THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Monday, May 20, 1996 TAG: 9605180197
SECTION: BUSINESS WEEKLY PAGE: 05 EDITION: FINAL
TYPE: SMALL BUSINESS
SOURCE: BY JUANITA RAISOR BUSINESS WEEKLY
LENGTH: Medium: 73 lines
Ask not what your customer can do for you, ask what you can do for your customer. Gloria Siegel is following the lead of President Kennedy.
Siegel owns Pizazz, a jewelry shop at Hilltop North and Loehmann's Plaza in Virginia Beach. She found the changing economy and retail climate required an evaluation of her customer's appetite for jewelry.
She realized that to compete, her store and merchandise had to change. And to accomplish that goal she needed help from an expert.
Siegel contacted Margie Johnson of Shop Talk, a retail consultant, to conduct a survey last fall.
Siegel started with a complete renovation of the Loehmann's Plaza store. Removing the unprofessional pink and blue colors, she replaced the decor with a soft, professional gray look.
Next she conducted a phone survey, picking some names at random, and using former and regular customers, resulting in about 40 calls. ``Out of the 40 we called, 39 answered questions,'' Siegel said.
They also did a mail survey. Of the 400 mailings, 28 percent returned the survey. She found customers knew what they wanted, and Siegel welcomed constructive feedback.
The process of continuous improvement was taking place. ``In the 1990's, you have to meet the customer's needs,'' Siegel explained.
She asks her customers if they would like an expanded product line, and if the store should be open on Sunday.
``That was very important to me, whether I should open on Sunday. I agonized over that, because I didn't want to work on Sunday.''
As a result of the survey, the shop is open on Sunday.
``We did what the customers wanted, not what I want,'' she said.
Other important factors from the survey were that people thought the store only offered expensive cocktail jewelry. And that perception carried over into the whole business. They had to address the misconception.
``It was very eye-opening,''she said. ``Eighty-five percent of our jewelry was between $20 and $40 already.''
Working to change that image, she priced all items in the store under $39 and posted signs on the door and throughout the store as a reminder.
An analytical exercise was the next step. She asked customers why they would buy and why they would not, what kind of items they were interested in, and in what price range.
She kept forms for a three-month period at both locations. Sales staff kept a daily log of customer traffic. The survey indicated that 20 percent of her non-buying customers returned to the shop.
Last on the agenda ``was to figure out what this all means. Communication with the customer is the most important thing. The customer rules - they vote by their feet,'' she said.
She researched staff development, set goals, opened communication, had monthly meetings, and allowed employees to job share.
``We needed goals and incentives. Now it's a team effort,'' Siegel said.
Instead of resisting change, Siegel described a process in which she was willing to do want was necessary to win consumer loyalty.
``I needed to re-invent my business,'' she said. ``It was an obligation financially to change things.
``Retailing has changed, and we needed to make an investment in our future. We had to do it through the eyes of our customers.'' ILLUSTRATION: Gloria Siegel revitalized her Virginia Beach jewelry store,
Pizazz, after asking customers what they wanted. She did phone and
mail surveys on a variety of questions, including whether she should
be open Sunday. Customers said yes, so she's open Sunday.
BETH BERGMAN
The Virginian-Pilot
by CNB