Close More Sales

If you look around your showroom, how many products appear to be similar?  Most decorative plumbing and hardware professionals will answer "too many".  Imagine what a customer sees and thinks.  The fact is that almost all products in a showroom, when you compare features and benefits, will function similarly within each product category.  Recently a University of Southern California professor conducted a 76-part survey with 230 buyers to determine how customers perceive sales professionals and how they then make the decision to buy or simply walk away.

The survey found 40% of respondents want sales professionals who can demonstrate that they listen, understand the customer's goals, wants and desires and then provide a solution.  30% of the customers want sales professionals to make them feel comfortable and assure them that the long-term needs will be met.  This is easy to imagine in a showroom.  Customers rely on a sales professional's expertise to specify the best solutions for their project.  They count on the showroom to troubleshoot problems regardless of fault because they purchased their new bath from the showroom and not from a rep or a manufacturer.  They expect their sales professional to help avoid problems by providing guidance to installers and others.  Customers expect a showroom to inspect products before they are sent to the site and to stage deliveries as appropriate.  Customers may not know that is how a showroom delivers value.  To paraphrase Steve Jobs, customers don't know what they need.  Meeting unforeseen or recognizable needs are where the showroom can truly shine.

An additional 30% of customers want sales professionals to challenge their thoughts and perceptions, then recommend a better solution.  Again, this is another opportunity to create value, establish trust and create avid fans.  If you believe there are better options for your customers, ask ftheir permission to suggest a better alternative.  That way you can avoid the impression that you are a know-it-all or worse, that your customer is not smart.

How many times do couples disagree over a purchase?  In most buying situations there is one party that bullies his or her way to get what they want.  When you recognize that this is occurring, focus your attention on the party who is dominating the conversation.

The study found that buyers don't necessarily gravitate toward market leaders and are willing to look at alternatives.  In the decorative plumbing and hardware world, there are only a few brand names that homeowners, designers and trade professionals recognize.  The survey found that only a third of the buyers prefered the best-known brand with the highest functionality and cost.  Instead, 63% of buyers would purchase a brand that had 85% of the functionality and 80% of the cost. 

Most people who enter a showroom know they are going to pay a premium.  Too often, however, sales professionals evaluate a customer's budget based on appearance or what they can afford themselves.  As Michael Silverstein explained in Trading Up and at a DPHA Annual Conference, consumers will spend three times the amount they mentally budget for when they make an emotional attachment.  Don't prejudge a customer's budget.  The survey found that price only becomes a factor to those who are price immune when the solution recommended is priced far more than other options.

The survey also found that in the fashion industries, consumers are most attracted to charismatic sales professionals who they truly enjoy being with.  Having the most technical acumen or product knowledge was not as important.

The survey reinforces the fact that most customers who come to a showroom are not "rational" decision makers.  When you can recognize the intangible, intuitive human element of the sales process, you will close more sales.

The Reasons to Tell Compelling Stories

There are lots of companies that spend considerable time and resources developing mission and vision statements, which are generally not remembered by staff and customers.  A better option may be to craft stories that emphasize the values that the company represents.  Everyone likes a good story, especially when they are true.  Good stories make people feel good because they are about the experiences of real people.  Stories help to make team members and customers focus on priorities.  At your next staff meeting, challenge your team and team members to relate a story that reflects your showroom's mission and purpose.  When you document these stories, your team and customers will listen more closely and know what you stand for.

An Easy Button to Improve Customer Service

In his book The Customer Service Revolution, John DiJulius proposes an "easy" button for elevating customer experiences. Develop a never and always list of six to ten actions and standards that are guiding principles for your entire team. These are non-negotiable standards that will place your showroom in the upper echelon of customer service organizations nationwide.

 

DiJulius advises that each item should be one to three words in length, crystal clear and not subject to interpretation. For example, you may want to set as an always-rule to return email messages promptly. That's not a good directive because "promptly" to one person could mean two hours and to another two days.

•  Never say, "I don't know." Always say, "Let me find out."

•  Never show frustration publicly. Always be a duck.

•  Never accept okay as a result. Always make excellence the standard.

•  Never place blame elsewhere. Always make it right.

Telling a customer that you don't have an answer to the question they have asked destroys confidence and trust. DiJulius says that if you don't know something, acknowledge you don't have the information that was requested, but volunteer to find the answer the customer wants.

 

People disappoint. It can be extraordinarily frustrating if a supplier fails to meet a production schedule or their quality is not acceptable. Pointing the finger of blame at the manufacturer or supplier to explain the reason for the error though is not productive. The point is - don't let your customers see you perspire or lose your cool. In the above reference to a duck, DiJulius points out that a duck gracefully glides on the surface of the water while furiously paddling underneath, which creates the impression that what they are doing is easy.

 

If you call a customer to ask about the progress of their project or if they are satisfied with their tile and they say that it's just okay, you most likely have a problem. After all, you are looking for customers to have an enthusiastic reaction. If a customer doesn't believe that something you have sold them is out of this world, find out why.

 

We've all had problems with suppliers who let us down. If you look through your customer's lens, you will be reminded that your customer did not buy their kitchen from XYZ cabinet manufacturer. They purchased their kitchen from your showroom and if there is a problem, they expect you to fix it. Take ownership of problems and make them right.

The Sharing Economy Just Got Larger

For those DPHA members of a certain age, you may recall an Alka Selzer commercial with the mantra, "Try it you'll like it."  Best Buy is taking a page out of Alka Selzer's play book. The company recently announced a new try-before you-buy option on its website.  Those interested are then directed to a third-party administrator's site to lease the TV, iPhone, wearable or other electronic gadget that the customer is considering purchasing. 

Best Buy's motivation is to sell more open box items - merchandise that was returned that can't be resold at full price.  The new program is another means that Best Buy is using to connect with customers earlier in the customer journey in an attempt to capture consumer interest and wallets before they go to Amazon.  The giant etailer currently does not offer a rental program, but that may not be too far off.  Best Buy customers can either buy the product they have leased at a reduced price, purchase a closed-box item of the product they are leasing at full price or return the item. 

This week Amazon launched its new Wardrobe program that will enable its customers to order clothing and accessories and try them on at home.  If the fit is not right or the consumer simply does not like what they have selected, they can return the items freight free.  This is Amazon's attempt to gain more market share from brick-and-mortar retailers by allowing customers to use their own homes as Amazon's dressing rooms.  Obviously, Amazon's risk is a potential huge shipping bill for free returns.  However, just as Amazon is using predictive analytics for household items sold on Prime Pantry that has reduced the cost of returns, the company will use a similar model to control costs for Wardrobe to make more accurate and better product recommendations and thereby reduce the risk that customers will not keep the clothes they ordered.

Best Buy's trial testing program and Amazon Wardrobe are new disruptive attempts to challenge conventional brick-and-mortar retail practices.  What can your showroom do to capitalize on the sharing economy?  What's preventing you from trying?

Customer Service Lessons From the World's Most Customer-Centric Company

Amazon may be the most customer-centric company in the digital and brick-and-mortar world. That's because founder and CEO Jeff Bezos is laser focused on serving the needs of 164 million American customers. Why does Amazon stand out? Here are several important reasons why as well as lessons to learn.

Understand Your Customers

Amazon does not simply listen to its customers; it strives to understand them and their needs. Bezos and thousands of Amazon managers attend two days of call center training annually to teach and reinforce the concept that it is more important to not only listen to customers, but also to understand what they truly want.

Cater to Customer Needs

Bezos has said that Amazon does not focus on their competitors. Instead, the company focuses on customer needs and works backwards. That's how the Kindle came into existence. Customers wanted a tablet they could use to read books. It took a while for Amazon to perfect the technology. Lore has it that when one finance executive asked Bezos how much he was prepared to budget for the Kindle, Bezos responded, "How much do we have?"

Translate Bezos' philosophy and commitment into catering to your customers' needs. Brainstorm at your next staff meeting regarding what changes you need to implement to make your customers and their projects more successful.

The Most Important Person in the Room

In the early days of Amazon when it struggled, Bezos would bring an empty chair into meeting rooms and tell his fellow execs to pretend that a customer was sitting in that chair. Bezos wanted to emphasize that the customer should be viewed as the most important person in the room. This practices continues today to help assure that the customer is omnipresent.

100% or Nothing

Most companies the size of Amazon would be satisfied it if met its fulfillment goals 99.9% of the time. Not Jeff Bezos, who told his team they should not be satisfied until they hit 100%. Because Amazon's delivery goals are met so often, the company has created customer expectations that everyone should be able to deliver like Amazon. This is a customer mindset that needs to be addressed with every project.

Customers Own Your Brand

If customers are unhappy with product or service quality, there's nothing to prevent them from writing negative reviews on multiple social media sites or sharing their experiences on Facebook, Pinterest, Houzz, Instagram, et. al. That means decorative plumbing and hardware showrooms need to double down on service quality and respond immediately to negative reviews.

Align Your Interest With the Interests of Your Customers

Amazon's market capitalization is $98 billion higher than Costco and Target, which are also known for outstanding customer service. The primary reason for the valuation gap is Amazon's commitment to building a customer-centric company. Using data derived from customer experiences, Amazon can decide what is best for the customer and the company. In a profile in Forbes magazine, Bezos stated, "We don't focus on the optics of the next quarter; we focus on what is going to be good for customers."

Take Ownership of Mistakes

If you make a mistake, own up to it and apologize, which is exactly what Amazon did when it remotely deleted copies of "Animal Farm" and "1984" from Kindles in 2009.

Mistakes are opportunities to shine because so many companies play ostrich when something goes wrong. Most people will appreciate and forgive if you own a shortcoming and do everything in your power to make things right, even if you fall short.

Just My Imagination

Did you know that the origin of the word "store" is storage? Many decorative plumbing and hardware showrooms were developed as places to collect and arrange different components to sell new baths and kitchens. That makes sense. However, using your showroom simply as a place to show products no longer jibes with customer expectations. Remember, by the time a customer comes to your showroom, they have oftentimes traveled 75 to 80 percent of the way down their customer journey path. Retail expert Ken Nisch argues that today's retail environment calls for imaginative experiences such as those offered by REI or Patagonia, because those retailers help prepare their customers for future experiences they want to have. Kitchen and bath showrooms can take advantage of examples of successful grocers who are improving experiences by presenting the ingredients needed to make a complete meal together instead of forcing their customers to traverse aisle after aisle to find proteins, vegetables, fruit, spices, herbs, etc.

How can you use the space in your showroom to deliver experiences that will cause your customers to imagine they are sitting in their steam shower to relieve aching muscles after a hard workout or lounging in their soaking tub to wash away the stresses of the day? Can you take a page out of Best Buy's new loaner program that allows customers to test drive open-box products before buying them?  Amazon doesn't do that yet, but what stops you from offering showerheads, faucets and other easy to install fixtures to your customers so that they can try them out before buying? What prevents you from using your showroom as a meeting place for neighborhood groups to gather?

Dr. Carmen Simon writes in her book, Impossible to Ignore, that using the word "imagine" is a powerful way to create anticipation and emotion. Isn't it time to use your imagination to improve customer experiences and make them truly remarkable?

I Guess That's Why They Call It the Blues

Don't wish it away

Don't look at it like it's forever

Between you and me I could honestly say

That things can only get better

And while I'm away

Dust out the demons inside

And it won't be long before you and me run

To the place in our hearts where we hide

And I guess that's why they call it the blues

Time on my hands could be time spent with you

Laughing like children, living like lovers

Rolling like thunder under the covers

And I guess that's why they call it the blues

Little did Sir Elton John ever consider his 1983 hit, I Guess That's Why They Call It the Blues would have an entirely different meaning in 2017, especially when relating to the color blue and it's impact on the value of a home. There are numerous factors that affect home prices, most notably, location, location, location, school district, access to public transportation, and date and extent of recent remodeling projects, among others. However, a recent Zillow analysis found that a fresh coat of paint in the right color may help sell a home for more money. Zillow discovered that homes with rooms painted in shades of blue or light grey may sell for as much as $5,400 more than those painted white.

In its 2017 Paint Color Analysis, Zillow looked at more than 32,000 photos of recently sold homes to determine how certain colors affected average sale prices compared to similar homes with white walls.

One of the most important rooms where color affected price was the bathroom. Bathrooms painted or tiled with shades of powder blue or light periwinkle sold for $5,440 more than expected. Light blue had the highest premium of any color found in the home. Other colors that resulted in price premiums included cool, natural tones such as gray or oatmeal.

Blue bathrooms commanded the highest premiums. Homes with blue or soft gray-blue kitchens attracted more than $1,800 more than those painted white. Zillow's chief economist Svenja Gudell explains, "Painting walls in fresh, natural-looking colors, particularly in shades of blue or pale gray, not only make a home feel larger, but also are neutral enough to help future buyers envision themselves living in the space. Incorporating light blue in kitchens and bathrooms may pay off especially well as the color complements white countertops and cabinets."

The Zillow analysis provides another story-telling opportunity for showroom sales professionals. Not only can you bring extra enjoyment and satisfaction to your clients with your recommendations, you can also demonstrate how working with you increases the value of their home both financially and emotionally.

The Root Cause of Disruption

Business news headlines tout new disrupters such as Uber and Airbnb for taking a large bite out of established stalwarts in the transportation and hospitality industry. It is often considered that industries are disrupted by technological breakthroughs. That's not the case. The rise and success of disrupters is due principally to established businesses losing touch with their customer base, claims Alberto Brea, Executive Director, Engagement Planning at OgilvyOne.

Every industry that has been disrupted failed to look through the customer's lens and provide a level of service or quality that customers wanted or needed. As Amazon CEO Jeff Bezos pointed out in his annual letter to shareholders, customers are never satisfied even when they appear to be happy.

Amazon did not kill the retail industry, writes Brea. Retailers such as Sears, Macy's, JC Penney's and K-Mart are responsible for their own self destruction by living in the past, staffing stores with personnel who don't know much about what is being sold and resorting constantly to the lowest common denominator by constantly luring customers with sale after sale after sale.  

Brea points to Borders as another example of a company that did not have a long-term vision or appreciate the need to service its clientele. Did you know that Borders outsourced its online book sales to Amazon? Why would any company send its customers to its biggest competitor? Plus, Borders ranked 266 out of 922 companies in customer service. By comparison, Amazon just might be the most customer-focused company on the planet.

Netflix did not kill Blockbuster. Blockbuster alienated its customer base by charging excessive late fees.

Uber did not kill the taxi business. Taxi monopolies killed themselves with rude drivers, fare control and limited options.

Apple did not kill the music industry. Record manufacturers did it to themselves by requiring customers to buy albums. Apple knew that most customers only cared about a couple of songs on any give album, so it ate the music industry's lunch by allowing customers to buy songs one at a time for 99 cents.

Airbnb started because two guys in San Francisco could not afford the rent on their apartment. During a citywide convention where hotel rooms were scarce and extremely expensive, they developed a website to rent a room at their place at less cost than a hotel to convention goers.

Technology is not the reason for established businesses being disrupted and losing market share and relevance. Lack of focus on what customers truly want is the reason why disruption takes place. Are you constantly looking through the lens of your customers to make sure that you are not a victim of disruption?

How Showrooms Can Effectively Utilize Reps to Increase Engagement, by Phil Hotarek, Lutz Bath & Kitchen

I was fortunate to speak to the plumbing diva Mary Labowitz of Premier Marketing about strengthening relationships amongst showrooms and reps to expand horizons in the market.  Although I have known Mary for several years, the most eye-opening aspect of the conversation was being able to see the industry through the lens of a manufacturer representative.  Sometimes, it is too easy to neglect the difficulties your peers and colleagues experience while building your own business.  Gaining perspective is the first step toward mending a stronger relationship; that is certainly the truth in both business AND life.  Take a moment now to ask yourself, "am I proactively utilizing my business relationships to maximize engagement?"  

 

Feeling the Love

 

Both showrooms and representatives have different needs.  Coming from a small design showroom, we heavily rely on our reps for support and to promote our brand.  From our perspective, we truly value reps that believe in our company vision while offering the best and most knowledgeable service in plumbing.  Attention to detail, follow up, and just knowing that the rep is there for support whether it be in a consultation design or damage control in the heat of an unfortunate issue is so important for our business.  But why would there ever be a problem in plumbing?   

 

Conversely, reps need to feel the love too.  I did not realize the depth of the challenges until my conversation with Mary.  What is important to reps is knowing that the showroom is genuinely invested in the line and not just adding a line for the sake of unlimited product selection.  Showrooms being more selective with their product selections actually enhances the customer experience by preventing confusion in the design process, so it is really a win-win.

 

Tip - Jobsite visits by both the rep and showroom designer are a great way to engage personally. with clientele   It makes you unique as a designer and adds value to your service.

 

Communication

 

Naturally, building any relationship comes back to communication.  For reps, if they do not hear from showrooms, most would be led to believe that no news is good news.  Because showrooms have different needs, it is important to communicate to your reps exactly what you need.  They are there to develop creative solutions to issues showrooms might have ranging from increasing sales and ordering parts, to helping with installation or assisting with projects.

 

Showrooms also need to hear from reps when there are updates to existing lines.  This goes beyond the annual visit to present new pricebooks and price increases.  No one can learn everything there is to know in just one PK.  Repetition is so vital when becoming familiar with new product and let's face it, showrooms sell more of what they are most comfortable with.  It is the rep's responsibility to educate showrooms on their lines and neglecting a showroom will certainly reflect in those sales.  

 

Tip - Reps  survey your showrooms to evaluate your performance.  Surveying is a simple and easy way to learn more about what each showroom needs individually.  

 

Education - CEU Events

 

The more our market knows about decorative plumbing, the better for everyone.  Continuing Education Units (CEU) events and presentations have been the main source of education connecting manufacturers with the consumers.  CUEs are required for architects and designers to maintain their licenses and or designations.  For example, ASID (American Society of Interior Designers) requires a minimum of 10 hours of approved CEU every 2 years to maintain their status as a certified designer.  This is where showrooms and reps can get creative.  Marketing through CEU events is an excellent way to engage with existing and new clientele while strengthening the rep-showroom relationship.  Collaborate on creative ideas for events; some are held directly at showrooms, others at off-site in a lunch setting, or social gathering.  Why not bring the CEU event directly to the client in their office?  The possibilities are endless and organizing successful CEU events are one of the most under-utilized engagement tools over the past several years.  

 

Tip - Showroom designers should go beyond basic sales education and learn as much as possible about plumbing.  The sale does not end with the payment, and continues long after the project is completed.  Your customers rely on you for knowledge and the more plumbing knowledge that you have, the more value you provide.  

 

Conclusion

 

One aspect I love about the plumbing industry is the people.  Once you are in the plumbing industry, you never leave the "black hole."  I'm not sure if that is a blessing or a curse, but probably a little of both.  In any case, after being in business with the same people for years and years I find that you develop lifelong friendships and foster a family culture.  In an age of technology, text messaging and Instagramming, the best tip of all is to never forget that good business will always be done with good people. 

A Tale of Two Luxury Brands Headed In Different Directions

Michael Kors announced this week that it plans to shutter up to 125 stores in the next 24 months on the news that sales fell 14.1% in the second quarter of 2017.  Not a lot has gone right for Kors recently as a luxury band. Problems for the company began to surface last August when Kors announced it planned to reduce inventory at several major department stores because of excessive discounting that tarnished its brand. Kors also told Macy's that they could not include Kors products in coupon promotions or annual sales.  Kors realized, perhaps too late, that allowing its brand to be constantly on sale confuses customers and diminishes the brand's value as a luxury purchase.

Conversely, Coach, which acquired Kate Spade a few weeks ago for $2.4 billion, has seen its fortunes turnaround by becoming proactive in protecting its brand image. That turnaround started by exiting 250 U.S. department stores last fall and establishing minimum sell prices for department stores in which the product remained available.  Coach also realized that selling its brand at discount factory outlets resulted in a short-term boom in sales but long-term damage to its reputation as a manufacturer of high quality elegant leather goods.

Coach CEO Victor Luis understands that less is going to be more for Coach as he attempts to create a luxury fashion empire in the U.S.  Luis started his tenure in 2014 by closing 20% of Coach's stand-alone stores in order to better focus on high-performing locations in key markets.  He cut the number of online sales events in its factory store business and expanded the merchandise mix beyond shoes and handbags to include outerwear and apparel. 

Luis is spearheading efforts to improve customer experiences by remodeling many of the Coach locations, incorporating a sleek look that is more luxury focused and creating craftsmanship bars to showcase the workmanship that goes into Coach products.  The efforts to reduce discounting and improve product quality have proven effective.  Fortune magazine reports that handbags that cost more than $400 generate half of all handbag sales, an increase of 30% from a year ago.  Luis told Fortune, "We are, at the highest levels, moving from the lowest common denominator in pricing to a more innovative, more emotional positioning that provides consumers something they can't find elsewhere."

The lesson for decorative plumbing and hardware is that it is virtually impossible to be viewed as a luxury brand if products are allowed to be discounted unchecked.  Sales professionals will eventually gravitate away from a brand that has to be severely discounted in order to be competitive.  Luxury is about telling compelling stories and delivering meaningful experiences.  After all, no one who comes to a showroom wants to tell their dinner party guests that they purchased a cheap item cheaply.

You Deserve a Break Today

As entrepreneurs and creative designers, you work hard. Your jobs are stressful.  The services you perform for your clients are meaningful because you make a significant difference in the quality of many lives.  That's why it is healthy to take a break and recharge your batteries and one of the best ways to re-energize is to travel.   Traveling for business or pleasure gets you away from the showroom and provides opportunities for downtime.  When you take a break, you reduce your stress and improve your mental and physical well-being.

 

Traveling also can be inspiring.  How can you think outside of the box if you never leave the box you are actually in?  When you go to a new city, resort, country or place, you see the world through a different lens.  You look at the same things differently and this can help your creativity when you return home.

 

When you venture to uncharted territories you learn to communicate differently.  Granted, if you travel outside the U.S. citizens in most westernized countries speak English.  But when you encounter someone who does not, you are required to improvise and that's healthy.  As an entrepreneur and designer, improving your communication skills will help you improve relationships with fellow team members and clients.

 

Traveling with family members or in groups provides even more experience opportunities because there are multiple sets of eyes viewing new experiences and others may see things differently than you do.  And when you travel with family, compromises almost always have to be made which strengthens connections and emphasizes the benefits of being selfless.

 

When you travel, the chance of making new friends or potential business contacts skyrockets.  There are DPHA dealer members throughout the United States and most of them would welcome the opportunity to host you in their showrooms.  Every time you visit someone's showroom - whether a dealer, representative or manufacturer - you learn something valuable and new. 

 

When you travel, you greatly increase the time you have to think strategically about your business.  Whether you are skiing in the Rocky Mountains or relaxing on a beach in Mexico, use this time to reflect on where you are and where you are headed.  This time will serve as a brainstorming session where you can think of new ideas to grow your business because you know during the chaos of everyday, more often than not, you make spur-of-the-moment decisions.  Enjoy the summer and take some time off.