Chapter 15 Closing the Sale

Customer Buying Signals 15.1 After finishing this section you will know: The buying signals that a customer sends The rules for closing a sale The specialized methods of closing a sale

Closing the Sale Closing the sale- obtaining positive agreement from the customer to buy

Timing the Close Timing the close Close the sale when your customer is ready to buy Some are ready to buy sooner; you must be flexible The key to closing the sale is customer readiness

Buying Signals Buying signals- the things customers do or say to indicate a readiness to buy Buying signals include: facial expressions, body language, and comments

Buying Signals Facial expression- a customer holds a product while smiling Body language- a customer takes an item off the hanger and drapes it over their arm Comments- “This is exactly what I was looking for.”

Trial Close Trial close- an initial effort to close a sale Trial closes are beneficial for 2 reasons: Even if the close doesn’t work, you’ll learn from the attempt If the trial does work, you’ll reach your goal of closing the sale

General Rules for Closing the Sale Professional salespeople have the following traits in common: Radiate enthusiasm throughout the sales process Sincere and confident Truly want to help solve their customer’s problems

General Rules for Closing the Sale Enjoy their profession Watch for early buying signals and close A.S.A.P. Constantly practice sale-closing techniques

Four Guidelines to Follow Recognize closing opportunities- you should always use major objections that have been resolved to close the sale You can also use effective product presentations to excite customers; when customer interest is high, attempt the close

Four Guidelines to Follow Help customers make a decision- when a customer is having difficulty deciding, stop showing additional merchandise Narrow the selection of items by removing those things that are no longer of interest Ask questions such as: “Which one of these do you like the least?” Once you get down to 2 items, you can help the customer decide by summarizing features/benefits or advantages/disadvantages of the products

Four Guidelines to Follow Create an ownership mentality- use words that indicate ownership such as you and your Example: “You’ll enjoy using this camera on your vacation.” If you get positive feedback from your customer throughout the sales process: the same positive frame of mind will help create a natural close.

Four Guidelines to Follow Don’t talk too much and don’t rush a customer- if you think a customer is ready to make a buying decision, stop talking about the product Be patient, courteous, polite, helpful, and remember your primary interest is customer satisfaction

Four Specialized Methods for Closing the Sale Which close- encourages the customer to make a decision between two items Example: “Which one do you prefer?”

Four Specialized Methods for Closing the Sale Standing room only close- used when a product is in short supply or when the price will be going up in the near future Only use this close when the situation honestly calls for it. Example: “I’m sorry, but I can’t promise that I’ll be able to make you this same offer later.”

Four Specialized Methods for Closing the Sale Direct close- you ask for the sale Use this method when the buying signal is very strong Example: “Can I assume that we’re ready to talk about the details of your order?”

Four Specialized Methods for Closing the Sale Service close- explains services that overcome obstacles or problems This includes gift wrapping, return policy, and special sales arrangements

Failure to Close Don’t despair if your initial attempts to close a sale are unsuccessful In a retail setting: invite the customer to shop in your store again In a B-to-B setting: the sale is rarely made on the first call Could negotiate large accounts for over a year before closing the sale

Failure to Close Keep in mind: a customer who doesn’t make a purchase is still a prospect for future business

Failure to Close In a B-to-B selling situation: ask if you may call again Sometimes buyers feel guilty for buying from one salesperson over another if they have already established a relationship with that person; this could lead to consideration for future purchases

Failure to Close If you established a good rapport with a customer: you can ask them why they chose to buy from another seller over yourself

Failure to Close It is important to smile and act friendly even if you don’t make the sale Sometimes buyers are convinced by a presentation, but not ready to buy Salespeople are made not born. Success at selling is the result of training, apprenticeship, and experience

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Effective Selling 15.2 After finishing this section, you will know: Why suggestion selling is important The rules for effective suggestion selling Specialized suggestion selling methods The concept of relationship marketing and how it is related to the sales process

Suggestion Selling Suggestion selling- selling additional goods or services to the customer When selling a digital camera, sell a memory card or batteries to go along with the camera

Benefits of Suggestion Selling Suggestion selling benefits: The salesperson by: customers wanting to do business with you again The customer because: they are more pleased with the original purchase The company because: the time and cost involved in suggestion selling is less than the cost of making the original sale Example: At McDonalds: “Would you like fries with that?”

Rules for Suggestion Selling Do suggestion selling after the customer has made a commitment to buy, but before payment is made or the order written- some products can be introduced before the close if those accessories are a major benefit Examples: extended warranties, boot protector

Rules for Suggestion Selling Make your recommendation from the customer’s point of view and give at least one reason for your suggestion- “If you want to use your camera immediately, you might want to buy a memory card or batteries for it.”

Rules for Suggestion Selling Make the suggestion definite- don’t ask; “Will that be all?” say; “This oil is recommended by the manufacturer for this engine.” Show an item you are suggesting- the item might sell itself Example: “These gloves and scarf match your jacket perfectly.”

Rules for Suggestion Selling Make the suggestion positive- “This sweater really brings out your eyes beautifully.”

3 Suggestion Selling Methods Offering related merchandise- a good or service that would increase the ease or enjoyment of the customer’s original purchase The easiest and most effective suggestion selling method

3 Suggestion Selling Methods Recommending larger quantities- works best in retail settings when the customer is saving time or money by buying the larger quantity Example: “1 pair of socks costs $4, but you can get 3 pairs for $10.”

3 Suggestion Selling Methods Calling attention to special sales opportunities- salespeople are obligated to inform customers of special sales even if they don’t relate to the original purchase Examples-retail: “…” Examples-B-to-B: show new items

Relationship Marketing Relationship marketing- strategies businesses use to stay close to their customers After sale activities are used to develop and nurture customer relationships Think of after-sale activities as part of an ongoing dialog with customers in preparation for future sales

Taking Payment/Taking the Order Take payments or orders with courtesy Complete paperwork quickly Don’t irritate the customer at this stage in the sale Annoyed customers may say; “Forget the order, I don’t want it anymore.”

Departure Before you leave the customer or the customer leaves you: reassure them of their purchase Always thank your customers, even if they don’t buy

Follow-Up Some follow-up ideas: Call the shipping department to confirm delivery date Check to make sure that the delivery occurs as promised Call the customer to explain any delays Phone a week or two after the purchase to see if the customer is happy Send a thank-you note with your business card

Evaluation Some businesses: send questionnaires or call customers to check on how well they were treated The results are passed on to salespeople so they can improve their techniques

Evaluation You should conduct your own evaluation by asking questions of your self such as: What were the strong points of your presentation? What did you do wrong? How could you have improved your performance?

Assignment Page 268 Reviewing Key Terms # 1-5