Changing the Conversation to Community

The last two years of retail marketing have been a death spiral of sales tactics. Through the recession, retailers continued to dig deep holes in their pricing in an effort to attract the little cash left in their customers’ very shallow pockets. Thankfully, these unsustainable practices are ending for modern minded retailers. Even retailers like JC Penney are attempting to abandon —although somewhat unsuccessfully —  the constant cycle of extreme discounts that large retailers have become known for. With a massive marketing effort, they’ve overhauled of their pricing structure twice during the past year.

Creative national retailers like J Crew are shifting emphasis to product story lines and social connections with design-minded shoppers and away from a cost-conscious conversation. Anthropologie is upping the game on their store atmosphere, including regular blogger-focused events for shoppers loyal to specific store locations and partnerships with like-minded small businesses. The location in The Grove in Los Angeles recently hosted an Artist-in-Resident project with artist Rebecca Rebouche. She painted and created in a pop up art studio in their front window for two weeks this summer. Rebecca discussed her experience on her blog and Anthropologie found excellent content for their social media accounts during the event.

Artist Rebecca Rebouche

This spring, Target launched their Shops concept, a set of shops within the Target store showcasing curated collections from six independent boutiques across the country. Although not as successful as their Missoni installation last year, The Shops created buzz
without desperately waving a red tag. It also attempted to connect with local-business-loving shoppers who are prevalent now more
than ever — a good move for Target.

I am hopeful that these campaigns, among many others, are an indication that the tide is turning permanently and the shopping
experience will return to what I’ve always enjoyed it as… an experience. Future value will be in developing quality communities that will continue to attract customers for the experience that they own in a space, rather than the extreme couponing that was accomplished. Creating an atmosphere where customers foster a relationship each time they visit will be vital. Residential space paired with commercial spaces will continue to see increased importance as customers make decisions about consumption by weighing heavily on their relationships with specific retail districts, communities and businesses.

Popularise

The success of the Complete Street and Better Block concepts, both nationally and in Oklahoma City, reassures me that the public is ready to use their time and money in a modern retail environment. I’m even more encouraged when I view The Plaza District’s recent Popularise profiles for two vacant properties in their district. Popularise (popularise.com), a website that inserts public input into the development process, allows anyone (with a free Popularise account) to contribute new ideas, comment or encourage posted ideas with the click of a Build-It button. Oklahoma City is one of only three cities in the United States currently using this innovative platform. More than 40 business concepts were submitted for these two buildings in less than a week.

Whether designing new or reevaluating an existing space, think deeply about the experience the customer will have with your environment. How are you consciously creating an emotional connection with your customers?

These relationships will breed powerful customer loyalty and a competitive advantage.

This is a one-hour meeting to focus on one small topic that affects small retail (like PR, branding, social media) and bond over the shared experience of being a local retailer.

During our first OK Retail breakfast last summer, Mary Ann Osko, owner of Osko Communications walked us through public relations basics. This time around, we will be joined by a consulting team that I have personal experience with, Braid Creative.

March 27th, 8:30am
The Wedge Pizza 
4709 N. Western Ave 
Oklahoma City, OK 73118

The talented ladies from Braid Creative will be our guest speakers.
Kathleen Shannon and Tara Street of Braid Creative are brand consultants who help
small businesses uncover their authentic brand.

They’ll be taking you through some of the hands-on exercises they use to help small business owners:

• Stay sharp: concisely convey what you do, always keeping your dream customer in mind.
• Stay real: strike a balance between personal and professional branding, especially in social media.
• Stay in the drivers seat: beyond “marketing & advertising,” how a brand can position you as an expert – for more new-business confidence, and healthier customer relationships from the get-go.

Tickets are $15. Breakfast will be provided. Prepare to enjoy a sampling of their breakfast creations…

delicious wraps, quiche, cinnamon rolls, coffee & OJ!

To RSVP, visit http://shopcrawlr.eventbrite.com/

If you have any questions, please contact Allison Bailey (405)620-3883 or allison@bartabailey.com.

Are you writing a visual story? What mood does your seasonal product evoke? How does that compliment your shop’s philosophy?

For Holiday 2011, Black Optical installed modern trees illustrating vintage Christmas ads from the 1950′s. Not only did these windows coincide with current eyewear trends, they also evoked a glamourous feeling, reminiscent of holidays in previous eras.

Not every window needs to be a statement window. But, make it worth your time and creativity. Ask yourself, “Is this window instagram-worthy?” Based on my observation, Black Optical’s Holiday window definitely was.

I found this article to be an interesting read. Mainly because I don’t think it applies to homeowners as much as it does to retailers. Reflect on whether putting your personality on every store fixture, tag, sign, or display is causing kneejerk reactions from customers. Considerations…

• Are you wanting to grow your market, but find that you can’t expand past a very niche group of customers? What will make your shop more approachable to new tastes and interests? Example: You try to market menswear, but can’t gain male customers? Can you utilize your most feminine pieces away from the entrance and mens section? What screams, I’m a women’s shop when you walk in?
• Do you have the same wall decor and displays that you did when you opened 2…4…5 years ago? Let’s talk.
• Survey a few customers, what is their favorite item in your shop? If it isn’t a product, consider where you are putting your value when you decorate. Are your fixtures and motif overwhelming your products?
• When you select products to sell in your shop, consider how that individual product will live in someone’s home/wardrobe. Would they need to mimic your shop in order for it too feel appropriate? Is that select group of customers that shares your exact style a large enough market to be successful with that product?

Security, cleanliness and lighting are my three top priorities, in that order.

• Can the target market for the program afford your products/services on a regular basis without the extreme discount that the program provides?
  • If they can’t, are you expanding to include them? (Adding a lower price point product?) Consider how these customers will become regular returning customers if they can’t afford your products…
• How does your business compare to recent program participants? Do you sell a similar quality or price range of products? Your customer will possibly view your business in the same category as other businesses that have participated. Would you be happy with that association?
• How much will the program really cost you? For example: Your coupons sell for $20 and are worth $40 in merchandise. If the program takes 50% off the gift card purchase price ($10)… you are selling merchandise at 75% off. Does this cover your shipping expense? Overhead and employee cost?
  • Calculate the actual cost of the program. *This example doesn’t include tax and assumes that all coupons purchased are redeemed.

You sell $10 products that have an actual cost of $6.50 (wholesale +shipping + overhead, all included). Based on a typical coupon program, you would sell these products for 75% off retail… $2.50, leaving you with a $4.00 loss on each product.

• It defeats the purpose to put too many limits on what products can’t be purchased with the coupons (some programs won’t let you anyway). Expect that coupon holders will purchase the most expensive, lowest margin items and calculate your risk accordingly.
• How many coupons will you sell? On most programs, you can provide an upper limit on the number of coupons sold. I would advise doing this for several reasons.
  • It creates a sense of urgency.
  • It helps you predict your cost a little more accurately.
  • Potential customers are still exposed to your business through the coupon program’s email marketing, even if they miss out on purchasing the coupon.
• How many coupons will be redeemed? Assume all of them will, even if the program has a statistic that says otherwise.

In my opinion, coupon programs align well with reasonably-priced restaurants that are still growing, new businesses (that have sufficient staff to handle the demand), and service businesses that can book a the next full-price appointment while customers are in the process of using their discounted service (spas, cleaning services, regular car maintenance shops, etc…).

Keep in mind, the only way this coupon will create a return customer is if the customer LOVES your service/product, above and beyond the fact that it’s discounted. Only participate if you absolutely know that you can only provide the best customer service and products for these customers.

Before jumping into a national group-buying or coupon program, consider your local alternatives. Here in Oklahoma City, Eat Around OKC offers a competitive program to Groupon (disclosure: I read Eat Around OKC on a very regular basis & I know the owner). I would expect to see higher quality customer service and higher quality participants from Eat Around OKC’s program, as compared to a national program. Why? Local programs know their area and are less likely to allow fly-by-night businesses to participate, after all, they have a reputation to uphold. Also, considering Eat Around OKC’s history, their participants are more likely to appreciate the food service that your restaurant offers.

I find that many businesses turn to Groupon because they need a fresh idea.

• Buy a supply of reusable bags to give customers when they purchase products or buy take-out food.
• Mail shop gift cards to loyal customers with a personal thank you note.
• Send a signature product to local business owners in your area to grow the relationships in your community.

As in, not-a-single sale-for-several-days bad… ouch!

When you know bad weather or a slow week is on its way, start planning to make the most of your inopportune downtime.

• Compile a list of Thank You cards that you need to write. Why not pick a few special customers and send them a personalized note with small gift card that they can use to kick-start their spring shopping?
• Plan, create and schedule your upcoming emails.
• You just ordered your holiday merchandise at market last month, why not start planning your holiday decorations and window displays? Nine months will allow for creativity and cost-efficiency on these projects.
• Clean. We aren’t talking about sweeping and using Windex on your glass doors. Dust your baseboards, your vent covers, behind the toilet, organize your counter and register (yes, that pile of old packing slips is what I’m talking about), steam-clean your rugs…
• Make a conscious decision on which outside marketing materials you will allow at your register or posted in your windows and ditch the rest. Cluttering your space with other organizations’ materials can distract from showcasing your products.  Be selective.
• Most importantly, use this time to gather momentum for the next season. It can be hard to stay positive when you are seeing extremely low sale numbers. Just remember, a smart, calculated spring campaign can make up for even the slowest February.

What about your store/brand? Who is your spokesmodel?

Yes, I know, Taylor Swift probably won’t be interested in posing for your commercials or advertisements, but your local indie band might. What about a blogger that visits your store? Or a realtor that could add a few of your store’s accessories to a staged home?

Don’t lose track of the goal: to remind customers about your products and present them in the best light possible. Generic product placement won’t work. You must create a clear correlation between your products and a mood or an emotion that will evoke a purchase.

Ask yourself these questions:

• When a customer visits my store and makes a purchase, what style are they wanting their current individual style to gravitate toward? Edgy? Shabby Chic? Is the corporate girl buying a tee to remind her of her more adventurous days? Pick your model accordingly. You shopper wants to see the epitome of your products in another person’s lifestyle.
• If you can’t justify an endorsement on your own, could you partner up with other businesses to justify it?
• Is the partnership beneficial?
• How much exposure will you get out of it?
• How will shoppers know that your spokesmodel is wearing/utilizing your products?

My best advice is to get out in the community and look for a natural relationship to develop. Keep your eyes open and get to know your current customers.

I wouldn’t be writing about this interaction unless the outcome was drastically different than my interaction with VW. Thanks to Cox Communications for providing an example of good social media customer service.

I tweet:

Does anyone know how to change how Cox DVR cuts off the last 30 seconds of my shows? With Tivo, I could always adjust before/after time…

CoxNicky replies:

@allisonAllioppe Hi Allison – I noticed your tweet. Were you able to figure it out? If not, let me know and I can help. I work for Cox OK.

Isn’t it nice that she identified herself as a real person?

I reply:

@CoxNicky Thanks Nicky! I would love some help adjusting the recording time

She immediately started following me so that I could direct message her and she replied:

@allisonAllioppe You bet! Can you DM me your e-mail address? I was going to e-mail you the directions. Thanks, Allison!

We continue the conversation through DM and email and she forwards me step-by-step instructions on how to edit the end time of a recording.

Satisfied with the interaction and problem solved, I will probably send any other questions directly to Nicky through Twitter. In my eyes, this was a well-executed corporate social media interaction. Do you see any way that Cox could improve?

I wasn’t.

Here’s how the situation went down:

Oklahoma City was participating in Fashion’s Night Out (#FNO) on Friday, September 10th. Determined to visit every participating store that night, I headed out in my VW Jetta. After stopping at approximately 12 stores, I parked at the French Cowgirl.

When I finished grabbing a few photos, I attempted to start my car and…nothing. The Jetta wouldn’t even make a noise.

I lamented about my failed mission on Twitter, dropped my vehicle off at a repair shop for a new alternator, and headed to dinner. Then, Volkswagen replied to me on Twitter. Apparently, they were obsessively searching for “jetta” on Twitter.

Their first tweet:

@allisonallioppe Sorry to hear it. What was your mission?

Well, that’s not a bad tweet. Nothing super innovative, but not bad.

I replied:

@volkswagen I wanted to visit all the OKC Fashion night out retailers… Looks like I need a new alternator though

Their reply:

@allisonallioppe Hope you were still able to enjoy your #FNO!

Hmm? My thoughts:

If you are going to perform customer service tasks by searching on Twitter for your company keywords, be prepared to offer services or solutions. Wouldn’t it have been nice for VW to offer to call me a tow truck? What about making a service appointment for me at the closest VW dealership? Although I resolved the problem before VW contacted me, the offer would have been nice.

What do you think?