Importance Of Training In Retail Set Up: Presented By:-amit Patel Chirag Patel Deepak Rao Jaydev Joshi Jitendra Chavda

08/28/09 IIPM=Ahmedabad

Importance of Training in Retail Set up

Presented By:Amit Patel Chirag Patel Deepak Rao Jaydev Joshi Jitendra Chavda 1

Agenda Introduction

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to Retail. Types of Retail. Why Training? Different requirements of different stores. Training Institute in Retail Management. How to identify Training needs. Types of Retail Training Programs. Tips on Training Retail Employees. 2

Introduction to Retail 08/28/09 IIPM=Ahmedabad

RETAIL is derived from The French word “RETAILLIER” which means to cut off a piece to break bulk.  Consider as last stage movement of goods and services to consumer.  In simple words any firm that sells product to the final consumer is performing function of retailing. 

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Three Basic Tasks of Retailing Get consumer into your stores.

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Covert them into Customers.

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Operate as efficiently as possible.

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For all these you require a highly talented working staff 4

Prioritize 7 P’s of Retail Service 08/28/09 IIPM=Ahmedabad

Place  Product  People  Process  Price  Promotion  Physical evidence 

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Main Success Factor-People 08/28/09 IIPM=Ahmedabad

People Are The Customers Which Are The Biggest Asset Of A Retail Company.  Well Trained Staff.  Appearance.  Ambience.  High Security For Safety Of Customers.  Successful retailers are more focuses on Training their people. 

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Why Training? 08/28/09 IIPM=Ahmedabad

 Can

be the deal breaker between making a sale or not.  Poorly Trained staff can causes to store.  Training is must for new hires.  Training is must when you expect your staff to be exceed your expectations.  It will provide a healthy workforce and successful Business. 7

A Shopper’s Wish 08/28/09 IIPM=Ahmedabad

Please…

 Let

me find a parking place near the store  Do not let me pay too much  Have the sales staff imagine that they care  Do not make me have to return anything  Get me in and out as fast as possible  Do note make me have to wait in line to make my purchase  Let this experience be somewhat enjoyable  Do not make me have to deal with other horrible shoppers

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Determining Customer Services to Offer Cost of Providing Service

Income of Target Market

Price Image of Store

Retailer’s Characteristics

Custom er Service

Services Offered by the Competition

Type of Merchandise Handled

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4 R’s Model Customer Retention.

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Customer Relationship.

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Customer Referrals.

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Recovery.

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

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Different Training requirements of Different Stores 08/28/09 IIPM=Ahmedabad

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Clothing Stores requires its employee should know:Ø What materials stretch. Ø What materials shrink. Ø What fits snugly versus loosely. ØStaff should understand colors and Patterns. ØStaff should understand what yields more profits.

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Continued… Tech Stores requirements Ø Know the products. ØShould understand technicality of products. ØAble to give assistance when customer gets confused. 

Book stores Ø Should be familiar with all areas of bookstore. Ø Able to Identify all segments of the books.

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

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Pantaloons & RPG

The Indian Institute of Social Welfare & Business Management (IISWBM) .  Pantaloon Retail India Ltd (PRIL) tied-up with 14 institutes including the Welingkar Institute of Management, Mumbai, before setting up its own training institute.  "By starting these institutes, companies are merely fulfilling the responsibility of creating their own resources."  Spencers set up Pragati, where newcomers undergo two months' training. 

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Training Institute in Retail Management. 08/28/09 IIPM=Ahmedabad

Indian Retail School  Loyola Institute of Business Administration (LIBA)  S P Jain Centre of Management  Institute for Integrated Learning in Management (IILM)  Welingkar Institute of Management, Centre for Retail Studies  K J Somaiya Institute of Management Studies & Research  Mudra Institute of Communications  Amity Business School 

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Identification of training for Salespeople 08/28/09 IIPM=Ahmedabad

Performance Standards  Conversion Rate is the percentage of shoppers that enter the store that are converted to purchasers.  Sales per hour.  Use of time.  Interview based identification. 

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Characteristics of a Top Retail Salesperson 08/28/09 IIPM=Ahmedabad

BELIEVE IN YOURSELF  BE WILLING TO WORK HARD  HAVE RESPECT FOR THE CUSTOMER’S GOOD SENSE  BE FLEXIBLE  BE DECISIVE  BE ABLE TO HANDLE STRESS 

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Benefits of Training 08/28/09 IIPM=Ahmedabad

Improves Basic Sales skills.  Improves soft skills (Communication, Body language, Gestures & posture, eye contact)  Improves product knowledge.  Focus more on customer satisfaction.  Retain Customers rate will increase.  Improves sales.  Level of handling work load will increase.  Retail Network. 

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SOLUTIONS 08/28/09 IIPM=Ahmedabad

Training seminars and workshops  Reinforce training 

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Customer retention training programmes 08/28/09 IIPM=Ahmedabad

Helps to build stronger bonds  To identify and deal with customer dissatisfaction  Greater customer engagement  Identify growth opportunities 

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Importance of reducing and resolving customer conflict 08/28/09 IIPM=Ahmedabad

Customer conflict creates customer dissatisfaction  Service recovery skills are critical in maintaining customer satisfaction 

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Calculating the potential cost of a lost customer due to service failure 08/28/09 IIPM=Ahmedabad

There are 2 factors Ø The average customer lifetime value Ø The ripple effect 

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The CLV 08/28/09 IIPM=Ahmedabad

3 components Ø Average dollar amount per transaction= $20 Ø Average no. of transactions per year=$30 Ø Average no. of years customer remains in a business`s target group =10 Ø CLV = 600*10=6000 

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Ripple effect 08/28/09 IIPM=Ahmedabad

CLV is now multiplied by 11( initial plus 10 others)  With ripple effect, potential cost of a single service failure over a 10 years = $6000*11 =$66,000 

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Flower of Retail service

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M

R C

Core Service

t en inm rta te & n En Fu ne Zo

Merchandise Shopping

Shop floor management

al n io ot nts om cou r P is d

Good Aesthetics

Change in Product line

I O ntro sc f n . he ew m es

Customer Queries

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Wal-Mart’s Success Pillars 08/28/09 IIPM=Ahmedabad

Do not show off buying luxury goods.  The way it treated its Associates and customers. Management style «Maintain an open-door policy for every employee. «Empowering associates and respect their needs. «Provide training as per the need of Employee. «Maintain technology superiority «Build loyalty among associates, customers, and suppliers 

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Different types of Retail Training Programmes CRM Training.

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Training in category management.

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Merchandise management.

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Store Management.

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Store layout design and visual merchandising.

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Customer service.

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

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Contd… Sales Training

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How to Understand consumer psychology (Defensive, Interrupter, Decisive, Indecisive, Sociable, Impulsive)

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On-the-Job Training

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Online Course

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Seminars/Workshops

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

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EEET model for perfect Sales Associate 08/28/09 IIPM=Ahmedabad

Retail sales associate must combine the competencies of four sales associate archetypes.  The Educator.  The Engager.  The Expeditor.  The Authentic.

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Tips on Training Retail Employees. 08/28/09 IIPM=Ahmedabad

Create a employee handbook for new hires.  Should focus on operations and customer service aspects of the business.  Curriculum should be tailored to individual employee positions.  Provide an in-depth focus on company policies and procedures as well as information on sales and product knowledge 

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Contd… 08/28/09 IIPM=Ahmedabad

Focus on the behavioral characteristics of the employee.  Consider the social needs of new employees when formulating training programs.  Leadership skills should be provided to all employees.  Staples provides employee training via a service called Cyberscholar. 

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•Consumerism. •Busy Life Style. •Ecological Scarcity.

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Conclusion

•Life Expectancy. •Complexity of Life. 31

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Thank You

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