Currencies That Buy Credibility

I'm reading a brand new book on marketing. Well... okay, I just read a brand new book. I read it in one sitting. And I'm planning to read it again - probably tonight.

Yeah, it was that good.

The book is called "Currencies That Buy Credibility" by Tom Wanek.

Too many times we hear lines in marketing & advertising that just don't ring true. Things like...

"We won't be undersold!"
"The best sales staff in town!"
"The world's largest selection!"
"Lowest prices guaranteed!"

Maybe some of them are true, maybe they aren't. The key is that without something to show us how they are true, our cynical nature leads us to disbelief every single time.

Tom, however, teaches you how to give credibility to your statements, whatever they may be, through six different currencies such as your time, your money, or your control. With credibility you grow trust. And with trust you grow your business.

The book is easy to read, has great examples, and makes perfect sense. You'll be applying his principles almost immediately. I know, because I have. I started reviewing and rewriting my radio ads this morning based on what I've learned.

If you're involved in the marketing of your store, this is one book you should add to your library.

(Full Disclosure: Tom is a Wizard of Ads partner I met 2 years ago. As an acquaintance, I planned to read his book from the moment he announced it being published. But I wouldn't be promoting it here unless I believe it can help you. And, no, I'm not getting anything for promoting his book - except maybe a heartfelt thanks.)

-Phil

The Three People to Solve the Problem

If you're in retail, at some point you will have a customer with a problem. And your success will depend on how well you solve that problem in the customer's eye.

The key is knowing the three people who can solve the problem. Those people are (in no particular order):

• The person Most Capable of solving the problem
• The person Closest to the problem
• The person Least Busy at the time of the problem

The problem for most businesses is the order in which we prioritize that list. From a business owner's standpoint the ideal priority would be:

1. Most Capable
2. Least Busy
3. Closest

From a customer's point of view, however, the order would be:

1. Closest
2. Least Busy

Notice that I left off "Most Capable". The customer expects that everyone will be Most Capable. And that's where the smart retailers succeed. They equip their front line staff with the tools to solve problems so that customers get satisfaction right from the start.

There is nothing more frustrating to a customer who already walked through the door loaded for bear than having to wait around while incompetent fools run off in search of an already over-worked manager to approve a return or refund or some other simple issue.

Conversely, there is nothing so satisfying as a customer than having the first person who greets you being able to fully take care of your problem.

The best thing you can do for your staff is walk them through the basic problems that arise in your business. Show them your thought process and the criteria you use to make decisions. Then empower them to make those same decisions for the customers.

Sure, they might make a mistake or two. Sit down with them when they do and talk through their decision-making to see their process. Use that time to show them (again) how you would handle it. The good ones on your staff will get it quickly. Plus, they'll feel more ownership for the satisfaction of the customers in the first place.

There will still be a time when the person closest to the situation can't solve the problem. But the more often they can, the better your customers will feel about you and your business.

And isn't that the whole point?

-Phil

The Christmas Tree Lesson

My son gave me the coolest gift for my birthday - a Charlie Brown Christmas Tree.

Now some of you might wonder why I think that is so cool. I mean, it's a lonely, bare tree that represents the ultimate failure of a blockhead child. Charlie was laughed out of the auditorium when he presented it to the Peanuts Gang.

Yet, there are lessons in that tree that all independent retailers can learn.

Think about what happened next to Charlie's tree. (I know you've all seen the Charlie Brown Christmas Special at least a dozen times - this should be a simple exercise.)

Linus wrapped his blanket around it to give it support.

What have you wrapped around the foundation of your business to give it support?

Have you secured your financing? Have you bolstered your training program to make sure your staff is fully trained and ready to deliver excellent customer service? Have you checked to make sure your inventory includes an ample supply of the "must have" items - the stuff you can never be out-of-stock?

These are the foundations that give your business support, no matter how simple or bare your business might be.

Back to the tree... After Charlie Brown left, the other kids gathered around and decorated the tree with stuff from Snoopy's dog house. The finished product looked as good as any tree ever did. But it wasn't the decorations that made the tree special, it was the love they poured into it.

You don't need the budget of Nordstrom's to dress up your store to look its best.

You only need to add in some Love. Pour some love into your business. Show your customers how much you love what you do, and you'll look more special than any overspent, over designed, cold, heartless big box store. Show passion in your design, passion in your policies that serve, and passion in your interactions with the customers and you'll be the best tree on the block.

Even a simple tree like Charlie Brown's can become something special. So, too, can your business.

Merry Christmas (and Happy Birthday to me:-)

-Phil

What Are You Tracking?

You can't manage what you don't measure. Here are two numbers you should be measuring this holiday season.

Traffic Count: How many sales do you have per day (Monday, Tuesday, Wednesday...)? Per day part (morning, afternoon, evening)?

Knowing this can help you schedule your staff to better meet the peaks and valleys of your daily & weekly sales. It also helps you measure the success of your marketing and your customer service. If traffic counts are up, you're doing something right. If they are down, you better figure out why (and it isn't just the economy).

Average Ticket: How much is the average transaction or sale? Which employees have higher or lower averages (if applicable)?

This number helps you measure the effectiveness of your sales staff and promotions. It also helps you understand your merchandise better. Are you getting the add-on sales? If not it could be that you don't have the right products to complete a customer's purchase. If you sell dolls, you better sell doll stands. If you sell electronics, you better sell batteries.

Measure these two numbers. They have a lot to say about your success.

-Phil

Yes They are Price Shopping With Their Phone - It's Okay

The new applications on iPhones allow your customers to scan a bar code on a product on your shelf and get all kinds of information online including the price others are charging for the very same item.

Oh no! Oh, yes. Customers can more easily price shop you than ever before. What are you going to do?

Some stores are banning customers who do this. Don't be one of them.

Allow your customers to use this new app. Embrace the technology. As Bob Phibbs pointed out so well, use it as a means of connection with your customer. Ask them what they found. See if the info is accurate. Chances are, you'll be able to add info to what they find, or at the very least be able to make that info relevant by explaining to the customer what it means.

By all means, however, treat these customers with ultimate kindness and respect.

Sure, many of them are price shoppers, transactional customers, who won't ever be loyal or profitable for your business. But that is no excuse not to kill 'em with kindness.

One thing we know about transactional customers is that they are always big on word of mouth. They love to talk about their shopping experiences.

And when they leave your store, they could be saying, "Wow, what a bunch of overpriced jerks!"

Wouldn't you rather they said, "What a friendly knowledgeable store - expensive - but they really know their stuff,"?

Embrace the new iPhone apps and other programs that allow customers to price shop and get other info on your products. And then recognize that they came to you first. Now give them a reason to buy.

-Phil

More Than One Way to Say It

I wrote two articles for a local organization's newsletter about Shopping Local. The first was soundly rejected. The second was roundly praised. Funny thing is, both said pretty much the same thing. The difference is that one said it powerfully, one not as strong.

Yes, it was the more powerful message that was rejected. The fear was that it would be seen as offensive to some. Of course, that was my point. No, not to offend, but to attract.

A message is like a magnet. It's power to attract is equal to it's power to repel. The stronger the attraction, the stronger the repulsion.

If you are writing to attract, write powerfully and pull no punches. If you are writing not to offend, don't be upset if your message doesn't get through as strong as you would like. Those are the trade-offs in making a memorable message.

I understand the reasoning behind the newsletter's owners wanting not to offend (otherwise I wouldn't have written the second article). Some of my original points were directed right at some of their membership which wouldn't have gone over well. And that's a fair reason for the rejection.

But there's a lesson here worth remembering. The most powerful messages will offend as many people as they attract. And that's okay.

Here are the two articles. You tell me which one was more powerful...


What Does it Mean to Shop Local?

There are differing opinions as to how we define a Local Business. Here is the definition that counts…

A local business is one that is owned and operated by someone actively involved in this community.

If in doubt, ask yourself, “Where does the profit go?” Locally owned businesses invest their profits back into Jackson. Chain stores send their profits back to headquarters (usually to pay for some CEO’s golden parachute). Online stores never let the money spend a moment in town.

Studies continually show that locally owned independents and locally owned franchises give back far more to the community than big box chain stores and online sites. They employ more people per sale, pay them a higher wage, pay more in taxes and give more in charity than the chain stores*. They also do more business with other locals keeping the money flowing through Jackson many times over.

A study in Grand Rapids showed that just a 10% shift in shopping habits from big chains to locals would create hundreds of jobs and millions of dollars in economic activity, not by spending more, just by spending it locally.

Your local businesses sponsor local events. They sponsor your son’s Little League teams. They supply most of our local leaders. They don’t run at the first sign of trouble. They are rooted in our community.

Christmas is a time for giving. As you plan your giving, think about the businesses who have given back to Jackson, who have invested their livelihood in Jackson.

You can find a bunch of them at http://www.jxnlocalfirst.com/.

Merry Christmas!

Phil Wrzesinski

*Studies cited at www.jxnlocalfirst.com


Keep Your Dollars in Jackson

They say it takes a whole village to raise a child. It also takes a whole village to raise an economy. But first you have to invest in the village. You have to put your money where your house is. Spend your money in Jackson.

The holidays are a time for increased spending. They are also a time for increased everything else, increased traffic, increased stress, and increased demands on our time.

For some, that’s a compelling reason for shopping online. Sure, you might save a buck or two, but the money you saved was money that left Jackson with no benefit to the local economy. And if you didn’t pay sales tax, that’s a loss of revenue for our schools.

When you shop local - when you stay in Jackson to make your holiday purchases - you are investing in your neighbors. You are employing people in your community. You are adding to the available dollars for charity. You are growing Jackson’s tax base and economy.

Washington, D.C. does not have a silver bullet to kill the recessionary beast. Lansing cannot fix what ails us.

But you can.

Spend your money in Jackson and it will make a difference – a big difference. A study in Grand Rapids showed that just a 10% shift in shopping local would create hundreds of jobs and millions of dollars in economic activity, not by spending more, just by spending it locally.

Keep your dollars in Jackson this holiday and you’ll be giving a whole lot more than just presents.

Merry Christmas!

Phil Wrzesinski


See the difference?

Cheers!
-Phil

A New Twist on Training New Employees

I just hired seven new employees for the store. Now comes the fun part - training.

My standards are high. My customers' standards are even higher. They have an expectation about our store that may seem unfair in these days of self-serve retail. They expect to be waited upon. They expect to have their questions answered quickly, correctly and with good cheer. They expect the staff to be friendly, knowledgeable and efficient. They expect us to have what they want, get it through the checkout quick, giftwrap it for free and have them on their way before their child has time to even think about a meltdown.

Oh yeah, and they want to have FUN while doing it.

In short, my customers are expecting the world, and I am planning on giving it.

The seven new employees had two things in common - a desire to help others and a strong work ethic. Those were the characteristics I required in this round of hiring. Now comes the task of teaching them about the toys, about our services, about our policies, about our cash registers, about our philosophy. There is a lot to learn. More than I can remember. More than I have time to teach.

I did two things you can copy for your business when you have to hire & train new employees.

First, I created a checklist of all the skills the new employees need to learn. I broke it down into main items and subcategories to make sure nothing was overlooked. Simple things like closing procedures or bagging toys were on the list along with educational material like How Toys Teach, and Phil's Top Ten Toys. Cash register procedures, time clock procedures, delivery policies and every other service we offer is on the list.

And next to each item on the list is a blank line.

The second thing I did was empower my current staff to train the newbies on all of these procedures. The only caveat is that the employee who does the training has to put her initials on the newbie's checklist next to that item.

There are three immediate benefits of doing training this way.

1. The regular staff gets a sense of responsibility in training the new hires. They feel more empowered which leads to even more responsibility.
2. Everyone is accountable for how well the training is accomplished. If your initials are on the checklist, you better have taught them well. Knowing that you'll be evaluated, too, has the regulars honing their own skills in the process.
3. We're building camaraderie right from the start. The new staff are interacting more with the old staff and getting to know them quicker than if they were just working along side each other.

Sure, I'm still involved in the training. Some of my involvement is direct teaching the skills I want to teach, but most is just overseeing the process and evaluating the new employees' skills as they learn. Best of all, I get to see who of the regulars has the ability to teach and who needs more work on their own skills.

All in all, through this process everyone is improving their abilities to give the customers the kind of service they expect. And I'm getting seven new smiling faces ready for the frontlines this holiday season.

-Phil