« November 2007 | Main | January 2008 »

December 2007 Archives

December 6, 2007

The Price of Mis(sed)perceptions

It's December and, like pretty much everyone else in the world celebrating the holiday, I find myself shopping in stores that I have no cause to go near the rest of the year in order to secure gifts for family and friends. I am not the typical customer for these stores and they feel like alien environments to me. But, I'm potentially a really good customer. And you have to make sure that your staff understands that. In retail, misperceptions plus assumptions equal lost sales.

David Carr and Donald Cooper have made this exact point in articles that have run in this magazine. In the September/October 2006 issue, Donald contributed an article called The Christmas Tree Man. In it he told the story of a scruffy-looking man who popped into his store nearly every day over a three-week period one holiday season. By Christmas Eve, the gentleman had bought almost $3,000 worth of merchandise. The lesson Cooper learned, which he now shares with retail clients, is that it's dangerous to judge a customer by how they're dressed or by their general appearance.

In a similar vein, David Carr contributed an article called Losing Assumptions to the July/August 2007 issue. In it he explained that there's only one way to know what your customers want and need, and that is to ask them. But, he said, many sales people think they can "read" their customers. He wrote:

Time and time again when I observe retail sales associates appearing to ignore or to avoid a customer or otherwise behaving in a less than productive manner, I ask them about their motives. Almost without exception, they explain that they "knew" that the customer did not want to be approached and so they left them alone "to browse." Of course, it is not possible to know what anyone wants or needs until we ask. When we make these decisions…we run a very high risk of missing sales. When we miss sales, it is inevitable that someone else will get them. A customer who enters our store needing and wanting something and who leaves without it will certainly take the need with them and go to another store.

Everyone who enters a store is a potential buyer and more than 40 percent of those who do are likely to leave without making a purchase if they are not addressed and assisted proactively by a skilled, motivated sales professional who is willing to objectively determine their wants and needs without making any prejudgments.
So, why not try to change your mindset to ensure that you remain neutral with customers? Why not treat all of them as though they were warm, sincere, receptive people with needs that they will share with you and allow you to address and satisfy if you evaluate them skillfully and thoroughly.

To do otherwise is to risk paying the price of misperception.

December 10, 2007

Shopping on Mars and Venus

I've come across a study on the differences between male and female shoppers, which was conducted by the Jay H. Baker Retail Initiative at the Wharton School of the University of Pennsylvania, the Verde Group, and WomenCertified. While the results are interesting, what caught my attention were the descriptions of the Verde Group and WomenCertified. The Verde Group is a "leading customer dissatisfaction consulting firm" and WomenCertified is a "consumer advocacy resource that empowers women to make better buying decisions."

It was the Verde Group's use of a negative--i.e. dissatisfaction--that caught my eye. It makes absolute sense to study customer dissatisfaction. I've just gotten used to "positive language"--every message that a business sends out spun into a glowing affirmation of what they do (or produce, or sell). And, I was surprised by the WomenCertified description because I didn't realize that I needed to be empowered to make better buying decisions. My days are full of buying decisions. Hmmm, I thought when I read the press release, maybe I'm not shopping as well as I should be. Well, it turns out that there's some truth in that feeling. The study revealed that as a woman over the age of 40, I'm more likely to experience problems shopping than a man in the same age category. However, men are "nearly 20% less likely to recommend a store where they experienced problems than women." A difference that is "even more pronounced among men under the age of 40."

The study highlighted some other "fundamental shopping differences between genders." Here are a selection of its findings:

* Customer service was a prevailing theme in the survey, particularly with women shoppers
* Among the top problems that female shoppers experience, "lack of help, when needed" is the number one problem (29%) and is more likely to lead to lost business
* About 6% of all female shoppers are likely lost as a result of this problem
* Men's priorities are different: "difficulty in finding parking close to the store's entrance" was the number one problem for men (also at 29%)
* The problem that is most likely to lead to lost business for men is when a product is out of stock (5% of all male shoppers are likely lost as a result of this problem
* The problem that is most likely to lead to lost business for men is when a product is out of stock (5% of all male shoppers are likely lost as a result of this problem)
* Men and women are most satisfied with the sales associate's willingness to let them shop or browse at their own pace: at least 77% report being very satisfied with this attribute
* For men, a key loyalty builder is the sales associate's interest in helping them find the item they were looking for, followed by the sales associate's effort in getting them through check-out quickly
* For women, loyalty builders are more closely related to the sales associate's familiarity with the products and determining what products best suit them
* Women shoppers also value sales associates who make them feel important
* Almost half (47%) of women shoppers say they will not return to a store because, "store employees acted like shoppers were intruding on their time or their own conversations
* Only 22% of men agreed, and the difference is even more pronounced when comparing women over the age of 40 with men over the age of 40
* At least 50% of shoppers report having had a "wow" shopping experience at some point in their life that is one that is considered great
* More women than men report having had a "wow" shopping experience, but men and women alike are just over four times more likely to tell people about their positive "wow" experience than their negative shopping experience
* "Wow" experiences occur far less often than problem experiences, regardless of gender

It's interesting that the word price never comes up. The study is called "Men Buy, Women Shop." Click here to read more about it.

December 13, 2007

Selling Off Canada: Complete Survey Results

Last October G&T's sister publication, Hardware and Home Centre Magazine, ran an article on foreign ownership of Canadian companies. "The Great Canadian Sell-Off" by writer Sophie Kneisel looked at the extent of foreign ownership in this country and its impact on our economy. A great deal of big retail in this country is owned by foreign companies (Home Depot, The Bay, Wal-Mart, Home Sense, Zara, H&M, Pottery Barn, Williams-Sonoma, etc.) and there are more coming this year (Lowe's has just opened, Crate & Barrel, etc.). In mid-October, I read that independent retailers in India were demonstrating and lobbying against foreign-owned retailers being allowed to come into their country, and calling for legislation to protect their businesses. Within a day or two, The Bangkok Post ("Cabinet nods for retail business bill", October 16, 2007) reported that Thailand's Cabinet had green lighted a draft bill on retail business that would "require hypermarket operators to seek permission from the authority before opening new branches." (See my earlier blog, Retailers Rise Up for more on these stories.) With these two cases in mind, I thought it was time to see where members of the Canadian gift and tableware sector stood on this complex issue. Had we already given away too much of Canada's retail landscape?

In my opinion, we have. I think the rise of big box stores and power centers have impoverished the retail scene and ruined Main Streets in many places in this country. We have experienced a loss of independents and independence. Is this what consumers want? Do they want the Canadian retail environment to consist of the same products in the same stores in the same formats across the country? Is there a way to take the customer service perks of the power centers, i.e. lots of free parking, and incorporate them into Main Street settings? For example, should local governments be more interested in creating eco-friendly, pedestrian malls rather than signing off on yet another Wal-Mart? And what about prices? Will we see quality becoming a larger part of the buying decision for more consumers?

Of course, the selling off of Canada reaches far, far beyond retail. In response to the question about whether it matters who owns Canada's resources, someone wrote "Duh." I agree it's a no-brainer. Of course, we should own our resources. But here's the thing: We've all sat back and watched governments of all political stripes give them away. What were we thinking?

Well, to find out what you're thinking now, a survey was sent to the magazine's email database in late October. Results and a small selection of the comments are presented in the January 2008 issue. For those of you who are interested, the results and all the survey comments are available in the PDF attached here. If you didn't participate in the survey and would like to share your thoughts on the subject, just click on the Comments button below.

Selling Off Canada - Complete Survey Results


December 14, 2007

Do Trends Matter?

The most recent issue of Canadian House & Home arrived on my desk today. Its cover story is the "Top 10 Trends of '08." These are: Forest, Jewel Box, Casino, Granny Chic, Modern Baby, Fair Trade, Neo Classical Now, Root Vegetable, Global Textiles, and Hot & Cold. As I leafed through the pages, I got to wondering how much trends matter. There's no doubt that people love articles on trends. And magazines--Gifts and Tablewares included--love to do stories on trends. They're entertaining and they lend themselves to great graphics. But, how much to they really influence the buying decisions of suppliers, retailers and consumers?

I have to be honest, trends don't really influence my buying decisions. I buy things I like. It doesn't really matter to me whether they are "in." But, if I were buying for a store, would color and design trends influence what I bought at shows? What do you think? How much do they matter to you?

One last note: I was delighted to see a special section of yesterday's edition of The Toronto Star devoted to gifts offered by independent retailers. The "Last Minute Gift Guide" looked at independents in Toronto, Pickering, Belfountain, Oakville, Port Credit, Streetsville, and other communities in the GTA and southern Ontario. It was great.

This is my last post for 2007. I'll be back in the blogosphere on January 7th, 2008. Happy Holidays and Best Wishes for a Healthy, Joyful, Successful New Year!

About December 2007

This page contains all entries posted to Editorial Blog in December 2007. They are listed from oldest to newest.

November 2007 is the previous archive.

January 2008 is the next archive.

Many more can be found on the main index page or by looking through the archives.

Powered by Movable Type 3.35
Hosted by LivingDot