Market to the Level of Fear

Depending on where you are in the country, people are still experiencing high levels of fear and trepidation about going to stores, gyms, restaurants and salons. While you may feel comfortable about your safety standards and ability to keep customers safe, that message and the options you offer to customers based on their fear levels are critical for improving business.  This has nothing to do with discounting and often, offers the opportunity to charge premium pricing which customers will be willing to pay in order to feel safe. Here are some examples.

GYMS

Even with limited capacity, gyms are finding it difficult to fill their classes. One successful initiative is to create “pod classes” in which people can bring their own pod of friends and family to work out. You can charge a premium price for these classes and book them during off peak times.  Premium priced private sessions are also resonating with customers who desire a workout without the risk of strangers in the class.  Offer these options to non-members for the time being to add revenue and introduce new potential members into your pipeline.

SALONS

The same principle applies to salons. Create a certain amount of solo appointment slots, in which only the stylists and the customer are in the salon. This is a great way to fill in slower times and again, charge premium pricing.  Alternatively, if you have the ability to set up a private room for appointments, you can book these at a higher price as well.

RESTAURANTS

Even if you are permitted to open for indoor dining, there are many patrons who simply will not eat indoors for the time being. No specials, no discounts and no marketing will entice them to do so. Restaurants have the ability to offer multiple options that cater to all levels of fear; curbside, delivery and outdoor dining. Outdoor dining, even in cold weather, is the only option for many people.  However, the experience you provide needs to be enjoyable as well as safe. Add speakers with music, candles and pillows to optimize the experience.   There are also multiple options for outdoor dining, including open air and igloos for those who are comfortable with that environment.  I have seen restaurants that offer all these options, but charge a premium for the private and warm igloo.  Offering a unique outdoor experience will give you a huge advantage over competitors.

STORES

If you own a retail store, your ability to sell virtually or online is not an option now.  The only way to introduce certain customers to your merchandise will be through private virtual shopping appointments and selling through social media platforms and emailsif you don’t have an ecommerce site.  Private in-store shopping appointments are another option.

From the virtual perspective, you can host watch parties and Zoom coffee shops that build a sense of community as well as a shopping opportunity.

Remember, we are only entering the recovery stage which is very different than a return to normal. This is a time to be creative while being empathetic to consumer fears.  People are actively looking to support local business. It’s your job to create the environment in which they feel comfortable doing so.

Until next time remember,
you can do this!
Angel

4 Questions for Business Clarity

What do you really want from your business?

To feed your family?
Leave a legacy?
Start an empire?
Work less?

According to Bloomberg, eight of our 10 businesses fail within the first 18 months. In retail, there’s a 53 percent failure rate in 4 years. For restaurants the failure rate is even more unforgiving.

So whether you’re in the middle of writing your very first businesses plan or celebrating your 20th business anniversary, take a step back to get crystal clear. Because clarity is the power play. It provides the framework for decision making. It takes the stress out of your daily operations. In short, clarity = confidence.

Start your journey to clarity by answering these four questions. Jot the answers on a sticky pad and keep it where you can see the answers daily.

1.   What makes your business unique, different or special?

I was watching Fleabag on Amazon Video and heard a phrase that resonated with me. The main character was describing her old boyfriend as a person of insidious, overwhelming mediocrity. It made me laugh but it really hit home because so many of the businesses I visit are at best, boring. And boring is a one-way ticket to bankruptcy these days.

If there are stores or restaurants similar to yours in the immediate area, how can you possibly differentiate yourself to potential customers? Do you see the same clothes as a boutique down the street? Are you serving the same burgers as five other restaurants in your area? Can a customer get your products cheaper online or at Costco?

Whether it’s your product selection, level of service, pricing or delivery channel, how do you differentiate your store or restaurant from the rest of the pack?

2   Who is your target audience? Be very specific.

A successful concept starts by filling a need or void for a very specific targeted audience. To put it another way, it’s not about what you want, it’s about the customer you serve. And the wider the net you cast, the more generic your concept and the bigger the opportunity for failure.

A concept looks something like this: My business solves (this problem) for (these people) by (doing this).
By completing this concept statement, you should be able to better define your target audience.

3. What is the life you’d like to lead as a business owner?

I love this question because it’s not one we often take the time to ask ourselves.  I know for a fact the most retailers are definitely not living the life they want. They feel tired, unappreciated and underpaid – and often scared. It really isn’t good for the soul or the wallet!

So what does a better life look like? Working less? Expansion? Saving for retirement? Flexible hours and duties? What do you want?

4.  What do you need to know more about to make that life happen?

This is a biggie and I’ll tell you why. So many owners I work with seem to put a hard stop on learning once they’re up and running. They open the doors of their store but shut them on learning new things.  You have to keep up with new ideas, methods, opportunities. New competition. New technology.  The world is turning fast and you need to, at minimum, stay with flow, get ahead of it or find your own detour that works. Digging your heels in the sands of the past will find you with an unfavorable balance sheet very quickly.

It you’d like a copy of the 4 Questions for Business Clarity Worksheet, click here.

One easy way to get your staff in the spirit to sell more this holiday season

Looking for ways to get your staff pumped this holiday season?  I know one surefire way to light a fire under them….and that’s to pay them!

       Even if money is tight, there are ways to incentivize staff for selling more without                     being a drain on cashflow or margins.

       Even if you don’t ordinarily have a bonus program, there’s no reason not to implement
one just for the holiday season.

Most retailers earn 20-30 percent of their annual revenue during the holidays.  This is the time of year you want to maximize every single sales opportunity! And incentives are a great way to motivate staff.

Here are some DO’S and DONT’S for setting up a successful bonus program.

DO
Understand what motivates your staff. What makes them drool? Depending on their age and tenure, it might be time off or perks like merchandise or gift certificates. It doesn’t always have to be money.  

DON’T
Just offer a blanket reward on all items sold. A bonus program needs to work on both sides. That means your employees get incentivized for meeting their goals – and yours!

Let’s say for example, last year's holiday sales were $100,000 and your goal is to increase that number by 20 percent this year to $120k. Your staff incentives should be based on achieving or exceeding this year’s goal. That way any additional commission or bonus you’re awarding is coming out of new revenue.

DO
Consider segmenting
Let’s say you’d like to grow sales for a new line or service. Perhaps you’d like to increase average sale. You can create a bonus program around any specific segment of business you’d like!

DO
Tier the bonus structure. Add even more delicious opportunity for your staff after they’ve hit the goal. Using the example above with a goal of $120k, add an additional incentive if you reach $130k. In sales, we call that a BHAG (Big hairy Audacious Goal.) You’d be amazed at the enthusiasm you can generate around a big, fat opportunity.

DO
Train. Train. Train.
Just implementing a program isn’t enough. You need to host regular training to help your staff achieve their goals.

DON’T
Be afraid to instill a little competition among your staff. Most owners I work with are afraid that competition is divisive but it can create a ton of energy and ultimately, great results!

DO
Make sure your goals are reasonable and achievable. Goals should be a stretch but not so stratospheric that they can’t possibly be met. Shooting too high will only discourage your staff. 

Good luck in putting together your bonus program! If you have any questions, email me at success@angelcicerone.com

Until next time remember,
You can do this!
Angel