Cutting Edge Retail Sales and Training

March 26, 2009 | Leave a Comment

Cutting Edge Retail Sales and Training By Scott Michelsen, Senior Consultant, DMSRetail

“Cutting Edge Sales” is in and of itself a buzz phrase describing a competitive sales advantage that every retail sales associate is looking for, a bit like the fountain of youth. Like the fountain, though, “Cutting Edge Sales” is something that is more inside of oneself than something concrete to be found.

Retail sales persons and consumers have changed a great deal over the years but what makes a retail salesperson extraordinary really has not changed that much. It takes the same dedication to ones craft that has always been the mark of an expert.

Yes, the consumers are better informed. Information is more readily available and the internet has provided an outstanding research tool for all people with a need but people can still be gently persuaded.

The important thing for one to remember is that the things that worked for salespeople hundreds of years ago did just that. They worked. And they still can with the right approach and a little cutting edge retail sales training.

The change in the dynamics of making a sale today compared to yesteryear should be focused more on the retail sales associate’s delivery, not necessarily the content of their pitch. I like to use the analogy that we are delivering the same package, but we are using the newest, brightest and shiniest wrapping paper.

The outline of a sale has looked the same with little variation for eons:

  • Approaching the Customer (Greeting)
  • Identifying Needs
  • Presenting and Demonstrating Options
  • Trial Closing
  • Handling Objections
  • Closing
  • Sales Follow-Up

The reason this outline has stayed the same is because it has a proven record of success. How this outline is delivered by retail experts has to change to keep up with the times and that is the evolution of sales. When one understands that they can start to understand more about “Cutting Edge Sales.”

A retail salesperson today, more than ever, has to sell oneself. Consumers in general are a very skeptical lot, especially when they are spending money that is harder to come by. As a result, they purchase from those that they trust and they tend to trust those that they like.

Today, so much more time has to be spent on greeting a prospective client. So many average retail salespersons skip this step entirely, or even worse are rude. That is why they will always remain average salespeople. Even a mandatory and effective greeting like, “Hi and welcome to our store” falls flat if it is not warm, genuine and sincere. Here is where one becomes a human and not just a salesperson, therefore gaining trust and becoming more likeable. Remember the old quote, “People don’t care how much you know until they know how much you care.”

Further, customers don’t want to be peppered with questions like they are undergoing a police interview. This rapport that you have now established makes for a free and easy qualifying stage and opens up your shopper to share their needs with you as well. Retail sales training consensus has always been, “A sale can not be made until the customers’ needs are met.”

Vocabulary is also a very key part to sales today. The lexicons of today vary greatly from the words of just a few years ago. It is more important than ever for retail sales associates and retail managers to continually build their vocabulary and be a wordsmith. This allows one to state exactly the points that need to be made without over talking and losing the customers attention and interest. Time is of the essence in today’s busy world.

It also helps to be “hip,” yet still formal and know more about the people with whom you are communicating. Thus, one can create the right vibe for comfortable buying which is very cutting edge.

Staying informed on the latest technology is one of the most critical parts of being “Cutting Edge.” Technical improvements over the years are too vast to list, but should all be put to good use for the expert retail sales associate.

Nothing is more important or more valuable today than real time information. Systems can provide very simple real time information and data that gives retail salespersons more tools with which to sell. Knowledge of inventory, sales tracking, delivery zoning and up to date pricing can better prepare retail sales associates to make a sale. This is a very powerful tool especially in this “Now generation” that we live in. Consumers don’t care to wait the extra 30 seconds to download an email joke. They certainly are not going to wait around long for information about a product or for the delivery of that product.

All of the instant information in the world is useless, however; unless one asks for the sale. The instant information is the shiny new wrapping paper, but asking for the sale is as old as the sales process itself.

The use of technology can also give a retail salesperson the ability to practice better customer retention and follow up by generating instant “Thank You” notes via email. Consider the impact of an instant email “Thank You” waiting for your customer when they arrive home from their shopping excursion or having them receive it on their Blackberry in the car on the way home.

It also allows customers to track “Frequent flyer miles” on line for future discounts and creates another outlet for prospecting. Researching the internet to better understand the competitions strengths and weaknesses is also a very effective practice of using current technology for retail sales training by “Cutting Edge” retail sales experts.

These are all tools that are mostly known to CEO’s and upper Retail Sales Management, but a better understanding of these tools can give a retail sales associate the upper hand needed to consummate a sale. It is another example of using instant information to utilize age old sales strategy and sales training, or an old package with new wrapping paper.

It is vital to commit to leading one’s retail field and staying ahead of the competition. The responsibility to stay atop of one’s profession is that of the retail sales associate alone, so don’t wait for management implementation. The most important concept a retail salesperson needs to embrace is that selling is life. As one evolves, learns and experiences life, they grow and improve, as it is in sales. The person that “Knows it all” can only start to degenerate, but the person who is hungry everyday for more knowledge and growth shall always stay a step ahead of the rest and on the cutting edge of sales.

You can reach Scott with your questions and/or comments at smichelsen@dmsretail.com


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Refill And Recovery

January 13, 2009 | Leave a Comment


This term is used to describe the process of restocking your shelves and making sure that your retail store is neat and tidy before opening for business. Too often a lack of attention to this process and the result is lost sales. In our retail store, we do refill and recovery an hour before the store opens for business. This ensures that our store is as new and ready for business when our customers come in.

Restock

Restock

Some Store Managers will tell you that they don’t need to schedule a specific time for refill and recovery; that it is something that is done on an on-going basis, through out the business day. They are losing sales and they don’t even know it.

Of course, the refill and recovery of the store is an on-going process that has to be continuously kept up by all associates to keep it under control, but that alone will not ensure you keep on top of it because sales associates have other priorities, including replenishment and serving your customers.

Lack of proper attention to the process, will result in loss of productivity, reduced floor coverage, out of stock situation on the selling floor, and disorganization in the warehouse.

Many customers will not bother to ask for the item if it is not on your selling floor. If the customer don’t see it, they will assume that you do not stock it. It’s a fair and reasonable assumption. After all, if you want to sell it, it should be displayed on the sales floor. Imagine the impact this can have on your sale target if that happens just a few times a day. It could make the difference between making your target and missing it.

For more articles, “How Much Is Your Customer Worth?”

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Back To Retail Basics

January 10, 2009 | Leave a Comment


The economic might experience a slow down, but however negative the predictions are, the truth is that people will still need to shop in the malls. They will still need to buy clothes, supplies and grocery, even gifts for family and friends. I agree that they might be spending a bit less than normal. The fact that customers may be controlling their spending, makes it more imperative that retailers compete for their share of the wallet.

Even in bad economic times, there are still sales to made, people still buy. So, what can a retailer do to ensure they have the very best possible chance for success? The answer to getting your share of the customer’s wallet is to be better than the others. Whatever it is you are selling, do it better than the others. Retailers don’t have to beat the economy, they just have to do what they do better than the others in the same business.

Getting Back To Basics

First of all, the merchandising team must make sure the purchase of the merchandise is done at the right price and quantity. Allocation of the merchandise, and delivery of inventory must arrive at the retail location in the right quantity, at the right time.

The retail store management must make the shopping experience pleasant for the customers. Have friendly, smiling, knowledgeable, well trained staff available to serve the customers; and have enough of them. Have customer friendly policies and procedures in place. Maintain a clean and well organized store. Have clear signage. Respect for your customers for shopping at your retail store.

Deliver what you promise to do and do it better than every other retailer out there. Control your expenses, while ensuring you can provide your customers with the service and the pleasant shopping experience that they deserve.

In the final analysis, every component of the retail organization have to execute their game plan during these times. Merchandising, Warehouse, Logistics, Loss Prevention, Marketing, Finance, Customer Service and Retail store must deliver and do it better than the competition if you want to win. The customers deserve better, and with disposable incomes diminishing, retailers must deliver that shopping experience.

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Winning At Retailing

January 9, 2009 | Leave a Comment

Winning At Retail:
Developing a Sustained Model for Retail Success
By Willard N. Ander, Neil Z. Stern

For those who have not read this book, you can see a sneak preview in pdf format right here.

Here are some reviewers have to say about this book:
“In a difficult retail environment, this book provides crucial guidance for staying on top of your competition-by taking the customer seriously and leveraging your strengths to provide experiences that increase customer loyalty. Will Ander and Neil Stern elegantly argue that you can’t always be the biggest, fastest, and trendiest place on the block, but it takes only one of these ‘Ests’ to be a category leader. Businesses big and small can benefit from the carefully distilled lessons in this book.”
- Bernd Schmitt, Professor of Marketing, Columbia Business School and author of Customer Experience Management

“Winning at Retail offers the most effective strategies available for retailers. At McDonald’s, the ‘Quick-EST’ model is crucial, because being close and convenient to where our customers live, work, and shop helps us create maximum value. If you want to harness your company’s strengths to become a leader in your category–and stay in tune with what your customers want-this is the book for you.”
- Jim Rand, Senior Vice President of Business Development, McDonald’s Corporation

“Winning at Retail provides a thoughtful approach to retail differentiation. Ander and Stern warn of the ‘treacherous middle’ into which retailers too easily drift. They inspire us to avoid this peril through case studies of retailers who have assumed leadership through courageous choice.”
- Robert L. Price, Senior Vice President and Chief Marketing Officer, Wawa

For more information about the book: Book Store | Page 3

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Factors Of Retail Success

January 8, 2009 | Leave a Comment


In 2008, retailers in many parts of the world faced many difficult and challenging issues. From the impact of high oil prices, failures of many retailers and business. In view of the current economic slowdown, it is even more essential to know how the market is moving and to know how your company stands. Recognizing the factors that contribute to your retail success is part of what retail management is about.

  • Key Performance Indicators
  • Market Intelligence
  • Strategic Management

Know Your Key Performance Indicators
Knowing your Key Performance Indicators (KPI) is the identification and selection of the critical metrics in your business for correct balanced scorecard implementation. From the strategic level to the operations level, these are the numbers that tell us how we are performing. Retail management on the front lines is knowing your Key Performance Indicators, and using that data to execute your retail marketing and operational plans.

Market Intelligence
Market intelligence informs us what direction the market trends are moving, what the competitors actions are likely to be, what new regulatory or industrial regulations are likely to be implemented. All of which affects the retail operation from strategic level to the operations in the frontlines.

Knowing how the retail environment is changing enables us to get the jump on our competition, to anticipate what our customers expect and demand of us. Intelligence enables us to implement changes that either reduce the negative impact of current market or allows us to reduce wastage on the expenditure budget. When you get down to it, this is how we earn our pay, by anticapting, preparing for and meeting the changing market demands.

Strategic Management
Strategic management and leadership is how we develop strategic imperatives to drive the company’s growth and take us in the direction to secure our future. It is through competent leadership that enables a company to focus on a performance based culture, develop retail concepts, and implement best practices in the industry.

Retail business owners and retail managers must take the initiative in acquiring cutting edge information, strategies and leadership, marketing tactics and the advanced concepts in managing a successful retail operation.

Have you read this post? Management Competes, Not Products

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High Impact Sales

November 11, 2008 | Leave a Comment

I just found a good product that will shows you how to turn your inventory into cashflow. This is aimed at independent retailers who have to compete big box stores, or you have inventory which you need to sell off. Perhaps you have hit a plateau and need to create a high impact sales event. Or perhaps you might just want to exit your business or start another.

Written by Travis W. Walker, retail marketing and liquidation sale expert. His system will give you a professional planned, high impact sales event to move your inventory. Turning your inventory into cash which you can then reinvest back to your business. It’s called Winning Retail™, and it’s based around a single paradigm he calls the “Retail Marketing Triangle”, which consists of Marketing, Merchandising, and Salesmanship.

This system works to create high impact sales to reduce your inventory or as a store closing sale. His product is called Liquidations Secrets Revealed.

In his own words, “the first thing to clarify about this powerful marketing system I’ve created for retailers is that it is designed specifically for high impact retail liquidation Sales, however, the principles in the system can, and should, be used on a daily basis in your store and for smaller, short term sales, and even daily business.”

The Liquidation Secrets™ system are designed for storefront retailers that have customers walking through their doors, shopping for the merchandise, and taking it to a cash register to make a purchase.

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Understanding Your Customers Lifestyle

November 4, 2008 | Leave a Comment



The most important factor that contributes to your successful retail business is customer loyalty. To cultivate customer loyalty, you need to have a strong understanding of who they are and what they stand for. The retailer must ensure the quality of the merchandise they sell, and most important, how those merchandise meets the needs of today’s customers’ lifestyle.

Understanding your customers isn’t about knowing how much they spend in your store, where they come from. It is about understanding your customers’ lifestyle, and knowing they are constantly looking for products that make a difference in their life. Whether it is for their health, beauty, or whether it is for their families, their workplace or social life. That is how you build customer loyalty, by being part of their lifestyle.

A retailer has to realize that the success of their business depends on how they contribute to their customer’s lifestyle in terms of value, and quality merchandise. Every product range the retailer sells should aspire to enrich the lifestyle of their customers, promote the best in health, quality and safety, plus be gentle to the environment.

Today’s retailers should promote innovative products that make your everyday life better, at affordable prices and without harm to the environment. Retailing should simply be about delighting your customers with good products everyday.

Develop your own Unique Selling Proposition.

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Stay Longer Buy More

September 30, 2008 | 2 Comments


Is there a direct relationship between the length of time shoppers spend in your retail store and the money they spend?

Most retailers would agree that the longer the shopper browse in their retail store, the more they tend to spend. It figures that shoppers will look at a wider range of your merchandise, your in-store promotions and your impulse items on display. Psychologically, when a person is looking at all these colorful and brightly packaged merchandise, he or she is more likely to buy more. When shoppers enter your retail store, they have already decided to they will spend money. They are already in a buying mood, and their resistance to your store promotions are eased.

If the above is true, do retailers know how much time their customers spend in their store? Will they spend more time in your store if your store is well designed with plenty of aisle space? Are shoppers more likely to buy more if they speak to a sales associate?

What can you as a retailer do to maximize the time shoppers spend in your store, and give them enough room to wander around?

Retail store layout is everything. Merchandise lines have to be in a layout that flows together seamlessly, and category of merchandise should be related and suited to the buying patterns of your customers. Layout of promotions and promotion areas should be clearly designed and attractively highlighted.

Friendly service is the name of the game. I have had so many customers asking me about the products, the price, the location, even the small print on the packaging. Our people should always be the ones to initiate contact with the customers. It costs us nothing to greet and smile.

Shoppers need space to move around. Aisle need to be wide enough for traffic, and wide enough that kids sitting in trolleys cannot grab merchandise off the shelves. Most importantly, shoppers should have enough space to move around other shoppers with loaded trolleys.

Fast check-out service. Shopping is fun for the family, paying for it isn’t so much fun. Reduce the time spent at the check-out, and your shoppers will feel better about coming to your retail store. It’s no fun waiting in line for 10 minutes with the kids in tow.

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Store Lighting

September 3, 2008 | Leave a Comment

It annoys me whenever I see retailers who have no idea what store lighting is about. Last weekend, I was in the largest and newest shopping mall in my city, and it was evident that some retail outlets were clueless about store lighting. Take a boutique store for ladies garments, I saw. Firstly, there were areas of the store that was under-lit. Secondly, the display rack for ladies fashion was placed under the darkest part of the aisle. It’s no wonder the store was empty of customers.

Foremost, store lighting is used to create the mood. Depending on what you sell, the lighting could be dimmed, bright or focused. It could be of any color provided that it matches what you say your store is. Properly designed lighting soothes or excite the customers, it also serves to highlight sections of your store and merchandise. Used in conjunction with your feature wall or display, this creates a very strong statement about you. Use lighting to create focal points, and place your merchandise there. By doing this, you highlight your merchandise, and you are communicating with your target customers.

Lastly, provide enough illumination for your people to work. It makes for a better working environment. A dimly lit store will just sap the energy out of you, use lighting to create a sense of energy. By doing so, you draw customers into your store, you highlight your merchandise, and you will have energetic people working with you.

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Store Identity and Concept

September 2, 2008 | Leave a Comment

Every retailer must have their own identity, their own concept of retail marketing. It has to make sense to the customer the moment he or she walks into your store. The store identity you create for your store should span across the board. From your signage, lighting, brochures and posters, uniforms, customer service, products should speak very clearly to your customers; this is who we are, this is how we serve you better. With integrity, with our attention to details, our outstanding customer service, our fair price, our unfailing value for money products.

If your store has been around for some time, you might need to freshen it up or do a re-launch. Change is inevitable, and will eat into your operating profits. Change doesn’t guarantee you will win, but standing still is a sure way to lose.

We have to continuously evolve to serve our customers better. It means being market savvy and knowing the trends and directions of our customers. This allows us to develop effective and innovative solutions that will fulfill our customers’ demand. Without thorough research and planning, we wouldn’t know where to start. In our efforts to further improve and increase profitability and customer satisfaction, the simple solution is the best. This should be the fastest, most cost-effective change that our associates can implement. It’s has to be real, not a gimmick. Our customers have to be able to feel the difference. Equally important, the management has to commit and provide the leadership to ensure that the change is sustained.

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