Case Study: Establishing customer-centric sales and service model to increase customer satisfaction and conversation rates, uplifting run-rate revenue
Retail – Store Performance Transformation - $12 Billion Omnichannel Retailer
March 31, 2020

Challenge

“Transform store performance to deliver incremental $250m of annual run-rate revenue”

  • Research indicated 1 out of 7 customers dissatisfied with experience (of which 40 to 80% do not intend to return)
  • 75% of consumers entering the store receive no help
  • Value perception lags competitors; Store rated as “very hard to shop”

Approach

“Shift focus from operations to sales and service”

  • Conducted store network diagnostic and designed target state store operating and sales/service models
  • Tested hypotheses, refined and integrated solutions and planned network-wide implementation
  • Scaled proven operating and sales/service models across store network

Results

“$275M sales growth and $68M margin contribution in 9-months: 14x ROI”

  • Repurposed $20M of sales and service capacity through improved efficiency
  • Achieved 4.5% improvement in conversation rate
  • Increased average order value (AOV) 14% over network
  • Implemented standard work to sustain and improve new performance levels

Final Thoughts

Sales and Service model scaled across network in 9-months; Delivered results valued at $1.4 billion of incremental revenue with a flow-through margin impact of $238m over 5 years.

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