Barwalt Tool Company :: Sales and Customers

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Sales & Customers

How to Deal With Unhappy Customers

It happens to everyone, even your best sales people. A customer will take offense at your pricing, your product or something else about you or your company. You can't just ignore their hostility, that only sends the message that you don't care about their problem. When a customer is determined to argue with you, you can defuse the situation in four easy steps.

Thank the person for his/her comments -- even if those comments were shouted at you. Remember, the attack is not personal, so do not treat it that way. Keep your cool, even when being berated.

Start your half of the conversation with the phrase: "Let me see if I understand you completely." Then restate the person's argument -- slowly. This does two things, one, it gives the person a chance to calm down and two, it shows that you are truly listening and are taking their concerns seriously.

Find a least one thing in the argument that you can agree with. Even if you think the argument as a whole has no foundation, pick out one major point you can agree with. Build your rebuttal on that point. For instance: "Well, Mr. Smith, I can certainly see your point about the delivery being late. I will make sure that does not happen again. Now regarding your other concerns?" By conceding a point or two right away, you show that you are not defensive about the situation and that you really want to solve the problem, not duck blame or make excuses.

Solve the problem. Remember, when customers pick a fight, what they are really saying is, "I have a problem." Solve that problem. By doing so, you turn a negative around and actually, gain points. Smart salespeople do not mind when customers complain. They see it as their chance to shine and to win the customer's loyalty.

Use a Positive Note on Pricing

Use one or more of these phrased to convince people who might object to the price of your product or service when advertising or having signs made.

Get more for your money.
Make your money work for you.
We at __________ are committed to saving you money.
This product is the best for your money anywhere.
You'll be amazed at how much further your money will go when you buy.
Ask us about our "0 money down" option.
This product will save you time and money.
If you want real value for your money?
Make your hard-earned money work for you!
This product will save you money every day.

Turn Negative Customers into Walking Advertisements

No sales organization is safe from complaining customers. You can't control how they'll react to your product or service. But you can choose how you and your salespeople respond to them. Follow these suggestions to build a caring customer service image:

Use positive language. When you acknowledge a customer's complaint, avoid words such as "trouble" or "problem." Try "situation" or "challenge." Repeating negative works reinforces the customer's perception that there really is something wrong -- and maybe your organization won't be able to fix it.

Eliminate your emotions. Don't take customer's anger personally. They're upset with the situation, not with you, no matter how it sounds. Maintain a calm, pleasant voice and a level head. Customer's anger and frustration will only increase if you allow your emotions to escalate in response.

Offer choices. Try to generate more than one solution. That give customers the chance to select how they want the situation resolved. Irate customers feel they're in an out-of-control situation. Offering choices helps them feel better.

State what you can do. When you outline options, tell customers what you can do -- rather than what you can't do. Don't say, "We don't accept personal checks." A much more pleasant statement is "We'll gladly accept your cash or credit card."

Turn Price Inquiries into Sales

When prospects know exactly what they want, they shop around for the best price. Here are three surprising responses that help you make the sale.

"Call me last." When one customer was buying a tile saw, he knew exactly what brand and model he wanted. So he asked various dealers for quotes. One refused. "Call me last", this smart dealer said, "and I will see what I can do to beat the competition."

Not only did he match the best price, the dealer locked down the deal by also throwing in a free pair of nippers and a float!

"We'll be the most expensive." A tile installer was frequently asked to quote jobs. Although he put a lot of time into the quotes, few people agreed to his price. Now he pre-qualifies prospects by saying, "I'll be glad to give you a quote, but I want you to know in advance that I will probably be the most expensive proposal you'll receive."

He reports that 50% of his prospects hang up on him. He doesn't mind. He knows they would never have agreed to his price anyway. The people who stay on the line usually ask, "Why?" He takes the opportunity to explain his top-of-the-line methods. This approach has helped him build a reputation as the best tile installer in town.

"I'd prefer not to quote until..." Never give price quotes without first discovering the prospects needs. One retailer often got requests for quotes. She replies by asking "Who else are you considering?"

If the prospect resists giving this information, she tells them, "I'm in the business to help you get the best tile and service for your money. I'm not in business to help you get a better price from my competitor. So I'd prefer to not give you a quote over the phone, I'd prefer to see how I could best serve you when you drop by our showroom."

Creative Promotions

Make a big splash, even on a limited advertising budget, by co-sponsoring a public service event with non-competing businesses trying to reach the same prospects you want to attract. You'll receive advertising and publicity at a reduced cost, make a contribution to your community, foster appreciation and loyalty from guests and make contact with countless potential customers.

Start by choosing your cross-promotional partners and a theme. Examples: A tile store, a window treatment center and a paint store could sponsor a "Habitat for Humanity" fundraiser. Or a tile store, home security firm, and insurance agency could work together to present a "make your home safe" demonstration event.

Why this works: Partnering up to produce a cross promotional event allows you to share production and marketing costs. And involving prospects in a positive, educational experience creates an indelible impression.

What do Customers Want from Me?

Information is a powerful tool for strengthening customer relationships. You can connect customers with experts and solutions. You know how your products work and how to apply, fix and use them. You know how other companies use your services and how they benefit.

And that''s just for starters. Here''s a short list of the information you have that can help your customers. Tell them about:

What products and services your company has and how they can be customized.
The features that can benefit them in different situations and circumstances.
Ways to make your products and services more valuable through training, service or added features.
Upcoming innovations that can benefit them.
The possibilities they'll discover when they use your products and services -- including what other customers have done.
Your competitor's products and services -- and their strengths and weaknesses.
Your customer's competitors. How they're changing and what products they're using.
Upcoming changes that could affect them and their customers.

Justify your Higher Price

When you know you charge more than your competitors, one of these phrases can help you prepare to beat prospects' objections:

"It may cost more but it's worth more."
"intelligently priced at $....."
"For people with expensive tastes."
"Isn't it better to spend a little more now, instead of a lot more later?"
"Your credit is good with us."
"You're paying for quality."
"not as expensive as you think."
"Isn't it worth paying a little extra for the best?"
"You may think you can't afford?"
"Allow yourself a little luxury."
"Every distinguished home should have a ?"

Ways to Keep your Customers Talking

Questions help you sell by encouraging customers to speak freely about their needs -- giving you the information you need to make the sale. These questions will help you pinpoint their troubles and needs:

"Can you tell me more about that?"
"And how did that work?"
"How do you feel about that?"
"What makes you sure?"
"What don't you like about it?"
"If you could wave a magic wand, what would it do?"
"Which of those areas concerns you the most?"
"What have you tried in the past?"
"Can you be more specific?"
"What examples come to mind?"
"Why do you think you saw the result you did?"
"How much do you figure that has cost you?"
"What do you hope to achieve?"
"What has worked for you in the past and what hasn't?"
"How much are you willing to invest to solve the problem?"
"How do you see me helping you?"

Are you Customer-Centric?

Most marketers think they are customer-centric, when in fact they are not. Take this test, just pick up any piece of sales literature.

If the headline features your company name subtract 5 points. If it features a customer issue, add 5.

If half of your lead paragraphs begin with company name, subtract 5 points.

If more than half your lead paragraphs begin with customer issues, add 10 points.

If there are no named customers, subtract 5. If there is at least one named customer, add 5. If you name three customers, add 10 points.

If your photos or imagery features your company subtract 5, if they feature customer situations, add 5.

Tally your score:

25-30 congratulations, you're leading in customer centricity!

10-20: It's pretty much about you.

Less than 10: It's ALL about you.

It's easy to change! Here are some examples of the difference a few simple changes in wording can make.

BEFORE: New research by Global Data reveals significant opportunities for retail banks to build customer loyalty and drive revenue.

AFTER: Retail banks can realize significant gains in loyalty and revenue by consulting new research from Global Data.

BEFORE: At Cyber Systems, we aspire to be our customer's most valued partner in helping them achieve customer-driven business results.

AFTER: Customers across the industries and levels of government are driving positive, customer-driven results with solutions from Cyber Systems.

This one isn't bad, but a few simple changes makes it all about clients.

BEFORE: For 75 years McKay has helped business leaders address their greatest challenges, from reorganizing for long-term growth to improving business performance and maximizing revenue.

AFTER: Business leaders have looked to McKay for everything from reorganizing for long term growth to improving short term revenue opportunities. And they've been doing it for 75 years.

If you make it about them, you will reap the rewards.

Shoestring Merchandising Tips for Retail Store Displays

Upgrade lighting whenever you can. Retail store windows especially need to be well lit. There are some great little halogen spotlights out there that are inexpensive and easy to install. They are terrific for highlighting display areas. Just make sure they are installed safely and the cords are unobtrusive.

An inexpensive can of paint can be used to paint your fixtures to match, or touch up chips and keep things looking new.

Fabric and paper are two valuable display helpers. Use them under or behind a display to provide a backdrop, use a scarf to add color and movement to a static arrangement. To avoid a busy look, stick to a few colors and textures that complement your store design and merchandise.

Use magazines as a source of ideas for displays. Find time to go to the library so you can browse for free. Look at do-it-yourself magazines from hardware, home decor magazines for giftware and housewares, etc. The full page ads, feature stores and new product listings are helpful.

Take a seminar or spend a couple of hours with a retail consultant to learn some display and merchandising techniques.

Pretend you are a customer and take a look at your store front. Try to see the store as the customer would see it. What do you notice? Are you struggling to get customers to come into your store? What do you need to change to attract them?

Sit down and make a list of adjectives that describe the image you want to achieve for your store. Before you make merchandising plans, check your list to stay focused. A great idea in another store won't necessarily fit your image.

The Value of Friendships

Many retailers go to a lot of trouble making their customers feel like "guests." I'd like to suggest that they would be better off trying to forge friendships.

Treating your customer as a guest isn't a bad idea, it's just short sighted. A guest may be pleased and satisfied with a particular visit, but it doesn't translate into the same affinity and desire to return again and again, that is felt when visiting a good friend.

Friendships are special things. You go out of your way to see friends. You care about their health, what they need, and you enjoy their company. Guests are frequently unwelcome and sometimes they know it. Friends are rarely unwelcome.

It takes two to create a friendship. Retailers have to get to know their customers and listen to their concerns in order to establish the trust necessary for a strong, loyal, long-lived friendship. At this moment, hundreds of retailers are trying to capture loyalty. Retailers understand the concept of repeat business and want to do what they can to get it. Both online and offline stores, from Amazon.com to Wal-Mart, use a variety of tactics to get to know their customers' habits.

Statistics indicate that profits can be increased by 25-125 percent just by retaining 5 percent more customers. With that in mind, it's no wonder that loyalty, guest and personalized programs are becoming big business. They all share the same basic goal of capturing market share and gaining repeat business. Smart retailers should be looking at these programs as a way to turn their customers into friends.

It takes patience. It takes more than one visit. However, as friendships develop, great things start to happen. The increased loyalty brings referrals (new friendships). It makes marketing efforts more efficient and effective. It can help a retailer gain co-op advertising from vendors designed to meet their friends' needs. Friends visit more and spend more because they know that this retailer is a friend who cares about what they want.

Friendship is the most effective branding a store can ever use. It isn't loyalty programs that set retailers apart from their competition, it is friendships.

The Value of Customer Interaction

Friendship is the most effective branding a store can ever use. It isn't loyalty programs that set retailers apart from their competition, it is friendships. How can retailers build friendships with their customers?

Friendships are forged from human interaction. Getting rid of the cold and impersonal, and adding the personal touch is the way to recognize every shopper as an unique individual. By valuing their customers' feelings, tastes, needs and desires, retailers create friendships and build customer loyalty.

What are retailers doing to interact with their customers? Gwen Moran, president of Moran Marketing Associates, explored several ideas for Entrepreneur Magazine, including one from a florist friend, who "keeps a card file on each of her most frequent customers, recording the colors of their home decor, seasonal flower preferences and so on, so she always delivers the perfect arrangement."

Another great way to get customers back into a store is to offer classes and workshops. Fantastic for both interaction and showcasing products, these hands-on activities are big hits with customers. Michaels, an arts and crafts retailer, offers classes on everything from floral designing to tole painting. In addition, they offer project worksheets, demonstrations, and make-and-take projects to get their customers, and their customers' kids, excited.

Home improvement giant, Home Depot, offers project information on their Web site. They also give their customers a chance to come in and participate in projects like building a deck at the store before tackling it at home.

In the flooring industry, on of the most popular events is a customer appreciation day or contractors night where the vendors present their product and show demonstrations on how it is used. Remember contractors are the life blood of your business, not only do they buy products for themselves and setting their jobs, but they bring their customers in to their favorite stores to choose tile and other flooring products.

Many retailers, large and small, brick-and-mortar and pure-play, have found ways to build friendships. From letting a customer try a product in the store before they buy it, to soliciting feedback on products and giving customers a way to share their experiences with other customers, retailers are treating customers like friends, not just guests.

Retailers find that as friendships develop, great things start to happen. The increased loyalty brings referrals and new friends into the store. Customers start stopping by more often just to see what's going on and what's new. Both retailers and customers benefit from the interaction.

Eight Things to Say to Keep Your Customers Coming Back

1. "I'll keep an eye out for other things that may interest you." A customer buying a product or service is in a pure one-shot deal. Taking note of what they bought and letting them know that you're on the lookout for like items is a natural enticement for them to return. When you do that, you're acting as a resource for them, giving the customer a reason to come back is why they do come back.

2. "Do you know this item is on sale?" Recently, a buddy of mine stormed back to an electronics store after he found out that the software he bought on Saturday was 40% off no more than 10 hours later. Yes, he came back -- but for the wrong reason. Go to bat for your customers. If you know something is a particularly good value, share your insight. Likewise, if something's going to be cheaper in a day or so, urge them to hold off until the sale takes hold.

3. "We don't have it, but the folks down the block do." Referring business to someone else, particularly a competitor, can seem as pleasant as getting a splinter out with a pick axe. It's a natural inclination to try to make a sale whenever possible, but don't bypass the value of pointing someone elsewhere. Few actions craft a more effective image of trust, confidence, and an overriding interest in the client's needs -- attributes that will likely bring customers back to your business.

4. "This is going to cut your costs by 50%." Or "half," or words to that effect. One of the most effective means of cementing a relationship with customers is to be as specific as possible. Letting them know precisely what's in it for them will bring them back, if for no other reason than many appreciate a business which spells out exactly what it does and why it's worth what it charges.

5. "Let me give you a hand with that." This phrase personifies a business that consistently goes above and beyond. Whether it's helping someone carry out packages to a minivan or simply getting the door for a client loaded down with products, a clear message that you're willing to help out however possible sticks in others' minds. And that can often lead them right back to your door.

6. "Go ahead and try this out." Giving a client or customer a small taste of what your business has to offer is a terrific way to bring them back for more. If, for instance, your business sells pricey software programs, give a prospective customer a sample disk or if you have a service-based business you can offer a free initial consultation, like a lawyer would.

7. "This [sale or deal] is good until the fifteenth." Even a customer riding the fence on a particular sale can be moved to come back if she knows that, come a certain date, the deal is gone.

8. "How ya doin' Jeff?" This last bit of advice, commonly known though it may be, makes the list based on personal experience. To be blunt: I don't really like my bank. It's not particularly convenient, the charges are occasionally mysterious, and I'd change in the beat of a gnat's heart were I not so lazy. But there is, admittedly, another reason I stay put. Every teller in the place knows me by name and consistently greets me in that fashion. That may seem like enjoying the appetizer only to throw up the main course, but it means something to us all when someone takes the time and effort to remember who you are. If yours is a relatively small operation, try to call your customers by name. If there are too many faces coming and going to make that practical, at least single out a few key names. If they like what you do, that can certainly keep them coming back. And, like me, even if they're not your biggest fans, remembering someone's name can make a big difference!

Better Customer Service to Increase Sales

We all think we are doing well with our own customer service. With so much information available on customer service, why is service still one of the biggest complaints by customers? What is the reality? Do customers expect more than is realistic? Is it simply that good service is taken for granted, but one incident of poor service is blown out of proportion?

Perhaps we can be blind to our own mistakes. Are you failing to look at your store from the customers' perspective? Are you satisfied with service that is just 'good enough' because you have so many other concerns to attend to?

To gain insight into some of these questions, I decided to go shopping. I resolved to visit a variety of different retailers in my community to get a sense of the level of service customers receive. Traffic seemed slow for a Wednesday afternoon, but was likely pretty average for this time of year. In general staff was lean and occupied with re-stocking and tidying chores. My impression was that none of the stores I visited would be considered to have 'bad' service, but in general the sales staff were a little aloof. They were visible, available to assist when necessary, and were competent when helping customers, but something was missing...

Most of the sales associates I saw lacked energy. They were quite willing to help anyone that looked like they were going to buy. They were not unfriendly, but no one appeared to be interested in actively selling, or providing more information than was specifically requested. In no case was I greeted within the first minute of entering a store.

With so many retailers providing similar products, stores need to differentiate themselves with customer service. Here are three great ways you can make your store stand out from the competition:

1. BE ENERGETIC

Your store needs to exude energy to attract customers. When traffic is slow employees tend to slow down as well. There is less of a sense of urgency in tasks, and the atmosphere seems a little laid back. This can be perceived by customers as being less interested, or aloof. Rather than fall into this trap, you need to keep the energy level high. Customers will be more attracted to shop in a store where the atmosphere is dynamic and positive, than one that is dull and lifeless.

2. BE SELLING

Your sales associates need to be actively selling - not just processing transactions. You can't just depend on the merchandise to sell itself. Train & re-train your staff in the basics of selling: greeting, asking questions, offering product knowledge & benefits, making suggestions, closing the sale and thanking the customer. Practice turning those 'browsers' into 'buyers' now, and your staff will be well-prepared for the busy times.

3. BE PERSONAL

If you want to stay ahead of the game, you need to be actively interested in your customers. Encourage your staff to get to know customers personally by name, and to engage in friendly conversation. Developing genuine relationships with your customers will do more to encourage repeat business and loyalty than any advertising campaign or loyalty card.

Think about the level of service in your own store. Instead of asking yourself if your business offers 'good' or 'bad' service (no one wants to admit to providing 'bad' service) ask yourself if you could do more to use customer service as a tool to increase sales. Just one more sale each day can add up to great sales at the end of the month!

Boost Sales in a Tough Economy

Considering today's tough economy, we decided to focus the Barwalt Advantage's space on ways to assist you with dealing with the issues at hand. We consider ourselves your partners and friends in the industry so we have been looking for information and ideas that we hope you will find useful as we all look for ways to be the best our companies can be in these challenging times.

As the economy slows, it's tempting to cut your sales and marketing budget. A better idea is to reassess the strategy. But watch out for the most common sales and marketing mistakes. If you are considering cutting your marketing and sales budget, due to the tough economy, why not take some time out to rethink your strategies first. New technology means you can reach more people, more cost effectively. Here are 14 common mistakes entrepreneurs make in times like these. Some are classic mistakes made from time immemorial, others apply directly to 2008.

Mistake 1: Entrepreneurs still confuse sales and marketing. Entrepreneurs often excel at marketing but are not so good at selling. Why? Selling focuses on the needs of the seller who needs to convert their product or service into hard cash. Marketing focuses on the need of the buyer -- satisfying the needs of the customer. Successful entrepreneurs are usually very market-focused and very good at satisfying the needs of the customer. But developing the skills to sell means acquiring a completely different skill set. What do the best entrepreneurs do' Keep the two functions separate, but ensure there is intensive knowledge sharing as the internet changes the roles of sales and marketing.

Mistake 2: It costs too much to get to the customer. This is a common mistake made in the small and medium business market. As you can not rely on customers finding you, you must find the customer. A key part of the strategy is to find multiple channels to market.

Mistake 3: Trying too few ways to get to market. Many companies should be trying out numerous paths to market, using the internet, a sales force, distributors or the channels of larger competitors or customers. While the multi-market approach can work, it can also be expensive.

Mistake 4: Not valuing "selling" skills. Be prepared to change quickly if you're not getting the results you want. Make sure you sales force is the best out there, trained not only in the art of selling but also experts on your products and services.

Mistake 5: Providing no compelling reason to buy. Do you have the best products in the marketplace? Products that people would die without, if they could not get hold of it right now! If a customer has a choice between a lot of products or does not have a compelling need to buy your product, your company will not grow fast. As the discretionary dollar increasingly stays in the wallet this year, marketers may need to remind clients that their products are essential, not a luxury. Watch out that your marketing team this year does not develop "feel good" ads that lack triggers to help the customer make the purchasing decision.

Mistake 6: Overcomplicating the product or the service. Keep it simple. Often entrepreneurs who come in to turn around companies say the first thing they did was cull back the number of products and simplify the offering. The explanatory literature accompanying products also needs to be presented simply by professional copywriters. As time-poor people increasingly scan information, lengthy explanations on how things work that is bogged down with product features are out.

Mistake 7: Failure to make the most of email marketing. Email marketing is an art. Develop your database continually by offering prizes, competitions and give aways. Work out the best time and frequency to target people. Use your offline advertising to drive people to sign up to your database. Also, if you do use the internet for sales, remember that a paid search campaign is critical. As words get more expensive, make sure you have an expert bidding for the right words.

Mistake 8: Marketing in short bursts. Don't. Keep your name out there constantly, any way you can. Highly successful entrepreneurs develop very close relationships with the media. They can be relied on to give comment on an issue, be launching a new way of doing business, or providing off-the-record gossip. It is a very cheap way to get your message continually out there.

Mistake 9: Taking word of mouth for granted. People will tell others all about your great products and services; right? Well, don't take it for granted. Use "Send to a Friend" campaigns, viral campaigns or ambush marketing.

Mistake 10: Letting customers speak to machines instead of people. No explanation needed.

Mistake 11: Ignoring new ways to advertise. It is becoming more popular to place your advertising where your customers are and when they are in the right frame of mind. New trends range from putting your name on coffee cups, street umbrellas and even naming hiking tracks after your brand, as well as having your name on a street sign when you sponsor a section of "clean street" in your community.

Mistake 12: Not fighting hard enough when a major client is walking. Never take a major client for granted. And never accept them walking away. Entrepreneurs tell stories of working for two to three months for nothing in order to make up to a client. And they never regret it.

Mistake 13: Being cut out of the complaints loop. If you don't know if customers are complaining, because someone lower down the food chain is taking the calls, change the system instantly. Either receive a regular report on complaints or ask for complaints to be brought to you directly.

Mistake 14: Lacking integrity. As the economy becomes more difficult to read this year, consumers will turn to trusted brands. Make sure your brand is seen as credible and your company has integrity.

Shoestring Marketing -- 50 Great Ideas for Retailers

Small business owners can easily get too involved in the day-to-day operations of their retail stores to spend any time brainstorming marketing ideas or promotional events. Some retailers worry that marketing is too expensive, others may find it too time consuming. Without announcing who you are and what you sell, how will anyone know? Here are 50 marketing ideas for retailers.

Create a calendar for customers with your store's name and address on it.
Print the products you sell or services offered on the back of your business cards.
Always carry business cards with you. Give them freely and ask permission to leave them in places your target market may visit.
Include customer testimonials in your printed literature.
Develop a brochure of services and products your store offers.
Join a trade association or organization related to your industry.
Print a tagline for your business on letterhead, fax cover sheets, e-mails and invoices.
Have a monthly drawing for a product or a gift certificate. Use the entry forms to collect customers' mailing addresses.
Develop a website to showcase your products and services. Use a memorable URL and include it on all marketing materials.
Conduct monthly clinics about a product or service you offer or schedule semi-annual seminars on related "how-to" information for your industry.
Promote yourself as an expert by writing articles or tips on topics related to your industry and then submit them to the local newspaper, trade journal and other publications.
Place balloons outside of your store, change colors and locations often.
Host an after-hours gathering for your employees and their friends/relatives.
Provide free T-shirts and hats with your logo for your staff to wear.
Send newsworthy press releases as often as possible.
Create an annual award and publicize it.
Create a press kit and keep its contents current.
Develop your own TV show on your specialty and present it to your local cable station or public broadcasting station.
Use an answering machine or voice mail system to catch after-hours phone calls. Include basic information in your outgoing messages such as business hours, location, website, etc.
Join a Chamber of Commerce where you can network with area business owners.
Hold an open house. Invite prominent city officials and the press.
Get a memorable local or toll-free phone number.
Place ads in publications your market reads. Be sure to reach the non-English speaking market as well.
Distribute specialty products such as pens, mouse pads, mugs, hats, t-shirts, and key chains with your store's logo.
Advertise in creative locations such as park benches, buses, movie theaters, coupon books and the back of ticket stubs.
Improve your building and in-store signage.
Have a free coffee and doughnuts day, like on Monday or Friday.
Give a speech or volunteer for a career day at a high school.
Sponsor an Adopt-a-Highway area in your community to keep roads litter-free.
Donate your product or service to a charity event or organization.
Create a loyalty program to reward existing customers.
Host an annual or semi-annual Customer Appreciation Day.
Have a Yellow Pages ad listed under your main industry and in related categories.
Create an opt-in email or print newsletter for your customers. Fill each edition with specials, tips 'and other timely information, as well as the customer of the month (see #47)
Send hand-written thank you notes to important customers every chance you get.
Use brightly colored envelopes and unique stationery when sending direct mail pieces.
Show product demos or related videos on a television on the sales floors during store hours.
Teach a class at your local adult education center.
Create window displays in locations away from your shop. Airports, hospitals, and large office buildings occasionally have display areas they rent to local businesses.
Team up with a non-competing business in your area to offer a package promotion.
Pick the slowest day of the week to hold a one-day sale.
Offer your customers discounts for each referral they provide.
Provide extra customer service training for your staff.
Sign up for a newsletter or join online discussion groups in your industry.
Put an interesting graphic about your business on your car and all company vehicles.
Pair up slow moving items with related products and repackage as a special buy.
Choose a regular customer to spotlight as a Customer of the Month. Create a brief write up to submit to the local newspaper about the customer and be sure to give him or her a copy of the article as well as have one framed to hang in the store.
Create a warm, welcoming waiting area for your customers and make sure there is a place to sit.
Start a blog. Write about your industry or detail in-store happenings.
Sponsor a local youth or adult sports team.

The Value of Respect

Are we fast approaching a world of retailing where every consumer is just a walking profile that retailers will be able to target with precision? How can a retailer use its customers' data in a way that respects their privacy and their individuality?

In redefining the way consumers shop in the future, retailers need to walk the fine line between respecting their customers' time by presenting a targeted selection and invading their customers' privacy. Retailers who are able to use their loyalty and customer relationship programs wisely will become the big winners.

In order for a retailer to become a loyal friend they first need to become a brand, and then infuse their brand with human qualities. Humanized retailers create an atmosphere where customers are able to relate with it and form emotional attachments, much like the way they relate to human beings.

Retailers who humanize their brands react to their customers in a manner that shows their own humanity. These retailers respect the customers and communities they serve because it is a sound business decision and the right thing to do. They seek to belong to the community because the community is made up of their customers and potential customers. As part of the community, retailers gain respect as "one of us," who live and breathe in our neighborhoods.

Communities can be geographic or demographic, virtual or three-dimensional. As long as it is a space where interaction takes place, there is the potential for community. In building their stores or Web sites to reach their community, retailers can begin the branding and loyalty process.

As members of the community, retailers gain entry into their customers' lives. This allows the retailer to begin the courtship of friendship and personalization. By showing respect, interacting, providing help and information, and respecting customers' privacy, the retailer becomes a friend.

Once a friend, customers are willing to open up and share their private information. Information that the customers give to help their friends get to know and help them, and in return, the customers help the retailers with their loyalty. After all, everyone is more loyal to those they have shared their secrets and private information with, and have proven themselves worthy of the honor.

Using a customer's private information to show her exciting and interesting solutions and meeting her unique needs wins friendship. It is about personalizing, not targeting. It reinforces the retailer's brand and the friendship with the customer. It creates a win-win for both retailer and consumer.

In being seen as a unique and special person inside a larger community that both the customer and the retailer belong to, the targeting process is humanized. It becomes desirable personalization instead of an annoying commercial targeting tactic. Personalizing a friend's shopping experience enforces branding.

Retailers need to remember that their brand is their personality, what makes them unique and personal. Retailers who shift the focus of their marketing away from their brand and onto consumer targeting may face the loss of their community appeal and find out that they no longer belong.

Recession Proof Strategies for Retail Store Owners

Economic slowdowns are painful for most businesses. Customers cut back on their spending and focus on buying just the necessities. Retail stores take a big hit, with lower sales, reduced profits , less customers, and cash flow difficulties. So what can a retail store owner do to not only survive but make a profit during an economic slowdown? Before looking at what steps to take, it's helpful to go over the top reasons retail stores fail. Retail stores go out of business due to the following reasons:

Running out of cash to pay the bills
Too much inventory or having inventory no longer in demand
Margins that are too low to cover operating costs
Expenses being too high or out of control
Not enough store traffic/customers
Not converting enough store traffic into sales

In an economic slowdown, retail owners must first understand what steps they can take to shore up any weaknesses in their businesses and then immediately take the necessary steps to put their business in the best position to weather the downturn. Let's now discuss what steps you can take to recession-proof your retail business.

Pay close attention to what your customers are buying.

Are they buying mostly on price, or are they buying quality items? Based on your findings, you may need to adjust your merchandise mix so that you do not stock too much of what is not selling. Having too much slow selling inventory will tie up your cash.

Pare down your inventory.

Cut your existing inventory levels to free up cash. Stock primarily your best selling items.

Keep your inventory levels low

You want to avoid tying up your cash on items that may or may not sell. Consider placing inventory orders more frequently (but in smaller amounts), even if you have to pay higher shipping costs so that you are not stuck with items that are not selling.

Clear out your slow sellers.

Put any slow moving or "dead" inventory on sale and clear it out as soon as possible, even if you have to sell it for less than what you paid. Cash flow is vital during slower times. Having more cash on hand is more valuable then having this inventory on the floor or in the back room. Plus, customers are looking for bargains to stretch their money further and will respond to your closeout sale.

Buy better.

Ask for any available discounts when buying merchandise from the manufacturer or wholesaler. Keep in mind that they likely have deals available due to the slower economy and are in need of moving merchandise, just like you. See if any cash, seasonal, volume, or early ordering discounts are available. Be sure to ask for free or reduced shipping costs.

Lower your shipping costs.

Ask manufacturers and wholesalers about ways you can save on shipping. Receiving your inventory shipments a few days later than usual may save you money on your shipping costs.

Keep your marketing budget constant.

The surest way to kill your retail store is to slash your marketing and advertising investments. Marketing and advertising are not cost centers. They drive your store traffic and are essential to your store's survival. Many short sighted retailers view marketing as a cost to cut and scale back in this area during slower economic times. The good news is that your marketing will pack more impact as your store's marketing becomes more visible due to less clutter.

Devote more time to marketing and customer acquisition.

Don't leave this area to chance. If you are not getting enough customers, devote more time to driving store traffic. This is one of the highest leverage tasks you can involve yourself in. Keep in mind P.T. Barnum's quote: "Without promotion, something terrible happens: NOTHING!"

Only engage in marketing and advertising that you can measure.

Image advertising and non-targeted marketing needs to be eliminated. If you can't measure its immediate effectiveness, don't do it. Your cash flow position is too important to spend money on ads and marketing that don't show quantifiable results.

Explore low-cost marketing strategies.

Learn and understand low-cost marketing strategies that work for independent retailers. One very effective way to drive customer traffic is to partner with other non-competing businesses that sell to your same target market and send endorsed mailings to the customer lists of each business. You can reach known buyers this way for the cost of a letter and postage.

Focus on converting store traffic into sales.

Every customer opportunity counts. You must work each customer opportunity fully in order to get them to buy. Customer traffic is more valuable during slower times and need to be treated as such. Instruct your staff to spend more time identifying customer needs and recommended products to fill these needs. Give your staff the tools to close more sales by working with them on selling strategies.

Don't run continual sales or ongoing discounts.

When money is tight, customers respond to sales and discounts. Retail owners need to be careful not to get caught in the trap of continuing to run permanent sales or offering ongoing discounts across the board. Doing so will depress store margins and result in less money to cover your expenses. Sales need to be used strategically in order to insure that your business is profitable.

Don't cut your prices.

Once you cut prices, you will have a hard time raising them without upsetting your core customers. Instead, offer on occasion discounts and coupons for dollars off. Coupons can be an effective way to offer discounts, as consumers put more value on them when money is tight.

Bundle similar products.

Package products that go together, such as a bicycle with helmet, lights, and bike rack into a package price were the customer can see the savings over purchasing them separately, giving them a great deal. This allows you to make more total profit on the sale (even though your overall margin is lower) than if the customer only bought one of these items.