Monday, October 12, 2009

basics of consultative sales


IntroductionThe biggest mistake a sales person can make is to "box-shift". To rely on a customers to know what they want and decide which product or service is best for them leads to poor sales, dissatisfied customers and a bad reputation.Why is it such a mistake? Consumers seldom know exactly what they need. They may believe they have the necessary information to decide on a product or service, using the internet, catalogues or friends for research, but it is unlikely that they will know more than a well trained employee.A retailer who sells flat screen TVs is a good example. It is a big purchase for most people and many consumers will do their research before visiting you. Empowered witthis information, they may request a specific make and model from the sales person that they believe ticks all the boxes. It would be easy to "box-shift" and get the sale there and then. However...Do they know about the latest developments in flat screen technology? Have they researched compatibility to ensure it works with their other equipment? Do they know about special offers, bundle deals and, most importantly, stock availability. Are they sure that a 40" screen will be suitable for their room size? Have they thought about cables, wall fixtures and extended warranty?The basis of any interaction with a customer should be to meet their true need. That is, as an experts in your given field, you should be able to identify a consumers' needs better than they can and offer a product or service that will meet that need. This applies to every business; from florists to toy shops; mobile phone services to travel agents; gift shops to clothes retailers.A consultative sales process allows you to do this by providing a framework that allows you to find out information about you customer which you use to recommend the right product or services, underpinned by your expertise. Below are the areas which support the consultative sales process in any business.Know your productsIt may seem like an obvious thing but for a successful sale you must know what you are talking about. All too often I see sales people reading the back of packaging to answer a question or relying on generic statements that don't personalise the interaction ("Yeah, that one is quite popular at the moment").People buy from other people. A solid knowledge of what you are selling gives massive amounts of confidence to customers. Especially important is to know about availability. There is no point in promoting the features of a product only to find out that you have no more in stock or that the service is not available at the desired address.Know your customerOnce you are tooled up with knowledge about your products, it is time to get to know your customer by questioning them. The kind of information you need will depend on the market you are in and the products you have to offer. The following is a general rule of thumb and can be expanded as required. It doesn't hurt to write some of this information down during the interaction as you will need it later.Permission: make sure the customer is happy to answer your questions. For example:"I want to make sure that you get the perfect product from us today. Are you happy for me to ask you a few questions to find out a little more about what you need?" Reason for purchasing: simply finding out why they are purchasing from you can give you a wealth of information. Is it a gift? Who's the recipient? Is it a first time purchase or are they upgrading? Is it a necessity or a leisure purchase? Are they replacing something and why?
How are they going to use the product or service: probably the most important thing to find out!. This is where you should ask the most questions to find out what their true needs are. Using the flat screen example you may ask: Where is it going to go? What equipment will be connected to it? Who will use it? What will be watched on it? (Some TVs are much better at sport than others, some are suited to home cinema) How long do they intend on keeping it?
Personal information where relevant: many purchases which involve a contract will require personal information. Ask these questions now so that you can highlight any possible needs that they may raise. For example, employment status, marital status and an children all change a person's requirements. Someone with children may want a flat screen TV with parental controls. Recommending a FAB product You now know what your customers needs are and can match them to a suitable, available product that you offer. Using the Features of a product, you should highlight the Benefits to your customer (Features and Benefits or FAB)Features are what the product can do and the Benefits are how it will meet the needs of your customer. This is where the information captured above is used so refer to any notes you took. For example:"This is a fully High Definition TV (F) which is compatible with your Blue Ray Player (B)""It has 6 ports for connecting other equipment (F) which covers your DVD Player and set top box (B) and allows for any new equipment you get in the next 3 years (B)""It comes with an inbuilt recorder (F) which allows you to pause live TV (F) which is great when you have children in the household (B)"Ask for the businessAll the hard work is done. By now the customer should be confident that the product you are offering them meets the needs that you identified. The final step is to ease them into the purchase phase. Simple questions like "Are you happy with all of that? Well let's do the paper work" or "Shall I go ahead and take that to the till" will gain a commitment from the customer and close the sale.If the customer does say "No" you can go back over the information to check if something was misunderstood.Finally, ask for a recommendation. Whilst processing the sale you have time to turn the customer into a walking advert for your business. "If you know anyone else who is looking to make a similar purchase, I'd be happy to help them. Feel free to tell them to ask for me directly"ConclusionBy using a consultative sale you can increase conversion, increase up-sell/cross-sell rates and improve your customer experience. Great sales lead to loyal and happy customers who promote your business more than any advertising can.Know your products, know your customers, FAB your sales and always, always ask for the business.

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