Where’s the WOW! in Retail Stores?

December 1, 2009

Closing Store

Most retail experiences suck. They just do. It’s rare that I go into a store and leave feeling amazed. I might be happy with what I bought, but beyond that, the experience is usually “Meh.” And some retail experiences are so bad that you leave the store angry, even if you did buy something that you went in wanting.

Chris Brogan recently complained about a particular retail experience and the discussion is heated to say the least. For that reason alone I think it’s worthwhile; it’s good for these sorts of things to get aired publicly on a popular site like Chris’ blog.

I haven’t had any atrocious retail experiences recently, but it’s bound to happen with the Holiday Season upon us. But while on a recent shopping excursion with my wife, I couldn’t help but think that retail stores could do so much more to attract, engage and excite people. Like in the world of startups, there are too many “me too” retail stores, and they do nothing to really stand out, be memorable and generate critical buzz for themselves.

So here are some thoughts / ideas / ramblings on the retail experience:

It Starts with the Brand:

The brand in retail is so insanely important. This just can’t be overstated. Retail stores & companies have to stand for something more than their product. In fact, they’re not really selling their product at all — they’re selling something else. An experience. A belief. A higher purpose. S-O-M-E-T-H-I-N-G.

My wife recently received a gift card from lululemon. It came in a small bag. On the bag it says:

“lululemon athletica creates components for people to live longer, healthier and more fun lives. If we can produce products to keep people active and stress-free, we believe the world will become a much better place.”

And here I thought they sold overpriced pink sweatpants. Clearly they don’t. The bag has a bunch of sayings on it, things like “Do one thing a day that scares you.” And, “Life is full of setbacks. Success is determined by how you handle setbacks.” And, “Creativity is maximized when you’re living in the moment.” Damn! Now I want a pair of pink sweatpants!!

That’s a brand.

Brands don’t live forever, they need to evolve and fight to stay relevant, but they sure do have a huge impact.

You Can’t Compete on Price:

Retail Sales

One of the stores we were in was having a 70% off sale. The place was packed. But that’s at 70% off. I wonder what it looked like at 25% or 50% off? Most retailers are already offering that level of sale a few days into a new season. And what happens when 70% off isn’t enough? Now I want 80% or 90% off. Price isn’t a competitive advantage anymore. And it’s certainly not an advantage that smaller retailers can leverage. Walmart = Low Prices. You can’t win that game. So what else can you offer?

The Element of Surprise!

Retail stores should be leveraging surprise. I don’t even think it would be that hard. Surprise drives word-of-mouth — and that’s what stores need. They need lots and lots of people talking about them. I had a couple simple ideas while I was shopping:

  • Hourly giveaways. Get a megaphone, a stool and some tickets. Hand out tickets to people in the store. Every hour, stand on the stool and call out ticket numbers. The winners get $50 off their purchases right then and there. That’s not a sale, or competing on price. It’s just fun and a surprise. You can make it even more fun by doing it at random times. And don’t just use boring tickets, print nice tickets with something meaningful on them (tied to your brand.) It becomes something that everyone in the store collectively experiences and enjoys.
  • Cross-store promotions. Instead of offering people a coupon or discount on their next in-store purchase, why not offer them a deal at another store? And have that other store do the same thing for you? Two non-competing but related stores could increase the foot traffic between them and build some nice loyalty.
  • Play 20 Questions. Guys always dread the questions they get from their significant others: “Does this make me look fat?” “How is this color on me?” “Do you think this is too long? Too short? Too tight? Too baggy?” A smart clothing store would print out cards with answers to these commonly asked, often feared questions with great answers such as, “You look gorgeous.” “That color doesn’t do your beauty justice.” “I don’t know, but I love you.” “Just buy a shorter skirt to go with the longer one, so you have plenty of variety.” I’m being a bit ridiculous here, but in no way trying to be condescending to anyone. Everyone would know it’s a joke, but they’d get a laugh out of it, and I guarantee you it would get people talking.

Honesty is the Best Policy:

I actually saw this in action — A woman walks up to a salesperson and asks, “Does this look good on me?” Since she’s already asking we can assume she’s uncertain. Most of the time I’ve seen salespeople say, “Of course! It looks fabulous.” (Translated: Buy! Buy! Buy! And buy some more. And get out of my face. Unless you’re buying right now!) But the salesperson in this case replied, “Actually, I don’t think that suits you…” And then she followed up with a very reasonable, seemingly honest explanation. The woman kept nodding in agreement; she just needed support in her non-buying decision.

You can bet the woman was happy that she was “talked out of the purchase” (instead of going home, doubting herself and being frustrated by a pushy salesperson). You can also bet that the woman spent more time in that store, bought more stuff and told her friends about the great, honest service. For the scorekeepers among you, that equals: Engagement + Money + Word-of-Mouth. That’s like a Holy Trio..

Motivate Employees:

The employees in a retail store are so important. You can have the best brand, marketing, word-of-mouth in the world, but if you get one lousy, unresponsive or grumpy employee you – as the consumer – walk out pissed. And when you’re pissed you complain a lot. We tend to complain more publicly than praise.

In two stores I was in over the weekend I was being “processed” by employees who were asking other employees about taking breaks. One employee was ringing up my stuff and asked the girl next to her, “If you work 10 hours how many breaks do you get?” And I care, because?

Motivating low-paid employees in retail stores has to be tough. But we’ve all experienced great service in shops and restaurants where the employees make all the difference in the world. So figure this out. And fast.

Retail Experiences Don’t Have to Suck:

It’s really as simple as that. Some of the retail experience is challenging. I think motivating employees might be one of the hardest things to do on a consistent basis. Brand building is too. But there’s no excuse for not building a brand, finding strong (and real!) differentiators, integrating in exciting marketing with surprise, and pushing your staff to perform on a consistent basis. (Incidentally, there are critical lessons here for all businesses and startups.)

I know there are great retail stores. And I’d love to hear your positive experiences (as well as your negative ones.) I’d love to hear your ideas on how retail stores can put the WOW! back into their existence.

images courtesy of shutterstock

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  • I have to say that I must have a "treat me like crap" tattoo on my forehead, for I always get mediocre service that then turns into really bad when I complain to management.

    You'd think, in this economic environment where nearly everybody's job is on the line, that employees would really value their jobs by doing right by customers. However, it seems that everybody in retail has a bad attitude. Nowhere I've been in the last 6 months has been exceptional on the positive side.
  • I agree that " honesty isthe best policy" the employees somtimes behaves you as a princess whatevet you try on and this is disgusting :)
  • Employees who are not motivated can cause serious damage to your business. They might end up sending away all the customers you've done all to acquire, so employers be on the watch
  • Honesty in business is good, but you have to be diplomatic too, because you might endup not selling at all if you keep teeling clients this or that doesn't fit. Try something like "this is good , but i think that one would look better on you" Even show avariety that you think would be better.
  • There are lots of ways to say, "That's not right for you." Diplomacy is a good move, but I wouldn't be overly cautious, because I think you can very easily come off as cheesy, slimy and dishonest.
  • Ben i think you hit the point with this article. Wait until i hand this to my brother who runs a retail shop. I mostly enjoy the what you say on the element of suprise. that's a great strategy to make your boutique interesting and attract more and more clients in a community like ours.
  • Glad you liked the post...
  • sara
    I work for lululemon and just want to say that we do create lasting positive experiences for our guests, and pride ourselves on the experience that they walk away with. It is so important, especially this time of year, to create a safe space for the consumer to be in. there are enough crazy retailers out there.
    luluelmon is more than just a retail space, it is a culture and that is what we hope to creat for each person that walks through out doors.
  • TAB
    It’s clear that you don’t understand retail. I have been working in retail for 30 year across the world we hear all these complaints but you have no solutions!! Well how would a retail store look and feel to you? How would you attract the right staff? What products would you sell? How would you market yourself? If you can’t come up with some examples then don’t have a dig at retail as I am sure the business that you work within has some major problems that you should fix first before complaining about things you have no real understanding of.
  • Thank you for the comment. I always appreciate contrarian views. However, I do know what I'm speaking about because I'm the most important person to retail businesses -- a consumer. I'm the customer. And if you ignore the customer, you lose, no matter what business you're in.

    Every industry has problems. That doesn't mean people can't complain or discuss issues in other industries as well.

    And I did provide some ideas - very specific ones in fact on how to use elements of Surprise inside stores. They might seem gimmicky, but I don't think they have to be. And I pointed to a positive experience / brand in lululemon. In fact, a store manager from lululemon emailed me after hearing about my post from someone else in their organization. That's smart. That's customer service.

    I certainly don't have all the answers, but I can recognize issues when I see them. And as a consumer, please tell me what stores you operate so I make sure never to shop there. That's the power of consumers.
  • TAB
    OK I do feel that retail is the easy target and I do feel passionate about my business. I just get frustrated when I see so many negative comments on Blogs.

    The most important part of retail is great service this can only be achieved through recruiting the right staff and then giving them the training to meet the customers needs.
    I don’t agree with you when you say that customers need surprise (gimmicks) or maybe the surprise is receiving exceptional service from when you enter the store, during your visit, when you leave and follow this up with a top quality after sales service. This is how I get my customers to return again and again. You also need to be aware of what they want don’t just expect that the stock you buy is what the customer wants do your market research, be first to market with innovative products that push the boundaries don’t get stuck with last years ideas or models. Maybe this is the surprise?
    You have to engage your staff to want to make a difference as I am always saying to them they get far more feedback from our customers than I ever will so take this feedback as no feedback is poor feedback and do something good with it make a difference so when your customer comes back next time they can see you have responded, changed and improved. Again don’t stand still move with the times.
    By the way we ask for feedback from all our customers and over 90% are very satisfied and in retail that not bad but we still have 10% we need to understand them better and provide them with a better shopping experience.
  • I think you do have a combination of surprise and brand there. Consumers almost expect bad service these days, so give them the opposite and they're surprised. Do it consistently and you've built yourself a real brand. And that can be a huge differentiator.

    Also, I don't consider the recommendations I made gimmicky - I consider them extensions of a brand.

    Finally, I do agree that service is critical, but there are retailers that succeed without it. Costco is a good example. People STILL pay membership fees to Costco, and I doubt the prices are any better than Wal-Mart. So why is that?

    But for small retailers, I do think customer service and personal service are differentiators that consumers do crave.
  • I feel the same thing when I walk into retail stores! I think the most common use of stupid discounts is in the clothing sector, as most stores have their own range and can put whatever origional price they want on things. On the other hand someone selling consumer electronics working on slim margins has their 20% discount sounding tiny when in reality it's quite a lot.
  • SkipAnderson
    Ben, great post. Retail has largely become a "me too" sector. I'm trying to change that. I see you are, too. Best of luck to both of us. They really need a double dose of WOW right now.
  • I feel the same thing when I walk into retail stores! I think the most common use of stupid discounts is in the clothing sector, as most stores have their own range and can put whatever origional price they want on things. On the other hand someone selling consumer electronics working on slim margins has their 20% discount sounding tiny when in reality it's quite a lot. There also comes a time I think when the discount becomes so much (at the 80 or 90% maybe?) that the consumer starts to believe that either it's not genuine, or that there must be something wrong with the products or store.
  • Most blogs suck. They just do. It’s rare that I go on a site and leave feeling amazed. I seldom am happy with what I find, but even when I do, the experience is usually “Meh.” And some web experiences are so bad that you leave the site with this big empty feeling, even if you did read something.

    Ben, I just had to say that. Retail gets beat up unfairly all the time. Think about it:

    There are stores doing a great job and providing outstanding customer experiences.

    There are stores providing that one on one sales experience that leaves feeling good about our decision and ourselves.

    There are stores providing a great training ground for our teens and college grads on responsibility and how to deal with the public. Think about that one for a minute, who else is giving that age group a chance. Next time you feel that the clerk is not paying adequate attention you may want to think about how engaging of a customer are you?

    Are these stores screaming for protection from Walmart or from internet sales or asking for bailouts? Retail is tough. We are forced to walk a fine line. When we go out of business, people can easily say we did not provide the differentiation or the experience to bring customers in. But did the majority of the public give us a fair chance or did they receive an outstanding shopping experience and then ask us to meet the "online" price. We not only have to be creative enough to bring customers in the door but also savvy enough to compete with the multiple channels of competing distribution.

    My hat goes off to retail and the brick and mortar stores that are surviving! Jeers to the internet folks that are beating them up not in the marketplace but correcting them on how they should be doing business.

    If you want a formula for success and how to put the WOW back into retail, what I have seen work is the ability for the decision makers of the store to know their customers. There is no gimmicks, that will drive people to your store on a consistent basis. It the ability to adapt the ever-changing needs of your customer base and providing them with outstanding service.

    P.S. I enjoy your blog, Ben. However, this Christmas season try to be nice to your retail stores!
  • Joseph - First, thank you for the comment. I really do appreciate it.

    As for being nice -- I'll be nice if the retailers are nice :)

    And as for "how engaging a customer I am" -- honestly, that's not my responsibility. I'm taking hard earned dollars and handing them over. If I was being rude or obnoxious that's a different story...

    I know retail is tough. I would never go into retail myself - it's a killer. Expensive to get started, high overhead, inventory, big risk ... it's a tough, tough world. So kudos certainly to the retailers that survive.

    And certainly there are great stores -- people are welcome to share them (including you!) I know of quite a few retail stores that are given plenty of kudos. And there are retailers that I do enjoy shopping with.

    But if the answer is, "it's too hard" then I have to say, "Why bother doing it?"
  • It is hard like any business. However, never said too hard. We love retail and have grown a home decor business in a trying economy and region. The kudos are to my wife along with her staff. They still carry your packages out to the car and seldom does a customer leave without a hug!

    If there are retailers that you enjoy shopping with, what makes them special? I would love to hear.
  • Joseph - It took me awhile to think about this, but I have some examples now:

    * Sony Store: High-end, feels great, fun / interactive environment

    * Indigo: I shop for books a lot. I go to two different Indigo bookstores near me. They have great kids sections, which is important for me, places I can spend 30-60 minutes with the kids doing something worthwhile (and buying stuff!)

    * Costco: You can't go wrong with samples.

    * Apple Store: It's insanely beautiful, and the people there are helpful + smart.
  • Wow........there are really some tie breakers........and some of these do really work as I have tried it out in my own profession. It is not only a motivator for the customer but also for internal business employees as well.
  • I'm going to sound like an old fart here - but I find that today's young folk (the people working in these stores) have no service orientation. They can't be bothered helping you. And when you show up at the cash they keep talking away to their coworkers.

    Startups get that outstanding service is strategic. Retailers, especially given the importance of brand value and how much they invest in it, should follow the same principle.
  • Agreed 100%. You don't sound like an old fart at all. This is exactly what happened to me on two occasions. Instead of interacting with me - the customer - the person at the cash was talking to another employee; and about taking a break...

    I wasn't that offended by it, but it was lame.
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