Workstar

24 January 2008

Recently I decided to buy an LCD TV. I had seen some television advertising, done some internet research and even engaged with my friends in a Plasma versus LCD debate. When I hit the shops I had a couple of options in mind, however, I actually left with something completely different. Why? Because, in the complex sales process of electronic retailing, staff on the floor can make or break brands. The human connection made between the store staff and the consumer is more powerful than any advertising.

A well informed member of the sales team is equipped with the skill to up sell, highlighting key features and functionality across a range of products. A less informed and astute sales person on the other hand will tend to offer discounts upfront to secure the quick sale. More often than not, the salesperson is not to blame however, with traditional training methods letting retailers and suppliers down by not providing product knowledge training so important to a positive purchasing experience.

Add to that, the fact that on any given weekend, chances are that at least one out of every four customer service people is a 4-hour a week casual with less training and experience, and there is a good chance that your consumers may be more savvy then your store staff. After all, they have probably spent the last week trawling internet sites for up-to-date product information.

For both suppliers and retailers of electronic goods, this is problematic for profits.

For suppliers, brands are being unsustainably, over-exploited by everyone. Consumers are being educated that they can get the brand they want by playing off multiple retailers to get the cheapest price. Haggling has not only become very common, but it is now almost expected. Differentiation is proving more difficult to assert and without differentiation comes the symptom of price.

For a retailer, a consumer wants not only to touch a product, but also be reassured in their purchase decision by a well informed and articulate salesperson. They desire not to be stalked and treated as a quick sale target, however, they want to be assisted and knowledgeably advised.

While the supplier can attempt to create some brand engagement before the customer enters the store and the retailer can create some impact with their choice of product mix and overall store environment through visual merchandising support and buying-selling negotiations, the "hot-point" is the store staff where the consumer's human interaction takes place. This is such a vital step as it is where the brand comes to life and the consumer is given the opportunity to actively engage with the brand.

Retail success is created by leveraging the genuine desire of store staff to achieve and combining it with the tools to provide ongoing structured online learning, training and support to produce increased staff competency resulting in optimised profit results - profit growth rates which are sustainable in the long term.

While face-to-face sales conference and product briefings can gee up a group, they are often expensive and time consuming. A sales conference is a good tool for outlining the product release roadmap for the next six or 12 months, and it may even provide suppliers with a platform to educate the sales staff on the products, but how much of this actually works? Arming an individual through an online learning platform can not only provide a feeling of empowerment it can cut down face-to-face training costs and give you more visibility into training outcomes. Online courses can include a test element so you can ensure the message has been understood.

Instead of perpetuating a model which inevitably leads to the undermining of brand magnetism through a single dimensional focus on price, suppliers and retailers should seriously think about investing in the creation of an informed sales force of brand ambassadors.

It's time to get hot at the hot point.

About Retailstar

Retailstar is the specialist retail brand of Workstar Pty Ltd.

Many of the region's leading employers use Workstar's award winning technology, learning content and consulting services to deliver increased sales, productivity and compliance, whilst reducing training and recruitment costs. Workstar has also been awarded major national and international multimedia projects in education and training and has received global recognition for its solutions and impact on business success.

For further information contact retailstar@workstar.com.au