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.

I hope this article is timely for you; it is for me.  For many of us the  economy is still moping along and we’re trying to figure out what to do next. Consumers are changing their buying habits, myself included. Friends are downsizing their lifestyles and examining their life choices. The recession may be over, but the landscape has changed.  In many ways it’s unfamiliar; at least it is to me.   I’m in a different place too. It’s not a bad place, it’s just a different place and different doesn’t always feel right–especially in the beginning.

Change is good. Well, change is interesting but it’s more interesting if it’s happening to you rather than me. In my case, I find when it’s time  for a change I put more hours in at the health club! Somehow I know it’s a safe place for my mind and my body. I feel less stressed after my workout and  feel I’ve done something good for me.

Each of us is building new roads, repairing our highways and hopefully avoiding serious pitfalls.  I’m convinced that sharing this journey with positive friends who have good intentions will make our journey more pleasant and safe. It’s time to re-cultivate your the garden and  get rid of the weeds that might be choking you from making new decisions. Sometimes, these weeds come in surprising forms–forms we call “friends.”

Just as I’m writing this article, I received this from Kevin Clancey a Realtor in Albany, New York from his Monday Morning Mojo:

The biggest obstacle to creating a wonderful life is self-limiting beliefs. A self-limiting belief is an idea you have that you are limited in some way, in terms of time, talent, intelligence, money, ability, or opportunity. - Brian Tracy

At times we all have limiting beliefs, and there’s nothing to fear except fear itself and fear can be defined with the acronym “false evidence appearing real”. So, now what, where do you begin? It’s time for you to become your own coach, a good coach.

Speaking of coaches, one of my guests on Red Hot Customer Service Show was John Stahl from The Growth Coach of New York  serving business owners throughout the Northeast. John talks about limiting beliefs. Of course, beliefs simplify our lives but limiting beleifs dis-empower and hold us back. John talks about “getting comfortable with being uncomfortable” while making changes. If you’re talking about business challenges, Johns says the biggest challenge is between the ears of the business owner. I think this is a problem that many of us share.

Coach Vincent Lombardi once said that the difference between a good coach and a bad coach is the good coach always knew what the end would look like. If you don’t know where your want to go, how will you get there? If you get wherever “there” is, how will you know it’s the right place? In Warren Bennis’s book, “View from the Top“, he examines ninety leaders and found that one of key strategies was “attention through vision.”

What’s vision you ask? Vision can be a simple act or a thought; what do I really want out of life?

What makes me happy?

What are my dreams, my goals or my purpose? What would I like more of in my life?

I know I want more time at the lake.

Sometimes visions are statement for the future, a destination that you want to achieve. Last year I joined Toastmasters. I have competed in several events and recently joined the advanced Toastmasters Group. My goal is to continue to advance my speaking craft–I love speaking. The club gives me the opportunity to test new topics, get feedback and make changes. It’s a way to continually focus on something that’s important in my life.

Your vision may be simple. If you are invested in the outcome and feel ownership over your vision, then the happiness is in the journey– the appreciation of the uniqueness of the components it takes to get there.

I know lots of customers that would disagree with this statement. If you’ve ever had a customer complaint on line than you know what I’m talking about. I have seen some mighty disagreeable comments that wouldn’t seem to go away.

How do you counteract these things? The first thing is to have your “great” customers  post loving comments about your service, your staff and your products. This way if you have any negative comments there’s a possibility they will get lost in the good ones or the complaining person looks like a nut job to the rest of the  readers. My experience is that most businesses don’t “stack the deck” with great comments to counteract the possible nasty ones before they occur. When a nasty comment is written, it is glaring.

I found myself the target of one of these feuds. A client of mine got some bad press for posting a photo without giving credit to the photographer. The title of the blog charged the customer with something other than the above which was not only incorrect, but slandering.  I pointed out the error of the title and immediately someone else became annoyed at me. (By the way, I checked with a lawyer first about my concerns which turned out to be correct.)  The title charged the customer with a very serious crime, obviously the writer didn’t understand what he was writing.

Online remarks can get very sticky. One of our local supermarkets received an unflattering comment on Twitter which was responded to by an employee of the market. The employee was so upset he went to the commentator’s boss and suggested the person be fired! The target took his case to the local newspaper and the rest is history.

Last year I was curious about a local luggage store so I went online for testimonials. Much to my dismay, there  was more than one nasty comment. When I went to the store to have my Tumi luggage fixed, I told the manager about the comments. His reply, “I never noticed”. Needless to say they closed the following month; they had been in business for over 20 years.

Some thoughts about what to do before it happens and after:

Manage your own publicity; get your happy customers to post great comments.

Post articles of value for your customers; articles that make them smile, feel special and get valuable information.

Be aware, watch for comments, Google your business to see what’s being written about you and your business. Sign up for Google alerts.

Blog about your great customers. Interview your customers about their families and their businesses. Make your customers your business partners. Great customer service means giving your customers what they want and possible helping them to stay in business.Consider the bank or insurance company  that provides valuable workshops on marketing and sales  for their small business customers.

By the way, I couldn’t find any. But it stands to reason if your customers can’t stay in business neither will you!

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?

This makes me laugh!

I have been intrigued with “Have you ever cleaned an alpaca?” a commercial from Stanley Steamer. The two cleaning guys are in the truck and one is explaining how exciting it is to clean up after an Alpaca. It is cute, funny and definitely different. I went to Youtube to  view the video and look at the comments. The comments are interesting, what they say is ,  “I want and Alpaca, they’re so cute.” So much for Stanley Steamer, the cleaning company  being cute.

It would be interesting for the franchise people to ask their customers how they came into the store. Was it a friend’s recommendation or a past experience with the company.  They may have seen the commercial but  seeing the commercial might not be connected to their coming into the store. How many commercials have you seen, and liked, but didn’t drive you to the store or buy the product?

Maybe it would have been more relevant if they went to the local Humane Society and put their products in the animal cages or used their product to clean the cages. It would mean something to me and thousands of pet owners. As my friend Godzilla said, if you have an Alpaca in your house you have more problems than most of us that won’t be solved by either cleaning or special carpet.  It would have hit home and many of us would have gone to the shelter to adopt some pets. This is another important connection to the customer.

Another commercial similar to this was when Mohawk Carpet went to the Birmingham Zoo and featured Ricko the Black Rhinoceros as the featured mess maker to see if SmartStrand carpet with built-in stain resistance would do its job. Included in this was a Save the Rhino pairing with the Birmingham Zoo. This can be watched at

I love the Geico commercials and the latest being the “little Piggy cried all the way home.” The parody at Saturday Night Live,  are even funnier.

Remember “where’s the beef?” Did it change your mind about Burger King.

Both are darling commercials, bringing in the customer  through their love of animals as well as their carpet and carpet cleaning concerns.  Differentiation is what businesses need to build a competitive advantage but not all differentiation is considered a competitive advantage. When you have a competitive advantage it’s easy to build Red Hot Customer Service.

How do you know? You may not but you should try by asking your customers.

Ask customers about your commercial, in their mind how does it connect with their problems?  Most customers probably don’t have Rhinoceros or Alpaca stains. Does the customer get the part that both of these products will solve their most difficult problems? Does the customer think they have stains as awesome as the Alpaca? Do they think this is over kill? Do they think they need a product that will prevent staining like Ricko or do they find all of these stains disgusting?

There is a commercial for Schweppes that was a take off on the old James Bond movies. this commercial starred John Cleese. It was slapstick funny, didn’t seem to fit with Schweppes and wound up on the cutting floor. Maybe too funny or just too stupid. Frankly I didn’t really get it but love John Cleese.

Fun will sell if you use it to lighten up your customer and still use it to  reinforce your important message and  the promise to your customer.

It should be funny but not too funny so the customer forgets what you’re selling–and so do you.

Funny is a way to produce emotion in your customer and emotion is one way to build rapport. Humor is a grand way to build a connection with your customer but if it’s  so funny that you can’t connect it with your product or don’t  connect it’s a problem.

Suggestion: use humor it to add a light moment for your customer rather than an out-of-this-world funny. Save the funny for the comedians.

The key to funny, the commercial should make the product unforgettable and make the customer want to buy it.

The era of ‘glass houses’ and the ‘transparent generation’ have a lot of people nuts. If you grew up in my era this is how it went: If your sister drank it was a family secret and you did your best to keep it away from your friends or even your cousins. Life was all about secrets. Today the same scenario if done properly could land you a television script, a movie part or a spot on Oprah. The least would be a video uploaded to YouTube, an interview with your drunken sister, a book deal or at least a blog and a minute of fame somewhere. It’s no wonder the over-50 crowd can’t get a handle onthis and are wondering why?

According to a recent survey of execs from 100 companies of varying sizes, 78% of respondents said their companies were using social media — but just 41% said they had a strategic plan. Four out of ten active Facebook users say the site is a good way to get information about companies and products. It seems like every business is on Facebook except your business. Does this help you know what they’re doing?

It's alarming but not terribly surprising that half the companies using social media are basically flying without a parachute. This is not where you want to be in the new land of ‘transparency.’

We’ve seen it all or at least most of it. Someone can Google your name, take an aerial photo of your home or find out your social medial standings by downloading Xobni. Xobni is an Outlook plug-in that helps you search, organize your inbox and categorize your emails. It’s pretty amazing and pretty intrusive. Customers have access to complaints.com, ripoffreport.com and pissedoffconsumer.com to name a couple; all these sites are set up to let consumers vent.

As a person you can be as private as you like, as a business it’s more challenging. Prior to the Internet, consumers had no place to go other then the Better Business Bureau, who was kind enough to call you and let you know you had a complaint. If you’re really a celebrity or have annoyed enough people the complaint will be Twittered away and you may be the last to know. Let’s face it, the consumers are in charge and the best thing you can do is manage your online presence. Remember the story about your sister?

• Rule number one, shut up and listen. Don’t make any excuses even if you’re right. Customers aren’t always right but if you want to keep them, you will have to make them right. Sometimes if the comment is online a happy customer will come to your defense. Don’t wait too long; you will have to take it on.
• Become a super-sleuth and investigate your business. Know what consumers are saying about your business and where they’re saying it. Make a point to regularly monitor comments about your business. This includes Facebook and other social media haunts. This is one of the reasons you need a Facebook page. According to Trendwatching.com, Facebook is nearing 500 million users. The average user has 130 friends, spends 55 minutes a day on the site and receives three ‘event invitations’ to real-life gatherings every month. Foursquare allows users to explore their neighborhoods and get rewarded for doing so. This also means an unhappy customer can immediately trash your business.
• Handle the problem immediately. By failing to respond immediately to a serious problem you lose all control of the story. You have got to fill the vacuum of ‘what happened’ before the press or your customers do. Remember the Tiger Woods nonsense.
• Get your happy customers to sing your praises online. Before it hits the fan, and maybe it never will, collect testimonials, videos of ecstatic customers or audio interviews of delighted customers. Upload these to your blog, Facebook or have them plug you on Twitter.
• Have good content on your blog. Good content and useful information on your blog will help connect you to your customers. Someone with great information can’t be all bad.
• Monitor your employee behavior on line. The NFL and colleges monitor their athletes' Facebook pages. Set some employee guidelines for online behavior. Anything you post on Facebook can and will be used against you in a court of law.

Where did I hear that before?

I just returned from a trip to Orlando, FL and worked with several different groups of people. Business owner Randy Stinson of Stinson Carpets invited me as a speaker for the Lakeland Chamber of Commerce and to meet with a group of flooring retailers to discuss business concerns. Stinson Carpets, a leader in the flooring industry, was given the honor of Mohawk ColorCenter Dealer of the year for the Florida Region. Randy Stinson, CFE of Stinson Carpets,  is community minded and a team player. He hosted the discussion group at his store and invited other regional Color Center Dealers as well as the Lakeland Chamber of Commerce. In addition Stinson’s has the privilege to host the Chick-fil-A Leadercast here in the area on May 7 from 9:00 a.m. – 4:00 p.m.  The Leadercast is about experiencing authentic leadership, learning from the world’s best leaders, awakening your passion to influence and aspiring to impact lives.  

Why does Randy work so hard in the community, especially when business is so challenging? 

"I’ve always been a team player," says Randy. "I believe in my community and in bringing events that benefit all of us. With the world changing so quickly it’s important to stay with and ahead of the trends. Customers are the lifeblood of all of our companies and they deserve the best of what we have to offer."

Business is better, but business is different. The new home market is quiet, remodeling is picking up and residential customers are shopping. Things should be all good, right? Well there are some other things. These other things are called social media; specifically Facebook.
If you need to find information on a carriage, do you Google or Facebook? It seems that Facebook is starting to rival Google for information. Consider that you’re looking for information on a baby carriage. If you put baby carriage in Google you will get over 3 million citations. When you get all done, will you know what type of baby carriage you need; will you trust what you read? Let’s put “I need a baby carriage” and "what should I buy"  in your Facebook search and what will come up? Probably answers from 15 friends on what they’ve bought and what works. You can’t buy these referrals.

How important are referrals? They are the lifeblood of any business. By the time a business is 5 years old, 85% of their new customers will come from referrals. Every business needs to find a place for customers to share their experiences. Apparently recommendations from friends on Facebook are rivaling the Google search. Is carrying more weight than the Google search. It makes sense to me; I would rather hear what my friend has to say about the baby carriage than all the citations from Google. It’s personal and my friends have no vested interest in what I purchase.

It’s obvious what this means. You had better get up to speed if you’re looking for customers. Customers posting to your “like" (or fan) page will be providing information to “possible customers.” Think of how this can snowball and provide you with new customers.
We talk about word of mouth, with Facebook and Twitter you have the advantage of listening to conversations. You also have the opportunity to influence conversations with customer testimonials.

This brings me back to these meetings in Orlando. One of the big topics was social media, why it’s important and how it fits. Barbara Abramson, one of the group members,   not only knows how to use social media, I think she’s one of the most “in the know” flooring people I’ve met. Barbara and her husband Ira own Sanford Carpet, which they took over from Ira’s parents. Barbara has brought innovation and energy to the sales floor while Ira handles the installation. During our meeting Barbara was helping make videos, taking photos, tweeting and celebrating her birthday on Facebook. For the next meeting Barbara agreed to get everyone up to speed in social media if they wanted to meet again. Another outcome of the meeting was the development of the Central Florida Color Center Leadership Council. Despite the time necessary to effectively run their own businesses here is a group that’s devoted to each other’s success. They don’t see themselves as competitors, they see themselves as partners.

The next meeting is set and Barbara is going to get everyone up to speed in social media. This is serious folks, everyone has to bring their laptops and their Facebook and Twitter accounts and be ready to work.

Okay, so now you've heard the recession is over. I don't know what exactly what it means, jobs are scarce, credit card lenders are raising interest rates and banks aren't lending money to small businesses. I wonder what it would look like if the recession wasn't over? 

Maybe more of the same?

As the Newsweek article puts it: "When the economists proclaim a recession is over, they're celebrating a technicality: they mean economic output has stopped contracting. And while that's good news, you might wait awhile before adding Judy Garland's rendition of Happy Days are Here Again to your iPod."

What's the point? It doesn't matter whether the recession is over or not. What really matter is when will your customers be back and why aren't they buying from you? Most likely they're not buying from you or anyone else.  If you can acknowledge this, you"re on the road to recovery. If you're still in the unbelieving stage, your business is in trouble. There are still businesses out there that believe if they continue doing the same things the same way the customers will come. There are lots of businesses out there that believe it will all go back to the way it was. To believe this is to believe in fairies and warlocks.

Einstein's definition of success was doing the same thing over and over again and expecting a different result.

Many of the companies that exhibit these behaviors are companies that have been successful. They believe that success still awaits them no matter what they do. Unfortunately they are wrong. You've probably heard the expression, "what got you here will not get you there." Clinging to the past and what worked before will not move you forward. What will get you there there will be your ability to change, not your ability to cling to the past.

I speak to business owners every day; I admire the ones who call and say, "I don't know about that kind of stuff, meaning the Internet, but I hear it's where my customers are congregating."  These are the ones who will probably survive and grow to be different companies. They will be lean, mean and accountable.

I spoke with a business owner the other day who apologetically said,"When this is over, we won't look like the same company." I asked why he was upset and he said because his company was always looked upon as leaders and now they would have to  downsize. Let's face it, there are fewer customers in the marketplace and probably more businesses than ever who are chasing these customers. As a country we have never been here before and there's no blueprint for success. Smart business owners will have the guts to look the problems in the eye and say, it's time to move on. The bottom line is the bottom line and that's  pretty much it. I know that doesn't sound revolutionary, but neither does "we're waiting around for them to change" or "I'm waiting for the customer to come back." 

By the way, in case you didn't know it, customers haven't been on vacation. Customers are just apprehensive.  

So how do you change? Change is never easy; in fact, the more you know the less you think you have to change. While times are good many business owners stood waiting for their "payoff." Unfortunately it never really came. In fact, many of those who sold their businesses had to scurry back to reclaim what was left of their failing business. Why did this happen? Most of them sold the business to someone who was like the: running the business the same way. The new owner didn't think about changing either. 

One of the things that happens to owners is what Marshall Goldsmith calls the Paradox of Success: "I have succeeded, I can succeed, I will succeed and I choose to succeed." It reminds me of another powerful expression: "veni, vidi, vici" – I came, I saw, I conquered. Why doesn't it work? Because it's not that simple. What is happening in the marketplace requires a new mindset and can't be conquered by old strategies such as dropping prices or selling cheaper merchandisers. It's too late to try and do it faster and better. It's time to do it differently.

There are some things that might help but ultimately the answers to this problem have not been written.

• It's time to seriously start talking to your customers. Ask them what do they think about the economy, how has the economy changed their behavior, are they spending the way they did prior to the recession? Everyone I know — even those with good jobs — is apprehensive about spending money. Ask what they're doing to enjoy their lives, probably staying home. This is a good reason to make some changes to the interior.
• Ask your staff what' they're feeling: if they're apprehensive you can be sure this is influencing their interactions with the customers. It's called "misery loves company" syndrome. It feels good but neither party actually benefits. Coming up with solutions works, suffering together doesn't work.
• If new customers are scarce, call your old customers. Offer them an incentive to make a purchase or invite them in for a party. We can all use a little fun.
• Hold a networking party and invite neighboring businesses and past customers. I recently spoke at a networking party in New York City where all types of business people came to make new friends.
• Meet with other businesses and find out what they're dong to get new customers. Partner with them and hold an event; any kind of event, just bring in customers.

This is the season to be jolly and raise money for your favorite charity; collect toys, coats for kids and adopt a needy family. When your customer gets ready to shop you want to be noted for something other than the lowest price. If you don't do something, you'll be out of sight — and out of mind. 

Remember that one?

Several weeks ago I was invited to speak at Carpet Network’s Homecoming 2009 in San Antonio, TX. Carpet Network is a shop-at-home franchise founded in the early 90s by Christine and Lenny Rankin. At the time they had a very successful floor covering store and decided to take their concept to the next level. It was obvious to Chris that it was often difficult for customers to make decisions in the store. It was much easier when the customer looked at the products in their own home. "With that," says Chris, "the shop-at-home concept that was to be Carpet Network was born."

Chris continues. "At the time, when retail stores are struggling to survive, our mobile concept is booming. Our state-of-the art Unicell vans allow our customers to view thousands of carpet, floor and window covering selections from the comfort of their homes or business."

Just a note about franchised business, they are successful for one main reason: they have a proven system in place. There is no question McDonalds and Dunkin’ Donuts have survived because of their systems.  Franchise businesses have a failure rate of only 25% within the first five years, and traditional businesses have a failure rate of about 80%. It’s the system that works. By buying a franchise you are buying into a set system of rules and regulations that have been tested and work.

I keep hearing how business is so terrible and how there are no customers. And then I run into retailers like Taylor Flooring and Homevalue who tell me there are fewer customers but they’re doing good business and are seeing new ones.

Of course during this time you have to trim down your costs but you still have to have a plan for attracting new customers.  As I recall, when times were good you didn’t need a strategy to attract customers; there were so many customers coming in the door that you didn’t even have to be a good salesperson to get these customers to buy. You just had to be there. You know the old "build it and they will come" saying. Well, it was true. They just came.

Now they aren’t coming, and for lots of reasons. Maybe it's a lack of trust in the "system" or less money and more re-prioritizing of their lives and financing. If you didn’t have a plan before, you’re in a pickle. Those who are doing well or getting through this recession without losing their shirts have always had a plan. Plans have to be altered but your plan should have the basics of what’s necessary.

So let’s talk about your "brand plan."

You’ve relied on your brand and others' brands to get you through but has the message changed? The customer sure has, so your brand must change if you’re going to connect.  Customers are worried, and certainly see trusted brands as a safe bet. They're comforting in times when everyone’s all wondering, who can I trust? For those of you who have taken sales training classes you all know that "empathy" is the most important trait of a good salesperson or anyone or anything who’s trying to sell a product.  

Reducing quality, changing prices, taking away "value" that you have always given the customer will not increase your brand value.  These empathetic messages must say to the customer, we understand, I’m with you. The message "you should buy because things are cheap" or "we’re the only game in town" just makes you look like you don’t care about what your customer is experiencing. Don’t take out your frustrations on the customers.

Tactics such as rewarding only big time spenders or reducing quality so customers get to play less won’t build trust. Expanding your product offering at lesser prices is still value added. But reducing quality on items when you know they need better is not a good strategy.  Quality is still quality and value is still value, always keep that in mind.

Educate your customers on how to shop your products. Tell them warranties do matter and installation standards certainly make a difference. It’s time to go back to those values. Old time, new customer service.  In my book, Red Hot Customer Service, I talk about things most people have forgotten but that can still impact your sales and bottom line.

Remind your customers that buying the brand certainly does matter because it can be trusted. Don’t forget in times like these, your brand and your connection is what really matters. What are you doing to support your brand?

• Look at your warranties, do you remember to give them to your customers after the sale?
• Do you explain to customers how to take care of the products they’ve purchased?
• Do you call them after the job to say hello and make sure the job is perfect?

Do you do small things like show up on the job and talk with the customer? If the customer isn’t home do you go to the job and video the rooms that are complete and send it to the customer while they are at work? (This is a very creative move on retailer’s part.)

Realize that consumers have changed and this shift may be long term. Customers are very unhappy and untrusting and may insist that you prove who you are. Customers tired of the greed and lack of company ethics will demand accountability. I saw an interesting ad for insurance company RM Global. They wrote about the tornado that tore through Atlanta in 2005, leveling everything including the Atlanta Motor Speedway.  Three-and-a half months later the fall race weekend opened as plan. How? Because of the partnership between the Atlanta Motor Speedway and RM Global. More and more ads are showing connections. Oil companies talk about how they can reduce carbon footprints; Men’s Warehouse is offering to let the customer "keep the suit" if they lose their jobs, and most car companies are willing to take the car back if you lose your job — or help make the payments for you.

Will the recession end some day? Yes it will. The longer it takes the more damage it will do in the customer's mind. According to John A. Quelch, a professor at Harvard Business School, "During the recession of 2001, there was no decline in overall spending, although many cut back. It should be noted that this recession shows consumers being very frightened, which means that they will carry the sting for many years."

In other words, during the last recession we had, in 2001, consumers didn't change their spending habits! It's different this time, so it's time to get in step with your customer. We may be doing this dance for a while.

Resources:

• Age of Conversation 2 – Why Don't They Get It on Amazon?
• Harvard Business Review, How to Market in a Downturn
• Get to the Point: Small Business

Lis Calandrino is a sales trainer and marketing consultant who speaks around the country on topics ranging from retail sales to online marketing and social media trends. She can be reached at lcalandrino@nycap.rr.com or 518 495-5380.