5.03Summarize the sales process

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5.03 Summarize the sales process
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The Steps of the Sale

• Approach the customer.
• Determine needs.
• Present the product.
• Overcome objections.
• Close the sale.
• Suggestion sell.
• Build relationships.

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(1) The approach is

• The first encounter with a potential customer
• The initial approach depends on prior encounters
  with the customer.
• For example, with existing customers, the sales
  associate may comment on families, hobbies, or
  vacations. With new customers the salesperson
  could engage in small talk to develop a
  relationship with the customer.

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Four Approaches

• Service Approach
• Greeting Approach
• Merchandise Approach
• Combination Approach

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Service Approach

• The salesperson asks the customer if they need
  help.
• For example, May I help you find something
  today? This approach is most effective when the
  customer is in a hurry or when taking routine
  orders such as fast food.

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Greeting Approach

• The salesperson welcomes the customer to the
  store.
• For example, Good morning, or Welcome to
  Cicis! The salesperson should be upbeat,
  friendly, and smile.

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Merchandise Approach

• The salesperson comments on the product the
  customer is interested in. This approach is
  effective only if the customer is looking at
  something specific. The salesperson comments on
  the products features and benefits.
• For example, That video game is rated E for
  everyone, which means it does not contain harsh
  language or violence. This approach is most
  effective in retail sales because it focuses on
  the product.

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Combination Approach

• The salesperson uses two or three of the service,
  greeting, or merchandise approaches.
• For example, Hello, welcome to Hollister. We
  have a great sale on jeans today. May I help you
  find your size?

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(2) Determine consumer needs

• Determine customers reasons for buying
• The salesperson should focus on determining the
  customers needs as early as possible.

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Three Methods of Determining Needs

• Observing. Look for nonverbal communication
  clues that indicate the customers interest in
  the product.
• For example, hand motions, facial expressions,
  or eye movements.

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Three Methods of Determining Needs

• Listening. Helps pick up clues to the customers
  needs.

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Three Methods of Determining Needs

• Questioning and engaging the customer. Ask
  questions about how the customer wants to use the
  product or if the customer has any previous
  experience. Ask questions such as who, what,
  when, where, why, and how.

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• Once needs are determined, the salesperson can
  ask more specific, open-ended questions, which
  cannot be answered with a simple yes or no.

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(3) Product presentation time!

• What products do you show?
• How they will use the product?
• Show a medium-priced product first!
• Highlight the features and benefits

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Product presentation time!

• Display and handle the product
• Demonstrate the product
• Use sales aids
• Involve the customer
• Hold the customers attention

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How to handle objections

• Objection - A legitimate reason, doubt, or
  hesitation a customer has for not making a
  purchase.
• Excuse A reason a customer will not buy or
  speak to a salesperson. Excuses are used when
  customers are not interested in buying or when
  they are hiding other objections

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How to handle objections

• In retail situations, remain polite and suggest
  the customer look around. In B2B situations,
  simply leave a business card.

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Objections

• Objections may be based on one or a combination
  of
• Need
• For example, the customer says, I do not need a
  new bathing suit.
• Product. Design, ease of use, quality, color,
  size, or style.
• For example, the customer says, You do not have
  my size.
• Source. Related to past experiences with the
  company or product.
• For example, the customer says, The last time I
  bought a Speedo, it did not last more than one
  season.
• Price. Most common with expensive products.
• For example, the customer says, That is more
  than I am willing to pay.
• Time. Customers are leery about making a
  purchase on the spot. Objections based on time
  are often excuses.
• For example, the customer says, I am not ready
  to buy a new bathing suit now.

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Procedures for Handling Objections

• Listen carefully.
• Acknowledge the objection.
• Restate the objection.
• Answer the objection.

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Methods to handle objections

• Substitution
• Identify another product that would satisfy the
  customers needs.
• For example, the customer says The last time I
  used a twin blade razor, it cut my face. The
  salespersons response could be, Try the new
  four blade razor with enhanced microfins.

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Methods to handle objections

• Boomerang. Bring the objection back to the
  customer as a selling point. With this method,
  be careful not to sound condescending to the
  customer.
• For example, the customer may object because
  they had a bad experience with a product in the
  past. The salesperson could respond with, Im
  sorry you had a bad experience before however,
  our products have been reformatted based on
  customer feedback.

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Methods to handle objections

• Question. Ask the customer questions to learn
  more about the objection.
• For example, if the customer objects with, I
  dont see the need for fabric protection. The
  salesperson can respond with, Do you have small
  children?

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Methods to handle objections

• Superior-point. Offset the customer objections
  with the products features and benefits.
• For example, the customer objects about price.
  The salesperson can respond with, Yes this
  television is more expensive it is our top of
  the line model. You will think youre in a
  theater when you watch it and the sound is
  incredible.

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Methods to handle objections

• Denial. The customers objection is based on
  misinformation. This method is often in the form
  of a question.
• For example, the customer says, Are you sure
  these shoes will fit me? I have wide feet. The
  salesperson can respond with, Yes, these shoes
  are made with a durable, elastic fabric that
  contours to anyones foot.

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Methods to handle objections

• Demonstration. Seeing is believing.
• For example, allowing the customer to try to
  manipulate the product himself or herself, or
  giving the customer a sample to try.

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Methods to handle objections

• Third party. Uses customer or celebrity
  testimonials.
• For example, showing the customer advertisements
  featuring famous celebrities or sharing positive
  feedback from customers who have used the product.

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Time to Close

• Closing a sale Initiating and obtaining an
  agreement from the customer to purchase a
  product.
• Look for buying signals. What a customer says or
  does to indicate he/she is ready to buy.
• For example, watch for facial expressions, body
  language, and listen to comments.

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Time to Close

• Trial close. Test the readiness of the customer
  to buy.
• For example, Is this a gift for someone? May I
  take this to the counter for you?

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Time to Close

• Rules for closing the sale.
• Recognize closing opportunities. For example,
  the customer reaches for his/her wallet.
• Help customers make decisions. For example, the
  customer may need help deciding between two
  colors for a picture frame.
• Create ownership mentality. For example, use
  words such as you and your to convey
  ownership. You will enjoy driving this car on
  family vacations.
• Do not talk too much or rush the customer

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Methods for closing the sale

• Which
• Suggest the customer choose between two items.
• For example, Which do you prefer, the blue or
  the red?

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Methods for closing the sale

• Standing-room only.
• Used when there is a limited number of products
  in stock or when the price is expected to go up.
• For example, Im glad you like this make and
  model, though I cant promise it will be
  available if you come back tomorrow. Our sale
  ends at midnight.

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Methods for closing the sale

• Direct.
• Asking for the sale. This method is most
  effective when the buying signals are very
  strong.
• For example, Ok ladies, based on what Ive
  shown you today, what would you like to take home
  with you?

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Methods for closing the sale

• Service.
• Works best when handling obstacles or dilemmas.
  The salesperson should explain the services
  available that would solve the problem.
• For example, Our products are backed by a 100,
  money back guarantee. If you are not completely
  satisfied, simply return it.

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Suggestion selling is

• Selling additional goods to enhance the original
  purchase

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Suggestion Selling Methods

• Cross selling. Offering related merchandise.
• For example, the customer has committed to
  buying a pair of sneakers. The salesperson
  should suggest shoe cleaner.

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Suggestion Selling Methods

• Upselling. Recommending larger quantities of
  merchandise at a lower price.
• This method is most effective when the retail
  customer is purchasing inexpensive items, or when
  a B2B customer can take advantage of lower prices
  or special deals.

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Suggestion Selling Methods

• Special sales opportunities. The salesperson is
  obligated to inform the customer of special
  sales.
• In retail, customers appreciate knowing when to
  expect new merchandise. In B2B, show customers
  new products that are or will be available.

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How to maintain a relationship with the customer

• Order processing
• Departure
• Order fulfillment
• Follow-up
• Customer service
• Keeping a client file
• Evaluate sales efforts

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What is CRM?

• Customer Relationship Management
• Managing detailed information about individual
  customers and carefully managing customer
  preferences (or touch points) in order to
  maximize customer loyalty.

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CRM

• helps companies maintain and strengthen
  relationships.
• Maintain Contacts
• Maintain Relationships
• Develop Customer Loyalty
• Implement Reward Programs
• Implement Technology programs that maintains
  databases.