I’ve often spoke of the importance of making sure your proposition includes how the customer stands to benefit from decreased costs, increased productivity, and recovering lost revenue or profits. While many retail customers may still buy based on these factors just like B2B customers, there is an overwhelming “X” factor that is more present in their buying decisions. Retail customers often “buy” because it improves their quality of life. Whether the product or service makes them feel good, provides entertainment, or simply puts a smile on their face – the purchase all comes down to improving their overall life in some way.

While this can still happen in some B2B situations, it is far more present in retail sales. Can you imagine a retail salesperson providing a cost-benefit analysis for a prospective customer who wants the latest and greatest television or MP3 player? The benefit is that they will be entertained in their life greater than before and the cost is what they can afford or are willing to pay to get it.

In my opinion, it is not the job of the retail salesperson to stop a retail customer from buying – even if making the purchase for their own “retail therapy” is the primary motive. Unlike most B2B sales, there are many times in retail when we don’t even truly need to understand why the buying is taking place. Retail customers buy for many reasons, but the most important reason is simply to improve their own life experience.

Popularity: 28% [?]

It’s easy to snigger at people who try to buy their way to happiness with a bit of “retail therapy”. In fact we know from the research of psychologists Leaf Van Boven and Thomas Gilovich that experiences make people far more happy than buying things – so their efforts are rather misplaced.

But perhaps we shouldn’t feel so superior. Those of us in business often fall victim to a similar malaise: the curse of the “next big thing”. It’s the business equivalent of retail therapy.

How many times in business have we been seduced by the prospect of a new marketing or sales system offering us “all the leads we can handle” or to “grow our business 500%”?

In truth, we know what works: get a good marketing & sales approach and stick to it.

The absolute worst thing you can do is flip backwards and forwards between approaches, never giving any of them the time to work. Try referrals one week, cold calling a few weeks later, pay-per-click a few weeks after that. The result: guaranteed failure.

But it’s just so tempting. Sticking to somthing is hard work. You have to grind out results activity after activty. The ads for the new sales method tell me it’ll be easy; a few hours a week; any fool can do it.

In my case, I’ve partly learnt the lesson of “next big thing therapy”. I don’t flip between methods: I stick with what i know will work even if something comes along that claimes to be even better.

But I’m not all the way there yet. I may not flip between new systems – but I still buy them. My curiosity gets the better of me. I have to know whether what people are claiming is as good as it sounds (it rarely is of course). It’s my own version of retail therapy.

Popularity: 25% [?]

People LOVE to buy… There is no question this is true. A little research on Retail Therapy supports the idea that when people feel bad they want to go out an buy things. The real question is why dont retail sales people help people buy? This is going to be a short post, and really more of a spark that will hopefully start some good conversation, but lets think about this for a second. When was the last time you had a REALLY good retail salesperson? How many times have you WANTED to buy and walked away with nothing because nobody gave you the little nudge you needed to make the purchace? Skip hit on the idea earlier this week in his post that most retail people see them selves as customer service people not sales people. Lets think about that for a second though… Isn’t helping people to buy things they WANT providing good customer service?

The retail industry needs help right now. They are stuck in a downward spiral and there is only one way out… Sales Training. Retail sales are down, but the mall is not empty. The problem is no one is buying despite low prices.

Retail managers… does this look familliar? I cut prices to drive up sales, but now I have a reduced margin. To solve that I cut costs (People usually), but revenue is still not where I need it so I cut costs again and agan and again… There is no end to this cycle other than bankruptcy.

The real solution? Retail organizations need to focus on helping people buy by improving sales skills instead of cutting prices. Imagine what would happen if a organization with only 1 Million in sales improved by 1% because of a $3000 investment in sales training… Ya, it’s only a 10K improvment but 7K is positive ROI and you have it every month from here on out… AND you did not have to reduce margins to get it. Just a thought… Now, what do YOU think?

Popularity: 27% [?]

In some ways ‘buying’ is one of the oldest behaviours we as a species possess. In the guttural instinctual under layers of Homo sapiens psyche it can be argued that we are still driven by a need to possess things in order to live. Every life form on the planet has this basic need – I remember watching a documentary on foxes narrated by the wonderful David Attenborough explaining that when a fox entered a chicken coop and killed all the chickens it wasn’t a random instinctual act of aggression but instead an opportunity to ‘make hay while the sun shined’, a fox would eat their fill but then take the rest of the chicken carcasses and bury them in strategic places so that in harder times it had a steady food source.

Even in such hard financial times as we face today it is perhaps difficult to contemplate that the majority of people on this planet don’t have the opportunity to possess all they need to live comfortably. Therefore, the act of buying for most is an act of therapy in itself by being able to provide for themselves and their family. For thousands of years we have toiled, fought and traded on the basis of being able to procure enough to feed and clothe ourselves. For thousands of years we, like the rest of nature’s animals have struggled with finding the resources to obtain what we need. Feeling good about buying something therefore is programmed into our very nature.

Only relatively recently with the industrial revolution, technological advancements in transport and refrigeration, have we been in a position where we have as a society been able to produce and earn more than our basic living needs require. That basic feeling of positivity when buying something is still there though. In the society that we are used to living in, where financial income far exceeds basic living we have a surplus of money that has fueled the increase in lifestyles we expect. Do we need absolutely everything we possess today? Of course not. We would feel bereft if we didn’t possess our cars, TV’s, ornaments, furniture etc. but most of these things are not, if we are honest, essential to our basic living requirements but rather are a product of our ability to buy what we ‘want’ rather than what we ‘need’.

For those of us selling, our products and services are purposely aimed at customers who have a combination of ‘want’ and/or ‘need’. Our jobs rely at some point on our ability to tap into the primordial therapeutic feeling of buying products based on one or both aspects. In a recession, the difficulty of selling ‘want’ based products is naturally more difficult as customers are more focused on ‘need’.

Yet, we live in a complex society that has also developed over thousands of years, and with society there is competition. Again, there are examples in nature where species that create society use property as a means to demonstrate their social standing. Those that demonstrate their ability to obtain the most resources are the most attractive. In our society, the same can be said. The most powerful members of society are the ones with the most property; they have the cars, the houses the absurdly younger spouses etc. In such cases their property isn’t based on ‘need’ at all but purely on ‘want’. They want to earn more, to have more power and to earn more respect. They don’t need even half of what they have, but by buying more they demonstrate their social standing. At the more mundane level of you and me, the term ‘keeping up with the jones’s’ is what drives some. Why? Because buying makes us feel good.

Feeling good about buying is built into our character whether it is based on buying through necessity or whim. For those in sales it is perhaps something to keep at the back of the mind when dealing with prospective customers that deep down there is a primordial urge to purchase and to feel good about doing so.

Popularity: 26% [?]

Skip Anderson: So Retail, how have things been going for you since our last session?

Retail: I can’t seem to get better. I’m still feel I’m struggling to make it through this recession.

Skip Anderson: What do you mean?

Retail: I had to lay off people last fall, remember? Well as it turns out, I need to lay off some more if things don’t turn around quickly. And it looks like they’re not going to.

Skip Anderson: What have you tried to turn things around?

Retail: More sales and deeper discounts.

Skip Anderson: Has that gotten you to where you want to go? Is it going to do that for you in the future?

Retail: I don’t know, I just care about making it through this downturn and I’ll worry about the future in the future, you know what I mean?

Skip Anderson: I do, Retail, I do. It sounds like you’re really worried about this. Might you be better off taking a longer-term view of things; that way, maybe you could devise some plans that would do two things: get you through the recession, AND get you to where you want to go down the road. What are your thoughts?

Retail: Well, Skip, none of the other industries are really doing that, so why should I? Look at the transportation industry, for instance. And the auto industry, at least in the U.S., is only doing it because they were forced to do it, kicking and screaming to D.C. to beg for survival and making changes in order to get their bail-out. Would they have done it if they weren’t forced to? Pharmaceuticals, the insurance industry, banking, argh! I can’t change if the others don’t.

Skip Anderson: In previous sessions, Retail, you’ve told me that you were concerned about making it in the future. Does that give you a reason to rethink your position?

Retail: I need to cut costs. Period. Customers just aren’t coming through the doors. And when they do, they’ll only buy the most deeply discounted items.

Skip Anderson: I’m just wondering if you could increase revenue by hiring better sales people. Are there better people out there looking for jobs now, due to this recession?

Retail: I don’t know. I haven’t looked. We took our sales force off of commission eleven years ago. That cut our labor costs almost fifteen percent at the time.

Skip Anderson: Has it improved your sales results?

Retail: In some of my categories it has helped. Look, we can’t pay people on commission any longer. Commission salespeople require better and more training, and in today’s climate, we just can’t afford that.

Skip Anderson: What about in the other categories?

Retail: It hasn’t helped sales results.

Skip Anderson: Would a better trained sales force increase your average ticket?

Retail: Yes, but like I said, we can’t afford to train those people.

Skip Anderson: Sometimes one can’t afford NOT afford to train salespeople, Retail.

Retail: It goes deeper than sales. It’s all about distribution, and pricing concessions from vendors, and smarter marketing spending. And that’s just the tip of the iceberg.

Skip Anderson: I can imagine there are many factors, Retail.

Retail: You’re supposed to be helping me through this! Why are you picking on me about my practices with my sales force?

Skip Anderson: Am I picking on you?

Retail: Look, I’m sorry, it’s just that it’s so confusing. [lays down on sofa]

Skip Anderson: Here, let’s walk through it together. Let’s say I’m a retail shopper, and I’m lucky enough to be able to afford a new dining table and chairs, and I need it because our old one fell apart.

Retail: [sits up quickly] That’s what we need more of! More shoppers like that, please!

Skip Anderson: Okay, but we’ve talked about that before, Retail. You can only create so much demand. At some point, you have to turn your attention to maximizing the results with that shopper, because if you don’t, they’re going to go somewhere else and buy, right?

Retail: Yeah, but like I said before, we just can’t afford to pay these people better, and training is out of the question right now.

Skip Anderson: But what if, by hiring better people, and paying them viable incentives, you get those shoppers to buy from YOU, rather than spend their money elsewhere?

Retail: I can’t afford it.

Skip Anderson: Could you afford it if you moved two or three times the number of units out of your store?

Retail: Yes, but I don’t see that happening.

Skip Anderson: That’s why I’m going to recommend a program we have for you. It’s for business sectors that need intense therapy, more than I can provide once every week or two. It’s a daily group for struggling sectors, and we’ll have time to give you the help you need. It will focus on helping you understand your options. You’ve got options, but when you’re this ill, you just can’t see them. We’ve talked about this before, but you need some more intense therapy to help you with it. Will you start in the program?

Retail: I’ll give it some thought. Do you have a brochure?

Skip Anderson: Retail, tell me what you want to think about.

Retail: How much does it cost?

Skip Anderson: Most insurance covers it, Retail. We can have our business office see if your insurance covers it.

Retail: We’ve cut our insurance benefits, so I don’t know if I’d be covered.

Skip Anderson: If you’re covered, can we move ahead with the program?

Retail: I need to talk to my partner, Online Selling.

Skip Anderson: Sure, that makes sense, Retail. But putting your partner aside for a moment, how do YOU feel about participating in the program?

Retail: I guess it makes sense. But I want to talk to Online Selling and see what she thinks.

Skip Anderson: What do you think Online Selling will say?

Retail: She’ll probably say go ahead.

Skip Anderson: So what you’re telling me is that you think the program makes sense. And you want to talk to your partner, but you think she’ll say go ahead and enroll in the program. So why don’t we get you enrolled today? Talk to your partner when you get home and if she doesn’t agree with it, just call me and we cancel your participation. But I’ll bet she’ll think it’s a good thing for you. Should we sign you up?

Retail: Okay.

Skip Anderson: Here, sign this.

Retail: Okay.

Skip Anderson: See how important sales training is?

Retail: What do you mean?

Skip Anderson: You never would have agreed to participate in the program if I didn’t know how to handle your objections.

Retail: I don’t know what you’re talking about.

Skip Anderson: Don’t worry, Retail. It will all become clear once you’re in our sales training program.

Retail: It’s sales training?

Skip Anderson: Yes, it’s sales training. It’s just what the doctor ordered. Welcome to a new chapter in your business.

Retail: I don’t really see myself as a salesperson. I see myself as more of a customer service kind of guy.

Skip Anderson: We’ll get you help, Retail, we’ll get you help.

Popularity: 14% [?]

I have first hand experience with this old issue with a new label, my daughter cannot walk by a shoe store without spending her last dime on yet another pair of shoes that will be heaped in the closet after being warn once.

Given the state of the economy and the role the consumer plays in helping any mounting recovery, this form of therapy probably has a number of benefits to the individuals involved, the shop keepers and society as a whole.  (Not to mention China)

Given the cost of professional therapy these days, it is likely to better fit in the budgets of the dwindling middle class. 

So it got me to thinking that perhaps there needs to be a study commissioned as to the quality of therapy by product type, is clothing better therapy than electronics?  Maybe this varies by gender? Is credit card overload more meaningful than cash purchases?  Is mall therapy more effective than street shop sessions?  Certainly if you look at northern cities like Chicago or Toronto, winter could be perceived as downer, having to deal with the snow, the wind chill and slush.  Or perhaps it is better quality therapy given the commitment once has to make in the face of those conditions, with the built in bonus of having to replace footwear more often give the circumstances. 

Wow, is my daughter leading edge fixating on shoes, or behind the curve not loading up on teeth whitener?  Man, I couldn’t handle being having a daughter so untrendy as to be on the downside of a rising trend, that in itself could lead to me needing therapy, it would have to be electronics for me, perhaps a binge at a curry hose; does food count, cause if it did it could end obesity as “the cause celeb” for fat celebrities. Can you just see it, Dr. Phil talking to a trendy anorexic confused by her need for therapy that come in the form of food.  HELP!!!

One thing I do like is the fact that if this “phenomenon” catches on, I can begin to submit the cost of my therapy sessions to my health insurance provider.  Being capitalist and concerned about my well being they of course would have no issues at reimbursing my need to deal overwhelming challenges of today’s complex world, especially using such an ultra chic method of therapy. Hmm, ultra chic, is that better than just chic, and even better than outlet mall therapy.  So confusing, I gotta head out to a shop and swallow the bitter pill.

I do feel sorry for the Americans, what if Obama gets his health care bill passed, and this form of therapy is not included?  I can’t deal with this right now; I am heading to Best Buy for some help.

Popularity: 15% [?]

Retail therapy can be defined as shopping for fun. And there we have it, the evidence, in one short definition for the reason why men do not suffer from the emotional disorder associated with retail therapy… men don’t find shopping fun! So, retail therapy is probably wholly and exclusively practiced by women… and that’s probably why it’s considered a disorder… someone thinks shopping is fun.

Feeling depressed or feeling a little sad then rather than turn to food, turning to drink or turning to drugs then many women will turn to their purse… or perhaps their husband’s wallet… to allow them to partake in something that will cheer them up… shopping. Although I’m not sure if it’s the shopping or spending that makes them feel better, perhaps it’s both, but whatever it is, it seems to do the trick for a short while… that is until they realise how much money they have spent and then the feeling of depression can come flooding back. One way to avoid this feeling is to spend someone else’s money… which reminds me of the definition of success.

I often say that the definition of a successful man is one who can earn more than his wife can spend… and the definition of a successful women?… is one who can find such a man! On these definitions of success I have to admit that neither my wife nor I can be considered a success!

All joking apart, retail therapy is often used as a way of addressing feeling bad and it therefore has the same effect as drinking, eating or taking drugs. It can equally have devastating consequences if the person partaking in therapy is spending more than they can afford.

Would you give an alcoholic a drink? Would you give drugs to a junkie? Would you give a jam doughnut to an obese person? If you answer no to any of these then it should make you wonder if you should be serving a women who is clearly partaking in an excess of retail therapy. Perhaps I should draw this to the attention of the British government (sorry English government… devolved government and all that) because here in the UK the government actively practises the art of the nanny state and this would be a great subject for them to start additional meddling.

Popularity: 14% [?]