Rm General Topic

8/3/2019 Rm General Topic

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BUILDING & SUSTAINING

RELATIONSHIP IN RETAILING

Presented By

TEAM 5

V.S.Aayisha Parveen

C.R. Shrilekha

N.Shri Aishwarya

K.Vijayalakshmi

M.S. Sindhu


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RELATIONSHIP RETAILING

It seeks to establish and maintain a long term

bonds with customers.

This means concentrating on the total retail

experience, monitoring satisfaction with customer

service, and staying in touch with customers.


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To be effective in relationship retailing, a firm

should keep two points in mind

1. A Win-Win Approach:

Retailer must win- attract shoppers, make sales,

earn profits.

The customer must also win-receive good value, be

treated with respect, feel welcome by the firm.

2. Develop a customer database :

To provide information on people attributes andpast shopping behaviour.


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FOUR FACTORS OF

RELATIONSHIP RETAILING

The Customer Base

Customer Service

Customer Satisfaction Loyalty Program


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1. CUSTOMER BASE

The customer base is the group of customers

that a business serves.

In many cases, the customer base is

considered the business's target market,

where customer behaviors are well

understood through market research or past

experience.


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Example:

Bharti Airtel is the first service provider to cross 100 million

subscribe base as announced by the chairaman on 19th august 2011.

After having started its service in 1995 as Bharti Tele-Ventures, the

company crossed the 7.5-crore customer mark in August 2008 and 5-

crore mark in October 2007, making it one of the fastest growing

telecom company in the world.


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WHAT SHOULD THE RETAILER DO?

Retailers must regularly analyse the customer

base in terms of

population and lifestyle trends attitudes toward and reason for shopping

the level of loyalty,

the mix of new versus loyal customer.


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2. CUSTOMER SERVICE

Customer service refers to the identifiable, but

sometimes intangible, activities undertaken by a retailer inconjunction with the goods and services it sells. It impacts on thetotal retail experience.

Two elements of customer service:

Expected customer service:is the service level that customers

want to receive from any retailer, such as basic employee

courtesy.

Augmented customer service: includes the activities that

enhance the shopping experience and give retailers a

competitive advantage.


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DEVELOPING A CUSTOMER SERVICE

STRATEGY

What customer services are expected and what customer services

are augmented for a particular retailer ?

What level of customer service is proper to complement a firm's

image?

Upscale retailer Discount retailer


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Should there be a choice of customer services?

Warranties may have optional extensions or fixed

lengths. A firm may offer one, three, and six month payment

plans or insists on immediate payment.

Should customer services be free ?

In settling on a free or fee-based strategy, a firm must

determine which customer services are expected (these are

often free) and which are augmented (these may be offered

for a fee).


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How can a retailer measure the benefits of providing customer

services against their costs?

A retailer should plan augmented customer services based on

its experience, competitors' actions, and customer comments; and

when the costs of providing these customer services increase, higher

prices should be passed on to the consumer.

How can customer services be terminated ?

Once a customer service strategy is set, shoppers are likely toreact negatively to any customer service reduction. Therefore, some

costly augmented customer services may have to be dropped.


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PLANNING INDIVIDUAL CUSTOMER

SERVICES

CREDIT PURCHASES

DELIVERY

ALTERATIONS AND INSTALLATIONS

CENTRALIZED OR DECENTRALIZED

PACKAGING COUNTERS AND COMPLAINTS


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CNTD

GIFT CERTIFICATES& TRAIL PURCHASE

OTHER USEFUL CUSTOMER SERVICES- interior

designers, personal shoppers, ticket outlets,

plentiful parking, water fountains, pay phones,

restrooms, a restaurant, baby-sitting, fitting rooms,

a beauty salon, shopping bags, help desks and

information counters


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CUSTOMER SATISFACTION

Customer satisfaction

occurs when the value

, quality and customer

service provided

through a retailing

experience meets

customer expectation.


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Retail satisfactionconsists of three

categories: shopping

system satisfaction ,buying systems

satisfaction and

customer

satisfaction.


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Most customers do notcomplain whendissatisfied. They justshop elsewhere. Most

people feelcomplaining produceslittle or no positiveresults.

The retailers mustobtain regularfeedbacks.


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LOYALTY PROGRAMS

Retail loyaltyprograms evolvedwhen progressiveretailers recognizedthat without a"customeridentification tool,"

they were unable torecognize individualcustomers.


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The basic benefits of using a loyalty program toobtain customers are:

Shift - Acquire new customers

Lift - Increase the spending of existingcustomers

Retention - Improve the natural churn rate of

customers Profit mix - Shift spending to higher margin

products.


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A retailestablishment or a

retail group may

issue a loyalty cardto a customer who

can then use it as a

form of identification

when dealing withthat retailer.


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EXAMPLES:

Shopper's Stop has been offering a loyalty

programme called First Citizen .

Lifestyle -The inner Circle loyalty Programme.

Reliance Retail - "Reliance One"


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GOODS AND SERVICE RETAILING


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DIFFERENCES BETWEENGOODS AND

SERVICE RETAILING

GOODS RETAILING SERVICE RETAILING

Goods retailing focuses on

the sale of (physical)

products

Some retailers engage in

either goods retailing (suchas hardware stores)

No sales- goods can be

stored

Service retailing involves

transactions in which

consumers do not purchase or

acquire ownership of tangible

products.

service retailing (such as travel

agencies) others offers a

combination of two ( such as

video stores that rent , as well

as sell, movies).

No possibility of delayed sales


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CONTINUED

Service retailing encompasses diverse businesses

as personal services

hotels and motels

auto repair and rental recreational services.

In addition, although several services have not been commonly

considered a part of retailing (such as medical , dental , legal

,and educational services), they should be when they entailsfinal consumer sales.


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KINDS OF SERVICE RETAILING.

There are 3 kinds of service retailing.

Rented goods services

Owned goods services Non goods services


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FOUR UNIQUE ASPECTS OF SERVICE

RETAILING

Intangibility

Inseparability

Perishablity Variability


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INTANGIBILITY

No possibility of the customer to see, touch or feel

the service proposition before or during its

purchase

No impulse purchase

Very difficult to evaluate or measure quality in

services

The customer cannot stake any claim of ownershipor possession of the service proposition ;they can

only experience the offer


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PERISHABILITY

Unlike goods services cannot be stored but

have to be transacted during the given time.

If transactions does not take place then service

offer loses its value

Service revenue can never be recovered with

the hope of future sales.

There is the element of opportunity lost.


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VARIABILITY

Not consistent with quality and delivery

Same service can never be delivered in the

same way to the same customer across two

different time periods

The service transaction as having a different

quality when delivered from two different

places.


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INSEPARABILITY

The production and consumption takes place at

the same time

The presence of the service retailer and the

customer is important.

Even if one of them is absent the service

transaction cannot take place


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ABILITIES REQUIRED TO BE A

SUCCESSFUL SERVICE RETAILER Specific skills are often required for the

retailer.

The retailer must select staffs who arecourteous towards customers.

Retailers must accept responsibility for

complaints and rectify problems quickly. It is important to listen to customers opinion

on the outlets customer service.


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TECHNOLOGY AND RELATIONSHIPS IN

RETAILING


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TECHNOLOGY AND RELATIONSHIPS IN

RETAILING

Facilitates a better communication flow

between retailers and their customersbetween retailers and their suppliers

Faster transactions.


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IMPACT OF TECHNOLOGY IN

RETAILING

In each firm, the roles of technology andhumans must be clear and consistent withthe goals and style of that business.

Although technology can facilitate customer

service, it may become overloaded and breakdown.

It is also viewed as impersonal by some

consumers. New technology must be set up efficiently

with minimal disruptions to suppliers,employees, and customers.


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CONTD

Shoppers expect certain operations to be inplace, so they can rapidly complete credittransactions, get feedback on product

availability, and so on. By enacting the advances, they can be

distinctive.

F

or instance, consider the paint store withcomputerized paint-matching equipment forcustomers who want to touch up old jobs.


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TECHNOLOGYS EFFECTS IN TERMS OF

ELECTRONIC BANKING

Automatic teller machines(ATM) and

The instant processing of retail purchases.

allows centralized recordkeeping and letscustomers at bank and nonbank locations-including home or office.

Besides its use in typical financial transactions

(such as check cashing, withdrawals, andtransfers), electronic banking is now used inretailing.


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CONTD.

Many retailers have accepted some form of

electronic debit payment plan, whereby the

purchase price is immediately deducted from a

consumers bank a/c by computer and

transferred to the retailers a/c.

Worldwide, there are more than 1.1 billion

ATMs and people make billions of ATMtransactions yearly


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SMART CARD SYSTEM

New version of electronic payment is called the smart

card

The smart card contains an electronic strip that storesand modifies customer information as transactions take

place.

It is similar to pre-paid phone cards.

As they shop, card readers deduct the purchase amountfrom the cards. After they are used up, the cards arethrown away or are recorded.

In the future, Smarter smart Cards are expected to be

for more permanent and store more information.


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IMPACT OF TECHNOLOGY IN

CUSTOMER AND SUPPLIER

INTERACTIONS:

Retailers widely use point-of-salescanning equipment.

By electronically scanning products,retailers can quickly completetransactions, amass sales data, give

feedback to suppliers, place and receiveorders faster, reduce costs, and adjustinventory.

The disadvantage here is the error rate.


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SELF-SCANNING SYSTEM

A super market customer scans the groceries and

sacks them. The sacking area is built atop a scale

linked to the scanner that alerts the customer if an

item was scanned twice or not at all.

After all items are scanned, the customer scans in

any coupons and selects a payment method.

The machine accepts cash, credit, and debit cards,and electronic benefits transfers.


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CONTD.

Customers can use checks and food stamps

but may need assistance from a cashier.

Additionally, a cashier monitoring the check

out stations will be required to enter the birth

date of customers purchasing alcohol or

cigarettes.


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ETHICAL PERFORMANCE AND

RELATIONSHIPS IN RETAILING


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ETHICAL CHALLENGES FALLS INTO 3

INTERCONNECTED CATEGORIES

Ethics relates to the retailers moral

principles and values

Social Responsibility Involves acts benefiting

society

Consumerism entails protecting consumer

rights.


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ETHICS

Retailers have a moral obligation to act

ethically

a failure to be ethical may lead to adverse

publicity, law suits, and the loss of customers

and lack of self-respect among employees.


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UNETHICAL PRACTICES AGAINST THE

SOCIETY

Raising prices on scarce products after a

natural disaster

Not having adequate stock when a sale is

advertised

Selling alcohol and tobacco products to

children

Deflaming competitors

Selling refurbished merchandise as new


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HOW TO AVOID UNETHICAL ADS

The best way to avoid unethical ads for firms is:

to have written ethics codes,

to distribute them to employees and channelpartners,

to monitor behavior, and

to punish poor behavior- and for top managers

to be highly ethical in their own conduct.


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SOCIAL RESPONSIBILITY

Initiatives taken by retailers are:

having employees participate in community

events

donations to charitable groups

giving away goods and services to a school

wheel-chairs for persons with disabilities


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CONSUMERISM

Consumerism involves the activities of the

government, business, and other organizations

to protect people from practices infringing upon

their rights as consumers


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WHY RETAILERS PREFER PRACTICING

CONSUMERISM

Some retail practices are covered by legislation

People patronize firms perceived as customer oriented and not toone seen as greedy

Consumers are more knowledgeable, price-conscious and selectivethan in the past

They may not provide enough personal attention for shoppers or mayhave inadequate control over employees

The use of self service is increasing and it can cause frustration forsome shoppers

Innovative technology is unsettling to many consumers, who must

learn new shopping behavior Retailers are in direct customer contact, so they are often blamed for

and asked to resolve problems caused by manufacturers.

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