Chapter 4

Selling and Service

Chapter 4: Selling and Service

4.1 Prepare for Selling

Identify the needs and characteristics of customers within the
target market and customize sales approach accordingly
Serve as an expert regarding relevant company and industry
pricing strategies, company policy, regulatory compliance,
product knowledge and company services
Support the development and execution of strategies for
selling products and/or services
Remain knowledgeable of sales goals, their implications and
how they are based on current and past performance
 Identifying and Prioritizing Potential Customers
Retailers realize that their customers differ in their
profitability in that a small number of customers account
for the majority of their profits. This is the 80/20 Rule.

and are loyal

Customer Records
To succeed in offering great personal service to customers, you will learn to rely
on maintaining a record of needs, preferences and other information that your
customers are willing to share with you.

Your Customer Records could be digitally recorded but could also be kept in a
notebook or binder.

Some retailers have an electronic Customer Relationship

Management program to track customers. Keep your
records up to date and deliver to customers your best
personalized assistance.
Customer Records
Keep records on anyone who comes into you store—whether they buy or
not. Make a note about any requests they make. Keep track of any follow-
up you do with the customer and make note of any responses you receive.
Be sure to keep your customer records private.

Your records should include the following for each customer:

• Name
• Email address
• Shipping/delivery address
• Telephone number(s)
• Occupation/hobbies, collections, activities, projects, etc.
• Purchases made
• Preferences or specifications (sizes, brands, types, colors, styles, allergies
• Other considerations like having products delivered, assembled serviced
Loyalty Programs
Many retailers and service providers offer loyalty programs. These programs
utilize data obtained from a customer’s previous purchases as well as any info
put in by the sales associate. Those who offer “Loyalty Programs” usually give
their customers a special card or account number.

Loyalty Program Examples:

Buy 10 sandwiches, get your 11th free

Spend $100 and get $20 in rewards on your next purchase
Referrals
A “referral” is when a person recommends a store or sales person to someone
else based on his/her experience.

If you are serious about building your clientele, you should ask for referrals. A
simple, effective way to ask for referrals that doesn’t sound push or rude is:
“If you’ve been happy with the service I’ve provided and know someone who
could benefit, have them give me a call.”

You should thank the person who sends you a referral no matter if the
referral makes a purchase or not. Give the person making a referral a call
to thank them or send them a “thank you” note. If a person continues to
send referrals, consider giving them something more, such as a discount
on a future purchase or a gift card.
Referrals
Keep in mind that “word of mouth” recommendations are the best means of
advertising.

Caterers, hairstylists, consultants, trainers, architects, contractors, electricians,

plumbers, and carpenters all rely on referrals to stay in business. The more referrals
you receive, the more business you will get!
Identifying and Priortizing Potential Customers
Unique Selling Propositions-what is it that makes you and your company different
from other retailers? Is it fast service, great customer care, personal service, or what?

Selling and Service Models-The 2 main models of selling and service are:
Self-Service-customers expect limited interaction with a sales associate
Relationship Building-customers expect to interact with a sales associate and expect to
receive recommendations, information and answers to questions.

What type of model do you think of when you go to these stores?

Walmart
CarMax
Chili’s Restaurant
Men’s Warehouse
 Advertising & Promotions

Promotion-anything that includes personal selling, publicity or activities that

cause customers to want to make a purchase. These activities could include
contests, social medial, giveaways, coupons, events, promotional gifts, referral
incentive programs, rebates and so on.

Advertising-the vehicle which a retailer uses to get the message to the customer
about a promotion. Advertising can be done in print (newspapers, magazines,
flyers, billboards, social media, etc.) or can be broadcast (TV, radio, etc.)

Ads are used to promote the latest trends, a new product, sale merchandise and
clearance items.
Understanding Pricing Strategies and Policies
Price Sensitivity-the price that the customer is willing to pay for the product
or service based on what benefit the purchase will give them.

Retailers must take into account:

1. At what price would a customer find this item too expensive?
2. At what price would a customer find this item priced so low that it’s probably not good
quality?
Understanding Pricing Strategies and Policies
Price Matching-this will help assure customers that they will get the best price
and means that if the customer finds the same item priced lower somewhere
else, you will give the customer that price at your store.

Caution: Price Matching does not necessarily apply to a brick-and-mortar store

price and an online price. Remember that online pricing is probably lower because
they do not have to pay many overhead expenses.
Understanding Pricing Strategies and Policies
Psychological Pricing-techniques that help create an illusion for customers.
Examples are:
Odd and Even Pricing-setting all prices in either an odd or even number. Using
odd numbers ($.79, $9.95, $699) you convey a feeling of a bargain. Using even
numbers ($10, $50, $100) you convey a feeling of quality.

Loss-Leader Pricing-used to increase store traffic by offering a very popular item

for a sale at below-cost pricing.
Example: Winn Dixie purchases dozens of eggs from a farmer
at $.89/dozen. They normally sell them to customers at
$1.49/dozen, but they want to use eggs as a loss leader to
get customers in the store, so they sell them at $.79/dozen.
Understanding Pricing Strategies and Policies
Calculate the Discount-a good sales associate should be able to calculate a
discount in their head or at least using a calculator. A simple method to figure a
discount is
Step 1: Subtract the discount from 100%
Step 2: Convert the percentage to a decimal
Step 3: Multiply the original price by the decimal amount (round to nearest penny)

Example: All books are 30% off. A customer wants a book that is originally priced at
$19.95.
Step 1: 100% - 30% = 70%
Step 2: 70% becomes .70 (move decimal place 2 places to left)
Step 3: $19.95 X .70 = $13.965 which would round to $13.97
(the amount the customer would pay
Understanding Pricing Strategies and Policies
Sales Tax-almost every state and local government impose a sales tax on
purchases. These can range from a low of 2.9% to a high of 11%.

Example:
Your state might impose a sales tax of 5%.
Your city might impose a sales tax of 4%.
This means you must pay a total of 9% in sales taxes on
your purchase.

Purchase a car for $10,000 and the sales taxes would be

$900 ($10,000 X 9%). This means you would need to pay
$10,900 for the car.
Chapter 4: Selling and Service

4.2 Gain Customer Commitment and Close the Sale

Listen and/or observe customers for verbal or nonverbal cues
indicating purchase intent
Discuss the specifics of the sale (e.g. deliver and/or installation
date, financing, warranties and product protection plan
Identify and suggest additional products and services to the
customer that complement the sale
Confirm sale information with the customer
Complete sales transaction with the customer
 Observing Customers for Buying Cues
A good salespersons pays attention to customers to determine when
they are ready to make a purchase.

Verbal Clues-listen for statements such as “I’ll take this one,” or

something more subtle like, “I really like the red one.”

Non-Verbal Clues-body language doesn’t lie, so if you

become good at recognizing a person’s body language,
you will be good at closing the sale.
 Identifying and Suggesting Additional Products
and Services
It is the sales associate’s responsibility to complete the sale by giving your
customers the chance to make their purchase AND buy any additional items that
might “accessorize” their purchase.

Sales Process in Action

Step 1: Recognize Buying Cues
Step 2: Offer Assistance
Step 3: Suggest an Additional Product/Service to Complement the Sale
Step 4: Close the Sale
Identifying and Suggesting Additional Products
and Services
Once the sale has been made, it is your job to go over the
• Warranty
• Extended service plan
• Delivery and/or installation, and the
• Return or exchange policy
Tips for Ringing Up a Sale Accurately

Attention to detail is very important when ringing up a sale.

• Be sure to enter item numbers or SKUs. This helps keep track of inventory levels.
• Make sure you are entering the right quantity.
• Enter prices carefully putting the decimal in the right place.
• Be careful about entering any personal information which could compromise a
customer’s privacy such as account numbers or credit card numbers.
• Make sure you subtract when you credit a customer with a return and add when
you are processing a purchase.
• Don’t forget to add sales taxes or delivery/installation fees.
• Always remember to give the customer their receipt (in their hand or in the bag)
Chapter 4: Selling and Service
4.3 Develop and Implement a Sales Follow Up Plan
Follow up with customers regarding suggestions for
future purchases
Suggest alternative products/services in lieu of return.
Evaluate the effectiveness of sales and marketing
strategies and take appropriate action
Evaluate the effectiveness of merchandising plans and
take appropriate action
 Follow Up With Customers

When following up on a sale, the sales associate will want to

accomplish at least one of the following:
• Ensure that the customer is enjoying their purchase
• Solve any problems that the customer is having
• Build a relationship
• Identify future purchase opportunities
• Alert the customer of upcoming promotions or new product lines
• Gain referrals
• Thank them for their business
Follow Up With Customers
When to Follow Up-not every purchase requires a follow-up.
Certain types of purchases (appliances, furniture, technology)
require a follow up. If delivery and/or installation were requested,
this would require a follow-up.

Phone Etiquette-keep in mind the time of day that you call to follow
up. Some customers might feel an interruption if you call during
dinner time.

Give the customer your business card when you introduce yourself.
That way you can tell them to call you if they have any follow-up
questions.