The sales process & Customer service

• E-commerce, or electronic commerce, refers to the buying and selling of products and services using devices connected to an electronic network, such as the internet.
• Three things are required for e-commerce to take place:

  • a seller who has products and services that are displayed electronically
  • a buyer who has the equipment required to view the seller’s products and services, and a means of paying for them
  • a network that enables information and payment to be exchanged by the buyer and seller
• Selling face-to-face involves sales staff meeting with prospective customers and allows good interaction to take place
• Face-to-face

  • When a business sells to other businesses it is referred to as selling business-to-business (b2b).
• Face-to-face

  • Businesses that sell goods and services to consumers will be selling business-to-consumer (b2c). This usually takes place in a retail shop, and does enable advice and assistance to be given to consumers, who can see the products they are interested in.
• Short for ‘telephone sales’, telesales involves selling over the telephone. Providing a telephone number that customers can call if they want to make a purchase can be an effective way of providing advice and human interaction, especially when selling services, eg insurance.
• Advantages of E-commerce

  
  

  • The business can attract customers across the globe, potentially increasing market share
  • Sales can be made at any time of the day or night, increasing the likelihood of making a sale
  • Payments can be received immediately
  • May reduce the need to have physical shops, which can reduce costs
• Disadvantages of E-commerce

  
  

  • More competitors from across the globe, making it harder for the business to get noticed
  • Employees may need new skills
  • Procedures required for how products and services will be delivered and processing returns
  • Need to maintain and update technologies, including security software, which may be expensive
• Customers are usually happy to pay more for a product or service if it is accompanied by good customer service and is good quality and good value for money.
• Good customer service can provide a competitive advantage.
• A dissatisfied customer is unlikely to return and could damage the reputation of the business through negative word of mouth.
• After-sales service involves providing support for customers who have bought a product or service from a business.
• Businesses need to ensure that their employees have good product knowledge.
• A high level of product knowledge is a way of increasing the added value to a product or service.
• To gain product knowledge, staff are often required to undergo training and refresher courses. 
• The term ‘customer engagement’ refers to the interactions that take place between a business and its customers during the sales process.
• Businesses sometimes post updates about their products, eg product launches and upcoming events, to keep customers involved and engaged.
• The term ‘consumer law’ refers to any piece of government legislation designed to protect consumers from poor-quality products and poor business practices.
• In the UK there are two pieces of legislation that form the basis of consumer rights: the Consumer Rights Act (2015) and the Consumer Protection Act (1987).
• Goods must be:

  • described accurately – businesses should not describe goods and services in a misleading way
  • fit for purpose – goods must do what they are designed to do
  • satisfactory quality – goods should not be damaged or faulty when sold as new
• Services should be supplied under minimum standards, which include:

  • the service provider must use reasonable care and skill in delivering the service
  • any written or verbal information provided by the supplier is binding
  • the service must be provided in a reasonable time, unless agreed otherwise
  • the service must be provided for a reasonable price, if the price is not agreed beforehand
• Under certain circumstances, consumers can reject a product (excluding digital products) and return it for a full refund within 30 days of taking ownership of it. They can do this if the product is not as described, unfit for purpose or not of satisfactory quality.
• After 30 days, a consumer must give a business one opportunity to repair or replace any goods, including digital goods that are not as described, unfit for purpose or not of satisfactory quality. If the repair or replacement is unsuccessful, the consumer can claim a refund or price reduction.
• The Consumer Protection Act (1987)

  This Act is designed to ensure that products are safe. It makes businesses that produce, rather than just sell, liable for any damage caused by poor quality or defective products.