There are three phrases that can absolutely kill a retail small business as well as any size retail business. They are “Next!”, “Anything Else!” and “Here’s Your Change!”. How our sales people handle any sale, no matter the size, is of critical importance and is grossly overlooked by most small business owners and managers.
During every retail sale we have three key chances to make a positive impression on our customer in order to improve the sales opportunity, as well as develop a relationship of trust, appreciation and loyalty.
They are:
- The Greeting!
- The Follow Up!
- The Close!
Walk into any retail store and judge for yourself. How are you treated by the people waiting on you? Have they been trained properly on customer relations? How are you greeted? Do they search for what your needs are? Do they plus sell you? Do they thank you in a way that leaves a positive impression?
We all hear how retail is down, our global economy is in a historic decline and business in general is awful. You would think that every small business owner and manager would be working with their people and coming up with new and imaginative ways to satisfy the customers they get and try to build on any sale, right? In reality this is not the case!
Now I am not talking about when you “the small business owner” is behind the counter or on the sales floor. More than likely you know how to greet and treat your customers. Most retail small business owners are wonderful sales people, but your people are not you. The real issue is when you are doing the rest of your job and others are responsible for the sales process. What happens then? Do they service your customer just like you would?
For the last three months I have been keeping a little checklist in the book I keep in my car to track how I am greeted at every retail store I go into, whether there is any follow up on my initial order and the closing conversation of any retail interaction. The sad results are as follows:
- Over 75% of the time I am either greeted by the the phrases “next”, “next in line” or “can I help you”.
- Over 85% of the time I am asked “anything else” or “is that it” after making an initial order.
- Over 80% of the time the parting words of the sales person were “here’s your change” or “thank you”.
The funny thing is that the 80/20 rule also dominates, because about 20% of the time if they greeted me properly as I will discuss below, then they were successful with their follow-up and close. The fact is that 80% of the people who are responsible for sales and customer interaction fail to do their job effectively. If that is the case in your organization, just look in the mirror to find out who is responsible for this failure in customer support.
Training your people to handle the retail sales process is just as important as making the best coffee, baking the freshest bread, or carrying the hottest merchandise. You can have the best stuff, but the lasting impression of the customer is still influenced the most by how they were treated.
“Next Person In Line!”
I do not know how many times that I have been greeted with that phrase over the years, but if I had received a dollar every time, I would be writing this blog from a water-front home in Maui. The really sad thing is that most times I am the only one in line when I am greeted that way. I usually look around at the empty store and point to myself and ask the sales person “do you think it is me”? They usually just nod their head, totally oblivious to my feeble effort at sarcasm.
We are all taught that first impressions are so extremely important, so why don’t we train our people that way? You can have the cleanest store, the nicest display of merchandise and terrific pricing, but if your people drop the ball, you have wasted all of your efforts setting up the sale.
There are three clearly defined steps that you should start every customer interaction with:
- The Greeting (Recognition) – “Hi, Welcome to Good Stuff” (eye contact!)
- The Introduction (Identification) – “My name is Bill”
- The Question (Appreciation) – “Are you a first time or a returning customer?
- If New – “That is great, then let me be the first to welcome you and tell you about what we are famous for”
- If Returning – “That is great, welcome back, we appreciate your loyalty and let me tell you about today’s specials”
They are either going to bite and let you lead them through the sales process or they are going to know what they want and lead you into the sale. Either way you have made them feel good, established a connection and started the sales process in a positive direction. You have recognized them as a customer, you have personalized the interaction by identifying yourself and made them feel wanted and appreciated for coming in and you have not even sold them anything yet! Why do you think Sam Walton had store greeter’s at the door of every Wal-Mart. It was not just to employ retired people. Recognizing a customer with a simple friendly greeting upon entering the store is powerful.
Did you ever notice that when you go to a McDonald’s drive-thru order station, that you get an automated greeting welcoming you and suggesting that you consider a value meal. It took me a few times to realize that it was a recorded message on a motion sensor. I would tell the recording yes or no, and then start placing my order only to be interrupted a few seconds later by….”can I help you”. Not only was I greeted by a recording, but the real person did not hear what I ordered and asks me if I need help. No, I just like to drive through every McDonald’s that I come across to listen to the nice man asking me if I want a value meal. Right idea, but bad implementation. You cannot replace a personal greeting with a recording that asks a question, especially if no one is even listening to the answer.
Ever stayed at a Disney Vacation Club Resort. If you are a guest at the resort and you come across any of the Disney Team (manager, front desk, security guard, valet, housekeeping, landscaper, etc) at any time day or night you are greeted one way with two simple words…. “Welcome Home”. That is all they say and that is all they need to say. My kid’s would joke and count how many times they were greeted that way during the week and would mimic the greeting every time I came home weeks after we had left Disney. Two words made a lasting and positive impression. We felt welcome, we felt appreciated and we felt at home….
“Anything Else!”
This one drives me absolutely wild! Picture yourself as the sales person. You have a customer standing in front of you. They just purchased or are in the process of purchasing something and rather than converting that into additional revenues, customer satisfaction and probably job security, by knowing one or a list of products that would compliment what the customer just ordered, you stare at them and say the most wasteful two words in retail…. “Anything Else”.
It should be forbidden to say the words “anything else” in your organization. Every sales person should be required to either: memorize two or three follow up phrases to any order that keep the sale moving, know a product or products that you (owner or manger) want to promote each day as an adder to every sale or to know a list of related products that they can suggest with whatever the customer orders. Whether it is behind the counter, on the sales floor, in the show room or on the phone, even over email. You should always make at least one product suggestion and you should never stop nicely suggesting until they say “no, that is all today”.
If your sales people simply suggest a related follow up product or “plus sell” with every sale, statistically they will increase their gross sales volume on average by 20%-25%. Who would not want to increase sales by 25% by just managing the sales process effectively.
- They order coffee, you suggest a muffin or bagel
- They order a pair of pants, you show them a matching belt
- They buy shoes, you show them your socks on sale
- They buy a paper you ask them if they need any lottery tickets
- They buy gas, you tell them that you have gallons of washer fluid on sale
It is not hard and it can become second nature once you train your people effectively and they get over the fact that people will say “no thank you” most of the time, but if 3 out of 10 bite, you have an all-star batting average. We will discuss that more in the future, “watching money walk out of your store”
“Here’s Your Change”
How many times does the sales person turn to you and either say a quick “thanks”, “thank you” or my favorite: “here’s your change”. Do we really want those to be the final words that our company bestows upon a customer who has just spent their money in our store. I do not care if it is $2 for a coffee, $20 for a bottle of wine or $200 for computer software. If you are complaining that the Wal-Mart up the street is eating your lunch on price and you let your people talk to customers that way, than you are probably not going to survive.
Think about what would complete a positive experience. It is not hard. A simple ‘here you go, thanks for shopping with us today, we appreciate it” would work fine. then look them in the eye and smile. Even the airlines say “we know that you have options when it comes to air travel and we appreciate you flying with us”. Then they all stand by the door and say good-bye and you feel good getting off the plane because the captain said hi to you. Admit it!
What Is Your Sales Process?
Every small business should have clear standards and procedures for getting, selling and finalizing any sales transaction. My focus here is directed at retail, but it is just as important for any business to manage the sales transaction effectively, no matter what you sell or who your customer is.
Take time this week to ask yourself the following questions regarding your small business:
- See how you are treated when you go into a store. How do you feel? What did you like and what did you not like about how you were treated by the sales person?
- Do I have a clearly defined (written and used) procedure and guidelines for managing the sales process with my customers?
- If yes, are these guidelines up to date and more important being followed? (take the time to watch and listen)
-If no, start developing one right away. - Work with your sales people (get them involved) to develop a list of “plus sell” or related products that you can promote and then help them gain the confidence to use them. Have a contest; make it fun, but most important make it second nature to them.
As always, post or email me with your comments, questions and feedback. If you need help with developing your sales process please feel free to drop me an email at bsifflard@bssentials.com. I have some tools that I would be happy to share with you. You can also visit Bssential Small Business Solutions Website at www.bssentialsolutions.com or call me at 508-744-4053. While you are at the website, make sure you sign up for my free newsletter or click here to sign up
Bill Sifflard - With over thirty years experience as an entrepreneur, an executive, an author and as a business consultant, Bill Sifflard has a long history of experience bringing innovation, efficiency and success to large and small businesses adapting to evolving markets.
As a premiere Sales and Marketing Innovator, Bill is changing how business integrates traditional marketing strategy with the power and potential of the internet utilizing his "Velocity for Success" matrix.
To learn more about Bill and Bssential Small Business Solutions you can visit http://www.bssentials.com and register for his Free eNewsletter or follow all of his blog posts by clicking on the RSS feed button above. 
{ 2 comments… read them below or add one }
Bill,
Thank you for your article. I found it by googling, “the two most important words in retail are”. When I was a teenager, each retailer I worked for told me, “The two most important words in retail are ‘thank you’.” Like you, I am amazed in these tough economic times that more retailers aren’t paying attention to how (or if!) their staff talk to customers. I’m not sure what part of the country you are in, but I’m impressed that clerks are even saying “thank you.” Where I live in California, staff at 9 out of 10 businesses, at least, that I most often go to *never, ever* say “thank you.” I’m lucky to hear, “Have a nice day,” which makes me cringe at being told what kind of day to have (it’s rude and nervy–after all, a customer could have just had a death in the family that day), especially after the insult of not even being thanked for my cash.
My past employers said the reason saying “thank you” is imperative every time money hits one’s hand (or is paid by card or check), is that business will decrease if customers don’t hear that phrase. It makes sense in two regards: 1) if people don’t feel their money is appreciated, they either consciously or subconsciously won’t be as inclined to spend as much of it at that business, and 2) saying “thank you” is an act of humility, at expressing need for, and appreciation, for others’ money. I found that every time I said “thank you,” it was humbling, and inspired me to provide better and more gracious service to the next customer. It improved my attitude each time, and made the job(s) a real pleasure, to be serving customers. It is the #1 reason I love customer service: saying those words, even though they were required, makes me enjoy the work and sense of service more. I find that when clerks don’t say thank you, they tend to get a poor attitude, make less effort, and seem less happy in their jobs. Telling employees they must say “thank you” to each and every customer at time of payment therefore is likely to increase employee morale, and result in better service overall, I find: not just in myself, but at businesses where they do say thank you.
I find it interesting that, over the past 10 years that the phrase “thank you” has gone out of vogue, at least here in California, that business is so down, especially given what all of my early employers said about business going away if customers aren’t specifically told “thank you” at the time their money is handed over. I do not think it’s a coincidence at all. The employees who don’t say thank you almost always display a poor and less than helpful attitude, and surely this hurts business. These employees aren’t being given guidance on how to interact with customers.
**
I also really appreciate your advice on plus-selling. I’m self-employed, and looking for retail employement as well. Your advice to keep nicely suggesting a related product until the customer says, “No, that’s it for today,” just improved my ability to be a productive retail employee (as well as be more effective in my business.) Not only will I practice that, but I will include it in my job applications. Thank you!
I meant to add:
It seems that we as a country, or at least my state anyway, have been so flush with money over the past three decades that we have developed a sense of entitlement to money, to other peoples’ money, and no longer feel a need or obligation to be appreciative of it. No wonder businesses are struggling!
The other benefit of saying “thank you” at the moment of payment is that it gets the customer clearly associating being appreciated with *providing payment.* If we want people to keep giving us money, it makes sense to create a positive association with paying us money. As my former employers said, “If we don’t state appreciation for a customer’s money, it will go away.” How true, and how telling, in these times.
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