Vicious Cycle

Six months ago a grocery store near my home changed hands.  The company that acquired it is a local chain that has been adding many locations in the last couple of years.  At first, the acquiring company redid the interior, opening up the space by taking down dividers, adding refrigerated frozen food units, and expanding the liquor department with a second access from inside the store. From a consumer’s perspective, these changes looked positive.

When a store is being re-merchandised, having bare shelves for a few days is normal.  Deliveries may not arrive on time.  The construction and reset of shelving may not happen on schedule.  Orders may not be processed in the anticipated time frame.   Consumers tolerate these bare shelves as par for the course in store resets. 

However, the bare shelves at this store have not been filled.  In fact, more and more shelves are completely bare or have a single item facing on the edge of a deep shelf.  The magazine holders by the checkouts are completely empty.  The last time I shopped at the store I mumbled to myself, If I didn’t know better, I’d think this store was going out of business.

Then I thought, How do I know it is not?

I based my assumption that the store is not going out of business on the recent acquisition of the location and all the time and money invested in the reset.  Management usually does not risk more money if it is uncertain as to the store’s status.  I also noted that the dated items including produce, bakery, meats, and dairy are all fresh.  The bare shelves house non-perishables such as groceries and liquor.

I’d read an article in the paper that the company had a dispute with a vendor.  In the course of doing business, that can happen to any company.  Thus, I didn’t know if that was an isolated incident or indicated a more pervasive problem.   

From a marketing vantage point, continuous and increasingly bare shelves do not look good to consumers.  They made me feel that I could not find what I wanted, whether that was true or not.  I felt that I was missing something.  I also felt that I would have used my time more wisely shopping elsewhere.

I’m not the only one with those thoughts.  On at least two occasions, others have commented,  “I heard that store’s going out of business.”

To which I responded, “I don’t think so.  It just changed hands.”

The reality is that I don’t know.  I just don’t think so. 

Store management has not said that the store is closing.  Management has said nothing.  That silence has created a vacuum that is leading to speculation on the part of consumers.  Since the bare shelves look like a store that is closing, consumers have come to that conclusion and are spreading it around via word of mouth.  As we know, word of mouth is powerful marketing, whether it is good or bad for the business.

When a business has a problem, it needs to be addressed.  While problems happen that management cannot control, management can control communication with customers, and customers want to know what is going on.  They want the truth.  If they don’t get it, they will create their own explanations and spread them around via word of mouth.  The result will impact the business negatively and create a vicious cycle of customers going elsewhere.  Doing that could weaken the business enough to cause it to close. 

If you have a situation at your business that affects your customers negatively, tell them the truth.  Do it as soon as possible.

This week's marketing trivia challenge is What situation have your explained to your customers?
E-mail me your answer.  

Ask Something Relevant

Lately I noticed tellers at financial institutions and checkout people at stores are purposely attempting to engage their customers in small talk.  Since the effort seems unnatural, I assume they are being trained or at least directed by management to do this.  I further assume they have been instructed to avoid certain topics such as the weather or at the financial institutions any reference to the customer’s accounts.  Instead, they all have the same question, “What are you doing today?”  If the day is Friday or Saturday, they ask, “What are your plans for the weekend?”

I find these questions annoying for several reasons.  First, I don’t necessarily want to share what I am doing.  That may be too personal or require more explanation in order to make sense.  Either way, I am not interested in pursuing that conversation.  Attempting to reply without giving out any information makes me uncomfortable.  I would like to say “None of your business,” but that would be rude.  Yesterday I heard a customer next to me answer by saying, “I’m bored.” 

I almost laughed out loud.

Second, the person asking really doesn’t care, and that shows.  The person’s question is almost an automated response.  The attitude is “Okay, I’ve been told to say this so I will.”  He or she has no interest in remembering the customer’s response.  The question is to fill awkward time and follow orders from management. 

I’m certain management’s intent was to show interest in the customer. 

Finally, I know from experience that this intent could be accomplished but needs to be done differently.  Rather than instructing employees to ask the same question of every customer on every visit, teach them to be observant.  Have them notice something about the customer.  A good focus is the customer’s clothes.  What is the customer wearing?  Does a color stand out?  Does an item of clothing look comfortable or warm?  Does the clothing have an insignia on it?  Does the clothing indicate the customer has been working?

From the customer’s clothing, many comments or questions could be asked.  If the color stands out, a comment of “That’s a bright color, That’s a nice color on you, or That’s a unique color” could be made.  If the item looks comfortable on a hot day or warm on a cool day, say that.  If the clothing has an insignia, the insignia gives insight into the customer being a fan of a team or working for a particular company.  Noting the insignia could lead to a question of how the team looks this year.  If the insignia is for a company, a question of how the person is connected to the company could be asked.  If the customer is in a uniform or dressed in work attire, a question of how was work today could be asked. 

Noting the customer’s clothing and making a comment from it prompts a question that is relevant to the customer.  This question immediately involves the customer and elicits a response.  He or she feels noticed.  This question is personal because it originates from the customer’s clothes yet general because it is not probing for details of a customer’s activities.  This question shows the engagement of the employee through observation.

This question promotes interaction between customer and employee, which is the best way to communicate interest in the customer.

This week's marketing trivia challenge is What relevant question have you been asked?  E-mail me your answer. 

Customer Non-friendly

Recently, my roommate bought a new flat screen TV. Wanting to patronize an independent dealer rather than a big box store, she walked into the new store in town which was a branch of a store based in South Dakota. The store stocked Toshiba, the brand that she wanted. She found a stand that she wanted, too, and ordered it. Once the stand came in, she planned to complete the deal and have both delivered.

That’s when the struggle began.

She called at 5:20 p.m. on a Sunday with no answer. Since she assumed that the store would be closed at that time on Sunday, she was not surprised. However, the phone did not have an answering machine, either, which today is quite amazing. The following day was Labor Day. In an attempt to find out the store’s Labor Day hours, she looked at the store’s Web site. On the company’s location page, one South Dakota store was revealed, but no other stores showed up. The page loaded slowly, possibly due to the Google map placement, and whether other stores were on the page or not, she could not tell. Whatever was the case, she could not get her information.

Then she called again. No answer. No answering machine. She was very frustrated.

Finally, a couple of hours later, someone answered the phone. One of her questions concerned when the TV would be delivered. The TV was at the store, but she was waiting for the stand that she had ordered. “Our warehouse will know on Tuesday if the stand is in,” the salesman who had sold her the stand and TV replied. “I will call the warehouse that day. If it is in, we will get the stand on Thursday, and we can deliver both later this week. I will let you know what I find out.”

Tuesday came and went, and he didn’t call. Thursday was the same story. Two and a half weeks passed before he called. “The stand is here,” he said. “Can we deliver the TV and stand tomorrow?”

I was astounded. First of all, he had not followed up on his promise to check on the delivery status of the stand. Even if all that he had to report was that the stand would not be in that week, the salesman would have maintained his communication and his credibility with a call. Salespeople who call only when they have good news are making a big mistake. What they don’t realize is that silence speaks volumes. Silence leaves the customer wondering what is happening. Silence builds the customer’s frustration. Communication trumps silence any day and builds a relationship with the customer. Silence does not.

The second reason that I was surprised was his expectation of delivery the following day. He either felt lucky or was clueless. In this hectic time, customers’ schedules are seldom that flexible. Mostly, they are just the opposite. His action seemed all about him. “Okay,” he thought, “this stand in finally here. Let’s get this delivered so that I can finish this sale and get my commission.”

He would have demonstrated his interest in his customer if he had called and asked what day worked best for her to take delivery. Had he done so, he would have discovered how anxious she was to have the TV. Of course, he could have known that, too, if he had followed up on his promise and called back two weeks prior. Instead of showing his interest in her, he called with a question as if he were still selling. At this point in the sale, he needed to recognize that he was no longer selling; he was servicing. Unfortunately for him, he didn’t know the difference.

You will shake your head when you hear the end of the story. When the delivery men pulled the packaging off the stand in the living room, they found that the glass in the stand was broken into several pieces. Evidently no one in the warehouse or at the store had checked the stand prior to delivery. At least, I assume that due to the surprise of the delivery guys. Now she is waiting again for a replacement stand to be delivered.

This company’s management and staff would develop customers if they understood that little things make the difference in handling customers. Little things leave customers happy or dissatisfied. Little things spread good word of mouth or not. Little things are customer friendly or non-friendly.

Check on your little things. How are you and your staff handling them?