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Tag Archives: retail

Don’t Let Diversion Divert Your Attention

23 Monday Mar 2015

Posted by Jim Lucas in Branding, Customer Experience, Customers, Product, Retail

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Branding, client experience, Customer Experience, customers, diversion, grey market, product, retail

Oribe

Chances are you can describe your preferred type of client, you have a pretty good understanding of her needs, and you offer her services and products at fair prices. When clients spend money on what you offer, they are validating you as a business. Money is revenue. Enough revenue, combined with responsible financial management, becomes profit. Profit is, a sometimes rare, validation.

  • New clients validate your offering, your space, and your marketing. It’s good enough to try once.
  • Returning clients validate your total experience. It’s worth trying again.
  • Loyal clients validate your total experience. It is better than your competition.
  • Clients who are your advocates validate the presence of a strong emotional bond.

Usually salon owners I meet spend most of their time thinking about getting new clients—and then their attention is diverted. It is the owner’s responsibility, and opportunity, to create a deliberate plan to move their clients through each stage of Client Maturity.

New=>Return=>Loyal=>Advocate

Clients at each stage are open to different messaging and capable of different behaviors. For example, no one would expect a brand-new client to refer all of her friends to you—but for a Loyal or Advocate it would be natural. I argue, “Why do so many salons hand out referral cards to brand new clients?” I don’t think they are capable of “hearing” that message when they are still deciding about you themselves.

Client Maturity planning helps you focus energy to achieve specific results rather than throwing the kitchen sink at your entire client base and seeing what happens. Relating this to our topic of Diversion (and your need to grow your retail sales)

I urge you to first focus 80% of your attention on creating solid populations of clients within each stage and the retail problem will partially solve itself.

The converse is obviously false since focusing 80% of your attention on selling retail will not create Return, Loyal, or Advocate clients.

For any problem you encounter, ask yourself, “What is it about our offering, our price, our experience that is the root cause here? What can we do better to keep this client firmly in the Return stage and potentially grow them to the Loyal stage? If you’re not sure of that, no amount of asking them to buy your retail will help. From the time a new customer starts looking for a new salon, to the time they return, to the time when they rely on you to satisfy more of their needs, to the time they refer their friends; you are in relationship with them. The more responsibility you take for how they perceive and experience your salon, the more opportunity you have to make a good impression, satisfy their needs more deeply, and develop positive lasting relationships that translate into more sales of everything.

Engineer Your Customer Experience

21 Friday Jun 2013

Posted by Jim Lucas in Branding, Customer Experience, Shared values

≈ 4 Comments

Tags

Apple Store, BestBuy, Brand Advocate, Branding, Customer Experience, retail

Customer Service, Brand Advocate, Lucavia Consulting

Created: The Happiest Place On Earth

Earlier, I dropped into BestBuy looking for a gift. Sometime ago they must have implemented a greeting policy for their personnel. For a time, they would look right at you, smile, and greet you as you walked in. That devolved into a “Hi,” or “Welcome to BestBuy” that was sort of lobbed in your general direction but not at you personally. Now the greeting is gone and you’re invisible again.

The Apple Store: When you enter you’re always greeted and someone speaks directly to you (sometimes they smile!). Customers shop, learn, and discuss their needs with a small army of Apple staff members so no one ever waits long for personal service. I realize it’s familiar now but I’m still impressed with their checkout process. It’s just so cool when your sales guy reaches into his pocket and pulls out his iPod touch, takes your payment, activates your product, and emails your receipt.

So, the obvious question is, what makes the difference between these two experiences? They are both branded experiences. That is, we have come expect a certain kind of experience with each brand. BestBuy’s is what it is. Apple’s doesn’t just happen by chance. Seemingly effortless and organic it’s something they’ve invested in, iterated on, and improved year after year. Apple’s experience is one of the ways they consciously strive to transform customers into brand advocates with the hope that those brand advocates will “evangelize” the Apple message by telling their friends (or blogging about it).

Lucavìa Consulting engineers positive branded experiences and uses them to: 1) Increase the power of your brand, 2) Mobilize your staff toward a shared goal, and 3) Transform your customers into brand advocates who can’t wait to return and eager to tell their friends about you.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

How To Transform Customers into Advocates

21 Friday Jun 2013

Posted by Jim Lucas in Branding, Customer Experience, Shared values

≈ 2 Comments

Tags

Brand Advocate, Branding, Customer Experience, retail

Customer Experience, Brand Advocate, Lucavia Consulting

Your brand image is composed of hundreds of little connected fragments of customer perception. Your logo, your business card, your products, the way you dress, your store/storefront/offices, the way customers are treated by your staff and then what they tell their friends. Every little interaction and every way your customers come into contact with you, your staff, and your messaging comes together to create an image. It all builds up to create your brand. Your brand = what you stand for; but not just in your mind: primarily in the minds of your customers.

It’s important to make each of these little interactions and perceptions add up to something you intend—something that keeps your customers coming back with passion. Taking ownership of the total customer experience is the single most important step you can take and it is one where you have an enormous amount of control. It’s far more powerful than any advertisement or inbound/outbound promotion—and you can invest in it every single day.

From the time a new customer starts looking for a new place to shop, to the time they return, to the time they refer their friends; you are in relationship with them. The more responsibility you take for how they perceive and experience your brand, the more opportunity you have to make a good impression, satisfy their needs, and develop a positive lasting image in their minds. But, of course, this comes with responsibility; it requires you to think outside your four walls, beyond the time your customer spends directly in front of you, and it requires a clear plan of action to make them feel qualitatively better after every interaction.

If you would like to learn more about creating a Transformative Customer Experience for your business, please contact me.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Not Too Big To Fail

18 Tuesday Jun 2013

Posted by Jim Lucas in Branding, Customer Experience, Customers, Shared values

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customer, customer service, management, Orchard Supply Hardware, retail

Orchard Supply Hardware, OSH, Customer Service, Lucavia Consulting

As a “Radical Do-It-Yourselfer” (R-DIY) I’ve been a regular same-store Orchard Supply Hardware customer for 16 years. In all but a handful of visits I’ve shopped at OSH because it’s about half as far away from my house as the big box stores. In other words I only shop there if I’m in a hurry or if I’m already nearby. As a result, I only buy the small inexpensive items where paying an extra 10%-30% won’t break the bank. You know; screws, nuts, bolts, and minor plumbing supplies.

Why? It’s convenient. And. That’s. It. Being in a neighborhood gives a brand many advantages. However, none will overcome if people only visit you for fill-in purchases—while spending 95% of their budget elsewhere. So, after 16 years of not one OSH clerk or manager taking the time to learn my name, or to even recognize my face with a smile or head nod, it came as no surprise—and, yes, a bit of schadenfreude to read of OSH’s demise.

The irony is I’ll be able to reuse this post in just a few years. Lowe’s management is buying the locations—not OSH culture. Without a commendable customer service culture of its own to inject into OSH it will only be a matter of time before the same cycle repeats itself (Sears bought-and-spun out OSH 1996-2011). One day, Lowe’s will look back and wish they hadn’t simply purchased the locations without doing more to make OSH worth the few percentage points customers would willingly pay to patronize a community resource: Where the staff looks up, smiles, makes eye contact, and says, “Hi Jim. Nice to see you.”

Seriously, all the management firepower that could be brought to bear to make this acquisition succeed pales in comparison to this one friendly human touch.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Because I Said So!

16 Sunday Jun 2013

Posted by Jim Lucas in Management

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Bay Area consultants, consulting, hotel management, knowledge worker, management, Northern California Consultants, retail, salon, small business, start up

Responsibility

It’s likely that every manager has had many of those days where she can barely suppress raising her voice to say, “Because I said so!” Human beings are often baffled by how other human beings behave in situations that, to them, seem like such no-brainers. “Of course you would go the extra mile to make the customer happy.” “There’s no reason not to treat our suppliers with respect.” “I can’t even imagine not returning an email within 24 hours.” The list is endless and leaves managers tempted to think, “What do I have to do to motivate my people to do a good job?”

But is motivation even the point?

We confuse our duty to manage for results with motivating others. If you don’t realize only others can motivate themselves, and if your company doesn’t always create an environment where people can engage in meaningful work and use their talents, and if you don’t remind yourself that your job is to create results; then no wonder you think you need to motivate others in order to, “Get them to do what I want.”

The secret to achieving high levels of performance is to make workers responsible for their work and their results.

Once you’ve established your company’s purpose and vision, communicated your values, recruited talent whose strengths are suited to your team, designed meaningful jobs and measurements, established a track record for rewarding accomplishment, and set the priorities, you’ve taken responsibility for your role as a manager. If you haven’t performed these duties now would be a great time to start.

When one of your workers isn’t performing, the cause is much more likely to be a lack of responsibility for results than a lack of motivation.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Don’t #@!% the Customer

16 Sunday Jun 2013

Posted by Jim Lucas in Shared values

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Bay Area consultants, consulting, hotel management, knowledge worker, management, Northern California, Northern California Consultants, retail, salon, small business, start up

Atlassian

Hanging from the ceiling, like world championship banners, are five giant statements of the Atlassian company values. In an earlier post I explained how talking about values improves company culture and competitiveness. It looks like Atlassian might tell you the same thing. Jim Collins, in Good To Great, claimed you don’t need perfect values—you just need values—and that alone is enough to make a difference. Imagine the tone that is set everyday when an employee walks into their office and sees this:

  • Open Company, No Bullshit
  • Build with Heart and Balance
  • Don’t #@!% the Customer
  • Play, as a Team [note the comma!]
  • Be the Change You Seek.

That’s pretty clear and powerful stuff when it comes to explaining the accepted rules of conduct at Atlassian to anyone who works there.

Drucker believed a huge percentage of knowledge workers should be managed as if they were volunteers. Not only did he recognize that volunteers do what they do for meaning, control, achievement, etc., but he also saw that today’s workers are well educated, mobile, and carry with them their own means of production—in other words, they can work anywhere they want. He also argued persuasively that knowledge workers, and organizations, excel when the workers themselves seek responsibility for their own work and it’s impact on the whole.

So, if your workforce consists of highly educated, intelligent, super-mobile people who crave responsibility, you’re off to a fantastic start.

Now it’s your job to build the organization’s values, and constantly reaffirm them, so your people know how to excel within your culture and to learn explicitly why they were attracted to you in the first place.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Culture Clash

16 Sunday Jun 2013

Posted by Jim Lucas in Shared values

≈ 1 Comment

Tags

Bay Area consultants, consulting, hotel management, knowledge worker, management, Northern California Consultants, retail, salon, small business, start up

Put your hands in

When was the last phone call, or face-to-face, with your manager where company culture, common purpose, or company values came up in conversation? How about during your last performance review—or business check point meeting? Maybe the topics came up at your annual planning meeting, offsite, or celebration.

People are every company’s greatest asset. Great companies routinely acknowledge they owe their success to their talented people. Clearly, most knowledge workers are high achieving, smart, motivated, experts who know what to do and how to do it. In an earlier post I discussed why the carrot and stick are no longer effective. All too often I hear how employees feel micro-managed or intimidated by their managers as if fear were some kind of virtuous, effective management principle.

In the 2012 Employee Job Satisfaction and Engagement survey 95% of respondents (figure 10) said communication with Senior Management is Important or Very Important. It is virtually self-evident that the type of communication they are referring to is not function specific. What knowledge workers need to hear from their management is:

  • Why do we exist?
  • What do we believe in?
  • Why is the world a better place because of our work?
  • What will it look like when we achieve our goals?
  • How are we performing compared to customer expectations and the competition?
  • Which innovations must we achieve to ensure our future success?
  • Why can I believe in our leadership team?

Every company has a culture whether they plan it or not. Some are toxic. Most are average. And some, maybe yours, can be exceptional if they make a healthy achieving culture a priority and put their plans to achieve it into action.

You can make your company culture a competitive advantage. Don’t leave it to chance.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Can Innovation Be Scheduled?

15 Saturday Jun 2013

Posted by Jim Lucas in Innovation

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Bay Area consultants, consulting, hotel management, knowledge worker, management, Northern California, retail, salon, small business, smb, start up

innovations

In my post about entrepreneurs, I mentioned how they don’t just create something better they create something different. Creating something new and different is innovation. Many might think that most innovations come from a spark of insight or a flash of brilliance (which no doubt they do—as well as repurposed mistakes). But, what we may not understand is that you, I, and entire companies can approach innovation systematically.

  • The first requirement is that people be measured and rewarded to encourage them to value change—not resist it.
  • Second, management must understand how much innovation will be required to sustain the business over a given period—as well as how many of their current products/services will be obsoleted in the same timeframe.
  • Next, a systematic evaluation of the changes in trends, customers, and the environment must be undertaken.
  • At the same time it is imperative that company’s performance as an innovator be measured and that rewards, relationships, job assignments, structural changes, etc. be adjusted accordingly.
  • Innovations should lead to customers being better served or allow them to do something they were previously unable to do.

More important than this abbreviated list for creating systematic innovation is the fact that once an idea is identified, people need to go to work. The old adage that (art, genius, success) is 10% inspiration and 90% perspiration certainly applies.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

What Entrepreneurs Do

14 Friday Jun 2013

Posted by Jim Lucas in Innovation, Management

≈ 2 Comments

Tags

Bay Area consultants, consulting, hotel management, knowledge worker, management, Northern California, retail, salon, small business, smb, start up

Containers

Most start up and small business people call themselves entrepreneurs. But how many understand the term and the power it unleashes?

In 1803 French economist, J. B. Say, coined the term entrepreneur, “The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.” In 1986 Peter Drucker formulated this theory. First, entrepreneurship sees change as normal and healthy. Second, it does something different than what is already being done. Notice it’s not just about doing something better but doing something different.

By this measure, entrepreneurs make up a minority of new businesses and those who are entrepreneurs understand what is expected of them: To create something different.

Popular culture expects this something to be a visible object, like an iPod, for example. But it can easily be argued the iPod is the direct descendant of Sony’s true innovation the “pocket-able radio.” What was really different about the iPod was iTunes—that’s what completely disrupted the music distribution business. Similarly, forgive us for thinking that Facebook created a breakthrough in the way people engage in relationships. In fact, what they’re doing is turning their users into the product they sell to their real customers: Advertisers.

Entrepreneurs often innovate in unseen ways. They standardize a product, systematize a process, redefine what the customer considers value, change a procedure, recombine things, improve the yield from resources, or change the way resources are used. One of my favorite innovations, cited by Drucker, was the establishment of the entrepreneurial bank by Crédit Mobilier. They were the first to use other people’s money to finance large projects rather than using their own.

So, if you’re starting a new company I hope you do well. If you’re an aspiring entrepreneur, you’d do well to understand what’s expected.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

Two Lessons for Every Entrepreneur

14 Friday Jun 2013

Posted by Jim Lucas in Customers, Innovation, Management

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Bay Area consultants, consulting, hotel management, knowledge worker, management, Northern California, retail, salon, small business, smb, start up

Bassett Ears

In the 1700’s Edmund Burke said something you’ve heard many times, “Those who don’t know history are doomed to repeat it.” In my opinion, much of the business press exists to exploit the fact that we learn important lessons—and then quickly forget them. Much is known about management, entrepreneurism, innovation, etc. but we somehow forget in our pursuit of the latest meme or in our rush to be busy instead of creating results.

In the 1800’s J.B. Say defined the entrepreneur as “…Shifting economic resources out of an area of lower and into an area of higher productivity and greater yield.” Starting in 1939, over seven decades, Peter F. Drucker became the most influential management writer and thinker of all time as he codified the practice of management in over 30 books. And yet, we have an insatiable appetite for relearning what we already know.

In my local Sunday paper two articles caught my eye. One quoted Paul Santinelli of North Bridge Venture Partners. When asked the biggest mistake entrepreneurs make he answered, “…I was always enamored with what we were building…Had I listened to our VP of sales and realized, ‘Hey, the market doesn’t want X, they want Y and are willing to pay for it,’ I might have been able to move faster to a more acceptable solution.” In the other article, Curtis Carlson CEO of SRI, a company well known for sustained innovation, says he, “…Preaches, literally to every SRI employee [that]…each researcher must be able to explain the need s/he is trying to fill, why a new method would be better than what’s already available, and what benefit the new idea would bring to a potential customer.”

So, no matter where or when you learn it the two top lessons for entrepreneurs are:

  • Listen to your customers.
  • Discover what they need.

Jim

Lucavìa
gojimlucas@lucavia.com
lucavia.com
(925) 980-7871

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© Copyright Jim Lucas 2007-2013 All Rights Reserved

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