The Sales Process
July 7th 2009 03:49
Any person with sales experience is familiar with the basic formula for the "sales process." Greet the customer, qualify the customer, provide products or services to fit his/her needs, explain features and benefits, overcome objections, allow the customer time to make a decision, then close the sale. It seems simple enough, but let us break down some of the components of sales even further.
When a customer enters a store, the best way to give a good first impression is by greeting the person. The problem is that many businesses misunderstand the greeting. Some stores require a sales shark to stand within fifteen feet of the entrance. They're called sharks, because they look as if they're ready to attack the customer. This is typical of most furniture stores and car lots.
Some stores require a "greeter" whom they pay extra to stand in front of the door with a clipboard to either have the customer sign in and wait to wait or direct him or her to the appropriate destination. Unfortunately, if this person is in a poor mood, it can negatively affect customer satisfaction, thus defeating the purpose of greeting to give a good impression. This sets the sales process off in a negative direction, not even giving the poor sales representative a chance at a decent paycheck.
To qualify a customer means to figure out what it is that brings this particular customer into this particular store. It means getting through the "no thanks, I'm just looking" facade and learning the customer's deep dark secret: what, when, why, and how he or she is intending to purchase. This is a process in and of itself, but it is much easier than it seems.
For some reason this takes years of experience to master, but here's the secret: if a customer is wandering through a furniture store, for instance, he or she is searching for furniture. This checks off part of the "what" from the list. Then, the next step is figuring our what type of furniture the customer is searching for and why. Did he or she just purchase a house? Is there a renovation going on?
Also, most people do not carry enough cash around to purchase $2,000 worth of furniture (although it has happened.) Therefore, in many cases, the answer to "how" is dependent on what type of financing the company has to offer. If the financing options do not meet the customer's needs, a sale will not be made.
Provided that the greeting went well, and the customer is reasonably left alone to browse on his or her own, the next important piece of the puzzle is approaching the customer in a sincere and friendly way. Some sales reps use a bottle of water or can of soda. Others make jokes or small talk. Either way, the key is to engage the customer in a discussion other than merchandise. Then, after the customer is comfortable, in most cases the customer will reveal his or her needs.
Once the sales rep learns what the customer is searching for, it is important to come up with two or three items in the store that match what the customer needs as closely as possible. It is best to stick with three, because too many options will most likely confuse the customer, causing him or her to either leave or choose a product below the price of the original planned item.
When the customer spends more than a few minutes with one particular product, such as a leather sofa, it is important to explain the best features of the product and how they benefit the customer. A sales professional never ends a product presentation with features. He or she always gives examples of how these features benefit the customer. People want to know what's in it for them.
All customers have objections. "This costs too much." "We can't afford it right now." "I don't think this will fit in my house. I should go home and take measurements." "I have to go home and discuss it with my wife. She's the boss." Most sales reps have heard it all, and they know there's always a counter. Figure out how to overcome these objections before they are voiced, and it makes life much easier.
One of the biggest mistakes a sales professional can make is not allowing the customer time to make a decision. Often customers leave empty-handed because they feel hurried by the sales rep. True, giving a customer time alone means more time to talk him or herself out of making a purchase, but as long as the rep allows time and returns before the customer leaves, he or she may have the chance to overcome further objections and make an attempt at closing the sale.
When a customer seems as if he or she has made a decision, it is important for the employee to take charge and complete the sale. How to do this depends on the customer, but it almost always requires a certain amount of assertiveness.
Some customers are easy and already know what they want. They can walk into the store, tell the first sales rep they see what they want, and they are willing to pull out their wallet and write out a check or hand over their credit card right away. (If you're new to sales, do not get your hopes up. This type of customer is rare.)
The other side of the coin, the sales process guru, is a sales rep's nightmare in many cases. This customer is or was a salesperson and is well aware of the process. He or she will only purchase if the representative performs like a circus monkey and impresses the customer. This is difficult to do, and it often results in a larger-than-usual discount which irritates the managers and reduces the rep's commission. Again, this is somewhat rare.
Most customers fall somewhere in the middle. They probably do not know exactly what they are looking for, so they need some assistance. They also need some space from the employees, and they don't exactly have the money to pay off their bill in one lump sum. Financing options are important to this customer, almost as much as the need to purchase the item to begin with.
After the sale is closed, it is important for repeat business to give the customer a business card so he or she can call with any questions and to thank the customer for his or her business. It is also important to follow up in several days (about two or three days is perfect) to ensure the customer is satisfied with his or her purchase.
Although the fear is that the customer will be upset, this should not discourage the rep from calling. If the customer is upset, he or she would most likely have contacted the rep already or called customer service. This also gives the rep a chance to resolve any issues him or herself, giving the customer proof that not all sales people are "the same."
One thing to remember is if the business has a policy for "splitting sales" unless the customer specifically requests a particular sales representative, many customers do not know this. A customer who made a purchase a year ago at a mattress retailer may return for the spare bedroom and not remember who he or she worked with. It's also possible he or she doesn't have the time, doesn't want to look up her previous rep, or simply doesn't care. It is important that customers not be brought into any disputes between reps regarding this policy.
When a customer enters a store, the best way to give a good first impression is by greeting the person. The problem is that many businesses misunderstand the greeting. Some stores require a sales shark to stand within fifteen feet of the entrance. They're called sharks, because they look as if they're ready to attack the customer. This is typical of most furniture stores and car lots.
Some stores require a "greeter" whom they pay extra to stand in front of the door with a clipboard to either have the customer sign in and wait to wait or direct him or her to the appropriate destination. Unfortunately, if this person is in a poor mood, it can negatively affect customer satisfaction, thus defeating the purpose of greeting to give a good impression. This sets the sales process off in a negative direction, not even giving the poor sales representative a chance at a decent paycheck.
To qualify a customer means to figure out what it is that brings this particular customer into this particular store. It means getting through the "no thanks, I'm just looking" facade and learning the customer's deep dark secret: what, when, why, and how he or she is intending to purchase. This is a process in and of itself, but it is much easier than it seems.
For some reason this takes years of experience to master, but here's the secret: if a customer is wandering through a furniture store, for instance, he or she is searching for furniture. This checks off part of the "what" from the list. Then, the next step is figuring our what type of furniture the customer is searching for and why. Did he or she just purchase a house? Is there a renovation going on?
Also, most people do not carry enough cash around to purchase $2,000 worth of furniture (although it has happened.) Therefore, in many cases, the answer to "how" is dependent on what type of financing the company has to offer. If the financing options do not meet the customer's needs, a sale will not be made.
Provided that the greeting went well, and the customer is reasonably left alone to browse on his or her own, the next important piece of the puzzle is approaching the customer in a sincere and friendly way. Some sales reps use a bottle of water or can of soda. Others make jokes or small talk. Either way, the key is to engage the customer in a discussion other than merchandise. Then, after the customer is comfortable, in most cases the customer will reveal his or her needs.
Once the sales rep learns what the customer is searching for, it is important to come up with two or three items in the store that match what the customer needs as closely as possible. It is best to stick with three, because too many options will most likely confuse the customer, causing him or her to either leave or choose a product below the price of the original planned item.
When the customer spends more than a few minutes with one particular product, such as a leather sofa, it is important to explain the best features of the product and how they benefit the customer. A sales professional never ends a product presentation with features. He or she always gives examples of how these features benefit the customer. People want to know what's in it for them.
All customers have objections. "This costs too much." "We can't afford it right now." "I don't think this will fit in my house. I should go home and take measurements." "I have to go home and discuss it with my wife. She's the boss." Most sales reps have heard it all, and they know there's always a counter. Figure out how to overcome these objections before they are voiced, and it makes life much easier.
One of the biggest mistakes a sales professional can make is not allowing the customer time to make a decision. Often customers leave empty-handed because they feel hurried by the sales rep. True, giving a customer time alone means more time to talk him or herself out of making a purchase, but as long as the rep allows time and returns before the customer leaves, he or she may have the chance to overcome further objections and make an attempt at closing the sale.
When a customer seems as if he or she has made a decision, it is important for the employee to take charge and complete the sale. How to do this depends on the customer, but it almost always requires a certain amount of assertiveness.
Some customers are easy and already know what they want. They can walk into the store, tell the first sales rep they see what they want, and they are willing to pull out their wallet and write out a check or hand over their credit card right away. (If you're new to sales, do not get your hopes up. This type of customer is rare.)
The other side of the coin, the sales process guru, is a sales rep's nightmare in many cases. This customer is or was a salesperson and is well aware of the process. He or she will only purchase if the representative performs like a circus monkey and impresses the customer. This is difficult to do, and it often results in a larger-than-usual discount which irritates the managers and reduces the rep's commission. Again, this is somewhat rare.
Most customers fall somewhere in the middle. They probably do not know exactly what they are looking for, so they need some assistance. They also need some space from the employees, and they don't exactly have the money to pay off their bill in one lump sum. Financing options are important to this customer, almost as much as the need to purchase the item to begin with.
After the sale is closed, it is important for repeat business to give the customer a business card so he or she can call with any questions and to thank the customer for his or her business. It is also important to follow up in several days (about two or three days is perfect) to ensure the customer is satisfied with his or her purchase.
Although the fear is that the customer will be upset, this should not discourage the rep from calling. If the customer is upset, he or she would most likely have contacted the rep already or called customer service. This also gives the rep a chance to resolve any issues him or herself, giving the customer proof that not all sales people are "the same."
One thing to remember is if the business has a policy for "splitting sales" unless the customer specifically requests a particular sales representative, many customers do not know this. A customer who made a purchase a year ago at a mattress retailer may return for the spare bedroom and not remember who he or she worked with. It's also possible he or she doesn't have the time, doesn't want to look up her previous rep, or simply doesn't care. It is important that customers not be brought into any disputes between reps regarding this policy.
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