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Gene Marks

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What Sears Could Learn From This Business Owner

Posted: 01/04/12 02:09 PM ET

Here's a myth: a box of baking soda keeps a refrigerator smelling fresh. Maybe that's the case for some people, like New Yorkers who eat out most of the time or families that, well, clean their refrigerator. Our house has three teenage kids and two working parents. We don't have the time to clean our refrigerator. It really smells. That's because if the food doesn't get eaten; it usually just crawls away on its own. A pallet of baking soda wouldn't make much of a difference.

But we got used to the smell. It was the clanking that got our attention. The sound was ominous. It told us that, after ten years of loyal service, our fridge was reaching the end of its well lived life. So about a year ago, we decided it was time to replace it with a new fridge.

Sears sells refrigerators and home appliances. And a lot of other great stuff too. My house sits almost equidistant between two Sears stores too. Sears is certainly a trusted name brand. The chain's been around for a hundred years. But did we buy our new fridge from them?

Nope. We bought from Jake's Appliances instead. We never really considered Sears. Jake's (real store, different name) is just better. Whenever I see news that big retailers like Sears are closing down stores or that Best Buy is having a "tough" holiday season, I think about Jake. He runs a small retail business. And, although there's room for improvement, he's figured out how to do brick-and-mortar retail in an online world.

We bought from Jake's because we knew that Jake's sells fridges. We knew this because we get mailers from Jake's. We see ads for them on our local TV stations and local newspapers. I frequently find myself driving by Jake's too, because the store is located on a busy road near me. Oh, and we know others that have bought from Jake's and recommended them to us. Jake's has a buzz. Not a Kim Kardashian-breaking-up-with-Kris-Humphries buzz. But they're out there.

Sears has no buzz. I don't know anyone who shops there. And if they are shopping there, no one seems to be talking about them. If I look hard I bet I'll see that they're spending a lot on advertising. But that's the thing: I have to look hard. I don't seem to see their name in places that I'm at. I don't drive by their stores. I don't even drive by a billboard for their stores. I don't seem to see their name on websites I visit, newspapers I read or TV shows I watch. I don't think about them at all.

To get people into a retail store, the right kind of marketing and advertising is crucial. Sears needs to improve. I know this from years of experience and because I watch Mad Men.

Sears' marketing has failed to get my attention. Jake's, a store 1/1000th of their size has done a better job. They've mixed up local online, TV and print campaigns. They've generated word of mouth. Their marketing succeeded in making me to think of them first when it came time to buy a new refrigerator. Of course there was still more work to do. But they do a much better job than Sears.

I walked through a Sears at one of our largest shopping malls a few years ago, only to pass through it on the way to the Cinnabon which was located nearby. My recollection: it pretty much looked like when my mom dragged me there to buy a new TV set...to watch Laverne & Shirley on Tuesday nights. Get it? Sears was the same, tired old place. Apparently, I'm not alone with this impression. Sear's CEO Lou D'Ambrosio, a smart and capable guy, is saying the same thing. That's because if anyone's learned anything from Apple and Starbucks it's that retail stores need to be cozy and attractive places to visit. If I wanted to visit a run-down, tired-looking, less-than-clean place with appliances I'd visit my own kitchen.

Jake's store, by comparison, was much smaller and also much nicer. They provided coffee to customers. They had sitting areas for old people and bored husbands. The lighting was warm There were many appliances on display. And many others to be perused via computer and catalog. It's kind of tough to make a room full of refrigerators and ovens appealing to a guy over the age of...well...ten. But Jake's was better than average. In 2012, retailers have to invest in making their space attractive. It's why we see strip malls replacing their old facades with a more modern look. It's why supermarkets spend millions to constantly reconfigure their stores so that we actually think that bottle of salad dressing is "fresh and natural" just because it's now positioned in the vegetables section (hint: it's still the same old salad dressing, just in a different place).

Jake's beats Sears on marketing and appearance. But that's not the biggest reason why we bought there. And it wasn't price. Everyone thinks it's price. But it's really not. Sure, the price of stuff has to be in the ballpark. But the biggest reason we bought from Jake's was because of service. And that's the magic pill for big retailers like Sears, Best Buy and others. Service in the store, in the home, and on the web is how retailers like Jake's survive and profit.

Unlike most retailers I visit where the average 14-year old salesperson knows more about her iPhone than the store's products, the sales guys at Jake's were older and more experienced. And way more mature than me. Because if I was stuck inside of a show room selling microwave ovens to impatient and know-it-all customers (like me) all day I would surely open my veins the next time I took a bath. But these guys seemed OK with the job. I'm thinking that Jake pays his guys a little more. Offers them a long term employment opportunity. Provides a little training. And Jake himself is always around, keeping an eye on things. The attention we received inside of Jake's was respectful and knowledgeable. We weren't a distraction from "Angry Birds." We weren't getting blank stares. Smart business owners invest in good people.

And they invest in technology. Because in 2012 a brick-and-mortar business just isn't enough. Consumers like me expect an online presence. Staples does a great job at this - I can order in their store or on their website and it's the same experience (along with next day delivery too). I get emails from them all the time with coupons. I can check my order history online. I get extra discounts based on my purchase history. I can read customer reviews of products on their site and do more research on larger purchases.

The fact is that Sears does this...really well. Way better than Jake's. Their website has good search engine optimization (type in "refrigerator" in Google and Sears' website appears at the top). heir site has all the stuff I mentioned above and it's easy to arrange for installation too. I've never purchased a $1,000 item from a website before. And I've never purchased from Sears' website. It seems like buying it on Sears' website is easy to do. But my question is: what about AFTER I click on the "buy" button?

Successful retailers get that technology is more important for AFTER the sales then before. If I'm spending a thousand bucks on something online I need to feel comfortable that shortly after I click on "buy" I'm hearing from a human being who personally takes responsibility for....me. Not someone in a call center near Fargo. And after the product is delivered good retailers will use technology to keep that customer in their community. If I were to purchase a new fridge from Sears do I continue to get emails from Sears a month later? A year later? Like...advice for getting the best use of my fridge? Or safety updates? Maybe a few accessories that might be of interest? Is this all being managed on their website? (hey Sears: Jake's isn't doing this either...but I bet he will).

I bought my fridge at Jake's because his marketing got my attention, his store was inviting, his salesperson spent more time with me than with his iPhone, and of course his pricing was competitive. I would do the same at Sears if they could promise the same. And I would keep coming back to them if their technology was used in a way to keep me up to date, informed and interested in their other products and services. Getting rid of the odor from my son's two-week old pizza would help too.

This is how small brick-and-mortar retailers can succeed in an online world. And the big guys too.

Another version of this post appears on The Philly Post.

 

Follow Gene Marks on Twitter: www.twitter.com/genemarks

Here's a myth: a box of baking soda keeps a refrigerator smelling fresh. Maybe that's the case for some people, like New Yorkers who eat out most of the time or families that, well, clean their refrig...
Here's a myth: a box of baking soda keeps a refrigerator smelling fresh. Maybe that's the case for some people, like New Yorkers who eat out most of the time or families that, well, clean their refrig...
 
 
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11:04 AM on 01/15/2012
The worst customer service experience of my life after spending $7k to replace my furnace...

A complete comedy of errors, from the outright deception and lies of the salesperson, to the horrible installers (left a mess of soot and oil because they did not bring enough tarps to cover from the door to the furnace room) that took them 3 weeks to fix.

Then 4 weeks for the yearly preventative maintenance (extra cost), and the guy shows up he is here for 4 minutes and leaves without even changing the fuel filter or cleaning.

Now this morning, we have oil leaking into our house that luckily the missus smelled in time for me to shut the furnace down just as flames erupted. After 90 minutes of calls, continuously being transferred back to their automated line only to have to start all over?

Now, they tell me they don't have 24/7 Emergency Service... even though the shyster salesman said they did. Oh, and they will try to have someone call me by tomorrow late morning to see WHEN they can get someone out. Did I mention it's 16 degrees out today?

Best part? Every call to ALL of the toll-free numbers they provided, and by the end of this effort I now have 5 different ones, just leads to an automated system.

Excellent article sir, and please continue to warn the public about the dangers of doing business with this company.

Steve Costa, Budd Lake NJ
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modelaford
02:51 PM on 01/07/2012
Excellent article..right on. I worked at corporate Sears headquarters for 29 years when they downsized right before they were bought out by Kmart and Eddie L. My entire dept and I were eliminated. I was offered an early retirement because I was over 50. And it took me 2 years to find a job. They have screwed their associates, stockholders, and customers.

Sears is no longer the same as in the glory days in the 70s and 80s. Unfortunately, Eddie L. took over Sears...and one year later the CEO ALAN Lacy walked out with a 25 million dollar package as part of the deal he made with Eddie to sell Sears to Eddie and Kmart. Eddie was a 2 year owner of Kmart that he bought up stock during their bankrupt days so he could take over as CEO of Kmart. Then he bought out Alan Lacy and became CEO of Sears. And then he stopped all improvements at Sears.

Lacy sold out the Sears associates, the Store, and the customers for greed. Eddie was well known for buying and selling off businesses...like Romney did. The bean counters took over and that is why Sears is the way it is today. Sad to see it in such dire straits, but it got there through the greed of money by Alan Lacy and Eddie Lambert.
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10:03 PM on 01/06/2012
Love your refrigerator description. Fanned. Also, your brick and mortar references - so important. I chose a $100 gift card for Sears from my credit card rewards, feeling nostalgic, and I went there 3 times and couldn't find anything I wanted to buy for the price, ended up going to Wal-Mart, shamefully. I did end up using it for some clothes items though. However, when it comes to fridges my husband and I are so old school we may just check them out, but they better be able to beat Frye's, just saying.
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mpstar
10:55 AM on 01/06/2012
Gene great article,I totally agree,,I believe Sears will be gone soon,,,,I was there last month,and the Sears here was depressing,dirty.dated merchandise,,and the worst having to wait to pay,,I left the store,,it wasn't the old Sears anymore There are no salespeople to be found,,to ask anything,,What many stores ,do today ,Hire people to stock the merchandise,,then hire people to cashier,,so that cuts hiring people,,The norm today,,,checkout counters,,no more sales people,,This is where the small business like Jakes will become the way to go,,,Also I think you ahve to blame,,The CEO's hired have no clue what the public wants,,,Since they only care to please the stockholders,,,Sear's Montgomery wards once a great store was ruined bya CEO,,of coarse,they walk away with a nice bonus,,The shopper loses,,,,,,,,,,
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HobbyWizard
card-carrying member of the Apoplectic Left
12:36 AM on 01/05/2012
It's counterintuitive, perhaps, but if I'm the Sears CEO, I'm going to find out who my store's shoppers are and why they shop at Sears. Then, I'll take that information and broadcast it to make new shoppers of like-minded folks.

Sear's longstanding image problem is that it's the poor people's department store. When I was a kid and my mom bought me Toughskins from Sears, I wanted to die. Today, Sears merchandise is the same as JC Penney's and Macy's - I bought a pair of Levi's jeans and Land's End cords there just the other day - but people think Macy's is class when in truth it's just as ordinary as Sears. It's so weird to me that people think this way of Sears, but of Wal-Mart, purveyor of the cheapest crap on Earth, they think it's a place to get great deals! Obviously, Sears has an image problem, but it is not an insurmountable one.

I shop at Sears because I get screaming deals on decent brands. Honestly, they're practically giving their stuff away sometimes (maybe that's part of their profitability problem). And since it is not a popular store, the atmosphere there is sedate and relatively orderly. I won't set foot into the madness that is Wal-Mart. I know where to find things at Sears, and know I won't suffer the indignity of buying my undershorts 10 yards away from frozen foods.
06:47 PM on 01/04/2012
The world has passed Sears by. Why go to Sears. No one knows, not even Sears. Over the years, Sears never bothered to crave out its niche. Wal-Mart owns the low-prices; the likes of Saks owns the high-end. There is really no reason to go to Sears or JC Penney.
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rbergstrom
05:38 PM on 01/04/2012
As a small business owner for the past 47 years, the thing that made Jakes so good was that Jake was always there - - - I was also always there , but when I sold the business a few years ago the new owner decided to act like an owner, take days off, nights off, weekends off, etc. etc. The business has gone downhill - Specialty shops like Jakes need the guy at the top to be financially involved plus have a good connection with the customers and know "the territory" and be there.
04:22 PM on 01/04/2012
Sears has always had mid-west marketing and inventory - doesn't sell well here in CA where there are so many competitors. I haven't been in a Sears store in years because it always looked the same as it did in the 1960's - even the clothes were the same!! Their purchase of KMart stores didn't help that brand either. The stores were never updated, sold cheap Chinese junk and the appliances can be purchased at many other stores with better customer service. Mostly, the stores are empty - of people. That has been a sign that Sears has ignored for far too many years. A case of rotting, incompetent management at the top - the big people. Guess they thought they could ride on their reputation earned at one time when they had little competition and their mid-west mindset. This article was spot on. Sears is known for tools and appliances - period. I'm just sorry for all the little people who will be unemployed due to poor management of the companies.
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03:19 PM on 01/04/2012
After the sale customer contact is just as important as before the sale contact, maybe more so because it breeds further sales to the same customer. I've set up and run two online businesses and swore off those automated after the sale response emails after I saw what real, personalized contact could do. Laborious? Heck yes. Profitable? Heck yes.

Just drop a quick human-to-human note confirming the order into the customer's inbox or, better yet, give them a phone call. The number of times that phone call led to a further sale or a product upgrade was quickly noted. Follow every step of the shipping and delivery process with the customer and you won't get any "buyer's remorse" cancellations.

After being retailing's leader in innovation for 60 years, the Sears went into a coma. The catalog, the move to the suburbs, the do-it-yourself innovation, the service after the sale, the ironclad guarantee and customer credit plans all came out of Sears. If there was no mall where they wanted a store, they built the mall, themselves. They can't even innovate a clean floor anymore.
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SeenItBefore
Ya want to super size that?
02:35 PM on 01/04/2012
We buy from a local retailer for all our electronic goods. He has a better selection from the best in the world to some low priced items. A Wal-Mart or Target has a wonderful selection of inexpensive and ZERO educated personnel. Our electronics store has many sales people who actually operate and understand everything they sell. Before Christmas, I was in Wal-Mart and asked about a TV and was told, "They're in the back, on the wall". But I have a specific question... "You can go on line and get the answer.", was the answer. I went to our old friend and bought their television, and I was totally informed as to it's features and it cost $35 bucks more for a better brand.
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OCerInTN
Hoplophobics worst nightmare.
05:13 PM on 01/04/2012
Anyone who relies on a sales person to inform them about the purchase is asking to be ripped off.
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SeenItBefore
Ya want to super size that?
08:53 AM on 01/05/2012
Perhaps, but my first job after college was selling furniture and appliances. I was required to read and understand the operation manuals of everything we sold. Also, the sales personnel were required to drive out to the purchasers home to further help if necessary. And I do understand it was a simpler time... most electrical things were either off or on.
02:15 PM on 01/04/2012
When I buy a thousand dollar item like a refrigerator, I want to buy a reputable name from a store that will be there four or five years down the road, at a low price. I don't care about how "inviting" the store is, or a free cup of coffee (if that cup of coffee will eventually cost me a few hundred dollars). I know Sears will be there in five years. But Jake could drop dead tomorrow.

And "advice for getting the best use of my fridge"? You put food in it and close the door. There. Done with advice. Seesh.
04:47 PM on 01/04/2012
I think Sears will be gone in three years. I try never to shop big box. I like the service, shop local for economic reasons, and get great products instead of the latest landfill junk when I shop smaller retailers in my town. When America stops spoon feeding the too big to fail retailers with multiple tax breaks and giveaways, the small businesses can and will compete the pants of them.