I want to share this staggering statistic. 1 in 12 people in the US is a shoplifter and a shoplifter will commit an average of 50 thefts before being caught. What is worse for retailers is that this represents close a 5 Billion dollar loss to shrink.

I think store shrinkage is that "dirty little secret" that no one wants to talk about but everyone knows it is happening. Most people feel that it is only the customer who is stealing. Unfortunately the latest statistics showed that dishonest employees stole as much as six times the dollar amount that shoplifters do.

In order to "shrink the shrink numbers", I believe that organizations need to take ownership of the problem and train their employees to be more engaged at work.
Statistics have also shown that if an employee has a conversation with a customer, that customer will be less likely to steal from that store. It seems to me that one of the key ingredients to any good training program should be that of making a connection with the customer.

Here are 3 ways to connect and keep the attention of your customer.

1. Aware:

Employees are expected and encouraged to multi-task. I always have said that any good employee has to be a magician, an actor, a diplomat and a teacher! Those terms are even more important as scheduling becomes a challenge for retailers. No matter how busy an employee becomes, it is very important that they are always aware of who is in the store and where they are at any given time. If it is a large store with a number of departments, then each employee should be aware of who is in their area of responsibility.

To be aware is to be actively engaged. What do I mean by that? I mean that personal technology devices are not allowed. As the employee is working they are making eye contact with customers in there area of influence. If they are text messaging or taking personal phone calls or chatting with other employees, they are not actively engaged in their job. Employees should be taught to notice bags that are brought into the store, heavy coats being worn when the weather is hot, overly large handbags and anything else that just looks suspicious. Offering to hold something at the register is a good way to help a customer who needs a hand but it can also make a "would be shoplifter" think twice.

2. Eye Contact:

When teaching employees how to greet a customer, never overlook the power of eye contact. I always tell employees to look at them long enough to recognize their eye color. You may think that is strange, but by doing that you have made a connection and a recognizable impression of their face. I still believe in the use of name tags worn on the right hand side of the shirt so that there is a connection made between the eyes and the name and back again. For the customer, this is the best way for them to recognize the employee as the expert who can help them. For the shoplifter, it is a way to make them uncomfortable, which is what the goal should be.

3. Know Store Policies:

Ongoing training programs that focus on store policies and updates or changes are very important. Each company has a list of policies, many of which are hard and fast rules that only a manager can override. Policies that refer to holds, returns, cash refunds and exchanges are important for employees to know. Not only is it important to know the policies but it is even more important for the employees to know their own merchandise. Frequently customers will try to return merchandise to a store other than where the merchandise was supposedly purchased from.

New, inexperienced employees can become flustered and choose making the customer happy over following the store rules. I know what you may be thinking you were that person who actually had a legitimate return and the employee made the process painful at best! Yes, it situations like that happen everyday. The job of the employee is to use their "inner radar system" to decide if the return or complaint is legitimate or if the customer is looking for a way to "steal" from the store.

Being aware, making eye contact and having a strong working knowledge store operations should be an on-going requirement for any store employee. When any of those three is missing, companies open the door for potential thieves to steal their profits.

About the author:

Anne M. Obarski is "The Customer Service Spy!" As a professional speaker and trainer, Anne will work with your company to provide you with the clues to keep your customers coming back. Anne presents keynotes, break-out sessions and customized training, nationwide, in the area of customer service. Youll want her two new books, "Surprising Secrets of Mystery Shoppers" and "Real World Customer Service Strategies That Work". For a limited time get her free, "10 Big Secrets to Giving Mystery Shopper Feedback and Get the Changes You Want", by faxing 636-922-2696 on your letterhead and write the words, BIG SECRETS. For more info go to: http://www.merchandiseconcepts.com or email Anne at anne@merchandiseconcepts.com.

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