Restoration Hardware Emerges From “Dark Ages” with New CRM System

Restoration Hardware CRM systemRestoration Hardware CEO Gary Friedman wants to get out of the “dark ages” when it comes to CRM.

Friedman discussed his thoughts about the company’s CRM system during the company’s fourth-quarter earnings conference on March 27.

“The other thing that we'll be implementing this year is a salesforce customer relationship system, management system and it’s really the leading customer relationship management solution that will provide a single view of the client for galleries, all of our stores, and our client service centers,” Friedman said, according to Seeking Alpha. “It elevates the customer experience by enabling associates to service clients faster and more accurately.”

Friedman said the new CRM system will provide access to order, product, and other key information, including a customer’s lifetime value.

“So we can see the lifetime interaction and value of this customer,” Friedman explained. “And today, we don’t have that. So we’re still today operating kind of in the dark ages from a customer relationship management point of view. So when we rollout the salesforce system, this is going to leap frog ahead.”

What’s more, Friedman said as Restoration Hardware is positioned at the luxury end of the market, there is an opportunity to continue to elevate service and the quality experience that its customers receive.

“We’re building a world-class kind of interior design platform and we believe we have the credibility to do that, because I think if you look at the execution in our galleries, we execute as well as world-class interior designers the way we present in our stores,” Friedman Restoration Hardware CRM systemexplained. “But we think there’s opportunities to elevate the service, to add installation services, to be more full service like an interior designer. The question is at what point do you charge for that service and how high do you take that service before really it doesn't make sense to do it for free. So we’re doing a lot of work around interior design service and believe we can elevate that effort over the next several years.”

Restoration Hardware opened a new 1.5 million square-foot distribution center in Patterson, Ca.

“It’s the next planned step in the long-term growth of our network and it's a really next-generation kind of distribution center,” Friedman explained. “Each one of these we get smarter, we get better, we execute better, we take learning from those and we can then take those learning into our existing centers. Now we’re in a position where we’re making more meaningful investments, system investments, on both sides with our vendors and internally here and connecting those and building a kind of supply network and a supply platform that we think will be very unique in our industry.”

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