PERFORMANCE MANAGEMENT IN RETAIL
Over the last decade Dubai has established itself as a retail capital offering a variety of shopping malls and luxury brands and a wealth of opportunities for retailers from all over the world. Retailers face an increasingly competitive market. In particular, ensuring an excellent customer experience is now vital in securing brand loyalty.
A key way to achieve increased custom and build sales is by delivering exceptional customer service. It is important that retailers incentivise their employees to deliver great customer service and apply careful performance management when this is not the case.
How can retailers effectively use performance management to deliver higher levels of service and motivate employees?
There are a number of practical methods which retailers can adopt, such as:
- Set clear expectations – it is important to ensure that all employees understand the levels of service expected of them and the importance of great service to their customers. Introducing a clear set of performance targets is one way of achieving this.
- Incentivise employees to go the extra mile – employees are more likely to demonstrate exceptional service if their efforts are rewarded and appreciated by the business. Positive feedback can help motivate employees as well as offering rewards such as bonuses to those who meet and exceed performance targets.
- Offer coaching and training – when service levels are not being met, it is important to coach employees to remedy any performance issues sooner rather than later. Having a clear training programme in place can assist with this.
- Be consistent – it is important to take a fair and consistent approach in situations where an employee is underperforming. Before applying any disciplinary policy, the business should consider whether coaching can solve the issue. It is often best to offer the employee a reasonable period for improvement. It may be necessary to give the employee a warning where there are continued performance issues. More serious disciplinary action may also need to be taken depending on the particular circumstances. A consistent approach will ensure that all employees know and understand what is expected of them.
Achieving outstanding customer service requires retailers to apply a number of factors, including introducing clear processes and ensuring that senior managers lead by example. An improved customer experience brings the benefit of repeat custom and a boost to sales. It is therefore essential to implement processes to support performance management.
Author: Luke Tapp
Job Title: Senior Associate, Pinsent Masons
Area of Specialism: Employment Law (Middle East)
If you are interested in setting up a retail consultancy in Fujairah Creative City Free Zone or opening a retail chain in Dubai, contact the business setup experts at CREATIVE ZONE.