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Explain how a retailer should determine which services to offer. Learning Objectives : 2 Learning Objectives Describe the various management problems involved in retail selling, salesperson selection, training and evaluation. Describe the retail selling process. Understand the importance of a customer service audit. Customer Service : 3 Customer Service Merchandise Management Building and Fixture Management Promotion Management Price Management Credit Management A Recap Customer Service : 4 Customer Service High-Quality Service is the type of service that meets or exceeds customer’s expectations. Relationship Retailing comprises all the activities designed to attract, retain, and enhance long-term relationships with customers. A Shopper’s Wish : 5 A Shopper’s Wish Please… Let me find a parking place near the store Do not let me pay too much Have the sales staff pretend that they care Do not make me have to return anything Get me in and out as fast as possible Do note make me have to wait in line to make my purchase Let this experience be somewhat enjoyable Do not make me have to deal with other obnoxious shoppers The Cross Shopping Trend : 6 The Cross Shopping Trend Customer Service : 7 Customer Service High-performance retailers can develop relationships with their customers by offering two benefits: Financial benefits that increase the customer’s satisfaction. Social benefits that increase the retailer’s social experience with the customer. Three Basic Tasks of Retailing : 8 Three Basic Tasks of Retailing Customer Service : 9 Customer Service Customer Service consists of all those activities performed by the retailer that influence (1) the ease with which a potential customer can shop or learn about the store’s offering, (2) the ease with which a transaction can be completed once the customer attempts to make a purchase, and (3) the customer’s satisfaction with the transaction. Transient Customer is an individual who is dissatisfied with the level of customer service offered at a store or stores and is seeking an alternative store with the level of customer service that he or she thinks is appropriate. Customer Service : 10 Customer Service Merchandise Management: Keep in stock the merchandise a customer wants. Building and Fixture Management: Heating and cooling; availability of parking spaces; ease of finding merchandise; layout and arrangement of fixtures; placement of restrooms and lounge areas; location of check-cashing, complaint, and returns desks; lighting; and width and length of aisles. Promotion Management: Provides customers with information that can help make purchase decisions. Customer Service : 11 Customer Service Price Management: Clearly marked and visible; fair, honest, and straightforward; and true price of credit. Credit Management: Both in-house and bank card, should also be integrated into the customer service program. Customer Service : 12 Customer Service Questions to assess whether a retailer’s promotion is serving the customer: Is the advertising informative and helpful? Does the advertising provide all the information the consumer needs? Are the salespeople helpful and informative? Are the salespeople friendly and courteous? Are the salespeople easy to find when needed? Are sufficient quantities available on sales promotion items? Do salespeople know about the ad and what’s being promoted and why? Customer Service : 13 Customer Service Nordstrom, by providing high-quality customer service, has become a leader in relationship retailing and has many loyal long-term customers. Common Customer Services : 14 Common Customer Services Pretransaction Services Transaction Services Posttransaction Services Common Customer Services : 15 Common Customer Services Pretransaction Services are services provided to the customer prior to entering the store. Convenient Hours Information Aids Common Customer Services : 16 Common Customer Services Transaction Services are services provided to customers when they are in the store shopping and transacting business. Credit Layaway Gift Wrapping and Packaging Check Cashing Personal Shopping Merchandise Availability Personal Selling Sales Transaction Common Customer Services : 17 Common Customer Services Personal Shopping occurs when an individual who is a professional shopper performs the shopping role for another; very upscale department and specialty stores offer personal shoppers to their clients. Dwell Time refers to the amount of time a consumer must spend waiting to complete a purchase. Posttransaction Services : 18 Posttransaction Services Posttransaction Services are services provided to customers after they have purchased merchandise or services. Complaint Handling Merchandise Returns Servicing and Repair Delivery Retailing Truism : 19 Retailing Truism A retailer’s job isn’t over when the cash register’s bell rings. Six Rules to Follow WhenHandling a Customer’s Complaint : 20 Six Rules to Follow WhenHandling a Customer’s Complaint Acknowledge the importance of the customer. Before the customer even begins to explain his or her problem, acknowledge that the customer is important by telling him or her that you are there to help. Try to ease the customer’s frustration. Understand the customer’s problem. Ask all the questions needed to completely understand the situation. Determine the responsibilities of each party and what went wrong. Do not assign any fault at this stage. Repeat the problem (as you understand it) to the customer. Without interrupting the customer, paraphrase the problem as you understand it. Six Rules to Follow WhenHandling a Customer’s Complaint : 21 Six Rules to Follow WhenHandling a Customer’s Complaint Think of all possible solutions. Using your creative powers, think of all possible, even wild, solutions that could remedy the problem. Agree on the solution. Determine the solution that is fair to both parties and then have both parties agree to it. Above all, make sure the customer leaves feeling as you would want to feel if you were the customer. If you would not be satisfied with the solution if you were the customer, start over. Remember, it is better to lose a little now than to take a chance on losing a customer for life. Determining Customer Service Levels : 22 Determining Customer Service Levels Retailer’s Characteristics include store location, store size, and store type. Competition: Services offered by competitors will have a significant effect on the level and variety of customer services offered. Type of Merchandise can be an indication of the types of services. Price Image: Expectation of more services from a high-price image than a discounter. Target Market Income: Higher income of target market, higher the price. Cost of Services: Know the cost to estimate additional sales to pay for the service. Factors to be Considered WhenDetermining Customer Services to Offer : 23 Factors to be Considered WhenDetermining Customer Services to Offer Customer Service Mix Type of Merchandise Handled Price Image of Store Services Offered by the Competition Retailer’s Characteristics Cost of Providing Service Income of Target Market How the Retailer’s Salesforce Meets the Expectations of Both Vendors and Customers : 24 How the Retailer’s Salesforce Meets the Expectations of Both Vendors and Customers Vendor’s Expectations Customer’s Expectations Retailer’s Sales Force Retailer will: Promote the product Make product visible Be knowledgeable about its use Provide necessary service Retailer will: Offer high quality/low prices (value) Hire knowledgeable sales force Provide prompt service Provide service after sales Offer easy return policy Question to Ponder : 25 Question to Ponder How can e-tailers differentiate themselves from other e-tailers, brick & click retailers, and brick & mortar retailers based on service assortment? Retail Sales Management : 26 Retail Sales Management Types of Retail Selling Salesperson Selection Salesperson Training Evaluation of Salespeople Retail Sales Management : 27 Retail Sales Management Types of Retail Selling it is generally true that: Retailers with high margins and high levels of customer service place more emphasis on order getting. Those with low margins and a low customer service policy tend to emphasize order taking. Retail Sales Management : 28 Retail Sales Management Salesperson Selection: Criteria Predictors Demographics Personality Knowledge and intelligence Experience Retail Sales Management : 29 Retail Sales Management Salesperson Training: the most important skill the retailer can teach is common customer courtesy. Retailer’s Policies Merchandise: retailer may suggest becoming familiar with the competitor’s offerings and their strengths and weaknesses. Customer types Retail Sales Management : 30 Retail Sales Management Customer Choice Criteria No active product choice criteria Inadequate or vague choice criteria Choice criteria in conflict Explicit choice criteria Customer Types: Defensive : 31 Customer Types: Defensive Characteristics Doesn’t trust any salesperson. Resists communication as they a have a dislike of others. Generally uncooperative and will explode at slightest provocation. Recommendations Avoid mistaking their silence for openness to your ideas. Stick to basic facts. Tactfully inject product’s advantages and disadvantages. Customer Types: Interrupter : 32 Customer Types: Interrupter Recommendations Don’t waste time, move quickly and firmly from one sales point to another. Avoid overkill since they know what they want. Characteristics Intense, impatient personality. Often interrupt salespersons and have a perpetually “strained” expression. Often driven and successful people who want results fast. Customer Types: Decisive : 33 Customer Types: Decisive Characteristics Recommendations Confident in their ability to make decisions and stay with them. Open to new ideas but wants brevity. Highly motivated by self-pride. No canned presentations. The key is to assist. Don’t argue or point out errors in their judgement. Customer Types: Indecisive : 34 Customer Types: Indecisive Recommendations Avoid becoming frustrated yourself. Determine as early as possible the need and concentrate on that. Avoid presenting customer with too many alternatives. Start with making decisions on minor points. Characteristics They worry about making the wrong decision. They tend to postpone all decisions. Want salesperson to make decision for them. Customer Types: Sociable : 35 Customer Types: Sociable Recommendations You have to wait out these customers. Listen for points in conversation where you can interject product’s merits. Pressure close is out. Subtle friendly close needed. Friendly, talkative types who are enjoyable to visit with. Many have excess time on their hands (e.g., retirees). They usually resist the close. Characteristics Customer Types: Impulsive : 36 Customer Types: Impulsive Characteristics Quick to make decisions. Impatient, just as likely to walk out as they were to walk in. Recommendations Close as rapidly as possible. Avoid any useless interaction. Avoid any oversell. Highlight product’s merits. Evaluation of Salespeople : 37 Evaluation of Salespeople Performance Standards Conversion Rate is the percentage of shoppers that enter the store that are converted to purchasers. Sales per hour Use of time Data Requirements The Retail Sales Process : 38 The Retail Sales Process Prospecting is the process of locating or identifying potential customers that have the ability and willingness to purchase your product. Approach Sales Presentation Closing the Sale is the action the salesperson takes to bring a potential sale to its natural conculsion. Suggestion Selling Selling Process in the Retail Environment : 39 Selling Process in the Retail Environment Selling Process in the Retail Environment : 40 Selling Process in the Retail Environment Selling Process in the Retail Environment : 41 Selling Process in the Retail Environment Selling Process in the Retail Environment : 42 Selling Process in the Retail Environment Selling Process in the Retail Environment : 43 Selling Process in the Retail Environment Estee Lauder Training Materials : 44 Estee Lauder Training Materials Build a Rapport Repeat what the customer says back in your own words to show her ‘you understand her needs.’ Advisers should make eye contact and hold a product ‘as if it were a rare jewel.’ Link and Bridge When a customer asks for red lipstick, show her several shades. If she is repurchasing a product, use ‘link selling’ by showing her a companion item. Use ‘bridge selling’ by asking what fragrances she prefers, then show here Estee Lauder perfumes. Estee Lauder Training Materials : 45 Estee Lauder Training Materials Lay a Foundation Hold each product the customers has viewed, explain it and hand it to her. She will already feel like it is hers. Advisers should encourage the customer to return by mentioning other beauty concerns and scheduling an appointment. Lead by the Nose After trying a fragrance on a customer’s hand, guide it toward her nose and say ‘Doesn’t that smell wonderful’ The manual instructs, ‘Always have your customer acknowledge the scent.” Estee Lauder Training Materials : 46 Estee Lauder Training Materials Don’t Give Up If a customer objects to a product’s price, don’t give up. ‘A customer objection is a sign of interest,’ the manual says, Advisers should ‘first empathize’ and then list a product’s benefits. Some Closing Signals theSalesperson Should Be on the Lookout For : 47 Some Closing Signals theSalesperson Should Be on the Lookout For The customer reexamines the product carefully. The customer tries on the product (i.e., trying on a sport coat or strapping on a wristwatch. The customer begins to read the warranty or brochure. The customer makes the following statements: I always wanted a compact disc player. I never realized that these were so inexpensive. I bet my wife would love this. Some Closing Signals theSalesperson Should Be on the Lookout For : 48 Some Closing Signals theSalesperson Should Be on the Lookout For The customer asks the following questions: Does this come in any other colors? Do you accept Discover cards? Can you deliver this tomorrow? Do you have a size 7 in this style? Do you accept trade-ins? Do you have any training sessions available? Do you have it in stock? What accessories are available? Where would I take it to get it serviced? Is it really that easy to operate? Characteristics of a Top Retail Salesperson : 49 Characteristics of a Top Retail Salesperson 1. BELIEVE IN YOURSELF: A retail salesperson must have that self-confidence to keep going when everything is going wrong. After all, your customers will believe in you if you believe in yourself. If you don’t believe in yourself, why should they believe in you. There will be days when selling is easy, the customers will want everything you are selling. However, the key is handling those days when everything is going wrong. Remember, even on a poor shooting night, Michael Jordan wanted the ball in the final seconds with the game on the line. Characteristics of a Top Retail Salesperson : 50 Characteristics of a Top Retail Salesperson 2. BE WILLING TO WORK HARD: Retail selling is really a job demanding hard work if you are going to be good. Don’t waste time when customers aren’t in the store. Learn about your merchandise, go over your sales records, and call your “key” customers on the phone to see if they need anything. Remember the old saying, “The harder I work, the luckier I get.” Characteristics of a Top Retail Salesperson : 51 Characteristics of a Top Retail Salesperson 3. HAVE PERSEVERANCE: The person that has the ability to persevere and take ups and downs of selling in stride will find an increasing number of opportunities. All too often salespeople may become frustrated due to the many things occurring that they can’t control. A salesman used to call on my father’s store with merchandise targeted too high for his target market. After a few years of this, my father asked him how long he was going to continue to call on him, since he consistently turned down his merchandise line. “Well,” he said, “it depends on which one us dies first . . .” Characteristics of a Top Retail Salesperson : 52 Characteristics of a Top Retail Salesperson 4. HAVE RESPECT FOR THE CUSTOMER’S GOOD SENSE: Don’t try to trick the customer. You might win the battle by getting the sale, however, you will lose not only the war but the customer as well. Find out what the customer needs and get it for him. Remember the example of Kris Kringle, in the Miracle on 34th Street, when he had the wisdom to not try to trick the customer into a different item. Instead, he sent her across the street to another retailer. Characteristics of a Top Retail Salesperson : 53 Characteristics of a Top Retail Salesperson 5. BE FLEXIBLE: The ability to adjust to the ever-changing needs of the situation calls for flexibility. The salesperson must have the willingness and enthusiasm to do whatever is necessary (although not planned to make the sale. If one approach or sales presentation doesn’t work, try a different one. It is fine to live on high expectations. However, if the realities of the situation tell you otherwise, be flexible enough to try something different. Characteristics of a Top Retail Salesperson : 54 Characteristics of a Top Retail Salesperson 6. BE DECISIVE: No two selling situations are the same. The ability to make rapid decisions, and to render judgments, and take action until the sale is completed is decisiveness. Every salesperson could probably make better decisions if more time were available. However, more time is frequently unavailable because of the types of customers a salesperson must deal with. Remember, a salesperson must be able make decisions quickly, confidently, and correctly in order to be successful even if perfect information is not always available. Characteristics of a Top Retail Salesperson : 55 Characteristics of a Top Retail Salesperson 7. BE ABLE TO HANDLE STRESS: The retail salesperson must be able to perform consistently under pressure and to thrive on constant change and challenge. The failure to handle stress is a major reason people give up on retail selling as a career. They tend to focus on the failures and not on the satisfaction to be gained from helping a customer solve a problem. The Customer Service and Sales Enhancement Audit : 56 The Customer Service and Sales Enhancement Audit Customer Service and Sales Enhancement Audit provides management with a detailed analysis of current sales activity by location and by selling area. Identify service, salesmanship, and sales enhancement methods to produce more sales. Target the methods by the store and selling area to produce most significant improvements. Determine added sales by improving service level, salesmanship, and sales enhancement programs. The Customer Service and Sales Enhancement Audit : 57 The Customer Service and Sales Enhancement Audit Basic Service: Customer contact Salesperson-initiated contact Customer acknowledgement Salesmanship: Merchandise knowledge Needs clarification Active selling Suggestion selling The Customer Service and Sales Enhancement Audit : 58 The Customer Service and Sales Enhancement Audit Sales Enhancement: Impulse purchasing Walkouts You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.