3.4 Sale Process

Define Sales Process:

• The sales process is how the business interacts with its customers and receives revenue.

• It is the series of steps that helps businesses make sure they maximise sales to potential customers and encourage customers to return to the business to make repeat purchases.

Stage 1: Preparing through good product knowledge:

• A salesperson should know the details of the product/service they are selling

• Technical details important - need to answer customer queries/explain features of the product

• Important to inform customers when there is a range of products on sale

Stage 2: Identifying sales opportunities:

• A salesperson needs to identify possible customers/identify what they want

• Some businesses actively look for customers via phone/email/face-to-face

• By asking questions the salespersons can identify if the potential customer can benefit from the service or product offered

Stage 3: Understanding needs and wants of customers:

• A salesperson should ask questions to identify what the customer needs or what they want.

• The salesperson should then be able to match the product or service on sale to these needs and wants.

• A good salesperson will listen carefully and be honest in what they recommend to the customer - dissatisfied customers will look elsewhere

Stage 4: Informing customers of features/benefits of good/service:

• If there is a range of products available, the salesperson can explain the features/benefits or demonstrate to help the customer decide/avoid confusion

• Salesperson may also need to respond to the doubts and questions that the customer may have

• May try to 'up-sell' - identify an opportunity to sell a more expensive model or, introduce related products or services in order to increase the value of the sale.

Stage 5: Closing the sale:

• From a businesses POV - main purpose of selling!

• Customer agrees to purchase the good/service and can pay to do so

• Often, if a customer is still unsure at this stage, the salesperson may offer a special benefit.

Stage 6: Following up and after sales:

• Feedback - is the customer happy/unhappy with the good/service?

• Finding out whether the item been delivered? On time? In good condition?

• The service customers receive on complaints, faulty goods, maintenance or repair and support including exchanges.

Define Customer Service:

• Involves the interaction between the business and the customer in which the business understands consumer needs before, during and after the sale of a good or service.

• Positive reactions to service can provide benefits for the businesses in relation to reputation and future sales.

Importance of customer service for customer loyalty:

Good customer service makes customers feel valued, so they return and stay loyal to the business.

Importance of customer service for brand reputation:

Positive brand reputation is important because customers share their good experiences.

Importance of customer service for new customers:

Satisfied customers recommend the business to others, attracting new customers through word‑of‑mouth.

Importance of customer service for higher sales and revenue profit:

Loyal and new customers increase demand, leading to higher overall sales.

Importance of customer service for increased market share:

Higher sales compared to competitors allow the business to gain a larger share of the market.

Importance of customer service for competitive advantage:

A reputation for excellent service helps the business stand out from rivals, giving it a competitive advantage.

Define E-Commerce:

E-Commerce is online selling (through own websites or third-party sellers e.g. Amazon)

Define M-Commerce:

M-Commerce is also online selling but on a mobile (through an app)