Uncontrollable Events

In any economic environment there will be reasons to explain away poor sales performance. Mostly these events are out of anyone’s control and it is convenient to use these uncontrollable events as the reason for poor sales. Indeed these times, with dampened consumer demand, is even more reason to have salespeople who can still effectively sell. Attractive stores will entice the shopper, but it will all be to no avail unless management has equipped and encouraged their staff to do their jobs with skill and proficiency.

Salespeople vs. Shop Assistants

It is encouraging to see that management has planned to spend $25 million investing in wages and training to improve customer service. What is meant by “customer service” is another question, and I hope it will have an emphasis on sales training because then it will be money well spent and long overdue. This is particularly relevant considering management is planning to open another 13 stores. If however these new stores are staffed by “shop assistants” and not “salespeople” the end result will be the same as always, low sales and profit margins. Unless the culture is changed and the importance of salespeople is recognised there will be no improvement to the bottom line. Once again we will be given by management that events out of their control have resulted in a poor profit result, yet again.

Previous post on the subject;

http://sales-selling.com/category/retail-selling

The Knowledgeable Shopper

Today the public can obtain all the information they need on any product or service through the internet so it is only natural that online shopping has evolved and become more popular. Many products and services lend themselves to be purchased online more than others, this will always be the case and no doubt the list will grow. For retailers competing in this new environment serious thought has to be given to how they can maintain and grow their business. Many react by conducting never ending sales and cutting back on overheads but this approach is self defeating. There will finally be a point where there is no where else to go and the outcome will be to go out of business.

Are You Being Served?

All the above points are very valid and need to be considered and implemented if retail businesses are to survive. However, in all the current discussions regarding retailing the missing link is the mention of the salesperson who engages with the shopper. The retail sales professional will be the catalyst in converting a shopper who is “just looking” into a buyer who has a good experience, will come again and recommend the store to others. Many retail businesses have survived changes over the years by setting a high standard for the salespeople and have developed strong repeat and referral business. Their service on all levels has remained constant and the customer’s needs are satisfied with a level of professionalism.

Bells and Whistles

Those retailers who believe the “shopping experience” is all about creating more lighting, fancy displays and the like to compete with online shopping will in the long run be disappointed unless they pay equal attention to their salespeople. Online shopping is here to stay and by all accounts will only get bigger. The area where online shopping will never be able to compete is in the face to face contact with the shopper. It is here where all retailers have the opportunity to prosper against online shopping if they pay attention and recognise the importance of their sales staff. We all like to be treated well and have our needs and wishes attended to by someone who is interested and helpful. The skilful retail salesperson can achieve this for any business and create a real shopping experience.

For further discussions on retail selling go to:

http://sales-selling.com/category/retail-selling

Sales Energy

The important point I see is the fact that they missed their sales forecast and only improved their results after lifting margins and reducing costs. These commercial steps are very important to any organisation however if you are in the business of selling the biggest improvement has to come from the store floor. On my visits to my local Myer store I am amazed at the low level of sales energy I get and I often leave after wasting time looking for a shop assistant, (distinct from a retail sales professional).

Sales Skills

In looking to the future the Myer program for future growth consists of more of the same and only gives passing recognition to the sharp end of selling, the salespeople doing the selling. It certainly sounds impressive, there will be more stores, increased working hours for staff and new cash registers but the situation will remain the same. Unless investment is made in building the sales skills of the staff meeting the customers, more stores, better buying and reducing theft will not improve the sales results.

Today in retailing there seems to be a lack of understanding the simple fact that increased sales will only come from those doing the selling and equipping them with all the tools, skills and reward for effort.

It’s not about store sales but better sales people.

Retail Selling as a Profession

While staff working in retail are called associates, shop assistants, counter staff, floor managers and the like the mindset will remain and staff will not appreciate the fact that they are there to sell. Quite often it is this reluctance by management and owners to appreciate, as in any selling environment, good salespeople will be the difference between success and failure. If retail staff are trained in the selling process and have the necessary incentives the need to rely on Store Sales will not be the main focus of the marketing effort. Good sales staff will view their work as a career and be in a position to earn more money as they improve their selling skills. Reward for effort always pays off. Being able to establish rapport and build relationships with customers will result in the skills to not only get the sale but recognise the opportunities to up sell. This creates higher turnover for the store at a profit margin higher than the same item sold during a Store Sale.

Job of Last Resort

Perhaps the time has come that management is more selective in employing staff and rather than just putting on people to serve they should think long and hard about the big picture. Most employed in retail have taken the job as a last resort and don’t see their position as a long term career. This perpetuates the problem of disinterested people who only see what they do as a job and fail to get any pleasure from the challenge and satisfaction that could be gained. We all remember that bad experience we had while at the mercy of uninterested sales staff but on the flip side we feel exhilarated when someone actually takes an interest in providing good old fashion service.

Long Term Career

My message to owners and management in retail is to rethink how they operate, employ and train staff in the skills of retail selling. They need to develop an attractive remuneration package as it is amazing the difference an incentive makes and how the prospect of a long term career will attract motivated people. Store Sales are an established part of the retail environment. Is it not better however to have higher turnover all year round at full mark up with positive engaged staff delivering sales and service that gets the customers coming back and recommending your store to others.

The interviewer was speaking to a large department store manager who commented he had found business had started to improve and he was looking to hire more associates.

“Associates” I thought, if sales were picking up and sales were improving I would have thought he should be hiring more “Sales People”

The field of retail sales is one of the largest and most diversified areas of selling, from the small corner store to the huge department and large box stores that now form a vital part of our economy.

Governments around the world recognise the level of retail sales is the barometer in gauging the health or otherwise of their economies.

Occasions such as Mother’s Day, Fathers Day, Valentines Day, Thanksgiving, discount sales and Christmas for example provide a boost in customer traffic and profits for the stores.

Retail sales are generally seen as sales made over the counter selling many types of goods to customers who come into the store to satisfy a need for the products sold.

To a large extent this type of selling has been a starting point or introduction to the profession of selling for many people and in my case my first sales position was a school holiday job in a men’s department store.

An opportunity to work in retail sales should be seen like any other sales opportunity and approached with the same recognition that the profession of selling can provide a long term career.

The same knowledge and skills required in any sales position are required in retail sales as with all selling, you are in a people business and it is by understanding the steps of the sale and the techniques of selling you will be a success and enjoy what you do.

It is unfortunate many in retail selling are POW’s (prisoners of work) and retail sales was a job of last resort.

They don’t see themselves as a professional sales person, viewing every customer as a sales opportunity and providing the extra assistance and service that has the customer returning to the store (and them) again and again.

It is a retold storey however to demonstrate a point I will repeat it.

A customer went into a fishing tackle store to buy a new fishing line as his old line was well used and he did not want it to break and that big one to get away.

That day his fishing life changed forever, he met a salesperson who listened and applied basic selling skills.

Through asking questions and listening the salesperson found he loved fishing and taking his family out when he could to experience the day and they all enjoyed eating fresh fish, however in recent times the catches had been small and the family had lost interest.

The salesperson was also a keen on fishing but had always used a boat to get out on the lake and fish in the deeper waters where the catches were always better.

The customer left the store with a new fishing line, reel, rod, boat and motor and of course the trailer to get him to the lake.

This also worked for the fisherman and as a result he and his family go fishing on the lake whenever they can and are enjoying the fresh fish they always knew were there but were out of reach fishing from the shore line.

By listening to the customer and understanding that his need was more than just a fishing line he was able to enhance the sale and at the same time develop a relationship with the customer who would continue coming back to the store.

Retail selling has the advantage in that depending on the stores promotion the customer comes into the store and it is then that the salesperson can provide the service and apply the sales techniques they have learned.

In most other selling prospecting is one of the major tasks of the sales professional.

The opportunity for the retail salesperson is one that makes the one on one customer contact immediate and the possibility of making a sale that step closer.

Learning the knowledge and skills of the sales professional applies to all selling positions regardless of the environment in which you sell and will not only prepare you to progress in selling but bring you the rewards and satisfaction in the work you do.

It is too easy to be an “Associate” in retail sales and not look to each customer as a selling opportunity.

Each customer is an occasion to practice and develop your techniques; to ensure the customer is satisfied with your approach and left feeling they have purchased what they wanted assisted by a skilled salesperson.

“It’s better to do things because you want to – not because you have to”.
Arthur J. Barrot.