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Chapter 12
Customer Services and Retail
Selling
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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.
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Customer Service
Retailers can develop long-term relationships with their customers by offering:financial benefitssocial benefits
LO 1
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.3 - Three Basic Tasks of Retailing
LO 1
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Customer Service
It must be integrated into all the following aspects of retailing:Merchandise managementBuilding and fixture managementPromotion managementPrice managementCredit management
LO 1
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Common Customer Services
Pretransaction services - Provided to the customer prior to entering the store.Convenient hoursInformation aids
LO 2
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Common Customer Services
Transaction services - Provided to customers when they are in the store shopping and transacting business.CreditLayawayGift wrapping and
packagingCheck cashingGift cards
Personal shopping Merchandise availability Personal selling Sales transaction
LO 2
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Common Customer Services
Posttransaction services - Provided to customers after they have purchased merchandise or services.Complaint handlingMerchandise returns
Renting, not buyingFraudulent employee
actionsShoplift returnsPrice switching
Servicing, repair, and warranties
DeliveryPostsale follow-up
LO 2
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.4 - Six Rules to Follow When Handling a Customer’s Complaint
LO 2
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.5 - Factors to Consider When Determining Customer Services to Offer
LO 3
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.6 How the Retailer’s Sales Force Meets the Expectations of Both Vendors and Customers
LO 3
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Retail Sales Management
Types of retail sellingSalesperson selectionSalesperson trainingEvaluation of salespeople
LO 4
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Retail Sales Management
Types of retail sellingRetailers 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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Retail Sales Management
Salesperson selectionHiring criteriaPredictors
DemographicsPersonalityKnowledge and intelligenceExperience
LO 4
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Retail Sales Management
Salesperson trainingRetailer’s policiesMerchandiseCustomer typesCustomer choice criteria
No active product choice criteriaInadequate or vague choice criteriaChoice criteria in conflictExplicit choice criteria
LO 4
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.7 - Various Customer Types
LO 4
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.7 - Various Customer Types
LO 4
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Retail Sales Management
Evaluation of salespeoplePerformance standards
Conversion rateSales per hourUse of time
Selling timeNonselling time Idle timeAbsent time
Data requirements
LO 4
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.8 - Selling Process in the Retail Environment
LO 5
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.8 - Selling Process in the Retail Environment
LO 5
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.8 - Selling Process in the Retail Environment
LO 5
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Exhibit 12.9 - Some Closing Signals the Salespeople Should Watch For
LO 5
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The Customer-Service and Sales-Enhancement Audit
The objectives of the auditIdentify 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
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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.
The Customer-Service and Sales-Enhancement Audit
LO 6
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Basic serviceCustomer contactSalesperson-initiated contactCustomer acknowledgment
SalesmanshipMerchandise knowledgeNeeds clarificationActive sellingSuggestion selling
The Customer-Service and Sales-Enhancement Audit
LO 6
© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Sales enhancementImpulse purchasingWalkouts
The Customer-Service and Sales-Enhancement Audit
LO 6