Summarize the sales Summarize the sales process process

Steps Of The SaleSteps Of The Sale

Approach the customer Approach the customer Determine needsDetermine needs

– Determine what the customer wants and Determine what the customer wants and needs.needs.

Present the productPresent the product– Choose the appropriate product and Choose the appropriate product and

educate the customer about the educate the customer about the features and benefits.features and benefits.

Steps Of The Sale cont.Steps Of The Sale cont.

Overcome objectionsOvercome objections– Determine why the customer is hesitant Determine why the customer is hesitant

to buyto buy– Convey information that will remove Convey information that will remove

uncertainty.uncertainty. Close the saleClose the sale

– Get the customers agreement to buy.Get the customers agreement to buy.

Steps Of The Sale cont.Steps Of The Sale cont.

Suggestion sellSuggestion sell– Identify additional goods or services that Identify additional goods or services that

will help the customer better enjoy the will help the customer better enjoy the product.product.

Build relationshipsBuild relationships– Maintain contact with customers after Maintain contact with customers after

the sale is complete.the sale is complete.

The approach is…The approach is…

The first encounter with a potential The first encounter with a potential customercustomer

The initial approach depends on prior The initial approach depends on prior encounters with the customer.encounters with the customer. With existing customers, the sales associate may With existing customers, the sales associate may

comment on families, hobbies, or vacations.comment on families, hobbies, or vacations. With new customers the salesperson could engage With new customers the salesperson could engage

in small talk to develop a relationship with the in small talk to develop a relationship with the customer.customer.

Four approaches can be used Four approaches can be used during the initial approach.during the initial approach.

Service approach Service approach Greeting approach Greeting approach Merchandise approach Merchandise approach Combination approach Combination approach

Service ApproachService Approach

The salesperson asks the customer if The salesperson asks the customer if they need help.they need help.

For example, “May I help you find For example, “May I help you find something today?”something today?”

This approach is most effective when This approach is most effective when the customer is in a hurry or when the customer is in a hurry or when taking routine orders such as fast taking routine orders such as fast food.food.

Greeting ApproachGreeting Approach

The salesperson welcomes the The salesperson welcomes the customer to the store.customer to the store.

For example, “Good morning”, or For example, “Good morning”, or “Welcome to Cici’s!”“Welcome to Cici’s!”

The salesperson should be upbeat, The salesperson should be upbeat, friendly, and smile.friendly, and smile.

Merchandise ApproachMerchandise Approach The salesperson comments on the product The salesperson comments on the product

the customer is interested in.the customer is interested in. This approach is effective only if the This approach is effective only if the

customer is looking at something specific.customer is looking at something specific. The salesperson comments on the product’s The salesperson comments on the product’s

features and benefits.features and benefits.– For example, “That video game is rated E for For example, “That video game is rated E for

everyone, which means it does not contain harsh everyone, which means it does not contain harsh language or violence.”language or violence.”

This approach is most effective in retail sales This approach is most effective in retail sales because it focuses on the product.because it focuses on the product.

Combination ApproachCombination Approach

The salesperson uses two or three of The salesperson uses two or three of the service, greeting, or merchandise the service, greeting, or merchandise approaches.approaches.

For example, “Hello, welcome to For example, “Hello, welcome to Hollister. We have a great sale on Hollister. We have a great sale on jeans today. May I help you find your jeans today. May I help you find your size?”size?”

How to determine consumer needs How to determine consumer needs

Determine customer’s reasons for buyingDetermine customer’s reasons for buying The salesperson should focus on determining the The salesperson should focus on determining the

customer’s needs as early as possible.customer’s needs as early as possible.– Observing Observing – ListeningListening– Questioning and Engaging Questioning and Engaging

Methods For Determining NeedsMethods For Determining Needs

Observing - Observing - Look for nonverbal Look for nonverbal communication clues that indicate the communication clues that indicate the customer’s interest in the product.customer’s interest in the product.– For example, hand motions, facial expressions, For example, hand motions, facial expressions,

or eye movements.or eye movements. Listening - Listening - Helps pick up clues to the Helps pick up clues to the

customer’s needs.customer’s needs.

Questioning and engaging the customerQuestioning and engaging the customer– Ask questions about how the customer wants to Ask questions about how the customer wants to

use the product or if the customer has any use the product or if the customer has any previous experience.previous experience.

– Ask questions such as who, what, when, where, Ask questions such as who, what, when, where, why, and how.why, and how.

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

Product presentation time!Product presentation time! The first decision in product presentation is what The first decision in product presentation is what

product(s) to show the customerproduct(s) to show the customer After determining how the customer plans to use the After determining how the customer plans to use the

productproduct Show the customer no more than three products at a time to avoid Show the customer no more than three products at a time to avoid

confusionconfusion If the customer wants to see more, remove the products for which If the customer wants to see more, remove the products for which

the customer no longer has an interest.the customer no longer has an interest.

Product presentation time!Product presentation time!

Show a medium-priced product when the Show a medium-priced product when the customer’s price range is not knowncustomer’s price range is not known– Price should not be introduced early in the Price should not be introduced early in the

presentationpresentation– The salesperson needs to prove how valuable the The salesperson needs to prove how valuable the

product will be to the customer.product will be to the customer. When talking to the customer, highlight the When talking to the customer, highlight the

features and benefits that match customer’s features and benefits that match customer’s buying motives and needsbuying motives and needs– Use descriptive adjectives and action verbs; avoid Use descriptive adjectives and action verbs; avoid

unclear words, such as nice, pretty, and fine.unclear words, such as nice, pretty, and fine.

Effective Product PresentationEffective Product Presentation Display and handle the productDisplay and handle the product

– Handle the product appropriatelyHandle the product appropriately– Use hand gestures to show the significant Use hand gestures to show the significant

features of the product.features of the product. Demonstrate the productDemonstrate the product

– Help boost customer confidence by showing Help boost customer confidence by showing them the proper use of the product.them the proper use of the product.

Effective Product PresentationEffective Product Presentation

Use sales aidsUse sales aids– Samples, audiovisuals, models, Samples, audiovisuals, models,

photographs, and customer testimonials photographs, and customer testimonials are a few examples of sales aidsare a few examples of sales aids

– A salesperson should be creative in A salesperson should be creative in deciding which aids to use.deciding which aids to use.

Involve the customerInvolve the customer– It is important to physically engage the It is important to physically engage the

customer in the product demonstration as customer in the product demonstration as soon as possible.soon as possible.

Effective Product PresentationEffective Product Presentation

Hold the customer’s attentionHold the customer’s attention– Involving the customer in the sale helps Involving the customer in the sale helps

the person to make an intelligent buying the person to make an intelligent buying decisiondecision

– If the salesperson is losing the If the salesperson is losing the customer’s attention, he/she should ask customer’s attention, he/she should ask open-ended, probing questions to make open-ended, probing questions to make sure the customer is following the sure the customer is following the demonstrationdemonstration

Buying ObjectionsBuying Objections

Objection - Objection - A legitimate reason, doubt, or A legitimate reason, doubt, or hesitation a customer has for not making a hesitation a customer has for not making a purchase.purchase.

Excuse - Excuse - A reason a customer will not buy or A reason a customer will not buy or speak to a salespersonspeak to a salesperson Excuses are used when customers are not Excuses are used when customers are not

interested in buying or when they are hiding other interested in buying or when they are hiding other objectionsobjections

– In retail situations, remain polite and suggest the In retail situations, remain polite and suggest the customer look aroundcustomer look around

– In B2B situations, simply leave a business card.In B2B situations, simply leave a business card.

Objections may be based on Objections may be based on one or a combination of:one or a combination of:

Need - Need - Urgency for the productUrgency for the product– For example, the customer says, “I do not For example, the customer says, “I do not

need a new bathing suit.”need a new bathing suit.” Product - Product - Design, ease of use, quality, Design, ease of use, quality,

color, size, or stylecolor, size, or style– For example, the customer says, “You do For example, the customer says, “You do

not have my size.”not have my size.”

Objections may be based on Objections may be based on one or a combination of:one or a combination of:

Source - Source - Related to past experiences Related to past experiences with the company or productwith the company or product– For example, the customer says, “The last For example, the customer says, “The last

time I bought a Speedo, it did not last time I bought a Speedo, it did not last more than one season.”more than one season.”

Price - Price - Most common with expensive Most common with expensive productsproducts– For example, the customer says, “That is For example, the customer says, “That is

more than I am willing to pay.”more than I am willing to pay.”

Objections may be based on Objections may be based on one or a combination of:one or a combination of:

Time - Time - Customers are leery about Customers are leery about making a purchase “on the spot”making a purchase “on the spot”– Objections based on time are often Objections based on time are often

excusesexcuses– For example, the customer says, “I am For example, the customer says, “I am

not ready to buy a new bathing suit not ready to buy a new bathing suit now.”now.”

Procedures For HandlingProcedures For HandlingAn ObjectionAn Objection

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

Methods to handle objectionsMethods to handle objections

Substitution Substitution Boomerang Boomerang Question Question Superior-point Superior-point Denial Denial Demonstration Demonstration Third party Third party

Methods to handle objectionsMethods to handle objectionsSubstitutionSubstitution

Identify another product Identify another product that would satisfy the that would satisfy the customers’ needscustomers’ needs– For example, the For example, the

customer says “The last customer says “The last time I used a twin blade time I used a twin blade razor, it cut my face.” razor, it cut my face.” The salesperson’s The salesperson’s response could be, “Try response could be, “Try the new four blade razor the new four blade razor with enhanced microfins.”with enhanced microfins.”

BoomerangBoomerang

Bring the objection back to the Bring the objection back to the customer as a selling pointcustomer as a selling point

With this method, be careful not With this method, be careful not to sound condescending to the to sound condescending to the customercustomer– For example, the customer may For example, the customer may

object because they had a bad object because they had a bad experience with a product in the experience with a product in the past. The salesperson could past. The salesperson could respond with, “I’m sorry you had respond with, “I’m sorry you had a bad experience before; a bad experience before; however, our products have however, our products have been reformatted based on been reformatted based on customer feedback.”customer feedback.”

Methods to handle objectionsMethods to handle objections

QuestionQuestion Ask the customer Ask the customer

questions to learn more questions to learn more about the objectionabout the objection– For example, if the For example, if the

customer objects with, “I customer objects with, “I don’t see the need for don’t see the need for fabric protection.” The fabric protection.” The salesperson can respond salesperson can respond with, “Do you have small with, “Do you have small children?”children?”

Superior-PointSuperior-Point Offset the customer Offset the customer

objections with the objections with the product’s features and product’s features and benefitsbenefits– For example, the customer For example, the customer

objects about price. The objects about price. The salesperson can respond salesperson can respond with, “Yes this television is with, “Yes this television is more expensive; it is our more expensive; it is our top of the line model. You top of the line model. You will think you’re in a will think you’re in a theater when you watch it theater when you watch it and the sound is and the sound is incredible.”incredible.”

Methods to handle objectionsMethods to handle objections

DenialDenial The customer’s objection is The customer’s objection is

based on misinformationbased on misinformation This method is often in the This method is often in the

form of a questionform of a question– For example, the customer For example, the customer

says, “Are you sure these says, “Are you sure these shoes will fit me? I have shoes will fit me? I have wide feet.” The wide feet.” The salesperson can respond salesperson can respond with, “Yes, these shoes are with, “Yes, these shoes are made with a durable, made with a durable, elastic fabric that contours elastic fabric that contours to anyone’s foot.”to anyone’s foot.”

DemonstrationDemonstration ““Seeing is believing.”Seeing is believing.”

– For example, allowing the For example, allowing the customer to try to customer to try to manipulate the product manipulate the product himself or herself, or himself or herself, or giving the customer a giving the customer a sample to trysample to try

Methods to handle objectionsMethods to handle objections

Third PartyThird Party Uses customer or celebrity Uses customer or celebrity

testimonialstestimonials– For example, showing the For example, showing the

customer advertisements customer advertisements featuring famous featuring famous celebrities or sharing celebrities or sharing positive feedback from positive feedback from customers who have used customers who have used the product.the product.

How To Close The SaleHow To Close The Sale Time The CloseTime The Close

– Closing a sale - Closing a sale - Initiating and obtaining an Initiating and obtaining an agreement from the customer to purchase a product.agreement from the customer to purchase a product.

– Look for buying signals - Look for buying signals - What a customer says or What a customer says or does to indicate he/she is ready to buydoes to indicate he/she is ready to buy

For example, watch for facial expressions, body For example, watch for facial expressions, body language, and listen to comments.language, and listen to comments.

– Trial close - Trial close - Test the readiness of the customer to Test the readiness of the customer to buybuy

For example, “Is this a gift for someone? May I take For example, “Is this a gift for someone? May I take this to the counter for you?”this to the counter for you?”

Rules For Closing The SaleRules For Closing The Sale Recognize closing opportunitiesRecognize closing opportunities

– For example, the customer reaches for his/her For example, the customer reaches for his/her wallet.wallet.

Help customers make decisionsHelp customers make decisions– For example, the customer may need help For example, the customer may need help

deciding between two colors for a picture frame.deciding between two colors for a picture frame. Create ownership mentalityCreate ownership mentality

– For example, use words such as “you” and “your” For example, use words such as “you” and “your” to convey ownership. “You will enjoy driving this to convey ownership. “You will enjoy driving this car on family vacations.”car on family vacations.”

Do not talk too much or rush the customerDo not talk too much or rush the customer

Methods for closing the sale Methods for closing the sale

Which Which Standing-room only Standing-room only Direct Direct Service Service

Methods For Closing The SaleMethods For Closing The Sale

Which - Which - Suggest the customer choose Suggest the customer choose between two itemsbetween two items– For example, “Which do you prefer, the blue or For example, “Which do you prefer, the blue or

the red?”the red?” Standing-room only - Standing-room only - Used when there Used when there

is a limited number of products in stock or is a limited number of products in stock or when the price is expected to go upwhen the price is expected to go up– For example, “I’m glad you like this make and For example, “I’m glad you like this make and

model, though I can’t promise it will be model, though I can’t promise it will be available if you come back tomorrow. Our sale available if you come back tomorrow. Our sale ends at midnight.”ends at midnight.”

Methods For Closing The SaleMethods For Closing The Sale Direct - Asking for the sale.Direct - Asking for the sale.

– This method is most effective when the buying signals are very This method is most effective when the buying signals are very strongstrong

– For example, “Ok ladies, based on what I’ve shown you today, For example, “Ok ladies, based on what I’ve shown you today, what would you like to take home with you?”what would you like to take home with you?”

Service - Works best when handling obstacles or Service - Works best when handling obstacles or dilemmasdilemmas– The salesperson should explain the services available that The salesperson should explain the services available that

would solve the problemwould solve the problem– For example, “Our products are backed by a 100%, money back For example, “Our products are backed by a 100%, money back

guarantee. If you are not completely satisfied, simply return it.”guarantee. If you are not completely satisfied, simply return it.” If the close does not result in a sale, the salesperson should get If the close does not result in a sale, the salesperson should get

feedback from the customer as to why he/she decided not to make feedback from the customer as to why he/she decided not to make a purchase. This is a learning experience.a purchase. This is a learning experience.

Suggestion selling is…Suggestion selling is…

Selling complimentary or additional goods Selling complimentary or additional goods or services to the customer that would or services to the customer that would make the original purchase more make the original purchase more enjoyable.enjoyable.

The salesperson, customer, and company The salesperson, customer, and company benefit from suggestion sellingbenefit from suggestion selling

Rules For Suggestion SellingRules For Suggestion Selling

Suggestion sell after the customer has Suggestion sell after the customer has made a commitment to buy, and before made a commitment to buy, and before payment is made.payment is made.

Make recommendations from the Make recommendations from the customer’s point of view and explain the customer’s point of view and explain the recommendation.recommendation.

Make the suggestion specific.Make the suggestion specific. Allow the customer to see the item being Allow the customer to see the item being

suggested.suggested. The suggestion should be helpful.The suggestion should be helpful.

Suggestion Selling MethodsSuggestion Selling Methods Cross selling - Cross selling - Offering related merchandiseOffering related merchandise

– For example, the customer has committed to buying a pair For example, the customer has committed to buying a pair of sneakers. The salesperson should suggest shoe cleanerof sneakers. The salesperson should suggest shoe cleaner

Upselling - Upselling - Recommending larger quantities of Recommending larger quantities of merchandise at a lower pricemerchandise at a lower price– This method is most effective when the retail customer is This method is most effective when the retail customer is

purchasing inexpensive items, or when a B2B customer can purchasing inexpensive items, or when a B2B customer can take advantage of lower prices or special deals.take advantage of lower prices or special deals.

Special sales opportunities Special sales opportunities - The salesperson is - The salesperson is obligated to inform the customer of special salesobligated to inform the customer of special sales– In retail, customers appreciate knowing when to expect new In retail, customers appreciate knowing when to expect new

merchandise. In B2B, show customers new products that merchandise. In B2B, show customers new products that are or will be availableare or will be available

How to maintain a relationship with How to maintain a relationship with the customerthe customer

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

After-sales ActivitiesAfter-sales Activities Order processingOrder processing

– In retail, bag the customer’s merchandise with In retail, bag the customer’s merchandise with speed and carespeed and care

– In B2B, complete necessary paperwork and In B2B, complete necessary paperwork and leave a business card.leave a business card.

DepartureDeparture– Reassure the customer they have made the Reassure the customer they have made the

right decisionright decision– Restate proper care and use instructionsRestate proper care and use instructions– Always thank the customer regardless of the Always thank the customer regardless of the

outcome.outcome.

After-sales ActivitiesAfter-sales Activities Order fulfillment. Order fulfillment.

– In a retail situation, the customer pays for the In a retail situation, the customer pays for the product and takes it home. product and takes it home.

– In an e-commerce, mail order, or telemarketing In an e-commerce, mail order, or telemarketing situation:situation:

The desired product is chosen by the customer.The desired product is chosen by the customer. The customer’s payment is processed.The customer’s payment is processed. The product is packaged.The product is packaged. The order is shipped according to the customer’s The order is shipped according to the customer’s

specificationsspecifications

Order fulfillment may also include customer service, returns Order fulfillment may also include customer service, returns and refunds or exchanges, and technical support.and refunds or exchanges, and technical support.

After-sales ActivitiesAfter-sales Activities Follow-upFollow-up

– Involves following through on the promises Involves following through on the promises made during the salemade during the sale

– It also means checking up to ensure the It also means checking up to ensure the customer is satisfied with his or her purchase.customer is satisfied with his or her purchase.

Customer serviceCustomer service– Most businesses have customer service Most businesses have customer service

departments to handle customer inquiries departments to handle customer inquiries and complaintsand complaints

– The main goal is customer satisfaction.The main goal is customer satisfaction.

After-sales ActivitiesAfter-sales Activities Keeping a client fileKeeping a client file

– Record useful information regarding the customer and Record useful information regarding the customer and his/her purchaseshis/her purchases

– For example, in retail, record the customer’s size, style, For example, in retail, record the customer’s size, style, name, and address. In B2B, record family status, hobbies, name, and address. In B2B, record family status, hobbies, and birthdays.and birthdays.

Evaluate sales effortsEvaluate sales efforts– Complete a self-evaluation after the sale. Review the Complete a self-evaluation after the sale. Review the

following:following: What were the strong points of the presentation?What were the strong points of the presentation? What was done incorrectly or ineffectively?What was done incorrectly or ineffectively? How can the presentation be improved?How can the presentation be improved? What should be done differently?What should be done differently? If the sale was successful, what can be done to solidify the relationship?If the sale was successful, what can be done to solidify the relationship?

Customer Relationship Customer Relationship Management (CRM)Management (CRM)

Managing detailed information about Managing detailed information about individual customers and carefully individual customers and carefully managing customer preferences (or touch managing customer preferences (or touch points) in order to maximize customer points) in order to maximize customer loyaltyloyalty

CRM helps companies maintain and CRM helps companies maintain and strengthen relationships. strengthen relationships.

Customer Relationship ManagementCustomer Relationship Management

Implement technology and CRMImplement technology and CRM– Firms can purchase customized software or subscribe to online Firms can purchase customized software or subscribe to online

services to help provide better customer service and track dataservices to help provide better customer service and track data For example, salesforce.comFor example, salesforce.com

Maintain contactsMaintain contacts– Salespeople can act as consultants to customers, offering Salespeople can act as consultants to customers, offering

solutions to problemssolutions to problems For example, being on hand to answer questions from the client and/or being For example, being on hand to answer questions from the client and/or being

able to walk the client through proper use of the product.able to walk the client through proper use of the product.

Maintain relationshipsMaintain relationships– Provide customers with personalized serviceProvide customers with personalized service

For example, AAA can plan vacations for its members at the member’s For example, AAA can plan vacations for its members at the member’s request.request.

Customer Relationship ManagementCustomer Relationship Management

Develop customer loyaltyDevelop customer loyalty– Keep customers happy, not only during the sale, but Keep customers happy, not only during the sale, but

after as well in preparation for future salesafter as well in preparation for future sales For example, keep customers aware of new products or upcoming For example, keep customers aware of new products or upcoming

events through email or direct mail.events through email or direct mail.

Implement rewards programsImplement rewards programs– Reward customers who patronize the business on a Reward customers who patronize the business on a

regular basisregular basis For example, frequent flyer programs or offer a free gift with For example, frequent flyer programs or offer a free gift with

purchase.purchase.