Understanding and Developing
Your Sales Force
Back to Sales Forecasting
Summary
An important ingredient in the
successful retail or service business is good selling. Without it,
many sales are lost-sales that may mean the difference between
success and failure. This publication tells how you can train
yourself and your employees to become creative sales people.
To many customers, the salesperson is the business. Therefore, if
the sales personnel are bad, then so is the firm. Although important
to all business, effective sales personnel are especially important
to small business to compete with the big firms on things like
assortment, price, and promotion. Selling effort, on the other hand,
is one place where the small product or service retail business can
compete with larger competitors -- and win.
Effective selling doesn't happen by accident. The small entrepreneur
must work to achieve a high level of sales effectiveness in his or
her business. In order to work toward this goal, the businessperson
should be aware of the different types of salespersons, the selling
process, and the attributes of effective salespersons. Applying such
knowledge to a business situation should result in the desired goal
of effective sales personnel -- the competitive advantage.
Types of Salespersons
There are three main types of sales personnel: (Classified by Level
of Creative Effort)
Routine Effort _____________________________________________Creative
Effort
| Order-Handler |
Order-Taker |
Order-Getter |
Figure 1. Types of Retail Sales Personnel
Order-Handler
The ticket-taker at the concert, the checker at the food store --
these salespeople are working in a routine selling environment. But
due to the nature of their jobs, they will be asked numerous
questions by customers as well as hear complaints about prices and
service. A knowledgeable person with a pleasant personality is
especially needed for this job because this is usually the person
who is dealing with the customer when the customer's money (payment)
is received.
Order-Taker
As noted above, more creativity is found in this job as compared to
the order-handler. The counter attendant at the fast food restaurant
may take the order and then suggest that the customer might also
wish to buy a hot apple turnover. Pleasant personality, fast
service, and suggestion selling on the part of the order-taker can
result in many additional sales.
Order-Getter
For many businesses, the heart of the selling process rests with the
creative selling efforts of their salespeople. Of course, one of the
greatest problems is that there are numerous order-handlers and
order-takers in selling positions that should have order-getters for
optimum selling effectiveness. Clothing, furniture, jewelry and
appliances are just some of the many items that call for
order-getters (a person who can handle a transaction, take an order,
and most importantly, get an order). As for services, the home
security salesperson, for example, who calls on a prospect because
it is observed that the house has no dead bolt locks, is making that
special effort to be an order-getter.
Even though all selling situations do not call for order-getters,
all salespeople will be called upon to sell creatively from time to
time. It is for this reason that all sales personnel need to have a
working knowledge of the creative selling process.
Creative Selling Process
The creative selling process consists of eight steps, none of which
is less important than any other if the process is to be effective.
It should be emphasized to all employees that all steps are vital to
the achievement of all effective selling.
Pre-Customer Contact
A smart builder would not attempt to build a house without a good
foundation. Likewise, a businessperson should not place people on
the sales floor or telephone until these people know the business,
merchandise, services and customers. Before any contact is made with
the customer, every salesperson should know:
Policies, Procedures, and Rules. Have these in writing for all
employees to see and know.
Operation of Equipment
No matter whether the register is electronic or mechanical, the time
to learn how to work it is not after a sale while the customer waits
for change.
Target Market Knowledge
The best salesperson knows something of the likes and dislikes of
the firm's primary customers. The business operator should tell all
sales personnel about the business' customers and their life-styles.
Tell the salespeople about customer's interests and ability to buy.
Product Knowledge
A salesperson gains confidence by knowing about the products and
services he or she is selling. If a person sells shoes, it helps to
know the merchandise as well as how to fit them. If a person sells
building materials, the selling job is probably more effective if
the salesperson can also help answer questions about home repairs.
It helps the person who sells clothes to know something about
fabrics and current fashions. If the person is in the lawn service
business, that person should know about lawn care. Most sales
personnel will not take the initiative to acquire product knowledge.
Management should make such knowledge available to them.
Prospecting
Although not appropriate to every selling situation, prospecting
should be used whenever possible. Essentially, prospecting involves
not waiting for the customer to show up at a store or to phone about
a service. It is concerned with taking the initiative by going to
the customer with a product or service idea. Prospecting may be two
types: new or regular customer prospecting.
New Customer Prospecting
A salesperson sees that a person is getting married. Action is taken
on this knowledge by contacting the person and telling her about
appropriate items (or services) that might be of assistance to a new
bride. By using newspapers and personal contacts, a salesperson can
take the initiative to contact and create new customers.
Regular Customer Prospecting
A firm's best prospects are its current customers. A salesperson
should make a practice of calling regular customers on a periodic
basis to tell them about products or services. "Hello, Mrs.
Anderson, I just wanted to tell you about the new shipment of
dresses that we received today. As I unpacked them, I saw several
that made me think of you". Prospecting with regular customers
works! All salespeople should be encouraged to prospect by phone and
in-person whenever they see regular customers. A word of caution
must be emphasized. Don't go to the well too often. Prospecting with
the same regular customer on a frequent basis can make prospecting
lose the special feeling that it can create in customers. Do not
overuse it.
Initial Contact
The most effective way to close a sale is to open it on a positive
note. Unfortunately, most sales do not open this way.
The typical initial store contact begins in this manner:
Clerk: "May I help you?"
Customer: "No thank you, I'm just looking."
This ritual leaves much to be desired. Why? It is an automatic
statement that shows no creativity on the part of the salesperson.
Also, because the customer has heard the statement many times, his
or her response is usually given without thinking what was said.
Every salesperson should be challenged to treat each customer as an
individual by responding differently to each customer.
Initial contact also means responding to customers when they enter
the sales areas even when they cannot be waited on immediately.
Salespeople should be instructed to tell waiting customers that
"I'll be with you in a moment". Such actions will reduce the number
of customers who leave without being served. When the employee is
free to help the waiting customer, the initial comment should be
"Thank you for waiting". A courteous, creative initial contact with
the customer can go a long way to promote sales.
Presentation of Merchandise
In presenting merchandise (or service) to the customer, the
salesperson should use product knowledge to the best advantage. How?
Buyer benefits
Although it is good to talk about the lawnmower's 3 1/2 horsepower
motor, customers may be more interested in hearing about how fast
the lawnmower will cut the grass. Product knowledge is important but
the salesperson must remember what makes the customer buy. Clothes
may be made of durable fabrics but it is also important to stress
the implied benefit that they will also appeal to the opposite sex.
Sell benefits!
Customer Involvement
Product knowledge can be used to get customer involvement. Show the
customer several features of the digital watch and then have the
customer put it on and work it.
If the interest is there, it will be hard for the customer to take
off the watch so that the salesperson can put it back into the case.
The best way to present many products is to get involvement. Want to
sell dance lessons? Get the customer on the dance floor and let the
fun of dancing do some of the selling. The same is true with
clothes, perfume, sports equipment and almost anything else.
Limit the Choices
If during the sales presentation more than three items are in front
of the customers, the chances of a sale are reduced while the
possibility of shoplifting is increased. If, for example, the
salesperson continues to carry dresses into the fitting room for the
customer to try without removing any, the customer will likely not
buy any because of the inability to decide from among so many
choices. Also, with so many items under study, the clerk may lose
track of how many items are in the fitting room. It is possible that
some may be put on under the customer's clothes while the clerk is
not present, thereby resulting in an expensive experience for the
store. Likewise, if a travel agency attempts to sell a customer a
Caribbean cruise, the chances of making the sale will diminish if
too many trip options are presented. Unless there is a definite
reason for an exception, the rule of three (never show more than
three choices at one time) should be followed whenever merchandise
is presented. Limited choices have been found to promote sales.
Use Showmanship
In presenting merchandise to the customer, encourage all personnel
to be creative. Be enthusiastic about the merchandise. Hold the
necklace up for the customer to see it. Make the portable baby crib
"look" easy to work. Lay the different pieces of the cookware set
before the customer in an attractive, easy-to-see everything manner.
Ask your salespeople to think like a customer. If I were a customer,
what would I like to see?
Message Adaptation
A knowledgeable salesperson should know about the products being
sold. Message adaptation involves deciding what information is
needed to sell a particular customer and how that information should
be presented to that customer. Canned sales presentations do not
allow for adaptation. The effective salesperson will make an effort
to adjust the presentation to the customer.
If the customer knows about gardens and lawns, the person selling a
lawn service should adapt the sales presentation to the level of the
customer's expertise. Don't bore the customer with known facts. It
could lose a sale.
Handling Objections
Remember, if objections are present, progress is probably being made
on the sale. Most salespeople are afraid of objections. Stress to
all employees that objections are a natural part of the selling
process. They do not mean that the sale is lost. In most cases, all
that is required to overcome an objection is more selling on the
part of the salesperson.
Common types of customer objections that are faced by a salespersons
are:
- Product: "That dress looks out-of-date";
- Store: "You never have the right merchandise";
- Service: "If I believe what I hear, I can't get good service from
you";
- Price: "It is just too expensive";
- Salesperson: "Are you sure these shoes fit right?"
These and other objections can be met by the salesperson in several
ways. Using the above product objection as an example, these methods
include: Yes-But: "Yes, it does look out-of-date, but it is the
latest." This approach begins on a positive note by agreeing with
the customer and then moves on to answer the objection.
Counterquestion. "Why do you feel it's out-of-date?" the
counterquestion puts the ball back in the customer's court. By
asking "Why?" the real reason of the objection may become known.
Restate Objection. "You feel that the dress looks out-of-date." By
restating the objection, the customer may respond by saying, "No, I
mean it just doesn't look right on me", or something of a similar
nature.
This approach tends to reduce the magnitude of the objection in the
eyes of the customer.
Direct Response. "The dress you have on was first shown at the
market this season. It is the latest thing." Although offensive to
some, this approach may be necessary if the customer is not going to
buy unless the untruth can be corrected. Tact is important when
using this approach.
These four approaches for handling objections are not meant to be
all-inclusive. These and other approaches do point out, however,
that objections should and can be answered by the salesperson unless
objections are overcome to the satisfaction of the customer, it is
questionable that the sale will be made.
Closing the Sale
In various ways, the salesperson can assist the customer by helping
him or her to make the buying decision. Closing techniques that can
aid in this effort include:
- Offer a service. "Let us deliver it to you this afternoon." A
"Yes" implies purchase.
- Give a Choice. "Do you want the five-piece or eight-piece cooking
set?"
- Offer an Incentive. "If you buy now, you get 10% off the already
low price." If you wait, you don't get the 10% discount.
Better Not Wait. "If you want this refrigerator, better get it now.
It's the last one in stock." Note: it pays to be honest. If the
customer buys and then comes by the store the next day and sees that
the store did have another one, this closing technique may have made
the sale but it could lose the customer.
Suggestion Selling
The customer has made a purchase. Now what? Encourage your sales
personnel to make a definite suggestion for a possible additional
sale. For many businesses, sales can be increased by 25 percent
through positive suggestion selling. Please note that statements
such as" "Will there by something else?" or "Can I get you something
else?" are not suggestion selling. They do not make a positive
suggestion. When a customer buys a lamp, what about a light bulb to
go in it? If a picture is purchased, what about the necessary
hardware to hang it properly? If a suit is bought, what about a new
blouse or shirt that goes well with the colour? Where appropriate,
the creative salesperson will actually get the suggested item and
show it to the customer. Or if a person brings in a watch to be
repaired, why not also clean it while it is taken apart? This type
of initiative usually results in more sales. It should be emphasized
that most customers like to receive a valid suggestion. In some
cases, suggestions may even permit the customer to avoid another
shopping trip to pick up that needed item that they had not thought
about. Good suggestion selling makes sales and builds confidence in
the firm's business.
Sales Follow-up
Although not apparent to many salespeople, follow-up is a part of
every sale. The closing statement, "Thank you for shopping at (name
of store)," is a form of sales follow-up if done with enthusiasm.
Unfortunately, just making the statement in an automatic manner is
about as effective as the other worn out phrase, "May I help you?"
If done correctly, however, it allows the customer to leave on a
positive note, thereby increasing the chances of repeat business by
the customer.
Follow-up may also concern itself with checking on anything that was
promised to the customer after the sale. If delivery is supposed to
take place on Friday, the salesperson will check to make sure that
the promise will be met and, if not, will notify the customer of the
problem. Good sales follow-up will prevent the type of situation
that occurs so often when the customer calls on Friday asking,
"Where is the delivery truck?" A business with a reputation for
sales follow-up is going to obtain additional business because of
its concern about the sale.
Sincere sales follow-up is good business. Imagine the impact that
can be had on a customer when the carpet cleaning service telephones
the customer 48 hours after cleaning her carpets to be sure that
everything is satisfactory. Sales follow-up builds goodwill and
repeat business.
Attributes of a Creative Salesperson
In addition to having personnel who understand and apply the
creative selling process, an organization should try to have
salespeople who possess certain attributes that can make them ore
effective in their jobs. These attributes, which can be grouped into
mental and physical categories, merit further discussions.
Judgement
Common sense, maturity, intelligence -- these and other terms are
used interchangeably with judgement. A salesperson knows that is
does not pay to argue with a customer. The salesperson also knows
that the firm should never be "cut" in front of customers. These
situations reflect the use of good judgement on the part of the
employee. Please note that the term maturity is sometimes used in
place of judgement but that it is not necessarily a function of age.
Many older people do not use good judgement while some younger
employees have a high level of common sense.
Tact
If an employee has a keen sense of what to say and do, many problems
can be overcome before they are created. Many employees give little
thought to the impact of their actions. A child playing with toys in
the toy store is told in a blunt manner to "quit playing with the
toys and go find your mother." While all this is going on, the
mother is standing behind the salesperson. Was a confrontation with
the child necessary? No. Could it have been handled differently?
Yes. How does the child and mother feel about the store? The feeling
is not good. This salesperson lacked the ability to know what to do
and say in order to maintain good customer relations. Be tactful.
Attitude
A good salesperson will have a positive attitude toward customers,
merchandise, services, and the business. A good attitude means that
an employee is willing to accept suggestions, to learn and to apply
the steps in the creative selling process, and to not be afraid of
work. A salesperson with a bad attitude can create unnecessary
problems. A bad attitude is contagious. If an employee is otherwise
competent, management should work with the employee to develop a
positive attitude. Positive attitudes can result in sales.
Selected Physical Attributes
To be a success, the salesperson must physically belong to the
firm's particular environment. Personal appearance and personal
hygiene are important in the selling environment. In terms of
personal appearance, a slim salesperson would be more appropriate
than a larger person in a sales position at a health spa. Equally
important in terms of personal appearance is a clothing salesman who
wears last year's clothing. He will have difficulty in selling the
latest fashions to his customers. Personal appearance does count in
the selling equation.
As for personal hygiene -- body odour, bad breath, dirty hair,
soiled clothes, scuffed shoes, and unkept hands are all reasons why
a sale may be lost. Obviously, be tactful when handling the problem
of personal hygiene. An observant owner-manager should keep a
watchful eye out for hygiene, problems among the staff and, when
necessary, counsel the offending employee in private about improving
his or her appearance. If you don't feel physical attributes are
important, ask yourself if you would like to buy low-calorie health
foods from an overweight salesperson with body odour. Sound funny?
It isn't! Your customers will usually react unfavourably to this and
similar inappropriate selling situations.
Word of Caution
Mental and physical attributes of salespersons are important.
Management must continue to observe sales personnel in regard to the
desired traits. Either mental or physical attributes of individuals
may change over time relative to desired attributes.
Management must be aware of this possibility and attempt to correct
any deviations from desired norms before problems are created.
A business can greatly enhance its probability of success by
stressing the creative selling process, giving special attention to
the desired mental and physical attributes of a creative
salesperson. Good creative selling can provide the competitive edge.
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