opening question #1 – 3/?/13 in your own shopping experiences, list some common reasons that...
TRANSCRIPT
Opening Question #1 – 3/?/13
Opening Question #1 – 3/?/13
In your own shopping experiences, list some common reasons that customers OBJECT to buying a product.
4. Overcoming Objections5. Closing The Sale6. Suggestion Selling7. Relationship Building
4. Overcoming Objections5. Closing The Sale6. Suggestion Selling7. Relationship Building
We’ll start with step 4 ~ Overcoming Objections…
Understanding ObjectionsUnderstanding ObjectionsObjections – are concerns, hesitations,
doubts, or other honest reasons a customer has for not making a purchase
• Could be questions or statements:– “Do you carry other brands?”– “These shoe do not fit right.”
• Are they positive or negative?Positive – Gives salesperson an opportunity to present more information
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Excuses vs. Objections?Excuses vs. Objections?
Excuses – are insincere reasons for not buying or not seeing a salesperson
• Examples:– “I’m too busy to see you today.”– “We don’t need anymore…”– “I’m just shopping around.”
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Objection Analysis SheetObjection Analysis Sheet
Plan for objections…
Objection Analysis Sheet – Details common objections and possible responses
• Prepares salespeople for the most common objections that might occur
• You can also incorporate anticipated objections into your product presentation– But avoid introducing doubt
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Common Objection CategoriesCommon Objection Categories
• “I really like this sweater but it doesn’t match anything I own.”
– Need – No immediate need or conflict between wanting something but not truly needing it
• “The color of this car is hideous!”
– Product – Concern about such things as: construction, quality, size, appearance or style
• “The last time I bought something here, you wouldn’t let me return it.”
– Source – Occurs due to a negative past experience with the firm or brand
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Common Objection Categories (cont.)
Common Objection Categories (cont.)
• “That’s more than I want to spend.”
– Price – Common with high-quality, expensive merchandise
• “Why should I buy a snow blower now when they’ll go on sale at the end of the season?”
– Time – Reveals a hesitation to buy now. These objections are sometimes excuses.
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
4-Step Process for Handling Objections
4-Step Process for Handling Objections
1. Listen
2. Acknowledge
3. Restate
4. Answer– See the following 7 methods for handling objections
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Seven Specialized Methods of Handling Objections
Seven Specialized Methods of Handling Objections
1. Substitution
2. Boomerang
3. Question
4. Superior Point
5. Denial
6. Demonstration
7. Third-party
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Seven Specialized Methods of Handling Objections
Seven Specialized Methods of Handling Objections
1. Substitution – recommending a different product that would satisfy the customer’s needs
Customer: “I don’t like the way this dress looks on me.”
Salesperson: “Here, why don’t you try this dress. It has a completely different look. I think it will fit your style better than the one you just had on.”
2. Boomerang - Sends the objection back to the customer as a selling point (using the same feature)
Customer: “Jacket is too light to keep me warm.”
Salesperson: “It’s light because it uses thinsulate…”
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Seven Specialized Methods of Handling Objections
Seven Specialized Methods of Handling Objections
3. Question – Can reveal hidden objections or show objection is not valid
• Customer: “I don’t see the point of 2 sinks in a master bathroom.”
• Salesperson: “Do you and your husband ever need to get ready to go out at the same time?”
• Customer: “Yes.”• Salesperson: “Does one you have to wait
at those times?”• Customer: “Yes, I see your point.”
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Seven Specialized Methods of Handling Objections
Seven Specialized Methods of Handling Objections
4. Superior Point – acknowledge the objection, but offset it with other features/benefits
Customer: “Your prices are higher than your competitors.”
Salesperson: “That’s true. Our prices are slightly higher, but our garments are made from high quality…”
5. Denial – When the objection is based on misinformation or appears as a question
Customer: “This garment will shrink. Won’t it?”Salesperson: “No, it won’t shrink because it’s a
cotton and polyester blend…”
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Seven Specialized Methods of Handling Objections
Seven Specialized Methods of Handling Objections
6. Demonstration – Based on the saying: Seeing is believing
Customer: “I can’t believe food won’t stick to this pan if you don’t use butter or oil.”
Salesperson: “I’m glad you brought that up. Let me demonstrate how…”
7. Third Party – Use prior customer or neutral person to validate point
Customer: “I can’t believe this will save me $1,000 per year.”
Salesperson: “Frank Smith, one of my customers, thought the same thing. He bought it and saved $1,200. Here’s a letter from him…”
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Closing the saleClosing the sale
•Things to think about…–When to close
•Timing
–What do look for•Buying Signals
–Trial Close•Why Beneficial
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
4 Rules for Closing the Sale4 Rules for Closing the Sale
1. Recognize closing opportunities – after?
– Presentation/Removing objections
2. Help customers make decision
– Summarize features and benefits
3. Create ownership mentality
– “You will enjoy using this camera on your vacation.”
4. Don’t talk too much
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Specialized Methods for Closing the Sale
Specialized Methods for Closing the Sale
• Four specialized methods:
1. Which Close
2. Standing-Room-Only Close
3. Direct Close
4. Service Close
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
“Which Close” Method for Closing the Sale
“Which Close” Method for Closing the Sale
Which Close – Encourages customer to decide between 2 items
Follow these (3) steps:
1. Remove unwanted items to limit selection to 2 items
2. Review benefits of each item
3. Ask “Which one do you prefer?”
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
“Standing-Room Only Close” Method for Closing the Sale
“Standing-Room Only Close” Method for Closing the Sale
‘SRO’ Close – When product is in short supply or price going up soon
Use only when it honestly calls for it
Car salesperson: “This is the last of this model in stock. The new model will cost more.”
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
“Direct Close” Method for Closing the Sale
“Direct Close” Method for Closing the Sale
Direct Close – Ask for saleUse if buying signal is very strongExamples: • “I assume that we’re ready to talk
about the details of your order?”• “Would you like to pay with cash,
check or credit card?”
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
“Service Close”Method for Closing the Sale
“Service Close”Method for Closing the Sale
Service Close – Explains services that overcome obstacles or problems
Examples• Retail – Accepting credit, layaway,
return policy, free alterations, delivery, warranties & guarantees
• B2B – Longer payment terms, samples
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Step 6: Suggestion SellingStep 6: Suggestion Selling
• Suggestion Selling – is selling additional goods or services to the customer.
• Any other items that could:– Save time/money – Make the original purchase more enjoyable.
• EXAMPLE: A customer buys a camera, and the salesperson offers a memory card.
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Benefits of Suggestion Selling
Benefits of Suggestion Selling
• Who does it benefit:– Salesperson, customer and company
• Salespeople: customers will want to do business again, plus added commission (at times)
• Customer: he/she is more pleased with the original purchase
• Company: the time and cost involved in suggestion selling is less than the cost of making the original sale…
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
WHY???• Less time and effort are needed with suggestion selling
compared with the initial sale.• Certain business expenses (utilities & rent) remain the same,
despite the extra sales activity.
Let’s Look at an ExampleLet’s Look at an Example
Purchase Without
Suggestion Selling
Pants $75
Total $75
Cost of Goods Sold
- 37
Gross Profit
$38
Other Expenses
- 12
Net Profit $26
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
WHY???• Less time and effort are needed with suggestion selling
compared with the initial sale.• Certain business expenses (utilities & rent) remain the same,
despite the extra sales activity.
Let’s Look at an ExampleLet’s Look at an Example
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
5 Rules for Suggestion Selling
5 Rules for Suggestion Selling
1. Do suggestion selling after the customer has made a commitment to buy, but before payment is made or the order written.
2. Make your recommendation from the customer’s point of view and give at least one reason for suggestion.
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
5 Rules for Suggestion Selling
5 Rules for Suggestion Selling
3. Make the suggestion definite.
Don’t say “Will that be all?”
Say “This oil is specifically designed…”
4. Show the item you are suggesting.
5. Make the suggestion positive
“This scarf will complement your coat.”
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Suggestion Selling ExampleSuggestion Selling Example
CROSS-SELLING
UP-SELLING
SPECIAL SALES OPPORTUNITIES
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
3 Suggestion Selling Methods
3 Suggestion Selling Methods
1. Offering Related Merchandise – (Cross-selling) is probably the easiest and most effective suggestion selling method.EXAMPLE: Offering a tie to match the shirt.
2. Recommending Larger Quantities – (Up-selling) suggesting a larger quantity (retail) usually works with inexpensive items or when money, time, and/or convenience will be saved. EXAMPLE: Buy 1 hat for $20, or 2 hats for $30In B2B selling, the salesperson may suggest a larger
quantity so the customer can take advantage of lower prices or special considerations. (EXAMPLE: Free shipping)
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
3 Suggestion Selling Methods
3 Suggestion Selling Methods
3. Call Attention to Special Sales Opportunities – salespeople are obligated to communicate special sales opportunities.They often involve new merchandise, special sales, and
holiday items.EXAMPLES: – “We are having a One-Day Sale on all items in the
store!”– “Since Valentine’s Day is approaching, you may want to
look at our special display of gift ideas.”In B2B selling, the salesperson often show new items to
their customers after they have completed the sale of merchandise requested.
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
7. RELATIONSHIP BUILDING
7. RELATIONSHIP BUILDING
Step 7: Relationship Building
Step 7: Relationship Building
• Relationship Marketing – Strategies businesses use to stay close to their customers– Want repeat business by
establishing a relationship– Completing the sale is the first
step establishing a relationship– After-sale activities are key…
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
After-Sales ActivitiesAfter-Sales Activities
• Processing the Order – Bagging/wrapping the order – In B2B, Completing the paperwork
• Departure – Reassure the person of the wise buying
decisions that have been made– Take time to educate customer (give them
any reminders)– Always thank the customers, and invite
them back!
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
• Order Fulfillment – Customer pays for the merchandise – In E-Commerce, fulfillment is more
complicated (which card, packing it, shipping it)
• Follow-up – Follow through on all promises (e.g.
certain shipping date)– Checking customer satisfaction with the
purchase (e.g. phone call, thank you note)
After-Sales ActivitiesAfter-Sales Activities
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
• Customer Service– How you handle problems, complaints, and
maintenance
• Keeping a Customer File– Take notes on conversation, what they bought,
their preferences, etc.– In B2B, note personal information
• Evaluate your Sales Effort– Companies have formal process– Evaluate yourself! - Consider everything you did
during the sales process
After-Sales ActivitiesAfter-Sales Activities
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding
Customer Relationship Management (CRM)
Customer Relationship Management (CRM)
• Involves finding customers and keeping them satisfied
• Lead generation, sales support, customer service and other after-sales support
• Involves:– Technology– Maintaining contact (consultative selling) – Maintain relationship (personalized
emails)– Develop customer loyalty/reward program
OvercomingObjections
Closing theSale
SuggestionSelling
RelationshipBuilding