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Customer service in retail

12/30/2012

Swapna Pradhan

The Concept of Customer Service


Customer service is a task, other than proactive selling, that involves interactions with customers in person or by telecommunications, mail or automated processes. It is designed, performed and communicated with two goals in mind: operational productivity and customer satisfaction
Source: Designing & Managing the Customer Service Function, C.H.Lovelock
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Customer Service Customer Satisfaction

12/30/2012

Swapna Pradhan

Customer Service as a part of Retail Strategy


The concept of value Value Improvement Value Extension

12/30/2012

Swapna Pradhan

Principles of distinctive service


1. Identify key customers, listen and respond to them 2. Define superior service and establish a service strategy 3. Set standards and measure performance 4. Select, train and empower employees to work for the customer 5. Recognize and reward accomplishment
Source: The Service Edge, Ron Zemke & Dick Schaff
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Measuring the gaps in service


The Knowledge Gap The Standards Gap

The Delivery Gap


The Communications Gap

12/30/2012

Swapna Pradhan

Gathering Customer Information & Encouraging Loyalty

Loyalty Programmes

12/30/2012

Swapna Pradhan

Loyalty Strategies
Pull Loyalty Strategies Pure Loyalty Strategies Push Loyalty Strategies Purchase Loyalty Strategies Purge Loyalty Strategies

12/30/2012

Swapna Pradhan

Characteristics of a good loyalty programme


1. Visibility
2. Simplicity 3. Value 4. Trust

12/30/2012

Swapna Pradhan

Customer Relationship Management


A process of collecting information about customers and aligning and remodeling

the organisation strategy to meet the


customers demand

12/30/2012

Swapna Pradhan

10

How CRM benefits the retailer


Customer needs
Product choice Access Support Value

Retailer traditionally provides


Range selection
Channel choice

CRM benefits customer


by enabling

Tailored range Consistent experience


Enhanced service

Information
Scale efficiencies

Customer defined Value

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Swapna Pradhan

11

Number of Custome rs

Instore PoS

Value per custo mer Targeted Direct Mail Added value


services

Advertising
Merchandising

Tailored cross learning based relationship


Most Valuable Segments

Lower Value Segments

Growable Segments

. . . it DOES NOT mean 1:1 marketing to them all

12/30/2012

Swapna Pradhan

12

The Role of Personal Selling


The Retail Sales Person plays a vital role in his interaction with the customer by being : A source of information

A fashion or value counselor


A public relations representative A mover of stock A seller of merchandise
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The Retail Selling Process


Acquiring Product/ Merchandise Knowledge Studying the Customer Approaching the Customer

Presenting the Merchandise


Overcoming Resistance Suggestive Selling Closing the Sale
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