Archive Page 14

Conversion – May the Sales Force be With You

You may remember the phrase in the subject line – even though we took some liberty with it to suit our purposes. 

Luke Skywalker and the Jedi Master, Obi-Wan Kenobi of Star Wars fame used the positive phrase “May the Force be With You” to wish someone good luck and hope for victory, before a battle. 

Your sales force must be with you if you are to reach any level of success in retail. Retailer’s battle to hit their targets every day, while struggling with tons of detail – big and small – everything from the effects of the changing economy to the show rooming phenomenon; from hiring and training to current technology. As a retail business owner, or high level management in a chain, you know it’s a battle! 

Truth be known, it is your sales force that actually does the battling for you on the front lines, day in and day out. Unfortunately, they are the ones who are often – not always, of course – the least informed, least empowered and, subsequently and not surprisingly, least engaged people in the organization.

 
More and more we hear about brick and mortar retailers losing sales – due to losing traffic – because of online competition. Yes, indeed, online retail is alive, well and growing and there is no expectation that it’s going to go away!
 
But, if you listen to a lot of so-called experts,  they will tell you that you can compete so much better and win back that lost ‘traffic’ just by investing in marketing. While we agree it’s always a good thing to improve marketing, we think the deterioration of the in store experience is being overlooked.
 
Just driving customers into the store does not equal a significant increase in sales. You must have a capable, engaged sales force.
To find out whether your sales force is capable of converting shoppers, or not, start by watching what’s going on. The baseball great Yogi Berra, who was known to put things in interesting ways, said “You can observe a lot just by watching.” So simple and so true. 

Watch them, talk to them, ask and answer questions, and work with them. You’ll come away with a wealth of information to help you do what you need to do to engage your sales force.

 
It is a waste of money to drive people into your stores if you cannot convert them to buyers. 

One thing we know, with absolute certainty… if your sales force is not with you, everything will be harder than it needs to be. 

All the Success! 
DMSRetail 

PS: We have excellent resources for you. Check out: 

Ultimate Retail Success ToolKit  – a huge addition to your training library. 

Retail Selling Skills & Customer Service Fundamentals Self Study Course  – for your new and/or less experienced sales and service associates. 

PPS: Join our Facebook community. If you like us, please ‘Like’ us. Thanks!! 

Merry Christmas and a Happy New Year

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Seasonal Temps, like Michelle, Add Value

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It’s that time of year again. Many retailers are on a mission to beef up their staff rosters so they’ll have enough floor coverage and extra help, to handle the increased traffic coming into their stores.

And, let’s face it, many of our customers may be subjected to some confused new hires who don’t know as much as they should. But let’s not be too quick to blame those new seasonal employees.

Even though many new seasonal hires may only be with you for a few weeks, they can add a lot of value if you do certain things right. Over the years, both as a customer and as a District/Regional Manager I’ve heard lots of comments about seasonal people…usually implying that something went wrong in service delivery, or mark downs, or visual display, or cleanliness or, whatever… due to the fact that seasonal people were involved.

That’s kind of unfair to them. If you’re going to invest the time and effort to recruit and hire people – seasonal or not – then you’ve got to make the most of the investment. There’s no room for the excuse “s/he’s just a temp” when it comes to your store(s) and your company’s reputation.

One of the greatest benefits of hiring seasonal employees, like the one in the story below, is that you get to see them in action; it’s like a working interview and you can determine quickly and easily if the seasonal employee is someone you’d like to bring on permanently after the holidays.

Lots of retailers get some of their ‘gems’ this way, and here’s why…

People who are looking for seasonal employment may not be your regular job seekers. Some want to get into the workforce temporarily to earn a bit of extra income, and some may want to see if retail is something they’d like. Others may find that it’s easier to land a job when so many employers are trying to find people.

Here’s a true story about one seasonal employee that I hired…

Michelle was new to the country and, although she interviewed very well, you could see that she was a little self conscious about her language skills. It was clear that she was bright, well educated and very enthusiastic about getting the job.

We hired Michelle as a cashier and she worked out very, very well. She was excellent at adding on merchandise at the cash desk.

Then, one day, we needed her to cover out on the sales floor. She was a bit apprehensive but she agreed. Michelle displayed a lot of natural talent but needed a little confidence building.

After a couple of hours of training on the basics of the selling process, she was amazing. Obviously, it helped that she was a very willing student.

Anyway, once she got going, there was no stopping her. And, you guessed it, we hired her on a permanent basis at the end of the season. Definitely a win/win.

Whatever the reason, once hired, many people shine just like Michelle did.

There have always been at least a few seasonal employees that I encouraged Store Managers to hire on a permanent basis following the holiday period.

Of course, there are the others as well…the ones that make you say “What were we thinking?”. You know…the party animals who show up late for their shifts looking like death warmed over, and the chatterboxes, and the timid onesstanding as far away from customers as possible, and the loud, boisterous ones who think they know everything (when they clearly do not), and the list goes on.

But, what do you do once the season is well underway? These are the people you have so you often end up putting up with them.

But, if you really want to add value to the seasonal hiring effort this year, there is something you can do to get something beneficial out of the process.

You don’t have to put tons of time in or take your other people out of their stores/districts to make this happen. If you have hired seasonal employees who are new to retail, or sales and customer service functions then give them something that they can get through quickly and easily.. something that will help them get ‘in tune’ with what you expect from them and give them some skills to bring to the job.

Give them a little training; something that they can do on their own, and the party animals, the timid, the chatterboxes and the know it alls will, at the very least, understand that you expect more from them and that you’re investing to make sure you get what you expect. We guarantee it.

I’ve seen lots of people, just like Michelle, who turn out to be worth their weight in gold.

This time of year is way too important to leave this to chance. If you can help your new people get up to speed quickly enough to make a difference this season, why wouldn’t you? Consider this very simple example.

Your seasonal employee, Jane, will help clean and organize the stockroom, she’ll change lightbulbs and keep displays tidy, she might even be a really friendly greeter when positioned at your lease line. You may be very happy with Jane.

But if Jane learns some sales & customer service skills she can be more productive by actively selling to customers, in addition to her other duties.

Depending on your average sale, if Jane made just a couple of decent sales, you’d quickly recover any investment you made in training her and it would prove to be very worthwhile. And, she would thank you for taking the time to help her, as well.

In addition to monetary gain through increased sales, you also get more commitment, respect and loyalty.

You can decide to make your seasonal employees a very valuable asset this year.

All the Success!

DMSRetail

P.S.: If you’re looking for something to help you realize your investment in your seasonal employees, here it is. Get your copy of the Retail Selling Skills & Customer Service Fundamentals Self Study Course now. The digital version is only $97. In just a couple of hours, your new employees will learn how to contribute so much more to your business.

Win Big This Season

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Make a plan to win big this holiday season.

Even though you’re likely to be super busy over the next few weeks, this is no time to abandon your efforts to manage the use of your time. You may have to do a little tweaking, but the basics still need to be in place to help you be as successful as possible.

They say we can’t manage time, we can only manage our own use of it…so here’s a process that will give you some tips on making the best use of your time.

Determine how much time you spend on various activities – Make a list of all of the things you routinely take care of during a normal day/week/month and assign a number of minutes or hours to each one. This exercise will draw your attention to things that are taking up too much of your valuable time.  Awareness of this will assist you in determining which activities can be stopped altogether, delegated or combined with other activities to save time.

Figure out how your personal speed measures up – People who get a lot done are moving fast most of the time. It’s difficult, in fact, to get them to slow down. Try walking through a mall with a high achieving go getter of a District Manager and you’ll probably be out of breath in no time!

If you find that you’re moving a little on the slow side, you just need to put a bit more energy into everything you do. Move a little faster each day. This applies to getting things done as well as some of your decision making.

Define Goals – Goals will include, but are not limited to, top success factors. They need to be well defined so that you can clearly see what kind of time allotment and resources will be needed to reach them.

Prioritize– Any activity or task that will not move you closer to your achievement in your top success factors is not worthy of investment of your time. Keep a log of what you are doing with your time for a couple of weeks and then review it to make sure that all of your time has, in fact, been spent on top success factors.

Work with To Do Lists – Daily or weekly, a ‘to do’ list must be created. It must include only those things that you have deemed to be priorities based on your top success factors. Others may inadvertently influence your ‘to do’ list unless you are very careful. Just remember who owns your ‘to do’ list.

Why is it important to use a to do list?

We can’t necessarily keep everything in our memory and, even if we could, why waste the brain space when you can jot it down on paper? Seeing the list of things written down on paper helps you to prioritize. Any possible duplication of effort can be seen at a glance. And, you get the satisfaction of striking things off the list as they are accomplished.

Appointments – Make a plan for your day, week or month as if you are creating appointments. That is to say, if you plan to do something at 9:30 a.m., and have scheduled that activity as a 45 minute appointment, then do it in the 45 minutes you have scheduled it for. Appointments should have a start and finish time and cannot be left open ended.

Reduce time allotments – Any activity, task, project or meeting can easily expand to use up all of the time allotted to it. For this reason, schedule on the short side. Things tend to be handled more efficiently and effectively when a tighter time frame is in place.

Organize – In retail, you must be highly organized. You need a system for reducing clutter (of your space and your mind) and for easy retrieval of documents and information. If your life is full of clutter, your brain is confused and is probably actually preventing you from getting things done.

Make a point of regularly clearing out junk that you don’t need or use anymore. Stuff at home and work should be thrown out if it is not useful to you. You should actually schedule this ‘clutter removal’ appointment once a month or even as often as once a week.

Delegate – Presumably you have competent people working for you so you should be able to delegate according to their particular strengths and availability. Even if you need to break a larger project down into smaller, more manageable pieces it will help you and it will help in development your people.

You’ll need to consider these things when deciding what to delegate:

-Is it a repetitive task?

-If a bad decision is made regarding this issue – what is the impact? Is it easily reversed? Will it negatively affect others? Will it be expensive, for the company, to correct or reverse?

Say “no” – Admittedly, this is not always possible, so you need to know how to determine what you should and could say “no” to. If someone asks you to take on a project or task that will not necessarily advance your cause – or contribute to your top success factors – then you need to say “no”. If you find there is no alternative but to accept the project or task, then you need to look for items on your to do list that can be moved to another time slot or ‘appointment time’, or delegated.

Remain flexible and reschedule often – You will need to allow for the unexpected. The idea of planning your work and working your plan is a very good one, but sometimes you will just have to be flexible. So, when the need arises, be prepared to reschedule.

Allow yourself some scheduled unproductive time – It doesn’t sound right but it’s important. This is what will keep you going. We can’t have every minute of every day pinned down – sometimes we have to just enjoy ….whatever.

Don’t let what you can’t do stop you from doing what you can do – Sometimes it’s impossible to embark on a big project. Maybe you have limited resources; maybe the expected outcome is still a bit uncertain. For whatever reason, you just know you can’t get the big project done. You can, however, start on small parts of that big project – the parts that you are able to get done and that will be useful when it comes time to get the big project underway. In fact, if you work at it that way you might just find that the big project has suddenly taken care of itself.

Sleep early, wake up early and take good care of your health– The early bird gets the worm! In our case, the early riser gets more done while they are still energetic. It’s a great feeling to know that some people are just lounging around – still in their beds – while you have already accomplished half of your to do list.

As far as your health goes, we don’t profess to know enough about the human body and it’s nutritional requirements to provide advice on that topic. Suffice to say you must take good care of your health if you want to operate at the top of your game and make the best use of all of your waking hours. Eat a healthy diet, get some exercise, schedule your regular medical check-ups and generally…..be kind to yourself.

All the Success!!

DMSRetail

www.DMSRetail.com

 

Something to Think About – “Thank You” Gift

This is an excerpt from Retail Selling Skills & Customer Service Fundamentals YourTime Study Course:

It appears that even a warm, friendly comment of gratitude will activate the obligation to reciprocate on the customer’s part.
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Real Life Study Shows:
A New York University conducted an experiment in a medium-sized electronics store. A subject entering the store was told in a warm and friendly manner: “Thank you for shopping here today. We appreciate having you as our customer.” As a control, the next shopper entering the store was not told anything.

The average amount of money spent by subjects who received the appreciatory comment was $408.03; the average amount spent by the 100 subjects who were not told anything was $240.54.

And it didn’t cost a penny to say Thank You!

Get your copy of Retail Selling Skills & Customer Service Fundamentals YourTime Study Course and increase your sales and delight your customers !

One of the critical profit issues in retail is to make sure that the 2 engines of a retail organization, namely Merchandising and Operations, work as a team. Because of the built-in tensions between these 2 engines, many retail companies have a difficult time creating the working relationships that would generate the synergy required to maximize productivity and profits. Following diagram summarizes a fundamental retail organization structure:

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Obviously, the quality of contribution and support from other functions like Finance, IT and HR is very important as well. All these functions must align around the vision of what needs to be achieved and when.

One of the most effective ways of making people work together, is to tie their compensation to the over-all performance of the organization. This is as important as, if not more important than the culture building and/or other soft approaches to performance leadership.

What we see in many retail organizations is only the top management has their compensation tie in to the performance of the company. This is where many retailers go wrong. Realities of doing it for all levels are obviously much more complex and require some serious effort. But that’s the price of winning at retail just like in anything else.

Practical Solutions to Everyday Retail Management Challenges

In a nutshell, that’s what DMSRetail does. We provide practical solutions to your everyday retail management challenges.

Our Consultants, who have developed all of DMSRetail’s practical solutions, have all been in your shoes and we’ve figured it all out, many times, with great success.

Let us do the same for you.

Retail does not have to be difficult. Of course, it has it’s unique challenges. No one can claim it is simple but, certainly, the challenges are not insurmountable. In fact, it can be as easy as a walk in the park once the proper principles and systems are in place.

If your sales are down from last year…and way off target, and you need to figure out how to move them in the right direction, we tell you what steps you can take; we actually show you how to do it. We also advise you against taking steps that will lead to a downward spiral which many retailers are in the process of right now.

Maybe you realize that you don’t have the people in place who are able to drive your business to the heights you’re looking for. Well, we show you how to correct that situation. Or, perhaps you don’t even know that some of your people are causing your troubles…we’ll help you figure that out, too. We have a DMSRetail solution for you.

If your compensation plan isn’t working, we’ll tell you what kind of compensation plan you should have in place for maximum employee engagement and customer satisfaction. We’ll amaze you by running the numbers right in front of your eyes and you’ll have an aha! moment, for sure.

If your operation needs a complete overhaul and you have no idea where to start…we can do it for you. All you need to do is send us an email to get started…lift those burdens off your shoulders and look to us to help you solve your challenges.

There is no magic pill; no ‘one-size solution’ fits all; no quick and easy fix. What DMSRetail has for you is a wealth of experience spread throughout all of it’s Success Guides, Tools, DVD’s, Bundles, Study Courses, Ultimate Retail Success Program, Workshops and Consulting Engagements.

Get started with DMSRetail products and services and see what we’ve done to solve your most pressing issues. You really don’t have to reinvent to wheel.

Learn from experts and make it happen.

For starters, if any of your people – at any level – don’t understand the reason for Key Performance Indicators, or how the calculations are done and what action can be taken based on the results, then you need to get everyone a copy of Retail Math Made Simple, 3rd Edition. It’s only $14.95 and if you buy one for all of your staff, we”ll offer you a volume discount.

Your people must have this information or they can’t do the job properly. Without it, you’re just hoping for the best. And we all know that hope is not a strategy. This is a DMSRetail solution for you. Don’t wait another minute. Grab it.

Maybe your District Managers aren’t doing a great job as a leader; maybe they’re not getting consistently great results. The District Management YourTime Study Course needs to get into the hands of every single one of your District Managers, regardless of their tenure or ability. They will learn some new and different ways to build a cohesive team of Store Managers who execute properly and on time; a team of Store Managers who will do their very best for your company. The course is $247 for the digital version and, as I said, we offer volume discounts. This is a DMSRetail solution for you. Get this resource into their hands and watch things get better.

Why do some stores and some districts do so much better than others? After taking market conditions and location into account…the only answer is the people running them. You may want a +20% increase and your asking a -20% District Manager to give it to you.

What’s the sense in that?

First you have to elevate your -20% District Managers. If you don’t, don’t ever expect to get your +20%…it’s not going to happen unless you provide them with help. Not handholding or spoonfeeding. You don’t have time for that, nor should you. Try the DMSRetail solution.

If you want to guard yourself against disasters on your sales floor – meaning customer/associate interactions that go bad – then give your associates the Retail Selling Skills and Customer Service Fundamentals YourTime Study Course. Get one digital copy (at just $97) for each associate – and we’ll send it straight to their inbox.

You will only benefit, and you will never lose control because this course is designed to teach fundamentals and, during every step of the way, we instruct the associate to bring questions to their Manager to find out how they would like certain situations handled. We make them understand that their Manager will give them final answers but that the course is providing the groundwork so your Store Managers don’t have to go back to retail 101.

If you find that your challenges reach farther and wider than just specific issues, then you will want to get the Ultimate Retail Success Program. Naturally, it’s more expensive because of its rich and varied content, spread throughout a huge package  and because of the additional support we give you when you are an Ultimate Retail Success Program purchaser.  The ROI on this package is immediate.  This is a DMSRetail solution for you.Take advantage of the consulting call with one of our retail experts when you purchase this Program

We recommend purchasing an Ultimate Retail Success Program for each of your Field Management people, just to ensure they have the resources at their fingertips whenever they need it and, also, to ensure strategic alignment within the organization. Again, send an email to inquire about volume discounts.

So, you can see that we have practical solutions for your everyday retail management challenges and, also, we have practical solutions for your ‘not so common’ problems or challenges.

We want to help you as we’ve been helping retailers since 1991. We’d like you to feel that you can count on us to be your ‘go to’ retail management resource. But we know you have to have faith in us in order to do that.

We invite you to check out the many, many testimonials all over our website for social proof that we are what we claim to be. We welcome your comments and questions at anytime. We love to receive feedback from our subscribers, customers and Facebook friends.

All the Success!

DMSRetail Team

PS: Place your order for a DMSRetail practical solution to your everyday retail management challenges. And help will be on the way…today!!

PPS: For a list of all of our practical solutions, here is our Catalog for your review.

Join our Facebook community and if you like us, please ‘Like’ us. Thanks!

The Value of Professional Training

Quickly answer the following  questions with yes or no

  • Would you allow a  dentist to perform an operation on your brain?
  • Would it be wise to fly  on a plane that is being piloted by a professional race car driver?
  • Should you call an  exterminator to your house to deal with a leaky faucet?

The pattern emerging here is  not subtle; appropriate training for the intended area of application is  absolutely vital. To draw on another analogy, let us look at the area of sport.  Olympic and professional caliber coaches know that the body reacts to specific  training.  A process called ‘muscle memory’ exists for athletes; this means  basically that when training occurs, the muscles in a players’ body will begin  to learn and respond more quickly to a particular situation.  Football players  don’t spend hour’s everyday practicing ice skating to become better at their  sport – they play football.  They train their bodies specifically for that game  and all of the demands that are put on their bodies/minds for that sport.  After  enough training, the movements and thoughts that are needed to compete in the  NFL will become automatic to those players.  The same is true of business  training.

Industry specific training  provides a myriad of advantages to an individual within that field.  They will  gain confidence in dealing with day to day challenges.  Having the knowledge  that professional development training provides can enable the individual to  approach, assess, evaluate and resolve problems with less stress and expedite an  appropriate solution much more quickly.   Another primary advantage of business  instruction is the potential for advancement.  Looking past the immediate  benefits of industry specific training, one can easily predict the career  opportunities that will become more available as a result of this new  knowledge.  Superiors will take notice of your initiative and thorough interest  in bettering yourself as well as the profitability of the company.  These  factors, along with the advanced skill set you now possess, will inevitably put  you at the top of the list for promotion. 

Next session of the Retail Operations Management Workshop will be held in Toronto, July 8-9-10. For more information and to register, go to:

http://www.dmsretail.com/retailoperationsmanagement.htm

Business/Profit Multipliers

There is a technique called Business/Profit Multipliers that you can use when dealing with a reality of big increases required, or requested by your higher management team.

Let’s assume that the objective is a 25% increase in sales. This number, looked at by itself, is somewhat scary.

Here is how you may want to approach it. Let’s first look at the present scenario:

Traffic: 1000 / week
Conversion: 25%
Average Units / Customer: 2
Average Price: $25
Average $ / Customer: $50
Weekly Sales: 250 x 50 = $12,500

Now instead of talking about a 25% increase, let’s look at increasing each one of our operating variables by only 10%:

Traffic: 1100 / week
Conversion: 27.5%
Average Units / Customer: 2.2
Average Price: $27.5
Average $ / Customer: $60.5

Weekly Sales Become:
Customer # Converted: 1100 x 0.275=302.5
Average Ticket: 2.2×27.5=60.5
Weekly Sales = 302.5×60.5 = $18,301.25
% Increase: (18,301.25-12,500) / 12,500=46.41

In fact, for the above scenario, to achieve a 25% increase overall, you only need to increase your operating variables by 5.5%.

Much easier to sell it to your subordinates and get a buy-in, isn’t it?

Many more practical and actionable techniques, methods and insight in the Ultimate Retail Success ToolKit.

7 Deadly Sins of Customer Service

You probably have seen the following before, but it is so valuable we just thought you would enjoy it again regardless.

Seven Deadly Sins of Customer Service

1. Apathy: A just don’t-give-a-damn attitude on the part of the salesperson or an impression conveyed to the customer in terms of “Do I look like I give a damn?”. Some people get this way when they get bored with their jobs and nobody is reminding them that their job priority is to serve the customers.

2. Brush-Off: Trying to get rid of the customer by brushing-off his or her need or problem; trying to “slam-dunk” the customer with some standard procedure that doesn’t solve the problem but lets the service person off the hook for doing anything special.

3. Coldness: A kind of chilly hostility, curtness, unfriendliness, inconsiderateness, or impatience with the customer that says, “You’re a nuisance; please go away.” It is amazing to find that so many restaurants carefully select the most moody, depressed, hostile person they can find for the hostess-cashier job, making sure the customer’s first and last moments of truth are good ones.

4. Condescension: Treating the customer with a patronizing attitude, such as many health-care people do. They call the doctor “Doctor Jones,” but they call you by your first name and talk to you like you’re four years old.

5. Robotism: “Thank-you-have-a-nice-day-NEXT.” The fully mechanized worker puts every customer through the same program with the same standard motion and slogans, and with no trace of warmth or individuality. A variant of this is the smiling robot who gives a permanent “star” smile, but you can tell nobody’s home upstairs.

6. Rule Book: Putting the organizational rules above customer satisfaction, with no discretion on the part of the service person to make exceptions or use common sense. Banks are famous for this; they usually do everything possible to eliminate all traces of human thought and judgement, with the result that no one is authorized to think. Any customer problem with more than one moving part confounds their system.

7. Runaround: “Sorry, you’ll have to call (see) so-and-so. We don’t handle that here.” Airline people have made this into an art; the ticket agent tells you the gate people will take care of it, and the gate people tell you to see the ticket agent when you get to your destination, and the agent at your destination tells you to have your travel agent take care of it.

You can improve your customer service by training your front line staff with DMSRetail’s Retail Selling Skills & Customer Service Fundamentals DVD course.


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