MRI turns c-store coolers into digital signage displays

May 18, 2012

Atlanta-based Manufacturing Resources International announced that it has introduced its first full-size transparent digital LCD door for convenience and grocery stores. This high-performance digital LCD display replaces the entire conventional door glass with a transparent display assembly that allows for normal customer viewing of the product through the glass, but with the ability to run full-motion videos/advertisements/promotions in a "see-through" manner.

The new product was co-developed by MRI, the digital display manufacturer, and Commercial Refrigerator Door Company, a cooler door manufacturer, and is being marketed under the ThruVu product name by both companies.

According to Peter Kaszycki, VP of business development for MRI, "By introducing this new, eye-catching product, advertisers within c-stores now have a creative way to advertise and promote their products at the all important 'point-of-purchase' stage, just as the customer is making their final beverage or product selection from the cooler. In addition, it is real estate that already exists in the crowded c-store space but is not being effective utilized."

The ThruVu Cooler Display System is made up of three major components: 1) the transparent LCD; 2) the LED lighting system; and 3) the BoldVu video server. MRI said the factor that sets apart the ThruVu system is the company's ability to "cut" the native LCD screen down to the correct size to fit into a standard cooler door assembly. MRI has a license agreement with Tannas Electronic Displays to customize the size of the LCD for the appropriate door size. The first ThruVu Cooler Door is based on cutting a standard 72-inch LCD down to a custom 67-inch size. MRI said it one of only five companies in the world with this license agreement and in-house capability.

How customers are driving mobile POS

By John Kenney

May 18, 2012

Retail stores are in a push for customers to drive their shopping experience—from selection to checkout. At the same time, customers are looking for a cross-channel shopping experience that can encompass the digital shopping cart, combining all channels from in-store to at-home to mobile that can be saved, comparison shopped, recommended, stock-checked and purchased/delivered as and when desired. Keeping pace with consumer technology is also a big drive. Despite these drivers, disconnects still exist between the retail mobile point-of-sale (POS) planners, and the reality of the customer's world.

One of the biggest oversights a retailer could make is to believe they know what's best for the customer, and not the other way around. The mobile POS solution therefore needs to allow application build out on any mobile device operating system (OS) no matter what hardware and OS have been selected for store associates. In addition, we strongly advise that for every associate-facing application, a customer-facing application also be developed.

The customer-driven POS is infiltrating every aspect of retail. New seasonal trends such as pop-up retail with temporary locations, holiday stores, special events, etc. can be very costly to set up and enable transactions using a traditional POS model. With a mobile POS system, all transactions can be completed over 3G using the retailer's or the customer's hardware, reading and writing to the enterprise database. Not only are the cost-savings a good retail driver, it is also true that with the proliferation of smartphones, customers are demanding mobile transactions for the convenience and time savings offered—especially around the upcoming holidays. Retailers who don't empower their customers and their associates via mobile devices risk facing a slow erosion of sales to savvy customers, as well as the hurdle of battling competitors already rolling out their mobile POS solution.

Depending on store size and configuration, a mobile POS solution can eliminate one or more checkout positions and, at the same time, increase customer satisfaction with POS (line busters, self-checkout, etc.). Additionally, the ability to assist the customer at the point-of-decision and to enable suggestions of associated items and potential upsell products makes each associate more productive. Empowering associates with the same data search options as those enjoyed by the customer will also assist to keep associates close to the customer, rather than force them to access a remote workstation in order to answer a price or in-stock question. With customers driving mobile POS, it's a win-win.

4 ways retailers can fight showrooming

May 15, 2012

By Suzy Sandberg

The use of smartphones is proliferating at a rapid pace. In turn, showrooming – the practice of researching merchandise in a retail store and then purchasing it elsewhere – is also increasingly common. It is, understandably, a thorn in the retailer’s side.

Whereas the Internet has engendered huge shifts in the way media is consumed, mobile technology is causing big changes in retail shopping behavior.

Show and sell
Comparison shopping applications, the mobile Web and QR codes enable the consumer to be more informed and savvy when they are in a retail location. Unless retailers can compete with online prices for the same product, they will lose the consumer to an online retailer at a better price somewhere on the mobile Web.

Although online price comparisons are nothing new, mobile is enabling consumers to physically view and handle merchandise, to “kick the tires,” so to speak, and then order products directly from their device from whichever merchant offers the best price.

As shopping becomes better optimized on mobile devices, showrooming will continue to emerge as a bigger problem for bricks-and-mortar retailers.

ComScore reports that the leading mobile retail activities among people using smartphones are to find a store (33 percent), compare prices (21 percent) and look for deals (20 percent).

Consequently, bricks-and-mortar retailers who suspect that their stores may be serving as showrooms need to develop better conversion tactics in their stores or they will be at risk of losing sales.

Here are four tactics that retailers may employ to fight showrooming:

1. Merchandising: Merchandising becomes critical when fighting back against showrooming since it is nearly impossible to replicate online and through mobile devices.

Fancy displays and classy arrangements are often enough to entice consumers into making the purchase. I am always in awe of how well some brands merchandise in retail stores and how poorly others do. Personally, I will buy an entire outfit that I would not have otherwise if it is merchandised well.

2. Ensure that your prices and offerings are competitive: In a world where low prices are just a few clicks away, it is crucial for bricks-and-mortar retailers to offer attractive prices that offset the shipping delays that accompany online and mobile shopping.

Furthermore, retailers who initially resisted free shipping are realizing that it is necessary to be competitive. Offering free shipping is definitely not free for a retailer or brand. Even so, 80 percent of all retailers offered some form of free shipping in the fourth quarter of 2011.

3. Pushed coupons: In my opinion, this is the best, most practical option to encourage shoppers to buy from a retailer rather than to compare prices online.

When mobile users are searching for a store location on their mobile device, retailers could take advantage of Google’s new enhancement by providing a link on the paid ad to download their mobile app.

The paid search copy could display the pushed discounts to encourage the searcher to make the download.

JoAnn Fabrics does a really nice job of pushing coupons using its mobile app. When people walk in the store and open the app, they receive a multitude of coupons that can be used to purchase products in-store.

4. Bid by location: Google has another enhancement that lets retailers bid by location, so advertisers can run unique search ads based on proximity to a particular retail location. In the search copy, they could offer discounts or coupons for brands if a purchase is made in the store.

While these tips may help bricks-and-mortar stores fend off showrooming, what is really important in all this is the lesson: Shopping today is digital, wherever it occurs. Brands must therefore align in-store merchandising and promotions with mobile and Web ecommerce strategies if they want to keep foot traffic and sales alive and well.

Why customers seem scarce - part 3

By

May 17, 2012

In the previous two segments (1, 2) we learned how why industry overcapacity, a dying industry and a perception that our competitors' offerings are superior cause us to believe that customers are a more scarce resource than they really are. Today we're going to discover how our inability to communicate value can create that same impression.

Ineffective at Communicating Value

An all too familiar refrain from business owners is "They (prospects) get excited about my product/service, but seem to lose interest when they hear the price." The only solution these sellers see is lowering the price. Why? Because they don't know how to quantify and communicate their value effectively.

• Unfortunately our education system doesn't teach business people how to quantify value. Absent this ability, it's difficult for business owners/leaders to identify who their ideal customers are.
• Let's say that I'm a JCPenney's type buyer. When I create offerings for my customers I'm going to do so with that value proposition in mind. Often this decision is made subconsciously, I'm not even aware that I'm doing it. Let's see what implications that has for the success of my business.
• If I'm unaware that I've created my offerings with a JCPenney mentality, what's the likelihood that I'm going to market to everyone who might possibly buy my offerings including Walmart, Target, Macy's and Nordstrom buyers? Based on over 20 years experience working with businesses in a variety of industries, it's inevitable.

I'm also going to direct my sales force to target all of these potential customers. Unfortunately, they're going to get a lot of rejections from the Walmart and Target buyers, because those buyers think my offerings are too expensive. The Macy's and Nordstrom customers are also going to reject our offerings. Why? Because they don't believe the quality or image value are there. Yet, their most likely reason for not buying is "Your price is too high."

Quantifying the value of your offering is the key to communicating your value effectively. Creating the formulae to quantify that value require more space than I can communicate in this space. I required a significant amount of one chapter to communicate in the book. There is another approach that won't be as precise, but will help you quantify that value.

First, look at what buyers are willing to pay for your value proposition - image, innovation or time savings. Buyers pay as much as 7 times the lowest price alternative on large ticket items to get the image they desire; 12 to 14 times as much for small ticket items. Innovation buyers pay 3 to 4 times as much as the mass market and 10 to 12 times as much as late adopters. Consumers pay at least 3 to 4 times their hourly rate of compensation to save time. The value of time savings for business is the gross margin it'll gain on additional sales.

Next, determine where on the spectrum your value and, consequently, your ideal buyers value lie. With image you have a spectrum that includes Walmart, Target, JCPenney's, Macy's and Nordstrom. At each point on the spectrum you have a sense for how much buyers value image. Target buyers typically pay 20% to 50% more for a sweater than a Walmart buyer. JCPenney's buyers typically pay 3 to 5 times as much as a Walmart buyer. Macy's - 6 to 8 times; Nordstrom's 12 to 14 times.

In essence, by pricing according to the multiples that your ideal customer has demonstrated a willingness to pay you communicate your value in a way to assure the buyer that the quality, service, etc. are there.

Throughout this series you've had a chance to see that our perception of a scarcity of customers is more a perception than a reality. Don't allow your perceptions to become self-fulfilling prophecies, use the simple tools outlined in this series to open the door to countless customers at the price you so richly deserve.

Take a stand against 'showrooming' with digital signage, kiosks (Commentary)

May 10, 2012

"Showrooming," the practice of researching products in a brick-and-mortar store and then buying them somewhere else, is getting a lot of attention lately. Not that it's anything new. Budget-conscious consumers have always been inclined to defect when presented with a better deal.

On a positive note, this practice does get customers into the store, where they are exposed to the retailer's onsite products and promotions. Then, it's up to the retailer to captivate customers and make the sale before they leave the store to purchase elsewhere.

Keep in mind, the key reason consumers come into a store is because the information they find online does not thoroughly convey what the product really looks like, how it is used or the benefits it offers. Fortunately for the retailer, most customers still insist on some level of interaction with a product before making an important purchase. Even so, retailers must counter the showrooming trend by making the in-store shopping experience more convenient, educational and enjoyable.

According to an Oracle study released in December 2011, the leading reason U.S. and Canadian consumers visit a store is to see a product before they buy it (75 percent). Forty-four percent said they visit a store when they need the product right away, and 41 percent said they will go to a store to avoid shipping charges. These statistics demonstrate that, despite the proliferation of e-commerce, the retail experience remains an integral part of the purchasing process.

Beyond the showroom

While showrooming, where consumers visit a retail store to view a product and then make the purchase online, will continue; tests recently conducted by the National Retail Hardware Association showed that digital signage can be used to provide customers with the information they need to justify the retail purchase. Tests conducted at a retail chain in the Northeast U.S. showed that highlighting a range of products with digital signage consistently produced a major sales uplift for the highlighted products (Source: Aubuchon Hardware).

One way retailers can convert showroomers into paying customers is by capitalizing on the effective use of digital signage to provide customers with the information they need to justify the retail purchase. A successful display engages the customer, educates, and makes it convenient and even cost-effective to buy on the spot.

Proven sales uplift with digital signage

One of our customers, Aubuchon Hardware, a large hardware chain with 130 stores in the Northeast, recently participated in research conducted by the North American Retail Hardware Association (NRHA) to measure the sales increase at stores using digital signage to promote a product vs. stores that did not.

For the test, Aubuchon placed endcap digital signage displays in six stores, and then compared sales results to six other stores that historically had similar sales for the product tested. Each digital endcap presentation ran for one month.

Instead of focusing solely on price and savings, as is common with many static endcap signs, the displays also focused on educating shoppers about the benefits of using the product in their homes. Shoppers who wanted more information on the product could press a button located on the display and play a short, project-oriented how-to video.

The results demonstrate that product sales increase when interactive digital signage is used.

Location, location, location: Where to put digital signage in retail

May 15, 2012

Brick-and-mortar retailers are discovering that it's just not enough anymore to rent a storefront, slap on some shelves and roll out their products for display.

The Internet has given shoppers the ability to track down the cheapest price for a particular product at the touch of a button and have it shipped directly to their door. Although the death of the brick-and-mortar retailer may have been prematurely exaggerated, those retailers do face challenges if they want to remain viable.

How, then, can they not only survive, but also thrive? How does a retailer create an atmosphere in its location where someone would want to walk in and spend some time when there are so many other options in the marketplace?

Part of the answer lies in creating an immersive in-store experience — and innovative and immersive digital signage can be a significant factor in that answer.

"People can shop and buy literally from everywhere today," said Brian Ardinger of self-service technology provider Nanonation. "The key differentiation point is that in-store experience."

But digital signage can provide interactive touchscreens, mobile and smartphone interaction, games and entertainment, 3D or 2D content, and the most engaging, ambiance-setting, brand-conscious content imaginable and still possibly fall flat. For want of a nail, the kingdom was lost ...

One of the simplest and easiest to potentially overlook factors in a successful retail digital signage deployment, and one that could trip up even the best laid plans of retailers and deployers, is simply where to put the screens.

Creating high-quality content is meaningless if the screens are not in an effective location. Proper screen placement is necessary for the content to reach the customers in the most effective way possible.

An unprecedented opportunity for retailers to get together in a casual setting and learn from one another. Interactive sessions delve deep into topics that are on the minds of retailers today.

"The placement is the difference between people watching the screens or not," said Tim Tang, marketing director for broadband solutions company Hughes Network Systems of Germantown, Md.

One of the primary goals of in-store digital signage is to encourage customers to spend money they otherwise might not have spent. A good placement strategy to achieve this end is to install screens promoting a certain product on shelves near that product and have those screens as close to eye level as possible. If the product is within arms' reach, it will make the ad more effective because the message will be fresh in the customer's mind. In addition, an ad demonstrating how a product is used can cause customers to envision themselves using the product as well as answer any questions the customer might have about what the product will look like once it is out of the box.

"You can show them products that they wouldn't be able to see without opening a box or engaging a customer service rep," said Tom Westerberg, CEO of Largo, Fla.-based digital signage solution provider Inspire Digital Signage.

By placing signage near the products being promoted, the signage achieves two purposes: advertising a product and providing valuable, instructional information to the customer about the product, without requiring more staff.

"You want to educate consumers so they can make a purchasing decision," said Craig Martin, CEO of Middletown, Conn.-based Reality Interactive, an integrator of digital signage kiosks and merchandising programs, "Companies who invest in [educating consumers] are rewarded."

A common screen placement mistake is hanging the screens in the middle of an aisle above eye level. Customers walking through the store may not look up and, thus, may miss the signage entirely. If they do notice the signage, then the customers must crane their necks to look up at the screen, making it uncomfortable to stay and watch the content, creating a negative impression in the customers' minds about the signage, even if it is displaying useful, relevant content.

The lighting conditions where the screens will be placed also should be considered before installation of the digital signage. If there is a lot of ambient light in a store during daytime hours and the screens are placed near windows, then the daylight can overwhelm and wash out the image on the screen, making the content difficult to see.

Any area where customers have to wait for any length of time is a good spot for digital signage. In a store setting, a cash wrap is a good location to display entertainment content, as well as any advertising content for items being sold at the cash wrap. In establishments that have a waiting area (such as a bank lobby), digital signage can be used to entertain the customer and make the wait time seem shorter.

Hotels can feature signage in or near elevators to give guests something to watch as they wait for the elevator to arrive or during the ride.

"You create the illusion that time is not going by as slowly," said Brian Hirsh, senior vice president of media services for Redmond, Wash.- based PlayNetwork Inc., a media services provider.

For some stores, screens can be deployed in the store's windows in an effort to lure customers into the establishment. Large stores like Walmart and Target have built-in customer bases who will enter the store regardless of advertising, so the store window may not be the most effective placement of digital signage. But for smaller stores, where getting people to enter the building is crucial, a store window is an excellent place for digital signage.

"You need to get them to cross the threshold," said Mike Schaiman, managing partner at San Francisco-based Helios Interactive Technologies, a company specializing in interactive digital signage displays.

Knowing the aims of the digital sign, whether it's increasing foot traffic or promoting a sale on specific products, will help with the placement of screens. Once the goal is determined, the content can be adjusted accordingly. Screens that are meant to entice customers into a store should feature short, tightly edited segments that cycle through on a short timeline, Hirsh said. People passing by a store window are not going to stop for long to look at a screen; they will cast a quick glance and make a quick decision as to whether they want to enter the store.

Just like in so many other businesses, digital signage in retail really can come down to just three things: location, location, location.

Zebra Barcode Printers: Top 5

By Marty Johnson

May 15, 2012

Customers in industries from retail to manufacturing to healthcare and beyond are looking for barcode printers that are reliable and flexible. Zebra Technologies is a trusted, worldwide leader in the industry, helping customers give a digital voice to assets, people and transactions and, in turn, providing greater visibility into mission-critical information. Zebra’s breadth of products and solutions help customers increase efficiencies and lower costs in their business operations. For a deeper look, here are five of Zebra’s top printer products available today:

QLn220– Compact, lightweight mobile printer provides printing capabilities across multiple industries

Part of Zebra’s QLn printer series, the QLn220 (left) heightens productivity through an easy-to-navigate display, fast and high quality printing and a variety of proactive alerts. The printer is easily integrated into a user’s existing enterprise and with other Zebra printing products. Although the compact and small size of the QLn220 may be deceiving, the printer can handle increased levels of wireless security and process complex labels up to four times faster than previous models.

The QLn220 Zebra printer can improve work flow and simplify tasks across a multitude of industries. It is ideal for the secure transfer of sensitive data, such as price lists, customer information and medical records. Within the healthcare sector, the QLn220 assists with applications like bedside specimen collection and pharmacy labeling. For the retail sector, the printer is used for processes such as labeling in-store or at a warehouse.

RW 420 – Designed for the road warrior, this rugged mobile printer can withstand anything thrown in its way

The Zebra RW 420, part of the RW series, is a mobile printer ideal for printing delivery receipts and invoices on the go. With a sleek, modular design, the RW 420 allows users to choose wireless options, card readers and accessories like vehicle mounts for simplified route printing. It can handle the demands of a number of route accounting and field service printing applications, including printing invoices, delivery receipts, service estimates and sales orders.

This Zebra printer has an intuitive interface and the LCD display is slightly angled to assist with visibility. The RW 420 meets the stringent IP54 dust and water resistance rating. It is uniquely designed for harsh outdoor environments, such as extreme temperatures and weather conditions.

KR203 – The kiosk printer designed to reduce cost without sacrificing quality

With various self-service functions, the KR203 printer helps companies improve service, raise customer satisfaction, increase revenue and lower operational costs. As part an integral part of a self-service kiosk solution, the KR203 printer technology streamlines processes by drawing upon the kiosk PC’s resources, allowing users to implement the printer into their existing enterprises, helping to reduce costs.

The KR203 provides high print quality and unmatched reliability for tasks like receipt printing. Additionally, the printer is optimized for tough printing environments where durability, reliability, minimal maintenance and ease of use are critical. Maintenance-reducing features include built-in troubleshooting capabilities, Zebra’s patented technologies to prevent paper jams, a tear-preventing pull detector and a 10-inch paper roll capacity. Additionally, the printer’s small footprint and flexible mounting options make it an easy fit for many kiosk designs as well as Zebra’s Kiosk Print Station.

HC100 – Combination of thermal printer and antimicrobial coated wristbands to enhance hospital safety

Barcoded wristbands have become a critical component of enhancing patient safety and reducing the potential for error in the healthcare industry, as missing or illegible wristbands can cause severe consequences. To meet the unique needs of healthcare providers, Zebra released the HC100 Patient I.D. Solution which makes wristband printing easier and more cost-effective than laser solutions.

The printing process is simple—two steps for the HC100 vs. multiple steps with laser printers. This printer also detects wristband size from infant to pediatric and up to adult and automatically calibrates its settings for optimal print quality. Wireless connectivity allows users to easily move printers to different locations throughout the hospital, increasing time practitioners can spend with their patients.

The HC100 printer uses Zebra’s durable Z-Band wristbands, the only antimicrobial coated wristbands currently available on today’s market. Z-Bands can withstand water, blood, soap and other liquids without smudging. Furthermore, the antimicrobial coating protects against some types of MRSA and E. coli, the leading causes of hospital infections in the United States.

RXi4- RFID Printer/encoder streamlines business improvement and supply-chain management applications

Perfect for organizations with high-volume, mission critical or specialty RFID and labeling applications, the RXi4 serves various industries including retail, manufacturing, healthcare and distribution. The RXi4 printer is used for advanced RFID item-level tracking, asset tracking and inventory management. It incorporates rugged durability, consistent outstanding print quality, fast print speed, long life and unparalleled reliability in demanding applications. RFID on-pitch encoding differentiates the RXi4 from other printers and encoders on the market. This feature enables the printer to encode RFIDl tags spaced very close to one another, which in the end uses less material and lowers cost.

Another nail in the coffin of big box stores?

By Chris Petersen

May 14, 2012

You don't need to look very far to see another article on the growth of online retailing. The phenomenon of online shopping is truly worldwide. While Amazon grabs the headlines with record profits in the west, Alibaba dominates China. Consumers are voting. The biggest threat to traditional bricks and mortar stores is not the loss of just sales, but the ability to drive future traffic. Two recent tests offer a crystal ball of new challenges traditional big box stores will face in maintaining consumer traffic.

Historical store traffic drivers not working as well today

Retail has historically been linked to the ability to attract consumers to stores. The very essence of "shopping" is based on attracting consumers to come look around stores. Without consumer foot traffic in store, there is no opportunity to use merchandising and staff to convert the consumer visit to a sale.

Traditionally, retailers have used a number of levers to drive store traffic:

• Ads and promotions
• Pricing ... every day and promotional
• Assortment ... broad selection as well as unique items
• Merchandising ... displays

Today, it's virtually impossible for the bricks and mortar stores to win on price. The large e-tailers like Amazon have literally millions of items in stock, as well as unique items, all at attractive prices promoted with bundles. So, if the online service is as good as the Amazon experience, why even get in the car to make the trek a big box store?

Pure e-tailers have been very dependent upon plastic

Western consumers don't give it much thought, but if you want to buy anything on Amazon or eBay it takes "plastic." The most typical online purchase in the US is with a credit card. Even with PayPal, you must have at least a banking account in order to configure an electronic payment.

What if you don't have a credit card? What if your culture doesn't necessarily trust banks ... or consumers prefer to pay in cash? India is one example where a majority of consumers still pay in cash. In my recent visit to the Ukraine, I also found online purchases there are limited because a majority of consumers don't use credit cards. The Ukrainian retailers have in fact turned that to an advantage by using in store financing to drive both consumer traffic and store purchases.

A new Walmart strategy ... C.O.D. for online purchases

Over the years, we have posted a number times about Walmart. While they are the "Whale of Retail" they are not lazy or stupid! Walmart woke up and realized they are in a dog fight with Amazon for core customers. In order to survive, Walmart is aggressively becoming an e-tailer, as well as multi-channel retailer who is creative in how to use online purchases to drive traffic to its stores.

So, how does a big box retailer compete with Amazon? Walmart recently began to offer C.O.D. (Cash on Delivery) for internet purchases. Walmart realized that many of its core consumers are "unbanked", or don't use credit cards. Consider these stats for Walmart consumers:

• The bulk of in store transactions are cash (cash via debit)
• 81% of those without a bank account have internet access
• 66+% of those who are "unbanked" said they would use cash to pay for online purchases if it were available

Go check out Walmart.com. There now is an option to pay by cash at the store. Upon receiving cash payment, the item(s) are shipped. So, here is the big box retailer, Walmart, very creatively using a version of C.O.D. to maintain, and even create store traffic. But, what if other pure e-tailers now start using this strategy ... and take it a step further to enable pickup at sites that are not even a traditional store?

Amazing Amazon ... now testing delivery at 7-11 Stores

If there is one thing constant about retail, it's change. And, the old adage has never been truer: "Even if you are on the right track, you had better keep moving or you'll get run over." Amazon is not only moving, but continues to be a remarkable innovator, as evidenced by their latest test.

Amazon has installed "pickup lockers" in some local 7-11 stores. Why would you go to a 7-11 to pick up their merchandise when you can just conveniently have it shipped to your home? In many cases, you may not know the exact day or time the merchandise will arrive. A locker will keep it safe from the weather and thieves. By using pin numbers transmitted via online your transaction, Amazon not only enables security, it could offer payment by cash at the 7-11 stores just like Walmart.

Think about the implications for big box retailers. By putting different style lockers in a variety of convenient locations, Amazon could enable pickup of different kinds of products that are difficult to ship today, including food and perishables.

If this works at a 7-11, then couldn't it work at a Starbucks, FedEx/Kinkos or a host of local shops? Amazon does need to build stores to offer pickup sites that are closer and more convenient than a big box retailer. And what a boon for the small local shop to have the Amazon traffic!

With localized options will consumers need a big store?

Right now, the crystal ball would suggest that big bricks and mortar stores maybe the dinosaurs that won't survive. They are expensive to operate, and no longer the lowest price. Today, the pure e-tailers now have the competitive advantages to:

• Offer a broader assortment
• Offer almost any niche, specialized product
• Beat bricks and mortar on price
• Offer the convenience of shopping from anywhere 24/7/365
• Offer the ability to pay cash C.O.D.
• Enable local pickup from secure lockers in thousands of locations

The days of consumers making long distance trips to big box stores may be numbered. Let's face it ... online shopping is the low cost, convenient option, and you the consumer are not turning back. The real question is will you make the trip back to the big box store ... and how often?

Think about it ... why drive to the big box store for anything when you can just go down the street to your Amazon locker at your 7-11 and pick up your packages when you get your slushy!

Why customers seem scarce - part 2

By Dale Furtwengler

May 11, 2012

Last week we discussed how to grow your revenues, profits and customer bases when facing the challenges of industry overcapacity or a dying industry. Both situations leave sellers believing that customers are scarce. Another reason for this belief is that sellers view their competitors' offerings as superior to theirs. You may be surprised to find how rarely that's true.

Natural tendency

An unfortunate human tendency is to place greater value on others' capabilities than on our own. When a competitor's offering provides something that ours doesn't, we place great value on it because we don't have that capability. Yet when we provide something that our competitors aren't, we tend to discount it. Why? Because it's so natural for us that we assume everyone can provide that value.

I've lost count of the number of times a client or prospect has said, "It only takes me X hours to do that?" My retort is always the same "Does the fact that you can produce the result so quickly make it more or less valuable to your customers?" It's amazing how often this simple concept is overlooked by sellers.

There is another assumption that we make about the advantages of our competitors' offerings. That assumption is that their customers value that "advantage." My experience has been that often these competitors don't really know whether or not that advantage is valued by their customers. Why? Because they never asked them to pay for it. Which begs the question, "Why would you discount your offerings when you don't know whether your competitors' customers value their 'advantages?'"

The more that we believe that our offerings are inferior, the more likely we are to view customers as a scarce resource. Let's see how we can overcome the natural tendency that creates this mindset.

Overcoming this tendency

The first step in overcoming this natural tendency is to ask yourself, "How many customers have I lost to competitors vs. how many I've gained?" Unless you or your competitors are really screwing up badly, the likelihood is that your customer bases are fairly stable. There's a reason why your loyal customers are choosing you over your competitors. Find out what it is and focus your attention on becoming even better at what's most important to them.

The second step is to talk to your competitors' customers and find out why they buy from them. Often you'll discover that the reason they're doing business with your competitors because they have a long history with that competitor. It has nothing to do with your offering, it's "family."

Another reason that they may be doing business is that their value systems align better with your competitor's than with yours. Let's say that your competitor has a Walmart value system where you have a JCPenney value mindset. If that competitor's customer also has a Walmart mindset, there really isn't anything you can do to attract that customer to your value proposition. The one thing you don't want to toy with is your value system - that is one misstep that is likely to ring a death knell for you business.

Next week we'll discover how our inability to communicate value can make it seem as if customers are scarce. In the meantime, please share your thoughts, experiences and recommendations with us whether you agree or disagree.

To ignite your customers, fire up your employees

By Sheridan Orr 

May 10, 2012 

I'm one of those connected customers. I scan QR codes. I read product reviews. I'm never without my phone and it is loaded and ready with Google Shopper, Red Laser and Barcode Hero. I write reviews on Trip Advisor and Yelp! I seek feedback about products from my friends on Facebook and Twitter.

My son is an avid soccer player. He probably knows as much about the merits of different products as most people who sell soccer products. He's a keeper and therefore his goalie gloves are superstitious item (I won't even talk about his sock ritual!). They have to be Reusche. Period. If they are not, then his goalie mojo will evaporate.

In short, we are connected consumers who are crystal clear about what we want.

So why are we in the car on Saturday morning driving to a store 12 miles from our house when I could easily purchase what I want online? One simple reason. The employees at the Soccer Post.

If I'm being honest, I don't usually like to talk to store clerks. It's not that I'm anti-social. It is more that I really like to do things for myself. I have all the information that I need at my fingertips. What I want from them most times is to be courteous and let me settle my bill quickly. So why is the Soccer Post different? Because the employees are passionate.

It is clear they love what they are doing. Their enthusiasm for the latest Joma shoe or 'epic' goalie jersey is contagious. They know who has which patents on which type of finger saves in everyone of the goalie gloves they carry. The truly understand the crazy sock ritual--something even I as the mother don't get.

Much has been written about the loyalty and caliber of Chick-fil-A employees. The turnover among Chick-fil-A operators is only 5% a year. Among hourly workers turnover is 60%, compared with 107% for the industry. They don't pay any more than other fast food chains. They don't have any greater benefits. The career path and training at McDonald's is far superior. So why are Chick-fil-A employees so much better? The answer is not merely that they have a religious foundation and they recruit and hire from church communities. It is not that they are closed on Sunday. It is more than that. They hire employees who believe in what they stand for.

Retailers don't need to shut down their stores on Sunday and stand outside of churches with job applications as their new HR strategy. The Soccer Post in Raleigh has the same type of employees and they were recruited from the elite soccer players in the area.

So what is the formula for getting employees excited?

Clarify what you stand for

It does not have to be a religious principle, but it should be clear and something that is easily understood. In truth, if your brand is well done it should be instantly obvious. It doesn't have to be a lofty goal that a future Miss American contest quotes. It can be simple like the Soccer Post—performance soccer gear for all levels.

Hire only those who believe

Once you've articulated what you stand for you, only hire those who have similar values. We've all made bad hires because we were time crunched, dying for an extra set of hands, afraid that the headcount would go away if we didn't act quickly or various other rationalizations. I have been guilty of it myself and have always ended up regretting it.

When I asked the owner of the Soccer Post how he recruited such good employees, he said, "I find those who love the sport and I figure I can teach them retail."

How often have you looked at a job application and tossed it aside because they had no retail experience? Or worse does your HR team do this and you have no idea? If you are unsure, call your recruiters right now and give them some additional screening criterion rather than "previous experience."

When you make bad hires, you are not the only one suffering. Your brand and your customer are the victims of these poor choices. Wait until the right candidate comes along. Recruit from communities where people with your beliefs congregate. This is much easier than ever before with social media. Moreover, these communities are global. Leverage Linked In, Facebook and Twitter to find people who match your philosophy and aspirations.

Create a culture around your beliefs

Let's say you are a struggling consumer electronics retailer. You spend a lot of time hyping new products to your customers. Do you also do that for your employees? They are the ones who are going to be helping customers select products. Do your employees exude enthusiasm about the latest television or video game? Do you celebrate successful product launches of what you are trying to focus on?

If you are a women's apparel store, do you get your teams excited about the latest in fashion? Do you send them Twitter updates about the trends live from the runways? Why not? If you've hired well, then these people will want to hear this type of information and will eagerly share it with your customers. Think of it as quick, inexpensive employee training.

Make the tough choices

I'm sure Chick-fil-A has heard the business case from every freshly minted MBA on why they should open on Sunday. However, Chick-fil-A is steadfast in remaining closed so that employees can attend church and be with their families.

If you clarify what you stand for and something comes along and opposes that, you have to be willing to say "No." For instance, lacrosse is becoming big where I live. What would happen to the experience at The Soccer Post if they started carrying lacrosse gear? I'm guessing they would have to hire lacrosse experts too. So when I wanted to know the specs on the new Reusch gloves, I'd have a lacrosse player trying to help me? Or perhaps they'd go back to the old reliable, "must have retail experience."

If you want your customers to be passionate about your brand and what you do, then your employees have to feel that enthusiasm as well. In a connected world, customers can find lower prices, free shipping, etc. Focus on things that can differentiate you and having great employees is one of the easiest ways.