Ch. 13 Initiating The Sale

The 7 Steps of a Sale Approaching the Customer – Greet customer face-to-face Determining Needs – Learn what customer is looking for Presenting the Product – Educate customer about the product

The Steps of a Sale (Cont.) Overcoming Objections Learn why customer is reluctant to buy Provide info to remove uncertainty Help customer make satisfying buying decision Closing the Sale – Get customer’s agreement to buy

The Steps of a Sale (Cont.) Suggestion Selling – Suggest that the customer buy additional merchandise or services Relationship Building – Create ways to maintain contact after purchase

Relationship Building Remembering the 7 Steps Approach Customer Needs Determined Product Presentation Objections Handling Closing the Sale Suggestion Selling Relationship Building

Approaching the Customer First face-to-face contact Critical first few minutes Sets mood for the sale Approach has 3 purposes: Begin conversation Establish relationship Focus on the product

Approaching the Customer (Cont.) Begin Conversation Be alert to customer’s interest B2B: Doing homework/research Retail: Be observant from moment the customer enters store

Approaching the Customer (Cont.) Establish relationship Treat customer as individual Be alert to customer’s buying style (methodical/quick) Be enthusiastic, be courteous, maintain eye contact

The Approach in B2B Sales Arrive early to appointment Introduce yourself (firm handshake and smile) Use customer’s name Comment on something that matters to get the customer’s attention (Save money, increase sales…)

3 Approaches in Retail Selling Service Approach Method Greeting Approach Method Merchandise Approach Method Each is detailed on the next 3 slides…

3 Approaches in Retail Selling Service Approach Method Salesperson asks customer if they need assistance “May I help you?” Only effective if customer is in a hurry or if you are simply an order taker for routine purchases In all other cases, this method is ineffective

3 Approaches in Retail Selling Greeting Approach Method Salesperson simply welcomes customer to store “Good Morning!” After greeting, pause for a few seconds (many customers will feel obligated to respond) This approach begins conversation, and establishes positive rapport

3 Approaches in Retail Selling Merchandise Approach Method Salesperson comments or asks question about product that customer is looking at. Then make a statement about product’s features/benefits Notice their interests Usually the most effective approach - it focuses attention on merchandise

Chapter 13 Continued … Determining Needs 13.2 Step 2 of Sales Process: Determining Needs What is basis to determine needs When determine needs How to determine needs

What is basis of determining needs Directly related to buying motives Motives affect outcome Uncover reasons for wanting to buy

…Outcome When customer needs are satisfied: The business benefits The customer benefits The salesperson benefits Goals of selling and business are achieved

When to Determine Needs Salespeople should determine customer needs as soon as possible If you don’t determine needs, you could miss the sale Woman buying a tennis racquet Salesperson: “That racquet is perfect for you!” Woman: It’s for my 9 year-old daughter Needs and Motives tell you which products/features to focus on

Retail vs. B2B Needs Determination In Retail Selling, determine needs immediately after the Approach In B2B Selling, needs can be determined during the Preapproach In Both—continue to determine needs all throughout sales process

How to Determine Needs 3 methods to help determine customer needs: Observing Listening Questioning

Observing When observing, look for: Nonverbal Communications - Body language (examples: facial expressions, hand motions, eye movement) Shows mood and interest Other Details - How long customer looks at or holds product The key to observing is: proper selection of facts!

Listening Listen to what customer is actually saying – Helps you pick up clues to the customer’s needs To develop good listening skills, you must learn how to listen to and understand others…

Listening… Applying active listening to the sales process: Maintain good eye contact Provide verbal and nonverbal feedback Give customer your undivided attention Listen with empathy and an open mind Do not interrupt

Questioning In order to listen to customers, you must get them talking How? Ask questions (uncover needs/ buying motives, put customer at ease) To begin, ask questions about intended use or prior experience with product Build your questions around words like: who, what, when, where, how, and why

Do’s and Don’ts of Questioning Ask open-ended questions to encourage customers to talk (require more than a yes or no answer) Do ask clarifying questions to make sure you understand customer’s needs DON’T: Ask too many questions in a row Ask questions that might embarrass or put them on the defensive. (“How much do you want to spend?”)

Step 3 of the Sales Process: Presenting the Product Chapter 14.1… Step 3 of the Sales Process: Presenting the Product

Presenting – Show and Tell During this step, salespeople show/tell about product Based on buying motives, display products that match needs you uncover – consultative selling Goal: match customer’s needs with appropriate product features/benefits

Show and Tell: What Product(s) to Show Selection of product(s) is critical to “Product Presentation” Needs-based - Intended use Select a few items that match criteria

Show and Tell: What Price Range to Offer If you don’t know customer’s price range, or Don’t have enough info Begin with medium range product Move up/down price based on feedback

Show and Tell: How Many Product(s) Don’t overwhelm customer Show no more than 3 at a time If want to see more, put away some products

Show and Tell: What to Say Point out features and benefits Use features benefits chart Match buying motives Use descriptive adjectives and action verbs Avoid words like nice, fine, cool B2B vs. Retail: B2B – can use jargon – technical or industry-specific terms Retail – use layman’s terms – words typical customer can understand

Making the Presentation Come Alive Four Techniques: Displaying and handling the product Demonstrating product Using sales aids Involving customer

Presentation Technique: Displaying and Handling Creative display/handling is 1st step in an eye-catching presentation The way you handle a product presents an image of its quality Handle it with respect, and use hand gestures to show certain features

Opening Question How might you display and handle the following products:

Presentation Technique: Demonstrating Show how to use product Builds customer confidence What to show: How to use it Prove selling points

Presentation Technique: Sales Aids When impractical to demonstrate product Examples: Samples, reprints of magazine and newspaper articles, audio/visual aids, models, photographs, drawings, graphs, charts, spec-sheets, customer testimonials & warranty information Particularly important in B2B (e.g., PowerPoint or video)

Presentation Technique: Involve the Customer Get customer physically involved ASAP Appeal to customer’s senses (“try it on”) If customer is involved -> More intelligent buying decision If lose customer’s attention, regain it: Ask a question: “Now that you’ve seen the features, what do you think…”

DOs & DON’Ts of the Sales Approach in Other Cultures Gift Giving France – No wine, but a French gift Japan – gift from the US (brand name, wrapped) Mexico – No yellow flowers Belgium – No white mums Greeting & Handshake Arab & S. America - Light & long handshake US, Poland & Hungary – Firm and short handshake Japan – One handshake with a slight bow Singapore – Palm slide and bow Appointments France – Never before 10 am Spain – Not during siesta time Germany & Japan – Be on time US – Power breakfasts OK