Retail Survival Guide: Sales Training - Nov 08

By Sonya Jennings

Retailers are struggling to make the most out of every opportunity in an economic climate that results in fewer people walking through their doors. According to Steve Richardson, vice president of A&M Flooring America in Fresno, California, retailers absolutely cannot do this year the same things they did last year.

The bottom line is that closing ratios must increase and that’s achieved by fine-tuning closing techniques. Richardson defines six concrete things that salespeople can do to increase their closing ratios.

Offer “Triplicate of Choice”
So often, Richardson points out, a salesperson will show a customer the cheapest product that they believe will meet the customer’s expectation in order to compete with the store down the street. The salesperson is thinking about price, price, price. Instead, in every sales situation, offer the customer three options in the same color, “good,” “better,” and “best.” Then clearly define the features, advantages and benefits of each, explaining why one is better than the next.

According to Richardson, customers like to have options, and 80% of all people gravitate toward the middle, so you want your highest margin products to be in the “better” category. Customers typically don’t want the “good” option because of quality concerns and they think the “best” option is priced too high, so they go for the “better” choice. “Good, better, best” should be chanted almost like a mantra so that your salespeople don’t forget in a sales situation. When offering “good, better, best,” always give the customer a reason to purchase. For instance, most people expect carpet to last for eight to ten years. If the carpet doesn’t perform to the customer’s standard, she might be back in three years to replace the carpet. No one wants to go through the hassle and expense of replacing carpet every three years, so tell her why this product is going to last longer. Be sure to discuss wear and tear, stain-resistance, and specifically address the features, advantages and benefits that speak to her concerns.

Upfront financing discussion
At the beginning of the sales process, offer the customer financing. Richardson believes that it’s better to offer upfront financing because it can pinpoint how much money a customer can spend. It’s not helpful to spend time choosing a product that the customer can’t afford. When a customer enters the store, a salesperson should say, “We have some amazing financing options for you today.” (Then tell her what they are, for example, “Three years, no interest.”) “Are you considering financing your purchase?” Explain that there’s no commitment, it takes five minutes, and it can pinpoint a price range to browse. If she seems interested in financing, but doesn’t want to take the five minutes to become approved immediately, say, “If we see what we are working with upfront, it can give us a starting point so that we don’t waste time looking at products that are not in your target price range.” Knowing how much money the customer is approved for will give a salesperson a good indication of what product options to show.

Measure in the home
Salespeople should always measure in the home, Richardson says. A measuring service won’t be able to offer the customer add-on sales. For instance, if you know a customer is approved for $6,500, and she has only spent $4,000, it’s an opportunity to come into her home and suggest add-on sales. “We can replace your bathroom vinyl as well. We can offer you an area rug to cover your hardwood. Have you considered window treatments for your family room?” If she’s financing, tell her the extra amount that it would cost per month. For instance, “For an additional $20 per month, we can replace both bathrooms with new vinyl.” Richardson emphasizes, “If you hire a measuring service, you are missing a huge selling opportunity. Having the salesperson in the home can and does result in add-on sales. This is the way to grow your tickets.”

Shop the competition
To have a game plan for success, Richardson points out that, “A business must know and understand what it is up against.” Much like a football team, a true competitor studies the strengths and weaknesses of the opponent. Information creates opportunity. Things you need to know about are hours of operation, current ads and specials, type of products, aesthetics, sales style, financing options, who measures in the home, condition of the restrooms, and parking. Basically you want to know everything about the operation so that you can have an edge in areas where your competition is weak. According to Richardson, “If your competitor is closed on Sunday, you need to be open and running your biggest promotion.” Do you have an upper edge on hardwood or ceramic? Does your competition greet shoppers at the door? Did they ask for an appointment? Did they use the customer’s first name? Do they measure in the home or use a service? By shopping the competition, you can collect valuable information that can arm salespeople for success when the next customer walks through the door. Wherever the competition is weak, your business should be strong. If your employees will be recognized by the competition, a spouse or friend should make the trip.

Speak the language of your customer
At the beginning of the sales process, sit down and have a conversation with your customer. It’s not all about price, price, price. Listen to her to find out what she’s interested in.

There are four personality types: driver, analytical, expressive, and amiable. A salesperson should be able to identify what type of person has just walked through the door and then tailor the sales presentation to speak to that personality. For example, an analytical type wants detailed information. An amiable type doesn’t respond well at all to a salesperson who comes on too strong. An expressive type needs to see passion, body language, and hand gestures in a sales presentation…if you bore her, she’s out the door. Education is the key.

In sales training meetings, define each type, identify their telltale signs, and give tips for communicating effectively with them. According to Richardson, “So often, salespeople sell to themselves, and their closing ratios are only high with individuals who share their own personality type. Learn to speak to different types of individuals.”

Added touches
Going above and beyond the customer’s expectation is key. After the sale, the salesperson should send a handwritten thank you card to the customer. After installation, make a call to the customer asking if everything is perfect, then ask for a referral. Word of mouth and reputation are paramount in this business, so these added touches will make the customer happy enough to share her excitement with her friends and neighbors. In short, always exceed the customer’s expectations. In this current economic climate, the little things will set your business apart and keep referrals walking through your door.

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