Retailers Try Selling Stuff

There’s only so much cutting any retailer can do to prop up the bottom line.
Eventually, merchants need to move the top line upward and that, according
to a Wall Street Journal article, is why an increasing number of companies
are investing in training and adding financial incentives to get store staff
selling again.
J.C. Penney has given workers bonuses to promote greater customer service
and the sales that come with it. "We really want to drive the top line,
and we think the best way you can do that is by increasing customer service," Mike
Theilmann, executive vice president of human resources and administration for
the chain, told the Journal.
The department store has also planned a three-day conference to improve the
sales skills of managers, hopefully something they can pass on to staff. Managers
will take part in one-hour sessions on how to sell products in a variety of
categories in Penney stores including clothing, furniture and jewelry. Managers
will come out of the conference with an "action plan" for improving
sales in each category, according to the company.
Home Depot is also looking to translate better customer service into sales.
The company now puts its cashiers through a training program that sales associates
complete. Cashiers are trained to find out if shoppers found everything they
were looking for and, if not, calling appropriate departments to find a product.
Thomas Spahr, vice president of learning with Home Depot, told the Journal, "It’s
about building a strong relationship with you, so you come back, and that results
in improved sales."
Discussion Questions: How would you rate the general level of selling skills
in retail stores today? What are the keys to selling at retail and how do
successful companies achieve high levels of performance across the organization?
Join the Discussion!
23 Comments on "Retailers Try Selling Stuff"
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Even though I’m a technologist by trade, I am delighted to see the era of self-service as a proxy for customer service winding down. It used to make me laugh when people said “Yes, self-service has worked really well in the airline industry…we should adopt that model.” Doing something yourself because you want to avoid awful lines is not a satisfactory customer experience. It’s a survival technique.
The difference at Home Depot is palpable, and I hope to see improvements at retailers who think they’re already good (you know who you are!).
Opportunity knocks–the recession has elevated the talent pool available to work in-store. Here’s hoping retailers are serious.
The question is too broad to answer correctly. What we can say is that–for many price oriented formats–sales skills are lower than they should be. But, even here, there are exceptions. Best Buy promotes better sales skills by not offering commissions. Other retailers, like J.C. Penney see bonuses as a great tool for building sales.
It all comes down to two things–good hiring policies and great training. Hire the right folks and tell them what you want–and how they can get it for you–and you’re a lot closer to solving the sales “problem.”
Asking a customer to buy something is completely different than selling through service. The later may get a consumer to buy an additional item, but the former has the potential to build a relationship, and retailers need to rebuild relationships.
It would be a pleasure to see great customer service become a part of the DNA of many retailers, but I doubt it will happen. A three-day course for managers will not inspire sales associates. Great customer service starts at the top and succeeds when everyone connected with the store will accept nothing less. How many retailers are willing to invest the time and financial resources to do this?
Asking, “Did you find everything OK?” is not selling or customer service, it’s damage control. To really grow sales, you have to have a sales process that is proactive, not reactive. And to get true buy-in from employees, they have to understand that shoppers personalities dictate how to engage them which I cover in my new book http://www.retaildoc.com/guide May 3.
Great idea–if you can differentiate the programs that work from those that don’t. Given the lack of focus on selling skills in most current retail hiring and training processes, the general level of associate selling skills is low. If anything, associates have been focused on service, not sales.
The right hiring and training programs might make a difference. The good news is that this economy should be a tailwind, as retailers can get better and “hungrier” staff. The bad news is that the vast majority of training efforts fail to produce real change. The retailers that do this right will need a way to track changes in behaviors and in associated sales dollars following the programs. They’ll also need to test multiple programs, to really understand which work (rather than gold-plating some good-sounding but unproven program).
P.S.: I love the headline. “Trying to sell stuff” – brilliant idea! Why didn’t I think of that?!
Knowledgeable, customer service driven sales staff in a retail store is almost impossible to find. There are a few stores (Home Depot, Whole Foods, sometimes Best Buy) where this can exist, but it is still not a true reality.
To say that this has hurt retailing is an understatement. However, it is also a sign of the times. We are a more sophisticated, research driven (and product-focused) consumer. We know what we want, why, and often how much it should cost. This is what drives online purchasing and decreases the retail dollars being spent in the brick and mortar world. It is obvious what should be done here…it is not to invest more in customer service (although this would not hurt), but instead to support the consumer’s demand for more access through the internet, and to keep the online and in-store costs as low as possible (thus lowering prices).
Too many retailers leave so much money on the table every day simply because the front line staff doesn’t know how to sell effectively. As we always say, ‘good service isn’t necessarily good selling, but good selling is always great service’.
It just isn’t that hard to get your staff to sell an extra item to a customer, or to close one or two more customers each shift. The result is almost always a 5 to 15% jump in sales. The keys to making this work? Proper hiring, comprehensive and continual training, effective coaching, increased accountability for performance and an environment that rewards and recognizes top selling performance.
The good news is that more and more retailers are jumping on this logical bandwagon in order to sell more ‘stuff’. We’ve never been so busy.
Sell has been a four letter word in retail for some time. Sales techniques and behaviors have been berated and linked to schlocky retail and have been pretty much eliminated and replaced by people who greet you on the way in and take your money on the way out. Or, my favorite, self-service as customer service!
I will admit that selling at the hands of poorly trained amateurs is not pretty and can be downright abrasive and unpleasant. On the flip side, however, a well selected well trained sales person is a symphony of engagement and service, and they improve the top and bottom lines. Retail is wise to get back to the business of personal engagement and yes, selling, by implementing training and the behaviors that drive real top line sales growth and incentivizing talented people to take up the profession.
In a world where many retailers carry identical merchandise, personal selling should be an important tie-breaker. The irony is that frontline salespeople who don’t see their offering as special or superior lose pride in the craft of selling. They know shoppers will research and simply choose on price, so why not just send them to the web for product info and comparisons?
Sales training, bonus programs, and renewed focus on selling skills are all terrific. The organization is energized, the service on the floor improves, and there is usually a bump in sales. Over time, however, these programs almost always fade and the sales floors, especially in the lower volume stores, returns to the state that we all bemoan.
The reality is that, while these programs are terrific, they don’t add the essential ingredient for sustained success–time. For these programs and new-found skills to be successful, the associates must have the discretionary time to utilize them. With the retail landscape over-stored and internet sales rising, sales per square foot and, consequently, associate hours have fallen to levels that barely cover essential operating tasks–receiving, restocking, floor moves, promotional setup, etc, etc. Expecting that associates who are barely able to keep the shelves stocked are going to suddenly become terrific sales associates because they attended a program is optimistic at best.
It is interesting to see “selling” more or less equated with staff. How can this be in a “self” service world? The fact is that self service is NOT going away. The key to selling more in a self service world is to realize that selling skills at self service were lost 100 years ago, when the massive increases in productivity of self service hit stores. It is possible to do a far better job of selling in a self service world. The challenge is to think selling, not just merchandising.
The Home Depot cashier training program, without knowing more about it, makes no sense to me. When have you ever been in a Home Depot that didn’t have lines at the cash registers? In a high volume store, which all HDs are, asking a customer if they found everything at the cash register is too little, too late. The cashier can’t hold up the line while trying to get someone from a department on the phone (good luck with that) to find the customer and bring up an item. And, interrupting the transaction and asking an impatient customer to stand aside isn’t a good plan either.
The only workable solution is getting more associates out on the floor, helping customers. And, that will cost real money.
Oh, we can only hope that retailers carry through with this! After decades of free money, which gave birth to too many stores, which in turn created weak and self-serving customer service, it would be a tremendous breath of fresh air–and more importantly, a reason to go back to retail–for the whole world of physical retail. Hurry up and make it happen!
“…three-day conference to improve the sales skills of managers … will take part in one-hour sessions on how to sell products in a variety of categories in Penney stores including clothing, furniture and jewelry.”
Yeah, that’ll really make for firing someone with decades of experience in order to replace them with a minimum-wager; then again, I suppose it’s a variation on an old song: something to nothing leaves something.
A lot of great comments. I agree that a three-day management training program or training cashiers how to follow-up isn’t going to instantly turn these people into successful sales people. At the same time I commend any retailer who is trying to improve their people and teach them how to better engage the customer. Kudos to them.
I believe the key to selling at retail and improving overall sales performance is getting everyone in the company more focused on the customer. Too many sales trainings are focused on the company’s needs and not the customers. Selling is quite easy when people care. Oh wait, there’s the hard part!
“Duh!”
Millions of dollars have been spent and millions more will be spent, again. All in the name of training, customer service, knowledgeable sales staff…etc.
Isn’t this what has been written about “ad nauseum” for years? Newspaper and magazine articles, blogs, and newsletters, etc, are written by the hundreds if not thousands every year regarding these very subjects.
Retailers really need to get out of the office and talk directly with their shoppers. More importantly, those who choose to shop elsewhere versus their store. Talk with your front line employees to understand the obstacles to success they encounter every day.
While the top management echelons are thinking this over, watch the new “undercover boss” show. Very telling….
It’s impossible to lump all retail together. The systems/processes of a car dealer are very different than the approach of a pet supply shop. Systems are necessary, and so are processes, but retailers who concentrate solely on those will never be remarkable. By definition a system or process results in a desired outcome–more often than not. That means, it bears an average output. Average is not remarkable.
Focus on add on sales and you can increase average ticket amounts.
Focus on closing ratios and you can increase revenues.
Focus on hiring people who can make connections, give them the tools to create art (selling should be an art) and watch them take an ordinary experience to remarkability. It can happen. It does happen. Every day retailers with sufficient courage find the way.