What’s The Story Behind That Product?

Increase the Perceived Value by Sharing the Why of The Buy

Have you ever gone to a store, looked at a piece of merchandise, and not bought it because you thought it might be an inferior product?  That just happened to me.  I was shopping at a store in the Boston area that is known for everyday bargains.  It is the type of store that people rarely go to for a specific item.  It’s the type of store that you end up buying a bunch of stuff that you never knew you needed.  Their prices are extremely low and their advertising slogan is “don’t you just love a bargain?”

I affectionately refer to this store as an old fashioned five and dime store on steroids.  They sell lots of party products, kitchen items, gift items, books, packaged foods, cosmetics and probably another thousand categories.  It is a chain of 20 plus stores that is not necessarily the neatest and most organized, but no one really expects it to be either.  You get the feeling you are getting a great deal on everything you buy.

One of the reasons for some of the great values that they offer is that many of the time dated products will have closer expiration dates, which is perfectly OK as long as you aware of that.  The majority of the items are not this way.  What I am saying is you are looking for reasons why something might be such a great deal.  That was the case with me.  Let me explain.

Again, remember I went into the store not looking for anything in particular and just killing some time.  I did, however, have a shopping cart which I was filling up with a bunch of useless items I had to buy.  Then I came to the men’s personal item area and picked up a can of shaving cream and noticed a razor from Gillette.  I had never heard of this type of razor; it was a Fusion ProGlide Power Razor that was only $8.99 which seemed cheap enough to make me buy it.  BUT where I had never heard of this razor, I was afraid that it might be a discontinued item that Gillette had experimented with, didn’t work out, and were dumping the balance of the products into this discount store.  That was OK because I go through a lot of razors since I travel so much and I have a tendency of leaving them somewhere.  So, I figured since I probably wouldn’t be able to get the blades for this in the future, I would purchase the 8-pack of blades.  I was a bit surprised that the 8-pack of blades sold for $26.99, but I happened to need a razor so I bought it.  I want you to know I did have buyer’s remorse because I felt I had bought a discontinued product.  The reason why I felt that way is because these razors and blades were thrown into a bin.  Then two things happened to me.

First, I used the razor.  It was the most unbelievable shave I have ever received and with a bald head this is an area I am expert at.  I am still believing and questioning why they would be discontinuing such a great razor.

Then, I went to CVS to pick up a prescription where right there in front of me was this beautiful display on an end cap announcing the newest and greatest razor by Gillette, the Fusion ProGlide Power Razor.  It was selling for $12.99 and the blades were $29.99.  It is not a huge discount, but it is still a substantial discount, especially on a brand new product.  Here is the interesting part.  I happened to ask the cashier, who I believed was some type of manager or assistant, how those new Power Glide Razors were selling?  Her comment was “we keep them in stock”.

I will go as far as saying that CVS is doing a far superior job on selling these products than the store that is known for lower prices.  There is an old expression that says “its worth is what it looks like it’s worth”.  CVS increased the perceived value of the product by featuring it, signing it and supporting it with professionally prepared displays by the vendor.  The discount store didn’t even have a hand written 3 x 5 card saying “new product” or “great buy”.  It got so bad that even though I purchased the item, I actually considered returning it.

Are you doing the same thing in your store?  Are you making it easier for the customer to understand the products you are selling?  I was at an airport shop the other day that sold art by the artist, BRITTO.  The products were posters, framed art, t-shirts and ceramic pieces.  It was OK, however, the value of those products skyrocketed when I saw the artist pictured with various world leaders, including President Clinton and an announcement that he was selected to create a new stamp for the United Nations.  That’s credibility!  That’s the story behind the product.  Share the story and you will increase the value of your products.  Try it, it works!

Signs Sell… Harnessing the Power of Your Silent Salespeople

As many of you are aware I am unbelievably passionate about signage and the effects that is has on retail sales. This weekend I finally finished all of the editing required for my newest book called Signs Sell, Harnessing the Power of your Silent Salespeople. Although I had another article that I was working on, I decided to share Chapter 3 from my book that will be available for sale on October 15. This book has over 100 pictures and graphics and it is in full color. Unfortunately, this article doesn’t have any of the pictures but this is the critical chapter of the book. Enjoy!

I’m often asked if there’s a set of rules or guidelines for creating the perfect sign. What are the essential elements a sign has to have to be effective? What criteria can be used to differentiate a good sign from a bad one?

In attempting to answer these questions, I’ve developed The I.S.E.E.E. Formula.

The I.S.E.E.E. Formula spells out the five functions a sign can have. To be successful, a sign must fulfill one of these functions. For the ultimate, you’ll want to have a sign that combines two, three, or even all five functions.

Additionally, you need a balance of signs within your store. So many times I hear retailers say, “But I have lots of signs in my store, and they’re not doing anything for me.” Yet when I look at their stores, all they have are sell signs. That’s only one of the five types — by forgoing the other four types, not only are these retailers selling themselves short, they’re depriving their customers of a great shopping experience.

What are the five functions and types of signs? Let’s take a look:

The I.S.E.E.E. Formula

For maximum effect, a retailer needs signs that:

Every one of these categories serves a specific purpose, and communicates a different type of message to the customer. Let’s look at each one individually:

I is for Inform

Signs can inform the public. They can identify sale merchandise, pinpoint new items, and provide direction to the bathroom. The majority of signs should be informational: spelling out product benefits and the difference between lookalike merchandise is one way to help customers; detailing store policies, hours of operation, and payment options is another.

S is for Sell

Sell signs are far and away the signs you’re most familiar with. If you have only a handful of signs in your store, I’d bet dollars to donuts that they’re sale signs.

These are the signs that act to make the sale on your behalf. They pique interest, capture the imagination, and persuade the customer to buy. This can be done by using sale words:

• New
• Exciting
• Must Have
• Hot
• Two for One
• Did You See This?
• You’ll Also Need…

E is for Educate

The best signs can educate the customer, telling them something about the merchandise you’re offering. You can highlight benefits this way — for example, an apparel retailer could explain that the way a given fabric is woven means that any clothes made out of that fabric would never wrinkle and would be easy to care for.

Another way to use this technique is to explain how a product can be used. This is done very well at stores like Home Depot and Lowe’s, where the customers may be familiar with a circular saw on the conceptual level but have less than no idea how to use one in real life. Basic information is very effective at reducing the intimidation factor an uncertain customer faces.

Additionally, educational signs can be very effective when it details how the products you’re offering were made. One of the best examples I’ve ever seen of this was at a glass blower’s shop. To enter this shop, you literally walked through the artists’ studios, where the artisans worked behind protective glass windows.

When you reached the shops, many of the items were signed with photos of the artists who made the piece — often the same individuals you’d seen at work while making your way to the shop. Each sign carried a story — a small piece might be the work of an apprentice, and carry a small price tag. Another, more sophisticated perhaps, carried a sign revealing it was the work of the same artist, with some more experience under their belt. Other signs talked about the techniques used to make a certain item. It was all very illuminating — and allowed the customer to feel like they ‘knew’ the artists and a little about how they created their work. This was integral in developing a relationship with the public — and driving the strong sales this glass blower enjoyed.

E is for Entertain

Retailing has changed fundamentally. Nobody needs to go shopping anymore — anything and everything in the world can be found online. Going into a store is now just as much about the experience as it is about actually purchasing an item: shoppers want to be entertained.

No longer is it enough for a retailer to have a clean, well-lit store and offer good merchandise at good prices. You have to do more. You have to offer an entertaining, engaging, fun time to your customers.

One way to offer that fun time is to make your customers laugh. Laughter is the great social lubricant: it breaks down barriers and makes people feel good. However, you can’t hire a full time comedian to stand in the store telling jokes, and clowns scare off small children — and their mothers! How can you get your customers laughing? That’s where signage comes in, offering a way to be entertaining. Consider these examples:

• If at first you don’t succeed, skydiving is not for you! (In a sporting goods store)
• No appointment necessary — we hear you coming! (A muffler shop)
• Push! Push! Push! (On the door at the obstetricians)
• We really know our stuff! (A taxidermy studio)
• Children left unattended with be given candy, a double shot of espresso, and a puppy. (At a small café)

As you can see, the best humorous signs are related in some way to the products and services the business offers. Change humorous signs often — half the fun is from customers coming in to see what you’re saying NOW.

E is for Emotionalize

OK, emotionalize is not a word — but it should be! When I say emotionalize, I really mean “Forge an emotional connection with the customer” – but that would change the formula to ISEEF, which just doesn’t work for me.

So, anyway, emotionalize — using signs to pull at the heartstrings and get customers to feel — hope, love, optimistic, hungry, nostalgic — whatever emotional response you need them to feel in order to buy your merchandise.

The easiest, most fool proof way to create an emotional connection with your customer is with a great picture, and the most emotionally powerful pictures are often of children and dogs. Whenever you can include one or the other in your signage, you should consider it.

Mind you, this does have to be appropriate — it’s a bit of a stretch to use small golden retrievers in your advertising if you sell plumbing fixtures, for example!

There you go: the I.S.E.E.E. formula, spelled out in detail. Use any one of these elements in your signage, and see your sales go up. When you really want to give a product a real boost — a 300 – 400% sales increase, combine the elements of the I.S.E.E.E. formula for a super powerhouse of a sign.

Just remember: I.S.E.E.E.: Inform – Sell – Educate – Entertain – Emotionalize.

Let’s Talk About Visual Merchandising

One of the chapters of my Retail Business Kit for Dummies book is titled Visual Merchandising for the Artistically Deprived and the Financially Handicapped. That is also the title of a program I do. The title describes a big majority of retailers. Most of us (yes I’m including myself) understand the importance of visual merchandise but unfortunately don’t have an artistic flair and don’t want to spend a lot of money on props that have limited use or value.

This week I decided to dedicate this article to the basic rules of display that might help you better understand the mindsets and tricks of the trade.  We have been working on an entire program on Visual Merchandising for The Retailers Advantage Group consisting of some great interviews and webinars. So while my brain is focused on visual merchandising, let me share The Top 10 Rules to make you a better visual merchandiser.

1. Know what Displays are supposed to do.

a. They help define the business in the mind of the consumer

b. They create interest in the merchandise and  makes you want to buy

c. It is your silent salesperson

d. They create the foundation of the “Customer Experience”

2. Color is King

A display that is carefully coordinated with either the same or blending colors always performs better than the greatest prop of artistic flair in position of placement.

3. Customers don’t bend, they don’t stretch, and they don’t reach.

That means customers are not going to put their bodies into contortions to hold merchandise that is too difficult to get to. However, Rule #4 explains why we display in hard to reach places.

4. Where the eyes go, the feet will follow.

If the display is strong enough, the customer will subconsciously walk toward it.

5. Know your Hot Spots.

Hot Spots are places on your selling floor that always generate the greatest amount of sales. An average display in a Hot Spot will outperform a great display in an area that is just so so. Be aware of these areas.

6. It’s about the merchandise AND the benefit of the merchandise to the customer. It’s not about you.

Make sure the displays are at the customer’s eye level not yours.

7. Customers will generally enter a store and go the right.

That is just a natural tendency. If you want the shopper to go to the left, you must have a powerful display to pull them away.

8. The store should always look full!

I can hear the groans now. You are probably saying how can you look as full on January 15th as you did on December 1st? You can by taking racks off the selling floor. Open space is much better than racks that are half full. It’s all in the display fixtures you use.

9. Planned congestion is good.

People like to buy in stores that are busy. If you have large store, it’s hard to make it look busy all of the time. However, it can be done by focusing the traffic in to one area. We expanded our store from 4500 square feet to 10,000.  We could have 10 customers in the 4500 square foot store and we looked busy and were busy. But in the 10,000 square foot store,  it looked like we weren’t busy at all. The remedy was focusing the traffic. That meant putting the cash counter closer to the entrance and putting dressing rooms closer to the cash counter as well. It created a feeling that we were really busy, even though there were parts of the store that weren’t busy at all. It didn’t matter because the first impression and the last impression the customer got was that we were busy.

10. Change for the sake of change is good.

How many times can we ever say that? Rarely! But in the retail business it’s different. Customers want to see different merchandise and looks all of the time. Sometimes all we have to do is exchange the places of two displays. Move the display on the right side to the left side of the store and them move the display on the left to the right side. Then watch the customer’s reaction. ” Oh you got a lot of new things in.”  No you just moved two racks.

BONUS: Every store today needs a markdown section. Sales just don’t work like they once did. Place this section in a cold spot and it becomes a hot spot. Brand it and celebrate it.  One more thing, don’t use percentages like 24% off. Mark every item down individually. It makes a difference.

I hope this helps. It is just a beginning of ways to display and lay out your store to maximize every customer and customer experience. Have a great week.

Visual Merchandising for the Artistically Deprived and the Financially Handicapped

That is the title of the visual merchandising chapter from my book, The Retail Business Kit for Dummies. It is also the title of a seminar I did last week at The Los Angeles Gift Show.  I happen to be in the middle of updating and rewriting the Retail Business Kit for the new edition of the book that will be released this summer. It’s been 6 years since the first edition was released and it’s amazing how many things in the retail business have changed since then. Of course the obvious changes are related to technology, the internet, and methods of marketing and advertising. The one area where the core beliefs haven’t changed significantly is in the area of visual merchandising.

Although the core beliefs remain the same, the way retailers are interpreting their visual presentation are only limited by their imagination. However, there is one big overriding belief that wasn’t present in 2001 and that is the emphasis on creating positive shopping experiences. The days of “here are the goods, come in and buy them” are over. We now have the responsibility of putting the customer in a good mood and enticing them to buy by touching all of their senses.

We didn’t have sporting goods stores like Dick’s or rule breaking retailers such as the Apple Stores. There are even supermarket chains that have made their visual presentations on the same par as some Hollywood sets. I was in one such store where there were pictures of cows in the dairy department with the sounds of cows mooing in the background. That might have been a bit over the top but I never forgot it and I’ve shared it with many audiences.

I decided to write this week’s column about visual merchandising to share some of the old and new rules that are the core of great visual merchandising.

1. Color is King! Weak displays can be saved with a well coordinated use of color. An all red display looks inviting and works as opposed to a mish-mosh of colors. If you can’t match, contrast.
2. Customers don’t bend, stretch, or reach but that doesn’t mean their eyes aren’t looking both up and down. That is the perfect segue way to the next point.
3. What the eyes will see, the feet will follow.
4. Change for the sake of change is good. Change your displays often. Make your store an exciting place to be because there is always something different happening. Just rotating older merchandise can make it look new.
5. Have a store layout that encourages customers to be exposed to as much merchandise as possible. That’s why layouts that zigzag or circle work so well.
6. Most customers will enter a store and turn right. If you want them to turn to their left, you better make a path for them or create a strong display that will entice them to go left.
7. The store should always look full. It is better to have empty floor space than to have racks or shelves that are half full.
8. Realize the benefits of “planned congestion”. Sometimes we want to focus traffic in a certain area to create a buying frenzy. It would be great if the whole store were that busy but if you just direct traffic to one area, it can put customers in the mood to buy now. That’s why accessory items at the checkout counter become an impulse sale and a way to focus extra customers to that area.
9. Lighting and signage are the 2 most neglected areas in retailing. Great lighting can make your store and your merchandise come alive. It doesn’t cost that much and makes such a difference. As for signage, it allows the store to talk to the customer. (I have written a lot about signage and most of you know how passionate I am about it. So I won’t go into many details now.)
10. Lastly (although there are many more tips but I don’t want to make this article too long) is the creation of a Close Out or Markdown Section. One of the biggest problems in retailing today is moving slow sellers at sale times. Sales just don’t draw the way they once did because of the amount of discount options the sale customer has today. That’s why establishing a Markdown section helps to keep the slower sellers moving. This section should be celebrated with good signage and clever names. I like to use The Last Call Wall but Close Out Corner works just as well. Put these sections in the slowest part of the store. The bargain hunter will seek them out.

I hope this served as a great refresher course in some basic visual merchandising rules. I think next week is time for our first case study of the year. I do have a couple of topics that have been sent in but if you have an issue that you would like discussed, please send it along and we will pick one that is the most universal. Have a great week!

Give Me A Sign

A few months ago I got a call from a woman who started the conversation by telling me her name and then she said, “I share your passion.”  Then the phone went dead. She was on a cell phone and she had apparently dropped the call at the worst opportune time. But in the few moments I had before she called back, I was wondering what PASSION it was that she shared. So when the phone rang again I couldn’t wait to find out. After apologizing for the dropped call she said, “SIGNAGE.”

Closest thing to a Silver Bullet

After taking a sigh of relief and glad it wasn’t anything silly or embarrassing, I realized there aren’t too many people in the world who share my weird passion for retail signage. I feel that way because it’s the closest thing a retailer has to a Silver Bullet. Stores can significantly increase sales almost immediately. So then Nancy said she has spent most of her professional life working in some part of the sign industry. I was interested.

She then explained that she had worked for Microsoft for many years and even worked on the original graphics for PowerPoint and Word. She left the company to take care of an ailing mother. She then got to the reason why she was calling me. She had read a lot of my work and was planning on attending an upcoming event. She explained that she had been developing a signage software package for retailers and wanted to use some of my principles in the program. I was flattered but then I asked if she could develop a sign package using all of my concepts and theories along with her expertise.  She agreed and that is exactly what we decided to do.

We are close to completion of The Essential Retail Sign Shop. We have sent the package out for live testing with technical people and a few select retailers for hands-on feedback. But I also want your feedback on what would be helpful to you in a retail sign software package. So I created a special page on my website just for your feedback. If you offer your opinion I will send you a Special Report I have prepared on signage called, The Retail Sign Manifesto … 47 Strategies to Exploit the Power of Signage.

This week’s tip includes some of the elements of that special report.

I’ll repeat this link at the bottom of this newsletter but if you can’t wait go here: http://www.RickSegel.com/SignShop

Signage can and will create significant increases in your business but first you need to know the different types of signs and applications for signs. Some of these are very obvious while others are not quite as obvious. But my point is how many of the obvious ones are you doing and how many of these do you even think about?  This list turns out to be too long to include in its entirety so I have had to abbreviate it. I will also be writing just a brief explanation on each of the categories due to the limited amount of space I have for this column. The Sign Manifesto goes into far more detail. (That was the tease to get you to offer your ideas and or suggestions. Even if you just share what price a product like this should sell for would be helpful.)

Excerpts from the Manifesto:

A. On premise exterior signage

1. Above the door—Most important part of your advertising initiatives. Don’t skimp here.
2. On the door — Just don’t junk it up with too many since it can detract from your business.
3. Window –From just repeating your name on the window to creating themes for every window. Framing a window can also be powerful.

B. Off premise exterior signage

1. Transit—These are the signs that are at bus stops, airports, and train depots.
2. Directional—These are signs that just give directions to your place of business such as “Next Exit” This type of sign can make or break a business.
3. Banner (town cooperative)—These are the signs that are big and can be seen from further distances. Great for big events.
4. Billboard—They are powerhouses and I feel terrible I never recommended them to retailers until recently. It creates  word of mouth advertising.

C. Threshold signs – These are the signs a customer sees within the first 10 feet of entering the store

1. Featured vendor-Who is your vendor/manufacturer or artist of the week? It’s a sales aid that makes your store more interesting.
2. Event announcements and schedules—This one is obvious but do you do it? Retailing is becoming more event oriented and this is the solution.
3. Community involvement—What are you doing in your community? Share it.
4. Store announcements-This can be anything you want it to be.
5. Pictures of all the employees and owner-This might sound goofy but it works to help create a warm fuzzy feeling
6. A map of the store-Even if you have a small store you do have different departments. Make it like a treasure map.

D. Interior Signage – This is anyplace inside the store

1. Informational/Directional-This is appreciated by customers.
2. Department Identifiers-This just informs the customer what’s being sold in a particular area
3. Community involvement signs-Same as above
4. Sell Signs/ Did You See This Sign-These are the signs that will use words or expressions such as “NEW- DIFFERENT-JUST ARRIVED-HOT- OR EXCITING” Any word that sells.
5. Price Proposition- Is it on sale, is it part of a bigger sale, is it a 2 for, or is it a permanent price reduction? This could take 10 pages alone.
6. Image Enhancement/ Brand Builders—This could be your store logo or anything that helps to enhance your brand in the mind of your customer.
7. Entertaining-Anything that is meant to entertain customers  while they shop
8. Policy Signs
9. Services Offered-This is pretty obvious and required in some states.
10. Testimonial Signage-Any sign that has a picture or just a quote about how great your store is.
11. Proud Papa—Pictures of products you are most proud of. Applies to florists, jewelers, bridal shops and business that is creating something.
12. What’s New- Any new arrival, new product, or new line to the store.
13. If you buy this you will need this—This is just a simple suggestion. It works and customers perceive it as GREAT service.
14. Reminder of things they need –Same as above
15. Markdown Section—Don’t hide them celebrate them. It’s part of retailing.
16. Comparative Shopping Signs—Show ads from competing stores selling the exact same item. Make sure your price is lower. Duh
17. Employee Motivation—Let’s not forget this powerful technique of giving positive messages to our employees.
18. Educational—Educate and become the resource not just a store.
19. Market Dominance—If you are the biggest or best in a category, tell your customers.

E. Item Enhancement Signs

1. About the vendor or designer (Bio or Picture) — Obvious
2. The Story Sign –Just a different technique
3. Why you should buy it—Spell out the benefits to the customer
4. What it will save—It’s more than just saving money today
• Time
• Money
• Stress
• Planet

Explain what you will be saving the customer and they will be more apt to buy the product.

This is just a sampling but if you just use a few of these principles you will be miles ahead of your competition. Have a great week!

Here’s the link again where you can provide me with some helpful feedback and get your complete copy of The Retail Sign Manifesto … 47 Strategies to Exploit the Power of Signage:

http://www.RickSegel.com/SignShop