Steps of the Sales Process

Steps of the Sales Process
As a salesperson, you will need to prepare for the sale by learning about the industry and the products you will be selling. In specific sales situations, you may also need to find the customers. The tools and techniques for accomplishing these tasks are covered in this lesson.

Handling objections Closing the sale Suggestion selling Reassuring/ follow-up Pre-approach Approach Determining needs Product Presentation There are 8 basic steps to the sales process. Depending on your selling situation and the type of product, each step may be shorter or longer. However, it is important that you understand the role that each step plays in the overall success of your sale. While following the steps does not ensure that your sale will be successful, you have a better chance of servicing the customer by using these steps, which, in turn, improves your chances of a successful sale.

Pre-Approach Retail Product information Displays neat Products stocked
Promos visible Merchandise tagged Learn about the merchandise and the prices of the The Pre-approach involves preparing for the sale. In both retail (consumer) and industrial or business-to-business sales, the pre-approach is done a little differently. Let’s look at the pre-approach in the retail environment first. SHOW LIST. Preparation at the retail level focuses on getting the store ready for the customer to come in and buy something. Usually this is done before the store opens in the morning. But sometimes it is done during the closing process at night. Throughout the day, during “down times” the pre-approach step is used as you tidy up the store after an influx of customers. You are “preparing” for the next wave of customers. Examples of the Pre-approach is making sure that the merchandise is stocked on the shelves, the products are tagged according to store policy, the displays are neat with all promotionals (e.g. sale signs) visible. This is also a good time for you, as the salesperson, to learn more about the products. Read labels and tags to become familiar with products so you are prepared to answer customer questions and to make suggestions.

Pre-Approach Industrial Sales Past sales records.
Qualify new customers. Inquire with other salespeople who are with non-competing companies. Personal aspects of the customer. Pre-visit phone call. Make an appointment to visit the prospect. In industrial sales, the pre-approach focuses on the preparation of the sales person rather than the store. Many things can be done to prepare, but some of the more common are listed here. Because in industrial sales, the sales person goes TO the customer, appointments should be made. It is during the appointment that it may be possible to find out a little about the customer. Before the visit to the customer, the sales person has the opportunity to learn more. If the customer is a current customer, then the sales person can review the customer’s past sales to see what they generally buy. If the customer is a new prospect, the sales person can still get information by qualifying the customer on the phone or by . Qualifying is a term that means determining if the customer is a viable prospect. In other words, can your product satisfy the needs they have, and can they afford it? The sales person can also talk to other sales people in non-competing companies to see if they have called on the customer for something else. This is one reason why networking within your industry (sales) is important. Keeping in touch with other sales people can help you in your business. QUESTION: Why would you want to find out personal aspects of the customer? What are some examples? SHARE RESPONSES. Their hobbies, interests, family, etc. If you don’t find out about this ahead of time, you may get an idea when you visit their office (pictures, e.g.)

Initial contact with customer
Approach Once the store and/or the sales person is prepared for the customer, it is time to make the first contact with your customer. This is called the “approach”. In the retail sales setting, the customer usually comes to you. In industrial sales, the sales person usually goes to the customer. Let’s look first at the approach in the retail sales environment. Initial contact with customer

The Approach in Retail Sales
Service Approach Method “May I help you” Appropriate when the customer is in a hurry or you are an order taker. Ineffective in most situations; you lose control of the sales situation. There are 3 basic ways to approach a customer in the retail setting. In the Service approach, you simply are offering your services. While “may I help you” is overdone, there are other things you can say (e.g. may I put those clothes in the fitting room for you? Or “Are you finding everything ok?) This approach works best when the customer is in a hurry, or if your job is simply to take orders. This approach is ineffective in most situations, because you lose control of the sales situation. You give the customer the opportunity to turn away your offer for help – in essence, to say “NO”.

Greeting Approach Method “Good afternoon, Mr. Wright” or an appropriate personal comment. Begins conversation and establishes a positive rapport. Does not focus on the merchandise. The 2nd approach is the Greeting approach. You are simply acknowledging the customer is present. A personal comment such as ‘good morning’, or ‘welcome to our store’ are examples of the greeting approach. This approach is appropriate to start a conversation and to build a positive rapport with the customer. What stores make it a point to always say welcome or hello when you walk in? (Moe’s, Wal-Mart greeters). In this approach the salesperson does not focus on the merchandise, merely on the fact that customer exists.

Merchandise Approach Method Salesperson makes a comment or asks questions about a product that the customer is looking at. Ask questions about the item. Immediately focuses attention on the merchandise. The Merchandise approach is the most versatile approach and the usually the most effective. In this approach, the salesperson makes a comment about the merchandise. Of course it helps if the customer is already looking at something. This opens the opportunity for the sales person to comment on the product. E.g. ‘those shoes also come in black, taupe and navy – may I get your size for you?” combines the merchandise and service approach. This is the best type of approach if you can use it because it starts a conversation with the customer, which is an ice-breaker to continue to sales process. Now that we’ve examined the retail approaches, let’s look at the approach in the industrial sales environment.

The Approach in Industrial Sales
Arrive early Introduce yourself, smile, make eye contact and shake hands. Small talk to build a relationship with the customer. Comment on important things to keep the customer interested. The approach in industrial sales is usually performed at the customer’s place of business. You should have already made an appointment during the pre-approach step, so be sure to arrive early so you’re prepared. If you’re too early though, wait in your car until about 5-10 minutes before the appointment. When meeting the customer, introduce yourself and shake hands. A firm handshake is important, but also be sure to make eye contact and smile. You want the customer to feel that you really want to meet him or her. Note: In a business environment, it’s OK for the male sales person to extend his hand to shake a female customer’s hand. But in a social setting, a man should always wait until the woman extends her hand. Making small talk is a way to build a relationship. Before getting down to business (unless the customer states that they are very busy) comment on the office décor. This is a good time to look around the office to find out what the customer is about: are there pictures of family or activities? Are there trophies or plaques indicating a passion the customer has? It’s ok to point these out. Perhaps you already know these things from your pre-approach. Of course, be tactful, and don’t get too nosy. Keep it light.

Determining Needs Observing (non-verbal communication) Listening
Eye contact Feedback Empathy putting yourself in someone else’s place Questioning Encourage communication Regain customer’s attention Now is the time to really start finding out how you can help that customer make a satisfying buying decision. In other words – SELL. Before going any further, a sales person must determine what the customer’s needs are. This brings us to step 4 of the sales process: Determining Needs. Before the sales person can progress any further, he/she must determine what it is the customer is looking for or in need of. Unfortunately, not all customers know the answer to this. An experienced sales person has learned how to determine the customer’s needs using a few strategies. SHOW FIRST BULLET: Observe the customer. (kids with her?/wedding ring?/style of clothes? Age?) These observations may give an indication as to what the person is interested in (or not interested in) and how much time they may have to shop. SHOW 2ND BULLETS: Listen to the customer – using good communication skills, such as making eye contact and giving feedback to the customer are important to help establish a relationship with the customer. Being able to empathize with the customer, or putting yourself in the customer’s place is an excellent skill that successful salespeople use. SHOW 3RD BULLET: Don’t be afraid to ask Questions – Using questions encourages communication and helps to keep the customer’s attention on the sale.

Product Presentation Product Selection What to do/say?
No more than 3 at one time Mid-price range to start What to do/say? Descriptive adjectives Display product Demonstrate product Involve customer (hands-on) Sales aids (samples, articles, charts, testimonials) While you’re determining the customer’s needs through the previous step, you should be thinking about what products would fit these needs. What products are you going to suggest or present to your customer? Determining needs and production presentation are almost simultaneous. While there is no magic formula to selecting products to show your customers, there are a couple of “rules of thumb” that might help the process flow more smoothly. SHOW BULLET: Show no more than 3 selections at a time. Why? don’t overwhelm the customer. For some products, security is a big issue, and only one product should be shown at a time (fine jewelry, electronics); SHOW BULLET: Start with a mid-price range. Why? It gives the salesperson room to move up or down. This is an especially good strategy for a customer who has no idea what they want to spend. SHOW BULLET: Use descriptive adjectives. Don’t just say the rug will look good in your home. State that the rug will make your family feel warm on a cold morning. SHOW BULLET: Display the product. Don’t just point to it in the case. Take it out. SHOW BULLET: Demonstrate the product. Show how to use it. Have a camera ready to take a picture so the customer can see the finished product. Turn on the vacuum cleaner or TV. SHOW BULLET: Involve the customer. Why do car dealers want to take you for a test drive? To let you use the product, to give ownership. SHOW BULLET: Sales aids such as samples, articles about the product, charts and testimonials are good sales aids to use. Don’t forget your feature/benefit charts too. Also, depending on your customer, use terminology that he/she can understand. Don’t be too technical unless you KNOW you’re talking to a technical person about the product. Use layman’s terms. This is where the feature-benefit chart comes in handy. GOOD PLACE TO STOP.

Handling Customer Questions and Objections
STOP HERE. Tomorrow we will examine handling customer questions and objections. DAY 2: In handling customer questions and objections, nothing makes up for experience. In this lesson we will look at various methods used to handle customer objections, but keep in mind that even the most experienced sales person does not make every sale.

Objection or Excuse? Objections - Honest reasons a customer has for not making a purchase. Excuses - Insincere reasons for not making a purchase. Before handling customer objections, the sales person must determine if the customer is having an objection to buying the product or is just making an excuse. SHOW FIRST BULLET: Objections are HONEST reasons the customer may have for not making a purchase. Perhaps the shirt doesn’t fit well, or the price is a little high. An honest objection can usually be handled to the satisfaction of the customer if the sales person is prepared. SHOW 2ND BULLET: Excuses are insincere reasons for the customer not making a purchase. The most common excuse is “I’m just looking” when you approach the customer. Don’t despair. If the customer truly wants to buy something, your time will come to help them. If they’re not interested in making a purchase, there’s nothing you can do about it.

Objections! A welcomed thing?
Objections give you an opportunity to present more information about the product to the customer. Remember – don’t be afraid of objections. They are actually opportunities for the sales person to find out more about what the customer needs, and to give the customer more information about the product. Objections allow the sale to progress, and for the relationship to develop.

Common Objections Need - Is the desired product a want or a need?
Product - Concern about construction, quality, size, appearance, or style. Source - Where the product is made, sold from, etc.... Most objections are based on one or more “buying decisions”. This means that when customers want to buy something, they subconsciously consider their need, the product itself, where the product is bought, the price of the product and their ability to pay or buy it now. These buying decisions guide the customer when making an objection. Let’s look at the most common types of objections according to the 5 buying decisions. SHOW 1ST BULLET. The ‘need’ objection stems from the customer being unsure about whether they need the product or not. Perhaps they want it, but do they need it? Usually they need something, but they’re just not sure if they product they’re looking at is it. SHOW 2ND BULLET. The ‘product’ objection reflects a concern about how the product is made, its quality, the size, appearance, color or style. Anything about the product itself. SHOW 3RD BULLET. The ‘source’ objection refers to where the product is made or sold. This could be the country in which it’s made, the manufacturer or even the store they’re in right now. GO TO NEXT SLIDE.

Common Objections Price - Is it truly within the customer’s price range? Time - Is the customer in the position to purchase the product now? SHOW 1ST BULLET. The ‘price’ objection focuses on the price of the product. You will see soon why the rule of thumb about starting in a mid-range price is so important. SHOW 2ND BULLET. The ‘time’ objection is the customer’s concern about their ability to buy the product now. Now, if you can categorize a question or concern into one of these 5 buying decisions, then you know you have a true objection. If you can’t, then it’s just an excuse, and there’s nothing you can do about it. Before we look at strategies to answer these objections, let’s look at some other important communication skills needed in this step.

Handling Objections Listen - Let the customer talk!
Acknowledge - Show you care about the customer. Restate - Paraphrase the objection in a different way to show you understand. Answer - Use the objection to further define the customer’s need. Just like when you were determining the needs of the customer, and you observed, listened and questioned, you should also use good communication skills in handling customer objections. SHOW 1ST BULLET. Again – LISTEN. This cannot be emphasized enough. Don’t just hear the customer talk, really listen to what they’re saying. SHOW 2ND BULLET. Acknowledge their objection. Don’t blow it off! Make sure they know that you understand and CARE about their objection. SHOW 3RD BULLET. Restate their objection to make sure you understand. Saying the same thing, but in a different way lets the customer know that you listened, and that you understand their objection. SHOW 4TH BULLET. Answer the objection. Again, don’t blow it off as unimportant. A good sales person has options to help overcome the objection to help the customer find what they need and want. HAND OUT ‘OBJECTIONS AND QUESTIONS’ WORKSHEET. STOP HERE.

Methods of Handling Objections
Boomerang The objection comes back to the customer as a selling point. Do not sound like you are trying to outwit the customer. Use a friendly, helpful tone of voice. Once you have determined the objection, you can use a variety of methods to handle the objection. SHOW BULLETS. The first method is the boomerang method. As the name implies, the sales person returns the objection to the customer, making it a good selling point. Be sure to use a friendly, helpful tone; don’t use one that is condescending. E.g. if the customer states that the color appears to be loud, don’t say ‘duh – that’s the new fashion color’. Instead, you could gently tell them that many of the manufacturers are using this color because it is making a big fashion statement this season.

Question To learn more about the objections raised Show courtesy and respect The second method for handling objections is the question method. This method allows the sales person to find out more about the objection or to find out more information about the customer’s needs. You should always ask without sounding frustrated with the customer. E.g. if the customer says that a camera is too hard to use, don’t say ‘how could it be hard to use – a child could operate it!’. Instead, ask the customer what kind of camera they’re used to using, so you can understand their level of technical skill. This will help guide you in finding a better fit for them.

Superior Point Acknowledge the objection yet offset them with other features and benefits The customer decides between the different features Gives additional reasons for buying The 3rd method for handling objections is the Superior point method. In this method, you acknowledge the customer’s objection, but offset the objection with other features and benefits of the product. Then the customer is in the position to decide between the different features, and it gives the customer additional reasons for buying the product. E.g. if the customer objects that he/she doesn’t see a lot of pockets on the jacket, you can agree that there aren’t many on the OUTSIDE, and then show the customer all of the pockets on the inside (for safety reasons, of course!).

Direct Denial Used when the customer has misinformation Back up the negative reply with proof and accurate facts. The 4th method of handling objections is the direct denial. You must be careful with this method. When responding to the objection, you MUST be sure of your facts, and you must be able to back up your response with proof. E.g. if a customer states that he heard a safety rating for a car seat was not good, but you know it is (he may be confusing it with another brand), you can say, “actually this brand has one of the highest ratings. Let me show you the information in Consumer Reports’ (remember your sales aids).

Demonstration Illustrating one or more features of a good or service. “Seeing is believing” The 5th method of handling objections is the demonstration method. This is where you don’t just respond to the customer’s objection, but you show them. If you haven’t done so in the presentation step, you should demonstrate the feature that they’re having an objection about. E.g. if a customer says that they’re afraid the speakers on the TV won’t be clear, turn the TV on, turn up the volume and let them hear for themselves. Compare to other TV’s for contrast, if necessary.

Third Party Using a previous customer or a neutral person who can talk about the product. The last method of handling objections is the third party method. This is when you have a neutral 3rd party or a customer talk about the product. E.g. if there is a regular customer in the store who has used the product in question, introduce him to the customer and have him tell the customer about the product. Sometimes another sales person may be able to give some more insight about the product to the customer. Hand out Handling Objections chart for students to complete. Review as a class. OR Review following slide.

Objection Category Response Method
I don’t need another coat I can’t wear that to work The last time I ordered something from here it took 4 weeks to deliver. This is too expensive. I don’t get paid until next week. Have students complete this chart. Then share responses/methods with class.

Closing the Sale and Following Up
STOP HERE. Tomorrow we will finish learning about the steps of the sales process, learning about how to close a sale and what to do after the sale. Day 4: Closing the sale means getting the customer to agree to buy the product. It does not mean ringing up the sale. That comes later.

Recognizing Customer Buying Signals
Things a customer will do or say to indicate a readiness to buy. Included: facial expressions, actions, and comments. Attempt a trial close, an initial effort to close the sale. Before you can close a sale, you must learn to recognize customer buying signals. These are things that the customer does or says to indicate that the customer is ready to buy. These can include facial expressions, such as smiling, actions, such as moving toward the cash register, and comments. Once you have identified a buying signal, you should attempt a trial close, which is the initial effort to close the sale – to get positive agreement from the customer that they want to buy. There are several methods a sales person can use to close the sale. Let’s look at these methods.

Specialized Methods for Closing the Sale
‘Which’ Close Encourages a customer to make a decision between two items. The ‘which’ close means just that. You can ask the customer ‘which’ of the items they would like to buy. By asking the customer to decide between two or more items, it encourages the customer to make a decision.

Standing Room Only Close Used when the product is in short supply or when the price will be going up in the near future. Used infrequently because it can be perceived as high pressure tactic. The Standing room Only Close is used when the product is in short supply or if the price is going up soon. You should use this only when the situation is genuine. You don’t want to lie to the customer, telling them, e.g., that the sale is going off today, when in reality it is going on for the week. Also, don’t tell them it’s the last one when you know it isn’t. You don’t want to use high pressure sales b/c the customer may find out, and you may lose a customer for life.

Direct Close You (the salesperson) asks for the sale. Ask questions about which specific product the customer would like to purchase or ask how the customer would like to pay for the purchase. The direct close is when the sales person directly asks the customer for the sale by making assumptive statements or questions. E.g. you could say ‘let me ring that up for you’ or ‘how would you like to pay for that’ or ‘when can I set up delivery to your home?’. This is another method that helps the customer make that decision to buy.

Service Close Explains services that overcome obstacles or problems. Examples: Special method of payment, return policies The service close focuses on services or policies to help the customer see that you have finished your presentation and it’s time to buy. You can talk about payment plans, the return policy or services such as gift-wrap or delivery. Use the services offered by your company to guide you.

Attempt to sell additional goods or services to a customer
Suggestion Selling Once you have closed the sale, the sales process is over, right? Wrong! SHOW SLIDE. You want to use suggestion selling, also called up-selling. This is when you attempt to sell additional goods or services to the customer to help their purchase be more satisfying. In this example, you would want to suggest the sale of batteries to go with the camera you just sold the customer. Suggestion selling can result in a happier customer when they get home. Let’s look at some methods of suggestion selling. Attempt to sell additional goods or services to a customer

Common methods for Suggestion Selling
Related merchandise (shoes  socks) Larger quantity (inexpensive items) New stock Advertised/sale merchandise (old stock) Special occasion merchandise (holidays, seasons, events) Most items suggested are those that are related to the original purchase; however, there are other ways to make merchandise suggestions. SHOW 2nd BULLET. You could suggest buying more than one, especially if there is a special sale going on: if you buy 2 of these, you get a 3rd one free. SHOW 3RD BULLET. You could suggest new merchandise that has just come in to the store. SHOW 4TH BULLET. Or you could suggest sale merchandise or merchandise that has been advertised recently. SHOW 5TH BULLET. Other suggestions could include special occasion or holiday merchandise that the store is trying to get rid of because the holiday or event is over.

Sale Follow-up Remind customer of special instructions Thank customer
Delivery promises Information calls Courtesy call Customer file Self-Evaluation Ok. You have closed the sale, made a few suggestions for additional items, and rung up the sale. But the transaction is not over until you have done a follow-up. Follow-up is probably one of the more important steps, especially if the item purchased involves delivery or installation, or if it was a high-ticket item. As the salesperson YOU must check on delivery to make sure the product gets there when promised, YOU should make a courtesy call to make sure everything is working properly, and YOU should keep a customer file for the next time the customer comes in. Now that the process is over, take the time to evaluate what went well, what didn’t, how you could improve next time. Selling is a life-long learning profession.

Learning the steps of the sales process involves lots of study and practice. Although there are natural salespeople, most people who go into sales are trained by the company that hires them. Each company has its sales methods, but the steps you have learned today are universal and can apply to any sales situation.

Steps of the Sales Process

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