Showing posts with label Shopping Experience. Show all posts
Showing posts with label Shopping Experience. Show all posts

Tuesday, January 16, 2007

Judging Books by Their Covers

The reason it has taken me so long to post a comment on shopping, is the fact I have gone this long without doing anything other than grocery shopping. That changed this past weekend when I started looking at new cars.

I like bargains just as much as anyone else. So when I shop for a new car, I buy last year's model. To me, the very minor differences in this year's model are more than offset by the substantial discounts on last year's model, which plays into the hands of the advertising guru for the dealerships.

I went back to the dealership where I bought my last car and requested my former salesperson only to learn she was gone. I wanted to buy from her again, because she was so professional it made me want to come back. She was gone and now I was back to square one: "Whom to buy from?"

I asked my friends who have "recently" bought new cars looking for a salesperson they could recommend and got nothing but tales of bad, miserable, and frustrating car shopping experiences.

So I went to an auto mall and first dealership I went to was amazingly insulting on so many levels, it would've been very upsetting if I weren't a consultant who could use the experience as a good example of "bad salesmanship." Let's look at all the levels the dealership wasted money on marketing.

STRIKE ONE: There's an old saying: "You never get a second chance to make a good first impression." And this dealer team worked very hard to create a bad one with me. As I drove in I saw what I was expecting to see; the usual line of sharks waiting their turn.

But want made this memorable; in a bad way, was the way a salesperson "high fived" the rest of the line up as he made he way towards me.

STRIKE TWO: The salesperson took all of 90 SECONDS before suggesting very strongly we get me "pre-qualified on financing first" to make sure "we": don't waste time (looking at cars I can't afford). Since he did absolutely NO QUALIFYING on me at this point, how could he assume:

a) to know what I could or couldn't afford.

b) that I wasn't a cash buyer. They do exist.

c) that I didn't already have financing in place.

STRIKE THREE: I came in because I am looking for a 2006, and they were advertising a clearance sale on the older models. When I mentioned I wanted to look at the 2006's, the salesperson, implied I would be making a big mistake and kept extolling the virtues of the 2007 models over the 2006 models.

I had been on the lot for less than five minutes, and I was ready to leave. Needless to say, I didn't buy there and probably never will. The experience was so bad, I probably will never be coming back to the dealership, so they have lost me forever. If anyone asks me where to go, I will tell them where not to go.


So all the money the dealer spent getting me in the door has now gone down the drain because of a salesperson who was more interested in telling me what I want than asking me what I want.

Now to be fair to him, let's look at the first few minutes of the encounter from his point of view, because maybe I didn't impress him as a good customer. After all I drove up in a 1977 Toyota Landcruiser. It is a mountain truck that looks like it gets heavy use – which it does. Maybe he decided based on my clothing. I was wearing jeans, tee shirt and sneakers. Maybe he decided my fixation on "last year's" model implied I didn't have much money to spend.

Should any of this excuse his behavior? NO.

One of the oldest sayings in retail is "Never judge a book by it's cover." and it is so true. Back many years ago when I was in securities, an old man came into the office in stained khakis, a polo shirt with a hole in it and slippers. The broker who was taking "walk ins" that day called me and asked me to cover the front desk so he could take a cigarette break.

As soon as I got to the desk and looked through the glass doors, I saw why the other broker suddenly needed a cigarette. I didn't smoke or I might have been tempted to call someone else before the old man got in the door. But I was bored, it was lunch time and I thought this would be a good way to kill some time; and in the process learned the value of never judging a book by it's cover.

I followed my training and did a full presentation and took time to answer all his questions. After about 45 minutes he thanked me, took the information kit and told me he would think about it. I thought nothing of it until I was called to the front desk the following day to greet a visitor, and there was the old man – still dressed in khakis – with someone who turned out to be his CPA.

The old man was impressed with my patience answering his questions and opened a securities account with me for a very impressive amount. The other broker made a half-hearted attempt to split the account with me to no avail.

During my time in securities, I made a lot of money working with the old man and his wealthy friends all because I didn't judge a book by its cover.

Friday, December 22, 2006

The Times They Are A-Changing

"Dear Editor: I am 8 years old. Some of my little friends say there is no Santa Claus. Papa says, 'If you see in in the Sun, it's so.' Please tell me the truth. Is there a Santa Claus?" —Virginia O'Hanlon

In response to the above letter from Virginia, Francis Church wrote a column in the on the spirit of Christmas that has become a perennial classic (http://nanaellen.com/village/cmas/cmas-virginia.htm) this time of year.

If he had received the letter in 2006 instead of 1897, would his answer have been different?

Watching the news last night was a confirmation for me that should have been a wake up call for anyone working in the retail sector. There is a lack of Christmas spirit out there these days, and it is one of the factors driving more traffic out of the malls and onto the Net.

Two of the three business news stories on the national news had a Internet factor to them, and the only business story on the local news was about the drop in foot traffic in stores and the surprising numbers of Internet sales this holiday season.

The Bad News: The Internet is not a passing fad, no matter how much retailers want it to go away.

More Bad News: E-tailers are adapting to retailing faster than retailers are adapting to the Internet.

Even More Bad News: Unless you have got a TRULY UNIQUE product that you control the entire supply and distribution chain of, your retail model is going to be pummeled into oblivion by the Internet.

Even More Bad News Gets Worse: Doctors (http://www.doctorevidence.com/) , Lawyers (http://www.wklaw.com/), and Indian Chiefs (http://www.sevenfeathers.com/) have all developed online business models as the transmogrification of the economy into an e-conomy continues. Even as this happens, there are so many retailers out there not paying attention, it is almost as if they are wearing blinders. So many retail verticals have taken a vicious beating at the hands of the Internet, you would think the survivors would have learned by not to be apathetic.

But they are. The evidence this Christmas season to me is overwhelming proof of…and I can't believe I am actually going to use the quote I first became aware of when it was posted on the wall above the throne of Jim Jones of Guyana infamy; but here goes… "Those who fail to learn the lessons of the past are doomed to repeat them."

I watched a news story where the reporter was interviewing a Sears store manager who was commenting on the less than expected foot traffic. Almost as an after thought, he went on to reassure the reporter his store was doing fine because about 50% of their electronic sales this season are being done over the Internet.

I think one of the main reasons the foot traffic is down is there is nothing special about shopping this season. Retailers are so focused on cutting expenses, not offending anyone with decorations; they have turned Christmas shopping into a very bland experience. The very blandness of the experience is one of the reasons more people are shopping online this season.

I did a very unscientific informal survey of most of my friends and family on shopping this season, and I kept hearing the same things over and over.

"It doesn't feel much like Christmas these days."

But I didn't just take their word for it. Once again at great personal risk, I went to a few large malls, and different malls to see if my past experiences shopping this month still hold true.

Sad to say they do.

There are hardly any distinctly holiday decorations in stores. The few decorations there are in stores these days, are sterile and bland. If there is Holiday music in stores, most stores seem to prefer the Muzak version of Christmas Music - A little to sterile and bland for my tastes.

There as a very distinct lack of holiday apparel worn by the staff in the stores this year. I saw more staff in holiday dress on Halloween than I did in the malls during the last shopping week before Christmas.

In discussing my preliminary findings; a friend of mine in Michigan told me California doesn't count because it is hard to have Christmas spirit when the sun is shining; there's no snow on the ground and people are shopping in shorts and tee shirts. But he grudgingly admitted, he would rather be walking through a parking lot in Los Angeles than one in Detroit this time of year.

I thought to myself, maybe it's an economy thing.

Nope. The news stations and business web sites are reporting that national surveys are indicating consumers will spend about $195 more per family on Christmas this year than they did last year. And the online shopping news confirms this trend.

At the beginning of the shopping season, online sales were forecast to exceed $1 billion dollars. On two days, BLACK FRIDAY (the day after Thanksgiving) and GREEN MONDAY (the last day to guarantee packages will arrive in time) online shoppers spent $772 million dollars. If you take the total sales from the other twenty-two shopping days into consideration, online sales will probably beat the forecast increase of 25% over 2005's online Christmas shopping record.

The majority of the sales went to clicks and bricks stores that did a better job catering to needs of their online traffic, than they did creating a memorable Christmas shopping experience for their walk-in traffic.

And in this atmosphere of Christmas apathy at the retail store level, is planted the seeds of destruction for the Christmas spirit where staff is so afraid of lawsuits they wish customers a "Happy Holiday," if any greeting at all.

How can shopping be meaningful and special when two weeks before Christmas, people are already shopping the early sales for next year's presents and wrap? How can shopping be meaningful and special when one of the top five gifts this season is the Gift Card? No thoughtful consideration required.

How can shopping be meaningful and special when the most frequent Christmas stories on the news this season have been the mall upgrades on parking lot security and shoplifting prevention?

If advertising on TV had a Santa at all, he was marking down prices with a twinkle in his eye; delivering presents while driving a Mercedes, or whining and complaining about the competition he is getting at the mall from a cell phone company.

It's a good thing that Virginia didn't send her famous letter this season, because the answer she would have gotten back would have been a whole lot different.

Monday, December 04, 2006

Lost & Found

Each time I go into the stores and malls this Christmas season it makes me a little sad because the last thing I see is anything resembling Christmas spirit. This past weekend I had some errands to do so I decided to see if I could find any signs of Christmas spirit while I was at it. I went into several stores and looked. The signs were not good.

Everyone was rushing about and not a smile to be seen anywhere. No one is wearing anything resembling Christmas garb. No Christmas sweaters. No Santa stocking caps. If it wasn't for the unusually full shopping carts and Holiday Themed Sale banners you'd think this was a normal shopping weekend.

I thought to myself, "Maybe it’s a stealth Christmas spirit." So I tested that theory. "Merry Christmas!" I said to a passing shopper. He did a double take and muttered "Thanks." as he moved on down the aisle. I know that scientifically you need more tests to prove a point so I continued to do experiments saying Merry Christmas to all the shoppers that I met on my way through the mall to parking lot. I kept score on the back of an envelope and test results proving the existence of the Christmas spirit did not look good.

Positive Results = 2

Negative Results = 6

Neutral Results = 16

"What?" Or Some Variation = 4

It was beginning to look like Christmas spirit was on life support until I went to pick up a pizza. The store was "over the top" with a huge tree and Christmas decorations. The store smelled like a fresh cut tree. There was Christmas music in the air and as each customer entered they were greeted with an enthusiastic "Merry Christmas" from the staff behind the counter dressed like elves.

The owner was dressed in a Santa hat pushing around a cart, dispensing hot cider; eggnog and home made Christmas cookies to customers while they waited for their pizzas. I looked around at the rest of the people and saw something I didn't see all day - Happy People.

As I sat there and waited for my order, I felt happy. Going with the feeling, I turned to the table next to me and said "Merry Christmas" and four happy people in unison wished me a "Merry Christmas." I turned to the table on the other side of me, and they wished me "Merry Christmas" first.

I watched smiles appear on the faces of customers as they walked in the door and were greeted sincerely by the elves. The owner wished me a "Merry Christmas" again as he refilled my cider.

The waitress beat me to the draw wishing me a "Merry Christmas" as she delivered my order. I experienced more Christmas spirit in a pizza place than I did in the mall.

I am pleased to be able to say there is still Christmas spirit out there, but you just have to look a little harder than days gone by to find it. It is worth the effort. Finding it brought back many pleasant memories of past Christmas seasons. It didn't take much to take Christmas spirit off life support for me. All it took was happy and sincere people wishing one another a heartfelt "Merry Christmas."

The final confirmation for me that commercialism can be done in good taste without spoiling Christmas came with my pizza in a take-home box printed to look like a present. On the box was a red envelope with a card. On the front of the card was picture of the Santa (the owner) and his elves (the staff) holding pizzas with the letters MERRY CHRISTMAS spelled out in Toppings. Inside, the cynic in me was ready for a "spoiling moment" of pure and unadulterated commercialism in the form of an ad or a discount coupon inside the card.

Instead were the following words,

"From our Family to yours this season of Joy and Remembrance."

I started the day looking for something important to me I had feared lost. Just like the first Christmas taking place in a humble stable; I found the Christmas spirit alive and well in a humble pizza place.

Sunday, November 26, 2006

Avoiding Mall Brawl

I have a confession to make. I have probably had one of the best Thanksgivings I have had in a long time. I didn't watch TV. I wasn't subjected to an endless barrage of ads pushing Holiday Sales. I wasn't in line at a Big Box Last Night waiting for Midnight Madness (appropriately named) along with tens of thousands of bargain hunters around the country. I stayed home this weekend and avoided the insanity.

Having done all my shopping very early buying mostly on line, I was done before Thanksgiving. And I was not the only one. Many people I talked to about their shopping plans were "mostly" finished before Thanksgiving. So it was interesting to hear on the news that traffic was heavy but buying in the stores was light.

Buying online this weekend was a different story. Wal-Mart's website was hit so hard on Black Friday it went down several times for a total of 15 minutes as a estimated 22 Million People tried to access the TV and Electronic pages. Wal-Mart estimates this blackout probably cost them hundreds of thousands of dollars as frustrated shoppers went to other sites to buy.

E-Stores are reporting a different story. Ebay sold 14,000+ of the hard to get Xbox at an average price of $1,200, or nearly three times the retail price. Amazon.com sold out of its entire supply of X-Boxes in 29 seconds. Sold out it's entire supply of Mongoose Mountain bikes and Barbie Dolls in 15 minutes. Pricegrabber.com saw a 225% spike in traffic compared to the rest of November and most of that spike was on the TOY pages. Shopping.com saw a 40% spike in traffic over the daily average for the rest of the month.

The Nation Retail Foundation forecasts that 137 million shoppers will visit retail stores this Christmas shopping season (between Black Friday and Christmas Eve). Ebay had 7.5 million shoppers on Black Friday alone.

Depending on which research group you watched on the news shows this weekend; the estimates for online retail sales over the Thanksgiving weekend were between $1.15 billion and $1.73 billion. The general consensus is that web sales this Christmas season will jump up 30% percent over the same period last year to more than $27 billion.

The big box stores saw huge crowds and disappointing sales. To make matters worse, the cost of drawing in the crowds was huge considering the level or promotional pricing and discounting. Wal-Mart is now projecting flat sales to -.01% lower than last year for Black Friday. Other stores are reporting similar experiences.

I didn't shop online to save money. Truth be known; including shipping and insurance, I probably paid close to what those people who were standing in line paid.

I shopped online to avoid the mayhem usually associated with Christmas shopping. I hate the "hyper intensity" and "shark feeding frenzied" atmosphere in the stores. I hate the bad background music interlaced with endless "price promotion" broadcasts. I hate the way the stores are so full of merchandise, signs, and displays you have to almost walk sideways in the aisles.

I hate the way the worst in people come out in what is supposed to be one of the most joyful times of the year as local news delights in the endless running of the "road rage" incidents captured on video in mall parking lots.

I hate having to run gauntlet of panhandlers in the parking lots and coupon/flyer dispensers strategically positioned at the entrances like offensive linemen; and I am not alone feeling this way. The last couple of years the purchase of GIFT CARDS has increased dramatically. It is estimated this year there will be a 50% increase in GIFT CARD purchases this year.

I personally think that unless stores can improve the shopping experience to the point they won't need to use aggressive discounts to lure shoppers, the pendulum is going to keep swinging towards e-shopping.

I think the differences in shopping experiences between store shoppers and e-shoppers this Black Friday was best summed up by a television news interview of a woman who had been standing in line at a store since noon on Thanksgiving waiting for the store to open at Midnight. "I'm feeling pretty stupid about now."

Tuesday, September 19, 2006

Singing Pigs and Mimes

I believe in making the shopping process more experiential, more educational, and more entertaining. There are a lot of companies that do a great job making the shopping process fun and entertaining. Costco this past Sunday was not one of them. There’s an old saying that goes: “Never try to teach a pig to sing. It’s a waste of your time and only irritates the pig.”

What about the people who must endure the singing pigs? I ask this question because I was shopping at a Costco last Sunday one of the vendors was having live demonstrations of his product…Your Home Karaoke System.

I am a big fan of product demonstrations, but this one was missing an essential component – someone who could sing. Some of the worst experiences in life involve bad singers; Happy Birthday songs at the local restaurant, outtakes from American Idol, and Karaoke. At least with the Happy Birthday songs, they are over in less than a minute. With American Idol you can hit the “Mute” button. For some reason Karaoke singers believe volume overcomes lack of talent and that is where the problem begins.

You have to look at the roots of Karaoke to really understand the phenomenon. It began in Japan during the late 1980’s as a way for emotionally repressed “company men” who were culturally obligated to spend their evenings after hours bonding with their bosses while drinking copious amounts of alcohol, to vent their feelings of frustration.

Having attended a few of those sessions, it always appeared to me the singers were bad on purpose as a way of torturing their superiors in a socially acceptable way for forcing them to go drinking instead of going home after work. I have never heard of a music star in Japan who got their start at the local Karaoke bar.

There are companies out there who do a great job at making the shopping process more experiential, more educational, and more entertaining. The first one that comes to mind for me was Harry’s Farmers Market in Atlanta Georgia. When I first moved to Atlanta, Just about everyone I met, upon learning I was new to the area asked me if I’d been to Harry’s Farmers Market yet, and went on to tell me wonderful stories about their shopping experiences. I went and learned how much fun grocery shopping can be. The experience defies documentation in a format such as this.

Then there was a music store that sold records, instruments and sheet music in Honolulu called Da Music Place (long since closed and evicted to make way for yet another high rise condo) that featured local musicians playing on a small stage in the store three days a week from 6pm to closing. On weekends the instructors would offer free lessons on guitar and ukulele. It was a fun way to spend a few hours learning about music while shopping for music.

One of my favorites was a bar and grill on the beach on north coast of Brazil. When you ordered food at the bar, the waiter would bring it out on a plate raw and lead you outside to this huge donut shaped grill out on the beach that had a couple of chefs in the middle. A chef would quiz you about your knowledge of cooking, of spices and your tastes and make recommendations. Then they would coach you through the process of cooking your dinner.

It was there I learned a style of spicing and grilling fish that has caused me to receive high praise for my cooking skill from family and friends for twenty years.

Barnes and Nobles and Borders bookstores have learned that making the shopping process more experiential, more educational, and more entertaining is a good way to protect their business against Internet predators such as Amazon.com.

There is enough aggravation in our daily existence that we don’t need more of it while shopping. They only thing I can say good about shopping at Costco last Sunday was they didn’t have mimes manning the tasting booths.

Monday, August 21, 2006

Perspectives

Last Wednesday morning about 7am, I pulled into the parking lot of a coffee shop in Pacific Grove. I mention Pacific Grove, CA for a reason; it is an upscale retirement/baby boomer community. When I pulled up I admit I was playing the stereo a little loud and I had my windows down. The couple sitting in the Porsche SUV next to me was giving me “stink eye (Hawaiian slang for a disapproving look).” When I stepped out of the car their look turned to one of surprise when they saw a fellow “baby boomer” staring back at them.

I tell this story because it illustrates the problem with preconceived ideas. They heard the music coming out of my car – “GORILLAZ/Fire Coming Out of the Monkey’s Head” – and assumed they were about to encounter a twenty something with tattoos and piercings, and got me instead.

It was kind of fun to watch their body language as they attempted to recover with style and grace and failing.

I have a “twenty something” son, and for many years we have been sharing the radio. As a result, he is as big a Doors fan as I am; and I have developed an appreciation for his music. In fact the playlist on my Ipod according to a boomer friend of mine is “defiantly twisted.” It contains the usual classic rock groups, Hawaiian music, and a mix of:

Blink 182
Korn
Tool
Powerman 5000
Sublime
Bucket Head
Gorillaz
Insane Clown Posse
Creed

among others. I bring the subject of music up because of a problem I have observed in a number of stores selling big ticket items: “conflictive staffing.” The challenges faced by salespeople dealing with customers of different generations. It is a two way problem. It is a problem that more storeowners need to recognize and deal with because it is costing them money.

Do you play music for the staff who you pay, or for the customers who pay you?

I went into the coffee shop in Pacific Grove to get breakfast. I was thinking a large coffee with a sesame seed bagel with cream cheese, and a chance to get on the Internet to check and respond to emails. As soon as I opened the door, I was hit by a wall of loud music that was hard for even my expanded tastes to take. The rest of the customers were boomers and not enjoying the loudness or the harshness either.

As I suffered through waiting for my order, I decided that I didn’t need to check my emails, got my coffee and bagel to go and left. The next four days of my stay in Pacific Grove, I went to a different bagel shop for breakfast. It had no Internet access, but it also had no blaring “Grunge Rock” music either.

In my little town, which has a mirror age/income demographic to Pacific Grove; the owner of the coffee shop is on top of the “conflictive staffing” challenge in a way the owner of the coffee shop in Pacific Grove is not. This makes for a good contrast observation.

When I go into the bagel shop in my town, most of the tables are full. There is no music blaring. There is no music at all. Instead of blaring music the customers talk to one another. Most of the people are regulars. Most of the tourists in town that discover the place come in each morning during their stay becoming “temporary” regulars.

I understand the young staff in Pacific Grove had to come in very early and work hard to have the product ready by opening time. I know from experience good (subjective I know) music loud during the very early morning hours creates the kind of atmosphere that helps make the morning routine more enjoyable.

The very young staff at the coffee bagel shop in my town has the same morning routine. The difference is when they open the doors; they create an atmosphere that makes the morning routine more enjoyable for the customers.

Tuesday, August 08, 2006

Fade to Black

I am watching the retail auto industry with great fascination. It reminds me of the title of a book by Kurt Vonnegut: “Slaughter House Five: A Duty Dance with Death.” Based on what I saw happen last year and again this year, the US automakers are dancing as fast as they can.

The current “death dance” began in earnest the summer of 2005 when the Big Three all launched marketing campaigns pushing price discounts to drive sales. The “Employee Discount” program launched by General Motors was quickly followed with similar programs launched by Ford and Chrysler. The Big Three spent millions of dollars advertising their discount programs and unit sales increased dramatically. By the end of the summer all three companies succeeded in their goal to increase the number of units sold. They all set new volume records.

By the end of the year all three companies were in deep financial trouble and the business news stories were full of “bankruptcy” predictions. By the second quarter of 2006 GM was giving employees up to six figures to quit. Ford was laying off 30,000 to 45,000 people; closing factories and shifting a lot of manufacturing to other countries. This year looks like it is going to be a more vigorous dance than last year based on the ad campaigns for summer of 2006.

On the other hand, the foreign manufacturers didn’t play the discount game and saw a bigger increase in sales than the Big Three during the summer. More importantly, their increased sales were at full retail pricing. Toyota is now the Number two retailer jumping over Ford and their stock value is ten times that of GM. Nissan is talking about buying up to 25% of GM. Honda made so much money they don’t know what to do with it all so they are branching out in airplane manufacturing.

Why didn’t sales fall for the foreign manufacturers in the face of such a massive discount sale by the Big Three? The foreign manufacturers knew something that the Big Three didn’t know. They knew today’s car buyers are now more focused on the process of buying a car than they are on the price of the car.

It doesn’t mean that price was unimportant – it just means price wasn’t the primary decision factor for most of their buyers.

I got off on this whole car-buying tangent because I just noticed that one of the local car dealers is the latest “Death Dancer.” He has just finished his “LIQUIDATION SALE.” The doors have closed and rumor has it the site will soon be turned into another pharmacy to match the ones on the other three corners.

I never bought a vehicle from my local car dealer. Having heard horror stories from those who did caused me to stay away. I mention this because apparently there were enough horror stories out there enough people went out of their way and bought cars in Reno (86 miles east) or Sacramento (79 miles west) rather than shop at the local dealer.

Although I never shopped there, I did go there on several occasions and it was easy for me to see what the problem was: “conflictive staffing.” It’s a new term and you read it here first. I use it to describe the conflict between the sales staff profile and customer demographic profile. In other words you had an older (baby boomer) customer base that never really clicked with the 20 something salespeople.

This area has an older population. According to Walgreen’s who purchased the site, they have been looking to move into this area for a while because 33% of the area’s population is 55 years or older (That explains why we will soon have a major pharmacy center on all four corners.) compared to 9% for the state of California as a whole.

Say what you want about the baby boomer generation, but as a retailer there is one thing you need to know, we have money, and we want respect. If not for ourselves, at least for our money.One thing I know that minimizes the enjoyment I get while shopping is the generational conflict. I am older; most of the salespeople I encounter are younger. Being younger is not a crime, unless they are in management positions in retail operations…and untrained.

Shopping is a feast of the senses. The more senses I (and other shoppers) engage, the better the experience and the more likely I (we) will buy. Realtors have been all over this for a while. I don’t think there is a home showing anywhere without the obligatory smell of fresh bread or cookies in the kitchen to engage the sense of smell. There also always seems to be fresh cut flowers on the table or in the living room while Yanni plays on the stereo engage the sense of hearing. Realtors are very careful to engage and pace themselves with the demographic profile of their customer. Too bad that doesn’t happen often in retail.

I went into a furniture store last week, and the music (and I can’t believe I am actually going to say something my father once told me) playing in the store was anything but music…to me. The music must have sounded good to the salespeople who were kind of moving to the beat (?) as they walked around in the store (mostly by themselves) but it drove me out of the store. It wasn’t just this store.

A week ago when a business trip got extended, I went into a men’s clothing store to buy shirts. The store was empty save for two young salespeople. One was on the computer. The other was on her cell phone. Both were too busy to help me. The music gave me a headache. Young, untrained salespeople badly managed, is the reason why car dealers, and many other retail stores are doing the “duty dance with death.”

Not feeling very appreciated is one thing. Not having my wallet appreciated is the opening bar of music calling more dancers to the floor. So I was treated in this clothing store pretty much the way friends of mine were treated in the now defunct dealership. Badly! So my wallet and I left, and since I’ve yet to learn to buy clothes over the Internet, I went to the mall. That is why all the strip malls have the same cookie cutter stores in mall after mall after mall. They are bland and boring, but least you have an idea what to expect.

It doesn’t take much to avoid joining the other "death dancers" on the conga line. If you are going to hire young salespeople train them. Train them to pay attention to customers. Train them to respect customers. Train them to serve customers. That’s all it takes to get me to shop in your store.

Thursday, August 03, 2006

Another One Bites the Dust

Just when you think things couldn’t get any more bizarre in the retail world, they do. If I didn’t know any better, I would think there was a workshop out there for owners and managers on “100 Ways to Abuse Customers.” If a workshop like this existed, it would have been led by Orin Scrivello, the Dentist played by Steve Martin in the movie “The Little Shop of Horrors.”

Yesterday I was heading home from a business trip. I was near the end of a four-hour drive, when I pulled into town and I needed to use the restroom. I also wanted to pick up a couple of movies, so I stopped at the video store thinking I’d kill two birds with one stone. I walked in and went first to the restroom but the door was locked.

Thinking someone was in there a I waited for a few minutes, and then I noticed a sign taped to the wall about two feet from the door that read: “Ask for key at counter.” In my mind I was wondering why they didn’t put the sign on the door as I went to the counter to ask for the key.

After waiting in line for about five minutes while the clerk checked out two people ahead of me, I finally got to the head of the line and asked for the key. The clerk got a very annoyed look on his face, picked up the phone and called for someone to cover the counter for him. While waiting for his replacement the clerk told me he would open the door for me. Before I could ask, “Why not just give me the key?” his replacement arrived and he led the way back to the restroom. Along the way, he explained that he has to escort me; “company policy.”

Once we got there he knocked loudly on the door, and in a voice that everyone in the store and the next two stores could hear asked, “Is anybody in there?” After waiting about ten seconds he knocked again with all the subtly of a drummer in a marching band. Receiving no answer, he opened the door and walked in.

I was stunned because now I had to wait again. If I had gone to the gas station instead of the video store, I’d have filled the tank, got a newspaper and been half way home by now. But before I could leave out of frustration, he came out and in a booming voice announced, “I have to inspect it before I can let you in.”

After I finished in the restroom, I asked to see the manager. I wanted to let her know what I thought about the new policy. Unfortunately the store was short staffed and the manager was manning a check out window and there was another line in front of her and the last thing I wanted to do was to stand in another line I this store. So I wasted my time, didn’t get any movies and left.

My philosophy is that life is too short to suffer situations I don’t like. So I will make changes. I have heard about Netflix from a number of my friends. Up to now I haven’t looked into it, but I will right now.

I just got back from Netflix. I have very high expectations because it was easier than I thought it was going to be. Much more affordable than renting videos, and a bonus for me...NO LATE FEES. I think I am going to like this service a lot. I have completed my list and my first videos are on the way. And no public humiliation required.

What did this one episode of bad customer service cost the business? A lot.

I am not a very heavy user of movie rentals compared to a lot of people I know, but I rent two or three videos a week or between one hundred thirty and one hundred and seventy videos a year. My circle of immediate family and friends do about the same or more. Some a lot more. I know that once I start receiving my movies a lot of my friends and family are going to try it if for no other reason to avoid late fees.

Will my defection from the local movie rental to net movie rental be the triggering event in their demise? I doubt it. But my defection is going to have an impact on them once the ripple effect kicks in and the members of my circle of influence start to recommending the service to their circle of influence and the number of movies being mailed to our town escalates at a geometric rate. This has happened in our town in the past as Internet book buying helped cause several book stores in town to close.

Bad customer service at local stores (and the new customer service policy on "restroom access" at this store is a text book example) is the primary reason why the Internet Retail is growing at triple digit rates. Will this store survive the Internet? I don't know, and because of the way I was treated, I don't care.

Tuesday, July 18, 2006

What's Love Got to do With It?

I love dealing with local businesses. I had a good relationship with a copy/print house in town. My local copy store is a young business that is growing fast, and in doing so I think they are planting the seeds of their own destruction.

I walked in this afternoon with a copy and bind job that would have cost me about $400 dollars. It is a good-sized ticket in an operation that does mostly $2 - $5 dollar sales during the day - at least when I have been there.

Normally when I walk in I am greeted properly. I am given prompt and courteous attention. Things are done in such a smooth and professional manner I am usually out of there in ten to fifteen minutes feeling loved. For some, today did not go so smooth or professional and it took me almost an hour and I left empty handed and definitely not feeling loved.

It all started when my color laser printer died this morning while I was trying to print covers for some training manuals. Normally I go to my copy/bind shop and have them print the number of workbooks I need, and I supply the color cover copies. With my printer not working I decided to call and ask if they have the software program to print the workbook covers (something I’ve yet to have them do for me) and was put on hold.

After about five minutes I hung up and called back and before I could say anything I was informed “XYZ Copy & print. Please hold.” After another five minutes waiting, I hung up and called back again, and before I could utter a word was put on hold again.

A person smarter than me would not have driven 20 miles to the shop after that experience. But I am a loyal customer and justified what happened, thinking they were having a peak moment at the time I called. I don’t know why I thought they would be better to me in person than they were on the phone; but I wanted an excuse to go to town and see a movie and this was as good an excuse as any I would have today.

I walked in the door and knew that I had probably made a mistake. I saw only two familiar faces behind the counters with three new ones, and standing room only in front of the counter. The two familiar faces were on the phones obviously trying to straighten out problems. One of the unfamiliar ones was trying to figure out how to locate a job on the computer and not having much luck at it. The other two were trying to handle the crowd at the counter. It was getting uglier and the Owner was nowhere in sight.

I was tempted to leave and go kill some time at Starbucks before going to the movie, but I really needed to get these workbooks in the job queue today so they will have enough time to print, copy and bind them in time to be ready for shipping to a client tomorrow – so I stayed.

Thirty-five minutes I stood there ignored despite many attempts to get someone’s attention. It was the phone scenario all over again, this time in living color. About that time the owner walks in and looks at the chaos and starts walking around trying to get the logjams cleared to no avail.

After waiting for another fifteen minutes I decided that I had waited long enough, and it was getting closer to my movie start time. So I left feeling ignored and went to another copy/print shop. Her employees had driven me into the arms of another store.

In the beginning of this article I said I loved doing business in this shop, but when it comes to business “What’s love got to do with it?” (I’ve been waiting a long time to use that line – Thanks Tina!) Research into consumer behavior has shed some light on the reasons why customers stop patronizing a business:

1% of them have passed away.

3% of then have moved.

5% patronize establishments recommended by peers.

9% of them find cheaper alternatives.

14% of them are dissatisfied with the product.

68% never return due to an attitude of indifference by the staff.

These numbers reveal that 32% of customers never return for reasons beyond the control of storeowners, but 68% never return for reasons that storeowners can control.

What was the problem here today? It looked to me like the owner made a few desperation hires and threw them out on the floor with very little training. If we had been able to talk, I’m sure she would have told me that a few of her people moved to other jobs with very little notice.

On top of the resignations, she had increases in business and had to get the new people on the floor quickly to keep up with the traffic coming in the door and probably didn’t have time to train them. It’s an unfortunate set of circumstances and just bad for her business this happened. Because of today, I was driven into the arms of another copy center. Now I am torn between the two.

Our business relationship took a hit, but because I am a loyal shopper, I will give them another try, but it will be with a critical eye. In the end, I have to do what’s right because its business, not love.

Sunday, July 16, 2006

A Simple Plan

I find it refreshingly odd that one of the best salespeople I know doesn’t know he’s a salesperson. He is a lot attendant at my favorite auto salvage yard. I always go to him because he knows the yard better than anyone else in the place. He is a wealth of knowledge about most cars ever made. He has a way of answering stupid questions without making the asker feel stupid.

The only thing that bothers me about him is the fact he is so popular that there is always a group of part scavengers vying for his attention so I end up having to wait.

Today I had a simple plan. I figured that if I was the first person through the gate on a Sunday morning, I would have him all to myself for at least an hour…after all it was Sunday. I figured that most of the serious (younger) do-it-yourselfers were going to be a little slow getting up and out to the salvage yard on a payday weekend Sunday.

I also went prepared. I had my Chilton Guide with me so I could look at the diagrams and make sure I got all the relevant parts to the current project. I had digital photos of the project I was working on. I also brought my entire toolbox to make sure I left no bolted treasure behind.

I left at 5 am, giving myself plenty of time to make the 65-mile drive. I took my largest thermos with me and stopped at a Starbucks on the way to fill it up. An hour later I pulled off the highway and since I had plenty of time, I decided to stop at one of my favorite bagel shops to get a bagel for breakfast before going to the salvage yard. That was where my simple plan began to fall apart.

Normally the owners pull the morning shift, but today they weren’t there. I made a comment to the man behind the counter about the owners finally taking a day off and discovered my bagel place had new owners. Since this was my first time in under the new management, one of the new owners asked me if it was okay ask me a few questions.

I have never been “interviewed” as a customer and quickly agreed because I thought this was going to be an interesting experience. The owner “comped” me on the bagel, poured the two of us coffees and sat at the table with me. He pulled out a form that had a bunch of preprinted questions on it, and for a while I got to experience what I think my client’s salespeople and customers experience when I sit down and interview them.

He then went through a bunch of questions about my bagel buying and bagel consuming experiences. He asked me about my likes and dislikes with his store and other bagel stores I have been to around the country.

He asked me about my thoughts on bagels and the eating out experience in general.

He then outlined some of the ideas he had about the future of the bagel shop and asked my opinion. I though a lot of his ideas were good. I didn’t care for a few of them, and he took pains to understand why I didn’t like them.

He went on to ask me for my suggestions about what I thought would make my bagel buying experiences better. I thought for a few moments while he refilled the coffees. I shared some ideas I had and we discussed them at length. He took notes on my suggestions, and I felt proud and honored.

By the time we finished our third cup of coffee, I was pleased with the new owner. I began to regard him as a new friend. I know I will probably come more often than I did in the past if only to watch his progress and to see if he liked any of my suggestions enough to implement them.

I said goodbye and went out to my car. As I started the engine the radio came on announcing the time and station ID: “This is NPR. National Public radio. It’s 7:30 and you’re listening to weekend edition.” It was 7:30 am and I was still thirty minutes away from the salvage yard. Instead of meeting my expert salesperson at the salvage yard, I met a new one at the bagel shop. Not the good day I had planned, but a good one just the same.

So much for a simple plan.

Monday, July 10, 2006

The Shopper

Once upon sales floor dreary, scanning products ‘til eyes were bleary,
Over many a sales tag proclaiming, “lowest price galore” -
while I walked on not yet buying, there came a sudden crying,
A moan of some one gently trying, trying hard to sell me more.
“T’is only our best for you I offer. Only that and nothing more.”

Ah, distinctly I reply, on that hot July, “I am not ready yet,to buy."
"No matter how hard you try, until I see what’s on the floor.”
Eagerly I wished for space – without a salesperson in my face,
unless he could build a compelling case – on why I should buy,
because my cart contains what I came here for.

With a silken, sad, uncertain telling, while offering one small package
that thrilled me – filled me with fantastic chills never felt before.
So that now, to calm my anxious mind, I take the offering so sublime,
my hands on this are shaking, deep inside something’s waking. I cry
“Tis the last I’ll buy. Only this and nothing more.”

Wandering my needs grow stronger, hesitating no longer,
I call salesperson I had before; “you are good so show me more.”
I thought my needs were met, my cravings satisfied.
Little did I know as I was starting the ride,
by the time it's finished, I’d be happier - though poor.

Box after box I did carry, ‘til my arms grew tired and back grew sore,
my salesperson kept talking until my cart had room no more.
Needs he found I have are crying. And credit cards I have kept flying -
signs my salesperson’s trying, to empty out his pricey store.
“Mercy for my wallet, kind sir.” I implore. “I want it all,” He replied.
“Only that and nothing more.”

Alone at home still reeling, from having experienced the feeling, of
him listening so clearly, serving me so dearly; I trusted him and more.
Having my needs met, I nearly wept, as the products all I kept.
I looked at boxes with no regrets for the money that I spent.
In fact, more than happy I went shopping at my local store.

Once in a great while I meet someone that makes buying a pleasure.
I had fun that long I’ll treasure, and against him, others I’ll measure,
as I go from store to store.
If only more were like him, there’d be more local buying.
And the Internet would lose its place as a growing retail space,
returning shopping to local stores, who satisfy customers evermore.

Sunday, July 09, 2006

No Good Deed Goes Unpunished

My computer equipment is three years old and is starting to give me trouble. I decided to buy a new computer network and replace my existing home office network. I walked into a computer store and let the salespeople try to work their magic. After walking into the store I began to wonder, "where have all the salespeople gone?"

I came to buy something and my initial impression of the store was not good. I was ignored upon entering - par for the course - and ignored the entire time I was in the store. That was fine with me based on the attitudes I see walking around. Unfortunately for me, I needed to ask someone about the one of the products I was interested in due to lack of info on the display.

I look around for a salesperson and the only one in view is standing behind one of the display counters. I stand in front of the counter and wait to see how long the salesperson will talk on her phone to one of her girlfriends. One minute goes by.

She finally acknowledges me with her eyes and she points at her phone and keeps talking. I have no idea why she points at her phone. I can see she is on it. Two minutes go by.

I look around the store to see if there is any other salesperson available. There are two at the back of the store talking to each other. As I start to move towards them, they walk into the back as one of them pulls a pack of cigarettes out of his vest pocket so I return to the counter. Three minutes go by.

I try to interrupt her by asking, "Are you going to be much longer?" She excuses herself to her caller and implies I am being rude when she tells me "Can't you see I am on the phone? I'll be with you in a minute." I am tempted to say something from a professional point of view but in I decide not to waste my time. I look around one last time to see if the smokers are back. Four minutes go by.

No wanting to waste any more time, I decide to go home and buy two new computers, some wireless networking equipment and two laser printers (one black and white/one color) over the Internet. If am going to be treated rudely, I might as well do it from the comfort of my own home. The downside for me is that I will have to wait a few days for everything to arrive frustrating my need for instant gratification.

As I walk for the door, a manager type approaches and asks me if I found everything. "Yes," I reply, "accept good service." She gets an annoyed look on her face as she responds with a lame "could I help you?" in a tone that clearly implied she didn't want to. "No thanks!" I tell her. "I'll just wait for the G.O.B." She then gets a stunned look as she recognized that by using that phrase I was probably someone in the trade.

As I walked out I thought to myself that I could do a good deed here. I could tell her what is going on her showroom floor. I could tell her how the attitude of her salesperson just cost them a pretty good-sized sale. But I think she already knows. Besides, I was off duty.

I had other reasons for not volunteering: they are not my clients, she did not ask, and one phrase I have learned the hard way in my life is that "no good deed goes unpunished."