Notesale: Turn your study into money

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Conor Cunningham P3 M3 D2

Task 1 Part A
a) You are to conduct research and produce an informative report, which will form the
basis of a future article into three different types of retailer which explains how
focusing on the customer, by providing good customer service, is essential to
retailing
...


The retailer’s customer service policies and how these are applied at
operational (store) level

ii
...


What elements of the policies happen before, during and after a sale?

iv
...
The way in which retailers carry out
customer service at operational level will also be investigated
...
Customers are seen to be the most important stakeholder in any business and
if a business can get the attention of its customers, they will acquire customer retention in
return
...
If a customer is looked after and
is treated professionally, in the way in which they want to be treated, customers will return
to the business
...
However, it is extremely important to provide customer care which will retain
existing customers as well as build customer loyalty
...

In this task, the author will identify three examples of retailing
...

The businesses will be compared and contrasted throughout
...
It has
grown to become one of the UKs largest retailers
...
As well as the online website, these stores provide for more than 33
million customers
...
In total, M&S has over 83,000 employees
...
In my research, I found out
that M&S try to provide a quality service which is of high quality and will result in a great
deal of customer satisfaction
...
We will not compromise the safety of our customers and will always strive to
live up to and offer the highest possible standards of Quality, Value, Service, Innovation and
Trust
...
We welcome customer feedback and try wherever possible to act on it to
continually improve the service we offer
...
Information that we hold about our
customers will be handled properly and responsibly
...
”
The M&S mission statement reinforces their aims, which include what they want their
customers to see “To be the standard against which others are measured, to make
aspirational quality accessible to all and quality value, service, innovation and trust
...
marksandspencer
...
marksandspencer
...
pdf

Conor Cunningham P3 M3 D2

Example 2; Tesco
Tesco is a multinational grocery and general merchandise retailer founded in 1919 by Jack
Cohen, a market trader in London
...
Tesco is the UKs largest retailer: it has around 7,000 stores and
nearly 600,000 employees, nearly half of those staff are in the UK
...

Through building new stores, renovating existing stores and a professional website, Tesco is
known as one of the fastest growing retailers in the world
...
Tesco customers are made feel valued, appreciated and respected both in-store
and using the website
...
Giving First Class Service is the most important
aspect of our business and we take every opportunity to listen to our customers' views
...
Last year we held 115 customer question times
where we met nearly 9,000 customers
...
”
The mission statement of Tesco identifies their approach to communities and the
environment as the aim of their business and their purpose is ‘to create value for customers
to earn their lifetime loyalty’
...
tesco
...
html
http://www
...
com/news/a-brief-history-of-tesco/

Conor Cunningham P3 M3 D2

Example 3; Dunnes Stores
Dunnes Stores is a retail chain that primarily sells food, clothes and household wares
...
Dunnes Stores are Ireland’s largest and leading retailer, providing a unique
offering of fashion, food and homewares in one location
...

Dunnes Stores success is the result of customers being satisfied with their high quality
products
...
Our aim is to bring you an unrivalled
selection of fresh food, alongside specialist lines unique to Dunnes Stores, like our delicious
Simply Better range
...
”
Dunnes Stores, “giving you back better value
...
dunnesstores
...
dunnesstores
...
It is a
method of examining the relationship between business and
customer
...
CRM identifies target market, customer audience and
the needs and reviews that customers have to support
business development
...
These levels include;


Operational level; this is concerned with
meeting business objectives and looks at the
customer service aspect of the business
...
For example, sales, returns policies,
loyalty cards and any events which are
planned
...
It also provides information to
the operational level regarding the
procedures that must be followed
...
An
example of what happens in the operational level would be the agreement on the
procedures for returns at the till/counter
...


Conor Cunningham P3 M3 D2

Dunnes Stores
Operational Dunnes Stores work hard at
operational level to be polite,
level
welcoming and helpful to their
customers
...

http://www
...
com
/head-office/content/fcpcontent

Tesco

Marks and Spencer

Tesco strive to produce a good
image at operational level
...
Tesco usually have
plenty of staff on the shop floor
to help customers
...
They are in convenient
locations, typically have large car
parks and have helpful, friendly
staff
...
They have friendly staff and
provide luxury items
...
Their prices
are a little higher than both Dunnes
Stores and Tesco
...
M&S
offer;





Efficient services
Customer returns
Luxury food/clothing
Excellent training on the
frontline

http://careers
...
com/care

http://www
...
com/investorIn ers-at-m-and-s/in-store/store-operationsformation/report95/corpobj
...

They train staff below them and
make sure that the operational
level of service is being carried
out well
...


Tesco have many departments
within the company
...

Tesco has duty managers and line
managers which ensure that the
operational level is up to the highest
possible standard, which in return
results in the return of happy
customers
...
The functional
level of Marks and Spencer ensure
that all staff are succeeding on the
shop floor, that their attitude is right
and that customers are satisfied
with their service
...

 Focused and driven by
customer service
 Look at ways to improve
service
 Information is disseminated
to all staff

Conor Cunningham P3 M3 D2

Strategic
level

Dunnes Stores is a large,
successful chain of stores which
comes from many successful
decisions from the strategic level
...
For
example, they would decide if a
new store is to open, the prices of
goods and any new clothing lines
which may help the business’
success
...
The strategic level
involves a lot of hard work
...
They will plan future
incentives, analyse customer
spending, plan for events and
holiday seasons as well as
investigating local
producers/suppliers
...
For
example, below is the Tesco website
on Black Friday
...


Above is an example of a decision made
by the strategic level of Marks and
Spencer
...

The strategic level would have to work
very hard as Marks and Spencer is such a
large organisation so any major decision
would affect a number of stores
...
They
make sure their deals are current and
original
...
This may be more important in some
retail operations where quality and luxury items are involved
...
For example, impression created by manner, training, appearance of
staff
...
Each operations policy
will indicate and reflect this from operational level to strategic level
...

Before the sale
Good response to queries; M&S are excellent with customer queries, ordering and returns
Clean, tidy store; Store should be clean, tidy and safe
...
They are always there to answer any questions
any of their customers may have
Tidy displays; the store should be welcoming and make the customer feel comfortable
throughout
Cash machines; Banking facilities and cash machines provided in some major stores
...
e
...
For
example, Curry’s and 02
Loyalty/reward cards; In order to attract new customers and retain existing ones, loyalty
cards are being introduced
...
For example, M&S or an electrical guarantee on a washing
machine in B&Q
Fast and efficient payment; Stores are introducing touchless cards which makes the
payment faster and more convenient
Short checkout queues; Stores should have a small waiting time which adds to the quality of
the service of the organisation
...
Argos excel in this as they identify for you
which items are in stock and how many are available
Good response to queries; all major stores offer advice on operations of items and the
content of clothing
...
Customers should
feel valued and appreciated so all stores should thank their customers as well as saying
goodbye
After the sale
Handle complaints effectively; Businesses must be able to handle complaints in the correct
manner
...

M&S are a company known for handling complaints well
...
For example, Hardys Electrical in
Kilkeel may replace a washing machine if it breaks, provided the breakage meets the terms
and conditions
...
This is usually carried out by a short questionnaire or
survey, or even by simply asking the question in store
...

Excellent procedures for returning and exchanging goods; Companies like Tesco and M&S
have good procedures in place for returning and exchanging goods
...
For example, in Newry, some
businesses were actually put out of business as a result of customers wearing clothes and
taking them back because they “didn’t fit”
...
For example, Volkswagen may alert their
customers when a car is due to be serviced
...
Tesco staff for
example may suggest complementary products when a customer asks for an item
...

Money off vouchers in post; Companies may issue coupons in the post to loyal customers
or even in the newspaper
...

Customer service does not end when the customer leaves the store
...
As a response, retailers encourage further purchases and
foster long-term customer relations
...
Currys offer this support system which is
highly favoured by its customers
...

In order to be successful, to sell products well and to become profitable, these three
businesses must have staff which have selling skills to carry out the sales process
...
This comes
around due to the fact that their staff are highly trained, polite and professional
...
They have staff which range from all ages
...
Tesco have now adapted “link-selling” which will also be explored below
...
To succeed in this aim, they must
provide an excellent level of service which comes from staff who have the best skills when it
comes to selling goods and providing the service
...

The employee should regularly familiarise themselves with the products in-store so
that they can deal with any queries which may arise
...




Be enthusiastic about your products; A skill which is vital in the sales process of any
product or service is enthusiasm
...
They should not be bored talking about a product which
would turn the customer against buying it
...




Be friendly, not oppressive; Marks and Spencer, Tesco and Dunnes Stores are three
establishments who are known for their friendly, helpful staff
...
The employee
should be friendly and should want to help the customer with anything they are
unsure about
...

Manners and politeness are essential in retail and an employee asking a customer
“How are you today?” could be the difference in repeat customers and no
customers
...
It is a skill which
encourages sales and subsequent growth of any business
...
For example, if a customer asks a Tesco employee to show
them where they would find birthday cakes, once that product is found, the
employee could ask the customer if they need any birthday candles for the cake
...




Positive attitude; In any organisation, it is important that employees exude a
positive attitude in all parts of their job
...
Customers notice the attitude of employees in any store so to increase
customers and improve the corporate image of the business, having a positive
attitude is essential
...
Nothing should be left unfinished as this will be the first thing

Conor Cunningham P3 M3 D2

that customers will notice
...
Attention to detail is a skill which is so important in
the sales process and indeed in retail
...
Employees should love customer interaction and not be
nervous or afraid of people
...
If an employee in Dunnes Stores was employed and was later seen
to be nervous around people and not be a person-orientated individual, they may
actually be made redundant
...


Task 1 Part B
b) The second section of your report must go on to explain the ways in which sales
techniques and customer service have developed in retail organisations
...


Knowledge of the key elements of effective service and selling skills

ii
...
For
example, Debenhams & Topshop
...


Why do different types of retailers have different levels of customer service?

iv
...


Introduction
This section of the report will explain the ways in which sales techniques and customer
service have developed in retail organisations
...

Knowledge of the key elements of effective service and selling skills
In any organisation, customer service is extremely important
...

Excellent customer service begins at the initial greeting of the customer, whether that be
face-to-face, email or on the phone
...
When an employee doesn’t acknowledge
the customer, or makes them feel like an inconvenience, the customer will immediately feel
unappreciated and unwelcome
...
Customer service is an element which must be incorporate into any business
if they want to grow their customer base, expand and become successful
...
This is a selling skill which relates significantly to customer service
...
The customer should feel totally calm when in contact
with an employee of an organisation
...




Attentiveness
...
Not only is it important to pay attention to individual customer interactions,
but it’s also important to be mindful and attentive to the feedback that you receive
as well
...




Clear communication skills
...
Keep things
simple for customers and add as little confusion as possible
...
Communicating
clearly can be the difference in selling a product to a customer, and the customer
never coming back to the store again
...
It is absolutely
essential that employees have product awareness
and knowledge of the product as they are the
people who have to sell it to the consumer
...
For example, if a customer asked an
employee in Tesco if a cereal contained nuts, the
employee should know the answer and not be
confused by the question
...
An employee’s ability to make minor changes in
their conversational patterns can go a long way in creating happy customers
...
Employees should be able to adapt to
different situations but must remain professional and helpful at all times
...
This a very common skill which must be adapted in providing a high
level of customer service at all times
...
However, every great
customer service employee will adapt basic acting skills necessary to maintain their
usually cheery persona in spite of dealing with people who are unhappy
...




Calming presence
...
They should possess the ability to stay calm and even influence others
when things get a little hectic
...
Quite often, when
an employee remains calm, the customer will also calm down too
...




Willingness to learn
...
Those who don’t seek to improve
what they do, whether its building products, marketing businesses, or helping
customers, will get left behind by the people willing to invest in their skills
...
As they improve, they can
become better and better at selling products which can help the business become
more profitable
...
These different levels must
work together to ensure that the company is operating
smoothly
...
Customer
Relationship Management (CRM) will help these different levels
do that
...
All
businesses must be involved in CRM in order to exist, develop and grow in business
...
Then, the operational level
will carry out this procedure
...
For example, the operational
staff asking for customer feedback on the tills
...

For any business, securing sales and encouraging return business is so important
...
Some of the elements

Conor Cunningham P3 M3 D2

of selling skills such as patience, attentiveness, attention to detail and professionalism are
some of the traits which employees should exude when they’re in business
...
An example of this in
action would be with First Direct Bank
...
Everything they do is done for the best benefit of the customer and that is why
they have the highest rate of customer satisfaction amongst banks
...

A comparison of the customer services of two different types of retailers
Different organisations will have different approaches to customer services
...
Debenhams is a British multinational retailer operating under a
department store format selling clothing, perfume, electricals and furniture
...


Both organisations have websites and in-store shopping available and customer service is at
the heart of both practices
...
Debenhams go in to further detail about the customer services they
actually provide whereas Topshop have a contact us page which deals with any customer
queries
...
Both
organisations concentrate on customers and satisfy their needs better than competitors and
this has made these two businesses known for their high levels of customer satisfaction
...
The high levels of customer satisfaction at Topshop leads to satisfied customers
and repeat trade and because of this, there are currently almost 450 Topshop stores,

Conor Cunningham P3 M3 D2

Acquiring new customers can cost as much as five times more, than satisfying and retaining
current customers
...
Retailers invest a lot of money in collecting and using customer information
...
For
example, their purchase history and what products they’re interested in
...

Powerful databases now help retailers communicate effectively with customers
...
This is
called micro-marketing and is something Debenhams and Topshop have adapted
...
This builds a sense
of loyalty and certainly a rapport between the company and its customers and both
companies have increased their levels of customer service as a result of micro-marketing
...
In order for a business to be
favoured by customers, they should offer customer service before, during and after the sale
of a product or service
...

Before the sale;
Offering a service before the sale is what will ultimately be the difference in the sale going
ahead or not
...
They provide information as
requested by customers
...
These attributes
make the customer feel comfortable in the store which encourage them to make a purchase
with the company
...
They offer fast and efficient payment, short checkout queues,
the employees help customers find the product they are looking for
...

After the sale;
After a customer leaves the store, the service does not end there
...
They handle complaints effectively, they
ensure the customer is happy with the product and may even ask for a review of the
product
...
For example, clothes

Conor Cunningham P3 M3 D2

that do not fit
...
This may
be after a sale in an attempt to attract the customer to return
...

Both Debenhams and Topshop have similarities in their approach to customer service
...
They have done
this effectively as they are two organisations which are known for their high levels of
customer service and happy, satisfied customers
...
Some businesses deal with
customers a lot more personally than others
...

Customer service is vitally important across the retail industry
...
Retail customer
service strategies vary between larger chains and the smaller independents
...
Whereas, in smaller
independents, the customer is seen as more of an individual
...
A significant number of retailers also operate
by rewarding their staff for recognition on excellent customer service skills
...
The
employee’s reaction to the customer and the way in which they deal with the customer will
be evaluated and a score will be given to that particular store
...
As previously stated, in larger organisations, there is a general
procedure for the way in which customers are treated and issues are dealt with
...
Both ways of carrying out customer service are
effective
...
There may be higher levels of customer service in a franchise like McDonalds
where there are company standards in place and in a small privately owned coffee
shop
...
The type of product or service a business sells may change the
level of customer service
...
For example, when a customer purchases a TV, it

Conor Cunningham P3 M3 D2

may be delivered and set up by the company and after sales service will be available
such as customer support
...
Sometimes, although not always, customers with a larger turnover may
have more levels of customer service
...




Sales
...
High levels of customer service will have an impact on the
amount of sales in a business
...
When there are more levels of customer service, this leads
to happier, more satisfied customers and sales will increase as a result
...
One thing they all have in common and which keeps them operating
is the customer service they provide
...
Each organisation will have to adapt customer service elements
which are vital to growth and success of the company
...

Define the types of changes taking place in the industry and the causes of these changes
The retail sector in the UK involves spending by consumers both in shop and online
...
In March 2015, UK consumers spent around £34 billion
...
The remainder was spent in food stores,
on things like fuel and in market stores
...

Retail generates billions of pounds ever year
...
This was approximately 11% of the total UK economic output
...
However, due
to the recession which hit in late 2007/early 2008, the retail sector declined significantly
quicker than the whole economy
...
It can be seen that the trend in economic output
of the UK, and the economic output of the retail sector in the UK are related
...
This can be seen in the graph below
...
For example, the transition to shops on the
high street moving online
...
A lot of changes within the industry may challenge;
Multi-channel retail; Business now sell goods and services using many different channels
...
You can buy products in-store and online
...
This has opened up businesses, allowing them
to explore more markets and more customers, increasing their sales and profits which help
them to grow
...

Mobile shoppers; Mobile shopping is growing and growing and has become huge in the past
decade
...
This is gaining popularity recently as customer’s search for the best
deal
...
70%
of shoppers are more likely to buy from businesses offering mobile commerce websites or
dedicated smartphone apps
...
To remain competitive,
businesses need to look at multi-channel retailing
...
The internet has actually caused some businesses to
change their products and services and has forced other businesses to dive in to the Niche
market
...
There are many different types of ownership in retail and factors which decide on
the ownership include the type of store, the brand and the product being sold
...
The functions
encourage the return of customers which boost sales and subsequently overall profits
...

Task 1 Part C
c) The final section of your report will assess the impact of different sales techniques
and customer service in a selected organisation
...


An assessment of how the sales techniques and customer services used
impact on the customer
...


What future customer services could be offered
...


iii
...

This provides evidence for P3, M3 & D2

Introduction
This final section of the report will assess the impact of different sales techniques and
customer service in a selected organisation
...
An assessment
of how the sales techniques and customer services impact on the customer will be assessed,
as well as what future customer services could be offered by the selected organisation
...
Customers will become more satisfied and will be more
loyal to the business in return
...

If a customer enters a store with unfriendly, unhelpful staff, they will most likely not return
to that store and custom will be given to another business
...
An example of how a sales technique has
affected customers would be Tescos introduction of club cards
...
7% as a result of club cards being introduced
...


From www
...
com, customers can write reviews about their experiences with
selected organisations and Tesco has excellent customer reviews
...
This is a result of Tesco providing excellent customer service such as;


Good response to queries; Tesco are excellent with customer queries, ordering and
returns
...




Clean, tidy store; Store should be clean, tidy and safe
...
Having a clean store provides a better shopping experience for
customers of Tesco and by providing this, customers will be more inclined to shop
with Tesco
...
They are always there to answer any
questions any of their customers may have
...
Tidy displays should be present both inside and outside the
store
...




Parking; Tesco are known for their excellent parking facilities
...
It can be the
difference between customers coming to shop in a store or not
...
This is an excellent way to get customer to return
and encourages the return of customers
...




Fast and efficient payment; Stores are introducing touchless cards which makes the
payment faster and more convenient
...




Good response to queries; all major stores offer advice on operations of items and
the content of clothing
...
Complains should be handled effectively, with the customer’s
interests in mind
...




Ensure customer is happy with product; Customers should be asked how they felt
their experience was with the business
...
Tesco
employees often ask customers “Is there anything else I can help you with today?”
which ensures the customer leaves satisfied with the product as well as the service
...
This builds a rapport with the customer and
they feel they are getting a bargain in the store so will be more likely to shop with
the company
...


Tesco, Marks and Spencer and Dunnes Stores are three organisations which have grew to
become successful in the retail industry
...

This has helped all three organisations, particularly Tesco to become the dominant business
in the market
...

What future customer services could be offered?
Retail has changed dramatically over the last 50 years, from stores closing on the high street
and opening up online and developing their use of e-business
...
It is an industry which is constantly changing and businesses are
always changing to become more competitive
...

Future customer services
Tesco can extend their range of customer services in order to increase their levels of
customer satisfaction
...
Tesco must plan for the future and create new customer
services to set themselves apart from major competitors such as ASDA and Sainsbury’s and
to gain the most competitors
...
They
should develop more personal approaches to the
way in which they interact with their customers
...
Tesco should operate more “human
approachable”
...

Mary Portas has worked in the UK to give customers the service they deserve
...
By 2020, retailers will need to transform themselves and adapt to an increasingly
polarized world of greater channel fragmentation, non-store retail growth, smaller formats
and retail footprints that may not involve physical stores at all
...
Tesco is a company which has explored e-commerce
and has extended its customer services into social media
...

To drive future growth, Retailing 2020 outlines the critical success factors for retailers and
suppliers to manage the complex and diverse realities of the retail industry in 2020
including;


Total value chain

Conor Cunningham P3 M3 D2






Competing on a global level
Branding
Marketing
Managing diverse retail models

Tesco has to develop customer services for the future
...
For example, Tesco extending their product range
online
...
This
would be excellent for the consumer as they do not have to travel to their nearest store to
shop
...
This makes the shopping experience quick and efficient for
Tesco customers and leads to higher levels of customer satisfaction as well as building
Tescos relationship with its customers
...
Retailers are recognising
the benefits of working together both in an attempt for differentiation and for providing a
better service for the customer
...
For example, Tesco
teaming up with banking companies to offer PayPal on their website so that customers are
able to pay for goods online safely
...
Relationship marketing is becoming a popular trend in business and it is seen as
being cheaper than having to advertise products
...

Race for the most convenient store experience; Tesco, ASDA and Sainsbury’s are three
companies which are very similar
...
Tesco may change the layout in their stores so that their
stores format is more favourable than its competitor’s stores
...

Customer loyalty; Customer loyalty is set to change in the future
...
In the future, businesses like Tesco may change the way in which
they carry out customer loyalty operations
...
This is the way in which
retail is predicted to go and it’s amazing how much businesses are beginning to cater for
and thank their customers for their support
...

Half of shoppers are influenced by a
retailer’s ability to provide convenient
collection points for online purchases
...

From one-click to no-click; This is a trend predicted to come within the next twenty years
...
This
goes to show how much technology has an effect on the ever changing retail industry
...
planetretail
...
Below are some reasons why
organisations need to revise customer service;
Maintain turnover
...
An increase in sales
will ultimately result in a higher turnover for the company as a whole
...
Tesco are known for their high levels of customer service
...

Increase profit margins
...
This increase in sales means profits will also increase
...
Regularly revising and improving customer service
will mean that customers will keep returning to Tesco as they know their needs are being
met
...


Conor Cunningham P3 M3 D2

Continue to secure customer loyalty
...

Explore opportunities on how to connect with customers and obtain feedback
...
They can
help Tesco decide which customer services they can introduce next and the services that
their customers are making use of
...
By evaluating the successfulness of the different
customer services, Tesco can see if customer needs are being met and necessary changes
can be made if they need to be
...

Training of personnel to include other services
...
This will ultimately lead to staff improving their skills in different areas and may
allow specialisation in the business, improving services for customers
...


Why is revising customer service appropriate for the future?
Revising customer service will affect the future performance of the business
...
Improved
customer services mean happy, more satisfied customers who will be more loyal to the
organisation
...
Some reasons why customer service is appropriate for the future
include;








Customer service will adopt a mobile-first mind set
...

Insights from connected devices will trigger a higher standard of service
...

Predictive analytics will power strategic decisions
...

The customer service technology ecosystem will consolidate
...
Tesco will revise their
customer services so that in the future, the company can remain profitable, grow and
dominate a larger share of the retail industry and indeed the many markets in which they
participate in
...
Tesco, Dunnes Stores and Marks and Spencer were looked at throughout this
report and their successfulness in providing customer services was studied
...

The report then went on to explain the ways in which sales techniques and customer service
have developed in retail organisations were investigated
...

The final section of the report assessed the impact of different sales techniques and
customer service in Tesco
...

Appendices
http://blog
...
com/2011/04/28/6-tips-for-selling-more-merchandise-at-your-retailstore/
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