Aarons 2013 Annual Report Download - page 20

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10
Customer Service
We believe that customer service is an essential element in the success of our business. Customer satisfaction is critical because
our customers typically have the option of returning the leased merchandise at any time. Our goal, therefore, is to develop
positive associations about Aaron’s and our products in the minds of our customers from the moment they enter our
showrooms. Through Aaron’s Service Plus, customers receive benefits including a 120 days same-as-cash option, repair service
at no additional charge, lifetime reinstatement and other discounts and benefits. In order to increase leasing at existing stores,
we foster relationships with existing customers to attract recurring business, and many new agreements are attributable to
repeat customers.
Our emphasis on customer service requires that we develop skilled, effective employees who value our customers and project a
genuine desire to serve their needs. To meet this requirement, we have developed Aaron’s University, one of the most
comprehensive employee training programs in the industry. Aaron’s University is designed to provide a uniform customer
service experience without reference to store location or nature of store ownership. The primary focus of Aaron’s University is
standardizing operating procedures throughout our system. Our national trainers provide live interactive instruction via
webinars to entry level and management level associates. The program is also complimented with a robust e- learning library
with a constantly growing curriculum.
In addition to the e-learning program, Aaron’s University has a management development program that offers facilities-based
training for current managers and store management caliber associates. Additionally, we periodically produce video based
communications on a variety of topics of interest to store personnel regarding current Company initiatives. Our policy of
promoting from within improves employee retention and emphasizes our commitment to customer service as well as allowing
us to capture the benefits of our training programs.
Purchasing and Distribution
Our product mix is determined by store managers in consultation with regional managers and divisional vice presidents, based
on an analysis of customer demands.
The following table shows the percentage of Company revenues for the years ended December 31, 2013, 2012 and 2011
attributable to different merchandise categories:
Merchandise Category 2013 2012 2011
Furniture 36% 35% 32%
Electronics 29% 32% 36%
Appliances 22% 20% 17%
Computers 9% 10% 12%
Other 4% 3% 3%
We purchase the majority of our merchandise directly from manufacturers, with the balance from local distributors. One of our
largest suppliers is our own Woodhaven Furniture Industries division, which supplies the majority of the upholstered furniture
and bedding we lease or sell. We have no long-term agreements for the purchase of merchandise.
Sales and lease ownership operations utilize our 17 fulfillment centers to control merchandise. These centers average
approximately 118,000 square feet giving us approximately 2.0 million square feet of logistical capacity. Most of our
continental U.S. stores are within a 250-mile radius of a fulfillment center, facilitating timely shipment of products to the stores
and fast delivery of orders to customers.
We realize freight savings from bulk discounts and more efficient distribution of merchandise by using fulfillment centers. We
use our own tractor-trailers, local delivery trucks and various contract carriers to make weekly deliveries to individual stores.
Marketing and Advertising
Aaron’s reaches its customer demographic by utilizing national broadcast, cable television and radio networks with a
combination of brand/image messaging and product/price promotions. Examples of networks are as follows: FOX, TBS,
TELEMUNDO, UNIVISION and multiple cable networks that target our customer. In addition, we have enhanced our
broadcast presence with digital marketing and via social environments such as Facebook and Twitter.