Product Knowledge in Retail: What You Should Know

When you ask your waiter for a recommendation at a new restaurant, you expect that the waiter has a solid understanding of each dish on the menu. You expect that the waiter will try to analyse your wants and offer up the best options. Well, the retail industry is no different when it comes to product knowledge. Sales agents are expected to have extensive knowledge of the products or services they are selling in order to provide customers with the best recommendations.

What is product knowledge and how does it help?

As you might assume, product knowledge is the in-depth understanding of a product or service being offered. This knowledge includes aspects such as features, functionality and benefits.

When a sales team is competent and knowledgeable, a business will inevitably reap the benefits. Some of these benefits include:

1. Improve inbound and outbound customer interactions

2. Stand out from competitors

According to recent studies, businesses who invest in training prove to be up to 57% more effective at sales in comparison to businesses who don’t.

3. Improves customer trust

4. Confident assistance from sales agents

5. Increases sales

Research shows that continuous training can result in a 50% increase in net sales per sales agent.

Types of Product Knowledge

Product features and functionality

At the bare minimum, sales agents need to know how a product functions. If a customer is shopping for a laptop for example, a sales agent should be able to describe all the features as well as determine suitability.

Customisations and adaptability

Although we try to group customers, they all have unique needs and circumstances. It is the sales agent’s responsibility to identify whether a product will fit a customer’s criteria. Moreover, they need to know how a product can be adapted to suit needs.

The customer

As stated by Steve Jobs, “Get closer than ever to your customer. So close, in fact, that you can tell them what they need well before they realise it themselves”. As a sales agent, you need to know your customer – their needs, motivations and struggles.

Brand

When employees are acclimated to the brand, they can embody it in their customer interactions. Moreover, it creates consistency in both inbound and outbound marketing.

Competition and the industry

The current retail environment is extremely competitive. This leaves customers constantly comparing brands. That is why sales agents must be able to advocate for their brand and convince customers why their products are better than the alternative. In addition, sales agents should be aware of the current trends in the industry, keeping them up to date with the customers.

Financials

Although your product might be the most ideal, it may not be financially realistic for your consumer. Knowing the price and/or financing options of different products can help consumers make informed decisions.

Ideas for Product Knowledge Training

1. Employee Shadowing

If your business has tenured employees, having new employees shadow them will help set the tone. The tenured employees will help teach new employees what works and what doesn’t. Moreover, it may bring to light gaps in current employee knowledge.

2. Reviewing customer testimonials

This is a great way to get to know both your products and customers better. By reviewing testimonials, employees will be able to empathise with customers. In addition, you can pinpoint issues customers may be having and then offer up potential solutions.

3. Product training videos

Videos, if done right, can be a great educational tool that leaves a lot of room for creativity. Training videos are easily digested and allow employees to revisit material whenever they have time.

4. Quizzes

Tests often motivate sales agents to retain what they have learnt as they will engage more often with the material for the test. In addition to keeping them on their toes, it will allow you to identify gaps in their knowledge.

5. Role playing

This form of training may not be suited for all. But for those willing to try, it can help increase confidence and prepare you for difficult scenarios. This may also prove as a good opportunity for coworkers to offer constructive criticism as well as offer support.

In Summary

Well trained sales agents will help set your business apart from it’s competitors. With the right training, sales agents can successfully help customers find the right products as well as assist in problem solving. Moreover, the sales agent’s confidence in the products and brand will help carry the business forward.