Article

Build-A-Bear founder on the importance of listening

Maxine Clark demonstrates how to build brand loyalty by seeking feedback from customers.

April 26, 2010

By Renee Martin

You don’t often see this skill listed on a résumé, but the ability to listen — really listen — is what frequently separates exceptional retail business leaders from those who are merely competent. They listen to both customers and employees. They take it all in and respond accordingly — even when what they hear shatters their own preconceived notions about what customers should want.

Maxine Clark, founder of Build-A-Bear Workshop, knows all about the power of listening. In her case, she takes her cues from pint-size customers who are far too young to either drive to one of her stores or to plop down a credit card at the cash register. But their opinions are what drive sales and Clark has the good sense to recognize this.

Clark launched Build-A-Bear Workshop back in 1997. The retail operation — which allows children to create and outfit their own customized teddy bears — has taken the toy industry by storm. Today, Build-A-Bear operates more than 400 stores worldwide. Total sales reached $468 million in 2008. Since early in the company’s history, CEO Clark has relied heavily on an advisory committee made up of kids. The Cub Advisory Board is always there to offer Clark advice and feedback.

“Kids are worth listening to, and their opinions are very important,” Clark says. “You never know how a child’s words might inspire you.”

In fact, Clark listens to what board members and customers in general have to say about a range of critical business issues. “Since day one, we have used the input of our guests to help us make store decisions — where to open up new stores, what new products to carry, or when to discontinue something,” Clark says.

One of Clark’s strengths is her ability to focus on details that help separate Build-A-Bear Workshop from competitors. For example, the bear sneakers have real tread on the bottoms and the bear binoculars are functional miniaturized binoculars. Most business owners would scoff at assuming these extra costs. But Clark knows that kids notice and appreciate these details. She knows this because she listens to them. Each and every letter and e-mail from these customers gets a response. She is also on Facebook and her BlackBerry is always within arm’s reach.

Clark listens to her associates as well. Company culture encourages trying new, creative approaches, without fear of being reprimanded if the risk doesn’t pay off. Top-performing store managers help develop company best practices. When Build-A-Bear Workshop readies a new stuffed animal launch, management contacts those stores with the best new-launch sales records and asks for input. Executives don’t operate in a corporate-headquarters bubble. “I am a collaborator, and I encourage that style of management at all levels of our company,” Clark says.

This open communication has helped Clark continually find new ways to ignite her young customers’ imaginations while charming their parents. She has tailored her marketing message, product and delivery to a well-defined targeted group: little girls who live in the suburbs and enjoy playing with real and imaginary friends, including stuffed animals. About 70 percent of Build-A-Bear customers are girls. In the era of sophisticated video games, this group represents an underserved market niche. From the beginning, Clark has taken advantage of this lack of competition. She has succeeded in taking an old-school, low-tech toy — the teddy bear — and making it as interactive as today’s high-tech video games. She has brought a fresh approach to an everyday product.

When you step inside a Build-A-Bear Workshop store during a big birthday party, what you encounter is equal parts toy store, theme park and crafts day at summer camp. Inside the store, you see rack after rack of little bear clothes — everything from leather motorcycle jackets to princess gowns. There are plenty of bear accessories as well, including toy cell phones. Elsewhere, kids line up at various stations, each one representing another stage of the bear’s construction. Guests also name their own bears and receive a special birth certificate — a key step in the bear-making process. That connection is a big part of the company’s success because the customers themselves build their own stuffed animals.

Before leaving, these kids will receive a “Cub Condo” carrying case. Clever product packaging has always been central to the company’s branding. “We sell the brand experience — not the product,” Clark explains.

You can be sure that many of these kids will return to the store soon, either to expand their bear’s family, wardrobe or cadre of accessories. About 60 percent of Build-A-Bear Workshop’s guests are repeat customers who plan their store visits in advance.

Clark is one of America’s most ambitious businesswomen. The success of Build-A-Bear Workshop rose out of her meticulous planning and risk-taking innovation, made possible because of her relationship with her customer base. She credits much of her Build-A-Bear Workshop success to her willingness to “dream big,” without placing any restrictions on her vision for the company. “Not dreaming big enough is one of the biggest mistakes entrepreneurs make,” she says.

Build-A-Bear Workshop continues to reinvent itself, introducing new stuffed animal characters, wardrobes and accessories. Savvy licensing agreements with professional sports organizations, such as NASCAR and Major League Baseball, have also allowed Build-A-Bear Workshop to strengthen the brand’s appeal for boys. The company has also created its own online virtual world, Build-A-Bearville.

Right now, one of Clark’s priorities for the company is developing senior managers who will ultimately take Build-A-Bear Workshop’s helm. She knows the company’s future will remain bright as long as its leaders refuse to take their customers for granted, really listen to what they have to say, and ensure the company remains nimble enough to respond to that feedback.

That’s a strategy that all retail managers can take.

Renee Martin is coauthor of the new book, "The Risk Takers: 16 Women and Men Share Their Entrepreneurial Strategies for Success." The book, which she wrote with her husband, Don, profiles high-achieving entrepreneurs, including Maxine Clark.