Entrepreneurship Chapter 5 Smart Selling and Effective Customer

Entrepreneurship Chapter 5 Smart Selling and Effective Customer Service Mariotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Many Great Entrepreneurs Started as Salespeople n Ray Kroc, founded Mc. Donald’s n Billy Durant, founded General Motors n King C. Gillette, invented safety razor n Aristotle Onassis, sold tobacco wholesale before becoming multimillionaire in shipping business Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Essence of Selling is Teaching n Teach customers about the benefits of your product/service, don’t just tell them about its features. n Listen to customers: Their complaints teach you how to improve your business. Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Principles of Selling 1. Make a good personal impression 2. Know your product/service 3. Believe in your product/service 4. Know your field 5. Know your customers 6. Prepare your sales presentation 7. Think positive 8. Keep good records 9. Make appointments 10. Treat everyone you sell to like gold Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Sales Call A sales call is an appointment with a potential customer to explain/demonstrate your product/service. During the call: n n n Focus on the customer Listen to uncover his/her needs Be honest, if your product/service will not meet those needs Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

8 -Step Sales Call 1. 2. 3. 4. 5. Prepare yourself mentally Greet customer politely Show product/service Listen to customer Deal with objections, always acknowledge them 6. Close the sale 7. Follow up 8. Ask for referrals to other potential customers Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

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 to uncover 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. Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Analyze Your Sales Calls After each call, ask yourself: n Did the customer open up to me? n n n 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? Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Turn Objections Into Advantages 1. Study objections you have received 2. Group into categories and develop objection-proof answers for each n Price n Performance n Follow-up service n Competition n Support n Warranties Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Customer Service Is Keeping Customers Happy Examples of customer service: 1. Know your customers by name 2. Deliver products on time 3. Help customer carry product to the car 4. Suggest a less expensive product that might meet the customer’s need 5. Provide a full refund when a customer is dissatisfied 6. Listen politely and with empathy to customer complaints Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

4 Costs of Losing a Customer complaints can be difficult to listen to, but losing a customer will cost you: 1. Loss of current dollars customer was spending with your business 2. Loss of jobs 3. Loss of reputation 4. Loss of future business Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Customer Complaints are Valuable n n n 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. Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Customer Service Is Marketing Your customer service should always reinforce your marketing and competitive advantage. n n 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. Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Collect Market Research Via Customer Service n n 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. Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.

Build Long-term Relationships with Customers Stay in touch via Web site, email. Offer customers birthday discounts, etc. n n Ask customers to refer you to new customers. A successful business is built on repeat customers! Marriotti: Entrepreneurship © 2007 Pearson Education. Upper Saddle River, NJ, 07458. All Rights Reserved.