Retailers Benefits and Case Example

Challenge

A large, national retailer with hundreds locations has a customer traffic demographic that is 40% small business and small office/home office (SOHO) and 60% consumer. Despite customer surveys that indicate 80% of this traffic likes buying their technology at retail, sales of technology have been largely consumer driven and led by back-to-school and holiday promotions.

Stiff competition from other retailers and Internet resellers continues to commoditize technology sales, necessitating the exploration of service strategies to increase rates of higher margin attachments.

 

Solution

  • The retailer implemented iTeam's Service-as-a-Product™ (SaaP™) turnkey approach and is now offering packaged installation services for home theater and SOHO information technology (e.g. PCs, notebooks, networking and printers) through its in-store sales associates and e-commerce website.
  • The retailer uses the iTeam selling tools, on-line service selector and sales support experts to facilitate sales with in-store salespeople and customers serving themselves on the retailer's e-commerce website.
  • iTeam Service Advisors and the iPlatform™ make scheduling and planning the service simple, fast and convenient for the customer. Customers are contacted within 24 hours of the time that they made the purchase, often on the same day. The average time to complete the installation is three business days.
  • iTeam's field technicians provide consistent professional and expert in-home and on-site service delivery nationwide.

 

Results

  • The retailer has expanded its assortment, and sale of information technology to small businesses and home theater consumers has increased.
  • The downward technology product margin pressure has been offset with sales of higher margin in-demand services.
  • Average technology transaction value has increased due to the sale of more and larger flat screens, business level PCs, and networking products with installation.
  • Delivery of personalized customer experiences has increased competitive differentiation and customer loyalty.