Retailer effectiveness

1)) Here are some of the traits that most of them currently share:
1. They are localising. They practice localisation of both their physical formats and merchandise
assortments. Except in specific circumstances where the format is largely standardised (eg.
Apple stores, convenience stores or junk food outlets) it is no longer possible for a retailer to
grow by replicating a one-size-fits-all box and one-size-fits-all merchandising strategy across
multiple locations. Real estate opportunities and customers are now too heterogeneous to let
this model work.
2. They don't equate hiring more people with better service. One of the biggest hoodwinks in
modern retail is when a retailer tries to con the public that service will improve because it
increased the number of salespeople. Retailers have service in their DNA or they don't. Not
having it doesn't represent failure but claiming you have it when you don't is a lie that
customers will easily see through and not easily forgive.
3. They are investing heavily in e-commerce and also in stores but more strategically and
selectively in the latter than they did in the past. In fact they are closing marginally profitable
stores instead of just keeping them open to fly the flag. The marketing role of their stores as
opposed to the pure selling role - is assuming greater significance.
4. They are closely integrating their online and offline sales channels to present customers
with a seamless shopping experience.
5. They are leveraging social media for direct sales. Facebook, for example, is becoming a
powerful new sales channel for major retailers.
6. Private label merchandise accounts for a high and often increasing proportion of sales. This
protects margins and offers a natural differentiator in a world where brands have become
ubiquitous and, to many, boring.
7. They don't suffer from psychic geographic barriers. International growth is a given and can
be accomplished even before domestic saturation has occurred, whether by direct store
operation, licensing or franchising.
8. They deliver an exciting in-store experience. This doesn't mean that video screens line the
walls or rap music blares. It can just mean that 10 per cent of the store has a revolving
merchandise assortment to drive repeat visits. Aldi and Costco are great at this.
9. They employ people who believe in what they are selling. Retailers like Lululemon and
Trader Joe's wrote the book on this.
10. Whatever they promise, they deliver, or make themselves accountable if they dont.
Notice some of the things that are missing from the list. They don't complain about unlevel
playing fields, the weather or European financial crises.They just get on with it.
Michael Baker is a retail and property analyst and consultant. He can be contacted at
Michael@mbaker-retail.com or www.mbaker-retail.com

Read more: http://www.smh.com.au/small-business/managing/the-10-characteristics-of-
highly-effective-retailers-20110907-1jx1i.html#ixzz374h9bngs

2)) Sales Force Effectiveness
Among the most important activities in a company is increasing the effectiveness and efficiency of its
sales force and overall go-to-market business model. While performance improvement can be tackled
across various levels or one issue at a time, an integrated approach often proves most effective. In simple
terms, sales excellence comes from asking five important questions that cover customer strategy,
channel strategy, go-to-market approaches, capabilities, key enablers, and external drivers:
1. Are we focused on the right customers?
2. Do we have the right mix of and seamless integration points across our channels?
3. Are we doing things right in the marketplace?
4. Do we have the right talent aligned with our customers, the right support resources and processes
in place?
5. What has changed externally in our markets or with our customers that dictates a need to change
our sales approach?
The A.T. Kearney Approach
A typical sales force effectiveness project consists of three phases:
Phase 1 is an assessment of the clients current sales strategy and go-to-market model to identify
improvement opportunities. This typically means performing customer and channel segmentation, activity
time audits and surveys, review of current practices, internal interviews with key stakeholders, and cost-
to-serve models.
Phase 2 involves a pragmatic, customer-first approach to capturing the opportunities identified in phase
1. This might include defining new customer segments or sales models for different segments, realigning
the sales organization to better serve customers, strengthening sales processes and tools, and adjusting
sales performance management approaches. Revisions to the overall go-to-market strategy may also
need to include changes in pricing, promotions and discounts, and product architecture.
Phase 3 focuses on implementing the new initiatives properly while prioritizing opportunities to increase
value quickly and to capture longer-term competitive advantage. Because the most important outcome of
any sales transformation is value creation, we employ proven and practical approaches to ensuring the
long-term sustainability of sales initiatives.
The Results are Impressive
Our clients yield 100 to 350 basis-point improvements in sales from existing customers and channels as
well as additional value from targeting new customers and channels. In addition, many sales
transformations lead to reduced sales costs, anywhere from 5 to 15 percent depending on the nature of
the transformation.