Thirty Things To Do When Business Is Tough To

Get

A presentation to the Retail Merchants Association

of British Columbia
By: James E. Dion Dionco Inc. – Chicago

Dionco Inc.
“May You Live In
Interesting
Times”
Chinese Curse

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Marketing Test!

Please rank the following companies by

sales to customers in 2000
Wal Mart
IBM
Carrefour
Sears
Intel
Disney
Microsoft
Coca Cola
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Answers: 2000 Revenues

Company 2000 Revenues in

U.S. Billions$
Wal Mart 193
IBM 88
Carrefour 58
Sears 41
Intel 34
Disney 25
Microsoft 23
Coca Cola 21 Dionco Inc.
Retailing Is A Privilege Not A
Right
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The Days Of Home Runs Are Over

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The Days Of “Singles” Has Arrived

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What are we doing???

Price, Price, Price

• We are teaching customers that price is all
that matters
• If we compete only on price, anyone can
and will beat / copy us
• Price is simply not a sustainable
competitive advantage for most stores
• We can’t ignore it, but stop emphasizing it!
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Dionco Inc.
The History of Discounting

100%

80%

60%

40%

20%

0%
1960 1970 1980 1985 1990 2000 2005

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Why Customers Don’t Come Back:

Attitude of
Store
68%

1% Die
3% Move
Away
5% Friends

9%
Competition

14% Bad
Product
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1. Know The Prime Real Estate In
Your Store

• First 18’
• Most traffic
• Best chance to sell
• Maximize your impulse
• Best sellers front and forward

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2. Change Your Store Or
Department Every Day

• Customers habituate to our stores

• Change breaks through
• Customers see us, but not really

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80% Impulse
20% Planned

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HABITUATION

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CHANGE WINDOWS
WEEKLY
MOVE EVERYTHING
AS OFTEN AS POSSIBLE

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3. Housekeeping Must Be
Assigned To Individuals

• “If you got time to lean, you got time to

clean” – Ray Crock
• We only have one chance to make a first
impression
• Customers judge us in the first 20 seconds
• Photograph your store, freeze it in time

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4. Get on the Web

• Communicate
– All e-mail within 24 hours
• Store information
– Location map
– Hours
– Staff
• Product information
• Customer Surveys
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5. Set Realistic Goals And Create
A Team

• Goals slightly above last year

• If trend is lower, set goals lower
• Retail is a team sport, reward the team
• Be careful of motivators that ignore the
team

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6. Post The Average Sale Of
Every Sales Associate Every Day

• Back of store
• Measures suggestion selling
• Practice it, Praise it, Reward it

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Options for Increasing Sales:

Customer
Current New A. Sell more current product
C to current customers
u

Product
r
r
e
A B B. Sell current product to
new customer
n C. Sell new product to
t
current customer
N
e
w
C D D. Sell new product to new
customer

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7. Increase your Conversion Rate

• Measure it
• Maximize your POP
• Maximize your suggestion selling
• Get comparative statistics

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The Math of Average Sale &
Conversion Rate

A B C
Weekly Traffic 600 600 600
Conversion 25% (150 28% (168) 28% (168)
Rate transactions)
Average Sale $45.00 $45.00 $55.00
Total Sales $6,750.00 $7,560.00 $9,240.00

Case A, one in four customers buy with an average sale of $45

Case B, improve conversion by 3% for a 12% sales increase
Case C, maintain conversion increase & + average sale by $10 (an
accessory item) results in a 36% sales increase on the same
traffic!
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8. Display Related Merchandise
Especially In Self-serve
Departments

• Put it together so the Customer can see it

• Price it in “packages”

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9. Match Store Coverage To
Shopper Flow

• Define “A” team

• Measure peak unit and dollar times
• Schedule “A” team with “A” Customers

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10. Identify Your Staff

• Use name tags

• Consider “costumes” or uniforms
• Don’t have embarrassed Customers

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11. Use Bounce Back And Shared
Promotion Coupons

• Give every Customer a reason to come back

• Form strategic alliances with non
competitive businesses
• Never use % always use $

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12. Add Value

• “Give me a reason to buy your product”

• What is the difference between what I just
did and a vending machine?
• Create a real list and do it every time

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13. Get Your Suppliers To Help
You

• Get product knowledge sessions in the store

• Request POP and product information
• Negotiate “Less than righteous” returns

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14. Don't Forget Holidays

• Christmas can come more than once! Have

a promotion plan
– Mothers & Fathers Day
– Victoria Day
– Labor Day
– Canada Day

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15. Know Your Competitors

• Go behind enemy lines

• Visit at least once a month
• Measure something different each time
– Display
– Service
– Inventory
– Prices
– Approach, selling skills

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16. Sharpen Your Competitive
Edge Through Merchandise

• Look for new

• Remember, product comes first
• Challenge your buyers with feedback

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17. Sharpen Your Competitive
Edge Through Better Service

• Measure your performance

– Approach
– Suggestion Selling
– Returns Policy
– Customer Appreciation
– “Thank You’s”

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18. Save Time For Your Busy
Customers

• Speed up check out

• Have supplies stocked & ready
• Add POS during busy times
• Cut down on needless approvals

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19. Fast Complaint Handling
Saves Sales And Builds Business

• Have a clear policy

• Make sure everyone knows it
• Track “Sociopaths” & “Carp”
• If you have to disappoint, have a perk ready

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WORD OF
MOUTH

ONE
SATISFIED 2 FRIENDS
CUSTOMER

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WORD OF
MOUTH

ONE
DISSATISFIED 40 FRIENDS
CUSTOMER

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20. Identify And Clear Everything
Over Six Months Old

• Museum or store?
• “Your baby is ugly”, get over it!
• Prepare aged inventory lists
• Move the oldest to the front on displays
• Make the old look new

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21. Increase Special Ordering
Opportunities

• Have vendor numbers, lists ready

• Know your other stores inventories
• Encourage ordering through you

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22. Develop Special "Bundle"
Packs, Especially For Holidays And
Gift Periods

• Put packages together

• Wrap them attractively
• Price them attractively

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23. Know The Profile Of Your
Customers

• Build a Customer Data base

• Use index cards or book
• Keep track of purchases, wishes, needs,
dreams and other information
• Use it weekly

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Customer Loyalty:

Apostle
100% Loyalty (Retention) Zone of
Affection
80%
Zone of
60% Defection Zone of
Indifference
40%
20%
Terrorist
0%
1) Extremely 2) Somewhat 3) Slightly 4) Satisfied 5) Very
Dissatisfied Disatisfied Disatisfied Satisfied

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24. Use Voice Mail

• If a phone rings in the middle of the night in

your store, does it make a sound?
• After hours
• During busy times
• “Advertise” on it

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25. Comb Your Territory
Thoroughly

• Collect postal codes

• Where are you not attracting customers
• What businesses can you partner with in the
area?

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26. Recognize "Frequent Buyers"

• Reward Loyalty
• Keep it simple
• Make it worthwhile for the Customer

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27. Look For Opportunities
Missed By Competitors In Their
Advertising

• Keep a “book” on your competitors

• Preempt them

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28. Identify And Advertise Your
Best Sellers

• Fish while the fish are biting

• Best sellers during the best time
• Don’t Discount!

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29. Don’t Forget The Yellow
Pages

• Many Customers let their fingers do the

walking
• Look up your competitors, what are they
doing?
• Are you listed? is it the right category?

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30. Always use the Customers
Name

• As soon as you can, learn the customers

name
• Use their name as often as you can
• The best sound in any language is the sound
of our own name!

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31. Don’t Procrastinate

• Choose 3 and do them today

• Keep it up for six weeks
• Choose 3 more and continue

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Thank you and keep in touch

The Future of
Commerce
Dionco Inc.
312 673-0187
jimdion@dionco.com
http://www.dionco.com
Dionco Inc.