Customer Service and Retail Selling

High-quality service - A service that meets or exceeds customers’ expectations.

A way in which retailers provide the high-quality service expected and reduce customer defections is through relationship retailing programs.

Relationship retailing programs - The activities designed to attract, retain, and enhance long-term relationships with customers

Retailers can develop long-term relationships with their customers by offering:

3 Basic Tasks for Retailers:

Customer service consists of all those activities performed by the retailer that influence:

Transient customer - 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 must be integrated into all the following aspects of retailing (same as price and promotion):

Pretransaction services - Provided to the customer prior to entering the store: Convenient hours (7 Eleven); Information aids

Transaction services - Provided to customers when they are in the store shopping and transacting business:

Personal shopping - 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 - The amount of time a consumer must spend waiting to complete a purchase.

Posttransaction services - Provided to customers after they have purchased merchandise or services.

Complaint handling; Merchandise returns, which includes: Renting, not buying; Fraudulent employee actions; Shoplift returns; Price switching

Servicing, repair, and warranties; Delivery; Postsale follow-up

Balance between vendor expectations, and customer expectations, with regard to Retailer's Sales Force.

Retail Sales Management

Types of retail selling:

Retailers that concentrate on the sale of shopping goods want their salespeople to both get and take orders.

In lines of retail trade where predominantly convenience goods are sold, the role of the salesperson is that of an order taker.

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.

Salesperson selection

Hiring criteria

Predictors

Salesperson training

Genius Training Student Workbook

Approach customers with a personalized, warm welcome.

Probe politely to understand the customer’s needs (ask closed and open-ended questions).

Present a solution for the customer to take home today.

Listen for and resolve any issues or concerns.

End with a fond farewell and an invitation to return

Show empathy, not sympathy. Do not apologise.

Three Fs: Feel, Felt, and Found.
Customer: This Mac is just too expensive.
Genius: I can see how you'd feel this way. I felt the price was a little high, but I found it's a real value because of all the built-in software and capabilities.

Evaluation of salespeople

Performance standards:

Conversion rate - Percentage of shoppers that enter the store that are converted into purchasers.

Sales per hour is computed by dividing total dollar sales over a particular time frame by total salesperson or sales-force hours.

Retail Sales Process:

  1. Prospecting
  2. Approach
  3. Sales Presentation
  4. Closing Sale
  5. Suggestion Selling

Prospecting - Locating or identifying potential customers who have the ability and willingness to purchase your product.

Closing the sale - Action the salesperson takes to bring a potential sale to its natural conclusion.

Compensation