by Shasta McLaughlin
The Extravaganza Craft Productions

Parts of this 7 part series have been reprinted with permission from the article “7 Common Disconnects In Retail Business” by Pam Grimm of Ideaco.  Click here to see Pam’s full article.

7 Common Disconnects In Retail Business

By Pamela Grimm, Ideaco

7.  No asking for the business: Not once did anyone say… “We want to be the store you come to for your crafting needs….we want your business!” There was no attitude of we want to impress you and guarantee your return to keep you as a customer. No one asked “Have we met your needs today?” They would say… “Did you get everything you needed?” instead of asking if there was more that they could do to meet my needs today! I was surprised at just how little interest there was in gaining my business.

How to Ask for Business

Remember that the value of every customer is equal to the total of their purchases over the length of time they will be your customer.  When you remember the potential value of every customer over a life time of purchases it’s easier to offer exceptional customer service.  Customers are looking for exceptional customer service something that sets your business apart from everyone else.

Remember make a positive impression, show your interest in your customers, share your product knowledge, and find the customers needs.  Present the customer with the benefits of the product as they apply to them, offer the options they need like customization, ability to pay by check, money order or credit card, free gift wrapping and shipping to any address.

Ask the customer if you have met their needs and listen quietly to what they say.  Take notes if necessary and carefully consider if you can provide their needs. Is the value of that customer worth the time and money that you will spend to meet their needs?

Meet the needs of your customers with a wow and they will keep coming back for more!

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by Shasta McLaughlin
The Extravaganza Craft Productions

Parts of this 7 part series have been reprinted with permission from the article “7 Common Disconnects In Retail Business” by Pam Grimm of Ideaco.  Click here to see Pam’s full article.

7 Common Disconnects In Retail Business

By Pamela Grimm, Ideaco

6.  Lack of service options: In many stores, customer service failed miserably. Most think that service equals sales explanation, however it doesn’t; it equals a sales pitch. When we did gather and pile up products that we might want to purchase no one offered to take our pile up to the counter, or get us a basket or cart. We were not offered to have a product explained to us to ensure that we knew how to work the new “gadget” we had just bought. When a product was out of stock, rarely was there an option to have it ordered in and we would be called when it arrived. Overall, there were no WOW factors being provided in the customer service end of retail.

Improve Customer Service

As mentioned earlier in the series customers want to know how a product or service improves their lives.  Explain to the customer how the product or service will benefit them.  When the customer has narrowed down their choices, offer to carry their purchases to the counter.

If your craft needs explaning take the time to show the customer how to install and use it.

Offer to create a customized product for your customers if you don’t have the perfect one for them.  Offer to ship it to them.

The more ways that your service stands out from the competition the more likely that customers will purchase from you instead of them.  Think what service options you would like if you were a customer and provide as many as you can.  Every time you offer a new option-whether it’s another way to make payments, gift wrapping, customization, or shipping to the customer-you set yourself apart from the competition.

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by Shasta McLaughlin
The Extravaganza Craft Productions

Parts of this 7 part series have been reprinted with permission from the article “7 Common Disconnects In Retail Business” by Pam Grimm of Ideaco.  Click here to see Pam’s full article.

7 Common Disconnects In Retail Business

By Pamela Grimm, Ideaco

5.  Lack of sales skills: Too often a salesperson could give information, but not transition the conversation into a sale. More than not, staff members would walk away with apparently no regard for whether the customer had actually picked up the product or were going to purchase anything. We were given a very informal information session that did not inspire or motivate us to purchase that product. 90% of the stores did not even show us a sample or give a mini demo on how the product could be used or create an urgency to purchase. In many stores we walked in, asked questions, got brief answers and walked out without purchasing anything.

How to Transition to a Sale

Be sure to answer customers questions with the benefits of the product to them not the features.  Remember they want to know how the product will solve a problem for them, save them time or money, or make their life easier.  People make emotional purchases, help them feel this product will help them in some way.

Show your art or craft in the setting it will be used.  It requires less imagination for your customers to see it in use in that setting.  Demonstrate the benefits of the product to the customer.

Artists and crafters are often afraid of being too pushy and possibly driving customers away.  Fear makes us too reserved and passive.  Be assertive not agressive.  Remember when customers enter your booth they are interested in buying your product.  Asking them to make the purchase isn’t being pushy as long as you take, “No” as well as you take, “Yes.”  Remember the worst thing they can say is, “No.”  Be as grateful for the customer who doesn’t purchase as you are for the one who buys.  Not every customer is going to make a purchase, so don’t take it personally.  Remember that every NO leads you one encounter closer to the big sale.

When the customer seems to be standing there looking like they’re lost, ask if you have answered all of they’re questions.  If you’ve answered all their questions they may need some prompting.  Ask if you can ring up their purchases for them?  Ask them if you can bag them up for them?  Ask if you can take the crafts to the counter for them?

By asking the customer if they would like to purchase you’re giving them one more opportunity to think about the product without allowing them to talk themselves out of the purchase.

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by Shasta McLaughlin
The Extravaganza Craft Productions

Parts of this 7 part series have been reprinted with permission from the article “7 Common Disconnects In Retail Business” by Pam Grimm of Ideaco.  Click here to see Pam’s full article.

7 Common Disconnects In Retail Business

By Pamela Grimm, Ideaco

4.  Assuming not Assessing: When a staff person could speak about products, she often told everything she knew about it before asking any questions. Most of the time the information was not even relevant to the question or need. We found most staff members don’t bother to probe for information to meet a customer’s need; they download all they know in hopes they have covered it.

How to Assess A Customers Needs

They say to assume makes an @$$ out of you and me.  To assess what a customer needs you need to ask questions and hear the answers.  Don’t get ahead of yourself and spill everything that you know about the product instead simply answer the question.  When you’ve answered the question if they don’t say anything  wait a few seconds and ask another question, it could be that they are considering one product over another or how much money they have to spend or it could be that they are waiting for you to ask for the sale.

Questions that might help you know what they would like are:

1. Are you buying for someone special today?  This tells you if they are looking for childrens items, items for teens, adult items or items for the elderly.
2. Are you buying for a special occasion:?  People need different kinds of things for birthdays, anniversaries, holidays, and everyday.
3. Are you looking for a particular style?  Depending on your craft your merchandise will have some varying styles some things might be more modern or contemporary, others might be more country, some things will be Victorian or classic.  Things like jewelry will vary from an abstract random pattern to a symmetrical pattern that repeats itself.  Some of your items may have an Americana flair while others might have an ethnic flair from other regions.  Some items will be more natural while others may be more synthetic, some may be recycled.
4. If they are buying for themselves you can ask if they are buying to match a particular outfit?  What color is it?
5. What are their favorite colors?
6. When the choices have been narrowed you might ask if you have answered all their questions.

Your job at this stage is to discover their questions and answer them while narrowing the choices.  It’s a fine art but you’re a creative person you can do it!

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by Shasta McLaughlin
The Extravaganza Craft Productions

Parts of this 7 part series have been reprinted with permission from the article “7 Common Disconnects In Retail Business” by Pam Grimm of Ideaco.  Click here to see Pam’s original article.

7 Common Disconnects In Retail Business

By Pamela Grimm, Ideaco

Many of you have contacted me wondering where I have been; as you may have noticed, I haven’t had an article in this magazine for several issues. Well, here’s your answer. For the past several months we have been working with a major financial institution analyzing why their stock value has decreased and where they are going “wrong” in their front line business. We identified some major issues that have simple solutions; these changes will ultimately have a huge impact on their business practices and their front line behavior, but will require a paradigm shift in their thinking.

Our results were not a surprise, however the reaction from the company was interesting. They basically indicated that they had moved from being unconsciously horrible at the business to being consciously horrible at the business. They couldn’t see what they were doing wrong even though it was right in front of them. Sometimes it requires an “outsider” to come in and take a good look around. Our end results brought us to 7 key disconnects in their business practices that needed to be addressed. These problems have been seen both in mainstream retail and independent stores, so we decided to do an “unofficial” business audit and note similar business practices. Here are the 7 common disconnects found on the retail level within the craft industry:

1. First Impression Failure: When a customer comes into a store, she is either there for the first time, is a repeat customer or she has come in with a problem. Regardless of the reason, every time a customer comes in, she gets a certain impression of the store. We found, in the majority of the stores, that the first impression failed miserably. Often staff members were too busy to say hello and didn’t know how to approach a customer to see if she needed assistance. Many times, the staff wouldn’t even talk to a customer and she could walk out as quietly as she came in. Sometimes the atmosphere of the store was uncomfortable, like a fight had just happened between the staff and the management, and everyone was in a terrible mood. It showed on faces and in the manner they moved products around, or just in the way they spoke to each other.

First impression from a physical standpoint failed horribly in the independent store sector as products were disorganized and crammed in anywhere…or there was a great lack of products. Samples seemed old and tired, and handmade signage promoted classes that had already been taught weeks prior. Many stores had no personality or flavor, leaving the feeling that you had walked into an overpriced dollar store.

How to Improve the Customers First Impression of Your Booth

We need to recognize that their mistake is our opportunity.  When retailers fail to make the sale they leave the door open for anyone with a similar product to make the sale.  What is the first impression that you are creating?

Always greet every person who is passing your booth.  Your greeting may be the only reason they look your way.  Ask them if you can help them find something.  Point them in the direction of whatever it is they are looking for even if it’s somebody’s booth.

No matter how slow the sales are that day remain positive and don’t discuss the slow show with other vendors or customers.  Remember there are opportunities everywhere so be prepared to take them with a smile and positive attitude.

Set-up your booth at home and take a good look at it?  Consider the first impression that you’re creating.  Is your booth professional, clean, organized, warm, inviting, interesting and attractive?  Is it cluttered or empty, disorganized, confusing, and unprofessional?  Ask the show promoter for an additional space (or half space) if you need more room to keep your booth looking it’s best.  A larger booth makes it easier for customers to enter and leave making it feel less claustrophobic as long as there is enough product displayed to fill the space.  Display more arts or see about sharing booths, if your booth looks empty.  Set-up products between your knees and eye level for the best visibility.  Don’t lay things flat on the table, use packing boxes under table cloths to add some height.  Arrange items that have something in common together and then display attractively.  For instance all the T-shirts should be together, then all the large T-shirts might be together on the rack, then medium, small, and extra small.

Are the colors of your booth showing off your crafts well or are they distracting from and competing with them?  Make corrections now to improve sales.

Set-up early at a show and use the extra time before the show to get the opinions of other artists and crafters.  Ask them to tell you as much about their first impression of your booth as they can.  Record what they say in a notebook for reference after the show.  Carefully consider their opinions and you will know which ones make sense for your business.  Take a good look at the booths around you and record the things they are doing right and the things they aren’t in your notes for later.

Next do an informal survey of your customers.  During your conversation with them at the show tell them that you are working to improve your customer service and ask if they would be willing to spend a few minutes telling you what they thought about your booth.  Always take notes.

If show promoters won’t allow surveys or drawings in your booth print some simple business cards that have a link to your online survey.  As customers make a purchase include the card with their purchase .  Tell them it’s there and that they will be entered to win a prize or will receive a small gift for answering the survey.  Ask about things like first impressions, colors, displays, greeting they received, how prompt service was, price of product compared to value, etc.  Make the survey as simple as possible while collecting the information that you need.  Don’t forget that the survey will be skewed if you only ask people who purchased so ask people who check out your booth and a few passers by to take an extra look at the booth and do the survey as well.

Make signs on the computer for a more professional appearance.  Check them for wear and tear.  Update them occasionally be sure to make them timeless, simple and as clear as possible.

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by Shasta McLaughlin
The Extravaganza Craft Productions

Parts of this 7 part series have been reprinted with permission from the article “7 Common Disconnects In Retail Business” by Pam Grimm of Ideaco.  Click here to see Pam’s full article.

7 Common Disconnects In Retail Business

By Pamela Grimm, Ideaco

2.  Lack of interest in customers:

It surprised me how often I could walk into and out of a store without having a single conversation with anyone. No one seemed interested that I was even there. When we did come in contact with staff, they really didn’t know how to conduct small talk to establish some kind of personal relationship connection. It was all business. Why is this important? Because the personal connection made with the store is the core of a positive experience…making a connection that makes you want to come back to that store, think of that store, and become an advocate for that store. Another “dropped ball” was in the lack of gathering contact information. In over 95% of the stores, we walked out with no way for the store to ever follow up, market to us, or make another connection with us.

How to Overcome a Lack of Interest in Customers

As I mentioned in part 1 everytime a retailer misses a sale they leave an opportunity for you to make the sale, if you have a product of similar quality and value.  I feel like it is obvious that if a customer walks into your booth and leaves without even a greeting that you have missed an opportunity, but since it happens so often in every industry it bears repeating.  If a customer walks into your booth and walks away without having a conversation with you, you have missed an opportunity for a sale.

I admit it is hard to find the motivation to happily greet every customer when a show has few customers and sales are slow.  Remember it is more expensive to find new customers than it is to sell to those who have already purchased from you.  It’s not the purchase one customer is making that will make your business profitable it is the many purchases they will make in the future that will. Retailers who fail to greet their customers aren’t seeing the full potential of each customer. Every customer has the possibility of one sale or one thousand sales depending on what you do to earn their business.  If you follow up with correct marketing principles with the customers who have purchased from you approximately 20% of them will make 80% of the future purchases from your business.  By treating each customer like your best customer you won’t miss your next golden opportunity.

A customer walked into your booth, saw something there that interested them, your job is to establish a relationship of trust with the customer.  Find out what is was that brought them into your booth, and ask for the sale.  How do you establish trust with someone?  What makes you trust someone?  Establish trust by getting to know them, find out what it is that they want and give it to them. You can’t establish trust if you haven’t spoken to them.  Start off with a simple, “Hello.”  Don’t ask, “How are you today?” unless you truly want to know, customers know when you care and when you’re just asking to start a conversation.  If you ask, “How are you today?” you must truly care how they are today. Ask where someone is from, or what brought them to the show today, ask what they are looking for, or if you can help them find something.  Ask if there is someone they are shopping for or if they are shopping for a special occasion. Ask if they are looking for a particular style or if they are looking for something in a certain price range.  Listen carefully to their answers without trying to figure out what you are going to say next.  When they are finished speaking then take a moment to consider what to show them.  When you have narrowed the choices to a few of their favorites ask for the sale by saying, “May I wrap those up for you?” or “May I take those to the counter for you?”  If they’re having a hard time deciding, offer to give a small discount (10% off) the lower priced item if they buy them both.

When ringing up the a customers purchase always offer an upsell.  An upsell is an additional complimentary product for example McDonalds offers a larger fry and drink with every hamburger (or hamburger meal) purchased.  Done correctly chances are some customers will make the extra purchase, but no one will if you don’t offer.  Don’t forget to collect the customers contact information during this step.  They have purchased from you showing a need or want for your products so you should follow up with them to find out if they have additional needs,  You can’t follow up if you have no way of contacting them again.  You can collect their personal information by using duplicate receipts and including their name, mailing address, phone and email on every receipt you make out.  Be sure to ask if you may include them on your mailing list and mark that on the receipt. Only mail to those that gave permission to be included.

Treat every customer like a golden opportunity.  Follow up with them multiple times and soon you will be able to sort out the customers who will make many multiple purchases in the future and focus the largest part of your marketing budget on them and your profits will definitely grow.

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by Shasta McLaughlin
The Extravaganza Craft Productions

Parts of this 7 part series have been reprinted with permission from the article “7 Common Disconnects In Retail Business” by Pam Grimm of Ideaco.  Click here to see Pam’s full article.

7 Common Disconnects In Retail Business

By Pamela Grimm, Ideaco

3.   Lack of product knowledge: With so many products coming and going it is understandable that you can’t know everything about everything. However, many stores could not even explain the basic details of what are considered staple products of the craft. These are the products that don’t change out often…they are essential to doing the craft. Most often, we were shown the area in which to find the product we were looking for, then left to fend for ourselves.

Share Your Product Knowledge

You obviously know all about the products that you create.  The question is do you appropriately convey that knowledge to the customer.  Do you know the difference between the benefits and the features of the arts and crafts you create?  The features are what the product does, the benefits are what the product does for the customer.  If you were considering buying something what would you want to know first, the benefits of course.  Customers want to know how this product will save them time, save them money, make their lives easier, or solve a problem for them.  What are the benefits of your art or craft? Tell your customers first the benefits and then the features.

The benefits of a towel rack are

• Keeps your bathroom organized saving you time because you no longer have to pick up smelly wet towels.
• Dries your towel saving you money because now you don’t have to wash your towel every time you use it.
• Towel warmer which makes stepping out of the bath a luxurious experience.
• Quick warming and energy efficient saves you money.
• Never gets too hot so it won’t burn your child or your towels.

The features of a towel rack are

• Silver color so it matches any decor’-which might double as a benefit.
• Three towel bars so you can hang a towel for each person in the family.
• Towel warmer.

You can improve on the retailers mistake here by realizing it won’t work to sit in your booth waiting for your craft projects to sell themselves.  Show off the benefits of your product by demonstrating it.  Show people how your towel rack matches the toilet paper holder and the hand towel rack.  Plug in the towel warmer and hang towels on it so customers can feel how nice a warm towel is.  Help them imagine using your product in their own home and you’re on your way to a sale.

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