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!

Improve your Leadership Skills to Improve your Bottom Line!

I have never had a problem being the boss of me.  It is  being the boss of  others that has caused me  turmoil over the years.   I don't like telling people what to do.  I have trouble delegating.  It is not my nature to follow a process.  Oh...and I hate conflict.  I avoid it at all costs.  Um...and I want everyone to like  me.  Yikes....not good qualities for a leader.

Fortunately, it is possible to learn how to be a better leader.  It hasn't been easy and it hasn't been fast, but I am slowly maturing into a half decent Boss Lady.  

 

Crafty Retail Rock Star Cynthia Deis, the creative force behind Ornamentea,wears her Boss Lady Pumps a bit more comfortably than me.  She laughed when asked if she  had a hard time making her expectations clear, noting that as the oldest of  three children and  a former middle school teacher, she has the ability to get you to do things you don't want to do.

COMMUNICATION, COMMUNICATION, COMMUNICATION!

Cynthia has a clear vision of what she wants for the business and she communicates that vision effectively.   For example,  she might poke a bit of fun at herself  by noting "I am not trying to be a Diva, but I am gonna be a Diva.  This is how I want it done."   Humor works--it takes the edge off.   She has almost thirty employees and knows that it is critical for everyone to be on the same page.  Accordingly,  there are monthly staff meetings which she describes as "raucous."    There is lots of laughter and silliness in the mix, providing a wonderful opportunity for bonding as well as education.


SPEED OF THE LEADER, SPEED OF THE PACK.
Cynthia has created a culture of "keeping busy" so there is not a whole lot of wasted time at Ornamentea.  She leads by example.   There is always something to do to reinforce the brand and her staff knows to do it!  Tidy the beads, clean the fingerprints off the glass bowl that is home to the Hershey Kisses, call a customer to touch base, etc. 

DELEGATE!
 DIY is only fun when it applies to crafting.  Successful leaders know that delegation is critical to growth and Cynthia is no exception.  There was a period in Ornamentea's infancy when she would take on a task more properly borne by an employee because she could complete the task in less time than it took to create a
process or fully explain the project to her staff.  I can certainly relate to that---  been there, done that, still have the tendency.  A refusal to delegate might be expedient for the moment, but it is almost always inefficient for the long term.  Ornamentea grew and Cynthia ran out of hours in the day.  She now entrusts people to do the things she has neither the time nor the inclination to do.  It takes focus --and more time than most small business owners have available-- to create a process for staff members to follow.  However, once you have a system in place it can be replicated again and again, saving you time in the long run.  Efficiency is a beautiful thing.


EMPOWER YOUR EMPLOYEES!  

Employees are your ambassadors...make sure that they have the tools necessary to shine!   Classes are a big part of the Ornamentea brand, with 40 different class offerings each month.  Although her staff members are talented crafters, Cynthia recognizes that being a gifted artist does not necessarily guarantee an equal knack for teaching.   After all, a good teacher teaches, but a great teacher will INSPIRE.   Since Ornamentea is all about inspiration, Cynthia holds a "Teach the Teachers" retreat every year to ensure that her vision is shared by her team.

Moreover, Cynthia's employees are encouraged to take any class offered at the shop for free, insuring that everyone has broad expertise.  What a great way to keep the staff up to date on current trends and techniques!   She further promotes creativity by offering her staff a VERY generous discount.  Employees come into the shop wearing their killer creations and customers buy the product to make the same necklace.  It is a win-win.

The Take Away:  Channel your inner middle school teacher and do what you gotta do to become an effective leader.  Your business is counting on it!

IN OTHER NEWS

Ready for a challenge?  Try our Fiber Earring Throw Down!  You can sew them, you can knit them, you can felt them, you can weave them, you can string them....technique is irrelevant.  They can be pierced or clip-on, dangling or post, flashy or demure.

THE ONLY RULE IS THAT THE EARRINGS MUST CONTAIN A FIBER ELEMENT!

Send me a picture of your fiberlicious creation on or before Monday, February 28, 2011!

You supply the ingredients and I will supply the prize---a fantastical, mouth watering, envy inducing box of Sparkling-N-Fibery Goodness with a retail value of  $150.   There will be prizes for the second and third place winners as well as a special gift for every participant who blogs about the challenge--just send me a link to your blog post to be included in the fun.   Help spread the crafty word!

IN THE STUDIO 

I have been concentrating so heavily on crochet that I forgot how much I loved to felt!  I just finished the green cuff pictured at right, and have just pulled the components to complete the second in what is apparently my GREEN series.   I guess the lovely weather we are experiencing in Florida has me thinking of Spring.

IN THE DOG HOUSE?
My daughter and I foster rescue dogs.  The result of this volunteer work is that we have a tendency to adopt foster dogs.  DUH!  

Meet the newest member of our wacky family!   He is five months old and, until last week, his world was limited to a tiny crate.  He was a sweet, timid, cowering thing who has morphed into a rowdy, confident, perpetually dirty ball of furry fun.

We will never replace Rosie, but have found room in our hearts for this little guy.

Any suggestions for a name?

Improve your KNOW, LIKE and TRUST Quotient to increase your bottom line!

Successful entrepreneurs know the importance of customer service and it is all about your KLT Quotient.  After all, a shopper who KNOWS, LIKES, and TRUSTS you is a shopper who will spend hard earned money in your store.  Most retailers know how to be charming and engaging, but many fall short when it comes to training their employees to do the same.  After all, we often assume that everyone knows how to answer the phone in a gracious manner, will think to assist an elderly patron with her packages, or will cheerfully distract a whiny child so that Clueless Mom can shop without annoying other customers.  Unfortunately, we all know the problem with making an assumption...too often the reality proves to be quite different than what we had expected.  Are your employees inadvertently sabotaging your efforts to create a warm and fuzzy shopping experience for the folks who pay your rent?  Hmmm....maybe the disconnect is on your side!

Most employees want to perform well.  Nobody likes missing the mark or letting down the boss.  However, it is hard to succeed if the mark is fuzzy and out of focus. 

What is Crafty Retailer to do?

Improve your communication skills, for starters! 

Most craft stores are owned by women and some women have a difficult time defining their expectations in a clear, concise and meaningful way.  Assertiveness seems to go against our DNA....we have an innate desire to be liked and to avoid confrontation.  Moreover, our employees  often become our friends in a way that is not true in a more Testosterone driven environment.  My husband would never think to discuss personal "stuff" with his staff and he certainly doesn't want to hear any intimate details from them, either.  Me?  I want all the sordid details, sister!  The people who work for me know about my dog's health issues, my daughter's last date, and my struggle with the scale.  C'mon....'fess up!  It is probably true with you, as well.

It doesn't take long before many of us are sharing snippets of life with our employees.  It makes work more interesting and companionable, to be sure.  The down side is that  it feels really uncomfortable to "boss around" our friends.  Accordingly, we often give a directive in a manner that sounds more like a suggestion than a requirement.  You know what I mean.....you ask an employee if she can rearrange a display when she has a minute, rather than asking her to have it done by Friday.  You assume that it will be done within the next week and she assumes that it will get done if she has the time.

It is likely that the week will go by with the employee never finding that free minute.  You will be left frustrated and annoyed, staying late to create the display yourself, missing your son's soccer game and grumbling all the while.  Meanwhile, the poor employee senses your irritation but has no clue as to the cause, simply shrugging it off to Menopause----After all, she has been listening to you complain about hot flashes for weeks.  Ouch.

 It is easy to lose control of your shop if you do not establish clear processes and procedures. You have a right to expect the people you pay to do what is necessary to move the store forward.  However, you have a concomitant responsibility to make your expectations well defined and easy to discern.   Get over your fear of appearing bitchy--- You are not a bitch by making your expectations clear; rather, you are only a bitch if you communicate those expectations in a hostile or aggressive manner.  Channel your inner Steel Magnolia and get the job done!


 Cover the basics:  gum chewing, cell phone usage and texting, attire, attitude, etc.  

Put it in writing!
If you want the phone to be answered in a certain way, establish a procedure for it, discuss it at the weekly staff meeting (you are having weekly staff meetings, aren't you?), and put it in writing!  Keep a copy of the memo near the phone as a reminder. 


Train your employees as to the proper way to greet a customer.  "Let me know if you have any questions" is not an option.  Some more creative suggestions:

Is this your first time in the store?

If yes, then you have a wonderful opportunity to give a little tour and point out shop highlights.  If the answer is No, you can inquire as to her current project or ask what brings her in this time.

Whatcha working on?

We all love talking about our projects.  Nothing makes me feel better than having a chance to speak CraftyLove with another addict.  We have an instant bond and it adds to the whole KNOW/LIKE/TRUST factor that will turn customers in fans.

OMG!  I LOVE your sweater/scarf/necklace!  

Did you knit/crochet/weave it yourself?  Let me see it up close!

 I went into an office furniture store today to scout out my husband's competition.  I was immediately approached by a beautiful, well appointed woman who greeted me with a wide smile.  She stuck out her hand to shake mine but noticed my scarf (pictured at right)  and immediately changed gears....it was all about the scarf for the next minute.  She was genuine and delightful----too bad she is the competition because I could tell that it would be easy to KNOW/LIKE/TRUST her!  Interested in the Scarf  Tutorial?  Check it out here.

Give your trusted employees a degree of autonomy and decision making authority.

It will increase morale and inure to your benefit.  I had an encounter today where a strict an adherence to corporate policy would have been poison.  Fortunately, the employee had the authority to step outside of the corporate box to make an on the spot decision that made me KNOW/LIKE/TRUST the company.   I went to pick up some wall decals that I had designed as a giveaway for hubby's business. They were a special order and I knew that they were "non-returnable."   Unfortunately, the resolution of the image that I had sent was--unbeknownst to me--- inadequate, resulting in a flawed decal.  I was dissatisfied with the product and annoyed that the printer had not contacted me before the final printing to apprise me of the problem.   He was irritated because he figured that I knew what I was sending ---- he simply printed what he saw.    Clearly, we were at a bit of an impasse.    I could almost see the wheels turning as the salesman debated how to proceed.  Fortunately, he turned the situation into a win-win.  I will provide a better image and he will reprint the decals.  He even took the time to give me a bit of an education on his product line so that I can avoid a similar mistake in the future.

 He was excited and enthusiastic about his job, knowledgeable about his industry, and eager to move forward to make me a happy customer.  We are both confident that we will do more business together in the future.  His boss is lucky to have him and was wise to have given him a degree of latitude in daily operations.After a shaky start, this incredible sales guy went out of his way to get me to KNOW, LIKE, and TRUST him.  It worked....I doubled my initial order, placed an additional order, and left happy.   Win-Win.


IN THE STUDIO:

The holidays are hectic for every business owner and a complicated craft project would push me over the edge right now.  Accordingly, I am DELIGHTED to be working on my latest, somewhat mindless, endeavor....a rag rug crocheted from colorful old T-Shirts.  I get to be thrifty and wax nostalgic at the same time!   My daughter wants to save every shirt as a "momento" but is willing to let me raid her stash to make a commemorative rug.  It will go in a bright corner of our kitchen once it reaches 48 inches. This would be a killer first project for a teen age crochet class because of the large hook size and easy to see stitches.    I adapted the Hexagon Tutorial from Lucy at Attic 24.

Customer Service, Anyone?

One of my earliest blog posts focused on some outstanding customer service that I had experienced while shopping at a trendy New York boutique.  I was on a vacation with my daughter and the visit to this shop was one of the highlights.  It was a great trip:  lots of was money spent, a copious amount of mother/daughter bonding took place, and there was even an "extortion worthy" picture taken with the Naked Singing Cowboy...yes, a good time, indeed.

However, this one particular Manhattan Boutique really stood out for both of us.  The clothes were amazing, but it was more than the clothes---after all, there are lots of cool shops in the City.  It was all about the customer service!

We had been walking for a long time, we were hungry, and we were carrying lots of shopping bags.   We were trying to do more walking than cabbing so that the cab fare money could go to our clothing budget.  We were tired and grumpy...and we wanted to get to the hotel NOW.  Forget the savings....it was time to hail a cab.   No more shopping, no more delays.

We were making our way along the street, trying to hail a cab, when we stopped in our tracks.  OMG!  Look at that window!  Clothes that appealed to teen and mom were displayed in a captivating window.  Our feet no longer hurt, lunch could wait....we had our second  wind!

We spent a minute taking it all in...display after artful display...then we got down to business.  We were happily gathering items to try on and a beautiful woman appeared with an armful of items for me to consider.  She had been watching us...saw what we were attracted to and got busy.  Her guesses as to sizing and style were spot on.  She was charming and knowledgeable.  I assumed that she was the shop owner because her behavior was so professional and proprietary.  I was wrong....she was a sales clerk.  Wow.  Sometimes sales ability comes naturally, but most incredible sales people get there through proper training!

Sadly, it has been over  a year and I have encountered nothing similar since.  The customer service I received recently is more typical:

I was in the check out line with a friend.  There was one customer at Register One, which was staffed by a young man.  There was an employee filling out paperwork at Register Two.  A third employee, a teenage girl, was standing between the two, leaning on the counter and staring vacantly into space.  Although the sale had concluded, the  young man at the register was having a lengthy "nice weather we are having" conversation with his customer.  Vapid girl continued to be vapid----there was no smile, no eye contact, no nuthin'!  The third employee was engrossed in her paperwork and was clearly not going to let customer service interfere with her agenda.   It was kind of odd, but not completely atypical.  This went on for about five minutes.  Five long annoying minutes.

My friend had several plants and I was carrying a 50 pound block of chicken feed.  It was getting heavy and I was starting to get impatient.  The guy at the first  register finally concluded his weather dissertation  and the lady at the second register appeared to complete her paper work.  They simultaneously looked up with big bright smiles.  They were talkative and engaging.  Even the vacant eyed teen girl came to life with a smile and eye contact.  It was really, really weird.  It was like we were invisible until it was "our turn."

A Twilight Zone moment.

Where does your sales staff fall on the Customer Service Continuum?    "Speed of the Leader, Speed of the Pack."  You are setting the bar!  Are you doing a good job in training your employees?  Communication is critical, and yet it is often very difficult for women business owners to communicate effectively with their staff.  Many shop owners have such a innate desire to be liked that they find it difficult to be assertive.  They are worried about appearing "bitchy."  Get over it!

You are not being a bitch by making your expectations clear; rather, you are only being a bitch if you act like one while you are communicating your expectations.  Be a STEEL MAGNOLIA!   It is totally fair to expect the people you pay to do the stuff you want them to do in order to TO MOVE YOUR STORE FORWARD.    Employees generally want to do well---they want to please the boss, they want the store to be a success.  Too often they are simply not sure how to go about it.  Unfortunately, it is easy to lose control of your shop if you do not establish clear processes and procedures.

Consider asking a friend to act as a secret shopper and report back to you.  Give her $50 bucks to spend in your store WHEN YOU ARE NOT AROUND.   The owner of the feed store probably would be horrified to learn about my experience....at least I hope so!  I wonder what you would learn if you could be a fly on the wall in your own shop?  It might be interesting to find out!

A good sales person is worth her weight in gold, and a bad sales person can cost you the same!  A sales STAR will know your product line as well as you do, will enjoy crafting so that she can engage your clientele, and she will be personable without becoming cloying.  She will take direction but has initiative, even offering you suggestions as to how to improve the process where appropriate.  She takes every opportunity to "up sell" and will make each customer feel like a treasured friend.  Does your staff make the grade?  Have you ever trained them to "up sell"?  It doesn't take much effort to ask the gal who is purchasing fabric if she is "all good with thread."  It is not high pressure, could save the customer from having to make a return trip, and will steadily add to your bottom line.

Sales Consultant Sam Manfer has a great article on the subject of employee motivation here and you can download  a motivational staff  Bingo Game here.     There is no excuse to have a "C level" employee in your shop with so many folks looking for work.  Mediocrity sucks!  Take the time to cultivate the "A" Talent and watch your balance sheet respond to the change!


IN OTHER NEWS:

I don't know nuthin' bout birthin' chicken babies....but I am sure learning!  I have had hens and one rooster for the last few years.   The experience has been an absolute blast.  They are very funny to watch, easy to care for, and prolific egg layers.  There is something remarkable about walking to the coop to collect fresh eggs every day!  Unfortunately, I have never had a hen "go broody" and want to hatch her eggs.    I found an incubator on Craig's List and decided to give Mother Nature a push!  I  I do not know for certain how many of the eggs are actually fertilized, but  Mr. Rooster appears to have quite a way with the ladies.    All day, every day, if you get my drift.  In fact,  I am surprised that there hasn't been a clucky rebellion to whup his randy ass.   In any event, I put 13 eggs in the incubator and hoped for the best.  It has been three weeks and the first egg started to hatch yesterday.  The totally cool part....I could hear the chicks peeping long before a single egg started to crack.  It has been great fun, although Rosie the Wonder Dog thinks that I have a tray full of squeaky toys that I am keeping from her. She is beside herself with excitement.

I am going to have to keep a close watch on Rosie!  She is a bit too interested, I think!


 



IN THE STUDIO:

I am still working on the table runner but hope to have it completed before the end of the week.   The runner will be constructed of several needle felted pieces that are then "assembled" via the wet felting process.  The tutorial should be available by the next post.  The picture at right should give you an idea as to the scale. I am working on a bright blue trim and colorful felted fruit embellishments for the edge.  It should  be a cheerful addition to the kitchen table!


The next project on my To Do List involves a Handbag Makeover.  I collect vintage handbags and I usually leave them exactly as I find them.  I picked up the  vintage burlap and leather bag at left  for $1.50 at an estate sale. Although it is a great size and is very well put together, it screams "little old lady" to me.  I figured that it was worth spending the buck fifty to see if I could morph it into something fun.  I plan to cover it with felted flowers and crystal embellishment.  Stay tuned!

Keep Calm and Carry On.....small changes can lead to big retail success.

During World War II t the Ministry of Information commissioned a series of propaganda posters designed to reassure frightened citizens that all necessary measures were being taken to protect the nation. The first poster read: "Your Courage, Your Cheerfulness, Your Resolution will Bring Us Victory" and a million copies were posted throughout the country. Shortly thereafter 600,000 copies of the second poster, which read "Freedom is in Peril" were printed and distributed in a similar fashion. A third poster was printed, but the 2.5 million copies were held in reserve and never released. These posters were intended to be disseminated only in event of extreme crisis, such as an invasion. The poster read simply, "Keep Calm and Carry On."

As my kids would say....."True that." Seriously. If British citizens could be urged to "buck up and get on with it" in the face of eminent peril, small business owners facing a down economy can certainly be urged to do the same! The economy is a challenge. Most of my customers report much lower sales numbers this year. Of course, I have heard of some stores recording banner years, but that is the exception, not the rule. Many of the folks I talk to are complaining about the economy, their sales staff, their inventory turns, and on and on. Clearly, they have identified the problems.

What is the crafty retailer to do?

Focus on the solutions! Once you have identified the problem (bad economy, lackluster customer following, etc.) it is time to stop talking about it and direct your attention to formulating a solution. The bitching and moaning simply make you feel justified in your failure and get in the way of productivity. KEEP CALM AND CARRY ON. Get proactive rather than reactive and do some strategic planning to refine your business. Michael Gerber, author of The E Myth, writes about the three important stages of business development: Innovation, Quantification, and Orchestration. (Note: if you do not have this book, get it!)

Craft store inventory is largely commodity based. That is, Product X is the same in your store as it is from the store down the street or the internet reseller. So what makes you different? The manner in which you sell product X! It is what you do that is inherently you---your branding, your employees, your store ambiance. Is it time for an Innovation? Savvy business owners incorporate innovations as a means to simplify the business process by breaking it down to its critical essentials. A successful business innovation answers the following question: What is getting in the way of my customer receiving what he wants from my business? Innovation asks "what is the best way to do this?"

Oftentimes, it is the smallest and least expensive innovation that can prove to be most effective. For example, look at the way your employees greet your customers. How often have you heard one of them ask "May I help you?" You may even do it yourself [Insert sound of Booing and Hissing here]. I know that when I go into any store - in any city - in any state - it is uniformly the greeting of choice. My response is equally predictable: "No thanks, just looking." The salesperson is then free to go back to texting her boyfriend, pricing product, or ringing up another customer, secure in the knowledge that she has done her job. I am free to think evil thoughts about the incompetency of the staff.

Weird Factoid: a google search for "my local bead store sucks" comes up with over 23,000 hits! I spent some time perusing the posts and many of those complaining focused on the fact that their presence wasn't acknowledged by the sales staff. Substitute the word "yarn" for bead and you get over 16,000 hits!

How much money is the ineffective customer greeting costing your company?

The Innovation: Train your staff to greet customers differently. Mr. Gerber suggests the following: "Hi, have you been in before?" The customer will respond yes/no and your staff will then have the opportunity -- and the responsibility -- to engage on a deeper level. If the answer is "Yes," you can say "Great! It is good to have you back! We have recently created some awesome new customer programs, like (fill in the blank: Bounce Back coupons, Buddy Referral system, etc.) and if the answer is "No" you can say "Great! We are so glad that you stopped in! We have some great customer programs (enthusiastically fill in the blank here).

Cost to you: Nothing. Cost to your employees: The pain of change. Oh, well...they will get over it. Mr. Gerber believes the new greeting will put money in your pocket to the tune of a 10% to 16% sales increase and my own experience ratifies his belief.

The Quantification: You cannot judge the effectiveness of an innovation without the ability to quantify it. In other words....if you cannot measure it then you cannot manage it! How can you determine if changing the store greeting is the reason behind your sudden increase in sales? Quantify it by determining the following:

1. the number of people who came into the store before the innovation was adopted;
2. the number of people who actually made a purchase and the average dollar value of the purchase;
3. the number of people who came into the store after the innovation was adopted; and
4. the number of people who actually made a purchase and the average dollar value of the purchase after the innovation was adopted.

If Retailers took the time normally reserved for frustration and self pity (been there myself!) and spent that time quantifying all of the numbers that relate to their business, they would soon find less to complain about! Most store owners instinctively have a feel for which days of the week are "good sales days" and which are "bad sales days" but they haven't quantified it. Does a particular employee work on the good day? Are afternoons busier than mornings? Did the newsletter go out the day before the best day? Start asking questions and the patterns will reveal themselves...you will get the information you need to quantify your success. Some questions to get you started:

1. How many customers come into to your store each day?
2. How many in the morning?
3. How many in the afternoon?
4. How many people call your business each day?
5. How many call to ask for pricing information?
6. How many want to purchase a specific product?
7. How many of product X is sold each day? Product Y? Product Z?
8. What time of day did those products sell?
9. What were your sales receipts on each day?

and so on and so on! Remember...if you can't measure it, then you can't manage it! Quantifying your innovations is what enables you to make FACT BASED decisions rather than relying on hunches. In the old days when I approached my partner with some great new business plan she wisely asked if I was "smoking Hopium" again...you know...wanting the plan to succeed so much that I ignored the realities associated with implementation. No more Hopium for me...if it works on paper, then it will work in reality! Keep track of the statistics, follow the advice they provide, and move into Orchestration.

The Orchestration. Ahh...this is where beautiful things happen. Once you innovate a process (new customer greeting) and Quantify the impact of the innovation (Wow! Sales really ARE up...) then it is time to ORCHESTRATE the process by eliminating any discretion at that level of your business. The new greeting is now a rule and it is to be THE greeting used for every customer who walks through the door (unless it is a regular customer who you know and recognize). You have removed chaos and inconsistency while establishing order and routine. Now you don't have to think about it anymore. Keep doing it until it no longer works, and when it no longer works, it is time for a new innovation! Way to go!

Now look at other areas of your business...what other innovations do you need to implement? The economy might be tepid, but it is providing you with an awesome opportunity for growth. Embrace the opportunity for change as a means to achieve success and prepare yourself AND your business for the growth that will come you way. You can do it! Keep Calm and Carry On!

Great Promotion Idea:
I recently read about a retailer who held a remarkably innovative promotional event:

The Retailer ran a month long promotion whereby customers got a fixed percentage of their sales receipts back as a rebate. The catch? The rebate came to them in the form of a check made out to another brick and mortar craft retailer in the community. What a way to build karma points all around! You are happy with the sales, your customer is happy to have "found money" to spend at another craft retailer of her choice, and the other craft retailers owe you one! Happy sigh.

The Crafty Retailer's Current Promotion:
Lots of folks who shop with Access Crystal were able to take advantage of an awesome "Bounce Back" coupon last week. This week Aussie Threads and Fibers wants in on the fun and is offering a $10 off coupon to all new customers who place an order by September 25, 2009. Better yet...all existing customers who place an order by September 25, 2009 will receive a $15 off coupon! YOU MUST REFERENCE COUPON CODE TCR0922! We love our customers!

Focus on the BUSINESS OF BUSINESS to improve your bottom line!

The independent craft store owner is an interesting hybrid---the most successful are an equal mix of creativity and business savvy. Unfortunately, those attributes are not always a natural fit in a single brain. Some lucky "right brain/creative" retailers hook up with a "left brain/logical" business partner, but that is not always the case. Most retail craft store owners are heavy on the creativity and light on the business process. Think about it.....why did you go into business? If you are like me, it was your love of a particular craft that paved the way. I found my zen when weaving tiny little seed beads into larger tapestries. Unfortunately, I could not find supplies locally and the internet was not yet a viable source for supplies. I needed access to beading materials and I wanted to spread the joy of beading.

I had a husband who could afford to get me started and so I set up shop with some friends. It worked...for a while. Competition was minimal and beading was just starting to become the "big thing." It wasn't hard to keep the rent paid, we just needed to have stock on the shelves and smiles on our faces. We priced product by instinct and kept only the inventory that appealed to us. The system worked...for a while. Unfortunately, competitors started to pop up as the bead craze blossomed. The internet retailer became a viable threat. One of my partners left. My kids missed me. I was guilt ridden all of the time. Yup....It worked until it started to seem less like a hobby and more like, well, .... WORK! The naivete of those years is embarrassing to contemplate in retrospect. There was not much pressure on me to make the store profitable. Rather, it was more critical that I simply not lose too much money because then my husband would find it less tolerable. How is that for a business model?

I am willing to bet that many of you recognize that silly store owner. She is the competitor who can sell crystal for less than cost because profit is irrelevant. She is the Yarn Shop Nazi who doesn't respond well to pierced and tattooed shoppers (NO YARN FOR YOU!). She is the needle art store owner who refuses to respond to industry craft trends because she only cares about traditional cross stitch. Be honest....she might even be YOU! The sagging economy and rise in internet competition will make your accountant, your banker and even the most tolerant of husbands, demand a less pitiful bottom line. We know that you love your craft, but are you ready to make the leap into world of responsible business ownership?

There comes a point in every business owner's life where you must have a little "come to religion" meeting with yourself. Excuses don't pay the rent. You are either going to make the changes necessary to succeed or you are going to fail. It is not surprising to learn that many independent craft stores close after the honeymoon phase. Retail is hard work and sometimes the juice ain't worth the squeeze.

What is the crafty retailer to do?



LEARN THE BUSINESS OF BUSINESS! My first step was to read everything I could find on running a business. I have recommended it before and will do so again...Read The E-Myth ReVisited by Michael Gerber. He succinctly identifies the pitfalls that many small business owners fall prey to and offers tangible advice to improve the status quo. I have an extra copy on my book shelf and will send it to the person who makes the most entertaining case for a need for change. Another great resource is The Big Book of Small Business by Tom Gegax.


FIND A MENTOR! Nothing succeeds like success and there is no need to reinvent the wheel. Is there a retail store in your area (but outside of your genre) that is an "it" store? You know the one I mean....the owner has great shop displays, incredible marketing savvy, etc. Invite her to lunch! Most human beings like to feel needed and are willing to lend an ear and a hand to share their expertise. Join a networking club and learn from other business owners.

TAKE THE EMOTION OUT OF IT! Most specialty craft stores are owned by women. Many women have a hard time removing the emotional quotient from the business. Our need to please and to be liked can lead to foolish business decisions. We keep mediocre employees because we cannot bring ourselves to fire them and lack the assertiveness to train them properly. We reduce prices beyond the point that is reasonable because we are afraid to lose a customer. The result is a client base that is loyal only to price and a profit margin that cannot sustain us. We become so attached to our inventory that we refuse to dump the duds because we hope that someone will buy it someday. My very favorite customer confessed to having 5 year old product on the shelf. Ouch.

EMBRACE THE CONCEPT OF THE PROCESS. The personal change that made the biggest impact in my business was my reluctant recognition of the need for a system of fixed processes in my business. A store that operates without fixed processes creates an environment of instability and disorder. Legendary marketing guru Theodore Levitt aptly stated that "Discretion is the enemy of order, standardization, and quality." The younger me often did what was expedient rather than what was right for the business. I made decisions by the seat of my pants, often contradicting a previous decision, and confusing employees. I took bookkeeping shortcuts that cost me thousands of dollars to untangle later because I was too busy to do it right the first time. I hired inept employees because I needed a warm body and then was too wimpy to fire them when it was clearly not a good fit.

PROMOTE, PROMOTE, PROMOTE! Get out your marketing calendar and plan the promotions for the third and fourth quarters! Challenge yourself to come up with something that does NOT include a huge price reduction. There is no need to give away profits. Be creative and inventive. I recently spoke to a long time customer who told me about an amazing promotion at her store. Debbie Huntoon operates Alada Beads in Clinton Township, Michigan. Michigan has been one of the hardest hit states economically, with unemployment numbers well above the national average, and yet Debbie continues to thrive.

Debbie and her daughters take the business of business very seriously and it shows. She has made the decision to host one major event and two to three minor promotional events each month and is reaping the rewards. She recently hosted a "Mystic Party" which included palm readers, a wine tasting, several "make and take stations", and a food vendor. Debbie took a gamble by making a big investment in radio promotions while hoping for an equally big return on her investment. She needn't have worried! She had to pull the ads after only a few days because such a buzz was created that she worried about her ability to handle the crowd. 300 customers reserved a spot for the event and all of the vendors agreed to participate for free, knowing that the radio spot would generate enough publicity to more than compensate for their time.

Guests were lined up for the event, which lasted for only three hours and generated $10,000 in sales. She took lots of photographs and posted them on her store Facebook, which has continued to generate excitement and interest. What does beading have to do with palm reading? Not much, but this Crafty Retailer knows that a successful promotion is more about THRILLING THE CUSTOMER than showcasing the product. Congratulations on a job well done, Debbie!

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.