Tuesday, December 8, 2009

Why Won't They Buy?: The Dark Side of Commission-Based Selling


Selling things is no easy job, I think we can all agree. Job performance is not ultimately determined by how hard or well you work, but whether a complete stranger decides based on their own agenda whether or not to spend money. It used to be that "level of service" was a major subjective metric that salespeople in my company could excel in and compensate for lower sales figures. In a surprising turn, we decided to begin evaluating salespeople purely based on their sales per hour. Service is still a priority, but now it is viewed as a given rather than a redeeming asset. This pressure to perform financially is further exacerbated by customers taking time to shop for and try on merchandise, only to shy away from the trigger and leave empty-handed. This is frustrating for commissioned salespeople, some of whom colloquially refer to this practice as "stroking," as it is effectively a waste of time. Besides the obvious financial loss, what frustrates me is I continue to fail to understand why people in healthy position to make a purchase ultimately decide not to.

With nearly two years of retailing behind me I am hardly a veteran, yet I have conducted hundreds of shopping experiences with customers of various ages, genders, nationalities and bank accounts. I have had countless instances of being "stroked" and yet remain puzzled about the spending habits of people in general.

1. This past Saturday a female in her twenties picked a tie she loved for a Christmas present for her boyfriend. I suggested she enhance the gift and pair it with a shirt. She loved the combination I put before her and we even had his size in the shirt! She gushed at how the colors and patterns were perfect for his style and that he would love it. Done deal. Let's ring, box and move on. "I just really need to think about it," she tells me. "Can you put these on hold until Monday?" "Sure," I say. But WHY? It is Saturday afternoon and we have just spent twenty minutes extolling the virtues of this gift-set. These are both moderately-priced items, relative to the department (Side note: the vast majority of customers enter our store understanding full-well we stock middle-to-upper end merchandise, provide renowned service and therefore exhibit a higher price-point than, say, Wal-Mart). The tie, which she is madly infatuated with, is nearly the last in the company. Yet, she must think. Waste. She leaves. She comes back Sunday. I am off. She wants to LOOK at the shirt and tie again. She asks her salesperson to - on my behalf - extend the hold until TUESDAY. This does not get done. The items are put back Monday when she fails to show up for them. This evening she appears, desperately seeking her precious tie-shirt combo. The tie is nowhere to be found. In the company. She is crushed. Crushed. I am beside myself with a strangely unmoving combination of frustration, apathy, and contentment. Ultimately we decide to go in a different direction and she purchases a watch, wallet, and men's style guide. Gifts for men are always better when you don't have to pick a size, anyway.

2. A man in his thirties walks in to the department. He is not looking for shirts and ties, but dress pants for work. Pants that fit. Great. I walk him into the proper department and start to tell him about the particular brand we're looking at, why it will be good for him, etc. He is on board. Great. He said he needs a couple of colors. Greater. We look at a different, higher-end brand as well that would give him the fit he's looking for. He tells me these are out of his price range. Less great, but no problem. He says nothing about the price of the original pants. He wants to try pleated so we try pleated. He doesn't like the look or fit (nor do I) so I suggest we do the same pant in a flat-front style. The size on the FF is small so I grab the next size up. It needs to have the waist taken in just a tad but the fit is great otherwise. The girlfriend mysteriously shows up as well. It is about seven o'clock in the evening so this is clearly not a lazy weekend afternoon time-wasting activity. The girlfriend approves of the pants. Done deal. Let's pick out some additional colors, call the tailor and mark these puppies up. My customer comes out of the dressing room fully dressed and carrying all the pants. "I'm really going to think about these," he states, while looking the label of the pants in the seam, appearing to make a mental note, "Thank you for all your help." Seriously? Half an hour wasted for me. Probably moreso for him. I was already at the store. Doubtful he lives across the street, he and the girlfriend had to spend some quality down-time to go round-trip for this fruitless escapade. He expressed his approval and like of the pants numerous times. "Just what I'm looking for," may have been uttered. Again, I have literally nothing to show for my time and effort other than the man's gratitude, though after hearing the same line from hundreds of men I consider it a mere formality. Again, I am perplexed as to why a customer who has taken the time to come shopping during ever-shortening leisure time for a specific set of items finds said items at what are noticeably acceptable price points still will hesitate and back down at the point of sale. I have read stories recently of retail guilt, that customers nationwide are spending less, not because they have less, but because they fear what other will think of them. Maybe this was a case. Maybe the pants were still too expensive. There are always plenty of unknowns when someone strokes you.

As salespeople we try to ask questions and eliminate as many of those unknown buying factors as possible so we can tailor our suggestions and selling techniques to best facilitate finalizing sales. Even if every condition provided is met, plenty of customers still choose to back down. I would love to conduct exit polls of each "stroke" customer. Though I never take it personally, I constantly find myself not understanding what went wrong. Even if everything from a sales standpoint was perfect you can still emerge uncompensated and frustrated. Such is the commissioned retail life. Hopefully tomorrow I'll have a couple "easy" pops to showcase the flip-side of brief, unbridled and unexpected spending.

6 comments:

  1. Can I assume that the "strokes" increased post-economy crash? I know when I get awesome customer service, I get super excited to buy something, only then to face the reality of, you know, spending MONEY.

    On the flip side though, as an informed customer, I try not to take up the time of salespeople if I think there is a chance I will back away later.

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  2. Not having the numbers in front of me, I'd have to say No. Though I have heard just a handful of customers over the past year remark something to the effect of "if it were a year ago I would have bought more."

    I definitely acknowledge the concept of getting caught up in the good-time, good-juju customer-salesperson experience only to be slapped in the face with the reality of the purchase. You make a valid point. I doubt, however that most customers are as thoughtful as your flip-side.

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  3. I am a customer not a salesperson and try to be careful about how I take advantage of a sp's services. But bottomline - it is my money and my decision about how I spend it. Yesterday I was shopping for a coat. I entered the department and was browsing the racks for at least 10 minutes before a sp seemed to notice my presence. By the time the sp approached me, I had pretty much determined that the coat I was looking for was not available. There was one coat however, that I had tried on but felt the coat was small. I hadn't found a mirror so I didn't know how it looked either. The sp finally directed me to a mirror and I stated I thought the coat was longer than I wanted. She started to look through the racks to find another potential option (which I had already done). I tried on a few others which were too long, too short, too something. I'm really not picky, I just had something else in mind. Then she offered to see if the first coat was available at another store in a larger size. It was and after some subtle encouragement from her I decided to purchase it and have it sent to me. Great. At the register as she was beginning the transaction, I changed my mind and remembered I felt the coat was too long. I explained and told her how sorry I was. She understood but I'm sure she was disappointed. But I really wanted to keep looking. She probably spent 15 minutes with me but there had been no other customers in the department that she missed meeting.

    Today I need to return a jacket to a different store. The sp at that store convinced me to purchase it when I felt it was really too small. I had planned to wear the jacket a week or so ago, but couldn't. It will take my time to return the jacket now and the store probably won't have the larger size. It was ultimately my decision to purchase this jacket but I wish this time I had had the courage to speak up at the end instead of continuing with the transaction

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  4. A local NBC affiliate showed a piece this morning discussing retail customer service. A marketing professor also weighed in with his opinions. The overall thought was that customer service in recent years has declined significantly but that with tough times, it is actually improving with the desire for increased sales. In my opinion, I can think of only a handfull of retailers who provide what I think of as customer service. Most just have a clerk taking my money at a cash register. When I am searching for something on the floor, a salesperson is typically no where to be found. For all you good sp in the world, your job is tough, but we appreciate the good service we get.

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  5. @ Annonymous #1: I'm glad you make a concerted effort to respect the time of salespeople. So often it feels like customers don't (and they may not). You are absolutely right that you make the decision whether the transaction happens or not, and it is your right to call things off at any point. Or to return merchandise at any point if you aren't satisfied or think better of your decision despite any "encouraging." No one else is MAKING you spend your money. Hopefully. You shouldn't feel bad about voicing concern if you have reservations about the product. You're entitled to have control of the sale.

    My frustration/confusion is not with you but people who at least appear to be completely satisfied with the merchandise in front of them. Why did they leave their house and come into the store if buying something was not the ultimate goal? It seems like such a waste of time to come away empty-handed.

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  6. @ Annonymous #2: Thank you for the appreciation. I hope you do not see me using this forum simply to complain about working retail. I'm going to voice some frustrated opinions here and there but the goal is to keep them in line with my bigger points, part of anecdotal evidence.

    To the news piece and professor, I have definitely noticed (been required to notice) an emphatic shift in the type of service we provide at our store. Since its opening, the traveler-heavy high-traffic environment on the Avenue has allowed salespeople to put up serious numbers without having to cultivate much personal business.

    Finding itself in a slump, the store and company endeavored to refocus efforts on making the most of each customer and striving for repeat business. This has proved somewhat successful, though in the past year the only real and consistent success stories have come from the womens's division. Surprised? I'm not. Even in a fashion capital, Chicago men simply don't spend as much or as consistently as women.

    As for having difficulty finding salespeople, I know most retailers have not hired as much seasonal help as in past years to supplement what is often a somewhat skeleton base crew. My department seems to be the exception: six new people have started in the past two weeks. With all hands on deck (weekends) you can't go more than a few feet in any direction without running into a salesperson. Come on over, A#2, and you can have your own sales entourage.

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