Upgrade and simplify systems to avoid losses due to POS
errors.
The majority of retail employees can tell you at least one story about something
'weird' or 'unexplainable' that their POS (Point of Sale)system does. Honestly,
you would be surprised at how many of these systems are not user friendly.
And anything that is not user
friendly....is, by definition, error friendly! And errors cost
you money.
Retail store employees are not sitting back in a calm, quiet office environment
- plucking one thing out of their in-tray at a time. They are usually running
around doing several things at once, all the while their workplace is open to
the public. Talk about multi-tasking!
We heard about a Store Manager who was not allowed, or able, to open her cash
drawer with a key. So, if the POS system would not obey a command to open the
drawer for any number of reasons...and,
yes, there are plenty of very good reasons...then everything
stopped. Staff were frustrated and customers were angry.
She recalled a day when the drawer was closed after a sale. The moment it was
closed the cashier realized she had short changed the customer. Too late! Too
bad! You can imagine the scene there!
Anyway, the point being made is that POS
systems must be designed to take the nature of the business into account.
Don't go out and buy one based on price alone. Make sure it does everything you
need it to do...and make sure it does it
simply.
One last thought....receiving merchandise into the POS system, and transferring
merchandise out, must be a straight forward
and quick process. If it's not, you'll see the results in your
shrinkage - real or not - you may never know.
Make sure your customer knows that you value their
business.
It sounds straight forward but, here's a story about an employee who thought
that he was doing me a favor by processing my order! Seriously.
I was driving home from an afternoon spent with relatives in a distant city. I
spent about 8 hours in my car that day. I was tired and hungry. So, I stopped at
one of those service centres that are dotted along major highways and I went in
and placed an order for some food. I had two or three different choices of food
vendors.
The employee took my order,
and my money, and told me to move aside while I waited for my food. No problem,
I didn't want to be in the way of other customers.
Then, after a few minutes, the employee put my hot sandwich on my tray. He told
me that the other item I had ordered would be ready in about 5 minutes or so.
You know, 5 minutes...'or so'... is not really a long time but, at a fast food
restaurant you kind of expect it to be...well, fast.
So, I told him that he should keep the sandwich until my second item was ready.
He said "No, you can just go ahead and start eating and then come back when it's
ready." I told him that I understood that I could but I
would rather have them at the same time. His reply was
"What's the problem? You have something to eat, just come back in a few
minutes." And he had a fake smile pasted on his face the whole time.
I was tired and exasperated....tired
of these employees who treat me like I'm being difficult...like they really
don't care if they have my business or not.
In no mood for a battle of wits
with the guy, I found a place to sit down and I ate my sandwich.
Several minutes later, after I had finished my sandwich, a different employee
brought my second item out to me and I thanked him. But I still felt that I
wasn't treated properly. This feeling could
have been avoided if the employee I encountered first had
responded differently; if he had just shown a tiny bit of respect for his
customer. He had plenty of options open to him.
Many might say this is no big deal...but
when, exactly, is it a big deal?
Very few companies go down overnight.
It's a gradual process which happens one dissatisfied or disappointed customer
at a time. Be good to all of your customers...one at a time.
Protect your profits by focusing the right amount of
attention on loss prevention.
Consider the story, below, about an
employee who stole company time and charged up huge telephone bills by
calling a 1-900 number!
It goes without saying that retail stores, being open to the public, are prime
targets for thieves. Staff are busy with tasks and serving customers and,
sometimes, there aren't enough staff members on the floor to make sure that
thieves aren't getting away with your merchandise.
And shoplifting is only one part of the problem. You also have to concern
yourself with paperwork errors and internal (employee) theft. Internal
theft covers more than just merchandise and cash, as you'll see in our story.
Here's the story...
A young fellow... an up-and-coming associate... who had been with a particular
retail company for several years and was, by all accounts, a very good employee,
decided to use the store telephone to make some long distance phone calls to
...well let's just say they were not business calls....and they were a lot more
personal than we care to mention here. He had some issues.
Anyway, he got caught when
the Audit Department personnel reviewed the telephone bills for his store.
According to those audited telephone bills, the employee had spent
approximately 30 hours on the telephone
in the backroom of the store. But it doesn't stop at time theft. No, the company
had to pay the telephone bill....and the total of those
personal calls was over $3,000!!!
Consider the damage...30
hours of lost productivity, customers left unattended (Yes, it was discovered
that he was sometimes alone in the store while making the calls in the
backroom!!), customers inconvenienced when they tried to call the store during
the 30 hours when the phone was in use for non business purposes, $3,000 in
telephone bills, time spent during the investigation, management time spent to
terminate the offending employee, time and effort spent hiring a
replacement...and who knows what else!
Now, this was a very unusual situation
and it may have been difficult to prevent it from happening. Difficult but not
impossible, of course. Perhaps the Audit Department personnel could have caught
it earlier...before the losses became so big. Who knows?
At DMSRetail, we never, never advocate putting so many
rules in effect that more emphasis is placed on preventing losses than
generating revenue...not at all.
After all...if you want to, you can prevent
every single penny of loss if you close your doors! That's why
we say you need to focus the right amount of attention on Loss Prevention, or
Profit Protection. Only you will know what that 'right amount' is.
Most of us want to believe that our
colleagues are honest, decent, law abiding individuals. And
most of them are. However, the Retail Manager who believes that none
of his/her staff members would ever steal from them
is in for a rude awakening one day. They'll be blind-sided.
When opportunity presents itself,
many seemingly honest people are tempted to steal. So, your first line of
defence is to ensure that opportunity never arises. You need to have certain
rules in place, and bullet proof follow up systems, to help
keep everybody honest while not hindering
the business.
Find time to coach retail employees who believe selling is
pushing.
You may not know who they are, but it's pretty much guaranteed that they're in
your stores.
They are the ones who don't want to bother
customers.
They pre-judge how much a
customer can afford to spend.
They often ask "Can I help you?"
They don't ask open ended questions for fear that the
customer may not want to answer.
They rarely re-approach after one rejection.
They never suggest add-ons,
upsells or anything that might put the customer over budget - even though they
might have no idea what that budget is.
If all of this sounds familiar, and it probably does, then you need to spend
some quality coaching time with the individuals who do or say these things.
Once you have figured out why
these employees are not actively selling, you are in a good position to coach
them. If they believe that selling means the same as being pushy...you can't get
enough productivity from them until you change their outlook, attitude and
behavior.
Here's some suggestions as to what you can
do...
Have a conversation about selling, in general, and explain that the
steps in selling are
designed to ensure that a customer is being properly looked after....not just
'sold' to. Explain the benefits that the employee is providing to the customer
by establishing rapport and determining needs and presenting options, etc.
Describe scenarios to show the difference
between being pushy and being a great sales person.
Take them for a walk into other retail stores and have them play a customer who
actually does want to buy something. Watch the interaction carefully so you can
point out the difference between pushy behavior and proper selling behavior.
Finally, although you have probably done this already, explain that active
selling is a requirement in your company - it is not optional - and all
associates are required to sell.
They need to understand that this is how a
store stays financially viable - this is how they stay in
business... continuing to offer employment.
However you decide to handle the coaching session(s) just remember that your
goal is to convert those associates who believe selling is being pushy. If you
cannot convert them...well, you'll have to determine your next step.
Take responsibility for providing Buyers with merchandise
feedback.
The Buyer's in your retail operation may be incredibly talented...but
they are not mind readers.
Whenever they purchase goods that will be available for sale in the stores, they
rely on their skills, talent and experience. It's their job to get the right
merchandise into the stores at the best margin they can make on it. Let's face
it...that's got to be tough. Their mistakes will always be noticed.
So, store personnel need to do their part
to help out.
How often have you heard a Sales Associate complaining that the Buyer's don't
know what they're doing and the Buyer's complaining that the Sales Associates
don't know how to sell? It's very common.
Anyway, from a Store Operations perspective,
know that once the goods arrive in your store you must take ownership of them.
What else are you going to do? The company owns the merchandise and it's your
job to get them sold.
First, and foremost, store personnel need to
be up to speed with product knowledge; all the features
and benefits. The merchandise needs to be displayed properly, etc. Ideally, you
sell out at first price!
In that case, the Buyer's will likely get the picture without much feedback from
you. They have numerous reports that show them what is moving and what isn't. Of
course, it's still a good idea to let them know why a
particular item was so popular.
However, if you have difficulty moving the merchandise
after all of your best sales efforts,
it may mean that there is something about it that the customer is not happy
with. Your job is to figure out what that something is and ensure the feedback
gets to the Buyer. After all, you're in the best position to know.
If you don't provide credible feedback
and more of that same merchandise is purchased, the company will be less
profitable than it could be. And no one wants that.
So, keep notes regarding the merchandise
offered for sale in your store - good and bad - and make sure it gets to the
right people. Remember to give honest,
unbiased feedback; be impeccable with what you say. The Buyer
has a big job to do, too!
Look at your store - including windows, cash desk,
fitting rooms (if any), displays, etc. - from your customer's point of view.
Literally...position yourself exactly the
way a customer would.
Walk past your windows, stroll around looking at displays and signage, touch the
merchandise, if applicable try a garment on and see what the fitting rooms are
like, etc.
Many would say that they do all of these things as a routine and they complete a
checklist to ensure everything is perfect. But that is not what we're
suggesting. Anything that has become routine enough to be added to a checklist
can easily be dismissed, glossed over or taken for granted. You know what we
mean, don't you?
The point here, is to determine what the
customer sees and senses, not whether policies and procedures are being
followed.
Are the windows too crowded? Is there dust anywhere? Are the lights aimed
properly or do they shine in your face? Are they casting an unusual color of
light onto the merchandise? Is there room to move around freely? Are the signs
clear or confusing? Are there any sharp edges, pointy hooks, loops in the carpet
or anything else that could represent a safety hazard? Is there gum stuck to the
floor?
Are the employees well groomed? Are they all poised and ready to assist? Do you
like the music that's playing? Is the door to the backroom or receiving area
propped open revealing a not so pretty picture? Are the mirrors and glass all
crystal clean?
When standing at the cash desk - remember...from the customer's side - what do
you see? A mass of wires coming out of the POS? Merchandise, paperwork or
supplies piled high? Dust? Cashier's notes stuck all over everything?
What the customer sees and senses, while in your store, is really important.
There are plenty of other things you can look for when you do your customer
walkthrough. Only you can come up with them all for your particular business.
This is just a start.
Aim to perform this exercise often, but
spontaneously.
Make sure your new hires know what is expected
of them. And I want to illustrate that with this short, but
very telling story.
Here it is...
In a store that is part of a large international retail chain, I recently
witnessed something that gave me reason to believe that their new employees
simply did not know what what was expected of them. And, here is why I drew that
conclusion...
While checking out, I was the customer next in line behind a woman who was
purchasing no less than 15 women's blouses. 15! It was a great sale for the
store. The other item the woman was purchasing was something of a carryall bag.
The woman wanted the cashier to put the blouses into the bag - very
environmentally friendly and all that, right?
So, as the cashier scanned each blouse, she removed the security tag and
crumpled it up and put it into the carryall bag. Not folded, not even close to
being folded. These blouses were being handled like something one would throw
into the trash can. Seriously, I am not exaggerating.
Overcome with a sense of responsibility to
defend every customer everywhere, I spoke up.
I said to the cashier "You know, this lady is buying all of these lovely blouses
and you are not handling them very carefully. They're going to be full of
wrinkles and they're brand new. I would be happy to help you fold them up." Just
a note here, the customer in front of me spoke very little English and that made
it difficult for her to get involved in the conversation.
Some may say I should mind my own business but, in my line of work, it's next to
impossible to ignore these things.
I was ready for the worst...possibly a
scene!
Anyway, to my absolute astonishment, the young cashier said, "You don't have to
help me. I'll do it. That's why I have a job." I had expected a nasty stare, a
flippant or sarcastic remark or, at the very least, a miserable attitude. But,
no. The cashier - who I have not seen in this store before and am quite certain
she is relatively new - proceeded to fold the items and then when it was my turn
to be served she continued to be very pleasant. What an employee...the kind we
don't come across very often anymore.
The moral of this story is:
Teach your employees what is expected of them. This young woman; this
new cashier simply didn't know how she was supposed to handle the
merchandise. She was very receptive to my 'training'. I only hope I did not
embarrass her. I commend her for her accepting attitude. But I must fault
management for not having taught her properly in the first place. They basically
set her up to fail.
