A Little Gesture Means A Lot…

I was waiting to return something at Micro Center the other day when I saw a brilliant example of a heads up manager.

The customer in front of me had apparently bought a $10 iTunes gift card that the cashier had neglected to activate.

The customer of course did not discover this problem until they arrived home that evening so they had to make a special trip back to the store to have the card activated.

Most stores would have activated the card, said they were sorry (maybe) and sent the customer on their way.

But the manager on duty at Micro Center very genuinely and nicely apologized AND gave the customer a $5.00 gift card for their next purchase.  As he handed the smiling customer the gift card, he added that he hopes to see them again on their next visit.

When the customer responded “we’ll be back, my son loves computers” the manager inquired as to whether her son was of working age and looking for a job.

This was a home run in my mind.  It is one thing to say you’re sorry, quite another to put your money where your mouth is. Then, to troll for future employees?  Absolutely brilliant!

Here’s the main point… active involvement in dealing with customer concerns and then finding a personal way to go a little beyond whatever the customer expects in finding a resolution is the way to build raving fans.

This guy wins the prize for heads up manager of the day!

Marc Bluestone is a lifelong retailer and expert on small business.  He is known for his broad experience and pragmatic approach to management and marketing issues.

Why Make A To-Do List When You Can Just Do?

Every once in a while I come in contact with someone whose management skills are truly impressive.

My pick for today is a builder of Green Custom Homes in St. Louis named Jeff Bogard.

You have to understand that the process of building a home involves coordinating dozens of subcontractors who are juggling thousands of details that must all come together to make a new home turn out the way the buyer envisions. And in Jeff’s case, when the buyer is spending millions, it had better turn out right!

I have worked with Jeff for more than a year now and have always been impressed by the way he runs his jobs and delivers for his customers.

What just dawned on me the other day is one of the secrets to his success…  Jeff uses a cell phone more effectively than anyone I have ever seen.

Whenever a detail comes up that needs resolution, he pulls the phone from its holster and gets everyone that has anything to do with the conversation on a speaker phone. Right then. Instantly. No delay.

He doesn’t make a to-do list… he just does.

Question after Question. Decision after decision.

Whenever something comes up, he instantly resolves it by expecting his vendors to take responsibility and perform.

There’s a big lesson here – don’t make a to-do list when you can do.  And don’t do yourself when you can appropriately transfer the responsibility to the right person with the right knowledge to make the right call.

Engage, challenge, monitor then move on.

Jeff’s got it right!

Marc Bluestone is a lifelong retailer and expert on small business.  He is known for his broad experience and pragmatic approach to management and marketing issues.

Every Plan Has Two Parts…

I have a theory that nearly every plan has two parts.

The first part is the easy, and very often seductive part.  It has to do with with buying something, hiring someone, or otherwise taking the plunge in a direction that will positively affect your business or you life.

The second part is the hard part.  It includes the painstaking, difficult and sometimes painful work of implementation and execution.

My theory is that nearly anyone can do the first part, but very few can do the second.

Here’s an example from a personal perspective…you decide to improve your physical fitness so you join a gym or buy a treadmill.  Procurement is the first part and is easily accomplished.

The question is do you have what it takes to do part 2 (the consistent exercise)?  Most people don’t. As a result, they spend a bunch of money for no result.

Here’s a business example.  You decide that you can benefit from an upgrade of your computer systems.  It is relatively easy to spend the money to buy hardware and software. The question becomes whether you have what it takes to work through the implementation and the ongoing operations discipline?

My point is that the ease with which we can complete the first part (procurement) sometimes causes us to enter into decisions which we are ultimately unable to fully implement.

The result is that we have spent the money wthout receiving the benefit. Arguably in worse shape than if we had never tried at all.

When becoming involved in any initiative it is best to be sure you fully appreciate and commit to both parts of the plan.

Marc Bluestone is a lifelong retailer and expert on small business.  He is known for his broad experience and pragmatic approach to management and marketing issues.

Why Cell Phones & Work Don’t Mix…

If your employee owns a cell phone, there’s a good chance they are stealing from you.

What are they stealing?  TIME!

This afternoon I had the occasion to watch the guys from the trash company collect our recycling.

It went something like this…

1) While talking on his cell phone, the guy using his free hand attempted clumsily to navigate the collection container up my driveway.

2) Then, again while using his free hand, the guy slowly loaded my recyclables into the collection container.

3) Then, after pausing for a rest (while talking on the phone) he slowly walked back down my driveway.

4) Upon arriving at his truck and realizing that he would need two hands to empty the container, he proceeded to talk on his phone for several minutes until his buddy came over and used his free hand (yes, he was also talking on his cell phone) to help lift the can.

When I last saw them, they were both still walking slowly and talking on the phone.  I wish I had it on video.

Here’s my point.  While this example is particularly aggregious, it is emblematic of what I consider to be a major problem.

Too many employees have come to consider it normal and acceptable to talk on the phone while being paid by their employers to do work.

They work more slowly and less effectively. In my mind they are stealing time and destroying productivity.

Attention employers… you have the right to expect your employees full time and attention while on the job.

Cell phones & work don’t mix.

Ban those cell phones!

Sometimes Even Giants Miss…

There are few stores that I enjoy browsing more than ‘Best Buy.’

Their buyers bring in an interesting selection of product and it is displayed in a way that encourages you to touch, play and learn.

That’s why I was so surprised to see this…

Yes.  That’s right. Office chairs secured to displays several feet off the ground.

Would you buy a chair that you couldn’t sit on?  I wouldn’t either.

And when they don’t sell, will the buyer decide that chairs were a bad idea or will they consider the possibility that they were simply displayed poorly?

My point is this… when you bring in a product, it is important to design the display in a way that makes it easy for customers to become familiar with a product and decide if they would like to buy it.  In this case, there’s no way that goal is accomplished.

Another point might revolve around wondering why a company known for dominating categories would bring in only 2 sku’s?  If their own buyers don’t look like they care about a product line, then why should we?

Look at things from a customers point of view and you are more likely to get where you want to go.

Marc

If It’s A Cost, I’ll Take Mine Variable…

It’s no secret that businesses are having a tough time making last year’s sales numbers.

My phone is living proof of this as it rings daily from retailers wanting advice on how to weather the current business cycle.

And while growing sales is key to building a business, in tough times that is often not realistic.

Tough times demand survival and survival often depends on getting your costs low enough that you can stay in the black no matter what happens to your sales.

Unfortunately, too many business owners get locked into fixed costs that can’t be reduced at will.

Building leases, cars, loan payments, some types of advertising, etc are all examples of costs that stay the same regardless of sales.

Salaries often fall into this category too unless you’re willing to make some difficult changes.

Here’s my thought for the day…

How much can you do with how little?  Can you figure out a way to make more of your costs variable?

How can you avoid signing into long term obligations by purchasing services on an ‘as needed’ basis? For example, instead of leasing a larger building for infrequent sales bursts, can you utilize temporary storage whose cost goes away when you’re not using it?

How much can you do with how little?

There is money to be made if you can master that idea in tough times, and stick to it in good times.

Marc

Marc Bluestone is a lifelong retailer and expert on small business.  He is known for his broad experience and pragmatic approach to management and marketing issues.

One Courageous Moment

Why is it that so many of us know what to do yet still fail to do it?

We learn lessons yet repeat the mistake…

We have instincts yet we ignore them…

We KNOW that a particular action is necessary yet we fall victim to inaction…

We know what is right, but might not do what is right…

I think it all comes down to one courageous moment.

  • The moment when you leave your comfort zone to do what you know needs to be done.
  • The moment when you risk it all because you know that the bigger risk is to do nothing. 
  • The moment when you do what you know is right even though it may create controversy or pain.

More than anything, the courageous moment is when you look in the mirror and decide if you have what it takes to make the hard choice.

Will you hide from that moment?

 Marc

TWA Used To Do That…

Here’s a recollection of something that happened years ago that hasn’t fully left my mind…

If you don’t already know, there used to be an airline called TWA (Trans World Airlines). After suffering extensive financial issues, TWA became a part of American Airlines.

I used to fly TWA a lot and earned what they called the “Red Card” which represented their highest frequent flyer level.  Essentially, you received an upgrade whenever there was an empty seat, etc.

Very soon after the change I was flying American somewhere and I was seated in coach (American had more stringent upgrade rules).

I was sitting next to a person who really should have been required to buy 2 seats and I noticed there were a number of empty seats in first class.  I politely inquired of the flight attendant if I might move up there.

She politely said no.  I responded by saying that TWA had always put its highest level frequent flyers in first class if there was a seat available.

Her response was “and look what happened to them.”

I remember this a decade or more later.

There are any number of lessons here.  I’ll pick one…

Giving away costly extra services to your best customers may show your appreciation, but does not necessarily translate into benefit for the business. In fact, it may cost you more than you think.

[this part's for you, Barry] Watch out what you give away.

Marc Bluestone

Marc Bluestone is a lifelong retailer and expert on small business.  He is known for his broad experience and pragmatic approach to management and marketing issues.

THE ANSWER IS YES! … now what is the question?

I was having lunch with my wife at a “SanSai Japanese Grill” restaurant the other day (if you haven’t tried SanSai, they are mainly located in California & Missouri – excellent, fast & healthy food).

Laurie decided that she wanted to order a combination plate in a way that didn’t actually exist on the menu.

She ordered at the counter and you could see the cashier’s mind working to decide if it was possible.  Just at the moment that I thought he might say no, his eyes lit up to say “no problem”.

I was very impressed.  So many people instantly jump to a “why we can’t” attitude instead of thinking about “how they can.”

A few minutes later, the owner of the SanSai chain happened to walk into the restaurant.  I relayed this story to him, and he was pleased but not particularly surprised.

He told me that the cashier must have remembered their # 1 operating rule… “the answer is yes – now what is the question?”

These guys get it. They know that a customer’s needs must be catered to. And they know that training matters.

Does your staff know that they need to find ways for their answer to be YES?

Marc Bluestone

Walking Away in Disgust…

I walked up to a “Helio” kiosk in a mall anxious to learn about Helio phones (high-end smartphones that are supposed to be iPhone and Blackberry killers).

Instead, the sales representative went on a ill advised and never ending rant against iPhones.  They don’t work he said. They catch on fire he said. They run out of power in an hour he said.

It is important to realize that I never asked him what’s wrong about iPhones. Quite the opposite… I gave him an unimpeded opportunity to sell me on what’s right about Helio.

But he blew it. His negativity (almost anger) against a competitor I never mentioned reflected so poorly on his credibility that I just walked away. It made me wonder what iPhone did so well that allowed it to clean this guy’s clock so badly that he harbored so much angst.

Here’s the point… When selling your product or service, DON’T GO NEGATIVE against the competition!  Too often it will turn around and bite you.

Sell on YOUR features and benefits. Sell YOUR experience and credibility.

If the customer asks you for a direct comparison to a competitor, try to state your case while preserving a modicum of grace. There are ways to sell your superiority without bloodying the other guy.

You will look stronger and wiser for taking the high road.  And I won’t walk away.