How a field trip can improve your retail or restaurant business!

Can a small business make premium loyalty work?

A recent study by Clarus Commerce makes a strong case for premium or paid loyalty programs,

According to their 2021 Premium Loyalty Data Study:

79% of consumers say they don’t want to accumulate points anymore and retailers’ loyalty programs should provide immediate benefits to maintain their loyalty.  

81% of traditional loyalty members say they would join a premium loyalty program at their favorite retailer, assuming that the benefits were valuable. 

90% of consumers say they’re likely to choose a retailer where they’re a premium loyalty member over another one offering a lower price

What exactly is premium loyalty?

Premium or fee-based loyalty offers members immediate or ongoing benefits without having to wait to accumulate points.  Even though they are paying a fee to join, customers perceive enough value from membership that they are encouraged to sign up. Further, having made that “investment” in a business by paying to join, they are compelled to continue to patronize that business.

Examples of some of the most popular premium loyalty programs are:

Amazon Prime is the mother of all premium loyalty programs in which customers pay an annual fee to receive unlimited free 2-day delivery.

Barnes and Noble offers 40 percent off pricing on hardcover bestsellers, 10 percent off almost all other purchases and free express shipping on all online purchases for $25 year.

Bed Bath and Beyond charges $29 a year, to receive 20 percent off each full purchase plus free shipping.

Based on the Clarus survey, it appears consumers are very open to premium loyalty and there is certainly proof of concept that this type of program is working for large brick and mortar and online retailers. But does it translate to your small business?  The answering is a resounding yes IF the benefits, product and customer behaviors align.

Take a look at your product/service  and how customers buy when evaluating whether or not a premium
program would work for you. What would appeal to them and add value? What would give you a fierce competitive edge? Would an automatic and ongoing discount encourage greater frequency of purchase or a broadening beyond typical purchase categories?  Perhaps adding a premium service like free shipping, or wardrobe styling would work. What about VIP events and opportunities to make members feel like they were receiving special treatment?

Can you offer an immediate and equivalent upfront reward that would eliminate any risk of joining?   For example, LuLuLemon is testing a premium program for $100 per year that awards members a free pair of leggings of approximately the same value upon joining.  Absolutely no risk!

If you’re worried about the cost of these rewards, structure your fees so the upfront membership cost allows you to fund the initial benefits.

It’s important to remember this type of program won’t appeal to all customers. But it might be an opportunity to add a VIP tier to your existing loyalty program and appeal to your top customers, especially those who appreciate status and exclusivity.  This elite tier would appreciate benefits like “early release,” educational opportunities or exclusive invitations.

Another advantage of a premium loyalty program is the opportunity to really drill down to the needs and wants of members and offer more personalized and relevant offers.

If you’re thinking giving your loyalty program an upgrade, consider the following:   

Will you offer a one-time fee or a renewable annual membership?

What is the value proposition you’ll be offering that your customers will find irresistible? 

When promoting, highlight the ideas of instant gratification and status. Start using your benefits today! Become one of our elite customers!

Promote regularly to members after they join not just to keep awareness high, but to remind them they are part of a special club. Adopt a tone of community and inclusion.

Change/add rewards regularly to help maintain member excitement and engagement.

Research your POS capabilities to administer the program.

Do you need to appoint a staff ambassador or create a special email address to service members?

If you think a premium program might work for your business, run a trial membership campaign to a portion of your customer base or customer survey to test response. It won’t cost  you anything and will give you a reasonable basis for making a decision on whether or not to move forward.

Loyalty rewards are high on a consumer’s list of reasons for choosing which stores and restaurants to patronize. Even if you decide against a premium option, be sure to keep your loyalty program fresh, monitor metrics frequently and train your staff to promote consistently.

Easy tips to make your store window memorable!

By guest blogger, Linda Cahan

People notice window displays. Very simply, they are a form of street art and entertainment. When a person walks or drives by a store and the windows are bright and graphic, their heads will swivel, and they’ll pay attention. Whether they stop and shop at that moment depends on many variables. If they notice your windows, they will remember your store when they have the time, money, inclination or need to shop for what you’re selling. If your windows change (at least - monthly), they will continue to look your way to see what’s new. They will come to see your store as a part of their daily lives. The more often you change your windows, the more often people will look in your direction and note your existence. Once your store is part of their routine, they will shop you when the need or desire arrives.

Window display is a very immediate form of advertising and exists to inspire people to come in and buy.

So, what are your windows saying?

Who are trying to attract?

If you say everyone, your immense challenge is to create windows that appeal to all socio-economic groups. A woman who will buy a Chanel suit may not be inspired by windows that are designed to attract people interested in a $89.95 suit unless she wants to go incognito. Depending upon your neighborhood and surrounding area, you should know what vendors and merchandise mix will work for your customer base. Trying to attract people who will never be interested in your selection, price point or style is a waste of time. Know your customers and gear your windows to attract them.

More stuff = less Money.

The more you jam into a window, the less expensive the merchandise looks. The perception is that lots of merchandise equals low prices. While getting a lot into a window may make sense to you, if your price points are higher, you’ll potentially turn off the people who can afford your lines. Of course, if you’re a discount store, a busy window may work well for you.

If your prices are at full retail, your windows should reflect those price points. If you display more expensive things, just a few pieces in the window will tell people that this selection is upscale and exclusive. Space = Cost. At another time you may want to show a great line of matching pieces all under $100. Then, you can put a more extensive grouping in the window.

Ella Ross, San Francisco. Bright paper flowers draw the eyes of passersby on Filmore Street.
The flowers are above the parked cars so people can see them from across the street as well.

Color sells!

The three things people notice most in a window (or interior) display are color, angles and movement. Colors that people notice from the street tend to be warm: reds, pinks, yellows, oranges and lime green. Colors that make people feel relaxed are those that recede: browns, tan, beige, gray, blues, soft or dark greens and darker shades of purple.

If you have a dark see-through into your store (when you look at your store from the street the interior looks almost black) – you need large graphic pieces in light and bright colors to attract attention. If your see-through is bright and light, you can get away with darker or more recessive colors in the windows. Black merchandise in a dark window is invisible.

When you pull together merchandise for a window display your priority is to find pieces that work together color-wise. I consulted for a clothing shop that I thought, based on their windows, was a consignment shop. It was full-priced, nice women’s clothing but nothing in the window worked together. There were mannequins with heads, headless and some with arms, some without plus old dressmaker forms. The clothing was whatever came in that week and nothing matched. I suggested she just use matching forms/mannequins in the window and use an odd number – three or five. Odd numbers are more interesting than even ones. Then, I told her to only use clothing in the window that makes sense together. Ideally, a customer should be able to mix and match pieces to create several looks from what is seen in the window.

Use angles to create movement.

Angles lead the eye from place to place. Our eyes move quickly down an angle and angles makes a window display look and feel more exciting. Whenever you use angles, make sure the primary angle leads the customer to your front door – not away from it!

Too many angles can cause visual confusion. A large triangular form made up of props, forms and merchandise in a window generally looks great, creates angles and a focal area without looking disorganized.

Repetitive images are memorable.

Our minds are a little like computers, we can take in just so much information before we have to stop and process what we’ve seen. The simple geometry of lining up similar or the same pieces of merchandise is (almost) always effective.

Imagine five mannequins or forms lined up, spaced equally apart in the window. They are wearing pieces that work together to form a color story. Over the heads of each form is a paper umbrella. The last mannequin or form has the umbrella in a different position – perhaps popping out of a tote bag. When everything is lined up and matching there has to be an element of surprise to keep people interested.

Make it easy to do great displays.

Hang a grid in your window perpendicular to the floor. Have it installed professionally so you can hang from it almost anything. Once your grid is installed you can start getting creative and have some fun with props. Grid is available from many display companies. Check out a display/fixture company in your area.

Light it up!

Lighting makes all the difference between an effective window and one that’s virtually ignored. I know it’s expensive to install lighting, but the cost is well worth the results. Consider it part of your advertising budget.

For window lighting to be most effective, it has to be mounted on the window wall – not on the ceiling. The purpose is to light up the front of the merchandise, not the top. It can always be done. You may need to suspend it from the ceiling on a track and use window film applied to the inside window in a long, 8” stripe to hide it from the street. You may need to attach it to the metal mullions on the sides of the windows or put the lights on the window floor (least favorite alternative). But, whatever you do, add lights!! Make sure they are commercial grade rather than some cheap ones from Home Depot or Lowes.

Pick a theme and stick with it.

Once you decide on your window theme, don’t stick new arrivals in the window. If you have new arrivals that you are excited about, either create a new arrivals area in the front of the store in a prime focal area or, do a new window display. Don’t pollute your existing display.

Tilde, Portland, OR. Simple but super sweet! Polar bears are cut out from foamcore and placed on a foamcore buildup. The merchandise at Tilde is small gifts, accessories and jewelry. The windows are huge. Their use of large visuals attracts attention and then the smaller items get noticed and appreciated.

Plan, purchase and present with purpose and style.

Figure out in advance what you want to do every 2 weeks to 1.5 months in your windows. Think about the time of year, what’s happening in your advertising, holidays and what’s coming in from vendors. Plan your props accordingly. Leave enough time to do a window from start to finish in one day. If you don’t have the time – and most store owners don’t – hire someone who has the talent, interest, skill and perseverance to do a great job.

Your windows are your on-street advertising. They are your image and represent your brand. They tell people whether they belong in your store or not.

Give them the attention they deserve, and you will be rewarded with old and new customers inspired to come in to see and buy.

Linda Cahan

Linda Cahan of Cahan & Company, West Linn, OR is an internationally recognized expert in visual merchandising and store design. She helps stores look better to sell more. Linda has consulted and worked with independent and corporate retailers since 1972. Along with consulting, Linda gives seminars and workshops, trains retailers and writes for several retail magazines. Author of "Feng Shui for Retailers" and "100 Displays Under $100." Lindacahan.com, lindacahan@gmail.com

9 Deadly Retail Customer Service Sins

Personalized service and attention is the hallmark of small business and customer satisfaction is the key to retention. Is your staff doing its part to promote loyalty? Keep a careful eye out for these transgressions in your store or restaurant.

9 Deadly Customer Service Sins

1. Making a customer wait to pay
    Whether it's a line at the cashwrap or waiting for the check in a restaurant, 
    making a customer wait to pay leaves a very bad last impression and 
    spoils an otherwise pleasant experience.

2. Associates chatting on cell phones or texting
    It's not just enough to have a no cell phone rule. You need to enforce it! 

3. Not having a customer's best interest at heart
    People are intuitive and know if you're efforts are insincere. Service and hospitality 
    come from the heart. Hire only those who care about an excellent outcome 
    for every customer.

4. No suggesting alternatives/upselling
    Visitors truly want to find the perfect item or service. Not making recommendations on 
    how you can potentially fill their desires is a disservice to them.

5. Ignoring a customer
    Pretty much says it all.

6. Not resolving complaints quickly and to the customer's satisfaction
    Would you rather be right or keep a customer? The choice is yours.

7. Sales associates don't have product knowledge
    One of the big reasons people patronize independently owned businesses is for depth 
    of product knowledge not found in impersonal, larger stores.

8. Not validating a customer's purchase
    A customer should be congratulated for every purchase in your establishment. 
    "You're going to love this."  "I know you'll be happy with this."  
    In other words, you've made the right decision shopping with us!

9. Pre-judging the customer's desire or ability to buy
    We don't judge in sales. We assume everyone is a potential customer and work 
    towards that inevitability. Even those visitors who seem difficult or distracted may be 
    back another day ....if treated well.

The best way to insure great customer service is to make it the cornerstone of your store's experience and consistently train staff in the skills and attitude necessary to provide an exceptional experience.

Until next time remember,
You can do this!
Angel

How a field trip can improve your retail or restaurant business!

How to get "unstuck"

The daily routine of running a small retail store or restaurant can lead owners into to a serious rut where the flow of ideas just stop! That can be pretty scary place because new ideas are the heartbeat of small business. It's always a good idea to learn how to recognize when you're stuck and have a plan to get the juices flowing again.

Here's one of my favorite tips from my Ebook, "15 Ways to Get Unstuck." 
Get your free copy. bit.ly/15waystogetunstuck

Angel's 90 Day Challenge - and it's not what you think!

It's May 1 and the start of my personal 90-day challenge to bring local retail and restaurant owners an insane amount of free content to help you launch, grow or save your local retail or restaurant business! Follow me for all the great info: facebook.com/angelciceroneretail instagram.com/angelcicerone linkedin.com/angelcicerone

4 Questions for Business Clarity

What's a sticky pad moment? It's when you have ideas, thoughts, questions or answers important enough to  jot down and keep in front of you at all times.

As business owners, we can get sooooooooo caught up in the day- to- day we forget the original vision and goals we had for our businesses and ourselves.   Dealing with employees, inventory, customer service, scheduling, finances, marketing …it’s a lot. And these daily details are not just an inspiration suck, they can easily lead us into a maze of confusion!

That’s why it’s always a good idea, no matter where you are in your business life cycle, to take a minute and revisit these four important questions; questions which, by the way, have nothing to do with money. They are about understanding the essence of your business and your relationship with it.

While I won’t call them magic questions, their answers will certainly bring clarity to your business and life and that’s an amazing gift!

Question 1
What makes your business unique, different or special?

Do you have an unusual or proprietary product? Perhaps you’ve put your own twist on something like the mini-cupcakes that make people line up at Melissa’s bakery.

Maybe it’s your store design.  Or pricing. Or the way you wrap things in eco-friendly knapsacks. Maybe your business is family-owned.

Or your signature product is apple cake baked using a 5 generation-old family recipe.Or your staff is so knowledgeable people wouldn’t consider going anywhere else.

You get where I’m going.

But if you can’t come up with a differentiator, a meaningful one, I’m going to suggest you stop right here. Take a breath and put some serious thought into answering this question. If, after careful thought, you find your business is too general and unfocused, you’d be best served by doing some serious brainstorming to fine tune your concept.

Question 2
Who is your target audience? Be VERY specific`

Who you sell to (and their reasons for buying) are the pulse of any retail or restaurant business. “Everyone” isn’t a demographic and casting a broad net is dangerous in this day of market segmentation and personalized communication.

A boutique for women 25-49 probably won’t be met with much enthusiasm. A boutique for women 25 -49 that specializes in conservative clothes for work and offers a personal stylist will probably do a whole lot better.

Get in touch with that target niche. Find your tribe. Then do everything you can to get to know them and show them your love.

Question 3
What is the life you’d like to lead as a business owner?

Success in business isn’t just about making money (although profitability sure does make life a whole lot better!)  What do you want your life to look like? Do you want to work less? Or expand to 1, 5 or 100 locations? Is your end goal to sell? Or leave it to your kids?

Each one of these options requires a slightly different route and it would be a shame to work so hard and end up having detoured from your original goal. Defining your life goals help to define your business path.

Question 4
What do you need to know more about to make that happen?

I’m not exactly sure why but so many independent retail and restaurant owners fail to hop on the lifelong learning express. It might be fear, lack of time or even shame that they don’t know it all. Frankly, I don’t really care about the reason. I just care about the results.

In another day and time, learning the things you needed to know to succeed in business was important. Today, thanks to the lightning fast pace of change in our world, it’s critical. So what do you need? A crash course in accounting? Inspiration for marketing.

A solid social media primer? A better understanding of omnichannel sales? Training in sales, customer service, negotiating a lease?

Whatever it is, go out and get it. Thanks to our friend, the internet, there is so much available at little or no cost, available 24/7 so you can squeeze it in whenever you have the time.  

Do me a favor. Shoot me an email with the answer to this one. – success@angelcicerone.com. I am always looking for great free resources on the topics of interest to you and this will help me identify the types of training you’re looking for.

Final step

Now, take your answers to these 4 questions and jot them on a sticky pad. Place that note somewhere where you can see if every day.  And as you make decisions about your business, you can make them within the framework of your answers to these questions. If it doesn’t help your business become more special, appeal to your target customer, get you closer to leading the life you want or give you a better understanding of how to achieve success– there’s no need to move forward or waste time. Clarity is one of the keys to achieving goals and these four simple questions will help you stay on track!

Until next time, remember
You can do this!
Angel

Would you like a free 4 Questions Worksheet to answer these questions? Just click here.

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