Larry Rosen
Chairman and Chief Executive Officer
Harry Rosen, Inc. / Retail
Larry Rosen is chairman and chief executive officer of Harry Rosen Inc., a Canada-based chain of 16 high-quality menswear stores that was co-founded in 1954 by his father. Rosen began learning the business by working as a sales associate in a Harry Rosen store as a teenager. He practiced law for several years before joining Harry Rosen as a buyer in 1986. In 1997, he was named the company’s president and chief operating officer, and he became its chairman and CEO in 2000. Rosen’s many honors and awards include the 2014 Distinguished Retailer of the Year Award from the Retail Council of Canada.
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Consumer Trust in Company Culture: A Competitive Advantage
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Contributor / Larry Rosen
Larry Rosen
Retail
Breaches,Building Brands,Institutions and Context,Leadership,Long Term Focus,Regulation,Retail
I'm Larry Rosen, the CEO of Harry Rosen Inc., Canada's largest quality menswear retailer, and for us, trust has always been the centerpiece of our organization. And without earning the trust of our customers, without earning the trust of our associates and earning the trust of our vendors, I don't think we could point to 62 years of fairly significant success in men's retail.
We find that when you can earn a man's trust and make the process easy for him, he'll reward you with his loyalty over the years, and when you think of a man's shopping every year and building a business wardrobe and a personal wardrobe, that's pretty good annuity to have if you can keep his trust.
And so, everybody knows it's part of our cultural mission as a company not to let a customer down, not to lie to a customer. If something doesn't look right on a customer, you tell them. I mean, it's not about the sale today. It's about the long-term relationship we have. So it's not uncommon to hear on a selling day that, "You know what? That's not the right thing for you today. I don't have exactly what you need." To us, selling isn't about short-term. Selling is about lifetime value of a customer. And, you know, the other part of it is when you violate trust, when you let a customer down and listen, we have 1,000 associates, somebody's going to do something that upsets a customer where he feels he's been betrayed, and how we recover from that is so critical. I personally spend a decent part of my week dealing with customer problems¬¬ — we'll do whatever it takes to earn back that trust.
And even when they've lost confidence in us, when we react the way we do with that very, very proactive approach to earning back their trust, they come back to us. And in fact, they become more passionate about our brand.
BUMPER: Fostering a Culture of Trust
There's — the things that keep our associates in line with our values — there's really two things that really make a difference. One is, we as a company spend more on training, I believe, than any other company per associate. We train them on how to deal with the customers. We teach them all the philosophy of earning customers' trust. The other part that really is important, and this is, I mean, people have written on this, but it's not easy to quantify, is the culture of our company.
Our culture supports the right behaviors. It's funny because on occasion, a competition have come in and hung out big dollars and hired away people thinking they're going to get — going to get a piece of our expertise — but when the culture is a surrounding, the behavior isn't as natural, and people — people will behave in accordance with a great corporate culture.
BUMPER: Redefining Customer Engagement
It's interesting because on a strategy level, when we saw that the landscape was changing three or four years ago when the American department stores announced they were coming in, we realized that we had to look for competitive advantages that were compelling that couldn't be duplicated. Why do customers really choose us? What makes us a compelling choice? And what can we do that they can't imitate?
A pinnacle moment for us as an organization — as a relationship-based seller — came a few years ago when we used to call our associates on the floor, we used to call them sales associates. And we realized that that term really, I mean, everybody has this thing of a salesman on the floor and they, you know, the guy you have to hide from and who, when he approaches you, says, "May I help you?" and you say, "I'm just looking. Thank you."
And we changed their name to clothing advisors because we wanted a name that said that these are experts, that they're highly trained experts that are going to help make the shopping process for you easier. That one little change improved the whole culture of the organization, and I think it improved the client experience because we consistently refer to our people on the floor as clothing advisors.
You think it's, I mean, well, that's a simple name change. But it really encapsulated what we were trying to do and what our key competitive advantage was.
The change of name from a sales associate to clothing advisor, I think it really related a lot to the issue of customer trust. It supported our competitive advantage, but it also supported the fact that our clients could have trust in our associates to help them build their wardrobes and shop with us long-term.
We find that when you can earn a man's trust and make the process easy for him, he'll reward you with his loyalty over the years, and when you think of a man's shopping every year and building a business wardrobe and a personal wardrobe, that's pretty good annuity to have if you can keep his trust.
And so, everybody knows it's part of our cultural mission as a company not to let a customer down, not to lie to a customer. If something doesn't look right on a customer, you tell them. I mean, it's not about the sale today. It's about the long-term relationship we have. So it's not uncommon to hear on a selling day that, "You know what? That's not the right thing for you today. I don't have exactly what you need." To us, selling isn't about short-term. Selling is about lifetime value of a customer. And, you know, the other part of it is when you violate trust, when you let a customer down and listen, we have 1,000 associates, somebody's going to do something that upsets a customer where he feels he's been betrayed, and how we recover from that is so critical. I personally spend a decent part of my week dealing with customer problems¬¬ — we'll do whatever it takes to earn back that trust.
And even when they've lost confidence in us, when we react the way we do with that very, very proactive approach to earning back their trust, they come back to us. And in fact, they become more passionate about our brand.
BUMPER: Fostering a Culture of Trust
There's — the things that keep our associates in line with our values — there's really two things that really make a difference. One is, we as a company spend more on training, I believe, than any other company per associate. We train them on how to deal with the customers. We teach them all the philosophy of earning customers' trust. The other part that really is important, and this is, I mean, people have written on this, but it's not easy to quantify, is the culture of our company.
Our culture supports the right behaviors. It's funny because on occasion, a competition have come in and hung out big dollars and hired away people thinking they're going to get — going to get a piece of our expertise — but when the culture is a surrounding, the behavior isn't as natural, and people — people will behave in accordance with a great corporate culture.
BUMPER: Redefining Customer Engagement
It's interesting because on a strategy level, when we saw that the landscape was changing three or four years ago when the American department stores announced they were coming in, we realized that we had to look for competitive advantages that were compelling that couldn't be duplicated. Why do customers really choose us? What makes us a compelling choice? And what can we do that they can't imitate?
A pinnacle moment for us as an organization — as a relationship-based seller — came a few years ago when we used to call our associates on the floor, we used to call them sales associates. And we realized that that term really, I mean, everybody has this thing of a salesman on the floor and they, you know, the guy you have to hide from and who, when he approaches you, says, "May I help you?" and you say, "I'm just looking. Thank you."
And we changed their name to clothing advisors because we wanted a name that said that these are experts, that they're highly trained experts that are going to help make the shopping process for you easier. That one little change improved the whole culture of the organization, and I think it improved the client experience because we consistently refer to our people on the floor as clothing advisors.
You think it's, I mean, well, that's a simple name change. But it really encapsulated what we were trying to do and what our key competitive advantage was.
The change of name from a sales associate to clothing advisor, I think it really related a lot to the issue of customer trust. It supported our competitive advantage, but it also supported the fact that our clients could have trust in our associates to help them build their wardrobes and shop with us long-term.