BOSTON – Set up on a huge stage like a classroom, with Harvard Business School Professor Rajiv Lal stretching the minds of his marketing class, this CTAM session was like none other I have seen in my 20 years of attending these Summits.
The "class" offered a look at a Best Buy retail case study on new thinking about customer centricity. Professor Lal’s 36 CTAM U students offered their take on why many of the moves were so effective and what could have been done differently to hit it out of the park.
The fast-paced discussion focused on customer centric strategy on treating the customer as an individual, meeting needs with end-to-end solutions and engaging and energizing the employees to execute. You need to dig in deep to see how customers buy and consume the products, said the students. Much of this session is applicable to Canadian BDU retail operations – or for execution of a new sales culture environment.
The group agreed that it was a good long term plan and would not have executed as quickly and in the same manner as Best Buy did. The organization after all had 120,000 employees to fully execute this program.
Here are the salient points needed for implementation:
* Start by getting full buy-in from all management. Review your management and adjust and hire based on your key needs to manage and motivate staff to meet the goals.
* Have realistic timelines – conflict can arise out of chaos otherwise. It did with Best Buy causing high staff and management turn-over.
* Get back to basics of probing a customer as to their needs – do not assume their needs
* Do not mass merchandise. Instead sell a solution instead of a product for the individual
* Understand the customer at a deeper level. Think if you were in their shoes with their lifestyle
* You can reduce the amount of returns or after-sale questions by doing a better job at purchase.
* Listen to all customers and look at how you can make things better not just your high-end buyers.
* Offer services your competitor cannot.
* Stay away from “clumping” your customers i.e.: there are three different types of Best Buy of packages or recommendations they would suggest for real estate agents due to various needs. Don’t make the leap to what they want based on their profession or family size without probing further. Then recommend and make it easy on them.
* Have an integrated measurement system. Check at the end of each day and adjust focus for next day.
* Open up a regular channel to feed back all customer comments and their wants to your suppliers. Suppliers should have a piece of responsibility for your P&L. You will help drive supplier decisions for product changes or additions based on what your customers are asking for in your regions. Implement the attitude with your suppliers that “we can do better and so can you”.
Employees are the key in making this a success. People doing something they love are energized – then productivity increases. It’s key to inspire staff and make goals and training realistic for all employees, especially part-time students. Good employees that are natural sellers and keen to grow may cost more but are worth the investment.
HR needs to be a keen participant in any strategy so they are hiring and setting up training programs that can meet the needs of this new direction. Staff turn-over hurts morale so train good managers who value, respect and can keep employees.
Technicians and CSRs must be empowered to gain a competitive advantage. People make it happen, especially those that touch your customers. So don’t just think about product, think about consumption and explain the value based on consumption.
Janice Lee is, principal, JLL & Associates, reporting from CTAM Boston for Cartt.ca
