Retail Trend: Reimagining CRM and loyalty programs with technology

A recent news was about an interesting app rolled out by the up market department store chain; Neiman Marcus. This enables their customer to be linked to a specific sales associate and for a start enables the staff to update the customer about new arrivals, it alerts the store staff when the customer enters the store, etc. Obviously this enables a whole new level of personalized service and customer relationship management (CRM). This video about NM Service would help you understand how this works.

 

With a new year around the corner I have been fielding questions about what does the immediate future hold for shoppers and Retailers. A recent post of mine was about technology changes, namely 3D printing and Google glasses, which might redefine shopping and it might come into our lives even as you read this post. To use Neiman Marcus as a case to point, they have unveiled a range of exclusive gifts for Christmas which can be printed out in their store!

 

This lovely pendant can be printed (!) with the shopper’s initials at the store.

 

Even assuming that printing of products at home will take time as 3D printer penetration in households is a constraint, there are other implications to these development. If we are to combine all these separate technologies, it would lead to a completely new paradigm in shopping, especially in the CRM and loyalty space.

 

Imagine this, which could be a reality very soon. You as a shopper enter the store where the staff have been fitted with Google glasses which is linked to the loyalty database. As soon as the staff sees you, they know your name and can recall your preferences, etc. The staff will be able to wish you in a personalized manner and interact with you. Add on 3D printing and the staff might be able to print out a unique and personalized SKU for you. Your experience will be one of a kind and cannot be duplicated easily by a competitor. In essence the CRM would be at the absolute best.

 

Is it practical? Is it cost effective? Which formats can afford this?

 

Yes, it is practical and depending on the format and cost structure the technology will pay for itself in terms of customer retention and profitability. I have never been a big fan of loyalty programs by mass merchandisers and I don’t think that this is a path they should even consider. A typical CRM program would approximately cost 3% of sales and in the case of mass merchandisers who focus on pricing and volumes this cost would be better spent on lower prices of the KVIs.

 

On the other hand lifestyle and specialty formats should definitely explore this, especially in India. A good CRM program can ensure that loyal customers generate anywhere upwards of 50% of the sales for a retailer. Therefore, incremental marketing costs can be dramatically cut and such a technologically enabled CRM program will give more bang for the buck. The other direct benefit is the increased conversion rates. This means that the staff would be interacting with more of actual buyers instead of potential buyers, thereby making the staff more productive. Lastly, the lifestyle and specialty stores can also work towards rationalizing their assortment and increasing the stock turns, leading to increased profitability.

 

Needless to say, all these would remain as useless gizmos if the Retailer does not leverage the data being generated to customize their offerings. Just having loyalty cards, giving points or outfitting the staff with Google glasses will not make any customer happy unless they get some direct and tangible benefit from these initiatives.

 

CLICK HERE to join the debate about technology impact on CRM

Indian Retail trend – Technology impact on Shoppers and Shopping

The obvious topic related to technology impact on shopping is about E-Tailing and I am not going to talk about that since this is not anything new.

 

At several forums, I have been talking about two specific technological developments which would completely change the paradigm of shopping as we know it today. Retailers better be aware of this and stay ahead of the shopper learning curve. Otherwise, they are going to be left behind. This is especially relevant for Indian shoppers as we tend to have a high learning and adoption curve when it comes to new technology.

 

The first is about 3D printing or 3 Dimensional printing. My attention was drawn to this emerging technology when a few months ago, there was a news item about someone in the US using 3D printing  to make a gun at home and even firing a bullet from it. Since then I have been reading about some amazing stuff that 3D printing is enabling.  Another person has downloaded the entire blue print to print an Aston Martin car, which is the vehicle favored by James Bond. Check out this video about how this is being done.

 

 

My view about 3D printing having a high impact on retail was validated when I read about sweaters you can print or rather knit at home. Appalatch is a woolen and cotton cloth manufacturer. They are now spearheading a campaign to encourage customers to purchase a Stoll knitting machine which is being positioned as a 3D printer of knitted apparel.  While the cost of this machine is prohibitive as of now, it is bound to come down and become affordable soon. If other apparel manufacturers join the bandwagon of enabling you to print or make your own apparel at home, the cost is bound to reduce soon. Click here to read a detailed article about this development. 

 

The second related technology is about Google Glass. It is essentially a computing device plus a camera which is internet enabled and mounted on a pair of spectacles. The wearer can do a multitude of things with this device and the technology. You can look up details, take pictures, post online, etc. See this video about Google Glass to know more about it.

 

 

 

Google glass offers tremendous opportunity areas for Retailers to engage shoppers and even offer some differential services and experiences. However, the interesting development that I foresee is when a shopper pairs the above mentioned two technologies.

 

 

Supposing I am outside and see something I like, the picture can be taken using Google glass, online search for 3D printing can happen with options for customization and personalization, checking of price, etc. Finally I can even complete the transaction and trigger a print to my 3D printer at home.

So, I arrive home to find the product ready for my use. What all can I purchase like this is limited today but has no limit in the years to come. When edible pizzas and burgers have been printed, can other products be far behind!

 

Retailers can no longer just be providing merchandise for sale. If they do not add value to the shopper in several other dimensions, the stores might end up being exhibition halls where shoppers come to check out the products and use the technologies mentioned above to make the actual transaction from elsewhere.

 

If store staff did not like smart phones because it enables immediate price benchmarking, God help them when the scenario I have mentioned becomes a reality!

 

Click here to join the discussion about shopper impact on my Facebook page.

Events can become a game changer in Retail

A few days ago I had shared a post on my Facebook Page about shopper events and how they have a significant impact on customers. This thought and memories of some of the powerful events planned and executed by the teams I have worked with was triggered by a video about an airline which decided to convert a park bench into a memorable experience for those who sat there. Watch this video and remember to notice the range of positive emotions that plays across the faces of those who are experiencing this event.
 

 

In that context I would also like to share another video of a restaurant which had conducted an interesting event where they said that “beautiful women need not pay”, The best part of this story is that the event was so successful that their sales increased by 35% for that day.

 

 

On the topic of events I happened to read a note how Indian Retail is increasingly experiencing the positive sales impact of events and most of the chain stores have indicated increases in the range of 12% or so during events.

But, that is only the tip of the ice berg. The bigger story is about the everlasting emotional impact that good events create in a customer’s mind which results in positive memories and also great word of mouth or rather in today’s world great word of mouse.

My conviction about the emotional impact of events is validated by the memories of those who have experienced the many events conducted by my team. One of my most personal favorite “Cadbury Love Bites” which was conducted in the late 90’s would have even become an internet sensation if only digital camera and YouTube had been present then.

Indian Retail – Point & Counterpoint: Potential of Shop-in-Shop

During one of my regular forays to the various Retail outlets I came across this very well presented Shop-in-Shop (SiS) for a coffee brand. The whole presentation was very impressive, the promoter manning the SiS was helpful and the coffee aroma that was wafting around that place had its own impact.

 

The fundamental idea was quite simple. The customer chooses the preferred roasted coffee beans, which is weighed and then put into the small machine which grinds it into the powder ready for making filter coffee. The customer whom I saw was so involved in the process that the anticipation of going home and drinking the coffee was clearly etched on his face. Definitely, this was one of the best moments of customer engagement seen by me.

 

Such SiS seems to be a good option for brands that are keen to engage customers at a retail level as also have a high level of brand visibility. One can see similar examples for color cosmetics in the counters maintained by leading brands in health and beauty as also department stores. However, the key difference was the degree of customer engagement. While the cosmetic counters definitely are very good for brand visibility, it is yet another purchase point for a shopper. Some initiative to engage the customer might increase the impact of such counters.

 

Lastly, is the all important factor of cost Vs benefit. I think that such SiS score high on this count also as brands are always in a tug of war with regard to visibility with the chain stores. A minimum guarantee for the space being occupied with revenue share would work out well for all concerned. The minimum guarantee can be considered as a marketing expense as it does deliver high brand visibility.

 

All in all a Win-Win-Win opportunity for the brand, retailer and more importantly the customer.

 

Click here to join the discussion and share your views.

Sign of changing times!

Saw this sign about power cut at a diagnostic center recently, which has some relevant points which Retailer's should explore.

 

 

• Adapting to the operating environment - With power cuts being the norm in Tamil Nadu nowadays, this was a good gesture to keep customers informed. I have experienced the few seconds (Which actually feels like minutes) of black out before the generator kicks in in stores. Retailers can consider putting up similar signage where relevant.
• Flexibility in signage - I really appreciate the small slots where the time of the power cut can be changed depending on when it has been announced. Many stores are littered with irrelevant signage just because they don't have such a flexibility and the staff cannot remove the same. Retailers should always factor in such flexibility in any relevant signage.

 

CLICK here to join the discussion about signage on my page

Retail signage idea

Recently I saw a promotion signage put up by a small stand alone apparel store. The signage grabbed my attention and would like to share it as it can be easily replicated by other Retailers.

 

 

The rough and ready look and feel stands out amidst the digital printed signs one sees everywhere nowadays. My guess is that this store has used some old flex material and spray painted the message. It is a great idea as the urgency comes across very well. Especially when the "Hurry" seems to have been added on in a hurry (pun intended). 

 

A few suggestions to make this even more effective –

• Use red paint for some of the key words like shown in the edited picture below.
• Reduce the text. Use “3” and “1” instead of words.
• Make the font size of “conditions apply” smaller. I do not mean make it miniscule, just smaller!

Indian Retail - Point & Counterpoint: Great ideas are a waste of time without execution focus

A few days ago I woke up to see a half page advertisement of a national Retail chain which was trying something new and interesting. They had affixed a scratch card to the advertisement and I am guessing that they were hoping that this would trigger curiosity and drive walk ins.

Sadly, the scratch card had been already scratched out and the offer was visible which completely defeated the very purpose of a scratch card. The other evident lack of execution focus was that the scratch card had been affixed upside down as you can see in the picture. (Retailer’s name has been masked)

 

 

A good idea and this is in line with the basic Retail focus of generating customer footfalls and then focusing on conversion inside the store.

However this good idea did not factor in some basic ground realities. Namely, that a scratch card which has already been defaced will have absolutely no impact on any potential customer. The other reality is that anyone will be tempted to scratch and see what is in such a card, very similar to the universal fixation of breaking the bubbles of a bubble wrap sheet.

So, another great idea which sounded fabulous when being presented seems to have fallen by the way side.

How could this great idea become very effective?

Very simple, factor in the reality that news paper agents will have access to these and if they can insert pamphlets in a paper, they can definitely scratch and see what is hidden.

Just print a random number sequence on a card which is stuck on the advertisement. This card can be shown while billing and the offer pertaining to that random number can be accessed from a data table which is uploaded in the billing software. The curiosity value is retained and the idea becomes effective.

Lastly, there could be one more perspective. In Tamil Nadu there is a ban on lottery or what is called as game of chance. This is one reason why coupons always have a slogan and then gets defined as a game of skill and not chance. (A leading ice cream brand had to withdraw a national promotion only in TN, a few years ago due to this reason). Maybe, the scratch cards were defaced deliberately. In which case why spend so much of money in making these cards and getting them fixed onto the news paper advertisement.

A distinct lack of execution focus seems to be coming through and that is a big NO, NO in Retail.

CLICK HERE to join the discussion about “Execution Focus” on my page and share your perspectives and examples.

Indian Retail - Point & Counterpoint: What is Customer Orientation?

Change has always been an issue for any Retailer and this is about the change in terms of currency. As shoppers we all tend to hand over large denomination currency and expect the Retailer to give us change. Smaller, stand alone stores handle this by giving small toffees in lieu of change and if we do not want that, it is either give the exact change or live with it!

 

Larger stores especially the chain stores cannot afford the indulgence of handing out toffees or sweets instead of change. It is expected that they give the correct change to the customer. Therefore these chains try and get adequate amount of change from a variety of sources apart from the banks that even include the groups of beggars. Read more about this in my earlier post.

 

This is both a business need which is painful as also a sensitive point with regard to customers.

 

That is the context, when I saw the following poster in a shop and I was very impressed by this initiative and also astute step. In a single stroke this Retailer has combined his business need with a shopper issue and has managed to create value all around.

• Value to the customer because they will benefit for no significant extra effort.
• Value to the business because, for no incremental cost, the Retailer is resolving an issue without having to run around for it.

 

This is what I call as a true customer orientation: a solution to a business need that clearly benefits the customer directly or indirectly.

 

So, customer orientation is not a separate, independent activity or department’s responsibility. It is about ensuring that every business activity of the Retailer delivers an end customer benefit and conversely, that also helps the business.

 

CLICK HERE to join the discussion about “Customer Orientation” on my page and share your perspectives and examples.

Indian Retail – Point & Counterpoint; The gain and pain from MRP

Once again my oft repeated grouse about which I have posted several times crops up again.

Times of India carried a news item titled “Chilled drinks drain the pocket as shops charge extra for power” and had the following chart which as part of this news report. This clearly shows how shops are selling soft drinks, juices, etc. at prices which are 10% to 25% more than MRP. Needless to say this is illegal and in February 2012 IRTC has been fined Rs. 10 Lakhs by New Delhi District Consumer Disputes Redressal Forum.

 

 

Who benefits from MRP? Or rather the key question is who follows MRP?

Today MRP has become redundant and market dynamics defines pricing at the Retail end. The fact that a majority of shops in India sell many products above MRP and get away with it is ample proof that this legislation is outdated.

The typical counterpoint to this is how consumers are protected against being overcharged because of MRP.

Is that a valid statement? Not at all.
 

As consumers we all pay what the shop keeper asks whether it is below, on par or above the MRP. This is not restricted to only shops and the same reality exists in Hotels, Restaurants, Malls, Airports, etc. The only saving grace is that many of the corporate and larger entities today source products which has “For sale in select trade channels” printed on the product. This enables them to pursue a differential pricing which is invariably above the usual MRP.

Even in the above mentioned article a shop keeper is quoted as saying “I can't possibly charge more because if I do, then customers will walk into the supermarket a few meters away and buy the product there at MRP.”

Sure, IRTC has been fined for charging more than MRP. But, how many others have been penalized for flouting the MRP rule in spite of this being an open secret. Interestingly, the Judiciary seems to have a different perspective about MRP. In 2007 The Delhi High Court passed a judgment that hotels and restaurants can charge more than the MRP. This was justified in the ruling because such places provide ambience and services to their customers. However, this does not apply to shops and retail outlets.

I wonder why?

By this same logic the “cooling charge” is not illegal as it does constitute a “service”. Anyways, the stand alone stores do charge above MRP if possible and also gets away with it. By the same logic, the self service chains also provide service and ambiance and should therefore be exempt from the MRP rule.

So, who is then left to follow this out dated MRP concept? Therefore, if every channel has a reason and logic to charge more than MRP, why have this at all?

Click here to join the discussion on my page

Picture courtesy - Times of India, Chennai edition dated 10th March 2013

Making your VM Visuals more effective

We had been for the mandatory festival shopping of clothes recently to one of the apparel chain stores. The often quoted fact of how visual merchandising influences a shopper by as much as 60% of the time was very nicely validated. Here is what happened and some insights from the experience for Retailers.

 

After having browsed through the various racks of Kurtis and other informal dresses, we had selected a few dresses and it was being tried out in the trial room. Somehow none of the shortlisted dresses were WOW and triggering the final buying decision. When I was walking around waiting to pay the bill (!!) I happened to see a mannequin which seemed to be sporting a very nice and well coordinated dress. It also helped that the mannequin was the right height and size to represent the shopper and gave a very good idea about how that dress would look on a similar person. I asked the customer service staff for the same dress combination, it was tried out and bingo, the sale was through. Great VM work by the Retailer.

 

Now comes the other side of the story. While waiting near the trial room we noticed several large visuals of models in very nice dresses. The sensible part of these visuals was the inclusion of a short description and mention of the price. Instead of just being a feel good factor these VM visuals had become extremely powerful POP and sales promotion aids. We then asked the store staff for one of the dresses and the comment by the staff “We don’t have stock of that dress. A few pieces came and has sold out. Many customers see this poster and ask for the dress. We don’t have stocks.”

 

We persisted and asked about the arrival of fresh stocks and the staff had no idea. She was even doubtful if the stocks of that particular dress would come at all.

 

No doubts, VM and visuals are extremely powerful influence on shoppers and the Merchandising & VM team at that Retailer have done a good job of leveraging the same. However, it could have been even more powerful and the sales impact could have been significantly more if some more basic things had also been done.

 

Some inputs from this experience for all Retailers, especially fashion ones are -

 

• Plan your mannequin displays and make it relevant. It is not only about the ensemble you want on the mannequin but also the size and proportion of the mannequins. A petite, very thin, mannequin might be a great idea to attract younger shoppers. It might be a better idea to use “plus sized” mannequins for stores where the shopper profile is in the older age group.
• Needless to say, accessorize, match and present a holistic solution. We ended up purchasing the complete combination. However, the mannequin did not sport any accessory like a wide belt, etc. Maybe a display of such an accessory would have included that also in our purchase.
• The use of VM visuals as POP and sales promotion aids was very impressive and I don’t see that being adopted by many Retailers in India. It is a great idea and if done tastefully it will not compromise the look and feel factor while having the positive spin off on sales.
• The most important factor is to plan, track and replenish stocks of SKUS used in such display and visuals. It requires some effort but it is not difficult to create a separate inventory and sales tracking mechanism for only these SKUs. In fact, it could even be manual and done at the store level, then consolidated at a region or state level for reordering. Even assuming that this was being done at the store we went to, it was obviously not working and imagine the loss of sales opportunity

 

Lastly, as I often say in my classes and training programs, Retail works like a ball bearing and if each and every component of the bearing does not move freely while being interlinked, the whole bearing freezes and brings the machine to a halt. Good ideas need great, outstanding execution.

Coffee beans and perfume selection, a potent combination

I had recently visited a standalone apparel store in Chennai and as most male shoppers do, was prowling around waiting for my family members to finish their browsing. When I neared the perfume counter, I saw an interesting and curious thing. There was a small container with lots of coffee beans kept there. Coffee, as you know has a string aroma and my first thought was that some new perfume with a coffee fragrance (Like the chocolate deodorant!!! Ugh) had been launched.

As a Retailer at heart, I was curious to know about this and asked the counter salesman. He explained that the coffee beans had been kept there to help shoppers make the right choice when purchasing perfumes. Frankly, this was something new and I asked him the logic. He went on to explain that the aroma of coffee beans were supposed to cleanse our olfactory sense (sense of smell).

While it did sound very interesting and innovative, I dismissed the explanation as a sales gimmick as I have not seen this in any of the large lifestyle stores which have far bigger perfume counters offering a wider range.

When I returned home, this was nagging me and I checked i out on the internet and realised that the salesman had been correct.

One site says “Our sense of smell is really powerful but it tires really quickly. We call this tiring “olfactory fatigue.” So, when you smell perfumes/fragrances, smell no more that 3 at a time before you “reset” your nose by smelling coffee beans. If you were to smell 4 perfumes in a row, you are not smelling the 4th one.  Smell 1, 2, 3 “reset” then 4, 5, and 6, etc. So the next time you are at a fragrance counter that has coffee beans, try it.”

Now the larger question is that why the large chain stores do not implement such a simple and customer enabling idea?

My earlier posts and articles about customer orientation and ownership of the customer experience highlight the lack of such a simple step. Retailers need to step into the stores more often, think like the customers and implement simple but effective customer enabling ideas. This is possible only when any retailer thinks from a customer perspective which is in turn possible on when they walk the store often enough and interact with customers. Sitting in conference rooms and devising grand strategies without the feet being firmly on the ground or rather walking around in the store is a sure fire recipe for failure.

Word of mouth in the social networking era

The buzz around social networking sites has been growing over the years and in the recent past we have seen many corporate trying to leverage the same. Unfortunately, the rules of the game have changed and corporates are still getting used to these. However, Indian Retail is still a far cry away from truly leveraging these media options. Barring the few mandatory Facebook pages, there is very little that is being done. Even these fan pages are fairly static in nature which defeats the very purpose of social networking sites. I had lamented the lack of initiative by Indian Retail in leveraging this excellent customer connect platform in my post "Using Social Networking Sites"

Recently, when travelling out of the country I came across this advertisement by a leading retailer.

The picture is self explanatory as to how well this Retailer has leveraged the social networking site and more importantly how the positive comments have been taken forward into a conventional media (Newspaper advertisements). Needless to say, this will help create a good and positive cycle of increased word of mouth amongst customers and more importantly potential customers.

However, this approach is not for the faint hearted as social networks cannot be controlled and manipulated to reflect only positive things. One needs to work really hard to be able to carry this effort off in a successful manner.

Recently in one of my training sessions I was explaining how well this media lends itself to both corporate as well as store level marketing initiatives. Although the participants were very excited and wanted to implement the ideas given by me, they were diffident about the corporate bureaucracy which will eventually kill the idea.

It is not impossible but definitely not easy. Will Indian Retail move to leverage this wonderful new customer connect opportunity?

Leveraging Catchment Area Analysis

Continuing along my recent theme on Customer Service, there is an excellent tool to enable great customer service. This is the detailed analysis of one’s catchment area.

It is also one of my favourite training sessions, which is a big hit with participants as this topic can be conducted as a conceptual program or a action plan oriented workshop. Till date I have conducted this session for the staff of several Retail organisations.

Recently I witnessed a store staff lose out on one such opportunity to create customer WOW and gain further loyalty. I have written an article on this topic, which has been published in “The Hindu Business Line”.

This is the link to the article - Who's buying what in your area?

Please do share your comments about the article.

Creating Unsustainable Expectations

Waiting at the billing counter has always been a touchy and sensitive point with customers. They are at their irritable best if there is even the smallest of delays. In fact this factor is now one of the key drivers for customer to revert to their trusted neighborhood store for basic/ functional purchases. Make a phone call and be done with it.

So, it was refreshing to see an Indian hypermarket take the bull by its horns and tackle this issue head on. They released advertisements about the “No more long billing queues” and branded it as the Green Line revolution.

Quite frankly I thought that they were quite ambitious in their claim and was watching to see how this would pan out.

I shared this advertisement in several of my classes and invited inputs from the students in the context of customer service and customer satisfaction. Initially the feedback was very positive with most students mentioning how this was a welcome move and they would try this store just for this service factor.

Cut to a few weeks later. This campaign has been on my mind and I was keen to see how successfully this Retailer had managed this service issue and what had happened.

In order to maintain objectivity I asked another class of mine to do a field visit to various stores including this hypermarket. They had not been showed this advertisement and there had been no discussion in this regard in the class.

The feedback was rather shocking although along expected lines. The Green Line initiative was highlighted as a positive and the message registered well with the student customers. Although under the negatives for that store long lines and a long wait for the billing was highlighted. The net take out was that the claim was not supported in reality and was a huge disappointment.

Obviously this Retailer might have ended up irritating more customers than winning them over with this initiative and the fact that this is no longer mentioned in their advertisements seems to validate my point of view.

So, what went wrong?

It was creating unreasonable and unsustainable expectations. Service delivery is not only ensuring great service but also setting the right expectations. In this case the customer expectations would have far exceeded the delivery that the Retailer was prepared for. This is not uncommon and I see this often enough.

In fact the reality is that most customers might have not even registered the word “long” in the advertisements. They would have registered the message as no more queues.

This just another case to the point that Retail marketing is a 360 degree exercise and starts from the home where customers get some communication from the Retailer. Wrong or misleading communications like “Upto 50% Off”, with “Upto” lost in the small print or claims which are not sustainable will hurt more than help.

In Retail everyone should get a first hand feel of the store reality by spending time there and ideally working at the store often. Then they will be wary of such actions which are not sustainable. Remember, Retail is all about execution, execution and execution. Brilliant ideas conceived and presented in meeting rooms counts for very little in the reality test of how the customer actually experiences the same.

Sense and Simplicity

Retail is all about common sense is an adage I have heard and also propounded often enough in my various posts and in my book “The INDIAN reTALEs”. Especially with regard to good execution, the simpler the idea, better the execution.

In this context I happened see a film about a design management firm called IDEO which is a US based one. They were showcasing their design management process to come up with a better shopping cart. It does sound a bit funny. A better shopping cart? What’s wrong with the current ones?

They figured out some of the key problems in current shopping carts and came up with a simple solution of a frame with wheels which can hold two baskets. This solved a variety of problems like pushing the carts into crowded aisles. A family can shop at the same time using the baskets and then put them on this frame. The wheels turned 360 degrees so, maneuvering it was simple, etc.

In the Indian context a similar idea was implemented in a national chain and proved to be successful. However, a problem unique to India because of the store’s smaller size is crowded aisles, especially if there are pillars/ columns in the middle. Even the frame based trolley would be cumbersome, especially during crowded times.

A few days ago I happened to visit a supermarket where I saw this amazingly simple but hugely effective innovation. A basket with wheels. The wheels turned all the way making it extremely maneuverable and it has two sets of handles. A long one to wheel it along and two short ones to carry it. Simply marvelous. It was easy to use and a great idea. Simple and sensible. Exactly the kind of ideas that are needed for Indian Retail. Please see the picture for details.

One can ask what is so great about this. After all a basket is used by shoppers to purchase small quantities of items and why take the trouble to put wheels on them and incur the extra cost. It has been proven that if shoppers are given a basket they end up shopping more. In fact this used to be a SOP in some of the store chains I have worked with. Every shopper was given a basket as soon as they came in. If this study is correct and has merit, the contra is also true. Shoppers stop picking items when the basket becomes heavy and even one PET bottle of any soft drink can make a difference. So, by introducing this innovation, this Retailer has enabled the shooper for an easy shopping experience while eliminating the drawback of using a basket.

As mentioned above, sensible and simple.

What is the need regarding MRP!

A few days ago I saw a quarter page advertisement highlighting MRP (the maximum retail price) and how complaints can be lodged, etc. etc., as you can see on the picture above.

I have always propagated doing away from MRP as the context has changed in India whether it is in urban or rural markets. MRP is no longer adhered to or relevant and the links to my other posts are as follows for reference.

- Do we need MRP?

- The MRP scam!

Now consider the following –

• In most places they charge more for soft drinks and claim it is for cooling! When most consumers are aware of this and pay up I wonder why no one from the Department of Consumer Affairs is aware of this reality.
• The same is the case in any monopolistic market context. Be it a multiplex, Hill Station, Tourist spots, etc. If you want something you end up paying whatever is named as the price. I wonder if the fact is that officials of this department are so hard working, they never frequent such places and are therefore unaware of such practices.
• Most of the overcharging happens in the vast network of railway stations and many airports. These are government run institutions. I wonder why no one has happened to notice this open disregard for the MRP?

I guess these Shop Keepers/ Retailers know the fact about market driven economy better than the Department of Consumer Affairs.

Especially in the Indian Context where filing complaints is easy but getting redressal or a solution is hardly if ever to be found, what is the purpose of such advertisements? Just blow up public money because it was allocated to this department in the budget???

In that context let me share a personal experience. For some weird reason voter id cards have been given to everyone in our apartment excepting our household. Multiple complaints to the local corporation and election commissioner’s cell did not have any result. Finally I filed an online complaint. All I have to show for all this is a nice pre printed post card saying that my complaint has been received and will be addressed soon by the corporation commissioner from the Chief Minister’s special cell. This came in 2009 and I am still waiting!!

Using social networking sites

When one speaks of the internet in the context of Retail the immediate association is with online shopping. However, there is a very powerful use of the internet that shoppers can leverage to become smart shoppers and getting more value for their value.

I had written about this for The Hindu Retail Plus and the link to that article is as follows -

Using social networking and the internet

Pop-up Retail

An emerging retail trend is that of Pop-up Retail or Pop-up stores. These are temporary stores that pop-up at any location, draws in crowds, generate sales and shut down. These could be used by any category of products but is largely used by apparel to create interest in the new lines and showcase the same.

 

It is a great idea and can be used in a variety of ways.

• Showcase a service which is difficult to communicate like how Singapore Airlines did last month.
• Demonstrate usage of a new product like how Nokia did for OVI services or Canon did for their products.
• Open a pop-up store in a new catchment or city where the regular store is expected to open soon to give the shoppers a feel of that store.
• Leverage seasonal events and festivals to reduce shopper overcrowding at the regular outlets.

I saw a great pop-up store initiative by Sri Krishna Sweets which is a chain of sweet shops as also is into restaurants. We all know the crowds that throng stores, especially apparel, sweet and firework stores during Diwali. This initiative must have been to reduce the crowd at the regular outlets as also increase penetrations by getting new customers to purchase the sweets as also get a taste of the dishes at their restaurants. Some interesting innovations, which I think will make this a sure fire hit are as follows –

 

 

• Centrally located at the heart of Chennai in a large wedding hall, ensures ease of access.
• It is positioned as a 48 hour event starting at 8 am on 3rd Nov. When most shops anyways are open till almost mid night during this season, this has upped the ante.
• 10% discount between 11 pm and 5 am ensures some amount of shoppers during the most lean period. Especially with Diwali being on 5th morning. I would not be surprised if customers actually went there on 5th early morning to make purchases.
• Apart from sweets being sold, there are food counters of various cuisines
• Plus, some of the sweets are being made fresh and hot for sales, which might again prompt people to go there on 5th morning.
• A thought to keep children entertained was evident from the clowns, a stilt walker, etc.
• Lastly to bring a festive flavor and also interest the adults there were traditional Tamil Nadu folk dancers and even one of those roadside parrot astrologer.

 

 

Needless to say, it was advertised and there was a sizable crowd by 4 pm on the 4th. Well planned and more importantly well executed. Check out the pictures and videos to get a feel of this pop-up store, which I took after taking the permission of the person in charge who seemed quite happy to have this initiative being noticed with interest.

 

Best wishes to all the readers of "An Indian and A Retailer" for a Very Happy and Propserous Diwali.

The MRP Scam !!

I have been writing and speaking a lot about the irrelevance of MRP and also how most establishments flout this rule with impunity.

See the scanned picture of the bill which illustrates the point.

Recently we went to a restaurant for dinner and ended up paying Rs. 125/- for a can of Diet Pepsi!

Most restaurants get around the MRP rule by serving the soft drinks in a glass and billing it as soft drink. Whereas in this place they happily brought the can to the table and have blatantly charged Diet Pepsi at almost 4 times the MRP!

Adding insult to injury is the fact that this is printed on a tax invoice. This means that such bills are supposedly inspected by the sales tax officials once in a way. Does that mean that the sales tax department is not aware of the MRP rule or in true bureaucratic style one arm of the government is not bothered about a violation with regard to another!

It all comes back to you!

In my life as a Retailer the most common feedback/ complaint has been about bad service.

• The staff are not helpful.
• They don’t know anything
• They are rude.

Etc. Etc.

However no one pauses to thing how rude, insensitive and demoralizing we are as customers. Today, while shopping there was a pregnant lady who insisted on barging in to ask questions when the staff were attending to me. Subsequently, even while billing, she landed up again and bombarded the cashier with questions although the cashier was billing my purchase. Finally the cashier turned and asked her to please wait at which point the lady turned around in a huff and walked away.

Before someone justifies this behavior to the hormonal issues and stress related to pregnancy, let me ask : how often does one behave this way - man or woman?

Very often is the answer.

Is it any wonder that service levels are dropping?

At the end of the day it all comes back to you. Be a boorish, insensitive and rude customer - you get bad service. Watch this funny video which captures the essence of what I say.

Next time you shop, try smiling, wishing the staff, put back things that you dropped from the shelf and you will see a whole new level of customer service unfold before you.

Video courtesy – Neo Naem, Facebook.