Please join me in also welcoming as my partner(s) on the Pivot Point educa>onal team. We are excited to be here and honored to spend >me with you.

Transcription

1 Welcome par+cipants to the session. For example you might say Welcome to Teaching Retail Success. It is great to have this opportunity to share this dynamic educa>onal session from Pivot Point with you. My name is and I serve as the for Pivot Point. I will be your guide over the next hours. Please join me in also welcoming as my partner(s) on the Pivot Point educa>onal team. We are excited to be here and honored to spend >me with you. Make general announcements. General housekeeping guidelines for this session include: Announce break >mes (approx) Announce loca>on of restrooms if appropriate Announce dismissal >me(s) Clarify CEU guidelines 1

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4 Present the purpose The main purpose for this session is to offer educators strategies for improving retail results through teaching >ps. Has someone ever given you a recommendation for purchasing something that worked out beyond your wildest imagination? Most of us have experienced the benefits of a good recommendation. This presentation is focused on offering tips for improving retail results. Retail results are improved through the use of professional recommendation skills. Just like passing on a good recommendation to a someone we know, professionals use their recommendation skills to help clients achieve successful results. Present Ge8ng to Know You Exercise (as +me permits) For example you might say Before beginning this session, at each table, I would like to ask you to share your name, where you are from and the school you are associated with. I ll go first. My name is, and as I said earlier, I am the for Pivot Point. My loca>on is. Okay, now it is your turn. 4

5 Present the Learning Outcomes There are 3 major sec>ons within the Teaching Retail Success seminar which include: Know the Clients, Know the Products Personalize Retail Recommenda>ons Increase Retail Produc>vity Following the presenta>on on Teaching Retail Success, par>cipants will be able to: Iden>fy how knowing the clients and the products being recommended helps improve retail results. Describe guidelines that help improve retail results when making retail recommenda>ons. Offer examples of >ps that can be used to increase retail produc>vity. 5

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7 Sec+on 1: Know the Clients, Know The Products Introduce the first sec>on which contains 3 >ps: Tip 1: Most Common Reasons People Buy Tip 2: Buying Differences Between Genera>ons Tip 3: Use the products being sold 7

8 Sec+on 1: Know the Clients, Know the Products Tip 1: Most Common Reasons People Buy How many >mes have you arrived home with your purchases and wondered, now why did I buy that? Tip 1 introduces the most common reasons why people buy. These common reasons include need, promises, value, reputa>on and social status. It will be helpful to iden>fy why people buy in order to recognize possible future mo>vators for clients making retail purchases. 8

9 Sec+on 1: Know the Clients, Know the Products Tip 1: Most Common Reasons People Buy People buy to meet their basic needs. People need food, water, shelter, medicine, and more. This is the most fundamental reason to buy something. With today s fast pace, need has taken on another meaning and that is convenience. According to best- selling author and marke>ng pioneer, Bryan Eisenberg, need or convenience is a major factor when it comes to reasons why people make purchases. The client needs something now and will take the easiest or fastest path to get it. Convenience is also thought of as instant gra>fica>on. The idea of gedng the product right now is oeen too much to resist, and the purchase is made. Convenience makes life easier and saves >me. Millions of people con>nue to order infomercial products even though they know most of them don t work. No one likes to work harder than they have to, so products that appear to simplify life are always intriguing. Just open a drawer and see an automa>c potato peeler to be reminded. How many items have been purchased based on this kind of impulse? And, how many >mes are products purchased by clients that really didn t plan on buying anything? The need for convenience and instant gra>fica>on oeen leads to impulse 9

10 Sec+on 1: Know the Clients, Know the Products Tip 1: Most Common Reasons People Buy People buy promises. People will hold professionals accountable to their promises. Therefore, it is important to promise only what can be delivered, and then deliver more than what was promised. For example, basic reasons why people purchase anything is to increase pleasure, such as glowing health, or decrease pain, such as reducing stress. In this case the professional needs to make sure the product will deliver on the promise used to compel the client to make the purchase. This >es closely to the fact that people make decisions based on the benefits of a purchase. People are interested in knowing What s in it for me?. Stressing the benefits of a purchase will answer the What s in it for me" ques>on. In some cases a retail product may come with a guarantee that removes the risk. For example, a product may offer a money back guarantee. People are oeen more inclined to make a purchase when a guarantee is present. Promises = Guarantee = Benefits 10

11 Sec+on 1: Know the Clients, Know the Products Tip 1: Most Common Reasons People Buy People find it hard to pass up a value. Why do people line up for hours before stores open on Black Friday? It s not because they really need the things they re buying, but rather, it s because the deals are just too good to pass up. This is when the perceived value exceeds the price of a product. It might be something you don t even par>cularly need, you just feel it s too good a deal to pass up. Some>mes these are the items they place at the end of the aisle or at the checkout counters of stores. The percep>on of value will drive the sale. A good example is General Motors Geo Prizm vs Toyota s Corolla. In California a joint manufacturing venture between Toyota and GM was created to produce the cars jointly. Two virtually iden>cal cars were produced; one branded Toyota and the other GM. The produc>on costs were the same $10,300 per car. However, the Toyota branded car was priced 10% higher than the GM, and the Toyota depreciated much slower than the GM So actually aeer 5 years the price of a second- hand Toyota Corolla was 18% higher than the Prism. This example clearly illustrates the rela>vity of price influenced by perceived value. 11

12 Sec+on 1: Know the Clients, Know the Products Tip 1: Most Common Reasons People Buy Reputa>on provides a sense of security. When people hear from someone who has tried the product and likes it, they are at a more comfortable making a decision for the purchase. That is why it is good business for a professional to protect their good name and do everything in their power to ensure that everyone they come in contact with sees them as a person with a good reputa>on. It is important to remember that credibility and truthfulness will win far more customers than exaggerated claims and over- the- top promises. Credibility and/or creden>als verify the purchase and have a similar effect to tes>monials. It makes strangers feel more comfortable. In addi>on, creden>als make a person seem more "trustworthy. Credentials = trustworthy 12

13 Sec+on 1: Know the Clients, Know the Products Tip 1: Most Common Reasons People Buy People buy products to boost their ego or increase their social status. As silly as it may seem, lots of people want products simply because the fact that they own these products gives their social status a jump forward. This is especially common when it comes to fads and innova>on, like the latest electronic wonder, limited edi>on toys, or brand name clothing or jewelry. To appeal to these purchasers, it is good to emphasize the features that make your product cool and state- of- the- art. It helps to add a feeling of exclusivity into the dialogue to make the client feel part of a special group if they buy the product. Fads + Features + Feelings = Social Status 13

14 Sec+on 1: Know the Clients, Know the Products Tip 1: Most Common Reasons People Buy Ask par>cipants to look at the comments made by clients listed in the column on the right and then match the comment to the reason why people buy products. Ask them to place the number on the line in front of the reason to iden>fy the matching comments. Show the answers and summarize by asking if there are any ques>ons. 14

15 Sec+on 1: Know the Clients, Know the Products Tip 1: Most Common Reasons People Buy Teaching Strategy 1: Seek and Share Students are asked to seek examples of ads that illustrate the following categories Need Promises Value Reputation Social Status Students share their findings Why is this strategy effec+ve? When students look for example ads they are con>nuing to have the subject in mind. By finding the examples they are connec>ng once again to the meaning of what is being learned. Then, when they share their findings with other students they are able to speak up about what they are learning 15

16 Show examples of what students have found during the seek and share exercise. And have par>cipants call out what they believe the mo>ve for buying is with each of the upcoming photos (slides 13-22) In this example, OPI adver>ses its latest collec>on inspired by the movie Burlesque starring Cher and Chris>na Aguilara their reputa>ons are being used to offer credibility to the consumer. 16

17 In this example, Starbucks grabs aqen>on with a promise approach. Staying awake will never be painful anymore if you buy their product. 17

18 And, we all have heard about Black Friday. It s the biggest value day of the year. 18

19 In this example Starbucks con>nue to recommend based on reputa>on and this >me they even state the word cer>fied and encompass the world as their market. 19

20 A perfect ad to aqract us based on social status. This ad for Diet Coke is trending nothing but social status. 20

21 We have all heard the ads during late night TV that yell at us about the need for OxiClean just goqa have what you need. 21

22 Here's one that has deeper meaning to us in the cosmetology industry the Flowbee. It gained popularity through it's As Seen on TV and infomercial adver>sing. Through the use of catchy sales pitches, consumers responded with I Need to Have This! 22

23 A picture paints a 1,000 words is definitely true with this promise. Who wouldn t want to rush out and make this purchase? 23

24 BOGO or buy one get one free is trending heavily these days. Who doesn't need a one piece, lie around, lounge around, full body lazy wear? But wait, it's buy one get one free! Only $29.95! Act now and receive 2 pair of matching footsies FREE! What a value! 24

25 And, last but not least Again, a picture paints a thousand words. The hood- mounted jaguar sets the standard for social status. 25

26 Sec+on 1: Know the Clients, Know the Products Tip 2: Buying Differences Between Genera+ons Tip 2 recommends iden>fying the reasons behind buying decisions of the various genera>ons which include the igenera>on, Millenials, Genera>on X, Baby Boomers, and the Tradi>onalists. The igenera>on, also called Gen Z, is born en>rely in the Internet era. The Millenials, also referred to as Gen Y or echo boomers were born in the 1980s Genera>on X, born between , represents approximately 44 million buyers. Baby Boomers are those born from and represents approximately 76 million people. And, last but not least, is the Tradi>onalists, referred to as the Greatest Genera>on, born from

27 Sec+on 1: Know the Clients, Know the Products Tip 2: Buying Differences Between Genera+ons The igenera+on represents buyers that are more recep>ve to any adver>sing using technology such as Groupon, the latest Apps, and QR or Quick Response Codes. Many of the Millenials live at home with their overprotec>ve parents (the Boomers). They are 75 million strong and have disposable income because of their parents support. Research supports that this genera>on processes informa>on quickly and is especially brand loyal. Millenials like innova>ve marke>ng approaches and adver>sing that uses humor or thinks outside the box, and they are very responsive to Internet campaigns. 27

28 Sec+on 1: Know the Clients, Know the Products Tip 2: Buying Differences Between Genera+ons Genera+on X members are in the peak of their earning and buying years. This genera>on loves to shop and is highly educated. The brand itself won t persuade these customers who are looking more into the value of a product. Tech- savvy and independent, they also like to save. Therefore, promo>ons can be a good way to aqract this target audience. 28

29 Sec+on 1: Know the Clients, Know the Products Tip 2: Buying Differences Between Genera+ons The Baby Boomers have an aqrac>ve buying power they spend $400 billion more per year than other genera>ons a fact that marketers are aware of. The boomers are known for their Peter Pan complex and will not appreciate being categorized as old! The octogenarian genera>on that has seen it all in terms of adver>sing and is part of the most savvy consumer segment are the Tradi+onalists. They want to know more than other genera>ons about a business and its products and generally don t shop for fun. The benefit here is that these seniors aim at pleasing their grandchildren and are also looking into products that will keep them ac>ve and that match their lifestyle. 29

30 Sec+on 1: Know the Clients, Know the Products Tip 2: Buying Differences Between Genera+ons Can you match the different signs or products with the genera>on that will be most aqracted to what the images are indica>ng? It is most likely that the Tradi>onalists will be aqracted to adver>sing that promotes the ability to stay ac>ve, while Genera>on X is aqracted to a promo>onal sign adver>sing a sale. The igenera>on would respond to a QR Code and the Baby Boomers would certainly take a look at a product that would help them keep looking young. And, last, but not least, the Millenials would be drawn to a collec>on of brand names. The important thing to remember here is that these are just indicators and the inten>on is to help you prompt your thinking when working to increase a response from different genera>ons. In the end, it is an ever- changing marketplace and you will need to stay in tune with the buying power and choices all genera>ons are making. 30

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32 Sec+on 1: Know the Clients, Know the Products Tip 2: Buying Differences Between Genera+ons Teaching strategy 2: A Bit of Drama Use Skits or Humor to Deepen Meaning Why is this strategy effective? Drama is an effective learning tool because it involves the student intellectually, physically, socially and emotionally. Activities in improvisation, pantomime, play-making and scene reenactment serve to develop the creative potential in the participants and help to develop critical thinking skills. Quip: Learning increases with the addition of each of the five senses. Smell is the quickest-acting. 32

33 Sec+on 1: Know the Clients, Know the Products Show video of a popular commercial that suggests there are buying differences between men and women. Men come from Mars and Women from Venus and Women shop. Men buy. You may have heard these expressions before. Indeed, men and women have different priori>es when making purchases. According to Wharton Marke>ng Professor Stephen J. Hoch, shopping behavior mirrors gender differences throughout many aspects of life. Women think of shopping in an interpersonal, human fashion and men treat it as more instrumental. It s a job to get done, Hoch says. Your personality describes your disposi>on as other people see it. Market researchers believe people buy products to enhance how they feel about themselves. Your gender also affects what you buy and how you shop. Women shop differently than men. Women Shop Men buy 33

34 Sec+on 1: Know the Clients, Know the Products Tip 3: Use the Products Being Sold Tip 3 states to use the products being sold. It is not uncommon for schools to use less expensive products in the classroom and/or dispensary than what is offered for retail purchase. This will oeen result in students and educators not having the opportunity to use or prac>ce with the products un>l they are scheduled for the student salon. Consider if a cleaning crew had been hired to clean a home or business. The crew has only had prac>ce working with harsh chemicals for cleaning. The home or business has expensive, an>que furniture that would be harmed if strong chemicals were used. Lack of appropriate prac>ce with a range of products would jeopardize this cleaning crew s poten>al for success. The reality is that products are different shampoo isn t just shampoo. Products will differ based on brands, ingredients, viscosity and the amount applied. This is why it is key for students and staff to use these products right from the start of their training. Oeen schools will provide a discount on retail products for staff and students making it easier for them to use the products being sold in the retail area. 34

35 Sec+on 1: Know the Clients, Know the Products Tip 3: Use the Products Being Sold Teaching Strategy 3: Next Top Model A guideline to make this >p come alive is to use the retail products in the classroom and during prac>ce sessions. The retail products should become a part of the school s culture. This will be a worthwhile investment for increasing success in retail sales. The benefit of this guideline is the more the students/staff believe in a product the more likely they are to share that with their clients. Another guideline is if you touch it, talk about it! Every >me a student shampoos, condi>ons and styles the mannequins, models, or each other they should share what product they chose, why they selected that product, and the features and benefits of this product. Prac>ce does make permanent. Yes, permanent. So, if students aren t in the habit of sharing the benefits of the product in the classroom, chances are they will likely con>nue this poor habit on the student salon. The benefit for this guideline is that students start understanding why choosing a par>cular product is important and how to prac>ce talking about it right from the start. If you touch it, talk about it! In addi>on, another guideline is that the staff wears the products being sold. This really makes perfect sense if you stop to think about it. People who work at Burberry do not wear Diesel clothes, nor do people who work at MAC makeup wear Clinique 35

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37 Sec+on 2: Personalize Retail Recommenda+ons The 5 tips in section 2 include: Tip 4: Stage the Retail Space Tip 5: Handle Objections from the Client Tip 6: Present the Benefits Tip 7. Use Best Practice Strategies Tip 8: Know if the Client is Ready to Buy 37

38 Sec+on 2: Personalize Retail Recommenda+ons Tip 4: Stage the Retail Space Tip 4 is all about staging the retail space. Believing that as long as you have inventory, clean retail shelves and a knowledgeable staff that this will sell your product is just wrong. While all of those things are very important there are a few other things to pay aqen>on to when staging the retail space for success. Joseph Pine and James Gilmore wrote an interes>ng book called The Experience Economy. In this book they introduce The Experience Realms which are four things that can be done to stage excep>onal experiences for guests. Here is a brief overview of the four realms men>oned in The Experience Economy. The first experience is the Educa>onal Realm which is when a guest absorbs the events unfolding while ac>vely par>cipa>ng. An example of this could be a cooking class. 38

39 Sec+on 2: Personalize Excep+onal Retail Recommenda+ons Tip 4: Stage the Retail Space The second experience is the Escapist Realm which is when a guest ac>vely par>cipates in an immersive environment, such as a theme park or casino. 39

40 Sec+on 2: Personalize Excep+onal Retail Recommenda+ons Tip 4: Stage the Retail Space The third experience is the Esthe>c Realm which is when a guest is immersed but remains passive, similar to visit to a museum or art gallery or lying on the beach. 40

41 Sec+on 2: Personalize Excep+onal Retail Recommenda+ons Tip 4: Stage the Retail Space The fourth experience is the Entertainment Realm which is when a guest is passively absorbed through the senses, like listening to music or aqending a symphony. 41

42 Sec+on 2: Personalize Retail Recommenda+ons Tip 4: Stage the Retail Space Here are some examples of how the Realms might help stage the retail space. For the Educa>onal Realm consider having tester products available for anyone to try while having a knowledgeable staff member or student share the features and benefits. Did you know that? The majority of unplanned purchases are the result of touching, hearing, smelling or tasting something in a store. For the Escapist Realm consider adop>ng a central theme related to a spa atmosphere. 42

43 Sec+on 2: Personalize Retail Recommenda+ons Tip 4: Stage the Retail Space For the Esthe>c Realm consider having a makeup bar where a guest could receive a mini facial or shoulder massage and makeup applica>on. The mini facial or shoulder massage would be the esthe>c experience, while the makeup applica>on could be apart of the educa>onal experience. For the Entertainment Realm consider playing fashion show videos in the recep>on area and background music to set the tone of the atmosphere. 43

44 Sec+on 2: Personalize Retail Recommenda+ons Tip 4: Stage the Retail Space Teaching Strategy 4: Real- world Connec+ons Assign students to visit salons and report back their findings related to the various realms of experience Summarize findings by analyzing the most popular examples of realms of experience that were found Why is this strategy effec+ve? Applying what is being learned in real-life situations makes content easier to understand and helps bring out the relevance of content. Regardless of the objec>ve value of an ac>vity or topic, if students do not recognize its value, they may not be mo>vated to expend effort. However, if students clearly see how coursework connects to their goals, interests and concerns, they will be more likely to value it, and thus more mo>vated to invest >me and effort. Real- world connec>ons bring value to the learning process. Quip: Relevance promotes effort. 44

45 Here is an example of an Apple store, making full use of the educa>onal realm. 45

46 An outstanding example of the escapist realm is the Rainforest Café. 46

47 And, it is easy to see how this esthe>c realm makes us want to feel right at home. 47

48 And, this salon takes the entertainment realm to the full extent of the meaning by incorpora>ng sports tv viewing for clients. 48

49 Sec+on 2: Personalize Retail Recommenda+ons Tip 5: Handle Objec+ons from the Client Typical objec>ons from the client regarding the purchase of retail include: the cost of the product, lack of educa>on related to using the product and being pessimis>c meaning having a nega>ve view, or skep>cal. It will be helpful for you to be prepared to handle these typical objec>ons from clients. Before moving on, however, it might be important to say that in some cases it isn t the client who creates a roadblock in the recommenda>on process. Some>mes it is the stylist who is just afraid to ask or considers retail a job for someone else to do. In this session, we are assuming those problems have already been addressed. Now, moving on 49

50 Sec+on 2: Personalize Retail Recommenda+ons Tip 5: Handle Objec+ons from the Client If the client has a cost objec>on and says, This cost too much for my budget. You can handle the objec>on by breaking it down and saying, Actually, if you compare this product to others you ll find it breaks down to a few cents a day. If the client has a concern about a lack of knowledge about how to use the product and says, I won t be able to create the same look you did. You can handle the objec>on by removing the fear and saying, Here s a quick and easy way for you to use this product and gain the same results as today. If the client is pessimis>c or has a general nega>ve view and says, I tried one of those before and it didn t work. You can handle the objec>on by offering a tes>monial and saying, This is what works for me when I work with fine hair like yours. Tip 5 is all about being prepared to handle objec>ons. By having some responses prac>ced and ready, a professional is more likely to gain success when making retail recommenda>ons. 50

51 Sec+on 2: Personalize Retail Recommenda+ons Tip 5 Handle Objec+ons from the Client Teaching Strategy 5: Reality Role- play Assign students to work as pairs (dyads) Issue scripted role-plays to each pair Assign pairs to be Partner A and Partner B Assign Partner A to be the guest on role-play 1 and Partner B to be the service provider Assign Partner B to be guest on role-play 2 and Partner A to be the service provider See handout for role- plays Why is this teaching strategy effective? A scripted role- play is a more sophis>cated 51

52 Sec+on 2: Personalize Retail Recommenda+ons Tip 6: Present the Benefits As a designer begins to consider which product to recommend to meet the needs of the client, it is important to understand what the recommended product will offer to the client. To define the benefits of the recommended retail product, keep these ques>ons in mind: What want or need does the product satisfy? What obstacle does the product help overcome? Can the benefits be clearly defined in terms of fulfilling client needs, wants and overcoming obstacles? 52

53 Sec+on 2: Personalize Retail Recommenda+ons Tip 6: Present the Benefits Aeer clearly defining what the benefits of the product are, consider how the product can be differen>ated from other products. In other words, determine if the benefit can be described in a way that helps set it aside from other products. This descrip>on becomes the unique selling posi>on for the recommended product. This benefit descrip>on helps the client iden>fy the ability to overcome their hair, skin or nail care obstacles. By separa>ng out or differen>a>ng the uniqueness of the product the designer helps the client move forward in the decision process. 53

54 Sec+on 2: Personalize Retail Recommenda+ons Tip 6: Present the Benefits Aeer the designer has defined the recommenda>on and determined what makes it different from other products, the recommenda>on is delivered to the client. A few simple steps to focus on when developing the recommenda>on message include: 1) First, it s about the guest s needs; not the designer s. The focus is on how the guest will benefit by choosing the product it s the what s in it for me factor. Discussion centers on how the guest will be able to overcome obstacles by choosing the recommended product. 2) Second, remember, as stated earlier, people choose products based on the end result it will offer. The designer needs to clearly and specifically inform the guest about the results the product will achieve. Educa>ng the client on how the benefits of the product will make them happier, save >me, solve issues and add value to their lives will help them move forward with the decision. 3) And, determine when and where to deliver the recommenda>on. Talking about products should start as early as walking the guest through the retail area at the beginning of the service. Other possible >mes for making the recommenda>on 54

55 Sec+on 2: Personalize Retail Recommenda+ons Tip 6: Present the Benefits Sugges>ons of words that help focus the benefits of the recommenda>on could be thought of as the The 5 R s Restores, Revives, Renews, Reconstructs and Reduces. These sample words easily promote benefits such as: 1. Restores hair to a soe, silky texture 2. Revives hair luster and vibrancy 3. Renews hair color with long- las>ng shine 4. Reconstructs hair structure for op>mal health 5. Reduces frizz up to 90% by trapping in moisture to seal and smooth the hair cu>cle 55

56 Sec+on 2: Personalize Retail Recommenda+ons Tip 6: Present the Benefits Another example might include presen>ng the benefits such as: The benefits of XYZ Condi>oner include that it acts as a moisturizing lo>on for hair, which will make you happy. It dries the hair faster which saves you >me. It protects the hair from the sun and heat which will solve two problems in one step. It will help manage your hair, which will certainly reduce stress in your day to day life. No>ce how this sample benefits statement matches the benefits of the product to how the product will make the client happier, save them >me, solve their problems and reduce stress. 56

57 Sec+on 2: Personalize Retail Recommenda+ons Tip 6: Present the Benefits Tip 6 offers an important message present the benefits. In order to present the benefits a designer needs to know the difference between the features and benefits of a product. Features define what the product is. Benefits describe what the product does. People choose products because of what they do or in other words, because of the benefits offered by the product. This means that a designer clearly and specifically needs to inform the guest about the results a product will achieve. The designer turns features into benefits and then educates the guest on how the benefits of the product will make them happier, save them >me, solve their issues and/or add value to their lives. 57

58 Sec+on 2: Personalize Retail Recommenda+ons Tip 6: Present the Benefits Salon Success offers a guideline that it is good to remember. It is that 20% of the conversa>on should be about a product s features and 80% of the conversa>on should be about a product s benefits. 58

59 Sec+on 2: Personalize Retail Recommenda+ons Tip 6: Present the Benefits Teaching Strategy 6: It s In the Bag! Look at the item in the bag in the center of the table Brainstorm for ideas about who might want to buy this item Determine the features and benefits of the item to match the needs of a buyer Present the features and benefits for brainstorming Why is this strategy effective? The brainstorming technique is widely used to encourage par>cipants to generate ideas in an unhindered manner. Brainstorming encourages students to par>cipate ac>vely in idea- genera>on exercises and experience the benefits of a mul>- dimensional approach to analyzing problems or solu>ons. Asking interpre>ve ques>ons, rather than yes/no ques>ons, leads to produc>ve brainstorming which helps build crea>ve thinking skills. Quip: The more crea>ve thinking you do, the more crea>ve you will be. 59

60 Sec+on 2: Personalize Retail Recommenda+ons Tip 7: Use Best Prac+ce Strategies Successful professionals take advantage of using best prac>ce strategies to avoid the pi}alls when recommending retail to clients. The three best prac>ce strategies are: 1. Take advantage of branding by making a recommenda>on based on the quality and reputa>on of the product. 2. Use tes>monials to offer possible influencers. 3. Promote the amount of product being sold. 60

61 Sec+on 2: Personalize Retail Recommenda+ons Tip 7: Use Best Prac+ce Strategies If a professional selects the best prac>ce strategy of taking advantage of branding they might choose to say, This product is made by a company that is very involved in environmental concerns. Or, if the professional uses tes>monials as a best prac>ce strategy they might say, You know Jennifer Gordon don t you? This is the product she swears by and has told me she recommends it to her friends. And, if the professional chooses to promote the amount of product being sold as a best prac>ce strategy they might say, This product is flying off the shelves. Lots of people have bought it in the past few weeks. These best prac>ce strategies help avoid the pi}alls that are some>mes present when it comes >me to improve retail results. 61

62 Sec+on 2: Personalize Retail Recommenda+ons Tip 7: Use Best Prac+ce Strategies Teaching Strategy 7: Sign- on- a- s+ck Response Raise the sign on a stick that identifies the best practice strategy the statement represents Look around the group to see how your response compares to other sign-on-astick holders Why is this teaching strategy effec+ve? This strategy employs using what is called a hold- up or response card as a teaching tool. The goal of the hold- up tool is to engage students by requiring ac>ve par>cipa>on and to improve student performance through increased engagement Students tend to like hold- ups par>ally because they feel like they are playing a game (and we all know how much students love games). When done in small groups, students enjoy huddling, holding up their cards, and defending their choices. While in their groups making their decisions, students begin to teach each other as they 62

63 Sec+on 2: Personalize Retail Recommenda+ons Tip 7: Use Best Prac+ce Strategies Teaching Strategy 7: Sign- on- a- s+ck Response My husband uses this and he swears by it. Tes>monial Once you smell this product, you ll recognize who made it. Branding Demand is high for this product in summer due to humidity. _ Amount My clients prefer this spray because it s light and s>ll holds. Tes>monial You can always tell who made the product by the packaging. Branding This product is so popular it s hard to keep it on the shelf. - Amount I have used this myself and can tell you it works on fine hair. - Tes>monial 63

64 Sec+on 2: Personalize Retail Recommenda+ons Tip 8: Know if the Guest is Ready to Buy Tip 8 is: Know if the guest is ready to buy. In order to know, today s professional is prepared with what can be described as trial closings quick checkpoints to see how the guest is feeling about a possible purchase. Popular closing techniques include: Demo Close Ques>on Close Alterna>ve Close Take away Close And the Invita>on Close. 64

65 Sec+on 2: Personalize Retail Recommenda+ons Tip 8: Know if the Guest is Ready to Buy The Demo Trial Closing statement is described as offering to demonstrate how the product works. An example might be, If I could show you a product that would help you The Ques>on Trial Closing statement refers to asking a ques>ons to see if the client is ready to buy, such as What do think of what I have described so far? Or, How does your hair feel at this point? Or, Did you no>ce the fragrance? 65

66 Sec+on 2: Personalize Retail Recommenda+ons Tip 8: Know if the Guest is Ready to Buy The Alterna>ve Close refers to offering more than one choice based on size, aroma, viscosity, holding power, or color. Examples may include, This comes in several convenient sizes, including a travel size, which would be handy for you. Or, Which aroma would you prefer, peppermint or vanilla? The Take- Away Close means to suggest the product may be sold out based on its popularity. For example, This product is moving off the shelves so fast, I m not sure there will by any lee by the >me you leave. And, finally, the Invita>on Close refers to encouraging the client to try the product. For example the professional might say, I would like to see you give this product a try. As a professional, you will grow to appreciate having these suggested trial closings in your repertoire or reserve. It s like tes>ng the water to see if it is too hot or too cold. By applying a trial close you can see if the client is ready to buy. 66

67 Sec+on 2: Personalize Retail Recommenda+ons Tip 8: Know if the Guest is Ready to Buy Teaching Strategy 8: Matchmaker, Matchmaker Use the terms in the Jump Start box at the boqom of the screen and match them to the statements in the boxes above to connect the different closing sugges>ons with their example. The first example is the Invita>on Close which refers to encouraging the client to try the product. For example the professional might say, I would like to see you give this product a try? Next is the Demo Trial Closing statement which is described as offering to demonstrate how the product works. An example might be, If I could show you a product that would help you manage your curls, would you be interested in purchasing it? Then, the Alterna>ve Close refers to offering more than one choice based on size, aroma, viscosity, holding power, or color. This example is, Which size would you prefer, the 8- ounce or 16- ounce? 67

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69 Sec+on 3: Increase Retail Produc+vity The 3 >ps in Sec>on 3 include: Tip 9: Increase the 4 R s Tip 10: Master the Marke>ng Calendar Tip 11: Get Digi>zed 69

70 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4R s More is More Tip 9 is to Increase the 4 R s More is More. The 4 R s include Requests, Referrals, Reten>on and Retail. Take a look at Requests and Referrals first. The best way to increase request and referral clients is to satisfy more clients so they will return for future salon visits and recommend others to schedule appointments with you. In order to do that, practice dialogues or role plays can be used to enhance the skills needed to ensure continued and improved success. Retention is all about asking more clients to schedule future appointments to increase the frequency of salon visits and using strategies that help build loyalty. Having client incentives for frequency of visits is a great way to help increase retention. Increasing retail is all about recommending and selling more products to more clients and tracking results. The best way to increase retail numbers is to track results and make changes. As the upcoming examples show, strategies for the 4 R s often support each other. For example, research supports that if a client buys more retail per visit, they 70

71 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4 R s - More is More As men>oned earlier, the best way to increase request and referral clients is to sa>sfy more clients so they will return for future salon visits and recommend others to schedule appointments with you. In order to do that prac>ce dialogues or role plays can be used to enhance the skills needed to ensure con>nued and improved success. Practice, practice, practice. Practice includes preparing in advance for what is going to be said. Or, prac>ce with another person who offers feedback. And, prac>ce in the real world of actually asking the client for a request or referral. Practicing how to approach the client, where to stand, the words to say, and so forth, enhances the skills needed to achieve the confidence to make requests and referrals happen. Sample dialogues help make practice a piece of cake. Remove for narra>on (Read dialogue on the screen with a partner) 71

72 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4 R s More is More Frequency incen>ves or rewarding clients for making return visits is the strategy recommended for increasing reten>on. Clients are more likely to return >me aeer >me if they know their loyalty is being recognized as a valuable ac>on. Client reten>on is the most effec>ve marke>ng program as it is less expensive and more profitable to keep a current client versus recrui>ng new clients. Remove for narra>on (Read dialogue on the screen with a partner) 72

73 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4 R s More is More A best practice method for increasing retail sales is, as stated earlier, to sell more products to more clients. An important fact to remember, supported by industry research, is that if retail or one home care product is sold to a client there is a 30% chance the client will return; if the client buys 2 products there is a 60% chance they will return, and if the client buys 3 products, there is a 90% chance they will return. Modern Salon reports that Retail = Retention. Professionals often underestimate the value of retail as a gauge for long term retention of clients. When a client purchases retail, they are letting the professional know that they trust in what they say. Recommending retail to your client is not only about teaching them how to take care of their hair. When the client purchases retail, they think of their stylist every time they use that hairspray, or shampoo. Think about it have you ever had a certain fragrance of hairspray that reminded you of your first job, or a certain time in your life? Having clients purchase retail keeps the professional in front of their mind everyday between appointments. And by staying in their view, through retail products, professionals have more chance of getting them back in their chair. 73

74 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4 R s More is More Tip 9 expands the familiar thinking of less is more and asks you to consider that more is more. In this case, it suggests that more services performed for a client equates to more retail the client will be likely to purchase and increases the chances the client will remain as a client. Therefore, the formula becomes: more services = more retail = more reten>on. This simple equa>on has a powerful impact on increasing future retail results. The more services a professional schedules or upsells, the more opportunity that exists for sugges>ng retail. The more retail sold, the more likelihood the guest will return, which builds reten>on. This opportunity is not just for retail reten>on but also for service reten>on. When a professional increases services and retail they have also increased showcasing their talent. It s a win- win. An example of how this could work is that a hair designer might suggest 6 color foils to complement the haircut service a guest just received thereby increasing the sales total by an addi>onal $35. This suggested upsell now allows the opportunity for the recommenda>on of a color shampoo, cos>ng $12. The suggested add- on color service might require the guest to make a separate appointment to come back to the salon to retouch the color. 74

75 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4 R s Look for Gaps Looking for gaps begins by thinking of the daily Appointment Schedule as a daily Guest Planner. Oeen professionals see the daily Appointment Schedule as just that - what appointments are scheduled for the day. By thinking of the Appointment Schedule as a Guest Planner a professional is more likely to look at a day and see empty gaps or places where there is not a plan for a guest. These gaps, where there are no guests scheduled are windows of opportunity. 75

76 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4 R s Look for Gaps A tradi>onal thought in the industry has been the more guests you have in a given day, the more money you ll take home. That thought has now been replaced with it s not how many guests you have, it s how many services you perform on each guest. Consider the 80/20 rule. 20 percent of a salon s guests generate 80 percent of the service revenue. For example, a professional might in the past have looked at the appointment book and said, Wow, I m only booked for 50% of my >me today. The new thought would be I have an opportunity to upsell services to my scheduled guests and fill in those gaps in my day. Another tradi>onal way of thinking might include looking at the appointment book and saying With only 3 guests for the day, I ll barely be making any money. The new thought would be, I have an opportunity to make more money today with only 3 guests than what I made yesterday with 6 guests. Or, another familiar way of tradi>onal thinking might be to look at the book and say, It s going to be a very long, slow and boring day. Instead the new thought would 76

77 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4 R s Look for Gaps Windows of opportuni>es can be filled by asking three ques>ons. The first ques>on is what service or retail recommenda>ons are being missed with guests? Upselling or selling specialized and/or addi>onal services to guests beyond what they had originally scheduled can be used to fill the daily gaps or windows of opportunity. By looking for the gaps, then considering the service and retail recommenda>ons that could be scheduled the professional begins the process of planning to fill the book. The second ques>on to be considered is, how much money do these opportuni>es account for in a day? No maqer what the addi>onal charge is for successfully obtaining an upsell service, it brought in more than what was scheduled. Most upselling recommenda>ons are less than the exis>ng scheduled service. Simple ideas for upselling include a thermal style (if not included in the scheduled service), waxing, condi>oning treatment, a couple of foils, color glaze, basic manicure or polish change or makeup applica>on. The third ques>on is, what would capitalizing on those opportuni>es mean? Upselling has been linked to client reten>on because guests who receive specialized 77

78 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4 R s Look for Gaps Tip 9, Look for Gaps, is really saying it s not what s on the appointment book that determines success, but what a professional does with what s on the book. Planning is about deciding where you want to go and end up. Successful professionals who plan how to fill their book for perfect days have more perfect days. 78

79 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4 R s Teaching Strategy 9: Real- life Scenario CASE SCENARIO: Client receives a haircut and style every 3 months and schedules a singleprocess color every 2 months. She purchases a bottle of shampoo and conditioner during every other haircut appointment and a color locking styling spray during each color appointment. How much does this client spend in total services in 12 months? How much does this client spend in retail in 12 months? How much does this client spend in total revenue in 12 months? This loyal client refers three more clients. What is the total amount of revenue generated from these additional clients in a 24-month time frame? Menu located in handout MENU: Women s Cut & Style $35 79

80 Sec+on 3: Increase Retail Produc+vity Tip 9: Increase the 4 R s Teaching Strategy 9: Real- life Scenario CASE SCENARIO: See handout Client receives a haircut and style every 3 months and schedules a singleprocess color every 2 months. She purchases a bottle of shampoo and conditioner during every other haircut appointment and a color locking styling spray during each color appointment. How much does this client spend in total services in 12 months? How much does this client spend in retail in 12 months? How much does this client spend in total revenue in 12 months? This loyal client refers three more clients. What is the total amount of revenue generated from these additional clients in a 24-month time frame? MENU: Menu located in handout Women s Cut & Style $35 Single-Process Color $45 Moisture Shampoo $14.49 Moisture Conditioner $16.99 Color Locking Styling Spray $

81 Sec+on 3: Increase Retail Produc+vity Tip 10: Master the Marke+ng Calendar Tip 10 is to master the marke>ng calendar. The first step of Mastering the Marke>ng Calendar is KNOW Know what the promo>ons are. It s important to know the current retail and service promo>ons that are being offered at all >mes. This ensures that you re able to suggest these promo>ons by tailoring them to meet the needs of your guests. For example, planning ahead will help you know which clients might consider adding foil color due to a special offer. Or, previewing client records might help you draw aqen>on to clients that like certain products that are being promoted at a special price. Knowledge is key. 81

82 Sec+on 3: Increase Retail Produc+vity Tip 10: Master the Marke+ng Calendar The second step of Mastering the Marke>ng Calendar is FOLLOW. Follow the promo>onal calendar to guide retail efforts. A promo>onal calendar is a great tool to create and use to increase poten>al revenue. Crea>ng the calendar, in advance, allows professionals to view promo>ons for 12 months and ensures any important holidays or seasons don t go unno>ced. The calendar also clearly communicates to all professionals what the promo>ons are and their goals. 82

83 Sec+on 3: Increase Retail Produc+vity Tip 10: Master the Marke+ng Calendar Here is an at- a- glance view of a marke>ng calendar. This view makes it easy to read and serves as a quick reference of the plan. 83

84 Sec+on 3: Increase Retail Produc+vity Tip 10: Master the Marke+ng Calendar This is an example of a more detailed marke>ng calendar with ideas for service and/ or retail promo>ons during specific months of the year. No>ce a promo>on could be assigned for a specific holiday or season. Remember, a service or retail promo>on does not have to be for special occasions. They could simply be promo>ons by week or a certain >me frame. 84

85 Sec+on 3: Increase Retail Produc+vity Tip 10: Master the Marke+ng Calendar This is an example of a more detailed marke>ng calendar with ideas for service and/ or retail promo>ons during specific months of the year. No>ce a promo>on could be assigned for a specific holiday or season. Remember, a service or retail promo>on does not have to be for special occasions. They could simply be promo>ons by week or a certain >me frame. 85

86 Sec+on 3: Increase Retail Produc+vity Tip 10: Master the Marke+ng Calendar Remember the first step was to Know what the promo>ons are. The second step was to Follow the promo>onal calendar to guide retail efforts and the third and final step of Mastering the Marke>ng Calendar is to Win. Win means a professional carefully plans to win the promo>onal contests. Consider the possibili>es of winning prizes, think of the recogni>on that will be gained and last but, certainly not least, think about the financial gain that will be earned. Nothing beats intrinsic mo>va>on. Keep your eye on the goals. Know, Follow and Win. Set yourself daily and weekly goals and reevaluate as you go. 86

87 Sec+on 1: Increase Retail Produc+vity Tip 10: Master the marke+ng Calendar Teaching Strategy 10: Claim to Fame Discuss the most popular service or retail promo>ons you have had in your school. Why is this strategy effec+ve? Discussion is effec>ve because people don t argue with their own data. When students have the opportunity to talk about what they are learning, they make up their mind and in some cases, change their mind about their view or understanding of the topic. Quip: Discussion is the backbone of learning. 87