entrepreneurship

Mariotti: Entrepreneurship

© 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Entrepreneurship

Chapter 5 Smart Selling and Effective Customer

Service

Marriotti: Entrepreneurship


Many Great Entrepreneurs Started as Salespeople

Ray Kroc, founded McDonald’s

Billy Durant, founded General Motors

King C. Gillette, invented safety razor

Aristotle Onassis, sold tobacco wholesale before becoming multimillionaire in shipping business



Essence of Selling is Teaching

Teach customers about the benefits of your product/service, don’t just tell them about its features.

Listen to customers: Their complaints teach you how to improve your business.



Principles of Selling1. Make a good personal impression2. Know your product/service3. Believe in your product/service4. Know your field5. Know your customers6. Prepare your sales presentation7. Think positive8. Keep good records9. Make appointments10. Treat everyone you sell to like gold



Sales Call

A sales call is an appointment with a potential customer to explain/demonstrate your product/service. During the call: Focus on the customer Listen to uncover his/her needs

Be honest, if your product/service will not meet those needs



8-Step Sales Call1. Prepare yourself mentally2. Greet customer politely3. Show product/service4. Listen to customer5. Deal with objections, always

acknowledge them6. Close the sale7. Follow up8. Ask for referrals to other

potential customers



3 Behaviors of Successful Salespeople

1. Let the customer talk more than you do. You are there to learn about the customer’s needs.

2. Ask the right questions. Be a friend. Your goal is touncover problems your product/service could solve.

3. Wait to offer product/service until later in the call. You cannot offer a solution until you know your customer’s needs and problems.



Analyze Your Sales CallsAfter each call, ask yourself: Did the customer open up to me?

Which of my questions helped the customer describe his/her needs?

Was I able to make a good case for my product/service?

Did I improve my relationship with my potential customer?



Turn Objections Into Advantages

1. Study objections you have received2. Group into categories and develop

objection-proof answers for each Price Performance Follow-up service Competition Support Warranties



Customer Service Is Keeping Customers Happy

Examples of customer service:1. Know your customers by name2. Deliver products on time3. Help customer carry product to the

car4. Suggest a less expensive product that

might meet the customer’s need5. Provide a full refund when a customer

is dissatisfied6. Listen politely and with empathy to

customer complaints



4 Costs of Losing a Customer

1. Loss of current dollars customer was spending with your business

2. Loss of jobs3. Loss of reputation4. Loss of future business

Customer complaints can be difficult to listen to, but losing a customer will cost you:



Customer Complaints are Valuable Always acknowledge and address complaints and criticism. Valuable source of market research!

Never overreact to negative remarks from customers. Do not take these personally.

Always tell the truth about any negative aspect of your product/service. When you admit a negative, you gain customer’s trust.



Customer Service Is Marketing

If your competitive advantage is speedy service, make sure your employees move fast.

If your competitive advantage is a cozy atmosphere, employees should not rush customers.

Your customer service should always reinforce your marketing and competitive advantage.



Collect Market Research Via Customer Service Include brief market surveys with purchases.

Ask selected customers to fill out longer surveys, offering a discount as incentive.

Have employees regularly ask customers if they are satisfied with product/service.

Keep database of customer contact info, preferences, previous purchases, etc.



Build Long-term Relationships with Customers

Ask customers to refer you to new customers.

A successful business is built on repeat customers!

Stay in touch via Web site, email. Offer customers birthday discounts, etc.

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