5.02 Steps of a Sale.

1. The Approach

**The initial face-to-face meeting with the customer.

**Usually within 30 seconds from the time a customer enters the store

***Acknowledge customer presence

Greeting approach**Introduction of

oneself

Service approach

**Considered the least effective approach method

Use when customer has already decided what to purchase

Merchandise approach

Question about the merchandise the customer is looking at

Considered the most effective approach method

Customers make a purchase approximately 63% of the time when a merchandise approach is used.

2. Determining Customers’ Needs and Wants

Buying motives: A customer’s reasons for buying goods and services.

Rational motives: **based on logical thinking and decision-making. (**durability)

**Emotional motives: buying based on feelings. (**prestige)

Patronage motives: choose to shop at one store instead of another. (**merchandise assortment)

3. Types of Customers

Casual lookers: killing time or simply browsing.

Undecided customers: need an item but want information before making a purchase.

Decided customers: **know exactly what they want and why, make their purchase quickly.

Open-Ended QuestionsCannot be answered with a “yes”

or “no”

Used to get more information from customers to help select appropriate merchandise to show

Merchandise Presentation

1. Product features and benefits

Product features: Physical characteristics of an item. (**like fiber content)

Product benefits: Satisfactions customers derive from product features.

2. Translate features into benefits.

Customers buy benefits, not specific features!

Benefits change from customer to customerThe salesperson observes, listens, and

questions to determine which benefit(s) to stress to customer.

Example: “The vertical stripes (feature) make you look taller (benefit).”

– **If they are looking at too many things, they have a harder time making a decision.

Handling Customer ObjectionsObjections: ***Honest reasons a customer

hesitates to buy. spoken or unspoken logical or psychological May relate to the product, price, store, time,

salesperson, or need May occur at any point in the sale Should be welcomed To handle an objection, listen, acknowledge,

restate, and then answer the objection.

Techniques For Handling Customer Objections

1. Boomerang: salesperson handles objections by using the objection as a selling point.2. Question technique: Customer is questioned in order to learn more about the objection(s) raised.3. ***Superior Point: salesperson acknowledges objections as valid, but offsets them with other features and benefits. (** yes, we are more expensive, but we have free alterations”)

Direct Denial: provide proof and accurate information in answer to objections. (**state what the real truth is)

Demonstration: showing one or more features of a good or service.

Third Party: uses a previous customer or another neutral person who can give a testimonial about the product.

Closing the Sale

Getting a commitment from the customer to buy the merchandise.

Look for Buying Signals Physical actions such as smiles or nods

of agreement Comments that imply ownership such as

“This jacket will go well with jeans and other casual pants.”

Questions such as “Does this dress come in black?”

Trial Close: **The salesperson’s first attempt to close the sale.

Get an indication of what else needs to be done to close the sale.

Example: Sales associate asks the customer, “Would you like to place the purchase on your store credit card?”

If you think the customer is ready to make a buying decision, stop talking about the product.

When a customer is having difficulty making a buying decision, stop showing additional merchandise.

Help a customer decide by summarizing the major features and benefits of a product.

Don’t rush a customer into making a buying decision.

Use words that indicate ownership, such as “you” and “your.”

Use major objections that have been resolved to close the sale.

General Rules for Closing the Sale

Techniques for Closing the Sale

Which close: A method of closing the sale that encourages a customer to make a decision between two items. Remove unwanted items to bring the

selection down to two. Review the benefits of each item. Ask the customer, “Which one do you

prefer?”

Standing room only close: used when a product is in short supply or when the price will be going up in the near future. Example: “This is the last pair of

these shoes that we have in your size.”

Direct close: salesperson simply asks for the sale. **Example: “Would you like to

put this purchase on your charge?”

Service close: explains services that overcome obstacles or problems. Example: “May I gift wrap this

for you?”

Suggestion Selling**A method of increasing sales by

encouraging the customer to add items to the original purchase.

Used to help customer into purchasing unnecessary or unwanted items

Takes place after the customer commits to make the original purchase, but before the sale is entered into the register

Requires knowledge of store’s products and customers’ needs

Suggestion Selling (cont.)

**Add-ons: Additional related merchandise items that create complete outfits. (tie with a shirt)

**Trading up: Suggesting a substitute item that is higher priced, of better quality, or more economical for the customer than the item originally requested.

“**More-than-one” selling: A type of suggestion selling in which the salesperson offers more than one (multiples) of the same or similar item.

**Special offers: Additional items that can be obtained as a result of purchasing an item.

Checkout Procedures Enter the sales data into the cash

register Computerized point-of-sale (POS) systems

include price lookup (PLU). Registers compute discounts, subtotal, taxes,

and total sale.

Announce the amount due, take payment, and make change as necessary.

Remove the merchandise from hangers, etc. and fold if necessary.

Place the merchandise in a bag or box. Provide the customer with proof of

payment.

Methods of Payment

Cash

Personal check

Photo identification usually required

Check verifying companies may be used to electronically approve

Cards with magnetic stripsSwiping them through a machine that reads the magnetic strip and sends information over the phone lines to credit bureaus or financial institutions for approval.

Customer PIN or sign

Transactions are electronically approved or disapproved

Methods of Payment (cont.)

Charge/credit cards

Issued by the store or bank.

Salespeople encourage a customer to open a store account.

Charge customers spend four times more than other customers.

Methods of Payment (cont.)

Debit cardsMoney comes directly from the checking account.

Gift cardsElectronically debited with each purchase until the card balance reaches zero.

Additional amounts may be added to gift cards while still carrying a balance or when the balance reaches zero.

A popular means of gift giving.

Deferred Payment Sales Layaway: A deferred purchase agreement

in which the store sets aside the customer’s merchandise until the customer has fully paid for it.Customer pays a deposit and makes payments until the full price has been paid.

If full payment has not been made by a preset deadline, the merchandise may be returned to stock and the deposit may or may not be refunded.

C.O.D.: A “cash-on-delivery” sale in which payment is made to the delivery person when the merchandise is delivered.

Returns, Exchanges And Other Adjustments

Return: Merchandise returned for a refund or credit on account.

Exchange: A transaction in which previously purchased merchandise is returned and replaced by other merchandise.

Exchanges Even exchange: An exchange

transaction in which the replacement merchandise is the same price as the returned merchandise.

***Uneven exchange: An exchange transaction in which the replacement merchandise sells for more or less than the returned merchandise.

Returns, Exchanges And Other Adjustments (cont.)

Exchanges (cont.) Allowance: Partial return of the retail

price for merchandise the customer has kept. Usually given when there is a defect in

the merchandise Often given as a percent off the sales

price or a specific dollar amount off the sales price

Rain check: A certificate that entitles the customer to buy an out-of-stock advertised special at a later time at the same advertised price.

Thanking and Reassuring the Customer

Reinforce customer’s buying decision with an approving statement and a sincere “Thank you.” Use the customer’s name. Shake hands when

appropriate. Give personal business

card to the customer when appropriate.

Thanking and Reassuring the Customer (cont.)

Bonding (relationship selling): doing everything possible to strengthen relationships with customers. Develops loyal, repeat customers Increases sales Examples:

Follow-up calls to ensure customer is pleased Contact with customers when products they

typically purchase come in or are on sale Survey of customers’ needs/wants

Sales Follow-Up

Follow-up: Contact with the customer after the sale has been made. Ensures customer satisfaction and creates

goodwill ***Follow through on commitments made during

the sale. Alterations Delivery Special orders

Send thank you notes or call.

Client File

Helps salespeople manage customer information

Should be updated with each purchase

***A book, card, or electronic file in which customers’ names, addresses, phone numbers, sizes, important occasions, color preferences, and previous purchases are recorded.