Ways to increase the likelihood of making a Sale 2.09: Sales Process Ways to increase the likelihood of making a Sale

Selling Selling is the process of matching a customer needs and wants to the features and benefits of a product or service. The salesperson is the individual who gathers information about the customer Advises the customer about which products best suit their needs.

The Sales Process: Pre-Approach Approach Determining Customers Needs Presenting Merchandise Handling Objections Closing the Sale Suggestion Selling Building Relationships Selling is a process http://www.youtube.com/watch?v=bH4zIyGi6mk&NR=1n

Preparing for the Sale Preapproach is getting ready for the face-to-face encounter in a selling situation. Everything you do to prepare yourself to sell a product Approach is the actual face-to-face meeting.

Pre-approach: Product Knowledge Sources of Product Information: Product brochures/manuals Experienced Salesman The product Company policies and procedures Newspapers and trade journals The internet Feature/Benefits Charts

Pre-Approach: Customer Knowledge There are three types of customers Decided Customer knows what they want to buy Can be identified by the way they walk, expression in their eyes / face, & tone of voice Undecided Customer doesn’t know what they want to buy Salesperson helps them make up their mind Just-looking (Casual Looker) Most difficult customer to sell to Can be decided or undecided but don’t want salesperson assistance

The Sales Process: Pre-Approach Approach Determining Customers Needs Presenting Merchandise Handling Objections Closing the Sale Suggestion Selling Building Relationships Selling is a process http://www.youtube.com/watch?v=bH4zIyGi6mk&NR=1n

Step 1: Sales Approach A salesperson can make or break a sale in the first few minutes with a customer Initial approach is critical First face-to-face contact you have with the customer Customer passes judgment Will set the tone for the entire sales process Need to be sincere and enthusiastic Display good eye contact Approach needs to be timed wisely

Purposes of the Approach To begin conversation To establish a relationship with the customer Focus on the merchandise    Approach.  This step takes place when the customer is greeted.  It is very important to earn the trust of the customer right away; look the customer in the eye, smile at them, and greet them.  A relationship between the salesperson and the customer begins during this step.

The Approach in Retail Selling If customer is in a hurry, approach them quickly. If customer is undecided, let them look around. Encourage customers to ask questions.

Types of Sales Approaches Service Approach Greeting Approach Merchandise Approach Combination Approach

Sales Approach #1: Service Approach The salesperson will ask the customer if they need assistance “May I help you with something?” “How may I help you?” Salesperson should ask an open ended question that encourages the customer to tell you what they want. Used when customer is in a hurry or if you are an order taker for a routine purchase

Sales Approach #2: Greeting Approach Simply welcome a customer to the store Can be formal or informal “Good Morning” “Good Afternoon” If you know the customers name, use it Establishes a positive atmosphere and opens the lines of communication. Be Upbeat & Friendly

Sales Approach #3: Merchandise Approach The salesperson makes a comment or asks a question about a product in which the customer is interested. Can only be used when a customer is stopped and looking at a specific product Ex: “Is that the size you need?” Ex: “Are you interested in a specific color?” Ex: “That video game is rated E.” Often leads to you explaining features and benefits of a product

Sales Approach #4: Combination Approach Combination Approach will combine at least two of the other sales approaches “Welcome to Hollister, we have a sale on all jeans today.” “That shirt enhances your eyes, would you like to try it on?”

Store Greeters Greeting the Customer Walmart Meijer Edward: http://www.youtube.com/watch?v=34ghKM42Cg0 Military: http://www.youtube.com/watch?v=P80ds67zw1I Meijer http://youtu.be/rgCWyRYZZAY What two things should do when greeting a customer: http://www.youtube.com/watch?v=RHkz_Cf4KL0

Which Approach….

Step 2: Determining Customer’s Needs Focus should be to determine the CUSTOMER’S NEEDS as EARLY in the sales process as possible Ask open-ended questions Determine products that would satisfy customer needs Determine the customer’s buying motive

Determine Customer Needs Method #1 Observing Look for non-verbal cues Is the customer holding the merchandise, looking around like they need help, etc… Looking for the customer to be interested in product Mystery Shopper Video http://www.youtube.com/watch?v=FeQ3WDhF6wo http://www.youtube.com/watch?v=xSsszDVuGcs

Determine Customer Needs Method #2: Listening Give the customer your undivided attention, don’t interrupt, & provide feedback Listen for cues to wants & needs http://www.youtube.com/watch?v=OrxvmM5aUzY

How to determine needs cont. Method #3: Questioning Ask open-ended questions to encourage customers to talk Ask clarifying questions to make sure you understand customers’ needs Don’t ask too many questions in a row Don’t ask embarrassing questions

Customer Buying Motives Emotional: Buying based on feelings Rational: Buying based on logic or reasoning Patronage: A preference for a store or brand Appearance of store Proximity of store Preference of brand; loyal customer (a) Patronage emotional motives- Patronage emotional motives are based on his wish or emotion or pulsive attitude. His decision to support a store is not the outcome of reasoning and judgment. His selection is founded on the casual factors and these are (1) Appearance of the store (2) Recommendation of friends and relatives (3) Imitation (4) Prestige (5) Habit (b) Patronage rational motive All customers are not emotional in supporting a particular store. They are rational. They think and judge before extending loyality to a particular store. The motives of this kind can be (1) Proximity (2) Widest assortment (3) Credit facilities (4) Treatment (5) Services offered

Buying Motive Definition Rational A buying motive that is based off of sound judgment. Occurs from factors such as the economy, utility, comfort, convenience, durability, & security. Emotional A buying motive based on feelings or passions. Purchasing something based on feelings. Pride, Vanity, Jealousy, Fashion, Habits, Comfort, Love, Praise, Curiosity, Fear, Romance Patronage Consumer has a certain reason to support a store or a specific brand. Superior service, product selection, better sales force

Step 2: Determine Customer Needs

The Sales Process: Pre-Approach Approach Determining Customers Needs Presenting Merchandise Handling Objections Closing the Sale Suggestion Selling Building Relationships

Step 3: Product Presentation Which Products to Show Determine customer needs . . . Select products that match those needs. What Price Range to offer Avoid focusing on the price at the start Begin by showing a medium priced product Wait for customer feedback

Product Presentation How many products to show What to say Show no more than three products at a time to avoid overwhelming the customer What to say Talk about product’s features and benefits. Avoid jargon or using unclear or vague words Ex: nice, pretty, & fine Don’t use slang or double meaning phrases Ex: “You look cool in that suit”

How can you make your presentation come alive? Displaying and Handling the Product Creatively display Handle product with respect Demonstrating Demonstrate how product is used Demonstrate features Using Sales Aids Use aids when impractical to demonstrate actual product Samples, articles, graphs, charts, testimonies, warranty, etc…. Involving the Customer If possible, get customer physically involved (hold it, smell it, taste it, use it., etc) Have them use try on the shoes, swing the golf clubs, etc…

The Sales Process: Pre-Approach Approach Determining Customers Needs Presenting Merchandise Handling Objections Closing the Sale Suggestion Selling Building Relationships

Objection What is an objection? Concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase. Should be viewed positively opportunity to explain more

Excuses What are Excuses? Insincere reasons for not buying Commonly used when they are not in the mood to buy a product

Five Common Objections Need “Do I really need this product?” Product Concerns with color, size, style Source Past experience with product or brand “My mother really did not like GE appliances. She said that they are poor quality.” Price More than the customer wants to spend Time “I think I will just wait until next month when the product is on sale”

Methods for Handling Objections Substitution Boomerang Question Superior Point Denial Demonstration Third Party

Substitution Salesman listens to the objection, and finds a different product to replace or “substitute” for the first product. Ex: “If I can find the product you want in the color and size you need, would you purchase the product?”

Boomerang The objection comes back to the customer as a selling point Ex. If a customer states, “I can’t believe this concert ticket is so expensive.” The salesperson’s response: ”I understand, but the view from those seats will be excellent.”

Question The customer is questioned in an attempt to learn more about the objections raised Ex. “Why don’t you want to buy running shoes, especially if you are starting to get more involved in 5k events?”

Superior Point The salesperson acknowledges the objection as valid, but offsets them with other features and benefits Ex. If a customer states, “I went to a Charlotte Checkers game last week and the tickets were $10 cheaper than the Hurricanes tickets.” The salesperson’s response might be, “Yes, that would be correct, but last year the Carolina Hurricanes were in the Stanley Cup Finals and the Checkers are not part of the National Hockey League.”

Denial Provide proof and accurate information when answering objections Best used when the customer has wrong information or when the objection is in the form of a question Ex. If a customer states, “I really don’t want to pay a $150 joining fee in advance.” The salesperson’s response might be, “You don’t have to pay in advance, we can spread the joining fee over a six month period if you like.”

Demonstration Answering objection by showing one or more features “Seeing is believing”

Third Party Uses a previous customer or another neutral person who can give a testimonial about the product Can be verbal or non-verbal (letter) Ex. “The Carolina Hurricanes have always purchased their team equipment from us. As a matter of fact, let me show you a letter we just received from their equipment manager.”

The Sales Process: Pre-Approach Approach Determining Customers Needs Presenting Merchandise Handling Objections Closing the Sale Suggestion Selling Building Relationships

Sales Process Closing the Sale Obtaining a positive agreement from the customer to BUY!

Timing The Close Buying Signals are the things a customer does to indicate readiness to buy Facial expressions Body Language Trying on Clothes Holding merchandise

General Rules for Closing A Sale Recognize closing opportunities Help customers make a decision Stop showing additional merchandise Creates confusion Narrow selection Explain advantages or disadvantages of item being considered Create an ownership mentality Don’t talk too much or rush the customer

Closing the Sale As soon as you recognize a buying signal, attempt to close the sale There are multiple ways to close a sale Which Standing Room-Only Direct Service

Closing the Sale Which Close: encourages a customer to make a decision between two items. Review benefits of each item and ask….. “Which one do you prefer? The red or the blue one?”

Closing the Sale Standing-Room-Only “SRO” : When a product is in short supply or when price will be going up “I’m sorry, but I can’t promise that I can make this same offer tomorrow”

Closing The Sale DIRECT Close: Directly ask for the sale Used when buying signals are very strong “Can I assume that we’re ready to discuss the details of your order.” “Would you like to pay with a credit card or cash?”

Closing The Sale SERVICE Close Explain services that overcome obstacles Gift wrapping Return policy Warranties Guarantees Terms of the Sale

Closing the Sale Suggestion Selling: Selling additional goods or services to the customer Benefits the company, customer, & employee Occurs after the customer has made a commitment to buy, but before payment is made. Don’t load customer with unneeded items

Closing the Sale Ways to suggestive sell.... Make the suggestion definite Don’t ask, “Will this be all?” Instead say, “This oil is recommended by the manufacturer.” Show the item you are suggesting Put complimentary items near each other “This purse matches your shoes perfectly.”

The Sales Process: Pre-Approach Approach Determining Customers Needs Presenting Merchandise Handling Objections Closing the Sale Suggestion Selling Building Relationships

Suggestion Selling Cross Selling Offer Related Merchandise Person buys a golf club, suggest golf balls Buys shoes, suggest socks Up-Selling Recommend larger quantities “If you buy 2, you get 1 free” “Would you like to supersize that meal?” Special Sales Opportunities Point out other sales that the customer may be interested in Buying pants, mention sale on shoes

The Sales Process: Pre-Approach Approach Determining Customers Needs Presenting Merchandise Handling Objections Closing the Sale Suggestion Selling Building Relationships

Relationship Marketing Customer Relationship Marketing (CRM): After Sale Activities to develop customer relationships Nurture customer relationship Keep customers informed about sales and news Goal is to obtain customer loyalty

CRM Follow-up Customer service Keeping a client file Ensure satisfaction, call, card, email Common on large purchases or online shopping Customer service Handle inquiries and complaints, keep customers satisfies Keeping a client file Useful info. for future reference Evaluate sales efforts What went well?, What can be improved?

The Sales Process: Pre-Approach Approach Determining Customers Needs Presenting Merchandise Handling Objections Closing the Sale Suggestion Selling Building Relationships

Kid Salesman Ticket out the door: What type of greeting did he use? What method was used to determine customer needs? What closing technique best describes the kid salesman’s approach to closing the sale? http://www.youtube.com/watch?v=hxCHEJSHOBE