Smarter' promotional offers created by database-driven technology tested in a Brylane call center led to sales increases and heightened customer service, CEO Russell Stravitz said. So now the catalog retailer is rolling out the software to all its call centers nationwide.
The tool supports call center staff by prompting them to make up-sell product recommendations to customers calling in their orders by telephone. The product suggestions are customized to the individual customer, to some degree, because past purchase history is taken into account.
'The software has access to our database [and information about] what a customer is buying and what her purchase history is -- as well as that of like customers. The software creates a smarter offer than our customer service representatives can make' using Brylane's existing systems, Stravitz said.
Brylane's proof-of-concept test compared performance of its own, internally developed product recommendation systems with that of technology developed by Net Perceptions, Minneapolis, over a 13-week period.
Sales increases were evident among the group using the new technology, Stravitz said, although he declined to cite specific results.
'Their offers were positively received; we sold more, and our customer service representatives were better able to serve the customer. They were smarter.
'Based on that, we decided to move forward and establish a much broader use of the product,' he added. 'We are ready to go to the next level and install the product throughout our call centers.' The implementation is expected to be complete this spring, Stravitz said.
Call center staff employed by catalog retailers use a wide variety of product recommendation strategies, some of which are script-driven. For example, a script may dictate that call center representatives processing an order for a 3/4-length coat should suggest to that customer a specific scarf to go with the coat.
In contrast, the new technology used by Brylane would first take into account a customer's past purchases as well as that of other customers sharing similar attributes. Based on this information, the call center employee may be prompted to suggest a handbag instead of a scarf, because the customer's purchase history indicates she is more receptive to buying a handbag.
Stravitz declined to detail Brylane's traditional product recommendation strategy but said the new systems deliver more targeted, and therefore more effective offers because the suggestions are based on personal preferences.
'This is an example of where technology really is helping us provide better service and sell more, and that is the name of the game,' he said. 'The main goal was to facilitate our customer service representative and help her serve the customer better. One way to do that is to sell the customer things that she would want.'
Retailers have not fully embraced these sophisticated types of tools, but that is beginning to change, said Jeff Roster, senior analyst, global industries, retail, Gartner Dataquest, which is part of the Stamford, Conn.-based Gartner technology research company.
'Retailers, as of yet, have not adopted this technology because it hasn't been available [and they] are just beginning to understand what opportunities this technology presents,' Roster said.
Companies will turn to this type of solution to better understand buying behaviors of their customers and to serve them more effectively. 'With retail store personnel turnover approaching 100 percent over the course of a few years, this technology really makes sense,' he said.
'When I was a kid and went to the local Penney's with my mom, we'd have the same salesclerk. She was in the same department my entire childhood so she knew us and could offer assistance. Those days are long gone,' Roster said.
Stravitz said the new technology will go into call centers first, but the plan is to incorporate it into electronic commerce operations as well. Not only will the new capability be used to drive Web site-driven sales, but when integrated with call center operations, Brylane will gain a more complete view of its customers whether they make purchases via telephone or Internet.
Brylane, whose catalog operations include King Size, Lane Bryant, Roaman's, Jessica London, Lerner and Chadwick's of Boston, is part of France's Pinault-Printemps-Redoute.
Sports Authority Targets Turnover Risks
Looking to improve retention, The Sports Authority here plans to enhance its kiosk-based job application and screening process by using a new service designed to identify employment candidates who are high turnover risks.
Unicru, Beaverton, Ore., which previously provided the retailer with the screening solution, will also provide this service.
Interested in its employees' potential length of tenure, Sports Authority will use the service to analyze all applicant data accumulated by the kiosk solution since last year's rollout, and then look for hidden trends among the employees who left the company. Sports Authority would then avoid hiring applicants whose screening test answers are similar to those of past employees with short tenures.
'I could say we would be happy even if we impact turnover by 10 percent, but we expect greater than a 10 percent reduction,' said Laurie Saylor, director of employee relations and staffing at Sports Authority.
Patagonia Finds Way to Control Product Flow
Apparel designer, wholesaler and retailer Patagonia is relying in a warehouse management solution from Manhattan Associates, Atlanta, to help streamline and control the flow of product throughout its Nevada-based distribution center.
'Our ability to execute has allowed us to separate ourselves from the competition,' said Mike Busch, director of information services for Patagonia. 'It gave us the capability to fulfill online sales quickly and ensure that items were correctly packaged and shipped on time.'
Busch said the solution recently helped the company scale up fulfillment operations in time for the 2000 holidays.
Modell's Set to Roll Out In-Store Solution
In a move to ensure more efficiency at the point of sale as well as the back office, Henry Modell & Co. here plans to overhaul the technology infrastructure of its Modell's Sporting Goods stores.
Improvements will include new POS terminals from Wincor Nixdorf, Austin, Texas, and an in-store software application from Applied Digital Solutions, Palm Beach, Fla.
Hans Kantor, vice-president, information technology for Modell's, said the new system will 'clearly meet our requirements both now and into the future.'
Rollout of this technology is expected to begin early this year and should be completed in 2002.
