I love conversations with Leslie Ungar. You know her. I talk about her often. That’s because she always has some interesting little tidbit to share that speaks volumes. Today it was the retelling of something Bruce Nordstrom (Grandson of Nordstrom’s founder) had to say when visiting Northeast Ohio a while back.
Someone asked him if people took advantage of Nordstrom’s famous return policy. You’ll all heard the story about the customer who returned a tire to Nordstroms and they didn’t even sell tires. But the associate smiled and happily gave the customer a refund.
Well, first off, my Dad - another person who always had great stories to tell, said that there was a Nordstroms location that did in fact sell tires, but the point of the story is that Nordstroms takes their customer at face value and does whatever it takes to make them happy. (p.s. the tire return took place in an acquired store that had sold tires before being owned by Nordstroms)
So how did the founder’s grandson reply? “Yes. There are some people that take advantage.”
He went on to say that only about ten percent of their customers took advantage of Nordstroms policy to make customers happy. “You don’t make policy based on ten percent,” he was quoted as saying. “You make policies based on the 90%.”
I’ve often heard of the 80/20 rule. You know – the rule that says 20% of your customers bring in 80% of your revenue. That 20% of your employees generate 80% of the work. That 20% of the whiners take up 80% of your time.
But here, the rule is even stiffer. Make policies based on 90% of your customer’s needs. Nordstroms has been in business over 100 years and their customer philosophy has remained the same – regardless of the change in economics:
The company’s philosophy has remained unchanged for more than 100 years since its establishment by John W. Nordstrom in 1901: offer the customer the best possible service, selection, quality and value.
What else has remained the same for over 100 years?
Okay – let’s get back to your company policies. Do you make your policies based on the few that try to take advantage or the many that build your business? I can remember in school there would be obscure rules and the teacher would say “It is because of the actions of a few that we’ve had to change the rules.” Didn’t you want to punch “the few” in the nose for making it more difficult or less enjoyable for you?
Our customers feel the same way. Imagine a world where companies created a culture around the many. So look at your customer service policies. Are they based on the few that try to ruin it for the rest of us? Or have you positioned yourself like Nordstroms and created policies around the 90% of your customers who just want a good quality product/service at an affordable price?
For several years Chris Brogan has started each year with a focus on three words. Last year I selected three words, which were Bite, Charge and Follow-Up.
This year Chris has selected Eco-systems, Owners and Kings to focus on for 2010. Using the three word system forces you to narrow your resolutions or goals for the year down to one word a piece -something you can remember, like a mantra. If you can remember it, you will do it. Each day as you set your agenda you can balance the list of tasks, networking events and busy work against your three words to see if you are remaining focused.
I am still working on my three words for 2010 but my first word is NARROW. Just like the Italian alleyway pictured above, I need to ensure that my focus is narrow, razor sharp, niched to a specific client/a specific service.
What will your three words be? How will you manage the resolutions you’ve established for this new year? If customer communication or social media is on your list, I hope you’ll give me a call. I can help. 330-414-8792.
So will you get up at the crack of dawn to stand in line for amazing savings on the first official day of Holiday shopping, or will you get up to wait on those in line? Arguably the busiest shopping day of the year, customers and sales associates are so busy completing the sale, they rarely have time to look up and make eye contact let alone build relationships. But that’s not to say it’s impossible. Here are a few tips to help you be remembered this Black Friday:
Paste that smile on and keep it on all day – if you smile, people will be more likely to smile back and that simple gesture may help calm down an over-tired, stressed out shopper.
Make eye contact. It really doesn’t take that much time or effort to lift your head from the cash register or scanner to make eye contact with the customer. It will go a long way toward making the customer feel more than just one more sale on a very busy day.
Say thank you. We should never be too busy to remember this simple and yet valuable phrase. Remember – without that customer and their sale, you just might not have a job. It is the old adage – the customer signs our paycheck. Too true.
You may not have the time or energy for more – but just making eye contact, smiling and saying thank you will probably be more than your competitor is doing on this busy shopping day. Make the experience a positive one so that the customers return on a day when you aren’t offering 50% off everything or opening before the sun comes up.
If you have more time to prepare – consider my book It’s a Party: Planning a successful retail sales event. It may be too late for this Black Friday, but consider purchasing the e-version to help you with your Inventory Clearance sale in January.
The status quo doesn’t cut it anymore. More than ever the definition of insanity rings true: doing the same thing every day and expecting different results.
To stay a viable option in the market place we must reevaluate, reassess, and revamp our offerings to meet the changing needs of our customers.
As I reread through past issues of Entrepreneur articles I found a similar theme.
In May, 2009, Age Against the Machine, we learn that the Baby boomer has changed traditional advertiser focus from the 18-49 year old to include the over 50 set. At the end of the article, author Matt Thornhill cautions:
Ignoring (Baby Boomers) and they WILL take their money elsewhere.
Have you reassessed your target audience? Are they aging? Have their needs changed? Have you changed to meet those needs?
Not only do we need to evaluate WHO we serve and WHAT they need but also what they VALUE.
Just as the Boomer has switched from a desire to gather a collection of material things to a need for experiential options – so must our offerings to our customer. Chris offers a list of Dos and Don’ts and at the top of the Do list is:
Talk to your customer about what they need today.
Have you asked your customer how you can better serve their needs? Do you have an effective method for communication with (not at) your customer?
In July, the sales article by Neale Martin focused on change; both with customer habits and our own. He says “pay attention to customer feedback.”
If we listen. We will learn. But we have to be open to what they have to say.
One way we can listen is through Social Media. Omgili buzz page is place people share and learn information. Want advice about shopping for shoes – people share their thoughts. Listen in and see what they are saying about your industry.
Make sure you sign up for Google alerts – not just for your company name but for key industry words. Listen to what people are saying. Used LinkedIn or Facebook to ask questions that might help transform your business offerings to match the changing needs of your customer. Take advantage of Survey Monkey to ask questions of your customers.
Bottom line – we have to continually hold the mirror up to our business and see if it matches our customer’s changing needs. And then DO SOMETHING about it.
What have you changed recently in your business because your customers demanded it of you?
When we think of rising sales we think marketing, new products, higher average ticket, more profits. Increase the bottom line with more sales.
We carefully review each line on the P&L to see how we can cut costs and increase profits.
But do we remember that none of it would be possible without a little thing I like to call: THE CUSTOMER?
I was doing a little research on growth organizations today and found an interesting article that lists the seven steps to becoming a growth organization. From the first step where the company is totally focused on commodities through the final step where the organization has truly embraced all that is necessary to become a growth organization. There is a consistent message through all seven steps:
1. Commodity selling: The customer is sadly lacking
2. Demand Fulfillment Organization: Start to focus on customer needs rather than just selling
3. Solution Selling Organization: You not only focus on the customer’s needs but also identifying and solving their problems
4. Crossover Sales Organization: You develop your plans and goals around the customer’s needs.
5. Value Creative Sales Organization: You now understand your customer better than they do themselves and your customer understand your unique value in the industry.
6. Demand Creating Organization: Your organization’s value is based on the customer and that fact is known in the community – people come to you – sales close sooner because the focus is on the customer.
7. Demand Creation Monopoly: In the customer’s eyes – you are the only logical choice to care for their needs.
It’s all about the customer. Every breath taken by every associate from bottom to top is focused around what the customer thinks and needs. Now hold up a mirror. Where do you stand on the journey to becoming a growth organization?
I was just attended a fair at which a number of people sat at a series of long tables advertising workshops and classes they were going to be teaching this week. There were classes on philosophy,scrap-booking, yoga and sailing. They ran the gambit of education to entertainment; crafting to communication.
My Mom and I walked slowly past the tables reading the mini-marketing signs, listening in on conversations and viewing samples. We stopped at the table with notes cards and listened to Elaine talk animatedly about the class and the different types of stamping,embossing and glittery cards the participants would make.
Mom was engaged in a conversation, considering taking the class (she did eventually sign up and is thoroughly enjoying the class) but I noticed that next to Elaine was a sign for THE HAPPINESS CLASS. What a clever idea. In this day of job loss and stock market challenges, we could all use a little happiness.
Then I looked from the marketing sign to the teacher.
(This isn’t the teacher, but she had a similar look. This is the food critic from the Disney movie Ratatouille)
I CRACKED UP! I couldn’t help myself. Later I said to my Mom – who is going to take a Happiness Class when the teacher looks like she ate a bowl of green apples?
Then I got to thinking about our business. In the eye glass business, do your associates wear the latest eye-wear? In retail, do associates dress a cut above, sporting your best fashions? In health-care – are your associates healthy – or are they smoking out back?
As customers we make assumptions BEFORE we are even greeted by the associate and if our first impression is in conflict with the branding/marketing message you wish to convey – you will be hard pressed to win them over as a customer. Later in the afternoon, as we walked again by the tables of teachers, the Happiness teacher was the only one without a potential student asking questions. I wonder if she realized why?
That’s the biggest hurdle. Most often we don’t see the inconsistencies ourselves. It takes an unbiased eye – someone not attached to our business to see the opportunities we have for presenting a professional, consistent image.
Have you come across a similar inconsistency that kept you from becoming a customer? Oh, please share it here!
I met a friend for coffee today that I haven’t seen in a few years. He had already arrived and was reading the news on his iPhone.
“Man, can you believe all the negative news.” he said as he rose to shake my hand.
No. I told him. First the economy and now the swine flu. I told him of an article I’d written about staying positive in an economic recession. I said – I guess I sound a little like Pollyanna. Ever the optomist.
“You know, that’s never a bad thing,” he assured me.
Then I came back to the office and an inspiring missive by Erma Bombeck in my email. A wonderful positive message (see at the bottom of this post).
On e-entertainment videos is the latest from Kirstie Alley who has gained back the 75 pounds she lost with Jenny Craig and is bound and determined to loose the weight again. Faced with a huge goal (no pun intended) she is approaching it with a positive attitude!
So I just decided that today is the first day of the rest of my life and I’m going to view it through rose colored glasses! Make the most of every moment. Like Scarlett O’Hara – I’ll be stressed about the negative stuff tomorrow.
What do you say – let’s make this an I’m happy to be alive day! Imagine how our positive attitude will rub off all of those we come in contact with!
IF I HAD MY LIFE TO LIVE OVER – by Erma Bombeck
(written after she found out she was dying from cancer).
I would have gone to bed when I was sick instead of pretending the earth would go into a holding pattern if I weren’t there for the day.
I would have burned the pink candle sculpted like a rose before it melted in storage.
I would have talked less and listened more.
I would have invited friends over to dinner even if the carpet was stained, or the sofa faded.
I would have eaten the popcorn in the ‘good’ living room and worried much less about the dirt when someone wanted to light a fire in the fireplace.
I would have taken the time to listen to my grandfather ramble about his youth.
I would have shared more of the responsibility carried by my husband.
I would never have insisted the car windows be rolled up on a summer day because my hair had just been teased and sprayed.
I would have sat on the lawn with my grass stains.
I would have cried and laughed less while watching television and more while watching life.
I would never have bought anything just because it was practical, wouldn’t show soil, or was guaranteed to last a lifetime.
Instead of wishing away nine months of pregnancy, I’d have cherished every moment and realized that the wonderment growing inside me was the only chance in life to assist God in a miracle.
When my kids kissed me impetuously, I would never have said, ‘Later. Now go get washed up for dinner.’ There would have been more ‘I love you’s’ More ‘I’m sorry’s.’
But mostly, given another shot at life, I would seize every minute.look at it and really see it . live it and never give it back. STOP SWEATING THE SMALL STUFF!!!
Don’t worry about who doesn’t like you, who has more, or who’s doing what
Instead, let’s cherish the relationships we have with those who do love us.
I just wrote an article for Open Forum called Staying Positive in an Economic Depression. The news is so negative: each day you hear of someone close loosing their job or companies closing or employees being asked to take time off without pay each month so the company can stay financially afloat.
With all that negative – how do you stay positive?
Or do you?
In the article I talk about:
Finding a new approach to your sales process – selling smaller and more frequently rather than putting all your eggs in the basket of a large proposal
Using this time to learn something new -with social media being front and center in the news – are you using your down time to learn what it is and how it can help you connect with customers/employers?
Surround yourself with positive people. Every situation has a positive spin – do you hang with those that focus on the negative or those that look for the silver lining – the pot of gold at the end of the rainbow?
Back to basics – one person who commented on the article said that she views this as an opportunity to have quality family time – board games, rented videos, home cooked meals, tossing the ball in the back yard – planting a garden that will help feed you this summer (I added that little ditty)
I went to a Weight Watchers meeting today becuase I’ve been faithfully watching my weight…grow. Part of the Weight Watcher process is writing down, or tracking what you eat. The lesson today was the importance of tracking your food intake. When you write what you bite you’ll find more success at the scale.
The leader talked through all of the EXCUSES we have for not doing what we know we need to do: writing what we eat. So she passed out pens and paper and had us each write one thing that helps us be successful at writing down our food intake. She collected our answers and as we left the meeting we took one idea out of the basket. A positive tip to help us be successful.
Sharing positive ideas is a great way to spread the positive feeling. So how do you stay positive? Share you tips here so we can all benefit.
3 Comments to Read 
I love conversations with Leslie Ungar. You know her. I talk about her often. That’s because she always has some interesting little tidbit to share that speaks volumes. Today it was the retelling of something Bruce Nordstrom (Grandson of Nordstrom’s founder) had to say when visiting Northeast Ohio a while back.The company’s philosophy has remained unchanged for more than 100 years since its establishment by John W. Nordstrom in 1901: offer the customer the best possible service, selection, quality and value.
