GEM Class
GEM Class
Culmination of GEM
KPI Review
Practice Activity
Culmination of the GEM
GEM Promise
“We will meet the guest where they are using our own authentic approach. We will seek understand our guests needs, known and unknown, and help them to create a unique space in a home they love!”
LIVING SPACES GEM
The Living Spaces Guest Engagement Model gives our Guests a reason to come back to our stores!
It starts with how we…
…with each Guest.
What are Execution Drivers?
New Execution Drivers
Sales Floor/Design
Establish Guests Time Frame
Start a cart
Ask for the Sale 100%
Revive
Rest Test <intro – sleep system>
Top-Down Selling
Ask for the Sale 100%
Omni
Establish Guests Time Frame
Start a Cart
Ask for the Sale 100% and Care Free
Execution Drivers
By consistent execution of these 3 behaviors will lead to success against your goals.
Execution Drivers – Sales Floor/Design
Establish Guests Time Frame
1
Start a cart
2
Ask for the Sale 100%
3
RETAIL SALES
INITIATIVES
GUEST ENGAGEMENT AT LIVING SPACES
These 6 initiatives are what make us different from our competitors, and are representative of the Trust and Value we present to our Guests.
Revive
1
2
3
Design
Care Free
Omni-Channel
4
5
6
Financing
Commercial and Trade
OMNI-CHANNEL
COMMERCIAL
AND TRADE
DESIGN
CARE FREE
FINANCING
AGENDA
RETAIL SALES
INITIATIVES
REVIVE
We sell sleep
Mattresses make a huge difference in people's lives
You can literally change someone's life for the better
Most guest have no idea we sell mattresses
Revive should represent ____�of your stores total sales.
Many team members don’t realize that our mattress sales count for the highest profit margins in our entire store!
18%
We have the competitive advantage in Revive!
Top National brands
1
We have the competitive advantage in Revive!
Top National brands
Endless aisle online
1
2
We have the competitive advantage in Revive!
Top National brands
Endless aisle online
Great exclusives
1
2
3
We have the competitive advantage in Revive!
Top National brands
Endless aisle online
Great exclusives
Adjustable bases
1
2
3
4
We have the competitive advantage in Revive!
Top National brands
Endless aisle online
Great exclusives
Adjustable bases
Premium accessories
1
2
3
4
5
IN-STORE
ONLINE
SLEEP EXPERT
Revive team members have the opportunity to elevate their role and become a certified Sleep Expert!
Benefits
SLEEP EXPERT
Revive team members have the opportunity to elevate their role and become a certified Sleep Expert!
How to Qualify
Revive
WHY IS REVIVE IMPORTANT?
WHAT IS THE COMPANY GOAL?
HOW DO YOU CONTRIBUTE THIS DAILY?
Activity
Lets practice a TO to Revive from your “Home Department”
OMNI-CHANNEL
COMMERCIAL
AND TRADE
CARE FREE
FINANCING
AGENDA
RETAIL SALES
INITIATIVES
DESIGN
REVIVE
Unfair Advantage
The offering that Living Spaces has curated for our guests in unparallel.
Design should represent ____�of your stores total sales.
When Guests choose Special Order options, we actually account for higher profitability on those items!
20%
Reasons why Special Orders�lead to high profitability:
Larger Tickets
1
In-Stock Order
Special Order
Reasons why Special Orders�lead to high profitability:
Larger Tickets
Lower Transportation Costs
1
2
Reasons why Special Orders�lead to high profitability:
Larger Tickets
Lower Transportation Costs
Loyalty
1
2
3
DESIGN SPECIALIST
Specialty Sales team members have the opportunity to elevate their role and become a certified Design Specialist!
Benefits
DESIGN SPECIALIST
Specialty Sales team members have the opportunity to elevate their role and become a certified Design Specialist!
How to Qualify
Special Orders
WHY IS SPECIAL ORDERS IMPORTANT?
WHAT IS THE COMPANY GOAL?
HOW DO YOU CONTRIBUTE THE THIS DAILY?
OMNI-CHANNEL
COMMERCIAL
AND TRADE
DESIGN
FINANCING
AGENDA
RETAIL SALES
INITIATIVES
CARE FREE
REVIVE
Care Free should represent ___�of your stores total sales.
(On Applicable Items)
6.5%
Care Free is the #2 Loyalty Driver!
WIN
WIN
Guests are more likely to make future purchases with Living Spaces when they purchase Care Free!
5
10
years furniture
years
adjustable bases
CARE FREE GOALS
Industry – Living Spaces
Care Free
WHY IS CARE FREE IMPORTANT?
WHAT IS THE COMPANY GOAL?
HOW DO YOU CONTRIBUTE THIS DAILY?
Activity
Let’s practice a full Care Free presentation on a product from your “Home Department”
COMMERCIAL
AND TRADE
DESIGN
CARE FREE
FINANCING
AGENDA
RETAIL SALES
INITIATIVES
OMNI-CHANNEL
REVIVE
____ of Guests�start their journey online!
Omni-Channel represents the future of retail. It starts with adapting to how our Guests shop!
80%
OUR PROMISE
“We will meet the Guest where they are using our own authentic approach. We will understand our Guests needs, known and unknown, and we will embrace our online experience.”
Omni-Channel means that we embrace our online experience, tools, and modern approach to how people are shopping.
In our stores, we do this in two major ways!
ONLINE CHAT
Our Retail Stores and Guest Services teams have dedicated staff to support our Chat platform.
Without having to leave their home, Guests can utilize this system to get answers quickly.
VIDEO CHAT
Our Retail Stores take it to the next level with Video Chat capabilities through our tablets, allowing Guests to see a table or sofa in real time!
Benefits
Activity
Let’s practice a scenario where we ask the guest what they have seen on our website that we can show them in person.
OMNI-CHANNEL
COMMERCIAL
AND TRADE
DESIGN
CARE FREE
AGENDA
RETAIL SALES
INITIATIVES
FINANCING
REVIVE
Financing through Living Spaces�is the #1 Loyalty driver!
Guests who finance through Living Spaces, often shop with us for a long time and are loyal to the brand!
Create a “Forever Living Spaces Guest” and increase store profitability with our financing:
Exclusivity
A Living Spaces card gives Guests a reason to come back and provides the ability to unlock amazing offers with Synchrony.
Create a “Forever Living Spaces Guest” and increase store profitability with our financing:
Exclusivity
A Living Spaces card gives Guests a reason to come back and provides the ability to unlock amazing offers with Synchrony.
Special Promotions
Get the best promotions available, all-year round.
Create a “Forever Living Spaces Guest” and increase store profitability with our financing:
Exclusivity
A Living Spaces card gives Guests a reason to come back and provides the ability to unlock amazing offers with Synchrony.
Special Promotions
Get the best promotions available, all-year round.
Increased Buying Power
Guests who finance often have tickets 2-3 times larger than those using their own credit card. They also tend to buy Care Free, Special Orders and Revive product more often.
Financing
WHY IS FINANCING IMPORTANT?
WHAT IS THE COMPANY GOAL?
HOW DO YOU CONTRIBUTE THE THIS DAILY?
Activity
Let’s practice a selling financing from your “Home Department”
OMNI-CHANNEL
DESIGN
CARE FREE
FINANCING
AGENDA
RETAIL SALES
INITIATIVES
COMMERCIAL AND TRADE
REVIVE
Commercial + Trade�Clients�Profitability
Our “To the Trade” program�gives our Commercial and Trade clients�unique benefits for shopping with us!
WHO ARE OUR COMMERCIAL CLIENTS?
These clients are expert shoppers that typically make purchases for other businesses or clients of their own.
These clients are different from our residential Guests, and there are two different types of Commercial and Trade clients.
WHO ARE OUR COMMERCIAL CLIENTS?
These clients are different from our residential Guests, and there are two different types of Commercial and Trade clients.
Business Owners
(or Business Partners)
May be purchasing on behalf of their:
Trade Clients
Those who are purchasing
on behalf of a client, who are:
“TO THE TRADE” PROGRAM BENEFITS
These are benefits members receive if they sign up (for free) with us.
“TO THE TRADE” PROGRAM BENEFITS
These are benefits members receive if they sign up (for free) with us.
Dedicated Trade Account Team
“TO THE TRADE” PROGRAM BENEFITS
These are benefits members receive if they sign up (for free) with us.
Tier Program
Increased perks based on annual spend.
Dedicated Trade Account Team
“TO THE TRADE” PROGRAM BENEFITS
These are benefits members receive if they sign up (for free) with us.
Business Perks
Tier Program
Increased perks based on annual spend.
Dedicated Trade Account Team
“TO THE TRADE” BASE MEMBERSHIP
Join the Program
All our Commercial + Trade Guests can enjoy a wide variety of benefits with no minimum spend.
Base Benefits:
“TO THE TRADE” PROGRAM TIERS
Tiered rewards that continue to enhance as “annual spend” increases.
SILVER
$5K - $25K
$5,000 - $25,000 annual spend
“TO THE TRADE” PROGRAM TIERS
Tiered rewards that continue to enhance as “annual spend” increases.
SILVER
$5K - $25K
GOLD
$25K - $50K
$25,000 - $50,000 annual spend
“TO THE TRADE” PROGRAM TIERS
Tiered rewards that continue to enhance as “annual spend” increases.
SILVER
$5K - $25K
GOLD
$25K - $50K
PLATINUM
OVER $50k
Over $50,000 annual spend
Commercial + Trade�Clients�Profitability
Our “To the Trade” program�gives our Commercial and Trade clients�unique benefits for shopping with us!
Commercial + Trade�Clients�Profitability
Identifying and signing up trade clients can significantly impact your store profitability.
�Clients
MISSED OPPORTUNITY
ACTIVITY:
MISSED OPPORTUNITY
ACTIVITY:
MISSED OPPORTUNITY
ACTIVITY:
MISSED OPPORTUNITY
ACTIVITY:
MISSED OPPORTUNITY
ACTIVITY:
MISSED OPPORTUNITY
ACTIVITY:
What did we miss with this Guest?
❒ Nothing, we closed a sale!
❒ We didn’t mention our “To the Trade” program
❒ Potential future business
UNIDENTIFIED CLIENTS
Guest shops in store
to furnish their lobby.
Team Member
doesn’t inquire or sign Guest up for program.
Client spends $6,000
and leaves happy
with their purchase!
By not discovering a Commercial and Trade client,
we only gain a fraction of their potential business.
DISCOVERING YOUR GUEST NEEDS
ACTIVITY:
DISCOVERING YOUR GUEST NEEDS
ACTIVITY:
DISCOVERING YOUR GUEST NEEDS
ACTIVITY:
DISCOVERING YOUR GUEST NEEDS
ACTIVITY:
DISCOVERING YOUR GUEST NEEDS
ACTIVITY:
DISCOVERING YOUR GUEST NEEDS
ACTIVITY:
DISCOVERING YOUR GUEST NEEDS
ACTIVITY:
DISCOVERING YOUR GUEST NEEDS
ACTIVITY:
How did we do in�securing this potential Trade Guest?
❒ We missed it again! ❒ Way better!
IDENTIFIED CLIENTS
Guest shops in store
to furnish their lobby.
Team Member
discovers Guest is a business owner, signs them up for program.
Client spends $6,000
and leaves happy
with their purchase!
Client receives follow-up engagement from an
Account Manager.
Client and Account Manager partner on future projects.
Client purchases again,
both in-store and over phone, with incentives.
more $$$
No matter what department you’re in,�everyone plays a role in promoting the�“To the Trade” program to prospective Guests!
When done consistently, we create a funnel
of repeat business for our teams!
LIMITLESS SPEND POTENTIAL
Signing up Commercial + Trade clients provides them a personal Account Mgr to work with on a deeper level and to connect them to furniture solutions.
Knowing who qualifies and why it’s so critical to sign up these clients, will help drive incremental revenue to your store as well as develop future revenue streams.
OUR COMMERCIAL AND TRADE CLIENTS�CAN PRODUCE CONTINUAL REVENUE�FOR YOUR TEAMS!
Senior Living Centers
OUR COMMERCIAL AND TRADE CLIENTS�CAN PRODUCE CONTINUAL REVENUE�FOR YOUR TEAMS!
Designers from Design Firms
We can host Design Firm Luncheons
to encourage their designers
to shop with us.
OUR COMMERCIAL AND TRADE CLIENTS�CAN PRODUCE CONTINUAL REVENUE�FOR YOUR TEAMS!
Designers for Home Builders
Model Home Plans,
Grand Opening Events,
Coupons for New Homeowners
OUR COMMERCIAL AND TRADE CLIENTS�CAN PRODUCE CONTINUAL REVENUE�FOR YOUR TEAMS!
Home Stagers
Events in store with additional stagers,
DIY events to assist in design skills
OUR COMMERCIAL AND TRADE CLIENTS�CAN PRODUCE CONTINUAL REVENUE�FOR YOUR TEAMS!
Rehab Facilities
Future Location Set-Ups,
Remodels,
Replacement Furniture
OUR COMMERCIAL AND TRADE CLIENTS�CAN PRODUCE CONTINUAL REVENUE�FOR YOUR TEAMS!
Vacation Rental Owners
Additional Rental Remodels
(They normally have more than one)
Replacement Furniture
OUR COMMERCIAL AND TRADE CLIENTS�CAN PRODUCE CONTINUAL REVENUE�FOR YOUR TEAMS!
Property Mgmt Companies
Grand Opening Events
Events for their Homeowners
Revive should represent what percentage of your stores total sales?
❒ 6% ❒ 20%
❒ 10% ❒ 25%
Care Free should represent what percentage of your stores total sales?
❒ 6.5% ❒ 20%
❒ 10% ❒ 25%
Most Guests start their�shopping journey online.
❒ True ❒ False
Living Spaces offers financing�for which reasons?�(Select All that Apply)
❒ Exclusivity
❒ Special Promotions
❒ So we can include hidden fees
❒ Increased Buying Power
Who would be considered a�Commercial and Trade Guest?�(Select All that Apply)
❒ Business Owners
❒ Interior Designers
❒ Any residential Guests who spend $5,000 with us
❒ An actor who was once in a commercial
Activity
Let’s practice a scenario where we ask the guest if they own a business that may beneit from enhanced service from Living Spaces from your “Home Department”
COMPARING
FURNITURE COMPETITORS
COMPARING POLICIES
COMPETING RETAILERS
SHOWCASE SHOWDOWN
COMPARING
FURNITURE COMPETITORS
AGENDA
COMPARING POLICIES
SHOWCASE SHOWDOWN
COMPETING
FURNITURE RETAILERS
COMPARING
FURNITURE COMPETITORS
AGENDA
COMPETING FURNITURE RETAILERS
What are some major furniture retailers that you know of?
NATIONAL BRANDS
Here are some brands you should be aware of
COMPETING FURNITURE RETAILERS
NATIONAL BRANDS
COMPETING FURNITURE RETAILERS
Why do customers choose to shop at these retailers either online or in person?
Brand Recognition
The right style
The right price and quality
Are these important to you?
COMPETING RETAILERS
SHOWCASE SHOWDOWN
COMPARING
FURNITURE POLICIES
COMPARING
FURNITURE COMPETITORS
AGENDA
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
There are key differences on how retailers' price their products
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
There are key differences on how retailers' price their products
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Everyday Low Prices
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Sales and Coupons
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Online Specific Pricing
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Paid Membership Pricing
Paid memberships may give exclusive pricing or additional services
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Retailer | Offer |
Crate & Barrel | 10% back in rewards OR 6-months no interest |
Pottery Barn | 5% back in rewards OR 6-months no interest |
Target | 5% off |
Walmart, Costco + Amazon | 2-5% back in rewards |
Ashley | 6-72 months financing with variable pricing Longer terms cannot be combined with discounts |
Bob’s Discount | 6 or 12 months no interest 30 months at 9.99% |
Credit Card Offers
Here are some actual financing promotions
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
What are your thoughts on how we price our product compared to other retailers?
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Let’s discover how retailers treat returns
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Determined by Seller
Walmart.com | Amazon | Overstock
These online retailers vary greatly with their return policies
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Final Sale
Determined by Seller
Ashley* | Williams Sonoma Brands* | Most Local Home Furnishing Retailers
Walmart.com | Amazon | Overstock
Final sales are common in the home furnishings industry!
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Final Sale
Determined by Seller
Returns allowed with terms
Ashley* | Williams Sonoma Brands* | Most Local Home Furnishing Retailers
Walmart.com | Amazon | Overstock
Living Spaces | Wayfair Brands | Costco | RH | Crate & Barrel | Ikea | Target | Walmart
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Let’s see how easy it is to return
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Let’s see how easy it is to return
RETURN POLICY
CONSIDERATIONS
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Return at any time
RETURN POLICY
CONSIDERATIONS
Restoration Hardware
Costco
30 days to return
Crate & Barrel
7 days to return
Wayfair
30 days to return
IKEA
180 - 365 days to return (depending on if it’s opened)
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Keep in mind that most home furnishing retailers are FINAL SALE and not all return policies are created equal.
What is the risk purchasing at other retailers?
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Free
Tiered Pricing
There are two types of delivery options
with limitations
with options
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Free… with limitations
Outdoor Drop Off
Indoor Drop Off
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Pickup Options
Furniture is commonly shipped in multiple boxes and requires assembly. Products are usually in the original packaging or wrapped for pickups.
Pickup at local DC
Free pickups
Pickup at local store if allowed
No pickup (only delivery offered)
Pickups with a fee
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Tiered Pricing
Shipping based on distance
Full-Service delivery
May only include in-box delivery
Pricing can vary based on zip code
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Price based on assembly
“Assembly” may be offered or contracted through a third-party company such as “Handy”
Companies like Wayfair, Ikea and Amazon charge their customers a high premium based on the amount of labor required for the pieces
COMPARING FURNITURE POLICIES
Pricing | Returns | Delivery
Full-Service or White Glove
Flat rate options are not as common as you’d think
Offered by premium retailers such as Pottery Barn, Restoration Hardware and Living Spaces
Price is usually based on distance and can range from $99 - $599+ depending on the retailer
Usually includes in-home assembly and trash removal
COMPARING POLICIES
COMPETING RETAILERS
SHOWCASE
SHOWDOWN
COMPARING
FURNITURE COMPETITORS
AGENDA
Activity
Showcase Showdown
Furniture Showcase
FURNITURE SHOWCASE
Outdoor Dining
Guess the total price with protection + assembly + delivery + tax
Perceived Value
LIVING SPACES
WAYFAIR
FURNITURE SHOWCASE
Outdoor Dining
$1519 Sale price
$204 5 year protection plan
$254 Assembly
$126 Outdoor Drop Off
$117 Tax
$675 Everyday Low price
$101 5 year Care Free
$99 Full-service delivery
$138 Tax
2 Day Delivery
8 - 10 Weeks
Total: $942
Total: $2016
WAYFAIR
LIVING SPACES
FURNITURE SHOWCASE
Sofa Sectional
Price of Brand Recognition
Guess the total price with protection + assembly / delivery + tax
LIVING SPACES
RESTORATION HARDWARE
FURNITURE SHOWCASE
Sofa Sectional
$8395 Base price
N/A No protection plans
$249 Full-service delivery
$670 Tax
Total: $9315 without membership
Total: $7148 with membership
Total: $1710
$1295 Everyday Low price
$194 5 year Care Free
$99 Full-service delivery
$122 Tax
LIVING SPACES
RESTORATION HARDWARE
FURNITURE SHOWCASE
Custom Dining Chair
The Right Style
Guess the total price with protection + assembly / delivery + tax
LIVING SPACES
POTTERY BARN
FURNITURE SHOWCASE
Custom Dining Chair
POTTERY BARN
LIVING SPACES
Total: $868
Total: $742
The Right Style
$600 Special Order
$90 5 year Care Free Plan
$0 Free Shipping
$52 Tax
$649 Made to Order
N/A No protection plans
$149 Full-service delivery
$70 Tax
2 Chairs
Single Chair
FURNITURE SHOWCASE
5 Piece Bedroom Set
Guess the total price with protection + assembly / delivery + tax
COSTCO.COM
LIVING SPACES
Costco Has It
FURNITURE SHOWCASE
5 Piece Bedroom Set
Costco Has It
$1899 Limited Sale price
$2399 Regular price
N/A No protection plans
$0 White Glove delivery
$153-$192 Tax
Sale price $2052 + Membership
Regular price $2591 + Membership
$1900 Everyday Low price
($285) Care Free optional
$99 Full-Service delivery
$154 Tax
Total $2153
LIVING SPACES
COSTCO.COM
COMPARING FURNITURE POLICIES
Competition Value Recap
COMPETITOR FACT SHEET
This resource will guide you through the national brands policies and facts
COMPARING FURNITURE POLICIES
Recap
What did you learn about our competition?
How do we compare when you consider the total value of our product offering ?
COMPARING FURNITURE POLICIES
Recap continued
Not all delivery options are created equal
Initial pricing can be deceptive
KPI Review
What is SPH
What is your departments SPH goal?
Lets look at Team Sales Ranker�
Activity
TSR Review
TSR Review
Where are you in SPH?
Do you have a deficit to the SPH goal?
If you had a gap in TPH, what are behaviors you could practice?
If you had a gap in RPT, what are behaviors you could practice?
Practice Activity
Scenario: