SIRXSLS002A - Advise on Products and Services

Certificate IIin

Retail

Learning and Assessment Material

SIRXSLS002A

ADVISE ON PRODUCTS AND SERVICES

SIRXSLS002A Advise on products and services January 2008 Version 1 Page i of 22

Contents

Establish relationships with customers ………………………………………………………3

Maintain professional ethics……………………………………………………………………4

Clarify customer needs …………………………………………………………………………4

Acknowledgment of customer …………………………………………………………………4

Appropriate questioning of the customer ……………………………………………………..5

Active Listening ………………………………………………………………………………....5

Empathy ………………………………………………………………………………………….5

Reassurance …………………………………………………………………………………….6

Confirmation of Customer Wants/Needs ……………………………………………………..6

Analyse customer needs ……………………………………………………………………….7

What do you need to know? …………………………………………………………………..7

How do you find out?……………………………………………………………………………9

Don’t sell—solve problems …………………………………………………………………..10

Stay ahead of the game ………………………………………………………………………10

Appropriate and inappropriate advice: discern the difference…………………………….11

Why is product type important?………………………………………………………………11

How do you identify products? ……………………………………………………………….12

Why have product information?………………………………………………………………12

What are product characteristics?……………………………………………………………13

Where do you find product information? ……………………………………………………14

TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS ………………………15

Assessment task ………………………………………………………………………………16

ASSESSMENT MODE A - Oral questioning ……………………………………………….17

ASSESSMENT MODE B - Skills observation checklist …………………………………..18

Participant survey of materials ……………………………………………………………….21

Suggested Answers …………………………………………………………………………..22

Hinson Institute of Training

SIRXSLS002A Advise on products and services January 2008 Version 1 Page ii of 22

SIRXSLS002A ADVISE ON PRODUCTS AND SERVICES

Element of competency: 1. Develop product and service knowledge2. Recommend specialised products or services

Establish relationships with customers

Business is highly competitive, and it is most important to establish good relationships with customers in order to gain the sale, and secure return business.

If you show the customer that you have a genuine interest in their needs/requirements, and demonstrate your workplace’s credibility, you will go a long way towards establishing a sound professional relationship.

How do you go about establishing a rapport/relationship with customers visiting your workplace?

The customer’s experience will be determined by several factors. These can be classified under the following headings:

Personal

Professional

The qualities of the place you work in

It is most important that you provide a quality experience for your customer in each of these areas.

Every customer that enters your workplace is an individual. As such they will have different expectations of you and the place that you work in. One customer may scrutinise your store for cleanliness, whilst another may be looking for a superior product range. Other customers may look at you and form an impression, i.e. tidiness, your knowledge of the products etc.

SIRXSLS002A Advise on products and services January 2008 Version 1 Page 3 of 22

Maintain professional ethics

It is integral to your success as that you are able to maintain professional ethics. These ethics include:

Honesty

Knowledge of products and services

Positivity

Your customers will expect you to have a broad knowledge of the goods and services that you are selling, so that you have a firm foundation for appraising the products available and recommending the most suitable product/s.

Your professionalism will also be measured by your understanding of your store’s systems and procedures, your honesty and your positive attitude. Your professionalism will grow with your work experience as well as training.

A knowledge of who to ask for help in your workplace, should you encounter a difficulty is most important, as well as a willingness to learn and grow professionally from this person.

By being open and honest with your customers, you will go a long way toward establishing credibility in your customer’s mind. This credibility will lead to a level of trust and confidence in you, and therefore in your store.

C larify customer needs

In order to clarify your customers’ needs and preferences accurately, you need to exhibit the following:

Acknowledging the customer’s presence

Appropriate questioning of the customer

Active listening

Empathy

Reassurance

Confirmation of customer wants/needs

Acknowledgment of customer

Your store may have a set format where all customers receive the same acknowledgment, or your store may allow you to decide on the type of acknowledgment depending on the situation. Some workplaces may have guidelines on the timing of acknowledgment of customers.


Appropriate questioning of the customer

To determine a customer’s needs, it is vital to effectively gather information from them. You need to exhibit an ability to question your customer in a non-threatening and conversational manner. Questions should be asked in a logical order so that each question has a bearing on the next. This ensures that the customer has the opportunity to include information in a logical manner and is not confused as to why you are asking the questions.

A friendly and relaxed environment is essential. Do not continue to question a customer if they seem uncomfortable; use another option, e.g. perhaps the customer needs more time to browse.

Your first question of the customer should be non-threatening and open. This will help the customer to feel comfortable, and trust that you will not be “pushy”.

Active Listening

During a discussion, listening is very important. If you listen carefully, you can ask relevant and appropriate questions and gain your customer’s confidence. Listening carefully requires concentration on the emphasis the customer puts on words in order to interpret their meaning. In order to listen effectively to your customer, you need to:

Give the customer your full attention

Let your customer do most of the talking (at least 75%)

Accept what the customer is saying

Think about things from the customer’s point of view

Understand the depth of feeling in the customer’s “emotive” words.

As the customer gives you information, let him/her know you have heard what has been said. This can be done by:

Nodding your head

Reflecting on what is being said, e.g. “Yes, I understand”

Maintaining good eye contact.

Empathy

In order to show empathy for your customer’s needs, you will need to really “tune in” to what your customer is saying, and how he/she is saying it. Following the points above on listening will help you to develop an empathy with your customers.


Reassurance

Many customers will seek reassurance from you on the purchase they are about to make. Examples of points they seek reassurance on include:

After sales service

Quality of the product purchased

Price of the product

You should offer this reassurance in an open and honest way. Do not under any circumstances make any promises that you cannot keep.

Confirmation of Customer Wants/Needs

Whilst conducting a sale, demonstrating an understanding of your customer’s needs is most important. Customers may have a number of needs; confirmation of these needs will verify that you have not missed any.

Listening to what your customer says will give you indications of the need behind the purchase. Identifying these and confirming the needs with the customer of these will ensure that the appropriate benefits are highlighted to the customer.

You need to know about your products so that you can sell them successfully. What you need to know about products is what your CUSTOMERS will want to know.

It is your responsibility to build your product knowledge and keep it up to date.

If you don't know the answer to a customer's enquiry and you need to refer the enquiry to a more experienced person, remember to:

Acknowledge to the customer that you don't have the information they want.

Ask the customer if they would like you to find the information or refer them to another staff member.

Tell the customer what you are doing, especially if you need to leave them in order to consult another staff member. Do not simply walk away.


Analyse customer needs

One of the important skills in selling is the ability to match your store's products and/or services to the needs of each customer you serve.

Customers buy a product because of what a product will do for them. That is the benefits they will gain.

It is vital that you can distinguish between features and benefits - "features tell, benefits sell".

Features are the tangible measurable characteristics of a product. You should be able to see, hear, smell, touch or taste them.

The benefits are the answers to the question "What does it do for me?" Benefits could be safety, value for money, or enhanced status. Benefits can also appeal to the emotions.

Below are the six common needs of customers:

Safety Performance Appearance Comfort Economy Durability

What do you need to know?

Because there are so many different services and products, so many different industries, and so many different categories of customer or client, it’s not practical to present a comprehensive list of required information for every possible scenario.

A good rule of thumb, however, is to put yourself in the prospective client’s or customer’s shoes. As a customer, what would you expect a provider of your product or service, to know about your industry, your company, your role, your needs and you personally?

Again, reversing the roles between you and the customer or client, what would it benefit you to have the prospective new supplier know without having to spend time briefing them on?

It’s a simple matter of making a list of such issues, and then methodologically seeking out the required information.

Let’s take the case of a marketing manager and an account manager of a large consulting firm, making an initial fact-finding and ‘getting to know you’ visit to a prospective new client company.

What sort of information might they productively have gathered about the company itself before that critical first meeting?


Depending on the nature of consulting services being offered, the marketing manager and the account manager might have obtained any or all of the following information on the prospect:

History of the company

Ownership structure

General background and overview of the industry

The company’s current image

Stock market information relevant to the company’s own shares

Management structure and any prominent personalities

Board of director information

Number of employees

Department breakdown

Corporate culture

Accountants and legal service providers

Financial information

Number and location of plants / outlets, including international /

domestic network

Technologies

Core or key products or services

Other categories of product or service

Market sectors

Market positioning of its core or key products

Market share

Marketing strategies

Key customers or clients

Sales force information

Distribution channels

Key suppliers

Key competitors and the current competitive environment

The information that might be beneficial is not limited to this list—but it’s a good start.


How do you find out?

There are two categories of information source: PRIMARY and SECONDARY.

PRIMARY INFORMATION is that gathered from a firsthand source, ‘straight from the horse’s mouth’, so to speak. This includes, for example, market or opinion research specifically designed and commissioned by you or your organisation.

SECONDARY INFORMATION is that information, which already exists; that which has already been gathered and possibly processed/analysed as well.

Thus, what might be a secondary information gathering exercise for you, will often represent a prior primary research exercise for someone else.

Some of the most common and easily-accessed sources of relevant information are:

The Internet, including the company’s website and its competitors’ sites

Annual reports

Other corporate and product literature

Specific research periodicals and other publications by leading

research houses such as A.C. Nielsen and Roy Morgan Research.

Daily or business media

Market studies by advertising agencies

Existing customers, suppliers and distributors

Government departments

Chambers of commerce

Industry and professional associations

Trade press (national and international)

Industry directories

Libraries and librarians

Specialist industry analysts (e.g. the Gartner Group)

Studies by the large accountancy and management consultancy firms

(often particularly relevant to business-to-business, business-to-

government and industrial marketing)

The Australian and New Zealand Standard Industrial Classification (ANZSIC) system


Don’t sell—solve problems

The other important principle to remember in cultivating and consolidating your relationship with any new client or customer is that people don’t buy products or services. They buy strategies and solutions to their problems.

This highlights the need for good questioning skills and the building of a close working rapport. Further, it highlights the need for constant (e.g. in the case of a large account) reassessment of the client’s or customer’s needs.

If you place the emphasis on solving your customer’s or client’s problems relevant to your product or service, as opposed to simply the sale of your product or service, you will become a valued supplier and ‘team member’. Better still, if you are given, or can create, the opportunity to work sufficiently closely together with your client or customer, you can anticipate their problems, and thus the need for your assistance, service or product.

Your ultimate goal in your business relationships should be for your clients or customers to automatically pick up the phone to you/your company/your sales team, in response to any need that any of your services or products has the capacity to satisfy, or any problem your services or products have the capacity to solve.

Stay ahead of the game

One of the most effective policies you can adopt in managing and maintaining your relationships with your clients and customers is to stay ‘ahead of the game’. Or, rather, stay ahead in the game.

To be specific: Stay ahead in the service game, the quality game, the communications game, and the personal skills game.


Appropriate and inappropriate advice: discern the difference

There is a distinct advantage in distinguishing between relevant, constructive advice and that which is irrelevant or even counterproductive.

The first will promote the improvement of customer service delivery and the second may present unnecessary distractions or set up obstacles to the very thing you are trying to perfect.

Advice can come from many sources—staff within the organisation, industry authorities, members of the public or even people in unrelated fields that can help you “think outside the square”.

Regardless of where the advice comes from, you have to consider the following:

Are there vested interests buried in this advice?

Does this advice fit into our organisational requirements?

Who will be affected by this proposed change?

Who will be responsible for carrying it out?

What evaluation methods will be in place to see if it really works?

You have to decide whether the advice promotes true growth or adds an unnecessary burden on resources or services.

Why is product type important?

To do your job properly you must understand the types of goods that you will be expected to handle. The products you work with in the warehouse will have a bearing on how you do your job.

Product type will effect:

How a warehouse is laid out

The type of storage used

The type of materials handling equipment used

The level of technology

The type of packaging used

Handling procedures.


How do you identify products?

Correct product identification leads to fast and efficient processing of goods through the warehouse. Products can be identified using any of the following methods:

Visual distinguishing features

Print based identification

Product identification systems

Identification by location.

Why have product information?

One of the main ways you will use to identify a product is by looking at the package that it comes in. The types of information that you are likely to find on a product package could include:

Use by dates

Handling symbols or instructions

Manufacturers specifications

Weights

Dimensions

Packing instruction

Health and safety information

Address details for customers

Freight forwarding details

Advertising

Identification codes

Storage instructions.

The above list is a sample only, of the types of information you may get from looking at the product.


What are product characteristics?

Product knowledge is not just about identifying goods. It is also meant to give you an understanding of how you must handle different types of stock. To do this you must learn the characteristics of the products you will be expected to handle. For instance:

Hazardous substances have very strict storage and handling regulations.

Perishable products have a life expectancy and a use by date is applied to them to reduce the risk of poor quality or danger to users

Fragile products such as glassware must be suitably packaged and handled with care to avoid breakages

Heat sensitive products such as medicines or food must be stored under temperature control

Attractive items such as drugs or tobacco will need strict security

Explosives require precautions. For example, safety distances.

In general terms product characteristics will largely determine:

How you handle the product

The type of equipment you use such as fittings for forklifts.

For example, the use of drum clamps, or a paper spindle

The type of storage needed. For example, racking or binning

Product compatibility. For instance, you would not store food next to chemicals, due to the risk of contamination

The method of packing. For example, plastic wrap or cardboard box

The method of unitisation. For example: pallets or containers.


Where do you find product information?

Knowing where and how to source information about the products you are handling is an important part of gaining product knowledge. Some sources for gaining information on products include:

Asking your supervisor or other staff

Reading product pamphlets

Looking at manufacturers specifications

Information on packaging

Information on supporting documentation

Using your warehouse management system

Using laid down workplace procedures

Product advertising.


SIRXSLS002A ADVISE ON PRODUCTS AND SERVICES

TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS

The Trainee will be required to demonstrate competence on the job, in practical demonstration; observation, question/answer and role-play situations, incorporating verbal questions and written work, including completing workplace forms, either to the RTO Trainer or Supervisor, under the guidance of the RTO Trainer.

Element of competency: 1. Develop product and service knowledge2. Recommend specialised products or services

1. What are some of the customer requirements you deal with?

2. What product information might a customer require?


3. Why do you need to know about your products and services?

4. What are sales promotions aimed at?

Assessment task

Demonstrate for your workplace assessor, your ability to:

Develop product and service knowledge

Recommend specialised products or services


ASSESSMENT MODE A - Oral questioningTrainee name:

Name of Workplace:

RTO Trainer name:

Unit/s of competency: SIRXSLS002A

Unit Name: ADVISE ON PRODUCTS AND SERVICES

Date of training/ assessment visit:

Instructions: In addition to written answers provided above, the trainee is required to provide verbal answers to the following questions that will be asked by the RTO Trainer. Read the questions prior to the Trainer’s visit, and be prepared to answer them, obtaining help where necessary.

Did the trainee satisfactorily answer the following questions: Yes No





5. Why do you need to keep track of promotional costs?

6. How do you evaluate the benefits of promotional activities?

The trainee’s underpinning knowledge was:

Satisfactory Not Satisfactory

Notes/comments :

Question 1:

Question 2:

Question 3:

Question 4:

Question 5:

Question 6:

RTO Trainer signature:

Trainee signature:

Date of assessment:


ASSESSMENT MODE B - Skills observation checklistTrainee name:

Name of workplace:

RTO Trainer name:

Unit/s of competency: SIRXSLS002A

Unit Name: ADVISE ON PRODUCTS AND SERVICES

Date of training/ assessment visit:

During the demonstration of skills, did the trainee: Yes No N/A

Product knowledge developed and maintained according to store policy and legislative requirements.

Product knowledge conveyed to other staff members as required.

Comparisons between products and services researched and applied.

Knowledge of competitors' product and service range and pricing structure demonstrated.

Merchandise evaluated according to customer requirements.

Features and benefits of products and services demonstrated to customer to create a buying environment.

Detailed specialised knowledge of product applied to provide accurate advice to customers.

The trainee’s performance was: Not Satisfactory Satisfactory

Feedback to trainee:

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Trainee signature:

RTO Trainer signature:

I confirm competence for this unit SIRXSLS002A _________________ (Manager signature)

_________________ (Date)



C O M P E T E N C Y R E C O R D - SIRXSLS002A

After assessment the assessor, the supervisor and participant should sign the competency record. If competency is not achieved at the first attempt, strategies to address the performance gaps need to be identified and a time for re-assessment organized.

Assessor Comments

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

Valid Sufficient Authentic Current

The participant is competent has shown competence in all of the following elements:

Develop product and service knowledge

Recommend specialised products or services

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D A T E _ _ _ _ _ _ _ _ _

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_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D A T E _ _ _ _ _ _ _ _ _

D A T E F O R R E A S S E S S M E N T : _ _ _ _ _ _ _ _ _ _ _

Assessment Strategies

C U R R E N T C O M P E T E N C I E S

Oral/written questions

Activities

Workplace project

Supervisor/3rd party report

Self-Assessment

Other

The evidence supplied is:

Trainee Signature:

Supervisor Signature:

Trainer Signature

The Trainee is NOT YET COMPETENT:

Strategies to address gaps in trainee performance:

Off-the-Job Training Log

Trainee Name: ____________________________________ Supervisor signature: _________________________________

Company: __________________________________________________________________ Date: ______/______/200____

Certificate: II III IV in

Business (Office Admin/Admin) Civil Construction Extractive Industries Food Processing

Hospitality Process Manufacturing Retail Operations TDT (Road Transport)

TDT (Warehousing) Telecommunications (Call Centres) _________________

List below the times allocated to “Off-the-Job” training for: SIRXSLS002A – Advise on products and services

DateActivity

code Duration DateActivity



code Duration

Activity Code1. Read self-paced guides 2. Developed knowledge of use and safety requirements3. Met with Workplace Coach 4. Worked on assessment tasks5. Discussion on phone 6. Discussed assessment tasks7. Researched store policy and procedures 8. Researched legislative requirements 9. Researched workplace policies and procedures 10. Researched industry codes of practice11. Observed other staff member/s advising on products and services 12. Performance appraisal13. Other research 14. Read relevant industry publications15. Staff training 16. Talking to the supervisor17. Complete appropriate paperwork relevant to task 18. Other: (specify) __________________________________________


Participant survey of materials

Unit code: SIRXSLS002A Unit name: Advise on products and services

Date……..……………

Instructions:Please complete the questionnaire by circling the one number that best describes your answer to each question. Please read each question carefully. For mailed surveys, place the completed questionnaire in the enclosed reply paid envelope and post it back within seven days

Q1. Thinking in general about the material you were given for this unit, how would you rate it overall?

Circle only one answerPoor ………………………………………………………………………….…... 1Fair ……………………………………………………………………………….. 2Good …………………………………………………………………………..…. 3Very Good ……………………………………………………………………….. 4Excellent ...……………………………………………………………………….. 5Don’t know ……………………………………………………...…………...….. 6

Q2. How strongly do you agree or disagree with the following statements about the unit material?

Circle one answer only for each statement

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Ag

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Aa. The layout of the reading material made it easy to use/read 1 2 3 4 5 6b. The layout of the assessment material made it easy to use/read 1 2 3 4 5 6c. The font size of the material was large enough 1 2 3 4 5 6d. The reading material assisted me to complete the assessment 1 2 3 4 5 6e. The material was easy to understand 1 2 3 4 5 6f. The graphics/pictures were useful 1 2 3 4 5 6g. The graphics/pictures were sufficient in number 1 2 3 4 5 6h. The graphics/pictures were legible 1 2 3 4 5 6i. The materials was free from typing errors 1 2 3 4 5 6j. The material was relevant to my job/workplace 1 2 3 4 5 6

Comments: Please expand on the above points if you rated any of them less than 3______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________


Suggested Answers

SIRXSLS002A Advise on products and services


This should include:

Product specifications

Pricing

Availability

Delivery options etc.


Specifications

Pricing

Availability

Delivery options

Warranty

Availability etc


You need to know about your products so that you can sell them successfully. What you need to know about products is what your CUSTOMERS will want to know.


Sales promotions are directly aimed at increasing the sales of a specific product or service. They do not particularly aim to increase brand recognition, or change attitude.


Documents

SIRXSLS002A - Advise on Products and Services