Think Customers: The 1to1 Blog

The subject you are tossing here is yet at early stages. With price cutting methods still "do-it-yourself" is the very favorite to most of the customers. Everyone knows that the expert is going to add cost. it has been very long mushroom process to educate the customers and make them adopt the "do-it-yourself" strategy; it took many years. If we take a society like Japan, we shall find people there do everything by themselves.

When the idea of "do-it-yourself" introduced first time, I remember the hidden messages that used to be promoted at that time such:
- You build it then you own it
- Building it increase the level of your skills and creativity
- Building it means personalize the product

Such messages contributed in encouraging people to accept the new paradigm. I am working in the IT industry for over 23 years and have seen many companies were trying and still trying to position themselves as the trusted adviser/expert and I assure to you non of them get even close, because of the hidden/added cost. It ends up with the personal relationship that the salesman/techie has created with the client; then the client create the link between that person and the company. Usually, and in most cases when this personal moves to another company, it is expected that the client will think of the change.

My personal opinion regarding this paradigm shift that it can be directed to a specific segment where they appreciate the consulting advise such senior and elder people. Also, the type of the products must be of the type that requires a personal touch same as the fashion industry where a second opinion is always appreciated.

I find the comments quite fascinating. I come from both sides of the fence, I am the Executive Director of the Registry of Professional Contractors of Ontario but I am also a woman and so I see if from two different angles.

I would agree that a lot of contractors do not shop Home Depot because they do not get the kind of service they want. I would imagine that when contractors are trying to load up with materials first thing in the morning it does not make sense to be “stocking shelves” at the same time, thus denying them access to materials.

As a woman shopping in Home Depot it can drive me to distraction. I cannot find staff to help me find whatever I am looking for. They are always busy and sometimes a line up forms waiting for one poor soul who is the “expert” in that area.

It would appear that customer service is not the greatest and this is not the fault of the employees on the floor, they are very helpful when you can find them. There just aren’t enough of them.

It is a well known fact that women drive the renovation industry in North America and it would seem to me that if you want to increase your sales then you have to cater more to women. They come into the store looking for ideas for renovations. Plumbing supplies are of no interest to them, they are looking for the “pretty things” that go with the plumbing supplies. They are looking for examples of bathrooms already set up with all of the fixtures and fittings. Putting a toilet and a sink in a little corner really does not cut it. Most people have never renovated a bathroom or kitchen or basement before and they are looking for guidance from the staff on the floor. Unfortunately, it is not always possible to speak with someone because they are engaged with other customers in a lengthy discussion.

It comes down to personal choice, do I want to go to Home Depot on a Saturday when it is so busy or do I want to hit one of the specialty bathroom stores. When women have reluctant husbands with them, it is definitely one of the specialty stores. They have the staff, they have the knowledge and they are usually available to offer advice.

From the comments (thanks for contributing to the conversation everyone), it seems that Home Depot would be wise to focus on its front-line employees. They are brand ambassadors and the direct face of the company, so they should feel empowered to help customers and act in the best interests of customers. Instead of taking up more real estate, maybe the company should get its own house in order.

Focusing on the customer experience/service for a second, a local contractor/friend said he quite home depot in favour of the smaller building supplier in the next town (10-15 minutes away). He said that it was a general consensus among small contractors that Home Depot blocked off isles for forklift activity in the early morning, when contractors were trying to stock up for the day.

This one-arm survey would suggest that the super sized store cannot fit all clients. Home handy-men, contractors, and people designing kitchens are driven by different motivations and needs.

Case in point - here is a local website (Ontario Canada) that was created based on FEAR OF CONTRACTORS and "I DON'T KNOW WHO I CAN TRUST With My Renovations".

http://www.renocontractors.com/

This new website was launched by an acquaintance with the intent of providing women with a list of verified, recommended contractors. Perhaps Home Depot was not satisfying that need? Perhpas the new Lowes store that's opening down the road will?

Again, pulling the design and consultation piece out of the warehouse might give them an edge and reach a specific demographic/physiographic group

Regardless of whatever plans Home Depot has in store for its workforce and customer service, the majority of the company's employees are high school graduates who did not envision a career path in retail.

The employees don't care, and it's damn hard to make it so they do...

More than a year ago I made a trip into the USA to explore Lowes stores and compare them to Home Depot. I was traveling with an ex Merchandising Director from Canadian Tire. Several things were very apparent when we did a direct comparison between Home Depot and Lowes.

· The depth and breadth of line in Lowes was superior to Home Depot – I liked that.

· Kitchen and Bath design centre was integrated into the main floor display area and the presentation and service was superior to Home Depot. – I like that too!

· Lowes: No matter what isle or row I looked down, I could see staff; regardless, one of the staff apologised for the low staff count because it was off-season. When I told him it was a research trip he introduced me to one of his customers and asked if they would talk with me about their experience at Lowes and the reports were glowing. The experience repeated in other parts of the store such as the design centre…whereas in Home Depot: (my local store, personal experience) it has typically been harder to get help.

This leaves me with the impression that a design centre could be integrated effectively into the existing physical locations; Lowes was doing this by increasing the footprint of the new locations. I don’t know if they retrofitted existing locations with the upgraded design centres. As a 1-stop home-reno-guy, the mixed model works well for me.

Canadian Tire (CTC) did something similar to Home Depots new model. CTC is typically a mixture of Auto, Sports, Hardware & Housewares with Auto occupying 20-30% of the footprint. They opened smaller footprint, automotive category-killer stores called “Parts Source” that focuses on automotive only; and they are within close proximity of the existing mixed-category stores. At first it was thought that Parts Source would cannibalize existing sales of CTC stores, but I think that product line adjustments prevented that.

A separate location for the Home Depot Design Store provides an opportunity to change the ambiance; the exploration and design experience is really quite different from the implementation experience (boards and mortar purchase). Pulling the design experience out of a noisy warehouse and putting it into a showroom, consultation environment is worth looking at; it’s a different type of customer.

Should anyone want to look deeper at the CTC structure:

This is the website of Canadian Tire’s PartSource Chain http://www.partsource.ca/

This is the parent company http://www.canadiantire.ca/

This is a company they (CTC) bought, and integrated some of the product mix into the parent locations http://www2.marks.com/

They also own a petroleum outlet.

Petroleum and the parent store fly the same banner but the others have their own. Begs the question: Should Home Hepot fly the exiting banner over the new concept or give it a different public brand?

In addition, they (CTC) provide financial services including credit cards, banking, mortgages, GICs etc. Real Estate holding are significant.

Consultative selling? Doesn't sound bad to me but then again I am a consultant by profession. I think what Home Depot really has to embrace is a commitment to authenticity in whatever approach they elect to take. So if they are going to have "experts" on the floor helping customers, these experts better be qualified or customers will see right through the ploy as just that, a ploy to increase sales.

Having said that, I avoid Home Depot and shop at Lowes because Lowes has:

1. More knowledgeable sales people on the floor on a consistent basis.

2. Better in-store lighting and MUCH CLEANER stores.

3. More pleasant sales people. I'm always greeted by someone during my trip there.

I think that Home Depot is struggling to define an identity and in the meantime, has as a result, lost their core value.

Home Depot was THE place to go to speak with real experts in home improvement. They hired real plumbers, electricians, etc., and you could count on the right answer. Therefore, to me, they were expert consultants to begin with.

I fear that their drive to more consultative selling is just that - a means to sell more and the consumer will see through it unless it is backed up by real experts.

Good luck my friends.

It seems to me that when Home Depot opened their stores in my town, they had a great team on board and were really committed to having experts ready and waiting to help you. The first few months were great. Then that team moved on, I assume to open other stores, and I haven't received much help since. Unfortunately in the process, they squashed lots of the smaller guys who were consistently available to help. I am absolutely willing to pay more for customer service.

This must be a very recent program because last week in Charlotte, they were neither friendly, helpful or consultive. I wonder if they can afford to pay people qualified to consult in home decor and
whether consumers would consider them a credible source for this kind
of expertise.

For a number of years, we have encouraged and trained dealer salespeople to be consultants to the customer. Through focus groups, that is what the customer has said they want.
From a personal point of view, when I am working on a project and am not sure of everything I need to fix whatever, I go to my local hardware store where they are staffed by retired professionals - they give me the total solutions I need. Do I pay more? Yes. Is it worth the extra money?Absolutely.
I go to the large warehouse stores when I have a large purchase and/or when I know exactly what I want.
The decision for you is money - are you willing to pay more for "consulting" personnel?