BEFORE WE START

STARTING-UP

So being hard to talk to was killing the unsuccessful startups because it was a sign of an underlying lack of resourcefulness.

Are YOU hard to talk to? 

GROW UP BY DESIGN  (NOT BY ACCIDENT)

WHAT IS DESIGN THINKING?

GANADOR IS GROWING UP TOO...

It is all about how people learn (best) to perform. And the way it happens is <NATURALLY> not <ARTIFICIALLY>. The way you learned to speak your mother tongue, or the way you learend to ride a bike.

It's simply the best way for a group of people to work together and learn from each other without having to take time out to sit in a class room.

YOUR HAPPINESS AND SUCCESS

The key thing to know is that happiness is not related to MONEY.

ALTERNATIVELY, LIFE'S A BITCH THEN YOU...

PERSONAL DEVELOPMENT RESOURCES

BUT, WHAT IF IT ALL GOES WRONG?

SOMETHING TO THINK ABOUT

SOMETHING TO LAUGH ABOUT...

C'mon... talk to me...

THE END

We would like to tell you about some changes, including why this 'newsletter' is different. But we do that right at the end - for those who are interested. Let's get started...

THE THINKING ISSUE

Most of us pride ourselves on being rational. We like to 'think through' issues and challenges. We trust our thinking possibly more than we should, in fact, because most of us know very little about the thinking processes we rely (or say we rely) on.

At the core of the Ganador brand is the idea that 'being smart' is the only way to be successful. (With product names like Retail$mart and Start$mart and Sell$mart, it should be pretty obvious.)

• Hard work is a given - but there is no guarantee.
• Luck is necessary but we have no control over it.
• So all that remains is to outsmart the competition; to think about your business, your processes and to be smart about the opportunities you take.

Thinking is about being smart, it is not about remembering things or understanding mathematics. 

There is an inherent paradox because intuition is very important. We should be smart enough to recognise that intuition plays a role in decision making. 

Our Sell$mart program (retail selling skills) for instance is entirely based on understanding the sub-conscious ('old brain') triggers of purchasing behaviour and learning how to push those buttons in the retail environment. We don't think (actually, we know) that the so-called 'seven steps to selling' does not exist outside of training manuals.

We certainly weren't (and I doubt many have been) taught explicitly HOW to think.

To get you started, we have uploaded a series of 6 (short) videos to introduce some of the basics of good thinking.

CRITICAL THINKING

Critical thinking video - Part 1: A Valuable Argument

Critical thinking video - Part 2: Broken Logic

Critical thinking video - Part 3: The straw man argument

Critical thinking video - Part 4: Getting Personal

Critical thinking video - Part 5: The Gambler's Fallacy

Critical thinking video - Part 6: A Precautionary Tale

PRACTICAL APPLICATIONS

Business Planning

Business Planning is in theory an obvious example where the business demonstrates its analytical and thinking prowess. However:

• If the plan is always shelved, rarely referred to and everyone baulks at jumping through those hoops every year to no benefit; do you THINK it is still worthwhile?
• Have you THOUGHT about why you follow the same structure (mission, vision, objectives) - and if there is not a better way for your organisation?
• Don't you THINK there might be a beter alternative?

Positioning: The Genius of Steve Jobs

Your business/ brand is 'positioned in the mind of the customer. That is the way they think about it. (Read more here.)

Before Steve Jobs re-invented the category with the iPod, all manufacturers (Sony, LG, Microsoft etc.) thought they knew what the customer wanted from a portable music player: as small as possible, with as many gigabytes as possible.

The genius of Jobs was the idea that people actually would prefer their portable music player to be 'cool' (achieved by design) and have access to loads of music. 

The first iPod had both a smaller capacity and were larger than other players at the time.

Many pundits rave about Steve Jobs's creativity and intuition - but if you read the back story, you will realise Apple was hyper-disciplined about thinking through issues.

Here are a few of Jobs's quotes that make the point:

And it comes from saying no to 1,000 things to make sure we don't get on the wrong track or try to do too much. We're always thinking about new markets we could enter, but it's only by saying no that you can concentrate on the things that are really important.

 And

That's been one of my mantras - focus and simplicity. Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it's worth it in the end because once you get there, you can move mountains.

You can see from the above that whilst 'inspiration' may have been a trigger, the execution relies on THINKING. 

Bonus Link: Management lessons every company should steal from Apple. 

USEFUL INFORMATION TO MAKE YOU THINK

Pinterest

Pinterest is one of those sites that makes you shake your head and think - 'why did I not think of that'. Pinterest is an application (and a website) that allows you to 'pin' images that you find interesting to a 'notice board'.  You can then share this with your friends and followers.

Read why the Venture Capitalists decided to back Pinterest when no-one else was interested - there are a few business lessons in that story.

Pinterest is simply a way of curating images (content). The takeout for us is that content curation is a big deal - and is growing in importance.

E.g.: We publish newsletters on behalf of clients. One such client is actually a publisher. That is not ironic or stupid - it is smart of them to outsource the content curation and communication on topics that are not their core business.

Google Newsletter

Google publishes a newsletter (titled Think with Google) and as you can imagine, when they do something they do it well.

As newsletters go, it is in a class of its own - much better than the one you are reading. (I hope you understand why :-)). It is definitely worth reading and subscribing. This is the latest issue.

Social Learning

For a range of reasons (technology and the information explosion) providers of learning can now start providing learning environments that suits how people learn.

THINK:

• How did you learn to ride a bike?
• How did you learn to speak a language?
• How did you learn to run a meeting?

How did you learn to do most of the things you can do? 

NOT the way it is most commonly taught; by chalk-and-talk. (Read more about social learning and communities of practice as a particular application.)

If you think about it, it makes sense to TEACH the way people LEARN. (Few organsiations do that - we are not aware of any other organisation that practices a Non-Training Approach to Workplace Learning in Australia on any scale.)

Which brings us to one of the problems that arise from thinking.

Problem 1

Very often thinkers and innovators operate on the 'bleeding edge' of their discipline. Because they are the first in a particualr space, means that it is a much harder 'sell'.

• You must first convince people you are not mad.
• Then you have to convince them that your idea is valid and 'right'.
• Then you have to convince them your particular product is the right one.

When all the hard work is done and there is a 'market', the competiton moves in - often better resourced than you...

How would you think about this proposition:

We will help you re-structure how you work in such a way that learning is optimised to the extent that you will only have to do 10% of the training that you currently do - for a fraction of the cost?

Does it sound crazy? Too good to be true?

The fact that it is logical and reasonable is in itself not enough to persuade people. Other factors come into play as well - like credibility of the person saying it, or whether you 'like' the person or not. (See videos above.)

Sometimes thinkers (by definition, all innovators are thinkers but not vice versa) also have to contend with the Innovator's Dilemma. 

Problem 2

Thinkers are often tagged as being academic. Certainly some thinkers suffer from the 'analysis-paralysis' syndrome.

But that is an easy myth to dismiss. If you do not think about the risks of over-analysis, if you don't think about the consequences of being in a state of perpetual thinking without concomitant action, then you are not really thinking, right?

FOOD FOR THOUGHT

Amazing fact generator.

I bet you did not know this:

The purpose of gasoline rationing during the Second World War was not to conserve gas, but to conserve TYRES. The primary source for natural rubber at the time was Southeast Asia, much of which was under Japanese control.

 (For more, click on the link.)

The Big Think vs. The Poached Egg

The Big Think site has an atheist perspective - be warned. It does tackle a wide range of issues, usually with well-reasoned essays. We personally happen to think that faith and reason are not mutually exclusive, so we have no problem reading opposing views - and thinking through them for ourselves.

And likewise, for an opposite, well-reasoned perspective you can explore The Poached Egg. Whatever views you hold about the big questions of Life, it always worthwile challenging yourself with the opposite arguments.

Every Winning Photo

Over the last 25 years, these 25 images have captured the year. (Every World Press Photo Winner From 1955-2011.)

It is included here because, when you think about it, CONTEXT and HISTORY are important parts of every thinking process; and it is important to remember that we change our mind all the time because what we thought was right THEN may not be right NOW.

1963 - Do you remember? Did you know?

 Buddhist monk Thich Quang Duc sets himself ablaze in protest against the persecution of Buddhists by the South Vietnamese government. (Malcolm W. Browne)

JUST WHEN YOU THINK YOU ARE SMART

What we know is nothing. And it is worth reminding ourselves of that. Because more important than ANY big thought is... LOVE. Watch the video and realise why I say that...

WHAT WERE THEY THINKING?

If YOU can tell me WHAT this guy was THINKING (either of them) in the comments below, I would greatly appreciate it...

Smart-alec quote:

"Three out of every four people make up 75% of the population." (via David Letterman)

CHANGES AT GANADOR

1. ReadThinkLearnLaugh is no more.

When we launched Ganador we launched the Newsletter and RTLL reflected the structure of the content we aimed for. Our initial 'subscribers were friends, family and ex-colleagues; most who probably never read it but were too kind to unsubscribe.

Over time the list has grown and we have 'unsubscribed' the kind souls we thought would get little from the content. Today we don't know who 95% of subscribers are and we are well into four figures.

We also decided that:

• Since most people are very busy, it did not make sense to publish one every month because we wanted to keep to a schedule. We now only publish when we have curated sufficient, interesting content.
• We have adopted a theme-based structure, exploring a specific topic in depth, rather than following a structure. This allows us to dive deeper into the content and be a bit more rigorous and resourceful.
• It also made sense to move away from a newsletter in your inbox to a web-based 'journal'. This allows us to incorporate multimedia to add variety and interest for you. It also makes it easier to bookmark, share and re-visit as time permits.
• We have never, and will not focus on 'retail' topics only. Our blog (subscribe right here - right hand menu) has plenty of that and there are many opportunities to talk abou the technicalities of retail. This Journal is about 'Life in Business' - and we take a macro view of the issues affecting people in business. This is about the journey of being a business leader/manager/entrepreneur (as all reailers and marketers are) and the personal development of the person - not the business. 
• Finally, it also enables commenting. We don't know who most of the readers are but we would like to be able to strike up a conversation with you.

2. Other web-related changes - and content curation activities

We would love it if you could explore (then follow/like/subscribe etc.) some of our other initiatives:

• Ganador Business Academy Facebook page  is for those interested in Learning & Development and it is curated by Moonyeen.
• Pinterest:  (you can follow Dennis here) 
• YouTube Channel (retail at a more academic level, with a few other eclectic topics thrown in)
• We have added some pages to this Ganador site, if you haven't been around for awhile - please have a look.

What else can you do?

We really look forward to you plucking up the courage to comment, share insights and even resources. (Or ideas for future themes to explore.)

You can also share the page - or recommend to your friends and colleagues to subscribe. Like Steve Jobs, we too want to 'make a ding in the universe' and it starts with you helping us spread the word...

NOTE: We still collect your name and your email address simply to notify you when the latest issue has been published. This also means that we can track when you 'unsubscribe' which keeps us compliant with spam laws.

 Thank you for reading... enjoy the journey.

COMMENTS WELCOME

So we don't publish often, but when we do, we want to make sure it is worth it.

Before you start, a quick 30 sec message from Dennis & Moonyeen.

INTRODUCTION

For this last issue of RTLL in 2011, we thought we would set the tone for 2012. When you set your new resolutions, you must know where the bar is when you want to raise the bar. We'd like to do this by offering a liquorice allsorts of topics.

This means you can also dip in and dip out as you wish. Come back and 'steal' some content later.

Enjoy.

RAISING THE BAR: IN BUSINESS

STRATEGY & FUTURE

This is quite brilliant - do take the time to read and explore.

If you did not explore all the links, this one below you really should.

I am pasting the 'naked' link because I need you to launch a CHROME browser (the Google browser) and paste the link in that rather than click and launch your default browser.

http://www.thewildernessdowntown.com/

Go do it. I will be here when you get back.

TOP 100

Of course you can't raise the bar until you have cleared the bar.

So where is the bar in retail?

This year’s Top 100 list hints at the changes that are underway: Check out Amazon’s growth andApple’s stores’ jump in the ranking as two examples. And who knows what transformative impact the mobile wallet will have over the next five to 10 years?

THE CUSTOMER EXPERIENCE

Factoid #1

According to research from ACI Worldwide, 75 percent of people hold a loyalty card, but over 80 percent don’t know why and have never received any benefit.

Factoid #2

Office Depot’s president could not understand why all their stores received outstanding customer service ratings done by a third party BUT their sales were declining faster than their competitors'. He knew they were not in control of the economy; the only thing he could control is what was going on in the stores. 

He realised that he needed to answer this burning question: they walk in by the loads, but they come out empty handed.

Read the full story.

You can say what you want about who you (think you) are, but people believe what they experience.

Jack Mackey, Vice president, Services Management Group

Factoid #3

Bain and Company after they have surveyed 362 companies found:

• That only 8 percent of customer surveyed describe their experience as superior.
• Yet 80% of the companies surveyed believe that the service they provided was indeed superior.

Factoid #4

The owner of Chick-fil-A understands the H-factor, they live the H-factor and it is part of their DNA. They are not company centric, they focus on their customers. They employ the right people.  They create a dynamic and inspiring environment to work in. 'It is more difficult to be a Chick-fil-A franchisee than to get into the CIA',  Cathy the owner likes to joke.

"If we have to keep telling people what to do, it means we're not modelling the behaviour ourselves," says Cathy. "If we're living it every day, we don't need to talk about it."

Raising the bar on Customer Service

1. Understand it. (If you haven't watched it yet, check out the video on the H-Factor.)

2. Use visual cues.

This is a smart way to 'tag your customers' in ways that it can remind you/your staff of how you could treat every customer.

For example, in a restaurant you could use a colour serviette to remind all staff that it is a regular customer (red serviette) or a newbie (white serviette).

All staff members will know to use phrases like: “nice to see you again” or if “since it is your first time here, let me introduce you to our chef.”

Obviously you need to have the systems in place to know this!

It is easy to implement:

• Talk to staff and ask about customer behaviours - regularly. Stew Leonard once said that you will never need a consultant ever again in your life all that you have to do is talk to your customers, have a conversation ask what they would like to have and then if possible fix it or implement it.
• Forecast what can go wrong at any given touchpoint and put strategies in place to ensure a golden moment of truth for your customers.
• Have service recovery systems in place:

E.g: “What if they bring the product back?”

E.g: “How do you handle complaints?”

Remember, dissatisfaction is contagious. (A Neuromarketing article.)

STAFFING

It is not going to get any better in the future if we do not address the problem and understand that we cannot deliver customer service experience without our staff. Management Guru Tom Peters recently presented in Jonannesburg and (find the entire presentation here)  gives us his take on staff problems. It is worth a look.  

PRICING

Check out this stunning slideshow which explains the rise and rise of Amazon to be the world's most trusted retail brand. It proves you cannot compete on price.

 PACKAGING 

How about Puma's biodegradable plastic bag for clever innovation?

RAISING THE BAR: PERSONAL

Here are a few songs that will bless you if you watch it.

And also this one...

Why did I show you this?

I wanted you to think about how BLESSED you already are. A wise person once said something like this:

If we all threw our problems in a pile and saw everyone else's, we'd grab ours back.

We live by grace. 

We should live graciously in return. And at the heart of a gracious life is GRATITUDE. If you liked the first video, you will like this one too. 

Our sincere Christmas wish to all all RTLL readers is to find this gracious life by accepting what they have and the peace that comes with knowing who you are.

So often 'personal development' is about goals and achievements, and God forbid, money; when the most important thing is what you already have: LIFE.

RAISING THE BAR: GANADOR

Here we are constantly raising the bar for ourselves and for our clients. Some of the changes and new services we can share with you are:

ONE

We are authorised to distubute one of the world's leading Learning Management Systems (LMS). If you are a trainer, coach, consultant, RTO or even a corporation that may be thinking about tapping into the benefits of eLearning (simply & affordably) then you may want to explore a series of very short videos that explains the back-end. 

TWO

We have launched a LIVE CHAT function on our website. (Just look at the left-hand navigation bar, top left.) If we are online and available for a chat, we will indicate accordingly and if you have a question about retail or marketing, we will try to help. Give it a try... (If we are offline, we will still get your message, so be sure to leave an email if you want us to respond.)

THREE

We are  working on some new products to be launched in 2012, including a 'Going Online for Dummies'. It is aimed at SMEs who have limited skills and technology. We will be stepping users through every step you need to go through - from buying the domain name to eventually trading online.

I am not creating a survey here, but I would love to hear ANY thoughts you may have on this topic. What to include. What to exclude. How much to charge. How long it should be. Why it will work/ fail...

Whatever opinions you have are bound to shape the final product, and we would appreciate it very much.

FOUR

We are contantly tweaking our learning and development content and style to create new products. In particular, we are increasingly adopting a Non-Training-Approach to learning. Less talk & chalk, more about side-by-side performance improvement strategies.

FIVE

Of course, we continuously improve what we do as well. Browse on the site and you will see that we:

Speak, Consult, Audit, Write, Develop - smart solutions for our clients. Raising the bar is also comprised of those small changes you make to the 'everyday' stuff. For instance, we have launched a RetailCoach version of our Retail Performance Assessments because we found that struggling retailers did not need advice, they needed a hand. And it is proving to be very successful - in case you were interested.

LIFE IS TOO SERIOUS

World's Greatest Salesman

Did you like this issue?

Just below, you will see a link that reads "Share Article". If you click on that, you can share the content via popular social media. (That can be your gift to us...)

Want to stay in touch?

On the left hand side of this page you can connect via Twitter, LindkeIn, Email or RSS.  Don't be like this guy. 

THAT'S IT FOLKS.

Who knows when the next newsletter will be published? But when it is published  it will be a cracker. Hope you got something out of this one.

Enjoy the holiday season. And remember, you know where to find us if you need a hand to get better results for your brand...

The following series of screencasts are narrations on the theme of the H-FACTOR - a presentation delivered at the 2011 Retail Expo and Conference (Melbourne).

The actual presentation was shorter, more succinct and more dynamic.

HERE IS A VIDEO OF THE PRESENTATION - no graphics, just a talking head on the stage... You can read the reviews HERE.

(It is a big file, and it may take some time to load. But if you are curious to see me in action, go right ahead... You may want to right-click on the link and open up the video in a new tab and let that load while you look at the rest of this newsletter.)

These screencasts (below) were recorded as a narration (not a speech) and are a bit slower and less excitable in order to give you the opportunity to think about the content (not be entertained.)

Not everyone will agree (I hope) but the intention is to stimulate thought, not reach consensus.

NOTE: These have have been recorded in HD - so may take a minute or two to load depending on your internet speed. The screencasts ARE NOT exactly the same as the presentation, so you may actually get someting out of

THE H-FACTOR 

Module 1

 Module 2

Module 3

Module 4

Module 5

Module 6

Module 7

A FEW LINKS TO SHARE

1. If you want to see a process map for creating a customer experience, you can find it here.
2. If you want to see the amazing Retail Renaissance publication by trendwatching.com, you can find it here.
3. And on a slightly tangential note, this site is very cool; it allows you to create your own graphs/charts on how MOBILE is conquering the world.

LIFE'S TOO SERIOUS

An Irish boy goes to confession. "Bless me Father, for I have sinned.

CONCLUSION

I would love to hear your thoughts on what customer experience is all avbout - and even what you are doing in your business to capitalise on this unique opportunity.

And of course, if you want to talk about this topic, professionally OR socially, you can find me via this website.

PS: If you are new to RTLL - feel free to scroll down the page and read some of the previous content for subscribers only.

3-D Retailing

I am going to make a bold prediction here:

Retail is going to change irrevocably.

Not bold enough? How about this:

Retail is changing irrevocably.

Still not bold enough?

Retail is changing right now in ways that will blow your mind; to the extent that half of retail businesses - as you know them - won't exist in 5 years.

I exaggerate. A little.

OK, a lot. But not as much as you think.

NOTE: There are many, important and quality dowloads available for you. For your convenience, you can get those at the end of the newsletter or interspersed in the content below. Links to articles etc are not duplicated, and you should read those as you go.

The statements above are not predictions as such, but I would like to put it to you to view these as CHALLENGES.

What would your business look like if 50% of current retail formats disappeared in the next 10 years?

Morgan Stanley says a combination of high rents and massive price differences will hurt electronics, department stores, clothing and book retailers, adding that it has downgraded price targets for David Jones, Harvey Norman, Billabong and Myer. 

If you think this is unlikely, then read this article in the New York Times (1982). It predicts changes that will be driven by the internet. I mention a few here:

• The home will double as a place of employment, with men and women conducting much of their work at the computer terminal.
  
• Home-based shopping will permit consumers to control manufacturing directly, ordering exactly what they need for ''production on demand.''
• There will be a shift away from conventional workplace and school socialization. Friends, peer groups and alliances will be determined electronically, creating classes of people based on interests and skills rather than age and social class.
• A new profession of information ''brokers'' and ''managers'' will emerge, serving as ''gatekeepers,'' monitoring politicians and corporations and selectively releasing information to interested parties.
• The ''extended family'' might be recreated if the elderly can support themselves through electronic homework, making them more desirable to have around.

It may have taken longer than they thought, but you must agree it is pretty spot on?

So the question we must ask is this what changes are imminent?

IMMINENT CHANGES

There are many societal trends which seem irreversible. For instance, a futurist is predicting the demise of many professions by 2020:

<> Shorthand secretary <> Switchboard operator <> Receptionist <> Bookbinder <> Printer <> Typist <> Supermarket cashier <> Photo processor <> Video store owner. (Read the full list of 48 dying professions.)

Your homework is to consider how these dying professions have parallels in the business world. (E.g. does 'No Typesetter' mean no Printed Books?)

I won't go into Gen Y, Z and whatever comes next. The ageing population. The global village. The list goes on.

The obvious, current retail/ economic trends that are likely to continue are:

1. More pervasive, faster internet access. (In Australia the National Broadband Network is being rolled out.)
2. The mobile phone is ubiquitous. (Over 100% penetration in Australia, and smart phones at over 50%. No source available.) 3G and 4G technology is the norm.
3. Growing eCommerce channels and options.
4. Costs are being driven down. (The establishment of EPC (Electronic Product Codes) will improve efficencies in the physical supply chain. This report published by the Global Commerce Initiative makes for very interesting reading.)
5. Consumption patterns are currently 'value orientated' and likely to remain that way. This report by McKinsey (winning in Value Driven World) is excellent and thought provoking.
6. Finally, technology has become an enabler for the social nature of people. Social Media (as we know it) is just one, current manifestation of that. 

Grant Arnott wrote on his blog recently:

Mobile and social are the big buzzwords in US retailing, but still relatively few are fully leveraging the channels. One thing is certain beyond a doubt – the customers depth of understanding in using mobile and social as tools of empowerment far outstrips the retailers’ general understanding of how to market these channels effectively.

Consulting firm PSFK released this trend report in 2010. It is over 80 slides, so you may want to come back to it. But check out slide 4 (key learnings) & 5 (key trends) for now.

[Click on the 'expand' arrows in the bottom right for a full-screen view.]

UNDERSTANDING RETAIL STRATEGY

(This is the 'LEARN' section of ReadThinkLearnLaugh)

It may seem pretty basic to some, and somewhat academic to others. Either way it is important that we understand the fundamentals of business strategy development.

The Ansoff Matrix simply captures the four basic approaches. I use the following image to teach this to MBAs - so this is important stuff; and don't be fooled by the fact that it is ancient. (Think of it as a 'Classic.')

As you can see from the diagram, there are essentially on FOUR options when it comes to selecting retail strategy.

As a retail entrepreneur, that is it!

Many people complicate the discussions and the decisions around strategy - when it is in practice quite simple. The truth is that most businesses try to reinvent the wheel when it comes to strategy, when the path is well signposted.

Pick your square and GO>>>

The category of retail strategy that I am advocating here is that of 'FORMAT DEVELOPMENT'.

If you want to survive & prosper as a retailer, you must completely re-think and re-design your retail format.

• It is not about adding new products.
• It is not about sexing up the look with a new fitout.
• It is not about improving service.

It is about changing your business model.

Here is a GREAT example of Format Development.

CREATING RETAIL STRATEGY

I am coining the term 3-D Retailing here. Allow me to explain.

• First Dimension

Fundamentally retail is/was transactional. A customer exchanges money for goods or services. Success requires that you stock the right product at the right time and place and price. It is pretty simple. Your competition is clearly identified on this same dimension. As a retailer, all that is required is that you push your message out to market and convince them of the benefits.

I term all the elements of this first dimension the 'RETAIL PROPOSITION'. I have written two blog posts about it - start here. If you are seriously interested in this topic, I recommend that you get the Jump the Curve eBook.

• Second Dimension

For a long time consultants and good operators have acknowledged that it is hard to sustain a competitve advantage at the transactional dimension. 'Customer Service' became the new battle ground.

With customer service I refer to things like all the add-ons (delivery, wrapping) through to pleasant human interactions (courtesy, responsiveness.)

Have you ever wondered if there was ONE SECRET to customer service? There is: Read this article on HBR.

• Third Dimension

This is the new battle ground. Of course, both the first and second dimensions of retailing remain valid. It is just that a good offer and good service are now considered cost of doing business. Consumers demand/expect a great value offer accompanied by great customer service. These are givens.

But if you want to operate/compete in an environment where online is a serious option, then you have to build out the third dimension of retailing: THE EXPERIENCE.

This is more than customer service. It is a new way of shopping. 

I wrote this document in Nov 1999, proposing an approach that shopping centre landlords should be approach eCommerce. The bulk of those arguments STILL hold true.

I say this not to brag about how insightlful I am, but to point out that many of these changes are obvious - and have been for some time. 

Retail Experience is more than Retail Theatre

Jon Bird wrote up a piece on Urban Outfitters. It is what he terms retail theatre. And whilst I agree with what Jon writes about that particular retailer, I do think that it qualifies only partially as an 'experience'.

This article, also by Jon Bird, describes an something more akin to the notion of retail experience I want to explore.

In my mind there is a difference between 'theatre' and 'experience' - and whilst I am being arbitrary here, it is an important distinction.

'Theatre' is entertainment ('shoppertainment') - and I am after more than that.

An experience INVOLVES the customer - it is interactive and engaging on an intimately personal level.

Watching 'Getaway' on TV is entertaining, going on the holiday is the experience.

Creating an experience is not about sexy visual merchandising.

Two commentators have written interesting articles that explains how retail may play our in the future.

Doug Stephens used the phrase the 'store as media' (not sure if he coined it) but it is a phrase that resonates with what we have been saying for some time. This article by Doug touches on many of the same points I make here.

Michael Fox runs an online business Shoes of Prey) and wrote this article in SMH depicting a future retail scenario.

If you haven't done so yet, watch the presentation by PSFK above and you will be impressed by the innovation that is already happening.

IMPLEMENTING RETAIL STRATEGY

In order to respond to these changes, you need to create your own 3D retail strategy.

• STEP 1

Watch this video. It is a short excerpt from Rocky (the movie). I don't add it just for fun, I add it because it exemplifies the primary requirement for coping with change: resilience in attitude.

• STEP 2

Think about the macro implications of these trends. (Before you think narrowly about your business, think broadly about society and the economy.) APPLY those thoughts to YOUR business:

If real-world retailing (bricks-and-mortar) were vastly reduced in types and numbers, what would the shopping experience look like?

• STEP 3

Make sure you have the first two dimensions nailed.

I have to assume that you have the basic proposition in place. (Supported by the right business model.)

A good 'offer' is a given. The same goes for good customer service. It is self-evident that many retailers still struggle with this. (We all do, actually.)

But in a hyper-connected, instant, always-on world, great service is now also cost-of-entry. How do you compare against these examples of best practice on Customer Service?

Example #1: Zappos PAYS people to quit. Watch this video on HBR to understand why.

Example #2: APPLE has learned something about retail in the last 10 years. Read this article on macrumors.com - that summarises their approach.

The Wall Street Journal has captured Apple's approach to Retail very well in the article. I will quote one little piece:

Apple lays its "steps of service" out in the acronym APPLE, according to a 2007 employee training manual reviewed by The Wall Street Journal that is still in use.

"Approach customers with a personalized warm welcome," "Probe politely to understand all the customer's needs," "Present a solution for the customer to take home today," "Listen for and resolve any issues or concerns," and "End with a fond farewell and an invitation to return."

• STEP 4

Re-format your new 3D retail experience. Design a unique, engaging in-store consumer experience. The million dollar question is how you do that - and it is beyond the scope of a humble newsletter to provide all the answers.

There are few people who can boast many, actual examples of 'having done it'. In our business, we do it almost 'surreptitiously' because we are rarely commissioned to explicitly help re-create a new experience - because it is not yet an evident requirement. (But the time is coming...)

Few clients are brave enough to break what appears to kinda be working...

Ganador does it by infusing our training, our analysis, our consulting - every client interaction - with a new lexicon. And we slowly introduce new ideas and new practices that equip them for the future.

We did this exercise for a small chain of hair salons, with mixed success because eventually they lacked the ticker to break the mold. The example that I will describe below is hypothetical.

NOTE: This is not an imperative for every single business, right now. Recently we advised a small fast food operator in a food court NOT to even entertain the idea of 'social media'. They simply did not have the resources or the skills to succeed at it.

Ganador has developed a methodology to pull apart a business and stick it back together again; only then will it become a new business. Our methodology is a systematic approach - that delivers innovative outcomes. It looks something like this.

 The trick is of course the quality fo the thinking that goes into completing those 42 blank boxes.

If you truly want to create a new retail experience, the primary requirement is letting go of all your beliefs in how things 'are' and how things 'have always been.'

EXAMPLE OF A RETAIL EXPERIENCE

Everyone has been to a family restaurant, so I thought that might be a good example.

The OLD way (two-dimensional)

• You arrive a few minutes early, but they have the table ready anyway.
• The waiter acknowledges you, greets you, introduces himself and takes you to your table where they hand you your menu
• The waiter comes around within a few minutes to take orders
• They even suggest a few specials and make a recommendation for the wine
• They place the order at the kitchen and return with water & crockery
• They bring the food out and serve it the proper way.
• Everyone gets the meal they ordered, and it is presented well and it tastes exactly how you expected.
• During the course of the meal there are a few 'table checks' and they top up the wine/ water.
• They bring the desert menu, take the order and serve the desert in good time.
• The waiter is alert and you catch their eye easily and you signal for the bill.
• Your credit card is approved and you leave a healthy tip.
• You are greeted when you depart.

The NEW way (three dimensional)

• You arrive at the restaurant and you are greeted by name by the host.
• He accompanies you to the foyer where other guests are mingling.
• The host enquires about your last business trip and compliments your companion on her earrings.
• As the host introduces you to a few other guests, the sommelier brings you a pre-dinner drink (based on knowledge of your preferences. But it is a new flavour, and they share a few titbits about the new process/grape/brand whilst serving you.
• One of the hosts is telling a story to a few people gathered around her, and you join the half-circle to watch the 'performance'.
• A few minutes later the door to kitchen opens and the host invites everyone in. There are long bench tables arranged around the kitchen island, which is manned by 8 chefs.
• The lighting changes and the head chef introduces the crew. Each of the four long tables will be serving different range of dishes based on your recorded preference. You had indicated 'seafood' and your companion take your seat at that table.
• Your seafood chef greets you by name (they had the seating plan indicated on their side of the table, and they have learned something about every customer.)
• He then proceeds to run through the menu planned for the night.
• As they start the preparations, they engage you in conversation, telling you what they are doing giving some tips as they go.
• The courses are placed in front of you by your chef throughout the night.
• When you are ready to leave, you simply get up and excuse yourself.
• The chef comes around and gives you a hug and your companion a kiss on both cheeks.
• They insist you take the half bottle of wine with you as you leave.
• At the door, the doorman opens the door to the waiting taxi.
• At the end of the month, your credit card is charged the usual monthly membership fee.

Whilst you may argue that you would not like the 'new' restaurant experience, that is not quite the point. This is just one example aimed at people who do this for the food experience. I am sure you can imagine a few other 'themes' or experiential outcomes that would suit your tastes better - and if there us a market for it, some restauranteer will cater for it.

The point of this exercise is to imagine how a 'traditional' concept might be transformed in an experience. You may think a restaurant is an easy option, but the same can be done for a travel agent, a hair dresser or a shoe shop - quite easily.

Dreaming up the experience is the easy part.

Translating it into a physical experience (staff, systems, procedures etc.) is the hard part.

And of course doing so at a profit is harder still.

Ben Lee is known (especially to Aussies). A short interview with him reveals the secret to success:

PERMISSION IS NOT REQUIRED> Hear him say it in the first minute.

IN SUMMARY

Retailers who want to be relevant in 5-10 years time must formulate a cohesive, timely response to the pressures of change. 

The answer is to create a true, 3-D retail experience.

We suggested a systematic, strategic and innovative approach - and outlined 4 steps to the process.

I will close with THE internet guru Nicholas Negroponte's view on the future of retail - published in 1998:

The shopping experience

What will finally save retail is the shopping experience itself. This will certainly include architecturally interesting settings with every salesperson a Cindy Crawford, a theater- or museum-like experience that makes you feel special. On the other hand, it might mean a bargain basement of sale items whose prices are hard to believe and even harder to find, a game of hunting and gathering, where buying is like catching a fish. Or it could just be a place people want to be, to see and be seen, to compensate for the virtual and OD on the real - to buy something, maybe, or maybe not.

Another kind of retail, however, is truly about to end - the type where you can't park, the checkout lines are interminable, the staff is disagreeable, and the product has always run out. Owners of such operations should be advised: The digerati don't need you any longer. And very soon everybody will be digital.

That time is NOW. Are you ready?

NEXT STEPS

ONE: Parallel to creating the 3D retail experience, it is imperative that you use/learn (new) social media channels.

• SocialMediaQuickStarter is a great place to start your journey on how you may embrace social media. (It was developed by Constant Contact - and it is structured as a series of chapters. It is simple and clear should be bookmarked.)
• This publication was issued by Facebook - Best Practice Guide on Facebook Marketing. You would think they know what they are talking about - it's well worth a scan.

TWO: Integrate online and offline in a seamless business. It is not so much about going multi-channel as it is about channel integration. This means aliging your marketing, your operations, your logistics,. your pricing etc.

This alignment will have practical implications on your operating business.

You will face many questions: Is it bar codes or QR codes? What about Wi Fi in store? What kind of people can deliver an experience? The list of challenges are endless.

And the biggest challenge is believing that the customers will still come...

Laugh

(That is always a good way to end.)

**Warning: This section is not alway PC. So, if you are easily offended - don't read on. GO HERE instead.

10 Great Status Updates to steal

1. For every problem, there is a neat, plain solution...and it is always wrong.
2. For every vision, there is an equal and opposite revision.
3. Free advice costs nothing until you act upon it.
4. Free time which unexpectedly becomes available will be wasted.
5. Freud's 23rd law: ideas endure and prosper in inverse proportion to their soundness and validity.
6. Frustration is not having anyone to blame but yourself.
7. For every action, there is a corresponding over-reaction.
8. For every action, there is an equal and opposite criticism.
9. For every action, there is an equal and opposite government program.
10. For every credibility gap there is a gullibility fill.
11. For every idiot proof system devised, a new, improved idiot will arise to overcome it.

SupaDupa BONUS TIME

• The 15 best ads on TV (Cannes 2011)

Here is one of my favourites. (Click the link for the rest.)

LET'S TALK...

You can comment on this newsletter below - that is why we have the new format. I am particularly interested to know what you consider your greatest challenge to be.

If you would like to talk seriously about your business (strategy) and how to future-proof your business... contact us via email or call me anytime (0411 030 436).

Of course, Customer Experience Design is not all that we do. You can also talk to us about:

• Custom Training Solutions
• Accredited Training (funded by Government incentives)
• Business Coaching
• eLearning
  
• Mystery Shopping
• Retail Performance Audits

Dennis & Moonyeen

PS: Just to make it easy, here are all the downloads in one easy place.

• This report published by the Global Commerce Initiative
  
• SocialMediaQuickStarter
• This publication by Facebook - Best Practice Guide on Facebook Marketing.
• The Jump the Curve eBook. (Not free.)
  
• This report by McKinsey (winning in Value Driven World).
• eCommerce Strategy for shopping centre owners: Net Success
  

PPS: If you scroll down, you can read the previous issue of RTLL - just in case you missed it.

PPPS: If someone sent you a link to this newsletter, drop your email in the box (Ganador Newsletter) just to the right of this page and get direct notice next time. We don't publish often, but when we do it is worth reading.

We never spam, rent or sell our list.

Introduction

The one trait that separates human beings from the rest of the animal kingdom is our striving for success and achievement. People seem to always want something else. Bigger. Better. Different. Whatever it is that we don’t have.

Whether this is a noble or ignoble trait does not matter, it is an ever-present driving force in our lives.

It is surprising then that we know so little about success and happiness – and how to achieve it. Surprising, because there is probably no topic that has had more trees felled in pursuit of an answer.

The answer to this vexing question is simple and complicated. Simple on a philosophical level and complicated in a pragmatic level: easy to understand hard to execute.

The answer lies in the way you see things.

(What are the odds that the answer will be found in an irregular newsletter by some middle-aged bloke living in regional Australia?)

The litmus test is whether this ‘answer’ actually applies on all levels of our lives, and in this essay I want to consider three different applications – as per the diagram.

Read on and tell me whether you agree with my answer…

Success (& Happiness)

The way we see things is often described as ‘perspective’. We encourage people to see things in perspective, or tell them they have a wrong perspective or have lost perspective.

If you are on the receiving end, we never heed that advice because, intuitively and rightly so, we dismiss that advice based on the infallible logic that their perspective is no better or righter than my perspective!

Perspective is commonly defined as “the appearance of things relative to one another as determined by their distance from the viewer”.

Note: it is the ‘appearance’ of the thing, not the thing itself.

A more specific definition is “the choice of a or a reference (or the result of this choice) from which to sense, categorize, measure or codify experience, cohesively forming a coherent belief, typically for comparing with another.”

In short, your perspective is how you make sense of the world

I am going to get pretty deep here, but bear with me. (Eventually I will draw the bow back to retail/marketing/entrepreneurship.)

Buddhists believe that the origin of suffering is attachment.

Specifically: The origin of suffering is attachment to transient things and the ignorance thereof. Transient things do not only include the physical objects that surround us, but also ideas, and -in a greater sense- all objects of our perception.

The solution is dispassion (or Nirodha - the unmaking of sensual craving and conceptual attachment) but in simple terms, unhappiness can be turned into happiness with a simple change in perspective.

Many wise people agree.

•    Most folks are about as happy as they make up their minds to be.  ~Abraham Lincoln

•    A great obstacle to happiness is to expect too much happiness.  ~Bernard de Fontenelle

•    We are no longer happy so soon as we wish to be happier.  ~Walter Savage Landor

•    A man's as miserable as he thinks he is.  ~Seneca

•    If you are not happy here and now, you never will be.  ~Taisen Deshimaru

•    Happiness is a function of accepting what is.  ~Werner Erhard

Read these quotes slowly again and you will see that there is a shared philosophy: happiness is a matter of perspective.

For a profoundly moving understanding of what it means to really change your perspective, watch this video.

We have all been brought up (most of us at least) with the very European notion that it is good strive. (Taken to the limit by our American cousins.) We have to dream. In fact if you don’t strive for something big, you are failure. Believe and achieve.

Watching American Idol, we all laughed at the ridiculousness of some people’s dreams and beliefs. We delighted in these ‘idiots’ being ripped into by the judges for their pathetic attempts to chase their dreams. (Ironically also marvelling at the success of the ‘winner’ that emerged, further strengthening that defective cultural norm.)

But those (unrealistic) beliefs were the natural (if unintended) consequences of that worldview.

For a long time I was anti-planning and anti-objective setting because I know (see) the unhappiness it causes when you are perpetually planning (dreaming) to be somewhere else.

In fact, the first business we registered in Australia was called Live the Moment – because Moonyeen and I have both always believed that the ability to (live the moment) it is the cornerstone of happiness.

It is not of course. It is important, but it is not the key.

The key to happiness is acceptance of what is.

If you find yourself unhappy with what is - change your perspective.

Hey, that is easily said. If your house has just been flooded or you have lost a family member (or even just your dog) then it is not easy to just change your perspective. And that is not what I am advocating.

Experiencing sadness is actually necessary.

What I am talking about is the need to change your overall orientation: to have a different propensity.

• Your first reaction should be to accept, not to judge.
• Your first response to an emergency should be ‘what can I do’ not ‘why me’.
• Your attitude to a new experience should be ‘what can I learn’, not ‘what can go wrong’.

I think you get the picture.

I see many VCRs/DVRs still flashing 00:00:00. This is the ‘default’ setting for digital clocks. When you fill in a form/survey, there is usually a structural bias built-in because the way the questions are phrased. (Remember how John Howard phrased the question about the Australian Republic – and got the result he wanted?)

We all have a default perspective.
It usually just happens.
But that means you can also change it.
If you want to.

Action Steps

• You know what to do.
• Do it.

BONUS ACTION STEP:

• If you have a Kindle or if not, just download the free app on your smartphone.
• Go to Amazon. Go to the KINDLE eBook section. Search for "Do the Work" by Steven Pressfield.
• Download the free EBook. Read it - and follow the advice.

Selling (& Persuasion)

Perspective is important when it comes to persuasion and influence (which is what selling is all about.)
You have to put your thinking cap on and consider the questions (originally posed by researchers Tversky and Kahneman) carefully.

If you were given the following two options, what would you choose?
1.    A sure gain of $240
2.    A 25% chance to gain $1000 and 75% chance of getting nothing.

84% of people chose the more certain Option 1. (The vast majority chooses the certainty.)

They then offered them one the following choices:
1.    A sure loss of 750
2.    A 75% chance of losing $1000 and a 25% chance to lose nothing.

Now 73% preferred to gamble by selecting Option 2. (The vast minority now chooses UNcertainty.)

In both scenarios the options on offer are (statistically or rationally) exactly the same. You would expect people to favour the two options equally (a normal distribution based on another variable) OR to consistently favour the ‘safe’ or the ‘risky’ option.

But people change their decision based on the perspective they are exposed to (framing).

I see a holiday as an opportunity for a quiet read. My son sees it as an opportunity for adventure. We both look at the same scenario with a different frame.

Fairhurst and Sarr (1996) described a few framing techniques, which are all effective in some way in persuading another person.
•    Metaphor: To give an idea or program a new meaning by comparing it to something else.        
•    Stories (myths and legends): To frame a subject by anecdote in a vivid and memorable way.
•    Traditions (rites, rituals and ceremonies): To pattern and define an organization at regular time increments to confirm and reproduce organizational values.
•    Slogans, jargon and catchphrases: To frame a subject in a memorable and familiar fashion.
•    Contrast: To describe a subject in terms of what it is not.
•    Spin: to talk about a concept so as to give it a positive or negative connotation.

Our Sell$mart program uses what we loosely term ‘metaphorical’ selling. We firstly identify the 6 key decision heuristics (let’s just call those decision-making shortcuts) that people use. (There are more, but these are the most useful in a retail sales environment.)

Once people understand these ‘shortcuts’ (or buttons to push) we teach them how to generate metaphors, analogies (even clichés) to express those statements in the most persuasive way.

Example:
 

Scenario 1:
Which statement is the best way to frame your offer to the customer?
1.    Do you prefer the red dress or the blue dress more?
2.    Do you like the red dress?

Scenario 2:
Let’s try one where a customer objects about the price:
1.    It’s not really expensive for the quality that you are buying
2.    It is a bit more expensive, but you get what you pay for.

In scenario 1 you would choose option 1. In scenario 2 you would choose 2. Some people tend to get this instinctively right and others struggle. You may even be one of those who get it right, but unless you know why you prefer the one option over another, you cannot replicate your approach (or train someone).

The good news is that these framing techniques can be learned.

Let me share a personal history with you. In my corporate career in Australia I managed to achieve a reasonable position (National Marketing Manager). But I fared better (Executive Director) in my original culture than I have in Australia. One reason for that is that I did not always frame the brand ‘Dennis’ in the most effective way.

Consider the following options for framing your disagreement with someone:
1.    I disagree. What about X or Y?
2.    That is an interesting approach. I just wonder what happen if X or Y happened?

Which would you choose?

I invariably chose option 1, whereas a more effective way of making the same point (I eventually learned) would have been option 2.

Success then, in selling and persuasion, depends on understanding perspective. Your own and the customer’s.

And then having the skill to articulate the perspective that suits your goals. That is, you must know how to frame your advice and your suggestions in a way that is more likely to get compliance.

The key is to understand the way the customer sees things – their perspective – and to frame your message in such a way that it appeals to the customer (pushes their buttons).

They expect you to ‘sell’ to them. (“The dress looks good on you.”) But if you resist the temptation and instead help them ‘buy’, you will be more successful.

Action Steps
1.    You can enrol for the Sell$mart eLearning course HERE. If you apply the discount code 'rtll' (RTLL in lowercase), you will get 50% off!
2.    You can contact me for a live Sell$mart workshop for your organisation.
3.    Or do nothing.

Strategy (& Positioning)

People who create or run successful companies have invariably managed to position their company or their product successfully; relative to the competition.

Let me illustrate with some pretty pictures and a simple example with a product we all own.

After the Sony Discman, MP3 players were invented. The received wisdom in the market was that what people wanted was the smallest possible player with the largest capacity.

After the Discman, that is pretty logical right? As small as possible but with greatest capacity for songs.

This created a perceptual positioning map that looked like this. Imagine that all the manufacturers are the red dots.

Apple came along and re-defined the market.

They had a different perspective. They did not chase the attributes that every other manufacturer accepted as the conventional market wisdom.

By doing so, they instantly relegated all competitors to ‘also ran’ status.

They did not create the MP3 market. In fact, they were pretty late to it. But when they did come to the market, the brought a completely different product to the market. The capacity was nothing more than par.

The size of the unit was nothing more than par – a bit bigger in fact than some of the others in the market.

But the saw the market differently.
And they happened to be right.

They re-imagined the perceptual positioning maps with different axes. (It is easy to forget how different the iPod was when it was launched because all theother manufacturers have since copied much of the design.)
 
One can even argue that Apple is not the best designed MP3 unit on the market any more. But the market perceives it as such. And besides, you are now locked into iTunes – which has been the main game all along.

Action Steps
1.    You can buy Jump the Curve (the eBook) here. It is everything I know that is important in starting and running a business.
2.    You can contact me to discuss the live Jump the Curve workshop (customised for your organisation) here.
3.    Or do nothing.

Conclusion

I have shared with you that SUCCESS and HAPPINESS (on a personal or product or business level) really boils down to how you SEE things: your perspective.

Life is what it is. There is no point to obsessing about the environment, competition or luck. Just look at the situation differently and you will see opportunity.

A few random, interesting things

1. Have you checked out this new search engine yet?

2. Are you (or do you know someone):

• interested in starting an internet-based business?
• keen to become an infopreneur?
• a consultant/coach/trainer ready to go online?

  Check out this offer.

 3. Here is a productivity tip.

If you regularly receive emails from the same source, and you need to continue to do so, but don't necessarily have to read them (all the time) - then do this in Outlook:

• Create a special folder for the purpose you intend (I channel internetbanking receipts into a dedicated folder.)
• Right-click on the email
• Click on 'Create Rule'
• Select the appropriate tick-box and folder name

Done: In future all emails from that source will go into that folder without cluttering up your inbox.

4. Must read on the web

• Pop-Tech - a long post with 5 videos covering your 5 senses.
• McSweeneys on the topic of when branding goes nuts.
• The previous issue of RTLL, on th topic of when social media goes nuts by your truly.

Staying connected

Just on the left of the screen you will see little icons for twitter/linkedin etc. Click on those if you have an account yourself - and you would like to connect.

I know there are many people who don't know how to subscribe to blogs.

1. Get yourself a Gmail account (if you don't have one)
2. Watch this video below
3. Go to the homepage and click on the link (top right corner) "RetailsmartRSS" - or whereever you see the little orange square in future.

If you landed on this page by referral and would like to register yourself for future updates - just complete below.

 [Your email address is never shared, and you are never spammed.]

Thank you for reading.

One of the reasons for the change in the newsletter format is that you can now comment on the topics we have discussed. Feel free to do so. We would love it <}

You can also now easily share the link/page by clicking on your preference below. We would like that too. (Just click on the comment link below - then it isn't a one way conversation :-)

God bless...

DENNIS & MOONYEEN