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Customer loyalty

‘Being a newsagent is addictive’ what a wonderful story

This article from the Irish Times is a good read, heartwarming, encouraging and inspiring for many.

End of an era as the Last Corner Shop closes: ‘I’m going to cry’
John Hyland’s devotion to his customers has made him a much-loved shopkeeper

“Everything changes,” says John Hyland. At 69, the newsagent is retiring after 35 years in his well-known shop on the corner of George’s Street Upper and Clarinda Park West in Dún Laoghaire, in south Co Dublin.

The crowded shelves and stacks and racks of newspapers and magazines have been gradually depleting, and over the weekend and into Monday a steady stream of regulars, of all ages, have been coming in for their papers and to wish Hyland well.

As he courteously thanks people for their custom, he seems quietly surprised at the reaction to his departure. “Some I wouldn’t even know by sight. I have lovely customers. When I do a little thing, get something they’re looking for, they’re so grateful.”

John Hyland may have been both the worst shopkeeper in Ireland and one of the best. Whether some customers had the money to buy what they wanted didn’t seem to bother Hyland too much: he always put them first

The sign over the shop reads Dun Leary’s Last Corner Shop: A Service Newsagent. His wares have been spread on to the footpath, on makeshift tables and racks, since well before Covid made it a popular approach. He has stocked an astonishing range of publications: regional papers from every county in Ireland, Le Monde, the New York Review of Books. If you couldn’t find it at Eason you could probably find it at John’s (as locals call the shop), from 5am until 2.30am every day of the year. As well as sweets and cigarettes, there’s a small range of other goods, from cornflakes to condoms to cat food.

It’s worth reading the whole article and watching this video from Ronan Kelly:

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Customer loyalty

A newsagency customer speaks out about poor customer service

Ash Long emailed me yesterday with this story of poor customer service by his local newsagent. I share it here with his permission:

I like that the Australian Newsagency Blog has news of new avenues where businesses can be grown and profits maximised.

But I wonder if sometimes a reminder is needed that newsagents must not neglect their core business. As a newspaper publisher, I spend about $250 per week on papers and magazines at the local newsagency. I do not seek discounts, I do not receive loyalty rewards. I pay by cash, as I have done over the past 22 years.

It has been drummed in to me at this blog for newsagents to promote their ‘putaway’ service. So, when I had to be away interstate last weekend, I asked the counter-staff woman to please put aside the Thursday-Sunday editions of the Herald Sun and The Age, and that I would return in the following week to pay and retrieve the papers.

It wasn’t done. The counter staff said the newsagent counter-manded their efforts, and returned the papers, so my request was unfulfilled. Not a big deal, you might say. Only 8 newspapers. But those issues were important to me. I was only trying to be a good and loyal customer. The newsagent did not let me know of his decision. I have left a message for him, but he still has not called with an explanation (or an apology).

I feel disrespected as a customer. I feel that the newsagent should no longer have my $1000-a-month purchases. I feel that I should take my business elsewhere. He does not know his customers, and he has neglected his main game.

Whether we like it or now, the newsagency shingle binds all businesses that trade under it. Poor service by one can reflect poorly on all newsagents in the eyes of the customer experiencing poor service.

We are in challenged businesses with some of our core products suffering from severe disruption. Add to this the challenges of the economy, more focused competitors and myriad other factors and you have tough circumstances for many newsagency businesses. Why, therefore, would you treat a long-term customer in this way.

If the story as shared is accurate there is no excuse I can think of. A regular customer offering to spend money for little or no effort is to be respected and served well.

I am sure there are plenty of newsagents who would love Ash Long’s business.

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Customer loyalty

Hey Marcus Berkman, not all newsagents are the same

Marcus Berkman, writing his article, We are supposed to feel grateful to our newsagents and banks for compromising their standards of service for The Independent, has a massive whinge about WH Smith and their use of self-checkout.

For instance, I occasionally go into WH Smith in one of the mainline railway stations to buy a newspaper or a competitively priced bag of Revels. They used to have four or five tills and a queueing system, which meant you were usually in and out of the shop in a couple of minutes. Sometime last year they ripped all this out and replaced it with eight self-service machines and one till, which is the only place from which you can buy cigarettes. This means there is always a queue of half a dozen people for the one till, some of whom are buying gaspers with bags of change or out-of-date credit cards, and all of whom will miss their train.

The things is, Marcus, your bitch is with WH Smith and not newsagents, not the real newsagents, the family run businesses that provide personal service, usually from the proprietor or a family member.

For the record, this newsagent does not like self-checkout terminals as the dehumanise the retail process.

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Customer loyalty

How customers abuse our newsagencies

standsAt the airport last week I saw how customers had abused the Lovatts crossword stand at a WH Smith store.

Click on the image and see – they have been using the stand to test pens as well as a place to leave a used coffee cup.

At least they didn’t leave a mucous filled tissue or a filled baby nappy.

It challenges one’s faith in humanity sometimes – the way people treat shops.

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crosswords

How do you communicate with your customers?

closedI walked for fifteen minutes yesterday to a regular Sunday breakfast venue only to be confronted by a sign noting they are closed for the long weekend in Melbourne. This business is still establishing itself, it should not be closed, especially not on a long weekend when people have time for breakfast.

The experience got me thinking about how we communicate with our customers. I wondered what this cafe could have done. For a start, they could have let their regulars know a weekend earlier. They could have established a facebook page and let us know vis that. Or they could have setup an email list and sent us a note advising they are taking a break.

We need to run our businesses as if those who shop with us could go elsewhere and never return for the slimmest of reasons – such as being closed on a Sunday over a long weekend. Advanced communication is the key – so we don’t surprise shoppers with a change in opening hours.

My challenge to newsagents today is to think about how you communicate with your customers. Do you have a good path of communication? Is it two way? Or, are there surprises because of how you communicate?

This cafe runs its business as if it relies solely on passing trade. While there is considerable passing trade, there is also considerable regular local business. their approach to communication, or lack thereof, ignores this. The cafe’s sign also ignores weekend only patrons in favour of weekday patrons.

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Customer loyalty

Day four of a five-day back to basics newsagency management challenge: customer service

This week I am shining a light on five back to basics areas of our newsagency businesses over which we can make a difference for the good of our business and the benefit of our customers.

By back to basics I mean parts of our business that define us and can separate us from others.

Today, I want to challenge how you on customer service.

When I speak at conferences and workshops I often ask newsagents what their most important points of difference are. The two most common points of difference voted by newsagents are community connection and customer service. These responses reflect the perception of newsagents. Today I want to challenge whether, when it comes to customer service, what we really offer is a point of difference.

  1. Do you greet shoppers? More and more of our competitors are doping this. While traffic, labour cost and average spend may challenge the financial model of a greeter, the service is a customer service benchmark.
  2. Do you reward loyalty? If not, you’re not meeting today’s minimum customer service standard.
  3. Do you offer a gift wrapping service?
  4. When a customer asks if you have something do you tell or do you show?
  5. Do you bring back-office challenges to the shop floor?
  6. Do you provide product service and care info? If you sell gifts this is becoming essential to good customer service.
  7. What’s better about what you do compared to those who compete with you?

This last question is the most important when comparing our customer service offering with retailers offering greeting cards, magazines, newspapers, lottery products, stationery and gifts.

There really is nothing truly unique that we sell as a channel so customer service is crucial in attracting customers back. hence the question: What’s better about what you do compared to those who compete with you? Answer this through positive actions in your shop and you will be known for excellent customer service and return visits will reflect your commitment.

Newsagencies losing customers could be doing so because of poor customer service. It’s something to think about.

We have to challenge ourselves more than our competitors if we are to grow our businesses.

The goal of this series of back to basics newsagency management advice is to get you revisiting parts of your business that you may not be paying enough attention to. This should help improve basket size, drive traffic and get you better engaged with your newsagency business.

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Customer loyalty

A story of wonderful customer service from a newsagency employee

Here is an inspirational email received by a colleague newsagent a couple of days ago.   This is customer service!

Dear Sir/Madam

I visited your store this morning to purchase The Australian newspaper and to submit X-Lotto tickets for tonight’s X-Lotto. I was greeted and served by your staff member, Louise.

Louise was extremely helpful in explaining to me that the Winners Circle card had expired and that the completed tickets were no longer able to be used and handed me some new X-Lotto forms to be filled out. She aptly renewed my card and provided me a membership change of detail form.

Whilst I was completing the new forms with my chosen X-Lotto numbers, I listened to Louise as she interacted with other customers. She was friendly, respectful and courteous, a rarity in today’s society where customer service does not seem to be an important factor in so many small businesses.

My Husband and I are passionate about customer service and having been in small business ourselves understand the importance in customer retention and staff members play such an important role, congratulations on choosing such an appropriate young individual to represent your organisation.

We would like to use our experience with Louise in a case study for our business which is targeted at guiding small businesses at taking an inward look at how they meet the expectation of their most-important aspect, their customer.

Please pass on our gratitude to Louise for her exceptional customer service.

Great customer service begins at the top of any business. Louise deserves kudos for excellent customer service. Her managers also deserve kudos for excellent management.

In our businesses we are only as good as our weakest link. Good customer service is results from good management. Poor customer service results from poor management.

From the top down we need to make our businesses deliver more Louise experiences so more of us get emails like this.

Thank you Louise for your great service that lead to this inspiring story.

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Customer loyalty

Newsagency social responsibility tip: help job hunters

With unemployment on the rise, think about how you can help people looking for work.

Consider offering discount copying and discount faxing for those looking for work. Get known as they place they can come to copy and send resumes. Show yourself off as a business person seeking to genuinely help those looking for work.

Promote the service, welcoming job hunters with open arms. Show them you care. Let your Facebook and Twitter followers know. Your goal has to be to get job hunters talking about your service. Be generous in your giving.

I first pitched this idea to newsagents twenty years ago in my book, Marketing Your Newsagency.

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Customer loyalty

Companies don’t deliver customer service, people do

I had an awful experience with Jetstar Tuesday and experienced exceptional customer service as a result.

My usual expectations of Jetstar are that I arrive alive and that the service does not totally suck. It’s a cheap airline and you get what you pay for.

Briefly, I had to get from the Sunshine Coast to Auckland Tuesday afternoon and the only option was Jetstar to Sydney for a connecting flight to Auckland. At the Sunshine Coast airport Jetstar announced a 10 minute delay due to operational requirements and then another. Operational requirements? It’s airline speak for we’re late and not going to tell you why.

After the second delay announcement I explained that I had an internatipnal connection. The person at the gate told me the truth of what had caused the delay and gave a believable estimate of the new departure time. A passenger departing the incoming flight has dislodged and broken an exit sign cover. A replacement was being driven from Brisbane.  I was going to miss my connection and was not happy but kept that emotion internal as this person was not responsible and was honest with me.

I was sent back to the check in desk where the duty manager took on sorting something out for me. It’s this person who showed me what great customer service is all about. She was on the phone navigating Jetstar and Qantas to find the best way to get me to Auckland.  The only option was to get the delayed flight to Sydney and then SYD-AKL Wednesday morning.

The customer service was good because I saw her efforts for me. This Jetstar representative was transparent about the situation, clear in her communication and doing everything in her power to help me. Despite the delay and missing the connecting flight, the customer service experience was far better than I had ever expected from Jetstar.

I was thinking about this when sitting on the delayed flight to Sydney a few hours later and realised that the excellent customer service was not delivered by Jetstar but by the person representing them. Sure companies can have staffing levels and processes to deliver the customer service it is commercially prepared to deliver, the actual experience comes down to the individual, the customer-facing person working on the issue you bring to them. The right person can make even a mediocre company look good. The wrong person can make an exceptional company look bad.

Indeed, my inner glow about Jetstar was adjusted during the flight to Sydney when I saw a member of the cabin crew act rudely to a passenger, treating them differently to others and publicly rebuking them in an offensive way and then openly complaining about it to a colleague on-board. Thud! I was back in this is Jetstar mode – all because of unnecessarily poor customer service delivered by an individual most likely acting outside the requirements of the company.

What our customers think about our businesses depends on the people we employ, train, manage and motivate in customer-facing roles. Our role as business owners is to create an environment that encourages our people to serve customers above and beyond what we want delivered in our name.

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Customer loyalty

Customer service lives up to the message

I was privileged to have breakfast today at Jamms Restaurant in Las Vegas before heading off to look at a bunch of retail businesses.  I wanted to get the team I am here with to Jamms so people could experience the customer service I experienced earlier this year.

While the food at Jamms is delicious, it is the service experience which is truly memorable.

The sign on the table is a good indicator of their commitment to service. (Click on the image for a larger version.) Whereas other restaurants, and businesses including newsagencies, have signs telling shoppers what not to do, Jamms has a sign saying what they will do for you. And they do it.

Another sign they have says you will leave as a friend. It feels like that … without being forced. It truly is a wonderful customer service experience, inspirational.

While Jamms is off the beaten track, far away from where Las Vegas tourists usually get to, the visit is well worth it. It’s one of the best breakfast experiences you could have in the US.

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Customer loyalty

Angry Birds plush drives sales in newsagencies

I have written here a couple of times about our success with Angry Birds products.  Each time it’s sold out for us.  We are planning on a range of Angry Birds branded products as part of our Christmas mix.

It surprises me that more newsagents are not engaged with this extraordinarily successful global brand.  With more than 500 million downloads of the game, this is a well-known brand.

Building genuine customer loyalty is about offering products customers want to come back and purchase again and again.  This is more valuable and important than giving prizes and things away to create what I’d call false loyalty.

It’s plush for Gen Y through Gen X.  A good Angry Birds display will pull new traffic.  Some of those customers will purchase other product.  Plenty come back for a second or third purchase.

So it surprises me that so few in our channel get behind such an excellent opportunity.

Maybe some newsagents prefer to be angry birds than sell angry birds.

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Customer loyalty

How to lose customers Borders and A&R

The announcement yesterday that Borders and Angus & Robertson stores would require customers to spend double the value of gift cards for them to be able to use gift cards will be regarded as a serious misstep in their administration.

While the administrators have to make decisions based on what is right financially for the secured creditors, this must also include consideration of what is right for the future of the brands – if the business is turned around and comes our of administration or if they are to have a value in the event that they are ultimately sold.  I am especially concerned for the Angus & Robertson franchisees and the impact to their businesses of the decisions of the administrators.

Twitter, blogs and other online news and comment channels fired up yesterday on the news.  With every angry comment damage was done to the Borders and Angus & Robertson brands.

This story has a long way to go before we will know where it ends.

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Customer loyalty

Win a watch for Dad

fhn_fday_watch.JPGI like competitions where one of our customers is guaranteed to win a prize.  This is the case with our Hallmark backed Father’s Day promotion.  The prize is a nice watch for Dad.  While a state based or national prize will be more valuable, it is further from reach of your customers.  Hence, my preference for a store based prize.  Customers get to know that you offer these prizes and, I suspect, are more likely to visit for these seasonal purchases.

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Customer loyalty

Kudos to Coles online

coles_sticker.JPGWe do a weekly shop for my software company (biscuits, breakfast bars, candy etc) through Coles online.  Recently, Coles deliveries have been arriving with gifts. Yesterday – three packs of cereal, a large pack of chocolate candy and a jar of salsa. While I am sure the brands are funding this, the gifts make Coles look good.

When the only contact you have with a customer is the delivery, providing something, even a free sample, is a good way to develop the relationship. I guess it is best defined as under promise, over deliver.

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Customer loyalty

C-store competition in Hong Kong

c_competition.JPG

Now this is competition. The picture says it all. On one corner of a back street in Central Hong Kong is a Circle K store and on the opposite corner, of a very narrow street, is a 7-Eleven. The product mix is the same as is their store size. The only differences are the brand and what each stands for and the customer service.

This in-your-face competition is what newsagents are yet to grasp. If another brand opens up a newsagency next to an existing newsagency they would be called all sorts of names. This would happen because of our protected past. Competition, direct newsagent against newsagent competition is something we are yet to deal with.

What I am talking about is different to my comments about Australia Post government owned stores – they use a government protected monopoly brand to take business from us for the profit of the government. No, what I saw today was free market unprotected competition. The only monopoly in play is the brand.

What the photo says to me is that the brand is the thing. In the world of Australian newsagencies, the current brands are: Newspower, newsXpress, Nextra (and its subsets), Supanews, Lucky Charm and the generic Newsagency – but we all have a bit of that.

Circle K and 7_Eleven are not tied to a category, they are not relying on any business other than their branded stores to build consumer perception. This is what we have to do.

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Customer loyalty

Launching our customer newsletter

newsletter_aug.JPGWe have launched a new customer newsletter this month.

Produced in house using Microsoft Word and with a local feel, we have placed copies in an acrylic stand near the entrance to the shop to act as a silent marketer. This newsletter is designed for our retail traffic and with our specific demographic in mind. We are backing it up with content on our in-store plasma display.

While we have some playing to do with the layout, we’re happy with this first cut of our newsletter. We wanted to stay away from it looking to slick lest it become another polished corporate pitch document. We selected Better Homes and Gardens and Australian Women’s Weekly for focus because we like them and not because of a publisher deal – as would be the case in a more corporate newsletter.

Even though this is a monthly newsletter, we plan to freshen the content mid month.

We have been producing a newsletter link this for five months now for our Sophie Randall business – it is the only marketing undertaken for that new business. What has surprised us is the number of customers coming into the shop with the newsletter to ask about a specific product.

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Customer loyalty

Servo savers chasing newsagents

Servo Savers seem to be chasing newsagents to join their loyalty scheme again. When they approached me in 2005 I was turned off by the aggressive tactics used by the person representing their company. They said all manner of bad karma would fall on my business by saying no since they were about to such with some big retailers in my centre and I would be locked out.
Two newsagent colleagues have told me of approaches to them in the past week – both along similar lines. One said the pitch was quite threatening.

It makes no sense to reward customer loyalty in my business by sending those loyal customers elsewhere for their ‘reward’ – especially when that other business sells products I sell. I prefer to reward loyalty in my business with more genuine rewards in my business. Besides, every man and his dog offers fuel discounts.

In checking out Servo Savers this morning I found this story from New Zealand about disgruntled Servo Savers customers. I also found this ad offering $150,000 for a sales person for the company. This demonstrates why participating is expensive for small business – they pay a lot to their member acquisition team.

If a newsagent asks me about Servo Savers I suggest they develop their own in house loyalty scheme which drives customers back into their business. The magazine club card I run in my newsagency is a good example of this.

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Customer loyalty