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Can Circuit City Do Custom?
New firedog installation brand offering specifies lots of customer service.
What defines "custom" integration? To many traditional custom integration companies, a hybrid retailer can never truly offer "custom" services.
But it appears that Circuit City Stores Inc. is making a strong attempt to combat that stereotype by including a myriad of higher-end customer care service requirements in its installation personnel as part of the company's new firedog program for existing homes.
Many of the customer service touches that firedog promises to bring are in some cases more strict than those currently presented by traditional custom installation firms.
In fact, CE Pro Retailing obtained a copy of the contract that Circuit City is requiring its fulfillment contractors to sign as part of the firedog program.
The contract has requirements that address appearance, cleanliness of the installation, training, equipment, minimum insurance levels and proper branding.
As part of the program, the company has actually greatly reduced the total number of subcontractors it hires.
The overall goal of the service is to help the company hone in on two fast-growth areas: home theater and PC services. The new logo, signage, uniforms and fixtures began appearing in the company's 632 locations in 158 markets in October 2006.
Some of the details of the firedog service have already been revealed. Among the more significant are that home theater installations will be limited to within 25 miles of Circuit City locations, and that customers with high-speed Internet connections will be able to access firedog's remote technical assistance for PCs 24/7 or online (http://www.firedog.com).
Customers will be sold the components and will schedule installation service at the time of purchase inside a Circuit City retail location; however, in-home consultations will also be offered.
From a branding standpoint, the firedog logo features a stylized dog jumping through a hoop to symbolize the brand commitment to "do whatever it takes to get the job done" for customers. The dominant color in the logo is green, which, in electronics often signifies "go" or "on," according to a statement by the company.
Advertising will soon be in place to further support the brand. Stores are also being outfitted with new tools and materials to help customers and sales associates understand the complexity of installing home theater systems.
One key to success of the system could hinge on the sales training, structure and new scheduling software. But why is Circuit City even attempting to provide more customized installation services when the company appears to be doing just fine?
The company reported total revenues of $10.4 billion in 2005, up from 38 percent from the previous year. For the first six months of 2006, the company's fiscal year also showed significant gains of 14 percent in revenue (to $5.45 billion) and nearly 13 percent in gross profit (to $1.32 billion).
"All of our work in this area ties back to the digital home services pillar of our strategic framework and supports future growth for the company," says Jeff Bishop, vice president of service operations. He says the company's focus is in two very high-growth areas:
"We estimate these areas together represent a $20 billion consumer market opportunity by 2010. By putting these businesses together under a single leadership team and single brand, we can leverage synergies and customer offerings that deliver on the ever-growing category of convergent products."
As an example of convergence, Bishop cites high-def gaming on a home theater, enabled by a wireless network.
"Imagine playing Xbox Live against other family members across the country on your big screen ... and having this experience delivered through one trusted partner. As the lines between the PC and the TV blur, we will be at the crossroads of this convergence with a single distinctive voice.
This will be a core element of differentiation from our competition, with PC services, home theater installations and convergence services all under one umbrella."
The specific firedog brand name was chosen among more than 6,000 possible names, according to Bishop. "We chose firedog, a name that captures the attributes that we want our technicians and installers to embody: helpful, knowledgeable, friendly and reliable.
"It's simple, it's fun, and it's focused on our customers."
But it appears that Circuit City Stores Inc. is making a strong attempt to combat that stereotype by including a myriad of higher-end customer care service requirements in its installation personnel as part of the company's new firedog program for existing homes.
Many of the customer service touches that firedog promises to bring are in some cases more strict than those currently presented by traditional custom installation firms.
In fact, CE Pro Retailing obtained a copy of the contract that Circuit City is requiring its fulfillment contractors to sign as part of the firedog program.
The contract has requirements that address appearance, cleanliness of the installation, training, equipment, minimum insurance levels and proper branding.
As part of the program, the company has actually greatly reduced the total number of subcontractors it hires.
The overall goal of the service is to help the company hone in on two fast-growth areas: home theater and PC services. The new logo, signage, uniforms and fixtures began appearing in the company's 632 locations in 158 markets in October 2006.
Some of the details of the firedog service have already been revealed. Among the more significant are that home theater installations will be limited to within 25 miles of Circuit City locations, and that customers with high-speed Internet connections will be able to access firedog's remote technical assistance for PCs 24/7 or online (http://www.firedog.com).
Customers will be sold the components and will schedule installation service at the time of purchase inside a Circuit City retail location; however, in-home consultations will also be offered.
From a branding standpoint, the firedog logo features a stylized dog jumping through a hoop to symbolize the brand commitment to "do whatever it takes to get the job done" for customers. The dominant color in the logo is green, which, in electronics often signifies "go" or "on," according to a statement by the company.
Advertising will soon be in place to further support the brand. Stores are also being outfitted with new tools and materials to help customers and sales associates understand the complexity of installing home theater systems.
Organizing the Sales
One key to success of the system could hinge on the sales training, structure and new scheduling software. But why is Circuit City even attempting to provide more customized installation services when the company appears to be doing just fine?
The company reported total revenues of $10.4 billion in 2005, up from 38 percent from the previous year. For the first six months of 2006, the company's fiscal year also showed significant gains of 14 percent in revenue (to $5.45 billion) and nearly 13 percent in gross profit (to $1.32 billion).
"All of our work in this area ties back to the digital home services pillar of our strategic framework and supports future growth for the company," says Jeff Bishop, vice president of service operations. He says the company's focus is in two very high-growth areas:
- Developing a deep-seated competency in home theater installation
- Focusing on our fast-growing PC Services business-in-store, in-home, and remote services solutions.
"We estimate these areas together represent a $20 billion consumer market opportunity by 2010. By putting these businesses together under a single leadership team and single brand, we can leverage synergies and customer offerings that deliver on the ever-growing category of convergent products."
As an example of convergence, Bishop cites high-def gaming on a home theater, enabled by a wireless network.
"Imagine playing Xbox Live against other family members across the country on your big screen ... and having this experience delivered through one trusted partner. As the lines between the PC and the TV blur, we will be at the crossroads of this convergence with a single distinctive voice.
This will be a core element of differentiation from our competition, with PC services, home theater installations and convergence services all under one umbrella."
The specific firedog brand name was chosen among more than 6,000 possible names, according to Bishop. "We chose firedog, a name that captures the attributes that we want our technicians and installers to embody: helpful, knowledgeable, friendly and reliable.
"It's simple, it's fun, and it's focused on our customers."
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Article Topics
News · Big-Box Retailers · People and Places · Big-box Retailers · People And Places ·About the Author
Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.
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