Article Number : 4803 |
|
Article Detail |
|
 | |
| Date | 9/4/2009 9:04:37 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4803 |
| Abstract | By Emily Hooper ORLANDO, FLA.—Carpet One has never been a group to sit back on its heels, and its recent convention here did nothing but substantiate that claim. After a year or two of focusing on containing costs and renegotiating leases and agreements, the group is launching an... |
| Article | By Emily Hooper ORLANDO, FLA.—Carpet One has never been a group to sit back on its heels, and its recent convention here did nothing but substantiate that claim. After a year or two of focusing on containing costs and renegotiating leases and agreements, the group is launching an aggressive Internet marketing strategy geared toward reaching today’s shopper. The strategy shift is designed to give members the tools they need to increase profitability during the economic downturn. “Last winter, we went on the defensive and spent all our time showing members how to operate profitably in the event of a downturn in business,” said Eric Demaree, president of Carpet One. “Days of waiting for your advertising to bring customers into your store are over. If you don’t have a systematic way of aggressively going after customers, then you will not succeed in this market.” Going on the offensive centered around two components: 1. How to effectively use Web-based strategies and lead management to convert clicks into sales. 2. How to develop the skill sets to track, follow up, respond and sell to the Internet shopper. To that end, Carpet One previewed its new national Web site and fully integrated, automated lead management system designed to turn shoppers into paying customers. “It is not enough to just have a pay-per-click strategy,” Demaree said. “We built a national, local and fully integrated Web-based strategy that targets only qualified customers. No one else in the industry has anything like it.” Joel Schreier, owner of Home Carpet One in Chicago, summed it up: “This convention was all about strategy and going after the buyer. You have to put it right in front of them.” With members motivated to go on the offensive, Carpet One told the group they must first identify who the new target consumer has become. For starters, today’s buyer is concerned not only with the number on the price tag but also with the perceived value of the product, the savings from a sale or reduced pricing. “Today’s buyer is still willing to invest but wants to feel good about the money she spends,” said Theresa Fisher, Carpet One’s vice president of brand management and visual merchandising. “It’s all about finding the right product at the right price.” This is something Demaree stressed as well. “Consumers want an identifiable brand at a substantial discount. In the absence of an identifiable brand, we can have a percent-off discount that resonates with the consumer. But here’s the thing: The value statement has to be authentic. Value-added services are no longer value added. That’s just the entry price.” Home Carpet One’s Schreier agreed the customer has changed. “Buyers were once willing to pay a little more for excellent service, but that customer is gone,” he said. “She’s going to go for the best deal. It’s a recession mentality.” Today’s buyer is not simply a bargain hunter. In addition to concerns about product quality and price, an important part of her buying process deals with the social responsibility of her buying power. In other words, will buying this product help anyone other than her? “She believes in a bright future, making decisions for herself and those generations on either side of her,” Fisher said. But being good citizens and having the right product at the right price will all go for naught if the message fails to reach the consumer in a timely manner. Living in a 24-hour world has conditioned today’s buyer to expect simplicity, Fisher said. “In her role, she expects us to make it easy for her by providing information she needs, comparing products, and showing her features and benefits. She rewards retailers that make her life uncomplicated.” Members react Members were pleased to hear that Carpet One launched a new, 42-page Web site that makes the shopping process for the Carpet One buyer simple and more convenient. “I used to have a Web site for my store, but it was too much upkeep,” said James Ernst, Floor to Ceiling Carpet One, Dickinson, N.D. He plans to utilize Carpet One’s Web site and online advertising strategies. Schreier was also optimistic about the emphasis on the Internet. “Our store developed its own site and we currently generate three to four leads a day, but we’ll definitely utilize Carpet One’s site because it has resources than I can provide personally.” By giving its members more, Carpet One continues to attract new members. According to Demaree, not only is the group adding more members than it loses, but the members it adds have an estimated annualized purchase volume greater than those it loses. Jason Swanson of River City Flooring in Red Wing, Minn., joined Carpet One the week before convention. “I joined Carpet One because of the buying power, private labels and marketing, which I couldn’t do on my own.” |