profile
profile: customer-focused business model
Lewis Group operates a decentralised, store-based business model where all aspects of the relationship with the customer are managed by the staff in the stores. This model has been consistently applied since the inception of the business and is based on the premise that the selling of furniture and the provision of credit are inter-dependent.
The only functions that are not managed at a store level are the credit approval and granting processes. This is operated centrally to ensure that credit risk policies are consistently applied across the group and to all
customers, and removes any subjectivity in the credit-granting process. Credit applications are submitted by the stores to head office where industry-leading technology, together with application risk and behavioural scorecards, is used to determine the creditworthiness of a customer. Decisions on credit applications are then relayed to stores within an average of just nine seconds.
The following diagram details the role of the store in managing the customer relationship, highlighting the efficiency of the business model.
