APU Careers Careers & Learning

Old School Relationship Building in the New Age of Retail Management

By George Case
Fulltime Faculty Member, Retail Management at American Public University

The retail manager is in the relationship building and maintenance business. In order to successfully operate a business unit, a manager must possess divergent skills. Often overlooked are “soft” skills which, when properly utilized, will differentiate a manager from his or her peers in a positive manner.

Sincerity is the core element of relationship building. Customers and employees both know when a manager is being disingenuous. A sincere belief in enhancing both the customer experience and the employee-work relationship will create a win-win situation for all parties. Learning how to become a more effective listener, and understanding the role that non-verbal body language plays, will facilitate this.  Role playing is an excellent technique to enhance ones’ listening skills.

While sincerity is essential, the retail manager can’t be over-eager.  Customers will sense a “used-car salesmen” approach, and be repelled by this.  A manager must earn the respect of both their customers and employees.  This is done through being reliable and following through on actions that are promised.  After listening closely to what is being said, leave each interaction with a clear direction of what needs to be done, and then do it.  This requires discipline on the part of the manager, but is the best way to develop a mutually beneficial long-term relationship.

[see also: What to Expect in a Retail Management Career]

Failure to develop and enhance relationships will lead to decreased business, a diminished reputation, an inability to understand and react to changing market threats and opportunities, and greater inefficiencies in time management.

A manager must have empathy for customers, which derives from an ability to “see” the store as the customer sees it every day. Understanding how an associate views their job and the role they play within the store is also crucial.

Finally, a sense of humor and knowing when to use it puts employees at ease and can help build better relationships. Employees are more productive if they enjoy working with their manager. Customers want to be happy too, and something as simple as a smile goes a long way. It is human nature to want to feel good, and as manager, making others happy is part of the job!

The retail manager must possess and properly employ several “hard” skills as well. Foremost is the need to effectively communicate to both employees and customers. Each message must be clear, concise, and unambiguous. There can be no room for misinterpretation.

[see also: The Retail Golden Rule: Know Thy Consumer Behavior]

Since the retail manager wears many hats, he or she must be a critical thinker and able to multitask.  It is common to juggle a dozen different projects at the same time. Hence, the ability to instinctively prioritize complex issues is essential.

The past decade has brought change to how employees are trained. In 2010, according to Training Magazine, 61 percent of mandatory or compliance training was facilitated online. Advances in technology have drastically increased the amount of technical knowledge today’s associate needs in order to understand the merchandise, pricing and customer needs. In August of 2012, a study by the Yankee Group stated that 46 percent of U.S. consumers use their smartphones to check prices and reviews while shopping in retail stores. This is up from 5 percent in 2010. Thus, associates must be empowered on the decision making processes for price matching.

The pricing model for retail goods is also undergoing a dramatic shift.  No longer can a retailer price a product and expect the price to remain unchanged.  A Wall Street Journal article on September 5, 2012 discusses new software that permits retailers to change their prices on a minute-by-minute basis.  Amazon changed the price on a microwave nine times in one day, ranging from $744.46 to $871.49.  In order to properly utilize new software, training of the retail manager and their associates will become a more consistent occurrence.

Whether it’s training employees on how to utilize technology to enhance the customer experience, or something as simple as a friendly greeting or sharing a joke, one of the most critical components of a retail manager’s duties is building solid relationships with employees and customers alike. It’s a never-ending process that takes practice and the willingness to always learn and improve.

 

About the Author:

Professor Case has spent 20 years in the Retail Management industry, the past 12 as a business owner.  Joining a small business in the early 1990’s, he was instrumental in the company’s growth and expansion into multiple states.  Professor Case earned his MBA from Case Western Reserve School of Management in Cleveland, OH and his BA from Macalester College in St. Paul, MN .

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