©2013 Liz Kislik Associates LLC Increasing Average Order Value April 2013 Operations Summit Liz Kislik, President, Liz Kislik Associates

©2013 Liz Kislik Associates LLC 22 What We’ll Cover Today Customers relationship and expectations What and how to offer How to work with reps Management, measurement, motivation 2

©2013 Liz Kislik Associates LLC It’s Harder Than It Used to Be Decision makers are over-trained Only testing will tell you 3

©2013 Liz Kislik Associates LLC 4 The more you ask from your customers, the greater your obligation to understand them.

©2013 Liz Kislik Associates LLC The Role of Impulse Consumers do pre-call planning 5

©2013 Liz Kislik Associates LLC Customers Can’t Stand Being… Pushed Slicked Taken for granted Treated mechanically 6

©2013 Liz Kislik Associates LLC 77 Understanding “No” When does it occur in the call? What is it a response to? 7

©2013 Liz Kislik Associates LLC Make Each Customer Special Customer history counts Phone only vs. multichannel Clear value proposition Clear service positioning 8

©2013 Liz Kislik Associates LLC Confirm Brand Image and Value Sell what you sell Reps must be credible 9

©2013 Liz Kislik Associates LLC Preparing Offers 10

©2013 Liz Kislik Associates LLC Picking Product Easy to picture and describe Low rate of return 11

©2013 Liz Kislik Associates LLC General Appeal vs. Customized Choices Enhances value of base product Hard to find Related to order or customer “Collaborative filtering” 12

©2013 Liz Kislik Associates LLC 13 ©2013 Liz Kislik Associates LLC Price Points Consider 1/3 of order total or item Not higher than highest single line 13

©2013 Liz Kislik Associates LLC To Discount or Not to Discount Avoid “training” customers 14

©2013 Liz Kislik Associates LLC 15 ©2013 Liz Kislik Associates LLC Discount Rationales Discount eligibility Order size Purchase history Our mistake; your benefit Overstocks and liquidations Manufacturing/purchasing efficiency 15

©2013 Liz Kislik Associates LLC Shipping & Handling Barrier to purchase Seems like manipulation Make S&H the “special” 16

©2013 Liz Kislik Associates LLC 17 ©2013 Liz Kislik Associates LLC Offer Structures That Work Permission, not Product Product A vs. B Diminishing Value 17

©2013 Liz Kislik Associates LLC Getting Your Reps on Board 18

©2013 Liz Kislik Associates LLC It’s Ok to Sell AND 100% Offering is Fiction 19

©2013 Liz Kislik Associates LLC Reasons Not to Offer Product? Customer history? Customer circumstance? 20

©2013 Liz Kislik Associates LLC When to Call it Quits Not until “No” Maximum of two 21

©2013 Liz Kislik Associates LLC Helping Customers “See” Bring customers to the page or screen Put people in the picture 22

©2013 Liz Kislik Associates LLC 23 ©2013 Liz Kislik Associates LLC Coaching after Observation Individual Concrete Include language practice 23

©2013 Liz Kislik Associates LLC The Supervisor’s Role(s) Trainer? Sales Coach? Enforcer? 24

©2013 Liz Kislik Associates LLC 25 ©2013 Liz Kislik Associates LLC Training Tips Group by skill or tenure Have the product present Practice language 25

©2013 Liz Kislik Associates LLC Management, Measurement, and Pay 26

©2013 Liz Kislik Associates LLC Typical Organizational Structures Ops in charge; Merchants supply produce Merchants in charge; Ops implements Sales/Marketing in charge 27

©2013 Liz Kislik Associates LLC Systems Requirements for Reps Offer prompts Flags for “no offer” Detailed product info Subtotals 28

©2013 Liz Kislik Associates LLC 29 ©2013 Liz Kislik Associates LLC Components of Metrics and Tracking Offers Orders Items Dollars 29

©2013 Liz Kislik Associates LLC Reporting Rates and Trends Conversion Returns By subgroup 30

©2013 Liz Kislik Associates LLC Setting Achievable Targets Reality testing Raise the bar over time Quantity plus quality 31

©2013 Liz Kislik Associates LLC Paying for Performance Variable comp complicates life Set baseline first Choose incentive targets carefully 32

©2013 Liz Kislik Associates LLC Pay that Motivates Is easy to calculate Has rhythm and pace 33

©2013 Liz Kislik Associates LLC 34 ©2013 Liz Kislik Associates LLC Things to Watch Stockouts Skipping offers during high volume periods Gaming the system 34

©2013 Liz Kislik Associates LLC Successful selling and lifetime value rely on good relationships 35

©2013 Liz Kislik Associates LLC 36 Twitter: Newsletter: Workplace WisdomWorkplace Wisdom Blog: Workplace WisdomWorkplace Wisdom Phone: