1. Store administration
• Components of store administration-1- Management of
premises-floor space management-,2-managing store
inventories, cash receipts and displays,3-customer service and
crm,4-managing promotions, events etc
• Managing premises- a) working hrs- duration of business hrs,
opening , closing responsibilities, e.g. lifestyle stores can open
late and grocery, supermarkets need to open early, free
standing stores can operate choice hrs while mall stores fallow
organized hrs. b) maintenance and cleanliness store façade
and display windows, c) managing required permissions and
licenses d) time keeping of store staff, d) space thru Plano
grams answering questions-1-what items, categories, and
departments shd b carried,2-how much of each item shd b
carried,3-how much space merchandise shd take, 4-where shd
the merchandise b located.
• Managing inventory and display- store staff manage inventory
and so to enable them to work efficiently systems and
procedures for handling merchandise at store level need 2b
documented and manualised.
2. • cont--Involving receiving , in warding as per colors ,style,
size, checking accompanying documents received from
RDC/hubs ,,detecting discrepancies, .Hand scanners r used 2
update stocks, correct display of merchandise
• Managing receipts- defining manner in which store is going to
manage receipt of payments against sale, cash or credit
cards, or both, or cheques, debit cards, co-branded cards.
• Managing customer service- Top management involved in this
activity as every person working in store is involved to provide
comfortable pleasant shopping experience, and so 2 b a top-
down approach. Long q for payments irritates after long
shopping hrs in store, so each staff is trained to handle cash
counters, express check outs for small buys also helps, fast
lanes for billing during festival shopping rush.
• Managing promotions, events, alliances and partnerships.
Hiring additional staff or using in shifts during campaigns.
POP areas, check out areas, walls for extra stock and display
3. • Managing store staff-recruitment and selection, store
manager need to undertake a job analysis, prepare a job
descriptions, shortlist potential candidates and describe
recruitment and selection process fro perspective of people
perusing to make retail careers. a) Job description-effective
sales look, reporting to whom, authorities etc,b) locating-
referrals ,look beyond retail industry,education,previous
experience ,c) on the job trainings, d) orientations e)
motivating with right leadership styles f) maintaining morale,
g) evaluation-performance appraisals, Intrinsic and extrinsic
rewards, compensations
• Managing costs- thru,1-labor scheduling i.e. determining the
no of employees assigned to each area of the store,-
multiple-shifts or part time, 2-store maintenance-exterior
facilities like parking,entranse etc and interior area –walls
,floorings, ceilings, displays and signs.3-energy –lighting
,heating, cooling, use more daylight, sky light,solar,sensors
to conserve water etc 4-Inventory losses-employee
thefts,shoplifting,mistakes,iaccurate records, shrinkage
losses-difference between recorded and actual, prevent it
thru-store design, employee trainings, security measures
4. • Managing customer services -various services offered by
retailers-delivery, parking, repairs, extended hrs, gift
wrappings, child care, credit, rest rooms, shopping carts,
atm terminals etc, Approaches- a) customizations
tailoring service to meet individual needs, b)
standardization of services, c) use Gap model for
improvements-knowledge gap-retailers perception and
customer expectation, delivery gaps, communication
gaps, thru research, d) set commitment standards thru
use of technology or use of specialized service providers
e) resolve problems quickly, speak customer language.
• Managing customer relationships- a business philosophy
and a set of strategies, programs, and systems that
focus on identifying and building loyalty with retailers
most valued customers, what is loyalty-patronage,
commitments, Need to build database, gather
information, offering frequent shopper programs, loyalty
programs, RFM analysis(recency ,frequency, monetary),
calculate LTV, develop programs-customer retention,
personalization
5. Customer service (CS) and CRM in retailing
• Listening to customer has a special relevance in retail as being
part of service sector and also in today’s buyers market.
• Today’s consumer has become savvy shopper with eye on
price + service + convenience. shop somewhere else if store
falls short in expectations. Trend of Satisfaction 2 delight.
• C.S. deals with 1-back end activities –measurements,
standards, quality control process, personal responsibilities,
and all post transaction activities. 2-front office activities -Direct
interaction with customer- role of a sales person, their
communication skills, product knowledge.
• Concept of C.S.- Def- “customer service is a task, other than
proactive selling, that involves interactions with customers in
person or by telecommunications , mail or automated process.
It is designed ,performed and communicated with two goals in
mind-1-operational productivity ,2-customer satisfaction.”
• CS includes all functions and activities directed to satisfy C and
build for life with continuity of quality standards of CS.
6. • Customer service- is to meet performance standards to meet
needs of C ,whereas C –satisfaction is how C measures
performance so getting C feedback is key.
• Importance of CS in retail-Due to intense competition in both
either small or big, retail stores r concerned with image directly
influence by services provided .WOM of satisfied C found very
effective at times more than advt. negative wom results disaster.
• Level of CS depends on products sold, type of outlet. To decide
level of cs understanding of target audience, needs , lifestyles
required.
• In specialty stores jewelry. fashions, furniture concept of cs
different from fmcg/ fmcd o.r. stores. High price items demands
individual attention, counseling and advise. Multi brand outlets
also needs more attention.
• CS as part of retail strategy-Cs as differentiating in retail mktg
mix. Elements like products , price quality can b touched and felt
in store but image factors like level of service, ambience,
provides experience. Creation and enhancement of value and
LTV for C. Steps -1- value creation, 2- value extension, 3-value
extension. Starting enhancing service better than competitors,
next add benefits /offering total solution and last step provide
shopping experience.
7. • How to use CS as unique proposition in retail-?By creating
distinctive service, such as-1- Identify key customers and
listen and respond them, 2-define superior service and
establish service strategy,3-set standard and measure
performance.4-select, train and empower employees to
work for the customer,5- recognize and reward
accomplishments.1st step toward creating a superior service
org is to define the business the org is in. If definition is
narrow - termed as “Mktg -Myopia”
1. Identify key customers, listening and responding to them-
retailer can’t do everything for everybody and expectations
of C r also varied. So identification of key C and understand
their buying habits and occasions for purchase and then
service them accordingly. change in needs and lifestyles
changes expectations . Needs of youth differ with middle-
aged .Also rise in income level leads to change in
expectations so to b tracked for better planning and
preempt competition. listening to comments, complaints
,suggestions r also very powerful tool for product and
introducing new service.
8. 2-define superior service and establish a service strategy, business
objective. E.g. MacDonald's
3-set standard and measure performance.30 min delivery of pizza
as measurable standard, targets vs. achievements. leads to
delight
4-Select , train and empower employees to work with C.,
dedicated ,communication and product skills ,empowering to
decide, faith, responsibility, limit of authorities etc
5-recognise and reward accomplishments-motivation thru praise,
sales persons
Measuring Gaps in service- CS is largely perception and good ,
better, best is relative to expectations of C, satisfaction
,dissatisfactions r to b understood thru gaps. Expected service
levels gets affected with past experience, personal needs and
wom communication. Received is actual service obtained by C.
Gap in what you advt and one provided during pre-transaction,
during and post transactions. Gaps -1- knowledge gap,-what co
thinks and what is expected and really wanted by C ,2-Standard
gap-service standards to b based on expectations of C, 3-
Delivery gap- quality for service delivery and actual delivered.
Differs from employee to employee, adequate training helps.4-
communication gap -what informed and actual.
9. • Gathering customer information and enhancing loyalty.- once
main objective delivery of value ,quality etc is decided
understanding cbb also needed to tailor service and products.
• Consumer research is needed besides other methods like
loyalty to increase repeats and retain C. f.f.p. of airlines was
popular.
• Loyalty programs also became popular due to data
warehousing and mining.
• Loyalty mktg is defined as-The business process of identifying,
maintaining and increasing the yield from best customers thru
interactive, value added relationships.
• Loyalty strategies -1-pull- mass products so brand association
of retailers. 2-pure loyalty-meant for existing customer who
focus on product and service offer.3- push- products
interchangeable with competitors, visibility and accessibility is
crucial.4- purchase loyalty strategies- introducing purchase
cards common to more outlets, e.g. petroleum products 5-
purge loyalty strategy- aimed at purging all unnecessary costs
and offer at lowest possible price, no frill, edlp stores.
10. • Data warehouses help in studying customer patterns, buying
trends, ad behaviors and provide a tremendous amount of
information to MM in store administration.
• In categories where service and products at par CRM and
related loyalty programs play the role of differentiator. Blend of
recognition and rewards offers thru loyalty programs which
encourages C, to b identified. Once such C joins loyalty
programs Identity no. allows to b recognized.
• Permission based ,invited, loyalty programs helps to create a
dialogue with C, provides learning's to retailers thru transaction
data.
• Characteristics of a good loyalty program in retail.
• A well conceived and executed loyalty program cab b the key
to turning invisible shoppers into profitable customers. 1-
visibility- retailers website, catalogues can feature program
prominently. Cross promotional materials shd b present and
easily obtainable.2-simplicity- easy to use in all channels,
minimize fine prints,3- value-rewards and recognition to b
balanced and same shd b credited regards less C’s preference
for shopping in some other place.4-trust-Keep promise , don’t
give meaningless offers like may b available to all and not to
loyal alone.
11. • CRM in retail- objectives- 1- secure the share of mkt, mind
and wallet, thru strategic use as a tool for creating and servicing
C for life.2-use of technology to deal with Customers including
suppliers, etc.
• CRM unites R. M strategies and ICT to create profitable, long
term relationship with C, stakeholders.
• Retailers can create products and services to suit the needs of
C to benefit C as fallows
C- needs Retailer usually CRM benefits by
provides enabling
1-Product choice- Range selection tailored range
2-acess--- Channel choice Consistent experi
3-support--- Information Enhances service
4-Ind- treatment-- Customer service 1 to 1 relationship
5-value--- Scale efficiencies Customized value
12. • CRM implementation in retail start with classifying Customer
segments into-lower value ,grow-able and most valuable. then
develop different mktg and communication platforms for each
segments. (fig. for enhancing value thru CRM).
• Personal selling in retail -Face of org to most C-is sales person
–if happy and satisfied employee can impact largely in loss
/gain of C for store.
• Companies loose in %, died -1, moved way-3,influenced by
friends-5, lures away by competition -9, dissatisfied-14 and
turned way by rude/indifferent employee-68
• Role of a sales person changes with type of retail org and
product to b sold. In convenience goods like food. Grocery
,drugs ,impulse items etc, as purchased frequently, sales
person plays limited role, In shopping goods where C goes
around before buying, sales person needs good background,
product knowledge etc to assist C, In specialty goods selling
most difficult, high cost- high involvement needs experienced
sales person. national brands in specialty plays a good role like
Tanishq,
13. • Customer confidence and sales person ways sales person
represents in retail business-1- source of information, 2- fashion
and value counselor, 3-PR enabler,4- turning over or selling
inventory, 5-as a seller helps in decision making to C,6-
communicates feedback to store management.
• Retail selling process- A continuous process for delighting C
thru researching c preferences, value propositions, setting
,expanding retail store network, supply chains, filling with
merchandise, and getting C to buy.
• sales person is a key element in process- so needs to acquire
competencies in 1-product knowledge-features-benefits
besides competitors products, brands, location of merchandise
etc, 2-studying C –listen while C decide preferences, quantity,
ask questions to C to get complete picture of C’s wants,3-
approching to C- positive interactions, jumping by ignoring
previous C,4-presenting merchandise stress on benefits
,specific features, 5-overcomming resistance-welcome real
objections, recognize rights of C to know and raise
objections,6- suggestive selling- demonstrating displaying,7-
closing sales- getting C commitment to purchase.