What Retailers Don’t Know – But Churches Can Learn

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

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

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 – The Church and Consumers

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

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

Answer the Phone!

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.

 

The Other Side of the Coin: What Drives Front Line Team Member Engagement

Yesterday’s post approached the topic of front line engagement from the perspective of the leaders in your organization. Today, it’s time to look at the other side of the coin – your front line team members.

Involving team members in decision-making processes, enabling them to innovate, and providing the autonomy and resources to solve customer problems collectively offer frontline team members the essential elements that have been shown to drive team member satisfactions and engagement.

Research has provided many labels for the drivers of team member commitment, but authors Chris DeRose and Noel Tichy, writing in Judgment on the Front Line, summarize them as the “four C’s.”

Context

Frontline employees want to connect their daily interactions with the customer to the achievement of larger long-term goals. This requires an understanding of strategy and customer and business objectives.

Control

Frontline workers, like most people, want to feel empowered to make autonomous decisions and take action when necessary. There must be established boundary conditions in which employees feel free to make decision, and they must be given the training and tools to make effective judgments.

Care

Ultimately, if employees do not feel connected to their organizations and have a sense that coworkers and managers are unconcerned with their well-being, they will not care about he organization or their job.

Creativity

Work is a personal endeavor that occupies the majority of waking time for most people, so frontline employees need the opportunity to exercise their individual thought and creativity and invest their own personality in their work.

The concern and trust that senior leaders exhibit for all team members in a front-line focused organization translates into strong culture and improved work environments.

That’s something both sides can agree on!

Trust helps you move quickly. It increases your speed. When it’s absent, you can see it – more checks, controls, and processes. That’s bureaucracy.

Randall Stephenson, Chairman and CEO, AT&T

ChurchWorld Frontline Facts

Front Line Teams are uniquely positioned to create value in your organization

  • Generating value – your team can offer new ideas based on first-hand dialogue with Guests about their needs
  • Solve problems – when your frontline team is free to exercise its judgment to make good decisions for the Guest, they can solve problems on the spot
  • Avert crises – frontline teams know where the trouble spots are, and can help your organization avoid disasters by providing early warnings

 

Part of an occasional series translating the best of Customer Experience in the Corporate World into Guest Experiences for ChurchWorld

Adapted from Judgment on the Front Line, Chris DeRose and Noel Tichy

Undercover Boss May Make Good TV, But It’s a Lousy Way to Keep in Touch With Your Front Line Team

On Undercover Boss, the brilliant CEO goes undercover on the front lines of his company to learn just what’s going on, and how he is going to make it better.

Fail.

In the shows that I’ve seen, it’s more like a Three Stooges comedy from my childhood, only this time there’s only one stooge – the Boss.

Without fail, the Boss learns that he lacks the skills, intelligence, and experience required to keep up with his tasks. His coworkers and supervisors, though clearly frustrated with him, try and try again to train him.

The end result? Big Boss CEO, now humbled by his front line, vows to make changes to the policies and procedures which will improve his team’s working conditions, performance, personal lives, and, by the way, maybe even his bottom line.

I’m not too cynical of Undercover Boss – just thinking there has to be a better way for the CEO or senior leadership team of any organization to find out just what’s happening on the front lines.

If CEOS and senior leaders don’t create routines for understanding customer needs through the eyes of frontline workers, they run the risk of creating strategies that can’t be put into operational practice. Building a business model that is aligned with customer needs is only the beginning – once these needs are identified, the leadership team must work backward from the moment of truth when their team is face to face with the customer.

Chris DeRose and Noel Tichy, writing in Judgment on the Front Line, show just how to make that happen. They don’t advocate that CEOs try to do the jobs of their front line workers (like Undercover Boss). Instead, DeRose and Tichy think that leadership teams must design and build a front-line focused organization. They begin at the top:

Five Responsibilities of Leaders in a Front Line Focused Organization

  • Define a Customer-Based Vision – set the vision and define the strategy based in part on observations, feedback, and learnings from the field
  • Develop a Front Line Focused Culture – create a culture of front line focus with a deep respect for the needs and experience of the front line
  • Obsess over Talent – while deeply respecting their entire organization, leaders know they will win only by having the best talent and right kind of leadership at the front line
  • Define the Judgment Playing Field – leaders ensure that front line teams are equipped with the right resources to make good judgments on behalf of the organization and in the interest of the customer
  • Live on the Line – leaders need to go where the action is, a reality check at a deeper level than just an annual fly by appearance

Now isn’t that better than any episode of Undercover Boss?

My name is Herve Humler and I am the president of Ritz-Carlton… and I am a very important person. But you are more important than I am. You are the heart and soul of this building.

Herve Humler, addressing hotel staff shortly before the grand opening of Ritz-Carlton’s Hong Kong property

ChurchWorld Frontline Facts

Strong leadership is required to unleash the front line

  • Senior leaders use their authority to create the architecture and support systems
  • The organization’s top team must stay directly connected to those in the field
  • Information from the front line should be used to define and refines strategy

Building a front line-focused organization is a process

  • An integrative framework is needed to replace a collage of initiatives
  • The process helps whether starting from scratch or rebuilding a decades-old institution

Part of an occasional series translating the best of Customer Experience in the Corporate World into Guest Experiences for ChurchWorld

Adapted from Judgment on the Front Line, Chris DeRose and Noel Tichy

The Frontline Innovation Factory

If you’ve spent anytime on Amazon, you are probably familiar with their recommendation feature – you know, the bar of products across your screen with the title “Customers Who Bought This Item Also Bought”…

It has been very successful to say the least – many shoppers, having found what they are looking for, are delighted to look at other items that compliment their find. (Especially me, when it comes to books!)

When the engineer who developed the idea, Greg Linden, developed a prototype and took it to his boss, he was expressly prohibited from proceeding further with the project.

Wow – Talk about a missed opportunity!

In the vast majority of other, larger, older organizations, the idea would have been killed right then and there. But, as we all know, Amazon was (and is) different.

Customer centricity has been deeply ingrained in Amazon’s culture from the outset. Amazon’s CEO Jeff Bezos has been known to leave an empty seat open at a conference table to remind all attendees that they should consider the seat occupied by their customer, “the most important person in the room.”

Amazon’s overriding respect for the customer gave Linden the freedom to proceed with his trial – even over the objections of his senior vice president. The results were so clear and irrefutable that the feature was fast-tracked, and shopping cart recommendations, as we know them, were born.

That’s the power of the Front Line.

In my experience innovation can only come from the bottom. Those closest to the problem are in the best position to solve it. I believe any organization that depends on innovation must embrace chaos. Loyalty and obedience are not your tools; you must use measurement and objective debate to separate the good from the bad.

– Greg Linden, former developer and engineer, Amazon.com

 

ChurchWorld Frontline Facts

The front line is the richest untapped source of ideas and innovation

  • Those closest to the Guests most often understand their needs best
  • Frontline leaders have the know-how to solve operational problems

Winning organizations embrace the paradox of creativity and control

  • Leaders control by setting context and boundaries
  • Leaders creatively unleash their front line by teaching them to make judgments

 

Part of an occasional series translating the best of Customer Experience in the Corporate World into Guest Experiences for ChurchWorld

Adapted from Judgment on the Front Line, Chris DeRose and Noel Tichy

 

What Can You Learn from Your Front-Line Team?

Cross-Utilization (Cross-U) is a Walt Disney World program that operates during the Spring and Winter holidays (their busiest seasons). It gives Cast Members from various parts of WDW a chance to work the front lines and interact with Guests.

With so many Cast Members of WDW working behind the scenes, Cross-U offers a wonderful opportunity for Cast Members to participate in one of the cornerstones of the Disney enterprise: Guest Services.

Participants in Cross-U witness the collective effort it takes to create the great Guest Experience. Regardless of where behind-the-scene (or off-stage) Cast Members work, there is no better way of understanding the impact of magical Guest Experiences than watching kids and their parents enjoying a favorite character or attraction.

According to Disney executives, getting ready for Cross-U takes months of planning, thousands of details to monitor and an untold number of checks and balances.

Is all this trouble worth it?

The answer for Disney is a resounding Yes! In addition to providing much-needed front-line help during busy times, the feedback from participants after their shifts is invaluable. They talk about making a difference with Guests and assisting Cast Members.

In other words, they get it – they understand the critical importance of front-line staff in Guest Experiences. And it’s just not head knowledge – it comes from direct interaction with Guests.

How valuable would that be in any organization that serves Guests?

More importantly, how important would a process like Cross-U be in ChurchWorld?