the STUFF-iT Design shop


I recently embarked on a new venture in the world of e-commerce through opening the STUFF-iT design store. I will be documenting some of the learnings here, as I believe they have relevance for those of us in the broader retail world, whether as marketers, advisers or shoppers.


First up learning is that the thirst for customisation of product by shoppers has spawned a number of alternate business models - see RedBubble and Zazzle as examples.  This is in essence the creation of their own content (nothing new in that) but then made manifest -the latter being the key point. Over time this will lead to a further questioning of the value of design in traditional retail stores.  This will present further challenges for retailers to differentiate on excellent customer service.


Please drop by the store, and as always I welcome any feedback.

A Tale of Great Customer Service

The Body Shop, East Gardens.  I don't hand out bouquets easily.  However I was very impressed by this store on Christmas Eve.  We had headed out to the shops at about 11am for those last minute gifts, hoping, optimistically, to get in and out before the major rush.  

This store, in contrast to many other retailers, was properly staffed - there were five staff members including the manager who discreetly hovered in the background.  Staff were well presented - with the possible exception of the tinsel (which I have previously mentioned is perhaps not in keeping with The Body Shop values).  They were enthusiastic and friendly, and despite one or two minor glitches were keen to help.  Also impressive, was the 'build your own gift' (at no extra cost) section at the back of the store, which really removed any reason not to purchase.    

As an aside I noticed the pre-made gift sets, which came in different sizes, varieties, and pricepoints, were selling best, but those over $100 were not moving at all.  The beauty of their approach is those can be 'dissembled' after Christmas and the stock redeployed.

We were in and out there relatively quickly, with beautifully wrapped gifts - and having bought an additional 'impulse' gift after we were prompted.

Kudos to The Body Shop - they stood out.

SHOPPERS FORCED TO TRAIN MYER STAFF

GUEST POST by Derek Jenkins

The story behind Tweet #6,588,831,751

Myer Bondi Junction : where 10% + 15% =>; 35%  (not)

by: Derek Jenkins (@OzDJ) http://twitter.com/OzDJ 

refers to: http://twitter.com/ozdj/status/6588831751 

_________________________________________________________

It was Saturday afternoon and we were wandering through the hampers and chocolates at Myer Bondi Junction. We spotted a "weekend special" sign which read, in part:

"Buy four or more(*) Food as a Gift items in a single transaction and get 35% off"
 ...and in very easy-to-read, not-so-fine print....

(*) Full priced items only. Excludes already discounted items"

"Fair enough!" I thought, and I loaded up our basket with approximately $120 worth of chocolates and other eligible foodstuffs (each individually marked at full price). We had all of the items run through the register, paid the bill and we started to wander off.

And then I checked the receipt. Ummm... $29.99 less 35% should equal $19.49 (not $22.49). And $14.98 less 35% should equal $9.74 (not $11.24).

Back to the register to get the mistake fixed.

Me: Hi - we just bought all of these items and they appear to have scanned at the wrong price.
Staffer#1: Oh. What is the problem?

Me: Well ;
Staffer#1: No, those products were already discounted - so you don't get the full 35% off.
Staffer#2: See, [points at a $5.99 chocolate billed at $5.39 less 15% = $4.58] But you're still getting a big discount.

Me: [producing the item] It is still full price on the sticker and nowhere on the display stand does it mention that they've been discounted.
Staffer#1: But, see, you still get 15% off the discounted price.

Me: I'm not happy with that. I'd like you to honour the price you're displaying over there [pointing] [another two staff arrive on the scene]
Staffer#3: Can you please show me?

[I gave Staffer#3 and Staffer#2 a tour of their department while Staffer#4 and Staffer#1 had a chat. I pointed out the full-priced items and the  "weekend special" signage about the less 35%.]

Me: Sorry, but can you please show me any sign/pricetag which says the items on the shelves are pre-discounted by 10% off the marked price?
[Staffer#3 then walked around for ~2mins looking for non-existent signage]
Staffer#3: You're right. There's nothing.

[Our posse heads back to the register]

Staffer#1 to Staffer#2: How did you go?
[Silence from Staffer#2]
Me: I just want you to charge me full price, according to the offer, and take the 35% off. I don't want you to discount a discount.
Staffer#2: But less 10% is the current price. I can't charge you the old price.
Staffer#1: [attempting to support Staffer#2] ...but you're not the first person to have asked about it today.
Me: !!!!!!!!!!!!!!!!! [Thinking: WTF?! This is a systemic issue and they know about it?!]

Me: Sorry, that's NOT on. What you're doing is an elementary breach of section 52 of the Trade Practices Act. The lack of signage/pricing is clearly likely to mislead or deceive.
Staffer#2: Really?
Me: Yeah, sorry mate, this stuff is my day job.

Staffer#2: [to Staffer#1, #2 and #4] I need to phone Dan.
[At this point Staffer#2 calls 'Dan', a supervisor or manager of some sort. Situation is explained, including the presence of an 'unhappy customer'.  Call ends within 30 seconds]

Staffer#2: [to Staffer#1] Just reverse out the entire sale and over-ride the price.
[Staffer#1 and Staffer#3 get to work on the fix. ~15mins later we've been re-billed and credited for the difference]

Staffer#1: Thanks for your patience.
Me: No problem, but you should really get that signage sorted out.
Staffer#1: I know. So many people have said the same thing.
Me: [sigh]

Model Seating

Myer, Bondi Junction.  No seating (mainly for blokes) in the womenswear fashion area.  I think this could result in lost sales apart from the obvious shopper frustration.  A smart retailer would give their male customers seating in the menswear area with a 'buzzer' system so she can call him when she is done with fitting  garments.  That way, he might even buy something for himself ...

Caring about Customers

Australia Post, Bondi Junction.  I have to question whether Australia Post really cares about its customers.  The Bondi Junction mall was jampacked yesterday - a Sunday afternoon, 3pm,  5 weeks to go to Christmas, and 40 degrees C outside.  Yet, the PostShop on some of the most prime real estate in the country (and hence with expensive rentals) was shut. In the few minutes I stood there, I saw at least half a dozen shoppers walk up to the store and express frustration it was closed.   Do they think this will encourage shoppers to come back ?

Caught in the act

Lush, The Met Centre.  Great to catch this young lady in the act of doing the right things - smiling AND selling - well done :)

The Core of It

Mobile shop, East Gardens.  I could NOT believe this guy serving a customer while he was eating an apple - would you buy a cellphone (in fact ANYthing) from someone eating food ?

How Lush is that ?

Lush, QVB.  A great example of 'engaging the senses'.  Lush is well known for its aromas, but note use of colour and light.  Also worth noting from an operations perspective is the staff member's tidy uniform, her smile, and the clean lines in the store fixtures to offset the visual 'clutter' of the product.  Perfect balance.

Apple's Refund Policy

Apple, Chatswood.  Here is an interesting story from the 'frontlines' of customer service.  Kudos to the Apple staff involved.  Names and places have been changed to protect the innocent people involved :)  

Letter received today:

Dear Stephen,

As per our brief chat here is my experience which you are welcome to add to your website if you think it will help anyone.

I purchased a MacbookPro 2 weeks ago and was very happy and excited ever since.  Apple have just introduced a range of new and improved products and also have dropped the price of my particular MacbookPro by $299. I thought "great I just bought something that has devalued in front of my eyes" and left it at that.

So I went along on Thursday to #nscm and got talking to K[] about how great Mac's were and she has just bought a very similar model for the reduced price. When I mentioned that I had to payr a lot more that she did. K[] then told me that Apple would refund the difference if the computer was purchased within the last 2 weeks.

She gave me the number for the Chatswood Apple Store (02) 8064 6303 which is a great number in itself as you get someone from the actual store rather than a general Apple sales number, that you get when trying to talk to the city store.

So I called and asked about a refund and they were more than happy to do it. So I printed my electronic receipt out went in and within 15 minutes had a $299 refund in my account.  So the Apple policy that I was unaware of is that if an item was purchased within 2 weeks of a new discounted price range a refund is given on the difference.

Now I feel great that I didn't buy at the wrong time and have the latest Macbook Pro at a fantastic price and want to keep promoting how good Apple is. Smart policy in my book.

Regards

T

No service ?

Market City, Sydney.  Shoppers looking at product, but this staff member (Gen-Y ?) seems more preoccupied with her cellphone.

Why We Buy - Service with a Smile #consumer

Today I was in a busy mall shop in the city, and the shop assistant took the time to ask me, respectfully, about how my day had gone. She seemed genuinely interested, although I knew she probably asked that of all her customers. I shared some information, and suddenly found myself spending a bit longer in the store, taking a look around. And guess what ? I ended up buying something additional to my original purchase. Simply engaging me with a smile made it comfortable for me to spend a bit more time.

So many shop assistants provide service with a snarl – sad that the smile is becoming the exception. This goes back to recruitment, selecting the right people, inducting them in the culture of the brand, and training them in the right processes. It's about putting the people back into retailing. Retailers who neglect this are leaving money on the table.

It should be simple. Insight pays.

REBEL LOSES INTEREST ?

Rebel Sport, World Square. The sports retailer has obviously decided to launch a major new initiative- interest free credit on any transaction $300 or over. It will be interesting to see how they go - while loudly 'postered' in store - staff members were unwaware of the details and details were hard to come by - not a good look, customers quickly lost interest. Having said that, I found myself thinking, "how could they afford to do that with their margins ?" A potentially game-breaking move - worth watching this space.

PIGLET MISSES OUT

KMart, Broadway - happy staff member on security duty with Winnie the Pooh. Great to see some smiles :)

SNAIL-SPRESSO

Slow espresso - this customer waited over 2 mins for this coffee (see left of screen), with no other customers in sight. Also, the other staff member loosening his neck while taking a customer's order signals total indifference - even if it has been a long day ! As an aside, the layout looks functional, well-considered. However, they probably don't merchandise and sell enough food items to make this mall site really pay. Saturday afternoon, 2.30pm, East Gardens.

LOW COST STAFFING

Setting new standards in taking the service out of self-service.  Harvey Norman, Alexandria.  From a customer's perspective, this falls into the 'why bother' category.......  retailers who think like this should not be surprised if it becomes a self-fulfilling prophecy: no service --> no sales --> no staffing --> no service.

.

HOT TO TROT

Heatwave causes rush on fans to beat recession at Harvey Norman. But customer service levels poor as shopper numbers took them by surprise. However, given they were advertising the Aussie sale (Australia Day), this shouldn't have been the case. Bondi Junction.