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Mistakes Retailers Make and How to Correct Them
04/10/09
Ron Bond doesn't think much of the motivational phrase "thinking outside the box." But at his CAMEX 2009 session, the author of Retail in Detail suggested college stores consider selling gasoline, an idea that was not only outside the box, but probably a bit down the street as well.
He wasn't serious, at least not completely.
"You might say you're not going to start a gas station, but it's out there," Bond said. "I just wanted to throw it out there to help stores to start thinking creatively. They all have cars, don't they?"
Bond made the unusual suggestion to attendees of his 5 Big Mistakes for Small Retailers educational session. Through his work as an author and consultant, he has identified what he said are the most common mistakes retailers make and how to work past them.
"You need to break out of the constraints that are not necessarily there," Bond explained. "You need to brainstorm with your staff about ideas and then decide which ideas will work the best. You need to think creatively and deal with them with the members of your team."
The failure to plan effectively is the first big mistake, Bond said. That requires retailers to understand where their store has been, where it is now, and where they want it to go, and then develop strategies to get there.
Financial reports provide the sales information needed to understand where the store has been and the merchandise that is not only the best selling, but also the most profitable. At the same time, retailers should remember the past doesn't always accurately predict the future, and that enlisting staff to create a vision and develop a mission statement is an important tool.
"Dare to create," Bond said. "Imagine your store 10 years from now. What will it look like? What kinds of profits will you have? What will your customers expect? You can't predict the future, but you are able to plan ahead and anticipate the future."
Once the mission statement is in hand and the objectives are understood, retailers must guard against living in the past. Don't be limited by voices saying, "The administration will never allow it," "Our students will never buy it," or "We've never done it before."
Additionally, don't assume customers' needs, or fail to understand the lifestyles of students. Current students embrace technology. Resisting that fact is a mistake.
"The fact of the matter is students are comfortable with things like texting on cellphones," Bond noted. "They are in the electronic age and stores must stop resisting that technology. Embrace it and see how it can benefit you."
College store customers include alumni and visitors, faculty and staff, and the general population in the community. Bond suggested asking shoppers what products they would like to see, by simply talking to customers. Written and online surveys, talking to your peers, and regular visits to other stores in the area can also provide information which will help you avoid stagnation.
"Understand the traps you can fall into," Bond said. "You need to see your store as a real store with real customers, and what are all customers interested in? Good customer service. We need to train our employees to do that."
Bond recommends a professional and well-trained staff, and store hours that meet the needs of the customers more than the employees. He also reminded attendees that quality service is something of value, pointing to U.S. Department of Labor statistics that show 96% of unhappy customers may not complain to the store but will tell nine to 10 friends about their experience, and 10% of that group will tell 20 to 30 other people.
"According to the same Labor Department report, the majority of customers will return if complaints are resolved quickly and fairly. "So customer service counts," Bond said.
Neglecting customer service is the last, and biggest, mistake of all for retailers, according to Bond. But along with the mistakes are these keys to success.
"Plan for success," Bond said of his keys. "Get rid of artificial doubts and focus on the market. Don't underestimate the impact you have on your institution, think creatively, train your staff well, and put your customers first.
"Think of it as a mindset. Train your employees to put your customers first and their need to be treated as valued customers."
—Dan Angelo
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