1. Closing Begins the Relationship Chapter 12 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 12-2 Main Topics  The Tree of Business Life: Closing  When Should I Pop the Question?  Reading Buying Signals  What Makes a Good Closer?  How Many Times Should You Close?  Closing Under Fire  Difficulties With Closing  Essentials of Closing Sales 12 Chapter

3. 12-3 Main Topics  Prepare Several Closing Techniques  Prepare a Multiple-Close Sequence  Close Based on the Situation  Research Reinforces These Sales Success Strategies  Keys to Improved Selling  The Business Proposition and the Close  Closing Begins the Relationship  When You Do Not Make the Sale 12 Chapter

4. 12-4 The Tree of Business Life: Closing The Golden Rule Guided by The Golden Rule:  Look for buying signals.  Be confident in your suggested order.  Prepare several closes for each call.  Do not take “No” personally.  Remember that a successful close begins your relationship.  You now prove your value with ethical service and your new relationship. I T C Ethical Service Builds T r u e Relationships T TT TTTT TTTT

5. 12-5 Closing  Remember to do what’s best for the customer.  Ask yourself, “Should they buy this?” If the answer is no, tell them you don’t think they really need the product.  If the buyer still wants to buy, let the Golden Rule be your guide.

6. 12-6 When Should I Pop the Question?  Closing is the process of helping people make a decision that will benefit them.  There are no magic phrases and techniques to use in closing a sale.  Close when the prospect is in the _____?___ stage of the mental buying process.

7. 12-7 When Should I Pop the Question?  Closing is the process of helping people make a decision that will benefit them.  There are no magic phrases and techniques to use in closing a sale.  Close when the prospect is in the conviction stage of the mental buying process.

8. 12-8 Before You Close, What Should Be Done? Ask a trial close

9. 12-9 Why Ask a Trial Close Before You Close?  To determine if the prospect is ready to buy, and  To determine if there are:  Objections  Questions

10. 12-10 Let’s Review! When Is It Time to Use a Trial Close?*  After making a strong selling point in the presentation  After the presentation but before the close  After answering an objection  Immediately before you move to close the sale

11. 12-11 Let’s Review! What Does the Trial Close Allow You to Determine?  Whether the prospect likes your product’s FAB – the strong selling point  Whether you have successfully answered the objection  Whether any objections remain  Whether the prospect is ready for you to close the sale

12. 12-12 If Objection Arises After the Close* Prospect raises an objection Response to the objection Use a trial close Move into your presentation Close the sale

13. 12-13 Presentation Discuss Product Present Marketing Plan Explain Business Proposition Suggest Purchase Selling Process Buyer’s Mental Steps Prospecting Preapproach Follow-up & Service Approach Presentation Trial Close Determine Objections Meet Objections Desire Conviction Present Marketing Plan Availability, Delivery, Guarantee, Merchandising, Installation, Maintenance, Promotion, Training, Warranty Explain Business Prop List Price, Shipping Cost, Discounts, Financing, ROI, Value Analysis Suggest Purchase Product, Quantity, Features, Delivery, Installation, Price Money Authority Desire Action (Purchase) Attention Discussion Sequence Discuss Product Show Feature Explain Advantage Lead into Benefit Let Customer Talk Interest Trial Close Close The Parallel Dimensions of Selling*

14. 12-14 Exhibit 12-1: When Is It Time To Close?

15. 12-15 When is it time to close? Close When the Prospect Is Ready

16. 12-16 Reading Buying Signals  A buying signal is anything that a prospect says or does to indicate that he is ready to buy:  Asking questions  Asking another person’s opinion  Relaxing and becoming friendly  Pulling out a purchase order form  Carefully examining merchandise

17. 12-17 Exhibit 12-2: Answering a Prospect’s Buying Signal Question with a Question

18. 12-18 Exhibit 12-3: The Moving Selling Process  A positive response to the trial close indicates a move toward the close.  A negative response means return to your presentation or determine the prospect’s objections.

19. 12-19 What Makes a Good Closer?  Have strong desire to close each sale  Have positive attitude  Know their customers  Tailor presentations to meet each one’s specific needs  Spend time preparing  Are alert  ABC  Do not stop on first “no”

20. 12-20 What Makes a Good Closer?  Ask for the order, and…be quiet (Shhhhhh)!  Must put prospect in position of having to:  Make a decision  Speak first  Respond to the close  Get the order, and…move on  Continuing to talk, may give information that changes buyer’s mind

21. 12-21 How Many Times Should You Close?  You must be able to use multiple closes.  ___________closes is a minimum.  You will learn how without being pushy Three to five 1 2 3 ? ? ?

22. 12-22 Closing Under Fire  The first “no” from the prospect isn’t necessarily an absolute refusal to buy.

23. 12-23 Closing Under Fire  You must be able to ask a prospect, who may be in a bad mood or may appear hostile toward you, to buy

24. 12-24 Difficulties With Closing  Closing is the easiest part of the presentation.  Salespeople may fail to close because:  They are not confident in their abilities to close.  They determine that the prospect does not need the quantity or type of merchandise or that the prospect should not buy.  They may not have worked hard enough to develop a customer profile and customer benefit plan.

25. 12-25 Essentials of Closing Sales  Be sure your prospect understands what you say  Always present a complete story to ensure understanding  Tailor your close to each prospect (80/20 Rule)  Everything you do and say should consider the customer’s point of view  Never stop at the first “no”  Learn to recognize buying signals

26. 12-26 Essentials of Closing Sales, cont…  Before you close, attempt a trial close.  After asking for the order – be silent.  Set high goals for yourself and develop a personal commitment to reach your goals.  Develop and maintain a positive, confident, and enthusiastic attitude toward yourself, your products, your prospects, and your close.

27. 12-27 Exhibit 12-5: Twelve Keys to a Successful Closing

28. 12-28 Twelve Keys to a Successful Closing The Last Key to Successful Closing is to: “Leave the Door Open. Act as a Professional.” How Can That Be Done?

29. 12-29 Essentials of Closing Sales, cont…  Always place the customer’s needs first.  Treat a customer as you would your grandmother.

30. 12-30 Essentials of Closing Sales, cont…  Be a person of character, integrity, and trustworthiness.  If your product will help the person, then you will be back another day.

31. 12-31 Prepare Several Closing Techniques  Be able to adapt your planned presentation to any prospect or situation that arises  Determine your prospect’s situation.  Understand your prospect’s attitude toward your presentation.  Be prepared to select instantly a closing technique based on your prospect.

32. 12-32 Exhibit 12-7: Techniques for Closing the Sale: Which Close Should Be Used?

33. 12-33 Prepare Several Closing Techniques, cont…  The alternative-choice close is an old favorite.  The assumptive close assumes the prospect will buy.  The compliment close inflates the ego.  The summary-of-benefits close is most popular.  The continuous-yes close generates positive responses  The minor-points close is not threatening.  The T-account or balance sheet close was Ben Franklin’s favorite.

34. 12-34  The standing-room-only close gets action  The probability close  The negotiation close  The technology close Prepare Several Closing Techniques, cont… Skip videoVideo Help 0-50%? 50-85%? 85-100%?

35. 12-35 Example: “Would you prefer the Xerox 6200 or 6400 copier?” 1. The Alternative-Choice Close is an Old Favorite  “Would you prefer the Xerox 6200 or 6400 copier?”  Study this question – it assumes:  The customer has a desire to buy one of the copiers.  The customer will buy.  It allows the customer a preference.  It provides a choice between products, not between a product and nothing.  By presenting a choice, you receive a “yes” decision or uncover objections.

36. 12-36 Example: “Would you prefer the Xerox 6200 or 6400 copier?”, cont…  “I’m not sure,” says the customer (still in the desire stage).  Continue with your FABs.

37. 12-37  If you see the customer likes both 6200 and 6400 and appears indecisive, you can ask:  “Is there something you are unsure of?”  This question probes to find out why your prospect is not ready to choose. Example: “Would you prefer the Xerox 6200 or 6400 copier?”, cont…

38. 12-38 Prepare Several Closing Techniques 2. Assumptive Close – assumes the prospect will buy 2. “I’ll call your order in tonight.”, or “I’ll have it shipped to you tomorrow.” 3. Compliment Close – by complimenting them, you get them to listen and respond favorably to your presentation

39. 12-39 Prepare Several Closing Techniques 2. Summary of Benefits Close – summarize the product’s benefits in a positive manner so that the prospect agrees with what you are saying; then ask for the order 1) Three basic steps 2) Determine key benefits that interest prospect during presentation 3) Summarize these benefits 4) Make a proposal 3. Continuous-yes Close – like summary close; instead of summarizing benefits, develop a series of benefit questions which prospect must answer

40. 12-40 Prepare Several Closing Techniques 6. Minor-points Close – similar to alternative choice close; except it asks prospect to make a low-risk decision on a minor, usually low-cost element of a single product such as delivery dates, optimal features, etc. 7. T-account or Balance Sheet Close – based on the process people go through when making a decision; weighing cons against pros. Same as debit and credits, act or no act, etc. Modified T – only lists reasons to buy (Continuous. 8. Standing Room Only Close – indicate if they do not act now, they may not be able to buy in the future – should only be used in complete honesty

41. 12-41 Prepare Several Closing Techniques 6. Probability Close – ask prospects who are delaying what the probability of doing business at a later time is. This permits prospects to focus on and discover own hidden objections. Three categories of prospect’s response 1. More than 50% but less than 85% for buying 2. More than 85% but less than 100% for buying 3. Les than 50% for buying

42. 12-42 Prepare Several Closing Techniques 10. Negotiation Close – finds ways for everyone to have a fair share 11. Technology Close – incorporates appropriate technology to close sale.

43. 12-43 There are Eleven Closing Techniques in This Chapter, Each:  Is different  Can be used with other closing techniques  Helps you be a better communicator  Helps you better serve others  Should be carefully studied

44. 12-44 Which Closing Technique Should I Use?* * To answer that question you should first: 1. Determine your approach 2. Create your presentation, then 3. Determine how best to close

45. 12-45 Assume You Have Completed Your Presentation and are Getting Ready to Close  You remember to use a trial close before you ask the person to buy – if objections or questions arise, what phase of the prospect’s mental steps is the buyer probably in? (Choose one)  Attention  Interest  Desire  Conviction  Purchase

46. 12-46  The buyer is in the desire stage.  Which stage should the buyer be in before you close? (Choose One)  Attention  Interest  Desire  Conviction  Purchase Assume You Have Completed Your Presentation and are Getting Ready to Close, cont…

47. 12-47  Ideally, the salesperson should wait for signs that the person is in the conviction stage because a buyer in this stage typically:  Has a strong conviction that you can be trusted  Feels the product will fulfill needs or solve problems  Will reveal real concerns due to trust Assume You Have Completed Your Presentation and are Getting Ready to Close, cont…

48. 12-48 If You Close and Receive an Objection, What Should You Do? Find out what the objection is.

49. 12-49 After You Find Out What the Objection Is and Answer It, What Should You Do Next? Ask a trial close to determine if you have overcome the objection.

50. 12-50 If You Have Closed, Had an Objection Arise and Effectively Handled the Objection, What Should You Do Next?  Close again!  This is why you need a multiple-closing sequence.

51. 12-51 Prepare a Multiple-Close Sequence  Different closing techniques work best for certain situations.  Multiple closes incorporate techniques for overcoming objections.

52. 12-52 Prepare a Multiple-Close Sequence, cont…  By keeping several closes ready in any situation, you are in a better position to close more sales.  Multiple closes incorporate techniques for overcoming objections.

53. 12-53 Exhibit 12-9a: Multiple Closes Incorporating Techniques for Overcoming Objections

54. 12-54 Exhibit 12-9b: Multiple Closes Incorporating Techniques for Overcoming Objections

55. 12-55 Close Based on the Situation  Different closing techniques work best for certain situations:  Customer is indecisive  Customer is an expert or egotistical  Customer is hostile  Customer is a friend  Customer has predetermined beliefs  Customer is greedy, wants a deal

56. 12-56 Exhibit 12-10: Examples of Closing Techniques Based on Situations

57. 12-57 Research Reinforces These Sales Success Strategies  Common salesperson mistakes resulting in unsuccessful sales calls:  Tells instead of sells, doesn’t ask enough questions  Over-controls the call, asks too many closed-end questions  Doesn’t respond to customer needs with benefits  Doesn’t recognize needs, gives benefits prematurely  Doesn’t recognize or handle negative attitudes effectively  Makes weak closing statements, doesn’t recognize when or how to close

58. 12-58 Keys to Improved Selling  Ask questions to gather information and uncover needs.  Recognize when a customer has a real need and how the benefits of the product or service can satisfy it.  Establish a balanced dialogue with customers.  Recognize and handle negative customer attitudes promptly and directly.  Use a benefit summary and an action plan requiring commitment when closing.

59. 12-59 The Business Proposition and the Close  The Business Proposition  Chap 5 – costs, markups, ROI, etc.  Follows FABs and Marketing Plan  Use a visual aid to close

60. 12-60 Closing Begins the Relationship  When you make a sale, you change the person or organization from a prospect to a customer.  You have helped the customer  Now, how do you earn the opportunity to sell the customer in the future?  Make sure you have followed the Golden Rule in selling the correct product and providing exceptional service

61. 12-61  Know that you cannot always sell everyone.  Don’t take buyer’s denial personally.  Be courteous and cheerful. When You Do Not Make the Sale, Exhibit 12-12

62. 12-62  Act as a professional  An adult sales- person  Leave the door open. When You Do Not Make the Sale, Exhibit 12-12

63. 12-63 If After Your Presentation You Received a Positive Response to Your Trial Close, What Would You Do?* Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close

64. 12-64 If After Your Presentation You Received a Negative Response to Your Trial Close, What Would You Do?* Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close

65. 12-65 If After You Meet the Objection You Received a Positive Response to Your Trial Close, What Would You Do?* Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close

66. 12-66 Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close If After You Meet the Objection You Received a Negative Response to Your Trial Close, What Would You Do?*

67. 12-67 Approach Presentation Trial Close Determine Objections Meet Objections Trial Close Close If After You Close You Receive a Negative Response, What Would You Do?*

68. 12-68 Summary of Major Selling Issues  Be prepared to logically and clearly respond to your prospect’s objections.  Basic points to consider in meeting objections:  Plan for them  Anticipate and forestall them  Handle them as they arise  Listen to what is said  Respond warmly and positively  Make sure you understand  Respond using an effective communication technique

69. 12-69 Summary of Major Selling Issues, cont…  Objections are classified as hidden, stalling, no- need, money, product, and source.  Objections help you determine if you are on the right track to uncover prospects’ needs and if they believe your product will fulfill those needs.  Objections show inadequacies in a salesperson’s presentation or product knowledge.  Closing is the process of helping people make decisions that will benefit them.  Constantly look and listen for buying signals from your prospect.

70. 12-70  Tailor your close to each prospect’s personality.  Close in a positive, confident, and enthusiastic manner.  Plan and rehearse closing techniques.  A good closer has a strong desire to close each sale.  Stay cool, determine any objections, try to close again.  You can’t make a sale until you ask for the order! Summary of Major Selling Issues, cont…

71. End of Chapter 12 Chapter 12 McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.