"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"

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.

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?

Mike's Thoughts about CEO's of Growth Companies

During my career I've had the pleasure of associating with a number of CEO's who have demonstrated track records of growing their companies over time surpassing industry averages, i.e. gaining profitable market share. Of course, it's not a revelation that they share common traits. They see "learning as a competitive advantage" and one of the common learning methods is through the utilization of advisers, consultants and coaches. Coaches in particular ask relevant questions and impart knowledge and, in the process, provide accountability and discipline.

These CEO's are always on the prowl for knowledge and willing to pay others to provide it. They are smart people getting smarter through a commitment to self and employee improvement. When presented with a new idea, they immediately look for the good versus finding fault. Their egos tend to be socialized as opposed to self centered; all innovations don't have to be their own. They are inherently curious and encourage others to speak out; they are quick to compliment.

The CEO of Starbucks was once asked to what did he attribute the companies success? His answer was essentially - "I hire people smarter than me and let them do their jobs"

Bill gates turned the Microsoft reins over to Bruce Balmer and also spends two full weeks per year behind closed doors reading, thinking and learning.

Tiger wood's use of coaches is celebrated. He has won for more often when working with Butch Harmon and Hank Haney than when going it alone.

Michael Dell employs a number of coaches. "Start with smart people and keep them smart" is a quote.

And from Verne Harnish, founder of Gazelles International and author of "Mastering the Rockefeller Habits - What you must do to increase the value of your growing firm"

LEARNING + COACHING = GROWTH

Salesperson Hiring Mistake Thoughts

In recent weeks, I've discussed salesperson recruiting with CEO's and senior sales executives of four successful, well managed, profitable companies ranging in size from $4million to $1billion. When the conversation turned to salesperson recruiting, they all expressed frustration and lack of confidence. In two of the larger companies, the success rate was estimated at 50%, with the executives knowing that the mistakes were costing $millions per year in cash, time and lost opportunity.

Why is it so difficult to hire and retain sales winners . . . what's the root cause?

The answer may be reflected in the answers to questions listed below I've asked hundreds of smaller to mid-sized company executives who have attended my "How to Avoid Costly Hiring Mistakes" seminar.

• How many believe impatience is the number one root cause of hiring mistakes? Over 95% have agreed
• How many of you enjoy recruiting sales people? Fewer than 5% claimed to enjoy the process.
• How many think you're good at it? Fewer than 5% believe they're any good.
• How many religiously follow a well tested, disciplined sales recruitment process including testing? Same kind of response as above.

Given a widespread distaste for recruiting salespeople, the lack of confidence in the ability to succeed and absence of a process, is it any wonder that so many mistakes are made?

So what's the solution?

In my opinion, the solution at least is grounded in a disciplined process, which includes testing, followed every time . . . no exception. A process will significantly reduce the risk of impatience taking over, which often causes the decision to be based purely upon liking the person and, in reality, nothing else.

For those interested in digging deeper toward finding a problem solution, I suggest following the link below to a white paper on the topic by Dave Kurlan.

http://www.objectivemanagement.com/articles/spselection.pdf

What's Right Thoughts

In response to my "People Thoughts" posting, Rick Roberge asked, "what if we don't know what's right?"



The answer is: As a business owner, you'll very likely know what's right regarding people and their jobs when you're sure of the following:

• A long term goal;


• There is a clear CORE PURPOSE to the business;


• The business is based upon a handful of CORE VALUES;


• Your business is playing in the appropriate SAND BOX (product/market segment);


• You have a clear understanding of what it takes to be the BEST PLAYER in the sand box;


• You know how to make above average PROFITS IN YOUR chosen sand box.

If you're unsure of any or all of the points noted above, the odds of getting the people stuff right aren't in your favor. In fact, at some point you'll be relying on luck.

Good luck figuring out all of the above . . . just kidding.

People Thoughts

If you run a business, even a one person band, I believe there are four key decisions (from Mastering the Rockefeller Habits by Verne Harnish) that will make or break the business.

1. People
2. Strategy
3. Execution
4. Cash

The order of these is always griss for the debate mill, e.g. no cash, no business. However, people sits at the top of this list for a reason. It's hard to imagine a company recognized as an industry leader over time being led by and staffed with mediocre performers. The success formula is as follows:

Competent leader + A players = Well above average performance

If you're curious about the quality of people in your company, or yourself in the role you're in, ask yourself the following RIGHT questions:

• Do you have the right people?
• Are the people in the right seats?
• Are they doing the right things?
• Are they doing the right things right?

If you're unable to answer confidently in the affirmative, there's important work to be done.