iThink! Blog!

The 5 senses of retail sales.... Part Two...

2009-08-15T00:15:00.026+01:00

I don't drink coffee. In fact, I absolutely hate coffee! Cappuccino. Espresso. No matter what you call it, I can't stand the java. And yes, part of me is annoyed that everywhere I go all I am offered is coffee! Where is your Diet Coke? Where is your Red Bull? Where is your variety??!

And that leads us to...

Do you have any taste?

Taste is a wasted sense in the jewellery industry. And sure, someone out there is making a joke about how we can't have our customers eating our jewellery!

We can't have them licking on a pendant!

We can't have them sucking on a stud!

We can't have them swallowing a ring!

Well.... why not?

Our friends at T-Pot Accessories in Tokyo want you to have your ring and eat it too!

These delightful pieces are sold for approximately US$35 each - and they are delicious! There are few things more decadent in this world than chocolate covered strawberries... and don't you dare tell me for one second that every single man who buys an engagement ring wouldn't think it would be hilarious to propose with a chocolate ring as well!

And T-Pot just work with local chocolatiers and bakers to make this happen! Something I know you could do if you were willing to spend something you have plenty of... energy!

So, how can you maximise the taste in your store?

Do you have bowls of chocolates on every counter? And not in a box, but open and inviting for people to help themselves to snacking on? Think of the visual of a large clear bowl of M&M's by the cash register? Or on every desk in the store? You can either get your store logo printed on them - visit www.mymms.com to see how!

And if chocolate isn't your taste, what about fruit? And not a bowl of fruit but rather fresh produce cut and prepared for easy snacking and enjoyment!

Worried about the glass getting smudged?

Worried about the jewellery getting dirty?

Worried about grease on the diamonds?

YOU ARE WORRIED ABOUT THE WRONG THINGS!!!

Would you rather have a clean store or a store that sells?

And what about a drink? I'm amazed how many people think that offering a coffee to customers is either an original idea or good customer service. Now as you read earlier, I hate coffee. And by default I hate stores that only offer coffee... or water.

Where is you coke?

Where is your tea?

Where is you wine?

Where is your imported beer?

And please stop offering champagne... it's almost as bad as stores that play classical music...

By offering champagne you are relying on the majority of your customers to enjoy what only a minority like...

Do you think you should toast to celebrate this "once-in-a-lifetime" opportunity? Excellent! Then show me that by not toasting with plastic glasses and $20 champagne!

Our friends at Self-Preservation in Melbourne have wonderfully combined the drinking/jewellery experience with a lovely cafe bar. If you're shopping you'll enjoy the finest cappuccino, wine, beer or soft drink! And if you are one of the dozens who enjoy their lunch in the store each day, you'll be spending a modest amount on a salad or a sandwich - yep, people go to this store to have lunch. How much is that free marketing worth to you?

Now turning your store into a cafe may not be your solution - but I do want you thinking outside the box on how to make your in-store experience different. Self-Preservation do it different, and they do it very well. It's all in the execution.

Scent of a jewellery store...

Smell is such a powerful sense... as it is usually the most underrated. Which means we have tremendous opportunity to use it to manipulate the sensory experience.

Do you have fresh flowers on the counter where you show your engagement rings? And a lush display that is inviting for people to want to take a whiff? Make a deal with the local florist - the cost of fresh flowers is far cheaper than any advertising you will ever do and arguably more effective... if executed correctly!

And imagine every time someone buys a diamond ring you arrange for the florist to prepare a dozen red roses for that man to give to his wife as well? The $50 cost is nothing in terms of a $2k plus sale... but everything in terms of an added-on sensory experience that no one else is doing!!! You can make the soon to be fiancee a hero and all it took was a little energy and even less in money. And your local florist will start giving you flowers for free if you do this often enough!

Stay tuned for the final part of this blog where we focus on the final sense - touch!

And please continue to send me the extraordinary things you are doing in your store! I love seeing even greater examples from around the world!

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The 5 senses of retail sales.... Part One...

2009-07-19T20:25:00.026+01:00

I had a great conversation with my 5 year old daughter tonight. She asked me how we remember smells? That's my little princess - always wanting to know how things work!

We don't really remember events. What we remember is the sensory experience.

The smell of popcorn at the cinema, or the scents at the perfume counter.

The sound of the games at the amusement arcade or the music playing through the Virgin megastore.

The feel of wearing a new shirt or a pair of jeans that you try on for the very first time...

The look of a perfectly cooked steak... and how that first bite tastes when you've been waiting for it all day....

So often in retail we don't truly maximise the 5 senses for the ultimate in-store experience. It's easy to show me what your store looks like, but what does it sound like? What does it feel like? And have you ever thought about what does it taste and smell like!?

Here are some great examples of retailers who I know who maximise the visual and auditory in-store experience. I'll follow up the other senses in part two of this blog in August.

The Visual

The idea of having a plasma screen in-store isn't a new one. In fact, the majority of retail stores I visit have a decent size television on the wall. Unfortunately, what I see most of the time is images of store commercials or product related advertisements playing on the screen.

My friends at Robert Gatward Jewellers have executed this visual concept brilliantly. When you go into one of their stores in the United Kingdom, you will not see store commercials or brand advertisiments... you'll see "Toy Story", "Monsters Inc" or "Finding Nemo". Brilliant!

The sound is turned off but the visual image is fun and you can't help but smile when you see these images playing in an enviornment where you're not expecting them! Imagine playing a Bond film to promote the release of a new Omega watch, or "When Harry Met Sally" during Valentine's Day!

And have you ever thought of a fish tank? My friends at Cottrills have executed this idea perfectly with a custom 9ft, 6000 litre fish tank placed in the center of their store. And to top it off there is a fully stocked bar with enough drinks to celebrate any engagement purchase surrounding the tank. Now you might not be able to go to such levels but what can you do to change the visual experience in your store? What can you go an execute now for your store?

And finally, my friend Andy Koehn from Koehn & Koehn jewellery in Milwaukee has executed an idea that I'm a big fan of - the engagement wall.

Every couple that gets engaged gets to sign the wall. I can't imagine a more fun experience and a better testimonial to how many people enjoy buying from this fabulous store! Simple, elegant, and most importantly it is fun!

Music anyone?

It is in my Top 5 mistakes of retail store branding to not have any music playing in your store. In fact, the only thing worse than no music is playing music that associates the wrong feelings to the products you sell.

I find it incredible annoying to walk into a store that is playing classical music quietly in the background - YOU ARE NOT A MUSEUM!!! And you are fooling yourself if you think your customers like it. In fact, they feel intimidated by it. It makes you look inaccessible, expensive or intimidating - 3 things I'm sure you don't want to be right now!

Get some Frank Sinatra, Michael Buble, Tony Bennett - or just some jazz! It's nice, safe and 99% of the population enjoy it while 100% don't find it offensive!

And then play the music at a decent level. If your sales staff or your customers feel the need to whisper when they are talking in your store, then the silence is deafening!!! Music creates invisible walls so customers can feel more comfortable discussing their needs. And more importantly so they can discuss their objections, price concerns and budgets.

Stay tuned for part 2 of this blog where I'll talk about taste, touch and smell! You'll never guess what some retailers are doing to offer an amazing memorable experience! And what is smells like!

If you know of a store that's offering an amazing experience please share so we can all learn!

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Why should I buy from you?

2009-07-09T22:35:00.007+01:00

Why should I buy from you? Why should I buy from your store? Why should I buy this now?

3 pretty simple questions.... right?

In every workshop I host and in every speech I give, I always ask those participating to answer these questions. And here are the top 5 responses I get...

"Because of our customer service..."

"Because we're nice..."

"Because we will look after you..."

"Because we stand by the quality of our product..."

"Because we have a great range of items..."

And what's so wrong with that?

IT IS EXACTLY WHAT YOUR COMPETITION IS SAYING WHEN I ASK THEM THE SAME QUESTIONS!

I'm sure you are "nice" and I know you only stock "quality" products - but if I ask Zales, Zamels, Goldsmiths, or whoever is the competition in your town - they will all give me the same answer as you!

We need to do better to explain to our customers what they stand to lose if they don't buy from us, our store, and right now!

A few weeks ago I was training at Michael C Fina (the only family owned jeweller on 5th Avenue - so they are clearly doing something right!) and I got some great responses to my question of "Why should I buy from Michael C Fina?"

I won't quote Justin, Stu, Amanda, Richard and the other great salespeople there directly, but I will share with you some of what I learnt from them and a few other impressive players from around the world.

Here are 3 of the best things a salesperson can highlight in their sales presentation...

Make it personal

Justin (Michael C Fina) did a great job here. He gave himself value by highlighting his expertise. And no, he didn't just say "I'm an expert". He backed it up with how long he has been in the jewellery business and his impressive qualifications from GIA. Sure, the guy up the road may say similar - but probably not and certainly not presented as well.

Make it about your culture

I've got to credit the amazing boys at Lewis Grant in Glasgow, Scotland for this one. The staff are all trained to highlight that Lewis Grant is a "locally managed and locally owned Glasgow business". This is brilliant! It makes the customer think of the value in the store brand. It also make them think that if there is something wrong it will be easier to address than another business whose head office may be hundreds of miles away.

Make it about what you do that no one else can...

From my friends around London, SWAG Jewellers do a phenomenal job in promoting "lifetime guarantees" and "upgradable diamonds for life"! Sure, other jewellers can and do offer similar incentives to buy, but no one executes the uniqueness of these after sales opportunities as a technique to close a sale like SWAG do!

So... why should I buy from your store?

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“No Thanks! I’m Just Looking!”

2009-06-03T22:22:00.007+01:00

How often have you heard that?

And what do we do as sales associates? We say something stupid.

"No problem. My name is John and if you need anything I'll be over here"

"No problem"? Of course it's a problem!

And by the way, very few people are "just looking". How do I know this? The same way you know it. It's what we say as customers to push salespeople away. And it works great because you can see sales people physically bounce away from this 'defensive shield' that is thrown out there!

We say "just looking" because it's just easier to look around a store on our terms rather than risk asking for help and getting pushed into buying something we don't want..... or at least that is the fear that drives us.

You know it's true. A customer will walk in and avoid the salesperson who is standing there smiling but will walk up to the guy who is half way up a ladder changing a light! Why? Because the guy up the ladder isn't a threat.

So what can we do? What can we say after we hear "just looking"? What can we put in that moment?

Customer: "No Thanks! Just looking!"

Salesperson: "Great! What are you looking for?"

C: "I'm just getting some ideas...."

S: "What's the special occasion?"

C: "I'm just seeing what you've got...."

S: "Fantastic! What would you like us to have?"

Try it! And you'll be stunned how many customers tell you what they are doing in the store!

"Just getting something for my dad" or "Need something for my wife" or "It's my daughters birthday"

And of course they can turn around and say "Seriously, I'm just looking". That's fine! Then I'll back off.... because they may indeed be "just looking".

But if they are I'll make them say it twice before I step back.

5 Worst Opening Lines Salespeople Use

2009-06-03T22:21:00.005+01:00

“Don’t wish it was easier. Wish you were better”

- Jim Rohn, Business Philosopher

We’ve all heard them and lately I’ve been hearing them a lot more. So in celebration and awe of mediocrity and procrastination, here are the 5 worst opening lines I’ve heard salespeople use....

5. “Hi, how are you?”

Fine thanks. Just looking.

4. “Can I help you?”

A perfect yes/no question. That always gets my favourite response - “Just Looking!”. Why ask if you know this is what people say by default!?!?

3. “Did you guys need anything?”

Wow. You just totally blew me away with such a creative and imaginative opening line. Please take my money... actually I’m “just looking”

2. “Are you happy just to look around?”

Well now that you’ve given me permission, I am very much happy to look around.... and not buy from you!

1. “You guys don’t need any help?”

Seriously? Are you kidding me? Why don’t you just tell me I should save my money and go home!

What’s the worst opening line you’ve heard?

No one wants to take my money!

2009-06-03T22:20:00.004+01:00

i-ron-ic

happening in the opposite way to what is expected, and typically causing wry amusement because of this

“You don’t need any help?”

- Opening line from Anonymous salesperson

Normally I like to pace out my blog entries but today something happened that I just had to share with you all.

Now, let me start off by saying that when it comes to home entertainment I’m a big fan of Sony product. I have a Sony Bravia LCD television, Sony surround system and Sony DVD player. I even have a Sony PS3 as my blu-ray player. I researched and like what I discovered about the product and I enjoy the brand. I am indeed a Sony fan!

Today I walked into a Sony Centre in the United Kingdom. (I won’t tell you which store exactly because that would be cruel). Now I had gone in with the intention of buying some new wires for my surround sound system - a fairly dull project that happened to coincide with a meeting I had nearby.

When I entered the store there were 2 other customers and 1 salesperson. I don’t know how long the other customers had been waiting but I was certainly happy to wait - it’s a home entertainment store after all!

While I was waiting I couldn’t help but watch one of the nearby televisions. I thought it was a very impressive set and I was happy to watch “Wall-E” that was playing! Then I saw the price. Now I won’t share the price with you but it was definitely within my budget and I started to weigh up the pro’s and con’s of buying it. Will my fiancee yell at me if I leave this store with a new TV? Do I deserve this new toy? Can I justify it?

And the answers were - no she wouldn’t, yes I do, and yes I can.

I actually surprised myself by how excited I got at the possibility I would have a nice shiny toy for the weekend! I just bought a new blu-ray movie and was eager to see what it would look like on this new, larger and more impressive screen than the one I have at home. Ask me to buy and you’ve got yourself a sale!

But no one did ask me to buy.

In fact, after 10 minutes no one had approached me or even acknowledged that I was in the store. And when an extra salesperson did finally appear, he approached the other couple first and his opening line was “You guys okay?”.

I swear to you that I honestly laughed out loud.

After 10 minutes (even more for these other customers who were there before me) this was his opening line? And that was the point I decided I didn’t need to get this TV. Not that I don’t deserve it or want it. I just don’t want it from this store. Why should I spend my money on a dreary in-store experience when, after a bit of searching, I can save myself a few hundred pounds by getting it cheaper online or somewhere else?

All this because a salesperson did a dozen things wrong and nothing right. Did he judge me by the way I was dressed? Or by my age? Or did he just not care? I don’t know about you, but it makes me angry when businesses complain that sales are down but are throwing away opportunities in their stores!!!!

I could have spent some money today but nobody wanted it.

To discount or not to discount...

2009-06-03T22:20:00.001+01:00

ox-y-mo-ron

a figure of speech in which apparently contradictory terms appear in conjunction

“We have the best product in town! And it’s 25% off today!”

- Anonymous jeweller

What does the future look like? Can you picture the landscape of retail in 20 years? What about in 5 years? In a global recession the world changes and shifts its paradigm. Our reality is re-defined and while times are tough our resolve is strengthened and our talents are pushed.

Some retailers have no choice but to discount. Their entire definition is established by an owner who puts “50%-off” signs in the window because of the pressure of a entire industry saying “0%” discounting is impossible. When I ask a salesperson, manager or owner why they discount it is always the same answer - “Well, we have to. Don’t we?”.

The answer is Yes.....and No.

If you’ve been discounting for the last few years you’ve got a tough time ahead if you want to stop. Because if you’ve been discounting, any repeat business you’ve been getting is because of that and not your customer service or relationships.

If you have been discounting you don’t have to stop - you just need to handle it better. When a customer asks “Can you do me a better price?” or “Can you take any off for me?” you have an opportunity to still sell something. And you won’t have to discount it as much as you do now!

I’m still stunned by how often salespeople go to 10% as the default discounting position. Or go and ask the store manager if they can bring down the price without checking how much of a discount the customer actually wants!

Rather than procrastinating or pretending to be working out figures on a calculator in front of your customer, what about being honest? What about creating a sense of formality in the sales process?

Can you imagine responding with this - “A discount? I’d love to try and accommodate you today. Can you tell me what you were hoping for?” And you’ll be surprised how often the figure is less than the 10% you go to as standard. And remember the language - “I’d love to try and accommodate you today”

Of course, you can get the customer who won’t tell you how much they were looking for - “No, no. You tell me how much you can take off the price first”. Or the customer who throws out a ridiculous discount - “Alright then. Take off 50% for me”.

Firstly, don’t take it personally. They’re just trying to regain the power in the relationship and this is their way of doing it. But now it is more important than ever before to bring a sense of formality to the process - “I’m afraid we just don’t do that here at Smith Jewellers. I’d love to be able to do something for you but I really need to know how much you were hoping to spend today.” Or - “I’m afraid I can’t take off 50% because the boss will never forgive me! If you let me know what you’re budget is I may be able to match it or find another item that would be suitable for what you were hoping to get today.” That’s right - today!

If discounting is going to be part of your business model there is certainly nothing wrong with that. But make sure you’re in total control of the process. Done correctly it will increase your current average margins and your customers will respect you for it. Don’t lie and use language like “We don’t normally discount but....” - if you always discount. It will come across insincere and you will not get any points with your customer for it.

There are very few retailers I know who have a zero tolerance policy to discounting - and they can only get away with it because their service is extraordinary. So if you want to stop discounting how will you be memorable? What will be the in-store experience?

And why aren’t you doing it now?

Surviving this recession

2009-06-03T22:19:00.000+01:00

“It’s a recession when your neighbor loses his job.

It’s a depression when you lose yours.”

Harry Truman

33rd President of the United States

We’ve never had a recession like this. In fact, here are a few things that we didn’t have when America, Australia, and the United Kingdom were last in a recession...

• The Internet - it’s only been the “www” since 1993.
• Email and YouTube - 3 things we couldn’t live without today.
• About a billion people on the planet. Yes, we’ve grown that much!
• DVD’s, Blu-ray, PS3’s and Wii’s! Some of the most popular retail selling items in the world. The majority of which are sold on eBay - another thing that wasn’t around during the last recession.

The world is not coming to an end. In fact, many things were born from the last recession that dramatically shaped the next generation and the retail world.

To survive this recession we need to be innovative. That is what distinguishes between those who lead and those who follow. If you’re waiting for things to get better, you won’t make it. And I don’t have many answers for you - I only have one answer.

Use a whiteboard.

Get together with your entire team and bounce around ideas on how you can gain greater market share. How can you sell to more people who are already walking in your business, rather than trying to get more people in? Believe me, it is far easier to increase your closing ratio than to increase your foot traffic! And we all know that a happy customer talking to their friends is more powerful than a full page ad in your local magazine.

How can you innovate? And what’s stopping you?

is your business insane?

2009-06-03T22:18:00.000+01:00

“Insanity: doing the same thing over and over again, and expecting different results”.

Albert Einstein

There is one big problem with early or “overnight” success in business. It’s that we develop bad habits because we create superstitions regarding our early triumphs! “What did I do right? I should just keep doing that!”. Well, you’re right......and wrong.

One of my mentors once told me that “when times are good you don’t realise what you’re doing wrong”. And why would you? If my business is up 22% YTD then do I really care if I’m making a mistake along the way? I’d rather be wrong and rich, than right and poor!

But what happens when the world shifts its reality? What happens in a world where every week a business seems to going into administration or filing for bankruptcy? What happens when less people are walking through the door and the stores around you have “up to 75% off” signs in the window?

In those moments you need to do two things. You need to take a personal inventory of your past success and highlight what really made you money over the years. Then you need to adapt and evolve that entrepreneurial spirit that made you shine in sales and retail! Let that spirit flex its creative muscles and ask yourself, “What can I do differently? What more can I do? And where does the change begin?”.

Sitting still and “riding the storm” - that will not work. We need to be aggressive and pushy. And no, not push towards our customers but demanding towards ourselves! It’s time to change our world! Break your business plan and re-build it! Train your staff! Even if it’s having a weekly meeting and talking about the sales process is better than nothing! Have a staff incentive daily for the person who sells the most items, the most expensive item or any random item! Take cash out of the till and give it to them then and there! Call every customer who bought a present in your store last Christmas and make sure they and the gift receiver are still delighted! And, for those who can’t do that because you don’t collect customer details......START! I guarantee you that the future of any sales business will not be the ability to serve customers but rather the talent to manage relationships.

It’s time to iThink about how to change your retail world and fight for success. Start today and I guarantee that 2009 will be far more fun than any year you’ve ever had before!

how will you think different this year?

2009-03-01T22:17:00.000Z

You don’t want to train your staff because it’s a waste of money if they leave?

What if you don’t train them and they decide to stay?

Don’t turn off your TV, don’t stop reading newspapers and don’t stop listening to the radio. Over the last year everyone has been saying “the doom and gloom is just in the media”. Well, with thousands of jobs being lost and company’s going bankrupt on a daily basis maybe we should admit we need to change our approach to retail?

Now I’m not here to solve any crisis - financial or otherwise! I’ll leave that that up to politicians, experts and people a lot smarter than I am. But what about a solution to our retail problems?

In December of last year I spoke to almost 100 retailers across the United Kingdom and what astounded me most was the 3 camps that they would fall into.

“What crisis? I’m up on last year!”

This retailer is one who is in charge of their own destiny. They invest in their people, in their brand and in their customers. This retailer will have more money than they can imagine when this recession ends.

“I’m going to wait and see what happens...”

Good strategy? Wait and see what happens all the way to the bank? How’s that working out for you two weeks into the new year?

I worry about these retailers and hope they will survive 2009. But right now I think the liquidators are circling those who have two many brands and no brand identity.

“I need to do something!”

Admitting it is the first step! These are the many retailers who are asking me to come in and help them coach their staff through smarter selling and more sophisticated clientelling.

So how are you going to iThink about things differently in 2009?