Entrepreneurship Chapter 6 Smart Selling and Effective Customer Service.

Entrepreneurship

Chapter 6Smart Selling and Effective

Customer Service

Entrepreneurship, 2nd EditionMariotti and Glackin with NFTE

© 2010 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.2

Many Great Entrepreneurs Started as Salespeople Ray Kroc, founded McDonald’s

Billy Durant, founded General Motors

King C. Gillette, invented safety razor

Aristotle Onassis, sold tobacco wholesale before becoming multimillionaire in shipping business




Essence of Selling Is Teaching Teach customers about the

benefits of your product or service, don’t just tell them about its features.

Listen to customers: Their complaints teach you how to improve your business.




Principles of Selling Make a good personal impression Know your product or service Believe in your product or service Know your field Know your customers Prepare your sales presentation Think positively Keep good records Make no truly “cold” calls Make appointments Treat everyone you sell to like gold




Sales Call

A sales call is an appointment with a potential customer to explain/demonstrate your product or service. During the call: Focus on the customer Listen to uncover customer

needs Be honest about it if your

product or service will not meet those needs




8-Step Sales Call1. Prepare yourself mentally2. Greet the customer politely3. Show the product or service4. Listen to customer5. Deal with objections…always

acknowledge them6. Close the sale7. Follow up8. Ask for new customer referrals




Sales Call Behaviors of Successful Salespeople1. Let the customer talk more than you do.

You are there to learn about the customer’s needs.

2. Ask the right questions. Be a friend. Your goal is to uncover problems your product/service could solve.

3. Wait to offer products and solutions until later in the call. You cannot offer a solution until you know your customer’s needs and problems.




Analyze Your Sales CallsAfter each call, ask yourself: Did the customer open up to me?

Which of my questions helped the customer describe his/her needs?

Was I able to make a good case for my product or service?

Did I improve my relationship with my potential customer?




Turn Objections into Advantages Study objections you have received Group into categories and develop

objection-proof answers for each Price Performance Follow-up service Competition Support Warranties




Use Technology to Sell Multimedia demonstrations Website Email & blogs Webinars & audio conferences Digital planners & sales software PDAs for order placement &

inquiries




The “One Minute Sales Call” Keep it clear & concise Write it down Practice delivering it. The pitch

needs to sound natural & unrehearsed.

Get constructive feedback Remember – listen to the customer!

Don’t just use the pitch!




Customer Service Is Keeping Customers Happy Know your customers by name Deliver products on time Help customer carry product to the car Suggest a less expensive product that

might meet the customer’s need Provide a full refund when a customer

is dissatisfied Listen politely & with empathy to

customer complaints




Positively Outrageous Service* Random & unexpected Out of proportion Involves the customer personally Creates positive word of mouth

* T. Scott Gross




Costs of Losing a Customer

Loss of current dollars customer was spending with your business

Loss of jobs Loss of reputation Loss of future business




Customer Complaints are Valuable Always acknowledge & address

complaints and criticism. Complaints are a valuable source of market research!

Never overreact to negative remarks from customers. Do not take these personally.

Always tell the truth about any negative aspect of your product or service. When you admit a negative, you gain customers’ trust.




Customer Service Is Marketing

If your competitive advantage is speedy service, make sure your employees move fast.

If your competitive advantage is a cozy atmosphere, employees should not rush customers.

Your customer service should always reinforce your marketing and competitive advantage.




Collect Market Research Via Customer Service Include brief market surveys with

purchases.

Ask selected customers to fill out longer surveys, offering a discount as incentive.

Have employees regularly ask customers if they are satisfied with product/service.

Keep database of customer contact info, preferences, previous purchases, etc.




Build Long-Term Relationships with Customers

Stay in touch via website and email in addition to more traditional ways

Offer customers birthday discounts, special shopping days, & other benefits

Ask customers to refer you to new customers

A successful business is built on repeat customers.

Entrepreneurship Chapter 6 Smart Selling and Effective Customer Service.

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