Five Circuit City Survival Tips
Not much going on there. There is a malaise about the showroom -- not much product, and not much help. Where are those 46,000 employees the company claims to have had earlier this year? Home theaters are lackluster. Even if they have assembled impressive components, there are no salespeople to explain the differences among brands.
In short, Circuit City seems to have forgotten how to sell.
But all is not lost. Despite economic pressures, Circuit City can make a go of it. It will need to focus on technology and services and trim down its massive size while maintaining an unwavering desire to satisfy the customer.
Here are five suggestions for Circuit City, based on traits of successful solution providers.
1. Make Firedog your centerpiece.
To succeed, Circuit City must embrace the solution provider model: Sell the hardware, but what's most important is the service provided. That means Firedog must be integrated (excuse the pun) into virtually every aspect of the store. The focus must be on solution selling: Computer setup, upgrades, data backup, networking, VoIP setup—all of those services are offered by Circuit City, but few customers know that. In addition, flat-panel TV installation, home theater setup and other consumer-slanted services are in the mix. Firedog can be the savior of Circuit City, but it must be promoted and cultivated. It will result in a hybrid of the best of the retail and VAR models.
2. Transform into a solutions shop.
No one needs door greeters who simply say "Hello" and then let potential customers slip through their fingers. People need assistance. That's the heart and soul of being a VAR. People want to buy something—that's why they've made contact. Treat customers like the profits they represent, not as mere browsers. It sounds crass, but it should be obvious that ignoring people isn't the way to make sales.
Expensive furniture stores offer shopping help—an interior designer who is assigned to a customer, free of charge. That idea can be easily replicated at Circuit City. Once the greeter determines what the shopper is looking for, he or she walks the customer to the department and gives him an associate with whom to partner. From the low-cost video game ("Here are two other titles that are really cool just like it—and did you see the graphics in the new PlayStation?") to the complete home-theater system ("Your choice for audio really depends on what is most important to you. Here's some help determining that ..."), this can build customer loyalty and respect for your associate's knowledge.
It also eliminates customers' frustration over trying to find a knowledgeable salesperson.
3. Focus on your product line.
Does Circuit City really need to sell vacuum cleaners? That's a decision the execs at the top need to make, but to survive, it needs to remember point No. 1: provide IT solutions and products. Target individuals, families and the SoHo market. Focus on related high-ticket items and expert service.
4. For the CEO: Recall the best sales experience you ever had, and duplicate it.
It doesn't matter if this was booking a trip or buying a house, there are similarities that run through good sales experiences. The customer feels his or her parameters were met, that the deal was fair (or even a bargain) and that, should the need arise for this product or service again—or one similar to it—the same vendor will be consulted. In addition, during this "best-of" exercise, you may recall that certain challenges were foreseen and pre-empted by the salesperson, and that a certain rapport was developed. That associate was so good, in fact, that you'd consider keeping him or her informed of your outcome. Perhaps a quick e-mail: "The trip to France was great!" or, "The neighborhood pizzeria is as good as you said it'd be."
That is quite different from, "The Xboxes are in the back of the store."
5. Every day, remember, this is not self-service.
In the highly intense IT product market, products don't sell themselves (OK, maybe if it's the iPhone). When a company is floundering, it needs great salespeople. The company is planning to close 155 stores and lay off 17 percent of its workforce. With those savings, it should hire (or rehire) the most personable yet knowledgeable associates it can, and offer attractive commissions to retain them. Excellent salespeople can rebuild this organization. Working with gadgets all day should be fun and rewarding both professionally and financially.
At Circuit City, it appears to be neither right now.