Mastering Retail Success: Compliance Strategies for Salespeople (Full Transcript)

Speaker 1: Shopping is a big part of life, and we make purchases on a daily basis. Whether we buy food, clothing, or other products, we are constantly being influenced to buy certain items and to buy things that we did not even know we needed. For retail workers, it is important to learn different compliance strategies to be successful. In this video, we will learn what exactly compliance is, why it is important to retail workers, and how to effectively use it in the workplace. Retail is a huge source of money, and companies like Gap Incorporated, Starbucks Coffee, and all produce billions of dollars in revenue every year. Compliance is a method of influencing the behavior of other people, and it occurs when a person changes his or her behavior at the direct request of another person. It is frequently thought of as a face-to-face exchange, but in reality, compliance is everywhere. This includes both implicit and explicit forms. Explicit compliance is the classic idea of the face-to-face interaction, especially between a salesperson and a customer. Implicit compliance is much more subtle. It includes pop-up ads on your computer, flyers in the mail, and even commercials on television, like this one for an old presidential election.

Speaker 2: Governor Scranton. The day before the convention, he called Goldwaterism a, quote, crazy quilt collection of absurd and dangerous positions. Or this man, Governor Romney. In June, he said Goldwater's nomination would lead to the, quote, suicidal destruction of the Republican Party. So, even if you're a Republican with serious doubts about Barry Goldwater, you're in good company. Vote for President Johnson on November 3rd. The stakes are too high for you to stay home.

Speaker 1: But how are compliance and retail related? It turns out that salespeople use compliance techniques to increase their profit all the time. The interaction between the employee and customer directly affects whether or not the customer will make a purchase. It is important that employees take cues from the customers and adapt their methods to be successful. Most compliance strategies that are frequently used to encourage customers to purchase products or services rely on the ordering of requests, though there are strategies that only involve one request. These include the foot-in-the-door technique, low-balling, the door-in-the-face technique, and the that's-not-all technique. Now we will learn more about each strategy and how to use each one in a retail setting. The foot-in-the-door technique is a two-step process in which an individual aims to convince another person to comply with a request by first asking for a smaller favor.

Speaker 3: Hey, is there anything I can help you with? Um, I think I'm good for now. I really like this shirt. Oh, awesome. Okay, so it's $30. Okay. Oh my gosh, though, you know what would be so cute with that? What? This jacket. Oh, that's so true. The jacket is $45, by the way. They just look so cute together. Right? Yeah.

Speaker 1: Low-balling occurs when an individual gets another person to comply with a request and then adds hidden costs. Making the request larger.

Speaker 3: Hey, can I help you with anything? Um, yeah. How much is this dress? Oh, so it's on sale. It's actually $30. Oh my gosh, that's awesome. Oh, I'm so sorry. The sale ended yesterday. It's actually $50. Hmm. Well, I like it so much I think I'm going to have to get it.

Speaker 1: The door-on-the-face technique occurs when an individual makes a request seem more appealing by first making another, much larger request that is bound to be rejected.

Speaker 3: Hey, is there anything you can help me with? Yeah, I didn't see a price tag on this. How much is it? Um, it's $100. Hmm. I'm on a budget right now. I don't really think I can. Oh, okay. So we actually have this one, and it's only $50. It's pretty similar. Oh, yeah. That would work for me. Alright, perfect.

Speaker 1: The that's-not-all technique involves settling on an inflated request, and then reducing the size by adding free gifts or discounts.

Speaker 3: Hey, can I help you with anything? Yeah, how much was this shirt? Um, it's $60. Hmm. I don't know. I really like it. I think I have to get it. Awesome. So, if you send $60, you'll also get this free tumbler along with it. Oh my gosh. What a good deal. Absolutely.

Speaker 1: There are times when these strategies do not work, and can even strain the relationship between the employee and customer. First, if an individual is aware of these techniques, they are less likely to comply with a request. And second, compliance is less likely if the requests are too different in value. Shopping, either for clothes, home goods, food, or other things, is something we do very frequently, and retail workers make that experience easier and more enjoyable. To be successful, it is essential that retail workers use compliance. They can create a great shopping experience by utilizing the foot-in-the-door technique, the low-balling, the door-in-the-face technique, and the that's-not-all technique, and by tailoring the experience to each individual customer. www.Flydreamers.com