Suggestive Sales for Retailers DAA Seminar Aug 2011

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Suggestive selling is good for customers and the bottom line. It takes many forms and can be used in any customer interaction — phone, Internet (social Media), and in person as well as through advertising. There is a basic process to follow and some areas in which suggestive selling experts disagree. The key is to have a process that is logical, meets the needs of your Platinum Profile™ customer, and helps the store's profitability.

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  • Suggestive Sales for Retailers DAA Seminar Aug 2011

    1. 1. Suggestive Selling<br />With Jan Triplett, Ph.D. CEO, Business Success Center<br />#DAA Suggestive Sales<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />1<br />
    2. 2. Your Passion, BSC’s Expertise<br />Our Mission: to help you find your way<br />Sales, marketing, & financial management focus <br /> Providing guided growth strategy to achieve success since 1982<br />Clients include hospitality, retail, manufacturing & professional services<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />2<br />
    3. 3. Your Focus?<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />3<br />Mostly B to C?<br />Some B to B?<br />Better to be P to P <br /> .)(. <br />(Belly Button to Belly Button)<br />
    4. 4. Think FARR, Go Far<br />Find<br />Acquire<br />Reinforce<br />Retain<br />THE BEST CUSTOMERS<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />4<br />
    5. 5. Marketing Defined<br />“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.”<br />-Peter Drucker, Mgmt “Guru”<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />5<br />
    6. 6. Dairy Queen<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />6<br />
    7. 7. Term to know: AOV<br />As acquisition costs rise, businesses are using cross-selling to increase average order value (AOV) and revenues. <br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />7<br />
    8. 8. What is Suggestive Selling About?<br />Profit<br />Image<br />Positioning<br />Demonstrating you were right<br />Recouping your investment<br />Service to customers<br />Making things better ; telling the <br /> truth about the good & bad<br /> (creating a better experience)<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />8<br />
    9. 9. 2 Kinds of Suggestive Sales<br />Cross Selling<br />Selling other products to a customer who has purchased or is about to make a purchase<br />Example:<br />Original purchase : Shoes<br />Cross sell: Belt or socks<br />Upselling<br />Selling higher grade of a product or service<br />Example<br />Original planned purchase: Coach airplane ticket<br />Upsell: 1st class<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />9<br />Combo of logic and customer behavior, respects privacy and does not invade security of customer.<br />
    10. 10. Natural Groupings of Suggested Items<br />Upsell: Competing Products (This better than that)<br />Cross Sell: <br /><ul><li> Complementary – Meant to be sold together
    11. 11. Family — From same manufacturer, same line
    12. 12. Accessory — Add value to the original item; not really intended to be sold separately
    13. 13. Higher conversion if: easy to purchase, integrates smoothly with the rest of the purchase, shows intelligent choice of recommendation (not way-out), exclusive offer</li></ul>© Business Success Center, Austin, TX 2011 All rights reserved.<br />10<br />
    14. 14. Fill in the blank<br />Hamburger &<br />Beer &<br />Shoes &<br />Crackers &<br />Ice cream &<br />Watches need<br />Flowers need<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />11<br />
    15. 15. Agree or Disagree<br />Your best customers don’t like staff to comment or make recommendations.<br />Suggestive selling should only take place after the customer has committed to a purchase.<br />Upsell recommendations should only be for things that are a lower price than the original purchase.<br />Never make more than one suggestion at a time.<br />Suggestions should be timely.<br />Suggestions may need to be relevant to the seasons.<br />Suggestions should be repeated to ensure the customer gets the message.<br />Suggestions should be relevant & the sameforall customers.<br />Suggestions should be in line with local or cultural tastes/interests.<br />It’s more effective when it’s based on customer data and previous choices.<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />12<br />
    16. 16. Good & Bad of Suggestive Selling<br />Bad<br />Good<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />13<br />
    17. 17. How Successful Are You Now?<br />How do you suggestive sell now?<br />How well does it work?<br /> Why? Why not?<br />What would you like to change?<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />14<br />
    18. 18. What Customer Values Suggestions? Who Do You Want?<br />Platinum & Gold — create stabilitySilver —has potentialBronze — uncertainLead — a time waster<br />Concrete — a business killer & never satisfied<br />Radio Active Waste a long-lasting reputation & confidence destroyer<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />15<br />
    19. 19. Platinum Profile™ Customers Value Suggestions…<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />16<br />They are<br />Visionary<br />Adventurous<br />Decisive<br />They trust<br />Themselves<br />You<br />They expect<br />You to give them your extra best<br />
    20. 20. Must Take Into Consideration “Shopper Marketing”<br />Assumes shopper and consumer are not the same<br />Marketing aimed at shopper instead <br /> 70% of brand selections made at the store; 70% don’t know what they want to order until they are at the restaurant.<br />68% of buying decisions unplanned<br />25% of shoppers consider price less important than time.<br />20% of shoppers are price-driven.<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />17<br />
    21. 21. What Do Your Customers Want?<br />More than a solution or something fixed.<br />One of 6 Situational Outcomes™ they value.<br />Reduction, Elimination, Prevention, Create Opportunity, Use Opportunity, Status Quo <br />There are 5 personal risks they are willing to take to get what they value at the price charged: Social, Psychological, Functional, Physical, Financial<br />Provide suggestions based on your ability to deliver that outcome and reduce their risk.<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />18<br />
    22. 22. How Buyers Want to Buy<br />Consider what they are doing/buying currently<br />Determine the need to act<br />Set an overall goal<br />Identify inflexible constraints, desirable objectives; set priorities<br />Evaluate means to get what they want<br />Make a purchase<br />Rejoice or experience remorse<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />19<br />
    23. 23. 2 Sides to a Sale<br />Buyer<br />Goal: Outcome<br />Mission: Get a good product or service that meets a desire at a good value from a great vendor.<br />Seller<br />Goal: Profit<br />Mission: Provide a good product or service at a good price to great customers.<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />20<br />
    24. 24. What Would You Rather Be?<br />Order Taker<br />Advocate<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />21<br />
    25. 25. Whataburger<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />22<br />
    26. 26. What Do You Know Your Customers Don’t?<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />23<br /><ul><li>The products </li></ul>you sell<br /><ul><li>What goes better with what</li></ul>Suggestive selling is also sometimes called upselling or add on selling.<br />
    27. 27. It’s Easy<br /><ul><li> If you know enough
    28. 28. If you care enough about the customer and the products in your store</li></ul>© Business Success Center, Austin, TX 2011 All rights reserved.<br />24<br />
    29. 29. When Can You Use It?<br /> In any customer contact direct or indirect. Phone, Internet, in person.<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />25<br />
    30. 30. Amazon.com Suggestive Selling<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />26<br />
    31. 31. Examples<br /><ul><li>Front window
    32. 32. End caps
    33. 33. Displays
    34. 34. Web sites
    35. 35. Social media
    36. 36. Sales encounters</li></ul>© Business Success Center, Austin, TX 2011 All rights reserved.<br />27<br />
    37. 37. General Process<br />Know your product<br />Know availability<br />Know alternatives<br />Know your customer<br />Ask questions<br />Listen<br />Analyze what you hear, then suggest<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />28<br />
    38. 38. Make Suggestions to Match Your Customer’s Attitude<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />29<br />Positive — Seeking Opportunity <br />Negative — Been Burned, Dissatisfied<br />Status Quo — Maintenance, Same as I bought elsewhere<br />Saves them money, effort, and lets them experiment safely, knowledgeably, & confidently.<br />
    39. 39. Best Practices in Suggestive Selling<br />Increase satisfaction and amount spent. What else is on your list? <br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />30<br />
    40. 40. Amazon and Apple Suggestive Selling<br />Interspire Software<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />31<br />
    41. 41. Worst Practices inSuggestive Selling <br />• Undervaluing your benefits.<br />• Under-estimating costs.<br />• Not knowing your customer.What else?<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />32<br />
    42. 42. ©Business Success Center., Austin, TX 2011. All rights reserved.<br />33<br />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.<br />
    43. 43. Loyalty Program<br />CRM program<br />Suggestive selling/ package deals<br />Go Local Card<br />Special recognition of your Platinum customers <br />Getting more from each sale<br />©Business Success Center, Austin, TX 2011. All rights reserved.<br />34<br />Alternatives to the Daily Deal<br />
    44. 44. Homework<br />Examine your current suggestive selling process. Does everyone know how and when to use it? If not, retrain.<br />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.<br />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.<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />35<br />
    45. 45. Worth Reading<br />Cross Selling by Dr. Tony Alessandra (ebook)<br />The Customer Signs Your Paycheck by Frank Cooper<br />Upselling Success byDr.ManiSivasubramanian (ebook)<br />UpsellingTechniques by Stephan Schiffman<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />36<br />
    46. 46. 37<br />Here’s to your success!<br /> Jan Tripletttriplett@runitright.biz Jan Triplett<br />Blog:ownersview.com<br />(512) 933-1983Please call if you have questions, would like to discuss this seminar or your homework, or meet. No charge.<br />Sales & Financial Management Services<br />August 30, 2011<br />© Business Success Center, Austin, TX 2011 All rights reserved.<br />

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