Michigan State University Extension
Tourism Educational Materials - 33209601
06/06/02
Good Customer Relations With Improved Personal Selling
Dale Zetocha
Extension Small Business Management Specialist
Reviewed and reprinted, September 1986
Cooperative Extension Service
North Dakota State University
EC814
Many business firms are emphasizing with renewed vigor
the importance of customer relations. In general, the
maintenance of good customer relations has suffered
during the past two or three decades. The rise and
success of numerous consumer protection movements attests
to this.
Customer relations is that function of business
management concerned with how customers feel about a
place of business -its personnel, products and services.
Any firm that truly views the customer as the most
important person ever to walk in the door of the business
is on the right path toward good customer relations. Too
often business activities are aimed at making things easy
and convenient for the employees of the firm rather than
focusing on the convenience and satisfaction of the
customer.
Why are the customer relations becoming more important?
Rapid changes in transportation and communication have
made customers more mobile than they were 20 years ago.
On the average, these customers possess a higher level of
education, are more discriminating in their purchases,
and are more willing to try new products and services.
Customer traits are constantly changing. Firms that fail
to keep abreast of such changing customer demand are
missing sales opportunities. To be successful a business
person must adapt to the needs and wants of customers,
including staying open at hours which suit customers and
offering the kinds of goods and services that will
attract them.
Without properly trained employees, the sales potential
of the best goods and services will not be reached.
Salespeople provide the day-to-day contact with the
consuming public and the impression made and image
presented will shape the store's image. Their actions and
attitude speak louder than words. Therefore, it is
important to maintain good personal selling techniques.
Employee Indifference
Customers discontinue patronizing a retail or service
business for a variety of reasons. Experience indicates
that 68 percent of the customers do not return because of
the indifferent attitude of an employee, 14 percent
because of product dissatisfaction, 9 percent because of
competitive reasons, 5 percent shop at a friend's
establishment, 3 percent move away and 1 percent die.
Indifference by employees can manifest itself in many
ways. For example:
-The sales clerk informs the customer that the store does
not carry that particular brand but fails to offer to
show the customer the brand which the store does carry.
-Failure to show customers a variety of styles that are
available.
-The salesperson's attitude of showing impatience (verbal
or non-verbal) while waiting for the customer to make up
his or her mind.
-Two or more sales clerks visiting with each other rather
than offering to assist customers.
-Conversely, in a quality restaurant customers may be
annoyed by "chatty" waitresses when they want a quiet
evening dining by candlelight.
The reasons salespeople let opportunities for making
profitable sales slip by are lack of product knowledge,
improper training, indifference to their work and lack of
concern for customers. However, the main reasons for
missed sales opportunities often lie with the
owner/manager. First, the manager may not be aware of
these opportunities. Second, he or she may hire people
who are not capable of being developed into salespeople.
Finally, the manager may not insist that the people they
hire actually try to sell.
Know Yourself And How Others View Your Business
Many times the owner/manager is not aware of
opportunities for additional sales. Some have become
conservative and cling to old viewpoints and methods
because that is the way they've always done it. This
philosophy is generally transmitted to employees.
The manager should review his or her attributes and
determine whether he or she is a part of the problem or
part of the solution. If a manager has a personality that
is full of enthusiasm and leadership, a sympathetic
understanding of people and an adequate level of
technical and managerial knowledge---then that person can
be part of the solution. The owner/manager must work
diligently and continuously on improving personnel
management capabilities.
The owner/manager should know how employees, customers,
associates and the community view the business from their
perspectives. The business's objectives, policies, rules
and procedures must foster a climate of cooperation. Poor
cooperation can often be traced to improper
communications. In some cases a change in style of
operation may be needed to ensure that people will want
to work with you.
Improving Personal Selling
The owner/manager must establish policies that foster
good customer relations. The salespeople should reflect
the image that is being portrayed, so it is important to
train employees to be good sales- people. Employees will
be as good or as bad as employers allow them to be.
The salespeople a customer encounters in any retail or
service establishment often form more lasting impressions
than the merchandise, decor, prices or any part of the
store image. Poor treatment at the hands of a
salesperson, receptionist, hostess or cashier can be
instrumental in the loss of a customer. Good treatment
does not insure that the customer returns, but it will go
a long way in creating a favorable inclination to do so.
Categories Of Sales Jobs
There is a tendency to lump all people concerned into one
category ---salespeople. To do so is incorrect because
many sales jobs are different from one another. Some
people may be hired as clerks who are primarily involved
in the buying function, i.e. ringing up the sale. A
salesperson is involved in the selling function, i.e.
showing merchandise. Sales jobs differ because of the
type of merchandise sold.
Merchandise (goods) can be classified into three broad
categories: convenience goods, shopping goods, and
specialty goods.
Convenience Goods -- Selling involves dealing with
customers who buy such goods as food, drugs, gas and
impulse items. These goods are purchased at frequent
intervals and with as little effort as possible
(convenient). It is understandable, therefore, that
salespeople and clerks handling convenience goods are not
required to enter the customers' lives as much as in the
other categories. But in those stores where customer
service is paramount, even the simple selling process
necessary for convenience goods can be more meaningful by
courteous attentive service.
Shopping Goods -- Selling involves those goods that
customers usually shop around for before buying.
Customers will be more careful and give more thought to
purchases such as clothing and accessories, home
furnishings and housewares, and similar items.
Salespeople who sell in stores or departments which
contain shopping goods need to have a good background of
merchandise information because many customers will be
relying on them for assistance and advice.
Specialty Goods -- Selling is the most difficult for
these goods because it usually involves the purchase of
merchandise that is higher priced and more expensive than
other merchandise. This category includes such items as
furs, higher priced apparel, furniture, major appliances,
equipment, valuable jewelry, etc. Needless to say,
customers for specialty goods must frequently exert
considerable shopping effort and give serious
consideration before they buy such goods, many of which
could be once-in-a- lifetime items. Customers expect that
specialty goods salespeople will give them considerable
merchandise information and advice. Customers have a
right to expect that such sales personnel will have
merchandise knowledge in depth in their field.
Interestingly enough, while nationally branded
merchandise plays an important role in the specialty
goods field, the customer's confidence in the seller (the
store, the department, and the salespeople) frequently
plays an equally important part in such sales.
Salesperson Represents The Business
A salesperson represents the business to the customer in
the following ways:
-As an information source--being knowledgeable about the
store's merchandise and policies.
-As a fashion and value counselor--to assist the customer
with value comparisons with items in the store or
possibly competing brands.
-As a public relations representative--the salesperson
represents the business to the public or to customers.
-As a mover of stock--to assist in turning over or
selling the inventory which is the primary objective of
the business.
-As a seller--to assist the customer in making a decision
to purchase the store's merchandise.
Whether you have experienced salespeople or hire new
ones, it is important to provide adequate sales training
for the following reasons:
-To teach salespeople to sell skillfully to realize
maximum sales and profit from each customer attracted to
the store.
-To advise customers using good selling suggestions that
will improve customer satisfaction and build sales.
-To assure that the customer's needs are met so that
returned purchases are held to a minimum.
-To develop a loyal following of customers who will
return to your business and who will recommend it to
friends and associates.
Merchandise Knowledge
The salesperson should be encouraged to take the initial
step in selling by being involved in the store and
learning about the merchandise. The salesperson should
know:
-What styles, brands and types of merchandise are carried
in stock.
-Where the merchandise is located in the store.
-Features of the merchandise regarding use, quality,
care, price, and guarantee.
-What's available or in demand through the retail market
served.
The salesperson should be enthusiastic about the product
and know as much about it as possible.
How To Study The Customer
When a customer enters a store, the salesperson should
cease any other activities such as personal conversation,
stock work, paper work and housekeeping work. The
salesperson should observe the customer's manner to
determine if he or she is hurried or relaxed so as to
become tuned into the customer.
It is important to listen to the customer to determine
preference for quality, quantity, color, size and price.
By asking questions, the salesperson can get a complete
picture of the customer's wants and choose the selling
point that works best. The salesperson must show an
interest in the customer and be able to help the customer
decide by talking about his or her pleasure, comfort,
profit, pride, etc.
Approaching The Customer
The salesperson's approach is intended to immediately
interest the customer in the products or service and let
the customer know you are there to help them. The longer
the customer waits for acknowledgment the less willing
that customer is to wait for service. The first few
seconds are critical for the salesperson to acknowledge
the customer and establish good positive interaction.
Salespeople fail to approach a customer for variety of
reasons which include:
-Collecting in groups and carrying on conversation.
-Overattentiveness to stock duties and display at the
wrong time.
-Fear to begin a sales conversation.
-Assisting another customer and ignoring the newly
arrived customer.
Any or all of these telegraph a message to the customer
that what the salesperson is doing is more important than
the customer. Customers have pride and their remedy to
this kind of reception may be to shop elsewhere.
In addition to being prompt, the salesperson should show
a sincere interest in the customer's needs and display
self-confidence about the merchandise and the store.
Greeting The Customer
Customers can instantly perceive whether you are
interested in helping them. The way something is said is
just as important as the words used in saying it.
There are several types of greetings which a salesperson
can use such as asking a question which cannot be
answered by the word "no;" stating a fact about the
merchandise; a friendly personal greeting, especially if
you know them; or conversing about local items of
interest, especially in small towns.
Whichever greeting is chosen, it should be natural,
courteous, short, and require no major mental decision on
the part of the customer, be affirmative, and emphasize a
desire to "serve" rather than a desire to "sell."
Show And Tell
A customer is interested in acquiring an item for what
the item can do for him or her. A salesperson must
always relate the product to the customer to get the
customer into the act.
Depending on the type of merchandise in the store, the
salesperson may either tell about the product or show the
product. Whenever there's a choice between showing and
telling, showing is recommended. The best demonstrations
involve:
-The customer being comfortable physically and
emotionally.
-Concentration of awareness--it is advantageous to
eliminate distractions by working within 4 1/2 feet of
the customer. Holding the customer's attention is like
landing a big fish--don't pull too hard on the line. The
customer needs time to think about what he is seeing and
what you are saying.
-Start with the end results, such as how the product will
be used.
-Get the customer involved: a good way is to hand the
product to the customer for his or her examination.
Features vs. Benefits
To succeed in selling a product, it is important for the
salesperson to know the difference between product
features and customer benefits. People usually do not buy
the merchandise for itself, but rather for the benefits
they can derive from it. Salespeople should stress the
benefits, which are what specific features of the item
will do for the customer.
A feature is an outstanding or primary quality
characteristic of a product or service. Examples product
features include:
-An electric knife makes meat carving more efficient.
-This pan is coated with silver stone which is easier to
clean.
-These shoes are light weight and durable.
A benefit is defined as anything that is advantageous for
the buyer, which improves a condition for the buyer or
promotes the buyer's welfare. Examples of product
benefits include:
-An electric knife makes meat carving more efficient.
-This pan is coated with silver stone which is easier to
clean.
-These shoes are light weight and durable.
Sales Resistance
The normal sales transaction always has two sides. The
customer not only must spend money to get some specific
article, but must also sacrifice other pleasures or
satisfactions which that money would buy. This logical
weighing of satisfactions may exist when the choice is
between unrelated possibilities such as merchandise and a
vacation as well as in choosing between two competing
brands of goods. The customer naturally wants to purchase
the article that gives the most value for the money.
Sales resistance is really the customer's normal way of
weighing values.
Excuses vs. Objections
Sales resistance can be classified as either an excuse or
an objection. Excuses are insincere reasons offered by
the customer who does not want to become involved with
the salesperson. Objections represent honest points of
difference between the customer and the salesperson.
Excuses
Excuses frequently occur: (a) early in the sales process
when the customer is only looking or when a salesperson
attempts to sell merchandise other than that asked for by
the customer and (b) after the selling points have been
made indicating either that the salesperson failed to
arouse interest or that the customer has some hidden
objection.
Excuses are raised in order to:
-Prevent the salesperson from properly showing the
merchandise.
-Avoid a feeling of obligation to the salesperson.
-Procrastinate, defer, or put off a decision to buy.
A few examples in which excuses are expressed by the
customer are:
"I really haven't got time to look now."
"I don't think I'm interested."
"I'll think it over and come back later."
Objections
Objections indicate a desire on the part of the customer
to learn more about the merchandise. They are honest
reasons for not buying and show a direct relationship
between a desire to satisfy a need and a natural
reluctance to sacrifice money.
Customers may object to the merchandise, the manufacturer
or brand, related store services, whether they need the
merchandise and the price of the merchandise. Most
customers have definite price limitations and form price
habits in buying. Therefore, if something is priced
higher than they are accustomed to paying, they want to
know why.
Common objections often heard result from five situations
in which the customer:
-Was not listening when the salesperson covered the
point.
-Is unfamiliar with the product but does not want to
admit it.
-Does not believe the salesperson.
-Cannot afford the price, but will not say so.
-Never intended to buy--but was shopping for information
or companionship.
Salespeople should welcome real objections because they
are an indication that the customer is interested and/or
that the customer is attempting to justify the purchase.
In fact, there is an old adage which states, "The sale
does not begin until the customer says no."
Three rules are suggested for handling objections:
-Recognize the right of the customer to have them. Do not
counterattack, but rather acknowledge the customer's
point of view before making your own point.
-Listen to what the customer is saying. Is the customer
offering a logical explanation, acting out of doubt and
uncertainty, in need of further explanation or
information, or unable to relate the merchandise benefits
to his or her needs?
-Maintain flexibility so that you can show the customer
merchandise of a different price or quality.
Suggestive Selling
Suggestive selling is one of the best ways we can
increase sales. Suggestive selling may be used to start a
sale, while demonstrating a product or at the end of a
sale. Displaying and/or demonstrating related items
together helps the customer visualize the functions or
qualities of the merchandise and assists in suggestive
selling. Suggestions can also be made by informing
customers of items in other areas or departments of the
store, by promotional cards or letters and by telephone.
Suggestions should be positive and explain or relate the
merchandise to the customer or other merchandise.
The types of merchandise that can be suggested include:
-Compatible merchandise---related or accessory items
which enhance, accentuate, contrast, or can be used with
other merchandise.
-Fashionable merchandise- newest or latest styles, fads,
best sellers, and quality merchandise.
-Promotional or stand merchandise -items marked down,
special price or value items, larger quantities or
seasonal merchandise.
Closing The Sale
Closing the sale is getting the customer to make a
commitment to purchase the merchandise. It occurs when
the customer seems ready to buy--when you have finished
demonstrating the merchandise and all of the questions
have been answered.
If the customer does not indicate that he or she will
purchase the merchandise, the salesperson can offer to
close by suggesting additional merchandise or a question
such as "Is this cash or charge?"
Customer Service
For many customers, the purchase of the merchandise is
not the only consideration nor the end of the
transaction. Customer service is important throughout the
selling process and after the sale. Customer service
entails sincerely doing something extra for the customer
so that he or she can see by your actions that you are
willing to help. After the sale, customer service
requires listening to the customer to determine the
course of action to be taken. It is recommended to focus
on what "can" be done for the customer rather than what
"cannot" be done for them. It's also a good idea to keep
a notebook or record of promises and dates when you are
to follow through. For more information on handling
customer complaints see Extension Circular EC-813,
Retaining Customers By Handling Complaints.
Summary
Good customer treatment by salespeople does not insure
that the customer will continue patronizing your
establishment, but it will contribute in creating a
favorable inclination to do so. The customer should be
made to feel comfortable and important because he or she
is the reason for you being in business. A cardinal rule
in your business should be that "customer service takes
precedence over any task in the store."
References
Rosenbloom, Bert. "Improving Personal Selling in Small
Retail Stores," Management Aids No. 4014, Small Business
Administration, Washington, D.C., April, 1981.
Small Business Administration, "Business Basics---
Managing Retail Salespeople."
Stone, Kenneth E., "Salesmanship For The 80's,"
Cooperative Extension Service, Iowa State University,
Ames, Iowa.
Stone, Kenneth E., "Are Your Salespeople Missing
Opportunities?" Business Management Newsletter,
Cooperative Extension Service, Iowa State University,
Ames, Iowa, September, 1978.
White, Donald, "A Step Ahead--Business Management
Newsletter, Personnel Management," Cooperative Extension
Service, Cornell University, Albany, NY, May, 1976.
This information is for educational purposes only. References
to commercial products or trade names does not imply
endorsement by MSU Extension or bias against those not
mentioned. This information becomes public property upon
publication and may be printed verbatim with credit to MSU
Extension. Reprinting cannot be used to endorse or advertise
a commercial product or company.
This file was generated from data base TD on 09/30/03.
Data base TD was last revised on 06/06/02.
For more information about this data base or its contents please contact
alexande@msue.msu.edu . Please read our
disclaimer for important
information about using our site.