The Sales Process 2.08 Allows the firm to immediately respond to the needs of the prospect Allows...

The Sales The Sales ProcessProcess

2.082.08

Allows the firm to immediately Allows the firm to immediately respond to the needs of the respond to the needs of the prospectprospect

Allows for immediate customer Allows for immediate customer feedbackfeedback

Results in an actual saleResults in an actual sale

Importance of Personal SellingImportance of Personal SellingImportance of Personal SellingImportance of Personal Selling

Hard sell: Formerly thought customers had to be forced into making a purchase

Relationship selling: Now selling requires the development of a trusting partnership in which the salesperson seeks to provide long-term customer satisfaction

Evolution of Personal SellingEvolution of Personal SellingEvolution of Personal SellingEvolution of Personal Selling

Recent Trends in Personal SellingRecent Trends in Personal Selling

Relationship selling:Relationship selling: regular contacts over an regular contacts over an extended period to establish a sustained seller-buyer extended period to establish a sustained seller-buyer relationshiprelationship

Team selling: Team selling: combination of salespeople with combination of salespeople with specialists from other functional areas to promote a specialists from other functional areas to promote a product; useful in sales situations that call for detailed product; useful in sales situations that call for detailed knowledge of new, complex, and ever-changing knowledge of new, complex, and ever-changing technologiestechnologies

Sales force automation (SFA): Sales force automation (SFA): applications of applications of computer and other technologies to make the sales computer and other technologies to make the sales function more efficient and competitivefunction more efficient and competitive

What is the main objective in What is the main objective in sales?sales?

Supply needs & wants of customersSupply needs & wants of customers

Help customers make wise buying Help customers make wise buying decisionsdecisions

To ensure customer satisfaction so To ensure customer satisfaction so the firm can count on repeat the firm can count on repeat businessbusiness

Definition of Personal SellingDefinition of Personal Selling

Personal selling involves oral conversations, Personal selling involves oral conversations, either by telephone or face-to-face, either by telephone or face-to-face,

between salespersons and prospective between salespersons and prospective customers.customers.

““A salesman is someone who sells A salesman is someone who sells goods that won’t come back, to goods that won’t come back, to customers who will.” (Anonymous)customers who will.” (Anonymous)

Personal SellingPersonal Selling

Personal SellingPersonal Selling: : Any form of direct contact Any form of direct contact between a salesperson and a customer.between a salesperson and a customer.

Types of personal selling situationsTypes of personal selling situations• Retail Selling:Retail Selling: Customers come to the store.Customers come to the store.• Business-to-Business SellingBusiness-to-Business Selling:: May take place in a May take place in a

number of locations: manufacturer’s or wholesaler’s number of locations: manufacturer’s or wholesaler’s showroom (inside sales) or a customer’s place of business showroom (inside sales) or a customer’s place of business (outside sales).(outside sales).

• TelemarketingTelemarketing: : Selling over the telephone.Selling over the telephone.

Consultative SellingConsultative Selling Consultative SellingConsultative Selling: :

Providing solutions to Providing solutions to customers’ problems by finding customers’ problems by finding products to meet their needs.products to meet their needs.

Feature - Benefit SellingFeature - Benefit Selling The concept that a salesperson The concept that a salesperson

needs to match the features of needs to match the features of each product to a customer’s each product to a customer’s needs and wants.needs and wants.• Product Features:Product Features: A physical A physical

characteristic or quality of a good or service characteristic or quality of a good or service that explains what it is.that explains what it is.

Tangible Product FeatureTangible Product Feature: Physical : Physical characteristics of a product.characteristics of a product.

Extended Product Features:Extended Product Features: Although not Although not always physically part of the product, important in always physically part of the product, important in the purchase decision.the purchase decision.

Feature - Benefit SellingFeature - Benefit Selling(cont.)(cont.)

– Customer Benefits:Customer Benefits: Advantages or Advantages or personal satisfaction a customer will get personal satisfaction a customer will get from a good or service.from a good or service.

• How does the feature help the product’s How does the feature help the product’s performance?performance?

• How does the performance information give the How does the performance information give the customer a personal reason to buy the product?customer a personal reason to buy the product?

Selling Environments and Selling TypesSelling Environments and Selling Types

Selling Environments Selling Types

Over-the-counter Order taker Order getter

Field Selling Professional salespeople National account managers Missionary salespeople Support salespeople

Telemarketing Outbound Inbound

Over-the-Counter SellingOver-the-Counter Selling

Order takerOrder taker

Order GetterOrder Getter

A salesperson who only processes the purchase that the customer has already selected

Retail outlets that are heavily oriented toward self-service

Over-the-Counter SellingOver-the-Counter Selling

Order takerOrder taker

Order GetterOrder Getter

A salesperson who actively seeks to provide information to prospects, persuade prospective customers, and close sales

Personal service oriented stores

May practice suggestion selling

Field SellingField Selling

Help prospective customers to define their needs and then suggest the best means of meeting those needs, even if that requires suggesting that the prospects use a competitive product

National account managersNational account managers

Missionary SalespeopleMissionary Salespeople

Support SalespeopleSupport Salespeople

Professional SalespeopleProfessional Salespeople

Highly skilled salespersons who call on key customers’ headquarters sites, develop strategic plans for the accounts, make formal presentations to top-level executives, and assist with all the product decisions at that level

National accountNational account managersmanagers

They do not seek to obtain a direct order from their customers

Primary goal is to persuade customers to place orders with distributors or wholesalers

Support the sales force in a number of ways Technical support salespeople assist with technical

aspects of sales presentations Merchandisers may set up product displays

SupportSupport SalespeopleSalespeople

TelemarketingTelemarketing

Utilizing the telephone for prospecting, selling, and/or following up with customers

Outbound: the salesperson uses the telephone to call customers

Inbound: Firms which have customers calling the vendor company to place orders (toll-free phone numbers)

Integrating the Various Selling Integrating the Various Selling ChannelsChannels

THE FIVE SALES CHANNELSTHE FIVE SALES CHANNELS

Over-the-Over-the-Counter Counter

FieldField Selling Selling

Tele-Tele-marketingmarketing

OnlineOnlineSellingSelling

InsideInsideSellingSelling

Personal selling occurs through several Personal selling occurs through several types of communication channelstypes of communication channels

Each sales channels has unique aspects Each sales channels has unique aspects which make it relevant for particular which make it relevant for particular sales situations. sales situations.

Roles of Personal SellingRoles of Personal Selling

a.a. Identifying decision makers, decision processes, Identifying decision makers, decision processes, and qualified buyersand qualified buyers

b.b. Promoting to corporate, travel trade, and other Promoting to corporate, travel trade, and other groupsgroups

c.c. Generating increased sales at the point of Generating increased sales at the point of purchasepurchase

d.d. Providing detailed and up-to-date information to Providing detailed and up-to-date information to the travel tradethe travel trade

e.e. Maintaining a personal relationship with key Maintaining a personal relationship with key clientsclients

f.f. Gathering information on competitors’ Gathering information on competitors’ promotionspromotions

Employment in sales is growing Sales positions offer advantages:

• Good compensation• Intrinsic reward from helping customers• Flexible in day-to-day activities• High-visibility career track• Limited supervision• Travel opportunities• Increasing responsibilities

Why choose the sales profession?Why choose the sales profession?Why choose the sales profession?Why choose the sales profession?

Missionary SellingMissionary SellingMissionary SellingMissionary Selling

Technical SellingTechnical SellingTechnical SellingTechnical Selling

New-business SellingNew-business SellingNew-business SellingNew-business Selling

Retail SellingRetail SellingRetail SellingRetail Selling

Build sales volume Build sales volume by providing by providing customers with customers with promotional promotional assistance in the assistance in the form of advertising form of advertising and sales promotionand sales promotion

Trade SellingTrade Selling

Specific Types of Sales JobsSpecific Types of Sales JobsSpecific Types of Sales JobsSpecific Types of Sales Jobs

TelemarketingTelemarketingTelemarketingTelemarketing

Trade SellingTrade SellingTrade SellingTrade Selling

Where trade Where trade salespeople sell to, salespeople sell to, missionary missionary salespeople sell for salespeople sell for its direct consumersits direct consumers

Missionary SellingMissionary Selling

Often technically Often technically trained in chemistry, trained in chemistry, engineering, and engineering, and computer sciencecomputer science

Support the regular Support the regular sales force or help sales force or help sell the productsell the product

Technical SellingTechnical Selling

Used in industries Used in industries that have one time that have one time or very infrequent or very infrequent sales, thus, sales, thus, salespeople must salespeople must constantly develop constantly develop new leads to new leads to generate salesgenerate sales

New-business SellingNew-business Selling

Wide range of skills Wide range of skills requiredrequired

Can require Can require knowledge, knowledge, communication communication skills, and ability to skills, and ability to work with diverse work with diverse customerscustomers

Retail SellingRetail Selling

Telemarketing uses Telemarketing uses outbound calls to:outbound calls to:• Open new accountsOpen new accounts• Qualify advertising Qualify advertising

leadsleads• Service existing Service existing

businessbusiness

Annual Pay for Sales Annual Pay for Sales Representatives & Sales Representatives & Sales

ManagersManagers

Sales Force CompensationSales Force Compensation

Commission:Commission: incentive incentive compensation directly related to the compensation directly related to the sales or profits achieved by a sales or profits achieved by a salespersonsalesperson

Salary: Salary: fixed compensation fixed compensation payments made periodically to an payments made periodically to an employeeemployee

What are the different kinds of customers?What are the different kinds of customers?

1) 1) Prospective CustomerProspective Customer: no : no specific purchase in mind, specific purchase in mind, undecidedundecided

2) 2) DecidedDecided CustomerCustomer: knows : knows what they want, decidedwhat they want, decided

3) 3) Casual VisitorCasual Visitor: no purchase : no purchase in mind, may not be shopping, in mind, may not be shopping, just lookingjust looking

4) 4) Customers with ComplaintsCustomers with Complaints

What are the four steps that most What are the four steps that most people go through when making a people go through when making a

purchase?purchase?

1)1) AttentionAttention: thoughts are : thoughts are focused on a productfocused on a product

2) 2) InterestInterest: attractiveness or : attractiveness or usefulness of the product usefulness of the product has been noticedhas been noticed

What are the four steps that What are the four steps that most people go through when most people go through when making a purchase? (cont.)making a purchase? (cont.)

3) 3) DesireDesire: item is wanted by : item is wanted by buyerbuyer

4) 4) ActionAction: customer makes : customer makes decisiondecision

Why do people to buy products? Why do people to buy products?

1) To fulfill basic human 1) To fulfill basic human needsneeds

2) Wants: desirable but 2) Wants: desirable but not essentialnot essential

What motivates people to buy a What motivates people to buy a product or service?product or service?

3) Other factors:3) Other factors:a.a. money or cost money or cost

b.b. prioritiespriorities

c. self-confidence (a self confident c. self-confidence (a self confident customer is more likely to buy, and customer is more likely to buy, and a self confident salesperson is a self confident salesperson is more likely to sell)more likely to sell)

Customer Buying Customer Buying DecisionsDecisions

Rational MotiveRational Motive: Conscious, factual : Conscious, factual reason for a purchase such as:reason for a purchase such as:• product dependabilityproduct dependability• time or monetary savingstime or monetary savings• convenienceconvenience• comfortcomfort• recreational valuerecreational value

Emotional MotiveEmotional Motive: Feelings : Feelings experienced by the customer such experienced by the customer such as:as:• social approvalsocial approval• recognitionrecognition• powerpower• lovelove• affectionaffection• prestigeprestige

Factors that affect Factors that affect customer decisions.customer decisions.• Amount of previous Amount of previous

experience with the experience with the product.product.

• How often the product is How often the product is purchased.purchased.

• Amount of information Amount of information necessary to make a wise necessary to make a wise buying decision.buying decision.

Customer Buying Customer Buying Decisions (cont.)Decisions (cont.)

Factors that affect customer Factors that affect customer decisions.decisions.• Importance of the purchase to the Importance of the purchase to the

customer.customer.• Perceived risk involved in the Perceived risk involved in the

purchase (financial loss, physical purchase (financial loss, physical or emotional harm, won’t function or emotional harm, won’t function properly).properly).

• Time available to make the Time available to make the decision.decision.

Extensive Decision Extensive Decision MakingMaking: Used when there : Used when there has been little or no has been little or no previous experience with previous experience with the item because it is the item because it is infrequently purchased.infrequently purchased.

Limited Decision MakingLimited Decision Making::

Used when a person buys goods Used when a person buys goods and services that he or she has and services that he or she has purchased before but not on a purchased before but not on a regular basis.regular basis.

Routine Decision MakingRoutine Decision Making::

Used when a person needs little Used when a person needs little information about a product information about a product because of the high degree of because of the high degree of prior experience with it.prior experience with it.

What are the methods used What are the methods used when dealing with different when dealing with different

types of customers?types of customers?

1) Talkative Customer: 1) Talkative Customer: • Listen attentively and direct the Listen attentively and direct the

conversation toward the product. conversation toward the product. • Be Patient.Be Patient.

2)2) Indecisive CustomerIndecisive Customer:: • Provide facts about the product patiently Provide facts about the product patiently

and thoroughly in order to reassure the and thoroughly in order to reassure the customercustomer

3) Know-it-all Customer: 3) Know-it-all Customer: • Let the customer confirm the facts. Do not Let the customer confirm the facts. Do not

compete or argue with the customer.compete or argue with the customer.

4) Silent Customer:4) Silent Customer:• Ask intelligent questions in order to Ask intelligent questions in order to

stimulate the conversation and always be stimulate the conversation and always be patient.patient.

5) Disagreeable Customer:5) Disagreeable Customer:• Be patient, polite and do not show anger. Be patient, polite and do not show anger.

Admit to any disadvantages of the Admit to any disadvantages of the product.product.

6) Delaying Customer:6) Delaying Customer:• List the sound reasons why product should List the sound reasons why product should

be purchased.be purchased.

7) Decisive Customer:7) Decisive Customer:• Keep the sales presentation short and to Keep the sales presentation short and to

the point. Allow the customer to state the point. Allow the customer to state his/her conclusions.his/her conclusions.

8) Customer in a hurry:8) Customer in a hurry:• Approach the customer immediately, Approach the customer immediately,

determine their needs quickly and close determine their needs quickly and close the sale.the sale.

How do you prevent a customer How do you prevent a customer from being dissatisfied?from being dissatisfied?

The best way to handle a The best way to handle a dissatisfied customer is to not dissatisfied customer is to not create one. Make sure that any create one. Make sure that any applicable warranty is thoroughly applicable warranty is thoroughly understood. Avoid selling a understood. Avoid selling a customer a product that does not customer a product that does not

fit theirfit their needs/wants.needs/wants.

The Customer

Five Buying Decisions

The Buying Process

ProductPlacePriceTime

Quantity

AttentionInterestDesire

ConvictionAction

From the Customer’s Point of View

The Salesperson

The SellingProcess

1. Preapproach2. Approach3. Determining Wants & Needs4. Feature-Benefit Presentation5. Overcoming Objections6. Closing the Sale7. Suggestion Selling8. Follow Up & Service

From the Salesperson’s Point of View

The Sales ProcessThe Sales Process

• What happens during the process of What happens during the process of a sale from the time you walk in the a sale from the time you walk in the door to the time you leave?door to the time you leave?

Steps of A SaleSteps of A Sale

1.1. PreapproachPreapproach: Looking for customers : Looking for customers and getting ready for the sale.and getting ready for the sale.

2.2. Approaching the customerApproaching the customer: Actually : Actually greeting the customer face-to-face.greeting the customer face-to-face.

3.3. Determining needs/wantsDetermining needs/wants: Learning : Learning what a customer is looking for.what a customer is looking for.

4.4. Presenting the productPresenting the product: : Educating the customer about the Educating the customer about the product’s features and benefits.product’s features and benefits.

5.5. Handling questions and Handling questions and objectionsobjections::• Learning why the customer is reluctant to buy.Learning why the customer is reluctant to buy.• Providing information to remove that Providing information to remove that

uncertainty.uncertainty.• Helping the customer make a satisfying buying Helping the customer make a satisfying buying

decision.decision.

6.6. Closing the saleClosing the sale: Getting the : Getting the customer’s positive agreement to customer’s positive agreement to buy.buy.

7.7. Suggestion sellingSuggestion selling: Suggesting : Suggesting that the customer buy additional that the customer buy additional merchandise or services.merchandise or services.

8.8. Reassuring and following upReassuring and following up: : Helping a customer feel that he or Helping a customer feel that he or she has made a wise purchase.she has made a wise purchase.

The Sales Process – __________The Sales Process – __________

APPROACH:APPROACH:1. Preapproach1. Preapproach2. Approach2. Approach3. Determine 3. Determine

Customer Customer Wants & Wants & NeedsNeeds

PRESENTATION:PRESENTATION:(Select Product)(Select Product)4. Feature Benefit 4. Feature Benefit

PresentationPresentation5. Handle 5. Handle

ObjectionsObjections

CLOSE:CLOSE:6. Close the Sale6. Close the Sale7. Suggestion 7. Suggestion

Selling Selling (Complete the (Complete the transaction)transaction)

8. Follow Up & 8. Follow Up & Service Service

Stage 1

Stage 2

Stage 3

ThroughoutThroughout the sales process, the the sales process, the salesperson should be salesperson should be continuallycontinually……

• planning next action steps • confirming understanding • asking for referrals • seeking additional opportunities to serve

& sell • evaluating responses & results (positive/

negative) • affirming decisions (minimizing buyer’s

remorse) • positively expectant

STEP #1: PREAPPROACHSTEP #1: PREAPPROACH

Getting ready for the sale….Getting ready for the sale….

Resources:Resources:Direct experienceDirect experienceWritten publicationsWritten publicationsOther people Other people Formal trainingFormal training

The Pre ApproachThe Pre Approach Observing and getting ready to sellObserving and getting ready to sell

• A customer walks into your store A customer walks into your store and you observe what they are and you observe what they are looking at before you greet them.looking at before you greet them.

•You’re a home improvement You’re a home improvement business and you drive around the business and you drive around the neighborhood to observe which neighborhood to observe which houses require home repairs.houses require home repairs.

3 Types of Customers3 Types of Customers

Undecided Just Looking

Decided

The PreapproachThe PreapproachGetting Ready to SellGetting Ready to Sell

Finding new customers by Finding new customers by prospecting prospecting

Retail sales not a prevalent Retail sales not a prevalent because the customers come because the customers come into the store.into the store.

Important for the salesperson to Important for the salesperson to open new accounts to generate open new accounts to generate sales volume.sales volume.

ProspectProspect

Find customersFind customers Get leadsGet leads Build a referral baseBuild a referral base Cold-callCold-call

Reasons for ProspectingReasons for Prospecting

1.1. Increase SalesIncrease Sales

1.1. Replace CustomersReplace Customers

Finding CustomersFinding Customers

Prospecting – looking for new Prospecting – looking for new customers…customers…

In order to be a Prospect:In order to be a Prospect:

1.1. Need for the productNeed for the product

2.2. Resources to buy productResources to buy product

3.3. Authority to buyAuthority to buy

What is prospecting?What is prospecting?

Finding Finding potential potential customerscustomers

Examples of ProspectingExamples of Prospecting Wedding Pictures:Wedding Pictures:

• Look in newspapers for wedding Look in newspapers for wedding announcementsannouncements

Roof Repair:Roof Repair:• Door to Door/DriveDoor to Door/Drive

by/Telemarketingby/Telemarketing Golf Vacations:Golf Vacations:

• Mailing list for Golf DigestMailing list for Golf Digest• Memberships to CoursesMemberships to Courses

Prospecting and qualifying Prospecting and qualifying prospective customers:prospective customers:

Blind prospectingBlind prospecting Cold calling or canvassing Cold calling or canvassing Sales blitzSales blitz Lead prospectingLead prospecting

Terms to KnowTerms to Know

ReferralsReferrals•Potential Potential

customer customer names given names given by previous by previous customerscustomers

Cold CallsCold Calls•Randomly Randomly

searching for searching for customers.customers.

Drive byDrive by TelemarketingTelemarketing

The Personal Selling ProcessThe Personal Selling ProcessThe Personal Selling ProcessThe Personal Selling Process

ProspectingProspecting

Prospecting involves finding qualified sales leads Qualified sales leads: potential customers that have a need for

the salesperson’s product, and are able to buy Referrals: obtained by the salesperson asking current

customers if they know of someone else who might have a need for the salesperson’s product

Cold-calling: means contacting prospective customers without a prior arrangement

Prospecting involves finding qualified sales leads Qualified sales leads: potential customers that have a need for

the salesperson’s product, and are able to buy Referrals: obtained by the salesperson asking current

customers if they know of someone else who might have a need for the salesperson’s product

Cold-calling: means contacting prospective customers without a prior arrangement

Sources and Methods of Sources and Methods of ProspectingProspecting

Employer leadsEmployer leads Telephone Telephone

DirectoriesDirectories Trade and Trade and

Professional Professional DirectoriesDirectories

NewspapersNewspapers Commercial ListsCommercial Lists Cold CanvassingCold Canvassing

Customer listsCustomer lists Buyer listsBuyer lists Orphaned Orphaned

customers customers Public ExhibitionPublic Exhibition ObservationObservation Direct MailDirect Mail Customer Customer

ReferralsReferrals

InterviewInterview

Qualify prospectQualify prospect• Potential customer? Yes/NoPotential customer? Yes/No• How much will they buy?How much will they buy?• Do you want them as a customer?Do you want them as a customer?

Find out Find out • What prospect needsWhat prospect needs• Prospect’s problemsProspect’s problems• Current suppliers (prices?)Current suppliers (prices?)• Attitudes, valuesAttitudes, values• Policies, decision makersPolicies, decision makers

Preparing for the SalePreparing for the Sale

Industrial SalesIndustrial Sales Analyze past sales records.Analyze past sales records. View notes about the personal View notes about the personal

aspects of the customer.aspects of the customer. Qualify new customers.Qualify new customers. Inquire with other salespeople who Inquire with other salespeople who

are with non-competing lines.are with non-competing lines.

Industrial SalesIndustrial Sales Ask questions in a pre-visit phone Ask questions in a pre-visit phone

call.call. Make an appointment to see the Make an appointment to see the

prospect in order to have time to prospect in order to have time to explain the features of your explain the features of your product.product.

Pre-approachPre-approach

The collection of information about the potential customer and the customer’s company prior to the initial visit

Researching the prospect and the company will assist the salesperson in planning the initial presentation to the prospective customer

The collection of information about the potential customer and the customer’s company prior to the initial visit

Researching the prospect and the company will assist the salesperson in planning the initial presentation to the prospective customer

Retail SalesRetail Sales The customer comes to you, so most The customer comes to you, so most

of the preparation is in the retail of the preparation is in the retail store.store.

Stock keeping and house keeping Stock keeping and house keeping duties are important.duties are important.

Learn about the merchandise and the Learn about the merchandise and the prices of the merchandise.prices of the merchandise.

STEP #2: APPROACHSTEP #2: APPROACH

The 1The 1stst communication communication between salesperson and between salesperson and customercustomer

The APPROACH is…The APPROACH is… The first face-to-face contact The first face-to-face contact

with the customer.with the customer. Can make or break a saleCan make or break a sale Sets the mood or atmosphereSets the mood or atmosphere Establishes a relationshipEstablishes a relationship

What your mother said What your mother said is true . . .is true . . .

You never get a second You never get a second chance to make achance to make afirst impression!first impression!

Approaching the CustomerApproaching the Customer

First impressions count; First impressions count; if a customer is turned if a customer is turned off by the approach it off by the approach it will be difficult to win will be difficult to win him or her over.him or her over.

Be alert to what interests Be alert to what interests the customer.the customer.

Approach (cont.)Approach (cont.)

Establish a rapport and a positive Establish a rapport and a positive relationship with the customer.relationship with the customer.

Be aware of the customer’s buying Be aware of the customer’s buying stylestyle

The Approach in Industrial The Approach in Industrial SalesSales

Setup an appointment during Setup an appointment during the preapproach, and arrive the preapproach, and arrive early to the appointment.early to the appointment.

Introduce yourself, smile, and Introduce yourself, smile, and shake hands.shake hands.

The Approach in Industrial The Approach in Industrial SalesSales

Engage in small talk to build a relationship with Engage in small talk to build a relationship with the customer.the customer.

Comment on important things to keep the Comment on important things to keep the customer interested.customer interested.

The Approach in The Approach in Business-to-Business SellingBusiness-to-Business Selling

♦ Set up an appointment

♦ Introduce yourself with a firm handshake and a smile.

♦ Be more personal with customers you know.

♦ Use good opening statements with new customers..

The Approach in Retail SellingThe Approach in Retail Selling If customer is in If customer is in

a hurry, a hurry, approach approach quickly.quickly.

If customer is If customer is undecided, let undecided, let them look.them look.

Encourage Encourage customers to customers to look around and look around and to ask to ask questions.questions.

The first encounter with a The first encounter with a potential customer…potential customer…

•Service approachService approach

•Greeting approachGreeting approach

•Merchandise approachMerchandise approach

•Combination approachCombination approach

Service Approach MethodService Approach Method

Ask if assistance is needed.Ask if assistance is needed. ““May I help you?”May I help you?” Problem – customer says, “I’m Problem – customer says, “I’m

just looking.”just looking.” Instead, ask “How may I help Instead, ask “How may I help

you?”you?”

Methods for the initial approach:

The Approach in Retail SalesThe Approach in Retail SalesService Approach MethodService Approach Method

““How may I help you”How may I help you”

Appropriate when the customer is Appropriate when the customer is obviously in a hurry or you are simply an obviously in a hurry or you are simply an order taker.order taker.

Ineffective in most situations; you lose Ineffective in most situations; you lose control of the sales situation.control of the sales situation.

Greeting Approach MethodGreeting Approach Method

•The salesperson welcomes the customer

•“Good morning.”

•Establishes a positive atmosphere.

The Approach in Retail SalesThe Approach in Retail SalesGreeting Approach MethodGreeting Approach Method

““Good afternoon, Mr. Wright” or an Good afternoon, Mr. Wright” or an appropriate personal comment.appropriate personal comment.

This approach begins conversation and This approach begins conversation and establishes a positive rapport.establishes a positive rapport.

Do not focus on the merchandise.Do not focus on the merchandise.

Merchandise Approach Merchandise Approach MethodMethod

•Let the customer look around. When they show interest in a product, the salesperson makes a comment or asks a question.

•The most effective approach because it gets the customer talking about the merchandise he/she may be interested in.

The Approach in Retail SalesThe Approach in Retail SalesMerchandise Approach MethodMerchandise Approach Method

The salesperson makes a comment or asks The salesperson makes a comment or asks questions about a product that the questions about a product that the customer is looking at.customer is looking at.

Ask questions about the item.Ask questions about the item.

Usually the most effective approach Usually the most effective approach because it immediately focuses attention because it immediately focuses attention on the merchandise.on the merchandise.

Which Approaches ?Which Approaches ?

SERVICE APPROACH DECIDED CUSTOMERSERVICE APPROACH DECIDED CUSTOMER

The decided customer doesn’t require your help. The decided customer doesn’t require your help. They know what they want. They are ready to They know what they want. They are ready to buy. buy.

Timing: You must move quickly.Timing: You must move quickly. The decided customer will take possession (hold) The decided customer will take possession (hold)

of the product.of the product. The decided customer may be headed toward the The decided customer may be headed toward the

check out.check out.

Which Approaches ?Which Approaches ?MERCHANDISE APPROACH UNDECIDED CUSTOMERMERCHANDISE APPROACH UNDECIDED CUSTOMER The undecided customer will require your The undecided customer will require your

patience. They will have many questions, and will patience. They will have many questions, and will require product information. require product information.

Never give this customer too many choices, they Never give this customer too many choices, they will have a hard time making a decision.will have a hard time making a decision.

Timing: Allow them to look first then approachTiming: Allow them to look first then approach

Which Approaches ?Which Approaches ?MERCHANDISE APPROACH JUST LOOKING CUSTOMERMERCHANDISE APPROACH JUST LOOKING CUSTOMER

The just looking customer will require your The just looking customer will require your patience. They like to be left alone.patience. They like to be left alone.

Timing: Allow them to look – Go slow.Timing: Allow them to look – Go slow.

REVIEWREVIEWTypes of ApproachesTypes of Approaches

1) 1) ServiceService

HOW HOW may I may I help you?help you?

2) 2) GreetingGreeting

Hi welcome to Hi welcome to Wal-MartWal-Mart

REVIEW REVIEW Types of ApproachesTypes of Approaches

3) 3) MerchandiseMerchandise

I noticed you I noticed you were looking at were looking at our latest in our latest in pottery.pottery.

4) 4) CombinationCombination

Hello, we have a Hello, we have a special today special today buy 2 shirts get buy 2 shirts get the 3the 3rdrd one ½ one ½ off!off!

STEP #3: DETERMINE STEP #3: DETERMINE CUSTOMER WANTS & NEEDSCUSTOMER WANTS & NEEDS

How to determine consumer needs:How to determine consumer needs: Determine customer’s reasons for buying Determine customer’s reasons for buying Observing Observing ListeningListening Questioning and Engaging Questioning and Engaging

Need Need IdentificationIdentification

Requires asking probing questions of the prospective customer to determine needs

The salesperson should ask open-ended questions Make sure that the customer’s needs and potential

concerns are addressed

Requires asking probing questions of the prospective customer to determine needs

The salesperson should ask open-ended questions Make sure that the customer’s needs and potential

concerns are addressed

When to Determine NeedsWhen to Determine Needs

In Retail SellingIn Retail Selling: Immediately after : Immediately after the approach.the approach.

In Industrial SellingIn Industrial Selling: During the : During the preapproach.preapproach.

Analyze NeedsAnalyze Needs

Usually during initial/only meeting in Usually during initial/only meeting in business to consumer (retail) sales.business to consumer (retail) sales.

Detailed analysis of customer needs.Detailed analysis of customer needs.

How will customer use product?How will customer use product?

How will it help customer?How will it help customer?

ThroughoutThroughout the sales process, the the sales process, the salesperson should be salesperson should be continuallycontinually……

• asking questions • listening • qualifying (the opportunity for both parties) • discovering hot buttons (wiifm?-what’s in it for

me?) • building rapport • establishing trust • developing credibility • developing a valuable relationship • addressing objections

How to Determine NeedsHow to Determine Needs

ObservingObserving

ListeningListening

QuestioningQuestioning

What methods are used to What methods are used to determine customer wants and determine customer wants and

needs?needs?

1)1) Ask direct questions and give Ask direct questions and give clear answersclear answers

2)2) Observe what merchandise Observe what merchandise the customer looks atthe customer looks at

What methods are used to What methods are used to determine customer wants & determine customer wants &

needs? (cont.)needs? (cont.)

3) Watch the customers facial 3) Watch the customers facial expressions for clues or reactions expressions for clues or reactions to the sales presentationto the sales presentation

4) Listen carefully to what the 4) Listen carefully to what the customer sayscustomer says

STEP #4: PRODUCT STEP #4: PRODUCT PRESENTATIONPRESENTATION

What products do you show?What products do you show?• How they will use the product?How they will use the product?• Show a medium-priced product first!Show a medium-priced product first!• Highlight the features and benefits Highlight the features and benefits

(FEATURE BENEFIT PRESENTATION) (FEATURE BENEFIT PRESENTATION)

PresentationPresentation

The focus of the sales presentation is the salesperson’s explanation of how the features of the product provide “benefits”

Presentation may be flexible or memorized The salesperson should be prepared to provide

documentation for any statements of fact that are made

The focus of the sales presentation is the salesperson’s explanation of how the features of the product provide “benefits”

Presentation may be flexible or memorized The salesperson should be prepared to provide

documentation for any statements of fact that are made

Select Products to PresentSelect Products to Present

Decide which products to show.Decide which products to show.

Determine the price range.Determine the price range.

Show no more than Show no more than

3 products at a time.3 products at a time.

What to DoWhat to Do Display the product creatively Display the product creatively

and attractively.and attractively.

Demonstrate to build customer Demonstrate to build customer confidence.confidence.

Use sales aids such as articles, Use sales aids such as articles, audio-visual aids, drawings, audio-visual aids, drawings, graphs, etc…graphs, etc…

Keep the customer involved.Keep the customer involved.

What methods are used to fulfill What methods are used to fulfill customer wants and needs?customer wants and needs?

1)1) Point out product benefits that Point out product benefits that best fit the customer needsbest fit the customer needs

1)1) Explain facts in terms the Explain facts in terms the customer can understandcustomer can understand

2)2) Demonstrate product to Demonstrate product to customercustomer

Product PresentationProduct Presentation

This is the This is the pitchpitch.. Show how your product helps solve Show how your product helps solve

customer’s problems.customer’s problems. Match your product’s features Match your product’s features

(attributes) to customer’s needs and (attributes) to customer’s needs and problems.problems.

Focus on customer.Focus on customer. This is a skill that needs to be This is a skill that needs to be

learned.learned.

Product presentation time!Product presentation time! Display and handle the product Display and handle the product

Demonstrate the product Demonstrate the product

Use sales aids Use sales aids

Involve the customer Involve the customer

Hold the customer’s attention Hold the customer’s attention

REMEMBER Customers BUY BENEFITS!REMEMBER Customers BUY BENEFITS!

STEP #5: OVERCOMING STEP #5: OVERCOMING OBJECTIONSOBJECTIONS

Objection vs. ExcuseObjection vs. Excuse Objection based on:Objection based on:

-Need-Need

-Product-Product

-Source-Source

-Price-Price

-Time-Time

Handling Handling ObjectionsObjections

The salesperson may have failed to provide adequate information, or have not demonstrated how the product meets the needs of the prospect

Objection is a sign of interest on the part of the prospect Provide information that will ensure the prospect’s

confidence in making the purchase

The salesperson may have failed to provide adequate information, or have not demonstrated how the product meets the needs of the prospect

Objection is a sign of interest on the part of the prospect Provide information that will ensure the prospect’s

confidence in making the purchase

Objection or Excuse?Objection or Excuse?

ObjectionsObjections - Honest reasons a - Honest reasons a customer has for not making a customer has for not making a purchase.purchase.

ExcusesExcuses - Insincere reasons for not - Insincere reasons for not making a purchase.making a purchase.

Common ObjectionsCommon Objections Need: Customer has a conflict between

wanting something and truly needing it. Product: Objections based on the product itself

such as quality, size, appearance, or style. Source: Objections based on negative past

experiences with the firm or brand. Price: More common with high-quality,

expensive merchandise. Time: Usually reveal a hesitation to buy

immediately. Sometimes are in the form of excuses.

Handling ObjectionsHandling Objections

Listen Carefully.Listen Carefully.

Acknowledge the Customer’s Objections.Acknowledge the Customer’s Objections.

Restate the Objections.Restate the Objections.

Answer the Objection.Answer the Objection.

Methods to handle objectionsMethods to handle objections

Substitution Substitution Boomerang Boomerang Question Question Superior-point Superior-point Denial Denial Demonstration Demonstration Third party Third party

STEP #6: STEP #6: CLOSING THE SALE CLOSING THE SALE

Watch for buying signals:Watch for buying signals:

Verbal closing cluesVerbal closing clues

Non-verbal closing clues Non-verbal closing clues

GainingGaining

CommitmentCommitment

Commitment is gained when the prospect agrees to take the action sought by the salesperson

The salesperson must ask for commitment

Commitment is gained when the prospect agrees to take the action sought by the salesperson

The salesperson must ask for commitment

CloseClose This is where you make your money.This is where you make your money.

This is why salespeople exist!This is why salespeople exist!

The most important part of the The most important part of the salesperson’s job.salesperson’s job.

Lots of tricks and techniques… be careful.Lots of tricks and techniques… be careful.

Be persistent. 5x average (no vs. yes)Be persistent. 5x average (no vs. yes)

ABC - Always be ClosingABC - Always be Closing

Be prepared to close the sale at any time. The sales Be prepared to close the sale at any time. The sales process doesn't have to continue through all the steps. process doesn't have to continue through all the steps. You can You can close a saleclose a sale at any time. at any time.

Prospect who is ready to buy, money in hand, waving it in Prospect who is ready to buy, money in hand, waving it in the air, however, the salesperson stops them and says the air, however, the salesperson stops them and says wait, I haven't finished my presentation yet, let me tell you wait, I haven't finished my presentation yet, let me tell you how great I am.how great I am.

They've been taught to go through all the steps so they They've been taught to go through all the steps so they keep talking and many times talk themselves out of a sale.keep talking and many times talk themselves out of a sale.

At any point during the sales process the prospect is ready At any point during the sales process the prospect is ready to buy...close the sale.to buy...close the sale.

How to Recognize Buying SignsHow to Recognize Buying Signs

Buyers will often give you signs they want what Buyers will often give you signs they want what you're selling. These signs can either be verbal or you're selling. These signs can either be verbal or visual. visual.

A buyer may start asking more questions.A buyer may start asking more questions.

They nod their head in agreement. They nod their head in agreement.

They require more in depth information. They require more in depth information.

They start talking about how things will be when They start talking about how things will be when they own the product.they own the product.

How to Recognize Buying SignsHow to Recognize Buying Signs Some visual signs to watch for are:Some visual signs to watch for are:

• a smile, a smile, • a raising of the eyebrows a raising of the eyebrows • moving closer to you so they can see better. moving closer to you so they can see better. • If it's a couple they may show more affection or they may If it's a couple they may show more affection or they may

look at each other in a certain way.look at each other in a certain way.

When you have memorized your presentation you When you have memorized your presentation you can be more aware of these buying signs and your can be more aware of these buying signs and your closing ratio will increase dramatically.closing ratio will increase dramatically.

When you know what you are going to say and don't When you know what you are going to say and don't need to think about it, your sales will increase need to think about it, your sales will increase dramatically because you can sit back and watch dramatically because you can sit back and watch their body language and buying signals and you'll their body language and buying signals and you'll know when they're ready to buy.know when they're ready to buy.

Methods for closing the sale Methods for closing the sale Which Which

Standing-room only Standing-room only

Direct Direct

Service Service

CLOSING METHODSCLOSING METHODS

• Which CloseWhich Close: Encourages a customer to : Encourages a customer to make a decision between two items.make a decision between two items.

• Standing-Room-Only CloseStanding-Room-Only Close:: Used Used when a product is in short supply or the when a product is in short supply or the price will go up in the near future.price will go up in the near future.

• Direct CloseDirect Close:: Method in which you ask Method in which you ask for the sale.for the sale.

• Service CloseService Close:: Explains services that Explains services that overcome obstacles or problems.overcome obstacles or problems.

How to Make the Decision to Close the SaleHow to Make the Decision to Close the Sale

When you have qualified the prospect When you have qualified the prospect properly, the buying signs are there and you properly, the buying signs are there and you know they want to buy, make the decision that know they want to buy, make the decision that the best thing for the customer is to buy.the best thing for the customer is to buy.

Then focus your attention on talking about the Then focus your attention on talking about the things they like or feel are important as you things they like or feel are important as you close the saleclose the sale. Put your personal feelings . Put your personal feelings about your product or service aside and focus about your product or service aside and focus on the buyer.on the buyer.

Seven More Possible Strategies for Seven More Possible Strategies for Closing SalesClosing Sales

1.1. Trial closesTrial closes

2.2. Assumptive closeAssumptive close

3.3. Summary or summary-of-the-benefits Summary or summary-of-the-benefits closeclose

4.4. Special concession closeSpecial concession close

5.5. Eliminating-the-single-objection or final-Eliminating-the-single-objection or final-concern closeconcern close

6.6. Limited-choice closeLimited-choice close

7.7. Direct-appeal closeDirect-appeal close

Closing the SaleClosing the Sale

Failure to Close the SaleFailure to Close the Sale..

• If at first you don’t succeed try again.If at first you don’t succeed try again.• 60% of all sales follow four or more 60% of all sales follow four or more

attempted closes.attempted closes.

STEP #7: SUGGESTION SELLINGSTEP #7: SUGGESTION SELLING

Selling additional goods to enhance Selling additional goods to enhance the original purchasethe original purchase

Cross selling Cross selling

Upselling Upselling

Special sales opportunities Special sales opportunities

Suggestion Selling BenefitsSuggestion Selling Benefits• To the SalespersonTo the Salesperson:: Shows genuine Shows genuine

concern for the customer and makes them concern for the customer and makes them want to do business with you again.want to do business with you again.

• To the CustomerTo the Customer:: He or she is more pleased He or she is more pleased with the original purchase.with the original purchase.

• To the CompanyTo the Company:: The time and cost The time and cost involved in suggestion selling is less than the involved in suggestion selling is less than the cost of making the original sale.cost of making the original sale.

Suggestion Selling MethodsSuggestion Selling Methods• Offer Related MerchandiseOffer Related Merchandise:: A good or service the A good or service the

customer should have to increase the use or customer should have to increase the use or enjoyment of the original purchase.enjoyment of the original purchase.

• Recommending Larger QuantitiesRecommending Larger Quantities:: This method This method usually works with inexpensive items or when usually works with inexpensive items or when money, time, and/or convenience will be saved.money, time, and/or convenience will be saved.

• Call Attention to Special Sales OpportunitiesCall Attention to Special Sales Opportunities:: As a matter of customer service, salespeople are As a matter of customer service, salespeople are obligated to communicate special sales obligated to communicate special sales opportunities.opportunities.

STEP #8: FOLLOW UP & SERVICE STEP #8: FOLLOW UP & SERVICE It’s not over when the customer signs.It’s not over when the customer signs.

Make sure delivery is made, customer is trained, and Make sure delivery is made, customer is trained, and customer is happy.customer is happy.

Periodically, check in with customer. Periodically, check in with customer. Don’t just show up when it’s Don’t just show up when it’s time to make another sale.time to make another sale.

If you don’t keep customer If you don’t keep customer happy…. happy…. someone else will! someone else will! (your competition)(your competition)

Follow- UpFollow- Up

The salesperson completes any agreed upon actions The salesperson should stay in touch after the sale by

writing thank-you notes, clipping and mailing newspaper articles of interest to the prospect and calling on the customer to ensure the customer’s satisfaction

The salesperson completes any agreed upon actions The salesperson should stay in touch after the sale by

writing thank-you notes, clipping and mailing newspaper articles of interest to the prospect and calling on the customer to ensure the customer’s satisfaction

How to maintain a relationship How to maintain a relationship with the customer…with the customer…

Order processing Order processing

Order fulfillment Order fulfillment

Customer service Customer service

Keeping a client file Keeping a client file

Evaluate sales effortsEvaluate sales efforts

Reassuring and Following-upReassuring and Following-up After-Sale ActivitiesAfter-Sale Activities

• Customer Relationship Management (CRM)Customer Relationship Management (CRM):: Involves Involves strategies used to stay close to customers.strategies used to stay close to customers.

• Taking Payment / Taking the OrderTaking Payment / Taking the Order:: Work quickly and Work quickly and courteously to complete the order and avoid saying or courteously to complete the order and avoid saying or doing anything that might irritate the customer.doing anything that might irritate the customer.

• DepartureDeparture:: Before the customer leaves, or before Before the customer leaves, or before departing a clients office, reassure the person of the wise departing a clients office, reassure the person of the wise buying choices that have been made.buying choices that have been made.

• Follow-upFollow-up:: Follow through with all promises and check on Follow through with all promises and check on customer satisfaction with the purchase.customer satisfaction with the purchase.

• EvaluationEvaluation:: Send questionnaires or call customers to Send questionnaires or call customers to check on how well they were treated by the sales and check on how well they were treated by the sales and service staff.service staff.

Remember everything you do Remember everything you do builds the relationship you have builds the relationship you have

with your customer…with your customer…

What is CRM?What is CRM? Customer Relationship ManagementCustomer Relationship Management Implement technology and CRM Implement technology and CRM Maintain contacts Maintain contacts Maintain relationships Maintain relationships Develop customer loyaltyDevelop customer loyalty Implement rewards programImplement rewards program

Customer Service Tips And Customer Service Tips And TechniquesTechniques

Customer Relationship Management Customer Relationship Management (CRM)(CRM):: Involves strategies used to stay close to Involves strategies used to stay close to customers.customers.

68% of people quit doing business 68% of people quit doing business with with companies that have poor customer servicecompanies that have poor customer service. .

It is far easier to lose customers It is far easier to lose customers due to poor due to poor serviceservice than for your product's quality or cost. than for your product's quality or cost.

It costs 5 times as much to bring in a new It costs 5 times as much to bring in a new customer, than to keep an existing one.customer, than to keep an existing one.

Customer Service Tips And Customer Service Tips And TechniquesTechniques

Attention to customer service will Attention to customer service will go a long way in helping you to go a long way in helping you to satisfy your customers and make satisfy your customers and make them feel as if they are truly them feel as if they are truly special.special.

CRMCRM1. Always tell your customer what you CAN do for 1. Always tell your customer what you CAN do for

them. Don't begin your conversation by telling them. Don't begin your conversation by telling them what you CAN'T do.them what you CAN'T do.

2. Allow irate customers to vent. Do not interrupt 2. Allow irate customers to vent. Do not interrupt them or start to speak until they have finished them or start to speak until they have finished having their say.having their say.

3. Diffuse anger by saying "I'm sorry” or "I 3. Diffuse anger by saying "I'm sorry” or "I apologize."apologize."

4. Use your customer's name at different points 4. Use your customer's name at different points in the conversation.in the conversation.

CRM (cont.)CRM (cont.)5. Make certain that your "solution" to the 5. Make certain that your "solution" to the

customer's problem is acceptable to them. Get customer's problem is acceptable to them. Get their approval and agreement.their approval and agreement.

6. Always conclude each conversation with a 6. Always conclude each conversation with a "Thank you" or a verbal message of "Thank you" or a verbal message of appreciation for their business.appreciation for their business.

7. Make certain that your tone of voice is in sync 7. Make certain that your tone of voice is in sync with your words. Remember, your tone of voice with your words. Remember, your tone of voice can completely contradict your message.can completely contradict your message.

CRM (cont.)CRM (cont.)

8. Listen attentively! There is nothing worse 8. Listen attentively! There is nothing worse than asking an irate or troubled customer to than asking an irate or troubled customer to REPEAT what they have just said.REPEAT what they have just said.

9. Go the extra step by following up on your 9. Go the extra step by following up on your solution. Re-contact the customer to make solution. Re-contact the customer to make certain that everything has been handled in certain that everything has been handled in a satisfactory manner, and they are pleased a satisfactory manner, and they are pleased with the outcome.with the outcome.

10. Remember to ask if there is anything else 10. Remember to ask if there is anything else that you can do for your customer. Taking that you can do for your customer. Taking the time to ask the question often results in the time to ask the question often results in increased business and a more committed increased business and a more committed customer.customer.

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