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The Winners Aren't: Lessons from Retail Superstars

Learn from retail superstars to create fanatics, engage community, and drive revenue growth. Insights on staff, design, events, and more to dominate the market.

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The Winners Aren't: Lessons from Retail Superstars

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  1. LONG Tom Peters’ RE-IMAGINE! EXCELLENCE/2016 HSM Expo 2016 Sao Paulo/09 November 2016 (This presentation/10+ years of presentation slides at tompeters.com; also see our annotated 23-part Monster-Master at excellencenow.com)

  2. BE THE BEST

  3. AND THE WINNERS AREN’T/ARE

  4. “I don’t believe in economies of scale. You don’t get better by being bigger. You get worse.”—Dick Kovacevich

  5. “Mr. Foster and his McKinsey colleagues collected detailed performance data stretching back 40 years for1,000U.S. companies.They found thatNONEofthe long-term survivors managed to outperform the market. Worse, the longer companies had been in the database, the worse they did.” —Financial Times

  6. “When asked to name just one big merger that had lived up to expectations, Leon Cooperman, former cochairman of Goldman Sachs’ Investment Policy Committee, answered:I’M SURE THERE ARE SUCCESS STORIES OUT THERE, BUT AT THIS MOMENT I DRAW A BLANK.”M & A success rate as measured by adding value to the acquirer:15%Source: Mark Sirower, The Synergy Trap

  7. AND THE WINNERS AREN’T/ARE

  8. Retail Superstars: Inside the 25 Best Independent Stores in America—by George Whalin

  9. JUNGLE JIM’S INTERNATIONAL MARKET, FAIRFIELD, OH:“An adventure in ‘shoppertainment,’ begins in the parking lot and goes on to 1,600 cheeses and 1,400 varieties of hot sauce—not to mention 12,000 wines priced from $8-$8,000 a bottle; all this is brought to you by 4,000 vendors. Customers from every corner of the globe.” BRONNER’S CHRISTMAS WONDERLAND, FRANKENMUTH, MI, POP 5,000:98,000-square-foot “shop” features 6,000 Christmas ornaments, 50,000trims, and anything else you can name pertaining to Christmas. …” Source: George Whalin, Retail Superstars: Inside the 25 Best Independent Stores in America

  10. “AMERICA’S BEST RESTROOM” —Sixth Annual competition sponsored by Cintas Corporation, a supplier of restroom cleaning and hygiene products

  11. Lessons [for Everyone] from Retail Superstars! 1. Courses/Workshops/Demos/Engagement 2. Instructional guides/material/books 3. Events & Events & Events … 4. Create “Community” of customers 5. Destination 6. Women-as-customer 7. Staff selection/training/retention (FANATICISM) 8. Fanaticism/Execution 9. Design/Atmospherics/Ambience 10. Tableaus/Products-in-use 11. Flow/starts & finishes (Disney-like) 12. 100% orchestrated experience/focus: “Moments of truth” 13. Constant experimentation/Pursue Little BIG Things 14. Social Media/Ongoing conversation with customers 15. Community star 16. Aim high 17. PASSION

  12. “BE THE BEST. IT’S THE ONLY MARKET THAT’S NOT CROWDED.” From: Retail Superstars: Inside the 25 Best Independent Stores in America, George Whalin

  13. Commerce/Metro Bank:Get ’Em Away From the ATM and Into the Branches:7X. 7:30A-8:00P. Fri/12A.7:30AM = 7:15AM.8:00PM = 8:15PM.(+2,000,000 dog biscuits)Source: Vernon Hill, Fans, Not Customers

  14. The Commerce/Metro Bank Model“COST CUTTING IS A DEATH SPIRAL.”Source: Source: Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World

  15. “OUR WHOLE STORY IS GROWING REVENUE.”—Vernon Hill (Top-line driven; standard is bottom-line driven by cost cutting)

  16. The Commerce/Metro Bank Model“Are you going to costcut your way to prosperity?Or …Are you going to spend your way to prosperity?”Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World

  17. The Commerce/Metro Bank Model“OVER-INVEST IN OUR PEOPLE, OVER-INVEST IN OUR FACILITIES.”Source: Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World

  18. The Commerce/Metro Bank Model“WE WANT THEM IN OUR STORES.”Source: Vernon Hill, Fans! Not Customers. How to Create Growth Companies in a No Growth World

  19. The Commerce/Metro Bank Model*DEPOSIT FOCUSED.*CUSTOMER VALUE-ADDED.*GREAT RETAIL EXPERIENCE.*BEST FACILITIES. *BEST LOCATIONS.*NO STUPID RULES.*DRIVEN BY REVENUE GROWTH, NOT COST REDUCTION.Source: Vernon Hill, Fans! Not Customers. How to Create Growth Companies in a No Growth World

  20. The Commerce/Metro Bank Model“EVERY COMPUTER AT COMMERCE BANK HAS A SPECIALREDKEY ON IT THAT SAYS, ‘FOUND SOMETHING STUPID THAT WE ARE DOING THAT INTERFERES WITH OUR ABILITY TO SERVICE THE CUSTOMER? TELL US ABOUT IT, AND IF WE AGREE, WE WILL GIVE YOU $50.’”Source: Vernon Hill, Fans! Not customers. How to Create Growth companies in a No Growth World

  21. Michael Raynor and Mumtaz Ahmed: THE THREE RULES: How Exceptional Companies Think*: 1. Better before cheaper. 2. Revenue before cost. 3. There are no other rules. (*From a database of over 25,000 companies from hundreds of industries covering 45 years, they uncovered 344 companies that qualified as statistically “exceptional.”) Jeff Colvin, Fortune: “The Economy Is Scary … But Smart Companies Can Dominate”: They manage for value—not for EPS. They get radically customer-centric. THEY KEEP DEVELOPING HUMAN CAPITAL.

  22. MITTELSTAND* ** *“agile creatures darting between the legs of the multinational monsters”(Bloomberg BusinessWeek, 10.10) **E.g. Goldmann Produktion

  23. “agile creatures darting between the legs of the multinational monsters” Source: Bloomberg BusinessWeek on the GermanMITTELSTAND

  24. Baader (Iceland/80% fish-processing systems) Gallagher (NZ/electric fences) W.E.T. (heated car seat tech) Gerriets (theater curtains and stage equipment) Electro-Nite (sensors for the steel industry) Essel Propack (India/tooth paste tubes) SGS (product auditing and certification) DELO (specialty adhesives) Amorim (Portugal/cork products) EOS (laser sintering) Beluga (heavy-lift shipping) Omicron (tunnel-grid microscopy) Universo (wristwatch hands) Dickson Constant (technical textiles) O.C. Tanner (employee recognition/$400M) Hoeganaes (powder metallurgy supplies) Hidden Champions* of the 21st Century: Success Secrets of Unknown World Market Leaders/Hermann Simon (*1, 2, or 3 in world market; <$4B; low public awareness)

  25. I love [that “L-word” again—what can I say?] …Middle-sized Niche- Micro-niche Dominators!* *"Own" a niche through EXCELLENCE/INNOVATION! (Writ large: Germany’s MITTELSTAND/See below)

  26. “Wicked problems”

  27. “ ‘Commodity’ is a state of mind. ANYTHING can be DRAMATICALLY differentiated.”

  28. Small Giants: Companies that Chose to Be Great Instead of Big (Bo Burlingham) “THEY CULTIVATED EXCEPTIONALLY INTIMATE RELATIONSHIPS WITH CUSTOMERS AND SUPPLIERS, based on personal contact, one-on-one interaction, and mutual commitment to delivering on promises. “EACH COMPANY HAD AN EXTRAORDINARILY INTIMATE RELATIONSHIP WITH THE LOCAL CITY, TOWN, OR COUNTYin which it did business —a relationship that went well beyond the usual concept of `giving back.’ “The companies had what struck me as UNUSUALLY INTIMATE WORKPLACES. “I noticed thePASSIONthat the leaders brought to what the company did.THEY LOVED THE SUBJECT MATTER, whether it be music, safety lighting, food, special effects, constant torque hinges, beer, records storage, construction, dining, or fashion.”

  29. The Future Is Small: Why AIM [Alternative Investment Market] Will Be the World’s Best Market Beyond the Credit Boom—Gervais Williams, superstar fund manager (FT/1217.14: “Research shows that new and small companies create almost all the new private sector jobs and are disproportionately innovative.”)

  30. VALUE-ADDED

  31. TGRs & the “8/80” Fiasco

  32. Customers describing their service experience as “superior”: 8% Companies describing the service experience they provide as “superior”: 80% —Source: Bain & Company survey of 362 companies, reported in John DiJulius, What's the Secret to Providing a World-class Customer Experience?

  33. <TGWand …>TGR[Things Gone WRONG-Things Gone RIGHT]

  34. “May I clean your glasses, sir?” “May I help you down the jetway, ma’am.”

  35. “Courtesies of a small and trivial character are the ones which strike deepest in the grateful and appreciating heart.”—Henry Clay"Let's not forget that small emotions are the great captains of our lives."–—van Gogh

  36. “At our core, we’re a coffee company, but the opportunity we have to extend the brand is beyond coffee.IT’S ENTERTAINMENT.”—Howard Schultz“When Pete Rozelle ran the National Football League, it was a football business, and a good one.NOW IT’S TRULY AN ENTERTAINMENT BUSINESS.”—Paul Much, Investment AdvisorFrom George Whalin’s Retail Superstars: on Jungle Jim’s International Market, Fairfield, OH:“AN ADVENTURE IN‘SHOPPERTAINMENT.’ ”Boston Globe: “Why did you [Berkshire Hathaway] buyJordan’s Furniture?”Warren Buffett: “Jordan’s is spectacular. IT’S ALL SHOWMANSHIP.”

  37. NOT “Consultant-ese”“Experiencesare as distinct from services as services are from goods.”—Joe Pine & Jim Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

  38. CARL’S STREETSWEEPER**Flowerson the showroom floor/ courtesy Stanley Marcus

  39. Consider: Hire a theater director

  40. TGRs (on steroids):L(Very)BTs

  41. Las Vegas Casino/2X:“When Friedmanslightly curvedthe right angle of an entrance corridor to one property, he was ‘amazed at the magnitude of change in pedestrian behavior’—the percentage who entered increased fromone-thirdto nearlytwo-thirds.” —Natasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas

  42. Machine Gambling “Pleasing” odor #1 vs. “pleasing” odor #2: +45% revenue Source:“Effects of Ambient Odors on Slot-Machine Useage in Las Vegas Casinos,” reported inNatasha Dow Schull, Addiction By Design: Machine Gambling in Las Vegas (66% revenue, 85% profit)

  43. Big carts = 1.5X Source: Walmart

  44. 6.5 feet Away =-63% “Seconds”

  45. (1) Amenable to rapid experimentation/ failure “free” (PR, $$) (2) Quick to implement/ Quick to Roll out (3) Inexpensive to implement/Roll out (4) Huge multiplier (5) An “Attitude”

  46. 10 August 2011!

  47. Design RULES!APPLEmarket cap > Exxon Mobil**10 August 2011

  48. “We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design.DESIGN IS THE FUNDAMENTALSOUL OF A MAN-MADE CREATION.”—Steve Jobs

  49. Apple design:“Huge degree of care.” —Ian Parker, New Yorker, 23 March 2015, on Apple design chief Jony Ives

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