Jan/Feb Feature - Retail Franchising Business Franchise Australia and New Zealand

retail

VOL 13 ISSUE 02 jan/feb 2019

retail

franchising an industry on the rise

RETAILERS MUST EMBRACE CUSTOMER FEEDBACK how do you recruit and select the

BEST SALES PEOPLE

Resources at your fingertips!

CURRENT TITLES INCLUDE: Business FRANCHISE Australia and New Zealand magazine The Magazine for Franchisees, Bi-monthly publication The Australian and New Zealand Business FRANCHISOR magazine The Magazine for Franchisors, Quarterly publication Australian and New Zealand Business FRANCHISE DIRECTORY Annual publication The FRANCHISE GUIDE Annual publication CGB’s website also provides an additional advertising and information format and complements our publications.

www.businessfranchiseaustralia.com.au

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Contents On the Cover 40 Special Feature: Retail Franchising: An Industry on the Rise

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48 Expert Advice: Retailers Must Embrace Customer Feedback 58 Expert Advice: How do you Recruit and Select the Best Sales People?

36 What’s New:

Announcements from the Industry

52

42 Expert Advice: Retail - Taking It Offline

FC Business Solutions

46 Profile: Clark Rubber: The Clark Rubber Commitment 48 Expert Advice: Retailers Must Embrace Customer Feedback

Vicky Katsabaris | Qualtrics

50 Profile: Carpet Call and Solomons Flooring: Exciting Opportunities 52 Expert Advice: Driving Sales With Social Media

Melissa Haywood | Head of Vista Print Australia

55 Focus Feature: BoConcept: Australia’s Superior Retail Franchise 58 Expert Advice: How do you Recruit and Select the Best Sales People?

58

Mike Adams | Author

60 Profile: The Lott: When Australia Dreams, we all win!

A regular of Business Franchise Magazine, our special supplement in franchising showcases a different industry each issue To share your specific expert industry advice or to feature your franchise in the next issue, please contact: Kathleen Lennox, Sales & Marketing Manager Phone: 03 9787 8077 Email: kathleen@cgbpublishing.com.au

Business Franchise Australia and New Zealand 35

what’snew!

Woolworths Group CEO Brad Banducci said that the transaction is “positive for our customers, our team and our shareholders.”

“The agreement will continue to strengthen the opportunities our customer have for greater value when shopping with us, with the benefits of Woolworths Rewards program and the duel discount offer set to continue,” he said.

EG Group is the leading petrol forecourt retailer in Europe and has had recent success in the US.

Woolworths to sell fuel business for $1.7 billion Woolworths Group has announced plans to sell its petrol business to British retailer, EG Group for $1.725 billion. The supermarket giant has entered into a 15year commercial alliance with the global leader in fuel and convenience retailing.

As part of the deal to sell its 540 fuel convenience sites, Woolworths will also commence a wholesale food supply agreement to the network. Woolworths’ four cent per litre fuel discount will continue and customers will continue to earn Woolworths Rewards points on fuel and merchandise.

“We are committed to investing in the site network, introducing leading retail brands, developing the alliance with Woolworths and working with the exceptional management team,” EG Group founder and co-CEO Mohsin Issa said.

On Monday morning, Woolworths announced that its chief legal officer and company secretary Richard Dammery will step down from his role in late January 2019.

Dammery played an important role in the group’s petrol transactions and the recent sale of the fuel business. https://www.woolworths.com.au

Lease changes to give NSW retailers access to better data Retailers in NSW will have the ability to access information on sales reporting and occupancy costs from shopping centre landlords, improving transparency and accountability as of January 1, 2019.

The change comes as a result of a partnership between the Australian Retailers Association, the Pharmacy Guild of Australia and several other industry bodies that have developed the Retail Industry Code of Practice – The Reporting of Sales and Occupancy Costs.

“This landmark achievement for retailers in NSW will provide vital information to tenants in shopping centres, allowing them to betterunderstand the real value of their leases,” ARA executive director Russell Zimmerman said.

“The implementation of this code will help to give some power back to retail tenants and give them some added certainty when it comes to negotiating with their landlords.”

While the collection of sales data has been the norm for some time, the way it is collated and reported has created long-running issues of contention for retailers.

transitional period to July 1, 2019, will allow shopping centres to sign up for and implement the changes.

Ensuring that all relevant parties have access to this data means that landlords, retailers and third parties can make tenancy, marketing and stock-ordering decisions with a more complete understanding of what is selling and what isn’t in a particular store.

“We will be working to implement this code nationally over the medium-term, and with rising costs, increasing competition and patchy sales growth creating some headwinds for retailers, big wins like this can make a substantial difference,” Zimmerman said.

The Shopping Centre Council of Australia (SCCA) has agreed to the code, which will be implemented in the new year. A six-month

Visit http://www.businessfranchiseaustralia.com.au/latest-news for more details

36 Business Franchise Australia and New Zealand

Australian Skin Clinics launches Australia’s first media-aesthetic rewards program ‘clubblue’ In an industry first, Australia’s experts in laser and skin rejuvenation Australian Skin Clinics have launched their rewards program, clubblue, into their clinics nationwide. The program works on a credits-based system, allowing clients to earn a percentage of their spend back in credits, known as ‘bluedollars’.

Christie Harris, Chief Marketing Officer of Australian Skin Clinics, said the program was built to reward clients for rewarding themselves.

“We wanted to find a way to show our customers that they deserve the best service and reward them for coming to us for their medi-aesthetic treatments,” said Christie.

“This program has been in the works for over 12 months, with clubblue really coming to life over the last six months thanks to a lot of hard work behind the scenes to ensure the introduction was a smooth transition for our franchisees and entire network.”

Any client who makes a purchase between $1.00-$1000 will sit at the Turquoise level, moving up to the Sapphire level if they spend between $1000 and $2000 in a 12-month period. Those clients who spend over $2000 in a 12-month period will be most rewarded at the Blue Diamond tier.

“Each bluedollar is worth $1AUD. This value was chosen to make the program simple, as

well as give clients a sense of earning and spending real money with real value. We have all been involved with loyalty or rewards programs where 50,000 points will buy you a toaster, which is not what we wanted to give our clients,” said Christie Harris.

and they don’t have to be concerned with membership cards or remember to claim at every appointment. Instead, Australian Skin Clinics will provide clubblue members with a free, limited edition keyring as a thank you for being ‘part of the club’ (while stocks last).

“Even clients who visit infrequently will be rewarded because everyone deserves it, no matter how much you spend with us. The program is an investment into our clients because ultimately, they come first.”

For a limited time, Australian Skin Clinics will be offering a free customised keyring to all clients who make a purchase in December.

Clients automatically become a member when they make a purchase or book an appointment, meaning the transition is simple

Terms and conditions apply, bluedollars are not redeemable for cash and cannot be earned or redeemed on injectable stock and services.

For more information visit www.australianskinclinics.com.au.

Dymocks opens 17th Victorian store Book retailer Dymocks has opened its 17th store in the state of Victoria at Highpoint Shopping Centre in Maribyrnong. The store is the first to open in the state in two years.

As per customer demand, 15 per cent of floor space is dedicated to nonbook products, with a strong emphasis on gifts, cards and stationary.

“The store looks fantastic and will become a destination zone for Highpoint book-lovers,” franchise owner Michelle Lee said.

“It’s designed as a vibrant, welcoming space for customers to mingle and browse the shelves. Dymocks is constantly evolving its store design to keep pace with today’s customer.”

The location features a more modern, open interior, and includes digital display screens and signage in order to ensure customers are kept up-todate on any changes made in the store.

Lee said the book retailer has a significant customer base in the Melbourne metro area. https://www.dymocks.com.au

Business Franchise Australia and New Zealand 37

what’snew!

developed in partnership with Inhaabit.

Users can also move around the space and see the product from any angle. They can place multiple products together to compare sizing, and combine them with dining and lounge settings, to build the perfect outdoor arrangement.

The initiative is meant to alleviate customer hesitation at the point of purchase. Barbeques Galore noted that summer is peak season for barbeque purchases.

Retail chain uses augmented reality to assist sales Specialty retailer Barbeques Galore has become the latest retailer to develop a mobile app that lets customers ‘see’ what their products will look like in situ before buying.

at a location inside or outside their home – a patio for instance – and see whether a product will fit in the space and what it will look like. An Android version of the app will be launched later this year.

The newly launched app includes an augmented reality (AR) feature that makes it possible for customers to point their iPhone

Over 100 popular products, including barbeques and outdoor furniture, are available in ‘ultra-realistic detail’ in the app, which was

“Traditional retail sales channels such as showrooms, catalogues and websites are key customer experiences in the pathway to purchase, we are now excited to add to this with our at home app. It is a move to continue supporting our customers in the channels they move to and play and continue our status as a category leader,” said Barbeques Galore CEO Luke Naish.

“By giving customers the best way possible to see our products within their home environment, we are helping them make the best purchase when they come in-store.”

Ikea and Redbubble launched similar services last year, shortly after Apple launched its ARkit, which made it easier for developers to integrate AR functionality into mobile apps. https://www.barbequesgalore.com.au

Appliance rental franchise pays $257k for lending breach Local Appliance Rentals (LAR) has paid $257,500 after ASIC identified concerns regarding LAR meeting its responsible lending obligations and its supervision of franchisees.

LAR provides consumer leases nationally through a franchise model, including in regional and remote areas of Australia such as the Tiwi Islands, Katherine, Broome and Thursday Island which have a high Indigenous population and limited options for purchasing household goods. LAR mainly leases household goods to low-income consumers, including those who receive payments from Centrelink.

A Court Enforceable Undertaking requires LAR to remediate affected consumers, appoint an independent compliance consultant,

and pay a Community Benefit Payment of $100,000 to The Smith Family.

Three infringement notices totalling $157,500 were also issued for concerns relating to responsible lending failures following ASIC’s review of LAR’s consumer lease contracts.

LAR paid these infringement notices on 27 September 2018.

ASIC entered into the EU and issued the infringement notices as it was concerned

38 Business Franchise Australia and New Zealand

that low-income consumers often have little flexibility in their spending and may have to go without essential items or default on other financial commitments, including rent and utility bills, due to responsible lending failures by firms. LAR will provide remediation to affected consumers, including those who made excess payments or were charged excessive late fees. https://asic.gov.au/

Coles opens first newformat store in Melbourne

Supermarket giant Coles opened the doors to its first Coles Local store in Melbourne’s Surrey Hills on Tuesday, unveiling a completely new look and smaller format.

The rustic style of the neighbourhood store (the traditional red-and-white design is nowhere to be seen) suits the tailored, sustainable offering that the store promises.

About half the size of a full-size Coles supermarket, the new store is approximately 1280sqm and designed specifically to meet the needs of the local community with a range of local and imported products.

Pandora scaling back new stores as part of global reset

Customers can take advantage of the store’s in-store barista and chef, a food waste digester, 100 per cent Australian-grown fresh food, as well as a new range of Coles Local branded products.

Jewellery retailer Pandora has unveiled an initiative that it hopes will reignite sustainable revenue growth, Programme Now, after group revenue dropped 3 per cent in the third quarter of 2018.

Coles CEO Steven Cain said the new store gives the community “the convenience of a supermarket with the character of a specialty store”.

“The great thing about Coles Local is that it makes life easier for our customers and helps them explore their love of food. Our customers have told us they’re often juggling shopping with a busy family and work schedule, so there will always be a friendly team member who can help them find the specialty products they want to take home for their families,” Cain said.

The Surrey Hills store is focused on supporting Australian suppliers, sourcing products from Backyard Honey, Meatsmith, Brunetti, MoVida and more. Its fresh food offering including meat and seafood is 100 per cent Australian-grown. https://www.coles.com.au/coles-localunveiled

Under the programme, Pandora will significantly reduce its franchise acquisitions and scale back new store openings. For the stores it does open, it will concentrate on growth markets, such as China, India and Latin America. It hopes the move will grow like-for-like sales, if not total sales.

In order to achieve this, the business plans to enhance its marketing, personalisation, digital and e-commerce capabilities, as well as the in-store customer experience.

Pandora also noted that part of its success moving forward lies in execution in all parts of the value chain, as well as more closely coordinating parts of the business to work in tandem, to reduce costs.

The implementation of the programme, as well as the weak Q3 results, however, have led the company to revise its expected FY18 financial guidance.

Pandora has cut its annual revenue forecast from between 4 and 7 per cent to between 2 and 4 per cent, or DKK 1.4 billion to DKK 1.2 billion ($296 million to $253.9 million).

“The third quarter results were unsatisfactory and we adjust our full year guidance,” Pandora chief financial officer Anders Boyer said.

“We have taken the first major step in the programme today by changing our network expansion plan. We have confidence in a strong future for Pandora and will use 2018 and 2019 to reset the business.”

Pandora expects revenue and total like-for-like growth to be impacted through to 2020 by the planned reduction of mark-downs, though this is likely to cause a margin neutral result on the group level. https://au.pandora.net

Business Franchise Australia and New Zealand 39

FE ATUR E : r e ta i l fr anch isi ng

FE AT U R E A R T I C L E

retail

franchising

an industry on the rise rises from last year, and shows that retail is still a growth industry year-on-year, albeit it small and despite a continuing squeeze on the economy.

The options are endless

As a retailer, or potential retailer, your product is the most important component in your business. It should be top quality and something you believe in.

However, it cannot stand on its own. If you don’t have a sound business plan, a strong marketing strategy and a firm grasp on your financial status – the quality of your product becomes second tier.

To succeed in retail, you must be a shrewd business person who considers all facets of the business.

It’s a common misconception that the retail industry can be narrowed down to a variety

of clothing stores. In actuality, retail is so much more than what’s on the rack. Nearly every store in every shopping centre is a cog in the capitalist economy that is retail. Any business focused on the sale of products, is a part of the huge industry of retail. In fact, any business that provides goods and services created solely for consumers wants and desires could be considered retail.

Retail could be high end products or a giant department store, a two dollar shop or toy store. Either way, there are a lot of different retail franchises that are successful and well known throughout Australia and New Zealand. For investors looking to explore different types of opportunities that focus on customer services and sales, a stroll through the local shops can help determine which type of retail best suits your personality and interests.

An industry on the rise According to recent Retail Trade figures by the Australian Bureau of Statistics, Australian retail turnover rose 0.5 per cent in October 2017, which followed a 0.1 per cent rise in September 2017. This follows similar

40 Business Franchise Australia and New Zealand

Do you have visions of owning your own quaint little dress shop in the local village, or a big name coffee house in the flash shopping centre in the city? Want to get your hands on some of this money being handed over by eager consumers?

These are tempting ideas, but tread carefully.

Over the years, global economies have affected nearly every industry. Australians are much more selective now with their money. Consumers are more conservative, more willing to seek out a ‘good deal’ and more willing to wait for the items they want.

This means retailers are competing in a highly competitive arena, as they fight to win the dollars that are being spent.

On top of this, commercial rental rates have skyrocketed, with large shopping conglomerates pushing for leasing rates based not on what the market can bear, but what they can scrape out of their tenants.

So, if the cost of doing business has gone up, is it still worth the risk of entering the retail market? Of course it is, as long as you do your due diligence.

Security in franchising This is where the benefits of entering the franchise industry come into play. If you know you want to own a corner bakery, why

FE ATUR E : r e ta i l fr anch isi ng “Despite the drop-in consumer confidence, people are still spending. Perhaps not as quickly or as easily as before – but they are still spending.”

not purchase a bakery franchise? Although it is romantic to envision the sign over your bakery having your own name on it, this would also be symbolic of the situation to follow: you would be on your own. You would have to develop your own business plan, secure funding, choose a site, negotiate your lease, supervise your fitout, formulate a marketing strategy, source your products, and then actually run the business. Are you tired yet?

Imagine if all of this work had been done for you already? This is the beauty of franchising; a great majority of the work is already sorted. Retail is romantic, in a sense, but it is also risky. As opposed to the service sector, or the work-from-home business options, in retail you have bigger costs and bigger risks. Franchising is a way to minimise these risks for you.

A support network Despite the drop-in consumer confidence, people are still spending. Perhaps not as quickly or as easily as before – but they are still spending. Being part of a franchise system that has weathered previous economic storms, and knowing that you are an integral part of a larger network, can give you the strength and knowledge to not only survive retail lulls, but continue to prosper.

Online spending Along with the physical site you eventually choose, hopefully with the help of your franchisor’s site selection strategy, you also now have an online storefront to consider.

According to the NAB Online Retail Sales Index, online retail spending in Australia currently stands at $23.28 billion to August 2017, which accounts for around 7.5 per cent of traditional retail spending. This figure is up 10.3 per cent from last year, and is surely poised to keep growing. Social Media is a powerful tool, and one that can not be ignored. The benefits of utilising the social media platform include reaching a large audience to develop and instill brand awareness, increasing the effectiveness of marketing plans and creating an interactive experience for your current and potential customers.

“Retail could be high end products or a giant department store, a two dollar shop or toy store. Either way, there are a lot of different retail franchises that are successful and well known throughout Australia and New Zealand.”

You as the driver

passionate about your product, committed to offering the best service to your customers, and willing to work hard to make your business successful.

In the end, the choice will be yours.

Whether you decide to go forth into the world of retail and whether you choose to do this as part of a franchise, it is ultimately up to you to define your success. You must be

Enjoy our retail feature in this issue of Business Franchise Australia and New Zealand, full of expert advice, insightful interviews and interesting profiles on many of the industry leaders in retail franchising!

Business Franchise Australia and New Zealand 41

FEATURE : r e tai l fr anchising

e x per t a dv i c e

Taking it off-line

This holiday season has once again seen more shoppers move towards online shopping. How can retailers win back customers and lure them into bricks and mortar stores? Ironically, the answer is digital.

42 Business Franchise Australia and New Zealand

Our lives are busier, and we are fitting more into our days than ever before. This is the case for both our working and personal lives.

Watching a television show or a movie from the couch was once relaxation, yet now, it is not uncommon for people to unwind with the latest Netflix offering plus their phone or tablet handy for social media updates, emails or browsing online. In fact, browsing online stores has become a way to relax for many people. According to research undertaken

by PayPal, 69 per cent of Gen Z shoppers (22 years of age and younger) shop online for relaxation – the same figure as watching television. And this trend is not just a matter of age, 35 per cent of Baby Boomers (those aged between 50 and 64 years of age) also enjoy online shopping as a way to unwind.

The cost on in-store retailers The change in behavior, combined with the attractiveness of online shopping, is causing significant headaches for the retail sector. The rapidness in the growth of online shopping cannot be overstated, or underestimated. Research undertaken

by Roy Morgan shows that over a twelvemonth period to March 2018, 9.46 million Australians aged 14 and over purchased something online in an average four-week period – an increase of 2.3 million people since 2014.

As more people purchase online, and combined with rising labour costs, rent and fit-out and merchandising costs, bricks and mortar retailers are struggling.

The lure of online shopping There is much to like about online shopping – some of which is hard for bricks and mortar stores to match.

Promotions such as free shipping and returns are highly attractive to online shoppers, not to mention a range of payment options including the popular AfterPay system, which spreads payments across several weeks, make online shopping highly desirable.

Furthermore, saving time in car parking and ease of comparing features and price online are factors that customers love.

We are also seeing a number of fascinating online tools becoming available to help people with their internet purchases. For example, Ray Ban offer a ‘virtual mirror’ online to allow customers to see how the sunglasses will suit their face.

And they are not alone in developing these sorts of augmented reality services to assist customers in their purchases. According to research undertaken by PayPal this year, five per cent of 404 online retailers surveyed had developed an interactive experience for customers, while a further 32 per cent said they were developing, or intending to develop an augmented reality experience.

These sorts of services also get the thumbs up from customers, with 51 per cent of mobile commerce shoppers wanting to see further augmented reality services. Customers enjoy having the ability to see the products in a different light or even share with friends via text message or messenger services.

There is no doubt this sort of app development can be expensive, it presents a strong opportunity for retailers to engage with online shoppers and those using mobile devices first.

A clever use of technology that interacts with customers that is fun and engaging can capture the attention of shoppers.

Social apps that allow people to engage with brands through photography, social media and gaming can encourage users to spend more time on a brand’s website or apps. Furthermore, specific and relevant information and a well-designed website can help give the shopper the information they need to simplify their buying journey.

Yet doubts remain…

Despite the convenience and range of services offered to online shoppers, many customers still have concerns about buying online.

Of 1012 customers surveyed by PayPal, 88 per cent were worried about buying the right size, 82 per cent were concerned with how the item would look on them at home and 45 per cent felt they were more likely to purchase after being able to try the item.

This offers significant opportunity for those operating in the retail space: people still like to see the product in person.

And the services appear to work. With 67 per cent of consumers browsing retail sites simply for fun with no intention of buying, yet an astounding 77 per cent made an impulse buy.

There are also other benefits to the in-store experience for customers including the immediacy of their purchase – they can buy a piece of clothing that day to wear to an event that night, or pick up a gift on their way to a party.

The PayPal survey identified that, while a strong demand from customers for augmented reality services, 25 per cent of businesses indicated they have no intention to develop such services.

The social experience of shopping with family and friends remains a strong drawcard, coupled with many shopping complexes offering extras such as cinemas and dining.

Business Franchise Australia and New Zealand 43

FE ATUR E : r e ta i l fr anch isi ng

“A clever use of technology that interacts with customers that is fun and engaging can capture the attention of shoppers.”

FE ATUR E : r e ta i l fr anch isi ng

e x pert advi c e

How to harness this While the trends seem to be encouraging a move towards online shopping, there is no reason that retailers can’t harness the power of mobile and digital shopping to encourage customers back to stores.

Once a customer may have looked in eight or nine physical stores for the perfect bag, they might now undertake their research on their phone or computer, narrowing it down to a couple of bags they want to look at in person based on price, quality, fabric, size or other factors.

The critical opportunity here is to engage the customer and ideally, move them in store as one of their choices.

One way to look at it is that online shopping is now window shopping. And instead of luring customers in-store with dramatic visual merchandising, it is now engaging them with apps, social media, website and games to then invite them into your store.

Successful online tools may engage audiences but then facilitate them to come into store.

It’s important to consider the benefits people may gain from online shopping but adding the benefits of in-store purchasing to make the bricks and mortar outlet a perfect combination.

For example, if time and convenience in online shopping is a factor for your clients, what online tools could support customers.

Online stock availability checkers or click and collect options could drive digital sales back in-store.

If customers like the ability to compare

products and prices to help them make their decisions, consider how tools that offer comparisons between your stock could support their decision making, or whether apps that allow customers to personalise goods and share with their friends via social media or messenger service for a second opinion could encourage customers to then visit your store to see the products in person.

Consider how best to promote other services offered in-store to encourage people back to the retail space? Personalisation of products, events, photo set ups for selfies, loyalty savings or exclusive sneak peeks at new stock may have a place in the mix and can be promoted via online apps or games.

Marketing promotions and competitions may still be useful as part of the mix, the reality is that they alone will not lure shoppers in, particularly with the range of online services now available. Using these online services to engage with customers can make a big difference in bringing them back to stores.

“The change in behavior, combined with the attractiveness of online shopping, is causing significant headaches for the retail sector. The rapidness in the growth of online shopping cannot be overstated, or underestimated.”

augmented reality, social media, website design, apps and games, the franchisor and franchisee can harness the power and benefits of online shopping to then guide shoppers through their buying experience in-store, while delivering convenience for the customer, superior product and value.

FC Business Solutions is an integrated consultancy focused exclusively on the franchise community. Our team of professionals has been providing specialised and expert services to franchises for many years.

The questions for franchising

The FC Business Solutions team are actively involved members of the Franchise Council of Australia regularly attending events, participating in committees and assisting in raising the profile of franchising in Australia.

The interaction of online and retail has been long-debated within the franchise sector for years. Are online sales the domain of the franchisor or franchisee? How is the revenue best split? How are territories allocated online vs in-store? These questions have never been completely answered by many brands, and continue to be problematic.

FC Business Solutions is a business which has proudly been certified in accordance with the internationally recognised ISO 9001: 2008 management system which focuses our business on delivering a consistent level of quality to our clients defined by regularly reviewed processes and procedures.

One way to address this issue is to look at the role of online vs in-store sales as a collaboration, not a competition. By using

hello@fcbs.com.au (03) 9533 0028 www.fcbs.com.au

44 Business Franchise Australia and New Zealand

Design and Innovation Leaders

Integrated Marketing

Patented Products

Build Yourself a Business With the market leaders by your side, establishing and managing your own Window Coverings business is a highly rewarding experience. Having partnered with small business in Australia for over 60 years, we understand the support behind the products are just as vital for business success. The Luxaflex Window Fashions alliance programs provide comprehensive marketing, training, development, networking, incentives, events and showroom fitouts to support our innovative high yield product range.

With opportunities available in numerous prime positions, the time to join our highly successful network of Luxaflex Window Fashions showrooms is now. Contact Damon Gardner on 02 9638 8000 or damon.gardner@hunterdouglas.com.au to discover the possibilities of the Luxaflex Window Fashions alliance programs.

Business Training & Support

Š Copyright 2018 Hunter Douglas Limited [ABN 98 009 675 709]. Ž Registered Trade Marks of Hunter Douglas Limited. C15499_01.2019

Business Franchise Australia and New Zealand 45

FE ATUR E : r e ta i l fr anch isi ng

pr o file : C lark R ubber

The Clark Rubber Commitment Clark Rubber franchisees benefit from a proven franchise system. Not only does Clark Rubber provide their franchisees with the knowledge and skills they need, but also ensure that franchisees have tangible business tools and the support needed to help them run their business.

The team at Clark Rubber are with you every step of the way, whether you are taking over an existing store, starting up a new location or territory. Clark Rubber provide support in the areas of site selection, lease negotiation, store development and in-store merchandising. Clark Rubber franchisees and their staff benefit from a comprehensive initial and ongoing training program.

Covering product knowledge, customer service, retail operational and compliance topics, training is delivered through a combination of individual, group and online programs. Clark Rubber Franchisees will also receive the IT infrastructure required to manage every aspect of their business including stock control, POS, financial reporting and benchmarking. Clark Rubber’s IT helpdesk is on hand to assist their franchisees with any system related issues, keeping the business operating smoothly.

Quality Products Backed by Great Marketing Clark Rubber franchisees enjoy the combined stock buying power that only comes from being part of a large national network. The dedicated merchandise team works closely with suppliers to build product ranges across their key categories of pools, foam and rubber. In addition, the team at Clark Rubber head office source products, develop promotional offers and negotiate terms and pricing. No matter which model a franchisee may choose, they will benefit from the knowledge and expertise relevant to their business. Marketing and advertising

are key to the ongoing success of any retail business.

At Clark Rubber, investments in brand development and national retail advertising campaigns are paramount across all relevant and current channels to ensure that they are continuing to drive customers and business to their franchisees. Head office also work closely with all Clark Rubber franchisees to develop and execute effective local area marketing at a local store level.

Clark Rubber Pool Care Service Territories Included as part of the Clark Rubber franchise group is the opportunity to own your own mobile pool service territory. With the ability to market and service your own area, the flexibility to work from home, and the hours that suit you and your customers, this low-entry business model is a great way to run your own business with the support of a national brand and franchise network.

At Clark Rubber, their commitment to customer service and providing their customers with solutions helps them to differentiate themselves in the market.

Coupled with Clark Rubber’s extensive product range, you have the opportunity to build a strong business and retail destination within your local market.

The uniqueness of Clark Rubber stores with a product range across Pools, foam and rubber, provides a strong market position

46 Business Franchise Australia and New Zealand

supported by a well-recognised and reputable brand. Customer service is a key focus – and is a differentiator of Clark Rubber to many of its competitors. With a strong vision for growth now and in the future, including three franchise models in Clark Rubber store, Clark Pool & Spa shop and Clark Pool Care franchise territory, you can choose the opportunity that suits where you want to go.

Join an Award Winning Team with Clark Rubber Clark Rubber is a recognised Australian Retailer and ‘house hold name’ brand.

Having an award winning national franchise network of 60 stores throughout Australia, with two franchise models plus a mobile pool service territory franchise, there are many great opportunities and reasons to join Clark Rubber. In previous years, Clark Rubber has been recognised as the Franchise Council of Australia’s Franchisor of the year, and in 2003 Clark Rubber CEO Chris Malcolm was inducted into the Franchise Council of Australia’s ‘Hall of Fame’, making Clark Rubber a multiple award-winning business!

For more information and to enquire about current opportunities, contact Dirk Heinert on: 03 8727 9999 dirk.heinert@clarkrubber.com.au www.clarkrubber.com.au

BUILD YOUR FUTURE WITH A RETAIL ICON

As one of Australia’s iconic retail brands, with a proud history over the past 70 years, we now have 60 stores nationally. Our award winning franchise model commenced in 1995 and offers a vibrant product range providing you a great platform to start your own successful business in the pool and spa industry.

Our industry knowledge will help you build a strong business, becoming the local pool specialist in your territory and helping you work in a lifestyle environment.

Our franchisees benefit from: •

Our business development and support • teams will assist you in building your successful • business. We have three exciting franchise models where we are looking for new, motivated • and business orientated franchisees for: • • Clark Rubber Retail Stores • Starting from $420,000 plus GST • •

Clark Pool & Spa Shops Starting from $147,500 plus GST Clark Rubber Pool Care Service Territories Starting from $49,500 plus GST

Unparalleled national and local support Proven marketing and business strategies Group buying power No franchise renewal fees Turnkey development and set up Retail brand celebrating 70 years

•

Multi Award winning franchise system

•

Unsurpassed initial training and ongoing support

If you would like to hear more about franchise opportunities in your area, please contact Dirk Heinert for a confidential discussion on (03) 8727 9999 office or mobile 0400 922 493 or dirk.heinert@clarkrubber.com.au

clarkrubber.com.au

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e x pert advi c e

Retailers must embrace customer feedback to deliver a superior customer experience

In this highly-connected age, customers are quick to share their experiences with a broad network of people.

There have been numerous recent examples where negative experiences gain a wide reach through social media platforms. People value the opinions of their peers and if they hear a brand has failed to provide a positive customer experience, they’re more likely to vote with their feet, taking their business elsewhere.

While this can be a worry for businesses, the benefits of social media fall both ways.

Customers can share their experiences, good and bad, but retailers can also listen to what their customers are saying. In theory, this should make it simple to deliver an experience that delights customers and has them lining up not only to buy from the company again but also to recommend it to their friends.

Customer experience (CX) is therefore a key differentiator for brands in today’s competitive and globally connected marketplace. To deliver superior CX, offline retailers must collect, analyse, and act on real-time feedback from customers about their experiences and expectations, as well as their future intentions to recommend or purchase. However, according to new Qualtrics research, a significant proportion of shoppers in Australia and New Zealand believe their feedback never reaches someone who can make a difference.

Qualtrics conducted a multinational survey of 1,700 in-store shoppers, including respondents from Australia and New Zealand, to understand customer services concerns across the retail industry. The insights from the research showed that customers believe their feedback is ignored 45 per cent of the time regardless of whether complaints are made via social media, surveys, or directly to staff. Despite this, shoppers still have high expectations for how quickly retailers should respond to questions

48 Business Franchise Australia and New Zealand

and complaints, with 42 per cent of shoppers expecting a response to their social media post on the day of posting. The majority of customers expect a response within a few days (82 per cent).

The research showed the impact of negative experiences on new customer acquisition, finding that for 59 per cent of customers their expectations about retailers are set through social media or referrals from family and friends. Further, 58 per cent of shoppers blame a retailer if one of their employees provides unfriendly or unhelpful service.

That heavy reliance on previous experiences demonstrates that it’s critical for retailers to deliver a consistent, seamless experience every time and more importantly, act on the feedback they receive. Those that fail to do so are missing out on a huge opportunity to grow their business. Worse, they can contribute to a narrative in which their business is portrayed as the villain, perpetuating a perception that could snowball into further negativity for the

Vicky Katsabaris | Head of Customer Experience Growth and Strategy, Principal Consultant | Qualtrics

unhappy customers into loyal ones. In this instance, responding in the moment is extremely valuable. retailer, affecting its ability to attract new customers.

Most companies offer a platform for feedback, whether it’s a simple Facebook page or more formal feedback mechanisms.

However, too many companies gather this feedback then fail to act on it. Retailers who do this may as well stop asking for feedback altogether. The damage that can be done by failing to act on feedback can be significant, and can be worse than never asking for feedback at all. They risk their customers developing a more intensely negative opinion of the brand.

This is because people want to be heard.

When a company says it’s listening and they act on customer feedback, they demonstrate that they care. Their customers are more likely to engage with that company if they believe their voice has been heard and their suggestions considered. Even if the customer’s initial experience was negative, by demonstrating that the business is eager to rectify the situation, retailers can turn

Retailers also need to know which feedback to respond to. Retailers who have sophisticated CX management platforms are able to understand what truly matters for customers, and what doesn’t. To be successful, retailers must gain an insight into overall customer behaviour, not just the opinions of individuals. They also need to learn how to identify and attract key demographics to their store. By implementing feedback channels, retailers can begin to build a more comprehensive picture of what customers like and dislike, and what drives certain behaviours.

listening posts at the right moments to learn about customer needs in real-time – not annually or in an ad-hoc way. Retailers need to constantly review the customer experience they’re delivering. Working with feedback in real time is an absolute requirement for retailers that want to close the customer experience gap. Doing this across all the key customer touchpoints and moments that matter and then providing their people with timely access to this feedback will deliver the greatest benefits.

Responding to customer feedback at scale is also important because not every customer takes the time to provide feedback.

By aggregating customer feedback and understanding what matters, especially for high value customers, you’re able to make changes crucial for business growth. By focusing on customer needs, retailers can identify the right areas for improvement as well as potential areas for business growth and further success.

Vicky Katsabaris is a principal consultant and customer experience subject matter expert at Qualtrics. She provides expert guidance to organisations implementing customer experience programs. Prior to joining Qualtrics, Vicky spent 3 years as the General Manager of Customer Advocacy strategy at Telstra, leading the team responsible for developing Telstra’s corporate strategy for improving customer advocacy. Prior to Telstra, Vicky was the Director of Customer Experience at VMware where she lead the implementation of the CX program across Asia Pacific, Japan.

Doing this successfully means installing

www.qualtrics.com

Business Franchise Australia and New Zealand 49

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“Retailers also need to know which feedback to respond to. Retailers who have sophisticated CX management platforms are able to understand what truly matters for customers, and what doesn’t.”

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pr o file : Carpet Call and Solomons Flooring

Opportunities at

Carpet Call and Solomons Flooring!

The Carpet Call and Solomons Flooring group has been a part of the Australian flooring industry for decades. Solomons started in Adelaide back in 1890, with their first store on Gouger Street and Carpet Call opened their first store in Brisbane in Alderley in 1975.

Since then, both brands have been installing high quality flooring throughout Australia.

Now there are over 120 retail and franchised stores nationally.

The group have over 55 franchised stores in both brands across Australia and are well represented in all capital cities and many regional towns and cities. There are fantastic opportunities for growth through Queensland and New South Wales in particular, as well as small pockets of areas in the other states.

The beauty of the model is that it works extremely well as a stand-alone flooring business with a focus on carpet, vinyl, timber and laminates - but it also can be bolted onto an existing business, like tile shops, blinds and shutters retailers or even home furnishings businesses. The Modular program means that with as little as 40m2, existing retailers can add a Carpet Call or Solomons Flooring franchise into their existing business. The great benefit of this is low set up costs as well as little to no increase in overheads like wages, electricity, security etc.

Over the years, tens of millions of dollars have been spent establishing the Solomons and Carpet Call brand names. This symbolises experience, trust and consumer confidence, with an undeniable reputation for quality, range and genuine value. This position of strength maximises benefit for your investment.

NATIONAL ADVERTISING Advertising has always played a pivotal role in the group’s success. The consistency and professionalism of the high impact advertising campaigns makes your selling job that much easier. National advertising expenditure is constantly increasing, due to the growth in existing store sales as well as new store openings across Australia. Carpet Call and Solomons Flooring utilise their advertising spend wisely, with a combination of strategically placed national TV campaigns, coupled together with full colour national distributed catalogues, and online marketing strategies.

FRANCHISEES ARE NOT COMMITTED TO LARGE STOCK HOLDINGS The Carpet Call Group maintains a comprehensive stock holding of carpet, timber, laminate and vinyl in the industry.

Carpet is cut and distributed to the franchisee on an as required basis. This is all handled by a computerised stock enquiry and order processing system. You are relieved of the huge financial burden of carrying stock. This single factor has been a major contributor to past failures in the floorcoverings industry. Your working capital is not tied up in expensive stock and there are no short ends or wastage for you to dispose of.

50 Business Franchise Australia and New Zealand

LOW-COST ENTRY GETS YOU OFF TO A GOOD START Compared to other franchise operations, your initial entry cost into the Solomons or Carpet Call Franchise System is extremely low. This allows you to use your valuable capital for all those important aspects of the business – positive cash flow, adequate working capital, store set up and signage, local promotion and advertising and so on. For as little as $80,000 you can open a brand-new store and hit the ground running on the path to financial independence.

SUPPORT IS ALWAYS THERE Each state has a dedicated State Franchise Manager who will assist you in the opening of your business, initial and ongoing training and support, marketing planning and to answer any questions you have throughout your time as a franchisee. On top of this, the network is backed by some of the most trusted names in flooring. Companies like Victoria Carpets, Feltex, Godfrey Hirst and Karndean are all available to offer support and training whenever you need it.

For a confidential discussion, please contact Jack McClane, National Franchise Manager on 0402791187 to see if owning a Solomons Flooring or Carpet Call store is right for you! jack.mcclane@floorstores.com.au

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e x pert advi c e

Driving Sales With Social Media:

An Expert’s Guide by the Head of Vistaprint Australia, Melissa Haywood With the rise of social media over the last decade, information has become easier to access and disseminate than ever before. In creating a data-abundant and hyper-connected world, these online communities have become well-known tools to bring brands and consumers together in the mere touch of a button.

Put simply, social media sites and applications offer business owners greater marketing opportunities. Social media allows brands to build and understand their market in a more intimate and efficient way than through traditional media’s one-way channels of communication.

when she graduated from university into a career in Direct Marketing. She built her career first by managing databases and direct mail, followed by an expansion into a Marketing Director role that also managed email, website, display marketing, search marketing, and social media.

Head of Vistaprint Australia, Melissa Haywood, believes that social media enables retailers to connect meaningfully with consumers and ultimately drive sales for their business. “When equipped correctly, social media is an important and almost essential way for small businesses to stand out from competitors,” Melissa says.

“Platforms like Facebook, Pinterest, and Twitter should be at the forefront of retailer’s minds in effectively reaching consumers with promotions to increase their bottom line.”

Today, Melissa applies her skills to the exciting world of customised products for Vistaprint, empowering everyday Australians to grow their own businesses successfully, no matter the size. “Throughout 20 years of providing top-quality printed products at affordable prices, Vistaprint has empowered millions of business owners around the world to market themselves professionally,” Melissa says.

Melissa’s career began almost 20 years ago

52 Business Franchise Australia and New Zealand

“From day one, Vistaprint has been committed to helping Australians build their business to be stronger than ever.

Melissa Haywood | Head of Vista Print Australia

“Social media is an opportunity for you to extend your relationship with the customers who have helped build you and your business up along the way.”

Our company vision continually inspires me to consider innovative solutions to connecting brands and consumers, whether it be through Vistaprint’s premium variety of business cards or cutting edge digital marketing tools.”

To give you the shortcut to success, Melissa has shared her expert tips promoting sales for your business with social media. Whether you are already familiar with using social media or have had no experience, Melissa says maiximising social media as a marketing tool comes down to five key rules:

1. Be where your audience is Why spend precious time and energy on platforms that your key demographic are not engaging with? Look at your target demographic and figure out where they’re most active. If your business is B2B based,

then LinkedIn is where you should invest time and energy. However, Instagram is perfect for those targeting B2C, especially a younger demographic.

From here, you can build you audience by using relevant keywoods to find the right social networks and friend, follow, and connect with individuals with profiles related to your industry. Remember, no matter how suitable your platform or convincing your message is, without a following, your efforts will fall on deaf ears.

2. Show off user generated content Social media is an opportunity for you to extend your relationship with the customers who have helped build you and your business up along the way. Whether it be reposting positive testimonies on your social media pages, or recognising their posts and tweets: like, follow, and share their messages- this acknowledgement will be recognised by your

existing customers. These simple interactions are more authentic and effective than any forced advertising, as you are letting actual customers do the selling and convincing for you.

By engaging with market rather than writing at them with a message, you will create opportunities for conversation about your product or service to naturally develop. Social media should be used as a listening tool to increase the prospects that consumers will consider and remember your call-to-action among the cluttered market of brands vying for attention. Part of creating a community around your business is engaging with real people posting about your product. You can build this content from actual customers by creating a branded hashtag and incentivising its use through giveaways. Another strategy to generate interest and showcase real people using your product is by creating a Facebook group related to your product or service.

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“Why spend precious time and energy on platforms that your key demographic are not engaging with?

Look at your target demographic and figure out where they’re most active.”

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e x pert advi c e

“Arguably the most important way to promote sales is through eye traffic.

As almost every business’ sales campaigns are multi-dimensional, it’s important to utilise every available resource- and increasingly, social media- to share promotions, deals and sales with your customer base.”

3. Boost eye traffic through ‘influencers’ Arguably the most important way to promote sales is through eye traffic. As almost every business’ sales campaigns are multi-dimensional, it’s important to utilise every available resource- and increasingly, social media- to share promotions, deals and sales with your customer base. The more people who know about your campaign, the more sales you will close.

A ‘go-to’ guide to social media marketing would not be complete without an influencer engagement strategy. The hype around profiles with audiences of thousands is exactly that- the mass of trusting followers that influencers reach with their daily posts.

Identifying and negotiating collaberations with key influencers among your target market has the power to drive sales- so

coordinate discount codes, product reviews, how-to-content, and product features with these thought leaders to promote your brand. Influencers are sources of increasingly creative content which you should leverage to tell a unique and engaging story about your brand.

4. Consistency is make or break You must ensure to use the same handle for all of your social media platforms, as branding plays a significant impact on your growth across social media. If you are not easily accessible across platforms, it makes it near impossible for valued and dedicated customers to show their support by liking, following and reposting.

Creating a content calendar- that is, planning your social media posts- will also assist you in seeing consistent enagement

from your audience. Preplanning your strategy has the multibenefit of making it clear for you to determine which activities to assign to each of your team members.

5. Always link back to the product To make it easier for your customers to purchase your products, always ensure you have created click-through from all social platforms straight to your website. If it’s too complicated in any way, a potential customer will turn their attention elsewhere. Take advantage of social media features designed for business users through streamlined tools like Instagram’s product tagging and by including links in your bios and within your content.

Melissa Haywood’s career began almost 20 years ago when she graduated from university into a career in Direct Marketing. Today, as the Head of Vistaprint Australia, Melissa applies her skills to the exciting world of customised products, empowering everyday Australians to grow their own businesses successfully, no matter the size.

To find out more, email eupublicrelations@vistaprint.com

54 Business Franchise Australia and New Zealand

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Australia’s Superior Retail Franchise BoConcept are looking for franchisees with a passion for design and style with a willingness to lead, delegate and motivate.

BoConcept are planning to open at least seven more stores in Australia within the next four to five years, and are looking for franchise partners who have the synergy and resources to be a part of this established and proven franchise model.

Opening Up to Australia Bill Zheng opened his first BoConcept store in 2012, and has since opened a second Sydney store. “My advice to new franchisees is this: if you work hard and follow the system, the financial rewards will follow.

When you can achieve the financial results you are looking for, with the support of an international, established business behind you, why wouldn’t you join?” says Bill.

Africa. As BoConcept begins expanding within Australia, Australian consumers will continue to have access to be best quality Scandinavian design right on their doorstep. On top of the consumer benefits, entrepreneurs and business savvy Australians also have the exciting opportunity to join this expanding brand as an Australian franchise partner.

and expertise, BoConcept is ready help all of their customers create modern and sophisticated homes and living spaces. The organisation offers an array of benefits for their franchise partners, making BoConcept the superior choice in retail franchises.

BoConcept is a global retail franchise, with 265 stores in 65 countries, spreading across Europe, North America, the Asia Pacific region, the Middle East and Northern

The team at BoConcept have a passion for producing impeccably crafted pieces for the home, with Scandinavian design principals at its core. As an organisation with style

When BoConcept’s Sydney franchise partner, Bill Zheng, first opened his store, he worked closely with Head Office to plan and begin the store opening process.

56 Business Franchise Australia and New Zealand

Support of a Global Brand

In conjunction with the marketing team, the dedicated Store Opening team at BoConcept are responsible for supporting franchisees in a wide range of aspects when opening a new BoConcept store. This varies from the Store Designers designing and completing the store layout in a range of sizes to the Opening Support team who assists the franchisee in warehouse set up, store routines and more.

The BoConcept IT system supports the processes in the stores by making administration, reporting and performance evaluation easier to access and work with.

This ensures that Bill no longer needs spends hours each week inputting codes into a generic stock control system. A business intelligence system has been added to enable the use of sales statistics and more from the IT system database. In addition to this, supply chain management and benchmarking are streamlined throughout the chain with logistics and performance improvements as a result.

A Superior Franchise Option By collaborating with world renowned designers, BoConcept continuously cultivates brand credibility and integrity, a huge benefit for their many successful franchise partners. BoConcept as a brand is globally renowned for its style, quality and fair price. Becoming a BoConcept franchisee means joining the ranks of this successful, stylish and profitable organisation. With 15,000,000 website visitors and 4,000,000 in-store visitors per year, you know you are partnering with a brand and company you

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An experienced marketing team supports and advises franchisees in all communication aspects as well as provides all the international, national and local materials required to efficiently generate in-store traffic, including catalogues, flyers, in-store materials, advertisements, direct mails, social media content, press releases and much more.

“An experienced marketing team supports and advises franchisees in all communication aspects as well as provides all the international, national and local materials required to efficiently generate in-store traffic, including catalogues, flyers, in-store materials, advertisements, direct mails, social media content, press releases and much more.”

can take pride in and find success with. With premium quality and design at reasonable prices, BoConcept franchisees are able to offer their customers affordable luxury.

By focusing on functional and customisable furniture - for outdoor and for every room in the home - BoConcept has created an approachable, fashionable, trusted and customer focused brand. On top of this customer focus, BoConcept is passionate about facilitating the best possible experience for its franchisees. Becoming a BoConcept franchisee means joining a team of equals, with the support of a solid franchisor.

BoConcept is an award winning company, with a proven, profitable business model.

Franchisees are provided with world class support, training and programs to ensure continued success for every BoConcept franchisee.

BoConcept have developed a superior model for generating quick cash flow, ideal for their franchise partners. These numerous franchisee benefits, combined with the superior customer experience offered by BoConcept mean you can design your perfect lifestyle with a BoConcept franchise.

The BoConcept Customer Customising and designing furniture and accessories according to the needs – and dreams – of their customers, BoConcept appeals to the urban-minded. Customers can choose their own design, size, shape, colour and material of an expansive range, ensuring a coordinated look where design, colours and materials always match.

Simplicity and functionality are at the core of BoConcept’s values, and the modern and original furniture designs are specifically designed for the urban lifestyle.

As Australian cities expand up, rather than out, this lifestyle is only becoming more common. Adaptable to fit big or small spaces, clients can customise their furniture to adapt to their life and living spaces, helping them to get the most of their available space.

BoConcept provides their franchisees with all the tools they need to offer their customers the best of the best. Their interior design service with complimentary systems and furniture customisation options make it easy for franchise owners to offer additional services to their local customers - and that’s why BoConcept is loved by its customers and franchise partners across the world.

Limitless Potential There is so much potential within the Australian market to grow, develop and succeed with BoConcept, with franchise opportunities available for the right people across the country. The interest and capacity to have one or more BoConcept stores is greatly encouraged.

For more information about joining a profitable business with a quick generating cash flow model, contact Carsten Brink today on: (+61) 474 278 485 franchise@boconcept.com www.boconcept.com/franchise

Business Franchise Australia and New Zealand 57

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e x pert advi c e

How do you recruit and select

the best sales people?

At this busy time of year, many companies will be looking to hire new salespeople. Get the selection wrong and it will cost you somewhere between half a year and a full year of their annual target, plus reputation damage. Get it right and you’ll have delighted customers and a growth asset for your business.

Most companies rely on unstructured interviews and proprietary psychometric tests for sales recruiting. And the results are abysmal. You must use a realistic simulation to assess sales candidates.

Multiple studies confirm that work sample and ability tests are the most valid and reliable selection tools across a wide range of employment categories. Unstructured interviews rank way down the list of valid techniques. The issue for sales recruitment is; how to create an efficient repeatable work sample test for a role that it is mostly about conversation skill?

Enter the sales simulation. Prepare a scenario for a common selling situation — a page of text or two or three PowerPoint slides is sufficient to describe the scenario for the candidate. Hidden from the candidate will be a list of issues, objectives and opportunities they must probe for. Give the candidates a day or two to prepare.

One person in your company (or a consultant) is designated to play the role of ‘customer’. Its best if that person has not been influenced by the candidate’s cvs. The simulation should be performed over a recorded video conference so that the interview can be easily shared with the selection committee.

In the simulation, the ‘customer’ will attempt to play their role in standard way for each candidate; answering all candidate questions without being difficult (there’s no need to add additional stress). The simulated sales conversation typically lasts between 10 and 25 minutes. After the simulation, you should ask a couple of specific followup questions and get the candidate to write a follow-up email, if writing skills are important.

Carefully review the simulation video and score against these categories: • Rapport building. How did the candidate establish rapport at the beginning of the meeting? Did they share personal stories?

• Situation understanding. How did the candidate engage the customer to understand their situation? You are looking for diagnostic questions and empathetic listening • Probing for objectives and issues.

Was the salesperson able to uncover the motivations of the buyer? What does the buyer want and what do they not want?

• Consequences. What will it mean for the buyer to achieve their objectives? Can the candidate discover both business and personal consequences for a purchase?

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FE ATUR E : r e ta i l fr anch isi ng • Constraints. Was the candidate able to uncover any constraints that need to be taken into account in this buying situation?

“Multiple studies confirm that work sample and ability tests are the most valid and reliable selection tools across a wide range of employment categories.”

• Proposing and asking. How did the candidate ask for the business or propose a suitable next step? You are listening for specific phrasing.

• Planning and preparation. How well did the candidate research your company and prepare for the simulated meeting?

I’ve performed hundreds of candidate simulations across multiple industries and it’s my experience that fewer than 10% navigate through all of these aspects of a sales conversation. It’s an exceptional candidate that uncovers the consequences for the buyer and their constraints and very few know how to ask for the business.

Follow-up questions No doubt each candidate will claim past sales successes but how do you know if they’re telling the truth? You can assess storytelling skills and their honesty by asking: “Tell me about the most important sale that you have made” You’re listening and scoring for • Is it a story? The best salespeople tell stories to teach influence and persuade.

Mike Adams | Author

Be wary of candidates that fail to respond with a narrative (a sequence of events).

• Is the buyer described in the salesperson’s story? Good salespeople solve problems for their buyers. Be suspicious if the story is just about the ‘heroic’ salesperson.

• Is it believable? True stories of sales success include references to good and bad fortune and vulnerabilities. Watch their eyes as they recall the events of the sale.

not just for the new skill but also for the learning process.

• A story that reveals their motivation for learning.

If you follow a structured selection process that includes a realistic simulation and tests for storytelling skill you’ll recognise and select the best salespeople!

You’re listening for

Mike Adams is a business storytelling specialist and author of Seven Stories Every Salesperson Must Tell. Mike has managed sales teams in the UK, Russia and throughout Asia for international corporations such as Schlumberger, Siemens, Nokia and Halliburton and has sold over a billion dollars of products and services over his career. Since 2014, Mike’s storytelling consulting practice has been helping sales teams find and tell their best stories.

• Immediate enthusiasm. Enthusiasm

Find out more at www.gifocus.com.au

Finally, you need to assess the candidate’s ability to learn new skills. They’ll need to learn about your company, customers and products and services. And business is changing so rapidly that continuous learning will be ongoing requirement.

“Tell me about the last new skill you acquired?”

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pr o file : the lott

When Australia dreams, we all win!

Are you looking to grow your business by selling a product Australians know and love? If so, franchising with the Lott – Australia’s Official Lotteries could be for you!

The Lott offers Australia’s official lottery games from NSW Lotteries, Golden Casket, Tatts and SA Lotteries. This includes games like Saturday Lotto, Monday & Wednesday Lotto, Oz Lotto, Powerball and Instant Scratch-Its. Investing in a the Lott franchise gives you the potential to increase revenue and join a strong Australian retail network that has been operating for more than a century.

A franchise from the Lott is the perfect complement to a range of small businesses; including convenience stores, convenience supermarkets, pharmacies, tobacconists, newsagencies and more.

General Manager Lotteries Retail Antony Moore said investing in a franchise with the Lott as a companion to your business could be the perfect way to drive additional traffic into your store.

“Adding the Lott products to your business attracts additional customers to your existing business, increases store visitation, and can

potentially add to your customers’ basket size,” he explained.

“With each product sold, you will receive a commission and importantly ongoing operational, marketing and retail support to make the most out of your lotteries business.

“Australia’s official lotteries have been operating for more than a century and the Lott is the trusted mark in the Australian lottery landscape. We continue to invest in in-store customer experiences, innovative marketing campaigns, and new retail image technology so our franchisees can reap the rewards.”

One long-standing franchisee with the Lott is Bishops News Nextra in Goondiwindi.

This outlet has been operating a the Lott

by Golden Casket franchise for 50 years and is testament to the ongoing support the Lott provides franchisees as their businesses change and grow.

Bishops News Nextra owner Jack Bishop said his grandfather, Victorian watchmaker Archie Bishop, first opened the store in 1911 to offer locals their daily dose of news and keep them up to date on the world’s current affairs.

“Since then, four generations of the Bishop family have worked in store and it has seen many changes to meet the changing needs of our community,” he said.

“You can’t beat the thrill of helping one of your customers become a lottery winner!

“After all these years, people always ask me how to win the big one. My advice has never changed – you’ve got to be in it to win it.

You can’t get crook at the fella that wins. If you’ve got a ticket in your hand, you’re in with a chance.”

Mr Bishop shared how much change he had seen over the years to the lottery business as well as changes in his store.

“Importantly, we’ve been prepared to change with the times and that’s how we’ve prospered,” he said.

“Lotteries has been a big part of our business for more than a century and long may it continue!

“We diversified a few years ago and started offering personalised engraving and gifts, which is the perfect accompaniment to the Lott and the newsagency side of the business. People often stop in, pick up a gift, grab a card and include an Instant ScratchIts or lottery ticket too.”

Incorporating the Lott in your outlet could be more attainable than you think. If you would like to find out more information, please refer to the website thelott.com/ franchisee or email franchiseenquiries@ thelott.com.

For more information please contact: Bronwyn Spencer the Lott, Senior Public Relations Executive 0457 731 671 franchiseenquiries@thelott.com

60 Business Franchise Australia and New Zealand

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When Australia dreams, we all win!

Why join us at the Lott?

The Lott* offers Australia’s official lottery games which Australians trust and love!

Each year Australia’s Official Lotteries make dreams come true. With the help of our retailers, Australia’s Official government-regulated Lotteries play an important role in helping to support Australian communities with over $1.1 billion^ available for hospitals, schools and sporting groups. ^ State Lottery Taxes FY18 Australia-Wide (ex.WA).

We are Australia’s largest franchise network with almost 4,000 franchisees, operating across all of Australia, except for WA.

*The Lott represents Australia’s Official Lotteries which are sold by licensed entities: Tattersall’s Sweeps Pty Ltd, Tatts NT Lotteries Pty Ltd, New South Wales Lotteries Corporation Pty Ltd, Golden Casket Lotteries Corporation Ltd, and Tatts Lotteries SA Pty Ltd.

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