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How can the selling process help us to create loyal customers?

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Question added by Georges Aref Chaoul , Business Unit Director - Consumer Services , Kaizen Asset Management Services
Date Posted: 2015/06/05
Sashikanta Mohapatra
by Sashikanta Mohapatra , Manager - Business Development/Sales Process Deployment , Vodafone Spacetel Limited

Understanding the customer requirement, giving him options to choose, selling a product/service in the fairest possible way or maintaining the highest level of transparency are some pre sales activity that needs to be done. Post the selling activity excellent after sales service is the key to make the customer come back to you for additional services or upselling of other products also.

Rex Francsico
by Rex Francsico , Supervisor

we can create loyal customers for our quality of service, food and cleanliness and the most important the price of our food.

Arnold Gutierrez
by Arnold Gutierrez , Business Processing Associate/ Data Entry Analyst , Allsectech Manila Inc.

I think you need to have the knowledge on the product, delivered in highly performance. Have an harmonious relationship to your client. Treat him as king. Make follow up after sales, see to it he/she satisfy on the product and delivered the service in highly performance

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

In the retail industry, it seems as though we are constantly faced with the issue of trying to find new customers. Most of us are obsessed with making sure our advertising, displays, and pricing all “scream out” to attract new business. This focus on pursuing new customers is certainly prudent and necessary, but, at the same time, it can wind up hurting us. Therefore, our focus really should be on the20 percent of our clients who currently are our best customers.

   

In retail, this idea of focusing on the best current customers should be seen as an on-going opportunity. To better understand the rationale behind this theory and to face the challenge of building customer loyalty, we need to break down shoppers into five main types:

  • Loyal Customers: They represent no more than20 percent of our customer base, but make up more than50 percent of our sales.
  • Discount Customers: They shop our stores frequently, but make their decisions based on the size of our markdowns.
  • Impulse Customers: They do not have buying a particular item at the top of their “To Do” list, but come into the store on a whim. They will purchase what seems good at the time.
  • Need-Based Customers: They have a specific intention to buy a particular type of item.
  • Wandering Customers: They have no specific need or desire in mind when they come into the store. Rather, they want a sense of experience and/or community.

If we are serious about growing our business, we need to focus our effort on the loyal customers, and merchandise our store to leverage the impulse shoppers.

 

The other three types of customers do represent a segment of our business, but they can also cause us to misdirect our resources if we put too much emphasis on them.

Let me further explain the five types of customers and elaborate on what we should be doing with them.

Loyal Customers

Naturally, we need to be communicating with these customers on a regular basis by telephone, mail, email, etc. These people are the ones who can and should influence our buying and merchandising decisions. Nothing will make a Loyal Customer feel better than soliciting their input and showing them how much you value it. In my mind, you can never do enough for them. Many times, the more you do for them, the more they will recommend you to others.

Discount Customers

This category helps ensure your inventory is turning over and, as a result, it is a key contributor to cash flow. This same group, however, can often wind up costing you money because they are more inclined to return product (see Tips for Handling Store Returns).

Impulse Customers

Clearly, this is the segment of our clientele that we all like to serve. There is nothing more exciting than assisting an Impulse shopper and having them respond favorably to our recommendations. We want to target our displays towards this group because they will provide us with a significant amount of customer insight and knowledge.

Need-Based Customers

People in this category are driven by a specific need. When they enter the store, they will look to see if they can have that need filled quickly. If not, they will leave right away. They buy for a variety of reasons such as a specific occasion, a specific need, or an absolute price point. As difficult as it can be to satisfy these people, they can also become Loyal Customers if they are well taken care of. Salespeople may not find them to be a lot of fun to serve, but, in the end, they can often represent your greatest source of long-term growth.

It is important to remember that Need-Based Customers can easily be lost to Internet sales or a different retailer. To overcome this threat, positive personal interaction is required, usually from one of your top salespeople. If they are treated to a level of service not available from the Web or another retail location, there is a very strong chance of making them Loyal Customers. For this reason, Need-Based Customers offer the greatest long-term potential, surpassing even the Impulse segment.

Wandering Customers

For many stores, this is the largest segment in terms of traffic, while, at the same time, they make up the smallest percentage of sales. There is not a whole lot you can do about this group because the number of Wanderers you have is driven more by your store location than anything else.

Keep in mind, however, that although they may not represent a large percentage of your immediate sales, they are a real voice for you in the community. Many Wanderers shop merely for the interaction and experience it provides them. Shopping is no different to them than it is for another person to go to the gym on a regular basis. Since they are merely looking for interaction, they are also very likely to communicate to others the experience they had in the store. Therefore, although Wandering Customers cannot be ignored, the time spent with them needs to be minimized.

Retail is an art, backed up by science. The science is the information we have from financials to research data (the "backroom stuff"). The art is in how we operate on the floor: our merchandising, our people, and, ultimately, our customers. For all of us, the competitive pressure has never been greater and it is only going to become more difficult. To be successful, it will require patience and understanding in knowing our customers and the behavior patterns that drive their decision-making process.

 

Using this understanding to help turn Discount, Impulse, Need-Based, and even Wandering Customers into Loyal ones will help grow our business. At the same time, ensuring that our Loyal Customers have a positive experience each time they enter our store will only serve to increase our bottom-line profits.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

The Rewards of Great Service

A variety of research shows that today’s customers place a priority on receiving great service.

A2011 report published by American express revealed that 3 out of5 customers were willing to give up a former favorite brand in order to have a better service experience.

Even more telling are the results of the2010 RightNow Customer Experience Impact report, which revealed that 9 in10 Americans are willing to spend more with companies they believe provide excellent customer service.

Eighty percent of respondents shared the belief that smaller companies place a greater emphasis on service than larger companies, meaning ...

small business success is highly dependent on the satisfied customer.

Khaled Anwar
by Khaled Anwar , Senior Sales Engineer , "Automotive company''

I agree with the experts answers. Thank you 

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

Looking at the posts of others, I have nothing more to add except:

If you understand the selling process, you will be able to understand what does your customer need from you, what makes him happy, what makes him be satisfied and what makes him choose for you rather than your competitors.

Georges Aref Chaoul
by Georges Aref Chaoul , Business Unit Director - Consumer Services , Kaizen Asset Management Services

 

Thank You all very much for your participation, i agree with you Sirs/Madams.

 

If customers don't enjoy your selling process, they'll likely never do business with you again. Thus, selling to customers the "correct" way is an integral part of creating customer loyalty. 

 

Use the words they love to hear.

 

Not all words are created equal. Certain persuasive words encourage customers to buy more than others, in particular: free, new and instantly. When customers hear these words (and the promises they imply are backed up), they'll enjoy their purchases more than they would have otherwise.

 

Reduce pain points and friction.

 

All businesses, no matter the industry, are going to have to sell to the three types of buyers that are out there. According to neuroeconomics experts, nearly a quarter of these buyers will be conservative spenders, or "tightwad" customers. George Lowenstein of Carnegie Mellon University recommends using bundles, reassuring words (e.g., change "a $5 fee" to "a small $5 fee") and reframing as strategies to better sell to these conservative buyers. Read more about his advice here.

 

 

 

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