Invalid Excuses for Poor Business Results - The Weather

Note to Kmart: It wasn't about the weather

In the 1970s Kmart was the retailer to beat. No matter what happened, they seemed to turn profit. Customers were loyal and prices were hard to beat. The chain was opening more store each year than some of their competitors had in their entire chain and sales were growing at admirable rates. Things were good.

Then sales began to slump. By the middle of the 1980s Kmart was beginning to be report poor sales. The main reason they gave: the weather.

With each disappointing sales report, Kmart blamed the weather. "The bitter cold hurt business." "The blizzard moving through the Midwest kept customers away from the stores." "The unseasonably warm fall decreased demand." Whine, whine, and more whine.

At first, investors bought the excuses. They overlooked the fact that in each sales period Wal-Mart would report record or near-record results. Observers noted that Kmart's merchandise mix was more weather driven than Wal-Mart's because Kmart had more lawn and garden and apparel business than Wal-Mart's merchandise assortment which relied on more consistently selling consumables and commodities.

As time went on, the whine became tiring. Analysts began to grow weary, with one eventually noting that Wal-Mart was apparently having different weather than Kmart.

Top management had become so engrossed by the weather as the reason for poor sales that they did not even look at other possibilities. Prices were less competitive. Weekly ads were not bringing people into the stores. Customers were finding empty store shelves. New products were taking longer to get to Kmart's shelves than at Target and Wal-Mart.

To make matters worse, executives at Kmart decided to upgrade the merchandise mix, thinking their customers would appreciate higher quality merchandise and be willing to pay more. Customers didn't agree. Weekly reports showed customer counts were continually dropping, so management decided to drop the report. The chain was out of control, disconnected to their founding principles, and so convinced that if they could just get Mother Nature's favor everything would be okay.

Kmart is not alone in blaming the weather. Resort areas have long used them as an excuse for a poor season. Home and Garden businesses regularly point to the weather when results fall short. Sporting goods stores and athletic venues say weather controls results. Although one might say there is validity in their claims, it is nothing more than whining, whining, and more whining.

During the fall of 2004, Florida was hit with no less than 4 hurricanes. Orlando's Walt Disney World and Sea World certainly could have complained that sales and profits were hurt because of the hurricanes. Neither did. Why? Both businesses understand the nature of weather on their business. They have designed their businesses in such a way as to protect their bottom-line. They have done so by connecting to their customers and understand exactly what their customers wanted yesterday so they can accurately predict what customers will want tomorrow.

It is not about the weather, it is about understanding what your customer wants and delivering it to them in the manner they desire. Wal-Mart understands, Sea World understands, and Walt Disney Theme Parks understand. More importantly, their employees understand. They are so focused on the customer that the customer will reward them time after time, no matter what the environmental conditions. To be successful, your first second, and third business focus must be on what the customer wants.

Rick Weaver is President of Max Impact, a national leadership and organization development company based in Rochester Hills, Michigan. Rick is an accomplished business executive with experience in retail, market analysis, supply chain and project management, team building, and process improvement. He has worked with hundreds of companies to improve sales, processes, and bottom-line results. MaxImpact offers leadership and organizational development services along with employee assessments and background checks. Contact Rick at 248-802-6138 or via email, rick@getmaximpact.com. MaxImpact is on the web at http://www.getmaximpact.com

---

When a Customer Has Done Everything to Get Your Goat

You try to make your customers happy. You sincerely WANT... Read More

5 Ways Customer Service Managers are Implementing to Increase Customer Focus

According to a Forum Corporation survey of commercial customers lost... Read More

Be the Customer: See Yourself as Your Customers Do

What do your customers experience when they interact with your... Read More

Automating Your Customer Support

My regular readers will know that one of the things... Read More

Clients?Do You Really Need Them?

Running a successful business takes a lot of energy and... Read More

Customer Service Has Moved Toward Customer Care

As I waited for an answer to my VCR inquiry... Read More

What You Need to Know About CRM

1. It's all about the customer. Some companies focus too... Read More

Post Office, Incredible Lady Postmaster

There are two Post Offices that I routinely visit. One... Read More

Modern Call Center Solutions - Keeping in Touch is the Key

Call center solutions solve a range of age-old problems. As... Read More

Astonish your Customers With These Customer Service Tips

Customer service today is getting worse. Win customers over and... Read More

Customers Who Rave About You and Your Service

According to customer service studies by marketing gurus of the... Read More

Whats The Customer Service Buzz About Your Business?

If you're a regular reader of my column you know... Read More

What Every Employee Should Know About How to See Customers Problems from Their Creative Side

Customer Service is a blessing and a curse; a blessing... Read More

Adjustment DENIED

It's just a simple thing ? I bought a new... Read More

Develop Loyal Customers for a Lifetime ? part 1 (1 ? 10)

Traditional marketing strategies encourage business owners to continually grow their... Read More

Call Center Software - Your Tool of Choice in Customer Relations

The call center represents your first line of communication with... Read More

Create Win-Win Deals With Your Competitors

In the competitive world of the 20th century, we generally... Read More

Get Customers to Stop Calling You--12 Easy Ways to Save Money with Online Customer Support

Despite rumors to the contrary, the Web is not dead.... Read More

How To Build Stellar Client Relationships

Your opportunity to build a stellar client relationship starts with... Read More

The 3 Rs of Customer Service

What I am about to tell you may seem very... Read More

It Is All About Customer Service!

In this day of terrible customer service, it should come... Read More

A New Way To Handle Complaints, Or Is It?

What a lot of money we have been wasting on... Read More

How to Easily Increase Your Profits

Do you remember the last time you went into a... Read More

Customer First Customer Service

The world of customer service is rapidly changing. Thirty years... Read More

Client Service as a Competitive Advantage

As someone who has been heavily involved facilitating strategic planning... Read More

4 Easy Steps to Better Online Customer Support

Customer support is very important when you're running a business,... Read More

Have You Hugged a Customer Today?

It all started a couple of weeks ago when a... Read More

Learn to Anticipate Your Customers Needs

This morning I was having breakfast with my good friend... Read More

Setting Up a Customer of the Week Program for a Mobile Car Wash

In a mobile detail or mobile car wash business you... Read More

Customer Service - A Sweet Essence

First let us specifically define customer service. It is the... Read More

What Every Employee Should Know About Putting Positive Phrases Into Customer Service

If you were a customer on the telephone with a... Read More

Clients... and 38 ways to communicate with them

As Alan Weiss (guru to the savvy consultant) says: "It... Read More

E-Business?s Best Friend: eCRM

From Ebay to the smallest home-operated start-up, e-businesses of all... Read More