The 8 Steps of a Sale

1. The 8 Steps of a Sale Marketing Principles Chapters 14 - 17

2. The 8 Steps of a Sale 1. Preapproach 2. Approach 3. Determining Needs 4. Presenting the Product 5. Handling Questions and Objections 6. Closing the Sale 7. Suggestion Selling 8. Reassuring and Following Up

3. The Preapproach The preapproach is getting ready to sell. • Can include: • Studying their products • Keeping abreast of industry trends (reading periodicals) • Caring for personal appearance • Cleaning selling areas • Finding New Customers • Employer Needs, Telephone Directories, Trade & Professional Directories, Newspapers, Commercial Lists, Customer Referrals, and Cold Canvasing

4. Approaching the Customer The approach is the first face-to-face contact with the customer. The critical part of the sales process!!!! Service Approach Method: The salesperson asks the customer if he or she needs assistance. Example: “May I help you with something?” Note: A negative method, usually elicits a negative response. Greeting Approach Method: The salesperson simply welcomes the customer to the store. Example: “Good morning, Ms. Gonzales” or “Good Afternoon” Note: Begins conversation, and establishes positive report. Merchandise Approach Method: The salesperson makes a comment or asks questions about a product that the customer is looking at. Example: “That shirt is made of cotton and polyester blend, so it’s machine washable” or “Is that the size you need?” Note: Usually most effective, focuses on the merchandise.

5. Determining Needs To uncover the customer’s reasons for wanting to buy. When to Determine Needs . . . Retail sales: immediately after the approach Industrial sales: can be determined in preapproach Continue to determine needs throughout sales process How to Determine Needs . . . Observing: look for nonverbal buying motives. Listening: eye contact, undivided attention, empathy Questioning: Build on who, what, where, how & why. Use Open-Ended Questions, Clarify Questions, Not Too Many Questions, and Don’t Embarrass the Customer

6. Product Presentation Show the product and tell about it • Selecting and Explaining Products • Which products to show: select a few that match customer needs • What Price Range to Offer: begin with medium priced product and work up or down. • How Many Product to Show: no more than 3 at a time. • What to Say: talk about the product’s features and benefits. Use jargon and layman’s terms. • What to Do During the Presentation • Displaying and Handling the Product: creative displays and handle with respect • Demonstrating: helps to build customer confidence, demonstrate in dramatic way. • Using Sales Aids: samples, graphs, charts, warranty info, specification sheets. • Involving the Customer: appeals to the customer’s senses

7. Handling Questions/Objections Objections: concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase. “Do you carry any other brands?” “These shoes don’t fit right.” Excuses: insincere reasons for not buying or not seeing the salesperson. “I’m too busy to see you today.” “We don’t need any more ________.” I’m just shopping around.” “I didn’t plan to buy anything today.”

8. Handling Questions/Objections Objections: concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase. Common Objections Need: Usually occur when the customer has conflict between wanting something but not truly needing it. “I really like this sweater, but it doesn’t match anything I have.” Product: More common, include concerns about such things as construction, quality, size, appearance, or style. “ I’m not sure this dress style is appropriate for work”. Source: Often occur because of negative past experiences with the firm or brand. “The last time I dealt with your firm, my order was three weeks late.” Price: More common with high-quality, expensive merchandise. “That’s more than I wanted to spend.” Time: Reveal a hesitation to buy immediately. “I’m not in a position to make that type of purchase now.”

9. Handling Questions/Objections Objections: concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase. Specialized Methods for Handling Objections Boomerang: The objection comes back to the customer as a selling point. Question: The customer is questioned in an effort to learn more about the objections raised. Superior Point: Permits the salesperson to acknowledge objections as valid yet still offset them with other features and benefits. Direct Denial: Provides proof and accurate information in answer to objections. Demonstration: Answers objections by illustrating one or more features of a good or service. Third Party: Involves using a previous customer or another neutral person who can give a testimonial about the product.

10. Closing the Sale Buying Signals – Things a customer does or says to indicate a readiness to buy. Timing the Close Trial Close – An initial attempt to close the sale. General Rules for Closing the Sale: Rule 1 – If you think the customer is ready to make a buying decision, stop talking about the product Rule 2 – When a customer is having difficulty making a buying decision, stop showing additional merchandise. Rule 3 – Help a customer decide by summarizing the major features and benefits of a product. Rule 4 – Don’t rush a customer into making a buying decision. Rule 5 – Use words that indicate ownership, such as you and your. Rule 6 – Use major objections that have been resolved to close the sale. Rule 7 – Use effective product presentations to close the sale. Rule 8 – Look for minor agreements from the customer on selling points that lead up to the close.

11. Suggestion Selling Selling additional goods or services to the customer. Rules for Suggestions Selling Rule 1 – Do suggestions selling after the customer has made a commitment to buy but before payment is made or the order written. Rule 2 – Make your recommendation from the customer’s point of view and give at least one reason for your suggestions. Rule 3 – Make the suggestion definite. Rule 4 – Show the item you are suggesting. Rule 5 – Make the suggestion positive. Suggestion Selling Methods Offering Related Merchandise Recommending Larger Quantities Calling Attention to Special Sales Opportunities

12. After Sale ActivitiesFollow Up Relationship Marketing involves the strategies businesses use to stay close to their customers. Take payment/order with courtesy, and work quickly. Before customer departs, reassure the person that they made a wise buying decision. Following up includes making arrangements to follow through on all promises made during the sales process and checking on customer satisfaction with the purchase. To evaluate customer relations, some businesses send questionnaires or call customers to check on how well they were treated by the sales and service staff.