suggestive sales for retailers daa seminar aug 2011
DESCRIPTION
Suggestive selling is good for customers and the bottom line. It takes many forms and can be used in any customer interaction — phone, Internet (social Media), and in person as well as through advertising. There is a basic process to follow and some areas in which suggestive selling experts disagree. The key is to have a process that is logical, meets the needs of your Platinum Profile™ customer, and helps the store's profitability.TRANSCRIPT
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Suggestive SellingWith Jan Triplett, Ph.D.
CEO, Business Success Center#DAA Suggestive Sales
© Business Success Center, Austin, TX 2011 All rights reserved.
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Your Passion, BSC’s Expertise
Our Mission: to help you find your way Sales, marketing, & financial management focus
Providing guided growth strategy to achieve success since 1982
Clients include hospitality, retail, manufacturing & professional services
© Business Success Center, Austin, TX 2011 All rights reserved.
© Business Success Center, Austin, TX 2011 All rights reserved.
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Your Focus?
Mostly B to C?
Some B to B?
Better to be P to P
.)(. (Belly Button to Belly Button)
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Think FARR, Go Far
1. Find
2. Acquire
3. Reinforce
4. Retain
THE BEST CUSTOMERS© Business Success Center, Austin, TX 2011 All rights reserved.
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Marketing Defined “The purpose of
business is to create a customer. Marketing is the distinguishing, unique function of the business. It is everything seen from the point of view of the customer.”
© Business Success Center, Austin, TX 2011 All rights reserved.
-Peter Drucker, Mgmt “Guru”
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Dairy Queen
© Business Success Center, Austin, TX 2011 All rights reserved.
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Term to know: AOVAs acquisition costs rise, businesses are using
cross-selling to increase average order value (AOV) and
revenues. © Business Success Center, Austin, TX 2011 All rights reserved.
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What is Suggestive Selling About?
Profit
Image
Positioning
Demonstrating you were right
Recouping your investment
Service to customers
Making things better ; telling the
truth about the good & bad
(creating a better experience)© Business Success Center, Austin, TX 2011 All rights reserved.
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2 Kinds of Suggestive Sales
Cross Selling Selling other
products to a customer who has purchased or is about to make a purchase
Example: Original purchase
: Shoes Cross sell: Belt or
socks
Upselling Selling higher grade
of a product or service
ExampleOriginal planned
purchase: Coach airplane ticket
Upsell: 1st class
© Business Success Center, Austin, TX 2011 All rights reserved.
Combo of logic and customer behavior, respects privacy and does not invade security of customer.
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Natural Groupings of Suggested Items
© Business Success Center, Austin, TX 2011 All rights reserved.
Upsell: Competing Products (This better than that)Cross Sell: Complementary – Meant to be sold together Family — From same manufacturer, same line Accessory — Add value to the original item; not really intended to be sold separately Higher conversion if: easy to purchase, integrates smoothly with the rest of the purchase, shows intelligent choice of recommendation (not way-out), exclusive offer
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Fill in the blankHamburger &
Beer &
Shoes &
Crackers &
Ice cream &
Watches need
Flowers need
© Business Success Center, Austin, TX 2011 All rights reserved.
© Business Success Center, Austin, TX 2011 All rights reserved.
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Agree or Disagree Your best customers don’t
like staff to comment or make recommendations.
Suggestive selling should only take place after the customer has committed to a purchase.
Upsell recommendations should only be for things that are a lower price than the original purchase.
Never make more than one suggestion at a time.
Suggestions should be timely.
Suggestions may need to be relevant to the seasons.
Suggestions should be repeated to ensure the customer gets the message.
Suggestions should be relevant & the same for all customers.
Suggestions should be in line with local or cultural tastes/interests.
It’s more effective when it’s based on customer data and previous choices.
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Good & Bad of Suggestive Selling
Good Bad
© Business Success Center, Austin, TX 2011 All rights reserved.
© Business Success Center, Austin, TX 2011 All rights reserved.
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How Successful Are You Now?
How do you suggestive sell now?
How well does it work?
Why? Why not?
What would you like to change?
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What Customer Values Suggestions?
Who Do You Want?
Platinum Gold Silver
Bronze Lead Concrete/Radio Active Waste
© Business Success Center, Austin, TX 2011 All rights reserved.
Platinum & Gold — create stabilitySilver — has potentialBronze — uncertainLead — a time wasterConcrete — a business killer & never satisfiedRadio Active Waste a long-lasting reputation & confidence destroyer
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Platinum Profile™ Customers Value
Suggestions…
© Business Success Center, Austin, TX 2011 All rights reserved.
They areVisionaryAdventurousDecisive
They trustThemselvesYou
They expectYou to give them your extra best
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Must Take Into Consideration “Shopper Marketing”
Assumes shopper and consumer are not the same
Marketing aimed at shopper instead
70% of brand selections made at the store; 70% don’t know what they want to order until they are at the restaurant.
68% of buying decisions unplanned
25% of shoppers consider price less important than time.
20% of shoppers are price-driven.
© Business Success Center, Austin, TX 2011 All rights reserved.
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What Do Your Customers Want?
© Business Success Center, Austin, TX 2011 All rights reserved.
More than a solution or something fixed.
One of 6 Situational Outcomes™ they value.
Reduction, Elimination, Prevention, Create Opportunity, Use Opportunity, Status Quo
There are 5 personal risks they are willing to take to get what they value at the price charged:
Social, Psychological, Functional, Physical, Financial
Provide suggestions based on your ability to deliver that outcome and reduce their risk.
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How Buyers Want to Buy1. Consider what they are doing/buying currently
2. Determine the need to act
3. Set an overall goal
4. Identify inflexible constraints, desirable objectives; set priorities
5. Evaluate means to get what they want
6. Make a purchase
7. Rejoice or experience remorse
© Business Success Center, Austin, TX 2011 All rights reserved.
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2 Sides to a Sale
SellerGoal: Profit
Mission: Provide a good product or service at a good price to great customers.
BuyerGoal: Outcome
Mission: Get a good product or service that meets a desire at a good value from a great vendor.
© Business Success Center, Austin, TX 2011 All rights reserved.
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What Would You Rather Be?
© Business Success Center, Austin, TX 2011 All rights reserved.
Order Taker
Advocate
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Whataburger
© Business Success Center, Austin, TX 2011 All rights reserved.
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What Do You Know Your Customers Don’t?
© Business Success Center, Austin, TX 2011 All rights reserved.
•The products you sell
•What goes better with what
Suggestive selling is also sometimes called upselling or add on selling.
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It’s Easy
© Business Success Center, Austin, TX 2011 All rights reserved.
• If you know enough
• If you care enough about the customer and the products in your store
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When Can You Use It? In any customer contact direct or
indirect. Phone, Internet, in person.
© Business Success Center, Austin, TX 2011 All rights reserved.
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Amazon.com Suggestive Selling
© Business Success Center, Austin, TX 2011 All rights reserved.
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Examples
© Business Success Center, Austin, TX 2011 All rights reserved.
Front windowEnd capsDisplaysWeb sites Social media Sales encounters
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General ProcessKnow your product
Know availability
Know alternatives
Know your customer
Ask questions
Listen
Analyze what you hear, then suggest
© Business Success Center, Austin, TX 2011 All rights reserved.
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Make Suggestions to Match Your Customer’s Attitude
© Business Success Center, Austin, TX 2011 All rights reserved.
Positive — Seeking Opportunity
Negative — Been Burned, Dissatisfied
Status Quo — Maintenance, Same as I bought elsewhere
Saves them money, effort, and lets them experiment safely, knowledgeably, & confidently.
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Best Practices in Suggestive Selling
Increase satisfaction and amount spent. What else is on your list?
© Business Success Center, Austin, TX 2011 All rights reserved.
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Amazon and Apple Suggestive Selling
© Business Success Center, Austin, TX 2011 All rights reserved.
Interspire Software
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Worst Practices inSuggestive Selling
• Undervaluing your benefits.
• Under-estimating costs.
• Not knowing your customer.
What else?© Business Success Center, Austin, TX 2011 All rights reserved.
33©Business Success Center., Austin, TX 2011. All rights reserved.
It added up in 2010: 332 billion coupons (largest ever) 87% of coupons were inserts; 5.2% handed out in stores; 37% increase in online coupons; Shoppers saved $3.7 billion.
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Loyalty Program
CRM program
Suggestive selling/ package deals
Go Local Card
Special recognition of your Platinum customers
Getting more from each sale
©Business Success Center, Austin, TX 2011. All rights reserved.
Alternatives to the Daily Deal
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Homework
© Business Success Center, Austin, TX 2011 All rights reserved.
1. Examine your current suggestive selling process. Does everyone know how and when to use it? If not, retrain.
2. Make sure staff know how to determine what to upsell with what and to whom. Make lists if necessary and train. Get ideas from staff for additional upsell pairings.
3. Do market research with your best customers, your Platinum Profile™ customers. What do they like and dislike about how staff makes recommendations to them? What additions or changes can they recommend? What pairings do they like? If they like them, others may as well.
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Worth Reading
© Business Success Center, Austin, TX 2011 All rights reserved.
Cross Selling by Dr. Tony Alessandra (ebook)
The Customer Signs Your Paycheck by Frank Cooper
Upselling Success by Dr.Mani Sivasubramanian (ebook)
Upselling Techniques by Stephan Schiffman
37© Business Success Center, Austin, TX 2011 All rights reserved.
Here’s to your success!
Jan Triplett
Blog:ownersview.com
(512) 933-1983Please call if you have questions, would like to discuss this seminar or your homework, or meet. No charge.
Sales & Financial Management Services
August 30, 2011