Retail Sales Associate (RAS / Q0104)

Retail Sales Associate

(RAS / Q0104)

Student Handbook

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 Retail Sales Associate (RAS / Q0104)

Index
Table of Content Page No.

1. To process credit applications for purchases 3

2. To help keep the store secure- 16
3. To help maintain health and safety- 48
4. To demonstrate products to customers 73
5. To help customers choose right products 84
6. To provide specialist support to customers facilitating purchases 112
7. To maximise sales of goods & services 120
8. To provide personalised sales & post-sales service support 134
9. To create a positive image of self & organisation in the customers mind 163
10. To resolve customer concerns 179
11. To organise the delivery of reliable service 194
12. To improve customer relationship 222
13. To monitor and solve service concerns 230
14. To promote continuous improvement in service 239
15. To work effectively in a retail team 254
16. To work effectively in an organisation 269

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Chapter 1

To process credit applications for purchases

Credit granting procedure

A credit review process is needed to ensure that a business does not grant credit to customers who
are unable to pay. The credit department handles all credit reviews. The department may receive
paper copies of sales orders from the order entry department, documenting each order requested by
a customer. In this manual environment, the receipt of a sales order triggers a manual review process
where the credit staff can block sales orders from reaching the shipping department unless it
forwards an approved copy of the sales order to the shipping manager.

The order entry procedure for a manual system is outlined below.

1. Receive sales order. The order entry department sends a copy of each sales order to the credit
department. If the customer is a new one, the credit manager assigns it to a credit staff person.
A sales order from an existing customer will likely be given to the credit person already assigned
to that customer.
2. Issue credit application. If the customer is a new one or has not done business with the company
for a considerable period of time, send them a credit application and request that it be completed
and returned directly to the credit department. This may be done by e-mail to speed the
application process.
3. Collect and review credit application. Upon receipt of a completed sales order, examine it to
ensure that all fields have been completed, and contact the customer for more information if
some fields are incomplete. Then collect a credit report, customer financial statements, bank
references, and credit references.
4. Assign credit level. Based on the collected information and the company’s algorithm for
granting credit, determine a credit amount that the company is willing to grant to the customer.
It may also be possible to adjust the credit level if a customer is willing to sign a personal
guarantee.

5. Hold order (optional). If the sales order is from an existing customer and there is an existing
unpaid and unresolved invoice from the customer for more than $___, place a hold on the sales
order. Contact the customer and inform them that the order will be kept on hold until such time
as the outstanding invoice has been paid.

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6. Obtain credit insurance (optional). If the company uses credit insurance, forward the relevant
customer information to the insurer to see if it will insure the credit risk.
7. Verify remaining credit (optional). A sales order may have been forwarded from the order
entry department for an existing customer who already has been granted credit. In this situation,
the credit staff compares the remaining amount of available credit to the amount of the sales
order, and approves the order if there is sufficient credit for the order. If not, the credit staff
considers a one-time increase in the credit level in order to accept the order, or contacts the
customer to arrange for an alternative payment arrangement.
8. Approve sales order. If the credit staff approves the credit level needed for a sales order, it
stamps the sales order as approved, signs the form, and forwards a copy to the shipping
department for fulfillment. It also retains a copy.
9. File credit documentation. Create a file for the customer and store all information in it that was
collected as part of the credit examination process.

Credit Facility

What is a 'Credit Facility?'

A credit facility is a type of loan made in a business or corporate finance context, including revolving
credit, term loans, committed facilities, letters of credit and most retail credit accounts. Companies
frequently implement a credit facility in conjunction with closing a round of equity financing or
raising money by selling shares of its stock. A key consideration for any company is how it will
incorporate debt in its capital structure while considering the parameters of its equity financing.

BREAKING DOWN 'Credit Facility'

A credit facility lets a company take out an umbrella loan for generating capital over an extended
period of time.

Flexibility of a Credit Facility

A business may use a credit facility rather than reapplying for a loan each time it needs money. The
company may take out a credit facility based on collateral that may be sold or substituted without
altering the terms of the original contract. The facility may apply to different projects or departments
in a business and be distributed at the company’s discretion. The time period for repaying the loan
is flexible.

Terms and Structure of a Credit Facility

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A credit facility agreement details the borrower’s responsibilities, loan warranties, lending amounts,
interest rates, loan duration, default penalties, and repayment terms and conditions. The contract
opens with the basic contact information for each of the parties involved, followed by a summary
and definition of the credit facility itself. The summary includes a brief discussion of the facility’s
origin, the purpose of the loan and the ways in which funds are distributed. Specific precedents on
which the facility rests are included as well. For example, statements of collateral for secured loans
or particular borrower responsibilities may be discussed.

Repayment Terms of a Credit Facility

The terms of interest payments, repayments and loan maturity are detailed. They include the interest
rates and date for repayment, if a term loan, or the minimum payment amount and recurring payment
dates, if a revolving loan. The agreement details whether interest rates may change and specifies the
date on which the loan matures, if applicable.

Legal Provisions of a Credit Facility

The credit facility agreement addresses the legalities that may arise under specific loan conditions,
such as a company defaulting on a loan payment or requesting a cancelation. The section details
penalties the borrower faces if defaulting and steps the borrower takes to remedy the default. A
choice of law clause itemizes particular laws or jurisdictions consulted in case of future contract
disputes.

Customer Credit Application Process

Many businesses extend credit to customers through a customer credit application process in
hopes of helping them purchase big ticket items with the convenience of paying for them over
time. When the customer credit application process is complicated, customers are less likely to
bother, and there are more chances for mistakes along the way.

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Paper forms take a long time to fill out, plus they’re prone to loss and errors.

If it has been a while since you have reviewed your customer credit application process, perhaps it’s
time for revaluation. You may be able to make significant improvements, making it faster, less error-
prone, and more efficient, without a major project or expense. It’s good to start by knowing where
today’s customers are coming from.

What Customers Want Today

Customers today are used to doing everything online, and an increasing number of things using
mobile technology. Filling out a customer credit application by hand, or phoning a contact center
and relating information for them to put into forms is perceived as antiquated and a hassle. They
want to go online, enter their information securely, and get a quick answer as to whether credit will
be extended.

The old days of turning in paper applications and then waiting for mail or a phone call to arrive with
the decision of whether credit would be offered or not are part of the past now, and if you still rely
on these methods for providing customer credit, you could be missing out on a lot of applicants and
their spending power.

Make Your Application Forms Smart

Electronic credit application forms are better for multiple reasons. For one, they won’t get lost (along
with any personal information entered on them). They’re by definition legible, and you can design
your electronic forms to ensure inappropriate answers can’t go through. For example, if a number
is required in a particular form field, the form can be made to refuse submission if letters are
mistakenly entered.

Furthermore, you can design your forms so that information entered one time “waterfalls” into other
related forms and fields. When a customer enters his phone number once, it can be used to fill in
phone number information in multiple places at once, minimizing the chances of errors and
considerably speeding up the process.

Faster Approval Means More Enthusiastic Customers

When your customer credit application process is both electronic and “smart,” it goes faster. When
an application is submitted, recipients can be notified by text or email alert that their input and action
is required. This is much more efficient than the paper form that hibernates

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under a stack of papers on someone’s desk until they discover it.

The more quickly a credit is approved, the sooner a customer can go shopping!

A smart customer credit application process means customers find the process less daunting, and
they get their answer sooner. The sooner a customer is approved for credit, the sooner he or she can
enjoy shopping with you.

Simplified Credit Application Draws More Applicants

It only makes sense that a simplified credit application process draws more applicants than a drawn-
out, complex process. Some businesses set up application kiosks that are convenient for in-store
customers and that work similarly to how the process works on your business website. When a
customer sees a high-ticket item in your store and knows he or she can get credit approval in a short
amount of time, it’s an easier decision to go ahead and apply. The more customer credit applications
your business receives, the more it approves, and the more customers are able to purchase from you.
It’s a win for all parties involved.

Process Maker comes with an impressive array of built-in tools and templates, so you can develop
processes like the credit application process quickly. Furthermore, you can take out the Process
Maker Enterprise Edition for a free test drive, or download the Community Edition of Process
Maker. There’s simply no reason your business has to be stuck with an antiquated customer credit
process that today’s customers won’t bother with.

Purpose of a credit card

How credit cards work

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When you apply for a credit card, you apply to borrow money from the card issuer, usually a bank.
The issuer will look at your credit history before it accepts your application – and if you have a low
credit score you could be refused credit, or perhaps given a less attractive deal.

If all is well, the bank will set a credit limit, which is the maximum amount you can spend on the
card. The card company will send you a statement every month, detailing the transactions on the
card, plus the amount owing. It will also provide details on the minimum payment you need to make
and the payment due date.

Borrow money for nothing

Most credit cards come with an interest-free period of about 56 days. In other words, as long as you
clear the balance in full when you receive your monthly statement, there will be no interest to pay.

If you’re looking to make a big purchase, then a credit card with a 0% interest rate for a specified
period is what you need. It’s possible to get a card where no interest is charged for over two years.
Once the interest-free period comes to an end, you will then start paying interest of around 19% or
more – although one option would be to transfer the outstanding balance to a new card.

Pay more than the minimum

If you do not clear the outstanding balance you will be charged interest. At the very least, you must
pay the stated minimum each month, but try to pay as much as you can afford. If you make only the
minimum monthly payment, it could take many years to clear the debt.

Our handy credit card calculator will help you work out how long it will take to pay off your balance
based on your current payments. You can also find out how your payments will change should you
want to clear your balance by a set date.

Beware penalty charges

Anyone who misses a payment or misses the payment deadline will normally have to pay a penalty
charge. There is also a penalty if you exceed your credit limit. So it’s important to be in control of
your credit card and monitor your statements. And if you are running into problems, contact the card
issuer immediately.

Don’t withdraw cash

You can use your credit card to withdraw cash from an ATM, but it’s best to resist the temptation.
There is usually a fee for cash withdrawals and the rate of interest is typically higher than the

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standard rate on the card. Plus, there is usually no interest-free period, so the cash withdrawal will
start to rack up interest immediately.

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