THE IMPORTANCE OF CUSTOMER SERVICE

theft (13)For me, this is the last week of the 3rd quarter. It’s already that time of year once again. In just a few short days, the 4th quarter will ramp-up and shoppers will be in a tizzy as they check their loved ones off that holiday wish list. I just read a national report that predicts consumer spending this season will be at its highest point since 2008. That’s fantastic news to us retailers. We are poised to post some record sales in the next three months, provided that we execute to our fullest potential. What keeps the customer coming into your store? Is it your customer service levels?

I am a champion of customer service. Like many before me, prior to my LP career I was a store manager for a big box retailer. You can set all the POGs, put up all the proper signage and all those other corporate tasks, but you will find yourself on a lonely island if your store is not customer centric. It’s a two way street. Attentive and responsive employees will help drive sales. They will also reduce shrink.

Take for example a customer shopping for a treadmill. Sure, they could come into the store, pick out the item themselves and cart it out. You just made a $500 sale and you really didn’t have to work for it. Did that customer get the foam mat to protect their floor? What about the silicone lubricant for the belt? How about a new pair of running shoes to prevent an injury, or even some fitness supplements to help them with their workout routine? What if by not speaking with someone on your staff, they purchase a treadmill that doesn’t fit their activity level? You may have very well left an additional $50-$100 on the table in add-on sales. Why would you leave all these extra dollars out there?

My company, like so many others, runs a survey. Customers can call in the number on the back of the receipt and share their in store experiences. I often review these for opportunities in the store. One thing I see the most is that customers feel “ignored”. Is it so hard for our employees to simply greet a customer? I see it so often. Employees who are too task oriented, who whizz past our customers without as much as a greeting. Do you see that in your store? Is it acceptable?

Let’s talk shrink. This is an LP centered magazine, right? Do you know that the very best method for reducing shoplifting losses is? If you guessed customer service, give yourself a pat on the back. First and foremost, a thief never wants to be acknowledged. If your employees are engaging and monitoring their areas, a thief will not have the opportunity to steal your merchandise. When my LP team completes a shoplifting report, there is a checkbox at the end of the report. It asks simply if the suspect was ever provided customer service by an employee. When I get those reports that say “no,” I use that shoplifting incident as a tool to coach the managers of the store, and show them a customer service failure. By training your employees to give high levels of customer service, you can and will deter criminal activity.

Customer service isn’t just telling a customer hello. It’s about each and every employee going the extra mile to satisfy your customer. Every single person that comes through your doors has a choice. They are choosing to give you their money. You, as a manager, should be honored by that choice. You should make it a core philosophy in your building that the customer is the most important aspect of your business. Strive to be the store that people will shop at, no matter the distance from their home. Engage your customers, leave no money on the table and be proactive in reducing shoplifting losses. Remember, customer service means money in your pocket and less product walking out the doors.


EMPLOYEE THEFT MOVES INTO ONLINE MARKETPLACES

theft (13)This past month, I closed out one of the biggest employee theft cases of my career thus far. While it was quite exciting and a huge win for my team, it left a lot of questions about our internal controls, that after this case, surely must evolve. Lots of people that I come into to contact with really misconstrue the facts regarding employee theft. You’ve heard the phrase before… “You have more internal theft than external theft.” Every time I hear this phrase, I find myself trying to educate the manager on this. While most people assume that 75% percent of their employees steal, realistically, only a very small percentage of employees engage in this behavior. Those that do though, create a substantial financial loss to the company.

As part of my investigative routine, I normally check online sale sites for possible stolen merchandise. Selling stolen product online is most likely to quickest and easiest way to get rid of goods in a hurry. As I was browsing through I noticed a pair of wireless headphones that had just hit our stores. Interesting enough, the item still had our company markings on it. From there I was able to quickly identify the geographical area and before long I was able to identify the owner of the page. That owner was a warehouse supervisor at one of my stores.

Well, it didn’t take long for me to find quite literally, hundreds and hundreds of items either that had previously been sold, or were up for sale on this website. Lots of these items were electronics such as cameras, headphones, accessories, phone cases and other large bulk product such as coolers and outdoor furniture. Looking at the store’s inventory I could tell that some of the product had in fact come from that location. Over the course of several weeks, I initiated several online purchases. Most were for electronic devices that had a serial number. Once received, I was able to determine that the items did in fact belong to that store and those particular items were not accounted for. I had made my case.

How was this associate getting this much product out the door without anyone noticing him? I still didn’t have that piece of the puzzle. Without enough ammunition for prosecution, I interviewed this supervisor to determine how he was obtaining this much product. I knew it was stolen, I just didn’t know by whom and in what manner. What I uncovered during this interview was one of the most sophisticated and organized theft operations I have seen in my career.

That particular store was also a hub warehouse. This means that online purchases made by customers in a certain geographical area would be sent to our store and warehouse to fulfill. This of course gets the item to the customer much faster than going through our centralized distribution center. Once the order was filled for a customer, it would be packed and set in a designated area and a private mail delivery service would pick up once a day.

The supervisor had gained access to the shipping account, so he was able to ship product out without anyone second guessing the boxes. At first, according to our records and his online account, he was shipping merchandise directly to his customer’s houses. He said that he thought that was a bit risky and ultimately began shipping massive quantities of merchandise to a vacant home close to his. Each day, he would pass by and take the packages from the porch. From there, he would run his online store. This had been going on for the past two years. This one employee, working alone had taken nearly $250K worth of merchandise over this time period.

With the dishonest employee out of our store, we focused on what went wrong. We began a program of inspecting all boxes and shipments prior to them being sealed and implemented a system that a number of shipping boxes each day could be verified. We also set up exception style reports that showed any time a delivery was sent to the same address more than 5 times a month. This was a costly lesson for us to learn and hopefully with better controls and more oversight, it will never happen again.


Loose the Battle, Win the War

theft (1)I read a horrifying news article about a man, who had been convicted of shoplifting, winning a lawsuit to the tune of $500,000. That’s right- half a million dollars paid out to a man who was convicted of shoplifting from a store. The report was horrifying for two reasons.

The first, because he was a shoplifter who might never have to work a day in his life again, basically was paid out to steal. Two, because the reason he won his suit was because he was injured during the course of the apprehension as a result of his shoplifting.

It raises a very important question of where do we, as retailers and business owners, draw the line? Where do we say we will allow this particular loss to happen to avoid an even worse loss? In essence, how do we loose the battle to win the war?

As the news report goes on, this particular man seems to have made a habit of bringing up (and winning) lawsuits stemming from his alleged shoplifting incidents. When the businesses could not win their cases against this man to convict him of shoplifting, he turned around and sued for slander, liable, and wrongful apprehensions.

While this particular situation is probably one of the more extreme examples of how a shoplifting stop can go horrifically wrong, this is not an unrealistic topic for businesses to be aware of.

Any time a shoplifter is stopped, or even approached, we have a responsibility to be right- 100% right. We also have to be able to prove it in a court of law. The days of acting on gut feelings or suspicions are long gone.

We have a right to protect our stores and to make shoplifting stops. We need to do so in a way that is also fair and legal to the suspected shoplifter- lest we also incur a half million dollar settlement at our expense.


Point Of Sale Challenges, ROI And Benefits

theft (13)One of the most desired mobile integration solutions in the retail industry has been the Point of sale. It is not surprising that retailers are keen to learn everything they can about this solution. The numbers are pretty clear. 66% of U.S. Smartphone owners use their phone to help them shop, and if you are not ready, or don’t have a POS solution for your business, you should.

Read more about this topic by following the links below.


Mobile POS: The Loss Prevention Challenges

66% of U.S Smartphone owners use their phone to help them shop.

80% of Smartphone owners say they want more mobile-optimized product information while they’re shopping in stores.

43% of Smartphone owners have used their mobile device while in a store for shopping purposes.

Consumers spent 6 times as much time in retailer’s app in December 2012 than they did a year earlier.

These are the sorts of statistics driving the retail-sector mobile revolution. Retailers are keenly interested in becoming more engaged with the mobile-integrated lives of their customers. At the same time retailers are embracing their own mobile devices as a kind of retail Swiss Army knife—multifunctional, powerful, yet compact and portable. With both consumers and retailers desiring more mobile integration in the retail realm, a diversity of mobile solutions has naturally emerged, perhaps most visibly the mobile point of sale.


Immediate ROI with Mobile POS

You may not know the name, but you have probably eaten a Juicys’ product.  As the leader in special event food concessions, its growing fleet needed a new system, and,  for the back office — a real-time view of sales.

Juicys, purveyor of county fair favorites  like the famous Kawabunga Corn Dog, Turkey Legs, Giant Western Sausages and the Funnel Cake Sundae, got its start in 1984 as a single-person corn dog stand. In nearly three decades, Juicys has grown from a humble corn dog stand into a massively popular outdoor dining and special event food concessions vendor.

Mobile Grill Means Mobile POS
The company is frequently on the road with its Outlaw Grill, the world’s largest mobile grill trailer. Juicys owner Brett Enright was looking for a new POS system to ring sales and provide better oversight into the company’s back office operations.

With a fleet of Juicys trucks moving constantly, Enright needed to be able to see comprehensive sales reports from each truck, from anywhere, at any time.
Ease-of-use was also a must—the system needed to be easy to set up and move. Enright had already ruled out several options: Wi-Fi systems had proven themselves unreliable and it was difficult to set up a Wi-Fi infrastructure at each stop the trucks made.


The Gift of Mobile POS

Long lines and holiday crowds can easily turn the most wonderful time of the year into the most frustrating time of the year. Today’s consumers are used to being one-click away from most items on their wish list and as they abandon their virtual shopping carts for the real thing this shopping season, retailers should be prepared to keep up with their tech savvy needs in brick-and-mortar stores. This means easy payments, fast service and exceptional customer service. One of the most successful ways retailers can create a stand-out in-store experience is through the use of a mobile point-of-sale (MPOS) system.
A mobile POS system benefits both the retailer and the consumer by creating an approachable workforce that offers improved customer experience, while simultaneously streamlining behind-the-scenes processes. A simple consumer solution such as Square or Level-Up will offer most mom-and-pop shops a solution to the increase in holiday shoppers by offering a faster and easier checkout experience. However, for large retailers considering deploying a mobile POS system this holiday season, an enterprise-grade solution is the truly the only reliable, secure option. Here are a few things retailers with a mobile POS on their holiday wish list should consider when picking out a solution:

  • Checkout Features: Consumers have more ways to purchase an item than ever before, often at the click of a button. Retailers need to be prepared to accommodate whatever form of payment a customer wants to use, especially if that company operates globally. In total, mobile POS systems should be able to handle traditional payments, including cash, as well as chip and pin, European chip and pin, RFID and near-field communication (NFC). Barcode scanners are also an in-demand checkout feature of mobile POS because they automatically activate with a simple swipe across the scanning field cutting down on the time it takes to complete a purchase.