CUSTOMER SERVICES AND RETAIL SELLING

Learning Objectives

ØExplain why customer service is so important in retailing.

ØDescribe the various customer services that a retailer can offer.

ØExplain how a retailer should determine which services to offer.

Customer Service

ØHigh-quality service - A service that meets or exceeds customers’ expectations.

ØA way in which retailers provide the high-quality service expected and reduce customer defections is through relationship retailing programs.

ØRelationship retailing programs - The activities designed to attract, retain, and enhance long-term relationships with customers.

ØRetailers can develop long-term relationships with their customers by offering:

- financial benefits

- social benefits

Three Basic Tasks of Retailing

ØIt consists of all those activities performed by the retailer that influence:

- the ease with which a potential customer can shop or learnabout 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.

ØTransient 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.

- Gives another store the opportunity to convert them

- What are some of the stores you know which actively work to avoid losing customers – and how do they do it?

ØPretransaction services - Provided to the customer prior to entering the store.

- Convenient hours – Examples of those which don’t?

- Information aids – such as?

ØTransaction services - Provided to customers when they are in the store shopping and transacting business.

- Credit

- Layaway

- Gift wrapping and packaging

- Check cashing

- Gift cards

Factors to Consider When Determining Customer Services to Offer

Retail Sales Management

ØTypes 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.

ØSalesperson selection

= Hiring criteria

= Predictors

- Demographics

- Personality

- Knowledge and intelligence

- Experience

ØSalesperson training

ØRetailer’s policies

ØMerchandise

ØCustomer types

ØCustomer choice criteria

ØNo active product choice criteria

ØInadequate or vague choice criteria

ØChoice criteria in conflict

ØExplicit choice criteria

Evaluation of salespeople