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Retail Sales Management Rewards: Buy Your Way Out of the Bathroom

hobartLast night I saw the film, the Hobart Shakespeareans. http://www.hobartshakespeareans.org/ It is a documentary about an extraordinary elementary school in Los Angeles and the teacher Rafe Esquith.

Each year he teaches his fifth-graders a different Shakespeare play, they audition for the rolls, and create music to underscore the drama. Any teacher, parent, principal, or business owner should see it; for a variety of reasons.

What I found most intriguing was his use of scrip (simulated cash) in the classroom. All the children applied for classroom jobs which comes with a monthly paycheck. Janitors who work daily earn more money than students whose jobs require their services only a couple times a week. They need to save their money because all students pay rent to sit at their desks.

They could use their scrip to buy a closer seat to the front and there are other perks. One scene showed Rafe auctioning off a Fender Stratocaster and one girl got it with 100,000 in her script. It got me thinking…

Why couldn’t we use a similar program to manage employees?

If we could make retail a performance only job, then maybe we could meet with the same success that Rafe does. This is more cohesive than a sales contest, it is performance based.

What if employees got bonus scrip for filling in at short notice, or meeting an above average number of items per sale, or having the highest average sales for a week?

They could use their scrip to not have to clean the bathroom for say 25,000 or they could buy a longer lunch, or be able to go home early and not clean up. There are thousands of things you could come up with that would be rewarding great performances.

So much of retail is not working right now because there are no metrics.  Jobs are blah and the people working them are with few exceptions bored waiting like Cinderella for something to come along and deliver them from the grind.

We judge our employees by and we spend most of our time managing, the lower 30% of employees who should probably never have been hired to begin with.

What would it take for you to implement such a methodical reward system? I’m sure there could be a way for someone to occasionally beat the system, but wouldn’t it be more fun to manage by reward, than by punishing or worse, settling?

Retail Sales: Employees Have To Want To Connect

I bought a martingale collar today. I was wondering around historic Williamsburg and saw a very small pet shop with a good display. I entered and began looking around when I spotted a 14” wide pewter dog food dish adorned with bones and spike collars.

A young woman came up to me and I said, “That has to be the baddest bowl I’ve ever seen.” Her name badge read Ashley.  She asked if I had a dog and, like any proud owner told her she was a Harrier, much like a Foxhound as I showed her a picture on my iPhone. She shared that she had two hounds one a St. Bernard hound mix that weighed 125 pounds.  She asked if I’d ever seen a martingale collar.

Hallie Mae the Harrier

Hallie Mae the Harrier

I told her that I never heard of them, because Hallie Mae is so strong, I have to use a choke collar.  Ashley said, “You  know that just makes her pull more.” I replied, “I know but I’m afraid of her getting away since she had been at the ASPCA for nine months and can cover 40 miles a day if she gets the scent.”

Ashley told me their martingale collars won’t let the dog pull their head out of the collar so you’ll have control over her, it relaxes quickly so she won’t pull like the choke collar and it is soft fabric so it won’t wear off her fur.

She went on to say they have tensile strength for 225 pounds, and the ones she uses on her hounds haven’t broken yet. “I only weigh 110 pounds so they can get away from me,  but it’s because I’m not that strong, not because of the collar.”

She took the time to show me which one worked for a 55-pound dog and stayed with me the entire time.

I walked by the shop next door and saw ties with various dog breeds on them in the window.  I typically don’t buy “kitschy” but wouldn’t it be cool to have a Harrier or Foxhound tie? I walked in and asked the guy behind the counter, head down reading something, “Do any of those ties have a hound on them or is that your only choices?”

He opened the drawer, pulled out a chart and said to no one in particular, “No, that’s it” and returned to his bookwork. I looked around the store for three or four minutes while a couple was looking at some hats and some other items – unattended.

dog with collar

New martingale collar

What a stark difference from Ashley who was driving sales. I was not in the market for a collar, I thought. But the need when I was presented with the information was there because she made a connection. Nobody got out of Mrs. Bones without buying something; in my case it was a $36 collar.

No other person in the various shops I visited said a word to me or the other shoppers on that rainy day. Ashley had to talk to me, she had to connect. Ashley craved that connection. You can build a business on the Ashleys of the world.

You want to bellyache about how business is off? Call your buddies and compare sob stories? Save your time and instead go out shopping to find and bring the Ashleys of the world to your store.

Do you have a story about a great employee who had to connect? Please share it in the comments section.

Retail Managment: Live Up To Expectations You Set

A client put me up at the Crown Plaza Bloomington, MN this week.  I hadn’t stayed at a Crown Plaza before so I asked the driver of the shuttle, “Isn’t this part of Holiday Inn?” He replied it was and the guy next to me and I started razzing him a bit about it. “Great, flashing star, tired lounge, nice.”

The driver quickly picked up, “No really, we’re great.  There are 160 Crowne Plaza properties in the US and we are #2 in terms of quality.  Our bar is very cool and features a fire pit. All rooms have a 42” plasma TV and on Tuesday and Wednesday night we have free massages.” We shut up, this sounded like a good place to stay.

The interior looked like a swanky LA or NY hotel. I checked in and was assisted by Jenny who did a great job, friendly, outgoing; you could build a business on her.  Just like the shuttle driver, Jenny and the other front desk agents were proud of this property.  Their enthusiasm was genuine.

crowne-full

The background behind the bottles constantly changed

As I finished up, Jason, the guy who rode in the shuttle said he was really hungry and Jenny  added, “You can eat at the bar if you want.” Jason touched my shoulder, “Hey, there’s the firepit.”

I was dog-tired; he wanted to get something to eat so we split up but not before I was able to notice the bar.  Under every low-hanging blue halogen spot was a full martini glass full of a bright red liquid.  The rest of the bar was spot lit throughout with three blue candle holders lit on the tables. Very high-end and inviting.  Like any great retail display it drew customers and the bar was full.

Spot lit red martini glasses

Spot lit red martini glasses

I went to my room and unpacked then figured, what the heck, I’d go back down and have a drink with Jason.  I found him chatting up a couple of conventioneers and got ready to sit down when he turned to me, “I’ve been waiting 15 minutes for anyone to take my order.”  I thought, Hmm, maybe not, excused myself and left.

The next night Jason was arriving with the rest of their convention goers as I was waiting in the lobby for my free  massage. “Good thing you didn’t wait, took forever to get my steak. It was great but … they did it again tonight. Three guys had ordered their drinks and couldn’t get anyone to give them the bill, they walked out to get on our bus. I’m sure the waiter was upset but they lost the business.”

After my massage, I went to the bar to order dessert. The barkeep told me they had cheesecake, berry sorbet and two other items.  I ordered the berry sorbet. She came back two minutes later, “Sorry sir, we’re out.”

Point of this blog is you can spend millions on having the prettiest business but if you can’t follow that up consistently with as exceptional an experience as your fixtures, what good are you?

crowne-yellow

The next morning, the bar was reset to yellow liquid in the martini glasses. Spectacular to draw attention

In retail you are known more for your compromises than your designs, products or store design.

The business goes to those who can live up to the expectation they set for the customer whether that is your four walls, your website or product claims. And that can change with the person you leave in charge or your lack of scheduling to demand.

Where have you found the expectations set by the shopping environment were matched with an exceptional experience you would tell the world about?

How To Deal With Customers' Delays

I was training a group of about twenty store managers this week. I was highlighting the differences between the four personality types; the Driver, Analytical, Expressive and Amiable.  I spoke about extensively the Driver. That’s because I am one.  Characteristics of the Driver include a bit of an aggressive nature, results oriented, “cut to the chase” mentality.  (Think: Donald Trump.) These are strengths that can lead others to see the Driver as blunt, domineering and risk takers.

Last night we all were all to go out to a local restaurant. The client’s coordinator had us fill out one of four choices of entree and soup or salad and dressing choice by noon and faxed to the restaurant to save time.

We arrived at about 6 pm to find a table set for 30 of us out on the patio.  Drink orders were placed and we assumed dinner would be coming shortly. This wasn’t a problem as our sales training had gone great for the day so there was a lot to talk about. About 7:30pm people noticed they hadn’t received their food.

About 7:45 pm 80% of the salads arrived and one or two entrees. By 8:30 we were still missing two dinners when we saw the waiter approach the VP and apologize.  Apparently the VP asked him why the manager hadn’t come out.  The manger then told the VP that it was the manger who said for him to come and and talk to the VP.

I went back to our table conversation and next thing I knew I heard the VP say to a guy appearing to be the manager in a loud voice, “You have to be the stupidest people in the state.” All conversation ended at the three long tables as we all looked to see what the manager was going to say. A truck passed by us through the parking lot.  Instead of apologizing, the manager restated, “So you think we are the stupidest people in the state?”  The VP got even more steamed as he yelled, “No, you’re the stupidest people in the U.S.” With that the manager left without saying a word.

What would happen? Would we pay the bill? What would the managers say?

I used it as a training opportunity and asked those at my table,”What was really going on here?”

The managers correctly saw that the Driver personality was upset because the restaurant had failed to perform and the VP looked bad, not because attendees were complaining. He wasn’t looking for a discount, they had failed to provide the results he expected.

After a few minutes another employee went in to counsel the restaurant manager that he had to go back out there if he expected to be paid. The manager returned, asked if the could speak privately, offered 15% off the bill and took full responsibility for the debacle. While placated and sorry he blew up,  the VP swore off ever returning to that restaurant.

The whole thing could have been averted.

When the one waiter was overwhelmed, the manger could have come out and said, “We’re over our heads, can I get you some appetizers on the house or something until we get it right?”  He could have jumped in and helped.  He could have done lots of things but didn’t

By the time he approached the VP all reason was lost; Driver personalities never want to look bad.  Well who does really?

If you have a business where there are deadlines or orders are dependent on others to do their job, never wait for the customer to contact you. Be proactive and tell them you’ve checked on an order and tell them it is “6 weeks out “if it is 4. You’ll be a hero if it arrives at 5.

Call them when you know it is shipped. That’s all any reasonable person wants. No customer will be upset with updates – what they get steamed about are delays where they have to call and check.

Even if you tell them initially an order would take 7 weeks, it is not unreasonable, if they’ve given you a deposit, for them to be anxious to receive it and call you in a week to ask for an update.  Remember what the customer would feel like.

Keep customers informed of delays and regardless of your personality type, you’ll hear, “Thank you” instead of how stupid you are.

AP Poll: 45% Of Employees Don't Contribute to the Bottom Line

timeclockThe AP is reporting this morning the results of a phone survey of “1,000 randomly selected U.S. small businesses with revenue between $1 million and $200 million, 41 % said workers are paid for attendance rather than performance. Of those surveyed, 45 % said employees don’t have any daily, specific or measurable goals. Meanwhile, 45 % said the employees don’t contribute directly to the bottom line.”

At first glance, it would seem that there are no standards but on second glance, it is unclear what question they asked on the survey. The most striking finding were the lack of goals and feeling they don’t contribute.

And whose fault is that?

A business that doesn’t see how every person directly contributes to the bottom line needs to have their collective head examined. The guy in the warehouse who knows where every single item is, can spot when a pick list is wrong and keep supplies going to customers, instead of writing backorder.  The installer who finishes the job with a “Harumph” and complains to the customer he has two more jobs to do before going home, stops word-of-mouth from growing referral business. The CEO who says to a VP when a mistake is made by his secretary, “she’s just a bag of hair,” makes everyone concerned what is said behind their backs.  The salesman that makes an extra call at the non-competing business next door to a client.  I could go on and on but you get the point, everyone affects the bottom line; some contribute, some detract.

That’s why so many businesses are struggling right now.  Nobody knows where they are going or how employees fit into that mission. “Just try to keep your head above water,” is hardly a rallying cry.  So is it a mystery employees don’t have  measurable goals?

That might be all it takes. Though times are trying, many small business owners admit they’re paying employees just to show up and not much more. That’s your competition talking.  Do better by rewarding performance, not inertia.

Listen to how to make your business standout.

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