'From a Professional Salesman, to a Business Consultant'

Posted by Joe Webb on December 28, 2018

  1. Industries are changing. I am having a very successful career in the furniture industry representing the finest manufacturer in the world. Selling furniture from the manufacturer to the retail furniture store to the customer has always focused on building a strong, personal relationship with the customer. And the high-end furniture industry has historically held a market share of 15% to 20% of all retail furniture sales.

  2. Times have changed for the better! It is an understatement to say that consumer buying habits have changed in the last five years and will change even faster in the next five years. Information technology has been the driving force behind the changes in the industry. A very high majority of customers prioritize convenience. Sometimes, convenience trump’s quality, service, and even price. They would prefer to have it all, but if given a choice, they want convenience. Industry changes include:

  • Convenience is the #1 priority for a majority consumers
  • Shopping and Information Gathering is initially done online, instead of in-store. Store traffic is down permenantly due to the use of the internet for research. A strong website is essential to be considered for a future purchase.
  • Price is a factor, but less so than convenience
  • Customer’s demand a high level service and have no patience for delays nor disappointment.
  • Information technology gives consumers the ability to discover new fashions; find outlets for those fashions; research different sources for choices, quality, rating, and prices; and, finally, make the final transaction for purchase.
  • If and only if the process is simple, Customer’s are more likely to make an impulse buy of a large ticket item.

2. Data Science can ensure that companies stay relevant

  • Historically the high-end market share has been 15% to 20% of sales. It is comprised of local, independent, generational, family-owned furniture stores. These stores tend to be focused on relationship selling and are design-oriented. Although this type of selling is romanticized as ‘mom and pop’, it has extreme challenges in today’s retail environment. Think of the local hardware store competing against Home Depot.

  • And just like the local, family-owned hardware store has had to change, so must the high-end furniture store. The current market share of the high-end is 9% and decreasing. Data Science must be used to make smart business decisions. Data must analyzed and used to make a high-end store more efficient, competitive, profitable and focused on its’ strengths. Information is powerful and must be used to make the best business decisions. That’s why I seek to become an expert in Data Science.

  • Information Technology has changed marketing forever. Traditional forms of advertising, like newspaper and TV, are becoming irrelevant. These are being replaced by digital re-targeting and other forms of digital ads. Stores that have not made this change are getting a very low return on their advertising investment. And most importantly, their sales are tumbling.

  • Large retail companies employ Data Scientists to target their ideal customer with overwhelming advertising. On the other hand, Local Store Ads placed in traditional forms of media are drowned out. This is extremely challenging because furniture sales are driven by advertising (due to the nature of the business and low frequency of purchases). A store must stay “Top of Mind” to stay relevant in the market place. Right now, stores that do not employ Data Scientists to analyze data are losing the marketing battle.

  • Furthermore, marketing is just one aspect of the business, that can be transformed by the analysis of data. Companies that employ Data Scientists to monitor, track, meet the demand of today’s comsumers have the greatest chance of success. For example:

  • Data is available to make a retail transaction more convenient.
  • Data is available to ‘prospect’ and find the customer more likely to be searching for your product. Then, data can be used to model what type of product information is likely to be requested.
  • Data is available to ensure that your product is priced correctly and to ensure that the purchase transaction is simplified.

3. More that being a professional salesman, I’m a business consultant.

  • I’m most passionate about analyzing all aspects of my customer’s business: inventory, sales, training, and marketing. In my 19 years as a professional salesman, I have offered my customers not only a transactional sale, but have served as a business consultant.

  • I look at Data Science and earning the title of a “Data Scientist” as a big step forward to offer great business advice to future customers.

  • My goal is to provide a valuable service to my employer, business, and customers. Becoming an expert in the Data Science field will allow me to do that.