Reviewed October 1993
Contents
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Retail business is based on customers. This may seem obvious, but sometimes retailers get so involved in stock turnover, cash flow, taxes and payroll that they forget the reason for all that activity is to bring customers into the store and sell the merchandise to them.
Selling does not mean just putting your merchandise on a shelf or rack and hoping that customers will notice it. Selling means getting the word out. Too often retailers and sales staff feel they are imposing on their customers if they try to sell them something. You and your sales staff must be convinced that the merchandise in your store is well worth the price you've set and that you are doing your customers a favor by showing it to them.
You attract new customers by getting the word out -- advertising, promotions, word of mouth. Every time someone asks what you do, you have an opportunity to boast about your wonderful store. Every time someone compliments you on your outfit, you can tell them that this is the kind of merchandise they can find in your clothing store.
Promotion and advertising will bring people into your store -- at least once. After that, you and your sales staff must turn those people into satisfied customers who return.
Customer loyalty is no an accident. It is the result of hard work. You and your sales staff are there for one major purpose: to find out what your customers want and help them find it. Your key to making loyal customers is service -- customer service. Once you show your customers that you can meet their needs, they will come back.
Customers have tangible and intangible needs. Their tangible needs have to do with the product and its function: a suit to wear to the office, a chair to sit on in the living room, a toy for a grandchild.
Intangible needs are dreams and fantasies. They have to do with an image the customer wants to project. People select cars, items of clothing, furniture and other goods because they think those goods will make them look important, successful, sophisticated, younger (or older), etc. Intangible needs are an important aspect of selling. They are discussed later in this publication.
Customers have ideas of what the final results should look like. They can tell you when the item you suggest is wrong and when the next item is better but still not right. Part of your job is to find out about those ideas and find just the right item.
Customers are not just buying products. They are willing to spend money, time and effort to find the products that match the images in their heads. They expect the salespeople to appreciate their business and to help them.
The final purchase is important, but it's not the only important aspect. A well-designed store, a polite, nicely dressed salesperson and the way customers feel when they walk in the store are all elements that lead up to a final sale.
Salespeople should be neat, clean and appropriately dressed. They should be warm and friendly and make the customer feel important. You or a member of your sales staff should greet customers when they enter the store. Customers should leave the store feeling that they were served by a friendly and helpful salesperson. After all, customers bring their business to you. If you don't care, they can take their business to someone else.
In a small store, every customer expects individual attention. When you are alone in the store and you have more than one customer, you need to manage your attention so neither customer feels ignored. If both customers are browsing, try to divide your attention between them. If a new customer comes in while you are working with someone, try to direct that customer to the merchandise of interest. Excuse yourself to waiting customers, and explain that you will be free to help them soon. Thank customers for waiting. If you receive a business phone call while you are waiting on a customer, explain that you are busy, and ask the phone customer to hold or offer to call back. Do not forget to follow-up with the phone customer.
Product knowledge is one of the most important aspects of meeting the customer's needs. Everyone who waits on customers should know:
Along with a professional appearance, a caring attitude and product knowledge, salespeople must have the ability to uncover customers' intangible needs and find out what they really want. Your goal is to find something in the store that will meet the needs of your customers.
Probing is a technique for finding out what customers want. There are four basic types of probes that work in different situations and with different customer types:
Summary statements give customers a chance to agree or to add something to the information. ("So, you're looking for a blue suit that's not too tailored.")
Customer buying styles or behaviors can be divided into four types. Remember that most people are really a blend of these four basic types and that people sometimes change from one type to another.
A salesperson working with adversary-buying-style customers should speak with a strong voice, keep small talk to a minimum and listen carefully as these customers describe their needs. The salesperson should use open-ended and summary probes and get agreement before moving on to present the product or service.
When you are in the position of presenting a product or service to adversarial customers, you must be concise and emphasize the tangible advantages. Focus on what the product will do to increase your customer's power and respect.
Emphasize value and advantages. Product knowledge is essential, because if you do no know the answers, this customer will win and you will lose a sale. Repeat agreements, and be positive when closing the sale. Expect an argument or a qualified "yes."
To make a sale, you must go slowly, listen patiently and stay in control of the situation. Use many open-ended probes, and stress the products' benefits, efficiency and predictability. Be factual, invite feedback (which will be mostly negative) and give these customers lots of information. When it is time to close the sale, you should sum up the benefits and provide assurance.
Never talk down to these customers or be patronizing.
Your job is to keep the tone casual and informal, and try to control the customers' ramblings with close-ended questions.
Present merchandise indirectly -- stress the social benefits, the ways that others have benefited and the ways the product will meet the customer's intangible needs.
You should be businesslike, helpful and a good listener. Product knowledge is essential. Focus on why the products work. Then, let the customer ask questions, evaluate the products and sum up.
The service-oriented business does not stop caring about customers after the sale has been made.
Customers who are unhappy with a purchase, for whatever reason, are customers who need special care. The way you handle their complaints will determine whether you have made loyal customers who will return or enemies who will tell their friends about your poor service.
As soon as you realize that a customer is unhappy, work toward finding the reason. Perhaps there really is something wrong with the merchandise. Perhaps the merchandise did not meet the customer's intangible needs. Perhaps the customer does not know how to use the merchandise properly.
Whatever the reason for the complaint or return, treat the customer politely.
There are a number of extra steps that retailers can take to show their customers that they are special. Some of the more common ones are:
Some "extras" cost money. Whether you choose to pass the cost of these extras on to your customers will depend on what product you are selling and who your customers are.
This kind of special attention will keep your customers coming back to you even if the competition lowers prices. People go where they are appreciated. Here are some other service ideas:
How can you know how well your customer-care activities are working?
Many stores and restaurants provide customers with response cards. Place these cards in plain sight next to the cash register, or place one in the bag or box with each purchase. Try to find out how customers are treated and if there are any problems. Ask the customers for suggestions. Tailor specific questions to your business and area.
Postage-paid response cards make it easy for your customers to respond. Postal regulations required a specific format for the postcard, so check with the post office before printing your cards.
Other ways of checking on how well you are doing include a suggestion box, a periodic questionnaire and exit interviews.
You may want to distribute a questionnaire to your customers once a year or every six months. Design the questionnaire so that customers respond to specific questions with "Agree/Disagree." Be sure to leave a space for customers to add comments of their own.
With the exit interview, you can get immediate feedback from your customers. The interviewer stops customers as they leave the store and asks them no more than three quick questions. The questions might be: "Did you find what you were looking for?" "Were the salespeople courteous and helpful?" "Are you a regular, occasional or first-time customer in this store?"
Use this evaluation information to improve your service. Customers are usually pleased to be asked for their opinions. Improved service demonstrates to customers that you really do care about them and value their ideas.
Use probing techniques with the following five steps of the selling process.
Customers usually have ideas about the tangible items they need. This is what they will describe to you.
Customers, however, also have intangible needs. The intangible needs include the pictures in their minds about what the products will do for them. You must discover your customers' intangible needs by probing. Unless their intangible needs are met as well as their tangible needs, your customers will not be happy with their purchases.
It may be that you have not discovered or met her intangible needs. Perhaps she needs help with accessories and alterations before the dress will project the image she has in mind.
You manage objections by showing the customer how this product will work or by finding a better alternative.
Keep a card file of customers' names and addresses so that you can let them know how important they are to you.
MP656, reviewed October 1993