STORES Magazine - December 2008 - (Page 62)

NUTS AND BOLTS / OPERATIONS to determine which are worth rolling out to the entire chain. “This allows us to study the impact of separate ideas as well as the impact of synergies,” says David Cochran, vice president of Knoxville, Tenn.based QualPro. “Sometimes, ideas that aren’t good by themselves will work well when combined with other ideas. We can test them and see the results before incurring the cost of rolling out new programs throughout an organization.” Lacks begins each MVT session by requesting that all associates generate at least one cost-free, easy-to-implement idea that they believe would improve sales. It tests 15 ideas at 20 stores for four to six weeks; QualPro then analyzes the sales at the test stores to quantify how each idea affected sales. Lacks can then test the top ideas a second time, often at different stores, to verify its initial findings. After its first test, Lacks found that sales at test stores had increased 14 INITIAL MVT percent overall compared Furniture chain sees bottom-line results RESULTS with a 4 percent gain at from multivariable testing stores that did not particLacks’ sales ipate in the test. One BY LAURI GIESEN store that tested all five “best” ideas saw sales inhen Melvin and Janey from QualPro’s multivariable testing crease 24 percent; a store that tested Lack, owners of Lacks program (MVT), the Lacks realized four of five ideas subsequently deterHome Furnishings, a their business wasn’t too small after all. mined to be the “worst” saw sales deVictoria, Texas-based In the last two years, they’ve undertakcline 16 percent. chain of 40 furniture stores, first en four MVT sessions and seen resulting heard of a program that tested busisales increases as high as 48 percent at Just say hello ness variables, they thought it one store. Some of the most successful ideas were sounded exciting. They also believed To implement multivariable testing, a the simplest. For example, the chain extheir business was too small for business first compiles a long list of ideas perienced an uptick by changing how something so complex. that management and/or employees beemployees answer the phone. Previously, lieve might improve efficiencies or inthey would read a script that contained a “I was fascinated by it,” Janey Lack crease sales. That list is then winnowed lot of information about store locations says, “but then I talked to some people down to a more manageable figure (usuand so forth before they even said hello. who told me it was beyond the scope of ally no more than 30); half are tested in By shortening the message, they found most people.” one set number of stores, the remainder customers were more willing to stay on While attending a global marketing in a second group. QualPro uses a sophisthe line and discuss furniture needs. seminar where retailers of all sizes were ticated mathematical formula to study Another big gain was adjusting stores’ discussing the results they had gained the impact each change has on operations pick-up hours. “In Texas, a lot of our Lacks Tracks Its Best Ideas W up 14% 62 STORES / DECEMBER 2008 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - December 2008

STORES Magazine - December 2008 Contents Executive Editor's Page President's Page Wrap Rage Unraveled What Shoppers Think Courting a Comeback 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Cover Story: Navigating the Road Ahead Website Strategy Concept2Watch Online Customer Service International Marketing Green Retailing Online Merchandising Signage Operations Online Strategies Pricing Strategy Kiosks RFID Human Resources Loeb Retail Letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - December 2008

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