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His firms' methodology concentrates on tracking shoppers throughout stores and videotaping their behavior, then analyzing it in the context of displays, traffic routing strategies and the use of signage in the stores. As a result of this methodology, the company Envirosell captures 50,000 hours of video each year. His firms' analysis shows that the front of stores is often used as a decompression zone, and that Americans tend to turn right when they walk into a store. As is the case with auto dealerships' service centers, the most crucial time to meet a customer is when they first enter the dealership or store. Mr. Underhill's analysis supports this fact with his firm stating that the first minute a customer enters the store is the most important in getting them to purchase. The challenges that Mr. Underhill highlights for retailers are to control the flow of traffic...
Each of these techniques is briefly analyzed below.
Increasing Same-Store Sales by Incenting Customer Loyalty
Mr. Underhill highlights the use of signage and shows the significant differences in how it is used at meat counters in grocery stores where 61% of the time spent waiting is after an order is placed (Berfield, 2009) in addition to how Williams-Sonoma uses signage to underscore the uniqueness and value of their products to customers. Mr. Underhill makes the point that the signage must have immediacy to them, as shown in the meat counter example, yet also be rich enough with content to provide sufficient differentiation for the products being sold. The example of this connection of incenting loyalty of customers through signage is also shown for
Throughout the article there are specific strategies defined for increasing the sales effectiveness of retailers, illustrating the unique methodology that Mr. Underhill's firm Envirosell utilizes to increase the effectiveness of retailing strategies. His firms' methodology concentrates on tracking shoppers throughout stores and videotaping their behavior, then analyzing it in the context of displays, traffic routing strategies and the use of signage in the stores. As a result of this methodology, the company Envirosell captures 50,000 hours of video each year. His firms' analysis shows that the front of stores is often used as a decompression zone, and that Americans tend to turn right when they walk into a store. As is the case with auto dealerships' service centers, the most crucial time to meet a customer is when they first enter the dealership or store. Mr. Underhill's analysis supports this fact with his firm stating that the first minute a customer enters the store is the most important in getting them to purchase. The challenges that Mr. Underhill highlights for retailers are to control the flow of traffic through their stores and also specifically control the eye movement of shoppers. Each of these techniques is briefly analyzed below.
Increasing Same-Store Sales by Incenting Customer Loyalty
Mr. Underhill highlights the use of signage and shows the significant differences in how it is used at meat counters in grocery stores where 61% of the time spent waiting is after an order is placed (Berfield, 2009) in addition to how Williams-Sonoma uses signage to underscore the uniqueness and value of their products to customers. Mr. Underhill makes the point that the signage must have immediacy to them, as shown in the meat counter example, yet also be rich enough with content to provide sufficient differentiation for the products being sold. The example of this connection of incenting loyalty of customers through signage is also shown for
What Williams-Sonoma must do is create a more unified multichannel strategy that seeks to manage the lowest-cost sales entirely online, further reduces Cost of Goods Sold (COGS) on their income statement. If Williams-Sonoma can do this they can quickly become even more profitable. The e-commerce strategies need to concentrate on creating such a unique online customer experience that prospects and longtime customers both use the Web to purchase directly
Williams-Sonoma continues with its current strategies and objectives in five years, it will be facing declining sales, declining profits and may be evaluating the merits of continuing some of these brands. Basically, the company's financials have been strong and it has responded with a variety of new brands and brand extensions. However, the company's business is cyclical, and correlated with the health of the economy and in particular the housing
Net income reflects an increase in interest income. The company is traded on the New York Stock Exchange under the symbol WSM. Looking at it's past history, the Williams Sonoma Group does not appear to have suffered from the 'sophomore slump" so common to many other stores which have attained success and a certain market share. Management continues to use consumer research to refine the business in at attempt to keep
Crate & Barrel, in contrast, focuses more on furniture, with an even greater emphasis on Internet sales. Restoration Hardware because of the fact it sells even less necessary and kitschier items than Williams-Sonoma, stresses the design appeal of its stores. Pier 1 Imports and the Bombay Company likewise emphasizes the style conveyed by their stores to a greater extent than either Williams-Sonoma or Crate & Barrel, and have a
Williams-Sonoma continues with its present strategies and objectives, where will they be in 5 years? In the next five years, Williams-Sonoma will make an impact on society as they are currently. One has to note that they will have become a multinational corporation (MNE). This is because they are continuously trying to find ways in which to grow, and their strategy will make this possible due to them having a
Strategic Human Resource PlanIntroductionWilliam Sonoma�s strategic human resource management plan highlights the company�s Strengths, Weaknesses, Opportunities, and Threats and further seeks to formulate human resource goals that satisfy the SMART criteria. These goals will be developed with an intention of ensuring that the organization continues to be relevant in an increasingly competitive business environment. Human resource goals happen to be of great relevance in the overall success of the organization.