Customer Service.pdf

CUSTOMER SERVICE' AND SALES What Is Retail? Retail is the process of selling products and/or services to customers to earn a profit. A retailer is defined as a business or person that sells products and/or services to customers. Each retailer selects merchandise or services based on the needs of...

CUSTOMER SERVICE' AND SALES What Is Retail? Retail is the process of selling products and/or services to customers to earn a profit. A retailer is defined as a business or person that sells products and/or services to customers. Each retailer selects merchandise or services based on the needs of a specific store, region, or community. Customers, or shoppers, are people who purchase goods or services from a business. Products, also called merchandise, are physical goods that are bought and sold. Examples of products include food, clothing and household items. Services are intangible; they can't be physically owned by the customer. Examples of services include lawn mowing, hair care services, personal training, ride sharing and video streaming. Retailers sell products and services in stores, online, and sometimes directly via individuals, such as in-home consultants. In a store, the retail team keeps the products in good condition, displays the merchandise, shows customers how to use items and sometimes provides services. Some optional services for merchandise include package wrapping, delivery, installation, credit and warranties. The goal of retailing is to provide customers with the merchandise and services they want-when, where, and how they want to purchase them. '.C12O19NRF FOUNDATION. ALL RIGHTS RESERVED. RETAIL INDUSTRY -------------l OVERVIEW • EXERCISE 1 How Many Retailers Can You Name? 1. Take one minute to list as many product retailers as you can. You Called Me What? Different retailers use different titles to refer to employees that are in essentially the same role. 2. Now take one minute to list as many service retailers as you can. 3. Take one more minute to write down the names of three local retailers in your area. For each one, describe the products and/or services they offer. For example, until you are hired, you may not know that a sales associate at one retailer may be called a sales professional, team member, sales lead, salesperson or sales representative at another retailer. Some retailers even use category-specific terms to describe employee roles, such as Nike, which refers to employees as Athletes. And these are just some of the titles for people who interact directly with customers. There are many, many more to describe all of the various positions in the retail industry. Because of the variety in position titles, multiple terms· are used to describe entry-level roles in sales and customer service throughout this training. @2019 NRF FOUNDATION. ALL RIGHTS RESERVED. CUSTOMER SERVIC-t: AND SALES -l-.-.-------- • EXERCtSE 2 Begin Your Reta.iiProfile: Products and Services Throughout this course, you'll build your own retail profile, noting your specific interests and skills. By the end of the course, you'll have a profile that can help you identify the type of retail environment you'd like to work in and the type of work you'd like to do-plus you'll have a list of skills and experiences that you can use to help you get the job you want! Use the My Retail Profile template provided by your instructor (or copy the one from the end of this book) and start to build your profile by answering the following questions: l. Based on first impressions, are you more interested in a business that sells products or services? Why? 2. Which type of products and services might interest you in a job? Distribution Channels Retailers are a link in the distribution channel, connecting customers with the products and services they want and need to purchase. There are multiple ways to make this connection in the retail industry today. The channel often begins with a manufacturer that produces finished products, such as toys or frozen hamburger patties. A wholesaler buys large quantities of these products directly from the manufacturer and then sells smaller amounts to retailers. Services are generally provided either directly between the retailer and the customer, like a Nordstrom tailor, or are facilitated by the retailer for a third party, like The Home Depot connecting customers to a contract painter. However, the distribution channel is not the same for every retailer or every retail transaction. There are multiple ways that products can get from the manufacturer to the customer. Product Distribution Channel Options m MANUFACTURER WHOLESALER RETAILER CUSTOMER In action: Chobani manufactures Greek yogurt products. A wholesaler, C&S Wholesale Grocers, Inc., purchases many truckloads of Chobani yogurt every year. Grocery retailers purchase the yogurt from C&S in case quantities and consumers buy it in their local grocery stores. ©2019 NRF FOUNDATION. ALL RIGHTS RESERVED. RETAIL INDUSTRY OVERVIEW m MANUFACTURER RETAILER DISTRIBUTION CENTER RETAILER CUSTOMER In action: Procter & Gamble manufactures Tide laundry detergent. Walmart purchases truckloads of Tide directly from the manufacturer-that is, from Procter & Gamble-and uses its own distribution centers to temporarily warehouse the merchandise. Then it is distributed to retail stores, as needed, for customers to purchase. RETAILER (ONLINE ORDER) MANUFACTURER CUSTOMER In action: For some online retail purchases, ordered merchandise is shipped from the manufacturer directly to the customer after the order is purchased. A customer who buys furniture from a retailer may receive it directly from the manufacturer. @2019 NRF FOUNDATION. ALL RIGHTS RESERVED. •·- ------------------- CUSTOMER ----------·--· SERVICE AND SALES Retail Reimagined Today's retailers want to be where the customer is in both physical and digital environments. In order to do that, they are reimagining what they do and how they do it. Retailers are constantly evolving in order to make shopping more convenient and fun for customers. This evolution includes enhancing the shopping experience by combining technology with human interaction to improve price, selection and service. ' The blank canvas for painting the new face of retail holds endless possibilities, and each retailer is bringing its own paint and brushes to the task. The entire retail industry is innovating in multiple ways to meet customers' needs and create a vibrant retail ecosystem. @2019 NRF FOUNDATION. ALL RIGHTS RESERVED. RETAIL INDUSTRY _______ OVERVIEW ______,:~ ~ A retail ecosystem is an interconnected system of approaches for meeting the goal of retailing, which is to provide customers with the merchandise and services they want-when, where and how they want to experience and purchase them. A retailer's reimagined ecosystem may offer a network of physical store formats, direct or phone sales options, ecommerce sites, apps, targeted marketing, experiences, services, amenities and interactions. The ecosystem may be a multi- or omnichannel environment. Retail is thriving through the growth of ecommerce and physical store channels. On a global scale, ecommerce is anticipated to be the largest retail cl:'lannel in the world by 2021. In the United States, ecommerce: • 0 Grew 300% between 2000 and 2018. Sales are estimated to reach $690 billion by 2020. But even though online shopping is on the rise, physical store locations are still very For example, customers at Nordstrom who shop both online and in stores spend an more than single-channel shoppers, contributing to sales and customer satisfaction. of retail sales occur in physical stores in the U.S. and for every store that closes, two Meeting the needs of customers with an ever-changing the retail industry dynamic and exciting! t ©2019 NRF FOUNDATION. ALL RIGHTS RESERVED. important! average of 5 times Nfnety percent new stores open. variety of channels and choices keeps CUSTOMER SERVIOE AND SALES Multichannel and Omnichannel Retailing Multi- and omnichannel environments provide practical and convenient to interact with retailers in multiple ways. options for consumers Multichannel retailing offers customers the opportunity to interact with the multiple options in their ecosystem. The retailer's multiple chann~ls are available for consumers to use, but are not necessarily systemically connected to each other. For example, a multichannel retailer may carry specific merchandise in their physical stores and offer different goods via ecommerce, two distinct channels. m ONLINE STORE PHYSICAL STORE CATALOG SOCIAL MEDIA RETAILER APP On,nichannel retailing is similar to multichannel retailing in that customers have the opportunity to interact with all of the available channels in the retail ecosystem. However, omnichannel retailing integrates the channels to create a seamless consumer experience through the use of technology. For example, if a customer's previous purchase indicates that they are likely to be interested in the latest Nike Air VaporMax shoes in a women's size 9, the Nike app pushes a notification to the customer when these are available. The happy customer completes the purchase in less than a minute right in the app and the shoes are shipped at no charge directly to her home. CATALOG SOCIAL MEDIA PHYSICAL STORE ONLINE STORE RETAILER ©2019 NRF FOUNDATION. ALL RIGHTS RESERVED. APP RETAIL INDUSTRY OVERVIEW ---------'- Benefits of Omnichannel Retailing The use of technology is transforming the industry-simplifying and retailers. Consider these scenarios: purchases for both customers • An employee with a mobile device greets a customer, provides great service to help the customer find what they're looking for and processes the payment on the spot, so the customer never waits in line. • Retailers enable purchase history tracking so customers can easily buy items again. • A customer uses an app to locate an item in the store and then scans the product code to find specific information about the item. • When an item is out of stock in a store, a sales associate systemically in the company and ships it directly to the customer. • A customer purchases items using an app or website. Behind the scenes, omnichannel systems kick in to provide merchandise fulfillment options such as: holding an item for pickup at the retailer, shipping an item to a customer's preferred location (such as their home), preparing food items for pickup, or delivering an order the same day. • A customer views an item in a catalog, then marks it as a "favorite" on the retailer's website. Later, the product is offered to them via targeted social media advertising. @2019 NRF FOUNDATION. ALL RIGHTS RESERVED. locates the item anywhere CUSTOMER SERVI.CE AND SALES l----------• Types of Retail Ownership Independent Typically a single store or a small, regional chain, these retailers are able to tailor their offerings to meet the needs of local customers. Examples: "Mom-and-Pop" stores, Wade's Foods. CJAlna.zingbat true 95% of retailers havejustone location! Corporation A business owned by shareholders through publicly traded stock. These retailers usually have centralized decision-making for their multiple store locations. Examples: Walmart, Kroger, Target. CJHow nuteh? A~of20l9, one share ofltJnazonstoek tradellfor over$2000I Private Company Even though ownership is typically limited to a single or small number of owner investors, private businesses can be large companies with many retail locations and centralized business operations. Examples: Albertsons, Ashley Stewart, Belk. CJ Meijer has 242 retail stvres .an.d200gas stations, and employs over 7ti,OOOpeople! The Meijer family has owned the business since 1934, 85 years and counting! Franchise A license is granted to another entity to retail a company's products or services in a particular area; consistency in the customer experience is critical. Examples: KFC, Pizza Hut, Edible Arrangements. ft v-' ©2019 Entrepreneurs wanted! A Chester's Chickenfranclzis.e has a $8,500 franchlsefee and requires an initial investment of $8,700 to $800,000 depending on your plansfor the business! NRF FOUNDATION. ALL RIGHTS RESERVED. RETAIL INDUSTRY OVERVIEW EXERCISE 4 l\ty Retail Profile: My Ideal Retail Job Open up your My Retail Profile and take the next three minutes to write down your thoughts about: 1. Which types of products and/or services might interest you in a job? 2. What channels (for example: stores, door-to-door would you enjoy working in? Why? sales, customer service over the phone) 3. Which retail ownership model appeals to you? Why? @2019 NRF FOUNDATION. ALL RIGHTS RESERVED. CUSTOMER SER\I.IICE AND SALES •f---- The Ever-Changing Future of Retail The retail industry is fast-paced ways to serve customers. and exciting because it is always changing with new and innovative From the first online shopping order in 1994 to the first mobile payment in 1997 to the introduction of omnichannel retailing in 2013-retail has changed significantly in the past 25 years and the disruption will continue! As technology continues to change, so does retail. Look what's happening already: • Online stores open physical locations and vice versa to increase opportunities customer needs. • Artificial • Since transactions can happen anywhere, retail locations focus on offering the customer brand experiences, rather than just products and/or services. • Receipts are emailed to customers to save paper and reduce waste. ©2019 intelligence NRF FOUNDATION. ALL to satisfy (Al) enables VC?ice-activated ordering. RIGHTS RESERVED. RETAIL INDUSTRY ---- OVERVIEW • Subscription ecommerce customers receive curated merchandise shipped directly to them on a regular basis. • Virtual environments, such as dressing rooms and home planners, enable customers to see what products will look like on them or in their house. • Robots perform customer service, logistics and operational efficiency tasks in stores. Customers who don't want to browse in stores can receive customized, personalized service to select their items, and then have the purchased items sent to their home or to a convenient pickup location. Retail Innovation - You're in Charge! Take the next five minutes to work with your assigned team to design a future change for the retail industry, enhancing customer service or sales, or providing a new experience. Your idea doesn't need to be possible using today's systems; new technologies are always being developed, so be creative! '.92019 NRF FOUNDATION. ALL RIGHTS RESERVED. 1 1 l, r CUSTOMER SERVIQ:E AND SALES The Economic Impact of Retail Retail is one of America's largest industries, with about 3.8 million retailers approaching $4 trillion in total sales, and continued growth expected. The retail industry is the leading indicator of job growth, consumer spending, sales and inventory. Retail Drives the U.S. Economy: Retailers support one in four U.S. jobs and at least 20% of jobs in every state, directly or indirectly supporting 42 million employees across the nation. The retail industry is the largest employer of teenagers, hiring over half of all working teens. There are over 1.5 million U.S. employees at Walmart alone! Q lletail supports 1 in 4 Americanjobs! What is the impact of retail in your state? Check out the map below and chart on the next page to learn about percent of state retail employment. States' Retail Employment % of State Total Jobs N:-1 -26.4% MA 21.8% CT 21.2% HI 23.8% @2019 NRF FOUNDATION. ALL RIGHTS RESERVED. CUSTOMER Retail helps communities: In addition to employment and retail employees benefit local communities by: • SERVICE AND SALES and commerce benefits, retailers Volunteering. Joining civic organizations, such as the Chamber of Commerce and Better Business Bureau. Providing community education. Sponsoring events, clubs and/or projects . Going green with environmental efforts like recycling, water conservation, using renewable energy and reducing food waste. Millions of meals are provided each year by retailers who donate discontinued items, product samples and other wholesome food items to local food banks. What are some of the ways retailers in your community get involved? Retail is global: Nearly 70% of the top 250 U.S. retailers have stores, ecommerce or support functions in countries around the world. In addition, retail is a driver of employment and commerce in other countries. For example, Alibaba, China's largest online retailer, has over 66,000 full-time employees. ©2019 NRF FOUNDATION. ALL RIGHTS RESERVED.