The Answer Is In The Mirror (Doug Fleener)
Are Dining Deals Helping?
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The Answer Is In The Mirror (Doug Fleener)
If you are an owner or manager, look in the mirror. If sales are
going up, we always take credit. If sales are going down, don’t
complain. Do something about it.
Here are some more words of wisdom from Doug Fleener, my favorite
retail expert and author.
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I used to joke that whenever my store or district was doing well I
didn't want to take the credit because then I'd have to take the
blame when sales, eventually and almost inevitably, fell short of
goal. Sales against goal are pretty cyclical. The better we do in a
year the more aggressive we usually are the following year.
How much impact does a manager or owner have on results? It's hard
to say but I have seen stores experience incredible turnaround after
a poor manager was let go and a new one brought in. I've also seen a
store decline after a manager leaves but usually it is a slower and
less dramatic fall than the turnaround store.
Whenever a store is falling short of goal the first place a manager
or owner needs to look for an answer is in the mirror. And when
he/she does that, these are the first three questions to ask the
person looking back. (These are also good questions regardless of
how your store is doing.)
1. Am I bringing the same energy and passion to work that I did when
the store was beating goal? Let's face it; it's a lot easier to be
energetic and upbeat when a store is doing well versus when it's
not. The longer a store has struggled against goal the harder it is
to bring the "A" game to work every day.
It's not always easy but the only way to turn around a struggling
store is to bring even more passion and energy to work. Without a
leader's passion and energy the entire team risks falling into that
slow downward spiral that can lead to collapse. Your team needs to
see and hear - and believe - that the current results can be turned
around. It really does start with you.
2. Do I spend time on solutions or excuses? I used to ask this
question of the manager whenever I visited an underperforming store.
Of course everyone said "solutions." I know I would if I was asked
that question. So I always followed it up with, "Great. Let's sit
down and review all the actions you've taken and what the results
were." What usually followed were excuses disguised as failed
solutions. "Well we were going to run some ads but there wasn't any
budget. We did talk to the mall manager about putting tent cards in
the food court but she hasn't gotten back to us." Did I dare to ask
how long ago that was?
Whenever a store is falling short of goal it is crucial that the
manager discover new ways to improve store traffic, increase
conversion, and improve UPTs (units per transaction). Too often
managers look for a silver bullet rather than trying lots of little
solutions that together can turn the store around.
3. Are we nailing the basics? One of my rules is that an
underperforming store must have above average mystery shoppers
and/or customer satisfaction scores before I will invest in
additional marketing or merchandising expenditures. If not, it isn't
a smart investment. I've been there as a store manager. It is a lot
easier to blame poor store visibility or an ineffective store
footprint than to think that the store team isn't getting it done.
I'll never forget the time I had a manager tell me that their sales
were off over 15% because their carpet needed to be replaced. I was
the first to admit that their carpet looked worn, but when we
reviewed their shops and customer satisfaction scores as well as
spent a day observing the staff, the carpet was clearly the least of
that store's problems.
Any time a store is falling short the manager should start the
turnaround with a renewed focus on the basics. Institute some new
trainings. Create a buddy/mentor system. Create a contest where the
staff competes against each other in selling and customer service
skills. When a store falls short of goal it's frequently because the
staff has forgotten to focus on the basics.
Only after a manager/owner can answer 1) yes 2) solutions and 3) yes
should he/she look at larger or more expensive solutions to turn the
store around. Keep up your yes/solutions/yes and you substantially
increase the odds that your store will get back on track.
So what is the answer in YOUR mirror?
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The above comes from The Weekly Experience (Doug Fleener)
Doug Fleener is president and managing partner of Dynamic
Experiences Group LLC, a Lexington, MA based retail and customer
experience consulting firm dedicated to helping retailers improve
their customer experiences that results in higher sales and profits.
Learn more at:
www.dynamicexperiencesgroup.com.
Every retail store manager or owner should visit Doug’s website and
subscribe to his FREE weekly newsletter at:
http://www.dougfleener.com/
Are Dining Deals Helping Restaurants?
Maybe
yes and maybe no. It’s very complicated.
Here’s the idea. You go into a restaurant that is offering a $5
lunch special. The idea is to get your customers coming.
Unfortunately, and all too often, customers are buying that $5
special along with a glass of water and leaving.
According to Knapp-Track, restaurant traffic is down by 6%. Same
store full-service restaurant sales fell by 6.7% during the same
period. This is the first time since the information has been
tracked where sales decline was actually larger than traffic
decline.
To put it another way, customers are coming in for the discount and
little else. Many chains like Morton’s, Ruth Chris, Chili’s and Ruby
Tuesday are offering coupons and discounts. On the positive side,
these deals are getting customers into their restaurants. On the
negative side, it’s had little or no positive impact on the bottom
line.
Some restaurants prefer to offer permanent deals. Instead of
attracting customers with coupons and special temporary discounts,
they are changing their menu and offering a combination of value and
highly profitable menu items.
What’s the best method of attracting customers without giving away
your profits?
Have a great friendly atmosphere. Lots of customers come to your
restaurant for the extras. People like to be recognized.
A clean bathroom makes a big difference.
Lots of business lunch people like going to a place where they can
eat, read a newspaper, watch the news on a screen, and have a nice
peaceful no pressure lunch. Why do so many diners and coffee shops
make newspapers available to their customers?
Above all...look at the competition. What are they doing that you
are not. What can you do better? The Answer Is In The Mirror.
To read more about restaurant traffic and dining deals, go to:
http://money.cnn.com/news/newsfeeds/articles/djf500/200906191413DOWJONESDJONLINE000777_FORTUNE5.htm
To
read, Discounts Have Restaurants Eating Own Lunch, go to:
http://www.nytimes.com/2009/06/24/business/24casual.html?ef=business
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