how to understand customers

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Developing a diagnostic tool for salespersons in understanding customers in Sri Lanka It is said that selling is 90% understanding customers and 10% product knowledge. Almost all the successful sales people shares this maxim. However, not much is covered or not much prominence is given in marketing courses as to understanding customers although Consumer Behavior is a subject in almost all the courses available whether it is a six months Diploma or a 4 year degree. As a result, companies spend millions of Rupees each year in training their sales people how to understand customers, what factors influence their needs and how to effectively use such information to close a sale. In theory we present ‘The Black Box Approach”, which describes the difficulty in understanding the buyer’s hidden mental process. The sales presentation is the “stimulus” that is applied in expecting a positive response from the buyer. The stimulus is given to the buyer by the salesperson, but customers mental process that decides to buy or not cannot be understood for sure. People not only take decisions rationally but emotionally as well and it is a complicated process for one to understand. Can a sales person make the same sales presentation to each and everybody to win a sale? No absolutely not. Then how do you understand the customer well within a short period of time to make a sale? Even a trained psychologist cannot do that within the short period of time that a salesman has to assess the customer. Is there a simple way to understand customers in order that the salesperson makes the correct stimulation to win the heart of the customer and close a sale? The customer’s behavior changes from one to another depending on their knowledge, experience and attitude. However, they all want to be right and they want to be understood. In my own experience in selling products for the last few decades and sharing other salespersons ideas in many training programs I have found a simple tool that could be used to a greater extent in this context in understanding customers. I have used this in many of my sales training courses to illustrate

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Page 1: How to understand customers

Developing a diagnostic tool for salespersons in understanding customers in Sri Lanka

It is said that selling is 90% understanding customers and 10% product knowledge. Almost all the successful sales people shares this maxim. However, not much is covered or not much prominence is given in marketing courses as to understanding customers although Consumer Behavior is a subject in almost all the courses available whether it is a six months Diploma or a 4 year degree. As a result, companies spend millions of Rupees each year in training their sales people how to understand customers, what factors influence their needs and how to effectively use such information to close a sale.

In theory we present ‘The Black Box Approach”, which describes the difficulty in understanding the buyer’s hidden mental process. The sales presentation is the “stimulus” that is applied in expecting a positive response from the buyer. The stimulus is given to the buyer by the salesperson, but customers mental process that decides to buy or not cannot be understood for sure. People not only take decisions rationally but emotionally as well and it is a complicated process for one to understand. Can a sales person make the same sales presentation to each and everybody to win a sale? No absolutely not. Then how do you understand the customer well within a short period of time to make a sale? Even a trained psychologist cannot do that within the short period of time that a salesman has to assess the customer. Is there a simple way to understand customers in order that the salesperson makes the correct stimulation to win the heart of the customer and close a sale?

The customer’s behavior changes from one to another depending on their knowledge, experience and attitude. However, they all want to be right and they want to be understood. In my own experience in selling products for the last few decades and sharing other salespersons ideas in many training programs I have found a simple tool that could be used to a greater extent in this context in understanding customers. I have used this in many of my sales training courses to illustrate this tool to the participants and many are now using this simple tool that work many of the situations although there could be exceptional cases. Therefore, it is not advocated as a theory but as a tool or a guide in quickly understanding a customer.

Sri Lanka is a multi ethnic, multi religious country. We also have a history and a deep rooted culture. In the modern day, we get exposed to so many things as a result of the vastly developed communication technology. As such we have common and unique set of customer types. A salesperson would be able to understand the customer type within a short period if he has studied the categories of customer types well.

I have classified the customers in Sri Lanka into many categories and some of the famous characters are listed herein.

1. Mr. Sakaratne ( sketptical)2. Mr. Kenthi ( furious)

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3. Mr. Atheerana ( indecisive)4. Mr. Siyalude dath ( I know all)5. Mr. Hadissi ( Hurry up)6. Mr. Deshapalaka ( Politician)7. Mr. Thakshana ( Techno)8. Mr. Mudalali ( a businessman)9. Mr. Keval ( Bargain hunter)10. Mr. Kapati ( Cunning)11. Mr. Lokuwansa ( Big Shot)

Once you read the descriptions of categories you might be able to create more categories of your own and label them with your own name tags. Yes you got to do that that is where I want to lead you, develop your own types of customers by reading this article.

Male character format was used for ease of naming them but it would apply equally to females too. If you can describe the behavior and expectations of these customer categories in general, the salesperson would find it easy to fine tune his sales talk within few minutes of talking to the customer. The physical appearance and body language also will give clues to the salesperson in categorization of the customer quickly. Now let’s analyse the characteristics of the types of customers that are listed.

Mr. Sakaratne

This customer is a tough customer to please with. He will not believe what you say whatever certification or reference you may have about the product or service that you offer. He will be argumentative, raises dogmatic objections with a little anger, cynicism or sarcasm hidden underneath it. How do you respond to such a customer? The first thing that you should understand is that you are dealing with a skeptical customer and arguing and contradicting him will not bear any results. Let him or her speak out and get it off their chest. All what he wants is to listen to him and answer his concerns with interest. Do not interrupt. Say “ I am pleased that you asked that question, I will make sure that all your concerns are replied to your satisfaction Sir/Madam” If you need to clarify something further and say “ sorry I could not really grasp what you were saying on “XYZ” can you please clarify it Sir/Madam”. “ I need to find the correct answer/ solution to you” Your concerns are appreciated and many of the customers who finally purchased our goods also had the same kind of concerns Sir/madam,”. That’s how you handle them. If you do so, in most of the occasions you will win heart of Sakaratne and he will become a repeat customer of yours.

Mr. Kenthi

This person is not hostile by nature but hostile for some reason. It could be because you have supplied a defective item, simply your salespersons have not given him attention or listen to him well. Now instantly you need to understand that he is a Mr. Kenthi. Then use the following to handle him. You need to use listen to him, empathise with him, apologise to him and do the needful with interest to satisfy him. Say” thank you very much for telling us your bad experience, we appreciate your frank and openness, if I were in your situation I too would feel the same, we are very sorry for lapse on our part.

Page 3: How to understand customers

Please be assured that I will do the best to make it correct” . Finally you will find that he is a satisfied customer and a repeat customer who will come and ask by your name at the next visit he will make.

Mr. Atheerana

Surely you have come across this type of customers in your sales career. This is a common category. He may say “Yes” and say “No” at the same time. He just can’t decide what he wants. He has trouble making a decision. His behavior would be same for simple product and also for an expensive item like a car or a house. If you understand that he is Mr. Atheerana, first thing you got to do is try and win his confidence. Bring him to a level that you are honestly on his side and you are with him to take the correct decision. You have to push him without his knowledge to take a decision. If not you will be saddled with a customer who would waste the time that you have to spend with other customers. You need to make “Atheerana” a “Theerana”. All what he needs is genuine support and all what you got to do is to let him know that you are honestly doing that.

Mr. Siyaludedath

He is out to show that he knows better than you are even though in fact he knows little. If you find a person of this caliber, first thing that you should show to him is that you are pleased to have him in front you as you will learn something from him today. He may know about the product details that he is going to buy or he may be a person who thinks that he knows many things about life. So give him the opportunity to show off what he knows. He wants you to be his audience. If you show that you have learned something about the product or any other things from him, he would be very happy and would be an easy customer to win. But you got to be patient and tactful in handling him as he may also waste your time that could be used for another customer.

Mr. Hadissi

If you find a customer who wants only facts and just the facts, he is a Hadissi type of a customer. He may not be bothered about with additional details. So be brief to the point, be businesslike and close the sale as early as possible. Many professionals like doctors, lawyers, engineers, senior executives fall into this category. They do not have much time to spend on purchasing stuff but would like that you do a personalized service with respect. They do not bargain much but want to pay the standard price for a product. They like you to be frank about what you say and they like you to handle them in the professional manner.

Page 4: How to understand customers

Mr. Deshapalaka

There are two types of them. One is a real politician and the other one is a character who shows that he is an affiliate of a politician. They want respect and to feel that they are specially treated. If you identify the category, give them what they want. Offer them a seat, introduce them to your manager and let them talk about politics, power they have and you listen to them with interest. Most the politicians have money to buy the best products, Show them the best and talk about a special price that you can offer. You will win the sale.

Mr. Thakshana

He may have the latest phone or the latest ipod with him. He will show details about products through his phone or ipod. He will talk of the specifications of the products and features and benfits before you present it to him. So understand that he is in the “Thankshana” category. All what he wants is for you to accept he is a person with the modern day technology. So appreciate his status and talk about his gadgetry too. Give him exact figures and specs and be frank and professional. He will be with you. You will win his heart and make a sale.

Mr. Mudalali

He is a businessman and knows about how salesperson handles customers. Once you know his category acknowledge that he knows how things happen in businesses. If you know his business, tell others in front of him that he is so and so of “XYZ” business. Give him due respect and accept him as a business person and do not be too smart in your sales presentation. Talk to him about the way you make purchases and how you compete and deal in the market place frankly. He will appreciate the fact that you need to keep a standard profit margin to run the business. Give him a personalized service. He will be with you and you will win his heart and close a sale.

Mr. Keval

A person who would ask the price first and start bargaining at a price that you can afford to sell is a bargain hunter. So it is not difficult to understand the type. All what he wants is feel that he had made the purchase at the lowest possible price in the market place. Do not get offended when he offers a price much less than your cost. Indicate to him at the first instance that he will get the best deal from you. Describe not just the price but the rest of the services and benefits that he will get from buying the product from you. You may show to him the prices that the other customers have purchased the product. Let him know that you will talk to your manager and get him a special price where no other customer has got. All he wants is to feel that he purchased at the lowest price.

Mr. Kapati

If you come to know across a customer who tries to deceive you, he would fall onto this category. He may indicate an offer by a competitor for a much lower price or terms that nobody can offer in the

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market, he may say that you offered a much lower price over the phone, he may show that he is just about to buy the product but in fact he is not. He will show money to lure you to offer a better price. Show him that you are very interested in serving him. Never challenge him but simply be professional.

Mr. Lokuwansa

He wants to show that he is an important person. He wants to be the center stage so the spotlight shines on him. He does not want to deal with one of the boys in the sales team. In Sinhala he might say “ Malli Lokka Nedda” . He wants him to be handled by a senior person. So all what you want to do is give him what he wants. Let the manager or a senior person handle his sale. Give him importance. He will buy your product.

If you are an experienced salesperson you would be able to list and categorise many types of customers that you meet in your day to day sales life. If you refer to the lyrics of famous much critisised song of Nihal Nelson -Meka Gune Ayyage Bajaw Dhana Kamare- He describes Gune Ayya’s customers as “ Pachcha sirala, Kochchi halala, Guspi robala, Nalumansla, Nilimansla, Camera katala, Aliwansen weda karana Supermansla, Bara porawal, Foreigns kakul ”. That’s a fine illustration of customer types of that business. When author was conducting a training session for a famous government handicraft emporium back in 1990s, the sales girls described a customer type called “looking only customers”( LOC), who come to their sales outlet just to go around and cool off themselves in the air-conditioned environment on days where very hot weather is prevailing. But they said they welcome them with a smile hoping that they would become a customer sooner or later.

In conclusion, let me reiterate the importance of developing your own diagnostic tool in understanding customers and treating them in the manner that they want you to win a sale and develop a long term relationship. Discuss among the members of your sales team about the types of customers you came across daily and how you have handled them in wining a sale. Do not wait till another trainer comes and train you or a new book is published on understanding customers. Your knowledge and practice will make you a master in understanding the customer.