Inside Outdoor Winter 2018

Keeping thing simple applies to your presentations, email blasts, social media posts, and especially your windows. You don’t need to put a sampling of everything you sell in the front window. Secret #2: ExpandYour Categories Consider a display of items made in your community. The idea here is to keep a store’s brand somewhat regional. One regional chain in the Midwest decided to try this concept with no set sales goals. They ended up doing millions in apparel, glassware, blankets, jewelry, handbags, belts, scarves, candles and bath products. Not every item is right for every store. The point is that if you think outside of the box, products are available that have a local connection. Secret #3: Build Customer Loyalty This is a hot topic in retail today, and it starts by capturing customer in- formation. Case in point, nearly half of all households in the U.S. are Amazon Prime members. Since sales to Prime customers are nearly twice that of non- Prime shoppers, brick & mortar stores have become challenged to find ways to keep customers coming in. One such method offered by Resto- ration Hardware is the RH Grey Card. For an annual fee of $100, customers get 25 percent off in every department, 10 percent additional savings on sale merchandise and design services, and early access to clearance events. Loyalty programs, also known as frequent buyer programs, have now become commonplace with most retailers. To be effective, there must be perceived value. The key element is that the customer knows that by being part of the “program” that they are not getting the same offers everyone else does. One note of caution, however. Make certain that you understand what your loyalty program is costing you. Secret #4: Provide Legendary Customer Service Shoppers are tired of being considered faceless numbers in a crowd. They are willing to pay for a bet- ter shopping experience. A recent study showed that more than two-thirds of Americans spend 14 per- cent more with a company they believe delivers excel- lent service. Saks Save Me service allows shoppers to call a dedicated number to resolve fashion emergen- cies and in some markets even sends a wardrobe van. Some preferred customers are offered rides home in a chauffeured BMW. A colleague of mine who flies often for business has been shuttled between con- necting planes in a Porsche simply because the airline values his business. Guarantees and no-hassle return policies are an important part of cus- tomer service. You don’t have to look further than Zappos to see just how loyal customers can be if a brand convinces them they simply can’t go wrong thanks to a liberal return policy Believe it or not, customers who return 50 percent of what they buy are also the most profitable. When I see a sign at the register that states “No Refunds or Exchanges. All Sales Final,” I literally cringe. Stores with this approach will have a hard time surviving. Most often you find this with smaller retailers. One reason, among several, why they remain small – small thinking perhaps? Customer returns are a way of life. Online returns account for a third of purchases. Thirty- to 60-day return policies are now the norm. But why make it easier for customers to bring things back? A recent Journal of Re- tail study made an unlikely discovery. The study claims that the longer a store allows a customer to return something, the less likely they are to actually return it. Something far off becomes more abstract. Something closer becomes more concrete and thus changes the subsequent action. Source: National Retail Federation Most Important Return Policy When Shopping for Gifts In-Store vs. Digitally According to US Internet Users, Nov 2017 % of respondents Source: Promocodes Provides full refund (i.e. returns are not limited to exchange or store credit) Does not require receipt No time limit for returns Does not require bringing original payment method Accepts returns without tags or original packaging Accepts returns for used items Free return shipping Option to return in-store 37.9% 33.6% 20.9% 12.1% 16.1% 10.8% 8.3% 9.3% 6.0% 6.2% 27.8% 11.0% In-Store Digitally Customer Service Training for Associates Source: BRP Consulting Formal training program for new hires On-demand micro-training/education On-demand training/education available via mobile devices Implemented and working well Implemented and needs improvement Plan 37% 29% 29% 22% 24% 3 Likelihood of Using Digital Wallets Over Next Inside Outdoor | Winter 2018 24