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Mindtree: Sales Associates influence Shopper Purchase
Posted: Jun 23, 2016
The cross-industry survey was released today by Mindtree, a leading digital transformation and technology services company. The novel study shatters the myth that, in retail stores, most shoppers dislike to be interrupted and disturbed by sales associates. It also highlights the highly positive influence which sales associates have on influencing shopper purchases.
Various shoppers depend on interaction with sales associates to make decisions on purchasing, especially in more complex product categories like home improvement, consumer electronics, and others. When aided, it converts to significant increase in the amount of the shopper's transaction, and also in repeat purchases. Shoppers too often can't find sales associates when they have a question. This is a negative experience which converts to shoppers shifting either to a different store or to an online channel.
Sales associates are aware that their influence turns out to more sales conversions. However, their efforts are spread thin. They assist both casual browsers and serious shoppers, minimising their efficiency and conversion ratio.
Sunil Oberoi, Senior Vice President and Head, Retail, CPG and Manufacturing of Mindtree, said that conventional or traditional thinking in the retail sector is that most shoppers like to be or rather want to be left alone, and that sales associates too often annoy shoppers by trying to provide assistance. The Mindtree survey however paints a different picture, he added. He explained that shoppers respond positively when they receive guidance from an associate and regular assistance increases sales by 80%.
The survey is titled, 'Impact of Sales associates on the Shopper's Purchase Journey,' and conducted by Grail Research, which is an independent market research firm. The purpose of the survey was to understand the significance of sales associates in consumer shopping.
Sample of the survey:
The consumer sample included 600 qualified shoppers who made purchases of 100 dollars or higher in the past 3 months. The sales associate sample comprised 100 employees from companies spanning 5 retail segments: electronics and consumer goods, home improvement, fashion retail, department stores, and specialty retail.
Key findings from the survey include:
- 1. Shoppers who interact with a sales associate are 43% more likely to purchase a product, and their sales transactions have 81% more value, against those who do not interact with an associate. Also, they are 12% more likely to revisit the store.
- 2. Shoppers are less likely to make a purchase if they aren’t proactively reached out by a sales associate. Forty per cent of shoppers fail to locate a sales associate when they need help or information about a product.
- 3. Ninety one per cent of sales associates strongly agree to the fact that positive interactions with shoppers result in greater conversions. However, 94% feel this requires advanced technology tools and training that they are currently deprived of.
Companies should acquire an automated technology platform that is able to:
- 1. Notify the sales associates to locate and target the right shopper as soon as they enter the store
- 2. Share recommendations on additional products depending on the category of products
- 3. Provide regular training on new products and its features
A writer by day and a passionate reader by night. Writing just doesnot fill my pocket but it also fills my heart. With over 4 years experience in Stock Market, I am a full time content writer with www.dynamiclevels.com