PC World: A case study - Change Behaviour. Change Results.

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PC World: A case study - Change Behaviour. Change Results.
PC World:
A case study

               Change Behaviour. Change Results.™
PC World: A case study - Change Behaviour. Change Results.
“Proper, structured sales process, which is currently
                            not used by most staff, particularly new starters.”

                            Background                            as to accurately determine a        The Milestones framework is
                                                                  detailed picture of customers’      incremental – therefore for a
                            PC World operates stores across       experiences, identify               Customer Advisor to attain the
                            the UK that specialise in selling     opportunities for improvement       top score of blue, they must
                            computing solutions to both           and gather information to be        demonstrate red, amber, green
                            personal and business customers.      used in training content.           and blue.

                            After a change in their stores’       UK pilot observations allowed       The Milestones framework,
                            organisational structures, PC         the development of a robust         coupled with the detailed findings
                            World needed help to ensure that      methodology that used a             from the research stages,
                            their staff could provide excellent   specifically designed behavioural   allowed Huthwaite to work with
                            customer service and improved         analysis framework so as to         PC World to develop a training
                            sales performance. Key                record the verbal behaviours        programme that would enable
                            performance indicators for the        of Customer Advisors during         Customer Advisors to
                            project were identified as being      interactions, and the outcomes of   demonstrate effective behaviours
                            conversion rates, add-on sales        interactions – including            in interactions so as to increase
                            and the customer satisfaction         conversion, add-on sales and        sales and service performance.
                            measure of Net Promoter               customer service levels.
                            Score. Net Promoter score is a                                            Training
                            measure based on the question         Statistical analysis enabled the
                            “How likely would you be to           identification of those verbal      Huthwaite worked closely with
                            recommend this store to a             behaviours that had the greatest    PC World to develop a series
                            friend or colleague?” with a score    impact on conversion, add-on        of training initiatives to embed
                            of 1 (low) to 7 (high). Results are   sales and Net Promoter score,       Milestones into stores throughout
                            split into Detractors (scoring 1,     and allowed detailed analysis       the UK:
                            2 or 3), Neutral (scoring 4 or 5)     of the optimum sequence of
                            and Promoters (scoring 6 and 7).      behaviours.                         Pilot Programme
                            The final Net Promoter score is                                           So as to test the delivery
                            determined through the                Using this analysis of behaviour    mechanisms for the Milestones
                            subtraction of the number of          against outcome, Huthwaite          project, Huthwaite conducted
                            Detractors from the number of         was able to create a ten-stage      a training pilot in one store –
                            Promoters, and is proven to be        model for optimum customer          Junction 9 in Birmingham. The
                            directly related to the growth of     interactions:                       store gave their support of the
                            business.                                                                 project, identified an impact on
                                                                  M I L E S T O N E S
                                                                                                      conversion, add-on sales and
                            Huthwaite began working with                                              customer satisfaction as a result
                                                                  Each stage corresponds with a
                            PC World to measure current                                               of the training, and helped
                                                                  stage of an interaction and
                            levels of KPIs and identify                                               Huthwaite modify the delivery
                                                                  contains information as to levels
                            opportunities for improvements.                                           mechanisms so as to further
                                                                  of competence and related
                                                                  behaviours.                         improve the training for UK
                            Research                                                                  roll-out.
© Huthwaite International

                                                                  For example, the fourth stage of
                            The first stage of the project        Milestones is Explore, and its      Management launch
                            was to analyse and benchmark          measurement framework is
                            current behaviours and                demonstrated on page 3              During the annual PC World
                            performance in stores, so             (Fig. 2).                           conference, attended by all
colleagues that could support
                                                                                         the measurement and
                                                                                         coaching aspects.
   No explore        Asks a           Asks 4+       Asks questions    Asks questions
   questions    minimum of two    questions, eg:   so as to explore     relating to     The Assistant Managers were
                 questions, eg:     “are you on      opportunities       customer       given a store training pack each,
                 “what are you     broadband at    for add-ons, eg:    opinion, eg:     which included workbooks for
                  going to use        home?”        “would you be           “what       Customer Advisors, a Trainer
                     it for?”,      “who will be       looking to      is it you like
                  “what do you    using the PC?”     replace your        about HP
                                                                                        Manual with guidance on
                 have at home                      printer today as      printers?”     training, observing and
                at the moment?”                          well?”                         coaching, pocketcard reminders
Fig. 2
                                                                                        of Milestones behaviours for
                                                                                        all colleagues, Milestones
Senior and General Managers               • Demonstrate best practice in                observation forms, Milestones
from PC World and some from                 Milestones – i.e. ‘blue’ level for          pens and an interactive DVD
the DSGi Group, Huthwaite                   each of the ten stages                      which included example
launched Milestones in                    • Effectively train Customer                  interactions for each training
conjunction with the PC World               Advisors in Milestones through              stage of Milestones.
Learning and Development                    the use of five 2-hour training
Manager – Tim Gallimore.                    sessions delivered to groups                One Huthwaite trainer and one
Tim, with Claire Cologne of                 of one to six delegates                     PC World trainer delivered each
Huthwaite, presented a topline            • Accurately measure Customer                 regional workshop, so as
overview of Milestones to the               Advisors’ performance using                 to ensure high levels of
audience, positioning the model             the Milestones framework in                 behavioural training and
by over-viewing the research                observation of interactions                 operational application. The
findings and presenting results           • Give performance feedback to                workshops were delivered in
from the pilot programme                    Customer Advisors based on                  store training rooms, so as to
in Junction 9 – including                   Milestones observations                     allow roleplay interactions to
a video interview with the                • Effectively select Customer                 take place on the sales floor.
company’s best performing                   Advisors to proceed to the
Customer Advisor discussing                 following stage of Milestones               Feedback from Assistant
the performance benefits of                 training, based on an                       Managers attending the
Milestones.                                 achievement of ‘green’ in                   workshops was excellent, with
                                            those stages already trained                comments such as:
                                          • Deliver effective coaching
Assistant manager                                                                       • “Excellent tool for new
                                            sessions to Customer                          colleagues. Good opportunity
training                                    Advisors, based on Milestones                 to improve feedback skills.”
                                            observations                                • “Gives colleagues the
Huthwaite designed and                    • Support Customer Advisors                     confidence they need.”
developed a two-day workshop                attaining ‘blue’ consistently in            • “Will help the reputation of PC
to be delivered to an Assistant             all stages to help coach and                  World as a whole.”
Manager from every store in the             support their colleagues
                                                                                                                             © Huthwaite International

                                                                                        • “Proper, structured sales
UK, in groups of ten.                     • Manage the delivery of                        process, which is currently not
                                            Milestones within their store,                used by most staff, particularly
These workshops were                        for example, mapping the first                new starters.”
designed to enable Assistant                stage of training against store             • “Provides clear criteria for
Managers to:                                rotas and identifying                         one-to-ones.”
“Will help the reputation of PC World as a whole.”

                            Internal support                     • Measure the key performance         Add-on sales
                                                                   indicators benchmarked in the
                                                                   original research, including        Add-on sales have improved
                            Huthwaite worked with the PC
                                                                   conversion, add-on sales and        from research to evaluation
                            World Commercial Team to
                                                                   net promoter scores, with           stages (See Fig. 4.)
                            explore how the Milestones
                                                                   regards to the impact of            Add-on sales are also directly
                            research and framework
                                                                   Milestones in each of these         related to Milestones interaction
                            impacted on the current
                                                                   areas                               score (see Fig. 5).
                            commercial functions in the
                                                                 • Identify the highest performing
                            business, including marketing
                                                                   stores regionally and overall
                            and in-store merchandising.
                                                                   with regards to Milestones
                                                                                                       Net Promoter Score
                            Using the Milestones findings,
                                                                   behaviours to allow
                            the Team were able to implement                                            Customer satisfaction was also
                                                                   ‘Best By Miles’ bonuses to
                            improvements to marketing                                                  found to have a direct
                                                                   be awarded
                            and merchandising materials to                                             relationship with Milestones
                                                                 • Determine the current
                            better reflect the requirements of                                         score (see Fig. 6).
                                                                   application of Milestones so
                            customers and staff.
                                                                   as to assist PC World in
                            Regional Training Advisors             further supporting their stores
                            attended a two-day workshop            with implementation.
                            with Huthwaite so as to enable
                            them to effectively support the      The evaluation methodology
                            rollout of Milestones across         followed was identical to that
                            the stores in their areas. This      used in the research stages,
                            was done through accurate            which ensured accuracy of
                            observation of interactions          results. Each interaction was
                            and coaching and support of          assigned an average Milestones
                            Assistant and General                score (as per the colours on the
                            Managers.                            framework) based on the
                                                                 behaviours demonstrated during
                            Huthwaite worked extensively         an interaction.
                            with PC World trainers to enable
                            them to co-deliver the Assistant     Conversion rate
                            Manager workshops, and to
                            ensure that they had the skills      Overall conversion rate of
                            and capability to work with new      interactions observed rose from
                            Assistant Managers and stores        47% in the research stage to
                            into the future, without the need    52% in the evaluation stage.
                            for Huthwaite support.               Sales and Advances (advances
                                                                 are where a customer has not
                            Evaluation                           purchased but has given a
© Huthwaite International

                                                                 ‘likelihood to buy’ score of 6 or 7
                            Huthwaite worked with PC             out of 7) are directly related to
                            World to design and deliver          Milestones interaction score, as
                            an evaluation project, so as to      shown in Fig.3.
                            achieve the following objectives:
100
          90                                   Unacceptable
          80                                   Red
          70
                                               Amber
          60
          50                                   Green
          40
          30
          20
          10
           0
Fig. 3           Sale    Advance No Sale

                 Research                   Evaluation

                                                                            Summary
                                                                            The Milestones project is an
                        % add                     % add
                                                                            excellent example of where a
                        on sales                  on sales
                                                                            collaborative relationship
                                                                            with Huthwaite results in the
                                                                            development and
Fig. 4    *Percentage of sales that included at least one add on
                                                                            implementation of a highly
                                                                            successful programme that
                                                                            brings measurable performance
                                                                            improvements to business key
         100                                   Unacceptable                 performance indicators.
          80                                   Red                          The combination of accurate and
          60                                   Amber                        credible behavioural analysis
                                               Green                        used to create a behavioural
          40
                                                                            model with a practical and
          20                                                                effective implementation plan
           0                                                                has ensured that Milestones is
Fig. 5                  Add on sales                                        embedded into stores across the
                                                                            UK as the operating platform for
                                                                            both B2C and B2B interactions.
                                                                            Huthwaite continues to work with
                                                             Unacceptable   PC World to provide ongoing
         100
          90                                                 Red            measurement and support of the
          80                                                 Amber          implementation of Milestones
          70                                                 Green          across stores.
          60
                                                                                                               © Huthwaite International

          50
          40
          30                                                                Claire Cologne
          20                                                                Huthwaite Consultant
          10
           0
Fig. 6         Promoter Neutral Detractor      nps
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