesn’t mean to think about it later. Get rid of it now.
Delegate It—needs 2 more parts to it: to whom and when will it either be completed or reviewed
Defer It—requires the additional questions of why and for how long

3. Use your priority filter which must answer the following questions:
Are you capable of doing it?
Do you have the time available?
Do you have the energy available?
What is the importance level?

4. Create checklists rather than continuously making out to-do lists. Many of the things that we do simply repeat themselves and having a permanent daily, weekly, or monthly checklist can save lots of time.

5. Eliminating confusion on the to-do list. Many times just having a to-do list is not enough. Where we get bogged down is not knowing how to start a specific. If you have a to-do, take a few minutes to outline the actions required to get the task done.

6. Control your work instead of having your work control you. An illustration of this is letting phone calls go into voice mail and having call times when you actually call people back.

7. As you look at all of the things that you are trying to accomplish in one day, ask yourself the question: What items must I complete in order to have a sense of accomplishment?

8. Work your plan. So many people will spend the time to create their to-do list and then let a distraction mess up the schedule.

9. Is the juice worth the squeeze? In other words, is the benefit of what you are setting out to do actually worth the effort?

10. Review your list. Set aside the exact same time period every week to review what you have and have not accomplished. We succeed in controlling our lives when we see some success. Reviewing what we have accomplished will motivate you to do even more.

Friday, January 27, 2006

Signage for fun, influence, and more business

One of the biggest issues I deal with in working with the independent retailer, and one that has the biggest influence on a stores sales, is the issue of signage. Signage is a form of service. Signage is brand building. Its image creation and it can create an emotional attachment to a business. The most important advertising a plumber, landscaper, or any tradesman can have is the lettering and signage on the trucks. The most important thing a retailer can do is to create exterior signs that invite customers in their store.

Interior signage can even turn a store around almost instantly. It’s interesting that it has such an impact on the independent because they traditionally undersign their stores. Maybe it’s because they don’t have the sign making abilities that a larger store might have or they just a lack of understanding of how powerful signage can be. But whatever the reason, small stores can experience big sales increases with the right signs. On the other hand, the larger retailer has, in many cases, gone overboard with signage. Manufactures love to give the large stores signs about their products that smaller businesses aren’t offered. The bottom line is large stores have too many and small stores don’t have enough signs.

Signage makes it easier to shop a store. It can educate the consumer. It can say the things a sales clerk would love to say but don’t always get the opportunity to say. A good sign can set a mood and even have the customer buy more. We have all become visual learners because of the increase in computer use. A sign lets the customer feel in control and eliminates some of the frustration in shopping.

There are three basic categories of signage but many times they can even be combined.

1. Informative signage –where departments are, rest rooms, items etc.
2. Selling signage—These are signs that contain a sell word or phrase, such as New Arrival, Reduced to Sell, Soft Feeling Sheets. This category also includes any price propositions such as 20% Off, 2 for 1, 2nd One Half Price, etc.
3. Entertainment signage- This can range from a cute expression on a sign like, “Oops we goofed” to a picture of the product in use. Pictures are good but this is where humor and fun rule.

Let me share a few sign rules and guidelines that might help a bit.

Sign Rules:
1. Tell them where it is: Obvious but customers appreciate it


2. Tell them what’s new: New is a sell word because people want to know about what’s new and different. New Arrivals works but it is overused.


3. Remind people what they need: Customers appreciate this sell sign because it can be that friendly reminder that they might just need. An example is in a paint department reminding people they need brushes and a drop cloth.


4. Make pricing easy to understand: Customers don’t have time to play silly games with a sign that says savings up to 50% off, when the majority of the rack is only 20% off. You just turn people off.


5. Add romance—sell the sizzle. It’s not just a leather chair. It’s fine Corinthian Leather with that soft supple feel. It’s not a necklace, it’s a Show Piece Statement.


6. Explain what isn’t obvious-Sometimes the advantages aren’t obvious and we have to tell our customers. Examples include: Guaranteed for 2 full years. Impossible to Scratch. Lasts a life time


7. Inform the customer what they will save

  1. Money
  2. Time
  3. Aggravation
  4. The planet—Is it good for our environment which is becoming very important to some and should be for all of us?

If you are still not sure what to sign, then I suggest you just listen to the people who answer the customer’s questions. They will tell you what signs to use. Whatever you do, have some fun with them. Fun signs get fun responses and make for fun places to shop. Boring signs are boring. Let’s not forget our challenge will be how to keep customers coming back to our stores after they have shopped online. Signage is one of those tools that can help to bring back the fun in shopping in a “brick and mortar” store.

Tuesday, January 17, 2006

Why Do Your Best Customers Buy From You? … Revisited

Last week I did a full-day workshop on advertising and marketing for a small group of independent business owners. The goal of the program was to grow their businesses. We broke down the ways that a business could grow which are:

Sell new customers your current products or services
Sell current customers more of your products or services
Sell current customers new products or services
Sell new customers new products or services
Acquire another business

We were all in agreement that most businesses tend to focus on looking for new customers to sell them what you currently sell. In other words, we are on a constant quest for the new customer. And there is nothing wrong with that!
However, are we spending enough time looking for new products or new services? That’s why major corporations have Research and Development departments constantly looking for the next hot item that would appeal to existing and new customers.

I say that so that we all become aware of it. But the area that I really want to focus on is the area that seems to be neglected or at least taken for granted the most. That is our existing customers who already like or even love us.
When I asked each individual business the reason why their best customers bought from them and stayed with them, every single business replied with a common theme. This was “they like us” or there was some type of emotional connection or relationship that had been created. I expected quality or uniqueness but that was not what I heard.

That brought up the next question which was “what are we doing to or for our customers to creates that emotional attachment and build that personal relationship”? In most cases, it’s the little things that make the biggest difference in relationship building. These include things like remembering someone’s name and remembering and using personal information within conversations, such as “How’s the new car?” or “How’s the new baby?” or “How’s everything going with the new house?” Are we sending birthday cards? Or what is becoming the best form of marketing and advertising—the use of the friendly reminder, such as leaving a voice message on an answering machine that you have something that they might be interested in; sending someone an email about a new product or service; or being the source of information that will make your customer a better buyer.

The next issue in relationship building still comes back to likeability. What are you doing to be as likeable to your customers as possible? Are you listening to their wants or needs? Are you complimenting things that they do well? And lastly, are you focusing your efforts on the customer rather than on yourselves? Customers buy from us because of what we can do for them, not for what the customer does for us. What can you do this week that will strengthen your relationship with your customers and will have them love you and buy from you for life?

Send in your ideas and we can share them in the next column. I hope this will strengthen my relationship with you!

Monday, January 16, 2006

Testing 1 — 2 — 3

One of the things that never ceases to amaze me is how some of my tips get all sorts of emails, calls, letters, and responses from magazines that want to reprint them, while with others I wonder if anyone ever saw it. That shouldn’t be a surprise to anyone because some things work and others don’t. The problem is I can’t always predict the results. You would think after all of these years I would know the winners from the losers. I relate it to my days as a dress buyer for my retail business. As good as I got as a buyer, I could not determine in advance which items were destined to be the super winners or the slower sellers. During the first few years I felt I could easily pick the winners, but as I became a seasoned buyer, I realized that you never know what will catch on and you must leave your mind open and keep on testing.

That’s why testing and checking is such an important part of a business person’s life. We must include as much testing as we can in everything we do. Test merchandise, test ad styles, test various media, test prices, test displays, test colors, and test the quantities we buy.

This topic was motivated by two things. The first is a simple quote from an interview with Bob Kraft, owner of the New England Patriots, who’s considered one of the best team owners in all of professional sports. He was asked why he has been so successful in the businesses in which he’s been involved. He used an old, very powerful apparel maker’s expression “Measure 9 times and cut once”. Check, test, and check and test again before you commit. Are you testing and checking enough before you commit?

Having said all of that, sometimes you’ll still be surprised, just as I was shocked with the response from last week’s tip. I never thought that accepting the American Express Card would cause such an outpouring of extremely passionate comments on both sides. I couldn’t answer everyone, so first let me say thanks for sharing your point of view and your opinions. I just can’t believe what a polarizing issue this is.

I received comments ranging from “It’s about time someone came out in favor of the customer. We want our options.” to “Why should I finance someone’s trip to Hawaii?” Others simply said, “It cuts into the bottom line too much” and “Why should I accept it? After all everyone has a MasterCard or Visa.” Another person said that they just didn’t have time to reconcile another credit card.
One of the comments I liked the best was the person who said, “I hate taking Amex. I hate giving them the extra percentage points but the customers that use it really do spend more money. Amex says that but I didn’t believe them until I did my own comparing. It really is true. So it really doesn’t cost me anymore in the long run. Darn it! I wanted to throw them out but I would be cutting off my nose to spite my face.”

There were two other very interesting comments. One was from a furniture store that shared how they made a $20,000 sale furnishing someone’s new vacation home specifically because he accepted Amex. Amex has a card that gives back 5% on all purchases and the customer wanted to take advantage of that for a big purchase. He shopped around until he found a store that would accept it. That’s $1,000 rebate to the customer! (I want to find out about that card.) If you are selling branded merchandise that is sold by competitors, the Amex can certainly be a differentiator.

But the comment that I found most interesting of all was from the retailer who said, “What’s the big deal? I don’t pay anymore for my Amex than I do for MC and Visa. Sure they wanted more but I called and was able to negotiate the fee down.” How many stores even ask for a lower fee? That really made me feel stupid. I preach negotiate everything and I never even asked. Shame on me.
What’s the bottom line? Maybe you all should test it for a period of time and see if it makes sense for you. Are you having larger sales? Is it more work? Can you get a more competitive price? If it passes all of the tests then keep it. If not, throw it out. Just don’t say you don’t like it if you have never tried it. After all, my son hated pizza until he tried it. Now it’s his favorite meal.

Again, thanks for all of the responses. I don’t think this tip will cause as much commotion, but of course I didn’t think last week’s tip would either. You just never know!

On Meeting Customer Expectations

Last week I received an email from a reader that discussed one of my favorite pet peeves. It was about something that many small stores do to their customers. It concerns the issue of accepting the American Express Credit Card. Some stores would rather avoid taking Amex because the merchant charges are often higher than those of other credit card companies. My feelings are that the Amex customer is a very good customer and if you say you are going to accept it, then accept it with out a song and dance. I was so impressed with the way the email was worded that I asked Hillary Moulliet from Mathews, North Carolina for permission to use her comments as this week’s tip.

Thank you, Hillary. As you read the following, please think about what good service really means.

I was recently in a small gift shop and overheard an exchange between the sales clerk and customer. The customer was paying for her purchase ($140 worth) and gave the clerk — whom I later learned was the store owner — her American Express card. "Oh, do you have another card?" she asked the customer. "They (Amex) charge us higher fees and they take a long time to deposit the money in our account."

The customer said (somewhat reluctantly) "okay" and gave her another credit card. The clerk then continued to explain further why they don't want people to pay with Amex.
I'm listening and shaking my head. Would a baker have German Chocolate Cake on his menu and then tell a customer that it's too difficult to make so would they please order something else?

Rick, this is not the first time I've heard this. If you promote something in your store — anything — you should follow through. Will that customer in the gift shop return because of that incident? Maybe. But I also know how important the credit card bonuses, travel miles and cash back deals are to people and she may reconsider.

Thank you for your time and all the best for a wonderful 2006!

Neither Hillary nor myself work for American Express, but I do make 95% of all of my purchases with my American Express card. Yes, I have lots of bonus points but I prefer American Express because I’m not tempted to make a minimum payment. I just like paying my bills when they happen.

However, knowing that American Express users generally buy higher priced items and more of them, the next time you sell to an American Express card holder, perhaps it is better to suggest another item they might like to add to their purchase rather than complain to them about Amex. Another thing you can do is to contact American Express to obtain the mailing list of Amex card holders in your marketing area and promote just to them. I have done this with amazing results. A few years ago Amex would even help prepare the mailing piece and do the mailing for you. They did charge for these services and yes, their fees are higher than the average printer and mail house. But who cares when the results more than offset the higher cost?

Thanks to Hillary for the inspiration. I invite other readers to share experiences for all of us to learn from. Good work, Hillary!