Lumber Liquidators 2009 Annual Report Download - page 12

We offer our customers a financing alternative through a proprietary credit card, the Lumber Liquidators credit card,
underwritten by third party financial institutions and at no recourse to us. In October 2009, we entered into a three-year
underwriting agreement with GE Money Bank (“GE”). As part of the credit program with GE, our customers may use their
Lumber Liquidators credit card to tender installation services provided by HSS. We generally utilize the credit program for
promotional opportunities, including programs for up to 18 months of deferred interest with payments.
Call Center, Website and Social Media
Our call center is staffed by flooring experts cross-trained in sales, customer service and product support. In addition to
receiving telephone calls, our call center staff chats online with visitors to our website, responds to e-mails from our
customers and engages in telemarketing activities. Customers can contact our call center to place an order to be delivered
directly to their home or picked up at a nearby store, to make an inquiry or to order a catalog. Our website serves both to
educate consumers and to generate sales, whether through a store, our call center or directly via the website itself. Visitors to
our website can search through a comprehensive knowledge base of tools on wood flooring, including browsing product
reviews, frequently asked questions and an extensive “before and after” gallery from previous customers, as well as research
detailed product information and how-to videos that explain the installation process.
Flooring samples of all the products we offer are available in our stores, our call center and our website. In addition, our
new iPhone app, The Floor Finder, gives consumers access to nearly 200 digital samples as well as a variety of tools
designed to facilitate flooring purchase decisions. The app also gives consumers flooring specifications, such as hardness and
installation information. We are active in social media in order to connect to our consumers with the newest technology as
well as build social networks with our satisfied customers. We have an active presence on Facebook, YouTube and three
unique Twitter accounts.
Catalogs and Other Mailings
Our direct mail strategy focuses on regular contact with our customers and the targeting of prospective purchasers. We
have a healthy and growing database that we utilize to drive our direct mail and overall marketing strategies. We distribute
our catalogs, as well as other direct mailings, to key consumer and commercial segments around specific store locations.
Copies of our catalogs can also be obtained through our stores, our call center and our website. We also utilize direct mail for
call-to-action promotions. We believe these mailings contribute to increases in store traffic and call center volumes that lead
to more sales. We expect to continue expanding our direct mailing efforts to prospective customers in markets where we
have stores.
Our Marketing and Advertising
Our marketing strategy emphasizes product credibility, value, brand awareness, customer education and direct selling.
We have structured our marketing and advertising strategy to correspond with our understanding of the hardwood flooring
purchase cycle. We increase brand awareness in a variety of ways, including advertising and demonstration of our value
proposition to customers. We have invested significantly to build awareness and demand for all of our proprietary brands.
We believe that our Lumber Liquidators brand is positioned based on value, selection, price and service, while our
Bellawood brand is known as a premium flooring brand within the marketplace. We establish our credibility primarily
through the strength of our product and the attractiveness of our pricing. We believe that we have achieved a reputation for
quality and low prices, and that our proprietary brands are recognized for excellence by our customers. We try to avoid being
perceived as a volume-driven discounter, so while our promotional calendar focuses on particular buying cycles, we
generally try to hold our sales around events where we can create some excitement among customers.
Our brand credibility also benefits from celebrity endorsements and product placement opportunities. We have long-
term relationships with respected, well-known home improvement celebrities Bob Vila and Ty Pennington. Bob Vila, in
particular, has been associated specifically with our Bellawood proprietary brand for several years. We work with Ty
Pennington on a proprietary line of flooring branded as the Ty Pennington Collection.
To increase brand awareness, we conduct ad campaigns on both a national and local level using both traditional and new
media. We work with shows such as “Extreme Makeover: Home Edition” and HGTV’s “Dream Home Sweepstakes,” which
use our products and enable potential customers to see both what our flooring will look like after installation and the relative
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