Schmidt Furniture case
Problems
Schmidt Furniture is facing sales stagnation and struggling with not being in phase with its
salesforce.
Causes
The unclear definition of the salespersons’ responsibilities and inadequate marketing and sales
strategies have come to undermine the company’s sales growth.
Recommendations
A clear definition of roles and responsibilities is the first step to instill synergy in a company,
and when it comes to salespersons, they are the company’s front-line brand ambassadors. They
should be fully aware and trained about what are the expectation of their interactions with
customers. In tandem with the marketing department, which monitors the needs and wants of
the target, salespersons are the arms that reach out to the customer to offer the company’s
value proposition to fulfill those needs. In the present case, Rosann could organize a training
session for her salespersons and engage them in new tactics to interact confidently with
customers, such as happy greetings and show their readiness to assist and learn about what
type of furniture the customer is in the store to find.
Rosann could take the salespersons up on the fact that they don’t need to apply a “hard sell”
strategy, therefore take away the commission and adjust their pay with a five percent on their
fixed-wage and promote team bonuses linked to overall sales growth and excellent customer
satisfaction metrics. She would make sure that her sales and showroom staff are comfortable
talking about their incentives and empower them to share the information with customers.
Teach them that the goal is to engage happily, and the sales will follow.
At the same time, Rosann should take advantage of the small size of the community to develop
a customer retention strategy. Invite customers to participate in surveys or to share their
favorite photos showcasing Schmidt products in their homes. Consider offering personalized
discounts or promotional offers as a perk of being connected to the brand.
Other powerful tools that Rosann should emphasize and communicate on are the budget
combinations and the easy credit terms as well as convenient layaway plans, and generous
return policies.
A diversification of advertising channels to connect with all buyers segments could emphasize
the use of social media to build relationships, create an email list to share information with
people who are interested in the brand. Invite people to sign up for a monthly newsletter and
share regular product news to remind them what the offers are. Also, make sure the company’s
website is a place that customers come for ideas, even if they are not yet looking to buy. Show
customers that the business is modern and relevant. Show off new products or feature current
products in different ways. The web design should be comfortable to use in all formats,
including traditional web browsers, tablets, and smartphones.