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Mercuri International 2009 © - all rights reserved

A new approach to sales efficiency in retail

Mercuri International

Mourad Piron

Global Segment Director Retail

[email protected]

MI Retail


today...

The Retailworld

Let’s have a look in the retail world

2


Some facts

► Customer flow and revenue are decreasing in all sector

► Staff turnover (or churn rate) is high

► Selling time process are shorter than before

On average 70% of the clients have been on internet before coming in the store (better informed on the products)

The client knows what he wants and at what price he wants to buy it

► Sales assistant role is not a vocation

► Too many external factors are influencing our sales revenue

(weather, trend, crisis....)

3


► Store managers are quite often too busy at:

Managing staff planning

Selling in rush period

Working on reporting (Revenue, customer flow, merchandising...)

► Therefore they don't spend enough time to:

Manage the sales activity

Manage the team

Understand how to convert more clients as buying clients

...

4

Some facts


1,23

CO

MM

ER

CIA

L E

FF

ICIE

NC

Y

1

1

1

x

x

Today

0.9

0.9

x

x

Potential clients(Customer catchment area)

Incoming flow(in store)

Attraction rate(number of clients approached/flow)

Converted rate(Buying clients/

Approached clients)

1 1

Sales Assistants impact

-

-

+

+ +Averagebasket

C.E.I.* for a store

5

Before 2009

C.E.I.

*Commercial EfficiencyIndex


A costant evolution

The Management

Let’s observe the retail environment...

6

The Retailenvironment


The managers stakes…

► When a good results makes them forget about all the rest

We have done a good result today ….

► When priorities kill real priorities

We need to sell but also merchandise the products, welcome the clients, have a look at the thieves, manage the OOS, be at the till …

7

The managers pathologies in retail


Put into practice to understand the causes & effects chain related to results

The stakes for a point of sales:

To develop the store manager

8

Why should I change?

“ if I already have good results in my store… “

“ if what I’m currently doing works well… “

“ if anyway results are not only depending on me (weather, crisis...)”

By responding to the “why” frame , a manager will have the opportunity to understand the reasons of changing his way to

manage the POS


► Focus on managers priorities to secure their business in the future

► Prepare managers to face challenges to obtain better results in

sales and to avoid making the same mistake twice

► Take into consideration the cause and effects chain to understand the

different levers generating results.

What to do?

The solution for your company

9

€

POSPeople


The added values of “edutainment”:

Intensive training Knowledge contribution

Specific context

Business Simulation: “MI Virtual shop™”

Disguised world to focus people on thinking

10

Mercuri International Solution


How?

► By making experiment how they can develop their results(store

KPI’s) through a simulation of the reality without any risks!

“MI Virtual shop™”

11



Your “MI virtual shop™” tailor made

12



10-12 personnes

Traditional training Business simulation

No. of participants

per group

No. of groups

for deployment

Adherence,

acceptance, anchoring

► A business simulation is a teaching method that allows the facilitator to actively involve and manage groups of about 20 participants and to maximise investment return (IR).

12 - 18 groups 8-9 groups

Budget Optimised Budget

20-22 people10-12 people

ROI Optimised ROI

Investment : Huge ROI

13



► Every situation is twice simulated: it is a crucial aspect for the success and, commitment, to be able to verify and to experiment the reached progress;

► Every situation included in the Business simulation proposes to the participants a model of " problem-solving ";

► Every action which engenders a profit is underlined and every fault is analyzed:

operational best practices and indications on what to do, why to do it and how to do it, is suggested during debriefing;

► Key learning points are constantly shared and discussed:

the implementation of the profitable practices is the constant focus of the simulation.

High increase of know-how

14



► No change arrives without meeting of difficulty

Why to change if what I do works ?

► A great opportunity to implement new profitable practices

no risks= no costs

► Training efficiency

Knowledge and know-how development

Three reasons to choose “My Virtual shop™”

15



A transformation...

Of the Salesman

Let’s observe the retail environment...

16

The Retailenvironment


The pathologies of the salesmen

The weakness of the effective time of sale

► Less than 30%It is on average the active time of sale (encounter with customers) spent by a salesman on the total of its working time

► Less than 1 minute and 30 sec.( After the starting up of the sales pitch); it is the average time noticed in store to hear the first argumentation of the salesman

► The sales floor does not wear out everywhere...Salesmen do not bring clients everywhere in the store and therefore do not spend enough time with the client: some categories are never seen by the client…what a pity when you think about how much you pay the Sq/ft!

17


Alarming observations

► More than 80%It is on average the proportion of the customers who will answer: " not

thank you, I look! ", during an intro by the sales assistant such as: "can I help you? “

► Less than 30%It is the part of maximum influence that a salesman can have during a sale to a former regular customer having lived numerous problems with his store and his previous purchases!

► An extra month salaryIt is the performance reached by a shop of equipment of the house that has to systematize its approach of additional sale by working the associated speech

18

The pathologies of the salesmen


with…

► A new client or a loyal client?

► Buy for him or for someone else?

► A client uncertain about what he wants to buy or certain about it?

► A client who knows everything about his purchase?

► A « fashion victim »?

► A client who just want to buy a promotion?…

Must the approach remain the same?...OF COURSE NOT!

Everything depends on the sales situation…

19

Must we have a single approach?


The attitude of the client towards our offer

Strong preference

Weak preference

20


Expectations of the client towards the sales assistant

21


Another way to sell!

PREFERENCE -« win the sales »

PREFERENCE +« win the relationship »

AU

TO

NO

MY

Expecte

d a

dded v

alu

e

weak

DEP

EN

DA

NC

E

Expecte

d a

dded v

alu

e

stro

ng

RESISTANTS

OPPONANTS

RECEPTIVES

LOYALS

EXECUTION INFORMATION ADVISE DECISION

22


Must we have a single approach?C

lie

nt

sta

tem

ent

Sellin

g

sit

uati

on

Sale

sm

en

pro

file

Relational sellingTransactional

selling

ProjectiveEmpathic

23


And you…?

Do you know the attitude and the expectations of your customers?

Is the sales approach of your salesmen the most adequate?

Let’s have a look at your world...

24


Your project for 2010?

25


Who are we ?Mercuri

International

Who we are...

26


Mercuri International approach

► Created in Sweden more than 45 years ago, Mercuri International exists in more than 40 countries.

► Our mission is to develop the commercial impact of companies:

via consultancy: Structure of sales teams and commercial organization, sales and management resources, motivation.

via training: Development of the competences of sales teams and sales managers via intra and inter company training sessions.

27


A systematic way of working to produce the expected result - details

28

Analysis

Consultancy

Training

Evaluation

Implementation

Assessing the present situation

Building the

solution

Training of

models enabling

the reaching of

objectives

Ensuring change

Measuring

results

achieved


Mercuri International combines a variety of services to support organic growth

Analysis, consulting and programmes to

optimise sales efficiency

Restructuring

sales

Follow-up and coaching to secure

business results

Programmes and coaching to improve sales performance

Securing

implementationImproving competence

29


How things have changed...

A long time agoOverall demands from Retail

STORELOCATION

STORE DESIGN

STORE LAY-OUT

SENSORY MARKETING

VISUAL IDENTITY

VISUALMERCHANDISING

OPERATIONAL MARKETING

PRESENTATION OF THE STAFF

CLIENTRELATIONSHIP

STORESERVICES


How things have changed...

A long time agoOur areas of expertise for Retail organizations

STORELOCATION

STORE DESIGN

STORE LAY-OUT

SENSORY MARKETING

VISUAL IDENTITY

VISUALMERCHANDISING

OPERATIONAL MARKETING

PRESENTATION OF THE STAFF

CLIENTRELATIONSHIP

STORE SERVICES


Our references

Let’s have a look at your world...

32


Some references in « Retail »

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http://www.jassshop.ch/shop/ProdukteBilder/logo-cartamundi.gif

http://images.google.be/imgres?imgurl=http://home.scarlet.be/2vermaelen/Facq.gif&imgrefurl=http://home.scarlet.be/2vermaelen/Pijpfitten.htm&usg=__5w0LsLpR4WtnDNcEKNkONs1pSms=&h=100&w=100&sz=4&hl=nl&start=4&tbnid=oLOzhJo_hgQODM:&tbnh=82&tbnw=82&prev=/images?q=facq&gbv=2&hl=nl&sa=G

http://images.google.be/imgres?imgurl=http://www.hasrub.co.nz/images/Fiskars.jpg&imgrefurl=http://www.hasrub.co.nz/index.php?cPath=2&usg=__I9F2FUZxEtibfSNEWMRgE20N_pM=&h=283&w=393&sz=14&hl=nl&start=3&tbnid=VJ6ROFuCjk0RaM:&tbnh=89&tbnw=124&prev=/images?q=fiskars&gbv=2&hl=nl&sa=G

http://images.google.be/imgres?imgurl=http://www.experianbs.be/Vision/200804/images/Logo_Equiform.gif&imgrefurl=http://www.experianbs.be/Vision/200804/Enews_BusinessStrategies_DUT.html&usg=__i86J2QNFE2E5faQD4ChubYoZA-I=&h=104&w=150&sz=5&hl=nl&start=2&tbnid=BAAyzR6qMEYZIM:&tbnh=67&tbnw=96&prev=/images?q=equiform&gbv=2&hl=nl&sa=G

http://www.leroymerlin.fr/mpng2-front/pre?zone=zonecatalogue&renderall=on&idLSPub=1123599291&pageid=17

http://www.pearle.be/



http://images.google.be/imgres?imgurl=http://www.a-vos-soldes.fr/blog/wp-content/uploads/2009/04/228715fnac-logo9-b-1631-3.jpg&imgrefurl=http://www.a-vos-soldes.fr/blog/tag/fnac/&usg=__GpbPl09D_jBzYX5y_4-3VNvziGI=&h=493&w=500&sz=15&hl=fr&start=1&tbnid=Z9vO-YbOJqgIRM:&tbnh=128&tbnw=130&prev=/images?q=fnac&gbv=2&hl=fr

Mercuri International 2009 © - all rights reserved 34


Mercuri International 2009 © - all rights reserved 35


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