5.02 Demonstrate the steps of a sale. UNIT E SELLING FASHION 5.02 Demonstrate the steps of a sale.

The Steps of a Sale Approach Determining customer needs and wants Merchandise presentation Handling customer objections Closing the sale Suggestion selling Thanking and reassuring the customer Sales follow-up

The Approach The initial face-to-face meeting with the customer. Usually within 30 seconds from the time a customer enters the store or department Used to acknowledge customer presence Greeting approach Service approach Merchandise approach

Greeting approach May include an introduction of oneself May be combined with the service or merchandise approach

Service approach Considered the least effective approach method Appropriate method to use when customer has already decided what to purchase

Merchandise approach Includes comment(s) or a question about the merchandise the customer is looking at or handling Appropriate to use if customer is actually handling or looking at specific merchandise Considered the most effective approach method Customers make a purchase approximately 63% of the time when a merchandise approach is used.

Determining Customers’ Needs and Wants Determine buying motives Observe customer type Use open-ended questions

Buying motives: A customer’s reasons for buying goods and services. Rational motives Emotional motives Patronage motives

Rational motives: Customer reasons for buying based on logical thinking and decision-making. Emotional motives: Customer reasons for buying based on feelings. Patronage motives: Reasons customers choose to shop at one store instead of another.

Types of customers Casual lookers: Customers who are killing time or simply browsing. Undecided customers: Customers who need an item but want more information before making a purchase. Decided customers: Customers who know exactly what they want and why, and prefer to make their purchase quickly.

Open-Ended Questions Cannot be answered with a “yes” or “no” Used to get more information from customers to help select appropriate merchandise to show

Merchandise Presentation Determine which product features and benefits are important to the customer. Translate features into benefits. Actively involve the customer in the presentation. Show no more than three items at once. Show medium-priced merchandise first. Exceptions are made to items 4 and 5 in the case of the decided customer who already knows what he/she wants to purchase.

Product features and benefits Product features: Physical characteristics of an item. Product benefits: Satisfactions customers derive from product features.

Translate features into benefits. Customers buy benefits, not specific features! Benefits change from customer to customer for the same features. The salesperson observes, listens, and questions to determine which benefit(s) to stress to customer. An individual customer may desire different features and benefits from time to time—even for the same product. Example: “The vertical stripes (feature) make you look taller (benefit).”

Handling Customer Objections Objections: Honest reasons a customer hesitates to buy. May be spoken or unspoken (hidden) May be logical or psychological May relate to the product, price, store, time, salesperson, or need May occur at any point in the sale Should be welcomed To handle an objection, listen, acknowledge, restate, and then answer the objection.

Techniques For Handling Customer Objections Boomerang Question technique Superior point Direct denial Demonstration Third party

Techniques For Handling Customer Objections Boomerang: A technique of handling objections in which the objection comes back to the customer as a selling point. Question technique: A technique of handling objections in which the customer is questioned in an attempt to learn more about the objection(s) raised. Superior Point: A technique of handling objections in which the salesperson acknowledges objections as valid, but offsets them with other features and benefits.

Techniques For Handling Customer Objections (cont.) Direct Denial: A technique of handling objections that provides proof and accurate information in answer to objections. Demonstration: A technique of handling an objection by showing one or more features of a good or service. Third Party: A technique of handling objections that uses a previous customer or another neutral person who can give a testimonial about the product.

Closing the Sale Getting a commitment from the customer to buy the merchandise. Look for Buying Signals Physical actions such as smiles or nods of agreement Comments that imply ownership such as “This jacket will go well with jeans and other casual pants.” Questions such as “Does this dress come in black?”

Closing the Sale (cont.) Trial Close: The salesperson’s initial attempt(s) to close the sale. Used to get an indication of what else needs to be done to close the sale. Example: Sales associate asks the customer, “Would you like to place the purchase on your store credit card?”

General Rules for Closing the Sale If you think the customer is ready to make a buying decision, stop talking about the product. When a customer is having difficulty making a buying decision, stop showing additional merchandise. Help a customer decide by summarizing the major features and benefits of a product. Don’t rush a customer into making a buying decision. Use words that indicate ownership, such as “you” and “your.” Use major objections that have been resolved to close the sale.

Techniques for Closing the Sale Which close: A method of closing the sale that encourages a customer to make a decision between two items. Remove unwanted items to bring the selection down to two. Review the benefits of each item. Ask the customer, “Which one do you prefer?”

Techniques for Closing the Sale (cont.) Standing room only close: The method of closing the sale that is used when a product is in short supply or when the price will be going up in the near future. Example: “This is the last pair of these shoes that we have in your size.”

Techniques for Closing the Sale (cont.) Direct close: A method of closing the sale in which the salesperson simply asks for the sale. Example: “Would you like to put this purchase on your charge?” Service close: A method of closing the sale that explains services that overcome obstacles or problems. Example: “May I gift wrap this for you?”

Suggestion Selling A method of increasing sales by encouraging the customer to add items to the original purchase. Used to help customer, not to force the customer into purchasing unnecessary or unwanted items Takes place after the customer commits to make the original purchase, but before the sale is entered into the register Requires knowledge of store’s products and customers’ needs

Suggestion Selling (cont.) Add-ons: Additional related merchandise items that create complete outfits. Trading up: Suggesting a substitute item that is higher priced, of better quality, or more economical for the customer than the item originally requested. “More-than-one” selling: A type of suggestion selling in which the salesperson offers more than one (multiples) of the same or similar item. Special offers: Additional items that can be obtained as a result of purchasing an item.

Checkout Procedures Enter the sales data into the cash register Computerized point-of-sale (POS) systems include price lookup (PLU). Registers compute discounts, subtotal, taxes, and total sale. Announce the amount due, take payment, and make change as necessary. Remove the merchandise from hangers, etc. and fold if necessary. Place the merchandise in a bag or box. Provide the customer with proof of payment.

Methods of Payment Cash Personal check Photo identification usually required Check verifying companies may be used to electronically approve and guarantee money or disapprove if customers’ account funds are insufficient.

Methods of Payment (cont.) Cards with magnetic strips Cards are processed electronically by swiping them through a machine that reads the magnetic strip and sends information over the phone lines to credit bureaus or financial institutions for approval. Customer is required to enter a personal identification number (PIN) or to sign the store copy of the transaction tape. Transactions are electronically approved or disapproved by the credit bureau or financial institution.

Methods of Payment (cont.) Charge/credit cards May be issued by the store or a financial institution. Salespeople encourage a customer to complete a charge application and open a store account. Charge customers spend four times more than other customers.

Methods of Payment (cont.) Debit cards Processed similar to a credit card but debits the customer’s checking account instead of creating a credit debt. Gift cards Electronically debited with each purchase until the card balance reaches zero. Additional amounts may be added to gift cards while still carrying a balance or when the balance reaches zero. A popular means of gift giving.

Deferred Payment Sales Layaway: A deferred purchase agreement in which the store sets aside the customer’s merchandise until the customer has fully paid for it. Customer pays a deposit and makes payments until the full price has been paid. If full payment has not been made by a preset deadline, the merchandise may be returned to stock and the deposit may or may not be refunded. C.O.D.: A “cash-on-delivery” sale in which payment is made to the delivery person when the merchandise is delivered.

Returns, Exchanges And Other Adjustments Return: Merchandise returned for a refund or credit on account. Exchange: A transaction in which previously purchased merchandise is returned and replaced by other merchandise.

Returns, Exchanges And Other Adjustments (cont.) Even exchange: An exchange transaction in which the replacement merchandise is the same price as the returned merchandise. Uneven exchange: An exchange transaction in which the replacement merchandise sells for more or less than the returned merchandise.

Returns, Exchanges And Other Adjustments (cont.) Exchanges (cont.) Allowance: Partial return of the retail price for merchandise the customer has kept. Usually given when there is a defect in the merchandise Often given as a percent off the sales price or a specific dollar amount off the sales price Rain check: A certificate that entitles the customer to buy an out-of-stock advertised special at a later time at the same advertised price.

Thanking and Reassuring the Customer Reinforce customer’s buying decision with an approving statement and a sincere “Thank you.” Use the customer’s name. Shake hands when appropriate. Give personal business card to the customer when appropriate.

Thanking and Reassuring the Customer (cont.) Bonding (relationship selling): The process of salespeople doing everything possible to strengthen relationships with customers. Develops loyal, repeat customers Increases sales Examples: Follow-up calls to ensure customer is pleased Contact with customers when products they typically purchase come in or are on sale Survey of customers’ needs/wants

Sales Follow-Up Follow-up: Contact with the customer after the sale has been made. Ensures customer satisfaction and creates goodwill Follow through on commitments made during the sale. Alterations Delivery Special orders Send thank you notes or call.

Client File A book, card, or electronic file in which customers’ names, addresses, phone numbers, sizes, important occasions, color preferences, and previous purchases are recorded. Helps salespeople manage customer information Should be updated with each purchase