Declutter Your Store
“We have a relatively low bar to clear regarding customer service. The survey concluded that “all customers really want is a simple, quick solution to their problem.””
A recent article in the Harvard Business Review (based on 75,000 interviews) found that despite what we might think about delighting our customers, we have a relatively low bar to clear regarding customer service. The conclusion was that “all customers really want is a simple, quick solution to their problem”.
Let’s face it, flooring is a daunting purchase, so anything we can do as retailers to simplify the process and make it as pain-free as possible will make for a satisfying customer experience.
What can we do to achieve this relatively modest customer service goal?
“Choice is good, but only up to a point. Beyond that point, consumers are overwhelmed and confused.”
I suggest we start with choice. Research tells us (again with the surveys) that choice is good, but only up to a point. Beyond that point, consumers are overwhelmed and confused. Not only our customers but our salespeople; they don’t have the bandwidth to know everything about hundreds of products. Reducing the amount of product on display makes for a cleaner, less cluttered sales environment and knowledgeable and confident salespeople. In short, we simplify the experience for our customers and make it easier for our salespeople to find the solutions those customers are seeking.
“In short, we simplify the experience for our customers and help our salespeople find the solutions they seek.”
As a flooring retailer, I initially took pride in the amount of product we had on offer. We had a large showroom and a high profile, so manufacturers and suppliers provided us with samples for most of their product. Eventually, I realised our revenue wasn’t linked to the number of products we had on display, so we removed half of it.
So, how did I determine which products to remove from our showroom? Three elements came into play; for every product, I wanted to know how many quotes we had done, how many of those turned into sales, and the GP% we achieved on those sales. Out of RFMS, I ran a report, and it was eye-opening. Among other things, we identified products that hadn’t been quoted for over a year and others that generated quotes but very few sales.
“Sadly, unless we do the exercise ourselves, suppliers and manufacturers will know more about what we sell than we do.”
Sadly, unless we do the exercise ourselves, suppliers and manufacturers will know more about what we sell than we do.
A startling thing happened by reducing the number of products on display: our revenue and GP% increased. Our revenue increased because the shopping experience was less stressful, and our GP% increased because we focused on exclusive products, price advantages, and rebates.
Reporting out of RFMS was key to decluttering our showroom. For each product, RFMS quickly provided me with quotes, sales and GP% by colour within the range and by salesperson.
If you would like to understand what RFMS might offer your flooring business, we will be happy to arrange an obligation-free online demo.
Chris Ogden is a consultant and Managing Director of RFMS Australasia (rfmsANZ.com), a supplier of IT solutions for the flooring industry. Chris has an extensive background in all aspects of the flooring industry, and he can be contacted at cogden@rfmsanz.com