Effective Leadership for “Fit“ Retail Sales Teams
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Effective Leadership for “Fit“ Retail Sales Teams Effective Leadership for “Fit“ Retail Sales Teams Presentation Transcript

  • HOW TO LEAD IMPACTFUL, EFFECTIVE RETAIL SALES TEAMS FOR INCREASED SALES AND PROFITABILITY The Retail Doctor® Group Pty Ltd www.retaildoctor.com.au
  • MANAGE AND LEAD FOR BUSINESS FITNESS! In the world of retail there are times to be serious – We have sales targets to meet, costs to control and shareholders and bosses to please. It can also be fun, rewarding and satisfying – it’s all about attitude. B Managing and leading (without losing sleep) involves balancing the importance of making a profit and providing great customer service with a team armed with support, knowledge and skills. Fit Businesses lead impactful and effective sales teams for increased sales and profitability! © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • TODAY’S PROGRAM Today’s Program Part 1  Selling Skills for Business Fitness  Steps to improved selling Part 2  Management and leadership for Business Fitness  Keeping the score and lifting the bar © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • PART 1 - SELLING SKILLS FOR BUSINESS FITNESS © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • SELLING SKILLS FOR BUSINESS FITNESS Purpose of Selling Skills Providing knowledge and skills to your team allows them to effectively build rapport and sell to your customers. This is not as hard as it may seem! The Sales Process Made Easy: The following process gives you and your team a basic structure for sales success which is easy to implement regardless of sales experience. © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • SELLING SKILLS FOR BUSINESS FITNESS 5 Steps to a Sale Step 1 - Welcome • Acknowledge • Conversation • Customer Hesitation Step 2 - Probing • Questions (The memory bank) • Acknowledge and Support Step 3 - Present • Features, Advantages and Benefits Step 4 - Customer considerations • Cross-selling and Up-selling • Customer Consideration Step 5 - Close • Building Customer Loyalty © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • STEP 1 - WELCOME Step 1 - Welcome The welcome ensures all customers are welcomed and engaged immediately on entering the store. This is the foundation of the sale setting a positive tone for the remainder of the customer’s visit.  Acknowledge – and smile!  Conversation - Arouse interest and establish customer’s needs  Customer Hesitation – Help guide the customer © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • Step 1… The Welcome STEP 1… THE WELCOME What is the purpose of the welcome?  To ensure that customers are effectively welcomed and engaged by a salesperson when they enter the store  The welcome is designed to ensure that;  All customers are acknowledged upon entering the store  The customer is relaxed and engaged by the salesperson  Rapport and trust are built with the customer  Any of the customer’s defensive barriers are reduced  A platform is built from which to transfer the conversation to business © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • STEP 2 - PROBING Step 2 - Probing Probing determines the customers wants, needs and desires. It develops customer confidence in you.  Questioning – identify needs and wants – LISTEN/RETAIN  Acknowledge and Support – Develop trust © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • STEP 3 - PRESENT Step 3 - Present Successful salespeople structure their presentations to the customer’s needs (established in steps 1 and 2) This creates the desire and enthusiasm to purchase Customers do not by a product – they buy into a relationship and a solution Remember: FAB © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • STEP 3 - PRESENT Step 3 - Present • Digital Radio Product • Features – specific to a need F • Internet Broadcast facility • Advantages – reason for the feature A • Clarity of sound and range of transmission • Benefits – how this will advantage the customer B • Listen to your soccer team live from Brazil! © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • STEP 4 – CUSTOMER CONSIDERATIONS Step 4 – Customer Considerations Cross Selling / Up selling Multiple sales are the fun part! The open wallet opportunity! it is the life blood of customer service and a profitable business!  Show a total story – not the one piece  Be confident, enthusiastic  Bring the items to the customer  Link to the needs you already know! © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • STEP 5 – CLOSE Step 5 - Close A close is asking for the sale – should be easy if you’ve done the first 4 steps well! Reinforce the customers decision – make them feel good about their purchase. Building Customer Loyalty: E.g.  Offer care or cleaning instructions  Thank the customer  Inform the customer of the VIP mailing list  Use the customer’s name  Smile and make eye contact  Wish them well and INVITE THEM BACK! © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • 3. CUSTOMER CONNECTION Our Service Measure Lost Sales 100 Lost Customers 90 80 70 Acknow 60 Sale open 50 Add on 40 30 Sale close 20 Return 10 Max 0 Shop Shop Shop Max 1 2 3 score 10 out of 24 5 out of 24 stores 10 out of 24 stores stores scored scored +65% for scored +55% for +55% for retailing customer service selling skills over 3 skills over 3 over 3 months months months © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • EFFECTIVE PEOPLE Mystery Shopping Results by Category (previous 3 audits) F7 6 F5 Average July Check May Check March Check All Stores 01. General 76.09% 76.09% 76.09% 02. Acknowledge and Approach 71.74% 67.39% 55.43% 64.85% 03. Assess Needs / Show and Tell 93.58% 88.20% 89.23% 90.34% 04. Up sell / Add-on 60.87% 60.87% 47.83% 56.52% 05. Handle Concerns / Close the Sale 69.57% 63.04% 54.35% 62.32% 06. Thank and Farewell 90.22% 85.87% 65.76% 80.62% 07. Staff Appearance 100.00% 95.32% 97.32% 97.55% 08. Store Appearance 98.81% 100.00% 100.00% 99.60% Staff and stores look good however the key selling steps are being consistently missed.
  • 3. CUSTOMER CONNECTION Customer Loyalty Customer Loyalty hinges on a retailer’s ability to provide differentiated service or a unique shopping experience (Price was not a key factor) More than 80% of customers defect because of the indifferent service they received The extent of positive shopping experience will determine the degree of customer satisfaction and loyalty. Loyalty is the ultimate driver of improved sales and profitability. © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • 5 STEPS OF A SALE Review 1. Welcome Presentation 2. Probing 3. Presentation 4. Customer Consideration 5. Close © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • PART 2 – MANAGEMENT OF SALES LEADERSHIP FOR BUSINESS FITNESS © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • PLANNING AND ORGANISING Leading A Sales Team © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • MANAGEMENT AND LEADERSHIP The Purpose of Management and Leadership  To develop a professional senior retail team that will be successful  To lead staff through greater development and performance  To develop own skills in leadership and management  To develop a culture of value and performance for mutual success
  • MANAGEMENT AND LEADERSHIP What’s Involved?  Decision making  Motivation  Effective communication  Goal Setting and measuring  Leading and developing teams  Coaching and counselling  Performance Management
  • MOTIVATION Do you Understand the Motivators?  What is motivation?  How do you motivate your teams?  Link to your strategy?  What motivates your individual team members?  How do you build a climate for motivation? © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • MOTIVATION The 3 F’s Fun Fulfilment Focus © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • EFFECTIVE COMMUNICATION Barriers to Communication  40-60% chance that meaning will be lost within the message between sender to receiver  A majority of communication is non verbal  Language: No two people will attribute the same exact meaning to the same words  Defensiveness  Behavioural styles  Projection  90% of the meaning that we derive from communication is derived from the non verbal cues that the other person gives © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • GOAL SETTING SMART Goals Make any changes necessary to ensure it meets the criteria for a SMART goals: S = Specific M = Measurable A = Attainable R = Realistic T = Timely © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • PLANNING AND ORGANISING Time Management  Maximise selling time – Customer coverage Time Management  The Pareto Principle 20% effort  “80% of the results comes 80% from 20% of the results effort” Orange learning & development © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • GOAL SETTING Setting Performance Goals In Your Business  Understand setting and achieving retail sales goals  Define and understand the key retail statistics needed in setting sales goals and analysing business performance  Accurately target retail performance deficits and take corrective action to improve. © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • LEADING AND DEVELOPING  Setting performance goals in your business  Setting goals, monitoring, rewarding and follow up  Leading a sales team – Goals, performance, feedback and counseling  Retail statistics © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • PERFORMANCE MANAGEMENT Sell More Of What I Have To Customers I Already Have  Suggestion sell:  Make sure it is “intelligent” suggestion selling  Practice for each item in the store (start up meetings)  Model it / measure it / reward it!
  • PERFORMANCE MANAGEMENT Sell More Of What I Have To Customers I Already Have  Maximise store presentation  Great displays  Mass with class or less is more  Easy to understand layout  Easy to follow signing  Simple, large and benefit oriented  Impulse front and forward  Neat and clean
  • SALES PRODUCTION Sales Production Sales Where and how do they produce their sales?  Sales to plan  Team sales  Individual sales  Items per sale  Average sale  Conversion rate  Sales by space  Sales by product © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • PERFORMANCE MANAGEMENT Average Transaction  How much does the average customer spend in your store?  Critical number as it measures your ability to sell more of what you have to customers you already have Items Per Sale  Measures how many items the average customer purchases  Highly correlated to performance of suggestion and add-on selling Conversion Rate  How many customers out of 100 who enter your store to make a purchase  Measures how well you “convert” shoppers to buyers  The higher the conversion rate the better
  • PERFORMANCE MANAGEMENT What Affects The Stats? Low average sale is the result of:  Rarely shows any items  Lack of product knowledge  Consistently low items per sale  Discounting too much too often  Rushing presentations to customers Low items per sale is the result of:  Not consistently suggesting add-ons  Capable but not being held accountable  Needs training  Makes poor suggestions due to lack of probing
  • PERFORMANCE MANAGEMENT Factors That Effect Conversion Rate  Nature of product (necessities vs. discretionary)  Staff levels, Staff knowledge  Display  In stock position (size, colour, style)  Pricing  Store layout  Store location
  • PERFORMANCE MANAGEMENT Setting Performance Goals In Your Business  Understand setting and achieving retail sales goals  Define and understand the key retail statistics needed in setting sales goals and analysing business performance  Accurately target retail performance deficits and take corrective action to improve.  Understand the principles of profit and the key financial measures that managers need in managing their business.
  • W/E W/E W/E W/E W/E W/E W/E W/E W/E W/E W/E NAME 4/4 11/4 18/4 25/4 6/6 13/6 20/6 27/6 6/6 6/6 13/6 Roger Sussan Mary Fred © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • Individual Score Cards Date w/e 6/6 13/6 20/6 27/6 6/6 Month Target $ 4500 4247 4699 3896 4598 21940 Actual $ 4421 4200 4715 4005 4688 22029 IPS 1.56 1.66 1.78 1.89 1.79 1.74 Av. sale 46.25 47.58 49.23 49.8 51.24 48.82 © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • PERFORMANCE MANAGEMENT To Increase Conversion Rate  Master selling skills (coaching)  Sufficient staff levels  Check competition often  Observe and question “walks”  Give feedback to buyers  Sell what you have, not what you wish you had
  • AT, IPT AND CONVERSION RATE AT, IPT and Conversion Rate A B C Weekly Traffic 600 600 600 Conversion 25% 28% (168) 28% (168) Rate (150 Transactions) Average Sale $45.00 $45.00 $55.00 Total Sales $6, 750.00 $7, 560.00 $9, 240.00 Case A One in four customers buy / average sale of $45.00 Case B Improve conversion by 3% for a 12% sales increase Case C Maintain conversion and increase average sale by $10 (1 extra item per ticket) = 36% increase on same traffic!
  • SALES PER EMPLOYEE Sales per Employee Sales Per Employee – Formula Sales Total Number of Employees = Sales Per Employee $500,000 = $125,000 4 This is a key number! It should always be increasing!
  • PERFORMANCE MANAGEMENT If You Want To Change / Improve  Set realistic targets  Measure  Give responsibility  Give tools/ train/ improve  Have consequences  Reward!  Shape and lead the team to deliver
  • COACHING AND COUNSELING Counselling  Maintain self esteem  Objective  Set boundaries and define outcomes  Seek and reach agreement to achieve the goals – link feedback to goals  Win-Win A.I.D. model – Actions, Impact and Desired outcome. P - Present the problem R - Reaction to reality O - Ownership © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • Tips For Hiring Effective Sales People  Hire the will teach the skill  People people  Goal driven  Team – conscious of others  Great communicators  Attentive –focussed  Personality  Resilient  Enjoy winning © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • PERFORMANCE MANAGEMENT Remember This! What gets measured gets changed What gets rewarded gets done If you don’t measure it, you can’t change it and if you don’t reward change it will not happen
  • COACHING AND COUNSELING Coaching  What is coaching?  Difference between coaching and telling?  What makes great coaches - critical coaching skills  Will vs. skill © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • COACHING AND COUNSELING Conflict Management  Objective - deal with the facts  Empathetic yet not emotional  Telling them things they may not want to hear  Self esteem of the other party  Ask them how they would rectify © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • Retail sales, service, selling and KPI program Selling skills training Selling skills measure Induction Retail job descriptions Tracking measures Sell skills1, Sell skill 2 KPIs Management workshop Operational standards Automated rosters and Incentive/reward systems Training Service standards Training measures Management program Coaching systems implementation plan Productivity measure Automated tracking (Sales leadership) Tracking Monitor program Store evaluation format Sales reporting system Merchandising training Performance appraisal Agree targets (Ops KPIs) Sales conversion (Self paced learning) system Health checks measures Accreditation Retail reporting (Sales KPIs) Intranet or manual based
  • THE RETAIL DOCTOR TRAINING PROGRAMS Would Like to Know More? The Retail Doctor offers a range of in-depth retail training programs:  Selling Skills 1  Selling Skills 2  Management and Leadership TRAINING PROGRAMS  Retail Financials  Visual Merchandising  Inventory Management © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • TODAY’S PROGRAM Today’s Program Part 1  Selling Skills for Business Fitness  Steps to improved selling Part 2  Management and leadership for Business Fitness  Keeping the score and lifting the bar © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • THE RETAIL DOCTOR BREAKFAST SERIES Collins Street Precinct Group Upcoming Events Breakfast Session 2 19 August 2009 Collins Street Precinct Group How to create outstanding visual Breakfast Series merchandising We are delighted to invite you to attend The Retail Doctor Breakfast Session 3 “Fit For Business”™ 7 October 2009 Breakfast Series How to lead impactful, effective retail sales teams to increase “From Surviving to Thriving in sales and profitability Today’s Turbulent Times” Breakfast Session 4 Tel: 03 9639 4078 18 November 2009 Email: tracey.davis@collinsstreet.com.au How to increase profits through Watch your email for on-line registration! effective inventory management © Copyright 2009. The Retail Doctor® Group Pty Ltd
  • For more information and to see how The Retail Doctor can help you become ‘Fit for Business’ please connect with us. Facebook: www.facebook.com/retaildoctor Twitter: www.twitter.com/retaildoctor LinkedIn: www.linkedin.com/in/brianwalkerretaildoctor Alternatively, you can contact us on the details below: THE RETAIL DOCTOR® GROUP PTY LTD Mailing Address PO Box 209 Milsons Point NSW 2061 Phone | +61 (0)2 9460 2882 Fax | +61 (0)2 9460 3883 E-mail | businessfitness@retaildoctor.com.au Web: | www.retaildoctor.com.au © Copyright 2009. The Retail Doctor® Group Pty Ltd