2 Steps Of The Sale Approach the customer Determine needs Determine what the customer wants and needs.Present the productChoose the appropriate product and educate the customer about the features and benefits.
3 Steps Of The Sale cont. Overcome objections Close the sale Determine why the customer is hesitant to buyConvey information that will remove uncertainty.Close the saleGet the customers agreement to buy.
4 Steps Of The Sale cont. Suggestion sell Build relationships Identify additional goods or services that will help the customer better enjoy the product.Build relationshipsMaintain contact with customers after the sale is complete.
5 The approach is… The first encounter with a potential customer The initial approach depends on prior encounters with the customer.With existing customers, the sales associate may comment on families, hobbies, or vacations.With new customers the salesperson could engage in small talk to develop a relationship with the customer.
6 Four approaches can be used during the initial approach. Service approachGreeting approachMerchandise approachCombination approach
7 Service Approach The salesperson asks the customer if they need help. For example, “May I help you find something today?”This approach is most effective when the customer is in a hurry or when taking routine orders such as fast food.
8 Greeting Approach The salesperson welcomes the customer to the store. For example, “Good morning”, or “Welcome to Cici’s!”The salesperson should be upbeat, friendly, and smile.
9 Merchandise ApproachThe salesperson comments on the product the customer is interested in.This approach is effective only if the customer is looking at something specific.The salesperson comments on the product’s features and benefits.For example, “That video game is rated E for everyone, which means it does not contain harsh language or violence.”This approach is most effective in retail sales because it focuses on the product.
10 Combination ApproachThe salesperson uses two or three of the service, greeting, or merchandise approaches.For example, “Hello, welcome to Hollister. We have a great sale on jeans today. May I help you find your size?”
11 How to determine consumer needs Determine customer’s reasons for buyingThe salesperson should focus on determining the customer’s needs as early as possible.ObservingListeningQuestioning and Engaging
12 Methods For Determining Needs Observing - Look for nonverbal communication clues that indicate the customer’s interest in the product.For example, hand motions, facial expressions, or eye movements.Listening - Helps pick up clues to the customer’s needs.
13 Questioning and engaging the customer Ask questions about how the customer wants to use the product or if the customer has any previous experience.Ask questions such as who, what, when, where, why, and how.Once needs are determined, the salesperson can ask more specific, open-ended questions, which cannot be answered with a simple yes or no.
14 Product presentation time! The first decision in product presentation is what product(s) to show the customerAfter determining how the customer plans to use the productShow the customer no more than three products at a time to avoid confusionIf the customer wants to see more, remove the products for which the customer no longer has an interest.
15 Product presentation time! Show a medium-priced product when the customer’s price range is not knownPrice should not be introduced early in the presentationThe salesperson needs to prove how valuable the product will be to the customer.When talking to the customer, highlight the features and benefits that match customer’s buying motives and needsUse descriptive adjectives and action verbs; avoid unclear words, such as nice, pretty, and fine.
16 Effective Product Presentation Display and handle the productHandle the product appropriatelyUse hand gestures to show the significant features of the product.Demonstrate the productHelp boost customer confidence by showing them the proper use of the product.
17 Effective Product Presentation Use sales aidsSamples, audiovisuals, models, photographs, and customer testimonials are a few examples of sales aidsA salesperson should be creative in deciding which aids to use.Involve the customerIt is important to physically engage the customer in the product demonstration as soon as possible.
18 Effective Product Presentation Hold the customer’s attentionInvolving the customer in the sale helps the person to make an intelligent buying decisionIf the salesperson is losing the customer’s attention, he/she should ask open-ended, probing questions to make sure the customer is following the demonstration
19 Buying ObjectionsObjection - A legitimate reason, doubt, or hesitation a customer has for not making a purchase.Excuse - A reason a customer will not buy or speak to a salespersonExcuses are used when customers are not interested in buying or when they are hiding other objectionsIn retail situations, remain polite and suggest the customer look aroundIn B2B situations, simply leave a business card.
20 Objections may be based on one or a combination of: Need - Urgency for the productFor example, the customer says, “I do not need a new bathing suit.”Product - Design, ease of use, quality, color, size, or styleFor example, the customer says, “You do not have my size.”
21 Objections may be based on one or a combination of: Source - Related to past experiences with the company or productFor example, the customer says, “The last time I bought a Speedo, it did not last more than one season.”Price - Most common with expensive productsFor example, the customer says, “That is more than I am willing to pay.”
22 Objections may be based on one or a combination of: Time - Customers are leery about making a purchase “on the spot”Objections based on time are often excusesFor example, the customer says, “I am not ready to buy a new bathing suit now.”
23 Procedures For Handling An Objection Listen carefully.Acknowledge the objection.Restate the objection.Answer the objection.
24 Methods to handle objections SubstitutionBoomerangQuestionSuperior-pointDenialDemonstrationThird party
25 Methods to handle objections SubstitutionBoomerangIdentify another product that would satisfy the customers’ needsFor example, the customer says “The last time I used a twin blade razor, it cut my face.” The salesperson’s response could be, “Try the new four blade razor with enhanced microfins.”Bring the objection back to the customer as a selling pointWith this method, be careful not to sound condescending to the customerFor example, the customer may object because they had a bad experience with a product in the past. The salesperson could respond with, “I’m sorry you had a bad experience before; however, our products have been reformatted based on customer feedback.”
26 Methods to handle objections QuestionSuperior-PointAsk the customer questions to learn more about the objectionFor example, if the customer objects with, “I don’t see the need for fabric protection.” The salesperson can respond with, “Do you have small children?”Offset the customer objections with the product’s features and benefitsFor example, the customer objects about price. The salesperson can respond with, “Yes this television is more expensive; it is our top of the line model. You will think you’re in a theater when you watch it and the sound is incredible.”
27 Methods to handle objections DenialDemonstrationThe customer’s objection is based on misinformationThis method is often in the form of a questionFor example, the customer says, “Are you sure these shoes will fit me? I have wide feet.” The salesperson can respond with, “Yes, these shoes are made with a durable, elastic fabric that contours to anyone’s foot.”“Seeing is believing.”For example, allowing the customer to try to manipulate the product himself or herself, or giving the customer a sample to try
28 Methods to handle objections Third PartyUses customer or celebrity testimonialsFor example, showing the customer advertisements featuring famous celebrities or sharing positive feedback from customers who have used the product.
29 How To Close The Sale Time The Close Closing a sale - Initiating and obtaining an agreement from the customer to purchase a product.Look for buying signals - What a customer says or does to indicate he/she is ready to buyFor example, watch for facial expressions, body language, and listen to comments.Trial close - Test the readiness of the customer to buyFor example, “Is this a gift for someone? May I take this to the counter for you?”
30 Rules For Closing The Sale Recognize closing opportunitiesFor example, the customer reaches for his/her wallet.Help customers make decisionsFor example, the customer may need help deciding between two colors for a picture frame.Create ownership mentalityFor example, use words such as “you” and “your” to convey ownership. “You will enjoy driving this car on family vacations.”Do not talk too much or rush the customer
31 Methods for closing the sale WhichStanding-room onlyDirectService
32 Methods For Closing The Sale Which - Suggest the customer choose between two itemsFor example, “Which do you prefer, the blue or the red?”Standing-room only - Used when there is a limited number of products in stock or when the price is expected to go upFor example, “I’m glad you like this make and model, though I can’t promise it will be available if you come back tomorrow. Our sale ends at midnight.”
33 Methods For Closing The Sale Direct - Asking for the sale.This method is most effective when the buying signals are very strongFor example, “Ok ladies, based on what I’ve shown you today, what would you like to take home with you?”Service - Works best when handling obstacles or dilemmasThe salesperson should explain the services available that would solve the problemFor example, “Our products are backed by a 100%, money back guarantee. If you are not completely satisfied, simply return it.”If the close does not result in a sale, the salesperson should get feedback from the customer as to why he/she decided not to make a purchase. This is a learning experience.
34 Suggestion selling is… Selling complimentary or additional goods or services to the customer that would make the original purchase more enjoyable.The salesperson, customer, and company benefit from suggestion selling
35 Rules For Suggestion Selling Suggestion sell after the customer has made a commitment to buy, and before payment is made.Make recommendations from the customer’s point of view and explain the recommendation.Make the suggestion specific.Allow the customer to see the item being suggested.The suggestion should be helpful.
36 Suggestion Selling Methods Cross selling - Offering related merchandiseFor example, the customer has committed to buying a pair of sneakers. The salesperson should suggest shoe cleanerUpselling - Recommending larger quantities of merchandise at a lower priceThis method is most effective when the retail customer is purchasing inexpensive items, or when a B2B customer can take advantage of lower prices or special deals.Special sales opportunities - The salesperson is obligated to inform the customer of special salesIn retail, customers appreciate knowing when to expect new merchandise. In B2B, show customers new products that are or will be available
37 How to maintain a relationship with the customer Order processingDepartureOrder fulfillmentFollow-upCustomer serviceKeeping a client fileEvaluate sales efforts
38 After-sales Activities Order processingIn retail, bag the customer’s merchandise with speed and careIn B2B, complete necessary paperwork and leave a business card.DepartureReassure the customer they have made the right decisionRestate proper care and use instructionsAlways thank the customer regardless of the outcome.
39 After-sales Activities Order fulfillment.In a retail situation, the customer pays for the product and takes it home.In an e-commerce, mail order, or telemarketing situation:The desired product is chosen by the customer.The customer’s payment is processed.The product is packaged.The order is shipped according to the customer’s specificationsOrder fulfillment may also include customer service, returns and refunds or exchanges, and technical support.
40 After-sales Activities Follow-upInvolves following through on the promises made during the saleIt also means checking up to ensure the customer is satisfied with his or her purchase.Customer serviceMost businesses have customer service departments to handle customer inquiries and complaintsThe main goal is customer satisfaction.
41 After-sales Activities Keeping a client fileRecord useful information regarding the customer and his/her purchasesFor example, in retail, record the customer’s size, style, name, and address. In B2B, record family status, hobbies, and birthdays.Evaluate sales effortsComplete a self-evaluation after the sale. Review the following:What were the strong points of the presentation?What was done incorrectly or ineffectively?How can the presentation be improved?What should be done differently?If the sale was successful, what can be done to solidify the relationship?
42 Customer Relationship Management (CRM) Managing detailed information about individual customers and carefully managing customer preferences (or touch points) in order to maximize customer loyaltyCRM helps companies maintain and strengthen relationships.
43 Customer Relationship Management Implement technology and CRMFirms can purchase customized software or subscribe to online services to help provide better customer service and track dataFor example, salesforce.comMaintain contactsSalespeople can act as consultants to customers, offering solutions to problemsFor example, being on hand to answer questions from the client and/or being able to walk the client through proper use of the product.Maintain relationshipsProvide customers with personalized serviceFor example, AAA can plan vacations for its members at the member’s request.
44 Customer Relationship Management Develop customer loyaltyKeep customers happy, not only during the sale, but after as well in preparation for future salesFor example, keep customers aware of new products or upcoming events through or direct mail.Implement rewards programsReward customers who patronize the business on a regular basisFor example, frequent flyer programs or offer a free gift with purchase.