Chapter 3 Store Operations / Selling and Service Flashcards
A sales associate should ____ to a customer’s ____ to match them with the right ____ and _____.
LISTEN TO A CUSTOMER’S NEEDS
THE RIGHT PRODUCT AND SERVICE
What is the 80/20 rule?
80% OF THE SALES AND PROFITS COME FROM 20% OF THE CUSTOMERS.
ACTUAL SALES =
THE TOTAL GROSS SALES GENERATED DURING A SPECIFIC REPORTING PERIOD FOR A DEPARTMENT STORE
The average sale metrics is an indication of how much each customer buys. The formula used to calculate Average Sales is
AVERAGE SALES = TOTAL SALES VALUE / TOTAL NUMBER OF TRANSACTIONS
____ gives us focus, motivation, clarity, and direction.
GOALS
Each Department makes a contribution to the store’s financial plan and helps the store meet its sales goals while meeting its own goals. What is this plan?
DEPARTMENT PLAN
Planning or goal setting to help the store reach their sales and productivity goals is ______. It includes a sales plan, merchandise plan, and store and department plan.
FINANCIAL PLANNING
A _____ plan is a seasonal plan that explains how to achieve the sales plan. It shows the amount of merchandise in stock at the beginning of the month in each season.
MERCHANDISE PLAN
The total number of customer transactions completed by a store or department during a specific reporting period is ___________.
NUMBER OF TRANSACTIONS
When a customer recommends someone based on his or her experience with the person or when someone recommends another person for a task or service is a _____
REFERRAL
The percentage of items sold that were returned by customers during a specific period of time for each department or store is ____
RETURN PERCENT
Lowering the return percent increases the ____
SALES AND PROFITS
A high return percent is indicates poor ____ and product are ______
POOR SERVICE
PRODUCTS ARE UNSATISFACTORY
Management set sales ______ daily, weekly, and monthly to give their salespeople direction.
SALES GOALS
____ should be ______ and reflect the planned sales for your department.
GOALS SHOULD BE REALISTIC
The formula to calculate SALES GOALS is
SALES GOAL = PROJECTED SALES PER HOUR X NUMBER OF HOURS SCHEDULED TO WORK
Sales per hour is a measure of sales productivity and provides a measure for comparing sales volume for the store and the staff. What is the formula used to calculate Sales per Hour?
SALES PER HOUR = TOTAL SALES VALUE / TOTAL HOURS WORKED
A plan that details all the sales numbers to be achieved in a season is _____
SALES PLAN
SMART Goals are goals that are ____, _____, _____, _____, and _____.
- *S** = SPECIFIC
- *M** = MEASURABLE
- *A** = ACHIEVABLE
- *R** = RESULTS-ORIENTED
- *T** = TIME-BASED
A plan that details the planned sales volume by department and compares those numbers to actual sales this year and last year
STORE FINANCIAL PLANS
The _________ is what a company offers that differentiates it from other retailers who offer the same or similar products and services.
UNIQUE SELLING PROPOSITION
The average number of units or items each customer buys during each transaction and the salesperson’s ability to sell multiple items is the Units per Transaction. What is the formula to calculate Units per Transaction?
UNITS PER TRANSACTION = TOTAL # OF ITEMS SOLD / TOTAL NUMBER OF TRANSACTIONS
What role do promotions play in making or missing your sales goals?
SUCCESSFUL PROMOTIONS CAN DRIVE TRAFFIC IN TO THE STORE AND HAVE A POTENTIAL TO INCREASE SALES.
How can lack of sales promotions affect sales goals?
FAILING TO RECOGNIZE OPPORTUNITIES FOR PROMOTIONS COULD RESULTS IN LOWER TRAFFIC IN TO THE STORE AND MISSED SALES GOALS
A department store offers a 10% discount on all purchases made the day that a customer opens a customer loyalty account. Miss Mims has decided to take advantage of this opportunity. Before the discount, her total purchase came to $300. What will the final price be after the 10% discount?
STEP 1: Subtract the discount percentage from 100.
100 - 10 = 90
STEP 2: Convert the percentage to a decimal
.90
STEP 3: Multiply the original price by the decimal.
$300 x .90 = $270
Final Price After Discount is $270
Retailers have goals to measure _____, _____,_____, and ______
- PROFITS
- COMPARE PERFORMANCE FROM PRIOR YEARS
- GAUGE WHETHER THEIR PRODUCTS OR SERVICES ARE SELLING WELL
- PROVIDE A MEASURE TO DEFINE SUCCESS
If you sold 15 items and had 10 transactions. what is your “ITEMS or UNITS PER TRANSACTION” average?
ITEMS/UNITS PER TRANSACTION = TOTAL # OF ITEMS SOLD / TOTAL # OF TRANSACTIONS
1.5
If your total sales valued equaled $1500and you had 10 transactions, what was your average sale?
AVERAGE SALE = TOTAL SALES VALUE / TOTAL # TRANSACTIONS
$150
If your total sales valued $1500 and you worked 20 hours, what was your sales per hour?
SALES PER HOUR = TOTAL SALES VALUE / TOTAL HOURS WORKED
$75
Retailers develop appropriate strategies and divide customers into 4 segments to help identify and prioritize potential customers. The 4 segments are:
- PLATINUM SEGMENT is where most of your LOYAL CUSTOMERS are
- GOLD SEGMENT. These customers have lower lifetime value because they are MORE PRICE SENSITIVE. Although they may buy a significant amount of merchandise they are not as loyal as platinum segment and probably patronize competitors.
- IRON SEGMENT. These customers are EXTREMELY PRICE CONSCIOUS and are not loyal to a particular store or brand.
- LEAD SEGMENT. These customers COST THE COMPANY MONEY. Demand a lot of attention but do not buy very much.
If you want to succeed in offering great personal service to customers, you will rely on maintaining a record of ____, ____, and other information the customer is _____ to share with you.
- NEEDS
- PREFERENCES
- WILLING TO SHARE
Your _____ system is where you keep customer information to help deliver personalized assistance such as notify a customer when the store receives a new item that might be of interest to him or her.
CLIENT RECORD SYSTEM
The important thing about your Client Record System is it must remain _____
UP TO DATE
Your Client Record System should contain the following basic information for each customer:
- NAME
- EMAIL ADDRESS
- ADDRESS
- PHONE NUMBER(S)
- OCCUPATION (OR HOBBIES, COLLECTIONS, ACTIVITIES, PROJECTS, OR OTHER INTERESTS THAT INFLUENCE BUYING PREFERENCES)
Your collection of customer information is a _______. It must be updated regularly to stay current.
LIVING RECORD
Information obtained from customers for the client record system must remain _____. Privacy is important to everyone.
PRIVATE
____ utilize customer data gleaned from their past purchases as well as any information your input regarding their preferences.
LOYALTY PROGRAMS
New associates should seek out the assistance of a ___ more experienced when a complex issue arises.
COWORKER
If the total purchase before tax is $25 and the tax rate is 7%. What is the final price?
$26.75
$25 x .07 = $1.75
$25 + $1.75 = $26.75
_____ are a more visual way to see data and are an excellent method to view trends and comparisons.
GRAPHS
BAR GRAPHS are used to ______ data.
COMPARE DATA
LINE GRAPHS show data changes _______
OVER A PERIOD OF TIME.
PIE CHARTS are used to represent _____ or _____where the entire circle, or pie, represents 100% and the size of the “slices” give a sense of proportion to each “piece”.
PERCENTAGES AND PROPORTIONS
