THE SALES PROCESS AND CUSTOMER SERVICE Flashcards
Methods of selling
Ways in which businesses interact with customers in order to exchange goods and services for payments.
A business usually sells in three different ways:
Face to face
E-commerce
Telesales
Face to Face selling
Involves direct contact between the buyer and the seller
There are many examples of face to face selling such as:
Retail salesperson
Car dealerships
Door to door sales
Estate agency
Telesales
Involves sales completed over the telephone. Some businesses use it to contact potential customers to make a sale, known as ‘cold calling’
There are many examples of phone selling such as:
Retail stores
Phone/TV companies (for example, sky or Vodafone)
Insurance
Advantages and disadvantages
Face to Face
Increases sales: Can increase sales and profits for the business
Product Knowledge: Useful when customers need/like advice n the product/service before buying
Customer retention: Customers feel valued when time is being spent with them, encouraging them to return and tell others.
Discounts: The customer can bargain with the seller for discount.
Inconvenience: It may not always be convenient for the customer. Customers have a limited time frame (opening hours).
Reduced profits: If the customer bargains some discount this can reduced profits.
Increased costs: Business costs can be higher when staff and stores are required.
Telesales
Increased sales: Sales can increase as customer can ask questions and bargain prices.
Reduced costs: Costs less than selling from a shop.
Increased costs: Storage and warehouse costs can increase as there is no store for goods or workers.
Inconvenience: Customers may not like being ‘cold called’ and hang up
E-commerce
Refers to the buying and selling of products and services using devices connected to an electronic network, i.e. the internet.
Nowadays there are many ways to e-commerce works such as:
Websites
Store apps
Social media apps, for example, via Instagram or Facebook
Advantages and disadvantages to businesses
Advantages
Disadvantages
Markets have increased as businesses can no sell more easily across the world.
Competition has increased, including greater competition from abroad
It is possible to sell 24/7
Delivery systems need to be organised as well as ways of dealing with the increase in goods that are returned
The costs of selling are usually much lower as a result of savings on rental of premises and a reduction in the number of workers that are needed
As technology develops so must e-commerce business, which can add costs and lead to changes in the operation of the business and the workers it needs
Web designers can make businesses appear attractive at little cost
E-commerce businesses need to provide cyber security for themselves and their customers
Advantages and disadvantages to customers
Advantages
Disadvantages
Online selling has made it easier for customers to compare prices and find the best deals.
It is impersonal and so customers may not be able to ask questions (unless there’s online chat)
Customers can buy 24/7
If the computer systems are not secure, customers may be at risk of personal data theft or bank fraud
Choice has increased because customers can buy from sellers around the world
Not everyone has access to or can use computer technology
Goods are bought as seen and described on the website and they may not be what it wanted when they arrive. Customers must return goods, often at their own cost.
Importance of customer service
The section of the business which deals with customer enquiries.
WHY?
An effective way of gaining new customers but also retaining existing customers. Increases reputation and sales of the business.
HOW?
Product knowledge
Meet legal requirements
Fast delivery
After-sales service and support
After Sales Service
A service provided to customers after they have bought the product/service.
HOW?
Can include providing further advice and returns.
WHY?
To build positive relationships and reputation to ensure the continuous return of customers.
Product Knowledge
Sales assistance know about the goods or services they are selling in order to explain all the features to customers
WHY?
To make customers feel confident and informed about the products and services which encourages them to buy.
HOW?
Sales consultants give advice and information.
Customer Engagement
Refers to communication between the buyer and the seller.
HOW?
It involves providing a friendly, welcoming and respectful service and being helpful rather than pushy.
WHY?
To build positive relationships and reputation to ensure the continuous return of customers
