Sunday, August 31, 2008

"Customer WOW Factor" the rest of the story

My last blog described how my Dad's supermarket focused on getting customers out of the store when they we're ready to go, and did so in a way that exceeded their expectations thereby contributing to the creation of a WOW factor.


This didn't casually happen . . . it was ingrained in the culture of the business:
  • All employees understood that hearing the word "FRONT" over the store loudspeaker meant that most stopped what they were doing and quickly went to the "FRONT" and assumed predetermined roles. The store office was on an elevated level and the manager could see the entire store operation. It was quite a sight to see as he would switch on the store loudspeaker and say "FRONT" please, people moving to the "FRONT" to assist customers . . . like a call to arms.

  • People were hired based primarily upon their customer service profile fit . . . it wasn't about stocking shelves and running a cash register;

  • The "FRONT" was kept clean and neat at all times, as was the rest of the store. The red carpet was cleaned frequently (at night only) and replaced every six months at considerable cost.

  • And so it went leading to more profit per square foot than any other store in the chain most years.
The important lesson to be learned here is that my Dad and his management team clearly understood what made money, had figured out what they could do better than any other competitor and developed a passion for doing it 24/7. They were very careful to ensure that all employees drank this cool aide. This focus remained at the core of the store's operation from day one to the day my Dad passed on. By the way, Dad never graduated from High School; to him, it was basic common sense.

Stay tuned as in the future I'll relate how this 1960's - 1970's business success story employed most of the modern day business concepts described by three successful authors and business gurus:

  • Dave Kurlan, author of "Baseline Selling"
  • Verne Harnish, author of "Mastering the Rockefeller Habits"
  • Jim Collins, author of "Good to Great"

Monday, August 25, 2008

Growth Strategy: Customer Service WOW Factor

I was talking with a client recently regarding customer service and how to exceed customer expectations, and was reminded of a lesson I learned from my father many years ago.

My Dad owned a TOPS supermarket franchise in Western New York; his was one of approximately 50 stores. There were many years when his store was #1 in the chain when it came to profit per square foot.

How did he do it?

Primarily, I believe the answer lies in the way he viewed repeat shoppers . . . people who did their weekly shopping at his store, which generated the bulk of volume. When he saw a person at the check out counter, he didn't see someone buying $100 worth of products. He actually saw a $50,000 customer in the form of a person who had the potential of spending $100 per week for 10 years. Whether they became that 10 year loyalist depended upon how they were treated week in and week out.

He went on to observe that a shopper would casually wonder through the store filling their basket, checking items off of their list as they progressed. They were in no hurry and would often stop to talk with friends and neighbors along the way. However, when they were finished and headed for the checkout counter, they wanted out as fast as possible; no more leisure and casual conversation . . . "IT'S TIME TO GO."

He clearly understood the "IT'S TIME TO GO" mood and played to it big time. All employees understood the importance of doing everything possible to help the shopper exit the store as quickly as possible including helping them load their cars. Stocking shelves and store cleaning were done at night so that ALL employees were available during prime shopping hours to converge on the FRONT of the store and assist customers who had made the decision, "IT'S TIME TO GO"

This focus created a customer WOW factor that was the primary contributor to My Dad's store being the most profitable in the chain year after year.

Sunday, August 17, 2008

The CEO Getting People Right

Do you have the right PEOPLE in the right seats doing the right things . . . RIGHT?

Would you enthusiastically rehire all of your key players?

There are four critical CEO decisions that determine the fate of a business over time:
1. People
2. Strategy
3. Execution
4. Cash
Get 'em right and your a winner; get 'em wrong and your a loser.

The order of these is always gris for the debate mill, but I doubt that company's dubbed as successful over time are staffed with C and D players. To the contrary, they're typically loaded with A players with a few B's that have A level potential. And the A player scenario always starts with the CEO.

So, if your company is under performing, take a hard look in the mirror and ask yourself; would I enthusiastically rehire all of my key people?