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The process of purchasing a product or service is made up of six key stages:

1. preparing through good product knowledge
2. identifying sales opportunities
3. understanding the needs and wants of customers
4. informing customers of the features and benefits of the product or service
5. closing the sale
6. following up and after-sales

These stages all contribute to customer satisfaction. This makes the sales process a valuable part of providing good customer service.

It is represented as a cyclical process, as an effective sales process can lead to loyal customers and repeat purchases. However, it is important to remember that while the process usually does follow this cycle, the sequence varies for some products and services.

Preparing through good product knowledge

Businesses need to ensure that their employees have good product knowledge. Customers expect a high level of product knowledge and customer service. For example, a supermarket employee should be able to direct a customer to any product that they are looking for. Similarly, an employee working in an electronics store should be able to give details to a customer about the features of a TV they are interested in purchasing.

A high level of product knowledge is a way of adding value. This is especially important during the sales process for technical or highly expensive products or services. For example, an employee in a specialist cycling shop might advise a customer on the correct bike to use for riding on rough terrain versus on the road.

To gain product knowledge, staff are often required to undergo training and refresher courses. Long-serving employees will have a much better understanding of the business and its products and services compared to newer employees.

Identifying sales opportunities

Businesses need to ensure they attract the attention of potential customers, for example by using emotive language in their advertising. Examples of this are the Christmas television advertisements released by supermarket chains every year. They often feature themes of friendship and family while using emotive language and images. This encourages customers to associate the happy or inspirational stories in the advertisements with their experience of shopping at a specific supermarket.

Other ways that businesses encourage customer interest are by ensuring employees have good product knowledge and by using appropriate sales approaches. There are two types of sales technique that can be used to help develop customer interest:

• Hard approach – this is when sales employees actively seek out customers and advise them about the products or services on offer, trying to encourage them to make a purchase. This can be done face to face or through cold calling.
• Soft approach – this is when sales employees simply advise customers that they are available should the customers require any help or information about the products or services on offer. This approach allows customers to look at the products and services on offer in their own time.

Understanding needs and wants of customers

All customers have different wants and needs when purchasing from a business. It is important for businesses to undertake market research, to find out the different wants and needs of their customers. Businesses want to find out what the best products are for them to sell, and how to encourage repeat purchases from customers.

Businesses could also track what customers are purchasing through the use of online order tracking and in-store loyalty cards or accounts, to monitor the purchases of different products. This helps a business target individuals with specific advertising.

Informing customers of the features and benefits of the product or service

The term ‘customer engagement’ refers to the interactions that take place between a business and its customers during the sales process. Some products don’t require much interaction, eg buying a loaf of bread from a supermarket. However, some products and services require a high level of engagement, eg the sale of a house through an estate agent, or the purchase of a car. In such cases, the salesperson must build a relationship with the customer.

Many businesses use social media to reach their customers. They may ask customers to ‘like’ or ‘follow’ the business, or to make recommendations or post images of themselves using the business’ product or service. Businesses sometimes post updates about their products, eg product launches and upcoming events, to keep customers involved and engaged. Building and maintaining customer engagement can help businesses to create large brands known around the world.

Closing the sale

Closing the sale means completing the sale and selling the product or service to a customer. Until this stage is complete, no money has been received.

Following up and after-sales

After-sales service involves providing support for customers who have bought a product or service from a business. For example, a business might provide assistance to a customer who has bought a new computer and needs help using it. Alternatively, after-sales service may involve dealing with complaints efficiently when a product or service is faulty or does not meet customer expectations. Many retailers do this by providing an online service, eg a chat facility with customer service personnel, where questions and problems are dealt with quickly.

Businesses can build positive customer relationships by seeking feedback and acting on feedback from customers. Businesses may gather this feedback using traditional methods, such as questionnaires, or newer methods, eg social media. Access to the internet and new technologies means that businesses can receive feedback from customers quickly and can also respond quickly to complaints and other issues.