Tuesday, August 29, 2006

Asking Your Customers … How To Do It

WOW! That’s two weeks in a row that I am WOW’d by my audience. Last week I offered a challenge to the readers of this column. I questioned how they asked their customers for their opinions and what effect it had on their businesses. In return I gave them an electronic copy of my new book, The 5000 BEST Sales & Promotional Names Ever Compiled.

This is what I learned. First, I have people all of the world reading this column. I got responses from Australia, Turkey, Canada, Mexico and 20 different states in the US. I got responses from more than just retailers. I had other consultants, downtown managers and organizers, politicians, mall managers, and of course retailers from almost every type of retail that you can think of.

The second lesson was the almost unanimous agreement about the importance of the premium or reward for information. Many people might be good intentioned but without the reward somehow they just don’t find the time. The rewards range from a 50% discount on one item in the store to a free cup of coffee. Before you think the 50% off seems like too much, the business owner said that it has paid for itself in great advice and customers have a sense of belonging or ownership. Many businesses give % off discounts (only one at 50% off), some give a fixed dollar amount gift card, some buy lunch, pizza, ice cream cones, and one person owns an espresso bar where she freely picks up the tab for good information. So my book offer was the right thing to do!

Third, almost all the responders commented on how they learned things they never expected. (Just as what happened to me.) One person realized that the only reason why most of their customers shopped the store was because they were simply more convenient than any other card and gift shop. It was the wakeup call he needed.

One of my “old” readers (as she says—nothing to do with age), Jenny de Greenlaw from the Australian Department of Regional Development, shared that she had two different types of customers--the main street merchant and their customer. She uncovered a disconnect in what both groups wanted. The merchants said the problem was parking and kids hanging around downtown but the customers said the stores were giving poor customer service and had terrible window displays. Her challenge become bringing the groups together.

A few businesses mentioned that they teach people how to use the products they sell. Another store was shocked when they asked one older woman who already loved the store and from whom they didn’t expect to get much feedback. This sweet little old lady was a retired extremely successful high fashion retailer who had so much to share and made a dramatic effect on the person’s business. Who said you can’t be sweet and shrewd?

One other comment worth mentioning was from a heating company which was then reinforced by another person. They learned that the most constructive criticism comes from the people who love us the most.

The next thing I learned was the various questions people ask and how they ask them. Many people will ask the customer after the sale has been made at the counter, some send out questionnaires, some send post cards (although the reader admitted it didn’t work that well), some have suggestion boxes, some have quarterly dinner meetings with 10 good customers where the business buys dinner and asks the group a series of questions that give the business the best advise they could ever get.

One business has a desk with pictures of merchandise and asks the customer if they should or shouldn’t buy it. If they like it, they can even put their email address down to be informed when the merchandise comes in. Some owners call up customers after they have purchased for their feedback.

I suppose I was surprised at the number of different ways people ask their customers but I wasn’t as shocked with was the questioned asked. Here is a partial list:
  • How is my marketing and advertising working?
  • How do you describe my business to your friends?
  • What is the thing you liked the best about your shopping experience?
  • What is the thing you liked the least about your shopping experience?
  • If you ran my business, what would you change?
  • Who is the best person I employ and why?
  • What kind of product should I be buying?
  • What did you think of the displays?
  • What are the 10 best things we do? (That’s a lot but they paid $10.00 for it.)
  • A scrapbook and paper store asks customers for suggestions or things to do with new papers that just came in. (Great idea--ask your customers for newways to use what you sell. Example, a restaurant asking for recipes.)
  • What things do other stores have that we should have?
  • How can we increase the level of service for you?
  • How much is too expensive for certain categories?
  • What would you consider a really cheap price for the category?
  • Do you care about what celebrities have it?
  • Tell me what I am doing wrong?
  • What are we doing right?
  • How can I get you to use my website more?

These are some great ideas but another idea someone from Canada suggested was using www.surveymonkey.com to create a 10 question survey on your website. They are easy to create and the last time I checked many of their surveys were either free or at a very small fee. They are fun to make.

This has just been an awesome experience. I wish I could have personally written to everyone to discuss what they wrote about but there isn’t enough time in the week (or month) to cover everybody. Let me just end this column the way John Barron from Barron Heating ended his email to me. “In conclusion I truly believe our customers will give us everything we need to run great businesses if we just take the time to ask them their experiences with us and any ideas they have that will help to make us better.”

Thanks John-- it doesn’t get better than that!

Wednesday, August 23, 2006

Why Don’t I Listen to My Own Advice?

I had another breakthrough--another one of those Eureka moments that I get from time to time when I learn something new or discover a new way of doing something. The interesting thing about moments like these is that they usually happen when I am willing to take a risk or willing to try something different. But that’s one of the learning points of the experience. Now, on to the story.
I was doing my newest seminar, which I love, about the Power of Signage in a retail business. It’s about the effective use of both interior and exterior signage. I like it so much for two reasons: first, the sales increases are immediate and second, because the sales increases can be significant. A great interior sign can increase the rate of sale of the signed product by as much as 100% instantly. Yet it remains one of the most misunderstood areas in retailing today. Then, when you talk about the effects of exterior signage, it becomes mind boggling.
As you can tell I am very fervent about this topic. But I realized after doing this passionate talk and sharing ways to accomplish these lofty goals, I have never put a sign on the books or CDs that I sell in the back of the room. So I took my own advice and I asked my audience what type of sign I should have on my products and what benefit statements or sell words I should put on my display that would motivate them to buy. Then I asked what type of price proposition I should put on the sign. Finally, I took the risk and said I would honor any reasonable suggested pricing.


One person said, “Buy one and get the second book at half price”. Then someone said, “Why not two books for the price of one, paying for the higher priced product” and again I agreed. Then from the back of the room someone said, “What if I buy 3 books at regular price? Will you give one free telephone consulting session?” Again, I agreed as long as they called my office to set it up, sent me pictures of the store, and created an agenda to follow.

When I finished, I couldn’t believe what happened. First of all, I sold out of every book I had and ended up having to ship some. However, 95% of the people didn’t opt for the 2 for 1 but rather chose the full price alternative with the consulting call. If you are thinking that I am giving away my precious time, that is not the way I look at it. I love helping people--the calls will be on my schedule and think of the potential of the wonderful, rich, real live scenarios I can use (anonymously of course) for learning examples and possible articles. Then, there are also the possibilities of additional business, such as public seminars or mentoring programs.

My mission and/or purpose is to make a difference in the lives of retailers. I couldn’t think of a better way to accomplish this goal. Then I said to myself that if I am so smart and have made so much money for so many businesses, why didn’t I think of doing this myself? The answer to that rests in the learning points of the experience:


*The turtle only moves forward when he sticks his neck out.

*Take a chance.

*Sometimes we are just to close to a situation to see the true goal.

*Ask your customers - Ask your customers- Ask your customers

*Offer a reward worthy of getting involved



You can’t believe the information you will receive if you just give your customer the opportunity to give you input. The topics can range from the products to carry, to policies to follow, to ways to price your merchandise, and to what I have preached so often in the past—your customers can provide you with the best advertising copy by just asking what your business means to them.

I have recommended asking for years but why didn’t I ever ask my customers? Shame on me! What can you ask your customers that would become a win/win for all and how would you ask them?


Next week I will share ways to ask your customers, but first, could anyone reading this article help me with the ways you have asked your customers? I will share them with everyone. Oh, I forgot one thing--the reward. I will send a free copy of my new book, “The 5000 BEST Sales & Promotional Names Ever Compiled”, in the electronic download version to anyone who sends in an idea. I can’t wait to hear from you and thanks to that lady in Seattle who made the suggestion.

Tuesday, August 15, 2006

Have You Ever Just Snapped?

Have you ever picked up the closest thing you can, throw and hurl it across the room and even break it? Did you ever just yell out, “I’m mad as hell and I’m not going to take it anymore” like in the movie Broadcast News? Did you ever have a customer push you to such a point that you start to lose it? You know they are being unreasonable-- but it still gets to you. Did you ever do something for someone and never get a thank-you?

Well, if you haven’t experienced any of these incidents, then you probably have lived in a monastery in the Himalayas for more than 10 years. As for the rest of us mere mortals, let me share my feelings on how to cope and why this concept is even being discussed in my column.

Let me explain why this topic belongs here. If you are in the retail business or any other business, you realize that it’s the little things that can affect us more than the big things. I have seen more deals blown because the two negotiators just didn’t like each other (perhaps one was a snob or pushy or parted their hair the wrong way). It had nothing to do with the quality of the deal. This is business. Dealing with emotions is just as important to a business as the quality of the product, the speed of the delivery, or the price. So why do so many people simply choose to ignore them or trivialize them? Why do I even have to explain why I am writing about this? It must be addressed. We must learn to put things into perspective and realize what some feelings and emotions mean and do not mean.

When someone is asking for a better price, many of us (myself included until I learned this tactic) get insulted or all huffy about the request. We become offended or even insulted. Grow up-- it’s just the way some people do business. After all Donald Trump did it for his own wedding. Simply smile and compliment the customer on the excellent way they asked. Even tell them that most people don’t ask and you respect someone who is smart enough to ask. Then use the magic words, “I wish I could” or “Wouldn’t that be great if I could”. You are showing empathy and most customers will never give you another problem. Some will continue and that’s OK, and the more they ask the more you compliment and the more you smile.

When a customer is totally being unreasonable and is just complaining for the sake of complaining, DON’T SNAP! Let them complain themselves out. Maybe they are just the type of people who love to complain. Ask them to repeat the complaints so that you can better understand them. Ask if there is anything else without being patronizing. If they are stilling being obnoxious, then you MUST understand the Rule of 4%. That means that 4% of all the people we deal with belong to the P.L.O. (Pushy Loud and Obnoxious) and we will never satisfy them. Don’t snap over this group because if you do they will only criticize you for not being able to take it. They just aren’t worth it.

Sometimes we overreact. We might be tired, hot, aggravated, or even have taken too much cold medicine and we react in a way that is uncharacteristic of our normal behavior. Realize it and tell yourself you will respond in an hour. My self talk is “don’t say anything now that I might regret later”.

Then there are those times which become defining moments in our lives when we make decisions that can last a lifetime. For example, when a boss pushes so hard that you decide in an instant to go into business for yourself. My mother asked for a $5 a week raise from a job where she worked 55 hours a week without overtime pay and had just been complimented on an outstanding performance. When she was denied the raise, she was so infuriated that she quit and opened her own store that made her financially independent. This business lasted for 58 years. Her best friend also worked in a similar type of store but her boss was wonderful and gave her raises even before she asked. Although my mother’s friend was very bright and well educated, she ended up working for someone else her whole life and died financially dependent. If my mother hadn’t lost it, she would have never had the courage to try to do what she did. (What a stupid boss!)

There are other times when we snap and regret that we did. Those are the times we begin to understand what the term “cool under fire” means. However, those times can also define our lives because they can help us find our true friends—people who deal with it and accept us for who we are. Maybe that’s what real loyalty is all about.

Just remember one thing. Losing it from time to time is normal and natural but how we handle it makes us who we are.

Tuesday, August 08, 2006

Let Your Fingers Do The Shopping …and they really are!

Did you ever have a revelation? Sometimes it’s a glimpse of the obvious; sometimes you feel dumb because you wonder why you didn’t think of it before.

While preparing for an advertising workshop that I was doing with two other presenters, one of the presenters made an offhand statement that stopped all of us in our tracks. (For background information, we were working on a presentation for the electronics and appliance retailers. The normal shopping pattern when buying an appliance is for the customer to first check out the store and pick up some brochures on the initial trip. Then if the store makes the cut, the customer will buy on the second trip.). We were talking about the effects of ecommerce on business when someone said, “The internet has eliminated the first shopping trip and the brochures”.

No kidding! Of course it had to because people now do their homework first--they do the comparison shopping online and then they buy. That’s why more people than ever before are buying on their first visit to a store. That’s why they are bringing their own brochures that they had printed themselves from various websites and downloads. That’s why we are seeing better informed and knowledgeable customers. Sometimes the customer even knows more about the product than we do. But it’s not just in appliances. It’s in almost every type of retail. People are spending less time in stores than ever before because they are spending time online first.

So what’s the revelation? What’s the big deal? The big deal is if you want to compete in today’s competitive marketplace you must be aware of and prepare for this new shopping pattern.

First, when someone searches in Google for what you sell, does your name come up on the first or second page? If not, you didn’t make the first cut. And I don’t care how it comes up, either with a pay per click ad or a natural search. (If you don’t understand the term “pay per click”, then you are missing the boat on one of the most powerful forms of advertising ever created. Do your homework—it’s important to the survival of your business.)

Step Two occurs when the potential customers land on your website. You have less then 8 seconds for your website to grab them. That first page had better answer the question they have about your product or you—and quickly or that customer will just click away. The customer doesn’t want to know how wonderful you are or doesn’t want to see some animated show or listen to your favorite music. He just wants to know if you can do something for him. Now if you pass that step you better be ready for the next step.

Step Three. You must now have all of the information that the customer wants and needs and it must be in a user-friendly style. You must show the merchandise and explain why it is the best choice for a certain customer. You must have all the necessary links and position your business as the expert in the category.

Step Four. You must have some way of collecting their email addresses to be able to send them additional information about what they are looking for and why you are the right choice to do business with. This is even a good place to make a free offer--something of value, such as a Guide to shopping for ….. A report about something you sell or even buying trends. The goal is to create an attachment to the customer.

Years ago, Yellow Pages did an expensive national ad campaign about letting your fingers do the walking to get people to use the Yellow Pages. It was clever copy but it only allowed you to shop for a store. Now your fingers can actually shop for the product. So my colleague was right-- the internet has eliminated the first shopping trip. The next issue is that it is also eliminating the second or any other trips at all. But I will save that subject for another day. The bottom line is when customers come into your business, they might tell you that they are just looking, but chances are their fingers have probably done a lot of shopping for them already. Our patterns have changed.

Wednesday, August 02, 2006

Random Acts of Kindness Strike Again... A Marketing Tool To Consider

It happened again! My wife and I went shopping, although it was more like doing errands because it wasn’t the casual stroll through a shopping area but rather a firm list stores to visit. One of the stores that we had to stop in was a woman’s specialty chain. Actually, we were going there to return a couple of jackets that my wife had decided against, but of course she was open for any new ideas. So she poked through the racks and came up with a couple of smaller items she wanted to purchase but the net effect was that there would be a refund coming back to her.

When the cashier processed the sale, she stopped in the middle of the transaction at the register and announced that my wife was selected for a “Random Act of Kindness Coupon” which was worth $25. Of course that news spread through the store like a virus in a computer. All of the customers and sales associates were congratulating my wife like she had just won a jackpot in Las Vegas. She came over to where I was sitting and she shared the news as if she had won the lottery. She then mentioned that it was too bad that we had so many errands to do otherwise she could spend more time shopping, but she did start to plan when she would return to spend her $25.

Let’s break this down: she returns something to a store, they didn’t have anything that appeals to her of equal value, she buys a couple of inexpensive tops, gets her refund but leaves feeling badly that she didn’t have more time to shop and is planning her next shopping trip to the store. That $25 WAS A VERY GOOD INVESTMENT.

One of my basic tenets of retailing is “If you want word of mouth advertising (and we all do), then give them something to talk about”. This random act of kindness campaign is one the best examples of that concept. It got me talking about it --even enough to share this story with a few thousand of my closest friends. How many other people have shared a similar story with friends?

I have seen this done with gift certificates which were sent out randomly via mail or even e-mail. Readers of the column might remember when American Airlines greeted me at my gate with a golf cart ride to my next gate on a connecting flight through Chicago.

What makes this so special is that it happened at the cash register. I don’t know if it was planned to occur when the store was busy during a prime time period but if it wasn’t, it should have been. I would hope that any active customer in their data files might have been selected. This concept is brilliant.

Even banks are jumping on this “Random Acts of Kindness Concept” by giving a customer an extra $25 or $50 when using certain ATM machines. If it’s good enough for a bank, then it’s good enough for me.

Try it, see how it works for you, and then let me know so I can share it. I know I am going to figure out how it can work for me.