Trudging the Road to High-Tech Destiny: 2000 Registry Makeover Series, Part IV

By Michelle Moran

DECEMBER 01, 2000 -- After a year-long project aimed at bringing Cook's Emporium into the 21st century by computerizing its gift registry program and tackling Internet capabilities, store owner Margaret Junkhan has two words of wisdom for other retailers with the same goal: patience and practice.

It's been a long year for management at the independent kitchenware store in Ames, Iowa. The year has been packed full of small and large victories, big and little defeats, and huge educational growth as Junkhan and store manager Vicky Flaws stretched beyond their comfort zones to embrace new technology.

Junkhan and Flaws agreed last year to participate in The Gourmet Retailer's Registry Makeover 2000 — an experiment in creating computerized registry operations. Our goal was to take Cook's Emporium's handwritten notebook gift registry system, computerize it, and create an online presence. For all intents and purposes, the experiment was successful, albeit cumbersome. To date, Cook's spent just under $8,000 to overhaul its gift registry system (including a second computer system in the office which will eventually be linked to the main floor PC), allocated approximately $1,000 for an initial Web presence, and invested thousands of hours of personal time.

High-Tech Rewards

The computerized gift registry system is attracting customers with its high-tech convenience. According to Flaws, bridal couples are enthusiastic about the scanning gun format and their guests are pleased with the professionally printed shopping lists.

The software, Gift RegistryWorks™, was provided by Walnut Creek, Calif.-based MarCole Enterprises. The interactive software company agreed to overhaul Cook's Emporium's gift registry system, donate the software, and charge a nominal fee for hardware from its business partners. In addition to packaging a hardware/software system for Cook's, Vice President of Business Development Dann Wade personally educated staff and management at Cook's on the new operating system.

"The computerized gift registry gives us credibility versus the hand-written page. Customers know we're serious about bridal registry, " Junkhan said. "I think it takes more time, but the customers like it better. Plus, they can walk out of the store with a list of what the bride wants in hand."

Flaws agreed and said, "The scanner is a great upgrade to the system. Bridal couples love it because they know there won't be any mistakes copying the registry down by hand and they have fun using the scanning gun."

Growing Pains

But the Web presence is another story. This segment of our experiment caused much angst with Junkhan and Flaws since it required a more computer-oriented foundation. Both said they were inadequately prepared to handle the myriad of obstacles they encountered.

"There's always some new tool we need which we're not familiar with," Flaws said.

Junkhan added, "I compare the Web site to raising a child — you always have to get it something else. It's constant; once we resolve one thing, ten other new issues arise."

She continued, "Everyone involved in this project, including myself, believed the experiment would flow much smoother than it has. Initial timelines for our project goals quickly went by the wayside as new, more realistic deadlines were established. In theory, it didn't sound very hard. We would do this, then do that, and it wouldn't be hard at all. I was wrong."

One of the most frustrating obstacles for both Junkhan and Flaws has been the technology itself. Computers and software function only as well as their operators. Junkhan said she discovered quickly how ill-prepared she was for the undertaking.

"When I started this business 21 years ago, all I wanted was to own a nice small business. If it was successful, that would be great. If it wasn't, I would go work for the university, sit behind a desk, and collect a paycheck," Junkhan said. "There were times during this project when I questioned why I hadn't chosen the latter."

Flaws is quick to dismiss Junkhan's remark by reminding her how much fun they've had over the past 12 months.

"Besides, this is keeping her from Alzheimer's," Flaws teased. "Really, the main problem we've encountered is communication. We don't understand the terms — computer techies have a whole different language. You have to adapt and ask questions. You really have to force yourself to understand. It's like a good marriage — you have to talk whether you want to or not."

Aside from language barriers, Cook's management had to learn patience. It became apparent a short time into the project that unexpected problems could torpedo their timetable.

Junkhan's tongue-in cheek theory is most problems arise on Fridays — Flaws' day off. She explained, "One of the worst days for the gift registry was a Friday. All of a sudden in the middle of the morning, the registry went 'poof' and disappeared. We called MarCole and they gave us all sorts of instructions to follow, but nothing worked."

Eventually, MarCole requested that Cook's send the system to California where it was discovered the program settings had been inadvertently changed by a customer viewing the registry system. Once everything was reset, the system was returned and unsupervised customer access was restricted.

"I can't say enough good things about how MarCole helped," Flaws said. "MarCole was great. They tried everything to avoid having us send it to them — even reaching us through the modem, but we just couldn't figure out what happened."

Through each pitfall, Cook's management learned. The registry problem resulted in restricted customer access to the PC which houses the in-store registry software, as well as the creation of a backup system.

"August is a big time for brides. I know we lost business since we couldn't access anything. We had no information, so we tried to suggest things we remembered a particular bride wanted. Then MarCole accessed the registry and faxed us what we needed, " Flaws said. "We learned from it. We learned we need a ZIP drive for backup. We also created a system so that every time a registry is updated, we print a hard copy of the information and place it in a binder."

Presence Tension

While Cook's continues to easily clear hurdles with the gift registry program, its entry into the Internet landscape continues to be trying. At press time, the Web site, www.cooksemporiumltd.com, remained under construction. Webmaster John Holst of Fort Dodge, Iowa-based Page Weavers uploaded the basic site outline using Cook's brochure and the gift registry was online. But the ten-page goal of the site had not yet been achieved.

"The bridal registry part is doing very, very well, but our Web site development has been slow," Flaws said. "Sometimes, technology is very cumbersome."

Developing the Web presence presented the most difficulties for the Cook's team as they discovered a wealth of new terms they didn't understand. Their lack of Internet experience was not only a language barrier, but caused confusion for Junkhan when she was creating promotional materials. In a recent newsletter promoting the new site, Junkhan mistakenly referred to the store's e-mail as the Web site address.

"I think if we knew more about what we were doing, it would be going much smoother," Junkhan said. "We almost need someone full time on this project. But this is a small business — we have so many other tasks at hand that I have to admit some days our Web presence just isn't important to me and it sits on the back burner."

Flaws is more pragmatic about the project. She sees the Web presence as an investment crucial to the store's future. Despite its nearly all-consuming demands, she is more dedicated to the project's goals than when the experiment first began.

"It's forced us to be aware of what's out there and what our competition is doing. I've been able to see what we do want and what we don't, " she said. "I do think once we get our pages up, we're going to see a lot of young people utilizing our services. The foot traffic we've seen this summer for bridal has been lighter than normal and I think that Internet registries elsewhere are impacting us."

While Junkhan projects the new Web presence will mean a 10 to 20 percent increase in sales, Flaws says she expects the increase to be closer to 25 percent.

"We have a lot of customers coming in and asking for online bridal registry," Flaws said. "Women my daughter's age are coming in and it's the first thing they ask about."

Shrink Wrapped

MarCole's decision to become involved in this experiment was not purely esoteric. The company used Cook's as a model to modify its existing gift registry software presently used by mass retailers into a shrink-wrapped version for small retail outlets.

"The experiment with Cook's Emporium helped us see the specific problems or roadblocks small retailers would find with implementing this type of application," Wade said. "Large retailers have MIS departments, financial and hardware resources, and marketing teams to develop their new technologies and Web sites. Smaller retailers are predominantly on their own so we had to make the system simple and easy to install."

Over the past year, Wade discovered and overcame these obstacles. One of the major hurdles for MarCole was the inclusion of Cook's inventory in the database.

"Extracting the data from the retailer's current POS so it can be applied to the gift registry database is the first step to the foundation of the system. This was an obstacle with Cook's because they had a limited grasp on the POS technology," Wade said.

In fact, Cook's is still in the process of modifying its registry system to better construct its database, creating a perpetual inventory process. When Junkhan initially purchased her Triad POS system, she never envisioned the need to transfer the database into another operating system. The additional software needed to bridge the Triad database to the new system will cost Cook's another $2,000. Presently, MarCole is negotiating with Triad to develop a joint interface utility that would provide a tool to extract and apply data from the Triad POS.

"We need to be able to update our merchandise as it comes in daily and we can't. That's been a major stumbling block between the two systems," Flaws said. She recommends any retailer considering computerizing his or her gift registry research the systems' compatibility and discuss any limitations which might arise with software providers.

Understanding system capabilities and hardware needs is part of the communication breakdown Wade had not anticipated when the project began. The difficulties translating an industry he is immersed in to retailers who have very little grasp on new technologies slowed Cook's transition into the computer age.

"I would have liked to have had some kind of computer class before we began," Flaws said. "With more computer savvy, I would have been better equipped to talk to software programmers and Web page designers."

Today's computer terminology is a foreign, acronym-filled language which expands daily and changes hourly. This rapidly changing environment is the largest hurdle Flaws and Junkhan continue to work to overcome.

"They knew none of these terms when the project started," Wade said. "So, we started with a huge learning curve that had to be made up. But they've really worked hard to comprehend the world they've entered."

Project Benefits

Throughout the project, MarCole monitored the successes and failures of the scaled-down application, noting the different requirements of independent retailers.

"We learned that the specific needs, both in-store and online, for the smaller retailers are more scaled back than what the larger merchant requires," he said. "Small retailers don't necessarily need a kiosk or remote self-service stations. They provide a more intimate setting for the customer. They're right there when the customer walks though the door, so they don't need self-servicing options."

To meet those needs, the Gift RegistryWorks' packaged components normally utilized by mass merchants were limited for Cook's application.

"Smaller retailers need more of a scaled-down version of an in-store system. The functionality is the same, but we didn't have to include all the unnecessary pieces," Wade said. "We had to design a system that would maintain the highest level of functionality of the Gift RegistryWorks™ system and still be able to work within the architecture of a smaller retailer — i.e., an outlet and a phone line versus central servers and frame relay."

As a result of the project, MarCole is introducing a new boxed Gift RegistryWorks™ turnkey system to the market in 2001. The product will be packaged to include a base software application consisting of a Gift RegistryWorks™ registry manager, an item master load utility, an item master maintenance utility, and a database. The software package will allow retailers to create, update, print, and delete registries and includes sales history processing and a built-in training module.

The item master load utility is used to apply the retailer's existing merchandise data files to the registry database. The item master maintenance utility allows retailers to add or delete merchandise items from their database. In addition to the base software, MarCole will offer upgrade packages combining hardware from business partners Lexmark, Symbol, and IBM.

"This system will enable all retailers to have the same powerful application whether they're large or small," Wade said. "Gift registry is a rapidly evolving business-driving tool and sales channel that interacts with customers and typically, smaller retailers would be priced out of this type of application."

Online Connectivity

While most of us are well aware of the depth of offerings available to consumers online, it's not often we consider how the connections really work. To the average person, surfing the Web and taking advantage of its services has become as basic as flipping on a light switch — we're confident the light will go on, but unaware of the architecture needed to provide the power source.

"Internet hosting is expensive and very involved architecturally. The obstacle was to design an online gift registry system that would work within a small retailer's budget," Wade said.

As Cook's constructed its online presence, MarCole prepared a system designed to provide them with a seamless online connection to their gift registry. In addition to its software development, MarCole is entering the ISP (Internet Service Provider) and ASP (Application Software Provider) market. As an ISP, MarCole will host the Gift RegistryWorks™ software at their own site (www.Webregistryworks.com), thereby creating a seamless link to Cook's site.

"The ASP service enables Cook's to 'rent' the Internet software rather than purchase it. As an ISP, we will link our Internet gift registry to Cook's. That's the connectivity," Wade explained. "To the customer, the service will appear seamless."

This purposed connectivity was met with as much trepidation from Flaws and Junkhan as you may be experiencing yourself when reading Wade's words. The advantage to the service is having MarCole monitor and maintain the online registry system, thereby saving Cook's time and money.

With its Web presence established, Cook's chose which level of the Gift RegistryWorks™ Internet functionality they wanted to link to their site, those levels being: retrieval (allows someone to access, retrieve, and print registry online); creation/update (allows a customer to create and/or make changes to their registry online); item selection (allows customers to browse merchandise descriptions and images to select items for their registry online); and e-commerce (provides purchase capabilities for multiple registries online).

The Final Push

Today, Cook's Emporium is fourth and goal with ten yards between them and the end zone. Their gift registry program is growing successfully with customers signing on for both bridal and alternative holiday registries. The Web site remains under construction with several pages complete and the link to MarCole's registry site operational. Despite a few fumbles, both Flaws and Junkhan remain optimistic the project will score business points with both existing and potential customers.

Cook's Peer Counseling



1. Get Educated. Anyone embarking on technology projects should educate themselves as much as possible. Flaws said learning the basics first will give you a better foundation to build upon.

2. Set Goals. Research what it is you want to accomplish and create a timeline marking the completion of tasks.

3. Be Realistic. Along with your goals, research the financial commitment needed to accomplish each task and create a registry/Internet account to fund your project.

4. Communicate. Be sure to incorporate plans for your project in all communications with customers. Announce it in your newsletters, use your Web site address and e-mail on all letterhead, shopping bags, and advertising.

5. Create Momentum. Be sure to talk up your plans with customers and get them excited about the process. Hand out fliers informing them of your progress with every in-store demo.

6. Be Patient. Don't let new or unexpected obstacles defeat you. In doing this, you have to just jump in and do it. You can't be afraid — you just have to try it. But in doing so, know that it takes time.

7. Buddy System. When creating a Web presence, find another business in your community that has completed a similar program and network with them for support.

8. Throw a Party. Hold promotional events when you reach your goals with both computerized registry and Web presence. Let your customers know how important this new service is to you and it will become important to them also.

9. Delegate. Hold frequent staff meetings to keep everyone in your store involved in the process. Learn to delegate tasks better, allowing you more time to concentrate on your goals.

Sense of Humor. Keep your sense of humor; otherwise, you'll sink fast.



Visit Cook's Web site at www.cooksemporiumltd.com or e-mail Junkhan and Flaws at cooksemp@netins.net. For software application questions, contact MarCole at 800-626-1555.