By Matthew Spieler
CHATTANOOGA, TENN.—Since holding its first convention 17 years ago, perhaps no other buying group has changed as much in terms of the way it projects itself to the public while maintaining its core business philosophy as Big Bob’s Flooring Outlet. So, it was no surprise at its recent annual meeting here and with the country in a prolonged economic slump, members were once again asked to adjust the way they do business to compete in the post-recession world.

David Elyachar, CEO of the franchise, admitted with the economy and business overall in unprecedented waters, “there are a multitude of answers on what is needed, but no one can see through this fog. So, we’re going to guess [what business will be like] on the other side.” While customer service remains a constant, he noted even that has changed with regard to how a business goes about keeping clients and recruiting new ones. “You can’t wait for business to come to you; you have to go out and cultivate it in order to get it.”

With that, executives rolled out two main strategies on which they want members to focus in addition to the group’s national advertising efforts: social media/networking and being more female friendly. And, because “we do not know what’s on the other side,” they presented more than four dozen best practices gleaned from the corporate stores, which were up 37% in 2009, as well as franchisees who have proven, effective methods of maintaining and growing their businesses.

On the latter, Elyachar said, “If properly implemented, each one can increase business by 1%, and our hope is that you take back 10 to 15 of them to your stores.”

With regard to the convention’s main themes, Scott Perron, Big Bob’s president, said “so many things have changed in the last three years—technology, buying habits, the labor pool—and, as a result, it is causing us to think differently.”

These changes, he added, have caused an overall attitude shift in how people shop and buy, and this mindset will last at least a generation—similar to people who lived through the Great Depression. As such, we can no longer just put out a sign and expect to sell.”

Invisible recruiters

Elyachar described the two-pronged social media/networking strategy as meeting the same objective: recruiting an invisible, non-commissioned sales force. “This will be the main focus on building business over the next five years, and we can’t be the last on board,” adding the way to get loyal customers and referrals in this new business environment is by utilizing both new— social media—and old—networking— techniques.

On the social media front, members were exposed to a series of presentations and guest speakers ranging from the basics—such as terminology and the many avenues this phenomenon travels— to tips and techniques on making these key tools in their arsenal to attract and keep customers. “There are hundreds of social media tools available, but you only need to focus on a few,” said Shannon Bilby, director of social media for Creating Your Space. “The important thing to recognize is that it does take a commitment of time to be successful.”

She added, while 95% of social media users “believe companies should have a social media presence,” with 85% of those saying it should be through the Internet, “it is not yet a replacement for traditional media. Social media is a bridging technique—a way of bringing people and information together.”

When it came to networking, Perron said today’s world demands owners, managers and salespeople connect “belly-to-belly,” meaning they need to be active in their communities by joining local clubs, organizations and social gatherings.

He described his own experience when he moved from Connecticut to Big Bob’s headquarters in Kansas 18 months ago. “I didn’t know anyone in town, but now I feel like I’ve lived here for 10 years. It’s amazing how quickly you get to know people this way. And, not only has a great deal of it been through word-of-mouth, I haven’t spoken a word about floor coverings—other than when I introduce myself.”

Female friendliness

The strategy of getting into social media and networking circles leads directly into the group’s push to be more female friendly. “We need to do business one person at a time,” Elyachar said. “No longer can we get by with just a commercial; we need to reach out and be where [she] gathers.”

Speaking of commercials, the franchise’s advertising and marketing initiatives, long known for its off-beat, comedic approach, will be “softened” to reflect the fact women are the main decision makers in purchasing floors. Humor will still be a driver, but it will be done via children and pets instead of a cigar-toting “Big Bob” dressed in a dress.

While the group remains committed to its cash-and-carry values, members, many of whom also run successful, well-respected full-service stores, are ready to adopt the franchise’s new thinking. Shawn Hames of Duncanville, Tex., and Big Bob’s member since 1992, felt “the concept away from traditional advertising, TV, into networking and Internet marketing is going to be a much better move for the group.”

In the end, Elyachar concluded customer service is still the most important thing. But now, “We will no longer tell her how we will service her, we will just do it—and do it above her expectations.” Even when it comes to profit, customer service stands above. “It’s all about taking care of customers—they are first. It doesn’t matter about profits. If you take care of your customers properly and professionally, profits and everything else will fall into place.”