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Chapter 12 Customer Services and Retail Selling. Learning Objectives. Explain why customer service is so important in retailing. Describe the various customer services that a retailer can offer. Explain how a retailer should determine which services to offer. Learning Objectives.

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chapter 12 customer services and retail selling
Chapter 12

Customer Services and Retail

Selling

learning objectives
Learning Objectives
  • Explain why customer service is so important in retailing.
  • Describe the various customer services that a retailer can offer.
  • Explain how a retailer should determine which services to offer.
learning objectives3
Learning Objectives
  • Describe the various management problems involved in retail selling, salesperson selection, and training and evaluation.
  • Describe the retail selling process.
  • Understand the importance of a customer service audit.
customer service
Customer Service
  • High-quality service - A service that meets or exceeds customers’ expectations.
  • A way in which retailers provide the high-quality service expected and reduce customer defections is through relationship retailing programs.
  • Relationship retailing programs -The activities designed to attract, retain, and enhance long-term relationships with customers.

LO 1

customer service5
Customer Service
  • Retailers can develop long-term relationships with their customers by offering:
    • financial benefits
    • social benefits

LO 1

customer service7
Customer Service
  • It consists of all those activities performed by the retailer that influence:
    • the ease with which a potential customer can shop or learn about the store’s offering.
    • the ease with which a transaction can be completed once the customer attempts to make a purchase.
    • the customer’s satisfaction with the transaction.

LO 1

customer service8
Customer Service
  • Transient customer - An individual who is dissatisfied with the level of customer service offered at a store or stores and is seeking an alternative store with the level of customer service that he or she thinks is appropriate.

LO 1

customer service9
Customer Service
  • It must be integrated into all the following aspects of retailing:
    • Merchandise management
    • Building and fixture management
    • Promotion management
    • Price management
    • Credit management

LO 1

common customer services
Common Customer Services
  • Pretransaction services - Provided to the customer prior to entering the store.
    • Convenient hours
    • Information aids

LO 2

common customer services11
Common Customer Services
  • Transaction services - Provided to customers when they are in the store shopping and transacting business.
  • Credit
  • Layaway
  • Gift wrapping and packaging
  • Check cashing
  • Gift cards
  • Personal shopping
  • Merchandise availability
  • Personal selling
  • Sales transaction

LO 2

common customer services12
Common Customer Services
  • Personal shopping - An individual who is a professional shopper performs the shopping role for another; very upscale department and specialty stores offer personal shoppers to their clients.
  • Dwell time - The amount of time a consumer must spend waiting to complete a purchase.

LO 2

common customer services13
Common Customer Services
  • Posttransaction services - Provided to customers after they have purchased merchandise or services.
  • Complaint handling
  • Merchandise returns
    • Renting, not buying
    • Fraudulent employee actions
    • Shoplift returns
    • Price switching
  • Servicing, repair, and warranties
  • Delivery
  • Postsale follow-up

LO 2

exhibit 12 6 how the retailer s sales force meets the expectations of both vendors and customers
Exhibit 12.6 How the Retailer’s Sales Force Meets the Expectations of Both Vendors and Customers

LO 3

retail sales management
Retail Sales Management
  • Types of retail selling
  • Salesperson selection
  • Salesperson training
  • Evaluation of salespeople

LO 4

retail sales management18
Retail Sales Management
  • Types of retail selling
    • Retailers that concentrate on the sale of shopping goods want their salespeople to both get and take orders.
    • In lines of retail trade where predominantly convenience goods are sold, the role of the salesperson is that of an order taker.
    • It is generally true that retailers with high margins and high levels of customer service place more emphasis on order getting; those with low margins and a low customer service policy tend to emphasize order taking.

LO 4

retail sales management19
Retail Sales Management
  • Salesperson selection
    • Hiring criteria
    • Predictors
      • Demographics
      • Personality
      • Knowledge and intelligence
      • Experience

LO 4

retail sales management20
Retail Sales Management
  • Salesperson training
    • Retailer’s policies
    • Merchandise
    • Customer types
    • Customer choice criteria
      • No active product choice criteria
      • Inadequate or vague choice criteria
      • Choice criteria in conflict
      • Explicit choice criteria

LO 4

retail sales management23
Retail Sales Management
  • Evaluation of salespeople
    • Performance standards
      • Conversion rate
      • Sales per hour
      • Use of time
        • Selling time
        • Nonselling time
        • Idle time
        • Absent time
    • Data requirements

LO 4

retail sales management24
Retail Sales Management
  • Conversion rate - Percentage of shoppers that enter the store that are converted into purchasers.
  • Sales per hour is computed by dividing total dollar sales over a particular time frame by total salesperson or sales-force hours.

LO 4

the retail sales process
The Retail Sales Process
  • Prospecting - Locating or identifying potential customers who have the ability and willingness to purchase your product.
  • Closing the sale - Action the salesperson takes to bring a potential sale to its natural conclusion.

LO 5

the customer service and sales enhancement audit
The Customer-Service and Sales-Enhancement Audit
  • The objectives of the audit
    • Identify the service, salesmanship, and sales-enhancement methods that will produce more sales from the existing shopping traffic.
    • Target the methods by store and selling area that will produce the most significant improvements.
    • Determine the added sales that can be generated by improving the accepted service level, salesmanship, and sales-enhancement programs.

LO 6

the customer service and sales enhancement audit31
The Customer-Service and Sales-Enhancement Audit
  • Advantages of the audit:
    • Provides management with a detailed analysis of current sales activity by location and by selling area.
    • Identifies how and where additional sales volume is available.
    • Measures, analyzes, and reports on the specific factors.

LO 6

the customer service and sales enhancement audit32
The Customer-Service and Sales-Enhancement Audit
  • Basic service
    • Customer contact
    • Salesperson-initiated contact
    • Customer acknowledgment
  • Salesmanship
    • Merchandise knowledge
    • Needs clarification
    • Active selling
    • Suggestion selling

LO 6

the customer service and sales enhancement audit33
The Customer-Service and Sales-Enhancement Audit
  • Sales enhancement
    • Impulse purchasing
    • Walkouts

LO 6