Merchant best practices: Engage your customer and reap the rewards.

Welcome to the tail end of the Christmas season 2009. If everything is going as planned, you should be seeing the peak of your traffic in the next 14 days and you have probably noticed 2 thing:

1. There is less of that traffic than in previous years
2. The traffic that is there is spending less

This week at CUEHub, I want to cover some best practices that merchants can employ to get the most out of this Christmas season. The reality for retailers is that we need to get more from less. We need more sales from fewer customers. We need more productivity from less labour resources. See a pattern emerging? The new mantra in retail is: MORE FROM LESS.

Today, I want to focus on the possibly the most important areas of retailing: Customer Service. This one operational aspect can affect so many different line items on your profit and loss statement. The reality is that traffic and individual spending is down. This presents challenges for smaller retailers who have relied on the constant flow of foot traffic to maintain sales. Making minor changes as to how you engage customers is a practical way to cope with declining traffic and smaller basket. Optimizing customer engagement will result in larger baskets and increased return visits from your current customer base. Higher levels of customer service will also generate word of mouth marketing that which is a critical component to any successful retail operation.

Here are some best practices to consider when engaging customers on the sales floor:

- Approach customers directly on the floor. Waiting for them to come to the cash or to ask for help could mean missed selling opportunities. Even something simple as saying hello to your customers can mean the beginning of a deeper engagement with that customer. Approaching customers on the floor can also deter potential external theft issues. Do not be aggressive with the customer during initial contact. Put the customer at ease, make them feel welcome and let them know that you are here to help with anything they need.

- When engaging the customer, make sure you and your staff are asking open ended questions. Getting your customers to think about what they need or want can uncover additional needs and want. Asking open ended questions will make sure that the customer is getting the product they want.

- When directing customers to products, ensure that someone takes them to the location and puts the item in their hand or cart (preferably their hand). Getting the customer to touch and feel the item can instantly create a connection between the customer and the product. This is an excellent way to close a sale or complete an up sell.

Providing an outstanding customer experience provides a plethora of benefits to the merchant. Larger baskets, repeat visits and increased word of mouth marketing will increase your sales and drive your profitability. Customer service: isn’t that why we are here in the first place?

Tomorrow: Merchant best practices: Is your return policy deterring sales?

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