New company finds out why consumers don't buy
By Gary Evans -- Furniture Today, April 13, 2003
Gulf Breeze, Fla. — Retailers spend countless dollars getting customers into their stores but often don't have the foggiest idea why they left without buying.
That's where Robert S. Maloney enters the picture. He heads a new company, Furniture Listener, which will call the customer to find out.
The company, an offshoot of The Listener Group, has been endorsed by the National Home Furnishings Assn., which gives NHFA members special pricing.
"What I want to do is to help the furniture industry with its capturing of information about people ... and give retailers a second chance to sell the consumers who left their stores without buying," Maloney said.
Using a bank of phones, Furniture Listener workers contact consumers, ask a series of questions and produce a "Premium Intelligence Report" on their perceptions and why they didn't buy.
Questions include: Were you greeted promptly? Do you remember the sales consultant's name? On a scale of 1 to 10, 10 being the highest, how do you rate the consultant's professionalism? How do you rate the consultant's knowledge? Did they have the piece/group you were interested in? Did you like the piece/group well enough to own? Were you willing to purchase? Were you introduced to a manager? Are you still in the market for the piece/group?
Comments from those queried are included in the report, which is sent to the store quickly by e-mail or fax for follow-up. Maloney said a monthly report gives retail clients an overall picture so they can spot problems or trends.
What makes the system work, he said, is that it's non-confrontational and involves a third-party questioner, which makes the consumer less anxious about sharing information. The conversation begins, "This is a courtesy call to follow up on your visit," so only 3% of respondents don't participate, Maloney said.
Maloney said the service does not take the place of in-house communications programs. But, he said, "There are two pitfalls inherent with in-house systems. First, the contact rate is pitifully low. There is no substitute for a state-of-the-art call center with peak-hour dialing capabilities.
"Second, human beings, by nature, won't tell the place of business with which they are working the same information they will tell a third party. That's just a fact."
Furniture Listener is undergoing some fine-tuning, Maloney said, but it comes from good stock. The Listener Group offers the same kind of programs to the auto industry and other businesses. Maloney, who has a background in insurance sales and management, has been involved in a family furniture retail business and was general manager of three stores.
Maloney declined to give pricing for the service. But he said statistics show that out of 100 follow-ups, Furniture Listener is likely to turn up 25 to 28 "hot" prospects, meaning people who haven't yet bought furniture elsewhere and still want to make a purchase.
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