The Dark Side of “Saving” Money

The Dark Side of “Saving” Money

When the cost of NOT doing something far exceeds the cost of doing it, you’ve got a pretty darn strong call to action.

Hmmm… should I spend the money to provide wireless retail training to my employees or just save the moolah and train them myself? Owners and managers of wireless retail stores often worry about the costs involved in their everyday decisions – buying a new product line, investing in physical assets or providing wireless retail training to their workforces – but what about the costs of NOT spending?

Nowhere is this more devastating to a business than in putting wireless retail training for employees on a back burner. Yet, that is often what over-burdened retail managers and owners do. In fact, one study by Bersin & Associates said that of all industries, spending per learner was lowest in the retail sector.

But the costs of NOT offering wireless retail training to your employees can far outweigh any “savings” you might have thought you’d gain. Here are some very real costs that a wireless store might incur if wireless retail training gets the budget axe:

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    Turnover

    If employees feel unappreciated or unprepared because of a lack of training, they may seek out another job opportunity… maybe with your competitor. When employees leave, it’s not just the cost of placing another ad that managers have to deal with… it’s the loss of time to review resumes, interview prospective employees and check references as well as the ramp-up time needed for a new hire to get to the same level of productivity as the person who left. There may be costs associated with paying out unused vacation or getting hit with higher unemployment insurance rates. And what about the cost of losing customer insight and product knowledge that walks out the door along with an experienced employee?

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    Loss of customers

    An untrained wireless retail salesperson can easily send your business down the tubes. Whether it’s through lack of product knowledge, poor rapport-building skills or inability to close a sale, a salesperson without adequate training risks allowing potential customers to walk out the door… and that’s not a risk businesses can afford! It’s often been said that it can cost nearly six times as much to replace a customer as it does to retain one. Remember… satisfied customers come back; dissatisfied customers tell their friends!

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    Missed opportunities

    Without proper training, a wireless retail salesperson is likely to miss sales or upgrade opportunities that can cost your business and your salesperson money! Training provides sales associates with the understanding of how to ask qualifying questions in order to discover a customer’s real needs. It also helps them become alert for opportunities to upsell and to ask for referrals.

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    Accidents

    Inattention to the condition of the store can bring about costs of a different kind. A floor with spilled soda or other debris might lead to an accident that could cost your business millions in a lawsuit. But wireless retail training can make a sales associate aware of the importance of a well-kept store.

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    Reputation

    A wireless retail salesperson who lacks training carries your store’s reputation in his or her hands. We’ve all experienced a time when a simple interaction or observation affected our decision to steer clear of a business forever more. It might have been a salesclerk that was too snooty, too full of techno-babble or too busy to help us. Or a store that was crammed with disorganized merchandise, a restaurant with a scurrying pest on the wall, or a shop with music blaring so loudly you couldn’t ask a question. A customer’s first impression lasts, and a trained salesperson knows this.

For wireless retail owners and managers, finding a daily balance between sales, management and employee issues is a challenge, for sure. If you’re going to take the time and effort to bring on a new sales associate for your wireless retail store, make that investment pay off. Don’t just give them a shirt, a slap on the back and a hearty “Go get ’em!” Invest in training your workforce to represent your business well, and you won’t find yourself in the vicious cycle of having to replace an untrained worker again and again.