Customer Service – Isn’t It the Little Things That Matter?

In Charles Dickens’ book A Tale of Two Cities, he starts by saying “These are the best of times, these are the worst of times.”  Within the last week, I experienced the best customer service and the worst customer service I have ever experienced.  They were both pertaining to doctor appointments and scheduling.  The worst customer service experience was about an appointment for a minor surgical procedure.  This doctor was very busy and it was difficult to make an appointment, but I was able to make an appointment 5 weeks later.  Fifteen minutes before I was ready to leave for the scheduled procedure, I received a phone call cancelling this appointment because of an emergency the doctor had.  

I asked when it would be re-scheduled, and I was informed that the doctor was busy for the next 3 weeks.  Then the person informed me that he would have to get back to me.  I did not receive a phone call the next day, but I did call the office and left a message which was never returned.  Then, I called back and I was told that the other doctor in the office could do the procedure two days later, and I did take the appointment.  Why wasn’t I told this before and why did I have to make the call?  The bottom line: I did not receive a feeling of professionalism and consequently cancelled the appointment.

I am sure the doctor would probably have done a great job, but because of an arrogant “I am doing you a favor” attitude, he lost a patient and probably doesn’t even care.  However, if this happens enough times, he will care.  

Now contrast that with another doctor’s office that confirmed an appointment in advance.  When I was there for the procedure, I was taken right on time.  Everything that was going to be done was clearly explained (I had received the same information in advance).  Then I received follow-up calls, not just the day after but also 3 and 5 days after just to be sure everything was OK.  

How does this all apply to us rests in the area that I believe is the root cause of 90% of all customer service issues we face.  That is: controlling expectations.  What did I expect from both of these experiences?  I think basically the same thing: a reminder call, a short wait, a clean office, the procedure done in a professional manner, and a follow-up call.  But that’s not true.  If you read carefully what I wrote and what I was complaining about, you will realize that the part that really annoyed me the most was not so much the change in appointment, but rather the “attitude of the service provider”.  He didn’t make me feel important.

So, is it the services that you offer or is it the way that service is delivered that is more important?  There are two parts to every business transaction.  There is the business part, such as all of the items that are mentioned like reminder calls, clean offices and follow-up calls.  However, it is the human part that creates delighted customers, raving fans, and the coveted word of mouth advertising we all seek.  

I have probably described this wonderful service experience to 15 people of how impressed I am with this talented doctor. He truly cares about his patients because he has created an atmosphere and a way of doing business that makes the customer feel important and special.  How are you making your customers feel important and special?  

I have always been of the belief that service is selling and selling is service.  When you are servicing a customer well, you are truly selling yourself, which is the first step of selling anything.  It is difficult for any of us to buy from someone we don’t like or respect.  The bottom line is as Walt Disney said, “everything speaks”.  The attitude of one person reduced the business revenues and created a negative word of mouth effect. On the other hand, the management of another business increased revenues and created positive word of mouth advertising.

The sad part about this scenario is that they don’t even realize what they are doing and the effects they are having on their business.  The reason for that is it is a slow growing cancer that eventually will kill a business.  What is the solution?  Have a friend shop your store, hire a mystery shopping company, and if nothing else, walk through your store and your procedures the way a customer would.  It might just change the way you do things.  It’s the little things that matter.

Readers’ Response on How to Motivate High Potential Employees

First, let’s thank Eunice for sending in a very interesting scenario that has brought out some really terrific responses.  The thing that is the most amazing is the wide variety of the ways people would handle this situation.  It’s hard to say what’s right and what’s wrong although many people certainly have their opinions.

I think the main issue here is the separation between employer and friend.  Can an employer be a friend?  Some people say no, however, my personal opinion is yes, an employer can be a friend of an employee with one condition.  That condition is that the employee NEVER puts the employer in a compromising situation, the way Tracy put Eunice in.  It works the other way as well.  An employer should never put an employee in a compromising or embarrassing situation.  Basic management says you never reprimand an employee in public.  What is critically important to understand is that the health of the business comes first.  

By Tracy not coming in when she is expected, it hurts the business.  It is not healthy for the business.  The reason why is ownership cannot depend on her, and her co-workers can feel slighted because you have one employee who is on a pedestal and can do anything they want.  Can’t you hear it now ”that’s not fair” and it hurts the morale of the business.  The owner also loses credibility with the other employees because of poor management practices.  Lastly, the customers become the biggest losers because she is never there when they expect her.  

Having said all of that, I still personally would take the loss of such a talented employee as a personal defeat.  I would look at having to fire her as a sign that I did not manage the situation as best as I could.  The following are excerpts from the responses received from this article.  You can read the complete responses on my blog at ricksegel.com/blog. 

• Wow! That has DEPRESSION written all over it! Sounds to me like Tracy needs real help! It makes perfect sense considering all that has happened to her.  Still he fact that she's such a wonderful employee and quite capable day.  I don't think this is a discipline problem. She seriously needs mental help!” -Donna Erwin
• “You need to sit down with her and confront her.  She will probably  refuse at first, but it must be done.  She needs professional help.
  
  Plan on making arrangements to meet with her at least twice a week. You will need to make her feel grounded and loved again before she can move on with her life and enjoy working at your store.  
  
  It’s not usually the responsibility of an employer to make things right but this could be a worthwhile investment.” -Mehdi
• “Encourage Tracy to attend classes and you may even offer to pay something for them.  Working toward a degree will boost her morale.” -Melissa Bailey
• “Have her champion a cause through the store, one that might be close to her situation, such as a cause for single mothers.  Find a charity that is in alignment with her needs. This will give her more of a sense of purpose and may motivate her to have better attendance.” -Phil Wrzesinski  
• “You may not want to fire her, but allowing her to come as she pleases is only enabling Tracy to continue this behavior. You can't be both her friend and her employer, so you will have to choose which one you would rather be. If you choose to be her employer, than perhaps a 30 day review should be set up, with your expectations clearly stated - including letting her go if those expectations are not met. After 30 days you would need to decide - does she stay or does she go. Sounds like tough love, but Tracy is an adult. The choice is hers.” -K. Wooden
• “Regardless of the reasons, this behavior is not appropriate and establishing boundaries and limitations is up to the employer. This is true whether the employee is a top producer or not, and the employer must not use being a good producer as justification for not confronting the problems.  My recommendation is for the employer to work on her ability to be a more effective manager, specifically in understanding what the correct roles are between she and her employees.” -Philip M. Barcellona
• Yes, she may have lost you one $5,000 sale. But weigh it against the unbelievable sales numbers she garners you. If you didn't have her, how many sales would you lose?  
   
  Can you work around her limitations? For example, don't schedule her to open, only schedule appointments with her in the late afternoon, notify customers if she won't be in that day and reschedule them to another day or another salesperson (whatever works).   
   
  I've had my share of unreliable employees -- and fired them. However, in this situation, firing her may cost you more in the long run than working around her shortcomings.” -Karen
• “I have had employees like this in the past... one minute they are your biggest headache and the next they are blowing you away with brilliance! I have 2 suggestions that I have used in the past.
• Give her more responsibility. She understands that what she is doing affects the business and when shown the errors she makes them right; she genuinely feels bad for her actions. By forcing her to be more responsible she might rise to the challenge.  
• Take away all responsibility. If you don't need to rely on her for anything then you will rarely be disappointed.
  
  Separate your personal feeling for her from the needs of the business so you can make rational decisions.” -Jared Habre
• “Sounds like a drinking or drug problem to me.  I don't care how good of a sales person she is, she is being abusive to Eunice and the other employees.  Eunice needs to learn to sell more herself and learn from Tracy as do the other 14 employees.” -Sharla Bush

It was also suggested that Eunice pay for counseling and 30 days off with pay.  I personally think that may be going overboard because that is a sizable investment, but if it worked it would be worth it.  This was a wonderful thought provoking exercise that I would love to repeat.  So, send in your scenarios and let’s see how we can help you.  Eunice, thanks again, and I hope this helped.

Have a great week!

The 2010 Retail Survey - Part 2

Here are the rest of the results from the 2010 Retailers Survey. There are some definite surprises especially in the areas of compensation.  You'll see that I did not comment on the question about how many of the Google tools are being used. I am going to write a complete report on Google within the next couple of weeks.  I will also be writing an article about creating promotional plans as well. (There is a real need there!) I didn't create this survey to stimulate topics to write about but it certainly inspired some great topics.

 And this brings up an interesting idea. If you have any topics or situations that you would like discussed in this column, please send me your ideas. (I love real life situations, especially ones where I can get my readers to comment.) Thank you for responding to this survey and for all of the comments and encouraging words.

Question #9

I am impressed with the responses to this question. I say that because I believe 20% is the right discount to take on the first markdown. All professional liquidators will start cash raising or going out of business sales by marking everything down by 20%. The fact that 27% opted for 25% is still within a normal range.

The scary part about these results is that there were 14% that believed that the first markdown should be between a third off and half-price. I struggled trying to understand why anyone would want their first markdown to be so deep. However, there is another side to justify those deep markdowns. If the store can sell regular priced merchandise, then the only reason they would mark anything down would be to free up space. If you want merchandise to move quickly, then take the deep markdown immediately. The only question is how do you know if a 20 or 25% markdown wouldn't have worked as well?

My goal has always been  to keep your inventory as fresh as possible. But I also hate to leave money on the table. Taking a markdown that deep takes some of the joy out of the challenge of retailing. But I am just an old retail purist who believes you sell as much at the highest possible price, as fast as possible.

Question #10

The days of having manufacturers sell exclusively to stores in a territory are quickly coming to an end. Business conditions are so tough for many vendors that they will take orders wherever they can get them. This  includes the store across the street, the big-box retailer, and also selling it direct themselves.  That is the reason why you cannot be that dependent on any single vendor!

A major bridal manufacturer decided to open up their own stores and even in locations where the best accounts are located. I don't think that's quite fair but that is the new reality. I agree with just about any response here with the exception of the last one which said to buy more and discount it deeply. I think all of us would love to do that but we are just cutting off our nose to spite our face. Are you doing this because it's sound business practice or for revenge?

There were plenty of great vendors out there that you can use so that no one needs to be dependent on any particular vendor. Remember the most important brand you carry is the brand that is seen above your front door. Have your customers become loyal to you and your store, not a particular brand or the prices you charge. Trust me, in the long scheme of things, it is a much healthier way to build business. But don't stop complaining to the sales rep sales manager and president of the company. After all we're retailers-- we have right to complain.

Question #11

These numbers are good news and bad news because 65% of the stores reported that the sales were either the same as last year or up between 5% and 10% from last year. That part is encouraging in the part that over 50% of the stores are experiencing modest increases is also pretty good even though last year was not that strong a year. The fact that almost 45% of the stores experienced sales decreases in between 1% and 10% is scary but of course we  had one of the worst winters on record.

Of course any politician could read these numbers differently depending on the point of view. I could have said that 60% of the stores reported their sales were the  same as last year to 10% behind. The bottom-line is some stores are doing business and we need to find out what they're doing and how they're doing it.

I would love to hear from the the people who are reporting substantial sales increases. If you are in that group, I invite you to call or write me at Rick@RickSegel.com to share how you doing it. This could be fun!

Question #12

This is the one question that shocked me.  49% of the stores that responded are paying their full time salespeople $10.50 per hour or less.  It's hard to believe because $10 per hour translates into $400 a week which is only a little bit over $20,000 a year. I do realize that full time people  will work overtime and that will bump up their take home pay but it still seems low.  

Having said all of that, the trend is away from the full-time employee to more part-time employees. The biggest issue here is the issue of benefits. The effects of the cost of  healthcare plays a major role in the total compensation package. I won't comment on the current healthcare debate but the state of Massachusetts has a universal healthcare in place and the rates have skyrocketed. Maybe paying $10 per hour is not so bad afterall.

Question #13

This question substantiates the fact that retailing is not a highly paid profession unless you're either the owner, the manager, or crack salesperson who is earning a substantial income from bonuses and/or commissions. Having said that, we also have to realize that many of the people working part-time in the retail store are not necessarily working there because of the income that they can earn. They're working there because they want small part-time jobs to supplement their income because they retired from another profession. Or because they want something to do and like the products or category that you sell.

You must understand it is not always about the money-- the things that motivate people to take and keep a job vary widely. Remember the number one reason why someone will take a job for less money and stay there is because it's convenient to where they live.

One of the things that skews up this question is the geographic area that the reporting stores are from since you have to pay more for help in certain areas of the country. But I think this question gives a good perspective and maybe even a sense of confidence when you offer someone a job.

Question #14

As you can see, this question has an overwhelming response. I am thrilled with this response because I don't see where paying commissions make a substantial difference in the performance of the average retail employee. I do believe in giving incentives sometimes referred to as  "spiffs" on slow selling merchandise. The reason being is if you were going to mark it down you would make less money. So why not give some of that money to your employees if they can sell it before you make the deep markdown. This works well in the shoe industry and it forces the salesperson to show merchandise that they might not normally show.

Having said all that, if a person can earn livable wage from commissions then the system works. At Nordstrom's, commission salesmen in any of their better departments such as shoes, coats, men's wear can earn substantial income and can consider themselves professional salespeople. But for the rest of us, commissions are unnecessary.

Question #15

OOPS! Here is in the area we need help and I promise to write one and possibly two articles about the need for promotional plans and how to do them. We are living in the age of proactive retailing. We can no longer sit idly by and wait for customers to come in. We need to build our businesses through events and let our customers know that there is always something going on at the store. These events do not all have to be price or sale events. There are lots of contests and awards ideas that need to be incorporated in every retailer's promotional plan.

I don't totally understand why 17% of the stores had promotional plans that  only employees and management could review.  My guess here is that the majority of the promotions are price related and it wouldn't be prudent to publish that list in fear that customers might wait.  The way around that is to publish a calendar of events  and title the sale events with a generic name such as Special Savings Event. The goal is to create events that will bring customers in the store that are not neccearily about price.

It’s time for our annual retail survey!

These are questions that readers have been asking. Your answers are all tabulated electronically and will be available for reviewing next week. I will comment on the results. If you have any comments about any of these questions just leave a message in the section for comment.

The results are to benefit YOU, so the greater the participation the better the sample. We will be posting the percentages only for easier comparisons.

Click here to take our survey »

What Do You Do When a Customer Loses Trust in You?

Trust is a difficult thing to gain but it is a very easy thing to lose. My mother had an expression that she used all the time--she would say "There is nothing deader than dead love".  She used that expression in so many different ways, from personal relationships to relationships with customers. My Mom passed away 13 years ago, and yet this week her quote came back to haunt me and make me think. (She was good at that.)

I have always believed that your integrity manifests itself in the trust that a customer gives you. That trust is your most important asset and should never to be violated. There is no sale that is more important than the value that a customer places in us. Our reputation is our gold. One of the exercises I do in my seminars is that I will ask the audience what's the one thing a business can do that would prevent you from ever going back to that business again? Without fail, someone will say, "They cheated me!" Or "They lied to me!" And because of that, the customer will never return to that business.

But what is trust? I believe trust is a promise of what to expect from another person, leader, or business. I personally feel terrible that President Obama has lost the trust of so many people who voted for him. He simply made promises that he wasn't able to keep, and therefore lost the trust that he had built. Only time will tell if he can rebuild that trust, but this is article is not about politics. It's about running a business.

This past week I experienced a personal crisis in trust and integrity that might not be to the scale of the president, Bernie  Madoff,  Enron, or John Edwards. But to me it is something that quietly kept eating me up inside and a lesson that all of us can learn from. It comes in two parts. Here is the first part.

Last week on The Retailer's Advantage, I had promised to do a program on planning a business' buying utilizing the three basic and most popular ways of planning and controlling merchandise that a retailer needs to do business. I had advertised that I would have the proponents of the various methods (the traditional Open to Buy Method, Gross Margin Return on Inventory Invested Method better known as  GMROII, and my simple alternative the 40/55 formula or what I call Open to Thrive ).

I traveled to Anaheim, California to speak at the craft and Hobby show last week and I had planned on recording the session when I was out in California. However I simply forgot what I had promised and preceded to do the program without the two other guests. Shame on me for not checking and double-checking what I had planned and promised. But then to make matters worse, when I went to record the session, the quality of the recording was as bad as it could get.

Yes I could certainly make the excuse that last week my computer had the worst virus that it could possibly ever have. I actually went out and bought a brand-new Apple MacBook Pro so that I would never be haunted by another virus again. But that would only be an excuse. I received a terrible blow from one of my listeners who said it was bad enough that the program was not as advertised but she couldn't even hear it. I lost her trust. Shame on me.

This person was not a subscriber to The Retailer's Advantage. However, she did spend $25 for a program that was not as promised and was inferior in quality. My mother's words haunted me because she was of the belief that you build a business one customer at a time. It is better to under promise and over deliver. I couldn't agree with her more, but I didn't do that.

I believe that people get into trouble, not for what they do but for trying to cover up for what they do. Richard Nixon would not have resigned if he had just admitted his involvement in Watergate. It's the cover-up that is worse than the crime. So this is how I am handling my violation of the customer's trust.

• Step one-- I immediately refunded her money.
• Step two-- I gave her a free membership to The Retailer's Advantage for a month.
• The final step was my sincere apology never to have that happen again.

Yes, I'm upset with myself for being so caught up in the actions of the day that I forgot my responsibilities. However, I'm pleased with myself that I addressed what I needed to address in the first part of this problem. But as I said there were two parts.

The second issue is that I have a team of people who are working extremely hard to build The Retailer's Advantage to become the preeminent retailers' membership site that is a true advantage to the independent retailer. You see, I did not just let the customer down. I let my team down as well. Oh sure, they will probably forgive me but I must work as hard as I can to regain some of the trust that I have lost.

These are the actions steps I plan on taking:

1. The first step is to admit what I had done and not try to hide it.
2. The second step is to demonstrate and maintain my level of integrity. I must be overly cautious about the promises I make so that I will not default on them.
3. The next step is to simply communicate better as to what I am able to accomplish and not. None of us get upset when we know what to expect and good communications helps us avoid problems before they become a problem
4. Treat my employees, subcontractors, and team members as equal partners. It is important to make people feel that they are important to me.
5. Lastly do the right thing, which is what I am trying to do in this situation. It somehow always works for me (as well as for so many other people).

Thank you for reading this and being part of my therapy. We can all learn from this lesson to maintain the trust of our customers by keeping our promises, which will in turn keep our relationships alive and well. Thanks Mom for a lesson I thought I knew but I guess I didn't. Somehow I think you're smiling.

The Smile Is the Shortest Distance Between Two People

I have spoken all over the world. I have spoken to audiences that can't speak a word of English. I have been translated into 5 different languages at the same time. (That's dealing with 10 different interpreters--2 per language and is it fun and games when they all try to get your attention.) However, regardless of the language or culture, smiling and laughter are universal.

The title of this article is a variation from a quote from one the great humorists of the 20th Century, the late Victor Borge. Of course he is also said that "Laughter is the shortest distance between two people" as well.  

So what does that have to do with running a store during times like these?

EVERYTHING!

We are in the people business. Customers don't buy logically; they buy emotionally. Logic makes us shop BUT emotions make us buy. Many times, the biggest thing that differentiates our businesses is the "Likeability Factor" of our business. The fastest way to likeability is with the use of Fun, Humor and Playful Behavior. My biggest selling book is still "Laugh and Get Rich". It has been translated into 7 different languages and is a big hit in Asia. The book analyzes the power and applications of Fun, Humor and Playful Behavior. 

It is because of this book that I have been asked to speak at the most prestigious Humor Conference in the world,  "The Positive Power of Humor & Creativity Conference". It is the Humor Project's 53rd International Program on Humor and Creativity. The Humor Project is the most comprehensive resource, think tank, and authority of the use of Positive Humor and Creativity in the world today. The conference takes place in Lake George on June 11-13, 2010. This is a real honor for me and for recognition for the work I have done with retailers to adopt many of the principles of these tactics and strategies.

This week I had the privilege of interviewing the Founder and Director of The Humor Project, Dr. Joel Goodman. (I will be interviewing him in a webinar in April as well.) Let me share some of the wisdom from Dr. Goodman who is one of my humor mentors and a legend in this arena. But before I do, I also want to mention that Jeffery Zazlaw, the New York Times columnist who is the co-author of "The Last Lecture" with Randy Pausch, is also on the program at the conference.

Dr. Goodman shared that there is a point where the bottom line meets the funny line and that interception creates endless opportunities for businesses.  It is a powerful connection and a place where memories are made and attitudes are changed. He explained how we should be Service Professionals NOT Solemn Professionals.  He explained that by using humor we gain childlike abilities. Looking at the world through the eyes of child can sometimes give us a new perspective without being childish.

He explained that you don't have to be funny, act funny, or even think funny to utilize the benefits. I believe that when "we humorize, we humanize." We become more approachable. In case you haven't noticed, we are in the "approachability business" and laughter is the great social lubricant that breaks down sales resistance.

Understand that the greater the tension, the more humor is needed and works. Did you ever notice that when many people are nervous or scared, they relieve that tension with jokes or laughter? Think of all of the great comedians who came out the depression era. As Dr. Goodman said, these comics "Saved Society's Sanity".

There are some warnings about the use of humor. Sometimes it offends, so be careful who the focus of the joke is on. It must pass the ATT TEST.

A. Appropriate

T. Timely

T. Tasteful

The problem is that many people define those three categories very differently. What is appropriate humor to people in the health care industry, where any joke about bodily fluids is fair game, just doesn't work in a retail store.  That is why self-deprecating humor is so powerful. Don't make fun of other people, ethnicity, physical characteristics, or religion unless you own it. I used to tell lots of "fat jokes" but after I lost 90 pounds, they because insensitive.

I lost one of my closet friends for 12 years because of a comment I made the day of her mothers funeral. My wife and I went into the private room before the funeral and said, "So what's new?" I was just trying to deal with my own anxieties and try to give a little soft comic relief  (or so I thought) to a very serious and somber moment. Because our friend had an outgoing playful nature about her, I felt the comment was appropriate. 

Oh well, I was so very wrong. We didn't talk for 12 years and even to this day I am highly sensitive about anything I say, because I know I am just one line away from losing a friend. As I found out, people do not have the same sensitivity standards, and although I didn't mean any harm by that comment, the damage was done with just one inappropriate line.

Use humor, enjoy the benefits of fun, laughter, and playful behavior but remember the ATT Rule. It's OK if they laugh at you but to laugh with you is even better.

Have your bottom line meet your laugh lines.

(If you want more information on the conference, go to http://www.humorproject.com/conference/.)

Build Your Community, Build Your Business

When you say the word “community” today, it takes on a different connotation than it did just a few years ago. We now have online communities as well as special interest communities. We have our professional communities, our social networking communities, and the traditional business community and the geographical community - the area where your business is located. So when you use the term build your community, build your business, it might mean that the bigger your network of friends, colleagues, and common interest groups are, the bigger your business will become.

That's probably true to a certain extent but some of our communities might not have the ability - much less the want or need - to do business with us. So what I want to focus on is the traditional business community, the place where our businesses are located and the people who live and work within our community.

Let's focus on the words community service and what it means to a business. Above all other industries, retail and community service go hand-in-hand. We want to support businesses that support our communities. Very few retailers are NOT involved in some type of community service or community charitable events.

Every year for the past 12 years, the Retailers' Association of Massachusetts Awards of Excellence program has recognized a retailer who has made a difference within their community. The reasons retailers win are different every year. Some times the winner spearhead a fund-raising effort for deserving charity. Other times the store uses their facility for a community focused initiative.

It's not about just giving money to a charity-- it's about getting involved. But from a marketing perspective, it's good business! (Not to mention it's the right thing to do!) Considering the season, this is a good time to highlight those businesses that are making a difference in their communities and their businesses. They are succeeding by thinking out of the box, away from the norm. These individuals have built wonderful businesses because they care about their communities and in turn their communities support them.

The one store I love to talk about is a shining example of community building at its best.

The community service efforts of The Three Sons located in Milford, Iowa are legendary. Emil Richter and his brother, Herman, are two of the sharpest retailers I have ever met. They created a unique “Make Believe” University called the University of Okoboji which has a complete college bookstore chuck full of college merchandise for sale. They have it all: hats, pennants, T-shirts, sweatshirts, workout clothes, and any of the giftware that any major college bookstore would carry.

A portion of the proceeds of this merchandise is put into a foundation but that's just the beginning of the story. The Three Sons sponsor the Winter games, the Summer games, the Hundred Mile Bike Race and a marathon that attracts thousands of runners. They all pay an entrance fee that goes into the University of Okoboji Foundation. These events are very lucrative fundraisers because they are run solely by the volunteers -- who are often customers of Three Sons.

The University of Okoboji’s Foundation has donated enough money to build the Town’s Welcome Center, the Community Center, a jogging path, a bike path, and the Jaws of Life rescue machine that comes on a very expensive truck. Those were all paid for out of the funds from the University of Okoboji Foundation. That’s community service!

The college emblem states “In God we trust everyone else pays cash.”

These folks are having the greatest time of their lives. They have more fun with this and they are making a difference in their community. Not to mention the fact that they're selling merchandise that no one else in the world carries.

A used bookstore in Marblehead, Massachusetts created a charity called Comforts & Joy. They coordinate the making of Christmas stockings and use their business as the community drop-off for items to put in the stockings that were delivered to the needy children in the area. The store is also used as the place where all the volunteers gathered to put together the Christmas stockings together. The idea worked so well they expanded it to fill backpacks for back-to-school. One of the interesting ways they raised money for the charity was sponsoring a private showing of a new movie that was filmed in the area. The night before it was scheduled to run, they had a private showing and charged $25 per person. It included champagne and hors d'oeuvres that were donated by members of the community that made the night special.

The thing that's important to understand is that you can do this type of event for almost any movie. It doesn't necessarily have to be movie that was filmed in your town. It's just a fun fundraiser that can be initiated by a retailer.

The one event that I am so passionate about is the sponsorship all of “The Best Store Windows in Town”. Many times Main Street organizations or Chambers of Commerce sponsor this event. However, it is such a natural for a business to sponsor the event so that they can receive the positive public relations that events like this provide. When I share this with stores they always ask me about the rules of the contest. My response is always, “It's your contest; you make the rules!” Think about this. You can have your name on a beautiful trophy named after you or your business displayed in the best store in town.

Many people refer to this as Cause Marketing. Let's not kid ourselves--this is Marketing at its best! But don't do it because it's just good business; do it because it's the right thing to do. You live and work in the community and it's your responsibility to service that community. I look at these initiatives as truly win-win win endeavors. The community wins because you create a point of pride for the community, the beneficiaries of your efforts win for obvious reasons, and you win because you are now an integral part of the community you serve. You showed you care.

One word of caution: Stay away from politics and any controversy. Why? Because you probably have customers from both sides. Here are a few more ideas of proven winners. All of these are battle-tested ideas that work:

• Sponsor or Coordinate an Experienced Retailer Mentoring a Rookie Retailer
• The Best Hair Dresser in Town (This is a powerhouse if you are marketing to women!)
• Baby contest of Community Leaders- Get baby pictures of other merchants and leaders and have customers match the names to the pictures
• Athlete of the Month/Year
• Why My Mom Is Best
• Why my Dad is Best
• Art Contests for kids and adults
• Community Pages on Your Web Site –List all of the other businesses in town. This is so easy and is appreciated so much.
• Use your facility to meet. If you have the space in your store, it is a powerhouse and it costs you nothing!
• Set up a Bulletin Board in your store near the front door. You can post any positive news about people or events taking place in your community.
• Do a $5 Coupon with portion of proceeds going to a community charity

These are just a sampling of the hundreds of great ideas that bring retailers and communities together. By the way, you might notice I NEVER MENTIONED the word SALE! You can bring customers into your store without ever having to cut your prices!

What is Customer Service?

Before I start this week's article, I want to report back to you about the winners of the signature line contest for Mason's Jewelers. Thank you so much for helping me determine the 3 winners! Just as an FYI, your choices were really varied which made me feel better about the tough time I had picking the winners. But there was definitely consensus on the top 3. So here they are:

• First Place prize of a choice of a free 2-month subscription to The Retailer's Advantage or a 1-hour consulting session goes to Daniel Hanson from Lightning Landscape and Irrigation.
• Second Place prize of a choice of 2 books or videos from the Rick Segel Store goes to Donerea Testa from The Place.
• Third Place prize of a choice of 1 book or video from the Rick Segel Store goes to Steven Diamond from Safe Auto Insurance.

Congratulations! And now my article...

Great customer service is like pornography. It's hard to define but you know it when you see it! In my workshops I ask the question: "What would aggravate you to such a point that you would NEVER return to a business again?" People from the audience start shouting out all of the things such as

• The store is dirty
• They don't have what I want
• The sales people are too pushy
• The people are rude
• They aren't open when I want to shop
• And the one response I always get is Bad Customer Service

My reply to the person who said bad customer service is "What do you mean by good customer service?

I rarely get the same answer. I'll hear a lot of things, including: friendly people, I can get what I want there, clean store, nice merchandise, or the store exceeds their expectations. It's as if I am asking a question within a question.

The purpose of the question is to make the audience realize that there are issues far more important than just price, because it generally takes between 8 or 12 responses before someone says the prices were too high! It also demonstrates that customer service represents different things to different people.

Using the concept of "knowing it when you see it", let me describe two customer service experiences I had within the last few weeks.

I was speaking in Key Biscayne, Florida at the magnificent Ritz Carlton Hotel. The meeting planner was so embarrassed because he forgot to make a room reservation for me and the Ritz was totally sold out. He gave me an additional stipend to stay at another hotel. Understand that I drove to Key Biscayne from the Orlando area, which is about a four-hour ride. The speech was at night and I thought that what I might do is try to drive as far as I could, then find a hotel on the way back.

I made one mistake and that was I packed my suit and shirt in my suitcase and of course it was wrinkled. That always happens BUT this time I didn't have a room where I could press it. I was aware of the legendary service at The Ritz so I thought I would put it to the test. I parked my car with the Valet and there was a "greeter" to welcome you to the Ritz. That's a nice touch. So I told this well trained and attractive young woman about my predicament. I asked for just a room where I could press out my suit. She said that she would take care of my problem by bringing the suit to the concierge. I handed it to her and she brought it to the concierge who immediately came over to me and told me to have a seat in the lobby, have a glass of their lemonade, and not to worry because everything would be taken care of. Fifteen minutes later, he returned with my suit, which was pressed and covered with a plastic bag as if it had just come out of the dry cleaners. I asked how much it would cost and as I put my hand in my pocket to pay, he then said, "There would be no charge." As I started to take the suit from his hands, he called for the greeter to bring me to the spa where I could freshen up and change my clothes. The manager of the spa greeted me using my name, which blew me away. The concierge had called the spa, giving my name, and explaining my predicament.

The spa manager gave me a locker, the use of the shower facilities, and a place to shave. I asked again how much the use of the spa would be. Again I was told there would be no charge.

WOW! That is great customer service. That's smart business because they created more word-of-mouth advertising with that gesture than all the newspaper ads in the world could buy.

Three days later I was checking into Beaches Resort in Jamaica for a family get-together. There were 14 of us in the party consisting of my wife and me, my six grandchildren and their parents. That represented four separate rooms. We had a wonderful travel agent who took care of all of the details. However, two weeks before the trip I called the Resort just to ask about some of the extra excursions, such as fishing and boat rides. While I was on the phone I wanted to make sure my daughter with her three boys had a room large enough for them. The reason I wanted to double check was that when we made the reservation my grandson was not yet born. When I checked, I was told that their room could only handle 4 people and the hotel was sold out.

I quickly called my travel agent who immediately called her contact. She faxed me the reservation she made and it clearly stated PLUS INFANT. She assured me that everything was OK but she also said she would follow up on this a few days before we left to go. She reconfirmed on the day before we were to leave that everything was all set.

Then I arrived at the Resort and checked in. I double-checked to make sure my daughter's room was OK. I had to wait for about 15 minutes for that question because someone had to ask someone, who had to ask someone else. Then I was told not to worry and that everything was OK.

You guessed it. When my daughter arrived she was put into a room with one king size bed. It was even smaller than my other kids' rooms. The hotel didn't have any other rooms for that night and they would be moved the next day. They put in a rollaway bed and a crib and they spent a night in a room with wall-to-wall beds.

If that wasn't bad enough, we then try to make reservations in two of the specialty restaurants on the property. I tried to make the reservations when I checked in. To make a very long story shorter, it took me 8 calls and two visits to the concierge to finally get a reservation. Why did it take so long? Because no one owned my problem. It was mine -- not the hotel's.

We ended up having a sensational time but I refused to go back to the concierge due to their complete incompetence. That is sad, especially when you think that about the total cost of the family trip compared to the complete lack of money that I spent at the Ritz.

What is the lesson? It's all about ownership of the problem. The Ritz trained their people to own the problem and then professionally and personally deliver the problem to someone who can solve it. Then the first employee follows up to make sure the problem has been taken care of.

How do you train your people? We don't have to be the Ritz to treat your customers like the Ritz. If you do customer service like the Ritz, your customer service will be your biggest differentiator!

Have a great week.

When is a Refund Policy Bad Business or When is a Friend a Bad Friend?

When is a Refund Policy Bad Business or When is a Friend a Bad Friend?

I need HELP! I find myself involved in a situation about a refund from a store where I am both friendly with the customer and the store owner. It is more than a casual acquaintance in both situations. This retailer is without question one of if not the BEST bridal retailers in the country. I have the ultimate amount of respect for her, her business practices, and she is one terrific lady. We have a wonderful mutually respected relationship. I believe we have both learned from each other and I could talk business with her for hours.

Now on the customer side I have a lifelong friend of 43 years. This woman was a neighbor of my wife and married my roommate from college. I hope you can start to see the level of sensitivity in which I find myself. This situation is compounded because it is about the purchase of a Mother of The Groom dress which was my specialty for 25 years in my own store. So I don’t come to this situation ill prepared to give advice but frankly I am a little confused and just don’t want to say or advise the wrong thing. I am looking to you, my readers, for a reality check for the three parties involved. At the end I will offer various options to vote on and ask for your opinion as well. I am trying to mix a retail lesson with a little bit of interesting fun.

That’s the background– now let’s begin.

My friend is an administrative assistant at a well known private college for 30 years, who is now a single Mom of one son. I will refer to her as Ellen. Her son announces his engagement and is marrying into a well respected family from the local community. The family is planning a big wedding. They live in the Midwest and from the moment Ellen informed me I insisted that she shop at the store I described and I will refer to the store as Betty’s. Ellen said that the store was over 60 miles away and not very convenient. But I insisted that Betty’s was THE PLACE to go.

Ellen is a good customer for any store. She doesn’t try to bargain on price, she likes nice things, and is what is technically referred to as a “center of influence.” That means she is the type of person who loves to shop and is the outgoing friendly type that is a source of lots of referrals. Because of the fact that she works at a college with lots of young people, I felt bringing Ellen and Betty together was a real win/win.

Ellen shopped at Betty’s and loved the store and the people, as I had predicted. Ellen did complain about the length of the ride as she had predicted. She ordered a dress at the end of April for a September wedding. She was informed the dress would take about 2 months to come in. She wasn’t quite sure of the size so Betty (actually it was one of her sales people) said that they would order two sizes, a 10 and a 12 because it was a strong selling dress and the store would have no problem selling the extra dress. That is pretty standard policy and it is done many times over.

Ellen was then asked to pay for the dress, the shipping charge ($15. I had never heard of anyone charging for that but it’s a GREAT IDEA—I told you Betty is a terrific retailer.) and of course the tax at the time of the order. (Again I only would ask for 50% but requiring 100% is a very good policy. I found it always difficult to get the customer to agree to that.) The cost of the dress was $545 and the shipping and tax brought the sale to almost $600. Let me just add that I did NOT call Betty to ask her for any special favors or discounts. I also informed Ellen not to expect any discounts or special favors, not that she would even ask. That’s just not her style.

The dress came in at the beginning of July BUT the wedding relationship bloew up at the end of July and the wedding was finally cancelled. Ellen first called the store to inform them of what had happened. They explained that she would have to come into the store. She went into the store with her son to explain what had happened. She was given a Merchandise Credit but it was clearly typed on it that it could be used for a “Refund or Credit”. The credit was only for the tax and dress and she was charged for the delivery which I feel is certainly appropriate.

Ellen hoped that her son’s relationship would be repaired or he would find someone else. (A mother’s hope springs eternal.) So in August of 2008 she left the store with her credit. There were no hard feelings and she left the store with positive feelings.

Now fast forward a year and Ellen is informed that the college is having financial problems and they would have to be cutting back positions. They and offered a small buy out for voluntary separation or the employees should be prepared for layoffs. Not much of a choice so Ellen very sadly accepted the separation knowing full well she would have to work to survive. She is a pump-wearing diabetic with very high medical expenses.

She was starting to feel the financial pressure plus she had her son move in with her. Ellen wrote a detailed letter to Betty requesting to exercise her option (or so she thought) and asked for a refund check to be sent to her. She was then informed that she is NOT entitled to a refund at all. Even though it clearly states typed in REFUND OR CREDIT.
Again Ellen was trying to avoid a confrontation and then said that her friend’s daughter bought bridesmaid dresses there and just wanted to let Betty’s know that she would give the credit to them to use. (I did forget to mention that amount of referrals Ellen had made over the year. It was conservatively 5 or 6 bridal parties—yes that’s wedding gowns and bridal party’s dresses. She will NOT even mention that to Betty because she says, “Everybody probably says that!” and she is right there.) Betty’s sales person then informed Ellen that if she was going to use the credit that way she MUST be present for every transaction.

That wasn’t a good thing to say to Ellen because now the relationship has now gone from friend to foe. I feel so bad because instead of being a source of referrals she is planning to now say negative things about the business.

She is also planning to place a classified ad offering to discount the credit by 10 % to 20% to a bride who can use the entire amount so that she would not have to drive out every time a bridesmaid wanted to pick up a dress.

I am sick about this. Here are the options:

1. Too bad Ellen. You agreed to a final sale arrangement and just throw away the credit because you will never feel comfortable going into the store anyway. (But is that good business?)
2. A restocking charge of 15% should be charged. That’s still over $80 plus the freight was already paid. The store deserves something for the work they did but I am sure those dresses have long been sold.
3. 50% of the deposit should be refunded
4. Ellen should place the classified ad. (I would hate it to see my store’s name in a classified add like that.
5. I should send Betty a copy of all of any of my books she doesn’t have, give her a free membership to The Retailer’s Advantage, and ask her to refund Ellen’s money.

Your ideas or suggestions.One last comment that I am sure many of you are wondering and that is do I have any regrets about referring Ellen to Betty’s? NO! I would do it again and again. Part of what I do is bring the right people together. If I can refer any a good customer to any of my retailers, I will. This is just an unfortunate outcome. But I could be open for criticism here.

Just email me (rick@ricksegel.com) your picks and I will report back the scores and comments next week.

Your Defining Moment

Ever get so excited about an event that you just can’t wait for it to happen? Just like a 6-year-old boy waiting for his birthday — that is how I am feeling. That is exactly how I feel about the project that I am working on. Please understand, I am much closer to the end of my career than the beginning of it (not that I have any intention to ever retire).

I have lived through almost every type of sale or promotional event a business can produce. From spectacular store openings, to powerful price and non-price promotions, to sales of all varieties, to expansion events, and to new business initiatives. If there is one word that is common to every type of event, it is the word “Showtime.” You are a show producer and director, responsible for a thousand little details that must be coordinated together to produce a finished product which can determine your success or failure for years.

These events can be discussed casually but I think anyone who is reading this column can attest to the emotional baggage, both positive and negative, that is associated with one of these events. I’m sure that all of you have already associated such an event in your mind as you read my words. They define you as a person, as a business person, and many times become the regulator of one’s levels of self esteem. They define us both fairly and sometimes unfairly.

Here is the process we go through in the creation of an event, a sale, a promotion, or a new business initiative. We have an idea, we try out our idea with family and friends, we then decide to proceed, we make our plans, then test our ideas and plans until we feel comfortable, then we execute them, and finally wait for the results. Talk about extreme highs and lows. The next time you are involved in one of these projects, remember one of my favorite quotes from the author and educator, Dr. Alan Weiss:

“We are NEVER as good
as our GREATEST accomplishments
and NEVER as bad as our greatest failures.”

That’s the best advice anyone has ever shared that has saved my mental stability. I mention all of this because in just 14 days I will experience probably the greatest defining moment of my professional life. On September 8^th The Retailer’s Advantage will launch version 2.0. It is a culmination of a significant investment plus thousands of hours of work from 14 people who have worked tirelessly on this project to make it a success.

Because I can’t wait any longer, here is a sneak peak at The Retailers Advantage 2.0.

Let me share some background information on this project and why I feel so excited and committed to the vision and mission of The Retailer’s Advantage.

Just a year ago, The Retailer’s Advantage was born. The product launch was spectacular, and then we did what every business should do and listened to our customers. The comments we heard all had a familiar tone to them: The information is great BUT the site is confusing. That’s an easy task, just simplify it. So began Project Simplification. However, that is not easy on a site that has more than 1000 pages and is growing daily. Plus it’s hard to have the same people who made it confusing make it simple.

At first, it became a daunting task to simplify and streamline the site. “Who ever said simple was simple?” I don’t want to go into many details about The Retailer’s Advantage now because you will be getting more information in the next week or so. (But I will tell you that the reviews have been AWESOME!)

However, what made it easier was the power of our focus.

I want to follow up on last week’s article which was all about focus. I am going to use the development of the new Retailer’s Advantage as the perfect example of how powerful focusing can be, plus I would also like to comment on the many emails that were sent about The Power of Focus.

We wanted the focus to be all about making The Retailer’s Advantage a true advantage to retailers. In order to do that, we asked ourselves the question, “How and what would you have to do to achieve that?” Just having great products isn’t enough if the customer can’t find them? Therefore, we had to make the site as user-friendly as possible with great products (information).

Yes, it is the focus that made it work, but I believe the key was the single focus, the big umbrella that everything else comes under. Where many of us get confused is thinking that we have multiple focuses. User-friendly is important but it is a part of the big picture, not its own picture.

There were some really interesting comments about how so many of you are using The Power of Focus. Actually, I got a wonderful education on Focus or the correct term which is Prosperity Mapping from Cindy Welch, who runs a very successful Quilt Shop in Nunda, NY that does business across the country. Cindy is a real expert/student on Prosperity Mapping which she has been involved with for years. What we are doing is asking the universe for prosperity. It is the Law of Attraction! Visualize it and you will receive it. She spent the time to share the many ways she applies this even down to “crabby customers”. They all leave smiling. It is fascinating stuff. Thank you.

Rhonda Cohen, from RU Craft Designs wrote, “We so often forget the “human-emotional” side of ourselves. There is a great deal of power in positive thinking in whatever modality (visual, auditory, etc) that may be.”

Bonnie Barney, from the award winning vineyard, Hunt Country Vineyards in Branchport, NY said, “We are constantly asked ‘How’s business for you?’ Of course there are ups and downs, but if we offer the positives, we share the expectation of success, which in turn improves the chances of achieving it. Don’t dwell on a drop in the average customer purchase if you can celebrate an increase in foot traffic.” That’s Awesome!

Fiona Coachman, from New Zealand, shared the focus of her mother who continued to focus on her knitting as she was dying of Lung Cancer. There were no pity parties there.

One of the most captivating responses came from Nancy, a jeweler from the Midwest. I am not revealing her name or business because she admitted she doesn’t talk about this stuff very much in public because some people think you are WEIRD. She shared that even her husband thought she was a bit NUTS. Of course I related to that because my wife feels the same way about me sometimes because of my beliefs. It’s probably because they are practical and pragmatic. But it is so sweet when these ideas work and they do quite often.

Nancy said to ERASE negative thoughts from your mind and your life. Visualize a “wall” to keep them out. The key is to really concentrate and FOCUS. I could go on about many of her techniques and I really want to learn more about them, but I am afraid you will think I am weird too. (Only kidding but I couldn’t pass that one up!)

Have great week and look for the information about The Retailer’s Advantage. It will be my defining moment.