problem solving examples retail

10 Common Retail Problems (And How to Solve Them)

In today’s fast-paced business environment, it’s harder than ever for small business retailers to stay up on the latest trends and work to outpace eCommerce stores. With these constant-changing factors, it’s no surprise research shows that half of all retail businesses close in their first two years.

In this cutthroat environment, it can seem as if one mistake can cause a small business to close up shop. Luckily, we’re here to help. Everyone makes mistakes, and that’s okay. We just want to ensure that none of your mistakes affect your small business. Whether you’re experiencing problems in your business or not, here are the 10 most common retail problems and how you can solve them as an entrepreneur.

Problem #1: Neglecting Store Operations

One of the biggest mistakes many retailers make is neglecting their store operations, which in-turn causes them to neglect their customers. The worst thing about this problem is that many entrepreneurs don’t even realize they do this.

Too many retailers have their minds in the wrong place, and instead of focusing on the success and growth of their business, they worry too much about personal accomplishments with the company. They start off with a strong work ethic, but when they see small successes, their motivation lessens, and they begin to coast.

The best businesses strive for upward growth and don’t stop, even when they receive praise and admiration. So if you feel like you’re starting to coast as a business owner, it’s time to get back on track.

The Solution

To improve store operations, entrepreneurs can work to take a more hands-on approach to their management. They should be present at the storefront and work to engage customers and employees. Retailers should strive to be aware of their business in all aspects and work on progressing, even if it seems as if they’ve hit their peak. When business owners are actively involved with business operations, they can create a positive culture for their employers and consumers.

Problem #2: Declining Quality Customer Service

The sad truth of the 21 st Century is that if customers don’t have a positive experience at a storefront, they can just purchase the product they want online. This is why poor customer service is such a serious retail problem. It’s important that businesses make an effort to accommodate their customers’ needs because if customers don’t feel appreciated, they will stop visiting physical stores.

You can improve your company’s customer service by showing customers that you respect and value them. Be aware of their wants and needs and show them that you pay attention to detail. You can offer personalized services, unique offerings, or even just a smile and conversation. A little will go a long way. Just think about how you would want to be treated as a customer and what would positively stand out to you during your shopping experience.

Problem #3: Forgetting About the Data

Numbers can sometimes be confusing or unappealing, but to a business owner, you have to be aware of what numbers your business is driving and what they mean. You can’t just sit back and hope that you’re generating a positive cash flow. You must be hands-on and know where your money is coming from and where it goes.

It’s good to be passionate about your business and start a company because you care about it, but you also need to take the next step to help it succeed by being data driven. Many entrepreneurs make decisions only based off emotion, but you also need to take trends and statistics into account.

If you know about data but aren’t applying your knowledge, work to make your decisions more number driven. If you aren’t comfortable with numbers or finances, educate yourself by reading, taking a course, or asking someone for help.

When you gain knowledge and insight, work to make decisions based on a mix of logical and emotional reasoning. Don’t rely solely about how you feel about your business but use your passion to learn about the data you’ve collected and make strategic, smart decisions with both elements together.

Problem #4: Failing to Adapt

You’ve probably had to adapt a lot within the past few years as new technology and trends have emerged. But businesses have been adapting since the start of time, and positive change is a good thing so don’t push it away.

Being outdated can be the demise of a small business, so make sure to stay current with the latest trends. Small businesses are already a big trend, so you’re already partly there!

To continue adapting, ask yourself and the people around you questions, and take time to think about the answers. Ask “what if” and “why” more often and be open to input. If your company is very outdated, it might be time to reevaluate your business. It can also be beneficial to see what other small businesses are doing to adapt. For example, you might want to update your company’s website or create a social media presence. Whatever you decide to do, just be ready for what’s next!

Problem #5: Underestimating Commitment to the Store

Some small business owners forget that opening a retail store comes with many consuming tasks such as a nonstop cycle of buying, marketing, displaying, and selling products. This process can sometimes be very overwhelming and demanding for some entrepreneurs. It also means that business owners endure long days or nights, nonstop ordering, and bill paying. Even though this can be tiresome, the minute you put it on the back burner, your small business can start to fail.

Of course, you can hire more employees, but it’s not always that easy.

You need to make your storefront a priority, because if you’re not looking after it, no one will. Take the time to get organized and create a schedule for taking inventory, ordering stock, and selling products. It’s going to be a lot of work, so hire team members if you need extra hands on deck. But remember the importance of being committed to your store, and know that if you are committed, so will your employees and customers.

Problem #6: Trying to Do It Alone

With a lot of responsibilities as a small business owner, there does come a time when you need to delegate tasks and onboard more team members. Your business won’t be able to grow and develop if you spend all your time bogged down by stressful tasks and don’t leave any room in your schedule to brainstorm or reflect. The time will come when you finally need to take a step back and ask for help.

When you’re finally ready to ask for help, hire and train a carefully selected staff who want your business to succeed just as much as you do. Delegate responsibilities to your new team and have them help with selling, organizing, marketing, inventory, accounting, or any other tasks you need. While they are working, take time to focus on bettering your business and put your effort into doing what you love.

Problem #7: Having an Undeveloped Brand

Sometimes I’ll walk into a store that clearly has an undeveloped brand. Maybe they’re selling too many items and I’m not sure why there are so many random things, or it could be too niched, and I’ll be turned off that I don’t fit the store’s targeted audience.

It’s important that small businesses find a happy medium between these two poles. Don’t have too large of an inventory and overwhelm customers, but also don’t turn customers away by being too niched.

A good rule of thumb is that each item in your store should make sense and contribute to your store’s overall vibe.

To develop your store’s brand, you should first decide on your store’s look and feel. Think about what your store’s personality would be like: how does it talk, what does it wear, what music does it listen to? Ask yourself all those questions and more to establish your branding. Next, curate your merchandise to reflect that brand. Your products should tell a story about your company, and that story should be understood by your customers from the minute they walk in.

Problem #8: Being a Bad Employer

Being a business owner is a tremendous responsibility, but sometimes the recognition and power of owning a business can get to the head of many entrepreneurs. This can create a negative power dynamic and create tension among leaders and employees. The jobs of business owners are to help manage and train people to be better. Thus, everyone should be working collectively for the betterment of the company. If you’re experiencing problems with your team, it might be time for you to take a reality check and see if it’s time to improve your employer-employee relations.

You’ve done amazing things in your life and have reached great successes, but sometimes it comes time for you to humble yourself and reassess your leadership strategies. Don’t be the boss. Be a leader. If you don’t invest in people, then they won’t invest in you or your company. Similarly, if you have a negative work culture, you need to change it. It is your responsibility to set a great example, listen to, and be supportive of your employees. Set an example by being kind and caring about people, but also make sure to separate your work and home lives. Get off your phone and work hard, and your employees will follow suit. Ultimately, you are responsible for your company culture, so work hard to be a good leader and your team will follow.

Problem #9: Ignoring the Market

Many business owners can sometimes turn a blind eye to the market, which can ultimately damage their company and decrease their revenue. Business owners make this mistake by selling items they want to sell rather than selling items their consumers desire. However, it is important to keep updated with new and developing trends and be aware of which items sell and which don’t.

First off, you should take an inventory analysis. An inventory analysis is a way for you to determine which products are worth keeping and what needs to be removed from the shelf. This can help you figure out what items are most popular so you can know what items you need the most of. Sometimes it can be hard to put your feelings aside and remove an item you like, but ultimately you need to focus on the consumers’ demands because their purchases determine the revenue for your business.

Problem #10: Overlooking Business Basics

Time to go back to business 101. As a business owner, it is imperative that you know the business basics and how they apply to your company. It might be hard to believe that this is a common mistake, but trust me, it is. Many business owners try to take short cuts because they think they can, but short cuts don’t get the job done. Proper planning and strategizing are crucial for any successful business and they can’t be avoided.

It’s okay to take time to refresh your basic business skills, but don’t forget or try to bypass the necessities. You need to know how to write a business plan, prepare for hiccups along the way, and handle your money and investments.

Many small business owners make these mistakes, and that’s okay! We want you to learn from your mistakes and continue to grow your business to be the best it can be.

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10 major retail problems and solutions [with real-world examples]

By: Jul Domingo

Retail companies are vulnerable to two issues: economic woes and inefficient internal processes. These stumbling blocks have made business ownership harder for 72% of entrepreneurs .

But unlike economic issues, you can do something to rectify internal inefficiency. Your process is something you can control. To ensure your retail store survives hard times, run health checks on a regular basis and implement new strategies to counter problems as they emerge.

Retailing is never easy, but the right practices can help you face future risks. Coupled with the right tools, it’s possible to transform your business and make it leaner.

Take the time to educate yourself and your team about the current retail problems and solutions. We’ve outlined a few below.

10 most common retail problems and solutions

Retail businesses—both start-ups and growing companies—need to take proactive measures to remain competitive. But you need to be smart about it since your resources are limited.

Learn how to avoid business failure with these suggested solutions (even if you haven’t encountered some of these issues yet).

1. The absence of efficient data collection and analysis

Running a retail business means focusing on customer service, demand fulfillment, sales promotions, and inventory management. Mapping out plans in these areas needs solid, reliable data.

Biased, gut-driven decisions are common when a company has no single source of truth. It’s easier and common ( over 58% of survey respondents ) to “trust your instincts” because, well, you don’t have other things to rely on. But this has repercussions.

For instance, without knowing how much profit your brick-and-mortar stores and online platforms make, it’s possible to believe that you’re making money even when one of your channels is underperforming. This lack of data can further influence ill-informed initiatives, such as continuously stocking up on underperforming products.

Solution: Invest in data and analytics tool

Define your short and long-term goals and find the right tools for capturing, storing, and interpreting relevant data. Data you can use to create better, more effective strategies.

If you’re looking to optimize your website, simple and free tools, like Google Analytics, exist, so you can monitor visitor behavior and find out where you need to improve.

Advanced data and analytics tools, on the other hand, can detect patterns to assess past performance and understand future events.

For instance, Inventoro’s sales forecasting tool uses mathematical equations and deep machine learning to maximize your investment across all of your warehouses and sales channels. It all depends on your strategy.

Kulina, a decade-old store, doesn’t take any chances. The company uses quarterly goals to drive its sales forecasts. Keeping ahead of the game allows them to develop favorable relationships with their suppliers through strategic bulk buying.

With our tool’s Golden Brick feature, the brand can also see how much money they lose by not selling certain items. Seeing their potential, they can find out which products are worth investing in. Read more about our case study here .

The bottom line? Data-based insights and forecasts allow businesses to optimize their performance by addressing gaps before they turn into nightmare scenarios. Rather than making wild guesses from thin air, data enables your business to make informed, reliable decisions.

2. Inability to meet market needs

Some retail businesses put their eggs in multiple baskets without optimizing their selling channels and product portfolio .

Approximately 63% of customers expect businesses to know their unique needs (e.g., product availability, price fairness, convenience, and timely fulfillment). Otherwise, the unmet expectations may leave them feeling disappointed and unsatisfied.

As an example: Dressbarn, a women’s clothing retailer, incurred losses when it closed all 650 retail outlets in 2019. Due to online shopping’s popularity, it was unable to attract foot traffic. It’s a waste of resources if you stocked too many products at each of your retail outlets when your customers mostly shop online.

In the same vein, if you continue to invest in the wrong products, you may find yourself–even facing a double trouble situation. Your shop will constantly run out of popular items, which might cause 70% of your customers to switch to your competitors.

You’ll also pile up your warehouse with permanent occupants. And the more dead stock there is, the higher the holding costs. This ceramic business case study proved that the product cost to a company is more than production costs alone. The accumulated warehouse, maintenance, and disposal expenses play a huge part.

Over time, your stocks will skyrocket without meeting demand, creating a fertile ground for retail failures.

Solution: Understand consumer demand and behavior

Conduct research about your products and channels through reviews, surveys, and direct interviews. To do so, reassess the customer journey from the initial touchpoint to the point of purchase, then decide when to bring your chosen medium in.

If you decide to go for a survey, you can sneakily add a pop-up feedback form or a separate contact page like this one from Supernatural , a retailer of plant-based food products.

Source: Supernatural

Customer feedback can help improve key areas where customer satisfaction falls short. It could be the quality, the price, the product availability, or the payment method.

You can also gain an in-depth understanding of demand with a product portfolio tool like Inventoro. It lets you stock up on in-demand items while removing those with the lowest turnover rate.

About 21% of retailers are reducing their portfolio and focusing only on a few products for the same reason. It allows them to nurture their top-selling products while preventing lost sales opportunities.

Understanding these market-related retail problems and solutions can sustain your business, especially during an economic downturn.

3. Inability to meet market needs

You’ll also pile up your warehouse with permanent occupants. And the more dead stock there is, the higher the holding costs. This case study of a ceramic company shows that the product cost to a company is more than production costs alone. The accumulated warehouse, maintenance, and disposal expenses play a huge part.

Over time, your stocks will skyrocket without satisfying the demand—this makes for a fertile ground for retail failures.

4. Ineffective retail inventory management

Most retail problems and solutions revolve around inventory, as it is a retailer’s most significant investment.

Poor inventory practices can suck up your capital, cause store inefficiencies, and make you lose your competitive edge. Moreover, not replenishing on time or selling as fast as you forecasted can also lead to significant financial losses.

McKinsey reported that 32% of businesses blamed their supply chain woes on inventory inefficiencies, such as poor forecasting and demand variability. In a separate study, ineffective replenishment methods are reported to account for 70% to 90% of out-of-stock situations . Your retail business is likely to suffer without strategic management to resolve these issues.

Solution: Diagnose your inventory health

Address the root of inventory problems by observing irregularities in the process flow. Do you often struggle with overstocking or stockouts ? Is your inventory costing you too much and turning over too slowly? Perhaps, your Excel forecast calculations don’t bring accurate results.

If that’s the case, conduct an inventory audit on a separate record to correct any incorrect balances. Don’t forget to double-check the count of your recent purchase orders as you reset your stock balances. For better results, you can invest in sales forecasting and intelligent replenishment tools to reduce human intervention and errors in the long run. It’ll also save you up to 20 hours a week on mundane admin tasks.

Retailers need to rethink the way they manage their stocks. About 77% of business owners already responded to that call by using technology to upgrade their inventory management.

All things considered, manual inventory management is no longer the most efficient way to keep track of all the inventory going in and out of your business. While paper based methods are used by many small businesses, in order to scale up you will need to implement more universal inventory management systems that allow you to oversee inventory throughout large warehouses or across multiple locations.

Don’t let bad stock management ruin your business. Check your inventory’s health today with Inventoro.

5. ignoring cash flow problems.

Some short-term cash flow problems can cause long-term insufficiency in your operating capital. After all, it wouldn’t be possible for your business to function without cash. 82% of failed small businesses point to poor cash flow management as the reason for their demise.

The temporary lack of cash on hand can also accumulate unpaid bills and invoices inflated by interests and penalties. Worse, this breach of contract can also prompt legal action, causing irreversible damage to your business.

Solution: Improve cash-flow management

How do you avoid business failure caused by negligent cash flow management? It’s a simple money rule: don’t let your outflows exceed your inflows .

However, that’s not always feasible as sales fluctuate, and some customers settle their invoices late.

So, it’s pivotal to identify the factors affecting your poor cash flow and implement strategies to alleviate the problem.

Slow receivable collections? Try offering early payment incentives. Low sales or poor inventory turnover? You can devise new marketing efforts and increase your cash flow by bundling your products or holding flash sales.

Source: Milled

Take a cue from Vitauthority , an online supplement provider. Pair your slow-moving products with your bestsellers. This strategy is two-fold. First, it reduces your inventory holding costs lowering your outflow. Second, sold bundles boost your inflow.

Source: Vitauthorithy.com

Another strategy you can borrow from the online brand is holding flash sales. But make sure you do this in moderation to avoid reducing the value of your brand and your products.

Read about cash-flow-related retail problems and solutions in this article .

6. Not prioritizing customer satisfaction

Retailers who don’t collect feedback or act on one are likely to develop toxic customer relationships.

Customers are the sole reason your business exists. Poor customer service and under-delivered promises can drive potential customers away and hurt your brand reputation. This is likely due to the staggering 62% of past shoppers who admitted sharing negative experiences with others (who might be your prospects).

Most of these customers will take to social media to vent their frustrations. And when it hits the socials, who knows how far it will go. TikTok videos with #badcustomerservice have garnered about 73 million views.

Meanwhile, on Twitter, it’s common to call out companies and tag their accounts. Which is exactly what this unhappy Crocs shopper did:

Source: Twitter

Solution: Observe proactive customer service

Listen and respond to customer requests promptly and be transparent with them. You can involve in-store customers by displaying suggestion boxes in your outlets and training staff members on how to cater to your shop visitors better.

Online, you can include a FAQs help center and a request form on your website, like this one from Welly , a first aid kit retailer. You don’t have shop attendants that can help your customer navigate through your online store, so it’s a good idea to anticipate what they’ll need and hand it to them before they ask.

Source: Welly

Last but not least, make a difference in customer experience–both online and offline–by satisfying your customers with a broader product range . They won’t have to ditch you for competitors like the 61% of buyers who would switch to a new brand after a poor shopping experience. Use the right tool to achieve it with minimal inventory investments.

Excellent customer service leads to three times higher returns and faster financial recovery for retail businesses. You’ll do well to hone your business in this area. Pro Tip : By automating repetitive business tasks, you can devote more time to customer service.

7. Sole reliance on PPC advertising

PPC advertising is a retail game-changer. About 19% of people click on paid ads because of a compelling title, description, or image—imagine the traffic and engagement you could garner. However, focusing on fleeting pay-per-click ads alone can only build awareness and not long-term customer loyalty.

General retail and online retail businesses experience 24% and 22% customer churn rate , respectively. Your advertisements may be effective at attracting prospects. But your business can’t grow unless you encourage existing customers to return.

Solution: Lay the foundation for marketing efforts

Let’s recall the first talking point on this list of retail problems and solutions: back up your digital marketing efforts with customer data and analytics.

With richer and more accurate insights, you can tailor your brand promotions to their preferences and behaviors.

Show off your unique brand voice and story with visual content your customers would really want to see. Look at how Dannijo markets itself as a sisterhood, and not just a jewelry brand.

The #DANNIJOGIRLS hashtag used by the community is also a clever way to improve searchability, impressions, and engagements.

Source: Instagram – Dannijo

Other strategies include introducing loyalty programs, rewards, and discount vouchers for their next purchases. You can also throw gifts into every order exceeding a certain amount. This is a clever way to dispose of dead stock in your warehouse while demonstrating generosity to your shoppers. Find out how to get rid of dead stocks here .

The goal is to nurture each lead through the following stages: reach, acquisition, conversion, retention , and loyalty . If you do this right, you can attract 80% of customers who believe that being loyal to a brand involves frequently purchasing their products.

8. Inadequate business growth plans

Growing your business has two major goals: remain competitive and remain relevant.

Complacency can lead to retail failures. If an emerging retailer with breakeven sales is no longer willing to take on additional risks to enter new markets, there’s little choice but to scale back to survive.

It’s even happened to large enterprises. We’ve seen Fortune 500 companies go under this way (Blockbuster, General Motors, Kodak, and Toys R Us), proving that a progressive approach is essential to success.

But even if you sell innovative products and keep up with the trends, it’s not enough. You need to encourage customers to come back.

Unfortunately, this was revealed late to the DTC mattress brand Casper . What was once a fast-growing company found itself in a bind after realizing that it didn’t offer any significant benefits to its existing customers.

Solution: Upgrade processes and strengthen relationships

Of this list of retail problems and solutions, this one offers varying solutions. It all depends on your plan.

Remaining competitive requires a straightforward approach: Adapt to trends–whichever way it looks for your competitors.

Understand demand and economic fluctuations, and assess how you can modify your offers to gain a competitive edge. Then, use these insights to outperform your competitors and boost customer trust.

Next is to research your company’s strengths, weaknesses, opportunities, and threats in the industry.

Dressbarn now operates as an online retailer. Source: Dressbarn.com

After the demise of Dressbarn, a new parent company brought it back to life by converting it into an online retail store and capitalizing on the surge in e-commerce sales . Good news: the fashion retailer continues to thrive today.

Being competitive is part of remaining relevant. But a large chunk of it is cultivating strong business relationships as a foundation for growth. Engage and build trust with both your suppliers and customers.

For suppliers, long-term partnerships are key. This study proves that your suppliers would want a lasting relationship with you. They win by having lower selling, general, and administrative expenses.

You win by negotiating a better, long-term deal. We’ve seen this happen to our customers. Our “merge orders” function can help them gauge how much they’ll need from their suppliers. They leverage this information by getting a sweeter but more lasting contract.

As for building trust with customers, serving them better often works. The tips in items #2, #3, #5, and #6 provide some helpful advice.

9. Scaling up the business too early

If scaling up for growth is essential, so is proper timing. Premature scaling practices aren’t only expensive and can end your retail business for good. According to this IBFR study , a lack of business plan is a major culprit for startup and scaling business failures.

Such as the case with Wise Acre Frozen Treats when it landed a contract with a national distributor without enough resources.

CEO Jim Picariello applied for several loans to fund the massive increase in demand. Yet despite ongoing efforts to scout bankers and investors, they’re still unable to raise the money necessary to pay the bills and continue the operation. In the end, this poor timing resulted in thousands of unfulfilled orders and a bankruptcy filing.

Solution: Outline the parameters during the transition

Expansion is any business owner’s point of no return. It’s not for the fickle-minded. So, before signing any contract and applying for bank loans, ask yourself these questions first:

• Is the business expansion necessary right now?
• Do you have enough budget to pay for new facilities, equipment, software, and employees?
• Are you capable of fulfilling the sudden shift in demand?
• Do you have other income streams to help you recover from severe losses if things don’t go as planned?

Once you’re confident, document the new business processes and take the time to onboard your staff. Then, you have all the time to equip yourself and your team to review these retail problems and solutions.

10. Lack of task delegation

Retailers, particularly small business owners, tend to avoid hiring more workers to reduce costs. It’s not discouraged, but the problem arises when a lack of task delegation begins to burn you and your existing team. Stress and burnout remained high for managers, and it could only get worse without proper task delegation.

Work-related burnout reduces professional efficacy and compromises the quality of work, which can be just as costly as outsourcing. Taking on even the smallest routine tasks as an entrepreneur is no different.

Solution: Consider outsourcing

You can delegate tasks through third-party outsourcing if you can’t afford to hire full-time retail employees. Look for freelancers and agencies who can assist you fulfill time-consuming tasks, such as social media and content marketing, repetitive administrative tasks, warehousing, and order fulfillment.

For instance, outsourcing logistic services from 3PL providers can save you the hassle of paperwork and frequent audits. Even better, they can help reduce shipping errors, delayed shipments, and stockout situations–especially if you’re making the move to micro-fulfillment, a growing trend in retail.

Using this distribution method, the fulfillment facility is localized near the customer base, thus shortening delivery lead times.

To help you determine which businesses are likely to benefit from this, Nick Malinowski, co-owner of 3PL company OTW Shipping LLC , explained: “Micro-fulfillment is going to be crucial for large retailers to offer an improved delivery experience for impatient customers. It also opens up the option for grocery delivery.”

Your staff will have a lot to do if you decide this model is right for your business and customers. You’ll also have to shell out resources (time and money) to get it done. Outsourcing takes away the hurdle and makes it easy to dive in and try things out without taking a huge financial hit.

The right tools can help you overcome the fear of retail failure

No business has ever succeeded without first facing risks and challenges. Confront them confidently by relying on data, fulfilling demand, optimizing processes, boosting capital, and staying one step ahead of the competition.

With Inventoro’s smart inventory features, you can achieve all of the above on your most valuable asset: inventory. Use it to optimize your product portfolio, generate accurate sales forecasts, and receive daily replenishments to maintain your stocks at optimal levels.

Request a demo today.

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26 Expert-Backed Problem Solving Examples – Interview Answers

Published: February 13, 2023

Interview Questions and Answers

Actionable advice from real experts:

Biron Clark

Former Recruiter

Contributor

Dr. Kyle Elliott

Career Coach

Hayley Jukes

Editor-in-Chief

Biron Clark , Former Recruiter

Kyle Elliott , Career Coach

Hayley Jukes , Editor

As a recruiter , I know employers like to hire people who can solve problems and work well under pressure.

 A job rarely goes 100% according to plan, so hiring managers are more likely to hire you if you seem like you can handle unexpected challenges while staying calm and logical.

But how do they measure this?

Hiring managers will ask you interview questions about your problem-solving skills, and they might also look for examples of problem-solving on your resume and cover letter. 

In this article, I’m going to share a list of problem-solving examples and sample interview answers to questions like, “Give an example of a time you used logic to solve a problem?” and “Describe a time when you had to solve a problem without managerial input. How did you handle it, and what was the result?”

• Problem-solving involves identifying, prioritizing, analyzing, and solving problems using a variety of skills like critical thinking, creativity, decision making, and communication.
• Describe the Situation, Task, Action, and Result ( STAR method ) when discussing your problem-solving experiences.
• Tailor your interview answer with the specific skills and qualifications outlined in the job description.
• Provide numerical data or metrics to demonstrate the tangible impact of your problem-solving efforts.

What are Problem Solving Skills? 

Problem-solving is the ability to identify a problem, prioritize based on gravity and urgency, analyze the root cause, gather relevant information, develop and evaluate viable solutions, decide on the most effective and logical solution, and plan and execute implementation. 

Problem-solving encompasses other skills that can be showcased in an interview response and your resume. Problem-solving skills examples include:

• Critical thinking
• Analytical skills
• Decision making
• Research skills
• Technical skills
• Communication skills
• Adaptability and flexibility

Why is Problem Solving Important in the Workplace?

Problem-solving is essential in the workplace because it directly impacts productivity and efficiency. Whenever you encounter a problem, tackling it head-on prevents minor issues from escalating into bigger ones that could disrupt the entire workflow. 

Beyond maintaining smooth operations, your ability to solve problems fosters innovation. It encourages you to think creatively, finding better ways to achieve goals, which keeps the business competitive and pushes the boundaries of what you can achieve. 

Effective problem-solving also contributes to a healthier work environment; it reduces stress by providing clear strategies for overcoming obstacles and builds confidence within teams. 

Examples of Problem-Solving in the Workplace

• Correcting a mistake at work, whether it was made by you or someone else
• Overcoming a delay at work through problem solving and communication
• Resolving an issue with a difficult or upset customer
• Overcoming issues related to a limited budget, and still delivering good work through the use of creative problem solving
• Overcoming a scheduling/staffing shortage in the department to still deliver excellent work
• Troubleshooting and resolving technical issues
• Handling and resolving a conflict with a coworker
• Solving any problems related to money, customer billing, accounting and bookkeeping, etc.
• Taking initiative when another team member overlooked or missed something important
• Taking initiative to meet with your superior to discuss a problem before it became potentially worse
• Solving a safety issue at work or reporting the issue to those who could solve it
• Using problem solving abilities to reduce/eliminate a company expense
• Finding a way to make the company more profitable through new service or product offerings, new pricing ideas, promotion and sale ideas, etc.
• Changing how a process, team, or task is organized to make it more efficient
• Using creative thinking to come up with a solution that the company hasn’t used before
• Performing research to collect data and information to find a new solution to a problem
• Boosting a company or team’s performance by improving some aspect of communication among employees
• Finding a new piece of data that can guide a company’s decisions or strategy better in a certain area

Problem-Solving Examples for Recent Grads/Entry-Level Job Seekers

• Coordinating work between team members in a class project
• Reassigning a missing team member’s work to other group members in a class project
• Adjusting your workflow on a project to accommodate a tight deadline
• Speaking to your professor to get help when you were struggling or unsure about a project
• Asking classmates, peers, or professors for help in an area of struggle
• Talking to your academic advisor to brainstorm solutions to a problem you were facing
• Researching solutions to an academic problem online, via Google or other methods
• Using problem solving and creative thinking to obtain an internship or other work opportunity during school after struggling at first

How To Answer “Tell Us About a Problem You Solved”

When you answer interview questions about problem-solving scenarios, or if you decide to demonstrate your problem-solving skills in a cover letter (which is a good idea any time the job description mentions problem-solving as a necessary skill), I recommend using the STAR method.

STAR stands for:

It’s a simple way of walking the listener or reader through the story in a way that will make sense to them. 

Start by briefly describing the general situation and the task at hand. After this, describe the course of action you chose and why. Ideally, show that you evaluated all the information you could given the time you had, and made a decision based on logic and fact. Finally, describe the positive result you achieved.

Note: Our sample answers below are structured following the STAR formula. Be sure to check them out!

EXPERT ADVICE

Dr. Kyle Elliott , MPA, CHES Tech & Interview Career Coach caffeinatedkyle.com

How can I communicate complex problem-solving experiences clearly and succinctly?

Before answering any interview question, it’s important to understand why the interviewer is asking the question in the first place.

When it comes to questions about your complex problem-solving experiences, for example, the interviewer likely wants to know about your leadership acumen, collaboration abilities, and communication skills, not the problem itself.

Therefore, your answer should be focused on highlighting how you excelled in each of these areas, not diving into the weeds of the problem itself, which is a common mistake less-experienced interviewees often make.

Tailoring Your Answer Based on the Skills Mentioned in the Job Description

As a recruiter, one of the top tips I can give you when responding to the prompt “Tell us about a problem you solved,” is to tailor your answer to the specific skills and qualifications outlined in the job description. 

Once you’ve pinpointed the skills and key competencies the employer is seeking, craft your response to highlight experiences where you successfully utilized or developed those particular abilities. 

For instance, if the job requires strong leadership skills, focus on a problem-solving scenario where you took charge and effectively guided a team toward resolution. 

By aligning your answer with the desired skills outlined in the job description, you demonstrate your suitability for the role and show the employer that you understand their needs.

Amanda Augustine expands on this by saying:

“Showcase the specific skills you used to solve the problem. Did it require critical thinking, analytical abilities, or strong collaboration? Highlight the relevant skills the employer is seeking.”  

Interview Answers to “Tell Me About a Time You Solved a Problem”

Now, let’s look at some sample interview answers to, “Give me an example of a time you used logic to solve a problem,” or “Tell me about a time you solved a problem,” since you’re likely to hear different versions of this interview question in all sorts of industries.

The example interview responses are structured using the STAR method and are categorized into the top 5 key problem-solving skills recruiters look for in a candidate.

1. Analytical Thinking

Situation: In my previous role as a data analyst , our team encountered a significant drop in website traffic.

Task: I was tasked with identifying the root cause of the decrease.

Action: I conducted a thorough analysis of website metrics, including traffic sources, user demographics, and page performance. Through my analysis, I discovered a technical issue with our website’s loading speed, causing users to bounce. 

Result: By optimizing server response time, compressing images, and minimizing redirects, we saw a 20% increase in traffic within two weeks.

2. Critical Thinking

Situation: During a project deadline crunch, our team encountered a major technical issue that threatened to derail our progress.

Task: My task was to assess the situation and devise a solution quickly.

Action: I immediately convened a meeting with the team to brainstorm potential solutions. Instead of panicking, I encouraged everyone to think outside the box and consider unconventional approaches. We analyzed the problem from different angles and weighed the pros and cons of each solution.

Result: By devising a workaround solution, we were able to meet the project deadline, avoiding potential delays that could have cost the company $100,000 in penalties for missing contractual obligations.

3. Decision Making

Situation: As a project manager , I was faced with a dilemma when two key team members had conflicting opinions on the project direction.

Task: My task was to make a decisive choice that would align with the project goals and maintain team cohesion.

Action: I scheduled a meeting with both team members to understand their perspectives in detail. I listened actively, asked probing questions, and encouraged open dialogue. After carefully weighing the pros and cons of each approach, I made a decision that incorporated elements from both viewpoints.

Result: The decision I made not only resolved the immediate conflict but also led to a stronger sense of collaboration within the team. By valuing input from all team members and making a well-informed decision, we were able to achieve our project objectives efficiently.

4. Communication (Teamwork)

Situation: During a cross-functional project, miscommunication between departments was causing delays and misunderstandings.

Task: My task was to improve communication channels and foster better teamwork among team members.

Action: I initiated regular cross-departmental meetings to ensure that everyone was on the same page regarding project goals and timelines. I also implemented a centralized communication platform where team members could share updates, ask questions, and collaborate more effectively.

Result: Streamlining workflows and improving communication channels led to a 30% reduction in project completion time, saving the company $25,000 in operational costs.

5. Persistence 

Situation: During a challenging sales quarter, I encountered numerous rejections and setbacks while trying to close a major client deal.

Task: My task was to persistently pursue the client and overcome obstacles to secure the deal.

Action: I maintained regular communication with the client, addressing their concerns and demonstrating the value proposition of our product. Despite facing multiple rejections, I remained persistent and resilient, adjusting my approach based on feedback and market dynamics.

Result: After months of perseverance, I successfully closed the deal with the client. By closing the major client deal, I exceeded quarterly sales targets by 25%, resulting in a revenue increase of $250,000 for the company.

Tips to Improve Your Problem-Solving Skills

Throughout your career, being able to showcase and effectively communicate your problem-solving skills gives you more leverage in achieving better jobs and earning more money .

So to improve your problem-solving skills, I recommend always analyzing a problem and situation before acting.

 When discussing problem-solving with employers, you never want to sound like you rush or make impulsive decisions. They want to see fact-based or data-based decisions when you solve problems.

Don’t just say you’re good at solving problems. Show it with specifics. How much did you boost efficiency? Did you save the company money? Adding numbers can really make your achievements stand out.

To get better at solving problems, analyze the outcomes of past solutions you came up with. You can recognize what works and what doesn’t.

Think about how you can improve researching and analyzing a situation, how you can get better at communicating, and deciding on the right people in the organization to talk to and “pull in” to help you if needed, etc.

Finally, practice staying calm even in stressful situations. Take a few minutes to walk outside if needed. Step away from your phone and computer to clear your head. A work problem is rarely so urgent that you cannot take five minutes to think (with the possible exception of safety problems), and you’ll get better outcomes if you solve problems by acting logically instead of rushing to react in a panic.

You can use all of the ideas above to describe your problem-solving skills when asked interview questions about the topic. If you say that you do the things above, employers will be impressed when they assess your problem-solving ability.

More Interview Resources

• 3 Answers to “How Do You Handle Stress?”
• How to Answer “How Do You Handle Conflict?” (Interview Question)
• Sample Answers to “Tell Me About a Time You Failed”

About the Author

Biron Clark is a former executive recruiter who has worked individually with hundreds of job seekers, reviewed thousands of resumes and LinkedIn profiles, and recruited for top venture-backed startups and Fortune 500 companies. He has been advising job seekers since 2012 to think differently in their job search and land high-paying, competitive positions. Follow on Twitter and LinkedIn .

Read more articles by Biron Clark

About the Contributor

Kyle Elliott , career coach and mental health advocate, transforms his side hustle into a notable practice, aiding Silicon Valley professionals in maximizing potential. Follow Kyle on LinkedIn .

About the Editor

Hayley Jukes is the Editor-in-Chief at CareerSidekick with five years of experience creating engaging articles, books, and transcripts for diverse platforms and audiences.

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The 7 Most Common Sales Problems — And How To Solve Them

7 most common sales problems

• Each sale takes way too long
• You don't have enough leads
• Your leads are unqualified
• You're wasting your effort on bad-fit prospects
• You're spending too much time on low-value tasks
• You're not getting the training you need
• You're struggling to prepare for meetings

In a now-famous article published in The Wall Street Journal in 2021, author Patrick Thomas asked the question many business leaders have been wondering for a while now: Why are so few people pursuing a career in sales?

The article touched a nerve and went viral, getting shared over and over on LinkedIn and other platforms. 

The question was a valid one.

Despite high earning potential and a slew of openings, young professionals were not choosing sales as a career — and mid-career salespeople were leaving the field. S ales offers a lucrative career path, but it has its challenges both as a career and as a responsibility within an organization. 

Whether you’re a young professional looking to get started in sales or a veteran sales rep hoping to solve some of your persistent challenges, this article is for you. 

Below, we’ll cover:

The state of sales today

• Six common problems sales teams face
• How to solve them

Whether you’re a sales rep, sales manager, marketing team member, or business leader, this information will help you chart your course forward. 

Let’s dive in together.

The sales industry is full of myths and misperceptions. If you’ve never worked in sales, you likely have an image of a used car salesman in your head, complete with a phony smile and aggressive sales pitch.

If you have worked in sales, you know it can be a stressful job with hard-to-hit monthly quotas, but it's also rewarding work that puts relationships at the center of everything.   

In reality, modern salespeople are relationship builders. They guide and educate prospects as they move toward a purchase.

There’s a lot less pitching and a lot more listening than th ere might have been 20 years ago. According to research from Salesforce , nearly 90% of salespeople say that selling today is more about listening to the customers than it is about talking to the customers.      

Sales reps are not just listening. They're answering questions, they’re managing emotions, shaping expectations, and building trust with prospects. Taking these steps helps eliminate many sales problems from the very start.

To watch a good sales rep in action is to see deft emotional intelligence on full display. 

Salespeople are a business’s gatekeepers

Salespeople a re the face of your organization. They reach out, shake hands (often virtually), and bring customers into the fold.

In their  role, they are always in the process of building relationships and providing guidance. Sales professionals who give off a pushy, arrogant, or aloof vibe make your whole company seem that way.

Sales teams that freely share the internal knowledge base of your company create bonds and build trust with their prospects and customers.

7 common sales problems (and how to solve them)

Whether they’re selling products or services, B2B or B2C, pros everywhere face the same challenges. There’s a reason these problems are so widespread: They’re notoriously tricky and hard to solve.

Below, I’ll lay out seven common challenges, as well as the solutions we at IMPACT have found to work. 

I’m not claiming I can instantly boost all sales performance. In fact, the solutions I present take time and commitment, but they should start moving you and your sales team in the right direction.

Here are the seven common sales problems — and how to solve them.

Problem #1: Each sale takes way too long

The bigger and more expensive the thing you sell, the more likely that your sales process will be lengthy . After all, there’s no sales process to sell a stick of gum, but bigger ticket items come with more questions, and buyers will need more information and more touchpoints.

Why it’s a problem

Long processes are a problem for a number of reasons. First off is the obiovus one, the longer a sale takes, the more time your team has to spend on it. This translates to fewer opportunities and fewer sales. 

But it’s not just that. 

Salespeople get emotionally bought in to every deal. They build relationships. Some companies have sales processes that last months. For a sales rep who invests six months into a prospect only to have the deal fall through, the effect can be devastating and demoralizing.

How to solve it

Answer prospect questions ahead of time with content

The fastest way to shorten the sales cycle is with sales enablement materials . Have your sales team compile a list of the most common questions they hear from customers. Then, work with the marketing team to develop resources that thoroughly answer these questions .

Sales enablement content could take many forms: blog articles, videos, buyer’s guides, research reports, product stats, or case studies. They should be suited to different steps in the sales process.

More broad, generalized content can be given to prospects early on, whereas case studies would work well with later-stage prospects. 

But this type of content only gets created if your sales and marketing teams work together on it, so get ready to collaborate.

Bonus tip: Align your sales process around buyer decision points

Your sales process should not be arbitrary.

Chart out the decisions a customer has to make in order to buy from you. Then, make sure your sales process aligns with these decision points. This will keep you from making a sales process that moves too fast or too slow .  

Problem #2: You don’t have enough leads

Every customer starts off as a lead — but not every lead becomes a customer. A healthy sales funnel has leads coming in all the time so that paying customers can come out the other end. 

You need leads to have sales, and you need sales to have revenue. Without leads, your business is in rough shape. 

Sales managers should routinely check on each sales rep’s pipeline. While it’s exciting to see late-stage deals move closer to closing, it’s critical to pay attention to the other end of the funnel, too, to make sure good-fit leads are coming in.

Generate better leads with high-quality content — both on and off your platform

There’s no silver bullet to bring in more leads. Many marketing teams will seek to boost organic web traffic, hoping more traffic will mean more leads. Unfortuna tely, this often leads to fluffy content that might drive traffic, but not the kind you’re looking for . 

Marcus Sheridan, author of They Ask, You Answer, started his career as a pool installer. He found that he could get thousands of visits to a blog post titled “Top 10 games to play at your pool party” , but this was not traffic with buying intent , so the high numbers didn’t really matter, from a revenue standpoint.

Instead, he found that thoroughly answering buyer questions was a better tactic. So, instead he’d write something like “Fiberglass pools vs. concrete pools: An honest comparison for your project.”

Sure, the traffic numbers weren’t as high, but the second article drove real leads to his website and gave his sales team a solid foundation. (As a secondary benefit, the same piece of content could be used with prospects already in the funnel.)

The key is being unbiased in the content, and presenting the information fairly.

You shouldn't just rely on your website, though. Social media is more important every year. So is YouTube. And don't forget about short-form video content for YouTube Shorts , Instagram, LinkedIn, TikTok, or any other spot your ideal customers spend time.

Presenting the same content in multiple formats can serve a wider audience. 

This is that same pool article I mentioned above, this time presented in a video:

Problem #3: Your leads are unqualified 

Sales success depends on a steady stream of qualified leads. That is, leads who:

• Can afford what you sell
• Are ready to buy 
• Are decision-makers for the organization (in the B2B world)

Unqualified leads are just the opposite, and if your sales funnel is full of people who aren't going to buy from you, all your other efforts will be for nothing.

You can do everything right — great sales calls, good rapport, smooth presentation — but if the prospect can’t afford you, you’re not going to get the sale.

Commit to buyer education

The biggest factor in lead qualification is budget. If someone can’t afford what you’re selling, it’s best for everyone to k now that as early as possible. Yet, thousands of companies are reluctant to address pricing on their websites . 

As a result, potential customers enter the sales process without knowing if they can actually buy the thing they’re looking at.

And it’s not just price.

Buyers have questions. The more questions you can answer on your website, the fewer unqualified leads you’ll have. Those who are not a good fit for what you’re selling will opt out and stop wasting your sales team’s time. 

Problem #4: You’re wasting your effort on bad-fit prospects

It’s often pretty easy to spot an unqualified lead. They usually can’t afford what you’re selling or they’re simply not ready to buy.  Bad-fit prospects are a little different.

Think of a bad-fit prospect as a person who is sure to become an unhappy customer. They might have the money and the inclination to buy, but the fit just isn’t right.

Maybe they have unrealistic expectations. Maybe there’s a cultural misalignment. A bad-fit prospect might seem good on paper, but it’s just not going to be the right relationship for either of you. 

Happy, satisfied customers build your brand and spin your flywheel, talking about your organization with friends and colleagues.

They leave positive online reviews.

They bring you referral business. 

Unhappy customers do just the opposite. Selling to someone who will steer others away from your brand is worse than not making a sale at all.

Know exactly what you sell — and who it’s for

It’s tempting to say that what you sell is the right solution for everyone, but we all know it’s not true.

• A pickup truck is the right vehicle for some buyers but not others.
• An adjustable-rate mortgage is perfect for certain homebuyers but a nightmare for others.

Every business needs to determine what it sells and who it sells to.

You never want to force prospects to buy something that’s not right for them — and the sooner you’re aware of a bad fit, the sooner your sales team can counsel them out of the sales process. 

Doing so benefits the prospect and your business, which will see an increased customer lifetime value.

At IMPACT, we teach our clients to produce “product/service fit” materials that sales reps can share with prospects. 

Look at this example from a business called Office Interiors. 

The video explains the product and provides information, but it doesn’t go for a hard sell. Instead, it explains who would (and would not) be a good fit for what they’re selling:

Problem #5: You’re spending too much time on low-value tasks

According to research from InsideSales, most sales reps spend only about 37% of their time actually selling . 

Sales is a numbers game. If you want more sales to happen, you need to have more of everything that comes before a sale: more leads, more sales calls, more opportunities. This is not blanket permission to spray and pray — just a reminder that more time spent not selling translates into fewer sales. 

On top of that, your sales team is compensated based on the deals they close. With limited opportunities comes limited earning potential — and this leads to anxiety, frustration, and resentment, compounding any sales problems greatly.

Sales reps need to guard their calendars

The statistic above should be a call to action for all businesses. Yes, there are always going to be meetings, training, and administrative work. But the fact is that your sales team likely spends 63% of its time not selling. 

• For sales representatives: Advocate for yourself and guard your calendar. If you need time for prospecting, block it off on your calendar. Doing research ahead of a call? Block it off. If someone books time with you during prime selling hours, ask to reschedule. Your time is a vital asset. Don’t let other people squander it. 
• For sales leaders: You will need to run point on this. Is there a meeting that could be an email? Could training and feedback come asynchronously? Could that 60-minute huddle be completed in 30 minutes? Take a fresh look at your team’s calendars. Get creative about how you can give your team its time back.

Problem #6: You're not getting the training you need 

The success of a business rests with its sales team. But sales teams are over-stressed, undertrained, and subject to high turnover. 

According to data from  Task Drive , n early 70% of all salespeople say they have not received any formal training in sales. Instead, they describe themselves as “self-taught social sellers.”

An under-trained sales team is less likely to be successful. They stumble in front of buyers, creating a poor impression of the brand they represent. And, in turn, the customer experience suffers. 

Research shows that 58% of buyers say that sales reps can’t answer their questions effectively . In the B2B space, it’s even higher, with 82% of buyers reporting that sales reps are unprepared.  

Make time for training

I know what you're thinking — Didn't you just say "guard your calendars"?

Yes, but there's a difference between unnecessary meetings and highly-necessary training. If you really want to improve sales performance, it's not just about getting more at-bats. It's about coaching, mentorship, and a positive culture of feedback. 

The best sales training is personalized, continual, and supportive .

Some of the biggest problems sales reps face can be solved by putting the customer at the center of the whole buying process. 

Problem #7: You're struggling to prepare for meetings

Sales reps' time is precious, but with a calendar full of meetings, it can be hard to find the time to prepare for each one. 

An underprepared sales rep is an unsuccessful sales rep. You always want to give your buyer the impression that you're very well-versed in what you're selling and who you're selling to.

Use AI to improve your prep work.

Here in the AI revolution, you can find tools to help make your preparation more efficient.

My colleague Chris Duprey, an experienced sales coach, shared this list of AI-based tasks and activities for sales reps . 

• Call review with AI.   AI tools like   Gong   and   Chorus   will automatically record and sort your Zoom calls, and then provide detailed insights that range from the high level (think: how much time did I have my slide deck up during that one-hour meeting?) to the specific (how clearly did I articulate the ‘next steps’ at the end of the call?)
• Role-play with AI.   We all know that role-plays work — and we all know that people often don’t like doing them. With a few prompts, you can create a basic role-play scenario with   ChatGPT .
• Ask for feedback on a presentation.   If you’ve been staring at the same text for an hour, AI can see your work with fresh eyes. Put the text from your slides into a chat and ask for feedback. Are there holes in your logic? Do you belabor certain points? Let a tool read the slide deck before you show it to a client.
• Use an AI slide builder   to create a rough draft presentation that you can fine-tune. I use   Slides AI .
• Research a company’s website.   If you don’t have time to pore over dozens of pages, ask AI to do it. Use a ChatGPT plugin to access the internet and put in a company’s URL. It will come back with takeaways you can research further.
• Write outreach emails much quicker than before.   If you train AI on your voice and style, smart composers like   Grammarly   or   Jasper   can crank out emails that you’ll just need to polish.

And this is just the tip of the iceberg. There are AI tools that can speed up any time-consuming task on your plate.  

Empowering your sales team for success

Today, buyers are more savvy and well-informed than ever. Unfortunately, some sales teams are holding on to outdated sales techniques that don’t fit the way today’s customers make purchases. They’re still stuck in the hard-sell mindset that’s turning off buyers — and causing so many young professionals to resist going into sales. 

The antidote to the vast majority of sales problems is education:

• When we focus on buyer education , some of our most persistent sales challenges vanish. We shorten the sale cycle, build trust, and weed out bad-fit prospects.
• When we focus on our own education , we stay up to date on new technology that can help us do our job better. But that’s not all. Education keeps us open to feedback, willing to grow, and more likely to collaborate. 

Before the internet changed how people buy, sales reps held all the information. This led to distrust and unhappy customers. Today, education can free the buyers and the sales reps from that highly flawed model. 

When businesses commit to solving the most persistent sales problems, it benefits both seller and buyer. 

At IMPACT, we train businesses to put their customers at the center of their marketing and sales efforts.

If you want to begin to see what’s possible, take our free course: The Fundamentals of Virtual Selling . Suddenly the sales outcomes you’re shooting for will not seem so out of reach. 

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5 Examples of Problem Solving Scenarios + ROLE PLAY SCRIPTS

Problem-solving is an essential skill in our daily lives. It enables us to analyze situations, identify challenges, and find suitable solutions. In this article, we’ll explore five real-life problem-solving scenarios from various areas, including business, education, and personal growth. By understanding these examples, you can develop your problem-solving abilities and effectively tackle challenges in your life.

Examples of Problem Solving Scenarios

Improving Customer Service Scenario:

Solution : The store manager assembles a team to analyze customer feedback, identify key issues, and propose solutions. They implement a new training program focused on customer service skills, streamline the checkout process, and introduce an incentive system to motivate employees. As a result, customer satisfaction improves, and the store’s reputation is restored.

Enhancing Learning Outcomes Scenario:

A high school teacher notices that her students struggle with understanding complex concepts in her science class, leading to poor performance on tests.

Overcoming Procrastination Scenario:

An individual consistently procrastinates, leading to increased stress and reduced productivity.

Solution : The person identifies the root cause of their procrastination, such as fear of failure or lack of motivation. They establish clear goals and deadlines, break tasks into manageable steps, and use time management tools, like the Pomodoro Technique , to stay focused. By consistently applying these strategies, they successfully overcome procrastination and enhance their productivity.

Reducing Patient Wait Times Scenario:

Solution : The clinic’s management team conducts a thorough analysis of the appointment scheduling process and identifies bottlenecks. They implement a new appointment system, hire additional staff, and optimize the workflow to reduce wait times. As a result, patient satisfaction increases, and staff stress levels decrease.

Reducing Plastic Waste Scenario:

Solution : Community leaders organize a task force to address the issue. They implement a recycling program, educate residents about the environmental impact of plastic waste, and collaborate with local businesses to promote the use of eco-friendly packaging alternatives. These actions lead to a significant reduction in plastic waste and a cleaner, healthier community.

Conclusion : These five examples of problem-solving scenarios demonstrate how effective problem-solving strategies can lead to successful outcomes in various aspects of life. By learning from these scenarios, you can develop your problem-solving skills and become better equipped to face challenges in your personal and professional life. Remember to analyze situations carefully, identify the root causes, and implement solutions that address these issues for optimal results.

Role Play: Improving Customer Service in a Retail Store

Scenario : A retail store is experiencing a decline in customer satisfaction, with clients complaining about slow service and unhelpful staff.

Role Play Script:

Assistant Manager : I agree. We could also implement a new training program for our staff, focusing on customer service skills and techniques.

Sales Associate : (Smiling) Of course! I’d be happy to help. What product are you looking for?

Sales Associate : Let me check our inventory system to see if we have it in stock. (Checks inventory) I’m sorry, but it seems we’re currently out of stock. However, we’re expecting a new shipment within two days. I can take your contact information and let you know as soon as it arrives.

Customer : That would be great! Thank you for your help.

More Examples of Problem Solving Scenarios on the next page…

Problem Solving in Sales: 7 Techniques To Improve Your Skill

In sales, mastering problem-solving becomes the bridge between closing deals and losing opportunities.

Why? Because at its core, sales is applied problem-solving. You're not simply closing deals or pushing products; you're removing obstacles that prevent your customers from achieving their goals.

This is why exceptional salespeople consistently close deals faster and retain customers more effectively. They transform from average salespeople into trusted advisors, empowering their clients through problem-solving expertise.

In the following sections, you’ll learn in detail what problem solving means in sales and 7 techniques to improve your problem solving skills as a salesperson. 

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What is Problem Solving in Sales?

Effective sales rely on understanding unique customer challenges and crafting solutions that effectively address them. 

Here's how to master the problem-solving process for sales success:

Uncover the Problem

• Actively listen to customer feedback.
• Ask insightful questions to delve deeper into their pain points.
• Identify the root cause of their challenges.

Break it Down

Go beyond surface-level concerns and understand the problem's core.

Come up with an Effective Solution

• Leverage product/service knowledge to tailor solutions for their specific needs.
• Demonstrate how your offering delivers value and addresses their challenges.

Overcome Objections

• Anticipate potential concerns.
• Present your solution effectively to address objections and build trust.

By mastering these steps, you can transform into a trusted advisor who consistently closes deals and fosters lasting customer relationships.

Why is Problem Solving Important in Sales? 

Problem-solving has become even more important in sales today due to several key factors:

Adapting to evolving customer needs

Today's marketplace is highly competitive , with customers having access to a wider range of options than ever before. This means that simply having a good product or service isn't enough. 

Salespeople need to devise new and better ways to understand the unique needs and challenges of each customer and demonstrate how their offering solves those specific problems in a way that stands out from the competition.

Differentiation from competition

Customers face a sea of similar options, so simply offering a good product isn't enough. This is where problem-solving becomes your weapon.

By sharpening your problem-solving skills, you can:

• Uncover unique customer challenges : Go beyond generic features and identify the specific issues customers face.
• Craft effective solutions : Showcase how your offering addresses their pain points, not just features.
• Shift the conversation : Move from features to solutions, positioning yourself as a trusted advisor, not just a salesperson.
• Become proactive: Anticipate customer needs and offer preventive solutions, gaining a competitive edge.

Essentially, problem-solving allows you to differentiate yourself. By addressing customer challenges effectively, you demonstrate the true value your offering brings, justifying your price point and present a compelling proposition that stands out from the crowd. 

Build trust and long-term relationships

Today’s buyers want an almost rep-less buyer journey because they don’t trust salespeople to promote their best interest. This is why building trust and long-term relationships with customers is more important than ever. Salespeople who can demonstrate their ability to solve sales problems effectively are perceived as valuable advisors and trusted partners. This fosters loyalty and repeat business, which is crucial for sustainable success.

How To Improve Your Sales Problem-Solving Skills 

1. improve your sales acumen with expert-led sales training programs.

Sales acumen is the combination of skills, knowledge, and experience that empowers you to excel at selling. This includes:

• Understanding and empathizing with customer pain points
• Anticipating customer needs proactively
• Tailoring solutions to specific challenges
• Build trust through expertise, active listening, and empathy
• Collaborating effectively as part of a problem-solving team

While these skills seem essential for any salesperson, a surprising statistic reveals that only 13% of clients feel salespeople truly understand their needs . This highlights a gap between how sellers approach sales and how buyers want to buy, often due to inadequate problem-solving skills. If you can’t uncover your customer’s problems and needs you don’t stand a chance at selling them a solution.

Investing in expert-led sales training can bridge this gap significantly. Programs like the Pclub's Platinum Passport offer exclusive access to learn directly from the top 0.01% of sales professionals. These training programs can equip you with the practical problem-solving and B2B sales skills necessary to:

• Uncover and understand your customer’s needs and challenges in-depth.
• Develop tailored solutions that resonate with their specific circumstances.
• Navigate complex situations and objections with confidence and clarity.
• Build trust and credibility as a trusted advisor who can solve their problems effectively.

2. Develop a high emotional intelligence threshold

2024 brings a complex sales landscape: cautious buyers, increased stakeholder involvement in purchases, and longer sales cycles. This environment demands a crucial skill: high emotional intelligence (EQ).

Here's why EQ is essential:

• Deeper Customer Understanding : Salespeople with high EQ excel at building rapport and fostering trust. They can read social cues, understand emotions, and create an open environment where clients freely express their challenges and emotions. This leads to deeper understanding and accurate diagnoses of customer problems.
• Confidently Handling Objections : Objections are inevitable, but high EQ salespeople view them as opportunities to uncover deeper needs. They remain calm and composed, acknowledge concerns, and address them with empathy, transforming objections into chances to craft compelling solutions.
• Adaptable Communication : Tailoring your approach to each customer's unique personality and decision-making style is key in sales. High EQ allows you to adapt your communication based on emotions, leading to relevant and impactful solutions that resonate with each individual.

By mastering EQ, you become a trusted advisor, equipped to navigate the complexities of modern sales and consistently close deals effectively.

3. Learn how to identify your buyer’s true pain points

Your potential customer’s true pain point is the challenge that aligns with their financial priorities. Every business operates within limited financial resources, which forces them to prioritize how they allocate these resources. 

When a pain point directly impacts their financial priorities, it creates a sense of urgency and justifies the investment in a solution. This urgency becomes crucial for successful sales negotiations and closing deals.

Even if you possess the best of emotional intelligence and sales negotiation skills, struggling to sell against the core financial challenge can hinder success. Consider your reaction to the illustration below: 

• Person A: Needs visibility for better sales coaching (solution-oriented statement).
• Person B: Faces an urgent need to prevent a significant valuation loss due to cash flow issues.

Clearly, Person B exhibits a more defined and urgent problem. Person A, while facing a challenge, frames it as a solution they already have in mind.

The key here is to master how to identify the "Why" behind the "What". That’s how you uncover the true business pain point. 

4. Improve your sales negotiation skills

Negotiation is an integral part of the sales process, and mastering it is crucial for effective problem-solving. 

A HubSpot study reveals that 58% of buyers want to discuss pricing on the very first call. This can be a major obstacle for salespeople as it can lead to premature price discussions before the value proposition has been established.

Diving into price negotiations without establishing yourself as the preferred vendor is risky. It often leads to over-discounting because the focus shifts to price point instead of the value your product or service offers. 

This scenario makes it difficult to achieve a win-win outcome as the buyer lacks a clear understanding of the business value you bring.

Honing your sales negotiation skills helps you overcome this challenge and become a more effective problem-solver.

5. Leverage team collaboration

Problem-solving is rarely a solo endeavor. Sales leaders and sales managers should encourage collaboration inside the  sales team specifically for developing new problem-solving techniques. 

Sales team members can initiate brainstorming sessions with the marketing strategy department or even social media team to uncover innovative solutions. 

That way, you share insights and strategies that not only enhance the sales process  but also foster a culture of continuous improvement and learning within your team.

6. Include creativity in your sales process

Including creativity in your sales process is about strategically applying creative thinking and unconventional approaches to enhance your creative problem-solving process and ultimately, create a better sales strategy. 

Here's how creativity empowers your sales reps to solve problems and close deals:

• Capture Attention : Move beyond conventional outreach tactics. Remember how Gong secured a meeting through a personalized video pitch from the Old Spice Guy? This unexpected approach cuts through the noise and increases engagement.
• Simplify Complexities: Transform static case studies into engaging animated customer success stories. Adding visual elements and a touch of whimsy simplifies complex solutions, creating emotional resonance and fostering understanding.
• Connect on an Emotional Level : People remember stories 12 times better than facts. By weaving compelling narratives into your presentations, you create a memorable customer experience, fostering trust and leaving a lasting impression beyond statistics.

By embracing creativity, you become more than just a salesperson; you transform into a strategic problem solver equipped to diagnose specific challenges and overcome them effectively.

7. Analyze sales data to generate insights

Much of sales success relies on your ability to transform information into valuable insights. That’s why being able to analyze sales performance data and metrics to make informed decisions is a vital sales skill . 

Sales data, often housed in Customer Relationship Management (CRM) systems, acts as a goldmine of insights waiting to be discovered. 

By analyzing metrics like win/loss ratios, conversion rates, and sales cycle length, you can uncover hidden patterns and trends that might be the root cause of various sales challenges. 

Is your lead generation strategy falling short? Data analysis can reveal specific challenges , areas to optimize for improvement, such as ineffective marketing campaigns or a mismatch between your ideal customer profile and your targeted outreach efforts.

Enhance your problem solving skills with expert-led sales training programs

Ready to take your problem solving skills to the next level? Pclub offers expert-led courses that help you upskill key areas of your sales process where problem solving is required. 

• Sales demo mastery
• Sales discovery masterclass
• Overcoming objections

Take the first step towards a more profitable future. Unlock all courses today with a platinum passport and enjoy personalized mentorship and training solutions that guarantee a solid foundation for your team’s success. 

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Retail Problems and Challenges And How To Solve Them

• by Pack4it Staff
• November 4, 2020
• 1 share 1 0 0
• 5 minute read

The retail industry presents many challenges. Not only do circumstances change but so do customer preferences and demands. Competition has also increased. Recently COVID-19 has threatened retail companies and has caused many to go bankrupt. E-commerce also provides a challenge to retail. Customers shop differently today than in the past. They have more information and more options available to them.

How can companies face these retail problems? In this article created by our team at Pack4it , we’re discussing some retail problems and ways to overcome them:

Increase in Online Shopping

E-commerce has changed customer behavior, creating one of the more recent retail problems. Now customers have more options and information at their fingertips. They do research and find the best deals before committing to a purchase. And with shipping times now reduced to a few days, many people are shopping online.

However, studies show that people are still making more purchases in-store than online. Many customers are using both online and physical stores to make purchases.

Instead of being a problem, online shopping provides retailers with an opportunity. Retailers can gather information about their customer’s interests. They can use this information to provide better service and attract more shoppers. The most important aspect of a retail business is to make the customer happy. So focus on creating an excellent customer experience both in-store and online.

Creating a Seamless Experience Between Online and Offline

Related to the above challenge, customers are combining online and in-store shopping. It’s common for people to decide what they want inside the store and then buy it online. Or some are researching the products online while shopping in-store.

Customers want to move between online and in-store shopping seamlessly. They want to have the same products and the same level of service, whether online or in-store.

Retailers need to create a fluid experience from online to offline shopping. Centralizing customer data can aid in bridging the gap between online and offline shopping to keep customers happy.

Implementing Covid-19 Transmission Prevention Protocols

COVID-19 presents a unique set of retail problems. People are starting to leave their homes and shop at physical stores again. But it is of primary importance that customers feel safe going to a physical store. Retailers need to establish new protocols and procedures to prevent the spread of COVID-19 and help customers feel safe.

COVID-19 protocols include:

• Take the temperature of customers entering the store
• Require staff and customers to wear masks at all times
• Provide hand sanitizer at the entrance and throughout the store
• Limit the number of customers in the store at one time
• Establish guidelines that ensure customers practice social distancing measures
• Keep the store, products, and frequently-touched areas clean and sterilized
• Implement cashless payment

Other measures include the installation of plexiglass at checkout registers. Easy-clean keypad covers and UV-C sanitation devices can also help to prevent the spread of COVID-19.

Reduced Spending

Consumers are careful about where they spend their money. Studies show that customers are 40% more likely to make a purchase if they get help from connected staff . Connected staff are enthusiastic and go above and beyond.

Another study mentions that having store partners also helps increase sales. Store partners can help companies deliver products faster and meet customer demand.

Retaining Repeat Customers

Attaining repeat customers has become one of the biggest retail problems. Customers now have hundreds of options when purchasing goods. This has led to an increased lack of brand loyalty. Customers now shop wherever it best serves their needs at the time.

Traditional loyalty programs are still effective. This includes rewarding customers with special offers. But the best way to face this retail problem is by providing excellent customer service.

Most people serve others at their job so want to feel important and special when the roles are reversed. Personalization is also key in attaining repeat customers. Personalized emails and product offers that cater to the needs of customers are effective in promoting loyalty. Centralizing customer data can streamline marketing measures to give customers relevant information.

Staying Competitive

During this pandemic, brick-and-mortar retail companies have faced fierce competition with online vendors. In-person businesses have had to adapt to a contactless environment in mere weeks. It is crucial that retailers keep track of their operations. This will help them to adapt quickly to problems and new circumstances.

For example, retailers need to keep track of, understand, and strive to increase foot traffic . Retailers also need to use analytics to understand consumer behavior and act accordingly.

Access to Capital

In business, it takes money to make money. This creates quite a paradox for retailers. Often companies reach a point where they need financial aid to continue in operation. One determining factor of a successful business is if capital can be secured before it is needed.

Retaining Employees

Retail has a high employee turnover rate . Having a core of loyal, long-time employees has benefits. There will be less need to spend time and money on hiring and training new employees. Long-time, happy employees will strive harder to provide better service to customers.

One way to retain employees is to maximize their potential. Retailers may provide training programs and give employees more responsibility. Create a rewarding environment where employees can develop and feel important.

Finding the Best Technology Solutions for the Retail Industry

There are many technologies available to help businesses. Retailers need to use software designed specifically for retail businesses. It needs to be able to handle a large amount of data and integrate communication services. The right technology can empower retailers and automate their operations.

One such software for retail is Pack4it . This software helps manage sales, inventory, prospects, and customers. Pack4it is a customizable, multichannel, POS system that helps simplify multi-vendor operations. This solution can help retailers improve online and in-store sales.

By using this system, retailers will have fewer retail problems and can streamline their operations.

Ending thoughts on these retail problems

There are many retail problems and challenges that companies face. Creating an online and offline experience is among them. More recently, in-person retail companies face the challenge of making customers feel safe from COVID-19, and 2021 may present more challenges.

But retail companies have software at their disposal to overcome these challenges. With the right tools, retailers can create excellent online, offline, and personalized experiences. They can also connect multiple channels of communication. And they can successfully adapt to new challenges and ever-changing circumstances.

If you enjoyed reading this article about retail problems, you should read these as well:

• The Best Magento POS Integration and Systems? In This Article
• Looking For the Best Cloud POS System for Retail? Here Are Some Options
• The best jewelry inventory software options for your shop

Pack4it Staff

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6 monumental retail problems your people can solve

Retailers face tough challenges in today’s world of changingconsumer habits, onmi-channel pressure and tight margins.

But some in the retail sector might be under-estimating a keyasset that can help them tackle these challenges - their own employees.

Store associates deal with customers every day, and they probablyunderstand the business challenges better than anyone does.

If they get the right training and support, they can be a powerfulweapon in the fight to stay competitive and profitable.

Here are just some of the ways your people hold the key to solvingretail’s biggest problems:

1. Profit loss and shrinkage

The problem: In 2015, the Global Retail Theft Barometer reported that retail shrinkage was running at almost 1.5% globally, amounting to $120 billion. In the UK, the cost to business in 2016 was £660 million, according to the Retail Crime Survey conducted by the British Retail Consortium. The top cause, at 66% (£438 million), is customer theft. Employee theft is second. Another factor in the UK is the slowing down in sales in some retail sectors.

How staff are key: Employees are the number one tool in preventing loss but they need help in knowing the tell-tale signs and in how to respond if they suspect someone is stealing.  

How employers can support them: Ongoing training can provide a culture of loss prevention and lead to behaviour change within an organisation. Use short snippets of daily reinforcement learning to keep the issue top of mind for your staff every day. Developing a positive staff attitude is also important.

2. Disjointed customer experience

The problem: Three out of four customers list a bad customer experience as the main reason they are turned off a brand, according to leading CRM company, Salesforce. An inconsistent, disjointed offering across the brand channels, from online and mobile apps to high street stores, is a key factor behind the dissatisfaction and lack of conversion.

How staff are key: Knowledgeable staff with answers to hand and a wider understanding of how all the channels connect to form ‘a whole journey’ is essential for a seamless customer journey. 

How employers can support them: Provide staff with the knowledge they need ‘on demand’. Continuous learning reinforcement, with answers available via devices will become the norm as retailers see how employee knowledge is vital in keeping customers. 

3. Underperformance in omni-channel

The problem: A 2017 survey of 40 leading UK retailers in four sectors and a thousand of their customers found there is a growing chasm between what customers want and what retailers are offering. Less than 50% of retail customers are happy with their online, email and social media experience, while 58% of retailers provide different answers to the same question across multiple channels.

How staff are key: The survey concluded that “fast, high quality communications” and a trained-up staff were needed. Retail staff with this level of quality communications can improve the omni-channel approach. 

How employers can support them: Again, it comes down to empowering staff with knowledge to provide prompt, correct answers and in understanding all channels, not just their own immediate work space. 

4. Decaying customer loyalty

The problem: In this ‘Age of the Customer’, knowledgeable consumers know what they want and they’ll shop around to find it. It’s not just down to products and pricing; experience is often the top factor.

How staff are key: The Harvard Business Review says companies should ‘empower’ their employees to deliver a quality customer service and has produced a 5-step process.  

How employers can support them: Staff require customer engagement skills and ‘Customer First’ values. Consider an interactive video tour of a customer journey, backed up with personalised, adaptable, relevant on-demand knowledge.  

5. Data loss and cyber breaches

The problem: The British Retail Consortium’s 2016 Retail Crime Survey shows cyber-crime is increasing, accounting for 5% of shrinkage (£36 million). In addition, an estimated £100 million of losses through reported fraud is cyber-enabled. Meanwhile, the UK’s Information Commissioner’s Office said in August 2017 that the number of retail firms reporting data breaches has doubled in just one year.

How staff are key: According to PwC, some retailers are now instilling a culture where employees “are key in minimising the risk”. 

How employers can support them: The PwC report says that as part of the culture, “organisations are investing in effective training and awareness programs”. Compliance and cyber security training can come in many forms including scenarios and games & gamification.

6. Reduction in spending per transaction

The problem: People are being more cautious about how and where they spend their cash.

How staff are key:   Research tells us that customers spend more money when they receive assistance from engaged staff – sometimes as much as 40% more.  And, if millennials are your target consumers, store associates are even more important.  A new study suggests 66% of millennials find associates “extremely important” to their shopping experience. 

How employers can support them: Provide a bespoke customer engagement skills program as part of a ‘customer first’ culture. 

The bottom line is that for retailers to overcome these challenges, they’ll need a workforce that’s knowledgeable and engaged. Investing in people has never been so important for retail.

Get in touch to find out more about tackling any of these six monumental challenges.  

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7 problem-solving strategies to overcome project hurdles

Unexpected problems are unavoidable in business. Whether it’s a workplace conflict between two coworkers or a sudden change in industry regulations, problem-solving strategies and skills are crucial if you want to be successful.

Each industry and individual career has its own set of unique challenges that require different approaches. The trick is to have a fully loaded problem-solving toolkit ready to go when problems arise.

In this article, we’ll break down the problem-solving process and then dive into seven of the most powerful problem-solving strategies.

What are problem-solving strategies?

Problem-solving strategies help you break down, analyze and resolve problems. They take you beyond obvious answers and help you find the best solution to your specific problem.

Whether your problem is a business challenge, personal conflict or technical work issue, problem-solving strategies help replace random guesswork with detailed blueprints.

In sales and marketing, problem-solving strategies are used as guidelines to figure out the best way to resolve industry challenges. These strategies can be put in place ahead of time so that when fires arise, you have the tools required to put them out.

Different problem-solving strategies are designed for different types of problems. While one problem requires a strategy that uses creative thought and experimentation, another problem might require a heavily analytical approach.

Before we dive into specific strategies, let’s take a look at the foundations of good problem-solving.

Key takeaways from this problem-solving strategies article

Seven powerful problem-solving strategies: Overcome project hurdles with these strategies, including trial-and-error, the 5 Whys, problem tree analysis, SWOT analysis, means-end analysis, consulting an expert and working from experience. How problem-solving helps: Effective problem-solving strategies help identify root causes, generate solutions and implement effective actions, ultimately improving project outcomes and fostering a proactive approach to challenges. Pipedrive aids in problem-solving by providing tools for tracking project progress, managing tasks and analyzing performance metrics, ensuring efficient resolution of issues and optimization of project workflows. Try Pipedrive free for 14 days .

The four essential steps to problem-solving

To solve a problem, you need to identify it, conceptualize solutions, decide on the best solution and then put the solution into action.

While all problem-solving strategies approach these steps differently, each step is integral to the process, so let’s take a look at the four steps in detail.

1. Identify and define the problem

To solve a problem effectively, you need to know exactly what it is. Trying to solve a vague problem is like trying to fill a bucket with a hole in it. Any solutions you implement will be based on guesswork and probably won’t solve the problem in its entirety.

To identify your problem, remember:

Clarify with a statement. It’s far easier to solve a clear problem. Use journalistic questioning (who, what, where, when, why and how) to clarify the problem as far as possible. Then create a problem statement that defines your problem in simple terms.

Break the problem down. Problems are often complex with a lot of distracting information. The trick is to identify key parts of the problem and, if necessary, break it down into smaller problems that you can solve individually.

Visualize the problem. If the problem you’re dealing with is abstract or particularly complex, it can help to try to build a mental picture of it. For example, if your problem is with your sales software, visually map out the elements of the program and how you use it. This lets you see each step and pinpoint where issues may originate.

Example: Your team’s sales productivity is lower than it should be. You investigate and realize that your sales process is disorganized, causing opportunities to slip through the cracks. You break the problem down to look at each part of the process and find that your sales reps don’t have a standardized way of tracking customer interactions.

2. Brainstorm possible solutions

With the problem clearly defined, your next step is to generate an exhaustive list of potential solutions. The purpose of this step is to work out everything you could possibly do so that you can narrow it down later.

Here are some tips for effective brainstorming:

If you’re working with a team, have them brainstorm ideas before the meeting. Prior to the brainstorming meeting, provide background information so everyone has some ideas ready by the time you meet and you can get to a solution faster.

Include key stakeholders. Who does the problem mainly affect? This is the group of people you should include in the solution-finding process, as they will have the deepest understanding of the problem.

Include every solution and narrow them down later. Begin by getting as many ideas written down as possible. This will get the creative juices flowing and help you consider all angles to develop a more effective solution.

Example: You send out your findings about the gaps in the sales process in advance and ask each sales team member to bring a few proposed solutions to share. During the meeting, you set a ground rule that you won't discuss or critique ideas until they’re all on the table. By the end, a series of solutions are suggested, including introducing new tools to track the customer journey, automate repetitive tasks and set follow-up reminders.

3. Decide on a single solution

Now that you have a list of solutions, it’s time to decide which are likely to be the most effective. To do this, you need to evaluate each in order until you have a short list of promising solutions.

To help evaluate your solutions, consider whether:

The solution will achieve your desired outcomes without causing additional issues

The solution aligns with your organizational goals

The solution is affordable and realistic with your current resources and constraints

This step is often the most difficult and requires effective decision-making abilities in addition to problem-solving skills. Often, there will be several solutions that vary in their projected cost, effectiveness and difficulty to implement and you’ll need to take all this into account when making a decision.

Example: Based on your brainstorming session, you decide that the best solution is to invest in a customer relationship management (CRM) system. This will allow you to set up a consistent process and will easily pay for itself in increased productivity. The CRM’s reporting features will also provide greater insight into your sales team’s performance, helping you improve processes further based on what’s working.

4. Implement the solution

Finally, it’s time to put the solution in place. Depending on the complexity of the problem you’re trying to solve, this may require additional steps. For example, you might need to develop a detailed action plan for several team members and then monitor their effectiveness going forward.

To ensure that your solution remains effective:

Schedule regular feedback meetings. Regular feedback from the people closest to the problem will help you gauge whether the solution has been effective and how and when you may need to make adjustments over time.

Decide on key metrics before implementing the solution. Which metrics will tell you whether your solution is working? For example, if your problem is tech-related, you could judge whether the solution worked based on how many IT requests come in each month. Determine what you’ll need to measure upfront.

Don’t be afraid to try again. If your solution didn’t work, it’s time to go back to the drawing board. Get your short list of possible solutions out again and reevaluate them based on what you’ve learned. You might find that another solution works better now that you have more data.

Example: You invest in a CRM solution for your team. A week after onboarding your team, you meet to discuss how the software is working for your team. Based on the discussion, you discover ways to optimize your sales process further.

Seven powerful problem-solving strategies

The type of problem you’re facing will determine how you approach each step in the problem-solving process. Different problems require different creative thinking, critical thinking and brainstorming techniques to come to a solution.

To help you sort out your approach, here are seven different strategies you can use to tackle different kinds of problems:

1. The trial-and-error approach

Trial-and-error is a step-by-step problem-solving approach that’s most effective for problems with many possible solutions. As you test each solution rapidly in order, you’ll find the best fit as quickly as possible.

For this reason, trial-and-error problem-solving is incredibly useful in fields like tech support.

For example, imagine your internet connection drops out. There could be more than one possible cause for this, so quickly running through a checklist of solutions (like checking if your provider is down and restarting the router) is the most effective method.

However, when you’re dealing with large, serious issues, the trial-and-error approach is tantamount to guesswork and may introduce more problems than it fixes.

2. The 5 Whys

The 5 Whys process is a systematic problem-solving method with a simple premise: Keep asking “Why?” until you discover the root cause of an issue.

In good problem-solving, people will often try to solve a surface-level issue without investigating any deeper. The problem many surface-level problems are themselves caused by prior problems that went unchecked.

The 5 Whys process helps uncover these root causes. It also provides a framework for you to work through more complex problems. With the framework in place, it’s much easier to develop a plan to solve each part of the problem in turn.

How to use the 5 Whys:

Write down the surface-level problem.

Ask why the problem has occurred and write the answer below the original problem.

If the answer isn’t the root cause of the problem, repeat step 2 until you find the root (five times is usually all it takes, hence the name).

Here’s what this looks like in practice:

The overarching problem: You aren’t generating enough sales leads. Why #1: Your website isn’t receiving enough traffic. Why #2: Your website isn’t optimized for sales lead generation . Why #3: You don’t have any landing pages or effective calls-to-action (CTAs). Why #4: You haven’t allocated enough of your marketing budget to hire an in-house marketer or agency.

Once you find the root cause, you can easily develop a solution by working backward. In this example, you can clearly see that a potential solution to the overarching problem is to invest in a role that can drive website optimization for lead generation .

3. Problem tree analysis

Problem tree analysis is the process of mapping out the causes and effects of a problem. The causes become the roots of the tree, while the consequences become the branches. Once mapped out, the tree can be inverted to become a solution tree.

Here’s how a problem tree might look for a company struggling to move prospects past the sales demo in their sales process:

This format helps break a problem down into manageable chunks so you can prioritize key objectives. Here’s how to use problem tree analysis:

Identify and write down the problem. Write it in the center of a piece of paper in negative form (for example, “sales process stall after on-site demos”). This will be the “trunk” of the tree and is the focal issue.

Work out the causes of the problem. Write these below the problem and use arrows to connect them – these are the “roots” of the problem tree. Dig deeper to find whether each cause has further causes (you can use the 5 Whys process for this).

Write down the consequences of the problem above the cause. These are the “branches” and connect to the “trunk” in the same way that the “roots” do.

Analyze the tree to ensure it’s complete. If you’re certain that everything is covered, highlight the most serious causes and consequences, as well as the ones that are the easiest to address.

Create a solution (or objective) tree. Flip all negatives into positives. For example, the problem “sales process stall after on-site demo” would become the desired outcome “on-site demos help close deals”. Replace each cause and consequence with its positive counterpart to see how to correct the problem. Turning root causes into root solutions quickly establishes solution starting points.

Double-check your solution tree. Make sure each of your solutions is clear and realistic and there are no gaps between causes or consequences.

Implement a solution. Select your preferred solution and begin to work toward it using the solution tree as your blueprint.

4. SWOT analysis

SWOT analysis is a strategic planning and sales management technique that can also be used as an effective problem-solving strategy.

Start by identifying the problem and coming up with a list of solutions. You can then use SWOT analysis to determine which solution is most suitable for your situation:

What are its strengths? Why is this solution the best fit for the problem at hand? How does it solve the problem better than other solutions might?

What are its weaknesses? Are there any ways this solution is lacking? Can you do anything to remove or strengthen those weaknesses?

Does it open up any opportunities? Does this solution provide any further benefits or opportunities?

Does it introduce any threats? Are there any risks involved with this solution? Could it backfire in any way?

This will help you compare solutions and choose the best one.

This approach works best with complex problems that have multiple possible solutions as it helps you consider their potential impact within your organization.

5. Means-end analysis

Means-end analysis is a problem-solving strategy that involves working out what you need to do (the means) to get to a certain outcome (the end).

You start by defining both your current situation and your ideal situation. You then determine solutions to get from one to the other.

For example, say your problem is that you want to increase sales performance . Your starting point is your current sales metrics while the outcome (end) is the number of sales you want to reach.

Then, develop a list of likely obstacles that might prevent you from reaching your goal and devise solutions to overcome each.

In the above example, you might find that a competitor is offering better deals on their products. You can then devise the solution of creating a new sales promotion or focusing your messaging on a unique attribute of your product.

6. Consult an expert

While this isn’t a creative problem-solving methodology, it is effective.

When problems arise that are completely outside of your expertise, attempting to solve them yourself is often time-consuming and costly. Most organizations simply don’t have the time or resources to create detailed strategies for complex, highly specific problems.

In many industries, there are expert consultants you can hire to help you solve your issues in a fraction of the time that it would take you on your own.

You wouldn’t attempt to replace your home’s hot water system with no experience in plumbing, you’d call in an expert. Sometimes it’s best to approach complex problems with the same mentality.

7. Work from experience

Use your experience with similar or related past problems to work out a solution based on a calculated guess. Working from a framework or strategy you’ve already established (such as an algorithm or formula, often called a heuristic approach), is a mental shortcut that helps you come up with answers quickly.

For example, say a previous organization you worked for reduced customer complaints by having sales reps follow up with customers within one week of purchase. When your current company has an urgent need to improve customer feedback, you draw from your experience and propose implementing rapid follow-up. The team then compares the solution with your current problem to gauge whether it might help in this case, too.

Heuristics are a quick way to get to a solution, and though it may not be the optimal final solution, this is a helpful approach when you need a fast fix.

Supplemental strategies for optimal problem-solving

Here’s a list of general strategies that can be applied to any problem-solving technique to help you devise a better solution in less time.

Don’t reject any ideas (at first). Fully consider your options when coming up with a solution. Many solutions could work, but some will be quicker, cheaper or more effective than others. Likewise, team members may hold back potential solutions for fear of immediate rejection. Instead, list them all at first and narrow them down later.

Set a deadline. Some problems are tedious to solve so they get put on the back burner. To keep easily fixed issues from remaining on hold indefinitely, set a deadline. Establishing a stopping point will increase the chances that you’ll find a solution within the time frame.

Introduce a mediator. If you have a sensitive issue like a personal conflict between two employees, it can help to introduce a neutral third party. A mediator can help reduce tensions and approach the conflict from an unbiased perspective.

Drop the assumptions. Assumptions can be one of the biggest obstacles to successful problem-solving. If you’re biased toward a particular solution or have unfounded presumptions about particular constraints, you may pass over effective solutions.

Reframe the problem as an opportunity. If you approach every problem with a negative mindset, you’ll think of the solution as an unwanted burden or cost. Instead, try to think of the problem as a challenge or opportunity. When you see it as a chance to improve your results and further your business, you’ll be eager to implement solutions.

Distance yourself from the problem. Problem-solving can require intense discussions and deep critical thought. It can help to distract yourself from the issue for a while and then return with a fresh mind. Instead of dwelling on a problem, try sleeping on it. You might find that your mind is open to new ideas when you return.

Final thoughts

Problems are a constant when you’re running a business. The key to success is preparation. With the right tools and problem-solving methodologies, nothing can stop you.

Look for strategies that address your specific problems and don’t forget to celebrate when you crack a tough problem.

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Problem-solving skills and how to improve them (with examples)

What’s life without its challenges? All of us will at some point encounter professional and personal hurdles. That might mean resolving a conflict with coworkers or making a big life decision. With effective problem solving skills, you’ll find tricky situations easier to navigate, and welcome challenges as opportunities to learn, grow and thrive. 

In this guide, we dive into the importance of problem solving skills and look at examples that show how relevant they are to different areas of your life. We cover how to find creative solutions and implement them, as well as ways to refine your skills in communication and critical thinking. Ready to start solving problems? Read on.

What is problem solving? 

Before we cover strategies for improving problem solving skills, it’s important to first have a clear understanding of the problem solving process. Here are the steps in solving a problem:

• Recognise the issue you are facing 
• Take a look at all the information to gain insights
• Come up with solutions
• Look at the pros and cons of each solution and how it might play out
• Plan, organise and implement your solution
• Continuously assess the effectiveness of the solution and make adjustments as needed

Problem solving skills

There’s more to problem solving than coming up with a quick fix. Effective problem solving requires wide range of skills and abilities, such as:

• Critical thinking: the ability to think logically, analyse information and look at situations from different perspectives.
• Creativity: being able to come up with innovative, out-of-the-box solutions.
• Decision-making:  making informed choices by considering all the available information.
• Communication:  being able to express ideas clearly and effectively.
• Analytical skills: breaking down complex problems into smaller parts and examining each one.
• Time management:  allocating time and resources effectively to address problems.
• Adaptability: being open to change and willing to adjust strategies.
• Conflict resolution:  skillfully managing conflicts and finding solutions that work for all.

Examples of problem solving skills

Problem solving skills in the workplace are invaluable, whether you need them for managing a team, dealing with clients or juggling deadlines. To get a better understanding of how you might use these skills in real-life scenarios, here are some problem solving examples that are common in the workplace.

• Analytical thinking

Analytical thinking is something that comes naturally to some, while others have to work a little harder. It involves being able to look at problem solving from a logical perspective, breaking down the issues into manageable parts. 

Example scenarios of analytical thinking

Quality control: in a manufacturing facility, analytical thinking helps identify the causes of product defects in order to pinpoint solutions.

Market research: marketing teams rely on analytical thinking to examine consumer data, identify market trends and make informed decisions on ad campaigns.

• Critical thinking

Critical thinkers are able to approach problems objectively, looking at different viewpoints without rushing to a decision. Critical thinking is an important aspect of problem solving, helping to uncover biases and assumptions and weigh up the quality of the information before making any decisions. 

Example scenarios of critical thinking

• Strategic planning:  in the boardroom, critical thinking is important for assessing economic trends, competitor threats and more. It guides leaders in making informed decisions about long-term company goals and growth strategies.
• Conflict resolution: HR professionals often use critical thinking when dealing with workplace conflicts. They objectively analyse the issues at hand and find an appropriate solution.

Decision-making

Making decisions is often the hardest part of problem solving. How do you know which solution is the right one? It involves evaluating information, considering potential outcomes and choosing the most suitable option. Effective problem solving relies on making well-informed decisions.

Example scenarios of decision-making

• Budget allocation: financial managers must decide how to allocate resources to various projects or departments. 
• Negotiation:  salespeople and procurement professionals negotiate terms, pricing and agreements with clients, suppliers and partners.

Research skills

Research skills are pivotal when it comes to problem solving, to ensure you have all the information you need to make an informed decision. These skills involve searching for relevant data, critically evaluating information sources, and drawing meaningful conclusions. 

Example scenarios of research skills

• Product development: a tech startup uses research skills to conduct market research to identify gaps and opportunities in the market. 
• Employee engagement:  an HR manager uses research skills to conduct employee surveys and focus groups.

A little creative flair goes a long way. By thinking outside the box, you can approach problems from different angles. Creative thinking involves combining existing knowledge, experiences and perspectives in new and innovative ways to come up with inventive solutions. 

Example scenarios of creativity

• Cost reduction: creative problem solvers within a manufacturing company might look at new ways to reduce production costs by using waste materials.
• Customer experience: a retail chain might look at implementing interactive displays and engaging store layouts to increase customer satisfaction and sales.

Collaboration

It’s not always easy to work with other people, but collaboration is a key element in problem solving, allowing you to make use of different perspectives and areas of expertise to find solutions.

Example scenarios

• Healthcare diagnosis: in a hospital setting, medical professionals collaborate to diagnose complex medical cases.
• Project management: project managers coordinate efforts, allocate resources and address issues that may arise during a project's lifecycle.

Conflict Resolution

Being able to mediate conflicts is a great skill to have. It involves facilitating open communication, understanding different perspectives and finding solutions that work for everyone. Conflict resolution is essential for managing any differences in opinion that arise.

Example scenarios of conflict resolution

• Client dispute: a customer might be dissatisfied with a product or service and demand a refund. The customer service representative addresses the issue through active listening and negotiation to reach a solution.
• Project delay: a project manager might face resistance from team members about a change in project scope and will need to find a middle ground before the project can continue.

Risk management

Risk management is essential across many workplaces. It involves analysing potential threats and opportunities, evaluating their impact and implementing strategies to minimise negative consequences. Risk management is closely tied to problem solving, as it addresses potential obstacles and challenges that may arise during the problem solving process.

Example scenarios of risk management

• Project risk management: in a construction project, risk management involves identifying potential delays, cost overruns and safety hazards. Risk mitigation strategies are developed, such as scheduling buffers and establishing safety protocols. 
• Financial risk management: in financial institutions, risk management assesses and manages risks associated with investments and lending.

Communication

Effective communication is a skill that will get you far in all areas of life. When it comes to problem solving, communication plays an important role in facilitating collaboration, sharing insights and ensuring that all stakeholders have the same expectations. 

Example scenarios of communication

• Customer service improvement:  in a retail environment, open communication channels result in higher customer satisfaction scores.
• Safety enhancement:  in a manufacturing facility, a robust communication strategy that includes safety briefings, incident reporting and employee training helps minimise accidents and injuries.

How to improve problem solving skills 

Ready to improve your problem solving skills? In this section we explore strategies and techniques that will give you a head start in developing better problem solving skills. 

Adopt the problem solving mindset

Developing a problem solving mindset will help you tackle challenges effectively . Start by accepting problems as opportunities for growth and learning, rather than as obstacles or setbacks. This will allow you to approach every challenge with a can-do attitude.

Patience is also essential, because it will allow you to work through the problem and its various solutions mindfully. Persistence is also important, so you can keep adapting your approach until you find the right solution.

Finally, don’t forget to ask questions. What do you need to know? What assumptions are you making? What can you learn from previous attempts? Approach problem solving as an opportunity to  acquire new skills . Stay curious, seek out solutions, explore new possibilities and remain open to different problem solving approaches.

Understand the problem

There’s no point trying to solve a problem you don’t understand. To analyse a problem effectively, you need to be able to define it. This allows you to break it down into smaller parts, making it easier to find causes and potential solutions. Start with a well-defined problem statement that is precise and specific. This will help you focus your efforts on the core issue, so you don’t waste time and resources on the wrong concerns.

Strategies for problem analysis

• Start with the problem statement and ask ‘Why?’ multiple times to dig deeper.
• Gather relevant data and information related to the problem. 
• Include those affected by the problem in the analysis process.
• Compare the current problem with similar situations or cases to gain valuable insights.
• Use simulations to explore potential outcomes of different solutions.
• Continuously gather feedback during the problem solving process. 

Develop critical thinking and creativity skills

Critical thinking and creativity are both important when it comes to looking at the problem objectively and thinking outside the box. Critical thinking encourages you to question assumptions, recognise biases and seek evidence to support your conclusions. Creative thinking allows you to look at the problem from different angles to reveal new insights and opportunities.

Enhance research and decision-making skills

Research and decision-making skills are pivotal in problem solving as they enable you to gather relevant information, analyse options and choose the best course of action. Research provides the information and data needed, and ensures that you have a comprehensive understanding of the problem and its context. Effective decision-making is about selecting the solution that best addresses the problem.

Strategies to improve research and decision-making skills

• Clearly define what you want to achieve through research.
• Use a variety of sources, including books, articles, research papers, interviews, surveys and online databases.
• Evaluate the credibility and reliability of your information sources.
• Incorporate risk assessment into your decision-making process. 
• Seek input from experts, colleagues and mentors when making important decisions. 
• After making decisions, reflect on the outcomes and lessons learned. Use this to improve your decision-making skills over time.

Strengthen collaboration skills

Being able to work with others is one of the most important skills to have at work. Collaboration skills enable everyone to work effectively as a team, share their perspectives and collectively find solutions. 

Tips for improving teamwork and collaboration

• Define people’s roles and responsibilities within the team. 
• Encourage an environment of open communication where team members feel comfortable sharing ideas.
• Practise active listening by giving full attention to others when they speak. 
• Hold regular check-in sessions to monitor progress, discuss challenges and make adjustments as needed.
• Use collaboration tools and platforms to facilitate communication and document progress. 
• Acknowledge and celebrate team achievements and milestones. 

Learn from past experiences

Once you’ve overcome a challenge, take the time to look back with a critical eye. How effective was the outcome? Could you have tweaked anything in your process? Learning from past experiences is important when it comes to problem solving. It involves reflecting on both successes and failures to gain insights, refine strategies and make more informed decisions in the future. 

Strategies for learning from past mistakes

• After completing a problem solving effort, gather your team for a debriefing session. Discuss what went well and what could have been better.
• Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) of resolved problems. 
• Evaluate the outcomes of past solutions. Did they achieve the desired results? 
• Commit to continuous learning and improvement. 

Leverage problem solving tools and resources

Problem-solving tools and resources are a great help when it comes to navigating complex challenges. These tools offer structured approaches, methodologies and resources that can streamline the process. 

Tools and resources for problem solving

• Mind mapping:  mind maps visually organise ideas, concepts and their relationships. 
• SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis:  helps in strategic planning and decision-making.
• Fishbone diagram (Ishikawa Diagram): this tool visually represents the potential root causes of a problem, helping you identify underlying factors contributing to an issue.
• Decision matrices:  these assist in evaluating options by assigning weights and scores to criteria and alternatives.
• Process flowcharts:  these allow you to see the steps of a process in sequence, helping identify where the problem is occuring.
• Decision support software:  software applications and tools, such as data analytics platforms, can help in data-driven decision-making and problem solving.
• Online courses and training: allow you to acquire new skills and knowledge.

Regular practice

Practice makes perfect! Using your skills in real life allows you to refine them, adapt to new challenges and build confidence in your problem solving capabilities. Make sure to try out these skills whenever you can.

Practical problem solving exercises 

• Do puzzles, riddles and brainteasers regularly. 
• Identify real-life challenges or dilemmas you encounter and practice applying problem solving techniques to these situations.
• Analyse case studies or scenarios relevant to your field or industry. 
• Regularly review past problem solving experiences and consider what you learned from them. 
• Attend workshops, webinars or training sessions focused on problem solving. 

How to highlight problem solving skills on a resumé

Effectively showcasing your problem solving skills on your resumé is a great way to demonstrate your ability to address challenges and add value to a workplace. We'll explore how to demonstrate problem solving skills on your resumé, so you stand out from the crowd.

Incorporating problem solving skills in the resumé summary

A resumé summary is your introduction to potential employers and provides an opportunity to succinctly showcase your skills. The resumé summary is often the first section employers read. It offers a snapshot of your qualifications and sets the tone for the rest of your resumé.

Your resumé summary should be customised for different job applications, ensuring that you highlight the specific problem solving skills relevant to the position you’re applying for.

Example 1: Project manager with a proven track record of solving complex operational challenges. Skilled in identifying root causes, developing innovative solutions and leading teams to successful project completion.

Example 2:  Detail-oriented data analyst with strong problem solving skills. Proficient in data-driven decision-making, quantitative analysis and using statistical tools to solve business problems.

Highlighting problem solving skills in the experience section

The experience section of your resumé presents the perfect opportunity to demonstrate your problem solving skills in action. 

• Start with action verbs: begin each bullet point in your job descriptions with strong action verbs such as, analysed, implemented, resolved and optimised.
• Quantify achievements: use numbers and percentages to illustrate the impact of your solutions. For example: Increased efficiency by 25% by implementing a new workflow process.
• Emphasise challenges: describe the specific challenges or problems you faced in your roles. 
• Solution-oriented language: mention the steps you took to find solutions and the outcomes achieved.

Including problem solving skills in the skills section

The skills section of your resumé should showcase your top abilities, including problem solving skills. Here are some tips for including these skills.

• Use a subsection:  within your skills section, you could create a subsection specifically dedicated to problem solving skills – especially if the role calls for these skills.
• Be specific: when listing problem solving skills, be specific about the types of role-related problems you can address. 
• Prioritise relevant skills:  tailor the list of problem solving skills to match the requirements of the job you're applying for. 

Examples of problem solving skills to include:

• Creative problem solving
• Decision making
• Root cause analysis
• Strategic problem solving
• Data-driven problem solving
• Interpersonal conflict resolution
• Adaptability
• Communication skills
• Problem solving tools
• Negotiation skills

Demonstrating problem solving skills in project sections or case studies

Including a dedicated section for projects or case studies in your resumé allows you to provide specific examples of your problem solving skills in action. It goes beyond simply listing skills, to demonstrate how you are able to apply those skills to real-world challenges.

Example – Data Analysis

Case Study: Market Expansion Strategy

• Challenge:  the company was looking to expand into new markets but lacked data on consumer preferences and market dynamics.
• Solution: conducted comprehensive market research, including surveys and competitor analysis. Applied this research to identify target customer segments and developed a data-driven market-entry strategy.
• Result:  successfully launched in two new markets, reaching our target of 30% market share within the first year.

Using problem solving skills in cover letters

A well-crafted cover letter is your first impression on any potential employer. Integrating problem solving skills can support your job application by showcasing your ability to address challenges and contribute effectively to their team. Here’s a quick run-down on what to include:

• Begin your cover letter by briefly mentioning the position you're applying for and your enthusiasm for it.
• Identify a specific challenge or issue that the company may be facing, to demonstrate your research and understanding of their needs.
• Include a brief story or scenario from your past experiences where you successfully applied problem solving skills to address a similar challenge. 
• Highlight the positive outcomes or results achieved through your problem solving efforts. 
• Explain how your skills make you the ideal person to address their specific challenges.

Problem solving skills are essential in all areas of life, enabling you to overcome challenges, make informed decisions, settle conflicts and drive innovation. We've explored the significance of problem solving skills and how to improve, demonstrate and leverage them effectively. It’s an ever-evolving skill set that can be refined over time. 

By actively incorporating problem solving skills into your day-to-day, you can become a more effective problem solver at work and in your personal life as well.

What are some common problem solving techniques?

Common problem solving techniques include brainstorming, root cause analysis, SWOT analysis, decision matrices, the scientific method and the PDCA (Plan-Do-Check-Act) cycle. These techniques offer structured approaches to identify, analyse and address problems effectively.

How can I improve my critical thinking skills?

Improving critical thinking involves practising skills such as analysis, evaluation and problem solving. It helps to engage in activities like reading, solving puzzles, debating and self-reflection.

What are some common obstacles to problem solving?

Common obstacles to problem solving include biases, lack of information or resources, and resistance to change. Recognising and addressing these obstacles is essential for effective problem solving.

How can I overcome resistance to change when implementing a solution?

To overcome resistance to change, it's essential to communicate the benefits of the proposed solution clearly, involve stakeholders in the decision-making process, address concerns and monitor the implementation's progress to demonstrate its effectiveness.

How can problem solving skills benefit my career?

Problem solving skills are highly valuable in a career as they enable you to navigate challenges, make informed decisions, adapt to change and contribute to innovation and efficiency. These skills enhance your professional effectiveness and can lead to career advancement and increased job satisfaction.

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Module 4: Identifying and Understanding Customer Behavior

Increasing sales with limited problem solving, learning objectives.

• Describe how a retailer can increase sales from customers engaged in limited problem solving

By contrast, consumers with a limited problem solving mindset put in little consideration before arriving at a decision. Because of the minimal time and energy committed to the search, this mindset is most common with the selection and purchase of low-consideration or low-value items. These may also be purchases that have little to no emotional significance. Simply, the consumer is unwilling to over-invest time or effort in a decision that has little importance or where a “bad” decision has no lingering negative effects.

These shoppers don’t need a high level of engagement. Instead, they need to be cued to make a purchase. Thus, advertising, promotion and in-store merchandising can be especially helpful in influencing the decision. Think again about your local grocery store, imagining that you’re walking down the dental care aisle. Each item on-shelf, through its packaging—the images and words, the colors and fonts—is trying to communicate to you a reason to buy. The displays, floor or shelf graphics and special tags are doing the same. And, given the low relative price-point of the items and the low risk of making a mistake in buying the “wrong” product,” shoppers can make purchase decisions with a limited problem solving mindset.

Practice Questions

• Increasing Sales with Limited Problem Solving. Authored by : Patrick Williams. Provided by : Lumen Learning. License : CC BY: Attribution

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Insights Industry News

April 19, 2017

How to Solve the Most Common Data Problems in Retail

Data science software maker Dataiku explores the types of data problems facing retail and the steps to take to become more data driven.

by Pauline Brown

In the retail business, big data is poised in the coming years to open up huge opportunities in the way stores (both physical and online) fundamentally operate and serve customers. Given the incredibly small margins, Big Data will also provide much-needed efficiency improvements – from tighter supply chain management to more targeted marketing campaigns – that can make a big difference to a retail business of any size.

Making data-driven decisions is no longer about learning from the past; it means making changes to the business constantly based on real time input from all data sources across the organization. Making predictions and applying machine learning is based on traditional data but also on new and innovative sources like connected Internet of Things (IoT) devices and sensors or, going a step further with deep learning, unstructured data from things like static images or cameras monitoring stock in warehouses. Consumers can be fickle, so being able to accurately anticipate what they will do next and quickly react is what puts the most innovative and successful retailers above the rest.

Data science software maker, Dataiku , recently explored the types of data problems facing retail, the problems they solve, and the steps that any retail organization can take to become more data driven.

PROBLEM #1: Siloed, Static Customer Views

Many retailers still struggle with siloed data – transaction data lives apart from web logs which in turn is separate from CRM data, etc.

SOLUTION : Complete, Real Time Customer Looks

Cutting-edge retailers look at customers as a whole, combining traditional data sources with the non-traditional (like social media or other external data sources that can provide valuable insight).

• More accurate and targeted churn prediction.
• Robust fraud detection systems.
• More effective marketing campaigns due to more advanced customer segmentation .
• Better customer service.

PROBLEM #2: Time Consuming Vendor & Supply Chain Management

Supply chains are already driven by numbers and analytics, but retailers have been slow to embrace the power of realtime analytics and harnessing huge, unstructured data sets.

SOLUTION : Automation and Prediction for Faster, More Accurate Management

Combine structured and unstructured data in real time for things like more accurate forecasts or automatic reordering.

• More efficient inventory management based on real-time data and behavior .
• Optimized pricing strategies.

PROBLEM #3: Analysis Based on Historical Data

Looking back at shoppers’ past activity often isn’t a good indication of what they will do next.

SOLUTION : Prediction and Machine Learning in Real Time

Instead, real-time prediction based of current trends and behaviors from all sources of data is the key

• Anticipating what a customer will do next.
• A more agile business based on up-to-the-minute signals.
• The ability to adapt automatically with customer behavior.

PROBLEM #4: One-Time Data Projects

Completing one-off data projects that aren’t reproducible is frustrating and inefficient.

SOLUTION : Automated, Scalable and Reproducible Data Initiatives

The best data teams in retail focus on putting a data project into production that is completely automated and scalable.

• More efficient team that can scale as the company grows.
• With reproducible workflows, team can work on more projects.

While each organization is different, data challenges are the same.  It takes a data production plan to guide any sized team to successfully producing a working predictive model that yields meaningful insights for the business.

How to Complete any Data Project in Retail

The most successful retail companies worldwide solve these four issues by efficiently leverage all of the data at their fingertips by following set processes to see data projects through from start to finish. They also ensure those data projects are reproducible and scalable so the data team is constantly able to work on new projects vs. maintaining old ones. This is as easy as following the seven fundamental steps to completing a data project:

• DEFINE: Define your business question or business need: what problem are you trying to solve? What are the success metrics? What is the timeframe for completing the project?
• IDENTIFY DATA: Mix and merge data from different sources for a more robust data project.
• PREPARE & EXPLORE: Understand all variables. Ensure clean, homogenous data.
• PREDICT: Avoid the common error of training your model on both past and future events.  Train only on data that will be available to you when a predictive model is actually running.  Choose your evaluation method wisely; how you evaluate your model should correspond to your business needs.
• VISUALIZE: Communicate with product/marketing teams to build insightful visualizations.  Use visualizations to uncover additional insights to explore in the predictive phase.
• DEPLOY: Determine if the project is addressing an ongoing business need, and if so, ensure the model is deployed into production for a continuous strategy and to avoid one-off data projects.
• TAKE ACTION: Determine what should be done next with the insights you’ve gained from your data project.  Is there more automation to be done? Can teams around the company use this data for a project they’re working on?

There is no doubt that data science, machine learning, and predictive analytics combined with Big Data will become an even more fundamental part of both online and traditional retail in the coming years.  All retail organizations will use it, but only the successful ones will have an effective data production plan that yields the most effective insights into their business that gives them an edge over the competition.

Pauline Brown

The views, opinions, data, and methodologies expressed above are those of the contributor(s) and do not necessarily reflect or represent the official policies, positions, or beliefs of Greenbook.

Comments are moderated to ensure respect towards the author and to prevent spam or self-promotion. Your comment may be edited, rejected, or approved based on these criteria. By commenting, you accept these terms and take responsibility for your contributions.

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Moving Away from a Narcissistic Market Research Model

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How to solve the most common data problems in retail with predictive analytics

In the retail business, big data is poised in the coming years to open up huge opportunities in the way stores (both physical and online) fundamentally operate and serve customers. Given the incredibly small margins, Big Data will also provide much needed efficiency improvements – from tighter supply chain management to more targeted marketing campaigns – that can make a big difference to a retail business of any size.

Making data-driven decisions is no longer about learning from the past; it means making changes to the business constantly based on real time input from all data sources across the organization. Making predictions and applying machine learning is based on traditional data but also on new and innovative sources like connected Internet of Things (IoT) devices and sensors or, going a step further with deep learning, unstructured data from things like static images or cameras monitoring stock in warehouses. Consumers can be fickle, so being able to accurately anticipate what they will do next and quickly react is what puts the most innovative and successful retailers above the rest.

Data science software maker, Dataiku , recently explored the types of data problems facing retail, the problems they solve, and the steps that any retail organization can take to become more data driven.

PROBLEM #1: Siloed, Static Customer Views

Many retailers still struggle with siloed data – transaction data lives apart from web logs which in turn is separate from CRM data, etc.

SOLUTION: Complete, Real Time Customer Looks

Cutting-edge retailers look at customers as a whole, combining traditional data sources with the non-traditional (like social media or other external data sources that can provide valuable insight).

• More accurate and targeted churn prediction.
• Robust fraud detection systems.
• More effective marketing campaigns due to more advanced customer segmentation.
• Better customer service.

PROBLEM #2: Time Consuming Vendor & Supply Chain Management

Supply chains are already driven by numbers and analytics, but retailers have been slow to embrace the power of realtime analytics and harnessing huge, unstructured data sets.

SOLUTION: Automation and Prediction for Faster, More Accurate Management

Combine structured and unstructured data in real time for things like more accurate forecasts or automatic reordering.

• More efficient inventory management based on real-time data and behavior .
• Optimized pricing strategies.

PROBLEM #3: Analysis Based on Historical Data

Looking back at shoppers’ past activity often isn’t a good indication of what they will do next.

SOLUTION: Prediction and Machine Learning in Real Time

Instead, real time prediction based of current trends and behaviors from all sources of data is the key

• Anticipating what a customer will do next.
• A more agile business based on up-to-the minute signals.
• The ability to adapt automatically with customer behavior.

PROBLEM #4: One-Time Data Projects

Completing one-off data projects that aren’t reproducible is frustrating and inefficient.

THE SOLUTION: Automated, Scalable and Reproducible Data Initiatives

The best data teams in retail focus on putting a data project into production that is completely automated and scalable.

• More efficient team that can scale as the company grows.
• With reproducible workflows, team can work on more projects.

While each organization is different, data challenges are the same.  It takes a data production plan to guide any sized team to successfully producing a working predictive model that yields meaningful insights for the business.

How to Complete any Data Project in Retail

The most successful retail companies worldwide solve these four issues by efficiently leverage all of the data at their fingertips by following set processes to see data projects through from start to finish. They also ensure those data projects are reproducible and scalable so the data team is constantly able to work on new projects vs. maintaining old ones. This is as easy as following the seven fundamental steps to completing a data project:

• DEFINE: Define your business question or business need: what problem are you trying to solve? What are the success metrics? What is the timeframe for completing the project?
• IDENTIFY DATA: Mix and merge data from different sources for a more robust data project.
• PREPARE & EXPLORE: Understand all variables. Ensure clean, homogenous data.
• PREDICT: Avoid the common error of training your model on both past and future events. Train only on data that will be available to you when a predictive model is actually running.  Choose your evaluation method wisely; how you evaluate your model should correspond to your business needs.
• VISUALIZE: Communicate with product/marketing teams to build insightful visualizations. Use visualizations to uncover additional insights to explore in the predictive phase.
• DEPLOY: Determine if the project is addressing an ongoing business need, and if so, ensure the model is deployed into production for a continuous strategy and to avoid one-off data projects.
• TAKE ACTION: Determine what should be done next with the insights you’ve gained from your data project. Is there more automation to be done? Can teams around the company use this data for a project they’re working on?

There is no doubt that data science, machine learning, and predictive analytics combined with Big Data will become an even more fundamental part of both online and traditional retail in the coming years.  All retail organizations will use it, but only the successful ones will have an effective data production plan that yields the most effective insights into their business that gives them an edge over the competition.

About Dataiku

Dataiku develops Dataiku Data Science Studio, the unique data science platform that enables companies to build and deliver their own data products more efficiently. Thanks to a collaborative and team-based user interface for data scientists and beginner analysts, to a unified framework for both development and deployment of data projects, and to immediate access to all the features and tools required to design data products from scratch, users can easily apply machine learning and data science techniques to all types, sizes, and formats of raw data to build and deploy predictive data flows.

To learn more about how Data Science can play a role in Retail download the free guide from Dataiku, 4 Big Challenges for Retailers, Solved with Predictive Analytics

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