OfficeMax ctrl-ing its own merchandising destiny

NAPERVILLE, ILL. —The name may take some getting used to, but the newest service offering from OfficeMax, known as “ctrlcenter,” is something the company’s technology-challenged customers will be able to appreciate.

The online technology support product was launched last month as a competitive alternative to services such as Staples’ EasyTech and Best Buy’s Geek Squad. Those offerings typically require scheduling an appointment to have a technician visit a customer’s home or office. The OfficeMax concept provides customers around-the-clock access to technicians who are able to fix problems from remote locations without visiting a customer’s home or office.

According to Ryan Vero, OfficeMax evp of marketing and chief merchandising officer, the service was developed after the company realized that 90% of computer problems can be fixed remotely, thus eliminating the expense and intrusion of providing a service that required dispatching a technician to a customer’s location.

“Our core small business customers don’t have the resources in their businesses to have an information technology staff, so it was clear to us that our customers needed a service that was flexible, efficient and affordable,” Vero said. “Our mission is helping our customers do their best work so this fit nicely into the sweet spot of what we do. It is focused on small businesses that don’t have an information technology staff.”

To support the product launch the company developed a variety of point-of-purchase materials like off-shelf displays and created a boxed product merchandised on an endcap that contained a CD customers could insert in their computer to launch the ctrlcenter application.

“Think of it as a prepaid support service,” Vero said.

In addition to visual merchandising, OfficeMax also provided special training to store associates to equip them with product knowledge.

“We focused on getting associates comfortable with the applications so they can talk intelligently about the product. We also encouraged our associates to use the service because there is nothing like experiencing it,” Vero said.

When OfficeMax associates and customers use the service the technicians they are talking to aren’t technically OfficeMax employees. The retailer teamed with a company called HiWired to handle the behind the scenes functionality. HiWired operates tech support centers located throughout the United States, which Vero said was an important determinant in HiWired’s selection as a service provider.

“Our customers are not talking to someone halfway around the world when they are in touch with ctrlcenter. The location of the technicians is something our customers are sensitive to so it is an added value for us,” Vero said.

If a customer has a problem that requires an on-site visit, OfficeMax has the capability to send a technician into the field, but that is not the primary way the company wants to interact with its customers.

“We are not going to ask our customers to bring their equipment into a store and we are not going to send a technician. We are going to start by saying, ‘Let us try and diagnose and fix the problem remotely,’” Vero said.

While OfficeMax isn’t the first company to offer a technology support service, its offering represents an innovative alternative in a space already occupied by competitors. For example, Best Buy’s Geek Squad was already well-established in August 2005 when Staples launched a service called Easy Mobile Tech. Earlier this year that service was expanded nationwide and on-site technicians were added to Staples stores. In addition, the “mobile” aspect of the offering was deemphasized as it was rebranded to Staples EasyTech.

For OfficeMax, the introduction of ctrlcenter is the latest in series of innovative initiatives dating back to last fall when the company introduced a reality show-based back-to-school campaign. That was followed by the introduction of a proprietary writing instrument brand called Tul that now appears poised for continued expansion.

The company also rebranded its print and document services business as OfficeMax ImPress and during the holidays launched a series of 20 different buzz-generating Web sites. More recently, the company announced a licensing deal with The Sharper Image that enables it to offer customers exclusive Sharper Image-brand office furniture and accessories. At the other end of the furniture spectrum, the company also inked a deal that will bring Broyhill brand furniture to OfficeMax.

In addition to exclusive deals, new service offering and proprietary brands supported by clever marketing, OfficeMax is converting stores to a format called Advantage that was developed 18 months ago. The company opened 42 Advantage stores last year and remodeled 12 units to the new format. This year, it plans 60 new stores and 100 remodels which by year-end means the company will have more than 200 of its approximately 900 stores in a more customer-friendly and productive format.