Customer Service is a Contact Sport. How well are you playing the game?

The Ultimate Customer Experience. You think you are giving it....would your customers agree?

We all want to provide stellar service to each and every customer, every single day.  After all, Extreme Customer Service is the one area where brick and mortar retailers have a big advantage over their Big Box and E-Retail counterparts.  Of course, we have all heard stories about the rude or detached shop owner. Where is the disconnect?  Diane Gilleland, who is a respected author on matters related to social media, crafting and more, once did a blog post asking her readers for "Craft Store Horror Stories" and she was inundated with responses.  Some were laugh out loud funny, while others were simply pathetic.  A few typical comments:

Jen laments the treatment from her neighborhood yarn shop: 

It never fails, when I want to feel like an inept crafter, all I have to do is visit our LYS. Whenever I go in to browse yarn, I get the evil eye from the "usuals," slouched in randomly placed easy chairs, (some directly in front of shelves and alcoves, making it impossible to examine an entire row of yarn), knitting at rapid pace with snarls that read: What is SHE doing here?

Also, the folks at our LYS would rather cough up yarn balls than help anyone locate a particular fiber or assist someone with understanding a pattern or project. I invited a coworker to visit the LYS during our lunch break. My coworker brought a pattern she had printed from the internet. We spent 15 minutes admiring yarn before my coworker asked the YS employee, standing idle at the register, if she could recommend yarn for her pattern. The employee examined the printed pattern and replied in a monotone: "This pattern is from Hobby Lobby. It requires synthetic yarn. WE don't sell synthetic yarn." She then turned her back and went off to admire the work of some snarling person slouching in an armchair. 

Say it, Sistah!  Jen's experience mirrors the one I have every time I walk into one of the two yarn shops in my area.  I frequented the shop a number of times and and spent money on every visit but the last, when I finally determined that I would be damned if I was going to give any more of my hard earned money to such a sourpuss.

Kelly jumped on the bandwagon with the following observations:

Well, I hate to take another blast at LYS's but some of the worst customer service I have ever experienced is in three different ones I have been to:  

1. The owner of a local store [since closed] used to spend *all* of her time either talking/complaining loudly on the phone or yakking loudly with someone in the back of the store. I flipping hate that. You can park your personal conversation for the 15 minutes I am in your shop. If I'm there for much longer, you can talk quietly.

2. I once went to an LYS where the proprietor literally stood behind me the entire time I shopped and then would have the driving need to "re-stock" directly in front of me, wherever I was standing. I was totally confused by this behavior until my friend explained after we left: She thought I was going to steal something. (I was *shocked* by this revelation, by the way. Not to sound all old lady about it, but: "Well, I never!")

3. I rarely go to this other LYS but sometimes I find myself in the neighborhood and I check it out. And regret it. The workers are pretty friendly, but the place is a MESS. There is yarn everywhere. Half-empty bags out on the floor and filling every surface. The books (for sale!) are stacked into falling-over piles. It's such a bummer. They sell beautiful yarn, but clearly do not care about the customer experience. I don't want to buy expensive yarn that someone else was stomping all over earlier today. 

Yikes.  Personal phone calls, Aggressive Theft Prevention, Messy Stock.  Who would want to spend time or money in such a place?

The funny thing is...I am willing to bet that the retailers described above would not recognize themselves. They figure that they are doing a bang up job and blame lagging sales on the economy/the competition/the staff.  Silly girls!   Honest introspection is a wonderful thing...........if you dare!  

Meet Carol Garfield, a Crafty Retail Rock Star who has turned Customer Service into an art form!  Carol owns Dancing Beads in Medford, Oregon.  Her story is one that will resonate with you and she will share more about her journey next week.   Carol loves what she does and she does it well. The store ---about 600 square feet---  is her only source of income and Carol mentioned that she says "thank you" to her little shop every morning when she walks in the front door.   I believe it.  Her enthusiastic and infectious personality is permeated by a genuine attitude of gratitude. 

  

When asked about the key to her success, Carol noted that she is constantly looking for ways to improve the customer experience.  She opened her first store in 1995, with no retail experience.  Although she didn't know much about owning a retail store, she knew how she liked to be treated while shopping in a retail store.  Carol observed that every Nordstrom's store has a banner sales staff and she emulated the Nordstom customer service model.

Her secrets include:

Know your customers and greet them by name as they walk through the door.   It is important to remember a little something about each one...trips they have taken, important events in their lives, the details of their most recent project.  For example, if an item comes in that might be of particular interest to a customer, Carol will make note of it so that she can immediately draw the customer's attention to it when she next visits.  The message: "You matter enough for me to remember you."  Good business with a side of warm fuzzies!

 Give something away every day.  Carol believes in the power of free and she strives to give something away every single day.  The customer who remembers that she needs two feet of chain just after the sale has been rung up might find the chain in her bag---no charge.   

Think fast and go for the win-win.  Lots of  retailers "get attitudinal" when customers ask for discounts/special pricing.   Not Carol...she just figures out a way to make it work for her, too.  For example, she was approached by a very good customer seeking to purchase gemstones from Carol's vendor.  Eek!  

[insert AWKWARD MOMENT here]

Although hesitant, Carol was determined to craft a win-win.  After all, the customer was savvy and in this internet age it is fairly easy to find wholesale sources.  Carol wanted to preserve the relationship more than she wanted to make the one sale.  So........she talked to her vendor and established some ground rules.  The vendor spent five hours with the customer and wound up selling her strand after strand of beautiful gemstones.   The customer got a great deal, and the gemstone dealer sent Carol a check for half of his profit.  Bottom line:  The customer saved a little while Carol and the Gemstone Dealer made a little.  Everybody wins.  Carol said that she was happy to go for the slow dime rather than the fast nickel and the customer is still a customer.  Well done, Carol, well done!

Avoid the Retail Death Spiral! Take steps to ensure that your Brick and Mortar Store remains viable in an Internet World!

Many Specialty Craft Retailers are running scared.  They hear the evening newscasters report that the Recession is over and that The Recovery Has Begun, but they aren't feeling it.   Some of their customers don't appear to be feeling it, either.  I speak to a variety of store owners with a range of specialties:  Bead, Yarn, Fabric, Scrapbooking.  Reports of fourth quarter sales that fell below same quarter 2009 are not uncommon.  

Despite cheerful forecasts to the contrary, the challenges are very real.    While some experts are touting the economy  as "A Jobless Recovery,"  such a  recovery  works best for those who are gainfully employed.   For those with no paycheck....not so much.    These customers will not stop crafting. After all, like any addiction, the desire to craft will be sated and I have the yarn/bead/fiber stash to prove it.  Instead, customers will choose to be much more discriminating with their dollar.

You know the scenario:  Your beloved customer will hop on her computer and she will Google "best price pure pima cotton yarn" and she will find it.  Lots of it.  18,300 results in .24 seconds, in fact.  Much of it will be priced significantly below what it would cost her in your store---with free shipping and no sales tax. Sigh.  Your best Vendors---the ones who previously sold only to Brick and Mortar stores, are now offering their lines to Internet Retailers. They are running scared, too and, like you,  they are in the business of making money.  They see the writing on the wall!  It is predicted that 11 million American Households will make their first online purchases this year!  Internet retailers are selling lots of yarn...and beads...and fiber.  The Economics and Statistics Administration of the Department of Commerce reported that On-line Retail sales were up 16.4%  in 2010.  Hmmmm.....maybe that was where all the money went.  The reality is that your competitor is not just the shop across town....it is every shop at the click of your customers' fingertip! 

What is the Crafty Retailer to do?

Accept the reality of the future and adapt to it.  There are shops that are doing well despite the challenges facing them.  There are stores in depressed geographic areas that continue to shine, month after month. There are owners who are dealing with divorce/aging parents/ illness that manage to get it done.  It definitely ain't easy, but it is do-able.  

Master the media needed to survive!  Your website MUST be more than a brochure site---it should be an active revenue stream. Fortunately, it has never been easier to have an e-commerce site---it takes time but it doesn't take much money.    You don't need to do everything at once.  Rather, start uploading the more unusual inventory.  For example, lots of E-Tailers sell crystal bicones, so your site would not easily be found by a customer looking for bicones unless you were willing to spend a ton of cash on Pay Per Click Advertising.  Instead, feature harder to find, trendier items that will stand out within the Search Engines. 

Sign up to become a Fulfillment Partner with Shop-a-Tron.   It is a great concept.  Many manufacturers "sell" their products on their website.  The manufacturer does not actually ship the order; rather, the order is sent to a retailer who carries the line.  It is a great way for retailers to take advantage of the internet market for very little effort.  I have talked to several yarn store owners who report that some days their only sales were the Shop-a-Tron Sales!  

Start Blogging!    Again, there is a short learning curve but the payback is so worth it, provided you use the blog for more than a platform to hawk your product.  Blogging is about engaging the reader, not selling to the reader, so focus on information that will be helpful or interesting to your audience.   Someone who does a google search for a free peyote stitch pattern might find just what she is looking for on your latest post.  She can then find your website and a new customer is born!  Blogging is a tremendous vehicle to enhance goodwill and create a crafty community for your customers.  Don't be shy!  While your customers like hearing about the latest shop happenings,  they also love to know what is going on in your life, within reason, of course.

Write informally---I tend to write the same way that I speak---so that your voice do not come across stilted.  Include a recipe or write about your current craft project or life beyond the store.  Include lots of pictures to break up the verbiage.  People tend to focus on short paragraphs rather than a lengthy missive.  You must be consistent to build an audience----blog weekly if you can.    A great way to prepare for the blogisphere is to find some blogs that are inspiring and follow them.  I just did a blogsearch for "blogs by retail bead store owners" and got over five thousand results.  You will see what works--and what doesn't---very quickly!  Reading blogs is a great way to keep on top of the industry, too! 

COMING NEXT WEEK: 

We are going to meet  two different CRAFTY RETAIL SUPERSTARS who will share some of their tips for succeeding when so many others are feeling the pain!

IN OTHER NEWS:

We  have space for three more participants in the current craft challenge: Felted Cuff.  The kit, pictured below, will be mailed out by the end of the week.  Pictures of the finished piece must be sent to me on or before March 15.  The kit is lovely...I had trouble capturing it in the photo...and includes a yummy mix of crystal stones, hot fix and sew on crystals, Swarovski yarn, hand dyed spiral fiber and more!

Shoot me an email if you want to participate!

Engage your Retail Community to Achieve Greater Sales and Profitability

Independent Craft Store owners face real challenges in the coming months.  Low priced internet retailers have made pricing and inventory management critically important issues, particularly with a stagnant economic forecast.  You are understandably hesitant to take chances on unproven new merchandise when dollars are scarce.  Worse, you are forced to lower your profit margin on the best selling basics to stay competitive.  The "pricing war" is a dangerous game to play...ultimately everyone loses.  The customer enjoys a short term benefit, but artificially low prices are unsustainable.  Stores close and fewer choices remain for the consumer.

The same customer who didn't mind paying higher retail prices when times were good is much more "price aware" now that her household budget has been slashed.  If she is looking for a commodity craft item  it will be tempting for her to order online at a better price.  I can't say that I blame her...the convenience and price point are mighty attractive.  I ordered 6 copies of The E-Myth through online behemoth Amazon this week...at a great price with free shipping.  I am already familiar with the product and don't have a local book store that I adore.  It was an easy decision for me.  Conversely, I would feel a twinge of guilt at the thought of not supporting my local yarn shop.  The twinge is enough to get me out of the chair and into the car to  purchase yarn that I could easily access online. 

What are you doing to ensure that YOUR customer will "feel the twinge?" Make it your mission to provide the best VALUE to your customer.  You might get beaten on price, but never get beaten on the "value add" factor! One way to do that is through education and access to information.  A Crafty Retailer  will actively learn new craft techniques and will SHARE THE KNOWLEDGE FREELY!


Too many craft stores become myopic in their focus.  The yarn store touts  scarves and sweaters while the bead store focuses on earrings and necklaces.  Sigh.  Ho Hum.  Boring.  There is so much more going on in the craft world!!!!  There is remarkable cross over as scrap booking techniques have found their way into jewelry making, as felt makers discover the beauty of bead embellishment, etc.  Moreover, many Crafters  are looking for innovative ways to use up their craft stash in a way that satisfies the need to create while respecting a tighter family budget.  That is, they need to be thrifty but are looking for the escape that crafting provides. Regardless of the economy, your customer still wants to forge a human connection, to learn something new, and to be part of a larger community.    So.....make it happen in a way that doesn't break the bank!  Look at your existing inventory and figure out new ways to use it!

Here are some easy ways to improve your crafty credentials:

Schedule a staff meeting and bring a stack of craft magazines that are slightly outside your genre.  The Stampington publications are always a good choice...innovative projects with good instructions. Note:  Although I advertise in these publications and draw inspiration from their pages, I am not affiliated with Stampington in any way.   Give every staff member a different magazine and quickly peruse them, marking the pages that make hearts beat a little faster.  Pass the magazines around, looking for craft projects that inspire and delight.  Watch as everyone gets excited and enthusiastic.  Now comes the fun part!  Assign employees the task of  becoming well versed in a particular project.  You provide the supplies, they supply the willingness to learn.

Calendar a date when that employee will educate the rest of the staff on the technique.  Do this once a month for the next six months.  Employee morale will improve, the team will become closer, and best of all, the creative energy will spill over to the customers. A bead store can easily schedule a class on creating altered tin art using much of the product on the floor, while a yarn shop can offer a stash buster class on making yarn mosaic lamp shades like the one created by The Crafty Chica at right.  Think outside the box to keep your customers coming back for more!   Worst case:  you will have a great time and will be in a better position to determine the viability of adding a new line.  Best Case:  you will expand the scope of your knowledge and add to your reputation as Crafty Messiah.    Yup, I feel the twinge.

Don't have any employees?  No sweat...engage your customers by encouraging them to join you on the learning curve!  Keep a jar by the cash register and ask customers to toss in ideas for future "skill building" classes.  Pick a new skill to learn each month via a random drawing and invite your customers and staff in for a skill building session where you learn the process together.  Ten heads are better than one.  You can charge a materials fee to cover the costs. These learning opportunities will go a long way toward  building a sense of community since your customers will feel an investment in your success.  Send out newsletters and encourage a party atmosphere...it will be a marketing bonanza!  Twinge, twinge.


The bottom line:  Challenging times mean that you must "up your game."  What was working for you before might not be working for you now.  The success of your business requires that you be creative and disciplined to refresh old inventory so that customers look at it with a new eye, offer classes that use existing product in a new way, and treat your customers like they are your friends.  After all, friends support friends, in business and in life! There is a big difference between experiencing a transaction and TRANSACTING AN EXPERIENCE.  What would your customers say about doing business with you?


IN OTHER NEWS....

QUICK PROMOTION IDEA:  Snag teen crafters!  My daughter and her friends recently enjoyed an afternoon learning to fix all of the cheaply made jewelry and clothing that they bought from Forever XXI.  The products look great, but wear very poorly.  Each girl had a drawer filled with broken jewelry parts.  RE USE, RE CYCLE, RE IMAGINE!  It was a great opportunity to spread the crafty love to a new generation of crafters, while subtly pointing out the value of quality workmanship. 

SPECIAL INVITATION for Tucson Trade Show Attendees!

I want to extend a special invitation to all of my customers as well as  everyone who is participating in my Nuno Felted Scarf Workshop!  Sign up for the Workshop!  There are  only a few spots left!

Please join me on Thursday February 4, 2010 for a FREE WORKSHOP on making Embedded  Felt Jewelry as well as a light lunch of Empanadas and Sangria.  The festivities are scheduled to last from 10:00 am  until 1:00 pm and all materials to the learn the basic technique will be provided ....NO CHARGE! 

Although you won't leave with a finished necklace, you will have the skills you need to complete it at home, and teach it thereafter!!!  SPACE IS LIMITED.  RESERVE YOUR SPACE NOW!

FLYING SOLO" Update:  Thank you to all of those brave independent retailers who do it all alone and have joined our little group!  The questionnaires have been  making their way to me and it is a blast getting to know you.  We still have a few slowpokes in the group...please return the questionnaires because the fun starts next week!

Focus on business and leave the emotion out of it!

Women are emotional creatures. We were designed that way! It makes us great nurturers, superior nest builders, and sometimes....very poor communicators. Yup, the extra dose of "warm and fuzzy" is a double edged sword. Women can --- occasionally, once in a blue moon, every now and then---let emotion impede sound business judgment. We let emotion take over and cloud rational thought: we permit a rude customer to ruin our day, view a competitor as an enemy, and say "Yes" because we don't want to offend by saying "No." It can be exhausting!

What is the crafty retailer to do?

Focus on business and leave the emotion out of it! Last week's post presented a real life challenge recounted by a friend. The comments and phone calls I received on the topic were fascinating. Here is the scenario for those who missed it:

A retail craft store owner hosted a FREE customer appreciation event which involved crafting, food, alcohol, and a gift for attendees. Customers had to pre-register for the event and one of the registrants was a "toxic" customer. You know the type...you secretly cringe when she walks in the door. Toxic Trudy is loud, rude, and socially inept. She comes to all the free events, but spends very little money. To make matters worse, Trudy is a small time competitor who teaches classes in your field. She has a history of telling other customers that she sells product X for less. The store owner is not a happy camper when Trudy is in the store. It raises her blood pressure and probably makes her long for a glass of wine or a Prozac IV. You get the picture.

Fast forward to the big event....the festivities are going well, folks are socializing and having a good time. Things start to go downhill when the proprietor observes Trudy passing out business cards to advertise her own classes. She whispers a request to Trudy to "please put away the cards," but the situation rattles her and the customer becomes indignant. The moment is awkward at best, customers noticed, and Toxic Trudy was heard complaining and lambasting the store owner to her friend, a shop employee. It cast a pall on the evening and frustrated the business owner, particularly when the employee opined that she "could see both sides." Ouch. I wonder if she would see both sides if she was no longer on the payroll, but that is a different issue for another day.

The audacity of the customer was impressive and, not surprisingly, those who responded to the post were appalled by her behavior. I chatted about it with friends and the response along gender lines was interesting. The females of the group jumped on it like a dogs after a bone. They got themselves worked up on behalf of the proprietor.

"Can you believe the nerve?
"Think of the money and planning that went into the event! That poor business owner!"
"What is that customer's problem?"

"What a bitch! I would have kicked her out on her ass then and there!"

And so on and so on. Voices were raised in righteous indignation, each woman expressing more outrage than the last. The sole male to comment did so only after repeated prompting from the gals: he simply looked up from his sushi and said "McDonald's wouldn't hand out coupons in Burger King."

The mental image made us laugh and it shut us up. It really was as simple as that...there was no emotive drama and most importantly...NO WASTED ENERGY! What was different about the way the man and the women responded?

The man looked at it like a minor business issue, not worthy of much focus; rather, one to be handled and forgotten. The women took the faux paux personally! I do it all the time. I have learned to fight the instinct over the years and it has made my business life much easier. Of course, in the interest of full disclosure, it has not yet become second nature. I have to constantly remind myself to "take the emotion out of it and process the situation analytically," but it comes to me at a much earlier point in the process these days!

Looking at Toxic Trudy's behavior in that light, I am confident that there was nothing remotely personal about it. Trudy appears to be a social misfit. My guess is that she behaves the same way everywhere....even at your competitor's place. She is an equal opportunity offender, as it were.

OK, so we have defined the problem, but what do you do about it? Roll back the clock a bit......

Trudy slithers into the shop while the festivities are in full swing, garnering a genuine welcome from you and the staff. You leave to get her a cocktail and upon your return you see her putting her business cards on the table where the customers are working. Fighting against every quivering instinct in your body....you are screaming in your head, after all....you turn to your guests and sweetly introduce Trudy yourself as you nonchalantly gather up her business cards. You mention that she teaches craft classes and then you turn to Trudy and suggest getting together later in the week to discuss the possibility of teaming up for some sort of promotional event in the future. All of this is done with a smile and sincerity. She is surprised by your offer and the discussion is over. Your customers have been watching the exchange and are impressed. Evening saved. Wow! That was not too hard! You are strong! You are powerful! Life is good!

UH OH!

You just realized something.....the evening will end and you have created an expectation . You don't want to work with Trudy on a joint venture. Heck, you don't want to have to ever see her again, you don't want to breathe her air, you don't want....OOPS! You are doing it again. You are being a woman. Sigh.

What's the crafty retailer to do?

Kudos to Cathy McKillip, owner of Wish Upon a Quilt, who offered this brilliant solution:

...I agree that the store owner was spot on in asking the person to stop handing out business cards. Because this person is so vocal, I would have followed up with an invitation to coffee and steer the conversation around how the two might work together on future events since the customer wants to reap the promotional rewards of hosting an event. Once the store owner explains splitting the costs/benefits of such an event, I would bet that she will not have further trouble with this customer. I frequently have customers come in and tell people where they might find something for less and I do not hesitate to interrupt the conversation and start discussing what the customers are working on etc. Seems to work when done with a smile.

The beauty of Cathy's plan is that it resolves the problem in a charming and gracious manner. It does not involve conflict. It brings about a win-win resolution without any of the negative emotional drama that seems to plague the female of our species. Cathy was thinking with an analytical mind to determine what was in the best interest of the business. Added benefit: think of all the time you saved! Now you don't have to spend all that time angsting over Trudy's gall. Your husband doesn't need to suffer through your replays of the debacle. Your girlfriends would rather talk about their problems anyway. Everyone is happy. Way to go! You crafted a win-win! [Insert sound of raucous clapping here]

Other News:
Congratulations to Far'ha and Tandy Chazar who won July's random drawing. The lucky winners will receive a copy of Diane Gilleland's eBook, Making a Great Blog: A Guide for Creative People. Look for an email download to be sent to you by Ms. Gilleland. Please contact me to verify that I have the correct email information to provide to her
.
True Confessions:
We are busy people with funny idiosyncrasies and weird ways of making life work. I am pretty obsessive compulsive about a number of things. Housekeeping is not one of them. Don't get me wrong.... the public parts of my house are always neat as a pin. However, I have secret pockets of chaos within the calm. For example, I have a Sock Bucket.

Yup....a Sock Bucket. Every time I do a load of laundry I find a sock without a mate (where do they all go?!!!!). Rather than take the time to find the MIA sock, I toss the survivor into the bucket. It drives my husband crazy, but I hold my head high. I am simply giving those socks an opportunity to mingle. Over time my kids start running out of socks and the bucket fills to the brim. My job is done...They have all found their match. Instead of knitting while I watch TV that night, I sort socks. The system allows me to ignore the socks on a daily basis and to deal with them when it is convenient to do so. My kids think I am weird, and my husband has taken to wearing flip flops more often, but it works for me.

What is your Sock Bucket? What do you put off/hide/ignore/wiggle out of in order to make your life work? Share your story and have a chance to win a package of hand dyed velvet fabrics!

Target your existing customer database to increase the bottom line!

There are certain items that are a permanent fixture on my daily "to do" list. These are typically among my least favorite tasks, so they never seem to get crossed off as "done." There is always a squeakier wheel in need of attention. Quitting time comes and I find refuge in the immortal words of Scarlett O'Hara: "I will think about it tomorrow." Unfortunately, tomorrow is often a repeat of today and the task remains sadly neglected.

Many specialty craft retailers are squeamish about Marketing. They got into the business because they were passionate about the craft, not about business. They know that marketing is important, but they don't deal with it. It is easy to let other business demands get in the way. They do not like being pushy. They don't want to annoy their customers. They know that they should schedule more promotions, but it seems like they never have time. They wanted to place that newspaper ad, but the deadline came and payroll was due. Blah. Blah. Blah. Been there, done that. OK, so the business is holding its own but the dismal economy is starting to impact the bottom line.

What is the Crafty Retailer to do?

Put on those big girl panties and DEAL WITH IT! Marketing doesn't have to be costly. It doesn't have to be scary. Start small by going after the consumer who already loves you---your CURRENT CUSTOMER! It takes significantly more time and money to cultivate a new customer than it does to market to an existing one. Surprisingly, many business owners focus on acquisition rather than retention. There is an assumption that once a sale is made, the customer will return. This is not always the case. Unless you are the only game in town (not likely given the close proximity of the Internet competitor!) your customers can, and will, forget about you. It is up to you to remind them about your cozy store, incredible product line, free classes, etc.

Follow these simple steps and you will see an immediate impact at the register:

1. Make a list of all of your customers. An excel spreadsheet is a cheap, low tech way to keep track of the data. Include name, address, phone contact, email contact. If possible, include pertinent details such as birthday, twitter ID, spouse's contact info, and shopping preferences.

2. Classify each customer and devise your plan of attack. I breakdown my customer list as follows:

PITA Customer
The juice ain't worth the squeeze. The PITA is the Pain in the A-- customer who is so toxic that you are well to be rid of her. Plan of Attack: Refer her to a competitor and count your blessings.

Marginal Customer
A marginal customer accounts for 1% to 24% of the sales volume. Plan of Attack: Plan to send her at least one email per quarter and make sure that you do it.

Solid Customer
She represents 25% to 75% of the business. Plan of Attack: Send her monthly emails, and make a phone call to promote big events. Follow through with the plan!

Superior Customer
She represents between 76% and 100% of the business. Plan of Attack: Weekly contact, via face to face interaction, telephone, or email. The follow through is easy here....this customer is always in your store. Three cheers for the SUPERIOR CUSTOMER!

3. Invite your superior customers to become a part of a store "focus group." You cannot possibly read every blog, peruse every craft site, learn every technique. Your superior customers love you and probably feel vested in the success of your establishment. Invite them in after hours. Provide food and drink and then let the brain picking begin! The benefits are tangible: you will gain valuable insight into what your customers are looking for in your store--what is working and what is not. Do you know what other crafts your clients are into? This is a good chance to find out! Your classes aren't filling up? This group will offer feedback. The focus group members will know that you value their insight and you will have turned each customer into a rabid fan! Send each guest home with a little gift for a job well done! Pizza: $30 Wine: $24 Gift: $40 Impact: PRICELESS!

4. Communicate with your customers. Seriously...real conversation, not the ridiculous "let me know if I can help you" mantra so common among sales people who don't give a darn. Find out what other crafts hold their attention. Determine what brought them into your store rather than to the competitor down the street. Did you just make a big sale? Follow up with a handwritten note thanking the customer for her business. Set a goal to send out just five "Thank you notes" a week and you will be amazed by the response you get from the half hour of time you invested.

5. Don't lose site of a lost or missing customer! If you haven't heard from a customer in a few months then it is time to pick up the phone and remind her that you are there and that there are exciting things happening in the shop. She might be taking a break from crafting and your call might be the gentle push that she needs. Her life might be too busy/stressful for her to come out and play, but she will remember that you cared enough to inquire when she is ready to jump back in.

A study by the Rockefeller Foundation revealed that customers leave for the following reasons:

Complaints were not handled effectively: 14%
Lured away by competition: 9%
Customer relocated: 9%
No special reason: 68%

NO SPECIAL REASON? What the heck does that mean? My guess is that the customer simply did not have a reason to stay! Benign neglect made it possible for them to forget about you. Ouch. Fight for 'em! They liked you once and they can like you again! Pick up the phone or send a "We Miss You" coupon to entice them to cross your threshold.

A slow economy simply means that you will have to work smarter. There is lots of money to be made---make sure that you get your fair share! Now if you will excuse me, I have some Thank You notes to write!


OTHER NEWS:
Need a vehicle for the emails we have been encouraging you to send? I have used Constant Contact for years and love it! I have no affiliation with the company, other than my experience as a satisfied customer. The customer service is outstanding, the templates are great, the learning curve is short, and the reports provide a wealth of information. Want a free trial? Check them out!


Congratulations to the winners of our drawing for the crystal embellishment packages: Lora Holman of The Bead Biz and Kelli Burns of The Hole Bead Shoppe, contributed great comments for our June "dead inventory" challenge and each will receive the spectacular assortment pictured at left!


We will draw a name from those who comment on any Crafty Retailer post from June 30 through July 31 and the lucky winner will receive a copy of Diane Gilleland's Book, Making a Great Blog: A Guide for Creative People. It is a "must have" resource for any new crafty blogger!

Curb Appeal isn't just about selling houses!

Does your shop have curb appeal? The housing market is painful right now, and real estate brokers everywhere are focusing on the need to improve curb appeal if a buyer wants to stand out in a competitive market. You know how it is….that patch of dying grass on your lawn has been there so long that it has become virtually invisible to you, but it shines like a beacon to someone interested in a new home with a beautiful garden.

The same is true for the specialty craft retail store! Does your store have curb appeal? Sometimes it is hard to be charming in the midst of a strip center, but it is possible! A creative window display offset by flower infused window boxes will make your shop a welcome respite from the average hum drum retail store. If you are lucky enough to have a stand alone location for your business, your creative possibilities are much more expansive! Are you proud of your first impression? Please send us a picture to share your success.

How does your shop measure up to the fantasy that exists in your head? Get to work earlier than usual one morning and make sure to bring your digital camera with you. Look around you with a fresh and objective eye. Take photographs…the pictures might shock you. Are there visible boxes spilling out of your stock room? Is the paint job stale? Is the stock dusty? Is your signage clear and easy to read? Is it welcoming?

I was recently in a fabric shop that had a very large sign on the front door that listed the shop hours. So far, so good. There was another sign that spelled out all of the items that were not allowed in the shop: No Food, No Drinks, and No Cigarettes. OK, so the owner felt the need to set some boundaries. It struck me as a little much, but what really bowled me over was the third and final sign written in large, bold letters which read “NO SMALL CHILDREN ALLOWED.” Huh? What a welcome! There were so many “Don’ts” that I didn’t have high expectations when I walked through the door. My instincts were right on…the owner was a pinched face, rather uptight woman who probably had a well organized closet at home, but had very little flair for customer service. It didn’t surprise me to learn that she was planning to close her shop.

Alternatively, I recently

had an opportunity to visit an incredible boutique in Manhattan. My 16 year old daughter Rachel and I were experiencing a “girls only week-end” which included a Broadway show and lots of shopping. We had been walking for much of the day and were both tired, hungry and moving quickly toward grumpy. We decided to hail a cab at the corner and happened to pass by a shop that had an eye catching window display. There was not much opportunity for the shop owner to differentiate her shop from thousands of others and the window was small, but it was used to maximum advantage! Rachel and I did not speak as the window made the decision for us! We turned and walked in, exhaustion quickly replaced by SHOPPER EXHILARATION! Our feet no longer hurt, lunch could wait---we had our second wind!

The shop was a trendy establishment that offered a wide variety of clothing, shoes, and jewelry that held significant appeal to both of us. The prices were uncomfortably high, but I had anticipated the temptation and had established a budget for both my daughter and myself in an effort to avoid trouble with my husband upon our return home the next day. I reminded Rachel of our shopping limits and we quickly got down to business. The shop was beautifully appointed with tasteful displays, the lighting was impeccable, the music was cheerful, and, best of all, every mirror was a skinny mirror! Paradise! We were happily gathering items to try on and suddenly a shop employee appeared at my side. She had a beautiful smile and was enthusiastic, gracious, stylish and a heck of a saleswoman. She had taken the time to observe the sort of clothing that was attracting me and had pulled a number of pieces that she thought I might like and put them aside. After she hustled me into a dressing room she repeated the performance with my daughter, discussing music, jewelry, and current events as she continued to bring age appropriate/color appropriate selections for us to try on. I tried on a pair of jeans that needed high heels, but I was walking around in flip flops…no worries….the smart sales woman had thought ahead and brought a pair of sexy stilettos that did the trick. It is no surprise that I bought them!

Both my daughter and I were captivated….by the store, by the sales woman, by the entire shopping experience. Needless to say, we blew the budget and left the shop many dollars poorer, but richer for the experience. My husband might argue the point, but he does love the stilettos!

Does your sales staff measure up? Sure, there are some people who were born to sell. Our New York saleswoman probably never needed any coaching…it is in her blood. However, most incredible sales associates get there through training! Many store owners, particularly women, seem to find it difficult to say with specificity what they require of their employees. The desire to be perceived of as nice often supersedes the need for clear communication and employees are left without direction. I have been the employee who did not adequately understand the boss’s wishy washy, poorly defined expectations and I have been the boss uncomfortable with giving orders. Both positions are equally unpleasant, but only one cost me money! If you find yourself giving mixed signals to your sales staff, it is time to train the trainer! Need more information? Check out this great article by sales consultant Sam Manfer.

I recently called upon a shop owner who got up to answer the phone five times during our brief conversation. I watched her work the register and stop repeatedly to answer the phone, annoying almost every single customer trying to check out. This owner was not understaffed. She even had a portable phone that could have been given to the gal positioned idly by the “yarn winding station.” This owner simply had not done a good job training the staff to “own the phone.” Whenever she was interrupted by the telephone she became more flustered, taking longer each time to get back to the original task at hand. She grew frustrated that her sales staff failed to take the initiative to deal with the ringing phone. The sales team was clearly oblivious and totally unaware of the owner’s expectations. Ouch!

Communication is critical. If you want to create a change or make a new policy…put it in writing. Draft a memo to post in the break room, and discuss it at the weekly sales meeting to make it official! It is imperative to get your team to buy in to the system in order to feel personally invested in the success of the shop. Hold formal meetings or informal brainstorming sessions on a weekly or biweekly basis to focus on promotion ideas and sales initiatives. If your team is a part of the process then each member will have a better understanding of her role in meeting the goals of the team! Ask your staff what they would do if they owned the store…you might be surprised by the answers.

A good sales person is worth her weight in gold. She will know your product line as well as you do, will enjoy crafting so that she can engage your clientele, will be personable and chatty without becoming cloying. She will take direction, but retain initiative, even offering suggestions to improve the process where appropriate. She will up sell at every opportunity and will make every customer feel like a valued friend. Does your staff make the grade?

Tell us about your sales floor MVP! We want to hear the details! What special role has your key sales associate played in a recent success story? Every contribution will be entered into a drawing for a gift package valued at $25 for both you AND your team member!

Congratulations to last week’s winner! Scarlett Lanson of The Beader’s Muse, will be receiving a copy of The E Myth by Michael E. Gerber. Check out Scarlett’s website for some inspirational eye candy! This amazing beader is only 19 years old and possesses an enviable design aesthetic. Her work is extraordinary.