In Touch With Retailing

Guided Selling: A Roadmap for Empowering Employees

By Scott Langdoc, Chief Technology Officer, Fujitsu Transaction Solutions Inc.

Let’s face it – retail shopping isn’t quite the comforting experience it was only a couple of decades ago. Bigger stores, wider selections, more complicated products and a higher turnover in the workforce have many consumers confused and dissatisfied. When selecting products that require more than basic insight to make informed decisions, consumers think twice about where they shop and buy.

Some retailers have attempted to enhance the availability of information for their customers by installing in-store product information kiosks. Unfortunately, many early attempts by retailers to use them with basic product data failed miserably due to weak or inaccurate content, low consumer adoption and a lack of employee awareness about the kiosks’ value. Fortunately, recent self-service kiosk deployments have become more consumer focused, often leveraging the retailer’s online site as both an information source and potential ordering location.

However, technology solutions that focus on the store employee’s ability to proactively assist customers have often been missing in store system investments. A true guided selling solution will assist associates from initial customer question to complete transaction, with all relevant product detail, comparison data and suggested options that help the customer make a fully informed and satisfied purchase decision.

CREATING A GUIDED SELLING PLATFORM

When considering an investment in guided selling technology, retailers must first consider their merchandise selection. Guided selling is most valuable when it’s designed to assist shoppers in understanding and comparing complex products.

The consumer electronics segment, for example – where product choices and feature combinations can be overwhelming – is a nice fit for guided selling technology.

Deep, accurate product content is at the core of any effective guided selling application. Retailers need to constantly synchronize product information with suppliers to ensure that shoppers can assess the merchandise they are considering, either individually or comparatively.

Store associates can further personalize shopper assistance when the guided selling application is embedded with the right level of customer and demand intelligence data. Demand data can give customers a sense of “top-seller items” – and help influence purchase behavior by providing accurate up-sell and cross-sell recommendations. This drives both bigger tickets and wider accessory sales.

Wireless networking, which allows store associates to carry mobile devices such as PDA’s or tablet PCs, is another key technology enabler for guided selling. It allows associates to be with the customer at the merchandise location, rather than forcing the customer to walk to a kiosk, away from the merchandise. However, it may be more effective to combine guided selling applications on store-based kiosks and the retailer’s Web site for those customers who prefer to do comparative research on their own.

COLLECTIVE WIN / WIN

Guided selling is one of those rare store system technology investments where operational and financial benefits are available to each participant in the purchase transaction:

• Customers Win. After evaluating and comparing similar products based on their selected criteria, consumers can feel confident they have made an informed, educated purchase decision. Reduced buyers’ remorse!
• Store Associates Win. With a wealth of product information at their finger tips, employees won’t feel overwhelmed with complex products and can confidently assist customers, help answer questions and drive quicker purchase decisions. Store associates also benefit from “transparent training” – multiple iterations through the guided selling exercise dramatically improve their product knowledge. Educated, empowered employees improve service.
• Retailers Win. In measured pilots using guided selling applications, retailers have increased the conversion of customers from product interest to product purchase by more than 20 percent. Effective, personalized marketing through targeted cross-selling and up-selling can lead to 15-25 percent larger transactions. More effective shopping experiences lead to improved customer satisfaction.

Shoppers want to know that the merchants they frequent are informed, helpful, and consistent in their execution. Guided selling technology promises to provide consumers an effective and differentiated shopping experience that results in improved customer satisfaction, more confident and effective sales associates, and increased sales and profits.