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  1. 1. Nica L. Montevirgen Alyssa Pearl A. Malonzo Scotte Wei D. Lapira Customer Services and Retail Selling MM-3A Jex Arlon G. Maderazo Dan Rency G. Mallari GRP. 8
  2. 2. CUSTOMER SERVICES Nica Montevirgen
  3. 3. CUSTOMER SERVICES is about providing customers with relevant (and timely) assistance, to help them solve their problems and to meet their needs and expectations.
  4. 4. Why is customer service so impoprtant in Retailing?
  5. 5. High-qualityService Defined as delivering service that meets or exceeds customers’ expectations. RelationshipRetailing is a technique that seeks to build long- term or even lifetime relationships with their customer base through loyalty programs, rewards, and customer service.
  6. 6. Two benefits of Profitable Retailers
  7. 7. Financial Benefits Social Benefits
  8. 8. 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.
  9. 9. MerchandiseManagement PromotionManagement PriceManagement CreditManagement
  10. 10. COMMON CUSTOMER SERVICES Alyssa Pearl A. Malonzo
  11. 11. Pre-Transaction Services The most common pre-transaction services, which are provided to the customer prior to entering the store, are convenient hours and information aids. Each of these makes it easier for the potential customer to shop or to learn of the retailer’s offering 1)Convenient Hours 2)Information Aids 2 Pre- Transaction Services
  12. 12. Transaction Services In the past, retailers believed that transaction services meant employing salespeople who would personally take care of an individual customer. But for the profitable retailers of the future, the term transaction services will mean offering the conveniences customers need and then helping them get out of the store as fast as possible with their purchases 1) CREDIT 2) LAYAWAY 3) GIFT WRAPPING AND PACKAGING 4) CHECK CASHING 5) GIFT CARDS 6) PERSONAL SELLING 7) SALES TRANSACTION 7Transaction Services
  13. 13. Post-transaction Services The relationship between the retailer and the consumer has become more complex in today’s service-oriented economy. Many products, such as computers, automobiles, and travel and financial services, require an extended relationship between the retailer and consumer. 1) COMPLAINT HANDLING 2) MERCHANDISE RETURNS 3) SERVICING, REPAIR, AND WARRANTIES 4) DELIVERY 5) POST-SALE FOLLOW-UP 5 Post- Transaction Services
  15. 15. Retailer’s Characteristics - Retailer's characteristics include store location, store size, and store type. It is especially important to look at these three characteristic when considering adding service
  16. 16. F A C T O R S T O C O N S I D E R W H E N D E T E R M I N I N G C U S T O M E R SE R V I CE T O OF F E R
  17. 17. H O W T H E R E T A I L E R 'S SA L E S F O R C E M E E T T H E E X P E C T A T I O N S O F B O T H V E N D O R S A N D C U S T O M E R
  18. 18. COMPETITION The services offered by competitors will have a significant level and variety of customer services offered. A retailer must also provide these services or suitable substitutes, or offer lower prices.
  19. 19. TYPE OF MERCHANDISE The merchandise lines carried can be an indication of the types ofservices, especially personalselling,to offer. The principle reason is that certain merchandise lines benefitfromknowledgeable salespersonnel. 1) Price Image 2) Target Market Income 3) Cost of Service 3Types of Merchandise
  20. 20. Retail Sales Management Jex Arlon G. Maderazo
  21. 21. RetailSalesManagement Retail salespeople and the service they provide are a major factor in consumer purchase decisions.
  22. 22. Types of Retail Selling
  23. 23. Salesperson Selection Criteria- retailers must decide on their hiring criteria. Predictors- then identify the potential predictors to meet the chosen criteria. Salesperson Training Evaluationof Salespeople Customer Friendly means- • Smiling • Greeting the customer • Using the customer’s name • Saying ‘‘Thank You’’ 1. Retailer’s Policies 2. Customer Types 3. Customer Choice Criteria 1. Performance Standards  Conversion Rate  Sales Per Hour  Use of Time. 2. Data Requirements
  24. 24. Retail Sales Process Dan Rency G. Mallari
  25. 25. Retail Sales Process Several basic steps occur during the retail selling process. The length of time that a salesperson spends in each one of these steps depends on the product type, the customer, and the selling situation. Exhibit 12.8 details the sales process model.
  26. 26. Prospecting is the search process of finding those who have the ability and willingness to purchase your product. Prospecting is particularly important when the store is full of customers. Prospecting
  27. 27. Approach The salesperson may meet hundreds of customers a day, but the customer is only going to meet the salesperson once that day. The key to a successful approach is discerning the customer’s needs as soon as possible by asking the right questions and listening. What the salesperson hears about the customer’s problem or need is more important than anything the salesperson can possibly contribute at this point
  28. 28. Exhibit 12.8 Selling Process in the Retail Environment
  29. 29. Sales Presentation Once the initial contact has been established and the salesperson has listened to the customer’s problems and needs, the salesperson is in a position to present the merchandise and sales message correctly.
  30. 30. three steps to be effective when dealing with this problem: Closing the Sale Closing the sale is a natural conclusion to the selling process. Three steps to be effective when dealing with this problem: 1. Always congratulate the customer for making a wise decision. As soon as customers agree to a purchase, assure them that others have been happy with their decision to purchase the same item, and you know they will be equally satisfied. 2. Always send a thank-you note. Nordstrom’s system has shown everyone the value of these notes by the positive customer responses and referrals. 3. Get the customer in possession of the product as quickly as possible. If the products can’t be delivered immediately, send updates on the progress of those orders, even if it is only a phone call or e-mail.
  31. 31. Suggestion Selling An effective salesperson continues to sell even after the sale has been completed. An additional sale is always the possibility. The salesperson should find out if the customer has any other needs or if the customer knows of anybody else with needs that can be solved with the salesperson’s product line.
  32. 32. THE CUSTOMER SERVICES AND ENHANCEMENT AUDIT Up to this point, we have discussed the level and type of sales personnel needed in a retail operation; the types of retail selling; the selection, training, and management of the sales force; the factors to consider when evaluating individual salespeople, and how to sell in a retail store. The audit is usually performed by having the retailer’s staff, or hired researchers, intercept customers as they leave the store and ask about their experience in the store. The number of customers interviewed should reflect the size and shopping patterns of each store. The objectives of the audit are to: Identify the service, salesmanship, and sales enhancement methods that will produce more sales from the existing shopping traffic. Target the methods by store and selling area that will produce the most significant improvements. Determine the added sales that can be generated by improving the accepted service level, salesmanship, and sales enhancement programs. Upon completion, the audit provides management with a detailed analysis of current sales activity by location and by selling area. It identifies how and where additional sales volume is available. It measures, analyzes, and reports on the specific factors.
  33. 33. BASIC SERVICE 1 2 Customer contact. In stores that purport to offer service, there can be no sale if the shopper has no contact with a salesperson or a cashier. Increasing the number of shoppers who are approached increases the number of shoppers who are likely to buy. Salesperson-initiated contact. Motivated salespeople—those who do not wait for customers to approach them—can prevent walk-outs and generate more sales from shoppers who otherwise might have to spend shopping time looking for a salesperson. Customer acknowledgment. Greeting customers within a short time frame also prevents walk-outs and provides more shopping time. It keeps the shopper in a favorable buying mood. 3
  34. 34. SALESMANSHIP 4 5 Merchandise knowledge. A salesperson with product knowledge can answer a shopper’s questions, enhance the transaction, help to consummate the sales, prevent lost sales, and even add to the purchase. Needs clarification. Asking the proper questions enables the salesperson to present and show the proper merchandise. Suggestion selling. Suggesting additional and/or complementary merchandise may increase the value of the sale. (The audit should also measure the number of times that suggestion selling resulted in an additional purchase.) 6 Active selling. Actively selling the merchandise and volunteering advice about the use and care of the goods, as well as stating the advantages of ownership, helps to consummate the sale. 7
  35. 35. SALES ENHANCEMENT 8 9 Impulse purchasing. Proper selection of merchandise, packaging, location within a department, presentation, and then servicing the transaction will increase the productivity of shopping traffic. Walkouts. Retaining sales that would otherwise be lost is one of the most direct and immediate routes to sales improvement. Offering the desired goods in easy-to-find locations is the most obvious method for reducing walkouts. However, customer contact and salesmanship can be a major deterrent of walkouts among those who come to buy.
  36. 36. THANK YOU!!