- Posted by Warren Tyler on April 13, 2010
The former head of the educational arm of a large retail group used to joke that no matter what subject he gave to me, the presentation was the same. To a point, he was right because the acceptance of anything and everything we offer to others in life is dependent upon our attitudes. So whether I was speaking about selling, customer service or management, the first portion always dealt with attitudes.
Your success in life and in business is directly related to how you deal with people. If you are in management and you tell employees to do something, they may do it because of the knowledge that their job performance will suffer if they don't. However, if employees can't wait for the opportunity to carry out a request for you, you are a leader.
Most sales professionals know that people don't want to be sold, they want to buy. Good salespeople can persuade others to buy, but to become an elite salesperson, people will have a desire to buy from you and attitude dictates this critical difference.
One of the most difficult hurdles in life to surmount is the fact that your attitude has far more to do with your future success than knowledge. You may know more than others in your field, but that won't guarantee your rise to the top. Think about this for a while. It is emotionally, physically and intellectually impossible to do the best job for someone you don't like.
We survey customers constantly as to why they buy. One of the constants is that they don't buy at the other store because of better selection or lower price: they buy because they like the other salesperson better.
If you accept my premise, it's logical to believe that leadership is the art of being liked and that selling is the art of being liked as well. Very few, if any, business coaches or trainers teach employees the attitudes of success which is why, when dealing with utility companies, the DMV, retail salespeople or bank employees, especially when you have a problem, the encounter is less than fun – sometimes even hostile. This is the reason when employees greet you, "Welcome to Walmart," it's impossible to believe they really mean it!
Welcome to the real world. People secure jobs because someone liked them better. A police officer may issue a warning rather than a ticket because he likes you. Promotions are awarded because someone is liked and politicians win elections not because of expertise or knowledge but because the electorate likes them better.
Not fair you say? People like others because they make them feel good. Can anyone find something wrong with this? In business, trainers can't just show or tell people how to be nice to others. And that is why business owners get such mediocre results from sales and service training. Millions of dollars each year are literally thrown away.
Your attitude demonstrates to others that you are a sincere and likable person and, therefore, trustworthy. Service people with the right attitude can offer the exact same solution to a problem that someone else does and have a grateful customer while the other service person creates an angry one.
In a nutshell, the attitudes are sincerity, enthusiasm and self esteem. There is not nearly enough room on this blog to adequately describe them, but here is a brief overview. To me, sincerity is everything. Someone once said; 'Without honor a person is but an empty shell." I can demonstrate why the truth will always win out in any business situation.
Sincerity is painted in big letters on every single person. To be liked, you must like others. Actually, it goes much deeper. You must have the ability to give the same love and respect to strangers that lesser people can only reserve for friends and family. You can't fake it. There are many successful fakers, but I can't help thinking how much more successful they would be if they were real people.
If you can't be enthusiastic about a project, your people, your business, your ability to provide real service, your products, yourself or your customer, how can you ever expect employees, family, or customers to be enthusiastic about what you are presenting at the time?
And finally, the "biggie": self esteem. If you don't love yourself, perfectly satisfied and thankful for you, exactly the way the Lord made you, it will be impossible to love others. It is so apparent that most of us, especially our government officials and educators haven't the slightest clue about what self-esteem is and how to build it in others given the incredible failures of our schools and government programs.
- Posted by Warren Tyler on February 9, 2010
Something I rarely write about is retail advertising. Not that it’s a subject I am unfamiliar with, but there have been other priorities. In addition to this, the subject is controversial simply because there are so many opinions and, more importantly, it is an area that fiber producers, marketing people and manufacturers insert themselves. While these people and their organizations are indispensable to all of us, their different agendas put them at odds with most retailers.
Marketing v. Sales
Let me try to explain in the most sensitive (something alien to me) terms possible: Marketing has a place in retail advertising, but only in an advisory capacity. Marketing is desk work. Selling is field work. Marketing deals with groups of consumers. Selling is more difficult; dealing one-on-one with individual consumers, each unique in almost every manner. Manufacturers’ marketing is creating a desire for a product among targeted groups while retailers are concerned with directing individual consumers to purchase products from an individual store. If you think about this list, although it shouldn’t be, it becomes apparent that sales and marketing can be competing activities. Moreover, both require opposite skill sets.
The problem arises when marketing types take their “create a desire for the product agenda” over into retail advertising. We desperately need marketing people in order to create effective retail ads, but in an advisory capacity. Unless they are specifically retail advertising experts, they shouldn’t be creating advertising for retail stores.
Effective manufacturing advertising programs such as, “Carpet From the Looms of Mohawk,” “Home Means More With Bigelow on the Floor” and the ingenious “Stainmaster” promotion were legendary efforts but any retailer running offshoots of these ads produced by their suppliers would most likely receive zero response.
Because these professionally produced ads from manufacturers and suppliers look so good and are free, retailers run them. Sometimes it’s possible to make a few changes that would make these ads productive for the retailers. But, unless they use the ad exactly as produced, they may not qualify for maximum (or any) co-op advertising funds. Retail ads need to be designed for no purpose other than to bring consumers, ready-to-buy, to a specific store.
Great retail ads can line people up at the door, in some cases for hours before the doors open. I have been totally unsuccessful when speaking with manufacturers to explain the difference. It’s two different worlds.
There have been great retail advertising campaigns in this industry from Einstein-Moomjy’s “A Good Carpet for Bad Dogs!” featuring a sad-eyed Bassett Hound and Teddy Einstein saying in a cartoon balloon “I can’t sell this beautiful Saxony plush for $8.99!” while his partner Walter Moomjy standing back-to back with a balloon over his head saying, “I can!” to Jordan Furniture’s great radio ads stating “Not to be confused with Jordan Marsh!” but all directing consumers to buy from their particular store.
Another difficulty is that, generally, the advertising industry completely abrogates responsibility for sales. Whenever I asked the question about responsibility for sales at advertising sessions, the room fell into complete silence. The answer would come back that advertising was responsible for “image,” “positioning” or the desire thing again; which is terrific if you’re advertising Guess, Coach or Canali in fashion magazines, but doesn’t work in retail.
The great divide stems from the fact that elites of the advertising industry concentrates on suppliers, while “retail” is treated as the poor sister, not really worthy of their best efforts. The greatest of the great advertising geniuses, David Ogilvy, stated that advertising is responsible for sales. Taking the information from his incredible book “Ogilvy on Advertising,” (a must read) I proved to the few agencies that would listen that, yes, they were indeed responsible for sales.
A Unique Selling Proposition
David Elychar’s success with Big Bob’s Flooring Outlets is directly connected his unique TV advertising based on the premise that there were more K-Mart Shoppers than Neiman Marcus shoppers. The characters he created kicked off his nationwide franchising operation. David took on the persona of several characters in these ads which created intense interest while rarely, if ever, mentioning price. Seeing is believing; when walking with him in Kansas City years ago, people continually approached David to ask for his autograph.
Einstein-Moomjy’s reputation was such that, during busy times before the holidays, they would have to hire outside trucks to keep up with deliveries. E-M customers actually refused to accept deliveries if the truck wasn’t marked with the distinctive E-M logo. Customers wanted their neighbors to know just where they had purchased their new flooring.
A unique selling proposition (USP) is something you have that no one else does that separates you from every other store. A USP is sometimes difficult to find and it can be anything. Many athletes invest in restaurants and auto dealerships—the celebrity being the USP. The product or service can be a USP. Right now fiberglass backed vinyl can be a USP because every other store is stuck with the old fiber backed vinyl.
Having trained decorators on staff shouldn’t be a USP because all flooring stores should have them. However, few do, so it would qualify. Retail advertising must give a reason for consumers to flock to your store and no one else’s. Advertising produced by suppliers doesn’t accomplish this.
Under distressing economic conditions, retailers can’t afford ineffective advertising. Today, there has to be an instant return on advertising and no one can afford useless headlines such as “Spring Fling,” “Color Your World,” “The Colors of Spring,” “Long Hot Summer Sale Days!” or “Autumn Jamboree!” These are marketing headlines masquerading as retail advertising.
Professional retailers know the “Proven Consumer Buying Periods” and they plan promotions around these periods. The headline has to identify the period, “Veteran’s Day Sale!” It must be dominant in the media, have a descriptive sub-headline explaining the reason for the sale and stress immediacy. “One Day Only” is far more effective for these ads than “One Week” which is weak. Some words are still magic; “New!” “Introductory,” “Sale!” “Free!” “Revolutionary!” “Breakthrough!” Too good to use these words? You have to maintain your image? Remember, you can’t take image to the bank.
The secret to successful retail advertising is that it has to be something that will bring consumers to your store; be it a celebrity, a character (local celebrity) like Big Bob, a USP or an overwhelming promotion planned around the 8-10 proven consumer buying periods.
A word of advice: most advertising agencies are unaware of the art of retail advertising. Media people, especially in print, have little idea of the intricacies of retail advertising, so be careful. Unless you are lucky enough to find a talented retail agency, the best thing most of us can accomplish is to do the research and guide a local agency through the steps. Most importantly, now is not the time to save money by not promoting.
One last note: over the years, retailers have been subjected to a survey that comes out periodically that uncovers the reasons consumers buy flooring and, more importantly, the great chasm the divides suppliers and retailers. The results, predictably, are always the same. Given the choices, consumers overwhelmingly give their reasons for selecting the floor covering they did as:
1. Color
2. Style
3. Quality
4. Store Reputation
5. Price
Interpreting these results naively brings manufacturers, suppliers and, on occasion, even the trade press, to instruct retailers thusly: If these are the reasons consumers say they buy, why not advertise color and style?
Knowledgeable retailers would immediately answer, “Because most consumers pick the store because of perceived value, not color and style. It’s only when she finally steps through the door that these factors become valid—duh!”
- Posted by Warren Tyler on January 13, 2010
Still Waiting for Hope and Change?
If there is one event I look forward to each year, it is SURFACES. And before SURFACES existed, it was the various winter markets held in Atlanta, New York and Chicago. I have not missed a market in over forty years. An example of my passion for this industry and the markets is that I never felt upset when a market or SURFACES conflicted with the Super Bowl. For me it was the opposite, I didn't want the Super Bowl to interfere with market.
Years ago, instead of the huge menu of learned experts SURFACES currently sponsors, only three or four of us were invited to speak. As the years went by, these educational sessions became more and more sophisticated. Today, SURFACES presents experts on just about every facet of our industry.
This year is the most critical year I have ever experienced for retailers, distributors and manufacturers alike because of the chaotic economy. Every one of us everywhere has been affected in some way. People voted for hope and change and we sure got change. But, unlike every other downturn in my memory, there seems to be little hope. Never before in history has government attempted to tax us out of a recession. Making a horrendous economy worse are these proposed massive government programs destined to burden the middle class even more. If they take root, people will have far less disposable income (according to a majority of economists), which will worsen our already precarious situation.
What Can We Do?
This answer is plenty! Even though some areas are experiencing 15%, 16% and 17% unemployment, this means that well over 80% of Americans are employed. Nationwide, almost 90% of Americans are working. They have money. There is a huge memoir of pent up consumer purchasing power brought on by reluctance to spend caused by the trauma of the economy. Our job is to break the dam. SURFACES is the one venue where more knowledge has been concentrated than any other industry event. Your mission is to have the expertise to grab a bigger slice of the pie while your competition dies a slow agonizing death. This year, SURFACES is a must.
Telephone campaigns, mailers to previous customers, websites and store windows should focus on why this presents an incredible opportunity to purchase home furnishings at significant savings. Our industry is in a better position to reap rewards than most. In times of stress, people gravitate toward the security of their homes making it the one area in which they are willing to invest if properly motivated.
Professional networking groups are more active than ever since all businesses are in the same boat and are working hard on methods to improve business. The social networks like Facebook and LinkedIn are proven winners in garnering business if you understand how to use them. I'm working on it. I'll bet I've met 50% of the important people in this industry online. What a great opportunity to share information.
Whole new industry segments have been created; look at the businesses set up to stage the bank repos for resale. Every one of these repossessed homes needs flooring. The slowdown in business also presents opportunities to look with a fresh eye on how you run your business. For example, when I first sold my business, I did consulting and surveying of retail operations. One thing I discovered was that most retailers unknowingly used their retail business to support their builders. One woman who took over her Dad's store read my column on this subject, did the numbers, cut out 90% of her builders (which reduced her volume by half) and made $16,000 more than her Dad did the previous year.
This year, SURFACES will provide experts whose presentations will inspire you to look at your operation in creative and different ways and demonstrate how to change your business for the better allowing you not only to survive, but prosper. This is real hope and change. My session starts at 10:30am on Monday. Please register for the session and we can discuss some of these issues.