So, we've survived the busiest season of the year!

I hope your sales fulfilled your December dreams. Early news reports say that some retailers did well, others did not quite meet expectations. Here in Canada, polls a couple of weeks ago showed that most shoppers were in a confident mood and planned to spend more than last year.

Whether sales met expectations or not, we are coming up on a time of year that is important for all of us. Once the pace slows down in the new year, we have a chance to reflect. We can evaluate what went well, what we can improve, and make plans for the year ahead.

Share your experience of this holiday season and what you are planning for next year! Leave your comments below.

Next week, I'll be sending out an article on looking back, and looking ahead.

In the meantime, while you have been juggling holiday crowds, I have been working on a recording a new audio program. This program is based on a merchandising seminar I presented a couple of times this fall.

A sneak preview of the program is available now, as a free bonus until early January, with the purchase of Five Merchandising Mistakes Retailers Make.

Here's a synopsis of the new program:

Building Blocks of Merchandising - Audio Seminar


Are you struggling to come up with display ideas? Do you know what elements go into creating dynamic displays?

Merchandise displays are one of the most important tools a retailer has to use to bring customers inside the store. If you are not using this tool effectively, you are losing customers.

Learn the three building blocks of creating effective merchandising in this audio.

http://inspire.bc.ca/merchandising_products.htm

Remember, check it out before early January!

Don't forget to leave your comments below to let me know how the holiday season treated you!

Store Displays That Turn Off Holiday Shoppers

We're well into the holiday season. Shopping fever is in full swing.

Do you have what it takes to keep your customers engaged?
Will your store look fresh right into the new year?

Right after Hallowe'en store start decking their walls with lights and ribbon. The latest and greatest merchandise is stocked up. Fabulous displays appear, the best of the year.

Have you ever noticed what happens in some stores close to Christmas?

Stores start to look tired. Shelves become empty. Merchandise gets messy.

It's understandable - there are more customers through the store in December than the rest of the year. It is a challenge to maintain store standards.

The busiest shopping days of the year are between December 18 - 23. The Saturday before Christmas has the highest sales volume of the year.

How much business are you going to lose if your front displays are half empty for just one day? Customers will walk by to the next store instead of stopping at your display.

How many people will be disappointed when you tell them the merchandise in the window is out of stock? How much time will it take them to find something else they like? Will they take the time to look, or walk back out the door?

Tired stores send a negative message to shoppers. Emptying shelves tell customers, "You should have shopped earlier. The best selection is gone."

The stores that will excel in the holiday season, are the ones that can live up to customer expectations all year long.

Keep your store looking fresh and inviting right through the holidays.

1. Have fresh merchandise arrive on the shelves the week before Christmas.

Customers want to give gifts that their friends and relatives will love. Make sure you always have something new and attractive to offer.

Having new merchandise in the week before Christmas and through Boxing Week will maximize your profits. Mark down the merchandise that is nearly sold out. Feature the new full price merchandise out front.

If you don't have the chance to get new merchandise in this year, move displays and merchandise to make it look new. And plan ahead for next year to have new orders arrive mid-December.

2. Keep the front displays current and full.

Make someone responsible to check your storefront every morning and periodically during the day. If you have a window display, make sure the items in the window are still in stock. If not, change it. If you have new merchandise, display it in the window.

Evaluate front merchandising fixtures. Make sure they are full and displayed attractively. Rotate merchandise by moving products from lower traffic areas to the front.

3. Make last minute gift shopping easy. Shoppers want to maximize time, and minimize decision making.

Bundle coordinating products together and price them as a package. Wrap them up with clear wrap and a ribbon. A simpler method is to tie them together with raffia, ribbon, or even string. Then attach a tag.

Merchandise stock right next to where the products are displayed. Shoppers can just grab and go. To the cash register.

4. Schedule extra time to clean up the store. At the end of each day, schedule an extra 1/2 hour to an hour to focus on store presentation. High traffic takes a toll on displays and organization.

After the store is closed, straighten merchandise throughout the store. Fill shelves. Clean up muddy footprints and dust bunnies. Wipe fingerprints off the glass. Make sure you are ready for the next day!

Keep your store ship-shape through the busiest season of the year. You'll keep customers all year long.

How Not To Serve Your Customers

I have a problem with cell phones. My cell phone typically lasts about a year until I need to replace it because I've dropped it too many times.

Until this year.

I'm currently on my third cell phone since spring. No, I'm not just a klutz. Not usually, anyway.

My phone tends to get dropped when I'm trying to load kids and groceries into the car, or trying to find my phone and make a call while carrying student projects home to be graded.

The fact that my life, and cell phone, would benefit immensely from a slower lifestyle and less stress is obvious. Many of us are living life at an insane pace - and that's why we like cell phones.

Why am I telling you a story about cell phones anyway?

A basic retail concept is that it costs about five times more to acquire a new customer, than it does to keep a current customer. It makes sense to serve the customers you have as well as you can.

But cell phone companies don't seem to understand this.

Cell phone companies are totally caught up in the fight to acquire new customers. With free cell phones for new customers, and 'My Faves' type promotions, they work to persuade users to switch providers. Cell phone companies are totally ignoring their best customers - the ones that don't switch.

Actually, I should correct myself. Cell phone companies are not ignoring us. They are penalizing us for being loyal customers. The customers who stay with the company are the ones who pay the costs of all these promotions.

I'm not the only one who drops my phone. According to the Rogers website, "The two most common causes of damage are dropping your phone and exposure to moisture."

How to drive away customers.

The first time I dropped my phone, I tried to get it fixed. I called Rogers customer service and was told that I could take my phone to their store in a particular mall near me. So I did. When I got there, I was told that I needed my original receipt for the phone so that they could see the date when I purchased it.

Why couldn't the service rep on the phone have mentioned that? Secondly, why can the service rep on the phone pull up my records electronically but it can't be done in the store?

I went home and came back with the receipt. Then I was told that it would take 2-3 weeks to have my phone shipped out and returned to me. They have a courtesy phone program, but unfortunately the waiting list for courtesy phones was huge and I wouldn't get one.

My cell phone is by business phone, so being unavailable for 3 weeks was out of the question. Next, the rep informed me that I could take my phone in person to the store where some repairs are actually done, and see what they say. Another piece of valuable information that the phone rep could have told me in the first place.

Since I've already spent the better part of an afternoon on this, I was not thrilled about driving to yet another mall, for more of this infuriating service. The sales rep offered a new phone. I had spent enough money in my contract to 'qualify' for new phone and only pay $50 bucks for the most basic phone - if I sent in the mail-in rebate on time.

So - I went home, much relieved, with a new phone.

A year later, I drop this phone. I don't even consider getting it fixed after the last fiasco. I go in to replace it. This time I'm told that it is going to cost me nearly $400 bucks to get a replacement basic phone.

The rep told me that if I phoned customer service instead, I could get a phone for cheaper, but he couldn't do that for me in the store. However, if I called customer service, it would take 2 weeks for the new phone to arrive at my house. Too long.

Apparently, I could tell the telephone rep I was unable to wait that long. Then I would be able to pick up the new phone at the store instead of waiting for it to be mailed.

So, if I drove home, phoned customer service, told them I needed a new phone, I could drive back to the same store and pick it up for a lower price. How ludicrous!

I expressed my displeasure with these service policies that actually encourage users to switch to another company. The rep shrugged and said, "Well, then you have to buy out the rest of your contract."

I was tired of arguing. I said, "Just give me a phone!" At the end of the transaction, the rep said, "Oh, I have to add a service charge (around $30-35) but you can probably get it reversed if you call customer service and ask them." So, the overall cost was over $400, and I had homework to do to: send in a mail-in rebate, and call customer service for a discount. Arrgh!

Two months later, the screen just stopped working. This time I called customer service first. They had me check the phone for potential moisture damage which would void the warranty. There was none. So they sent a new phone. It's french. Which matters little to me practically, but made me feel like my replacement phone is 'leftover' stock.

I don't feel like a valued customer.

A week later, I'm in a hurry, and one of the kids is yelling. In my rushing, the clip on my phone holder slips, and the phone falls into the toilet.

I'm devastated. The thought of dealing with Rogers again terrifies me.

After letting the phone dry out, I search & search for cell phone repair in Vancouver. I come up with several businesses in Toronto. The Rogers site says in bold, "Phones that are moisture damaged cannot be repaired."

I also come across this statement "Customer satisfaction means everything to us at Rogers Wireless. We do our best to make the repair process as seamless as possible." This tells me that management is not aware of what is going on at the customer level.

Then I discover a forum post responding to someone else who had a wet phone. There is phone number listed for repairs. This looks a little dodgy, so I Google the number. It's listed to a business in Richmond, and has a little website. I phone them up.

Customers want you to solve their problem.

The man that answers is lovely. He tells me a wet phone is no problem. He needs to see it first, but he figures it'll cost $70. I ask him how long it'll take. He says, "Two hours." I'm immensely relieved, although still a little nervous.

I take the phone in, drop it off. The man I had spoken to on the phone, and a woman at the desk are so reassuring and wonderful to deal with. The next day they phone me, one hour after they open, and tell me the phone is ready.

Totally stress-free and easy.

Unless you count trying to drive in Richmond on a weekend in November. But that's another rant.

Make it easy for customers to do business with you.

Think about your sales processes from beginning to end. Make sure it is easy for customers to find what they need, pay, and leave. But don't stop there.

Anticipate customer problems. Create a smooth process for resolving customer complaints and returns. Problems are an opportunity for you to please the customer. If you can solve their problem, you will gain a more loyal customer than you had before.

Notice that the key is in how the customer feels. If you can turn feelings of frustration and anxiety into feelings of relief and reduced stress, you will have a customer who keeps coming back.

Target's virtual fashion show

Retail News:

Target held this model-less fashion show at Grand Central Terminal's Vanderbilt Hall on November 6 and 7.



Business Week ran this article about the 3D production and applications in business and fashion.

Here's another example from Diesel with real models and 'holographic' projections:

Why Parties Are Key to Attracting Retail Customers

Are you wondering why your store isn't attracting as many customers as you would like? It's because you aren't having enough parties.

No, I'm not crazy. And, no, don't rush out and plan a big bash.

Let's just imagine a great party first.

If you were throwing a party in your home, what would you do?

You'd pick a date and send invitations. Plan food and drinks. Clean your house. Select music. Buy flowers. Light candles. Wear a great outfit.

After all that work, what would you do when guests arrive? Would you let the caterer take care of the guests? Retreat to your office to plan the next party?

That would be nuts. You'd enjoy the party!

You would greet guests. Introduce them to each other. Show them around the house. Catch up with those you haven't seen for a while. You would make sure your guests have a great time.

Running a store is like throwing a party every day. Are you only giving it a half-hearted attempt?

I'm sure you're working hard. But is each day like a small party in your store? Are you having regular special events? Are you doing what it takes to throw parties your guests enjoy?

Do you send out invitations? Go through your customer list. You have one, right? Go through it and invite people to your store. Use the phone, email or snail mail. Ask them to bring a friend.

Tell them why you are having a party. Invite them to see new merchandise, to a bring-a-friend promotion, a customer appreciation, or maybe it's your birthday party.

Take a look at your store. Freshen the paint. Wipe fingerprints off the windows. Create new displays. Make sure it smells great. Get fresh flowers.

Imagine how your customers respond when you greet them personally at the door. You ask if you can take their coats. You show them around and offer them Perrier. The Perrier is served in a glass, not a paper cup. You introduce them to staff by name. You ask their opinion on some new merchandise.

When shoppers leave, you bring their coats, and give them an elegant, wrapped chocolate to take with them. You invite them back next week, for a lunch hour event of live music, hors d'oeuvres and product demonstration.

Now you are sure I'm crazy. That sounds like too much work and expense.

Sounds like your focus is on you. Not your customer.

Instead, think of how that customer would feel. Think about what she would say to her friends. How many customers do you think would be in your store next week? And the week after that?

Sounds like a party.

Packaging Your Store: Why The Wrapping Sells The Product

Your store is one big package for the products and merchandise you have inside.

It's the package that sells the merchandise.

Let's say I give you a present. Well, not really - just in your imagination. Play along, OK?

I'm giving you a present. It's not big. You can hold it in your hand. It's wrapped in an exquisite Japanese-style handmade paper. The creamy gold-flecked paper is complimented with a gold fabric ribbon. The handmade tag bears your name in elegant calligraphy. A light floral scent wafts from the package.

You're absolutely thrilled to receive such a lovely gift. Imagine all the care and attention that went into wrapping this special present. You are so touched by the gesture.

Especially since I haven't even met you!

The presentation and packaging of the gift matters.

A lot.

You don't even know what is inside yet, and you have formed an impression about both the gift and gift giver. Even a small token gift - a chocolate, or a bar of soap, will feel exquisite and special when wrapped in a fabulous package.

You assume the gift-giver is caring, generous, and thoughtful. (Which, of course, in this case, is true.) You believe that care and attention has gone into choosing and preparing the gift.

The next time you hear from me, you remember the gift. All those positive emotions and associations come back to you.

Now imagine I gave you the same gift.

This time, instead of the handmade paper, it is just wrapped in some leftover colourful wrapping paper I had at home.

No ribbon. No tag.

It looks OK, but nothing special. When you open it up, you are pleased to find a small box of your favorite mouth-watering chocolates. You are happy I thought of you.

The pleasant experience lasts only as long as the chocolates. You might remember the experience the next time we meet, or you might not.

Missing in this gift-giving encounter is the anticipation, the emotion, the assumptions and associations attached to the packaging in the first example.

Let's imagine again...

Instead of a gift wrapped package, I hand you a crumpled paper shopping bag. You wonder if I'm handing you my trash.

Inside, you are surprised to find your favorite chocolates. I obviously didn't have time to wrap the gift, or perhaps I didn't want to spend the money on 'frivolous' wrapping.

You make assumptions about me. Perhaps you think I don't care much about you, or that I'm cheap. Worse than no association, or emotion, now you have a negative association about my sloppiness and lack of attention.

Can you see where I'm going with this?

Shoppers make assumptions about your product based on your store presentation and appearance.

The package for your merchandise should create anticipation about what is inside. The presentation needs to evoke positive associations and emotions. The store exterior, layout and visual merchandising should be designed to make shopping exciting and memorable.

Is your store a gift that is packaged with attention and care?

Visual Merchandising Is Crucial For Retail Success

Visual merchandising is becoming increasingly pivotal for retail success. As retail becomes more and more competitive, shoppers have more options than ever before.

Shoppers aren't just shopping for products, they're buying experiences. The stores that put more effort into making an exciting, and emotional experience for customers, are the ones that will be successful.

In Canada, effective merchandising is becoming even more critical to retail success as retailers struggle to find staff. Not only is it hard to find qualified employees, it's challenging to find anyone at all.

This means that the people retailers employ will find their jobs more demanding as they work longer hours, and work harder with fewer team members to share the load. Employees will also be less skilled in serving customers.

I went shopping this week with a list of items to buy to wear to some upcoming events. I visited at least a dozen stores - buying in about half of them. Each store displayed prominent help-wanted signs. And in every store, not one sales associate tried to actively sell to me.

No one suggested additional merchandise. No asked me what I was looking for. I was assisted with the fitting room, staff were knowledgeable when I asked questions, and they were all generally helpful and pleasant. But I had to approach them. In some stores, the sales people barely acknowledged me.

I was obviously spending money, as I was carrying a few shopping bags. Yet, for the most part, I had to navigate my way through the stores, and find what I needed on my own.

All I had to rely on were the visual merchandising cues. To find what I was looking for, I had to depend on visual clues to tell me:

Where is the new fall merchandise located?
Where would I find pants?
What is my size? Where is my size?
What merchandise coordinates with these pants?
Where are the sale items? Is there anything there worth looking at?


Most of the stores did a pretty good job of organizing their merchandise so that I could find my way around easily. In the ones that were confusing; I looked around and left. Maybe I could have stumbled across a great find, but it wasn't even worth looking.

The most frustrating experience was with the department store, which was disorganized, had empty shelves, and had few visual cues to direct me from one area to the next. The department store also had the fewest sales associates available for assistance. It's no wonder department stores have struggled for survival.

If retailers are going to survive in this competitive market, visual merchandising will become even more vital to their business. Store owners need to focus on visual merchandising strategies that sell their products. If they don't, they won't be around long.

Why Your Retail Store Needs Drama

Great retail is like theatre.

Opening the door and stepping inside a store, is like the curtain going up on stage.

Shopping is a play we all participate in. Even those who say they don't like it. Great stores entertain us, share new ideas, make political statements, express our values, and then send us home with more stuff than we intended to buy.

A great play starts out with a great story. Just reading that story on stage doesn't make great theatre. There are many other elements that make a story into a dramatic production.


In retail, the story is the product.

You might have the best product since the ipod, but just putting it on a shelf doesn't mean people will buy it. To
successfully sell a product today you need to create a shopping experience for consumers that they enjoy. If they don't like it, they'll go somewhere else.

In theatre and retail, drama and entertainment are created with the same elements. You need:
a great setting, great lighting and great talent.


Setting

A great setting creates a mood, an image. A place for the action to happen. The setting is integral to the story.

A setting can be created on stage with all the trimmings and details - a complete re-creation of another place. Or it can
be a mere suggestion of a place - a single chair, painted backdrops. The audience still gets the picture. Their
imagination fills in the rest.

The same is true in retail. Some stores are very elaborate in their design and merchandising, with every tiny aspect considered. Others
use paint and a few carefully chosen pieces of furniture to suggest an atmosphere.

If you get the setting wrong for the story, the audience is confused. In retail, this is like selling designer clothes in
a discount store. Linoleum tile, garish signs and crowded aisles won't interest someone who wants to buy a suit by
Giorgio Armani.

That shopper wants to see a small boutique, lots of floor space, maybe a couple of armchairs and a coffee table. The
floor might be hardwood, or perhaps decorative stone tile. It would be crazy for Walmart or Zellers to try to create an upscale mood like this. Their customers would immediately assume the products were too expensive, without even setting foot inside.


Lighting

An important part of creating an effective and dramatic setting is lighting. A professional theatre production would never be done without proper lighting. However, many retailers do not understand the role of lighting in their stores.

I saw a high-end theatre production that used only minimal props, and created scenes with pantomimed actions and clever lighting. A powerful scene that I will never forget was created with absolutely no props. A rectangle of light on the stage floor suggested a grave. As actors went through the motions of throwing shovelfuls of dirt onto the grave, the light gradually dimmed. The scene ended when the light had faded leaving the stage was completely black.

Retail lighting can be equally powerful. The price range of the stores products are suggested by the levels of light. Discount stores are lit with bright fluorescent bulbs, giving an even level of light throughout the store.

The overall level of light in the store is called 'ambient' lighting. It is the lighting that sets the mood for the store.

Expensive boutiques have a lower level of ambient lighting. They use accent lighting to highlight merchandise and important areas of the
store. These are usually spotlights, used to draw your attention to displays. Because your eye is drawn to light, you will naturally move through the store to these 'pools' of light.

A mid-priced shop with use a combination of these two types of lighting.

Unconsciously, as a shopper, you will get a message about the value of the products because of how they are lit.

For example, an expensive product lit the wrong way, will cause a shopper to assume the product is poor quality and overpriced.

A successful retailer needs to make sure that the lighting is consistent with the setting and the story.


Talent

A great theatre production also has the right talent. Only the right person can create a believable character. An actor's build, appearance, ability and experience are all part of what makes him or her the right choice for a role.

A successful theatre production needs a strong team of people. Each one needs to be able to create a convincing and powerful character. They also need to work well together as a group.

In retail you also need great talent. What would happen if retailers thought of their staff as the cast of a production? Maybe they would be more careful in hiring just the right people. Retail staff need to clearly understand their role. They need to know the story. They need to work well as a team.

Both in theatre and in retail, a cast member who comes across as phony or insincere will ruin an otherwise great
production.

A successful theatrical or retail production needs to have all three of these elements working together - a great setting, great lighting and great talent.

If any one of them is out of tune with the others, the audience leaves disappointed - and may not ever come back.

What are you doing to create a great retail production?
Please share your comments.

Learn from a Retail Legend

This week I received an invitation from Ian Portsmouth, of PROFIT magazine, to ask a question of John Forzani, the sporting-goods retail king. (Sport Chek, Sport Mart, Coast Mountain Sports)

Ian says, "PROFIT magazine runs a regular feature called "Ask the Legends" in which high-profile Canadian entrepreneurs answer questions submitted by the general business public. Recent guests have included Jim Balsillie of RIM and Harry Rosen."

Forzani will be the next guest entrepreneur. So, if you have a burning question you would like to ask this retail giant, you can send it in by email to Legends@PROFIT.rogers.com

Forzani is Founder and Chairman of the Board of The Forzani Group Ltd. and a former Calgary Stampeder offensive lineman. He is currently Chairman of the Calgary Stampeders.

So, ask your question.

You just might learn something. And, you get to see your name in print - welll, digital print.

BC Retail Week 2007

I'm taking a break from writing a regular merchandising article this week to tell you about some other retail resources and current issues.

I just spent all day yesterday at Retail BC's Passion for Retail conference. It was an engaging, high energy and informative event.

I met some great people who have some innovative services and resources for retailers:

Warren from myHRtool.com
This is a scheduling solution that helps you manage staff and reduce the amount of time that you spend planning and adjusting staff schedules. Definitely an option to investigate if you have more that 2 or 3 staff members.

Trevor from igeno consulting
Are you a larger store with more than one location, and a lot of data to manage? Excel spreadsheets and reports taking up too much of your time? Igeno can help you reduce this admin time, and create clear visual reports that make sense of all those numbers. Check out their case studies on their website. And Trevor is great to talk to.

Michael from Eigen
If you aren't using gift cards yet for your business, you might be missing out. Gift cards are great ways to offer more for your customers. Take a look and see if gift cards are right for your store. Eigen provides gift cards, and other solutions for retailers.

In the conference sessions, much of the talk was about staffing. In BC, it is becoming harder and harder to find good retail staff. There are help wanted signs, it seems, on every street. But here it is only beginning.

In Alberta, the shortage of retail staff has become a crisis. Here's an article from last fall about the staff shortage that is cutting across all industries. In some communities, stores have been force to reduce hours and services to cope with the lack of available workers.

Businesses have to find new and creative ways to find and retain good staff. Retailers need to create great environments that attract not only customers, but employees. Creating a dynamic, motivating and fun environment becomes even more important than it was before.

Store owners and managers need to think about creating stores that people want to be in
- both to shop and to work.

How do people feel when they are in your store?
How are you going to set the mood for your store?

The tone is set in the way everything works together - your people, culture, visual identity, layout and merchandising. The retailers who get this mix right for their customers will be the ones who succeed in this increasingly competitive environment.

Is Your Merchandising Holding Your Business Back?

Are you happy with the number of customers you get each day? Are you satisfied with the daily sales you are generating?

If your traffic and sales levels are right where you want them to be, then you can stop reading right now. Take yourself out for coffee and bring a good book. Pat yourself on the back for doing a great job. Then relax and enjoy your coffee.

The rest of us want more customers. Need more customers.

So, what are you doing about it?

Here's some examples of situations that you might identify with:

- You sign up for a newsletter to help you in your business, but get too backlogged in email and don't confirm your subscription.

- You buy or download a book to help you in your merchandising, but don't finish reading it.

- You read a great business book, or attend a seminar, but get too busy to implement any of the ideas when you get back to the store.

- You hire a consultant but don't provide the information they need to help you with your business.

- You place an ad and hope for tons of new traffic.

- You change your window display and hope people will notice and come in.

We look for help and new ideas or strategies, but then we don't follow up. We get busy, distracted by the day to day business. We don't make regular time for the strategic work. We don't put a priority on doing the things that are going to move us forward to success.

We spend our time doing the things that keep business running as usual. Business as usual keeps us where we are now.

To move forward we have to make a habit of taking new actions. The two key words in that sentence are 'habit' and 'action'.

Make a habit every day, or at least every week, to take an action that moves you forward.

What's missing is a consistent plan, and a method of measuring progress.

Here's a simple, five step action plan that you, or your staff can start to implement today.

1. Choose one under performing department or section of your store that you would like to improve.

2. Make a record of where you are right now. Write down your current daily & weekly sales results for the products in that department. Take photos. Draw a rough floor plan of your current fixture layout and product merchandising.

3. For one week, watch this department carefully. What do you notice? How many shoppers move through this department? What percentage make a purchase? How long do they spend in that department? What do they touch? What questions do they ask?

4. Based on your observations, make changes to the department. Make your merchandise more accessible and attractive. Create new displays. Add signage. Move slow selling merchandise to more prominent locations. Mark down merchandise that you need to get rid of.

5. Watch this department for another week. What do you notice? What changes worked? What needs to be improved?

At the end of the week, go back to step 4.

Repeating this simple plan consistently, will keep your business moving forward to success!

If you have some success with this action plan, send me your results. Your story or before/after pics may be chosen to be featured here on my blog.

Free Teleseminar - Five Merchandising Mistakes Retailers Make: And What To Do About Them

It's not too late! You can still sign up for this free teleclass. There are a few spots left.

You could be losing valuable sales because you are making these glaring merchandising mistakes.

- learn what mistakes you are might be making in your store
- find out how your customers perceive your merchandising
- discover how you can correct merchandising mistakes
- learn how merchandising can improve sales

Monday, February 19
1:00 pm PST


I am keeping this call small so that it will be personal and allow a brief time for questions at the end of the teleseminar. You'll get the most benefit from the call if you can join us live.

If you just can't fit it in, or get called away at the last minute, I will record the call and send you the link to download the recording.

Sign up here!

Why You Need to Know Your Customers Better

When was the last time you took a customer out for coffee?

I know. You're busy. You might have trouble remembering when you last had a real lunch break. You're managing a store, and there is always something that needs to be done yesterday.

If you are not regularly spending time with customers, you're missing the boat. And I don't mean just helping customers on the sales floor. I mean getting to know them better and asking for feedback about your store.

Independent retailers, like you, have the advantage of being close to the consumer. Often you know many of your customers personally. One of the most important things you can do to attract more customers, is to build on this strength.

Work to improve your relationships with your existing customers. You will learn more about what your customers need, and they will start to tell their friends about you.

Knowing who your customers are and what they are passionate about is crucial to getting more shoppers in the door. Too often I speak to retailers who have no idea who their customers really are.

You cannot appeal to everyone. If you try, you will end up with a watered-down store identity and experience that doesn't appeal to anyone. You'll be just another generic store that looks like all the others.

To create a shopping experience that is truly unique and exciting, you need to know your customers and what they want. Then you can create a dynamic store atmosphere that your shoppers will love!

The best way to get to know what your customers want is to ask them. Start asking your customers about what they think. Make it a habit to ask your customers questions.

This works for two reasons. First, knowing what your shoppers want helps you create a store that gets attention.

Second, questioning is a great sales technique. Customers want you to be genuinely interested in them. By asking questions, you begin to develop a relationship with the shopper. The sales process begins to flow naturally as you get to know the customer better. She doesn't feel pressured when her needs are the focus, not yours.

Your favorite customers will be your best source of feedback. Your goal should be to attract more customers like them. Focusing on your best customers will help you develop a clear vision and direction.

Ask your best customers what they think of your store. Ask them what they like. Ask them what you could improve. Make it clear that you appreciate their feedback. If you are asking for a lot of information, or asking them to write down their responses, think about offering a small gift or discount as a thank you.

When you receive new products, ask your customers for their opinion. Tell them you are trying a new product and would like to know what they think of it.

You could create an elaborate system with suggestion cards, or surveys. Often in a small store, coming up with a process and system for soliciting feedback is just too complex. Before long you are bogged down in setting up the system and frustrated because it is difficult to get shoppers to respond. Soon you've set the whole idea aside and have decided that getting more feedback from your customers is just too hard.

Instead, just start talking to your customers even more than you are now. In a small store, you have the advantage of having a personal relationship with the customer. In a chain store, you can also create a personal relationship and solicit feedback, but the disadvantage is that it is harder to get that feedback to the decision makers.

You can translate feedback into new ideas almost immediately. You don't have to go through a long approval process, or write a proposal. To get feedback, just get in the habit of asking questions and talking with your customers. Teach your sales staff to do the same thing. Keep a notebook to jot down customer comments throughout the day. Review the book once a week and brainstorm new ideas.

When you have a new idea, ask a few of your best customers what they think about it. Get them to help you make that idea even better.

Try having a coffee with a different customer each week. See what happens to your business!

Retail Lighting Resources

Retail Notes: Often retailers that I meet ask me about lighting and where to find lighting resources. A few weeks ago, I compiled a list of lighting links on a blog I've been working on at Retail Mob.

Here's a list of the lighting posts.

Leave a comment here to let me know how you like them, or to submit other resources you use.