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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

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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.