Entrepreneurship and Small Business Management Chapter 11 Smart Selling and Effective Customer...

Entrepreneurship and Small Business Management

Chapter 11Smart Selling and Effective

Customer Service

© 2012 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.2

Entrepreneurship and Small Business Management, 1/eBy Steve Mariotti and Caroline Glackin

Ch. 11 Performance Objectives

Explain the importance of selling based upon benefits.

Use the principles of selling to make effective sales calls.

Know how to make a successful sales call.




Ch. 11 Performance Objectives(continued)

Analyze and improve your sales calls.

Provide excellent customer service.

Define customer relationship management and understand its value.




Many Successful Entrepreneurs Started as Salespeople

Ray Kroc founded McDonald’s.

Billy Durant founded General Motors.

King Gillette invented the safety razor.

Mary Kay Ash co-founded Mary Kay Cosmetics.




Essence of Selling is Teaching

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

Listen to customers; their complaints can teach you how to improve your business.




Principles of Selling Make a good personal impression. Know your product or service. Believe in your product or service. Know your field. Know your customers. Prepare your sales presentation. Think positively. Keep good records. Make no truly “cold” calls. Make appointments. Treat everyone you sell to like gold.




The Sales CallA sales call is an appointment with a potential customer to explain/demonstrate your product or service. During the call, make the customer… …aware of your product or service. …want to buy that product or

service. …want to buy it from you.




Contacting Sales Prospects Use technology to assist you, but with

careful consideration. Correspond by electronic mail (e-mail). Post messages on blogs and newsgroups. Don’t send spam (unwanted ads). “Lurk” before participating in newsgroups.

Prequalify your leads to make the best use of your time and prospects’ time.




Eight-Step Sales Call1. Prepare yourself mentally.2. Greet the customer politely.3. Show the product or service.4. Listen to the customer.5. Deal with objections…always

acknowledge and handle them.6. Close the sale.7. Follow up regularly.8. Ask for new customer referrals.




Three Call 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 to uncover problems your product/service could solve.

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




Analyze Your Sales Calls Did the customer open up to me? Why or why

not?

Did I do/say anything that turned the customer off?

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

Was I able to make an honest case for my product or service?

Did I improve my relationship with this person?




Turn Objections into Advantages Study objections you have received. Group into categories and develop

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




Use Technology to Sell

Multimedia demonstrations Web site E-mail, blogs, and newsgroups Webinars and audio conferences Digital planners and calendars Sales and contact management

software Personal digital assistants (PDAs)




The One-Minute Sales Call Keep the sales pitch clear and

concise. Write it down. Practice delivering it. The pitch needs

to sound natural and unrehearsed. Get constructive feedback. Remember: Listen to the customer!

Don’t just use the pitch!




Customer Service Is Keeping Customers Happy

Know your customers by name. Deliver products/services on time. Help customers carry large or heavy

purchases to their cars. Suggest a less expensive product that

might meet the customer’s need. Listen politely to complaints and provide

full refunds to dissatisfied customers. Provide a toll-free customer-service line.




Positively Outrageous Service* Random and unexpected

Out of proportion; catches attention

Involves the customer personally

Creates positive word of mouth

* T. Scott Gross




Costs of Losing a Customer Loss of dollars that the customer

was spending at your business.

Loss of jobs.

Loss of reputation.

Loss of future business.




Customer Complaints are Valuable Always acknowledge and address

complaints and criticism. Complaints are a valuable source of market research!

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

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




What Is a CRM System? Customer relations management—

company-wide policies, practices, and processes that a business uses to manage its interactions with customers

Integrates marketing, sales, and customer-service components

Designed to maximize customer satisfaction

Encourages repeat buying and referrals




CRM Supports Market Research Via Customer Service Include brief market surveys with

purchases.

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

Have employees regularly ask customers if they are satisfied with products/services.

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




SBA’s Three Golden Rulesfor CRM

Put the customer first.

Stay close to your customers.

Pay attention to the little details.




SBA’s 5 Rules of Customer Care

Conduct your own survey by talking to customers.

Check employees’ telephone manners. Give customers prompt and cheerful

help. Make customer service a team effort. Extend your efforts after hours.

Entrepreneurship and Small Business Management Chapter 11 Smart Selling and Effective Customer...

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