The average business invests just 2% of their total revenues into loyalty programs, and 5c per dollar into training their people. However, high staff turnover and low retention rates could effectively reduce the impact of this training investment to as little as 2c per dollar, severely undermining efforts to improve customer service, sales performance, and ultimately, customer loyalty.
The startling reality of just how little is invested into training people on the shop floor sets the stage for a critical examination of retail strategies in today’s challenging market.
55% of transactions are missing the opportunity to increase the overall value of the sale made.
For Australian CEOs, the message is clear: the key to survival and success lies in mastering two fundamental elements of retail – opening the sale and asking for the sale. These elements, when executed effectively, not only drive immediate sales but also foster long-term customer loyalty.
Mastering your sale is the key to customer loyalty and therefore, retail survival in challenging times.
Opening the Sale: The First Step to Loyalty
Opening the sale is more than just a greeting; it’s the critical initial interaction that sets the tone for the entire customer experience. In the face of reduced effective training investment, focusing on this skill becomes even more crucial.
Opening the sale professionally only occurs in an average of 60% of thousands of retail touchpoints experienced by customers.
The key components of opening the sale include creating a welcoming atmosphere as the customer enters your space and initiating a meaningful conversation that results in understanding the customer’s needs.
This leads to a better understanding of the customer’s intentions: are they there to compare or to buy? Knowing this will help your people pull back on overly pushy sales techniques that could damage a potential sale when you solve the customer’s problem.
Training Focus (despite limited resources)
- Approachability and body language.
- Active listening skills.
- Open-ended questioning techniques.
Skills to Develop
- Rapport building.
- Needs analysis.
- Adaptability to different customer Limbic personalities.
Impact on Loyalty
A strong opening creates a positive first impression, making customers feel valued and understood. This initial connection is the foundation of long-term loyalty, which is especially important given the limited investment in formal loyalty programs.
Asking for the Sale: The Moment of Truth
With the effective training investment potentially as low as 2c per dollar, mastering the art of asking for the sale becomes a critical
differentiator. It’s the culmination of the sales process and directly impacts revenue and customer satisfaction.
Highlighting a lack of skills, only 40% of staff ask for the sale – showing you could more than double your sales revenue by training staff on how to close the sale.
In essence, asking for the sale is the bridge between the presentation and the close. A well-executed ask makes the closing process more natural and increases the likelihood of a successful sale. Both skills are critical in retail, and mastering the connection between them can significantly improve sales performance and customer satisfaction.
Remember that even at comparison stage in the customer journey, the final intention is to buy the product. Whether they buy it from your store or from a competitor, their experience will determine where they spend their money.
Asking for the Sale
Asking for the sale is the crucial step where a salesperson directly invites the customer to make a purchase. It’s about transitioning from the presentation or discussion phase to the decision-making phase. This step involves recognising buying signals from the customer and summarising their need and the benefits of the products your recommended in your discussion.
It then proposes a specific action (for example, “Would you like to take this home today?”) and handles any final objections or hesitations about the recommendations made.
Closing the Sale
Closing the sale is the logical (and final) step in the sales process where the transaction is completed. It involves confirming the customer’s decision to buy once all objections have been managed.
This includes finalising product details (size, color, quantity, etc.), discussing payment terms and methods, completing the actual transaction, and providing the customer with value-added after-sales support by offering follow-up information (warranties, care instructions, etc.).
The Connection Between Asking For and Closing the Sale
Asking for the sale and closing the sale are intimately connected and often overlap. A well-executed “ask” naturally leads into the closing process, so when a salesperson effectively asks for the sale, they’re setting the stage for a smooth closing.
Asking for the sale confidently helps build the customer’s confidence in the purchasing decision they’re taking, making the closing process easier. Additionally, a strong “ask” creates momentum that carries through to the close, reducing the likelihood of the customer changing their mind.
How a salesperson asks for the sale can inform how they approach the closing process, allowing for a more personalised experience. The customer’s response to asking for the sale provides valuable information that can be used in the closing process, while also providing some insight on any remaining concerns.
Training Focus
- Recognising buying signals.
- Overcoming objections.
- Various closing techniques.
Skills to Develop
- Confidence in product knowledge.
- Timing and tactfulness.
- Persistence without pressure.
Impact on Loyalty
Successfully asking for the sale not only secures immediate revenue but also reinforces the customer’s decision, leading to satisfaction and repeat business – a crucial factor when formal loyalty program investments are limited.
The Loyalty Connection in a Low-Investment Environment
With minimal investment in both training and loyalty programs, the importance of excelling at opening and closing sales cannot be overstated:
- A strong opening builds trust and rapport, compensating for lack of formal loyalty initiatives
- A successful close confirms the customer’s choice and builds confidence, encouraging repeat visits
When executed well, these elements create a positive cycle that can offset the limitations of low investment.
Good customer experiences ➜ Increased brand loyalty ➜ Repeat visits ➜ More opportunities to open and close sales.
Maximising Limited Training Resources
Given the potential reduction in effective training investment to 2c per dollar due to turnover, retailers must maximise every opportunity to train and upskill their people.
For Australian retail CEOs facing the reality of limited investment in both training and loyalty programs, the focus on mastering the opening and closing of sales becomes paramount. These fundamental skills can create a de facto loyalty program through excellent customer experiences.
By concentrating on these areas, retailers can maximise the impact of their limited training investment, build customer loyalty organically, and create a sustainable cycle of business growth – even in challenging economic times.
Are you ready to double your revenue?
Talk to Simon Neilson at The Retail Doctor Academy now.
☎ +61 2 9460 2882
✉ retailacademy@retaildoctor.com.au
🌐 retaildoctoracademy.com.au
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