Chapter 3 Store Operations / Selling and Service

Question 1

A sales associate should ____ to a customer’s ____ to match them with the right ____ and _____.

Answer 1

LISTEN TO A CUSTOMER’S NEEDS
THE RIGHT PRODUCT AND SERVICE

Question 2

What is the 80/20 rule?

Answer 2

80% OF THE SALES AND PROFITS COME FROM 20% OF THE CUSTOMERS.

Question 3

ACTUAL SALES =

Answer 3

THE TOTAL GROSS SALES GENERATED DURING A SPECIFIC REPORTING PERIOD FOR A DEPARTMENT STORE

Question 4

The average sale metrics is an indication of how much each customer buys. The formula used to calculate Average Sales is

Answer 4

AVERAGE SALES = TOTAL SALES VALUE / TOTAL NUMBER OF TRANSACTIONS

Question 5

____ gives us focus, motivation, clarity, and direction.

Answer 5

GOALS

Question 6

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?

Answer 6

DEPARTMENT PLAN

Question 7

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.

Answer 7

FINANCIAL PLANNING

Question 8

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.

Answer 8

MERCHANDISE PLAN

Question 9

The total number of customer transactions completed by a store or department during a specific reporting period is ___________.

Answer 9

NUMBER OF TRANSACTIONS

Question 10

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 _____

Answer 10

REFERRAL

Question 11

The percentage of items sold that were returned by customers during a specific period of time for each department or store is ____

Answer 11

RETURN PERCENT

Question 12

Lowering the return percent increases the ____

Answer 12

SALES AND PROFITS

Question 13

A high return percent is indicates poor ____ and product are ______

Answer 13

POOR SERVICE
PRODUCTS ARE UNSATISFACTORY

Question 14

Management set sales ______ daily, weekly, and monthly to give their salespeople direction.

Answer 14

SALES GOALS

Question 15

____ should be ______ and reflect the planned sales for your department.

Answer 15

GOALS SHOULD BE REALISTIC

Question 16

The formula to calculate SALES GOALS is

Answer 16

SALES GOAL = PROJECTED SALES PER HOUR X NUMBER OF HOURS SCHEDULED TO WORK

Question 17

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?

Answer 17

SALES PER HOUR = TOTAL SALES VALUE / TOTAL HOURS WORKED

Question 18

A plan that details all the sales numbers to be achieved in a season is _____

Answer 18

SALES PLAN

Question 19

SMART Goals are goals that are ____, _____, _____, _____, and _____.

Answer 19

• *S** = SPECIFIC
• *M** = MEASURABLE
• *A** = ACHIEVABLE
• *R** = RESULTS-ORIENTED
• *T** = TIME-BASED

Question 20

A plan that details the planned sales volume by department and compares those numbers to actual sales this year and last year

Answer 20

STORE FINANCIAL PLANS

Question 21

The _________ is what a company offers that differentiates it from other retailers who offer the same or similar products and services.

Answer 21

UNIQUE SELLING PROPOSITION

Question 22

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?

Answer 22

UNITS PER TRANSACTION = TOTAL # OF ITEMS SOLD / TOTAL NUMBER OF TRANSACTIONS

Question 23

What role do promotions play in making or missing your sales goals?

Answer 23

SUCCESSFUL PROMOTIONS CAN DRIVE TRAFFIC IN TO THE STORE AND HAVE A POTENTIAL TO INCREASE SALES.

Question 24

How can lack of sales promotions affect sales goals?

Answer 24

FAILING TO RECOGNIZE OPPORTUNITIES FOR PROMOTIONS COULD RESULTS IN LOWER TRAFFIC IN TO THE STORE AND MISSED SALES GOALS

Question 25

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?

Answer 25

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

Question 26

Retailers have goals to measure _____, _____,_____, and ______

Answer 26

1. PROFITS
2. COMPARE PERFORMANCE FROM PRIOR YEARS
3. GAUGE WHETHER THEIR PRODUCTS OR SERVICES ARE SELLING WELL
4. PROVIDE A MEASURE TO DEFINE SUCCESS

Question 27

If you sold 15 items and had 10 transactions. what is your “ITEMS or UNITS PER TRANSACTION” average?

Answer 27

ITEMS/UNITS PER TRANSACTION = TOTAL # OF ITEMS SOLD / TOTAL # OF TRANSACTIONS

1.5

Question 28

If your total sales valued equaled $1500and you had 10 transactions, what was your average sale?

Answer 28

AVERAGE SALE = TOTAL SALES VALUE / TOTAL # TRANSACTIONS

$150

Question 29

If your total sales valued $1500 and you worked 20 hours, what was your sales per hour?

Answer 29

SALES PER HOUR = TOTAL SALES VALUE / TOTAL HOURS WORKED

$75

Question 30

Retailers develop appropriate strategies and divide customers into 4 segments to help identify and prioritize potential customers. The 4 segments are:

Answer 30

1. PLATINUM SEGMENT is where most of your LOYAL CUSTOMERS are
2. 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.
3. IRON SEGMENT. These customers are EXTREMELY PRICE CONSCIOUS and are not loyal to a particular store or brand.
4. LEAD SEGMENT. These customers COST THE COMPANY MONEY. Demand a lot of attention but do not buy very much.

Question 31

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.

Answer 31

1. NEEDS
2. PREFERENCES
3. WILLING TO SHARE

Question 32

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.

Answer 32

CLIENT RECORD SYSTEM

Question 33

The important thing about your Client Record System is it must remain _____

Answer 33

UP TO DATE

Question 34

Your Client Record System should contain the following basic information for each customer:

Answer 34

1. NAME
2. EMAIL ADDRESS
3. ADDRESS
4. PHONE NUMBER(S)
5. OCCUPATION (OR HOBBIES, COLLECTIONS, ACTIVITIES, PROJECTS, OR OTHER INTERESTS THAT INFLUENCE BUYING PREFERENCES)

Question 35

Your collection of customer information is a _______. It must be updated regularly to stay current.

Answer 35

LIVING RECORD

Question 36

Information obtained from customers for the client record system must remain _____. Privacy is important to everyone.

Answer 36

PRIVATE

Question 37

____ utilize customer data gleaned from their past purchases as well as any information your input regarding their preferences.

Answer 37

LOYALTY PROGRAMS

Question 38

New associates should seek out the assistance of a ___ more experienced when a complex issue arises.

Answer 38

COWORKER

Question 39

If the total purchase before tax is $25 and the tax rate is 7%. What is the final price?

Answer 39

$26.75

$25 x .07 = $1.75

$25 + $1.75 = $26.75

Question 40

_____ are a more visual way to see data and are an excellent method to view trends and comparisons.

Answer 40

GRAPHS

Question 41

BAR GRAPHS are used to ______ data.

Answer 41

COMPARE DATA

Question 42

LINE GRAPHS show data changes _______

Answer 42

OVER A PERIOD OF TIME.

Question 43

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”.

Answer 43

PERCENTAGES AND PROPORTIONS