Tuesday, January 12, 2010

Survive Using Educated Optimism

In a CNBC interview at this week’s National Retail Federation’s annual convention in New York City, Stacy Janiak said store-based retailers have reason to worry about customers equipped with smart phones: “Transparency is about a consumer sitting in your aisle in your store and being able to find that same product at a lower price at another store or online…, and buying it right there over the phone…. [Sales] can walk out the door, even in your store.”
     Ms. Janiak, U.S. Retail leader at Deloitte LLP, reflected a tone at the NRF convention of needing to meet difficult challenges in 2010. News is that last month, U.S. import cargo volume picked up for the first time in 2½ years. That’s good. UPS continues to cut jobs. That’s bad.
     Equip yourself to succeed by maintaining a realistic optimism. There’s a good body of psychological research—much of it having come from University of Pennsylvania—documenting that focusing on the bright side tips the balance toward business success. Now, it’s true this body of research is currently being challenged in a book titled Smile or You Die: How Positive Thinking Fooled America and the World. Author Barbara Ehrenreich argues that overlooking the negative leads to catastrophic decisions.
     I agree. With both sides of the argument. Pay attention to retailing realities. Panelists at the NRF confab are saying how the survivors carefully monitored inventory levels. But motivate yourself and your staff by also acknowledging and embracing the good news.
     This same balance holds when servicing customers. In general, customers buy more when sales staff are happy. But research from Northeastern College of Business Administration says that if a customer has had some serious setbacks, chances are they won’t want to buy from a salesperson showing off a much better mood than their own.

For your profitability: Sell Well: What Really Moves Your Shoppers

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