Determine Customer Needs & Overcoming Objections

Determine Customer Needs&Overcoming Objections Marketing 2.09

Sales Process • Preapproach • Prepare for the Sale prior to meeting customer • Approach • Approaching the customer • Determining needs • Presenting the product • Overcoming objections • Closing the sale • Suggestion selling • Relationship building

Buying Motives

Three Types of Customers There are three types of customers • Decided • Customer knows what they want to buy • Can be identified by the way they walk, expression in their eyes / face, & tone of voice • Undecided • Customer doesn’t know what they want to buy • Salesperson helps them make up their mind • Just-looking • Most difficult customer to sell to • Can be decided or undecided but don’t want salesperson assistance

The Approach in Retail Selling • If customer is in a hurry, approach them quickly. • If customer is undecided, let them look around. • Encourage customers to ask questions.

Approaching the Customer • Service Approach: • The salesperson will ask the customer if they need assistance • “May I help you with something?” • “How may I help you?” • Greeting Approach • Simply welcome a customer to the store • Can be formal or informal • “Good Morning” • “Good Afternoon” • Merchandise Approach • Can only be used when a customer is stopped and looking at a specific product • Ex: “Is that the size you need?” • Ex: “Are you interested in a specific color?”

Warm-Up • By what will the emphasis put on each phase of the selling process vary most significantly? • State and local laws • Economic Conditions • Product and client • Geographic area

Determining the Customer Needs 3 Methods

A salesperson’s focus should be to determine the CUSTOMER’S NEEDS as EARLY in the sales process as possible

Determine Customer Needs Method #1 Observing • Look for non-verbal cues • Is the customer holding the merchandise, looking around like they need help, etc… • Looking for the customer to be interested in product Mystery Shopper Video • http://www.youtube.com/watch?v=FeQ3WDhF6wo

Determine Customer Needs Method #2: Listening • Give the customer your undivided attention, don’t interrupt, & provide feedback • Listen for cues to wants & needs • http://www.youtube.com/watch?v=OrxvmM5aUzY

How to determine needs cont. Method #3: Questioning • Ask open-ended questions to encourage customers to talk • Ask clarifying questions to make sure you understand customers’ needs • Don’t ask too many questions in a row • Don’t ask embarrassing questions

Present the Product

Sales Process • Preapproach • Approach • Approaching the customer • Determining needs • Presenting the product • Overcoming objections • Closing the sale • Suggestion selling • Relationship building

Product Presentation • Which Products to Show • After determining customer needs, select products that match those needs • What Price Range to offer • Avoid focusing on the price at the start • Begin by showing a medium priced product, you can move up or down with feedback.

Product Presentation • How many products to show • Show no more than three products at a time to avoid overwhelming the customer • What to say • Talk about product’s features and benefits. • Avoid jargon or using unclear or vague words • Ex: nice, pretty, & fine • Don’t use slang or double meaning phrases • Ex: “You look cool in that suit”

How can you make your presentation come alive? • Displaying and Handling the Product • Creatively display • Handle product with respect • Demonstrating • Demonstrate how product is used • Demonstrate features • Using Sales Aids • Use aids when impractical to demonstrate actual product • Samples, articles, graphs, charts, testimonies, warranty, etc…. • Involving the Customer • If possible, get customer physically involved (hold it, smell it, taste it, use it., etc) • Have them use try on the shoes, swing the golf clubs, etc…

Overcoming the Objection

Objection • What is an objection? • Concerns, hesitations, doubts, or other honest reasons a customer has for not making a purchase. • Should be viewed positively by a salesperson because it gives you the opportunity to explain more

Excuses • What are Excuses? • Insincere reasons for not buying or not seeing the salesperson. • Commonly used when they are not in the mood to buy a product

Five Common Objections • Need • “Do I really need this product?” • Product • Concerns with color, size, style • Source • Past experience with product or brand • “My mother really did not like GE appliances. She said that they are poor quality.” • Price • More than the customer wants to spend • Time • “I think I will just wait until next month when the product is on sale”

Specialized methods for handling objections…. • Substitution Method • Boomerang • Question • Superior point • Denial • Demonstration • Third party

Assignment • Working in your sales groups (3-4 students). • You will be assigned a method for overcoming objections. • The group will create a skit that will be performed in front of the class. • Every student must have a speaking part. • Props can and should be used where appropriate. • Explain what your method is and then demonstrate it • From watching the skit, the class should be able to effectively learn the method the salesperson is using to overcome the objection. • You can use this example as your video / role play grade from sales project

Steps of a Sale • Approaching the customer • Determining needs • Presenting the product • Overcoming objections • Closing the sale • Suggestion selling • Relationship building

Sales Process • Closing the Sale • Obtaining a positive agreement from the customer to BUY!

Timing The Close • Buying Signals are the things a customer does to indicate readiness to buy • Facial expressions • Body Language • Trying on Clothes • Holding merchandise

General Rules for Closing A Sale • Recognize closing opportunities • Help customers make a decision • Stop showing additional merchandise • Creates confusion • Narrow selection • Explain advantages or disadvantages of item being considered • Create an ownership mentality • Don’t talk too much or rush the customer

Closing the Sale • As soon as you recognize a buying signal, attempt to close the sale • There are multiple ways to close a sale • Which • Standing Room-Only • Direct • Service

Closing the Sale • Which Close:encourages a customer to make a decision between two items. • Review benefits of each item and ask….. • “Which one do you prefer? The red or the blue one?”

Closing the Sale • Standing-Room-Only“SRO” : When a product is in short supply or when price will be going up • “I’m sorry, but I can’t promise that I can make this same offer tomorrow”

Closing The Sale • DIRECT Close:Directly ask for the sale • Used when buying signals are very strong • “Can I assume that we’re ready to discuss the details of your order.” • “Would you like to pay with a credit card or cash?”

Closing The Sale • SERVICE Close Explain services that overcome obstacles • Gift wrapping • Return policy • Warranties • Guarantees • Terms of the Sale

Closing the Sale • Suggestion Selling: Selling additional goods or services to the customer • Benefits the company, customer, & employee • Occurs after the customer has made a commitment to buy, but before payment is made. • Don’t load customer with unneeded items

Closing the Sale • Ways to suggestive sell.... • Make the suggestion definite • Don’t ask, “Will this be all?” Instead say, “This oil is recommended by the manufacturer.” • Show the item you are suggesting • Put complimentary items near each other • “This purse matches your shoes perfectly.”

Suggestion Selling • Cross Selling • Offer Related Merchandise • Person buys a golf club, suggest golf balls • Buys shoes, suggest socks • Up-Selling • Recommend larger quantities • “If you buy 2, you get 1 free” • “Would you like to supersize that meal?” • Special Sales Opportunities • Point out other sales that the customer may be interested in • Buying pants, mention sale on shoes

Relationship Marketing • Customer Relationship Marketing (CRM): AfterSale Activities to develop customer relationships • Nurture customer relationship • Keep customers informed about sales and news • Goal is to obtain customer loyalty

CRM • Follow-up • Ensure satisfaction, call, card, email • Common on large purchases or online shopping • Customer service • Handle inquiries and complaints, keep customers satisfies • Keeping a client file • Useful info. for future reference • Evaluate sales efforts • What went well?, What can be improved?

Video / Role Play • Approach Customer • Greeting: Service, Greeting, Merchandise • Determine needs: Listen, Observe, Question • Present the Product: Find a few they may like • Overcome Objection: • List objection / concern • Use all 7 methods to overcome individually to overcome it

Warm-up • Speaking in __________ means you are using words the average customer can understand. • Paraphrasing • Layman’s Terms • Tongues • Jargon

Agenda • Sales Process • In your groups think of a sales situation where you can act out a sales scene • Retail • Door-to-Door • Telemarketing • Break up the project so that all members of your group are working • You will act out the script once done

Kid Salesman Video Answer the following questions based on the sales approach used http://www.youtube.com/watch?v=hxCHEJSHOBE • What type of greeting did he use? • What method was used to determine customer needs? • What closing technique best describes the kid salesman’s approach to closing the sale?

Product Knowledge • http://www.youtube.com/watch?v=yaSAAOGOP-E • Greeting • http://www.youtube.com/watch?v=rLywQ7e6CZI • Macy’s • http://www.youtube.com/watch?v=3KMW31Boruc

Determine Customer Needs & Overcoming Objections