Systems Define Outcomes: How Successful Retailers Grow Their Business
With hundreds of thousands of home furnishings retailers, what sets you apart? Merchandise? Customer service? Location? More often than not, the way to differentiate yourself (and make more money in the process) hides behind the obvious.
What do the most successful furniture store owners and executives get right? They’re systematic in how they improve their operations. They constantly review and correct. They’re diligent about examining business intelligence, spotting exceptions, and finding the root cause. They look into the future and set goals – then they devise a plan to get there.
Throughout the years, PROFITsystems has been privileged enough to work with some great operators who challenge themselves daily to run a better business. Here’s how they do it:
- They utilize real-time business data: The best operators obsess about where their cash is going, whether best sellers are in stock, how to turn inventory faster, what follow-up process the sales reps are following. Analyzing this information in real-time and regularly is critical. How can you improve when you don’t know what’s been working and what hasn’t?
- They have complete control over their Inventory: What’s selling and how is inventory being reordered or purchased? How and when are dogs being marked down? Which vendors are making the most money and in which category? Having the right systems in place to answer these questions is the key to controlling inventory.
- They provide excellent customer service: From the time the customer walks in the door (or visits their website), the most successful businesses are organized to sell and deliver the right product without a hitch. It starts with full visibility and control over their inventory. They arm their sales reps with a system than can help them turn into business consultants, and use historical customer data to make recommendations or uncover new opportunities. Once it’s time to deliver the product, they can see which deliveries are still at their warehouse, which are in-route to their customers, which trucks those deliveries on and when they will arrive at the customer’s doorstep – at all times.
Information is power. Without it, you may misinform a customer or make a wrong decision. Successful home furnishings businesses have retail management technology and practices in place that allow every area of the organization to work in sync. They leverage real-time visibility and data on what’s happening in their business to improve efficiencies, increase profitability, and make customers happy so they keep coming back.
In our upcoming webinar, we’ll be joined by Good’s Home Furnishings co-owner, Scott Lever, and Metro Mattress CFO, Jason Mehl, to discuss how they continuously improve their businesses. If your goal as a retailer is making more money while having more fun in (and out of) your business, then click here to reserve your spot today.