Posts Tagged: financial independence

Three words that strike fear in the heart of a hairstylist.

I have the pleasure of spending most of my days at our beauty school with some of the most amazing people in the world: cosmetology students. We call them Future Professionals, a term Paul Mitchell School’s pioneered more than a decade ago. During a recent professional development class I taught, we talked about the service cycle and some of the things that can make it successful. “A great cut,” responded one Future Professional. “An awesome blow-dry and style,” responded another. “What about great communication?” I asked. Met with quizzical looks, I continued my line of questions. “Do you guys talk to your guests about services we offer that they aren’t there for? What about the products you’re using on them – do you talk to you guest about them?” No one was talking. “How about rebooking and recommending products – you’re doing that, right?” The anxiety in the room was palpable. Since performing these tasks during a service is part of the service and education experience, I was a bit concerned that they weren’t engaging in these important steps and wanted to get to the bottom of their reluctance. “Why aren’t you guys doing these basic things, guys?” I looked around the room and finally someone spoke up. “I don’t like when people tell me no.”

Fear of rejection is a common fear and is the most potent and distressing of every day events, according to psychologists, and is experienced in friendships, romantic relationships, and in the workplace. It’s no wonder After all, most of us associate the word no with rejection, and who likes to be rejected? But statistically speaking, you have a 50/50 chance that the answer will be yes and in our industry, as in countless others, yes = income. I’ll give you some real world examples of places where a yes answer would add dollars to a business’s bottom line:

At the register at Old Navy: Cashier asks, “Would you like to save 15% on your purchase today by opening an Old Navy card?” If the person says no – no big deal. If the person says yes and gets approved – they have an open line of credit and are more likely to make purchases. #makingmoney

At the register at Barnes & Noble: Cashier asks, “Would you like to get valuable coupons by sharing your email address with us?” If the person says no – no big deal. If the person says yes, they receive coupons encourage them to come to the store and spend money. #making money

At McDonald’s: Cashier asks, “Would you like to make that a large for just $2.00 more?” If the person says no – they’ll live longer. Ha ha. If the person says yes, McDonald’s just made $2.00 more than they would have made had the cashier not asked. #makingsensenow

Okay, now I want you to imagine the financial ramifications to each of the companies I used in the example above if the add-on questions were never asked. Old Navy is owned by Gap, Inc., and according to their Annual Shareholder’s report their net sales for 2012 were $15.7 billion. McDonald’s? $6.5 billion. Barnes & Noble? $6.8 billion. A huge percentage of the sales that occur in those companies come from their front line people asking those important, revenue generating, questions. And, in addition, customers expect to be asked to “add-on” to whatever it is they’re buying; they won’t be surprised or offended if you ask. In fact, if you leave off that important add-on question, some might wonder why they weren’t asked!

This week set a goal to ask at least one customer per day an add-on question – one that will increase your ticket, your retail, or your rebooking. Then, share your results with me here. I’d love to hear your success stories!