SERVICING THE RETAIL INDUSTRY

By Vipin v p MBA-IB Roll no:28

Contents
Measuring the gaps in service Gathering customer information and enhancing loyalty Encouraging loyalty-loyalty cards Customer relationship management CRM in Retail Role of personal selling Retail selling process

Measuring the gaps in service

Customer service is largely a function of perception , Customer expectations and the service actually provided. If the customer expects a certain level of service and the service provided by the retailer fails to match the customers expectations the service would be perceived as poor.

Model of service quality

Knowledge Gap :Difference between what the customers expect of a service and what the management believes about the consumers expectations. E.g: super market Regular customer research, interaction with retail managers and scanning the customer complaints are help to reduce the Knowledge gap Standards Gap: The difference between the management perceives customers to expect and the quality specifications set for service delivery. Service standards need to be based on customers expectations. E.g: Dominos Pizza service

Delivery Gap: Difference between the quality specifications set for service delivery and the actual quality of service delivery. The level of service provided would vary from employee to employee and in the same employee for a long time. Clarity of role that is to be done by employee and adequate training enable an employee to serve the customer in a efficient manner Communication Gap: Difference between the service the firm promises to deliver through its external communications and the service that it actually delivers. E.g: advertising or sales promotions

Gathering customer information and enhancing loyalty

Retailer has to deliver consistent value and quality to the consumer. Under standing consumer needs and buying behavior Tool: customer loyalty card Key methods: data warehousing, data mining and customer relationship management

Encouraging loyalty-Loyalty cards

Customer loyalty : defined as a existing when a customer chooses to shop in only one store or retail chain for a specific product or group of products. It is a condition of strong involvement in the repurchase ,or reuse, of a product or brand.

Characteristics of a good customer loyalty programme

Visibility: A loyalty programme must be highly visible regardless of the channel. Simplicity: To succeed, a loyalty programme must be easy to use in all channels. Value: The balance of reward and recognition must establish value in the customers mind and motivate incremental purchases Trust: Keep the promises made by the loyalty programme.

Customer relationship management(CRM)

CRM is a business strategy to select and manage customers to optimize long term value. CRM refers to the activities an enterprise performs to identify, select, acquire, develop, and retain increasingly loyal and profitable customers. CRM as a business philosophy and set of strategies, programmes, and systems that focuses on identifying and building loyalty with a retailers profitable customers. CRM is a tool for servicing the consumer. CRM is a strategic approach that is concerned with creating improved share holder value through the development of appropriate relationships with key customers and customer segments. CRM is a process of collecting information about the customers and aligning and remodeling the organizations strategy to meet customers demand.

CRM in Retail
Customer needs Retailer traditionally provides CRM benefits customer by enabling Range selection Channel choice information customer service Tailored range Consistent experience Enhanced service 1:1 relationship

Product choice Access Support Individual Treatment Value

Scale efficiencies

Customer defined value

How CRM benefits the Retailer

Enhancing customer value through CRM

Number of custom ers Value Per custo mer

Instore Pos
Advertising merchandising Targeted Directed mail Added value services

Tailored, cross learning based relationship

Lower value Segments

Growable segments

Most valuable segments

Role of personal selling

A sales person represents the business to the customer in following ways.
As a source of information , i.e. being knowledgeable about the stores merchandise and policies As a fashion and value counselor who assists the customer with value comparisons with items in the store or possibly competing brands. As a public relations representative, the sales person represents the business to the pubic or to customers. A mover of stock who assists in turning over or selling the inventory which is the primary objective of the business As a seller who assists the customer in making a decision to purchase the stores merchandise

Retail selling process

1. Acquiring Product/Merchandise Knowledge 2. Studying the Customer 3. Approaching the Customer 4. Presenting the merchandise 5. Overcoming Resistance 6. Suggestive Selling 7. Closing the Sale

Thank You