Get on Board
Picking someone's brain can be the smartest thing you do.
By Cinda Baxter -- Gifts and Dec, 12/1/2009 12:00:00 AM
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| Cinda Baxter |
I've spent the past eight months traveling coast to coast, speaking about The 3/50 Project. While on the road, I make a concerted effort to visit local retail stores. In each conversation, there comes an inevitable moment when the store owner pauses, takes a breath, then admits they're worn out. They're running near empty when it comes to battling the economy and operating a business.
The first question I ask is: "Who do you listen to?" If they don't mention music, it's the name of a friend or family member. Either way, it's an indication of what's wrong.
If you're a typical Type A (like most of us who own businesses), you've spent endless hours trying to do, be and know it all. Let's face it: Whether you own an 800- sq.-ft. boutique or an 800 SKU international gift line, you can't possibly predict everything your customers need/want/think/feel/demand. No one can. Accept it, embrace it, get over it — and form your own advisory board.
Having sat on quite a few over the years, I'm a huge believer in advisory boards. Each introduced me to bright, engaging people I might not have otherwise met. One in particular continues to blow me away with its commitment to hearing and acting on members' suggestions. (Thank you, AmericasMart.)
An advisory board is different from a board of directors. They serve different roles: the former gives insight and advice, the latter makes decisions. You want to create one of the former.
Head Count
The group needs to be large enough to bring diverse opinions, but small enough to connect to each other personally (and to wrestle into a single meeting time). My rule of thumb for retailers is ten; if you're multi-store, add three key personnel. You can go smaller, but the information you glean will be narrower. Go too big, and it could turn into herding cats.
Deciding who those ten people should be is where most retailers (and a lot of vendors) go wrong. They stack their advisory boards with nothing but top customers, and key accounts.
This is great if you want the future of your business to rely on 5 percent of your customer base, with limited growth potential, but most of us want increased consumer engagement (i.e., more money). Instead, here's how I suggest you stack the deck:
Three Best Customers
They know who you are, love your wares and want more. They'll bring the most dedication, but won't be the ones who challenge your worst habits or bring up your weaknesses. Include them because whatever adjustments you make for the masses need to resonate with them too. Gotta keep the regulars happy.
Four Average Customers
Your middle range, the folks who pop in now and then but don't know the first names of your siblings. They like the store, tell their friends, but occasionally shop with your competitors nonetheless. Include them because this is the group you have the best odds of converting into better customers. They'll accept change fairly easily, since they're not deeply invested in the way things are.
Three Blue-Moon Customers
This group has the most capacity for growth. They like you. They like your store. They like your products. They just don't remember to like you as often as you'd like. (This is different from "worst customers." I'm not suggesting you invite Ms. Crankypants for a gripe session.) Include them because they know what you're missing — and not just in terms of inventory. Where's the disconnect? What vital element have you overlooked that has them still searching elsewhere? You might be surprised by their honesty and the simplicity of the adjustments they suggest.
Happy Helpers
Whatever you do, consider personalities the same way you would when planning a dinner party. While Suzie Smith might be a top dollar customer, if she drives you and your staff nuts, she'll have the same effect on fellow group members. Opt instead for people who are both candid and comfortable. If you keep the group happy, they'll keep contributing.
Set quarterly meetings so issues are current without creating a hassle for group members. Opt for breakfast meetings, gather at the store if possible, and always provide food, coffee and juice. Make it worthwhile for them to participate: as your thanks, offer a 20 percent discount during their entire two-year term — a time frame that puts members at ease long enough to be brutally honest.
Listen Up
Here's the hard part: You have to ask for their opinions. Then listen ... not argue, not justify your actions, not explain why things are the way they are ... but listen.
Dig into everything: store layout, newsletters, window displays, sales, product offerings, etc. Take notes, or better yet, set up a recorder to avoid awkward note-scribbling pauses. Inspire brainstorming — the more creative, the better. Give them freedom to think out of the box without worrying they'll step on your toes.
It's going to be tough to resist the temptation to defend current practices; each time you catch yourself about to, remember this: Customers determine what works (or doesn't) when they vote with their dollars. Picking up the tab for pastries costs less than losing foot traffic.
Make Things Happen
The only way an Advisory Board works is if you seriously consider members' suggestions and give those ideas a try. Some of what they suggest won't fit, but much of what they come up with just might be the creative seeds you can nurture into something that grows and blooms into increased sales. Test the best ideas long enough to give each a real shot at success, and never forget that your board members will be watching.
Don't lose sight of the fact these are folks who want you to succeed so they'll have someplace to shop. That puts you on the same team, regardless of who's signing the checks. Keep reminding yourself that by listening to their needs now, you may be improving your longevity far into the future.
We would love your feedback!
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