Raleigh & Rosse : Measures to

Motivate Exceptional Service

Presented by :
Manu Sharma (H16148)
Ram Srinivas Sai (H16156)
Sanchit Telang (H16162)
Vignesh (H16180)
 Situational Analysis

Privately held specialty retailer of luxury goods. Excellent customer service is the differentiating factor
Goods sold are customized, made to order and not easily available. Holding inventory of such high capital goods
strategically difficult. Optimized inventory management system essential
Customer service needs to be customized and fine tuned based on location and clientele catered to. Hence
Behaviour Based Approach needed
Ownership Culture leading to Professional Entrepreneurship : Store Managers granted a free hand in
administration including scheduling and performance management of Associates
R&R University provides best in class sales training and promotes pro-customer approach
SPH system making current sales job highly demanding requiring careful balancing of sales and non sales
activities. Very difficult to segregate the two
Recession leading to reduced demand for luxury goods which in turn reduced earnings per hour for salesforce
SPH system coupled with market conditions leading to lack of motivation and burn out
Lax attendance enforcing systems leading to compliance issues and potential law suits
 Problem Statement
Given the current market condition, what would be the correct Compensation & Rewards System
for the sales force to ensure compliance and increase profitability?

Quality and
Exclusivity
of Luxury
Items

Critical Success Aesthetics

of the Store
Customer
Service

Factors
Brand
Image of the
Firm

Customer High High

High
High High
Customi People Contact Process
Expectation zation Focus
Discretion
Time Orientation
 Critical Analysis of SPH

Service Excellence : Non sales tasks like strategic meetings essential for success. Similarly, time taken
to locate, source and deliver merchandise critical. SPH not rewarding efficiency in such critical tasks
Exclusivity: Understanding customer needs and suggesting products not rewarded
Aesthetic Appeal : Arrangement of store display critical. However, task categorized as a non sales
activity and not rewarded under SPH
Customer Delight : Going beyond scope of job to enhance customer experience not rewarded
Brand competence : SPH not revised to accounting for lower demand due to recession. Lack of
compliance with statutory minimum salary regulations leading to highly public lawsuits damaging
brand image
Performance orientation : SPH aimed at bringing in meritocracy and high performance leading to
potential sharking
Process implementation : Attendance system not implemented strictly leading to exploitation of
loopholes
 Balanced Scorecard Approach

LSC(Luxury Store Characteristics) KPI (Key Performance Indicator)

Service excellence Av. personnel productivity (sales/personnel)

Customer Acquired Av. Number of customer acquired

Brand competence Av. waiting time to be served

Mystery customer scorecard Score given by mystery customer

Customer Satisfaction Net Promoters Score

Based on the scored obtained in Balanced scorecard approach we decide the incentives to be
given to sales person
 Action Plan

Maintain current rate of basic pay and ensure that salary paid is above statutory minimum wage payable
Sales Associate : Variable pay to be a function of the cumulative Balanced Scorecard score
Store Manager : Variable pay to be decided by store performance based on Financial Indicators:
Avg. cost of works per square meter
Avg. cost of personnel
Avg. cost of repairs / maintenance
Avg. revenue generated per square foot
For Associates going beyond their duty to ensure customer delight, give relational rewards like Best Salesman
of the Month based on the NPS score
Out of court settlement of current cases against the firm to preserve brand image