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Thursday, September 18, 2008

Opinion: Is New Monitoring of Sales Staff the Answer for Retail?

Your description of AnnTaylor Stores' human workforce-management system ("Retailers Reprogram Workers in Efficiency Push," page one, Sept. 10) is an astonishing example of poor salesperson management. First, it focuses on short-term costs at the expense of long-term profits. Instead of demanding maximum sales per hour, AnnTaylor should seek to determine the optimal sales per hour to maximize long-term profitability by ensuring customer satisfaction. Second, AnnTaylor management is misusing its statistical metrics. If it takes an average of two minutes to help someone try on clothes, then it will take 50% of the employees longer to help a customer. Demanding that everyone be "above average" could only be achieved in Lake Wobegon. Third, employees hate such production-line systems where the customers are treated like widgets. Over time, their discontent will spread from employees to customers, decreasing customer loyalty and further eroding the profits.

Who's going to be loyal to a store that disrespects its customers with high-pressure sales tactics?

AnnTaylor has fallen into the classic mistake of reducing costs on the backs of front-line employees and cutting customer service. Retailers like Circuit City and Home Depot have learned this lesson the hard way. Managing employees like a just-in-time delivery system will only lead to lower customer satisfaction, customer defection and declining profitability.

Michael J. Howley, Ph.D.
Assistant Professor of Marketing
Drexel University

Rolph Anderson, Ph.D.
Professor of Marketing
LeBow College of Business
Drexel University
Philadelphia

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I am really excited about the institution of workforce-management systems at some large apparel retailers. I love it, and have been preaching for years about scheduling to traffic and getting the "right" sales people on the floor. There will, of course, be a shakeout and an upset of the associates, but this is a major step in getting people who can really sell and take care of the customer's needs on the floor when they are needed most.

For those retailers who choose the new workforce software to put the right people in place and access technology to bring the associate and the customer together when service is needed, I see tangible improvement of the in-store customer experience. This strategy will move "customer satisfaction guaranteed" from the memo wall in the break room, to real customer satisfaction on the sales floor, and significant improvement in the bottom line.

Marge Laney
Seabrook, Texas

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There is a better way to increase sales: It's called supervision and improving the customer experience so customers will return and recommend the store to others.

Jordan Berliner
Alexandria, Va.

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Anyone can improve the bottom line by cutting hours, closing stores and laying off employees. It takes a leader and merchant to improve the top line.

George Hardy
Raleigh, N.C.