Staples did the unimaginable: It asked customers what they wanted. The
answer became a brand promise that drives the entire organization.
For roughly the first 14 years of Staples’ existence—from 1986
when it pioneered the concept of the office superstore to 2000 when it
kicked off a serious strategic reassessment—management followed a
formula familiar to any mass-market retailer: Provide a wide range of
products at the lowest possible price. Beyond that, however, the
company’s "Yeah, we’ve got that" branding scheme focused
on having everything in stock—even if it was a one-of-a-kind,
left-handed, upside-down, underwater hole-punch in
red-not-silver—for the sole customer who wanted it.
But eventually it became clear that low prices and variety weren’t
going to be enough. By the mid-1990s, the market was filled with
plenty of office superstore wannabes. "At one point, we actually
had more than 20 imitators," says Vice President of Marketing
Shira Goodman. "There was ‘Office This’ and ‘Office That’
and ‘Office The Other Thing.’"
The market shakeout in the mid—’90s that left Staples with only
two major rivals—Office Depot and OfficeMax—also revealed that
consumers didn’t see much difference between Staples and the
competition. "There were some cracks in the pavement,"
Goodman says. "We’d hear stories from our stores where, when it
came time to pay, people would pull out their Office Depot credit
card."
For the first time in the company’s history, it had negative retail
sales comps. Store operating margins were starting to level off and,
in some cases, even decline.
To find a way to turn things around, Staples turned to research. Lots
of it. It asked customers to list their 10 most important criteria; to
management’s surprise, price was nowhere to be found. It wasn’t
that price was insignificant to customers. But thanks to Staples’
influence throughout the segment, shoppers had come to assume they
were going to get a good price. What they wanted was for stores to
stock all the basics.They also wanted courteous and helpful sales
associates. And they wanted a faster, less-troublesome experience. In
other words, customers wanted stores that didn’t just have what they
wanted, but had it where it could be found quickly and easily.
 |
| Observing
how customers shopped in Staples stores and other retail
environments "led us to some very unexpected
conclusions." |
| Visual
Merchandising VP Bob Madill |
"We said, Well surely, you’re getting that already," says
Goodman. "But customers told us they weren’t getting that from
anyone. That was the real eye-opener," she says. "I mean,
there was just this tremendous open space there where, in some ways,
customers’ needs were very simple and basic. And no one was
delivering on it for them."
So Staples did what any smart superstore would do: It stopped trying
to be all things to all customers and decided to take it
"easy."
Being Easy Can Be Hard
To get an idea of how seriously Staples takes its new brand
promise—"Staples. That was easy."—you need only look
around its Framingham, Mass., headquarters. Once the building’s
interior was a typical corporate cubicle maze that would have defeated
both Theseus and the minotaur. But that was before.
A year and a half after rolling out the new brand promise, the
building is overflowing with helpful signage. Maps point to locations
at key intersections. Floor numbers are embedded in rugs, and each
floor has a distinct color theme.
This is a company that has made "easy" the driving principal
not only for its creatives, but for the entire organization as well.
From the website to store design to hiring practices, it is an example
of how a brand can unite and drive an organization.
The branding has become Staples’ strategic priority. "It became
a project where marketing partnered with strategy," says Goodman.
Which, to be honest, is pretty much what you would expect a CMO to
say. But it’s a view echoed by outsiders as well. "Theirs
isn’t just a Dilbertesque mission statement," says Harley
Manning, a vice president with Forrester Research. "Clearly,
Staples believes it is core to their mission to make it easy to find
stuff."
"Easy" has succeeded for a number of reasons, says Manning.
First, it wasn’t a top-down order, but an idea that was grown
organically from within the company as part of a review already under
way. It also offered a simple, clear idea that all parts of the
organization could embrace.
"We believe that ‘easy’ is not about the advertising
piece," says Dave Almeda, vice president of human resources, U.S.
stores. "It’s about bringing ‘easy’ to life for the
customer; it’s about the customer experience," he says.
The initiative has also succeeded because of determined efforts to
avoid using the "B" word. "When marketing folks use the
word brand, it alienates the people in other areas," Goodman
says. "‘Oh, branding, that’s a marketing thing. That’s
about colors. That’s about logos. Let Shira worry about
that.’"
Focusing on the customer’s needs sometimes required ignoring what
customers said and instead watching what they did, says Bob Madill,
vice president for visual merchandising. "We took a look at how
customers shopped in our own stores and looked at a lot of other
retail environments as well," he says. "That led us to some
very unexpected conclusions."
The company found that small-business and home-office owners made up
the bulk of sales, not the casual buyer. So Staples refocused its
inventory and changed not just what was in the store but the layout of
the stores themselves.
Most store layouts follow that of the typical grocery store, which
puts the items most often purchased—such as eggs and milk—in the
back of the store, forcing customers to pass aisles of other items
they may buy more impulsively. With "That was easy" as a
driving principle, the superstore did just the opposite. Ink
cartridges and paper—the eggs and milk of Staples—were moved to
the front of the store so that customers could run in, get what they
wanted and leave.
"We’ve done a significant amount of research in terms of how
they make whatever purchase decisions they’re making," says
Madill. "We do it in a way that isn’t necessarily managing
their behavior, but supporting their behavior."
It takes a lot of work to come up with something this simple, and it
takes even more work to make sure that simplicity is executed
throughout a company that boasts 1,200 stores and 60,000 employees.
And Staples’ employees is where one key—and frequently
overlooked—part of successful branding came into play.
"It became apparent that we needed to get not just the 3,000 or
so managers engaged, but we needed to find a way to get the 25,000 or
so hourly associates engaged," says Almeda. The human resources
department had already come up with a plan to pay hourly employees
more based on stores meeting certain sales and profit targets. Under
"easy," the program focused on increasing customer
satisfaction as tracked through point-of-sale surveys.
In-House Polish
In addition to refining how it gets employees to interact with the
public, the rebranding effort refined how the company interacted with
its employees. While the company’s in-house communication style
previously was technically correct and well-written, messages
weren’t executed with the same kind of wit and polish that marked
its advertising and other materials. Today, all that has changed.
"There shouldn’t be any difference," Almeda says.
"The message, if you don’t do that, is that you care more about
your external advertising than you do about your internal. And how
does that bring ‘easy’ to life?"
Part of the transition required upgrading systems and improving
scheduling. That included everything from better and faster registers,
increased use of scan technologies, and less and better-focused
communication from headquarters to the stores. All in all, less time
is spent in an office responding to e-mails, and more time is spent on
the floor with the customer.
 |
| The
"easy" initiative helped Staples transform culturally
"from a typical, almost pure task-focused environment to a
differentiating, customer-focused environment." |
| HR
VP Dave Almeda |
It also required Staples’ management team to learn the company’s
distribution and staffing methodologies. Staples devotes itself to
employee education to ensure that the staff is well-equipped with
product knowledge. Even with something as low-tech as changes in the
packaging of paper, employees are briefed on what information is going
to be displayed on the package and how they can walk the customer
through what’s different.
"The majority of this change had to do with culture," says
Almeda. "The cultural change was from a typical, almost pure
task-focused environment to a differentiating, customer-focused
environment."
And anything that increases ease of use is going to show up in your
ROI, says Forrester’s Manning. He points to the company’s website,
which has a much higher than average rate of converting shoppers to
people who actually buy. "The average conversion rate [for most
sites] is down below 3 percent," says Manning. "These guys
are bumping into the low double digits.
"People who have poor conversion rates like to explain it away by
saying, Well, that’s the category," says Manning. "Well,
no, it’s not the category. These guys didn’t start out with those
kind of conversion rates either. They thought long and hard about how
people actually buy their products, about who their customers actually
are and how they really want to go about it. And they work really hard
and use very sophisticated techniques very rigorously to make it easy
for people to shop on their site. That’s why they have those kinds
of conversion rates."
It is never easy to make things easy. Staples has devoted significant
chunks of time and money to finding out what its customers want, how
to give that to them and how to spread that message of providing for
the customer throughout the entire organization. While management will
tell you that much has been accomplished, they are also concerned
about how to perpetuate the changes they have already started. In the
end, they hope it will continue to lead them to "easy"
money.
Senior Writer Constantine von Hoffman can be reached at cvonhoffman@cxo.com.