IKEA irritates the Danes

DISCUSSION TOPIC:  Translating Retail Success Across National Borders

TOPIC SUMMARY:

There is yet another potential impact of importing and exporting that retailers are now starting to consider. Boasting 273 stores attracting some 583 million customers each year, IKEA, for example, needs to be aware of what people think and feel.

Both The Independent and The Daily Telegraph in the UK reported that Danish customers of the Swedish shop are less than happy with what’s being offered for sale or at least with what the products are called.

IKEA’s products tend to have names rather than numbers, a situation that has recently caused complaints from customers in Denmark, historically a rival of IKEA’s Swedish-based empire. According to The Independent, complaints have been made about some of the names chosen. Apparently those with Danish derivation are used for some of the retailer’s less salubrious, or lowly, products such as doormats, rug linings and toilet seats, for example.

Discussion questions:  Is the IKEA Danish experience unusual in the arena of global marketing? Where do retailers go to acquire the cultural education required to open without incident in new international markets? Is there are retail company or brand that you think best epitomizes how to go about expanding globally?

My post:

International expansion of brands and retailers always creates the potential for cultural missteps.  IKEA did not purposely named their products with names that would offend Danes.  Using names for their products vs. numbers requires them to either use different names in different countries, or choose to not care if one country has an issue with a name that is fine everywhere else.  

When a retailer or brand expands into a different country (or even a different state) it is incumbent upon them to do some due diligence in the new location, particularly regarding marketing and branding methods.  It would not have been a significant issue to rename a few of the IKEA products for the Danish market if indeed some of the names are offensive.

Examples of brands and retailers who have expanded globally effectively include McDonalds and DFS Galleria.  McDonalds offers key products like the Big Mac worldwide, but then adds menu items that relate to the local populace.  DFS Galleria, the Hong Kong-based purveyor of luxury brands in gallerias and airport duty-free locations throughout the Asia Pacific region, pays close attention to how each nationality communicates and shops.  In-store signage, associate language skills, and marketing efforts all support this.

Mike Osorio, your Dare to be Contagious! ^TM strategist

http://www.osoriogroup.com/

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GO TO THE FULL DISCUSSION AT RETAILWIRE.COM:
http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/12829  

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DISCUSSION TOPIC:  Consumers Want Service for Private Details

TOPIC SUMMARY:

A new poll from Harris Interactive, commissioned by Chordiant Software, finds that consumers, to varying degrees, believe it’s important that companies have information about their buying habits and other personal details to provide the level of service they seek.

According to the study, 64 percent of respondents thought it was either “very important” or “important” that companies had a personal history on them.

Having the information is one thing but what consumers are most interested in is what is done with it. Today’s consumers, according to the study, are willing to walk when they feel even the least bit slighted.

Sixty-two percent, for example, said they would not hesitate to cancel or switch service or product suppliers after having a bad experience. Seventy-eight percent said poor customer service would cause them to shop elsewhere.

Younger consumers seem particularly unwilling to understand subpar performance from the companies they patronize. They are more than willing, however, to go online and share their bad experience with thousands of people.

Discussion questions: Are you surprised that more consumers seem willing to share personal information with retailers and other companies? Are retailers and others really taking this information to provide a higher level of service to consumers? Where do you see the greatest opportunities for retailers to take personal information and translate it into a more meaningful relationship with shoppers?

My post:

I am a bit surprised that such a high percentage of consumers (64%) thought it important for companies to have their personal information.  It speaks to the desperation of consumers to have better experiences with retailers and brands and that they believe if the company has their information it will lead to personalized high-value experience.  Unfortunately, most companies have not shown the ability to consistently deliver a more positive experience on the basis of owning personal data.  This is an enormous opportunity area for the companies who figure out how to use the personal data they have to personalize the consumer relationship.

The under-30 crowd will continue to drive open sharing of personal data and I expect data safety will continue to improve.  Now it is up to the retailers and brands to use it effectively.

Mike Osorio, your Dare to be Contagious! ^TM strategist

http://www.osoriogroup.com/

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GO TO THE FULL DISCUSSION AT RETAILWIRE.COM:
http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/12814  

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How do you feel about haggling?

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RETAILWIRE DISCUSSION TOPIC

The Fine Art of Haggling – 1/22/08
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TOPIC SUMMARY:

While common in many foreign countries, haggling for most Americans is reserved for major purchases such as cars and houses. However some are finding better deals by haggling over credit card rates, hotel rooms, medical bills, gym membership fees, as well as at retail. Discussion Question:

Is haggling more common than thought across retail? Do you think haggling is positive or negative for retail?

My post:

In a difficult economic cycle, the incidence of haggling will increase in all retail environments.  However, unless a retailer’s selling culture is set up for haggling, the results will always be negative for the retailer and often negative for the consumer.  It is negative for the retailer’s profits because their margin expectations don’t take haggling into account and negative for their sales associates and managers who are unprepared to deal with often-difficult hagglers.  It can be negative for the consumer because even if they get a lower price, the process of haggling with an unprepared associate will likely be acrimonious.

Politely asking about pricing options, particularly for more expensive items, is smart consumer behavior.  However, haggling in environments not set up for it is just adding to an already-difficult relationship between customers and retailers. 

There could be an opportunity for a retailer to set themselves up as a haggling, bazaar-type environment that caters to people who like to shop this way.  I doubt, however, that this can be done profitably over many locations due to the difficulty of training this type of selling effectively.  An opportunity for single-unit retail entrepreneurs?

Personally, I like shopping where I am confident that the marked price is an acceptable value, and haggling is by definition unnecessary.  Costco is the king of projecting this perception.

Mike Osorio, your Dare to be Contagious! strategist

www.OsorioGroup.com

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GO TO THE FULL STORY AND DISCUSSION:
http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/12705

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Thank you for visiting my blog!  Please subscribe using the RSS button and comment on my postings.  Comments are the life-blood of any blog and I appreciate yours!

Creating a ‘Wow’ Shopping Experience

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RETAILWIRE DISCUSSION TOPIC:
Creating a ‘Wow’ Shopping Experience – 1/18/08
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TOPIC SUMMARY:

While rare at retail, a “WOW” shopping experience generates four times the word-of-mouth than a problem experience, according a survey from Verde Group and Wharton.

The survey showed that customers receiving an especially positive experience are likely to tell seven other people on average about the experience while those receiving a negative experience told 1.5 people.

But it also showed that such experiences are fairly rare – only 51 percent of women admitted to having a “WOW” experience in their entire shopping history, and only 39 percent of men did.

 Discussion Questions:

Is it practical to train or inspire sales associates to create “WOW” shopping experiences? What are some retailers known for top customer service doing to help create incidents of “extraordinary service”?

My post:

It is not only practical to train and inspire sales associates to enable “WOW” shopping experiences, it is essential.  Note that I said “enable” vs. “create”.  It is folly to assume we can create these experiences.  The creation process is mutual, between the associate and the customer and is defined by both individuals and the situation. 

Keys to enabling WOW experiences: 

1. Have a WOW culture.   A company culture that is all about a vision of wowed customers and wowed associates.  Yes, the associates need to be wowed too.  Wowed to be a part of a company so in tune with why they would choose to work there, and wowed to be a part of a company so determined to provide wonderful product to their beloved customers in positively memorable ways.
2. Make it easy.  Examine every customer touch point and every associate touch point.  Seek out, identify, and remove without ceremony anything standing between your associates’ and your customers’ WOW experiences.  Things like unnecessary reports, policies & procedures, unclear marketing or merchandising, etc., all create barriers.  Knock them down!
3. Recognize, reward, recognize, reward.  Look for ways to recognize and reward associates and customers for exhibiting desired behaviors.  And not just the big ones – the best recognition comes daily for the small “ordinary miracles” referenced in the article.  When you find them, reward them – usually a sincere and specific “thank you” does the trick – for both associates and customers.

 Why isn’t this already happening for most retailers?  The choice has not been made to focus on #1.  The choice has been to focus on short term financial results, to the detriment of not only customer experiences, but talent development, product development, marketing, store design and more.  My hope is that retailers are using the current business climate to reassess what they have been focusing on and realize that they must focus first on their people and their customer and then the long term, sustainable growth and profits will follow.  Mike Osorio, your Dare to be Contagious! strategist

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GO TO THE FULL STORY AND DISCUSSION:
http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/12696

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VOC: The Voice of the Customer

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RETAILWIRE DISCUSSION TOPIC:
Retail TouchPoints: Keeping Your Ear Tuned to the Voice of the Customer

TOPIC SUMMARY

In a recent article on the Retail TouchPoints website, the author talks about the new power metric for measuring service:  VOC, “voice of the customer”. 

Click here for the full article:  http://www.retailtouchpoints.com/location5B1.htm  

Discussion Questions: What do you think are the best ways to hear the voice of the customer (VOC)? Which of the recommendations in the article do you find to be the most promising for retail management looking to understand the VOC? 

My post: 

There should be no argument that VOC has become an increasingly important metric in measuring customer opinion and retailers’ health.  VOC is not new.  What is new is the number of ways for that voice to be heard and for you, the retailer, to listen.  Unfortunately, at exactly the time that retail executives need to be most focused on VOC, they are being constantly harried by VOA (voice of the analyst) and VOS (voice of the shareholders), leaving little if any time for VOC focus.   

Retail CEOs and other senior executives must take the leadership role in returning their focus to the customer.  This is done through a combination of methods:   

New-tech:  email, blogs, message boards, other social media, marketing analytics that measure customer behaviors, etc. 

Old-tech:  MBWA, sitting in the call center, customer focus groups, employee focus groups, competition shopping (on & off-line), reading customer comments, etc. 

Ultimately, though, a real VOC strategy must reside at the top of the strategic plan with energy, time, and training invested in that strategy every week of every year – not just when business is tough.  None of these methods, old or new tech, will be both implemented and used for decision making unless the CEO makes VOC the top priority.   

Don’t forget why retail exists:  to provide goods and services for customers.  Not to enrich stockholders and management.  The enrichment is the byproduct of happy customers.

I certainly hope that the result of this terrible holiday season is a wake-up call to retailers to take a hint from the few successful players and listen to the customer and provide compelling products with great service! 

Mike Osorio, your Dare to be Contagious! strategist www.OsorioGroup.com  ————————————————-
GO TO THE FULL STORY AND DISCUSSION:http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/12678
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Customer Service Tops NRF Agenda

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RETAILWIRE DISCUSSION TOPIC:
Customer Service Tops NRF Agenda – 1/16/08
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TOPIC SUMMARY:

In the annual NRF/Amex Customer Service Survey, these retailers topped the list:

Top 10 U.S. Retailers for Customer Service

L.L. Bean Zappos.com Amazon.com Overstock.com Blair Lands’ End Coldwater Creek Nordstrom Lane Bryant Newegg.com

Discussion Questions: How is it that some retailers talk about service and deliver it while others just talk? Where does the system break down at companies that regularly fail to meet customer service expectations? Is it in the hiring process (employing the wrong kinds of people) or in training (failing to give workers the direction and tools to do the job) or at the top of the company where executives talk about service but have no real idea what it means or how to provide it?

My post:

Poor hiring, inadequate training, and a lack of executive will all contribute to the problem.  Executive passion for the customer experience is the starting point.  The best companies have a CEO and other top executives who truly believe their purpose for existence is delivering great product to their beloved customers via engaged, equally passionate employees.  This passion leads to decisions that continually move their service levels higher and higher:  methods of hiring, developing and retaining talent; methods of engaging in meaningful dialogue with customers that fosters contagious loyalty.  Most companies struggle with consistency.  The secrets of success start at the top and are delivered consistently at every customer touch point.  Not one of the companies on the top 10 list can rest.  The customer and the employee are ever-evolving and executives must remain true to their passion re-examine their cultures, their talent management, and their service delivery methods regularly.

Mike Osorio, Your Dare to be Contagious! Strategist, www.OsorioGroup.com

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GO TO THE FULL STORY AND DISCUSSION:
http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/12688                                                              ————————————————-

Customer satisfaction top U.S. issue in 2008

Reuters article 01/16/08

Customer satisfaction top U.S. issue in 2008: IBM/NRF survey

Top responses were

1. customer satisfaction
2. expanding the number of stores (#1 last year), cutting costs (tied)
3. getting and keeping good employees (up from #5 last year)

My take:

It is great news that retailers are prioritizing customer satisfaction over opening stores and cutting costs.  It will be very interesting to watch and see if they invest resources accordingly.  However, I think the real news is the move of “getting and keeping good employees” from #5 to #3.  Personally, I believe this should be #1.  Customer satisfaction, store expansions, and cutting costs don’t occur without excellent employees.  But I am satisfied that retailers are placing increasing emphasis on talent attraction, acquisition and retention.  That bodes well for employees, customers, and investors.

 

View the original Reuters article here:  http://www.reuters.com/article/businessNews/idUSN1555013620080116?pageNumber=1&virtualBrandChannel=10003&sp=true

Satisfied Workers Generate Greater Returns

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RETAILWIRE DISCUSSION TOPIC:
Satisfied Workers Generate Greater Returns
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TOPIC SUMMARY:

In a recent article at Knowledge@Wharton, the author discusses a study correlating employee satisfaction to company performance.  Discussion:  Do you believe there is a direct correlation between employee satisfaction and company performance? Have retailers learned to value intangibles such as employee satisfaction in achieving company performance goals or does the emphasis remain solely on traditional accounting measures?

My post:

Mary Baum got it right by emphasizing employee engagement vs. employee satisfaction.  Only a truly engaged employee does the extra things necessary for exceptional customer experiences that build lasting customer relationships.  The obstacles in the way of leaders working toward engaged employees include the focus on short-term financials, the simplistic idea of “happy” employees, over-extended, under-trained front line supervision, and detached senior executives. The solutions are not easy, but start with a long term view (ala Google) and a CEO and top lieutenants that live and breathe every day their unshakable vision of customer and employee engagement.

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GO TO THE FULL STORY AND DISCUSSION:
http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/12685

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What’s a retailer to do?

What’s a retailer to do? Now that the holiday shopping season is complete, other than January gift card sales, retailers need to talk to their customers about why they continue to wait longer and longer to shop (if at all). 

Seattle Times article*:  December 18^th, 2007 – 7 days before Christmas!In an online survey of 63,000 shoppers conducted by NPD over the past weekend, 18 percent said they hadn’t even started shopping, compared with 11 percent at the same time a year ago; 67 percent had not finished, compared with 51 percent a year ago. The three top reasons shoppers cited were: they were waiting longer for better deals, they had little time to shop and they didn’t know what to buy.

*Seattle Times article link:  http://seattletimes.nwsource.com/html/businesstechnology/2004081437_shoppingstall19.html

7 days before Christmas – and 18% of the population hadn’t even stated shopping yet – that’s an increase of 64% over last year’s 11%.  And almost 7 in 10 hadn’t finished.  30% more than last year!

Retailers!  Are you paying attention!?  Shoppers are in control as never before – but more unsure about what to buy than ever.  All the marketing noise means nothing if your customer doesn’t feel in control of the relationship.  They are going to shop when they want, where they want, and pay what they want whenever possible.  They need your help, but want to control the relationship.

 What’s a retailer to do? 

Don’t despair.  It is time to take clues from the many on-line small retailers and “solo-preneurs” who are teaching us all to be in control of our retail relationships.  Here are a few tips in answer to the three top shopper-cited issues:

 They are waiting for better deals

1. Basics:  Starting 4 weeks before Christmas, make a “lowest price guarantee” on core product (your sweaters, socks, dinnerware, etc.).  Make the marketing for these products about add-ons and bonuses. 
2. Must-haves:  No worry here.  Hold your price.  Unfortunately there were few of these in 2007 (Wii, Ugg boots, iPods).  Note to retailers:  You are boring us!  Get back to your roots as purveyors of interesting, unique products.  Who will take the challenge?

They have little time to shop & They don’t know what to buy

1. Offer personal shoppers.  These should be your associates who are highly skilled in building customer relationships.  Give them free reign to create solutions that excite and engage their customers.  Market this service!
2. Get into web 2.0!!!  Set up brand-right pages for your personal shoppers on FaceBook, MySpace, etc.  Create legitimate blogs for them as well (not some marketing exec, but a real personal shopper).  There are several more ways to take advantage of web 2.0 – if you do it right! Start now and you’ll have thousands of eager shoppers willing to follow your personal shoppers’ advice next holiday season.
3. Make it easy for your regular staff, particularly the holiday temps, to help harried & confused customers.  Provide gift category training early in the season that teaches your staff what gifting problems customers are looking for you to help them solve:  Traditional and innovative choices for key people on their lists:  family members, friends, intimate relationships, etc.  Then, follow up with daily reminders to keep them focused on these solutions.

It bears repeating:  They need your help, but want to control the relationship.  Stop talking to them, and start having a dialogue.  There are many more things you can do, but this should get you and your team thinking about your tactics for next year.

Mike Osorio

Your Dare to be Contagious strategist

www.osoriogroup.com

The Marketing Power of Blogs

As part of my role as a retail industry speaker, coach and consultant, I am now posting to relevant online retail blogs, sites, etc.  I will use my blog to bring these postings to you, my readers.  I will always provide a link to the originating site or blog so you can enjoy their full content if you should so desire. 

I hope that you will take the time to send a brief comment on my postings!

To your success and daring you to be contagious,

~Mike

Here is a recent posting to a discussion topic at RetailWire – a terrific resource for daily retail industry news and analysis.

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RETAILWIRE DISCUSSION TOPIC:
The Marketing Power of Blogs
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TOPIC SUMMARY:
For many small businesses, blogging is proving to be a low-cost, high-return way to create public awareness. Across businesses, blogging companies are still a small minority.  What do you think of the potential as well as the limitations of using a blog as a marketing tool? What types of businesses can best capitalize on blogging? What, if any, has been your experience with blogging?

My post:

The current wave of social media (YouTube, MySpace, LinkedIn, blogs, etc.) is teaching us that consumers want to be a part of the conversation. As a retailer, are you engaged fully with your customers in rich dialogue about your brand, products and services? If you are not blogging and using other social media, the answer is probably “no.” I highly encourage retailers to consider making social media an integrated part of their marketing strategy. That said, you cannot just “jump in.” Like everything else in your marketing arsenal, social media needs to be carefully thought through. Your customer’s experience on your blog must be congruent with other customer touch points. Other posters rightly stated that blogs work best for product categories where there is a desire for customer dialogue. Basics and consumer staples will not likely be effective blogging subjects. Consider
1) Who will be your blogger(s)? They must speak with an authentic voice, aligned with the company’s voice.
2) Can you commit to regular updates? If not, don’t start.
3) Have you prepared for the inevitable complaints and bad comments about your brand/product?
4) Have you considered a presence on other social media like MySpace or YouTube? You should. Most of your customers are in multiple social media sites–you need to be (authentically) where your customers are if you want to truly engage them in conversations.
Mike Osorio, Principal, www.OsorioGroup.com

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GO TO THE FULL STORY AND DISCUSSION:
http://www.retailwire.com/Email/Discussion.cfm/12654
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