Several years ago, we experimented with installing TV screens in the back rooms of 10 stores. This was in response to management's concern that store personnel were not following weekly plans. The company president was filmed, outlining the five key objectives for the week, ranking each store on effectiveness of implementation. Each week, results were reviewed. No manager wanted to be questioned on shortfalls to plan. The resulting peer pressure began to stimulate improved performance. The 10 test stores outperformed the rest of the chain by an average of 50 percent in implementing plan.

A 15-minute tape, shown to every employee, was more effective than the previous 2-½-inch-thick printed document. The reason was obvious. The printed piece was too large to absorb, and if the reader did make an attempt, it delayed other functions.

Based on the test, screens were installed in all 250 stores. Internalizing TV production functions, with a director, camera operator, assistant and editor, lowered costs per commercial from $150,000 to $600. Annual studio costs to set up and operate were under $1 million. Payback was under 10 months, with ongoing annual savings of $3 million, including increased messaging.

As the screens sat idle during the day, they were moved to the selling floor, to promote specific product programs. The results were surprising. Average increases of 400 percent were achieved when the authority figure delivered the message. At first, this created some turmoil, requiring the issuing of rain checks, to compensate for out-of-stocks, until adequate stocking levels could be predicted. Another benefit was discovered. Pricing became less sensitive, as the value proposition was clarified. The president, as consumer advocate, was more believable than a paid spokesperson. Moreover, his message differentiated his business from competitors in a meaningful way.

Several years later, the next president of the chain dismantled the system, as he was uncomfortable on camera, or communicating with employees in this medium. His tenure proved to be short and the idea became distant history, until a new president began to utilize mass media to tell consumers about his private label program. Will he move to communicating in-store, given the proven effectiveness of the system?

Stay tuned; a new case history may be around the corner. For other retailers seeking to find a competitive advantage, today's technological advances offer an opportunity to use flat screens, centrally controlled, without the spokesperson leaving the office. This use of an authority figure isn't for everyone, as it requires several factors to come together, but when they do, the results can be exciting and profitable.

Source:  RetailWire, November 20, 2009