suggestive sales for retailers daa seminar aug 2011

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Suggestive SellingWith Jan Triplett, Ph.D.

CEO, Business Success Center#DAA Suggestive Sales

© Business Success Center, Austin, TX 2011 All rights reserved.

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Your Passion, BSC’s Expertise

Our Mission: to help you find your way Sales, marketing, & financial management focus

Providing guided growth strategy to achieve success since 1982

Clients include hospitality, retail, manufacturing & professional services



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Your Focus?

Mostly B to C?

Some B to B?

Better to be P to P

.)(. (Belly Button to Belly Button)

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Think FARR, Go Far

1. Find

2. Acquire

3. Reinforce

4. Retain

THE BEST CUSTOMERS© Business Success Center, Austin, TX 2011 All rights reserved.

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Marketing Defined “The purpose of

business is to create a customer. Marketing is the distinguishing, unique function of the business. It is everything seen from the point of view of the customer.”


-Peter Drucker, Mgmt “Guru”

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Dairy Queen


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Term to know: AOVAs acquisition costs rise, businesses are using

cross-selling to increase average order value (AOV) and

revenues. © Business Success Center, Austin, TX 2011 All rights reserved.

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What is Suggestive Selling About?

Profit

Image

Positioning

Demonstrating you were right

Recouping your investment

Service to customers

Making things better ; telling the

truth about the good & bad

(creating a better experience)© Business Success Center, Austin, TX 2011 All rights reserved.

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2 Kinds of Suggestive Sales

Cross Selling Selling other

products to a customer who has purchased or is about to make a purchase

Example: Original purchase

: Shoes Cross sell: Belt or

socks

Upselling Selling higher grade

of a product or service

ExampleOriginal planned

purchase: Coach airplane ticket

Upsell: 1st class


Combo of logic and customer behavior, respects privacy and does not invade security of customer.

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Natural Groupings of Suggested Items


Upsell: Competing Products (This better than that)Cross Sell: Complementary – Meant to be sold together Family — From same manufacturer, same line Accessory — Add value to the original item; not really intended to be sold separately Higher conversion if: easy to purchase, integrates smoothly with the rest of the purchase, shows intelligent choice of recommendation (not way-out), exclusive offer

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Fill in the blankHamburger &

Beer &

Shoes &

Crackers &

Ice cream &

Watches need

Flowers need



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Agree or Disagree Your best customers don’t

like staff to comment or make recommendations.

Suggestive selling should only take place after the customer has committed to a purchase.

Upsell recommendations should only be for things that are a lower price than the original purchase.

Never make more than one suggestion at a time.

Suggestions should be timely.

Suggestions may need to be relevant to the seasons.

Suggestions should be repeated to ensure the customer gets the message.

Suggestions should be relevant & the same for all customers.

Suggestions should be in line with local or cultural tastes/interests.

It’s more effective when it’s based on customer data and previous choices.

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Good & Bad of Suggestive Selling

Good Bad



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How Successful Are You Now?

How do you suggestive sell now?

How well does it work?

Why? Why not?

What would you like to change?

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What Customer Values Suggestions?

Who Do You Want?

Platinum Gold Silver

Bronze Lead Concrete/Radio Active Waste


Platinum & Gold — create stabilitySilver — has potentialBronze — uncertainLead — a time wasterConcrete — a business killer & never satisfiedRadio Active Waste a long-lasting reputation & confidence destroyer

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Platinum Profile™ Customers Value

Suggestions…


They areVisionaryAdventurousDecisive

They trustThemselvesYou

They expectYou to give them your extra best

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Must Take Into Consideration “Shopper Marketing”

Assumes shopper and consumer are not the same

Marketing aimed at shopper instead

70% of brand selections made at the store; 70% don’t know what they want to order until they are at the restaurant.

68% of buying decisions unplanned

25% of shoppers consider price less important than time.

20% of shoppers are price-driven.


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What Do Your Customers Want?


More than a solution or something fixed.

One of 6 Situational Outcomes™ they value.

Reduction, Elimination, Prevention, Create Opportunity, Use Opportunity, Status Quo

There are 5 personal risks they are willing to take to get what they value at the price charged:

Social, Psychological, Functional, Physical, Financial

Provide suggestions based on your ability to deliver that outcome and reduce their risk.

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How Buyers Want to Buy1. Consider what they are doing/buying currently

2. Determine the need to act

3. Set an overall goal

4. Identify inflexible constraints, desirable objectives; set priorities

5. Evaluate means to get what they want

6. Make a purchase

7. Rejoice or experience remorse


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2 Sides to a Sale

SellerGoal: Profit

Mission: Provide a good product or service at a good price to great customers.

BuyerGoal: Outcome

Mission: Get a good product or service that meets a desire at a good value from a great vendor.


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What Would You Rather Be?


Order Taker

Advocate

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Whataburger


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What Do You Know Your Customers Don’t?


•The products you sell

•What goes better with what

Suggestive selling is also sometimes called upselling or add on selling.

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It’s Easy


• If you know enough

• If you care enough about the customer and the products in your store

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When Can You Use It? In any customer contact direct or

indirect. Phone, Internet, in person.


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Amazon.com Suggestive Selling


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Examples


Front windowEnd capsDisplaysWeb sites Social media Sales encounters

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General ProcessKnow your product

Know availability

Know alternatives

Know your customer

Ask questions

Listen

Analyze what you hear, then suggest


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Make Suggestions to Match Your Customer’s Attitude


Positive — Seeking Opportunity

Negative — Been Burned, Dissatisfied

Status Quo — Maintenance, Same as I bought elsewhere

Saves them money, effort, and lets them experiment safely, knowledgeably, & confidently.

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Best Practices in Suggestive Selling

Increase satisfaction and amount spent. What else is on your list?


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Amazon and Apple Suggestive Selling


Interspire Software

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Worst Practices inSuggestive Selling

• Undervaluing your benefits.

• Under-estimating costs.

• Not knowing your customer.

What else?© Business Success Center, Austin, TX 2011 All rights reserved.

33©Business Success Center., Austin, TX 2011. All rights reserved.

It added up in 2010: 332 billion coupons (largest ever) 87% of coupons were inserts; 5.2% handed out in stores; 37% increase in online coupons; Shoppers saved $3.7 billion.

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Loyalty Program

CRM program

Suggestive selling/ package deals

Go Local Card

Special recognition of your Platinum customers

Getting more from each sale

©Business Success Center, Austin, TX 2011. All rights reserved.

Alternatives to the Daily Deal

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Homework


1. Examine your current suggestive selling process. Does everyone know how and when to use it? If not, retrain.

2. Make sure staff know how to determine what to upsell with what and to whom. Make lists if necessary and train. Get ideas from staff for additional upsell pairings.

3. Do market research with your best customers, your Platinum Profile™ customers. What do they like and dislike about how staff makes recommendations to them? What additions or changes can they recommend? What pairings do they like? If they like them, others may as well.

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Worth Reading


Cross Selling by Dr. Tony Alessandra (ebook)

The Customer Signs Your Paycheck by Frank Cooper

Upselling Success by Dr.Mani Sivasubramanian (ebook)

Upselling Techniques by Stephan Schiffman

37© Business Success Center, Austin, TX 2011 All rights reserved.

Here’s to your success!

Jan [email protected]

Jan Triplett

Blog:ownersview.com

(512) 933-1983Please call if you have questions, would like to discuss this seminar or your homework, or meet. No charge.

Sales & Financial Management Services

August 30, 2011

mailto:[email protected]