Customer Experiences and Sales Effectiveness
Define Active Listening
Fully concentrating on, understanding and responding to verbal and non-verbal clues
What does SKU stand for?
Stock Keeping Unit (important for tracking each item in inventory)
What is "Integrity" in the retail workplace?
Total sales/number of transactions
Example: Daily sales $5000 and 100 transactions
$5000/100 = $50 per transaction
What does POS mean and what is one of its functions?
POS = Point of Sale
process transactions, track sales, manage inventory and can help with customer relationship management.
What is upselling?
recommending complementary products (phone/phone case)
Define FIFO
First In First Out. Sells older inventory first (perishable goods)
What is accountability in the workplace?
Taking responsibility for mistakes and the steps to fixing them.
If a stores sales are $250,000 and COGS is $150,000 what is the gross margin percentage?
Gross Margin = Sales-COGS/Sales
250,000-150,000/250,000 = 40%
Define Cycle Count
Periodic inventory audits of portions of stock
Provides continuous and accurate counts of inventory
Calculate the conversion rate for 1,250 visitors and 150 transactions
transactions/visitors
150/1250 = .12 or 12%
What is "shrinkage"
When recorded inventory is less than the physical inventory (caused by theft and/or administrative errors).
Describe the behavior and suggest improvements while supporting the employee
Explain Sales Per Square Foot if a store with $600,000 in annual sales occupies 3,000 square feet
Sales Per Square Foot = sales/square feet
600,000/3,000 = $200 per square foot
Restocking the sales floor from inventory storage or new deliveries
Describe one way empathy improves customer loyalty and retention
Examples:
builds trust
reduces conflict
creates personalized experiences creating repeat visits
What is a Planogram?
a visual diagram of product placement that optimizes product visibility and increases sales per square foot
How does diversity and inclusion improve team performance and customer experiences?
Improves team creativity, customer relatability and reduces biases leading to better experiences for both employees and customers.
Define Markdown
Price reduction used to clear seasonal or old/aging inventory.
It helps recover cash and make room for new inventory items.
What is "Omnichannel" retailing
integrated shopping across all customer access points (in-store, online, mobile, app, etc.)
Some benefits: seamless returns/exchanges, consistent inventory visibility, improved convenience for the customer
What is upselling?
Encouraging a higher priced item (flip phone vs. iphone)
COGS is $48,000 and a stores average inventory value is $12,000. Compute the inventory turnover.
COGS/Turnover
$48,000/$12,000 = 4X turnover per period
What is professional development?
When an employee takes the steps to learn something new to put into action at work
A retailer reports a net profit of $36,000 with total revenue of $480,000. Calculate the profit margin percentage
Profit Margin Percentage = Profit/Revenue
36,000/480,000 = .075 or 7.5%
Explain the process of "receiving" inventory and identify two checks employees should perform during the process
Receiving is accepting, inspecting and documenting deliveries.
Checks: Verifies quantities, looks for damages and records into inventory system