What Retailers Don’t Know – But Churches Can Learn

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For the final post on my return review of Paco Underhill’s classic book Why We Buy, it’s time to dive into the brains of retailers and take a look at what they don’t know – and what churches can learn from them.

  • How many of the people who walk into stores buy something? The quick, and wrong, answer is almost 100%. The conversion, or closure rate – the percentage of shoppers who become buyers – is almost always thought to be much higher than it actually is. Conversion rates measure what you make of what you have – it shows how well (or how poorly) the entire enterprise is functioning where it counts the most: in the store. It’s all about what happens within the four walls of the store.

ChurchWorld Lesson: How effective are you with what you’ve got in terms of ministry? Marketing, advertising, promotion and a great location can help bring guests to your church – but it’s the job of your leadership team, the ministries you’re attempting, and the entire church body to make sure the Guests not only leave fulfilled, but return. Maybe as second timers, maybe eventually as participants and then members. The lesson: How are your assimilation systems working? Sure, you’ve got a great front door, and maybe even a few effective side doors – but how big is your back door?

  • How long does a shopper spend in the store? Assuming that he or she is shopping and not standing in line, this may be perhaps the single most important factor in determining how much she or he will buy. Studies have shown a direct relationship between the amount of time in a store and the resulting sales volume; usually a buyer spends almost 50% more time than a non-buyer.

ChurchWorld Lesson: There are certainly differences of opinion in the church world as to how long you want Guests and members to linger before or after worship services. Churches with multiple services often need to have a smooth transition from one service to another. This is an area where design or renovation can play a critical role: make adequate space for a foyer, café, other gathering place so that those who choose to do so can fellowship with others. Another opportunity for evaluation in this area might be the pace of services – does the timing/scheduling need to be altered?

  • What is the store’s interception rate? Interception rate is the percentage of customers who have some contact with an employee. This is an especially important measurement in a time when stores use fewer full-time employees and more minimum-wage employees. Research has established a direct relationship: the more shopper-employee contacts that take place, the greater the average sale. Talking with an employee has a way of drawing a customer in closer.’

ChurchWorld Lesson: This is a critical factor in making Guests feel welcome to your church. Well-trained and observant Guest Experience teams should make all people feel welcome to your church by extending a verbal welcome and offering a handshake or other appropriate physical touch. Guests especially need to have a verbal interaction with someone beyond a cursory “Good Morning”. The key is to engage the Guest as you are attending to their needs.

  • How long does the store make customer’s wait? Studies have shown this is the single most important factor in customer satisfaction. Few retailers realize that when shoppers are made to wait in line (or anywhere else) their impression of overall service plunges.

ChurchWorld Lesson: While church participants aren’t likely to leave like a shopper might in a long checkout line, it can happen. Most often you will find this expressed in the parking lot – in church consultations observing traffic patterns I have seen cars pull in, find no parking spots, and pull right back out onto the street. Examine all your areas where waiting might occur – can you reduce, or eliminate, wait time?

  • Who are the shoppers in the store? Take the retail store who stocks pet treats on upper shelves, unaware that the main buyers of this product were senior adults and young children. Or the family style restaurant who had too many tables for two and not enough for four or more, which caused headaches during busy times. Or the Florida-based drugstore chain’s Minneapolis branch, where a full assortment of suntan lotions was on prominent display – in October.

ChurchWorld Lesson: This is probably one of the most important areas church leaders can discover – and one that many church leaders get wrong over half of the time. Who is in your target area of ministry? Who is coming to your church? Who is not coming to your church? Grouped under the broad area of demographics, this type of information is invaluable to help you understand who your neighbors are and how they may be changing. Once you understand the who, it is much easier to begin to answer the how, where, and why questions of ministry.

As I close this brief foray into the science of shopping, I need to remind you of a couple of things: First, there is a whole lot more about this area that I think could be very beneficial to churches who want to make sure they are doing all they can to attract and retain Guests who come to their churches. My focus has been on the front end of that – hospitality – and there is a lot more. Interested? Contact me for a conversation.

Also, there are probably many who would say all this focus on the church guest and member in a consumer mindset is wrong. Certainly, everyone is entitled to their opinion. Mine is that we live in a very consumer-driven, consumer-oriented society. The competition for churches seeking to reach new people is not other churches – it’s any place and any experience that these people will compare your church to.

Shouldn’t we be doing the very best we can to reach them?

Read Part 1 of this series here.

Read Part 2 of this series here.

Parallels in the Retail and Church Worlds

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Today is the second look at what the church can learn from the retail world. Below you will find a synopsis of the classic work done by Paco Underhill, noted leader in the field of retail observation and analysis. After each section is a bullet-point application to your church.

 If we went into stores only when we needed to buy something, and if once there we bought only what we needed, the economy would collapse, boom.

This quote, by Why We Buy author Paco Underhill, was eerily prescient when written in 1999. In his revision of the book in 2009 as the world was in the midst of an economic crisis, it was still spot on. Today, we continue to experience the turmoil of a shifting economy when people are rightly making wise decisions when purchasing. Even so, you almost have to make an effort to avoid shopping today. Stay at home to avoid all the stores? Internet shopping is available 24/7, delivered right to your door. No computer, no problem – home shopping networks will gladly sell you the latest gizmo for 3 monthly payments of only $39.99. But wait – there’s more! Don’t check your mailbox if you’re going to avoid all those catalogs, sales flyers, and direct mail offers. The result – we are now dangerously over-retailed – too much is for sale, through too many outlets. Retailers are not opening stores in the US to serve new markets anymore. They are opening stores to try to steal someone else’s customers.

  • Your church’s competitors isn’t other churches – today churches are competing with any other company, service, or event in which the customer has a positive experience. Remember that people are first consumers, and the environments they live, work and play in are the ones that will first attract, and then keep them to your campus. Guests to your services are making dozens of decisions about your church before they hear the first music of your worship team, or the great sermon you’ve prepared. Those decisions will play a major role in whether or not they will return.

Just a few decades ago, the commercial messages intended for consumers came in highly concentrated, reliable form: there were three TV networks, AM radio only, a few national magazines, and each town’s daily newspapers. Retailers advertised in those media, and the message got through loud, clear, and dependably. Today there are hundreds of TV channels; FM, satellite, and Internet radio; hundreds of magazines devoted to each special interest; and exponentially expanding Internet sites for information and entertainment. Mobile devices and the hundreds of thousands of apps available for them are the next wave of technology. Simultaneously, we are witnessing the erosion of the influence of brand names. A generation or two ago, you chose your brands early in life and stuck by them loyally until your last shopping trip. Today, in some ways, every buying decision is a new one, and nothing can be taken for granted.

  • Churches, too, are heavily impacted by the fact that traditional branding and marketing are no longer effective tools for connecting with potential members. While they may build brand awareness and help provide information, those factors seem to have a lessening impact in the final decision. Just as shoppers are becoming more susceptible to impressions and information they acquire in stores, Guests to your church are being impacted by your physical campus. An important medium for transmitting messages and helping people make decisions is now your building appearance and “people flow” within in. Consider your facilities a great big three-dimensional marketing tool for the ministries of your church.

Underhill’s studies also proved that the longer a shopper remains in the store, the more he or she will buy. And the amount of time a shopper spends in a store depends on how comfortable and enjoyable the experience is.

  • Imagine a guest coming to your facility for the first time: what if they couldn’t find a convenient place to park near the main entrance; had trouble locating where to drop their kids off; got turned around and lost on the way back to the worship center because of the lack of signage; were dismayed by the dinginess of your children’s space; … you get the picture. Now imagine the same Guest driving in a well-marked parking lot with greeters directing them to a guest parking spot right by the main entrance; another greeter welcoming at the door, and helping the Guest find bright, cheerful, warm spaces that their child eagerly rushes into, staffed by caring leaders; color-coordinated signs direct your guests to and from the worship center with no confusion; and so on. Which Guest is going to return?

So, the “science” of shopping can teach the church a lot about how our building appearances and our welcoming processes can improve our ability to attract, and retain, guests (and members).

How does this “science” lesson translate to your church?

Read Part 1 of this series here.

Go to Part 3 here.

Shopping and the Church

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This post by my boss Will Mancini on how churches can leverage trends in retail brought to mind some research I had done a couple of years ago about the connection between retail stores and the church.

What? You don’t think there are some similarities between the two? Read on, and then let me know what you think…

Paco Underhill, the founder and CEO of Envirosell, Inc. wrote the book on the science of shopping – literally. Why We Buy, originally written in 1999 and updated in 2009, is a witty and pragmatic report from the retail trenches on consumers’ tastes and habits — what makes them tick, what happens to people in stores, how to influence or change customers, and how and why customers change stores. Envirosell is a research and consulting firm that advises a blue-chip collection of Fortune 100 companies seeking to understand the behavior and motivation of the contemporary consumer. Envirosell films, records, and follows 50,000 to 70,000 shoppers through their retail experiences in stores, banks, and public spaces. Underhill uses video, trained “trackers” (researchers who discreetly cruise the aisles tracking shoppers and making notes on their activities), and photo analysis to help retailers understand why consumers buy – or don’t. Here’s a quick story that shows how Underhill and the Envirosell team’s research documented, then changed, the way many stores market a common item today.

A large company owned a chain of drugstores throughout the country. In efforts to understand buying patterns, they had Underhill study a typical store near their headquarters. It was located in an enclosed regional mall in the Northeast. The store’s sales were good overall, but in one category – analgesics – it was underperforming. Video study showed that the closure rate – the percentage of shoppers who bought – was below expectations. Plenty of customers picked up the packages, read the labels, but didn’t complete the purchase. The company’s previous studies had shown that the conversion rate was high, so there was another factor at work.

store aisle

Over the course of three days, a pattern emerged. The aspirin was displayed on a main aisle, on the path to some refrigerated cases of soft drinks, which tended to draw many customers to that section of the store. The main customers for the cold drinks were teenagers, many of them mall employees on a quick break. They would rush down the aisle, grab a drink, and hurry back to the front to checkout. Along the way, they would have to brush by customers – often median and senior adults in the aspirin aisle. The video studies showed that many times the aspirin shoppers would simply stop their browsing and walk away empty-handed.

The primary learning was that a store has more than one constituency, and it must therefore perform several functions, all from the same premises. Sometimes those functions coexist in perfect harmony, but other times they clash.

Hello? Does this sound like your church? Do you not have various constituencies “competing” for the same space and resources? Does it often seem like a tug-of-war with no winners?

The solution for the drugstore chain? They moved the aspirin to a quieter section of the store, where sales rose 15% immediately. They also located a selection of cold drinks and snacks close to the front of the store – a move that has now become industry standard.

That’s what the science of shopping can teach the church. People have habits on how they move in spaces, interact with others, and make decisions.

Why not study the retail world and apply those principles to the design and operations of our churches?

What are some retail lessons you have observed and have implemented at your church?

Read Part 2 in this series here.

Senses and Sensibility – Getting Back to Basics

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Do you long for the “good old days” when the pace of our lives was simpler and life was slower? As comedian Will Rogers once said,

Things ain’t what they used to be – and probably never was.

There’s no use longing for the good old days. In a world that is:

  • Increasingly hurried
  • Painfully insecure
  • Physically and mentally exhausting
  • Socially and economically fragmented, and
  • Psychologically and emotionally demanding

Millions of people are desperately in need of opportunities to feel:

  • Free from time pressure
  • Safe and secure in their surroundings
  • Pleasantly stimulated, physically and mentally
  • At peace with themselves and others, and
  • Ready to be open-minded, creative, and productive

Organizations that can provide such opportunities by re-imagining the Guest experience will attract an enormous number of Guests in the years ahead and keep them coming back.

Guest experience – in a church? Here’s where the “common sense” comes into play. Just like the business you frequent often, churches delivering experiences that exceed Guest’s expectations are those to which people return, again and again, until they’re no longer Guests but full-fledged members of the church community. When a Guest thinks “Wow!” it is because he or she feels affirmed or valued. The church has said, “You matter.” While you may not be trying to sell a product, your Guest (and potential member) is very much “shopping” for a church. More important, they are shopping for a spiritual experience that addresses their personal needs. Why not make sure you do all in your power to make it happen?

A Potpourri of Guest Improvement Ideas

Visit your church …again – How familiar are you with your own church building and campus? We all tend to get comfortable with our own surroundings and overlook what our Guests see. Try to see your facilities through a fresh set of eyes – your guest’s eyes.

  • How easy is it to drive onto your campus and find convenient parking close to your buildings?
  • What’s the condition of the parking lots, sidewalks, and landscaping?
  • Are there greeters and parking lot helpers to guide you into the building?
  • Are the buildings and rooms identified?
  • Is there a welcome area that is warm and inviting and that has smiling helpful people staffing it?
  • Do you have a café or refreshment area nearby for guests and members?
  • If you have children, it is easy to find the right place for them? Do the security measures in place give you a sense of peace as you leave your child?

Visit another church in your community – What can you learn from visiting another church?

  •  How do they handle parking and greeting?
  • What kinds of signage do they use?
  • How are the people greeting one another? Do feel like they’re invading your “space”, or are you comfortable?
  • When you first walk inside the building, what do you smell?
  • Is the area visually cluttered, or pleasing?
  • What’s the noise level like?
  • Is there a café area? Is it clean?

Overall, does the facility make you feel welcome? How does the personal impact of the people fit in to the surroundings?

Visit other types of places and engage all your senses – The next time you dine out, take on the role of a critic. Not just of the food, but of the total experience.

  •  What are your impressions of the parking area, the restaurant, host/hostess, wait time, staff – and don’t forget the food!
  •  How was the experience?
  • What wowed you?

You’re not trying to find something wrong – you’re trying to train yourself to use all your senses to imagine what Guests are experiencing when they come to your church.

Identify potential distractions – and work to remove them – If your Guests become distracted because they can’t find a place to park, or their children’s room has an odor in it, or whatever, you will have a difficult time re-engaging them for the real experience you’re trying to establish: a personal encounter with Jesus. When you eliminate potential or obvious distractions, you are one step closer to satisfying your Guests.

Company’s coming – are you ready to “WOW” them? Use your common sense to engage all of your Guest’s senses and their first impression will be a positive and lasting one.

Want to know more? Expand your “sensory knowledge” by reading:

  • First Impressions: Creating Wow Experiences in Your Church, Mark L. Waltz
  • The Experience Economy, Updated Edition, Joseph Pine and James Gilmore
  • How to Think Like Leonardo da Vinci, Michael J. Gelb
  • The Starbucks Experience, Joseph Michelli
  • The Apple Experience, Carmine Gallo
  • Setting the Table, Danny Meyer
  • Chocolates on the Pillow Aren’t Enough, Jonathan M. Tisch
  • Brand Sense, Martin Lindstrom
  • Moments of Truth, Jan Carlzon
  • Why We Buy, Paco Underhill

 

 

Senses and Sensibility – The Church and Consumers

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As you live your life day in and out, you are living the life of a consumer.

  • Where do you consume?
  • Where do you shop?
  • Who provides service for you?
  • Most importantly, why?

You may stop at your favorite coffee shop for a good cup of coffee – and the conversations you have with the barista and the other regulars in the shop. Your supermarket always has good value and a wide selection of the food your family likes. Clothes from a particular shop just fit better – and the sales associates are always helpful with suggestions. The point is, you have established expectations of each place and the people who work there.

Is it any different for Guests and attendees at your church?

If your goal is to create a space and an experience that will positively impact people, you must first plan and evaluate it from the perspective of its quality. You start that process by examining the daily places and routines in the offices, retail, and recreation spaces of the people you are trying to reach. The homes they live in, the offices they work in and the stores they shop in all communicate a level of expectation they have for their space.

One subtle but powerful expression of this expectation is in our five classical senses: sight, sound, touch, taste, and smell. Leonardo da Vinci reflected sadly that the average human:

“looks without seeing, listens without hearing, touches without feeling, eats without tasting, moves without physical awareness, inhales without awareness of odor or fragrance, and talks without thinking.”

How can the church capture the powerful experiences of our senses and utilize them in their facilities?

A Brief Primer on How Our Senses Work

Sound The outer ear catches and channels sound waves to the middle ear, which contains three tiny bones. These bones vibrate, transmitting the sound the inner ear, where thousands of hair cells are stimulated by the movement of the fluid within the inner ear. An electrical impulse is transmitted along the hearing nerve to the brain creating the sensation of hearing.

Sight The experience of sight begins when photons from the world hit the lens of our eye, and get focused onto over 130 million receptor cells on the retina. These receptor cells convert incoming light into electrical signals to be sent to the brain, making sight possible.

Smell Every day we are confronted with a smorgasbord of smells. Our five million olfactory cells can sniff out one molecule of odor-causing substance in one part per trillion of air. We take about 23,000 breaths per day processing about 440 cubic feet of scent-laden air.

Touch Our bodies have more than 500,000 touch detectors and 200,000 temperature sensors. Each of these sensors gathers sensory information and relay it through specific nerve bundles back to the central nervous system for processing and possible reaction

Taste The complex process of tasting begins when tiny molecules released by the substances around us stimulate special cells in the nose, mouth, or throat. These special sensory cells transmit messages through nerves to the brain, where specific tastes are identified.

Enough of the science lab! God designed our bodies to sense, interpret, and react to the millions of stimuli that occur around us every day.

How do we use this knowledge to improve our environments and facilities?

Tomorrow: Senses and Sensibility: Getting Back to Basics

Senses and Sensibility

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First impressions of your church campus and facility last.

First impressions are automatic – taken in and recorded by our senses, often registered for later recall. More often than not, they make an immediate impact on our decision to participate and to return – or not. We may not agree with it or not, but the consumer mentality of the world we live in has moved full force into our church world. Our churches don’t compete with the “world” so much as the experiences of the world. How can your church learn from this? Think about the experiences your typical guest or attendee encounters during his or her daily routine.

  • Do they have a favorite morning coffee stop?
  • Do they listen to a particular style of music on the radio on the drive in to work – or do they travel in silence?
  • Once at work (or school, or wherever they spend the greater part of their weekday), what is the environment like?
  • Do they have favorite pictures around them, reminding them of what’s really important in life?
  • Do they have a candle or aromatic device nearby, silently wafting a pleasant scent in the air around them?
  • When it’s break time, or lunch time, do they go out to eat – to the same place most days? Or do they bring something from home?
  • On the way home, do they listen to the same music (or silence) as the ride in – or do they switch to something more relaxing – or energizing?

By now you get the picture – or do you?

Tomorrow: Senses and Sensibility: The Church and Consumers

Living on the Digital Divide

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My parent’s generation viewed office paperwork in terms of duplicate copies made by using carbon paper. Correcting mistakes was a laborious process of erasing the original, erasing the copy (messy), and then correcting the mistake.

carbon copy typewriter

I’ve been around to experience the same thing, but not for long. In graduate school I can remember writing and dictating research papers while my wife typed on an IBM Selectric with self-correcting type. We thought we were in heaven!

My first position out of graduate school came with my very own workstation, part of a network of 20 staff positions, with the wonderful world of word processing. We all used a central printer for the output. Like Henry Ford said, we could have any color we wanted as long as it was black.

Through several church staff positions, then as a consultant, and now as the Vision Room Curator at Auxano, I have come to accept the digital universe as normal. I’m typing this in one of my dozens of field offices around the region (Starbucks, for appointments of 1 or 2; Panera Bread, for 3 or more). My laptop is my assistant; I carry a printer around in my 4-wheel office, along with just about anything I would need to talk with a client. I can produce anything from my files in full color, customized for the client, in minutes.

And yet, there’s something gratifying about sketching an idea on a napkin (literally; I do it all the time). And I have several “theme” notebooks that I jot ideas, quotes, and the like in. Sometimes they make it into my digital files; sometimes not.

My world is a digital divide – I can’t do my work without all the innovative developments of the last couple of decades, but I’m drawn to the “old-fashioned” way of writing, in ink, on paper pages.

I’m looking around at kids (anyone under 35) flipping through a tablet, typing on laptops, talking on cell phones, texting on their mobile phone and wondering: Do they have this same feeling? Or are they over the digital divide, living on the next level, moving forward?

Then I think about my granddaughter, who wants to Skype with my wife and me via her parent’s phone almost every week, and my grandson, who makes a beeline for my wife’s iPad whenever he visits. At the same time, our fridge proudly sports the latest fingerprinting, crayon, and marker artworks from these two. For at least awhile, they seem to be comfortable in both worlds.

How long will that last?

Just wondering today…

 

Read Wide, Lead Deep

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Just returned from my weekly trip to the library; also in the stack are a few new acquisitions to my library.

books032813

It’s a varied list that’s for sure, but I believe that wide reading develops deep leading.

Look for a few short ideas from these books in the next few days.

If you only read the books that everyone else is reading, you can only think what everyone else is thinking.

–Haruki Murakami

Spring Semester in the GsD Program: It’s All Disney All the Time!

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In my continuing pursuit of a GsD (Doctor of Guestology), I’m really excited about the next month:

Reading Perquisite

Disney UA long-anticipated book just arrived yesterday –

 

Look for details on the thirteen powerful lessons Lipp delivers in Disney U coming soon.

Learning Lab

Backstage Magic bookshelfIn late April, I will be headed to Disney World for a 2-day learning lab. The first day, I will be spending the whole day in the Magic Kingdom with my wife. We’ll be focusing on the newest attractions and restaurants that have recently opened up in Fantasyland.

The second day, I will be spending about 7 hours behind-the-scenes on the “Backstage Magic” tour. It’s a tour of all 4 parks plus a few extras.

During the ‘semester” look for regular updates on how ChurchWorld leaders can translate the magic of Disney into WOW! Guest Experiences for your church.

the GsD (Doctor of Guestology) journey: Spring 2013

Answer the Phone!

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Several years ago the Barna Research Group conducted a study to determine the general accessibility of church representatives to people who contacted the church by telephone. The results indicated that personal contact was never established in 40 percent of the churches called, in spite of multiple call backs. Of those churches in which no one answered, almost half didn’t  have a voice mail system or answering machine to record messages ( from Simply Strategic Stuff, Stevens and Morgan).

This statistic is a few years old, so I’m sure the numbers have gone up – but the implication is still there nonetheless:

We don’t care enough to answer the phone.

What an indictment on the church’s ability to respond to the needs of our communities!

We need to make it as easy as possible for people to connect with our churches. Even if you are unable to hire someone or recruit volunteers to answer phones, most phone systems today have the capability to provide voice mail or call-forwarding services so no call goes unanswered.

Even if you already have a system in place, don’t assume it always works as intended. As a ChurchWorld leader, you should get in the habit of periodically trying to call your church to see how the systems are working.

  • How long does it take for someone to pick up the phone?
  • Are you placed on hold? If so, for how long?
  • Does the voice mail system operate properly?
  • Are you ever inadvertently cut off?

Once you receive calls, you must be prepared to respond to them. Do you have systems in place for emergency care and counseling? When people leave voice mail messages, are they responded to promptly?

Here’s my biggest phone pet peeve of all: of all days to have a “live” person answering the phone, Sunday mornings (from an hour before to an hour after your services) is the most critical time.

Think a live voice is a thing of the past in today’s high-tech world? Think again:

There’s a lot of buzz these days about social media and “integration marketing.” Our belief is that as unsexy and low-tech as it may sound, the telephone is one of the best branding devices out there. You have the customer’s undivided attention for 5 or 10 minutes, and if you get the interaction right, the customer remembers the experience for a very long time and tells his or her friends about it. Tony Hsieh, CEO of Zappos

These first impressions communicate a lot. If people have initial encounters filled with frustration because they can’t successfully maneuver through your phone system, they’ll quickly assume your church isn’t capable of helping them.

I’m pretty sure that’s not the message you’re trying to communicate.