The furniture industry spends a lot of time talking about product and advertising and consumer trends. But when was the last time we thought about the people themselves?
Every “consumer” and every “employee” is a person with basic needs and hopes for a better life for themselves and their families.
How well do you know the needs and desires of your customers and employees? Have you considered those needs in your human resource practices and work design or in your approach to merchandising?
You could engage in long academic discussions about Maslow and Herberg, you could study Deming and Kohn, or you could simply examine your own feelings and experiences.
Most people would come to some very simple (and rather obvious) conclusions.
- People want to feel that they have value and that they are respected
- People want others to listen to them, with earnest
- People want to be trusted
- People want to have a sense of pride
- People want a balance of independence and a sense of belonging
- People want a balance between work and personal life
Do your advertising messages appeal to any of these needs?
Certainly price and terms are of interest. Ye, as a consumer myself, I am far more interested in whether the furniture will make my home more useful, more comfortable, and more attractive.
Does the store experience appeal to these needs? In a recent customer satisfaction survey at a major retailer, customers referred to the salespeople as “vultures.” Of course, that’s not every store, but too many, for sure.
My own experience at that major retailer was illuminating. Salespeople were more in their wallets, as evidenced by their incredible interest in and desire to sell fabric protection and warranties than sofas. Why? It’s all about sales commission instead of customer satisfaction.
- Does the merchandise meet your customers’ needs?
- Is it structurally sound with durable fabrics and finishes?
- Do you provide product information? (Some retailers actually remove manufacturer’s tags because the customer may realize they don’t need to purchase fabric or finish treatments.)
- How about work systems?
- Do you provide your people with the tools, training, and information to do their jobs?
- Do they know the boundaries of their authority?
At the Ritz Carlton hotels, every associate is authorized to spend up to $2,000 on the spot to resolve customer problems. Their data indicates that this program has actually saved them money by resolving problems at the lowest level. More importantly it is part of a system that is responsible for some of the best customer loyalty in any industry.
Retail success requires stores to be open evenings and weekends. For many, this is time away from friends and family.
Do you address these issues with rotating schedules and flexibility for employees who occasionally have special events they would like to attend?
In a recent discussion with the President of a major retail chain I was told, “you don’t understand salespeople and delivery drivers. They don’t want to be home with their wives. They go to the bar every night to avoid them.”
This guy was insensitive, sexist, and completely out of touch with his younger workforce. He apparently only looked at the world through his own experience as an unhappily married parent and father.
Are compensation systems designed to encourage behaviors consistent with the rules and written philosophy of the organization? Or, do bonuses and commissions encourage people to cheat customers and/or fellow employees?
What about fun? Do customers enjoy visiting your stores, or is it like buying a used car? Saturn figured this out and took the mistrust out of car buying. I know I often put off purchases because I hate the buying experience.
Do employees like to come to work? At Disney, they used to actually count smiles. They knew that unhappy employees were not going to make their guests happy.
These concepts are pretty simple in theory but they require real work and a willingness to change.
Start with an employee satisfaction survey and commitment to respond to what you learn. Get your human resources department to do more than recruit and protect you from lawsuits.
Do the same for your customers. Ask them what they want and give it to them.
Benchmark against other organizations and find out why their customers and employees are loyal.
Or you can continue to blame economic conditions for your circumstances and only look for cheaper products and ways to cut labor costs. (How’s that been working for you so far?)
Calidad is a pseudonym for a friend and former vice president, performance excellence at a Top 15 regional furniture chain.
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