Effective Sales Strategies for Hotels

Chapter 4 Personal Sales The personal sales call is often the most effective means of customer contact, especially when directed at volume movers of the leisure, business, and meeting market.

Types of Personal Calls • Cold calls or prospect calls • Are usually made within a small geographic area with a minimum amount of time spent on each call • Little is known about the person or organization. • Fact-finding or exploratory call. • Gathering information • Public relation calls or service calls • Are made on companies and individuals who are already clients. • To promote goodwill and indicate your willingness to meet the future needs of the client

Presentation calls or appointment calls • Are made to individuals, committees, or groups to explain how your property can meet their needs and to ask for their business • You should obtain as much information as possible about prospects before presentations. • Target the organizations’ decision-makers and use effective visual aids and other support materials. • Inside calls • Are made to walk-ins inquiring about the property or to group buyers, such as tour operators and meeting planners, who have been invited to tour the property.

Prospecting Few hotels can be certain that their current client base will be adequate for the future. Prospecting for new business is essential and should be a continual part of hotel sales.

Major Sources of Prospecting • Sources • Your present customer mix • Go out and get more of the same • Prospecting research information • The function books and other records from previous years • Provide information • On groups that have booked and not returned • The name of key contact persons • The name of satisfied past clients

Other sources of prospecting • Referral from past and present clients • Other departments within large corporations or groups that the property is currently serving • Local organizations and companies • Community contacts • Font desk personnel • Other property employees • The property’s competitors • Other Sources (see Exhibit 1) • The national level • Networking • The Internet

Develop new accounts • To develop three accounts a week • Set a prospecting goal of 15 contacts per week to realize three new prospects. • Accurate records of prospecting efforts for evaluating your progress in meeting goals (see Exhibit 2).

Qualifying Prospects • Qualify and Quantify • Two of the most important steps in the solicitation of any account. • Not every prospect qualifies as a potential client. • 80 percents of business is generated by 20 percents of their accounts • Full qualification • Gathering all the information necessary to place a dollar value on the potential business from the account. • Focus on “big dollar” accounts.

Three basic criteria • Financial status • National or local credit rating organizations • Annual reports • The need for the product or service • Researching the prospect’s previous buying record. • The ability to purchase. • Based on number of factors.

Preparing for the Presentation Call Once a qualified prospect has been called on and has expressed an interest in the property, a presentation sales call be made.

Why a presentation saels call fails? • Planning for the call was inadequate. • The salesperson was anxious or nervous. • The salesperson failed to reach the decision-maker.

Thorough presentation results in • Increased credibility. • Increased confidence. • Increased probability of reaching the decision-maker.

Pre-presentation Planning • To be effective • Property research • Competition research • Client research

Property Research • Two basic methods of improving property knowledge • Studying a property fact book • Developing a working knowledge of all the property’s departments • The facts obtained • Should be studied, memorized, and updated when necessary

The property fact book • General property description-location, age, layout, and so on • Guestrooms-number, type, special rooms, amenities, security • Restaurants and lounges-number, hours, menus (including room service menus), seating capacities, types of seating, entertainment, special promotions • Meeting and banquet facilities-number of rooms, seating capacities, services offered, banquet menus, rates • Audiovisual equipment-types of equipment offered, availability, and prices • VIP packages-amenities and prices • Transportation-availability and rates, with special attention to airport transportation

Recreation facilities-types, rates, hours, lessons available, rental equipment, supervision • Outside services-secretarial services, shopping services, and so on • Vendors-florists, photographers, musicians, and their rates • The community and surrounding areas-area attractions (locations, fees, hours, group rates, etc.) and community atmosphere (rustic, metropolitan, suburban, and so on) • Guests and finances-guest profiles; present guest mix; optimum guest mix; peak, valley, and shoulder periods; average daily rate from each market segment

Competition Research • Competition research • You must know as much about competitors’ properties as your property to sell successfully against the competition. • It is impossible to sell your property if you are unable to show clients how your property can serve their needs better than the competition can. • Strengths and weakness (see Exhibit 3) • Emphasize your property’s strengths in areas that relate to client needs. • Differ from market segment to market segment

Information gathering • Visits to the competition • Inquiries to competitors’ properties • Studies of the competition’s marketing plans and annual reports • Etc. • Competition’s sales method, pricing strategies, promotional methods, and sales staff size and ability • Intangibles as the reputation, friendliness, and service standards of other properties.

Client Research • Information available • Other clients who know the client • Annual reports • Internet sites • Business directories • Articles • Trade journals • Membership directories and lists • Needs, characteristics, and requirements vary from one market segment to another.

To become knowledgeable about market segments, their needs, and requirements • Study research done on market segments • Study what is happening in the industries of your key customers • Brainstorm with hotel staff to complete a customer needs analysis for each market segment (see Exhibit 4)

The Sales Kit • Contents • A well-organized and professional sales kit. • A general property information sheet-a summary of what the property has to offer • A meeting and banquet room information sheet • Testimonials or endorsement letters • Business cards • Information in the sales kit is more meaningful • If it is accompanied by visual aids as 8 X 10 color photographs of rooms, restaurants, banquet facilities, and the exterior of the property. • A map of the hotel’s general vicinity indicating transportation terminals and nearby attractions

Projecting a Professional Image • Personal factors that can affect the success • Appearance, Attitude, Approach to clients • Never smoke, chew gum, or drink during a sales call. • Unnecessary materials (coats, umbrellas, newspaper, literature for other sales calls, and so on) should be kept to a minimum. • Punctuality • Nonverbal communication, voice quality, listening skills, and negotiating skills

Nonverbal communication • Appearance: hairstyle, makeup, wardrobe • The handshake: extend your hand first and maintain eye contact with the client while gripping the client’s hand firmly. • Territorial space: cultural differences, four space; public, social, personal, and intimate space • Body language: face, arms, Hands, legs, posture

Voice Quality • Voice tone, inflection, and enunciation during a sales call. • Avoid slang and technical jargon. • Speak slowly. • Accent • Listening Skills • Genuine interest in your clients’ needs, and listening is an important part of building rapport. • When the client is speaking, face him or her and eliminate as many distractions as possible. • Eye contact and nodding in agreement. • Pay careful attention to what is being said.

Negotiating Skills • Negotiating involves two or more parties coming together to reach an agreement for their mutual benefit. • Gathering information • Deadline • Competitors • Past problems • Budget • Other key issues • Decision-maker

The Presentation Sales Call You must have a planned objective for the call. Some type of commitment from the client is the main objective of any sales call. Having an objective in mind helps to keep you on track.

Five steps that will help ensure success • Opening the sales call • Getting client involvement • Presenting your property • Overcoming objections • Closing and following up

Step 1: Opening the sales call • Introduction • Introduce yourself and your property • Offer a brief but firm handshake, maintain eye contact, and present a business card • Build rapport through a brief conversation • Communicate your knowledge of your prospect’s organization or needs • Purpose Statement • Purpose of the visit • Benefit Statement • Not sell the product, sell what the product can do for the client. • Bridge Statement • Asking for permission to continue the sales call

Step 2: Getting Client Involvement • A Fundamental Rule • Questioning always precedes any sales representation. • Questioning • Questioning helps you custom-tailor the sales call. • Types: Closed-ended question, Open-ended question • Categories: fact-finding, feeling-finding, problem-finding. • Important Skills • Listening to the client’s response carefully. • Rewarding remarks.

Step 3: Presenting Your Property • Rule • Mention those features and services that are relevant to your prospect’s needs. • Three skills • Organization: All important points are covered in logical order. Overview, present each point, and summarize (see Exhibit 5). • Effective Speaking: Enthusiasm • Visual Aids: Pictures, charts, and graphs • Closing the Presentation • Do you have any questions?

Step 4: Overcoming Objections • Objections • Verbal or nonverbal. • Minimize objections (see Exhibit 6) • Types of objections • Price or rate • Product or service • Lack of interest

Step 5: Closing and Following Up • Two basic types of closes • Test closes: try to draw a reaction from the client. • Major closes: a question or statement that asks form the sale (see Exhibit 7). • Following Up • Consist of a brief thank-you letter. • Follow-up confirmation • Build long-term relationships.

Improving Sales Productivity Sales is a highly competitive field, and you should constantly monitor your performance in a number of areas.

Time Management • Good time management is crucial to a success sales career. • Keep a daily log for a minimum of two weeks to determine how much time you spend on sales activities; paper work; meetings; telephone calls; unproductive activities such as travel time; interruptions, waiting on the telephone, and waiting at appointment; and other activities. • Establish priorities-urgent, important but not urgent, and tasks to be delegated-to ensure greater production. • Workday planning: Daily, Weekly, Monthly

Key Account Management • A typical salesperson • Handles 300 to 400 accounts. • High potential and low potential • Account assigned • Impact, present or potential • Level 1: new accounts • Level 2: High potential accounts • Level 3: New accounts with medium potential or present accounts that have medium potential but aren’t providing an acceptable level of business. • Level 4: Accounts that have medium potential and are providing an acceptable level of business. • Level 5: New or present accounts that have low potential and do not warrant great deal of your time.

Effective Sales Strategies for Hotels