Showing posts with label Retail. Show all posts
Showing posts with label Retail. Show all posts

November 28, 2014

Micromanaging Your Customers

Standing in line at the store the other day, I've got to to say that I sort of really resented this ridiculous check out line.

We are not in kindergarten and do not need little footsies and signs to tell us where to stand, how far apart, and who is up next in the line.

Actually, it's really not all that complicated--we can figure out to lineup in front of the counter and wait our turn civilly.

Micromanaging your customers (or for that matter your employees) is a pretty stupid idea.

Get your own house in order--and do a good job servicing the people that are paying you (or working to make you a success).

How about you take your little feet over behind the counter and get the line moving that much faster and stop making us wait so long to begin with to give you our business.

Happy Black Friday...loosen the reins a little won't you and you'll find a happier customer (and employee) base and make some more money in the process. ;-)

(Source Photo: Andy Blumenthal)
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November 26, 2014

Goods AND Serices --> AMAZON

Really like what I read yesterday...Amazon is expanding from selling goods to also adding services.

Amazon is the #1 stop for just about any daily purchase (except things like cars and houses, which I think Amazon will eventually consider for an acquisition in the future as well). 

With their nearly effortless shopping experience, free shipping (for "Prime" customers), and easy returns, it is eCommerce as it was meant to be!

Now according to the Wall Street Journal, Amazon is adding local service providers from plumbers to electricians.

The cross-selling possibilities are luring--so that as you purchase a household item, up pops local services providers for someone to install or service the item--it's all integrated.

Moreover, Amazon will do background checks on these service partners, determine if they have liability insurance, and offer a money-back guarantee on the services rendered (Oy vey to Craigslist and Angie's List).

Amazon is a brilliant retailer, once they have holodeck like virtual reality experience where you can simulate actually being next the goods to look at them, feel them, even try them (on), then we will achieve shopping nirvana and will never have to enter a Best Buy or other useless and obsolete bricks and mortar retailer again. ;-)

(Source Photo: here with attribution to Yo Mostro)

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January 8, 2014

Amazing Amazon

So Amazon should be renamed Amazing, because they are.

They are the best online retailer--love 'em!

SELECTION: Amazon has everything. 

PRICE: Amazon is reasonably priced.

SPEED: Amazon Prime gets you your goodies delivered in under 48 hours. 

RETURNS: Amazon takes returns easily; virtually no questions asked. 

Amazon is so customer focused that you can even email Jeff Bezos, the founder and CEO himself, at Jeff@Amazon.com. 

Aside from their highly successful retail operation, they have the Kindle tablets, Amazon Web Services (AWS) for cloud computing, Kiva Robots for warehouse operations, and more. 

So what's the secret of their success?

One thing, according to the Wall Street Journal, is their tough hiring practices. 

Amazon has "several hundred" interviewers called "Bar Raisers" that give candidates extremely thorough interviews.

Bar Raisers typically have conducted "dozens or hundreds of interviews and gained a reputation for asking tough questions and identifying candidates who go on to become stars."

Typically, it "takes five or six employees at least two hours each" to evaluate and vet an applicant. 

Amazon makes all this effort in recruiting to weed out people who are the wrong fit for the company. 

They believe that it's better to invest in a sophisticated recruiting process than to make costly hiring mistakes. 

While this certainly sounds like a well thought out and vigorous hiring process, the article makes little to no mention of performance measures showing that their hires really are better matches, have superior performance, or stay with the company longer. 

The one anecdote given was of a Bar Raiser who found a candidate for a programming job that "didn't know much about the specific programming language."

Barring some real statistics though, either you could conclude that Amazon's hiring process is truly superior or perhaps question why it takes them 5 to 6 interviews to do what other successful companies do in 1 or 2. 

Either way though, Amazon is a amazingly great company. ;-)

(Source Photo: Andy Blumenthal)
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July 26, 2013

Sears Couldn't Sell An Appliance Let Alone A Rolex

So I was amazed at the depths to which Sears will go to try to save their horrible brand. 

The Wall Street Journal (21 July 2013) described how Sears online has started a marketplace where they are now hosting the selling of high-end goods at their low-end department store site. 

Sears which normally sells kitchen appliances, tools, and crappy clothing is now trying to market $33,000 Rolex watches and $4,400 Chanel handbags.  

Good luck to that after their failed 2005 merger of Sears and Kmart--as if combining two lousy companies make one good one.

Since 2005, the company revenue has steadily declined about 25% from $53 billion to $39.9 billion and they lost $4 billion in 2011-2012. Yeah, that today's Sears!

My own horrible experience with Sears:

I went online to order a range, and Sears botched the order over and over again and kept me holding endlessly throughout the miserable process and at each stage asking for my feedback and apparently doing nothing with it. 

Problem #1: It started out pretty simply--I asked for some guidance comparing a couple of models, chose one, and they entered my order. However, when I looked over the order, they had entered the incorrect delivery date--when I wasn't available. So I contacted Sears back to correct the mistake, but they couldn't get their system to reflect the correct date--it would only show the original incorrect date--and this is a multi-billion dollar company? But I shut an eye when a supervisor finally assures me that it will arrive on the correct date. 

Problem #2: The next day or so, I get a call from a Sears customer service representative who asks me whether I am the Andy located in XYZ (some G-d forsaken location)--ah, no! Well, they explain that's where they have my order shipping to. They can't explain how that happened, but promise Sears will fix it. 

Problem #3: This time, I get a call from the Sear's installation company. They are demanding that they will not come out to do the install unless I pay them a required inspection fee.  But I explain that my order from Sear expressly states that shipping and installation are FREE. Sorry, they tell me free is not free, and if I have a problem, here's a number to their national whatever line. 

Three strikes, Sears is out--I contact them to review what had happened and to cancel this order. They refuse to cancel it--again, I think to myself this is a multi-billion dollar company? Over and over again this goes on, until finally they agree to cancel the order and refund my money. 

All this nonsense literally wasted hours of my time.

Sears is no longer that brilliant mail order catalog of the early 20th century; now they are a dumpster diving junk company trying to sell brand stuff, but they are laggards to the brilliant Amazon and eBay retailers--and soon Sears will be out of business headed to the big retail trash bin of history. 

The Rolex watches and Chanel bags are just another Sears circus sideshow. ;-)

(Source Photo: Andy Blumenthal)
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March 22, 2013

Down In The Dumps

This is a display at a retailer in posh Rockville, Maryland.

As crazy as these mugs are including their $4 price tag, what adds to this comical scene is that there is the broom leaning up against the stack on the right, which I suppose you would rightfully need if these mugs were accurate. 

I am sitting here thinking (briefly--very) about what exactly the social commentary is for these nasty mugs, and I believe that this is about people wanting to let down their (no, not their pants!) facade of perfection and propriety and having to do everything right at work and at home, and just instead for a while being silly, crude, and even (a little) stupid.  

It's like the person who says the most inappropriate thing at the most inappropriate time and says, "Did I say that?" And everyone starts laughing as the tension of the moment is swept away. 

I think to some extent we all need that...to break the tension of the everyday rat race we live, and to give everyone pause to just say or do something a little silly and for everyone just to laugh it off. And then the real business can go on with everyone knowing that there are real human beings behind those suits and stone faces. 

Anyway, this was probably the strangest display in a retail store I have seen, outside of the Village in New York City, but that's another story. ;-) 

(Source Photo: Andy Blumenthal)
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March 2, 2013

Sony, From Hipster to Nerd

Gone are the days when Sony made innovative products like the Walkman and great products like televisions that you willingly paid top dollar for. 

Bloomberg BusinessWeek (18-24 February 2013) reports on Sony that "after eight years of losses in the TV business, it projects a $215 million profit this year--only after selling its New York headquarter for $1.1 billion."

LA Times reported last May that Sony announced its largest ever loss for year-end March 31, 2012 of $5.6 billion, nearly double its prior-year loss of $3.2 billion. They also announced layoffs for 10,000 employees. 

Sony is reorganizing and shedding businesses (displays, chemicals, etc.) and according to Bloomberg looking to generate 70% of sales and 85% of profit from just 3 remaining businesses--cameras, smartphones/tablets, and gaming. 

However, Sony has lost its way...

Maybe it started in the 80's when Sony lost out in VCR (videocassette recorder) format wars with its Betamax to VHS, and it continues today with a lack of innovation in the mobile technology marketplace. Anybody want to buy a Sony Ericsson phone?  Ah, no! 

Additionally, if you have ever been to a Sony retail store--probably not--they are a truly sad imitation of Apple and virtually nobody is in there. Hello--echo.

Sony is not only losing the technology war, the retail war, and the market share (it has only 4.5% of the phone market according to the Wall Street Journal) and earnings war, but also the branding war and they have just become plain uncool.

Sony's products have names that are unrecognizable, unpronounceable, or just plain alphabet soup. 

Do you want to buy a MacBook or a Vaio, iPhone or Xperia, Kindle Fire or PRST, a Sharp Elite or XBR, an Xbox 360 or a PS4?

The answer is obvious to everyone but Sony. ;-)

(Source Graphic: Andy Blumenthal)

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December 10, 2012

I'm Looking At You Looking At Me Looking At You

Almax, the Italian maker of mannequins has a new high-tech version that does more than stand around and look pretty.

The EyeSee Mannequin has a camera built into its eye that watches you while you shop. 

According to Bloomberg BusinessWeek (6 December 2012), the EyeSee Mannequin sells for about $5,130 and it conducts consumer profiling--using technology to identify criminals--it determines your age, gender, and race and tracks your shopping patterns. 

Newer versions of EyeSee will likely have a sensor for hearing you as well, so it can "eavesdrop on what shoppers say about the mannequin's attire."

Next to these mannequins, you have to consider who are the real dummies, when everything you do and say can be monitored. 

Next time, you're peering at that mannequin, be careful, it may be peering right back at you--and when it says something be ready to jump. ;-)

(Source Photo: Andy Blumenthal)

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June 15, 2011

Apple Store "Heaven"

The Apple Store is always packed with people--it's like they are just camped out there, permanently.

According to the Wall Street Journal (15 June 2011), the Apple stores are an unbelievable success story:

1) The 326 stores sold about $11.7 billion worth of merchandise in 2010, and have an estimated 26.9% profit margin--compared with about 1% margin for Best Buy before taxes.

2) They led with sales per square foot of over $4,406--higher than Tiffany at $3,070,, Coach at $1,776, and Best Buy at $880

3) More people now visit Apple's stores in a single quarter than the 60 million who visited Disney's 4 biggest theme parks last year.
And people are not just "window shopping," but people are actively engaged trying out, testing, experimenting with the latest Apple products sitting out on the display desks.

Of course, there are also lots of sales people in their bright red Apple shirts ready to help, answer questions, and even sell you something.

Apple's stated "sales" philosophy--"not to sell, but rather to help customer solve problems."

Thus, employees receive no sales commissions and have no sales quotas--that's definitely pretty novel! (The exception is that "employees must sell services packages with devices"--I've always been a little leery of those, thinking why do I need the service package if the product is supposedly such high quality to begin with?)

Apple focuses their team on customer service, and their 20007 training manual uses the APPLE acronym as follows:

A--"Approach customers with a personalized warm welcome"
P--"Probe politely to understand all the customer needs"
P--"Present a solution for the customer to take home today"
L--"Listen for and resolve any issues or concerns"
E--"End with a fond farewell and an invitation to return"

I sort of like it--no where does it say to sell, up-sell, cross-sell the customer, but rather it's much more about services and solutions.
At checkout, the salespeople can ring you up from where ever you happen to be in the store on iPod touches with credit card readers.

And trouble shooting Apple products is done at the "Genius Bar"--something like the Geek Squad on steroids. This is where things start to get a little weird, since Apple only pays their geniuses something like $30 an hour, so but for the love of Apple, what are they doing there?

Overall though, I think the whole store experience is pretty ingenious: from "the clutter free look using natural materials like wood, glass, stone, and stainless steel" to the large image color displays of the products dotting the walls, the stores are inviting, hip, and you know when you walk out with a product, it'll be plug and play, immediately functional, and extremely sleek to match.

J.C. Penny made a brilliant move announcing the hiring of Ron Johnson as their new CEO, effective November--Ron is the brains behind the Apple store design. If Ron can Apple-fy the Penny stores, wow wow wow, but that this is not a sure thing, since Apple products are cool and sort of sell themselves anyway--they just needed the right ambience.

(Source Photo: Andy Blumenthal)

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April 27, 2011

Smartphone Apps For Shopaholics

Shopping

In the old Ginsu commercials, they used to say "In Japan, the hand can be used like a knife...but this method doesn't work with a tomato."

Now, in the the United States and elsewhere, the smartphone can soon be used like a wallet, and this does work with tomatos or anything else you want to purchase!

Electronic payments are taking on new meaning as we go from paying with traditional credit and debit cards or even payment services like Paypal to actually using our smartphones to make those payments.

Wired Magazine (November 2010) reports that "Google's newest iteration of its Android phone OS will include a wallet that lets you use your phone to make payments by tapping it against a cash register."

According to Eric Schmidt, CEO of Google, he envisions that "This could eventually replace credit cards."

"Like the technology built into debit cards that can be used to make a payment by bumping against a reader at a store or gas pump, Android 2.3 devices that have the right on-board chip will be able to make payments using stored credit card numbers or other payments systems such as Paypal."

Payment technologies coupled with context-aware computing (such as location awareness) will enable your local merchants to send shopping suggestions, reminders, coupons, loyalty programs rewards, and targeted deals to customers--all over their smartphones.

Aside from e-Payments, retailers are looking to up the ante in their competition with online merchants.

According to the Wall Street Journal today (26 April 2011), stores and malls are "threatened by the rapid growth of online retailing", where merchants are able to offer everything from product search, free shipping, easy returns, often no sales tax (like Amazon) and broadcast deals over the social networks like through Groupon. And while "online sales still account for a just a fraction of overall retail sales, they are growing rapidly gaining 12.6% last year to $176.2 billion."

Therefore, brick and mortar retailers are looking to offer a host of app functions for everything from creating online shopping lists, in store product search, you-are-here location functions, mall directories, parking-spot markers, reward programs, and display promotions.

So aside from iPhone plug-in for taking credit card payments on the smartphone (the topic of a prior blog), there are a lot of smartphones Apps and OS features coming that will make shopping easier, friendlier, and generally more convenient.

So in case you needed another excuse to go shopping and indulge...try out some of the new smartphone apps that will make your experience even that much more decadent. ;-)

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April 9, 2010

Apple’s Self-Sufficiency Model

Apple has an amazing self-sufficiency model, where they have only 6 desktop support analysts for 34,000 worldwide employees, 36 helpline agents for 52,000 computers, only 38% of their IT budget is for baseline operations and 62% for innovation, and their IT spend is just .6 of 1%. These are numbers that most CIOs dream of. And of course, that’s only the beginning of the Apple story…

There is no doubt about it Apple is firing on all cylinders. Apple has become a $50 billion a year company building and selling technology products that consumers are salivating for—whether it’s a MacBook, iPhone, or the new iPad—everyone wants one, and I mean one of each!

Apple’s slogan of “Think Different” is certainly true to form. It’s reflected in their incredibly designed products, innovation in everything they do, and the keen ability to view the world from their user’s perspective.

Here are some amazing stats on Apple (heard at the Apple Federal CIO Summit, 8 April 2010):

  • Apple as the highest gross revenue per square foot in retail at $6250.
  • Apple’s online store is the most visited PC store and is a top 10 retail website
  • iTunes has over 125 million user accounts and does 20,000 downloads a minute
  • The iPhone 3GS is ranked the #1 smartphone in customer satisfaction by JD Power Associates and has over 150,000 apps
  • Apple processes over 1.9 million credit card transactions per day
  • Apple’s MobileMe has over a million subscribers
  • Apple is ranked #1 in customer satisfaction by Consumer Reports, 10 years in a row.
  • Apple is ranked the most innovative company by both Fortune Magazine and Business Week.

Here are some of Apple’s self-proclaimed keys to success:

  • Steve Jobs—A leader who makes it all happen
  • Innovation—Rethink things; “If nothing existed, what would it make sense to do?”
  • Consumerism—Focus on the entire customer experience and make it excellent
  • Avoiding complexity—Simplify everything so that it completely intuitive to the users and be good at deciding what you are not going to do.
  • Attention to detail—This involves creating an immersive experience for the consumer that permeates the design process.
  • “The concept of 1”—Build consistency across products; standardize, simplify, and architect around commonalities.
  • Learnability—Users should be able to quickly learn their technology by watching others or by exploring
  • People—Smart, motivated employees and a special emphasis on their intern program

While the key factors to Apple’s success are not a recipe that can simply copied, they do offer great insight into their incredible accomplishments.

Next stop for Apple seems to be taking their success in the consumer market and making it work in the enterprise. This will go a long way to addressing users concerns about their technology at home being better than what they use at work.


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