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TRANSCRIPT
Contents for sales associate
1. Introduction to retail
2. Process credit applications
3. Retail store operations
4. Maintain records
5. Core skills ( listening and speaking)
6. Professional skills
7. Crisis management
8. Customer service
9. Retail selling process
10. Customer buying behavior
11. Job description of a sales person
12. Importance of retail image
Topic 1 – Introduction to retail industry
At the end of this lesson, you will be able to:
Define retailing
Explain the role of retailing in sorting
Describe the Impact of retailing on the economy
Explain the four major principles of the retailing concept
Describe the key drivers of retailing in India
Describe the changes happening in the Indian retailing scenario
Definition of Retailing
Retailing may be defined as the collection of business activities involved in selling tangible
/intangible (i.e. services like telecom, travel, railway etc) physical goods for personal, family or
household/office/organizational use. The range of the goods sold varies from cars to theater tickets.
Retailing also involves the sale of services directly to the consumers. A service may be the shopper’s
primary purchase (such as a haircut) or it may be part of the shopper’s purchase of a product(such as a
delivery).
Retailing does not necessarily involve a store. It may comprise new forms of shopping such as tele-
shopping, online shopping, shopping by mail order, direct selling to consumers in their homes and
offices, vending machines sales etc. retailing is the last stage in the distribution process. Retailers play a
key role and act as a point of contact between manufactures, wholesalers, other suppliers and the final
customer.
Role of Retailing in Sorting Process
Usually, manufactures wish to make one basic tyoe of item and sell the entire inventory to as few buyers
as possible. Customers, on the other side, usually like to choose from a variety of goods and services and
purchase a limited quantity. Retailers collect an assortment from various sources, buy in large quantity,
and sell in small amounts. This is known as the “sorting process”. The retailer helps in this sorting
process, thus providing, a wide range of choice to the customer. The term sorting refers to the retailer’s
action of collecting an assortment of goods from various sources, and selling them in small amounts to
the customers.
The importance of retailers can be understood by considering a situation where the retailer isn’t present
in the distribution process. In such a case, the customer would have to contact several wholesalers to
get a wider choice of brands.
Impact of retailing on the economy
Organized retailing in india is currently estimated at rs. 30,000 crores (from rs. 5,000 crores in
1999) and is growing at a steady rate of about 12 percent, making it among the fastest-growing
industries in the country
Retail accounts fro about 13.5 percent of the country’s GDP.
It generates employment opportunities in the country
Marketing Concept in Retailing
There are four major principles of the marketing concept that all retailers should understand and apply.
These are:
Customer orientation
Coordination efforts
Value driven
Goal orientation
Customer Orientation
The attributes and needs of the customers are determined by the retailer, who then tries to satisfy
these needs to the fullest. For example, on determining that a certain customer is particularly fond of
checkered shirts, the retailer may contact him when a new exclusive line of such arrives at his store.
Coordinated Effort
All plans and activities in the store are combined by the retailer so as to maximize efficiency.
Value driven
The customers are offered retailer good value by the retailer. This means fixing the prices which
are pitched at the appropriate level of products and services.
Goal Orientation
The Retailer sets goals and then uses the right strategy to attain these goals. Unfortunately,
many retailers cannot grasp this concept. As a result they are indifferent to customers needs; plan
haphazardly; have prices that do not reflect the value offered; have unclear goals; are not receptive to
change; blindly follow strategies enacted by competitors; do not get feedback from customers; rely on
supplier reports or their own past sale trends.
Implementation of the retailing concept is very easy. It simply implies communicating with the
customers and viewing their desires as critical to the organization’s success; having a consistent strategy
( such as offering store); offering prices perceived s ‘fair’ ( a good value fro the money) by customers,
and working to achieve meaningful, specific, and reachable goals.
However, it should be borne in mind that the retailing concept is only a strategic-guide and it does not
deal with a firm’s internal capabilities or competitive advantages, but offers a broad planning framework
that could be used as a road map.
Key Retail Drivers
Consumer pull: Today, one can note a significant change in the retail market in comparison to that of
the eighties. The consumer now calls the shots and determines the goods and services that a
manufacturer should provide. Liberalization of the consumer goods is one of the main reasons for this
change. The two broad segments into which consumerism can be divide are : high-income segment and
middle and lower income group. While the involvement level of high-income segment in shopping is
very low, the middle and lower income group is very actively involved and very highly value-conscious
and looks for bargains. Hence, this segment of consumers is the retailing target.
Rising incomes: The last decade has seen a major rise in the income of the Indian consumer. This rising
income has generated the demand for higher quality consumer goods/higher priced products.
Change in consumer behavior: Today’s consumers are always hard pressed for time and so they hunt
for a variety of things under a single roof. They also look for better customer service, product quality and
hygiene.
Entry of the corporate sector: Lately, the investment made by large business houses like reliance, Tata
and ITC in retailing has sparked the growth of the retail sector in a big way.
Building Different Retail Formats: Different retail formats like supermarkets, mails departments stores
etc. have now emerged to suit the convenience and needs of the consumer.
Better supply chain: A significant change has been noted in the way goods are organized and delivered
to the retailer, which includes better warehousing and packaging facilities.
Impact of technologies: Various operations in a retail store such as inventory management, bill payment
and database management have now been computerized. Also, electronic surveillance systems are
being used to prevent theft of items. All these technological inventions have revolutionized retailing.
Role of government in retailing: the government regulates the working of retail stores through
legislation and implementation of taxation laws like ‘value-added tax(VAT)’.
Transformation in the Indian retailing scenario
Change in the retailing scenario can be noticed due to the following reasons:
Demand for better products and retail experience from the customers.
New products, formats and competition
Better quality outlets
Change in scale/range of retail
Larger players in retail
Use of technology and improved processes
Rise of quality retail space
Investment and development of malls
The focus shifting from kirana to supermarkets
Large retailers having web sites
Shopping centers which are beginning to have large specialties retailers.
Topic 2: Process Credit Applications
Credit cards are an important part of the retail industry. From American Express to Visa,
customers prefer to keep their cash in their wallets and use their charge cards to pay for almost any
purchase. Many people use their credit cards for convenience. Others may use it because they earn
rewards. Some may even use it to build their credit. Whatever the case may be, credit cards assist
and encourage people to spend money on a wide variety of purchases.
Store credit cards are no different. Virtually every retail chain store in existence offers their own
store credit card. At Starbucks this morning, I saw an advertisement to get a Starbucks Visa and earn
free coffee. Store credit cards give customers a way to spend money on one card in just one store. You
wouldn't be able to use your JC Penney credit card at another department store. This encourages
customers to spend money in a specific retail store, especially when the store offers special privileges
and discounts to cardholders.
Store credit cards aren't just beneficial to the customer; they are also beneficial to the store.
When holding a credit card for a specific retail store, customers are much more likely to shop at that
store for what they are looking for what they want before going into any other store. This increases
the potential for sales in said store. When given coupons, discounts, and other promotions and
privileges, consumers are even more likely to go to the store where they are a cardholder. More
customers mean more volume. More volume means more profit.
So, we have glossed over the benefits for the customers and the stores involved. What about the
most important people involved? That is the sales associate, of course. The sales associate is the
liaison between the credit card company and the customer. The sales associate offers the customer
membership and provides details on all of the privileges that cardholders receive. It is the sales
associate's job to entice the customer to open a credit card account, as well as to use it.
The sales associate is not forgotten in this process. The stores and banks involved often offer
incentives to sales associates that open new credit card accounts for customers. For example, a sales
associate receives $2 for every credit card application processed. If an associate works an 8 hour day
and processes 2 credit card applications, that averages out to an extra 50 cents per hour. So, instead
of earning $7.50 per hour, it averages out to $8 per hour. Plus, the amount of credit card applications
that a sales associate can process is unlimited.
Furthermore, there are sometimes extra incentives to associates who process a certain number of
credit card applications. A sales associate is given a goal for the week (or day or month). Once the
goal is reached, the associate receives that incentive. For example, if you process 2 credit cards in one
week, your name gets entered into a drawing for $500 cash. Wouldn't that be a nice addition to your
monthly paycheck?
Topic 3: Retail store operations
At the end of this lesson, you will be able to:
Describe how to store staff should be managed
Explain the importance of store maintenance
List the steps used by retailers to effectively manage energy resources
State the steps to be adopted by retailers for store security
Describe the use of technology in retail operations
Personnel Utilization
Many Retailers concentrate on the following aspects:
Implementing a good screening and hiring process to get the right staff.
Ensuring discipline of staff, attendance of customers, and proper level of skills through
employee training.
Having a good system of forecasting workloads, and ensuring that the right numbers of store
personnel are available. If a store is understaffed or faces shortage of staff, this may mean that
customers are not being properly served. Overstaffing may mean an unnecessary expenditure in
terms of staff salary costs.
Training staff to ensure proper product knowledge, customer service, familiarized with store
processes, and cross-training to enable staff to learn more than one job ( we.g. a complaints).
This leads to an increase in the flexibility of operations.
Retailers often fix employee performance standards in the form of a sales target (for
salesperson), transaction speed and accuracy (for cashier). The staff tends to be more
productive when working towards achieving these specific goals.
Store Maintenance/Energy Management
Store maintenance includes the interiors and exteriors of a retail store.
Exteriors: - Building, parking lot, outside signs, outside displays etc.
Interiors: - walls, flooring, lighting, interior displays and signs, fixtures, ceiling, painting, replacing
lights, cleaning all surfaces, etc.
Carefully adjust interior temperatures during non selling hours.
Use computerized systems to monitor and adjust temperature levels to the fraction of a degree.
Saving electricity may be more when a store area is large.
Use high efficiency bulbs instead of traditional lighting.
Store Security
Store Security comprises two types of security issues:
Personal security
Merchandise security
Personal Security
Customers should feel safe while shopping in the store. Hence, retailers may practice the following:
Appointment uniformed security guards inside the store
Engage vigilance staff (undercover) in plain clothes who are required to stop criminal attempts
Improve lighting in store and in parking areas.
Install TV cameras, alarms, and monitoring systems
Ensure that bank deposits ( of cash received) are made more frequently
Prevent fire accidents and use detection systems.
Merchandise Security
Most retailers incur losses due to “inventory Shrinkage”
Shrinkage is caused by employee theft, customer
shoplifting, fraud and administrative errors by vendors
and store personnel.
Shrinkage may be one to two percent of sales turnover
(volume). Therefore, care must be taken to control shrinkage.
Some activities that reduce merchandise losses areas as follows:
Product tags
Security guards
Video cameras
Employee surveillance
Burglar alarms
Electronic article surveillance – specially designed tags or labels attached to products that can be
tracked by electronic devices placed at store exits. If store personnel do not remove the tags, an
alarm goes off and shop lifters are caught.
Backgrounds checks for each employee
Conducting training programs for employees to create an awareness about ethical behavior
Seeking employees or prosecuting shop lifters involved in theft.
Mystery shoppers and in-store detectives to watch out for shop lifting.
Technology in retail operations:
Many large retailers choose high technology computers based applications to operate there store
effectively. Listed below are the technologies used in retail
In-store telecommunications pocket phones are used to enable staffs to communicate with each
other
Computerized inventory control to analyze inventory levels quickly, place replenishment
requests
Computerized check out, where cashiers ring up sales or pass items over optical scanners to
register the sale. Some electronic point of sale system also provides the reports inventory data
etc.
Topic 4: Maintain Records
At the end of the lesson you would be able to:
Store opening and closing processes
Daily book keeping
Stock control processes
Inventory management
Store opening and closing processes
The retailer must define a documented process for opening and closing the store. For eg. While closing
the store a process should be specified for putting off all equipments/computers/lights/AC/generator,
safely storing valuable merchandise, safely keeping keys/activating security alarm systems, etc. and for
shutting the exit and entry points.
Daily Book Keeping
Tallying and counting end-of-day cash ( all types of tenders separately)
Entering cashier till counts and compare with the till status reports to find out excess or
shortages of cash
Preparing reports on voids, refunds, charges, etc.
Ensuring cash is safely deposited in bank/safe
Closing the cash till and store systems
Stock control Procedures
A retailer may have the following stock control procedures at a store level:
Taking stock/inventory count
Reviewing a purchase order
Ordering goods/replenishments
Receiving an invoice
Receiving goods and making an entry into inventory
Analyzing inventory reports
Inventory Management
The following operational factors in inventory management at a store level are important to a retailer:
Coordination and handling the merchandise received from different suppliers
Comparing ideal level of inventory on the selling floor with warehouse/store area
Number of times the inventory should be moved from the non-selling to selling areas of the
store (replenishments) and from the ware house to the store.
Process by which the merchandise stock can be organized efficiently and accurately on
regular/annual basis without inconveniencing customers
Inventory functions such as annual or continual stock take i.e. counting of stock during non-
selling times
Organizing customer delivery with care or proper timings
Topic 5: Core Skills (listening and speaking)
At the end of this lesson, you will be able to:
Importance of active listening
How can be an active listener
Speaking skills
Listening is one of the most important skills you can have. How well you listen has a major impact on
your job effectiveness, and on the quality of your relationships with others.
We listen to obtain information.
We listen to understand.
We listen for enjoyment.
We listen to learn.
Given all this listening we do, you would think we'd be good at it!
Clearly, listening is a skill that we can all benefit from improving. By becoming a better listener, you
will improve your productivity, as well as your ability to influence, persuade and negotiate. What's more,
you'll avoid conflict and misunderstandings. All of these are necessary for workplace success!
About Active Listening
The way to become a better listener is to practice "active listening." This is where you make a
conscious effort to hear not only the words that another person is saying but, more importantly, try to
understand the complete message being sent.
There are five key elements of active listening. They all help you ensure that you hear the other
person, and that the other person knows you are hearing what they say.
1. Pay Attention
Give the speaker your undivided attention, and acknowledge the message. Recognize that non-
verbal communication also "speaks" loudly.
Look at the speaker directly.
Put aside distracting thoughts.
Don't mentally prepare a rebuttal!
Avoid being distracted by environmental factors. For example, side conversations.
"Listen" to the speaker's body language.
2. Show That You're Listening
Use your own body language and gestures to convey your attention.
Nod occasionally.
Smile and use other facial expressions.
Note your posture and make sure it is open and inviting.
Encourage the speaker to continue with small verbal comments like yes, and uh huh.
3. Provide Feedback
Our personal filters, assumptions, judgments, and beliefs can distort what we hear. As a listener,
your role is to understand what is being said. This may require you to reflect what is being said and ask
questions.
Reflect what has been said by paraphrasing. "What I'm hearing is," and "Sounds like you are saying," are
great ways to reflect back.
Ask questions to clarify certain points. "What do you mean when you say." "Is this what you mean?"
Summarize the speaker's comments periodically.
Allow the speaker to finish each point before asking questions.
Don't interrupt with counter arguments.
4. Respond Appropriately
Active listening is a model for respect and understanding. You are gaining information and
perspective. You add nothing by attacking the speaker or otherwise putting him or her down.
Be candid, open, and honest in your response.
Assert your opinions respectfully.
Treat the other person in a way that you think he or she would want to be treated.
It takes a lot of concentration and determination to be an active listener. Old habits are hard to
break, and if your listening habits are as bad as many people's are, then there's a lot of habit-breaking to
do!
Speaking Skills:
The activities involved while communicating with customer
Approaching and greeting
Recommending products
Describing merchandise
Responding customer queries
Handling customer objections
Handling queries while closing sale
Approaching and greeting
The first and foremost activity involved while making a consultative sale is approaching and greeting
customers and ascertaining their wants or needs. This is the first contact with the customer and it
should be used for building a rapport, capturing the attention of the customers and generating interest
in the product.
For example,
Hello, good evening sir
I am Alex and I am here to help you.
Recommending products
The second activity involves recommending, selecting and helping to locate or get products based on the
customers’ needs and desires.
For example,
Ma’am what are you looking for? A formal wear or something
Casual?
Ma’am, the red bangle will go very well with your evening gown.
Describing Merchandise
The third activity involves describing the merchandise and explaining their use, operation and care to
the customers.
For example,
Sir, Nokia 3200 handset has a FM feature, torch and camera.
Sir, buy this Kodak camera, it ahs an auto focus feature which
will adjust on its own even when the image is blurred.
Ma’am, you should not wash this t-shirt in the washing machine
as this is meant for hand wash.
Responding Customer Queries
Responding openly and neutrally while attending to a range of customer questions is another important
activity.
For example,
What is the price of this bracelet?
Show me some other patterns in this colour
Can I exchange, if this does not fit?
Handling Customer Objections
Handling various kinds of objections posed by the customers is also important.
For example,
This outfit seems to be a little too expensive
This trouser doesn’t fit in my budget
Handling Queries while closing sale
Handling customer’s queries pertaining to closing a sale is another important activity.
For example,
Do you accept credit cards?
Do you provide home delivery?
What kind of guarantee do you give with this product?
Topic 6: Professional Skills
At the end of the lesson you would be able to:
What are professional skills?
What is the importance of professional skills?
Decision making regarding the responsibilities of the job role
Plan and organize
Customers centricity
Problem solving
Professional Skills at every organization are the foundation for success. They are the skills that
graduates need so as to succeed in professional practice and range from the highly specific ones that are
related to the graduate’s field.
Professional skills are needed for growth in once profession. By this skills one can, get a good position in
organization.
Decision making
On the job individuals needs to be able to make appropriate decision regarding the responsibilities of
the job role. One should understand the needs of job and make right decision to get a good position in
organization.
Plan and Organize
Customers sales associates should be able to plan and schedule routines. He should know how he can
manage his responsibilities in store. Individuals need to be regular and punctual about his daily work at
workplace.
Customer’s centricity
Customer centricity is a term frequently used in marketing is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as ‘the
number of customer, or percentage of total customers, whose reported experience with a form, its
products, or its services (ratings) exceeds specified satisfaction goals.
Solving Customers Problems
A Customer complaint offers the best chance to convert an unhappy customer into a loyal customer.
Complaints are a golden chance to strengthen a business. Solving customer’s problem is a key to
success.
The three important steps involved in solving customers problems are:
Focusing on the problem, prioritizing the problems and solving the most urgent and critical ones
first
Developing a plan of action for solving the problem
Using the required resources to solve it.
Topic 7: Crisis Management
At the end of the lesson, you will be able to:
Deal with accidents and emergencies
Help to reduce risks to health and safety
Despite having the best strategies, retailers may sometimes face crisis situations that need to be
managed smoothly.
Retailers often have detailed plans and their staff to handle emergency situations such as:
Fire
Car accidents in parking lot
Store robbery or hold up
Extremely bad weather or natural disasters like earthquake, floods.
Sudden server illness of employee or customer
How to minimize effects of crisis by anticipation:
Contingency plans for all kinds of crisis: store policies should specify how to handle the crisis
and train the employees (e.g. in case of fire, employees must know how to put out fire,
evacuate customers if necessary, retrieve goods, call fire fighting authorities, etc.)
Insurance
Backup generators in anticipation of power failures
A system to communicate essential information during a crisis
Cooperation during a crisis
Chain of command for decision to be made clear and specifying who has the authority
during a crisis.
Topic 8: Customer Service
At the end of the lesson, you will be able to:
Define service and characteristics of service
Describe the service quality dimensions
Identify the types of services provided to the customer and their needs
Describe how to deliver excellent customer service
Define Service
We have heard the popular adage, “Customer is the King”. Every business needs to follow this
fundamental principle to ensure quality customer services. In our service economy the goal of each
organization should not be to give the customers greater satisfaction by responding to customer needs
and providing services to meet their expectations.
Definition- Customer Service
Customer service is an organization’s ability to constantly and consistently give the customers what they
want and need. This involves understanding customer requirements and giving a proper solution
accordingly.
Thus, customer service is:
Putting people behind products and services
Treating customers with respect, individuality and personal attention
To understand why people are put behind products and services let us take an example of a shopping
mall, where the garments are displayed, without any price tags and assistance is provided.
Respect
The best way of showing respect is by making the customers feel special. From the moment they enter
the store to the time they leave, they should be treated warmly, generously and hospitably, irrespective
of whether the make a purchase or not.
The customer should be made to feel important, this could be achieved through a combination of basic
gestures and personal greetings like, ‘good morning’, ‘how may I help you?’ with genuine smile when
they enter and ‘thank you’ in acknowledgement of them, ‘stopping by’ when they leave.
Individuality
A couple arrived at a hospital. The wife was in labour. The husband, a heart patient, had an attack due
to over-excitement. Since the husband wanted to be with his wife during the delivery, the cardiologist
personally pushed the husband’s bed from the coronary care department to the wife’s room. However,
the bed was too large to go through the doorway. The cardiologist, then, sat in the hallway with the
husband till 3.00 a.m.., so that he could talk to his wife, be with her, provide support, courage and
emotional assistance till she was taken to the delivery room.
Thus, we see that the doctor respected the husband’s individuality and adjusted according to the
situation.
Personal Attention
The Ritz Carlton Group of Hotels complies customer information through observations made by the
hotel staff in the course of their normal duties. Every staff member carries a guest preference pad to
record notes. This enhances customer service.
For example, when a housekeeper enters a room and notices a tennis racket, shoes and magazines,
he/she makes a note of the guest’s likings as, ‘Mr. Samuel in Room 220 seems to enjoy tennis’. This
information is given to the appropriate staff members to contact the guest with available timings of the
tennis court and other related services.
Tangible and Intangible Experiences
The customer’s experience in a store is both tangible and in tangible. The product is tangible and the
service is intangible.
Examples of tangible experiences are reasonable price, system of exchange, availability of the product
and quickly delivery.
Examples of intangible experiences are respect, politeness, gratitude, praise and prompt attention.
Characteristics of services
Cannot be touched or felt
Cannot be separated from the service provider
Difficult to standardize
Ends at the time of consumption
Characteristics of Customer services are:
Credit
Delivery
Alternations and installations
Packaging and Gift Wrapping
Complaints and Returns Handling
Gift Certificate
Special sales for regular customers
Special shopping hours for regular customers during the season
Extended store hour
Mail and phone orders
Trial rooms
Miscellaneous Customer Services are:
Bridal registry
Personal shoppers
Ticket outlets
Parking
Drinking water
Pay phones
Baby strollers
Wheel chairs for the handicapped
Rest rooms
Restaurants
Baby sitting
Fitting rooms
Beauty salons
Shopping bags
Information kiosks
Service Quality Dimensions
Service quality dimensions describe the attributes that customers expect from a service provider.
These are as follows:
Authority
Dependability
Responsiveness
Empathy
Tangible Evidence
Reasons for Better Service
All businesses focus on customer’s satisfaction, because they are assets to businesses. If the service is
good the business will expand. The indifference of the service provider and not the price or the product
often results in customers shifting one organization to another. It is the salespersons’ responsibility to
retain a good customer by giving the best quality of service.
To conclude:
There is a strong link between better service and business vision.
Businesses are obsessed with customers and providing quality services.
Failure to win and retain a customer simply means no profit, no growth, no jobs and no
business.
Delivering Excellent Services
The spirit of service determines the salesperson’s views towards his/her job. Salespersons’ views should
be based on the values and the beliefs on people and life. such a view leads them to willingly serve
others and take pride in their individual work.
They should have the ‘spirit of service’ which inspires them to give the best possible service to the
customer.
How can a salesperson give that extra edge?
A salesperson can give that extra edge to a service by adopting the following means:
By realizing that everybody has a customer and everyone is a customer
By using teamwork for better service
By remembering the customer’s tastes, names, family background, etc. By regarding the
customer with prompt attention.
By practicing the skills of good service
By organizing the mind and physical space for efficiency
By developing the habit to thank, and give compliments
By building individual USP to enable the customer to remember and come back
By setting a customer service goal or a dream-motivation
By developing listening skills for better service
By providing the service with energy, enthusiasm and joy
Topic 9: Retail Selling Process
Start Of Sale
At the end of this lesson, you will be able to:
Describe the aspects to be taken care of before starting a sale
Introduction:
The Activity of selling is known as sale, and it forms an essential part of any business. A salesperson
needs to undertake the following activities while selling goods and services to a customer:
Contact the possible customers
Present and demonstrate the products
Take orders from customers
Deliver the products
Collect the payments
Preparations for a sale
The activity of putting or setting things in order in advance of some act or purpose is known as
preparation. With reference to sale, preparation specifically refers to a salesperson.
Before starting sale every salesperson should:
Check his/her appearance
Know the store
Know the inventory
Know the products
Know the schemes
Know the competitor
Know the trends
Know the customer
Give personal attention towards his/her section
A salesperson should follow the following guidelines so as to look presentable:
Wear a dress that is clean, well ironed and unfaded.
This would make him/her look smart.
Should not wear torn clothes or a dress with threads hanging
Smile and look bright, cheerful and enthusiastic
Wear moderate and fashionable jewellery and accessories such as belts
Wear well polished and unbroken shoes
Should have well-cut hair that is neatly combed and tied up(in case of long hair)
Wear light make-up (for women)
Should be well shaven or trim his beard (for men)
Should have personal hygiene and use a light deodorant/perfume
Know the Store
The Salesperson should give such impression that their customers walk away with the idea that ‘Looks
are deceptive.’ So, along with having a good appearance, it is important for the salesperson to possess a
through knowledge of the store.
The salesperson should have knowledge of the following:
Store’s mission, vision, values and all the categories of the product.
Levels/floors and the stock in each level
Store policies, regulations and services provided to the customers
Store layout
Product locations
Range of products kept in the store
Supervisor and the section in-charge
Know the Inventory
Keeping track of the detailed list of items in the stock is important to ensure that all the items which are
out of stock and are in demand are properly indented.
The salesperson needs to keep track of the following:
Current inventory stocked in the store
Present day’s position of sale
Inventory stocked in the distribution centre
Inventory in the back stock
Arrival of new stock
Order to delivery cycle (when to inform customer to visit for out-of-stock items)
New merchandise that is anticipated
Know the product
The salesperson should possess complete knowledge about any product which includes the following:
What the product is, what it does and how it fulfils the customer’s needs and expectations
The range, colors’, sizes, and prices of the stocked products
The brand of each product
The schemes of both the store and the brand
Related products and accessories so that add-ons can be suggested
Importance of product knowledge
The best salesperson is always well-informed about the products being sold by their competitors.
Without proper product knowledge the salesperson will never be able to gain the trust and ultimate
ability to influence the customer’s buying decisions.
Only the salesperson can demonstrate to the customer how a particular product can fulfill
his/her need.
Since most of the retail decisions are taken inside the store only the salesperson can swing the
customer’s mind with the help of product knowledge.
The salesperson is considered to be a product expert and a specialist knowing everything about
the product
The salesperson is the only source of product information to the customer.
Build Product Knowledge
The salesperson’s credibility as an expert in the profession comes under inspection when demonstrating
or discussing a product.
The salesperson should analyze the level of the product knowledge with reference to the following:
Manufacturer
Trade name
Range stocked by the manufacturer
Sizes and colours available
Product operation
Occasion of use
Specifications
Understanding of any technical terms
Normal prices
Maintenance or wash care
Benefits
Strength of the brand
Know the Company schemes
A salesperson dealing with customers is supported to know the following:
The names of schemes, discounts, promotions and events offered in the store
The features of the various schemes
The prize of the product and the benefit to the customers
The process by which the customer can participate in the scheme
Know the Competitor
Knowing the competitors and market trends is an absolute necessity in order to have that extra edge. By
gathering information about the competitors the salesperson can devise ways to be unique and thus can
attract customers so as to benefit in the long run.
Know the trends
To provide positive and effective answers to the customer’s queries, it is necessary that the salesperson
have knowledge about the current trends in the market.
Following are the ways of finding the current trends in the market:
Product
The salesperson should be well versed with the current trends in the product categories.
Market
To make better suggestions to the customers, the salesperson should observe and know what is
happening around.
Competitor
The salesperson should be aware of what the competitor is doing and selling.
Fashion
The salesperson should keep abreast of what is in fashion, what will be in fashion and what is out of
fashion.
Other
The salesperson should read magazines and fashion literature featuring the products and their
respective categories.
Know the Customers
While studying the market of a product the most important factor to be considered is the customer
base. Hence, the salesperson should do research on the customer base. To know the customers, the
salesperson should be first understood the underlying reason for the buying of a product or a service.
Although each store has different types of customers, a particular type of customer can be identified
and a specific service can be provided to him/her.
During the Sale
At the end of this lesson, you will be able to:
Describe the functions and approaches necessary for delivering a good service to the customers
Recognize the value of ‘greeting’ the customer
Effectively advance the sale by knowing the product and the customer’s real need
State the importance of product presentation and product demonstration
Identify the importance of closing a sale by providing solutions to the buyer’s problems
Opening the Sale
Approaching and Greeting
One should approach and greet the customers for the following reasons:
Making the customer feel welcomed
Showing the customer that someone is available to help him/her
Directing the interest of the customer to the merchandise
Making the customer feel comfortable
Beginning a relationship that will end in a sale or a service
Situations for Approaching
A salesperson should approach the customer in the below-given situations.
When the:
Customer feels the merchandise
Customer looks at the price tag
Customer Spends more time in a particular section
Customer’s hands are full
Customer needs help, e.g. he/she has came with a baby
Customer looks around and tries to catch the eye of salesperson
Customer’s entry is directed towards the staff
Methods for Approaching and Greeting
Since approaching a customer is the first point of contact, the approach has to be good. A good
approach by the salesperson makes the customer feel that the salesperson is present to assist whenever
he/she is needed.
The Various types of Approaches are as follows:
Non–verbal approach
Conversational Approach
Merchandise Greeting Approach
Special Feature Approach
Customer Benefit Approach
Compliment Approach
Common Mistakes While Approaching
A few common mistakes which a salesperson could commit while approaching the customers are:
Approaching the customers too soon and not giving enough time to settle
Not establishing proper eye contact with the customer
Making insincere and false compliments
Making over-smart remarks
Talking too softly, loudly or too much
Not giving full attention to the customer
Not smiling while attending to the customer
Using the “how can I help you?” approach instead of “can I” approach
Begging for a “no thanks. Just looking” answer
Implying that the customer needs help
Cutting off any further contact, if the customer says “no”
Progressing the sale
The process of progressing the sale includes:
Discovering and analyzing the customer’s needs
Sales presentation, demonstrating features and benefits of the products
Handling customer’s objections properly
Closing the sale in a proper manner so that the customer will visit again
Observations
By observing the customers the salesperson can get to know their likes, dislikes and lifestyles.
Questioning
While discovering the needs of the customers, the salesperson should do the following:
Ask the questions to find out the needs of the customer
Avoid shooting questions continuously at the customers
Allow the customer to talk and express
Answer the customer’s queries accordingly
Be pleasant and helpful towards the customer
Ask the questions politely
A salesperson may ask two kinds of questions to a customer.
Open-ended Questions
An open-ended questions evokes thoughts and gives an insight into the needs of the customers. Since
open-ended questions cannot be answered with a simple “yes” or “no”, they help in letting out the
customer’s feelings.
Close-Ended Question
A close-ended Question in used to obtain specific information and/or confirms exactly what the
customer requires. Since a close-ended question requires only a one word answer and puts an end to
the conversation, they help the salesperson to draw a conclusion about the customer’s requirements.
Open-Ended Questions Close-Ended Questions
What exactly do you have in mind Sir/Ma’am? Are you looking something for you own home or a
gift?
What does your daughter do? Are you looking for an office or evening wear?
What are your father’s interests? What is your favourite colour?
Tell me about your wife’s choice of the fabric? Would you like to buy a cotton or silk sari?
Customer’s Buying Motives
A few customers like to shop costly items.
A few customers like to shop less costly items.
A few customers look for brand and a few for variety
A few customers look only for fashion
Thus, needs differs according to the customer’s motive and lifestyle.
The following are a few buying motives of the customers:
Since different customers buy for different reasons, it is important to understand the needs of
the customers and also the motive that lies behind the activity of buying.
Each of the customers is different and the salesperson should tailor his/her conversation
accordingly.
The variegating needs and motives of the customers are identified through questioning and
talking to the customers.
The Sales presentation
The quantity of a sales presentation often decides the buying factor of the customer, hence the
presentation should be relevant to the prospective customer and should create a connection between
the product/service and the prospect.
Objections of a Sales Presentation
A salesperson should convince the customer that the product:
Will satisfy his/her need
Is available at an affordable price
Has utility/benefit which would satisfy the needs of the customer
A good presentation is about selling a product or service to make a maximum impact on the customer in
a very short time.
Product benefits
A product may be explained in terms of its features and benefits. Features are product characteristics
that deliver benefits. A product benefit must satisfy the customer’s need or problem. Identify the
benefits of the product from the customer’s point of view.
A salesperson should check for the following points, while making a sales presentation:
Whether all the features of the product are covered
Whether the product knowledge will provide the customer the specific information that he/she
needs
Whether the unique feature of the product/brand is mentioned
Whether the product benefits are linked to the customer’s buying motives
Product Demonstration
The most vital factor for an effective marketing of a product
is the product demonstration. Without an effective product
demonstration, the possibility of the sale to happen is less.
Thus, a salesperson should possess the ability to demonstrate effectively.
A salesperson should ensure the following points, while giving a product demonstration:
All the senses of the customers are involved because this is the key to a good sales presentation
The customers are allowed to touch, feel, or smell the product
Handling Objections
An objection refers to anything said or done by a prospective to indicate that he/she is not sure about
the product and wants more information on it. A salesperson should always try to give proper answer to
handle an objection.
The price should be considered as a secondary factor at the time of conveying the benefits. The purpose
of any business is to find and retain the existing customers. Handling objections is important for a sale
because:
Customer’s objections are merely a stage in the stage in the progress towards the sale.
An objection is usually a hidden request for more information.
An objection does not mean that the customer will not buy.
How to handle objections?
Handling objections involves convincing the customers to buy a product/service.
The salesperson should tactfully resolve the objection in a manner that convinces the customer that
his/her objection has been properly answered. The customer, therefore, should not have any doubts in
buying the product.
The different methods of handling customer’s objections include:
Listening of the customer and not interrupting when the customer is talking.
Understanding the customers needs
Empathising with the customers i.e. thinking from the customer’s point of view
Listening carefully without getting disturbed with the customer’s speech or mannerism.
Restating the objection by phrasing it as a question so that the customer understands that the
salesperson found his/her need.
Seeking the customer’s agreement from the response
Not getting angry and staying calm
A salesperson should never lose his/her cool while handling an irate/confused customer. A salesperson
should allow the prospective customer to express freely.
Closing the Sales
Closing a sale is an important as opening a sale because it is the final step of a selling process. It happens
when a salesperson has given a great product presentation, offered a good price, and the prospective
customer has listened carefully and shown interest through out the presentation and the salesperson
has provided solution to the customer’s problem, if any.
Time for closing
A customer’s interest in a sales presentation is indicated by his/her remarks, actions, or response.
Establishing a mutually beneficial scenario is important for the final sales negotiations.
Examples of the Customers remarks/actions/responses that show their interest in the sales presentation
are:
Hears something that is relevant to his/her need
Is interested, but not ready to make a purchase
Already made his/her decision to buy
Recognise the Non-Verbal Buying Signals
A good salesperson always reads the verbal and non-verbal signals of the customers, which shows their
interest in a product.
Examples of the non-verbal signals of the customer:
Starts reading the product details
Handles or feels the product appreciatively
Returns to an item already shown
Widen the eyes
Moves forward to get a closer look at the product
Looks sideways at partner, seeking approval
Poses before the mirror
Smiles and speaks in a tone of voice reflecting inner excitement
Feels the texture of the garment
Starts matching jewelers with the garment, or tops with the bottom
Holds the garment or someone and smiles
Recognize the verbal buying signals
A customer’s interest in a product is conveyed not only through non-verbal signal but also from their
verbal signals. The following statements and questions are some examples of the verbal signals of the
customer’s interests:
I think this is close to what I want
Do you accept credit cards?
How much did you say this is?
Do you like this? (showing a product to the partner)
Do you provide home delivery?
Do you have my size in stock?
What is the kind of guarantee that you give with this product?
Show me all the colour options for this garment
Do I have to pay the cash right away?
May I exchange if this does not fit?
Topic 10: Customer Buying Behavior
At the end of this lesson, you will be able to:
Describe various factors that influence customers during shopping
Explain the various steps involved in the consumer decision making process
Describe the various types of decision making processes
Explain how the retailer can induce the customer to make impulse purchases
Explain the importance of customer loyalty
State the changes in the shopping behavior of consumers in the past decade
Factors Influencing Customers
How consumers purchase products provides terrific direction for a retailer. It helps the retailer to decide
as to which categories of products to stock, how to place, price and promote those categories. The
components of buying behavior provide a simple yet extremely powerful formula for driving sales
successes down to the category, brand and item level. Knowing your customer also means you can
choose the right level of service, ambience and facilities to suit the customer.
Today’s Customers know their needs. They are savvy purchasers, understand quality, and are value-
driven and practical. A retailer must respond to the way a customer shops, or be left far behind.
Demographics
Demographics are objective, quantifiable, measurable population data.
Groups of Customers are identified by variables such as:
Gender
Age
Literacy
Language spoken
Households
Martial Status
Income
Place of residence
Employment status
Occupation
Education level
Ethnic background
These variables strongly affect people’s shopping and retailer actions.
(Factors Influencing Customers)
Lifestyles are the means through which individual consumers and families live and spend time as well as
money.
A retailer must have knowledge of various lifestyle concepts and determine the lifestyle attributes of its
own target market. A retailer can develop a lifestyle profile of its target market by answering the
following questions and use the answers to develop retail strategy.
Culture: What cultural values, norms and customs are most important to the target market?
Social Class: Are the consumers lower, middle or upper class?
Reference groups: To whom do people ask for purchasing advice? How can the retailer target
opinion leaders.
Time Utilisation: How do people spend time? How do they analyse the time spent in shopping?
Class consciousness: Are customers status conscious? What does this mean for purchases?
Attitudes: How does the consumer feel about the retailer and its offerings? (positive or
negative)
Factors Influencing Customers-Retailer Actions
A retailer can adapt to consumer habits and profiles by taking effective actions which may include the
following:
Gender roles affect shopping habits
Level of consumer sophistication and confidence affect shopping habits
Shortage of time affects shopping
Retailers can derive consumer profiles for their store and offer the right pricing/merchandise
and services for their primary profiles.
Factors Influencing Customers-Customer Needs and Desires
Retailers look at the following questions and match the needs of the target profiles:
How far will the customer travel to reach the retailer?
Is convenience important?
What store hours are desired? Are evening shopping and weekend shopping desired?
What level of customer service is preferred?
How important is the price?
What are the special needs of the targeted profile?
Factors Influencing Customers-Shopping Attitudes and Behavior
Consumers may have different opinions on shopping. These act as a guide for the retailer. Some typical
questions that a retailer should ask about the customers are:
Do your customers enjoy shopping? Are they looking for comfort while shopping and quick
service or do they want to browse and window shop leisurely?
How do they perceive time spent in shopping a routine activity or a pleasurable activity?
What do they feel about sales and retailer pricing policies? Do they believe that high prices
reflect quality or are they practical shoppers who think that good bargains can be made all
discount stores?
Consumer Decision Making Process
The decision making process has 6 steps, as shown in the figure which despite alongside. Certain other
factors, like demographics and lifestyle also affect the decision making process. A good retailer assists
the customer at each stage of the decision making process.
Stage 1
Stimulus or cue
A stimulus or cue is a drive meant to motivate a person to shop. This could be an advertisement, or a
talk with friends who recommend the store, or a store display.
Stage 2
Problem Awareness
Here the customer who has been motivated also recognizes that the goods and services (in the store)
may solve a problem or unfulfilled desire. This could be a shortage of an item (the customer has run out
of a product he uses) or an entirely new product/service.
Stage 3
Information Search
Here the customer finds different alternatives that will suit his needs, and tries to understand the
characteristics of each alternative. The search can be internal (informational process in the customer’s
mind only) or external, where the customer interacts with and searches in advertisements, with retail
sales person, friend/family, etc. A search may be quick (for e.g. buying a new trouser) or long (e.g. when
buying a car or house)
Stage 4
Evaluation of alternatives
Once the customer has enough information, he can select an option from the list of choices available.
Each option will have different attributes and the customer ranks them based on their importance in
his/her mind. Different customers consider different criteria for decision making e.g. price, quality
warranty, etc.
Stage 5
Purchase Act
After choosing the best alternative, the person pays for the goods/service. Here, the decisions a
costumers makes are regarding the price, method of payment and delivery time. If he/she is satisfied,
he/she continues with the purchase.
Stage 6
Post Purchase Behavior
At this stage the purchase is re-evaluated by the customer. In some cases, buying one item will lead to
further purchases. For e.g. a car purchase leads to buying insurance. The person may re-evaluate the
item bought in the following manner:
Does the product perform as promised?
Do the attributes match the customer’s expectation?
Has the retailer performed as expected?
If the customer is dissatisfied, he/she may experience a doubt whether he/she has taken the correct
decision, in some cases, he/she may regret the purchase. Here, the retailer needs to reassure the
customer and solve his/her problem if any.
Topic 11: Job description of a sales person
At the end of this lesson, you will be able to:
List the principal accountability of a retail salesperson
Describe the functions of a retail salesperson
Functions of a Salesperson
1. Make a consultative sale
2. Ability to up sell
3. Understand customer’s behavior
4. Independent stock-taking
5. Store décor
6. Anticipate security risks and reduce theft
7. Product knowledge
8. Knowledge of store procedures and policies
9. Register order information
10. Service orientation
11. Develop and retain loyal customers
12. Relationship with colleagues
13. Neat work area
14. Grooming and personality
15. Cooperativeness towards discipline/commitment
16. Handle customers and payments
Make a Consultative Sale
The activities involved while making a consultative sale include:
Approaching and greeting
Recommending products
Describing merchandise
Responding customer queries
Handling customer objections
Handling queries while closing sale
Packaging Purchased products
Ability to Up Sell
The ability to up sell refers to selling upgrades, add-ons, or enhancements to a particular product or
service.
The ticket size could be increased by the salesperson in the following ways:
Recognizing the future needs
Selling substitutes for out of stocks items
Selling multiple products
Selling add-ons
Taking special orders
Ticket size
The size of an average cash memo in the store is known as the ticket size. This figure is obtained by
dividing the total sales of the day/week/month by the number of cash memos made in that same
period. This will give the average value of each cash memo or the ticket size. It is the job of the sales
person to increase this average value.
Selling substitutes for out of stock items
When the expected product is out of stock, the salesperson tries to fulfill the need of the customers by
providing them an alternate product, as per their requirements.
Selling multiple products
By informing the customers about the various offers available in their shop, the salesperson can sell
multiple products to them
Selling add-ons
Selling add-ons means selling things that the customer requires on buying a certain product.
Taking special orders
The salesperson can take special for items that are either out of stock currently, or are not normally
stocked, and finally inform the customers when the items will arrive
Understand Customer’s Behavior
In order to sell products effectively the salesperson needs to understanding the buying behavior of the
customers.
For this salesperson should:
Collect customer’s information, feedback, and data on the buying behavior as and when
required.
Give feedback to the store manager/merchandising department regarding the product’s
performance and trends.
Groups of customers are identified by variables such as:
Gender, age, literacy
Language spoken
Martial status
Income, place of residence
Employment status, occupation
Education level
Ethnic background
People’s retail shopping actions are strongly affected by these factors.
For example, the demographics of the stores customers could be:
20 to 25 years
Mostly male
Mostly single
Fresher’s
Independent Stock-taking
An accurate and complete stock-taking should be done by the salesperson independently. This requires
Understanding and following up the stock-taking process
Using the scanner or computer to register the stock in the inventory
Store décor refers to an effective display of the products so as to increase the sales, showcasing, brand
image and lifestyle. The salesperson should:
Arrange the ticket and display the merchandise so as to promote sales
Use props creatively in a concept/story
Ensure that the price tags are on the product and are visible to the customer.
Ensure that the shelf talkers, signage and customer communications in the store are visible and
positioned are signified.
Ticket
Tickets may be defined as the tags that come along with the product, mentioning the product feature
and guidelines for usage.
Signage
Signage means commercial signs or posters.
Anticipate security risks and reduce theft
Recognizing the security risks and keeping a watchful eye on thefts is one of the duties of a salesperson.
The salespeople should have proper knowledge to prevent or handle such situations
Product Knowledge
In order to give proper information to the customers the salesperson should be well versed with the
store procedures and policies.
The salesperson should have the knowledge of:
Promoting Brand Image
Payment Policies
Current Sales
Maintaining Sales records
Register Order Information
This involves taking the order from the customers (physically or on the phone) and entering the
information in the system.
The salesperson should be able to use the system quickly and accurately in order to register an order of
a customer effectively
Service Orientation
The salesperson should be service-oriented and should:
Understand the internal procedures and communication channels for handling customer service
issues.
Interact with the customers in a polite, friendly and enthusiastic manner
Listen politely and attentively to the customer grievances and redress them immediately
Give clear and sufficient information to the customer
Handle requests promptly from the customers and also act accordingly within the agreed
timescale
Deal effectively, firmly and politely with angry or discourteous customers
Direct the customer to the appropriate internal resources for resolving his/her queries
Develop and retain loyal customers
Developing and retaining a healthy relationship with the customers is important.
To ensure this the salesperson should:
Advice a customer with the aim of encouraging them to buy both in the present and in the
future
Work with a preferred customer list
Relationship with colleagues
A perfect team work is required to keep a large retail business running effectively and competitively.
During busy trading hours the salesperson should work with their colleagues as part of a team and
support them to maintain the ongoing customer service.
Neat Work Area
It is the salesperson’s responsibility to keep the work area neat.
Products and trading areas should always be kept clean and organized
Shelves, counters, tables and displays should also be kept clean
Grooming and Personality
The appearance of the salesperson gives a good impression about the store.
The salesperson should follow the grooming standards and adhere to
the uniform policy of the company.
The salesperson should always be enthusiastic, energetic, cheerful,
and project himself/herself as an appropriate ambassador for the company.
Cooperativeness towards Disciple/Commitment
The salesperson should be cooperative towards discipline & commitment. The salesperson should
always:
Appreciate and willingly follow the company’s rules and regulations.
Work with a commitment to protect the company’s interest
Have a good attendance and punctuality record
Follow instructions and orders of the superiors in order to progress in the work.
Handle Customers and payments
Handling matters regarding customers and payment includes tasks such as:
Accepting cash, credit cards, debit cards, foreign exchange, cheques, gift vouchers, gift
certificates, and any other legal tender from the customer
Processing the credit or debit card transactions and validating the cheques
Answering customers questions, and providing information on procedures or policies
Establishing or identifying prices of goods, services, or admission, and tabulating bills using a
calculator, cash register, or optical price scanner
Issuing receipts, refunds credits, or change due to customers
Processing merchandise returns and exchanges
Weighing items sold by weight in order to decide prices
Sorting out, counting, and wrapping the currency and coins
Ringing up the sale on cash till, computer point of sales terminal, or writing manual cash memo.
This may involve using an electronic scanner, cash register, or related equipment
Wrapping includes gift-wrapping merchandise, and preparing and packages for the shipment
Compiling and maintaining the non-monetary reports and records
Topic 12: Importance of Retail image
At the end of this lesson, you will be able to:
Explain the importance of retail image
List and explain the components of retail image
Retail image can be described as the overall look of a store and the series of mental pictures and feelings
that it evokes in the minds of the customers.
Retail image is the foundation of all retailing efforts. For the customer, developing a powerful image
provides the opportunity to embody a single message, stand out from the competition and be
remembered. The retail image refers to how a retailer is perceived by the customers and others.
To attract maximum customers, the retailer must have a strategy or plan to project the image which is
based on two aspects:
1) Category to which it belongs and
2) Its competitors
Hence, they must have a clear and consistent image.
Factors contributing to retail images
Following are the factors contributing to the retail Images conveyed to the customers by observations:
The retailer’s name and store sign
Advertising and news articles
Treatment by salesperson
Signage
Store façade
Cash memos and catalogues
Store displays and visual merchandising
The shopping environment and other shoppers
The store layout, presentation, signage, displays and events can change to reflect originality and
excitement.
Let us now see how customer service helps in building a retail image.
The tangible and intangible activities undertaken by the retailer in conjunction with its merchandise and
services that it sells is the service. A few factors that make up service are:
Store Working hours
Parking Access
Credit acceptance
Caliber of salespeople
Store facilities
Delivery policies
Time spent on checkout
Store Location and Geographic Coverage
A good location may let a retailer succeed even if the strategy used is mediocre. The choice of a location
requires extensive decision making skill due to the number of criteria considered.
The criteria can be listed as follows:
Population size and traits
The competition
Transport access
Parking availability
The nature of nearby stores
Nearness of thee suppliers
Besides the location, the assortment, quality and fashion of the products in the store is a vital
contributing factor for the retail image.