Chapter 13 Initiating the Sale

7 Steps of the Sale 7 Steps of the Sale: Approach Determining Needs Presenting the Product Overcoming Objections Closing the Sale Suggestion Selling Relationship Building

Step 1 – The Approach The approach is critical because… Creates 1st impression of salesperson by customer Sets the mood for sales process Considered as the “key” to successful selling

Purposes of the Approach to begin conversation (be alert to customer interests) to establish rapport (don’t stereotype) to focus on the merchandise (determine buying style)

Timing the Approach Timing the approach is important… when customers are in an obvious hurry, approach them quickly when undecided, let them look around look for non-verbal cues always approach every customer w/in first 10 seconds

Approach in B-to-B Selling prior research (pre-approach) can make it easier to identify customer’s personal interests (can make approach easier than in retail)

3 Approach Methods (Retail) 1. Service Approach – asking customer if s/he needs assistance: “How can I help you?” OK when customer is in an obvious hurry

3 Approach Methods (cont.) 2. Greeting Approach – “Good morning!” “Hi, Mr. Schmoe, how are you today?” Establishes positive atmosphere Opens the lines of communication Good when customers appear to be “shopping” Follow this approach with a pause…wait for the customer to continue conversation

3 Approach Methods (cont.) 3. Merchandise Approach – a statement that focuses on the product a customer is looking at: “That IPod Classic can hold over 40,000 songs!” Excellent approach to get focused on the merchandise Use when customer is looking at a product Attempt this approach after allowing customer to browse following the “greeting” approach Most effective approach method

Step 2 – Determining Needs Involves finding customer’s reason for wanting to buy Should be done as early in the selling process as possible—immediately after the approach In B to B selling this is actually done during the pre-approach

3 Methods of Determining Needs (Qualifying the Customer) Observing—look for/interpret nonverbal communication—expressing one’s self without the use of words (i.e. length of time customer looks at product/display; avoid stereotyping!) Listening—eye contact; concentrate; don’t interrupt

3 Methods of Determining Needs 3 Methods of Determining Needs (cont.): 3. Questioning—ask open-ended questions—method for encouraging customers to converse ask clarifying questions don’t “cross-examine” the customer! don’t put customer “on the spot” NEVER ask the “dumbest” question a salesperson can ask... “How much are you looking to spend?”