Employee Theft And The Hiring Process

September 29, 2017 by Leave a Comment

Are you hiring someone who has the tendency to steal from their employer?  Hiring new employees for the season and for permanent positions is a difficult task in and of itself. But do you consider employee theft in the hiring process?

With little additional effort, you can screen out candidates that are prone to, or even have an ambivalent attitude towards theft from your company. The folks that are ambivalent tend to be the ones that will look the other way while others, both internal and external, steal from you and will not tell you that they suspect or see theft occurring. The normal excuse they give themselves and you, if confronted after the fact, is “I did not want to get involved” or “I am not a rat”. Both of these are copouts. But what you need to consider is that you, the owner or manager have probably set the foundation for this attitude.

To keep employees from stealing from you, you must start at the very first step in the employment process. When someone applies for a job, they need to understand that you will check their criminal background. You should have a separate background check release document from your company’s application. That sets the beginning of theft prevention.

During the interview process are you asking questions about employee theft and the candidate’s attitude towards it? If not, you are missing out on a very simple step that will reveal much more than you expected. These are questions that you can and should be asking. Loss Prevention Systems offers to our customers live, online training that is FREE of charge about this very subject. The seminar is titled “Pre-employment hiring: What they don’t tell you will HURT you”. This training teaches you and your staff how to ask better questions regarding loss prevention areas. Do you want to find out more about not only the candidate’s involvement in and attitude about employee theft but also what they have stolen from previous employers and their use of illegal drugs? This session will teach you those techniques.

Next, when you make the offer of employment and conduct their orientation, are you explaining your policy and procedures regarding theft? Do you let them know that it is THEIR obligation to bring any suspicion or actual theft to your attention immediately? It is a job requirement. They are getting paid by you for a job you hired them for. This includes loyalty to you and the company. But if you do not discuss it, how can you expect them to do what you ask?

Do you have a theft policy document or handbook that they must read and then they sign an acknowledgment receipt that is placed in their HR file? Again, if you are a customer of Loss Prevention Systems, we will provide you with a draft LP handbook that you can modify to fit your company. It lets the new employee know that the only thing they may take from the company is the air in their lungs. It also helps them to understand what they are to do for suspected or witnessed theft. If you are a Retailer, it also covers shoplifting.

Your next step is to reinforce this message with all employees at company meetings. This can be as simple as asking questions. Ask for a show of hands to a question like “Have you ever worked at a company where someone was caught stealing?” follow up with “how did that make you feel?’ or “How would you feel if you found out that a co-worker was stealing from the company?”. Most of the time employees respond with a feeling of betrayal, disbelief, shock, anger… You should then expand on those feelings with a discussion. Instead of you “preaching”, let them express their thoughts. You should simply guide the conversation. Ask employees what they think should happen to someone who was caught stealing from the company. You are likely to hear harsh terms like jail, arrest, fired, shot at sunrise and more. But just as important, observe the employees that take a disinterested, joking or mild approach. If they themselves are stealing, they are more likely to use softer words such as “get in trouble, lose their jobs, disciplined…” That does not mean that everyone who reacts in a more mild fashion is stealing. That may simply be their personality or they are uncomfortable talking about conflict type situations. But this does give you more insight into their thinking. Employees that mock or make fun of the conversation should, in my experience, be watched closely.

This process shows everyone that you are not afraid to discuss the topic and are prone to take action if it does occur. It also shows employees that have or will think about stealing from you that other employees will not tolerate their actions.

Start this process now! Do not wait. You want a good, profitable selling season. Contact us if you have questions or need assistance.

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

The Scary Truth About Not Preparing For Holiday Foot Traffic

September 29, 2017 by Leave a Comment

I remember it like it was yesterday. It was a Black Friday morning and we had lines of customers jockeying for position at 16 front end cash registers, two pharmacy registers, a jewelry counter register and 2 registers at our electronics counter. Sure, there were a lot of people, hundreds if not a thousand at one time but we were handling it. I had our Loss Prevention team monitoring cameras, checking receipts at the front doors and walking the floor with “Security” jackets on to deter theft and prevent fights. The store management team had good plans in place for replenishing freight on the floor and giving employees breaks. I had worked with the Store Manager to control the flow of customers into our building and all had gone off without a hitch, no pushing, shoving or fights. I even had a number of police officers at our front doors aiding us with crowd control. We had really planned for every contingency, or so we thought. The one thing that we had not planned for happened and it was a major problem, our register system went down! The audible sighs, snide remarks, and expressions of anger and frustration were heard in one collective voice. All of our managers jumped into action trying to reboot registers and get systems back online. Ever so slowly we got things moving again but it was a nightmare and it made us realize the scary truth, we had not really prepared for everything as well as we thought we had. A number of shopping carts had been abandoned with Black Friday specials in them and no salesfloor staff available to re-shelve the merchandise.

Can stores prepare for every contingency? Quite honestly, no but that is not to say there should not be a significant amount of time spent planning for holidays and holiday foot traffic. The hard part is knowing what you should plan for and have a contingency plan if something “breaks” which will most certainly happen. What kind of things can you prepare for?

  • Are you hoping for increased foot traffic or planning for it? Hoping is wishful thinking something will magically occur. Small and medium-size retailers have to make good things happen. Big Box retailers are planning months in advance for what their “Doorbuster” items will be for Black Friday. They do bulk purchases of merchandise that will be one-time sellers. LCD televisions are one of the big promos I see each year. These are often not top of the line name brands and they are bargain priced to bring in foot traffic. Get people in the door and hit them with other sale items and promotions. The nasty surprise with this type of gimmick? What do you tell your customers when you run out? Were you fair in how you advertised quantities would be limited, no holds would be permitted, first come/first serve and no rain checks or substitutions will be given out? Be clear in your advertising and let customers who are waiting for that item know how many there really are. You may give out a ticket to each person in line who is waiting for that “Doorbuster” so no one else feels “duped”. You can save a lot of headaches for yourself.
  • Test your equipment. Have a professional come in and test your point of sale registers, your computers, and even your electronic article surveillance pedestals and deactivation pads. Do you normally run two registers during the year? Consider having a third for an increase in customers or as backup if one of your two breaks.
  • Are you intending to run your holiday season with the same number of employees you have all year? That can be a scary decision. If you are planning out your sales and promotions you will see more customers. Failing to have enough staff means you are not giving the level of customer service you need to and people will be put-off with poor assistance, abandon merchandise and leave the store. Not adding staff also means you will run your full-time crew ragged and they may quit. Holiday seasons can be stressful enough without feeling like you’re stretched too thin by your boss.
  • Finally, consider promotions for each of the major holidays coming up in the final quarter of the year. Candy giveaways for those who celebrate Halloween, a drawing for a turkey dinner for Thanksgiving, or a raffle promotion to get people into your building for Christmas shopping, Hanukkah, Kwanzaa, etc.

Holiday shoppers can make your financial year but you must be prepared. Careful planning will pay off in the end. Don’t be scared to step outside your comfort zone to reach new customers and drive profitable year-end sales. 

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

The Importance Of Expressing Your Thanks For The Staff You Have

September 29, 2017 by Leave a Comment

With Thanksgiving right around the corner, I thought it would be an appropriate time for me to ask the employers out there how thankful are you for the staff you have? I don’t mean are you just thankful you have people who work for you in a general sense but how thankful are you for what they bring to the workplace every day? Maybe you have never thought about it like that. I’m certain you are thankful that Bobby showed up on time today or Mary Jane rang up customers without a customer complaint. But have you ever looked at how you express your thanks to your team? Maybe your attitude is that you pay them and that should be enough. Perhaps you give your employees a birthday card when their birthday rolls around each year. But is that really sufficient? Is it fair for your employees to expect more from you in terms of recognition?

In an article in forbes.com titled, “66% Of Employees Would Quit if They Feel Unappreciated”, by Victor Lipman, April 15, 2017, the author references, “…a study from Office Team examining the impact of appreciation, or lack thereof, in the workplace.” Quoting the study Mr. Lipman points out two startling findings:

  • 66% of employees say they would “likely leave their job of (sic) they didn’t feel appreciated.”
  • Among millennials, the number of employees who’d leave if unappreciated jumps to 76%.

The author states, “So what does all this mean? I’d call it a short message with a powerful takeaway: Appreciation matters.”I agree with the author’s sentiments. People need to feel like their efforts are appreciated by the supervisors/managers.

What are some of the ways managers can express their appreciation towards their employees? Below are some ideas that can be easy and meaningful:

  • Greet your employees when they arrive to work and say goodbye when they leave. I don’t mean you should say, “Glad you’re here, it’s been a crazy day” or “Oh, you made it on time, what a pleasant surprise!” Be genuine, say hello, hi or it’s good to see you when they come in and have a good afternoon or a great weekend when they leave.
  • Some large retailers have recognition cards they hand out to employees for performance and then have a monthly drawing for a gift card or monetary prize. It may not be practical for a smaller retailer but you can give a Thank-You card out from time to time
  • I work for a business where my superiors have expressed their appreciation with a company travel coffee mug, candy, greeting cards and a gift card at various times on top of emails expressing appreciation for my contributions. All of these make my efforts feel like they are worth the effort. Sometimes it’s the little things that mean a lot.
  • Appreciation may be demonstrated with the assignment of a special project or task that shows trust or gives more responsibility. With that assignment, there must be a verbal acknowledgment by the manager of how the employee’s work performance has merited the responsibility. It would be appropriate to also give some additional incentive if the assignment would merit it.

Aside from the possibility of employees quitting due to feeling unappreciated, it is also possible their performance is tied to how appreciated they feel working for you. According to an article in apa.org (American Psychological Association) from March 8, 2013, titled, “APA Survey Finds Feeling Valued at Work Linked to Well-Being and Performance”; “Almost all employees (93 percent) who reported feeling valued said they are motivated to do their best work and 88 percent reported feeling engaged.”  Clearly, it is in your best interest to find ways to express appreciation to your employees for the work they do for your business. Happy employees will want to make the company they work for successful and that means YOU will be successful.

This holiday season as you consider all the things you are thankful for, don’t forget those who make your business the success it is. Express your thanks and find ways to recognize them, now and all throughout the year. You won’t regret it.

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Late Night And Overnight Store Operations Make It Difficult To Prevent Shoplifting And Robbery

September 29, 2017 by Leave a Comment

I watched a video shared with me by a former Loss Prevention Manager colleague. The video showed three subjects enter a retail store and all appeared to be wearing masks and at least one looked to be carrying a rifle of some type. There were several employees at the front entrance when the subjects walked in and one of the employees seemed to say something to the one who was carrying what I will refer to as a rifle. The video was not the greatest and the camera is pointing into the store from the exterior door so for the most part, the backs of the perpetrators are seen.

The employee who approached the subject standing at the doorway may have said something and in the video, it appears the employee was hit and knocked to the floor. Two of the bad guys raced into the store and shortly afterward ran out and it seems they were carrying bags. I did not inquire as to what was stolen from the store but one person did inquire why this particular retailer was open after midnight (an unusual time of the evening for this company to have the doors to their stores open). It turns out they were open late for a special sale of “Star Wars” toys being released.

The idea of remaining open late into the night has always disturbed me. In my opinion, it invites all sorts of problems. How do you prevent robberies this late at night? How do you prevent shoplifting? What about the protection you should be offering your customers who come to your store so late? All of these are things that retailers should be considering before they make a decision to try to get one more sale or add one more dollar to the register.

 One thing that Loss Prevention departments can do little about is stopping a robbery while it is in the act of occurring. They also cannot control who is coming into a store. This brings me back to the point about store leadership that decides to leave a store open late at night. The idea is that sales are going to surge (for that night or event) and the store has to beat the competition. If a store is going to be open late at night, and the owner/manager believes this is the best business decision my first recommendation is that the store is fully staffed. More employees are a deterrent to thieves and robbers not to mention shoplifters than a skeleton crew.

Customer safety has to be considered and so it is the obligation of management to make sure parking lot lights are all on and working properly. Several weeks prior to the event(s) a thorough inspection of parking lot lighting should be completed and ALL issues fixed by the property owner prior to the event. All exterior building lights must be working to take away areas where criminals may try to lurk. Camera (closed-circuit television systems) installation would be a good idea and today it can be done for relatively little money. Fixed cameras can be installed to monitor front entrances and exits, cash registers, a cash office and even sidewalks and parking lots. Finally, and this can be controversial, hire an armed security officer or off-duty police officer to work the front door of the store.

There are people who have a concern with an armed security officer or off-duty police officer for store protection. This is where the controversy comes in. What if someone(s) enters the store to commit an armed robbery? If that officer draws their weapon to intervene the possibility of innocent customers or employees being injured increases exponentially. On the other hand, an armed officer may be a strong deterrent to would-be robbers and their visibility may prevent shoplifting by being stationed at the front doors. The question remains, what if that one robbery attempt happens and everything goes bad? Store owners and managers MUST take that into consideration before taking that step.

I am not a fan of the late night or overnight store operation. I believe the risks associated with these events along with the possibility of robbery and increased theft, far outweigh the financial gain. Instead, drive profits with great customer service, great values and sales and reduced shortage with the use of retail anti-theft devices. Make safety and security a priority and your employees will appreciate it and customers will reward you by spending money in your store.

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Do You Know Who Is Stealing From You?

September 11, 2017 by Leave a Comment

Do you know who is stealing from you? It could be anyone.  Shoplifting rings across the United States are now a common practice.  Millions of dollars are stolen every day due to shoplifting, and many millions more are because of employee theft. 

The shoplifter can be anyone; from a grandma, a city employee, or a government official, shoplifters come in all shapes and form.  Police officers have been known to be apprehended when shoplifting, and  juveniles are notorious for stealing merchandise when they visit a store.  Training and awareness from you as a store manager, and from the employees at your supervision, can limit the amount these shoplifters take from your store.

For more about this and other topics, follow the links below.

Feds Break Up $20M Shoplifting Ring That Stole Clothing From Coast To Coast

Federal authorities say they’ve arrested more than a dozen people and broken up a massive shoplifting network that trafficked in some $20 million in apparel and other items stolen from stores all over the country and then sold in Mexico.

According to a grand jury indictment [PDF] unsealed this week, the San Diego-based defendants allegedly assembled “crews” of shoplifters who would steal items from a variety of stores — Victoria’s Secret, Hollister, American Eagle, Banana Republic — at malls both local and thousands of miles away.

Prosecutors say that this ring pilfered items at stores as far-flung as Washington state, Illinois, and Maryland, all with the intention of transporting the stolen goods back to the San Diego area, and then on to a fence in Mexico.

The indictment details the various roles given to the shoplifters involved in any given theft. There were “team leaders” who selected stores and targeted items within the store, while doing advance scouting for the presence of police or loss-prevention staff. When it came time to shoplift, the team leader would relocate the items targeted for shoplifting, putting them in spots within a store that made it easier for others to steal them.

Former school district employee charged with felony theft

Former St. Cloud school district buildings and grounds supervisor Bryan Brown was charged Friday with felony theft for using public funds for personal purchases, according to a complaint filed in Stearns County District Court.

Brown resigned April 3 after 27 years with the district. He began working for the district as a custodian in 1990. In 2011, he became the buildings and grounds supervisor.

Brown’s supervisor, former executive director of business services Kevin Januszewski, resigned April 6.

After the resignations, the district asked St. Cloud Police Department to investigate the possible theft of public funds at the school district, according to the complaint. That investigation was launched April 7.

Employee theft cost US businesses an average of $1.13 million in losses, according to 2017 Hiscox Embezzlement Study™

NEW YORK, NY, Aug. 23, 2017 (GLOBE NEWSWIRE) — Hiscox, the international specialist insurer, today released the 2017 Hiscox Embezzlement Study™, an examination of employee theft in the US. The findings reveal that US businesses impacted by employee theft lost an average of $1.13 million last year. Small and mid-sized companies (fewer than 500 employees) continue to be disproportionally victimized by employee theft, representing approximately 68 percent of cases.

This is the third annual Hiscox Embezzlement Study, which examines employee theft cases that were active in the US federal court system in 2016.

“There is a necessary level of trust between employees and their employer that is required of successful businesses,” said Doug Karpp, Crime & Fidelity Product Head at Hiscox. “When there is a breach in that trust because an employee or executive steals, it can have a significant impact on the entire organization both financially and emotionally. Business owners and executives need to make the shift from blind trust to intelligent trust to ensure they are able to spot and prevent employee theft.”

 

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Employee Theft

September 6, 2017 by Leave a Comment

Addiction is a big factor is some shoplifters’s lives.  They steal to then sell the stolen merchandise to be able to purchase drugs and alcohol.  Employees with a drug addiction problem are dangerous to a retail store, specially those employees that are given a position of power, or have some type of freedom with merchandise, cash or even the security of the store.

Employees that feel as deserving employees that are not being properly compensated can be a liability to a retail store as well.  Anger, bad attitudes, and eventually theft can be a big problem for the store where they are employed.

Retailers and employers in the United States and around the globe loose billions of dollars to shoplifting and employee theft every year. Periodic inventory of employees, merchandise and security of the store are not only necessary but imperative to the health of the business. 

If as an owner, any part of the proper management of the store is left unattended, the results can be catastrophic.

For more about this and other topics follow the links below.

Your Loyal, Hardworking, and Intelligent Employee Might Be Stealing From Your Business

Most perpetrators are middle-aged, longtime employees who never take vacation, says new study.

Last June, Linda Clark, a 68-year-old bookkeeper, who worked for a credit union in Iowa, plead guilty to embezzling almost $2.5 million from her employer between 1978 until she resigned in 2015.

The SCICAP Credit Union in Chariton, Iowa, had to liquidate due to Clark’s 37-year-long scheme, during which she diverted small sums of money into her bank account as well as those of her children.

Clark fits the profile of the average embezzler, according to a studythat looked at over 400 embezzlement cases in federal court, conducted by insurance provider Hiscox. The study found the average embezzler to be a small-business, middle-aged employee who works in the accounting and finance department. Perps were female in 41 percent of the cases.

Clark’s scheme went on longer than average, but the majority of schemes, 28.7 percent, go on for five years with an average theft amount of $2.2 million. For schemes that last 10 years, the average loss hits $5.4 million.

Employee theft cost US businesses an average of $1.13 million in losses, according to 2017 Hiscox Embezzlement Study™

NEW YORK, NY, Aug. 23, 2017 (GLOBE NEWSWIRE) — Hiscox, the international specialist insurer, today released the 2017 Hiscox Embezzlement Study™, an examination of employee theft in the US. The findings reveal that US businesses impacted by employee theft lost an average of $1.13 million last year. Small and mid-sized companies (fewer than 500 employees) continue to be disproportionally victimized by employee theft, representing approximately 68 percent of cases.

This is the third annual Hiscox Embezzlement Study, which examines employee theft cases that were active in the US federal court system in 2016.

“There is a necessary level of trust between employees and their employer that is required of successful businesses,” said Doug Karpp, Crime & Fidelity Product Head at Hiscox. “When there is a breach in that trust because an employee or executive steals, it can have a significant impact on the entire organization both financially and emotionally. Business owners and executives need to make the shift from blind trust to intelligent trust to ensure they are able to spot and prevent employee theft.”

 

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , ,

Do Shoplifters have Rights?

August 29, 2017 by Leave a Comment

Shoplifting and shoplifters have been a constant reliable problem the retail industry has had for many years.  The billions of dollars lost due to shoplifting is not a laughing matter.  The millions of dollars the retail industry suffers daily due to shoplifting, cripples local economies and leaves them unable to fund social programs that benefit those communities.  The tax loss from stolen merchandise affects those communities as well.

It is very hard to empathize with a shoplifter. Shoplifting is a crime after all but, we must remember that shoplifters have rights and whether security personnel likes it or not they must follow the law.  The procedures a security employee must take when apprehending a shoplifter are very clear.  Law enforcement personnel must follow procedures as well. Shoplifters have rights, and as a security employee you must follow them.

For more about this and other topics, follow the links below.

LP Interrogation Techniques Can Work as Negotiation Tactics

Negotiation tactics are synonymous with terms ranging from compromise and mediation to haggle and interrogation. It is not difficult to argue the fact that interrogations represent the hardest form of negotiating. When people enter into negotiations or mediations, they understand they may need to sacrifice some of their interests in order to reach a mutual agreement because both parties, at some level, have shared interests.

On the contrary, when subjects enter into loss prevention interrogation, they have no intentions of sacrificing any of their interests. Interrogation subjects are typically motivated to stake themselves to a position of innocence and to vehemently defend that position. Skilled interrogators overcome these obstacles by creating shared interests, reducing their subject’s resistance, and creating perceived benefits for confessing.

Many corporate executives view negotiating tactics and skills as both critical to their success and professional development.

Court rules company extorts money from accused shoplifters

SAN FRANCISCO (KTVU) – A State Superior Court judge has ruled that a “corrective education” scheme for accused shoplifters is considered “extortion.”

San Francisco City Attorney Dennis Herrera filed the lawsuit against Corrective Education Company, which partners with retailers like Walmart, Bloomingdale’s, Burlington Coat Factory, Abercrombie & Fitch, Ralph’s grocery chain and Kroger’s.

Suspected shoplifters at those retailers don’t get handcuffed by police, instead, Herrera says they answer to a private business called CEC or Corrective Education Company.

“They basically would intimidate and get someone they suspected of being a shoplifter and say uh, unless you sign this form and and pay us money, we’re gonna report you to the police,” said Herrera.

The problem with that, Herrera says… it’s illegal.

“The law is clear. This is a textbook case of extortion and false imprisonment,” said Herrera who filed the lawsuit back in November of 2015.

This week, California’s State Superior court agreed.

Burlington Coat Factory Security Guard Arrested After Shooting

​A security guard who shot a man Tuesday during a confrontation over an alleged shoplifting incident in San Francisco has been arrested, police said today.

The shooting occurred shortly after 2:30pm in the area of Fifth and Howard streets at a Burlington Coat Factory store where the guard, a 42-year-old man, confronted a suspected shoplifter, according to Officer Robert Rueca.

A struggle ensued that moved outside of the store, and the guard shot the 33-year-old man in the leg, Rueca said.

The victim was taken to a hospital with injuries that are not considered life-threatening.

The guard, whose identity has not yet been released, was arrested on suspicion of assault with a firearm and shooting at an inhabited dwelling.

 

Filed Under: Shoplifting Prevention Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Ashleigh’s 2 Year Anniversary!

August 28, 2017 by Leave a Comment

By Bill Bregar, CEO Loss Prevention Systems, Inc.

We have just celebrated our very own Ashleigh Berry’s two year mark with Loss Prevention Systems. Ashleigh is a perfect fit for the duties she performs. With a Bachelor’s Degree in Criminal Justice she has the mind set to read between the lines when she conducts our client’s employee background checks. Many times perspective employees will omit or distort information on their application regarding their background. Ashleigh works very hard at spotting these discrepancies. In one case, an applicant completed the release form and did not list any convicted crimes. Upon reviewing his criminal history, the applicant was convicted of 2 traffic misdemeanors, 1 violent crime and 1 felony. The applicant has admitted to 4 convictions and was applying for a job that would allow access to the public and vehicles! It’s important to know of a prospective employee’s background. What they don’t tell you will hurt you.

Ashleigh has championed our quick turnaround speed. Same day or next day for many criminal records checks is our target and standard.

Generally Ashleigh is also the first person a new customer to Loss Prevention Systems talks to about their shoplifting problems and the use of a Checkpoint System. She takes the time to understand what an individual retailer is going through and gathers the information necessary to allow us to solve his/her shoplifting problem once and for all. This goes hand in glove with LPSI’s consultative sales approach.

As CEO, I am very proud of her work and accomplishments. But more importantly, Ashleigh’s unwavering positive attitude and charming demeanor, is a joy to have here at LPSI. If you need something from us, do not hesitate to ask for Ashleigh and experience real Southern Charm at its best.

Ashleigh is also a Ford Mustang car enthusiast.

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , ,

Can You Hear Me Now? Active Listening is Important To Great Customer Service

August 28, 2017 by Leave a Comment

How often does it happen? You are in front of your television watching your favorite college football team playing a game and your spouse starts talking to you about their day or what you need from the grocery store. Then suddenly the conversation takes a nasty turn and you are asked for input about the conversation you weren’t really engaged in. The textbook reply, “Yes Dear” or “Sounds good Honey” are the first line of defense but your spouse is suspicious of your response and asks, “What did I say?”  Oops, you’re caught, you weren’t listening and you really have no idea what was said. The same thing can happen in retail but with a much different outcome and one that can cost you money. With your spouse you may be in the doghouse and it can be uncomfortable for a bit but usually things have a way of working out in the end. For a retailer,  it may end up with an  exasperated customer who won’t shop at your store any more.

Actively listening is critical for ALL retail associates. It requires paying attention to what your customer is saying and sometimes keeping an ear out for what is not being said. It is a skill that often has to be taught because we do not always give our full attention to what others say to us as I gave in my example of above. How does one really actively listen? By asking clarifying questions and repeating back what the customer has said to you. Here are some examples:

  • A customer is returning a shirt. A simple situation right? Do the refund and give the customer their money back and everything should be good. Not necessarily. What was the reason for the return? Was the merchandise defective? Did it not fit the way the customer thought it would? Did someone fail to give them proper assistance when they were looking for the shirt in the first place? By asking the right questions you may turn a bad experience into better one. If the merchandise was defective, what was the defect? Is it possible to prevent a bad experience for others by pulling that shirt brand and style from the floor and requesting a credit from the vendor? What appears to be a simple problem may have underlying issues that you would not know if you aren’t listening and asking customers questions about their returns.  Doing so let’s the customer know you do care about them.
  • Perhaps you are selling jewelry to a customer. Showing your shopper merchandise is fine but learning about the customer and what they need the jewelry for can build an invaluable rapport with your clients. Is the jewelry for a special occasion? What style and color of outfit is being worn? How about inquiring if the client is allergic to any metals? You may need to look for hypoallergenic jewelry. It is possible by asking the right questions you might be able to accessorize the sale or better yet sell the entire outfit.

A key part of active listening is the inquiry process and asking the probing questions that lead to a clear picture of what a patron wants.

In addition to the probing questions another essential part of active listening is repeating what the customer has said to you. Sometimes when we are listening to someone we hear one thing but what the customer meant was something totally different. Here is a good example from a social media post I saw the other day:

  • I want to eat Grandma
  • I want to eat, Grandma

Both have the same words but two TOTALLY different meanings. When we repeat back what we have heard in the form of a question we ensure we truly understand what our customer is asking for. We can ask our customer, “So, if I understand you correctly you want to eat your grandmother, would you like that with or without ketchup?” Our customer can then make it clear they do not want to eat grandma at all, that wouldn’t be very nice. The patron can rephrase the question and give more details on what they want. Giving our full attention helps us give our clients exactly what they want and need as we make recommendations based on what they have told us.

Focus on customer service by listening to your customers and make them the center of your attention. They will return the favor by coming back to shop time after time and spreading the word to their friends.    

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , ,

Get on the fast track for better profits, drive for improved shortage results

August 28, 2017 by Leave a Comment

We’ve all been there, we are on our way to work and the next thing you know you come to a standstill. Cars backed up as far as you can see and no one is going anywhere. The clock is ticking away and you begin to worry knowing you are going to be late getting to the office. You look for a side street to try to get out of the mess then, someone with a little bit of guts and a four-wheel drive truck pulls onto the shoulder of the road and speeds by everyone to get to their destination. Everyone gets to where they are going but some people are determined not to let obstacles get in their way and they take the fast track to get there. They went the same route they just overcame the obstacles that would get in their way.

Retail can be like that too. A new store may start off doing pretty well and may even see growth the first few years. Over time the store does nothing new, profits stagnate or start to decline a little but it is just blamed on a slowdown in the economy.

The media and industry trade journals attribute the decline in sales in brick and mortar stores to online competition and the ease of shopping at home. I liken this to getting stuck in traffic and not being able to see more than a hundred yards ahead of where you are. You guess there is an accident or you assume there is a traffic light out and it is certainly not your fault you are going to be late for work.  Does that HAVE to keep you from getting through to your destination? I argue that it does not. The innovator takes a risk, gets on the shoulder of the road and blazes on by everyone else in the traffic jam. Is there risk? Yes, and notice I did not say the innovator plows through all the other cars leaving mass destruction in his wake. The risk is to the driver and his vehicle because he could run over an unseen hazard in the dirt or run into a ditch. The other vehicles are safe as they idle and slowly start to run out of gas. The risk taker measures the risk and determines that the payoff is worth the risk he/she is taking.

So how does all of this relate to shortage and profitability? Some store owners have chosen to operate their businesses without the use of any type of retail anti-theft devices. The store may conduct inventory and losses show up but the owner decides that the losses are related to operational issues rather than theft or fraud. Another inventory cycles and shrink goes up a bit but there is little thought given to the Impact of shoplifting. Over the years the shrink gradually creeps up just a little at a time and sales remain basically where they have been. That shortage is eating into the profit line of that retailer but no one takes notice. Eventually theft impacts the store to the point where it is too late to regain control and the owner is forced out of business. He’s just sitting in the backed up lane of traffic waiting to run out of gas and get pushed off to the side of the road. Had proactive steps been taken the problem could have been avoided. Had the owner chosen to install an electronic article surveillance towers at the doors and use tags on merchandise theft would have been prevented before things spun out of control.

Improving shortage means improved profits for store owners. The use of retail anti-theft devices and looking for fresh, new ideas to bring in additional customers can be the combination that keeps a store from falling by the wayside. You have the green light to get in the fast lane and pass up your competition.

     

     

Filed Under: Featured Tagged With: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
« Previous Page
Next Page »