CASE FOR CRITICAL ANALYSIS
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Lauren's Balancing Act
know when something new arrives!
he thinks is perfect for me" be of savvy shoppers.
Now, two years into the
urged Lauren to submit a full program as a potential model throughout the department stow bers vouched for the overall
the last two quarters of the second ates, including Katherine Knowles'
and Damien Fotopolous in significant gains as a result of
and sales associates and custo
ably overall, urging a contin
Reliance on commissions sales associates to treat their
if it were their own small bilsim-s. on nuances of merchandise, trends, finding ways to promote
building an impressive number
The satisfaction level of the numbers—not only sales
business, customer referrals to
comment cards, all of which had the beginning of the program.
The down side of the
some associates soared, others
an aggressive, pushy sales style or
by coworkers and teetered, being replaced because they once-proud tradition of coo
was, in many instances, being
competition. Work assignments
floor were resented. In additias,
sales associates of certain d
en's accessories, complained of
as one sales associate pointed ask,
on a $50 belt is nothing commission on a $2,800
ment was mounting among those extravagant wages of a few.
"If we change this program. if* commission for some and return IS others, how does that fit with owty ren said to Jack. "How does it de& ence in pay scale? How does it ai attitudes of our sales team and 1M store will not return to what we NI another store?"
DeMarco's Department Store manager Lauren Brewster's "Wow" moment came when she observed a Chicago restaurant staff's gushing treatment of an international celebrity.
"Everyone dreams of that kind of star treatment," Lauren told her assistant, Jack Klein. "Think about it. People brag about their bank or the local bar where `everybody knows your name,' or enjoy showing off a favorite restaurant where the hostess always remembers their favorite table."
DeMarco's, like other upscale department stores, suffered the double whammy of a slumping economy and increased competition from discount retailers and online shopping. How could the store, the "box," compete, retain its old customers, and build a strong future customer base?
"We've always known that it's all about customer service," Lauren said. "But what's so great about grabbing a giant plastic shopping cart and slogging through some giant warehouse in your shorts and flip-flops, and then joining the herd at the checkout? That is not a shopping experience."
"And what isn't great about being treated like Oprah from the moment you hit the door until the sales associate swipes your card and hands over something lovely that you just purchased?" Jack asked.
Lauren's idea was that store customers receive that personal, upscale, "you're somebody special here" treatment at DeMarco's. Sales associates would raise their own professional level, regard customers as worthy of personalized service, and build their own clientele. As added incentive, the entire DeMarco's sales team was changed over from hourly pay to straight commission. "Your pay is built through your own initiative and individualized service that makes customers return to you again and again," Lauren instructed the sales force at the outset of the experiment. The idea intrigued Corporate, which approved a two-year experiment.
As expected, the new plan created a minor exodus among those who wanted the assurance of a "regular paycheck." But as the program moved through its first year, both store and corporate management was pleased with the overall results. Marketing pushed the new image of elite, personalized customer service, and phrases such as "Katherine at DeMarco's helped me select this outfit," or "Damien always lets me