Sales processes and customer service (OCR GCSE Business): Revision Notes

4.3 Sales processes and customer service

Methods of Selling

Face-to-Face Selling: A direct interaction between the buyer and the seller, often occurring in a physical retail setting.

Advantages:

• Can increase sales through personal interaction and build strong customer relationships through personalised service.

• Useful for customers who need advice or want to see the product before purchasing.

• Enhances customer loyalty and encourages repeat visits due to positive experiences.

• Important for business-to-business (B2B) transactions where specifications and negotiations are required. Disadvantages:

• May not always be convenient for customers.

• Higher retailer costs due to staff and store expenses.

• The customer can bargain with the seller, potentially reducing profit margins.

Telesales: Sales completed over the telephone.

Advantages:

• Can increase sales by directly contacting potential customers.

• Reduces costs compared to maintaining a physical store. Disadvantages:

• Can be intrusive and annoying to customers.

• Costs involved in employing telesales workers.

• Limited to the ability of salespeople to convey product benefits over the phone.

E-Commerce: Buying and selling goods and services electronically via the internet.

Advantages:

• Markets have increased as businesses can sell globally.
• Sales can occur 24/7, offering convenience to customers.
• Lower costs due to reduced need for physical premises and fewer staff.
• Web designers can make businesses appear attractive online at a relatively low cost.

Disadvantages:

• Increased competition, including from international businesses.
• Requires investment in secure and reliable delivery systems.
• Necessitates robust cybersecurity measures to protect customer data.
• Can incur additional technology-related costs.

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Influence of e-commerce on business activity

Delivery Options

• Speed and flexibility in delivery options enhance competitiveness.

• Innovation in delivery methods, such as using drones. Levels of Employment

• Reduction in the number of employees due to automation and technology.

• Shift towards hiring workers with specific digital skills. New Skills

• Recruitment needs for roles like web designers, packers, and drivers.

• Importance of skills related to website maintenance and logistics. Location

• E-commerce allows businesses to operate from cheaper, non-prime locations.

• Reduction in the need for high-street retail presence. Business Opportunities

• Expansion into new markets and sectors such as finance and technology.

• Increased opportunities in retailing, banking, insurance, and other sectors. Creation of New Departments

• Traditional businesses incorporating e-commerce divisions.

• Specialised teams for online sales and customer service. Risk of Click and Collect Services

• Offering flexible delivery options like click-and-collect.

• Integration of physical and online retail experiences.

Advantages and disadvantages of ecommerce

To businesses

Advantages:

• Businesses can sell globally, reaching a larger audience than a physical store.

• Lower costs due to a reduced need for a physical location and fewer employees required leading to lower wage costs. Disadvantages:

• Increased competition as now against both local and international businesses.

• Ongoing costs for website maintenance and updates.

• May be more difficult to build trust with customers who cannot physically see or try products.

To customers

Advantages:

• Convenient as they are able to shop anytime and anywhere, 24/7.

• Access to a wider selection of products as they can shop from various sellers internationally

• Easy comparison of prices across different platforms so they can find better deals and discounts Disadvantages:

• Unable to physically check or try products before purchase.

• Less ability to ask immediate questions or get advice when shopping.

The importance of good service to businesses

Type of service	Advantages	Disadvantages
Customer Service	• Increases sales by enhancing customer confidence and loyalty. • Encourages repeat business through positive buying experiences.	Businesses may have to spend money to train workers to develop strong customer service skills, involving dealing with unhappy customers.
After-Sales Service = The service received after customers buy s product. E.g. dealing with returns or giving customers advice	• Builds customer loyalty and satisfaction by offering support post-purchase. • Reduces the likelihood of returns and negative feedback.	The cost of training workers to deal with returns and refunds
Product Knowledge	• Sales staff are well-informed about the products, aiding customer decisions. • Helps in upselling and providing relevant recommendations.	Staff training costs
Customer Engagement – Providing a friendly and welcoming service to customers	• Ensures effective communication between the business and its customers. • Creates a welcoming and respectful interaction, whether in-person or online.	Staff training costs