ID Academy Basic Store Action 1

ID Academy – Basic Store Action 1

Participants IDdesign Qatar: Mr. Hani Nasr Mr. Prem Anand IDdesign Oman: Mr. Kim Jepsen Mr. Vikram IDdesign UAE: Mr. Surendran Mr. Mahmoud Yousuf Sirwawi Mrs. Rachna Prasad Mr. Robinson IDdesign Bahrain Mr. Naeem Karmustaji Mr. Tony Sabra Mr. Josef IDdesign Kuwait: Mr. Klaus Svendsen IDdesign Cyprus: Mr. Petros Komodikes Mr. Stavros Xinaris IDdesign Saudi Arabia: Mr. Mahmoud Saad IDdesign HQ Mr. Thomas Torp Christensen – Franchise Manager Mr. Søren Jørgensen – Expansion Manager

Agenda Tuesday 12 th of February 2008 09. 00 Welcome & Introduction 09. 10 Introduction to Agenda 09. 30 Presentation of the Retail Operation Manual 10. 30 - Coffee – 10. 45 What is Basic Store Action? 11. 30 Basic Store Action Part 1 13. 00 - Lunch – 14. 00 Store evaluation Sitra 15. 00 - Coffee – 15. 15 Basic Store Action Part 2 17. 00 Evaluation & Questions 19. 00 - Dinner – Senor Pico

Agenda Wedensday 13 th of February 2008 09. 00 Basic Store Action Part 3 10. 30 - Coffee – 10. 45 Workshop presentation 11. 00 Workshop 13. 00 - Lunch – 14. 00 Checklists, Local Follow-up and store manager attention points 15. 00 Store evaluation Buddya 17. 00 Thank you & going Home 19. 00 - Dinner – Traders Wick

Welcome & introduction – Expansion news IDdesign Franchise Requirements. Strong local market know-how from the territory concerned. Successful retail experience. Long-term commitment to operate the IDdesign Concept and aim for market leadership in the mid-price segment on the territory in question Financial strength to penetrate the territory within a period of time agreed with IDdesign A/S. Strong interest in home furnishing and a high degree of shared business values.

Welcome & introduction – Expansion news Vivax Ltd. Strong local partner with experience as a retailer in the Hungarian furniture marked since 1982 with great results. This has made them financial strong so they made our requirements for a local partner. We have together made an penetration plan for the Budapest area and came to the conclusion that to become market leader in the mid-high segment we needed three stores. The first location has been approved and it is going to open the 1 st October 2008 in the leading mall for home furnishings “Max City” The store will be 1400 square meters and the monthly numbers of visitors in the mall is 35000 people. 2 nd location is scheduled to open no later than 1 st October 2009. 3 rd location is scheduled to open no later than 1 st October 2011.

Franchising – the definition • ” Franchising is a system in which you promote and sell a product, a service or technology • Franchising is based on a close and long lasting relationship between the Franchisee (you = the store(s)) and the Franchisor (Inbohome) • In franchising the parties are legally and financially separated • The Franchisor hands over the right and obligation to the Franchisee to operate the business according to the concept of the Franchisor • This right entitles and commits the franchisee to use the name, know-how, assortment, business model, processes, etc. of the Francisor against a fee (royalty). The Franchisor is obliged to support the Franchisee within the framwork of the franchise agreement ” Source: Danish Franchise Association

Presentation of Retail Operation Manual With reference to the initial definition of ´Franchising´ – We want to offer our professional franchise concept to our professional franchisses in a professional way Therefore We have decided to update our current to our future

STRATEGIC OBJECTIVES FOR 2010 (3: 8). 5 strategic goals which can be measured and which must ensure IDdesign and the stores a positive EBIT result STRATEGIC GOALS 2010 1. 80% of all franchisees recommend IDdesign 2. 5% growth in retail turnover, like-for like 3. Implementation of one concept 4. Private label share 40% 5. 75 suppliers FRANCHISE PROFITABILITY Franchise EBIT 8% HQ PROFITABILITY § The growth in retail turnover creates content franchisees who work hard and are positive in opening more shops. Content franchisees are adjustable to new products – higher share of private label products. § The growth in retail turnover created content franchisees and strengthen the reputation towards new potential franchisees § Having only one concept will ease the store openings, product committees and furnishing. The grade of implementation is measured by ’mystery shopping’ § A higher share of private label products will strengthen the EBIT margin because of a higher gross profit § By reducing the number of suppliers we will be able to strengthen the negotiations and obtain a better price at the remaining suppliers § Higher profitability in new and existing stores will strengthen the reputation of IDdesign and make it easier to enter new markets. SOURCE: Iddesign materials and Co. Co analysis.

STRATEGIC OBJECTIVES FOR 2010 (2: 8). A strategy with 5 main priorities: 1) ”restrain the concept” - 2) restrain the assortment” - 3) ”restrain the store - 4) geographical expansion and 5) ”mind-set” The 3 phases towards the 2010 journey Strategic priorities towards 2010 § 3 We consolidate the new positions 2 § We increase the growth in accordance with the plans 1 We prepare the store for growth 2007 2008 2010 § § Point of departure for the strategy: § IDdesign will continue with focus on the Scandinavian design in new markets. § IDdesign will prioritize new markets which will not have an adverse effect on existing markets. § IDdesign’s journey towards 2010 is solely based on rational, realistic and proactive decisions as Inbohome does not find forced decisions desirable § Development and implementation of a mutual profitable and powerful franchise concept A powerful franchise concept must be developed and implemented. The franchise concept must supply real chain advantages to the franchisees and the concept must be restrained in a much stronger way than today. Strengthening the assortment The assortment must be restrained in a stronger way, it must be more dynamic (collections and seasonal products) and the supply chain - for example for the Middle East - must be reevaluated. IDdesign must make much better use of the purchase power towards the suppliers. Controlling the store Internal resources, hereunder staff members, qualifications and systems, must be constructed in order to control a larger chain and an stronger concept. Geographical expansion In a proactive way, IDdesign must establish in new markets. This will make demands on preparation, know-how, investments and resources. ”Group”-structure and mind-set IDdesign must not be considered as an appendix within the group. The organization must be unified in order to collect and develop knowledge and eliminate double functions.

IDDESIGN STRATEGIC INITIATIVES. IDdesign HQ will realise the vision through a series of strategic initiatives, which support the IDdesign franchise strategy 2010 A BRANDING & POSITIONING Position IDdesign as the preferred chain within fashion furniture and fashion interior B C MARKET PRIORITY Make IDdesign an important international chain within furniture and fashion interior BASIS FOR THE FRANCHISE WORK Create an effective franchise concept with a first class chain cooperation A 1 Project Marketing standard B 1 Project Opening package C 1 Project Strategy kick off A 2 Project Marketing 2010 B 2 Project Expansion plan C 2 Project ID Analytics Light A 3 Project ID brand B 3 Project IDeal profile C 4 Project ID Operations manual C 4 Project ID Franchise contract A 4 Project Common marketing B 4 C 5 Project ID IT A 5 Project Target Group 2010 C 6 Project ID Academy D Project Partner recruitment PHYSICAL CONCEPT & ASSORTMENT Create an uniform and effective physical store concept and private label assortment E COMPETENCES & CULTURE Strengthen the organisation and the competence base internally in IDdesign HQ and create a best practice retail culture D 1 Project 80% E 1 Project One Team D 2 Project Service 2010 E 2 Project New competences D 3 Project ID organisation E 3 Project Education D 4 Project arrangement and front E 4 Project IDentity D 5 Project Private label E 5 Project Stay ID ready SOURCE: Co. Co analysis.

BASIS FOR THE FRANCHISE WORK 2010 C Central tasks: - To make existing franchise partners accept/invest in new concept 2010 - To make the franchise partners use and exploit new offers and initiatives from HQ Strategic initiatives 2006 -2010 C 1 Strategy kick off meeting with franchise partners C 2 Introduce ID Analytics light C 3 Introduce and implement an IDdesign operations manual in English C 4 Introduce new IDdesign Franchise Contract C 5 Implement a common IDdesign IT system C 6 Implement IDdesign Academy (store-directed modules and Train-The. Trainer) One strong franchise concept 2010 Store/ franchisee Co-operation Samarbejde Store openings & refits Butiks åbninger og refits VM & Marketing Butiksdesign & Fittings Store design & Fittings HR & Training æning Intelligence& Analyse Intelligence & Analysis IT Drifs Support Operations support Manualer & V Manuals & Tools ærktøjer Supply chain HQ support = Chain synergies Merchandising Koordination Coordination

Structure/content of the Retail Operations Manual Brand & Culture Academy Basic Product Knowledge Sales & Service Shop Standards Logistcs & Inventory IDdesign Concept Manual Showroom & VM Marketing & Campaigns IT Finance & Adm. Staff

Presentation of Retail Operation Manual

Store evaluation - Sitra How to fill out ”store evaluation” form

Important Message! Coffee

What is Basic store action? The 3 Retail commandments! 85% of all purchase decisions are made in the stores 95% of all purchase decision are based on emotions 80% of all purchase decisions are made by women All Basic Store Actions should be based on these 3 facts!

Sales & Service – Definition of our customers Is the most important person in our shops. The customer does not depend on us. We depend on the customer. The customer does not interrupt our work. She is the purpose of our work. We do not do him/her a favour when we serve him/her. She does us a favour when he She gives us the opportunity. A customer is not someone with whom you argue or someone that you treat patronisingly. (Nothing is gained by arguing with a customer). A customer is a person who comes to us with her wishes. It is our job to fulfill her wishes. And with a result that satisfies both the customer and ourselves. This is what a customer is. In IDdesign and in any other company. Wise words!

Sales & Service – Life time value We are aiming to make use of the customer’s life time value. The customer’s life time value can be ours! Pizza Hut views anyone who comes into their restaurants as being worth about 9, 000 dollars; that is, if you succeed in looking after that person. We should view our potential, precious customers in the same way. The life time value of an IDdesign customer is no less than 88, 000 kroner (Aprox. 18, 000 USD). It does not take much calculation to work out what the consequences will be in the short and the long run every time we do not serve our customers professionally.

Sales & Service – Our attitude towards sales & service Being an employee with IDdesign is not just a job; it is an obligation. This means that we must show our customers everything that we stand for – that is the most important point – the basis of our existence. No sales – nothing left Being a sales person with IDdesign means that we live up to seven fundamental values: 1. We are service-minded. 2. We have a twinkle in our eye. 3. We create peace of mind. 4. We are competent 5. We are known by our customers and know our customers. 6. We are active and dynamic. 7. We have our heart in what we do By bying this we show our customers that the work is important to us – it is something we are proud of being a part of. In general IDdesign is a part of us and our customers should feel that.

Sales & Service – What do the seven values mean? The seven values are the connecting thread of our sales training. They will be explained in the smallest detail so that no one with IDdesign will be in any doubt about what they mean and how they should be realised. They will be a part of the communication and information that we will have in our chain in the future. Therefore we will only go through them quickly in the following. 1. We are service-minded We give our customers that ‘little bit extra. ’ Our customers must always sense things that we stand for and offer. This contributes to influencing customer flow, turnover and average sales when a customer is served. We know that good service (in the widest sense of the term) means selling – sooner or later. 2. We have a twinkle in our eye. This means that we do our best, and that we are in an IDE Furniture mood. We have a positive attitude. We make sure that customers can feel how excited we are about being a part of IDE Furniture. We are dedicated to IDE Furniture – we are motivated! Nothing is more important than motivation. It makes you strive to make the customer buy the goods and it makes you provide the best service possible. Motivation influences key figures, average sales per customer, hit rate and turnover. 3. We make customers feel safe It is our aim that our customers know that we are all about quality in terms of both direct sales and the services that we sell. We have a professional attitude. An attitude that comes from the heart and is reflected in our behaviour as a whole. An attitude that also stems from our constantly updated and exquisite professional qualifications.

Sales & Service – What do the seven values mean? 4. We are competent Our competence can be expressed in a few words: we know our stuff. We must prove this by the help of: · Knowledge of products from supplier courses; we need to know what ‘turns on’ the customer · The sales courses that teach us how to approach a customer and make a sale · What we learn from our colleagues – by cooperating closely with them – also those who work in other shops. We can achieve this through job rotation between shops. · Knowledge of competitors. We must know our closest competitors. We must know what they can do – what they do for their customers and what they cannot do! 5. Our customers know us and we know them We must take an interest in our customers and in the local environment. We do this by reading local, daily newspapers and by making use of our personal networks and personal involvement in sports clubs and other leisure activities to brand ourselves as ‘Ideas. ’ This has an impact on flow of customers and turnover. 6. We are active and dynamic We exude drive and enthusiasm through commitment and competence. 7. We love our work We do not sell just for the fun of it. We are aware that we do not gain anything – in the short term and especially not in the long term – by selling products to our customers that they will not be pleased with. We remember the chain’s concept: “We provide inspiration and home experiences at a reasonable price. ” IDE Furniture sales are not just sales; they are ethical sales. The points above do not materialise by themselves.

Sales & Service – In the shop & preparation Sales and service in the shop The shop is our primary source of profit. It covers all our activities that have to do with sales. Sales are the core of our business. In the following we will describe what creates a sale and which key figures are influenced by our contact with our customers. Be conscious of these things when you are sellling and when you coach your employees about sales! Preparation The shop is the battle field. Be there in good time, and be mentally and physically prepared. Make sure you are turned on and give yourself the best chance to win as many battles as possible. Opening a shop is like inviting guests. We prepare so they will feel welcome. We tidy up and the food is ready wheh they knock on the door.

Sales & Service – Zones & reception Zones When we have opened the shop we must be ready to receive our customers. This means that we have our permanent places around the sales area so that the customers entering the shop do not find an empty shop or a shop where everybody is lumped together behind the desk or in a corner at the back. Divide the shop into zones that are always manned and prepare a system of redeployment so that everybody knows where they should go if a colleague moves. This helps to increase the customer’s feeling of us being ready to receive her. Thereby you influence the key figures: number of times that you serve a customer, average sales per time a customer is served and turnover. Reception You must have contact with all customers that come into your shop/department. When all employees know where they should be in the shop it also means that there is always an employee that is the closest one to the door. Make eye contact and say hello to the customer – by nodding, smiling or by direct contact. And have a positive body language so that the customer knows that she has been seen and that we welcome her into the shop. We say hello to our customers so they can feel that they are very welcome in IDdesign and that we are there to help them! This increases the key figure ‘hitrate’. Then give the customer time to come into the shop – give the customer a bit of ‘space’ – if necessary. "No customers must pass us without us saying hello, nodding or smiling to them"

Sales & Service – Prioritisation of customers Make our customers your highest priority. It is when you are in direct contact with them in the shop that you have the greatest chance to sell. Telephone customers are not equally important (this may sound tough but we need to prioritise). If the phone rings, the seller must ask if it is all right for him to answers it and make sure that the conversation is as short as possible. If it seems to become a long conversation, you must ask for name and number so you can call back when there are no customers in the shop that are not being served. If everybody is busy with customers in the shop, then let the waiting customers know that you have seen them. In some cases we do not have the chance to answer the phone. We should, of course, do everything that we can to make sure that this does not happen, but it does happen – unfortunately. In these cases we must, as a minimum, have an answering machine that answers the call: “Welcome to IDdesign in X-town. We’re busy serving customers at the moment and we’re sorry that we therefore can’t answer your call. Please leave a message after the tone and we’ll get back to you as quickly as possible. Thank you very much for your call”. If we do not have an answering machine, the customers will call us without getting into contact with us. This is very poor customer service, and we cannot afford that at all. “Just a moment – there is a cup of coffee right over there – I’ll be back in a moment"

Sales & Service – Addressing customers Addressing your customer directly We must be the world’s best at handling people – through training and by using our experience. ’Read’ what kind of customer you are dealing with when you contact her directly. There are many types of customers – for instance: The ‘just having a look’ type. If they are looking at arts and crafts, then give them a half or a whole minute before you contact them. Remember that in the IDdesign chain there are no ‘browsers’ (whom you expect to buy nothing). Everyone is a potential customer – sooner or later!

Sales & Service – Uncover needs In your contact with the customer it is crucial that you uncover all the needs of the customer as quickly as possible and obtain all the necessary information. Always ask open questions so the customer does not answer negatively (yes/no). Open the dialogue by asking wh-questions such as: What may I help you with? What do you need/what are you looking for? What do you have in mind? What do you think about this living room set? If it is a customer who is going to buy something or who is just considering to do so, you should ask what kind of needs that are to be covered and what budget is available. When you have come a bit closer to knowing the needs, you can ask somewhat different questions, such as: “What will be placed next to XX? ? ” “Do you require something specific of the sofa? ” (for instance how much tear and wear will it be subjected to) An example is when you ask a customer to draw her living room so that she automatically puts the product somewhere in the layout. Remember to make individual allowances for individual customers – is it appropriate? If a colleague is a specialist of the product or group of products that the customer is talking about, you should feel free to refer the customer to that colleague if he/she is available. This gives the customer an impression of expertise, importance and trust and can increase the average order.

Sales & Service – Give the customer an experience IDdesign – an experience We do not just sell furniture and industrial design – we sell experiences. No one will buy anything because of what it is but because of what it does for them. Therefore our customers must also have the opportunity to ‘experience’ the things they buy from IDdesign. Would you buy a car without being offered a test-drive? Present the actual products to the customer. Let the customer sit in the sofa or in the chair, let her lie on the mattress, etc. This is the only way the customer can imagine what it would be like to sit in the sofa at home and imagine what it would look like. It is all about advantages and benefits of the products – it is about the experience that the products provide – it is not about kinds of wood, padding or foam in the mattresses (althogh this does depend on the customer’s profile. ). You are not a describer of products – you are an IDdesign sales person who bases his effort on the needs and feelings that the customer has. Turn the technical details into understandable advantages and befits. Show that you are excited! Show that we have the competence to give the customer advice about all the opportunities that exist, to demonstrate how the products work, and show that you have the expertise to point out what the customer really needs.

Sales & Service – Cross, plus and additional sales We are supposed to sell – not ’hard-sell’. This creates peace of mind. Always remember which opportunities there are for: Cross-selling – selling into another product category - selling another product category together with the primary product Plus-selling – selling a more expensive product than the one the customer is initially taking an interest in Additional sales – selling accessories relating to the primary product

Sales & Service – Completing the sale When you feel that the customer has made her decision – after you have shown her all the products that she has been interested in and she has decided to buy the products – then the sale must be completed in a proper fashion. Seize the moment to tell the customer about furniture that will soon be offered in the shop, etc. The completion of the sale must be an experience – the customer must feel that she is bringing home more than just a product. We create peace of mind – and we do this also by telling the customer that she has the chance to change her mind if she regrets what she has bought. This is handled by our exchange scheme and our right to exchange. A good completion of the sale increases the chance that the customer will visit IDdesign the next time she wants to browse a bit or has a real need for one of our products. You may ask the customer about her address or e-mail address. That makes it possible for you to inform her of any new products – and follow up on the sale. Finally, give the customer your business card. Thereby you show that you ‘stand by’ the deal that you have made – that you are happy with being responsible for it. You also show the customer whom she has talked to and can phone if there any questions. Satisfied customers (those on whom we base our business) will ask for you the next time they visit the shop.

Sales & Service – Following up on a sale is critical when you are attempting to obtain as much as possible of a customer’s life time value. The life time value of a customer in our line of business is (as we mentioned earlier) around 18, 000 dollars. Examples of following-up One or two weeks after the sale we send the customer a letter or call the customer. The aim is to make sure that the customer is pleased with the product(s) that she has bought and at the same time tell her that she is always welcome if she has any questions. In our experience customers always have at least ten questions about what they have bought. This is a strong factor that will strengthen the impression that we are following up on our customers and that we give them peace of mind. Those of our colleagues in IDdesign who have systematised their following-up on sales confirm that it is very good business because it gives a lot of automatic turnover and contributes to strengthening relations with our customers. “But if we contact our customers, then we are asking for complaints, ” some will say. It is correct that, if the customer has something to complain about, then we will hear about it. At the end of the day, we should be pleased about that. It gives us the opportunity to make the customer satisfied. Alternatively, dissatisfied customers will tell others about their experience of IDdesign in a negative way, which does not do us any good. "In our experience customers always have at least ten questions about what they have bought"

Important Message! Lunch

Basic Store Action Part 2 – Handling complaints Introduction Should we be pleased with complaints? Fundamentally, we should not – it is never a good thing when our customers are dissatisfied with our products or the service that we have given them. We need to take complaints seriously and do something about them immediately. The customer is actually doing us a favour by complaining.

Handling of complaints with IDdesign Complaints with IDdesign What if it is the customer who is to blame? you might ask. It does not matter. You have a customer who is dissatisfied and this damages your and IDdesign’s reputation. In itself it may not be that important to you and IDdesign if an individual customer is happy or not. What does a single complaint actually mean to the overall turnover of your shop? Some might say: “Not much”, but the truth is quite different: If you put it into perspective, it does mean something. • If your customer stops buying things from you, then you do not only lose this one deal, but also all the future deals this particular customer would have done. • When the customer tells other people about her experience in your shop, she is only rarely ready to admit that it was her own fault. Therefore it is not only this one customer who will have a bad impression of your company. It is also those who hear the ‘story’ and those who they tell it to.

Handling of complaints - Conclusion: It is more likely than not that complaints that are not tackled professionally will result in many hundred thousand kroner of lost turnover – every time! So the answer to the question of we should be pleased with complaints is also “Yes”. We should be pleased with the complaints so that we can make sure that we do not have the problem that we described above. Surveys have shown that whenever we register a complaint, there almost 50 other complaints that we do not hear about. In these cases there is a dissatisfied customer who does not tell us about her dissatisfaction. Thought-provoking! Often loyal customers complain. This is not because only loyal customers have things to complain about; it is simply because relatively new customers sometimes do not complain. They just go somewhere else and spend their money.

Handling of complaints – Avoid them! Avoid complaints It is our job always to notice where and when we receive complaints. This is the only way we can avoid them in the future. Write some statistics on the complaints. Go through the statistics regularly and look for areas where complaints can be avoided. Also make sure that all sales people know the service policy. If they know it in detail, many complaints will be avoided. And make sure that all your employees know the local legislation that concerns their work.

Handling of complaints – Do not ask for them! Do not ask for complaints ”He’s so rude that it does not surprise me that he is beaten up sometimes”. We have all heard this sentence at some point. The person talked about is someone who behaves in a way that gets him into trouble again and again. If we transfer this problem to our own world, the sentence might sound like this: ”There are so many things that they don’t tell you, so they do, of course, get a lot of complaints”. What this means is that, if we know there are certain things about a product that you should tell the customer about – and if we don’t, we now from experience that it will cause trouble and result in complaints - then we make sure that the customer is given the necessary information when she buys the product. IDdesign does not sell furniture with built-in (negative) surprises. Negative surprises are not helpful to anyone. The customer is not satisfied with what she has bought and therefore goes to another shop the next time. We lose trustworthiness, satisfied customers and thereby turnover. "IDdesign does not sell furniture with built-in (negative) surprises"

Handling of complaints – Negative surprices! Negative surprises to a customer might be: Families: Aniline leather is soft and lovely to sit on. However, if you spill something on it, it can be very difficult to get it off. The aniline leather has – like cotton – a tendency to fade. The bedroom: mattress protectors usually ‘settle’ after 5 -6 years. This means that one should expect that they should be replaced for them to work. Guest room: There is down in the cushions. This makes them very comfortable, but if the cushions are used as pillows, they become flat unless they are shaken regularly. If customers are not given this information, there is a great risk that they buy products with (negative) surprises. IDdesign gives our customers this information. Not to frighten them into buying other products, but to make sure that they get the maximum benefit from what they buy. Therefore we tell them about the products in a helpful way – not in a frightening way.

Handling of complaints How do we best avoid complaints? All products that have been sold from our shops/exhibitions must be checked by a salesperson before they are delivered to the customer. The lists of where products should be delivered are checked by a sales person so we avoid wrong deliveries, things that are missing, etc. Handling of complaints All complaints about new products that are caused by the factory are replaced. Then IDdesign/supplier is informed. Use the complaint form. In connection with furniture with padding that have been used for some time by the customer, the customer is offered to loan some furniture or a mattress while the complaint is being solved. If there are complaints about large things such as living room furniture, bookshelves, dining tables, etc. , then the seller must – as far as possible – visit the customer very quickly. Many complaints can be solved in the customer’s home, but the most important thing is that we show that we take an interest in the complaint. Any kind of complaint is a negative experience for the customer, but if we solve the complaint quickly, the customer will usually still have a positive impression of us. This might actually improve the customer’s view of IDdesign.

Handling of complaints – 10 steps to avoid them! 10 steps concerning handling of complaints Below you see 10 steps that can be used advantageously when handling complaints where the fault is actually yours: 1. Listen and let the customer finish speaking. 2. Show that you understand the customer’s situation (empathy) 3. Ask additional questions if you feel it is necessary. 4. Tell the customer that you are sorry. 5. Tell the customer what you intend to do about it and make sure that the customer accepts it. 6. Say when you are going to do it and make sure that the customer accepts it. 7. Do it – the problem is yours. 8. Check internally if it has been done. 9. Phone the customer and tell her it has been done. 10. Take precautionary measures internally so it does not happen again.

Handling of complaints – Good advice before you solve a complaint An angry/dissatisfied customer is like a kettle under pressure. If you do not ease the pressure, then it will explode. There a few things that you must concentrate on while you are solving the complaint. 1. See things from the customer’s point of view (empathy). How would you feel and how would you react if you were the customer and did not know what you know? 2. Be friendly and forthcoming. It is difficult to be angry with someone who smiles (genuinely). 3. Speak calmly and friendly. This has a soothing effect on the customer’s temper. The opposite has the opposite effect – the customer will be even angrier. Sometimes it is an advantage if the conversation can be kept in a formal tone of voice. It is difficult for the customer to be angry and also curse in a formal tone of voice. 4. Be very conscious about asking additional questions. It is very important that you know everything about the complaint before you solve it. You must be certain that you know what is needed for both the customer and yourself to be satisfied with the solution.

Handling of complaints – Good advice 5. Do you have the necessary competence to solve the problem? If you do not, you must consider from the beginning if other people should be involved. 6. Be very conscious about the answers that you give the customer. If you need to investigate the problem internally and get accept from someone before you can give your customer an answer, then it is very important how you tell this to the customer. If, for instance, you say: “I need to ask first if I can actually do this”, then it might be perceived as if you are saying: “I know that we can, but I need to ask if it is OK that we do it for you as well”. The customer might feel that you have considered if she is important enough and that you might not think so. Instead you should say: “I don’t think it is possible to do it like this, but I’ll just check (maybe agree on an alternative solution). In this way you have not indicated that you might be able to solve the problem. If you then do solve it in the way that your customer is saying, then the customer will feel that you have really done something for him or her personally. 7. If the mistake is yours, then say you are sorry. But only once. There is no good reason to say sorry more than once. If you do that, you might make the customer complain even more. 8. Never make a promise that you cannot keep – for instance an answer at a certain point in time. If you promise the customer to investigate something or give an answer at a certain point in time, then make sure that you can keep your promise. The customer will be dissatisfied again, and it will not be easier to make the customer satisfied.

Evaluation & Questions Day 1 ?

Basic Store Action Part 3 Introduction In order for the shop to work in an optimum fashion it is necessary for you to be in control of logistics. This requires that there must be a permanent place for the things that a product goes through from it is received until it is collected by a customer or delivered to a customer. By establishing zones/areas for specific types of products you make sure that you always know where the product is and that you minimise the risk that a product will be damaged. Therefore you should always have a high level of service and see to it that the product labels/marks telling you what should be done with a product and when the product has been put where you find it.

Workshop – Task 1 Make your own shop ready form?

Basic Store Action Part 3 Reception of products Your warehouse for receiving of products should always be clear so it is ready for receiving the products delivered to your shop. The place should work as a transit stock; that is, the products should only be there until they have been controlled in relation to the delivery note. Then they should be taken to the area where they belong Area where customers are handed products It is important that this area is always clean and tidy; it is here that customers get their final impression of your shop. Always make sure that the area is updated so it mirrors the campaign in your shop. The area is not staffed so it is important that there is a bell that customers can use. You also need to know internally in the shop who the person is who receives customers in the area where they are handed the products that they have bought. Products that are going to be collected by customers Here you put all the products that have been ordered by customers who are going to come and collect themselves. It is important that there are invoices and order forms on all products where it is noted when you have contacted the customer and the point in time when the customer is going to collect it.

Basic Store Action Part 3 Delivery zone In this area you must place the products that are to be delivered ’today’ with clear markings and numbers on products and consignment notes. Then there can be no doubt about which things should go together. At the end of each day you place the products there that are to be delivered to customers the next day. Products for the exhibition All products that are delivered to the shop with the label ’For exhibition’ are put in this zone. If the product can be assembled in the stock before it is put in the shop, then you must do this to avoid unnecessary mess in the shop during opening hours. Remember that you must prepare product information for all products before they are put in the shop. Products that are to be loaded into the shop Products that are delivered to the shop and are to be loaded into the shop (arts and crafts, lamps, duvets, etc. ) must as far as possible be put in the stock on wheels to avoid unnecessary mess in the shop during opening hours.

Basic Store Action Part 3 Returned goods There must be an area for the products that have been returned from customers and are to be sent to, for instance, the supplier. It is important that these products are equipped with a note about what should happen to the product and who is responsible. You must follow up on these products often to make sure that you get a credit note from the supplier in question. Waste disposal You must follow the local guidelines relating to sorting of waste/rubbish.

Important Message! Coffee

Workshop - Introduction A great part of the fight for customers is won in the shop. The shop is our battlefield – it is here that we win the battle! This means that the shop must be 100 % ready every day and live up to the requirements described in the section ‘Showrooms & WM. The following paragraphs describe all aspects of continuous work with the shop. The activities are divided into daily, weekly and quarterly activities. To support these activities some help tools have been prepared that you must fill in during the activities. Subsequently, they must be communicated to your employees and be put on the notice board. You are responsible that the activities are carried out. The fact that you are responsible does not mean that you must carry them out yourself! By the help of the descriptions of key tasks, that all employees have been given, you make sure that all activities have an ‘owner’. Daily Activities You must fill in the table ‘Shop ready’ every day. When you go through this table you need to look at the whole shop and therefore you make sure that the shop is always ready for sales. When this is done you must go through things with your employees in order to distribute the various tasks that must be carried out.

Workshop - Introduction Weekly activities Every Friday you must have a staff meeting, and you must use the table ‘Weekly staff meeting’. It is an agenda that contains the permanent items that you must go through. You also use the table for taking minutes and for making notes of who the people are who are responsible for various tasks and deadlines for these. Once a week you must go through the campaign plan to follow up on ongoing campaigns and plan/follow up on future campaigns. Remember that it is important that the shop mirrors the campaign. Go through the table ‘Follow up on Campaign’. Quarterly activites Once every four months you must visit your colleagues and competitors to obtain inspiration, but also to keep informed of your competitors’ strong and weak points. At the same time you must go through your own shop by the help of the ‘concept check’ table that, contrary to the ‘shop ready’ table, is concerned with the shop’s facade, lighting and other secondary rooms.

Workshop – Shop ready

Workshop - Checklist Get the shop ready Daily activities – Opening & closing Outdoor: Look at the outside facade with critical eyes and focus on the following issues: • Sidewalk clean • Facade and facade signs clean • Entrance clean • Windows clean – lights working • Outside lighting • Stationary/campaigne folio • Window merchandising • Visible prices on window products • Catalogues available • Open doors • Street sign clean & updated • Activities

Workshop - Checklist Get the shop ready Daily activities – Opening & closing Indoor: Look at the store with critical eyes and focus on the following issues • Clean floors & carpets • Products are clean, without damages and shown in correct function • All material-samples are clean, available and in place • All cash & carry products stocked and priced • Correct and visible prices on ALL products • All lighting working and adjusted • Projectors working and adjusted • Computers fully functional – IDdesign screensaver • Music on during all opening hours • Catalogues available & stocked • Money drawer locked when not in use

Workshop - Task 1 Create shop ready form in groups? Task 2 Create weekly staff meeting form in groups? Task 3 Create follow up on Campaigns form in groups?

Workshop – Task 2 Make your own weekly staff meeting form?

Workshop – Task 3 Make your own follow up on campagin form?

Important Message! Lunch

Local checklist

Local follow-up Task 1 Each store manager shall forward pictures from your from the following areas: • Store from outside • Entrance • Counter area • Entire store team Kindly forward the pictures to Ms. Birgitte Dahl Hansen bdh@iddesign. dk latest 21 st February 2008 Task 2 Each country kindly forward details regarding the following: • • • Name your five biggest competitors and give us their locations Name the five best shopping malls and their address Name the five best retail parks and their address Kindly forward the information to Mr. Søren Jørgensen sj@iddesign. dk latest 23 rd February 2008

Store manager attention points Task 3 Local actionplan on points from this Academy, with deadlines. Kindly forward the actionplan to Mr. Thomas Torp Christensen ttc@iddesign. dk latest 23 rd February 2008 Task 4 General input and feedback on this 2 -day Academy. Kindly forward it to Mr. Thomas Torp Christensen ttc@iddesign. dk latest 23 rd February 2008

Store evaluation - Buddya How to fill out ”store evaluation” form

Evaluation & Questions Day 2 ?