We made the cover...woohoo

The image below is the front page of the National Newsagent Magazine. They (kindly) embraced a program we are running on behalf a client (Nationwide News).

The Retail Remedy bootcamp is a double-page spread on the inside - and the above image is the (great) cover. 

Of course thanks to Carolyn at the ANF and the whole Mark, Tim and the team of Newspartners who made it possible.

NOW - all that remains would be for just one newsagent to embrace it and make a difference to their lives ;-)

Sell like it hurts

Fear (of loss) is a bigger motivator than the positive experience of winning or owning.

This is really important. Read again and think about how YOU sell currently?

This is an important consideration because in practice this means that when a proposition is phrased as ‘pain avoidance’, it will be more powerful than ‘pleasure seeking’.

It relates back to the survival instincts at play avoiding danger or pursuing scarce resources are appropriate responses to the threat to our survival. Kahneman & Taversky were the researchers who originally articulated these findings best. Practitioners call these persuasion strategies “Omega Strategies” – and it is all about how questions/ propositions are ‘framed’ to gain maximum compliance.

If you are asked to give a Lotto ticket to someone, you feel irrationally agitated because you anticipate the feelings of regret because you might ‘lose’ something.

When confronted with scenarios which are statistically the same but framed in ‘opposite’ terms (positive vs. negative) then people tend to respond to the negative scenario (pain avoidance) more than the opposite.

Let’s play a hypothetical to illustrate:

There is an outbreak of a dangerous disease that is expected to kill 600 people.

There are two alternate programs that could save some people:

• Program A will save 200 people
• Program B: There is 1/3 probability that all 600 people will be saved and a 2/3 probability that no one will be saved.

Which do you choose?

(Stop here and decide A or B. Make a note.)

Upon further study, 2 further options are identified:

• Program C will cause 400 to die
• Program D has 1/3 probability that no body will die, and a 2/3 probability that all 600 will die.

Which do you choose?

(Stop here and decide C or D. Make a note.)

Most people (78%) choose option D.

Only 28% chose Option B.

Options D and B are identical identical. Why do people choose differently?

The difference being that one option is framed as a ‘risky proposition’ which may lead to anticipated regret (pain) and most respondents choose Option A – the sure thing.

Your challenge is to figure out how you can ‘frame’ the options you present to your customer in such a way that they will choose the option that is best for you. (Or you can get someone to do it for you and avoid all the pain of doing it yourself.)

Help your customer ‘avoid pain’ by changing the language you use. (I always use ‘retail’ examples, but I know many suppliers/ service providers also read Inside Retailing, so here is one practical example that can be used by everyone for a change.)

Phrases with PAIN	AVOID the pain
Contract	Paperwork
Sign here	OK the paperwork
Expensive	Top of the line
Cheap	Economical

Like most of the insights from neuroscience, people who have a natural affinity for human interactions will find that they often naturally do these things and understanding WHY it happens or why it works gives the framework to explore it further and the confidence to expand their repertoire.

BUT – just in case my point is not understood, selling is not (just) about talking. And especially it is not about ‘smooth’ talking. Consider this:

After extensive studies, the MIT Media Lab concluded that it could predict the outcome of negotiations, telephone sales calls, and business plan pitches with 87 percent accuracy simply by analysing participants’ body language, without listening to a single word of content. When the MIT Media Lab concluded that they could predict the success of sales calls without listening to a single word, these are the only two measurements they needed: 

• Ratio of speaking to listening
• Amount of voice fluctuation

Dennis

GANADOR helps retailers and their retail supply create high-performance businesses through innovative learning & development technology and programs.

Is this a Groupon killer?

Learn more here.

Making it...

Slide deck - brilliant message, brilliant design. Spend a moment...

The Future of Marketing: Make Things People Want or Make People Want Things?

View more presentations from John V Willshire

(HT farisyakob)

Becoming an ACE at retail selling

The diagram illustrates the setup in a retail sale.

 

The retail employee is the ‘ambassador’ of your retail proposition – which includes all the Ps of the Retail Mix.

The Customer (is also a person) but they enter the retail environment with a shield between them and the offer you want to make. This ‘shield’ may be past experience, attitude, fears, perceptions, cognitive dissonance etc. (Importantly these are typically emotional in nature.)

The retail sales person must penetrate that shield. There are two facets to that activity:

There are certain psychological hot buttons that can be used to lower the customer’s resistance. (I have written about that before.)

There is a certain ‘process’ that applies. This is the part that muse be ACE’d.

A few observations about this ‘process’:

• The retail sales interaction is NOT process driven as many trainers/consultants would apply. Sometimes a sale can happen in the blink of an eye, sometimes it takes multiple visits.
• Occasionally you may recognise ‘stages’ of the process, but you can’t train staff to follow a rigid process such as: Identify the need, evaluate alternatives through to close the sale – or ANYTHING like that.
• People carry that ‘shield’ for a reason: they don’t want to be sold to, so the best you can do is to make sure you can help them buy.
• The reasons why people buy are fundamentally emotional. If you want to be effective at helping them buy, you must converse accordingly. (Metaphorical selling is what we train.)

How do you structure this interaction with the customer so that you can:

• Relate in such a way that you can make a fair representation of your offer?
• Help the customer buy according to their needs?

APPROACH

• Approach the customer when you have seen the buying signals.
• Check your own body language, attitude and energy before you approach. (It’s contagious.)
• Make sure that the customer can see you when approach.
• When you are close enough to stop, make sure there are no barriers between yoi and the customer. (There are many different kinds.)

CONNECTION

• Making the connection is the first step. Unless you succeed here, you cannot and should not proceed. In fact, if you feel you screwed this up, smile/greet and move on. Come back later.
• This connection is verbal and non-verbal. Both should be open, honest and sincere. No tricks necessary: just smile & greet.
• Do NOT ask if you can help them.
• There are many appropriate opening statements or questions and these depend on the customer, the scenario and the sales person’s own confidence.
• Your OBJECTIVE is to make a connection, NOT to make a sale, not to serve the customer, not to even help them buy.

ENABLEMENT

• Initially we called this execution, but considering what we want to achieve, enablement is a truer reflection. This is where the conversation relies on your knowledge of the offer (including product knowledge) and your knowledge of consumer psychology; that is how to push those hot buttons. 
• I often marvel at people who have no formal training simply use their instincts without knowing why they do something, simply just do it right. (But not as often as one would like.)
• The conversation that happens at this stage must be structured to lower barriers and appeal to their emotions. There are phrases that people can learn – and as they experience success, they gain confidence to develop their own style, whilst staying true to the principles.
• The shield cannot be broken down by ‘force’. (Hard sell.)

Even if you do this right, you may not get the sale today. But if you do it right you will get more often than most, more often than before; and worst case, you will get it next time.

Have fun

Dennis

GANADOR helps retailers and their retail supply create high-performance businesses through innovative learning & development technology and programs.

Easy or Hard?

We have good friends in Melbourne. Smart people. People whose insight and opinion are valued, despite the fact they are from Melbourne. (Just kidding). And one day this friend said something that has taken me a long time to process.

She asked me: “Why do you always do it the hard way?”

And as I thought about that, I realised that doing it the hard way was ingrained in me. I had always thought the hard way is the same as the right way. And I  also realised that it wasn’t easy for me to switch my approach readily between the hard/easy options – it is as if people had a natural predisposition one way or the other.

Although the hard way is NOT necessarily the right way to do things, on balance I think it is the better way. The pay-off may be later, the effort may be bigger, but generally speaking the easy way is usually the crowded way. Invariably it is also the less interesting way. Of course that is not always the case. If you are lost in the jungle you would be silly to ignore the well-worn path in favour of hacking your own way.

If there is an easy way and there is a hard way; and the question is which one are you inclined to choose?

This is the easy way.

• Politicians taxing bad habits, instead of…
• Cops writing speeding tickets, instead of…
• Ads made of slides on TV, instead of…
• Retailers discounting prices instead of…

The easy way may get results, but results with many unintended consequences.

These are:

• Bad habits become the mantel the rebels wear with pride
• People make accidents watching their speedometer instead of the road
• People become immune to the blatant pitch
• People learn to wait for the inevitable sale

The hard way is, well…hard.

That would be to:

• Create taxes that may be politically unpopular, but effective – or possibly to curb government spending
• Train learner drivers proper defensive driving skills
• Create engaging, relevant ads
• Build a relationship based on the right value proposition and to deliver delightful experience.

The sad thing is, even though we know that, most people will still seek the easy way. Check the Lotto queue if you don’t believe me.

You don’t have to though.

It is a decision.

Here are some warning signs:

• If things go wrong, you wonder who is to blame.
• You check the number of likes instead of the number of orders
• When you are presented with an opportunity, you think of all the things that can go wrong first
• When a rep/consultant cold calls, you close them out without hearing if they have anything of value to your business

But, unlike me, you don’t always have to choose the hard way. Just be careful: I bet that the apple that Eve ate was once low-hanging fruit.

Have fun…

Dennis

GANADOR helps retailers and their retail supply create high-performance businesses through innovative learning & development technology and programs.

Be inspired...

Aha- it's my FAVE insight...

This week the proverbial apple fell on my head.

Our main game is training. But, we do also do some consulting because (a) we are pretty good at it and (b) we find it a great way to stay current. (We need to learn too…)

Just his week it was a retailer; 22 years in the business and ‘knows everything’ despite the fact that (a) that had call in the rescue squad and (b) their claims that they were willing to learn.

In conjunction with the Landlord, we had decided that unless the retailer could produce (or at least was willing to try and produce) an accurate set of numbers for us to base our assessment and advice on, we would play hard ball.

I know some readers may disagree, but the reality is that the landlord is a property manager, not a bank, so financing under-performing businesses has to make sense from their perspective (improving or securing their ROI) because they should not be in the business of sharing the business risk as a bank would do.

During our initial conversation, the apple fell on my head. I realised that retailers can be classified based on how they make decisions.

There are four main approaches to retail decision making:
1. Factual
2. Anecdotal
3. Visual
4. Experiential

Let’s run though them quickly from the bottom up.

Experiential

They rely on their experience; the ‘I-have-been-in-this business-22-years’ type of retailer.
So, when I ask him; “what is your average sale”, the vague answer is ‘somewhere between $30 and $50.’

Visual

They go on what the SEE.

Look at the store, it looks OK. Look at the customers in the mall – not enough. Look, at the car park – there is no one there but commuters.

Anecdotal

They base there strategy and their responses on what the guy across the road is doing; or what the supplier said, or what they heard on the news - all anecdotal evidence.

Factual

I am still trying to find them. I dream about it… maybe one day.

Come to think about it, there may be a 5th type.

Maybe there are retailers who may consider all the angles (FAVE) to come to a balanced view:

• The ones who realise that you can’t survive on low-hanging fruit forever.
• The ones who know that success is sweat spelled differently.
• The ones who don’t look for the magical silver bullet.
• The ones who realise that the environment is the same for everyone.
• The ones who are willing to learn.
• The ones who can read between the lines…

I learned from the apple that fell on my head that when someone is locked into a single paradigm like that, there is no helping them.

But if I ever bump into one, I will let you know. And if you do, please let me know - or if perhaps you are one; I would love to buy you a coffee…

Have Fun

Dennis

GANADOR helps retailers and their retail supply create high-performance businesses through innovative learning & development technology and programs.

PS: On Friday we published the Winners’ Circle, our occasional newsletter – and it is pretty cool even if I have to say so myself. This issue is ‘DESIGN YOUR FUTURE’. Click on the subscription link to be notified …

Let's call it progress...

Accounts Receivable Tax 
Airline surcharge tax 
Airline Fuel Tax 
Airport Maintenance Tax 
Building Permit Tax 
Cigarette Tax 
Corporate Income Tax 
Goods and Services Tax (GST) 
Death Tax 
Dog License Tax 
Driving Permit Tax 
Environmental Tax (Fee) 
Excise Taxes 
Federal Income Tax 
Fishing License Tax 
Petrol Tax (too much per litre) 
Health Tax 
Hunting License Tax 
Interest Tax 
Liquor Tax 
Luxury Taxes 
Marriage License Tax 
Medicare Tax 
Mortgage Tax 
Personal Income Tax 
Property Tax 
Poverty Tax 
Prescription Drug Tax 
Real Estate Tax 
Vehicle Tax 
Retail Sales Tax 
Service Charge Tax 
School Tax 
Vehicle License Registration Tax 
Vehicle Sales Tax 
Water Tax 
Watercraft Registration Tax 
Well Permit Tax 
Workers Compensation Tax 
And Now a Flood Tax and then a Carbon Tax ! 

Not one of these taxes existed 100 years ago, & our nation was one of the most prosperous in the world. 
We had absolutely no national debt, had a large middle class, and Mum stayed home to raise the kids. 

It's a dark and stormy night...

The winds have whipped the waves into a frenzy. It is as dark as sin. The ship is tossed violently from port to starboard and the seamen are lurching about. You shout your orders. The first mate relays the message with frantic pitch in his voice. The wind seems to be picking up and the last remnant of the moon disappears behind the dark clouds. Someone yells that the boat seems to be taking on water.

You look up, glance at the lighthouse. It seems about right. You know that if you can keep it in sight, you will enter the quiet of the bay in a few minutes. Your troops follow your gaze and it seems to reassure them; they still rush, but somehow it seems more controlled.

That is our economy, your business and your staff.

And the lighthouse is your ‘vision’.

• How are you doing with that ‘vision’ thing?

• Do you use it to steer your business through stormy waters?

Most businesses don’t use their vision in a practical way – it simply adorns their annual reports and page 1 of the strategic plan – because more often than not it is utter gobbledegook.

Check out this site for examples of good and bad mission statement, or this one for a few fortune 500 companies.

You can skip that and take the dennisprice test for a good vision statement:

If your PA (or any of the most junior staff members) can use it to make practical decisions in their job, then it is useful.

Let’s compare two famous organisations:

AVON

“The Global Beauty Leader We will build a unique portfolio of Beauty and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the Beauty company most women turn to worldwide. The Women's Choice for Buying We will become the destination store for women, offering the convenience of multiple brands and channels, and providing a personal high touch shopping experience that helps create lifelong customer relationships. The Premier Direct Seller We will expand our presence in direct selling and lead the reinvention of the channel, offering an entrepreneurial opportunity that delivers superior earnings, recognition, service and support, making it easy and rewarding to be affiliated with Avon and elevating the image of our industry. The Best Place to Work We will be known for our leadership edge, through our passion for high standards, our respect for diversity and our commitment to create exceptional opportunities for professional growth so that associates can fulfill their highest potential. The Largest Women's Foundation We will be a committed global champion for the health and well-being of women through philanthropic efforts that eliminate breast cancer from the face of the earth, and that empower women to achieve economic independence. The Most Admired Company We will deliver superior returns to our shareholders by tirelessly pursuing new growth opportunities while continually improving our profitability, a socially responsible, ethical company that is watched and emulated as a model of success.”

STARBUCKS

 “Share great coffee with our friends and help make the world a little better.”

• Does it dictate what they sell?
• Does it dictate how they sell coffee?
• Does it dictate how they treat a customer?
• Does it dictate how they treat a supplier?

Does it help people do their jobs?

Based on your reading of the mission statements above; which company would you rather work for?

I will leave it for you to decide.

But I will ask again:

How are you doing with that ‘vision’ thing?

PS: The day after I wrote this, Smart Company published their 6 lessons from the Hot 30 entrepreneurs under 30. Guess what is at the top of the list?

PPS: Our next issue of the Winners’ Circle will be out later this week:

GROWING A BUSINESS AND BEING HAPPY. (If you want in, drop your name + email in the box.)

Have Fun

Dennis

Dr Dennis Price helps retailers and their retail supply create high- performance businesses through innovative learning & development technology and programs.