TEN ACTION STEPS FOR CHANGING TIMES

#8. Become a problem solver. Customers want solutions. Think of all the solutions, so many of them simple to provide, that customers have been delighted to incorporate into their lives: answering machines, portable phones, highlighters, Post-it Notes, low/no fat, e-mail, next-to-instant delivery. Cheaper, faster. More convenient instabanking.
What problems can you solve? What solutions can you offer?

-- Page 22

ARE YOU AWARE?

Record numbers of boomers are becoming Harley-Davidson bikers. The average age of a Harley rider is now 42 years. Ten years ago it was 34. Accountants, doctors and engineers dressed in their Harley tees are taking to the road to escape their office constraints. The demand for the Harley experience is so huge that dealers are sold out of new models a year in advance.

In the greeting card industry alone, seniors are the No. 1 greeting card purchasers because they may have two or three children, eight or nine grandchildren and dozens of nieces and nephews for whom to buy. They are at the top of the family pyramid in terms of family purchases.

-- Pages 64 & 66

If your organization disappeared today, would it be missed? Why?

-- Page 50

Target Markets By Life Circumstances

In addition to age, great many other life situations, such as affluence, poverty, education, disabilities and gender, influence our needs, our wants and affect our marketplace.

The Affluent
Who are they?

• American Demographics and Consumer Trends considers U.S. households affluent at $50,000+ a year and "truly affluent" at $100,000 a year. Canadian sources consider households affluent at $70,000+ a year.
• $50,000 U.S. (and $70,000 Canadian) represent approximately 24 per cent of the population. While $100,000 U.S. (and $140,000 Canadian) represent approximately 4% of the population.
• Account for almost 40 percent of the nation's wealth
  -cross all geographic regions and ethnic boundaries
  -well-educated, well-traveled
  -think of themselves as "upper middle class," rather than wealthy

How do you reach and satisfy them?

• network their trusted affinity groups
• get endorsements from their opinion leaders
• word of mouth
• referrals
• provide outstanding service
• ensure long term "value" in big purchases
• competitive pricing

Are you aware?

• Households headed by 35 to 54-years-olds are most likely to be affluent.
• Only 17 percent of households headed by someone under 35-years-old are affluent.
• Only 18 percent of households headed by someone 55 years and older are considered affluent.
• Twenty-two percent of housekeeping services such as house cleaning and gardening are purchased by this group.

Tastes have changed. They are looking for things that set them apart from their neighbors, rather than consumables that are made by hand.

• Purchase at craft shows, auctions, studios.
• Collect glass, ceramic and other objets d'art.
• Live in two income households.
• Earn financial status through work--corporate, professional, entrepreneur. Many are now in "knowledge based" sector.
• Not big risk takers.
• Most feel it will be harder for younger generation to succeed financially.

-- Pages 68-70

How do you "do" customer service? How does your staff "do" customer service? How do your customers "expect" service to be done?

-- Page 141

"Create a dilemma for your customers. The dilemma of which to buy rather than whether to buy. Turn browsers into shoppers."--Sam Geist

-- Page 91

GMROI assists to change the business focus from sales to profitability, from percentages to dollars. During one of my earliest GMROI merchandising sessions, I asked one of the buyers what her division contributed to the company as a whole. Her response "42 percent," encouraged me to change the title of my program to "You Pay Bills With Dollars... Not Percentages." I asked her, "When was the last time you took 42 percent to the bank?"

GMROI identifies and differentiates paper profits, which seem to be much easier to produce from realized profits, which is what you take to the bank.

As one of the most effective methods to evaluate, improve and control inventory, GMROI assists you to understand the business of profits versus return on investment.

The benefits of GMROI:

1. It reveals where actual dollar profits versus paper profits are attained in the merchandise plan.
2. It focuses the merchandiser's attention on return on investment as a basis for merchandising decisions.
3. It focuses the merchandiser's attention on SKUs (stock keeping units) rather than department totals.
4. It improves merchandising decisions, including the visual merchandising plan.
5. It identifies product "winners" and those products "starving to become winners."
6. It identifies lazy assets--redundant stock.
7. It frees up inventory cash for product re-investment.
8. It identifies "core" business/never outs.
9. It drops more dollars to the bottom line.
10. It unites buyer performance and compensation.

-- Pages 134 & 135

GET CLOSE TO CUSTOMERS BY DIALOGUING
An effective service strategy strongly depends on honest, upfront dialogue. Such dialogue ensures the quality customer feedback that you need to keep on improving. Three requirements for win/win dialogue include:

• Being able and willing to communicate (trust!).
• Getting/giving rewards for participation (keep WIFM in mind).
• Participating in dialogue that results in behavior change for everyone involved.

Once these criteria are met, getting close to customers becomes much easier.

• Dialogue with them.
• Collect and assess their feedback.
• Check often that everyone is on the same wavelength.
• Check that the information you gather from customers is in sync with your Interpretation and perception of the situation.

Very often, too often, we assume. We misunderstand. We see what we hope to see, what we want to see, what we're prepared to see rather than what is really there.

Some interesting findings came to light when the Gallup Organization for the Quality Research Institute conducted a survey on how well retailers and their customers knew each other.

• As they continued to work to improve service at their discount retail outlets, 61 percent of executives interviewed thought their service had indeed improved over the past year. However, only 30 percent of their customers noticed any improvement.
• When questioned about the quality of their merchandise, 33 percent of interviewed executives believed it exceeded the expectations of their customers, while only 18 percent of shoppers expressed the same sentiments.
• Some 70 percent of executives felt their products, in general, were of good value. A disappointing 24 percent of customers concurred.
• Focusing on speedy service, half the executives questioned were certain their "speedy" service exceeded customer expectations. Only 17 percent of customers agreed.

It doesn't take much to conclude that these retailers and their customers were not seeing eye to eye at all. The implications of this situation are disturbing. How effective can evolving strategies be when they are based on erroneous assumptions instead of accurate information? How can you convince customers to do business with you? How can you possibly overdeliver if you misunderstand?

-- Pages 147-149

THE ART OF SELLING

#7. Always conclude with "Thanks for coming in," or, "Thanks for giving us the opportunity to quote." "If you need any additional information, don't hesitate to call." But don't wait to see if they do. Follow up! Follow up! Follow up!

Very often, customers need to be gently prodded, reminded that their problem is still not solved and you have just the solution. Following up makes good business sense; it reminds customers that you are there. Very often, in their busy lives, they forget.

Every fall, just before it turns cold, the representative from Magic Sweeps chimney cleaning company calls me to ask if I want my fireplace chimney cleaned out. Very often a year goes by without my using the fireplace, so I don't need the services. He still calls the next year, and the next, and whenever I do have my fireplace cleaned, Magic Sweeps is the company that does it.

This spring, I needed to re-sod my front lawn. I called four different companies. They all made appointments to come and give an estimate. One never showed up. The other three looked and estimated. As a matter of fact, one company provided a two-page description of its services (in duplicate) methodically separating out all costs. It took Wayne, the lawn estimator, about 30 minutes, sitting in his truck to do it.

Not one called me back to ask if I had any questions, or to see if I had decided what to do, or was there anything else I needed. Not one. Each of the companies had sent someone over (one company sent two guys), had spent their time, had given their advice, but didn't follow up. Why? (Is "follow up" on your checklist?)

The quality of selling has deteriorated to the point that it takes little to be better than everyone else. Ask yourself and get staff to ask themselves these seven questions. Make the changes necessary in your selling environment, so that the answer is always yes!!

1. Is there passion and energy in your office, plant, store? Do you exude it? Does your staff exude it?
2. Is staff trained so they know their customers and their customers' businesses well? Can they spot sales opportunities and service problems? Do they?
3. Is everyone in your organization part of the "selling and serving customers" process?
4. Do you, as the boss, inspire? Do you visibly lead the pack? Do you call customers regularly? Lead training sessions? Clearly communicate your commitment and interest to both staff and customers?
5. Do salespeople and other staff get both short and long-term recognition?
6. Does your organization take advantage of today's technology, utilize high tech equipment to ensure high touch--to ensure that the selling process is smooth, simple and effective?
7. Do you and your staff talk to customers frequently? Do you recognize customers' need for attention, for closer communication?

-- Pages 232-234

LEAD BY GIVING GIFTS

Good leaders give their staff small gifts--tickets to a ball game, free lunch, a day off, a small treat. Great leaders give their staff big gifts--opportunity, space to grow and develop, exhilarating challenges, and purpose to their work, trust, recognition and empowerment.

-- Page 288