Customer Service Reality Check: Arthur Corbin Responds

My recent post - Customer Service Reality Check: Best Quality or Not? struck a chord with Arthur Corbin, retail and lighting wizard. Here is his response. [See Arthur's previous posts.]

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Christine,

This company has been looking at what they do to provide goods as a negative and as a nuisance instead of an essential part of the goods and services they should provide with a smile.

This is a company I would not do business with.

Today's consumer is in the driver's seat with multiple sources for similar or identical products.

The keys to happy consumers are service, responsiveness, flexibility, and a smile. Purchasing must be easy. Delivery must be convenient for the consumer. Delivery people must be clean, courteous, careful when in the customer's home or business, and engaging.

Every person working for the supplier is an ambassador for the company and must act accordingly.

I think of Ironware International owned by Karin Eaton (history and background on the site). She is remarkable, poised, and engaging.

Here is the ordering page link http://www.ironwareinternational.com/content/orderingpolicies. Neutral language in clear sections cover all contingencies.

The key is the showroom that works with the designer and creates the order. The local showroom is Sloan Miyasato. The person working with Ironware is Patrice and she is exceptional.

Ironware realized that delivery times are shrinking as the clients of designers ask for interior design work to be completed in weeks not months. Karin responded by analyzing her sales and selecting 34 items that she guarantees to ship in 2 to 4 weeks. One finish and one style of each item is available for quick ship but this is what most orders have been for. Quick ship has been a big success for Karin and is typical of the changes in what had been a slow moving supply chain with long lead times.

I now work at a major department store in the home department. Consumers are short tempered, and they want the lowest price (they are aggressive with coupons, price adjustments, and telling you what price they want to pay).

This retailer has merged online and location ordering systems into one system. This system can be used to locate an item and can then ship the item (free shipping if order is $50.00 or more). The on line and location pricing does not always match and the store internet system is often not working. I often use customer's smart phones to check the web site to confirm a lower price.

Example: a $150- item was on clearance at $16.00 from the warehouse plus $6.00 shipping. The customer objected to the $6.00 shipping charge and to my failure to apply a posted 10% additional discount (that was the next screen in the ordering process). I politely reminded her that she was buying a $150.00 item for less than $20.00 and she backed off. This happens thousands of times daily in 800 stores and this is one retailer.

Some of this customer aggressiveness can be attributed to this retailer's bewildering number of coupons and offers, rebates, and cash back programs. Consumers are annoyed at the retailer and thus at me for items that do not qualify for a discount, at coupons that have expired, and at coupons with lots of small type (all of them). Yet, coupons, rebates, and special offers pack the stores with buyers.

Service with a positive attitude, easy and free delivery, short or no delivery lead time, and a competitive price are what consumers are looking for. Multiple ordering channels are a must. 24 hour ordering is a must.

• Services are disappearing. Gift wrap is gone. Local stock of high end goods (fine china as an example) is mostly gone.
• Trained sales people with product knowledge is the exception and low pay is one of many reasons.
• Many consumer goods are the same or similar from retail store to retail store. Excitement and enchantment is mostly gone from retail.

That's the report and response from California.

Best wishes,
Arthur

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In a followup message, Arthur refers us to Now what? UPS threatens to return my shipment, won’t let me correct address - a preposterous, real life story affecting a customer's service experience.


Thank you, Arthur.


What's your reaction to Customer Service Reality Check? How do you balance supplier and customer pressures in today's marketplace? What are you doing differently to deliver memorable customer service and customer experiences?

Let me know in the comments.

Retail Cross-Selling Examples

Arthur Corbin, retail and lighting wizard, shared the following comments during an online chat in response to my post about Stores Within Stores Give Me Something To Talk About.


Christine: Hi, Arthur!

6:04 AM Macy's had the store-within-the-store concept in the late 1970s and 1980s. A budget was available for store concepts that associates proposed. Floor space and stock was provided and if the concept was successful, more space and more resources were made available. The Cellar, a nationwide Macy's department, was one of the results of this creative period in Macy's evolution.

6:06 AM The classic store-within-the-store is the shoe department. This department was contracted out by the major department stores beginning in the early 1900's. Another is cosmetics.

Cosmetics can generate 50% of a store's profit so cosmetics is usually on the ground floor. Most of the expenses and stock of cosmetics departments are paid for by the manufacturers and department stores have little or no dollars in these departments.

[E.g., JC Penney and Sephora from Sephora's Beauty & the Blog]

6:08 AM Flooring companies need to think of their home owner customer that is remodeling and what other goods that customer might be looking for. Consider Miele appliances, Whirlpool laundry equipment, furniture, electronics, and soft goods as some possibilities. You can meet the sales managers of these companies at trade shows. Prepare a company vitae to show the sales managers what strengths your company has in your market, include customer testimonials. Remember, major companies are actively looking for ways to reach homeowners who are remodeling Trusted retailers can leverage their customer relationships, these relationships have value that extends over decades.

6:10 AM Visit ABC home in New York or a local artists co-operative or a farmers market for more examples of cross-selling opportunities. What regional goods need more exposure? What regional foods would bring people in to a special event?

[See Staycations and Groceraunts: Innovation in the Marketplace]

6:11 AM Use your parking lot, set up a tent, and have a meet the neighbors event. include a few non-profits. Store owners will find their brand can be extended to new categories of goods.

Ask an interior designer to give a 45 minute talk about home trends, serve great food and drink, and prepare a world class handout. Include your company history (see www.blancboutique.com and www.abchome.com for examples), the services and products you offer (the magic words are,"our companies history, experience, and selection save you time & money."), and customer testimonials. Add an offer, "buy the flooring, get a thank you gift." Emphasize that you are a locally based, family owned business.

Remember to market to different ethnic groups, be sure your sales people speak other languages, particularly Spanish. Many ethnic groups are looking to buy the best available quality and family members will pool their monies to enable one family member to make the better purchase.

[See Rethinking the Mall & Uncovering Retail Creativity]

6:13 AM Finally, use the Internet. Partner with an Internet site and have goods delivered to your store for pick up. Set up a comfortable internet order kiosk in a quiet part of your store to give your customers another reason to visit between remodels.

6:15 AM Retail is a verb. Getting by and doing what has always worked is not going to create sales in the next decade. We are all going to be working harder and putting in longer hours for the next few years as our financial system redefines itself. Ask your manufacturer's for help, ideas, and co-op dollars, they have lots of experience and resources.

Retail customers are looking for unique and enjoyable retail experiences, look at the success of Anthropologie. Our customers have become more selective about what stores they will visit and more selective about what stores will get their hard earned dollars.

6:16 AM Christine: You are so right! I love your examples - ABC is fascinating to experience.Thank you, Arthur. Best, CB

6:17 AM me: Keep up the writing about change and retail excitement. Most flooring stores are tepid at best.

These messages were sent while you were offline.

6:28 AM Christine: Arthur, I really appreciate your feedback.

6:30 AM Meant to add - you reminded me of the magical Bloomingdales' yearly Fall events where different countries were celebrated thruout the store in NYC for a month? or so. Talk about creating a reason for people to go back to the stores to experience a one of a kind event that was entertainment, education and inspiration.

[Read about Bloomingdale's history and the famous international fairs.]

Via email:
Macy's San Francisco does the Easter Flower Show that is also magical. Some of the begonias have been in each show for over 30 years. Macy's also does the Fashion show in SF and NY that benefits AIDS non-profits. The fashion shows are contracted out and usually sell out 2 shows.

GM had a series of vehicles called the Futureliners that toured the US in the 1930s and 1940s and showcased technology, science, and GM as an innovator. Something like that is needed for consumer goods to build excitement and to create demand.

Best wishes, Arthur

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Thank you, Arthur, for sharing these wonderful examples of retail cross-selling ideas.

What other examples have you come across that effectively cross-sell and draw customers into stores?

Refresh The Store Experience With Light

In response to my post Refresh Your Store Experience For The New Year, Arthur Corbin, retail and lighting wizard and author of Arthur Corbin's Retail Wisdom, contributes the following about light and retail to further refresh the store experience...

Retail & Lighting

The 1/3 of sales in the front of the store is misleading and likely the result of inadequate thought and investment in lighting technology.

Customers walk towards the brightest light in the store (within reason). Light can be used to reinforce circulation patterns and can be used to highlight merchandise (the brightest area should be where the merchandise is).

1) This iStock of Chicago Girl - Shopping on Michigan Avenue sums up what the exterior of the store must do within 30 seconds: capture the attention of passerby and get them to look inside and then walk into your store. Stores are competing with daylight so a compelling window display and a bright back wall is essential to catch the consumer's eye. Try this test, look in your window from the sidewalk, does anything stand out? look interesting? make you curious?

2) Getting customers into your store is a physical transition from daylight to artificial light in most stores. A space for customers to "land" and adjust their vision and pace is common practice. The size of this transition zone varies considerable from store to store depending on a myriad of factors.

3) Walkways, non-merchandise areas, and service areas need much less light than walls and merchandise. If customers can easily see what you have to sell, they are more likely to buy.

Editing of merchandise is one of the most important services that a retailer provides for customers, making sure the display is compelling is the "icing on the cake."

4) Baby boomers are retiring in record numbers and with record amounts of money. Baby boomers will be buying less than they have in the past BUT they will be buying better quality, high function and usability, items that make life more enjoyable, and items that help compensate for reduced sensory function.

Flooring, as an example, will need to be relatively "hard" (no pile, tight weave, easy to see, and easy to maintain for carpet) for feet that shuffle or for walkers that assist mobility. Wood, linoleum, vinyl, ceramic, and synthetic flooring will be preferred for durability, ease of maintenance, and safety.

5) Each generation has unique expectations and needs and retailers must be more attentive to the stated and unstated needs of each generation. Social media, on-line sales, links to supplier sites, and easy price comparisons are part of the retail experience; ignore these and risk sales.

6) Retail is a verb that implies thought, and action to create a compelling and pleasant retail experience. Why would anyone visit your store? What value do you have that another retailer does not? What 20% of merchandise is responsible for 80% of your sales and profit? Do you meet your customers' needs? What can you do better and smarter to insure the future of your business?

Thank you for your continued discussion on the business of retail and flooring, Arthur.

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Thank you, Arthur!

I'd love to hear what your experiences have been using light to draw customers into your retail store.

Arthur Corbin's Retail Wisdom

The following post comes from Arthur Corbin, talented retail & lighting wizard and faithful subscriber. He wrote it in response to Behind The Retail Scenes & Anticipating The Holidays and graciously agreed to share it here. In this article, Arthur addresses inventory, story telling, value at retail, social media, the retail experience, lighting, online and why local retailers will thrive. In other words: retail wisdom!

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Retailers (ideally) complete their Christmas planning and buying by late June. Many finalize their Christmas plans in January. Retailers use art and science to plan this far ahead in an uncertain market. Retailers are hedging their bets by ordering less and buying items that suppliers expect to have in stock through mid-November. Retailers may reorder several times as they see what is selling. Great retailers are good with numbers and sell-through is a key indicator of how well holiday buying meets customer expectations and desires.

The growing difficulty with inventory is the preponderance of last minute gift buying. This last minute purchasing increases every year. One reason for this is consumers now wait for retailers to announce sales sometime in December. This reliance on sales threatens the profitability and health of retailers. Many independent retailers depend on holiday sales for 50% (or more) of their yearly profits and cannot stay in business with reduced margins, particularly if operating costs increase during the holiday season (more labor costs in order to open for longer hours, more utility costs, more promotional costs, and more wear and tear on stores).

It is better to have a well thought out gift with purchase to reward and thank customers than to rely on discounting; there is no limit once prices are lowered.

Retailers talk about creating stories and realizing those stories in displays either on-line or in store. Example, The Night Before Christmas might feature a fireplace, a tree, ornaments, decor, music, and food. There are at least 30 items that can be sold in this aggregation of goods, chocolate drink mix, cookies, hard candies (peppermint is identified with holiday), chocolates (many types including assortments), fruit cake, gingerbread, egg nog, and custom baking are some of the food choices available.

The essential retail skill is in deciding what to buy, what quantities to buy and how to merchandise and sell what you have bought.

Highlighting value greatly simplifies the complexity of how a consumer makes a buying decision. Buying is highly emotional with all sorts of triggers, nostalgia (cards, and images of holidays past), scent (candles, and food), touch (blankets and nightgowns), vision (a predominance of green and red signals Christmas), and sound (those annoying holiday songs do get you to buy).

Value is market specific and beyond price, a fur coat has value during a Wyoming Winter but no value in Hawaii.

Retailers that focus only on price will fail. There needs to be something additional to create interest and, hopefully, some excitement.

Social media is a fancy title for knowing your customers and developing a relationship with them. Successful stores develop a look and feel that connects with their customers. This requires many elements working together to create a unique and compelling ambiance, Anthropologie is a great example of this nationally, The Gardener in Berkeley, California is a great example locally. Great stores reflect and reinforce customers' own aspirations and success stories. Great stores often have a unique and skilled entrepreneur creating the story and the execution; Alta Tingle at The Gardener is one such person. A visit to these stores will tell you more about ambiance and telling a story than any amount of writing can.

Retail is a verb and not for the faint of heart. 80% or more of retail purchases are made by women. Women have high expectations for the stores they choose to spend time and money in. Stores must have a clear identity and a consistent assortment of goods. Stores must be clean and easy to navigate. Stores must have clean bathrooms and comfortable dressing rooms. Stores must be safe and inviting. Stores must be welcoming and fun. Stores must provide an affirming environment and a heightened reality. Do all this and you have a success.

Lighting is a key tool that is greatly under utilized by retailers. Sales can be increased or decreased by the lighting of the store and the exterior of the building. Lighting invites people in when they look in your windows. Lighting directs people where to look and walk by the use of contrast and pools of light. Lighting creates comfort and safety.

Dressing room lighting is the bane of women shoppers and a few retailers have begun to take notice and have begun to upgrade their dressing rooms, but are those same retailers maintaining the cleanliness and lighting in these new dressing rooms?

There are exciting new choices available for lighting that lower energy use (up to 70%), and extend lamp life (reducing maintenance cost and time) while providing greater control over the look and feel of a store.

[Note: Arthur contributed lighting wisdom to Green Profit - Smarter Selling: Time To See The (Retail) Light by Meghan Boyer.]

Products and stores often have connections. REI connects with the outdoors. Marshall Field’s (now Macy's) connects with Frango Mints, and The Gardener connects with an assortment of carefully selected goods for the home that are timeless, pleasurable, and a joy to see and touch.

On-line is an extension of the store or a unique experience without a store. Amazon, and Zappos upended the wisdom that you must have a retail store to support on-line sales. Amazon has managed to put bookstores on the endangered list and has made the surviving bookstores much more nimble and more in tune with their customers. I see more retail products being sold online and more independent retailers closing. Retailers without a compelling identity and experience cannot expect to survive.

The personal touch and local connections are the reasons local, independent retailers will continue to thrive. Customers respond to personal warmth and concern. We all have favorite sales professionals that we depend on to make shopping easier and more enjoyable. Retailers that invest in the training and reward of exceptional sales professionals understand how important this person is to their continued success.

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Photo courtesy of Arthur Corbin.

Arthur Corbin is a retail and lighting wizard working in the San Francisco Bay Area. Arthur also teaches classes on retail success, lighting, materials, and customer service. You can reach him at arthurcorbin@gmail.com. Arthur wishes everyone a successful holiday season.

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Thank you, Arthur!

Comments, questions, observations? What wisdom would you like to share?


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