ICSC RECon convention common area

This year, the mood, pace and tone of RECon (the International Council of Shopping Centers annual Retail Convention in Las Vegas) is palpably different. Whatever the economists say, the winds have shifted in the development and tenanting side of retail. A few observations from days 1 and 2 of the show:

People are dressed for success. Gone is the recent trend of more casual wear… far fewer attendees this year are in khakis and a golf shirt. And jeans? Unless you’re from Texas and wearing them with the requisite boots, sport coat and belt… no. In the easy days, a few years ago, the mood was different. There would always be more deals; there was plenty of retail to go around. Today. everyone seems to understand that while retailers are beginning to plan new stores again, fewer deals to do overall means you better work what you’re selling. And look like the recession didn’t kill your business and wreck your balance sheet.

Shows cost money and time is money. People are focused this year. Tight schedules, business-like attitudes and less chit-chat seem to be the rule. The economy has forced developers, retailers, brokers and cities to carefully consider the cost of attending the convention and how best to maximize the return on the investment. For instance, our day yesterday started with a coffee meeting at 8:30 and ended after a dinner with clients that wrapped at 9:30. No breaks in between… I finished the night in the same outfit I wore to the first meeting of the day. Lunch was a free fruit and walnut salad from the McDonald’s booth and a free hot dog from Thor Equities booth (thanks to you both!) eaten leaning against a pillar on the show floor.

Cautious optimism is the new normal. Developers we’ve talked with about sites in our client cities (the “Marketing Places, Spaces… part of our company) have been universally cautiously optimistic. We’re hearing, “[retailers] are beginning to plan new stores and think about the future, but everything matters on every site.” In other words, with so many sites out there and fewer stores to take them, only the sites that truly suit the purpose, generate return, have the access and amenities desired and where the development process is swift and simple are making the cut. Many retailers who in the past would build 50 stores a year and now looking for the 5 to 10 best sites for 2012 sites.

I think it’s been one of the most productive ICSC shows I’ve attended and I am looking forward to the hard work after the show of changing interest into announcements. I’m cautiously optimistic that the next year in retail is going to be a good one.

Some of you know that about half of my consulting-side work is in economic development for cities and site owners. Mostly retail, but we also help cities attract new residential and industrial/office development as well. It’s work I love because if I do my job well, a corner of the world is a better place when I’m through… the new businesses increase the tax base, allow cities to provide additional services for residents, provide access to goods and services within a community (less driving, less sprawl) and provide employment. We also work with client communities to facilitate public involvement, manage public perceptions and effectively use public relations to promote positive developments.

For retail attraction, the biggest show of the year is the International Council of Shopping Centers (ICSC) annual convention in Las Vegas, a show we attend every year. I spend most of April and May preparing for the show, updating marketing pieces, research, white papers, graphics, etc., etc., so we’re armed and ready. Typically, several of our clients attend the show with us, so we’re “on” from the moment we hit the airport until the moment we actually get into our car to drive home from the same airport 4 days later. It is the most exhausting experience next to childbirth. And it usually takes me fewer days to recover from childbirth.

The show is 3 hard days of pressurized meeting, rounds of receptions and engagements, and an INSANE amount of walking. Needless to say, I don’t wear my high heels. We hope to come back with new client leads for our services, new interest in sites in our client communities, and closed deals on other parcels or lots already in process. Even in this hyper-connected world of ours… the hard work in this arena still gets done face-to-face. Priceless connections are made, relationships renewed and business furthered. While the trip is a major expense and emotional drain, it is the single most important and effective event in our year.

Why am I telling you all this? I’m begging your forgiveness, in advance, for the break I’ll be taking this week from blogging. I probably won’t be coherent until sometime next week after returning late Wednesday from the show. And I hate to post incoherent ramblings on the blog. ;P In the meantime… if you all have something to say, just go on and post in the comments. I’m looking forward to hearing your trade show experiences and (shareable) Vegas experiences.

Planning for Recovery?

Some economic indicators are finally showing movement in the positive direction. As I posted last week, I am seeing this in my business, as well. I don’t typically see it until clients (and potential clients) begin to see it in their businesses and respond by thinking about growth, expansion, driving new business, etc. I’m not an economist (and aren’t we all glad for that!) but I can definitively say the businesses I’m dealing with on a daily basis have new energy and purpose in their planning.

And that’s all good, right? Yes… unless you’re a business who spent the past two years curled up in a figurative fetal position, thinking only of short-term survival. If that’s the case, your recovery process is going to be much harder. Here are some issues I’m seeing:

1. Shrunken Customer Base > While most people engaged in less discretionary spending during the depression, they didn’t stop thinking about what they’d like to buy, have, or do during that time. But those businesses who stopped reminding their hiatus customers of their ability to fulfill those desires have lost significant top-of-mind ground as people begin to slowly open up their wallets again.

2. Reduced Ability to Serve > Layoffs and reductions have been part of the fabric of business for the past 18 months. Companies who’ve cut too deeply or dropped service or product lines may struggle as customers return. Training new quality people takes time, and training customers to love a different product or service does, too.

3. Bunker Mentality > Just as some of the shifts in consumer behavior are likely to be long-lasting, business owners are struggling with planning for growth again. Too long in the mind set of survival can limit big-picture thinking, visionary ideas and innovation. Some businesses are finding it hard to take risks again, and while understandable, this bunker mentality will stifle growth.

What to do?

Every business is different, but the key to starting a recovery plan is to, well… START. Don’t assume you can just go back to doing what you did before “all this” and prosperity will return. If you’re waiting for the right time to begin marketing to your customers, or planning for the next season’s offerings, or considering your hiring needs… you’re already behind.

Examine your business: How much of your previous customer base is still with you? At what level? What are they buying now and why? Do they have new needs/desires? Where is your profit? Where do you excel? Where can you grow? What challenges are you facing from a staffing, resource and marketing perspective?

The depth and breadth of the depression caught many businesses off guard, mine included. Don’t let the recovery surprise you, too.

flickr image credit juhansonin

My Gowalla Page

The mantra in real estate has always been, “Location, Location, Location!” Over the past year, since the advent of  location-based apps such as Foursquare and Gowalla, it’s seemed the plugged-in community has adopted the location motto as its own. Predictions were made, and disputed, about how important these apps could be.

I resisted the allure for a while but succumbed to the new avenue for connection. I’m a sucker for connecting. After several months of using both Foursquare and Gowalla… here’s what I think about the potential and the problems:

Problems I see:

Spam abounds. (It’s possible to drive by a strip center slowly and “check in” to a dozen places in a few minutes.) I’ve “turned off” several people on either service who did this routinely and made my phone go nuts with their check in message. And their poor Twitter or Facebook friends! *shudder*

Stalker potential is high. Early on, I was enamored with the newness of it all and checked in to both services most everywhere I went. Then the sobering reality of just how much information I was giddily sharing with the known world made me pause… and rethink a bit. I still check in often, but not usually if I’m traveling alone. And I keep many of my check ins off of Twitter and FB…. only the connections I’ve accepted on the location services see where I’m visiting.

Reward factor is low. I’m the Mayor of 18 places on Foursquare. Yes, it’s true… 18. And the rewards for that, so far? Nil. Nada. Zilch.

Connection potential is limited. Yes, I can see the possibility of real-world connections happening because of online posting. That’s why I’m still using the services. What bothers me is that when I see someone has checked into St. Francis Hospital, for instance, there’s no mechanism through the service for me to say, “Hey, you OK? Need anything?” or, if they’ve checked into my favorite Mexican restaurant, to say, “Hey, ask for Melinda’s section, she’s fabulous!”

What I’d like to see happen, in order to make location-based services really take off:

Stop the spam. Limit the time between check-ins, perhaps? Reward frequency at the same venues rather than overall number of check ins?

Build actual rewards into the service… Oh, my… the potential here is incredible. Location based apps are the digital convergence of direct mail and intent-based web search. Take for example Pei Wei Asian diner… no dessert offered there. In Tulsa, one of their locations sits adjacent to a Maggie Moo’s store. When I check in to Pei Wei, I ought to get a coupon or offer sent to me from the app for 20% off my order THAT NIGHT at Maggie Moo’s next door. Why, oh why, don’t they do this? They know where I am, they know what I’m doing (location, intent) and the potential to offer me something that is timed perfectly and co-located is huge. Why limit the rewards to free fries for the “Mayor?” Seriously… the data they are developing on customer behavior is worth lots of money and can be leveraged in so many ways. Would bring new meaning to point-of-purchase advertising.

Add connectivity. Let me respond to the shout-outs of my friends. Actually foster real-world connection. What about a badge that’s earned any time 5 people simultaneously check in to the same venue? (the Lemming badge?) Or maybe a trigger for free fries if you and 3 of your friends all check in to the same venue within 20 minutes (long enough to get the ping, decide to go, and get in the door)?

Those are my thoughts… what did I miss and what do you think?

By now, you’ve completed all the steps in part 1 (previous post) and have a mountain of data…. random bits of impersonal knowledge. Next, we need to add some human insight to the data, season with some business sense and a dash of intuition and we’ll develop actionable information.

Talk to your customers. Especially your best ones. I don’t like lengthy, impersonal surveys for this. Customers are valuable and you should treat them (and their time) as such. Call up, go see, take out to lunch (depending on your business) your best customers and just ask them why they do business with you. Tell them you’re in the middle of trying to quantify who you are as a brand and that you value their opinion. In fact, you’d love to find more customers just like them. Ask them how they’d describe your company to someone looking for the service you offer (if they were selling your company to a connection, what would they say or do?) Encourage honesty… and look for telling information. Do you have a web site, but your customers don’t think of that as a way to tell people about you? If not… then perhaps how they think of your business isn’t reflected well on the web site. This happens when you THINK your market position and brand image are all about (A), and (A) is splashed all over your site (or brochures) but the perception in the marketplace is really (B).

Talk to your employees. Ask them how they describe who they work for… how they characterize your company. Ask them why they think customers buy from you. Don’t just ask your sales or marketing people. At one company, one of the guys out on the shop floor showed us a nondescript (to me) metal part. “These,” he said. “We use these. No one else does. At least, not in their regular line product.” I asked for some clarification… and found out that the company routinely uses a metal part two grades better than specs require in this particular product. It fails less often than comparably priced products. And this part shows in the product exterior. I talked further with sales, service, dealers…

The company was (attempting) selling itself on service… how they took care of customers and any problems that happened. Their service WAS good. But the real selling point, the reason customers recommended their products to other people, was that part. It meant (to the marketplace of people who actually USED the product daily) something to see that quality… though every part and bolt isn’t an upgraded version and the customers knew it. The product was a quality piece through and through, even so.

In their marketplace, long-lived equipment mounted to your truck was a badge of honor. Toughness and all that. Their peers could see the quality of their equipment and their investment… and that meant something to this market. Owning this brand meant you cared about how you did your job.

Service is great and all, but it’s even better to not need to call because the thing doesn’t break.

So the company’s web site, stuffed with service messages, and brochures with maps of authorized service locations, etc., weren’t helping their front line sales force (their current customers) sell. They needed to step back, go through the brand audit process and align their public messaging and touchpoints with what the marketplace told them was true… And arm their sales force, their employees and their customers with the right tools and information to share the message that toughness mattered.

So… now you are ready to sit down with the data from part 1 and the human insights from part 2. Really think about what all that stuff can tell you. Even if at this point you decide you want professional help or insight (let me know), you’ve already done a great deal of work and saved that time, effort and dollars. If you’re game to tackle it yourself, just remember that sometimes the biggest insight comes from the smallest details. Be not afraid.

I was getting ready to write the second post in the DIY Brand Audit for Businesses post when I wondered… since the first one didn’t exactly generate conversations, comments, crazy sharing… maybe I’d better evaluate.

I’m just wondering what you would like to see/hear/explore in this space. The blog is going to evolve in the new year as I evaluate what posts seem to have been the most interesting or useful to you guys (based on traffic, comments, shares…)

What do you want to see in this space?

It feels like more “how this connects to that” posts and more posts about marketing trends and how they affect businesses.

I know everyone, at some point, does a “What do you want me to write about?” post. It’s not so much about the writing as it is about finding topics and ideas you want to talk about… because the best posts are the ones where we all learn from each other through the conversation.

Thanks for sharing some of your time, attention and thoughts with me. I truly appreciate it.

After attending this week’s past Oklahoma Municipal League conference and trade show (for those of you who don’t know, many of my clients are cities), I realized anew how desperately many places, and the people who manage them, need some help branding effectively.
In some ways, branding a place is much like branding anything else…

• You need a good visual identity. One that promises something valuable to your intended audience.
• You must effectively communicate the promise to the audience.
• You need to deliver, consistently, on that promise.

What you say about your place is marketing. What people think about your place is branding. When I see a city manager’s business card produced in house and printed on donated paper at the least expensive price point possible, with a “logo” that consists of a divided shape of some sort with each quadrant filled by some hallmark of place history, I shudder. Again. What is the promise?
The promise seems to be that the city will remain as it has always been, and will be resolutely backward-looking. With what audience will that promise resonate?
Probably not a real front-runner for attracting new residents nor new businesses.
Let’s throw in a poorly designed, out of date city web site and no real attempts at good PR, meaningful collateral designed to attract new residents or businesses… and the entire image (brand) says, “We don’t pay attention to details. We aren’t forward-thinking. We won’t invest in technology, information or tools to help us do our jobs.”
Wow… can you see why I shudder? The problem of poor city branding is not unique to Oklahoma by any means; the net is full of examples. And I do understand, intimately, the desire to satisfy multiple groups/interests in a city logo and the need to “respect our history.”
Here’s a bit of truth about history… every town has one. Unless yours is truly unique, it isn’t a brand promise. And most towns of any age boast “an historic downtown,” too.

Take a good look at most city logos. Most look like they were designed by a committee (chopped up into pieces, everyone gets to stick their idea in the logo) because they were. If cities want to promise residents and businesses progressive leadership, commitment to excellence, vision, growth, infrastructure (whatever your list is), it’s time to lose the circle logo featuring water, oil, industry, and a flag. That generic formula applies to many, many city logos. Don’t be generic.
If you’re not sure where to start, or how to undertake a rebranding without alienating stakeholders, I can help.

When Richard Florida wrote in 2002 that,

“Place has become the central organizing unit of our time, taking on many of the functions that used to be played by firms and other organizations.”

He was making a case that what you could DO in a place would be people’s first consideration before moving there (and then finding a job). And I agreed… the economic development arm of my business is built on the foundation that adding amenities that residents want and desire (shopping, dining, parks & recreation, education opportunities, culture) leads to long term economic health and growth. If talented people want to live in a place, companies will go where the talent is.

I’ve been thinking… perhaps Florida’s definition of “place” is too narrow, though, to apply to today’s socially-connected world. Perhaps the new organizing unit is knowledge…. where it lives, how its found and accessed, and then how it can be acted upon. Maybe now it’s all about what you can do in a SPACE rather than in a PLACE.

Today’s spaces are not defined so much by walls or physical boundaries as they are self-sorted, self-elected affinities. I am part of several “spaces” online and also offline, nearly all of which I’ve chosen belonging.

Interestingly enough… marketing up until very recent times was based almost entirely on those spaces we CANNOT choose or have limited control over… my gender and age, for instance. As marketing shifts toward “engagement” and “conversation” it better also shift the basis to those affinities we choose. The spaces to which I’ve chosen to belong are a far more powerful way to connect.

What spaces, physical or not, are Florida’s Creative Class inhabiting now? How will companies find them? Does physical place still serve as our primary organizing unit and a defining characteristic?

(Quote from pg 6 of “The Rise of the Creative Class”)

Co-authored by Rickey Hayes and Mandy Vavrinak

More and more cities and communities are realizing that growing their retail base wisely is an integral part of any balanced and long-term economic development strategy. Not every city can support extensive retail; overbuilding in some categories and areas has contributed to today’s economic woes in the retail sector. However, many areas are still significantly underretailed and opportunities exist for both savvy cities and smart retailers. Since fewer retailers are moving in this challenging environment, competition for those new projects and locations is fierce. How can a city help get its name on the expansion list? Here are some tips we’ve found to be effective as we help cities recruit new businesses:

1. Believe in and utilize public/private partnerships. Cities can assemble land, provide needed public infrastructure and ensue the development process is as pain-free and efficient as possible. Now is the time for innovate approaches to incentives and improving internal processes.
2. Know your city/sites well, from a development perspective. What would make them attractive (or not) to a particular retailer? Does the site fit the retailer’s criteria?
3. Get your demographic house in order. Using the numbers from the last census is NOT providing current, actionable information for the site selection process. Numbers generated via internal studies (not independently verifiable) are also not helpful. Use a reputable source for solid demographics based on a reasonable trade area.
4. Understand the development process from the development side. Knowing how to work with site selectors, brokers, developers, leasing agents and retailers is crucial to ensure a smooth process and positive outcome.
5. Craft a marketing position and use it. If your city logo/motto reflects 150 years of history but not where you’re headed, or what new residents or businesses can expect in the future, you’ve missed an opportunity to shine. If your web site looks like an internal project, you’ve missed another one. Cities selling themselves need the same tools as other companies with products to sell… good logo, solid identity, good product information, great marketing vehicles to share it all.
6. Own your own economic development efforts. Chambers of Commerce, industrial development authorities, and other quasi-governmental bodies cannot “pull the trigger” on projects, yet the decision-making process and the ability to get things done in a consistent manner is an integral part of economic growth and development.

It’s not easy to get noticed by national retailers and other site selectors, but using these tips will help your community put its best foot forward and increase the chances you’ll get a shot at new business expansions or developments.

Cross-posted at NAI Commerce One blog and at citiesofvision blog.

Rickey Hayes is the principal of Retail Attractions, LLC http://www.retailattractions.com, a firm dedicated to helping cities and developers successfully find retail sites, close deals and improve the quality of life for our client cities. Mandy Vavrinak is the principal of Crossroads Communications, LLC, http://www.crossroadscommunications.com, a firm dedicated to effectively marketing places and spaces and specializing in working with retailers and cities. They’ve successfully partnered on a number of projects, attracting more than 6 million square feet of retail to the right locations over the past 6 years.