Determine Customer Needs & Overcoming Objections Marketing 2.09

Sales Process Preapproach Approach Prepare for the Sale prior to meeting customer Approach Approaching the customer Determining needs Presenting the product Overcoming objections Closing the sale Suggestion selling Relationship building

Buying Motives Buying Motive Definition Rational A buying motive that is based off of sound judgment. Occurs from factors such as the economy, utility, comfort, convenience, durability, & security. Emotional A buying motive based on feelings or passions. Purchasing something based on feelings. Pride, Vanity, Jealousy, Fashion, Habits, Comfort, Love, Praise, Curiosity, Fear, Romance Patronage Consumer has a certain reason to support a store or a specific brand. Superior service, product selection, better sales force

Three Types of Customers There are three types of customers Decided Customer knows what they want to buy Can be identified by the way they walk, expression in their eyes / face, & tone of voice Undecided Customer doesn’t know what they want to buy Salesperson helps them make up their mind Just-looking Most difficult customer to sell to Can be decided or undecided but don’t want salesperson assistance

The Approach in Retail Selling If customer is in a hurry, approach them quickly. If customer is undecided, let them look around. Encourage customers to ask questions.

Approaching the Customer Service Approach: The salesperson will ask the customer if they need assistance “May I help you with something?” “How may I help you?” Greeting Approach Simply welcome a customer to the store Can be formal or informal “Good Morning” “Good Afternoon” Merchandise Approach Can only be used when a customer is stopped and looking at a specific product Ex: “Is that the size you need?” Ex: “Are you interested in a specific color?” http://www.youtube.com/watch?v=5Dr6V8pfGwI

Warm-Up By what will the emphasis put on each phase of the selling process vary most significantly? State and local laws Economic Conditions Product and client Geographic area

Determining the Customer Needs 3 Methods

A salesperson’s focus should be to determine the CUSTOMER’S NEEDS as EARLY in the sales process as possible Upselling http://www.youtube.com/watch?v=CRlt5BzFz4E&list=PL876C3DF9B0B6C2C5 Pink Slime http://www.youtube.com/watch?v=dCqKl4Q3hW4 Food Facts http://youtu.be/jXJSmxi2buc Racial Profiling http://www.youtube.com/watch?v=zMtQaVTkRl4

Determine Customer Needs Method #1 Observing Look for non-verbal cues Is the customer holding the merchandise, looking around like they need help, etc… Looking for the customer to be interested in product Mystery Shopper Video http://www.youtube.com/watch?v=FeQ3WDhF6wo http://www.youtube.com/watch?v=xSsszDVuGcs

Determine Customer Needs Method #2: Listening Give the customer your undivided attention, don’t interrupt, & provide feedback Listen for cues to wants & needs http://www.youtube.com/watch?v=OrxvmM5aUzY

How to determine needs cont. Method #3: Questioning Ask open-ended questions to encourage customers to talk Ask clarifying questions to make sure you understand customers’ needs Don’t ask too many questions in a row Don’t ask embarrassing questions

Present the Product

Sales Process Preapproach Approach Approaching the customer Determining needs Presenting the product Overcoming objections Closing the sale Suggestion selling Relationship building

Product Presentation Which Products to Show What Price Range to offer After determining customer needs, select products that match those needs What Price Range to offer Avoid focusing on the price at the start Begin by showing a medium priced product, you can move up or down with feedback.

Product Presentation How many products to show What to say Show no more than three products at a time to avoid overwhelming the customer What to say Talk about product’s features and benefits. Avoid jargon or using unclear or vague words Ex: nice, pretty, & fine Don’t use slang or double meaning phrases Ex: “You look cool in that suit”

How can you make your presentation come alive? Displaying and Handling the Product Creatively display Handle product with respect Demonstrating Demonstrate how product is used Demonstrate features Using Sales Aids Use aids when impractical to demonstrate actual product Samples, articles, graphs, charts, testimonies, warranty, etc…. Involving the Customer If possible, get customer physically involved (hold it, smell it, taste it, use it., etc) Have them use try on the shoes, swing the golf clubs, etc…

Sales Process Preapproach Approach Approaching the customer Determining needs Presenting the product Overcoming objections Closing the sale Suggestion selling Relationship building

Overcoming the Objection

Objection What is an objection? Concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase. Should be viewed positively by a salesperson because it gives you the opportunity to explain more

Excuses What are Excuses? Insincere reasons for not buying or not seeing the salesperson. Commonly used when they are not in the mood to buy a product

Five Common Objections Need “Do I really need this product?” Product Concerns with color, size, style Source Past experience with product or brand “My mother really did not like GE appliances. She said that they are poor quality.” Price More than the customer wants to spend Time “I think I will just wait until next month when the product is on sale”

Specialized methods for handling objections…. Substitution Method Boomerang Question Superior point Denial Demonstration Third party

Assignment Working in your sales groups (3-4 students). You will be assigned a method for overcoming objections. The group will create a skit that will be performed in front of the class. Every student must have a speaking part. Props can and should be used where appropriate. Explain what your method is and then demonstrate it From watching the skit, the class should be able to effectively learn the method the salesperson is using to overcome the objection. You can use this example as your video / role play grade from sales project

Steps of a Sale Approaching the customer Determining needs Presenting the product Overcoming objections Closing the sale Suggestion selling Relationship building Meeting Your Customer. Customers are the most important people to your business. As a salesperson, you want to make them feel welcome. An alert salesperson will give prompt, courteous attention to customers. When a salesperson meets potential customer, the salesperson should determine the best way to help the customer buy. Customers are predictable. They are either decided customers, undecided customers, or just-looking customers.

Sales Process Closing the Sale Obtaining a positive agreement from the customer to BUY!

Timing The Close Buying Signals are the things a customer does to indicate readiness to buy Facial expressions Body Language Trying on Clothes Holding merchandise

General Rules for Closing A Sale Recognize closing opportunities Help customers make a decision Stop showing additional merchandise Creates confusion Narrow selection Explain advantages or disadvantages of item being considered Create an ownership mentality Don’t talk too much or rush the customer

Closing the Sale As soon as you recognize a buying signal, attempt to close the sale There are multiple ways to close a sale Which Standing Room-Only Direct Service

Closing the Sale Which Close: encourages a customer to make a decision between two items. Review benefits of each item and ask….. “Which one do you prefer? The red or the blue one?”

Closing the Sale Standing-Room-Only “SRO” : When a product is in short supply or when price will be going up “I’m sorry, but I can’t promise that I can make this same offer tomorrow”

Closing The Sale DIRECT Close: Directly ask for the sale Used when buying signals are very strong “Can I assume that we’re ready to discuss the details of your order.” “Would you like to pay with a credit card or cash?”

Closing The Sale SERVICE Close Explain services that overcome obstacles Gift wrapping Return policy Warranties Guarantees Terms of the Sale

Closing the Sale Suggestion Selling: Selling additional goods or services to the customer Benefits the company, customer, & employee Occurs after the customer has made a commitment to buy, but before payment is made. Don’t load customer with unneeded items

Closing the Sale Ways to suggestive sell.... Make the suggestion definite Don’t ask, “Will this be all?” Instead say, “This oil is recommended by the manufacturer.” Show the item you are suggesting Put complimentary items near each other “This purse matches your shoes perfectly.”

Suggestion Selling Cross Selling Offer Related Merchandise Person buys a golf club, suggest golf balls Buys shoes, suggest socks Up-Selling Recommend larger quantities “If you buy 2, you get 1 free” “Would you like to supersize that meal?” Special Sales Opportunities Point out other sales that the customer may be interested in Buying pants, mention sale on shoes

Relationship Marketing Customer Relationship Marketing (CRM): After Sale Activities to develop customer relationships Nurture customer relationship Keep customers informed about sales and news Goal is to obtain customer loyalty

CRM Follow-up Customer service Keeping a client file Ensure satisfaction, call, card, email Common on large purchases or online shopping Customer service Handle inquiries and complaints, keep customers satisfies Keeping a client file Useful info. for future reference Evaluate sales efforts What went well?, What can be improved?

Video / Role Play Approach Customer Greeting: Service, Greeting, Merchandise Determine needs: Listen, Observe, Question Present the Product: Find a few they may like Overcome Objection: List objection / concern Use all 7 methods to overcome individually to overcome it

Warm-up Speaking in __________ means you are using words the average customer can understand. Paraphrasing Layman’s Terms Tongues Jargon

Sales Process Preapproach Approach Approaching the customer Determining needs Presenting the product Overcoming objections Closing the sale Suggestion selling Relationship building

Agenda Sales Process In your groups think of a sales situation where you can act out a sales scene Retail Door-to-Door Telemarketing Break up the project so that all members of your group are working You will act out the script once done

Answer the following questions based on the sales approach used Kid Salesman Video Answer the following questions based on the sales approach used http://www.youtube.com/watch?v=hxCHEJSHOBE What type of greeting did he use? What method was used to determine customer needs? What closing technique best describes the kid salesman’s approach to closing the sale?

Product Knowledge Greeting Macy’s http://www.youtube.com/watch?v=yaSAAOGOP-E Greeting http://www.youtube.com/watch?v=rLywQ7e6CZI Macy’s http://www.youtube.com/watch?v=3KMW31Boruc