Lisbeth Calandrino::

People seem to be out shopping and the retail news seems to be positive. Could it really be true? I decided to call , Rebecca Marion Flach, Vice President of Membership and Communication for the Retail Council of New York State.

As Vice President of Membership and Communication for the Retail Council, exactly what do you do?

I’m in charge of all internal and external communication that supports the Council’s government relations, sales and marketing and membership functions. I’m also in charge of new membership benefit programs and services for the association.

Exactly what is happening in the retail sector, is business looking up?

We had a brisk holiday season and it appears sales grew in the 2-3% range over 2010. Our members gave the season an “A-” letter grade as part of the Council’s Holiday Sales Watch. This is all good news given the state of the economy.

What does this mean for 2012? It’s tough to say although economists are pointing to slow growth next year. Unemployment is down. The stock market is rallying. Gas prices have dropped. All of these factors and many others play a role in retail sales. We’re keeping our fingers crossed for steady improvement next year. 

How do you get your information?

My colleagues and I constantly talk with members to get the pulse of retail. How is business? What trends are members seeing? What new ideas are they implementing in their stores?

The Council also surveys its members during the holiday season. We just wrapped up the 2011 Holiday Sales Watch, which consists of one mail survey and three telephone surveys we conduct between mid-September and the week after Christmas. The mail survey measures our members predictions for the upcoming holiday season, The telephone surveys begin after Black Friday Weekend to gauge what actually happened in member stores at critical points in the season.

Rebecca. I remember when I was in the retail business we always had excuses for why customers did or did not show up. It was either too cold for them to come out,  or  so nice they decided to play golf or work in the garden.

Is there such a thing as  “good” and  “marginal ones retailers?”

The Council only reports what our members tell us is happening in retail and I wouldn’t be so bold as to try to discern the difference between a good and marginal merchant. Our members are the true experts and I’m here to support them. That being said, I’ve learned over the years from members that knowing your customer and treating them like family go a long way toward success in retail.

Successful retailers constantly survey their customers to find out what products and services interest them and what they’re willing to pay for it.  I don’t mean they send mail surveys or call their customers to collect this information (although they could). It’s asking simple questions while customers are in the store or just making observations. You have to know what your customer is thinking and what is influencing their thought process.

I’ve also learned that service makes or breaks the independent merchant. Service is what distinguishes small businesses from their larger competitors and can attract or deter shoppers from coming back. As one of our Hudson Valley member always says, “Treat your customers like family.”

How is technology affecting retailers?                                                                                               

For the last two or three years we have been talking about the use of social media including Twitter, Facebook, and Google Places. Many of our members have started to build Facebook pages and are encouraging their customers to post opinions as well as talk about their products.

Those members that use social media regularly are starting to see a difference in their referrals and customers. It takes time to stay connected but this is the new platform where the consumer is communicating with businesses and other customers. In addition, customers get information about products and reviews from each other so it’s increasingly important to monitor what’s being said about your business online.

In addition to social media, mobile technology is revolutionizing retail. QR Codes are becoming very popular ways to direct customers with smart phones to more information on a product or service. Foursquare and other check-in applications give retailers some fantastic opportunities to communicate with customers. Couponing sites might make a good awareness building tool for some merchants. The options are endless, but the struggle for the small business owner is finding the time to learn about and implement these tools.

Are there other events that are influencing retail?

Small Business Saturday, sponsored by American Express the Saturday after Thanksgiving had a major impact this year. This was just the second year for this event, but some of our members reported customer interest and increased foot traffic as a result.

Our independent merchants tell us Black Friday is a Big Box Store event and I think it was ingenious to create a holiday designed to promote small business. It brought attention to the contributions made by small businesses to our communities and encouraged a “buy local and small” mentality that lasted far beyond November 26.

We had members who capitalized on the free publicity Small Business Saturday generated by offering special in-store promotions, featuring “Made in America” products or talking about their business’ role in the community (job creation, history, etc.)

Rebecca I can only think that Small Business Saturday can only get better as we have a few years under our belt. Retailers who took advantage of it these past years will probably have some great ideas how to make it have more impact on their business.

What about the Wall Street protests? Good Morning America noted that this is starting to have an effect on consumers.

The Wall Street Protests also seem to have encouraged many consumers to reexamine how they spend their money and where. The protests against “big banks” and “big corporations” has brought new energy to independent retail much like Small Business Saturday did. Some of our members told us they had the best holiday season they can remember from a resurgence of interest in supporting local businesses.

You mentioned community teamwork; how would you define this?

We are hearing from our members that consumers have reawakened to shopping locally, and we’re also learning of retailers’ willingness to work together to promote each other’s businesses in a way I haven’t noticed in the past. Business owners seem more willing to cross promote with neighboring businesses or businesses with a natural tie-in.

I’ve talked to members who are sharing brochures and coupons with neighboring businesses, hosting joint events and co-branding marketing materials. It’s a great way to spread the word about these local businesses, help them develop new customers and foster a sense of community.

It certainly is good to get some other opinions from the world of retail. I hope that this continues and we continue to see growth. Maybe Rebecca will revisit us in a few months with an update.  

10 Tips for Revving Up Your Business for the New Year

Based on my conversation with Rebecca, here are some ideas to explore for implementation in your business in 2012.

1.      First, have an open mind. Start thinking, what are others doing that are bringing in customers? Are these good ideas for my business? Should I be joining with other retailers, sharing coupons and inviting them to share in events?

2.      Think community. Who do I know that I could “pair up with” and have an event? Is it a restaurant, caterer, jewelry store or the local candy maker?  What type of event could we hold? Can we swap coupons or give out gift cards advertising each other’s stores? How will “being green” help your community and are you doing your part?

3.      Think about what’s cutting into my customer’s spending. If food purchasing is taking a bite out of their budget how about giving grocery coupons or partnering with a grocery store? I remember when we were in business; food was always a good gift during the holiday season. We used to give out coupons of different values based on how much the customer spent. Giving away turkeys was always a big hit.

4.      Know your customer as well as you know yourself. Many retailers are afraid to ask for email addresses or if the customer is on Facebook, they feel like they’re being intrusive. How will you get know them better if you don’t find a way to keep in touch?

5.      Get involved with local activities and don’t forget Small Business Saturday.  It’s not too early to start thinking about next year, how you can market to your customers and what can you do better? Talk with other business on your block or in your neighborhood, how can you all join forces?

6.      Get moving with social media. If you’re doing social media explore how you can do it better and take advantage of new programs. Don’t forget Four Square and other programs which offer free gifts to customers. I have a friend how used Groupon and had so much success they were overwhelmed. They couldn’t believe the response.

7.      Develop your “small business hat.” Continue to talk about how shopping in small locally owned businesses and how it can help your community.

8.      Review your customer list from past years. Who are your good customers, who is giving you business and how can you keep in touch?

9.      If social media isn’t “your thing,” review the pros and cons. What are your objections, is it helping other businesses, how can you get your salespeople involved in getting your customers to “brag” about you on line. Talk with successful businesses and ask about their on line customers; what are customers talking about?

10.  Look at new ways to communicate with your customers. Are you using video regularly, are you reusing your television and radio commercials by linking them to your social media sites. Don’t forget that YouTube surpassed Yahoo for the first time in total U.S. search queries, making it the 2^nd largest search engine in the U.S. next to only its owner, Google.

Have a great New Year; maybe retail is really looking up!

Lisbeth Calandrino is a retail consultant and business coach. She can be reached through her web site or at redhotcustomerservice@nycap.rr.com.

It was reported that two kittens, Snowyday and Winter somehow dented the bell on a $5000.00 bass trombone.

Trouble in river city.

How did they do it? They probably used a  a chair. The owner, Anthony Giles, a professional trombone player, felt dented, just like the bell but unexpected events often lead us to new discoveries and new ideas.

Did  Edison really sit on the light bulb to create its unique shape? The best brass repair guy was called in New York City. Everyone knows  The Brasslab, Chuck Alexander, the master of Red Hot Customer Service. The “bone” was packed up for its trip to New York City.

An immediate diagnosis indicated that the bell needed to stay for  repair. This is not good. So, the trombone player, Anthony Giles went searching through through his “spare bells” and came up with a 10 year old  bell which turned out to be a better fit for his playing. I’m told that, as a musician, you’re always looking for ways to improve; By accident he had found one.

I think the kittens are not only off the hook but may be psychic and  were trombone players in one of their other lives.

So what  does this mean to the rest of us mortals? Can we possible train our mind to move from “victim” to being “proactive?” Stephen Covey in his book, Seven Habits of Highly Successful People  talks about “mindfulness.”

Make lemonade out of lemons, the obvious.

Realize that even a seemingly a  disaster can be a new path for your life.

Be always thinking and wondering.

Life and success is all about attitude; never let circumstances dictate your feelings.

Think out of the box, why do you even need a “box to think out of ?”

Did I  say, don’t leave your trombone on the floor?

Can you give it away and make more money?

The other day I took my video camera to Best Buy. I was looking for a microphone to add to it as well as a stand. By the way, I didn’t buy it at Best Buy but you can always find an associate that will help. I usually ask, “Who’s the  best electronic person in the store?” and someone comes running. Being confident is at least 1/2 the sales game. A confident and friendly sales person is what most customers are looking for when they shop. He booted up his computer to tell me that a microphone wasn’t available for my camera , but he offered to print me out the instruction book, which was, of course, long gone. I asked about my flip camera, which I carry with me all the time just in case. We talked about it’s resolution as well as the  new wireless flips. As a side note, if you’re doing a closeup interview the flip is great; it also takes still photos which are better than your phone photos. If you’re taking serious videoing, it should be  done with a high definition Camcorder. I asked if there were classes available, so people like me can learn how to use what they buy.  He said they tried. They even offered to let the customers shop before the store opened and gave them the employee discount. The problem? No one came for the classes.   I see different types of training in various Best Buy stores  but nothing live in  Crossgate Mall, in Guilderland, New York. Maybe they didn’t try it long enough or put out enough publicity?

The other night I awakened at 4am and turned on the television. I started watching the Home Channel Shopping and there was the best pitch man selling my flip camera. I got up, grabbed my camera and watched while they walked me through every phase of the camera; it was so close up I thought I was on the show. They also shot a video, played the sound and showed the final  so I could see how it sounded and looked. I actually bought my nine inch Dell mini computer during one 3AM show!  I love it and by the time I received it I knew about it’s idiosyncrasies.

When you call the Home Shopping Network they make you feel like family; they encourage calls and ask if you’re a “regular”. Now you know you’re family.

What does this mean for your business? Is there a market for the “do-it-your-selfer?” Can you show the customer how to do simple installations of your products?

If you’re selling kitchen appliances, can you hold a cooking demonstration show to sell your wares?

How about a design clinic for your floors, walls and window treatments?

Are you a mechanic? How about a clinic on “car noises”, what to look out for like the Click and Clack the Tappet Brothers?

If you’re in the floral business, how about teaching the customer to design a simple holiday wreath?

There’s an interesting concept called “Freemium”. The Freemium model works off the premise that you give a way big stuff.  To some extent, The Freemium business model goes against what many of us have been taught. We’ve been taught to give away “little stuff” in hopes that the customer will come back for the “big stuff.” (Skype) is the best example of this business model, connecting millions of us with online video telephone connections  around the world. The site also offers a “premium service” at a fairly low rate. This is truly a great service. How many people use Skype? According to WikiAnswers , there are approximately 480 million people using Skype and 42 million making daily phone calls! Skye sells video cameras, phones, computer-to-land minutes and tons of other stuff. They make a ton of profit just from offering part of their basic service for free!

If you get a minute check out the Freemium model and see if it can help your business.  Remember giving customers what they want is true red hot customer service and great customer service is how you  build your competitive advantage. Why not make money too?

How do you know if your ads are good or bad? Does it really matter?

What really matters is that someone notices and the customer remembers you — enough to buy.

Some things I just don’t always get. Or let’s say I just don’t get it quick enough. One of them is the GEICO "Kash" campaign. Don’t get me wrong, I am fascinated by the campaign, I just don’t know if it changes my ideas about insurance.

The Martin Agency is the brains behind the Kash idea. In a nutshell, the campaign shows a creepy-looking stack of money with eyeballs staring at you — seemingly to indicate the money you could have saved had you been a GEICO customer. In the commercial, a roofer tells another roofer that he’s being watched or “scoped out” (by a girl, he thinks). Of course the roofer is being scoped out by a creepy stack of GEICO money.

In this one, a man stops for directions and he notices a GEICO stack of money looking at him from the fence. The man looks and says, “Poor fella. He must have been following you for miles. Looks tired.” Everyone is creepy and it makes you think twice before asking for directions on a lonely highway. The interesting thing about these spots is that they are so random.

In another commercial, a businessman is distracted during a meeting when a squeaking noise diverts his attention. It's Kash, who appears on a window-washer platform. "That's the money you could be saving with Geico," explains a co-worker. And finally, in another ad, a woman spends more time flirting with Kash than her date. All commercials end with a remake of the '80s Rockwell hit "Somebody's Watching Me."

Okay, so the character represents the average national savings consumers get from using GEICO, which is supposedly $500. According to Mike Lear, associate creative director at The Martin Agency, an IPG shop in Richmond, Va., "Geico loves to talk about savings, that's their recurring theme. We just dumbed it down to the most basic thing in the world, 'I want more money.'"

With the song, of course Geico wants you to hear it and think of GEICO. Kash now joins the animated gecko, the surly caveman and the consumer/celebrity testimonials. This all translates to $595 million in advertising dollars, according to Nielsen Monitor-Plus.

That's quite the chunk of change.

Okay, so many of us haven’t been smart about our money and of course now we all know it. Don’t get me wrong, I think the commercials are funny, and I feel “empathy” for the cavemen, but I actually haven’t gone and compared my existing insurance rates with GEICO.

Have you?

Resources
Stanford Daily
Ad Week
Brandweek
www.adgabber.com

What we're seeing in advertising these days is an eye opener for most of us. The bad news is that according to the Kelsey Group and BIA Advisory Services, there will be a smaller local advertising market in 2013 than there was in 2008. 

It’s amazing what you see if you look. I always think I look but it must not be so. Why? Because I’m not always amazed. With that in mind, let me share some amazement.

Recently I traveled to Genoa, Ohio to do some training for a store named Genoa Custom Interiors, owned by Cheryl and David Grosjean.  Here I am, motoring into town in my rented PT Cruiser, looking for some cookies or a pastry to bring to my new friends. Imagine my delight when I see a hot pink sign that says "CAFÉ - homemade desserts!"

Well, I'll just waltz right in and get the best stuff, knowing that my new friends will love the pastry. Hmmmmmmm, as I approach the door I notice a sign in the window advertising "fresh fried perch." I look up again to see if I’m at the right place, and sure enough the pink sign is still there. I hesitantly open the door and sure enough, it’s really a perch place, albeit with a pastry sign. Assuming it’s still a mistake, I approach an uninviting counter and ask for the homemade pastries that I’m sure they have. Not today, the lady says, but perch is on the menu!

I've learned a new lesson today: you can’t tell a sign by its sign.

I imagine the customer who goes there for perch is quite happy, so why not make a big PERCH sign and let us pastry people not waste time on perch and find what we want elsewhere? As I look down the street I’m intrigued by another sign: "A Most Unusual Garden Shop." I look in the windows and I see tables as well as a sign that says “Open for Lunch." I would never have been able to tell it was an eatery based on its marquee and exterior!

It reminds me of the carpet store that sells wood assuming everyone must know that a carpet store carries wood, right?

Wrong.

Your sign is part of your brand and should clearly display what you do.

If you carry laminate, say it. If you carry tile, say it.  Don’t let customers have to figure it out — we’re not that smart.

In Buffalo, NY there are adjoining signs for Destination Motherhood and Casual Male. Who would have thought to put these two stores side-by-side!?

The Chicks from Genoa

So, on with the story.

I get to a sign that says "Interiors," hoping that it’s not another cover for a perch store. I open the door and am promptly greeted by a plethora of well-dressed, smiling women. Before I have a chance to sit down, I’m ushered to their “Custom” shop across the street and am being shown jewelry. Now, I know if I told you to carry jewelry in your flooring store, you'd think, "there's crazy Lis again." Before I can ask why the jewelry, I’m told they simply carry it because they like it and know that most women do! The cabinet is unlocked and I realize the sales trainer — me — is being sold, and liking it! This is my introduction to the women who now comprise the group I affectionately call, the Chicks from Genoa. These are the ones I’m supposed to be training. The Chicks' real names are Cheryl, Sue, Janis, Jan and Rhennon. What wonderful women, and you can tell that Dave, the store owner, likes having them around. They are all very talented, can talk with anyone and just look great. Who would have thought they would be in a little town in Ohio?

As far as training goes, I find these ladies to be smarter than your average salesperson. We promised to be friends forever. I bought some Mary Kay from Rhennon and the girls gave me a lovely gift.

I shouldn’t forget Chris Clark — our other Mohawk rep who seemed to enjoy everything that was going on and didn’t make fun of us. That’s what makes him such a good rep. I also heard he does a great Elvis impersonation.

More Genoa Highlights

It's now off to the Genoa Cruisin’ Car Show, featuring 120 antique and custom cars. This time I drag along Pat Toohey, the Mohawk rep., and have her pose in front of a red 1965 Mustang. This show has free hamburgers and an Elvis impersonator. A good time for any town. Lots of stuff for men but not really enough for women. I probably would have had a massage, haircut, facial, a fashion show and cooking lessons…

Another elegant place of interest is Jan Pugh's store, Packer Creek Pottery. They have great hand-made items and testimonials from all over the world. I was impressed. The testimonials were from royalty as well as commoners like me. The testimonials were placed at eye-level around the store so you could read them. A great idea.

All in all, it has been a great trip. Look around you and notice advertising that works and advertising that doesn't. What are they doing different? Feel free to add your ideas.

How’s this for advertising:

Falso Service Experts for Lennox — count on your NATE–Certified, background-checked, drug-tested technicians to fix it right the first time."

I don’t know what NATE-Certified means, and while the rest seems pretty ominous, they’re right: any professional coming into the privacy of our homes should go through a screening process. Would this form of screening (and advertising) work for your business?