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R&R Strategies for Service Excellence

Raleigh & Rosse (R&R) was a luxury retailer known for excellent customer service. To motivate employees, R&R introduced a sales per hour metric to instill an entrepreneurial spirit. However, the strict metric violated labor laws and damaged employee morale. Revenues declined as the reputation and brand loyalty suffered. To remedy this, R&R needs to improve the metric to comply with laws while also giving employees more encouragement through respect, training, and a points-based system rather than stress.

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vivek mithra
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861 views10 pages

R&R Strategies for Service Excellence

Raleigh & Rosse (R&R) was a luxury retailer known for excellent customer service. To motivate employees, R&R introduced a sales per hour metric to instill an entrepreneurial spirit. However, the strict metric violated labor laws and damaged employee morale. Revenues declined as the reputation and brand loyalty suffered. To remedy this, R&R needs to improve the metric to comply with laws while also giving employees more encouragement through respect, training, and a points-based system rather than stress.

Uploaded by

vivek mithra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
  • Introduction
  • About the Company
  • R&R’s Customer Service
  • The R&R Ownership Culture
  • Sales per Hour (SPH)
  • Problems Faced by SPH
  • Possible Solution

Raleigh & Rosse: Measures to motivate exceptional

service
Group-4
19116 Trupthi Mn
19120 Vivek Mithra
19122 Abhishek Nayak
19126 Aman Sharma
1912 Anamika Roy
19128 Anirudha R
19129 Ankitha Nayak B
19132 Ayushi Jaiswal
19137 Divyasree Bs
About the company

 Raleigh and Rosses (R&R) was a privately held specialty retailer of luxury goods.
 The company was founded by Michael Raleigh and Conor Rosse
 Besides selling luxury goods and items the stores established a reputation for customer
services among well-heeled consumer
 R&R’s main competitors were high end department stores such as Nordstrom, Sakes Fifth
Avenue & Neiman Marcus.
R&R’s Customer Service

 R&R’s customer service and deep customer loyalty was always a core values.
 The store managers core function was to hire, train and continually motivate the sales
associates.
 For R&R Sales associates it was common practice to deliver an item to the customers
The R&R Ownership Culture

The culture for new team members who were going to share company values are
 R&R were shifted focus from experienced sales professionals to college graduates and
company invested heavily in ‘R&R University’ to train them.
 R&R maintained internal promotion system by improving the experience level of its
middle management team
 They also revamped sales associate’s commission system
 They invested in IT system that provides extensive analysis of their store operations and
managers authority use these systems to optimize merchandise mix.
 Greater autonomy on staffing, scheduling and other aspects to their stores manager.
 The strategy of R&R was “Own your business, own customer relationships.”
Sales per hour(SPH)
 The SPH was introduced to instill and reinforce an entrepreneurial sprit instore managers that would permeate the
store.
 SPH was calculated using the formula: (The total sales-merchandise returned by clients)/Number of hours
worked.
 SPH had created competitions among employees by giving sales contest, honours called “client all stars”
Problems faced by SPH

 R&R‘s strict measure that was not accepted by the majority. It created a dilemma between
“selling time” and “non-selling hours”
 The SPH was also violating the state wage and hour laws. They were ordered to improve
timekeeping systems and ordered to pay back the affected employees.
 The New York time reported that R&R could be liable as much as $50 million. For these
allegations, R&R started to lose their earned reputation.
 R&R’s revenue and sales continued to decrease due to loss of brand loyalty, where in
recession period every luxury goods industry showed signs of recovery.
Possible solution

 Improving the SPH program as per state laws


 Giving more Encouragement than stress:
 Making them feel respected and important
 Implementation of training and mentor
 Through points enchasing system.

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