Groupon...Is it good or bad for your business?

I have been doing a lot of reading this month. Reading articles,e-books and white papers on Retail and Social Media is a big part of my job as a Retail Consultant. Most business owners are far too busy operating their businesses to do a lot of reading. I summarize and present the information I think the owner needs to know.

Are you familiar with Groupon? I learned about it through an interior designer friend of mine. It looked like fun. Money saving coupons in your in-box. Only good for 1 day! I signed up. But lately,the 'deals' seem to be getting more and more outrageous.

Today's 'Deal' is a great example:
ONLY $149 for an In-Office ZOOM Teeth Whitening treatment! A $450 Value!! OR...$69 for an at home Teeth Whitening Treatment, a $250 Value...a 72% DISCOUNT.

I don't know about you...but I simply don't believe this. Not one word of it. I was a retailer for almost 20 years, and the one or two times I offered something at a 60% discount...I lost money for months! The REASON I offered the discount as a last resort,was to clear stock very late in the season that NOBODY wanted. Wool sweaters in July. Regular price $89.00 Sale price $19.99. I still SHUDDER at the memory.

If these dentists want to offer a discount on teeth whitening, do they pay their hygeinists 72% less wages to perform the treatment? WHY is teeth Whitening ON SALE in the first place? Is the treatment flawed in some way? If I purchase this 'DEAL', will I be able to use it in a reasonable amount of time? Will the hygeinist doing the treatment use only 1/2 the product? Do You Care? Or do you think that the original price of $450 was SO artificially inflated, that $149 is probably closer to the REAL price of the treatment?

If you are interested in reading a fascinating 11 part series on Groupon, complete with real case studies, and pages of comments, pro and con...visit Bob Phibbs Blog. He calls Groupon the Worst Marketing for your local business. Here's a quote:

" Just because millions of merchants have fallen under the spell of Groupon, a PR juggernaut, and their like, it doesn't mean you should. It's a killer alright. a profit-killer." Bob Phibbs-The Retail Doctor

Remember what your mother told you about following your friends off a cliff? This series is eye-opening...and demonstrates what happens when you don't adhere to the old adage, 'if it sounds too good to be true, it usually is.'

I would appreciate your comments. If you need an opinion before signing on with Groupon...I would be happy to speak with you. Before another Retailer gets hurt!

http://www.retaildoc.com/blog/groupon-worst-marketing-business/

Customer Service: Version 2.0

This is a very cute baby. This baby is just learning to talk, so communicating with him is a bit of a challenge. Sometimes he seems to be saying something and I don't understand...and I expect it's the same situation for him, with me.

I read a great article on today's customer, and their expectations around customer service...and it made me think about babies. Customers seem to need such care and attention these days. They also will tell you some things that you don't always understand...until they never come back to shop at your store. It's then, you wished you could have had a real conversation to determine what they wanted, or needed...but sometimes it's too late.

The article is titled: Customers want relationships, not low prices. Please,click on this link and have a look. I think outstanding customer service should ALWAYS be considered the number one priority of your business. This article examines customer service from the CUSTOMER'S point of view. I think you will find it worth reading.

http://www.retailcustomerexperience.com/article_print/177147/Opinion-Customers-want-relationships-not-low-prices

My New CRC Website: First Steps

Shortly after New Years Day, I started working with a company to design my new CRC company website. I am going to blog about the various steps involved in building a B2B website from scratch.

Step one: I contacted someone I had previously worked with about possibly designing a site for me. I knew this person, as he had done some work on my previous Retail Store's website. We had one or 2 phone conversations regarding what I thought I wanted, and he sent me an e-questionnaire entitled:

Your Organization and Your New Website. It contained approximately 30 questions. Some questions were around who I was as a business, and some questions were around the actual design of the site. I filled it out on-line, and e-mailed it back to him.

After reading my responses, I was contacted again, and invited to a face to face meeting. We went over the questionnaire in more detail, and was given a price quote. If we were to move forward, I was to be given a formal quote outlining the services I was to expect and I and needed to provide him with a deposit of approximately half of the final price. I agreed to get back to him in a day or so.

To be continued...

The 2011 Retail Recovery

I just got back from a trip to the Okanagan. I was only gone for 5 days...but I really had a LOT of e-mails waiting for my attention in my 'IN' Box. So, for the last few days, I have been sorting through them. I realized that of course, it is January! January seems to be the month where if you are studying Social Media and or Marketing, as I am...every organization is coming up with a recap of last year...or a forecast for this year!! I have downloaded and printed my fair share of relevant articles, and e-books in the last few days, but this morning I read something that really got me thinking.

I receive an e-newsletter from a company called Retail Customer Experience. They were reporting on the 2011 National Retail Federation's Convention and Expo in New York. One of the speakers was Matthew Rubel: Chairman and CEO of Collective Brands. He was one speaker on a panel that was discussing " Retail's Prospects For Recovery in 2011". I found his quote to be brilliant:

" Focus on your customers" he said. " Innovate for them. Know how they shop and why they shop. Buy low, sell high, keep your overheads low. Anybody who goes beyond those fundamentals will wander."I feel this quote is incredibly timely, because it's so simple. I believe that with the huge amount of information we are bombarded with on a daily basis, comes the feeling that life is far more complicated than it used to be. This quote cuts to the HEART of having a Retail business. Keep it simple...and you will prosper. Remember the basics...Look after your customers, and watch your bottom line.

I think that this is great advice, and a little wake up call for any of us trying to over complicate what is essentially a very simple industry.

Here's to a GREAT 2011!!

January means getting Organized...

Happy New Year! I don't know about you, but January means one thing to me: ORGANIZATION!! I love this month for 2 reasons: wiping the slate clean from last year, and planning for this year. I merchandised this section, and a few more at Langley's Well Seasoned. last week. It was time to assess what happened during this year's Holiday Season. The easiest way to do this, was to have a good look at the stock left in the store...and analyze what percentage was left in each category, in each section. Once the new year starts, it's time to have a look at your store and decide what still works, and what doesn't. It becomes crystal clear what items sold, and what items did not. This time of year, when stock levels are at their lowest,it's a good idea to count what you have, and if need be, move some things around. Freshen it up. I guarantee that you will have customers coming in and asking you when you received this 'NEW' stock...that is not new at all...just front faced, and displayed in a new and different way. Don't waste this time! Take a good look around your store and be HONEST with yourself. How do things look? What fixtures need replacing? What needs to be re-painted? Make a plan...and get started. Aside from the physical items and stock in your store, what else do you need to work on this year. Do you have an advertising plan in place? Have you been planning to launch a monthly newsletter? Do you have a business facebook page? Do you want to learn how to tweet? Do you have a website, and does it work for you?

I have decided to have a website built for my business: Cavern Retail Consulting. As I have started to study the field of Social Media, it has become clear that there are many things that I could offer with a great website. I am very excited to participate in this process. My last website, was a kit website, purchased on a whim, to advertise my stores to the WORLD!! I knew next to NOTHING about computers, or the world wide web. I remember going to a local Chamber of Commerce luncheon, and listening to a speaker speak about the future of small business. He said that ALL small businesses could benefit by having a website. After the talk, he came to see me at the store, with a LAPTOP COMPUTER...and showed me a few templates I could choose from, to start my journey into the future. I chose one, and paid the grand sum of $375.00, filled out a small questionnaire about my business, and after signing a hosting package etc,etc...I had a website that did absolutely NOTHING. I think in today's terms, they would call it an on-line brochure. I remember continuing to pay the monthly fee, and not understanding what this magic website was supposed to be DOING for my business. Well you know what they say...Times are changing...and if you aren't...perhaps your competition is. This time around...I am doing things differently!

I am going to be chronicling the process of creating my NEW website in this blog. I hope that if you are considering changing or updating, or creating your own website this year, you will enjoy following the process.

Next week will be the 1st installment. The NEW CRC website...I can hardly wait!