RETAIL MANAGEMENT

Customer Services and Retail Selling

- J.Sathishkumar

Objectives
Explain why customer service is so important in
retailing.

Describe the various customer services that a retailer

can offer.

Explain how a retailer should determine which

services to offer.

Three Basic Tasks of Retailing

Customer Service
Nordstrom, by providing
high-quality customer service, has become a leader in relationship retailing and has many loyal long-term customers.

Common Customer Services

Pre transaction Services

Transaction Services

Post transaction Services

Factors to be Considered When Determining Customer Services to Offer

Cost of Providing Service

Retailers Characteristics

Income of Target Market

Customer Service Mix

Services Offered by the Competition

Price Image of Store

Type of Merchandise Handled

How the Retailers Sales force Meets the Expectations of Both Vendors and Customers

Retailers Sales Force Vendors Expectations Customers Expectations

Customer Types: Defensive

Customer Types: Interrupter

Customer Types: Decisive

Customer Types: Indecisive

Customer Types: Sociable

Customer Types: Impulsive

Wal Mart Case Study Presentation DEC 2011

Sustainable Competitive Advantage

How do these core competencies drive sustainable competitive advantage?

Absolute leadership market, cost, pricing, profitability

Value Chain

Competitive Strategy Disintermediation Use of EDI - P&G

Procurement

Sustainable Competitive Advantage 3-4% savings Realtime linkage between supply & demand, tangible benefit for suppliers Image - "best retailer to do business with" COGS reduction by 10-20% Best inventory turns & distribution costs in industry Processing throughput increased by 18%, RFID to unlock potential cost savings of 6% Reducing dependence on other brands Reduce "lost sales", offer more variety, reduce stockouts

Strategic collaboration with suppliers - 3 year strategic plans Global sourcing - China Warehousing - Hub & spoke model Innovation - Cross docking, RFID Private labels Use of IT to uniquely merchandise each store

Distribution

Merchandising & Marketing

Pricing - continuous discounting, price Always the best price. Always discovery, leeway for store managers to set pricing

Value Chain

Competitive Strategy

Sustainable Competitive Advantage

Stores

People

Management

In store execution - use of people greeters, electonic Best sales/square foot in industry scanners, satellite networks Use of EDLP Reduced labor requirements Use of incentivization & Best in industry shrinkage monitoring High levels of commitment & Motivation, Training, ownership, lack of unioinization, Incentivization, control lowest attrition rate in industry Open culture, inspirational High levels of commitment & leadership, rules of the ownership, lowest attrition rate in game industry Centralization Savings of 2-3% of sales

Driving Absolute value leadership across

every element of the value chain