problem solving in retail examples

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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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

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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.

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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.

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 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.

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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:.

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

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:

A local community is struggling with an excessive amount of plastic waste, causing environmental pollution and health concerns.

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?

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

More Examples of Problem Solving Scenarios on the next page…

Culture Development

Workplace problem-solving examples: real scenarios, practical solutions.

• March 11, 2024

In today’s fast-paced and ever-changing work environment, problems are inevitable. From conflicts among employees to high levels of stress, workplace problems can significantly impact productivity and overall well-being. However, by developing the art of problem-solving and implementing practical solutions, organizations can effectively tackle these challenges and foster a positive work culture. In this article, we will delve into various workplace problem scenarios and explore strategies for resolution. By understanding common workplace problems and acquiring essential problem-solving skills, individuals and organizations can navigate these challenges with confidence and success.

Understanding Workplace Problems

Before we can effectively solve workplace problems , it is essential to gain a clear understanding of the issues at hand. Identifying common workplace problems is the first step toward finding practical solutions. By recognizing these challenges, organizations can develop targeted strategies and initiatives to address them.

Identifying Common Workplace Problems

One of the most common workplace problems is conflict. Whether it stems from differences in opinions, miscommunication, or personality clashes, conflict can disrupt collaboration and hinder productivity. It is important to note that conflict is a natural part of any workplace, as individuals with different backgrounds and perspectives come together to work towards a common goal. However, when conflict is not managed effectively, it can escalate and create a toxic work environment.

In addition to conflict, workplace stress and burnout pose significant challenges. High workloads, tight deadlines, and a lack of work-life balance can all contribute to employee stress and dissatisfaction. When employees are overwhelmed and exhausted, their performance and overall well-being are compromised. This not only affects the individuals directly, but it also has a ripple effect on the entire organization.

Another common workplace problem is poor communication. Ineffective communication can lead to misunderstandings, delays, and errors. It can also create a sense of confusion and frustration among employees. Clear and open communication is vital for successful collaboration and the smooth functioning of any organization.

The Impact of Workplace Problems on Productivity

Workplace problems can have a detrimental effect on productivity levels. When conflicts are left unresolved, they can create a tense work environment, leading to decreased employee motivation and engagement. The negative energy generated by unresolved conflicts can spread throughout the organization, affecting team dynamics and overall performance.

Similarly, high levels of stress and burnout can result in decreased productivity, as individuals may struggle to focus and perform optimally. When employees are constantly under pressure and overwhelmed, their ability to think creatively and problem-solve diminishes. This can lead to a decline in the quality of work produced and an increase in errors and inefficiencies.

Poor communication also hampers productivity. When information is not effectively shared or understood, it can lead to misunderstandings, delays, and rework. This not only wastes time and resources but also creates frustration and demotivation among employees.

Furthermore, workplace problems can negatively impact employee morale and job satisfaction. When individuals are constantly dealing with conflicts, stress, and poor communication, their overall job satisfaction and engagement suffer. This can result in higher turnover rates, as employees seek a healthier and more supportive work environment.

In conclusion, workplace problems such as conflict, stress, burnout, and poor communication can significantly hinder productivity and employee well-being. Organizations must address these issues promptly and proactively to create a positive and productive work atmosphere. By fostering open communication, providing support for stress management, and promoting conflict resolution strategies, organizations can create a work environment that encourages collaboration, innovation, and employee satisfaction.

The Art of Problem Solving in the Workplace

Now that we have a clear understanding of workplace problems, let’s explore the essential skills necessary for effective problem-solving in the workplace. By developing these skills and adopting a proactive approach, individuals can tackle problems head-on and find practical solutions.

Problem-solving in the workplace is a complex and multifaceted skill that requires a combination of analytical thinking, creativity, and effective communication. It goes beyond simply identifying problems and extends to finding innovative solutions that address the root causes.

Essential Problem-Solving Skills for the Workplace

To effectively solve workplace problems, individuals should possess a range of skills. These include strong analytical and critical thinking abilities, excellent communication and interpersonal skills, the ability to collaborate and work well in a team, and the capacity to adapt to change. By honing these skills, individuals can approach workplace problems with confidence and creativity.

Analytical and critical thinking skills are essential for problem-solving in the workplace. They involve the ability to gather and analyze relevant information, identify patterns and trends, and make logical connections. These skills enable individuals to break down complex problems into manageable components and develop effective strategies to solve them.

Effective communication and interpersonal skills are also crucial for problem-solving in the workplace. These skills enable individuals to clearly articulate their thoughts and ideas, actively listen to others, and collaborate effectively with colleagues. By fostering open and honest communication channels, individuals can better understand the root causes of problems and work towards finding practical solutions.

Collaboration and teamwork are essential for problem-solving in the workplace. By working together, individuals can leverage their diverse skills, knowledge, and perspectives to generate innovative solutions. Collaboration fosters a supportive and inclusive environment where everyone’s ideas are valued, leading to more effective problem-solving outcomes.

The ability to adapt to change is another important skill for problem-solving in the workplace. In today’s fast-paced and dynamic work environment, problems often arise due to changes in technology, processes, or market conditions. Individuals who can embrace change and adapt quickly are better equipped to find solutions that address the evolving needs of the organization.

The Role of Communication in Problem Solving

Communication is a key component of effective problem-solving in the workplace. By fostering open and honest communication channels, individuals can better understand the root causes of problems and work towards finding practical solutions. Active listening, clear and concise articulation of thoughts and ideas, and the ability to empathize are all valuable communication skills that facilitate problem-solving.

Active listening involves fully engaging with the speaker, paying attention to both verbal and non-verbal cues, and seeking clarification when necessary. By actively listening, individuals can gain a deeper understanding of the problem at hand and the perspectives of others involved. This understanding is crucial for developing comprehensive and effective solutions.

Clear and concise articulation of thoughts and ideas is essential for effective problem-solving communication. By expressing oneself clearly, individuals can ensure that their ideas are understood by others. This clarity helps to avoid misunderstandings and promotes effective collaboration.

Empathy is a valuable communication skill that plays a significant role in problem-solving. By putting oneself in the shoes of others and understanding their emotions and perspectives, individuals can build trust and rapport. This empathetic connection fosters a supportive and collaborative environment where everyone feels valued and motivated to contribute to finding solutions.

In conclusion, problem-solving in the workplace requires a combination of essential skills such as analytical thinking, effective communication, collaboration, and adaptability. By honing these skills and fostering open communication channels, individuals can approach workplace problems with confidence and creativity, leading to practical and innovative solutions.

Real Scenarios of Workplace Problems

Now, let’s explore some real scenarios of workplace problems and delve into strategies for resolution. By examining these practical examples, individuals can develop a deeper understanding of how to approach and solve workplace problems.

Conflict Resolution in the Workplace

Imagine a scenario where two team members have conflicting ideas on how to approach a project. The disagreement becomes heated, leading to a tense work environment. To resolve this conflict, it is crucial to encourage open dialogue between the team members. Facilitating a calm and respectful conversation can help uncover underlying concerns and find common ground. Collaboration and compromise are key in reaching a resolution that satisfies all parties involved.

In this particular scenario, let’s dive deeper into the dynamics between the team members. One team member, let’s call her Sarah, strongly believes that a more conservative and traditional approach is necessary for the project’s success. On the other hand, her colleague, John, advocates for a more innovative and out-of-the-box strategy. The clash between their perspectives arises from their different backgrounds and experiences.

As the conflict escalates, it is essential for a neutral party, such as a team leader or a mediator, to step in and facilitate the conversation. This person should create a safe space for both Sarah and John to express their ideas and concerns without fear of judgment or retribution. By actively listening to each other, they can gain a better understanding of the underlying motivations behind their respective approaches.

During the conversation, it may become apparent that Sarah’s conservative approach stems from a fear of taking risks and a desire for stability. On the other hand, John’s innovative mindset is driven by a passion for pushing boundaries and finding creative solutions. Recognizing these underlying motivations can help foster empathy and create a foundation for collaboration.

As the dialogue progresses, Sarah and John can begin to identify areas of overlap and potential compromise. They may realize that while Sarah’s conservative approach provides stability, John’s innovative ideas can inject fresh perspectives into the project. By combining their strengths and finding a middle ground, they can develop a hybrid strategy that incorporates both stability and innovation.

Ultimately, conflict resolution in the workplace requires effective communication, active listening, empathy, and a willingness to find common ground. By addressing conflicts head-on and fostering a collaborative environment, teams can overcome challenges and achieve their goals.

Dealing with Workplace Stress and Burnout

Workplace stress and burnout can be debilitating for individuals and organizations alike. In this scenario, an employee is consistently overwhelmed by their workload and experiencing signs of burnout. To address this issue, organizations should promote a healthy work-life balance and provide resources to manage stress effectively. Encouraging employees to take breaks, providing access to mental health support, and fostering a supportive work culture are all practical solutions to alleviate workplace stress.

In this particular scenario, let’s imagine that the employee facing stress and burnout is named Alex. Alex has been working long hours, often sacrificing personal time and rest to meet tight deadlines and demanding expectations. As a result, Alex is experiencing physical and mental exhaustion, reduced productivity, and a sense of detachment from work.

Recognizing the signs of burnout, Alex’s organization takes proactive measures to address the issue. They understand that employee well-being is crucial for maintaining a healthy and productive workforce. To promote a healthy work-life balance, the organization encourages employees to take regular breaks and prioritize self-care. They emphasize the importance of disconnecting from work during non-working hours and encourage employees to engage in activities that promote relaxation and rejuvenation.

Additionally, the organization provides access to mental health support services, such as counseling or therapy sessions. They recognize that stress and burnout can have a significant impact on an individual’s mental well-being and offer resources to help employees manage their stress effectively. By destigmatizing mental health and providing confidential support, the organization creates an environment where employees feel comfortable seeking help when needed.

Furthermore, the organization fosters a supportive work culture by promoting open communication and empathy. They encourage managers and colleagues to check in with each other regularly, offering support and understanding. Team members are encouraged to collaborate and share the workload, ensuring that no one person is overwhelmed with excessive responsibilities.

By implementing these strategies, Alex’s organization aims to alleviate workplace stress and prevent burnout. They understand that a healthy and balanced workforce is more likely to be engaged, productive, and satisfied. Through a combination of promoting work-life balance, providing mental health support, and fostering a supportive work culture, organizations can effectively address workplace stress and create an environment conducive to employee well-being.

Practical Solutions to Workplace Problems

Now that we have explored real scenarios, let’s discuss practical solutions that organizations can implement to address workplace problems. By adopting proactive strategies and establishing effective policies, organizations can create a positive work environment conducive to problem-solving and productivity.

Implementing Effective Policies for Problem Resolution

Organizations should have clear and well-defined policies in place to address workplace problems. These policies should outline procedures for conflict resolution, channels for reporting problems, and accountability measures. By ensuring that employees are aware of these policies and have easy access to them, organizations can facilitate problem-solving and prevent issues from escalating.

Promoting a Positive Workplace Culture

A positive workplace culture is vital for problem-solving. By fostering an environment of respect, collaboration, and open communication, organizations can create a space where individuals feel empowered to address and solve problems. Encouraging teamwork, recognizing and appreciating employees’ contributions, and promoting a healthy work-life balance are all ways to cultivate a positive workplace culture.

The Role of Leadership in Problem Solving

Leadership plays a crucial role in facilitating effective problem-solving within organizations. Different leadership styles can impact how problems are approached and resolved.

Leadership Styles and Their Impact on Problem-Solving

Leaders who adopt an autocratic leadership style may make decisions independently, potentially leaving their team members feeling excluded and undervalued. On the other hand, leaders who adopt a democratic leadership style involve their team members in the problem-solving process, fostering a sense of ownership and empowerment. By encouraging employee participation, organizations can leverage the diverse perspectives and expertise of their workforce to find innovative solutions to workplace problems.

Encouraging Employee Participation in Problem Solving

To harness the collective problem-solving abilities of an organization, it is crucial to encourage employee participation. Leaders can create opportunities for employees to contribute their ideas and perspectives through brainstorming sessions, team meetings, and collaborative projects. By valuing employee input and involving them in decision-making processes, organizations can foster a culture of inclusivity and drive innovative problem-solving efforts.

In today’s dynamic work environment, workplace problems are unavoidable. However, by understanding common workplace problems, developing essential problem-solving skills, and implementing practical solutions, individuals and organizations can navigate these challenges effectively. By fostering a positive work culture, implementing effective policies, and encouraging employee participation, organizations can create an environment conducive to problem-solving and productivity. With proactive problem-solving strategies in place, organizations can thrive and overcome obstacles, ensuring long-term success and growth.

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39 Best Problem-Solving Examples

Chris Drew (PhD)

Dr. Chris Drew is the founder of the Helpful Professor. He holds a PhD in education and has published over 20 articles in scholarly journals. He is the former editor of the Journal of Learning Development in Higher Education. [Image Descriptor: Photo of Chris]

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Problem-solving is a process where you’re tasked with identifying an issue and coming up with the most practical and effective solution.

This indispensable skill is necessary in several aspects of life, from personal relationships to education to business decisions.

Problem-solving aptitude boosts rational thinking, creativity, and the ability to cooperate with others. It’s also considered essential in 21st Century workplaces.

If explaining your problem-solving skills in an interview, remember that the employer is trying to determine your ability to handle difficulties. Focus on explaining exactly how you solve problems, including by introducing your thoughts on some of the following frameworks and how you’ve applied them in the past.

Problem-Solving Examples

1. divergent thinking.

Divergent thinking refers to the process of coming up with multiple different answers to a single problem. It’s the opposite of convergent thinking, which would involve coming up with a singular answer .

The benefit of a divergent thinking approach is that it can help us achieve blue skies thinking – it lets us generate several possible solutions that we can then critique and analyze .

In the realm of problem-solving, divergent thinking acts as the initial spark. You’re working to create an array of potential solutions, even those that seem outwardly unrelated or unconventional, to get your brain turning and unlock out-of-the-box ideas.

This process paves the way for the decision-making stage, where the most promising ideas are selected and refined.

Go Deeper: Divervent Thinking Examples

2. Convergent Thinking

Next comes convergent thinking, the process of narrowing down multiple possibilities to arrive at a single solution.

This involves using your analytical skills to identify the best, most practical, or most economical solution from the pool of ideas that you generated in the divergent thinking stage.

In a way, convergent thinking shapes the “roadmap” to solve a problem after divergent thinking has supplied the “destinations.”

Have a think about which of these problem-solving skills you’re more adept at: divergent or convergent thinking?

Go Deeper: Convergent Thinking Examples

3. Brainstorming

Brainstorming is a group activity designed to generate a multitude of ideas regarding a specific problem. It’s divergent thinking as a group , which helps unlock even more possibilities.

A typical brainstorming session involves uninhibited and spontaneous ideation, encouraging participants to voice any possible solutions, no matter how unconventional they might appear.

It’s important in a brainstorming session to suspend judgment and be as inclusive as possible, allowing all participants to get involved.

By widening the scope of potential solutions, brainstorming allows better problem definition, more creative solutions, and helps to avoid thinking “traps” that might limit your perspective.

Go Deeper: Brainstorming Examples

4. Thinking Outside the Box

The concept of “thinking outside the box” encourages a shift in perspective, urging you to approach problems from an entirely new angle.

Rather than sticking to traditional methods and processes, it involves breaking away from conventional norms to cultivate unique solutions.

In problem-solving, this mindset can bypass established hurdles and bring you to fresh ideas that might otherwise remain undiscovered.

Think of it as going off the beaten track when regular routes present roadblocks to effective resolution.

5. Case Study Analysis

Analyzing case studies involves a detailed examination of real-life situations that bear relevance to the current problem at hand.

For example, if you’re facing a problem, you could go to another environment that has faced a similar problem and examine how they solved it. You’d then bring the insights from that case study back to your own problem.

This approach provides a practical backdrop against which theories and assumptions can be tested, offering valuable insights into how similar problems have been approached and resolved in the past.

See a Broader Range of Analysis Examples Here

6. Action Research

Action research involves a repetitive process of identifying a problem, formulating a plan to address it, implementing the plan, and then analyzing the results. It’s common in educational research contexts.

The objective is to promote continuous learning and improvement through reflection and action. You conduct research into your problem, attempt to apply a solution, then assess how well the solution worked. This becomes an iterative process of continual improvement over time.

For problem-solving, this method offers a way to test solutions in real-time and allows for changes and refinements along the way, based on feedback or observed outcomes. It’s a form of active problem-solving that integrates lessons learned into the next cycle of action.

Go Deeper: Action Research Examples

7. Information Gathering

Fundamental to solving any problem is the process of information gathering.

This involves collecting relevant data , facts, and details about the issue at hand, significantly aiding in the understanding and conceptualization of the problem.

In problem-solving, information gathering underpins every decision you make.

This process ensures your actions are based on concrete information and evidence, allowing for an informed approach to tackle the problem effectively.

8. Seeking Advice

Seeking advice implies turning to knowledgeable and experienced individuals or entities to gain insights on problem-solving.

It could include mentors, industry experts, peers, or even specialized literature.

The value in this process lies in leveraging different perspectives and proven strategies when dealing with a problem. Moreover, it aids you in avoiding pitfalls, saving time, and learning from others’ experiences.

9. Creative Thinking

Creative thinking refers to the ability to perceive a problem in a new way, identify unconventional patterns, or produce original solutions.

It encourages innovation and uniqueness, often leading to the most effective results.

When applied to problem-solving, creative thinking can help you break free from traditional constraints, ideal for potentially complex or unusual problems.

Go Deeper: Creative Thinking Examples

10. Conflict Resolution

Conflict resolution is a strategy developed to resolve disagreements and arguments, often involving communication, negotiation, and compromise.

When employed as a problem-solving technique, it can diffuse tension, clear bottlenecks, and create a collaborative environment.

Effective conflict resolution ensures that differing views or disagreements do not become roadblocks in the process of problem-solving.

Go Deeper: Conflict Resolution Examples

11. Addressing Bottlenecks

Bottlenecks refer to obstacles or hindrances that slow down or even halt a process.

In problem-solving, addressing bottlenecks involves identifying these impediments and finding ways to eliminate them.

This effort not only smooths the path to resolution but also enhances the overall efficiency of the problem-solving process.

For example, if your workflow is not working well, you’d go to the bottleneck – that one point that is most time consuming – and focus on that. Once you ‘break’ this bottleneck, the entire process will run more smoothly.

12. Market Research

Market research involves gathering and analyzing information about target markets, consumers, and competitors.

In sales and marketing, this is one of the most effective problem-solving methods. The research collected from your market (e.g. from consumer surveys) generates data that can help identify market trends, customer preferences, and competitor strategies.

In this sense, it allows a company to make informed decisions, solve existing problems, and even predict and prevent future ones.

13. Root Cause Analysis

Root cause analysis is a method used to identify the origin or the fundamental reason for a problem.

Once the root cause is determined, you can implement corrective actions to prevent the problem from recurring.

As a problem-solving procedure, root cause analysis helps you to tackle the problem at its source, rather than dealing with its surface symptoms.

Go Deeper: Root Cause Analysis Examples

14. Mind Mapping

Mind mapping is a visual tool used to structure information, helping you better analyze, comprehend and generate new ideas.

By laying out your thoughts visually, it can lead you to solutions that might not have been apparent with linear thinking.

In problem-solving, mind mapping helps in organizing ideas and identifying connections between them, providing a holistic view of the situation and potential solutions.

15. Trial and Error

The trial and error method involves attempting various solutions until you find one that resolves the problem.

It’s an empirical technique that relies on practical actions instead of theories or rules.

In the context of problem-solving, trial and error allows you the flexibility to test different strategies in real situations, gaining insights about what works and what doesn’t.

16. SWOT Analysis

SWOT is an acronym standing for Strengths, Weaknesses, Opportunities, and Threats.

It’s an analytic framework used to evaluate these aspects in relation to a particular objective or problem.

In problem-solving, SWOT Analysis helps you to identify favorable and unfavorable internal and external factors. It helps to craft strategies that make best use of your strengths and opportunities, whilst addressing weaknesses and threats.

Go Deeper: SWOT Analysis Examples

17. Scenario Planning

Scenario planning is a strategic planning method used to make flexible long-term plans.

It involves imagining, and then planning for, multiple likely future scenarios.

By forecasting various directions a problem could take, scenario planning helps manage uncertainty and is an effective tool for problem-solving in volatile conditions.

18. Six Thinking Hats

The Six Thinking Hats is a concept devised by Edward de Bono that proposes six different directions or modes of thinking, symbolized by six different hat colors.

Each hat signifies a different perspective, encouraging you to switch ‘thinking modes’ as you switch hats. This method can help remove bias and broaden perspectives when dealing with a problem.

19. Decision Matrix Analysis

Decision Matrix Analysis is a technique that allows you to weigh different factors when faced with several possible solutions.

After listing down the options and determining the factors of importance, each option is scored based on each factor.

Revealing a clear winner that both serves your objectives and reflects your values, Decision Matrix Analysis grounds your problem-solving process in objectivity and comprehensiveness.

20. Pareto Analysis

Also known as the 80/20 rule, Pareto Analysis is a decision-making technique.

It’s based on the principle that 80% of problems are typically caused by 20% of the causes, making it a handy tool for identifying the most significant issues in a situation.

Using this analysis, you’re likely to direct your problem-solving efforts more effectively, tackling the root causes producing most of the problem’s impact.

21. Critical Thinking

Critical thinking refers to the ability to analyze facts to form a judgment objectively.

It involves logical, disciplined thinking that is clear, rational, open-minded, and informed by evidence.

For problem-solving, critical thinking helps evaluate options and decide the most effective solution. It ensures your decisions are grounded in reason and facts, and not biased or irrational assumptions.

Go Deeper: Critical Thinking Examples

22. Hypothesis Testing

Hypothesis testing usually involves formulating a claim, testing it against actual data, and deciding whether to accept or reject the claim based on the results.

In problem-solving, hypotheses often represent potential solutions. Hypothesis testing provides verification, giving a statistical basis for decision-making and problem resolution.

Usually, this will require research methods and a scientific approach to see whether the hypothesis stands up or not.

Go Deeper: Types of Hypothesis Testing

23. Cost-Benefit Analysis

A cost-benefit analysis (CBA) is a systematic process of weighing the pros and cons of different solutions in terms of their potential costs and benefits.

It allows you to measure the positive effects against the negatives and informs your problem-solving strategy.

By using CBA, you can identify which solution offers the greatest benefit for the least cost, significantly improving efficacy and efficiency in your problem-solving process.

Go Deeper: Cost-Benefit Analysis Examples

24. Simulation and Modeling

Simulations and models allow you to create a simplified replica of real-world systems to test outcomes under controlled conditions.

In problem-solving, you can broadly understand potential repercussions of different solutions before implementation.

It offers a cost-effective way to predict the impacts of your decisions, minimizing potential risks associated with various solutions.

25. Delphi Method

The Delphi Method is a structured communication technique used to gather expert opinions.

The method involves a group of experts who respond to questionnaires about a problem. The responses are aggregated and shared with the group, and the process repeats until a consensus is reached.

This method of problem solving can provide a diverse range of insights and solutions, shaped by the wisdom of a collective expert group.

26. Cross-functional Team Collaboration

Cross-functional team collaboration involves individuals from different departments or areas of expertise coming together to solve a common problem or achieve a shared goal.

When you bring diverse skills, knowledge, and perspectives to a problem, it can lead to a more comprehensive and innovative solution.

In problem-solving, this promotes communal thinking and ensures that solutions are inclusive and holistic, with various aspects of the problem being addressed.

27. Benchmarking

Benchmarking involves comparing one’s business processes and performance metrics to the best practices from other companies or industries.

In problem-solving, it allows you to identify gaps in your own processes, determine how others have solved similar problems, and apply those solutions that have proven to be successful.

It also allows you to compare yourself to the best (the benchmark) and assess where you’re not as good.

28. Pros-Cons Lists

A pro-con analysis aids in problem-solving by weighing the advantages (pros) and disadvantages (cons) of various possible solutions.

This simple but powerful tool helps in making a balanced, informed decision.

When confronted with a problem, a pro-con analysis can guide you through the decision-making process, ensuring all possible outcomes and implications are scrutinized before arriving at the optimal solution. Thus, it helps to make the problem-solving process both methodical and comprehensive.

29. 5 Whys Analysis

The 5 Whys Analysis involves repeatedly asking the question ‘why’ (around five times) to peel away the layers of an issue and discover the root cause of a problem.

As a problem-solving technique, it enables you to delve into details that you might otherwise overlook and offers a simple, yet powerful, approach to uncover the origin of a problem.

For example, if your task is to find out why a product isn’t selling your first answer might be: “because customers don’t want it”, then you ask why again – “they don’t want it because it doesn’t solve their problem”, then why again – “because the product is missing a certain feature” … and so on, until you get to the root “why”.

30. Gap Analysis

Gap analysis entails comparing current performance with potential or desired performance.

You’re identifying the ‘gaps’, or the differences, between where you are and where you want to be.

In terms of problem-solving, a Gap Analysis can help identify key areas for improvement and design a roadmap of how to get from the current state to the desired one.

31. Design Thinking

Design thinking is a problem-solving approach that involves empathy, experimentation, and iteration.

The process focuses on understanding user needs, challenging assumptions , and redefining problems from a user-centric perspective.

In problem-solving, design thinking uncovers innovative solutions that may not have been initially apparent and ensures the solution is tailored to the needs of those affected by the issue.

32. Analogical Thinking

Analogical thinking involves the transfer of information from a particular subject (the analogue or source) to another particular subject (the target).

In problem-solving, you’re drawing parallels between similar situations and applying the problem-solving techniques used in one situation to the other.

Thus, it allows you to apply proven strategies to new, but related problems.

33. Lateral Thinking

Lateral thinking requires looking at a situation or problem from a unique, sometimes abstract, often non-sequential viewpoint.

Unlike traditional logical thinking methods, lateral thinking encourages you to employ creative and out-of-the-box techniques.

In solving problems, this type of thinking boosts ingenuity and drives innovation, often leading to novel and effective solutions.

Go Deeper: Lateral Thinking Examples

34. Flowcharting

Flowcharting is the process of visually mapping a process or procedure.

This form of diagram can show every step of a system, process, or workflow, enabling an easy tracking of the progress.

As a problem-solving tool, flowcharts help identify bottlenecks or inefficiencies in a process, guiding improved strategies and providing clarity on task ownership and process outcomes.

35. Multivoting

Multivoting, or N/3 voting, is a method where participants reduce a large list of ideas to a prioritized shortlist by casting multiple votes.

This voting system elevates the most preferred options for further consideration and decision-making.

As a problem-solving technique, multivoting allows a group to narrow options and focus on the most promising solutions, ensuring more effective and democratic decision-making.

36. Force Field Analysis

Force Field Analysis is a decision-making technique that identifies the forces for and against change when contemplating a decision.

The ‘forces’ represent the differing factors that can drive or hinder change.

In problem-solving, Force Field Analysis allows you to understand the entirety of the context, favoring a balanced view over a one-sided perspective. A comprehensive view of all the forces at play can lead to better-informed problem-solving decisions.

TRIZ, which stands for “The Theory of Inventive Problem Solving,” is a problem-solving, analysis, and forecasting methodology.

It focuses on finding contradictions inherent in a scenario. Then, you work toward eliminating the contraditions through finding innovative solutions.

So, when you’re tackling a problem, TRIZ provides a disciplined, systematic approach that aims for ideal solutions and not just acceptable ones. Using TRIZ, you can leverage patterns of problem-solving that have proven effective in different cases, pivoting them to solve the problem at hand.

38. A3 Problem Solving

A3 Problem Solving, derived from Lean Management, is a structured method that uses a single sheet of A3-sized paper to document knowledge from a problem-solving process.

Named after the international paper size standard of A3 (or 11-inch by 17-inch paper), it succinctly records all key details of the problem-solving process from problem description to the root cause and corrective actions.

Used in problem-solving, this provides a straightforward and logical structure for addressing the problem, facilitating communication between team members, ensuring all critical details are included, and providing a record of decisions made.

39. Scenario Analysis

Scenario Analysis is all about predicting different possible future events depending upon your decision.

To do this, you look at each course of action and try to identify the most likely outcomes or scenarios down the track if you take that course of action.

This technique helps forecast the impacts of various strategies, playing each out to their (logical or potential) end. It’s a good strategy for project managers who need to keep a firm eye on the horizon at all times.

When solving problems, Scenario Analysis assists in preparing for uncertainties, making sure your solution remains viable, regardless of changes in circumstances.

How to Answer “Demonstrate Problem-Solving Skills” in an Interview

When asked to demonstrate your problem-solving skills in an interview, the STAR method often proves useful. STAR stands for Situation, Task, Action, and Result.

Situation: Begin by describing a specific circumstance or challenge you encountered. Make sure to provide enough detail to allow the interviewer a clear understanding. You should select an event that adequately showcases your problem-solving abilities.

For instance, “In my previous role as a project manager, we faced a significant issue when our key supplier abruptly went out of business.”

Task: Explain what your responsibilities were in that situation. This serves to provide context, allowing the interviewer to understand your role and the expectations placed upon you.

For instance, “It was my task to ensure the project remained on track despite this setback. Alternative suppliers needed to be found without sacrificing quality or significantly increasing costs.”

Action: Describe the steps you took to manage the problem. Highlight your problem-solving process. Mention any creative approaches or techniques that you used.

For instance, “I conducted thorough research to identify potential new suppliers. After creating a shortlist, I initiated contact, negotiated terms, assessed samples for quality and made a selection. I also worked closely with the team to re-adjust the project timeline.”

Result: Share the outcomes of your actions. How did the situation end? Did your actions lead to success? It’s particularly effective if you can quantify these results.

For instance, “As a result of my active problem solving, we were able to secure a new supplier whose costs were actually 10% cheaper and whose quality was comparable. We adjusted the project plan and managed to complete the project just two weeks later than originally planned, despite the major vendor setback.”

Remember, when you’re explaining your problem-solving skills to an interviewer, what they’re really interested in is your approach to handling difficulties, your creativity and persistence in seeking a resolution, and your ability to carry your solution through to fruition. Tailoring your story to highlight these aspects will help exemplify your problem-solving prowess.

Go Deeper: STAR Interview Method Examples

Benefits of Problem-Solving

Problem-solving is beneficial for the following reasons (among others):

• It can help you to overcome challenges, roadblocks, and bottlenecks in your life.
• It can save a company money.
• It can help you to achieve clarity in your thinking.
• It can make procedures more efficient and save time.
• It can strengthen your decision-making capacities.
• It can lead to better risk management.

Whether for a job interview or school, problem-solving helps you to become a better thinking, solve your problems more effectively, and achieve your goals. Build up your problem-solving frameworks (I presented over 40 in this piece for you!) and work on applying them in real-life situations.

• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 119 Bloom’s Taxonomy Examples
• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ All 6 Levels of Understanding (on Bloom’s Taxonomy)
• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ 15 Self-Actualization Examples (Maslow's Hierarchy)
• Chris Drew (PhD) https://helpfulprofessor.com/author/chris-drew-phd/ Forest Schools Philosophy & Curriculum, Explained!

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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.  

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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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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Top Problems You Might have with Retail Strategy

Many of us are familiar with an old adage known as Murphy’s Law:  “everything that can go wrong will go wrong.” While its outlook seems pessimistic, this saying encourages us to plan ahead for when things go awry.

Developing an effective retail strategy requires you to anticipate challenges along the way. Retail planning relies on variable elements like customer behavior, so you will frequently need to adjust your plan to solve problems that arise.

Mall owners move sustainability to the center

This page will address some of the top problems that you may encounter with your retail strategy. Customer retention, marketing consistency, managing omnichannel platforms, and supply chain management are common challenges that your business might encounter. In each section, we will address the problem, its impact over time, and possible solutions.

Retaining New Customers

Your retail marketing strategy will often on creating new customers. To grow your business, you need to new people need to buy your products. However, while promotions, sales, and other marketing strategies might temporarily boost revenue, you need to find a way to get these new customers to come back over time. This issue is especially challenging given declines in consumer spending.

One way to help bring people back to your business is to create loyalty programs. Many grocery stores offer fuel points with purchases to allow regular customers to save money on gas when they earn points in-store. Sephora, a cosmetics brand, also offers an extensive loyalty program that allows customers to get samples, discounts, and more with the points that they earn.

Another solution to overcome retention challenges is to encourage first-time buyers to sign up for email or SMS marketing. Typically, you can offer customers a small discount (usually 10% off) to sign up for these promotions. Then, your customer will receive messages from marketers that encourage them to return to the store.

Optimizing an Omnichannel Marketing Strategy

Another strategic challenge that you may face in retail marketing is optimizing your strategy over multiple channels . In the digital age, marketers have countless options between online and traditional media. Successful businesses will use all channels to market their product, but to use this approach, you will need to target and organize your strategy.

One of the problems that businesses face in multimedia marketing is maintaining consistency without repetition . You need to maintain your brand across your physical store, traditional marketing, social media, and your website. However, you want to avoid repeating content on different media for three key reasons. One, brands that post the same content are viewed as lazy or uncaring. Two, you must tailor your content to each form of media. An Instagram reel, for example, will need to be edited and published differently from a YouTube video. Finally, social media ads cost money, so your company should aim to avoid redundancy.

A good solution to this issue is to hire a social media manager . This person will maintain your online presence while posting and creating content for your target audience over omnichannel platforms. A social media manager also knows how to interpret data from each platform to better target your marketing strategy. They will also maintain business interactions across these platforms, engaging your customer base organically. A small business, however, might not have the budget to hire a social media manager. In that case, you should designate a member of your team to oversee social media management or learn how to leverage these platforms yourself.

Creating Continuous Customer Experiences

A persistent challenge facing modern retailers is creating a continuous customer experience across omnichannel platforms. Customers want consistency in product, level of service, and overall experience between e-commerce platforms and brick-and-mortar stores.

To achieve this continuity, you must ensure that your in-store and online components work together to create a positive customer experience. For example, if your store offers online order pickup, then you need to fulfill those orders. Likewise, if a customer sees products listed as in stock on your website, then they will expect those products to be available in-store. You and your team should ensure that your store communicates with your e-commerce team to keep your website updated and to fulfill orders.

Along with seamless logistics, customers also want consistent quality when they shop. A great in-store experience is less impactful if a customer’s online experience is subpar. TJ Maxx, for example, famously struggles to bring their in-person shopping experience to an online platform, hurting the retailer’s online sales.

One of the best ways to create this continuity is through a consistent brand. Brands that maintain a consistent look, feel, and quality between physical and e-commerce platforms create the illusion of consistency. Even if some inconsistencies do exist, companies can help alleviate their impact on customers’ experience.

Supply Chain Management

Another persistent problem that your team may face is supply chain problems. In the wake of the pandemic, many businesses have experienced increased product shortages and lead times for deliveries. These issues often negatively impact sales because a customer cannot buy a product if it is not in stock. Furthermore, if customers experience supply chain issues in your store over time, they may choose to shop elsewhere.

Supply chain management is a challenge for many retailers because it is not something that businesses can always control. If your company is part of a corporate franchise, then you may not have decision-making power over the companies that provide freight and manufacturing services for your store. Small businesses, on the other hand, may face challenges with costs. A mom-and-pop shop might not be able to afford a better shipping company.

The best way to overcome this challenge is to plan ahead and focus on the problems that you can control. You should review sales data to anticipate when you will need product, allowing you to order ahead of time. If shortages happen, you can help alleviate their visual impact by rearranging display shelves. Customer service teams can also offer discounts or rebates for people who do not find the product they need.

To overcome external challenges like supply chain issues, you will need to get creative and think ahead. You may not be able to fully overcome the problem, but you can take proactive steps to address it in your store.

For more information, please refer to the following pages:

• What Are the Elements of Retail Strategy?
• What Is the Most Powerful Marketing Strategy in Retail?
• How to Design Your Store to Convert More Sales
• How to Attract Customers Who Will Pay Full Price for Your Products
• Tips for Streamlining Your Sales Process in Retail
• Retail: Top Reasons Your Customers Are Going Elsewhere & What to Do About It

Fishbone Diagram

Ai generator.

A Fishbone Diagram, also known as an Ishikawa or cause-and-effect diagram, is a visual tool used for critical thinking and problem-solving. It helps identify the root causes of a problem by organizing potential contributing factors into categories resembling a fish’s skeleton. This method enhances critical thinking by encouraging thorough analysis and structured brainstorming, making it easier to pinpoint underlying issues and develop effective solutions. Ideal for quality management, it fosters a deeper understanding of complex problems.

What is Fishbone Diagram?

A Fishbone Diagram, or Ishikawa Diagram, is a visual tool for identifying root causes of a problem. Shaped like a fish skeleton, it organizes potential causes into categories, facilitating structured analysis and critical thinking in problem-solving processes.

Fishbone Diagram Example

• Fishbone Diagram for Manufacturing Issues – Identifies causes like machine faults, manpower errors, material defects, and measurement inaccuracies affecting production.
• Fishbone Diagram for Service Delivery Problems – Analyzes factors like staff training, customer expectations, service procedures, and communication affecting service quality.
• Fishbone Diagram for Quality Control – Examines causes such as testing procedures, material quality, equipment calibration, and operator skills affecting product quality.
• Fishbone Diagram for Process Improvement – Identifies bottlenecks like workflow inefficiencies, resource allocation, employee training, and technology integration impacting process efficiency.

Types of Fishbone Diagrams

• 4S Fishbone Diagram – Focuses on root causes in four categories: Surroundings, Suppliers, Systems, and Skills, commonly used in service industries.
• 5M Fishbone Diagram – Categorizes causes into Manpower, Methods, Materials, Machines, and Measurements, often used in manufacturing sectors.
• 6M Fishbone Diagram – Expands to Manpower, Methods, Materials, Machines, Measurements, and Mother Nature (environment), useful for comprehensive problem analysis.
• 8P Fishbone Diagram – Analyzes problems using eight categories: Product, Price, Place, Promotion, People, Process, Physical Evidence, and Performance, ideal for marketing.

Digital Tools and Software For Fishbone Diagram creation

• Lucidchart – An online diagramming tool offering templates for fishbone diagrams, aiding in causal research and collaborative problem-solving.
• Microsoft Visio – Provides advanced features for creating fishbone diagrams, supporting detailed causal research and professional presentations.
• Creately – A versatile tool for drawing fishbone diagrams, enhancing causal research with intuitive drag-and-drop functionality.
• SmartDraw – Software designed for creating fishbone diagrams, facilitating causal research with easy-to-use templates and customization options.
• Edraw Max – Offers comprehensive tools for fishbone diagram creation, ideal for in-depth causal research and visual data analysis.
• Miro – An online whiteboard tool that supports fishbone diagram creation, perfect for collaborative causal research and brainstorming sessions.

Fishbone Diagram Example For Students

• Fishbone Diagram for Exam Preparation – Identifies causes like study habits, time management, resources, and distractions affecting students’ exam performance.
• Fishbone Diagram for Group Projects – Analyzes factors such as team communication, task division, deadlines, and resource availability impacting project success.
• Fishbone Diagram for Classroom Behavior – Examines causes like peer influence, teaching methods, classroom environment, and personal issues affecting student behavior.
• Fishbone Diagram for Homework Completion – Identifies causes and effects such as time management, understanding of material, support at home, and motivation impacting homework completion.

Fishbone Diagram Medicine

• Fishbone Diagram for Medication Errors – Identifies causes like prescription inaccuracies, dispensing mistakes, patient misunderstanding, and staff training affecting patient safety.
• Fishbone Diagram for Patient Treatment Delays – Analyzes factors such as scheduling issues, resource availability, communication gaps, and procedural inefficiencies impacting care delivery.
• Fishbone Diagram for Drug Interaction Issues – Examines causes like patient history, prescription review processes, staff knowledge, and documentation practices affecting treatment safety.
• Fishbone Diagram for Hospital Readmissions – Identifies causes such as discharge procedures, follow-up care, patient education, and chronic condition management impacting the territory sales plan .

When To Use a Fishbone Diagram

• Problem Identification – Use a fishbone diagram to identify root causes when a problem’s origin is unclear.
• Quality Improvement – Employ it to enhance quality by pinpointing defects and inefficiencies in processes.
• Process Analysis – Utilize it to analyze and understand complex processes, identifying contributing factors to issues.
• Team Brainstorming – Apply it during team brainstorming sessions to organize thoughts and visualize potential causes.
• Root Cause Analysis – Use it for in-depth root cause analysis to prevent recurring problems by addressing underlying issues.
• Project Management – Implement it in project management to foresee potential problems and plan effective solutions.
• Customer Complaints – Employ it to investigate customer complaints, identifying root causes and improving customer satisfaction.

How to Create a Fishbone Diagram

• Define the Problem – Clearly state the issue to be analyzed, ensuring everyone understands the problem.
• Create the Head – Draw a horizontal arrow pointing to the right, with the problem written at the arrow’s head.
• Identify Major Categories – Determine the main categories of potential causes (e.g., Methods, Materials, Machines, Manpower).
• Draw the Bones – Create branches from the main arrow for each category, resembling a fishbone structure.
• Brainstorm Possible Causes – List all potential causes under each category, identifying factors contributing to the problem.
• Analyze the Diagram – Examine the identified causes, looking for patterns and root causes.
• Develop Action Plan – Formulate a plan to address and mitigate the root causes, aiming for problem resolution.
• Review and Revise – Continuously review and revise the diagram as needed to ensure it reflects any new information or changes.

Benefits of Fishbone Diagrams

• Identifies Root Causes – Helps pinpoint underlying causes of a problem rather than just addressing symptoms.
• Organizes Thoughts Visually – Provides a clear, visual representation of complex issues, making it easier to understand and analyze.
• Encourages Team Collaboration – Promotes brainstorming and collective problem-solving, leveraging diverse perspectives.
• Simplifies Complex Problems – Breaks down complicated problems into manageable categories, facilitating a structured approach to analysis.
• Supports Quality Improvement – Aids in identifying defects and inefficiencies, leading to enhanced quality and performance.
• Facilitates Communication – Offers a straightforward way to communicate problems and potential solutions to stakeholders.
• Enhances Decision Making – Provides a comprehensive view of all possible causes, aiding in informed decision-making.
• Promotes Continuous Improvement – Encourages ongoing analysis and refinement of processes, contributing to long-term improvements.
• Prevents Recurrence – Helps develop solutions that address root causes, reducing the likelihood of problems recurring.
• Adaptable Tool – Versatile and can be used across various industries and for different types of problems.

Who created the fishbone diagram?

Dr. Kaoru Ishikawa, a Japanese quality control expert, created the fishbone diagram.

What are the main components of a fishbone diagram?

The main components are the problem statement (head) and categories of potential causes (bones).

How is a fishbone diagram used in quality management?

It is used to identify, explore, and display potential causes of problems, aiding in quality improvement.

What are common categories in a fishbone diagram?

Common categories include Methods, Materials, Machines, Manpower, Measurements, and Environment.

How does a fishbone diagram facilitate brainstorming?

It organizes thoughts visually, encouraging team members to explore and discuss potential causes.

Can fishbone diagrams be used for non-manufacturing problems?

Yes, they are versatile and can be applied to any problem in various industries, including healthcare, education, and services.

What is the first step in creating a fishbone diagram?

Define the problem clearly and write it at the head of the main arrow.

How do you identify root causes using a fishbone diagram?

By brainstorming and listing all potential causes under each category, then analyzing patterns and relationships.

What are the benefits of using a fishbone diagram?

Benefits include identifying root causes, organizing thoughts, encouraging collaboration, and supporting quality improvement.

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Americans’ Dismal Views of the Nation’s Politics

1. the biggest problems and greatest strengths of the u.s. political system, table of contents.

• The impact of partisan polarization
• Persistent concerns over money in politics
• Views of the parties and possible changes to the two-party system
• Other important findings
• Explore chapters of this report
• In their own words: Americans on the political system’s biggest problems
• In their own words: Americans on the political system’s biggest strengths
• Are there clear solutions to the nation’s problems?
• Evaluations of the political system
• Trust in the federal government
• Feelings toward the federal government
• The relationship between the federal and state governments
• Americans’ ratings of their House member, governor and local officials
• Party favorability ratings
• Most characterize their party positively
• Quality of the parties’ ideas
• Influence in congressional decision-making
• Views on limiting the role of money in politics
• Views on what kinds of activities can change the country for the better
• How much can voting affect the future direction of the country?
• Views of members of Congress
• In their own words: Americans’ views of the major problems with today’s elected officials
• How much do elected officials care about people like me?
• What motivates people to run for office?
• Quality of recent political candidates
• In elections, is there usually at least one candidate who shares your views?
• What the public sees as most important in political candidates
• Impressions of the people who will be running for president in 2024
• Views about presidential campaigns
• How much of an impact does who is president have on your life?
• Whose priorities should the president focus on?
• How different are the Republican and Democratic parties?
• Views of how well the parties represent people’s interests
• What if there were more political parties?
• Would more parties make solving problems easier or harder?
• How likely is it that an independent candidate will become president?
• Americans who feel unrepresented by the parties have highly negative views of the political system
• Views of the Electoral College
• Should the size of the U.S. House of Representatives change?
• Senate seats and population size
• Younger adults more supportive of structural changes
• Politics in a single word or phrase: An outpouring of negative sentiments
• Negative emotions prevail when Americans think about politics
• Americans say the tone of political debate in the country has worsened
• Which political topics get too much – and too little – attention?
• Majority of Americans find it stressful to talk politics with people they disagree with
• Acknowledgments

The public sees a number of specific problems with American politics. Partisan fighting, the high cost of political campaigns, and the outsize influence of special interests and lobbyists are each seen as characteristic of the U.S. political system by at least 84% of Americans.

Yet 63% also say that “ordinary Americans care about making the political system work well” is a good description of U.S. politics today. Still, when asked to describe a strength of the political system in their own words, more than half either say “nothing” (22%) or decline to give an answer (34%).

Americans view negative statements as better descriptions of the political system than positive ones

More than eight-in-ten adults say that each of the following is at least a somewhat good description of the U.S. political system today:

• Republicans and Democrats are more focused on fighting each other than on solving problems (86%);
• The cost of political campaigns makes it hard for good people to run for office (85%);
• Special interest groups and lobbyists have too much say in what happens in politics (84%).

About six-in-ten (63%) think ordinary Americans want to make the political system work well. This is the rare positive sentiment that a majority views as a good descriptor of the political system.

Fewer than half of adults hold the view that the government deserves more credit than it gets: Majorities say that “the federal government does more for ordinary Americans than people give it credit for” (59%) and “Congress accomplishes more than people give it credit for” (65%) are both bad descriptions of the political system.

Nearly seven-in-ten adults express frustration with the availability of unbiased information about politics: 68% say the statement “it is easy to find unbiased information about what is happening in politics” is not a good description of the political system.

And just 22% of Americans say that political leaders facing consequences for acting unethically is a good description of the political system. They are more than three times as likely to say that this is a bad description (76% say this).

Many critiques of the political system are bipartisan

Partisans have similar views of many of the descriptions of the political system included in the survey.

Overwhelming majorities in both parties think there is too much partisan fighting, campaigns cost too much, and lobbyists and special interests have too much say in politics. And just 24% of Democrats and Democratic-leaning independents and 20% of Republicans and Republican leaners say that political leaders face consequences if they act unethically.

The widest partisan gap is over a description of the federal government. Democrats are roughly twice as likely as Republicans to say “the federal government does more for ordinary Americans than people give it credit for” (54% vs. 26%).

There is a narrower gap in views of Congress’ accomplishments: 37% of Democrats and 28% of Republicans say it accomplishes more than people give it credit for.

Democrats are also more likely to say, “It is easy to find unbiased information about what is happening in politics” (36% of Democrats and 25% of Republicans say this is a good description of the political system today), while Republicans are slightly more likely than Democrats to view ordinary Americans as wanting to make the political system work well (67% of Republicans and 61% of Democrats say this is a good description).

When asked to describe in their own words the biggest problem with the political system in the U.S. today, Americans point to a wide range of factors.

Negative characteristics attributed to politicians and political leaders are a common complaint: 31% of U.S. adults say politicians are the biggest problem with the system, including 15% who point to greed or corruption and 7% who cite dishonesty or a lack of trustworthiness.

The biggest problem, according to one woman in her 50s, is that politicians are “hiding the truth and fulfilling their own agendas.” Similarly, a man in his 30s says, “They don’t work for the people. They are too corrupt and busy filling their pockets.”

Explore more voices: The political system’s biggest problems

What do you see as the biggest problem with the political system in the U.S. today?

“An almost total lack of credibility and trust. Coupled with a media that’s so biased, that they’ve lost all objectivity.” –Man, 70s

“Lying about intentions or not following through with what elected officials said they would do.” –Woman, 20s

“Blind faith in political figures.” –Woman, 50s

“Our elected officials would rather play political games than serve the needs of their constituents.” –Woman, 50s

“Same politicians in office too long.” –Woman, 30s

“Extremism on both sides exploited by the mainstream media for ratings. It is making it impossible for both parties to work together.” –Man, 30s

“It has become too polarized. No one is willing to compromise or be moderate.” –Woman, 40s

“Too much money in politics coming from large corporations and special interest.” –Man, 30s

“The people have no say in important matters, we have NO representation at all. Our lawmakers are isolated and could care less what we want.” –Man, 60s

About two-in-ten adults cite deep divisions between the parties as the biggest problem with the U.S. political system, with respondents describing a lack of cooperation between the parties or among elected leaders in Washington.

“Both of the political parties are so busy trying to stop the other party, they are wasting their opportunities to solve the problems faced by our nation,” in the view of one man in his 70s.

Even as some blame polarization, others (10% of respondents) identify the other party as the system’s biggest problem. Some Republicans say that the biggest problem is “Democrats” while some Democrats simply say “Republicans.”

Smaller but substantial shares of adults name the media and political discourse (9%), the influence of money in politics (7%), government’s perceived failures (6%), specific policy areas and issues (6%) or problems with elections and voting (4%) as the biggest problem with the political system today.

Far fewer adults name a specific strength of the political system today when asked to describe the system’s biggest strength in their own words. More than half either say that the system lacks a biggest strength (22%) or decline to answer (34%). As one woman in her 60s writes, “I’m not seeing any strengths!”

Among those who do identify strengths of the U.S. political system, the structure of political institutions and the principles that define the constitutional order are named most frequently (by 12% of respondents). Many respondents specifically point to the Constitution itself or refer to the separation of powers or the checks and balances created by the Constitution.

A man in his 20s believes that the “separation of powers and federalism work pretty well,” while one in his 30s writes that the system’s greatest strength is “the checks and balances to make sure that monumental changes aren’t made unilaterally.”

Explore more voices: The political system’s biggest strengths

What do you see as the biggest strength of the U.S. political system today?

“Everyone getting a say; democracy.” –Woman, 40s

“The right to have your opinions heard.” –Man, 60s

“In spite of our differences, we are still a democracy, and I believe there are people within our government who still care and are interested in the betterment of our country.” –Woman, 50s

“The freedom of speech and religion” –Woman, 50s

“If we have fair, honest elections we can vote out the corruption and/or incompetent politicians.” –Man, 70s

“The Constitution.” –Man, 50s

“The checks and balances to control the power of any office. The voice of the people and the options to remove an official from office.” –Man, 60s

“New, younger voices in government.” –Woman, 40s

“If we can’t get more bipartisanship we’ll become weaker. Our biggest strength is our working together.” –Woman, 60s

“The way that every two years the people get to make their voice heard.” –Man, 30s

About one-in-ten (9%) refer to individual freedoms and related democratic values, while a similar share (8%) discuss the right to vote and the existence of free elections. A woman in her 70s echoes many similar comments when she points to “the possibility of change in upcoming elections.”

However, even some of the descriptions of positive characteristics of the system are couched in respondents’ doubts about the way the system is working today. One woman in her 50s adds a qualification to what she views as the system’s biggest strength, saying, “Theoretically every voter has a say.”

Smaller shares of the public point to the positive characteristics of some politicians (4%) or the positive characteristics of the American people (4%) as reasons for optimism.

The public remains roughly evenly split over whether there are clear solutions to the biggest issues facing the country. Half of Americans today say there are clear solutions to most of the big issues facing the country, while about as many (48%) say most big issues don’t have clear solutions.

There are relatively modest demographic and political differences in perceptions of whether the solutions to the nations’ problems are clear or not.

While both men and women are relatively divided on this question, women are 6 percentage points more likely to think the big issues facing the country don’t have clear solutions.

Race and ethnicity

While 43% of Hispanic adults and about half of Black (50%) and White (48%) adults say there aren’t clear solutions for most big issues, that rises to 62% among Asian adults.

Age differences on this question are modest, but those under 30 are slightly more likely than those 30 and older to say most big issues have clear solutions.

Partisanship and political engagement

Both Republicans and Democrats are relatively split on this question, though Republicans are slightly more likely to say there are clear solutions to most big issues.

Those with higher levels of political engagement are more likely to say there are clear solutions to most big issues facing the country.

About six-in-ten adults with high levels of political engagement (61%) say there are clear solutions to big issues today, compared with half of those with medium levels of engagement and 41% of those with lower engagement.

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