Taking Hair Direct to the Next Level Part III

Monday, June 22, 2009 1:25 PM

Revamping the Hair Direct Operational Model

About 5 years ago Billy explained to me that our growth was stifled.  He explained we were rapidity reaching a point where our software would become a real detriment to our growth.  Worse yet, we would need to shelf several of the new programs and initiatives we had been working on. 

Our old patchwork system created inefficiencies that put unnecessary strain on the Hair Direct staff and made the implementation of our Standing Order Discount Program very difficult to manage.  Even more frustrating he knew what other major changes needed to be implemented to service growth, but our existing systems were too rigid to accommodate them.

We had separate, disconnected systems for our custom data and accounting.  Paper based records, charts and files that slowed customer service, a clumsy shopping cart program housed under a separate domain, inefficient data management that caused occasional shipping errors and slowed processing.  

Billy went to work to find a real solution oriented partner, with the right approach and the right tools for implementing solutions that supported our operational infrastructure.  Our vision was to totally automate every area of operations.  We needed to find a software solution company who would take the time to delve into our business to fully understand our unique marketing model.  We needed a company that would understand our core values and principals and the importance we place on the customer experience.

After a long and arduous search, Billy found the perfect fit.  His words were, Dad, these people will be able to solve all our problems and fulfill every customer experience fantasy, through a seamless automated network. Billy went on to tell me that was the good news, the bad news is they are extremely expensive, but they are the best.  I said, How expensive?  He said, about two hundred fifty thousand dollars to start and will go over one million.  I said, WOW that's scarier then hell, but let's go.  So, for about a year every morning our parking lot was about half full of a bunch of BMW driving eggheads.

They built our new system on a Microsoft SQL Server, a database platform that enables us to store and access data across all applications: Customer service, accounting, manufacturing and much more.  To create our customized system they also relied heavily on their own solution builder, a business application development platform built on Microsoft technology.

With a clear process and the best technological solutions available, under Billy's guidance our new BMW driving friends were able to develop a program that solved our problems in multiple phases based on our needs.  Phase one for example focused on the most pressing needs, managing customer information and improving service.  Gradually they implemented a comprehensive automated system that was able to adapt to any of our future needs.

Once we had fully integrated the new system our entire company experienced the impact.  It was so exciting.  Information that we once had a difficult time to locate was right at our finger tips.  Every process was streamline.  Best of all we were able to relaunch our Standing Order Program with confidence.

Critical Improvements Included:

• Integration: The Standing Order Discount Program became seamless and totally automated, with customer keyed orders routed in real time to our manufactures.  This is extremely exciting because for the first time ever in our industry the customer could now track where in production their hair is.
• Accessibility:  The new program put information in the hands of everyone in the company including management, customer service, shipping and accounting.
• Breath of Information:  All of our hair techs now have immediate access to an aggregate view of customer purchasing patterns and a snapshot view of the entire customer relationship.
• A Dramatic Improvement of the Customer Experience: The new system connects front ends and back end functions.  It enables customer to log in and view order progress, receive automated email reminders plus a whole bunch more.

It was all hands on before, now thanks to Bill Jr's initiative and a pile of loot, it's now all hands off.  The system runs itself.  With this new fully integrated scalable system in place, we can continue our rapid growth and take Hair Direct to the next level.

In my next blog I'm going to talk about Brandon and specifically our new website and how it will take Hair Direct into orbit.

Have a great hair day.

Bill