Managers' behaviour affects bottom line

Jennifer Newman & Darry Grigg, Vancouver Sun 

Managers' behaviour affects bottom line

Managers in small enterprises play a key role in setting the tone for customer satisfaction. And customer satisfaction relates directly to profitability, research says.

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Happy managers reap big rewards in small stores. Managers in small enterprises play a key role in setting the tone for customer satisfaction. And customer satisfaction relates directly to profitability, research says.

Researchers Richard Netemeyer, James Maxham III at the University of Virginia, and Donald Lichtenstein at the University of Colorado at Boulder studied 306 store managers responsible for 1,615 employees and 57,656 customers in a single retail chain over a two-year period. They measured customer-spending growth to determine profitability. They noted that high-performing, satisfied managers influenced staff to perform optimally and remain satisfied on the job. As well, customers tended to be more satisfied and spend more when engaged, satisfied employees interacted with them.

How do managers set the right tone? There are two ways.

The first is mimicry. We tend to imitate a person we're conversing with. We spontaneously mirror each other's facial expressions and non-verbal gestures. The more a manager sends positive emotional signals to others, the more likely they are to adopt the same feeling. Smiles, physical openness, leaning forward and the like are contagious in a retail setting. Staff and customers will imitate these cues.

Secondly, emotional contagion occurs when we look to others for cues on how to behave. If someone engages us positively and in a friendly fashion, we tend to follow suit. When we perceive others as expressing genuine feelings, we tend to adopt those feelings.

The researchers suggest tips for managers who want to increase sales:

Don't stay in your office. Get out on the sales floor. Serve customers, so that staff see your passion for the store and concern for the customer. Staff will adopt your attitude, practices and concern if you demonstrate it consistently. Be genuine, serve customers and interact positively frequently.

Your behaviour affects the store image. Consumers don't just buy because they are satisfied; they buy because they believe in the quality of the merchandise. Customers are more likely to spend time in the store, consider the items displayed as worth buying, if the image you convey denotes a high standard. Attentiveness, friendliness, care displaying and handling the merchandise all contribute to the sense that the store cares.

Create a positive environment. This means valuing employee feedback and investing in employees. Ask them about their training needs. Elicit employee feedback about the store, your management and improvements.

Retail success depends on in-store managers being infectious in their ability to model energetic, friendly, knowledgeable and caring customer service to staff. Staff, in turn, mirror these positive practices and help drive sales and keep customers coming back.

Dr. Jennifer Newman and Dr. Darryl Grigg are registered psychologists and directors of Newman & Grigg Psychological and Consulting Services Ltd. in Vancouver. sunmail@newmangrigg.com

