Retail store administration

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Retail store administration

  1. 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. 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. 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. 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. 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. 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. 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. 8. 2-define superior service and establish a service strategy, business objective. E.g. MacDonalds3-set standard and measure performance.30 min delivery of pizza as measurable standard, targets vs. achievements. leads to delight4-Select , train and empower employees to work with C., dedicated ,communication and product skills ,empowering to decide, faith, responsibility, limit of authorities etc5-recognise and reward accomplishments-motivation thru praise, sales personsMeasuring 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. 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. 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 learnings 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. 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 fallowsC- needs Retailer usually CRM benefits by provides enabling1-Product choice- Range selection tailored range2-acess--- Channel choice Consistent experi3-support--- Information Enhances service4-Ind- treatment-- Customer service 1 to 1 relationship5-value--- Scale efficiencies Customized value
  12. 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. 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.

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