Why Have a Selling Method?

Why have a selling method?  Using a selling method ensures consistency in delivering quality sales and service to the consumer.  As in any profession, the ability to deliver excellence is achieved through a measurable and consistent delivery of performance—whether it is performing as a musical artist, an Olympic athlete or a Retail Sales Associate.

There are many types of selling methods; your job is to adopt a method that's congruent with your company's mission of providing exceptional sales and service to the customer.  In this course, we will present one of the most popular methods, “Participative Selling.”

The Three “P’s" of Retail
Retail sales primarily deals with Products, Prices and People.

Over the years, there has been a commoditization of Product and Price due largely to the availability of these two elements. This has resulted in a shift to the last area of differentiation for many retailers:  People.  The Participative Selling process focuses on the People aspect, and will give you an edge over commodity selling.

Many of the skills you will learn in the Participative Selling process will help you to better know your customers and build a strong relationship with them.  You will learn to provide them with a buying opportunity that supports their physical and emotional needs.

Physical Needs vs. Emotional Needs
The customer has a physical need, which typically is a product at a specific price or budget.  But there are other needs that can be just as important.  Emotional needs—such as recognition, trust, being understood, feeling respected and appreciated—can turn customers from one-time buyers into lifetime customers.  Your understanding of these needs will help you master the Participative Selling process and help you gain long-term customers instead of short-term visitors to your store.

Participative Selling
This system focuses on both the physical and emotional needs of the customer, and can be quantified and measured to ensure performance.  It is essentially comprised of seven (7) steps or engagements that occur between the Sales Associate and the customer.

1. Greeting
2. Building Rapport
3. Establishing Purpose
4. Qualifying Needs
5. Suggesting Product
6. Asking for the Sale
7. Handling Objections

We call it "Participative" because the process allows the customer to make a buying decision, rather than the “old school” approach of  the Sales Associate trying to push product or “sell” the customer.

Instead, we will be attempting to understand and develop a relationship with our customers that's built on trust and respect. We allow our customer to reach a buying conclusion while reinforcing their emotional needs; this creates a situation that allows that person to become a long-term customer.

3 Concepts of the Participative Selling Method for Music Retailers

Listen as George Hines, President of George's Music Stores, Inc., discusses the three key concepts of the Participative Selling method for Music Retailers, his sales training course:

1.  The Three “P’s” of Retail
2.  Physical Needs vs. Emotional Needs
3.  “Participative Selling” vs. Selling the Customer 

Greet Your Customer

This is the customer's first contact, both with the store and with an individual Sales Associate.  There should be an initial greeting to acknowledge that the customer has entered the store; there also needs to be a more personal greeting that shows the customer that there is someone to assist them.

The “10-Second Rule”
Consider the customer's first 10 seconds in your store as the time that person spends making a quick decision about your company.  Make sure someone offers at least a general greeting, even if from a distance (although we like the idea of a greeter at the front of the store, if possible). This 10 Second Rule is just the preview before the selling process begins.

Now let’s look at sales engagement using Participative Selling.

The “2-Minute Rule”
Within 2 minutes of the customer entering your store, let them know you are available to assist them. Never ask “Can I help you?” because this question will always get a conditioned response.  Instead, use a phrase such as “Thank you for coming in today” or something similar, and then wait a few seconds for a response.  Some customers feel like they will need more space; others will need immediate assistance. Your job is to help them feel “recognized” and to be available to them during the greeting.

To develop a stronger bond, introduce yourself to the customer and ask their name if you don't know it already.  People value those who remember who they are by name; we all want to feel important.  When was the last time someone cared enough in a retail environment to find out your name and introduce themselves to you?  That, very simply, is the value.  And what’s scarce is valuable. Your greeting can make the difference between a sale and a walk.

Video Settings

Segment 4.flv

Build Rapport

Building Rapport is the process of establishing trust between you and your customer.  People buy from people when they feel a sense of trust and connection. Your job is to connect with customers as quickly as possible.  Focus on them. 

Your Best Friend
Imagine if your best friend walked into the store.  What would you say?  “How have you been?” and "When was the last time you were here?" and "It’s great to see you!"  Building rapport is truly a skill, but the easiest way to do it is to think of how you would treat a friend who just walked in.

Every Customer is a Friend of the Store
Remember, every customer who walks in is doing us a favor, and in fact is a friend of the store. We won't stay in business if customers stop walking into our stores, so they truly are our friends that keep us involved in the music business.  And, they all share our appreciation of music at some level, or they wouldn’t be visiting.

Care about your customers like.  Also, take care in connecting and building rapport with them.  When you do this, you will be more successful through the rest of the sales process—and you will enjoy yourself along the way.  So will they.

Power of Rapport
Although building rapport should occur early in the sales process, it should also continue during the sales process.  When you genuinely listen to a customer, you will have more opportunities to reinforce your rapport with them both during and after the sale.

Video Settings

Segment 5.flv

Establish Purpose

Establishing purpose is an easy step that is sometimes overlooked.  People have many reasons to visit a retail store, and sometimes Sales Associates make assumptions that impede their ability to assist customers.

Why are they here?
Customers shop in stores for various reasons; it is important for you to establish that reason quickly.  This will prevent you from starting the wrong discussion or mistakenly assuming the reason for the customer's visit is based on the merchandise they're looking at.

Ask the customer a direct, clear question that establishes their purpose; this is the easiest way to make sure that you will begin the proper discussion with that person.

Video Settings

Segment 6.flv

Qualify Needs

One of the most valuable skills for you to develop and practice is the ability to qualify needs.  Your ability to properly qualify the customer's needs shows that you understand your customer and will let you meet those needs quickly and correctly. This is an area where the true professional will consistently perform efficiently and increase the number of regular customers—and their own earning potential.

"First General, Then Specific”
Some customers may know what they want, but many may not.  Your job is to quickly identify the customer's needs.  The easiest way is to ask an open-ended initial question such as “What did you have in mind?”  The response will let you know immediately whether your customer knows what they want.

To maximize your efficiency and understand your customer better, continue asking general questions until you have sufficient information to show the customer a product, or to start asking the specific questions you need answered before you can begin suggesting a product.

The beginning general questions might be something like this:

“Could you tell me as specifically as possible what you had in mind?”

After the customer responds, follow up with a general question like “Is there anything else?” and keep going until the person says “That’s it.”

If you don’t have enough information at that point, then start asking specific questions until you get enough information so that you can begin to really help the customer.  Please watch the video example for a demonstration. 

The Budget Question
It is always a good idea to have the budget question answered before presenting a possible product.  Although they may not have a hard number in mind, most customers do have a range that they will consider.  Conversely, they also have a range or a specific number that they will not consider.  Many sales have been lost—and many feelings hurt—by showing a customer a product that was too low-priced for someone who wanted to invest more (or, conversely, by showing a product that was priced too high to a customer who could not afford the offering).

It is imperative for you to get a sense of the customer's budget before showing any product.

Video Settings

Segment 7.flv

Suggest Product

Suggesting product is the process of you presenting the possible solutions for your customer to make a buying decision. The proper interaction here can greatly facilitate the buying process.

Asking Permission
As part of the Participative approach, you need to ask for permission to show a product that will meet the customer’s needs. This appeals to the customer's sense of being respected and establishes that they are giving you permission to provide options for them.

Affirming the Needs
The easiest way for the customer to know that you have listened to and understand them, is your ability to repeat that information to them during the presentation process.  Pay close attention to the video example to see the proper way to present solutions to customer needs while you are presenting the product.  Keep in mind that people are making a buying decision based on what the product will do for them—not just the product alone.

Meeting the Budget
It is crucial to have a specific idea about the customer's budget before presenting products.  Many sales are lost due to the salesperson's failure to get this budget information before suggesting product solutions.  Watch closely the video example in the Qualifying Needs chapter so that when you present to the customer, you meet the budget need.  This will increase your odds of helping the customer make a buying decision!

Asking for Feedback
Participative selling includes obtaining feedback on a regular basis throughout the sales process.  This insures that the customer is fully involved.  Questions must be asked as a way of including the customer completely in decision making; they also serve as the basis for correctly determining the customer's needs.  Furthermore, the information derived from the questions helps suggest an effective presentation in the solution-based sales process.

Video Settings

Segment 8.flv

Ask for the Sale

Customers have earned the right to be asked to buy if the Sales Associate has done a proper job of assessing their needs and meeting their requirements.

Respect for the Customer
Failure to ask for the sale is disrespectful to the customer, who deserves to be asked if the best product that meets their needs at the proper price will make that person a happy, satisfied customer.  People who are given the chance to purchase by asking them to buy will more often purchase than those who are not asked.

Customer Decision-Making
Remember that until somebody asks the customer to purchase, a decision has not been made.  Remember too that some customers find it hard to ask themselves.  Always ask for the sale. Sometimes you may have to do so more than once if there are objections that are uncovered when the customer gives a "No" response.  When the customer says "No," they are not saying it to you.  They are actually saying "No" to the information you have provided so far.  Your job is to find out what information they need and provide them with it.  You may never find that out if you don’t ask the customer for the sale.

Closing Methods
Some customers just find it difficult to make any decision, let alone a buying decision.  Consider ways of helping the customer make a buying decision.  These methods should never be used to try to make someone purchase something that is wrong for them, but rather to assist them in thinking through typical fears/concerns.  Some of those fears may include the fear of paying too much, disapproval from their spouse, concern about taking on more debt, lack of trust and the promises (or existence) of competitive suppliers.  Make a list of objections you find difficult to respond to and work on specific communication skills that can help you help your customer in making a buying decision.

Listed below are a few types of closing techniques and reasons why you might use them.

Simple Close
Many believe it is best to be clear with your customers and just ask simple questions like “Would you like to take this now?" or “Would you like me to get you one in a box?" or “Are there other items you want to consider today along with this product?"

Many customers prefer this open, clear communication; your confidence is apparent when you are clear.

Assumptive Close
During this process the Sales Associate is assuming that the customer will purchase, and may use language like “When you take this home and start to use it, I would appreciate a call back to let me know you are satisfied and allow me to answer any questions you may have so you can fully enjoy the product."

This kind of close may be reassuring to a customer who has fears of making the wrong purchase or not being taken care of after the sale.

Alternate Close
This close is typically used when the customer has a choice to make between two  products or features. The customer feels that both may be acceptable, but they are concerned about making the wrong decision. This kind of close may sound something like "Do you prefer the red one or the black one?" Another example: "Of the two products you are considering, which one appeals to you the most?"

Policy Close
If your company has policies that reassure customers about typical concerns like price and satisfaction, you should practice using this information to help customers who are concerned about returning the product if it doesn’t meet their needs or addressing pricing concerns if they believe they need to check for lower prices elsewhere.  This assurance might be conveyed in the following manner, “Our company has a 30-day customer satisfaction guarantee that insures that you can return it if you are not satisfied; in addition we guarantee our prices with a 30-day price-protection policy to insure you always get a fair price.” (Note: This is an example only—please check your own store management for appropriate policy and language.)

Other Closing Methods
Numerous books exist that discuss different closing methods.  It’s good to consider closing methods as positive, productive ways to help customers make a purchasing decision; conversely, they should never be used in a negative or pressured manner to make someone buy something that's wrong for them.  Our goal in the Participative Sales method is to create long-term, satisfied customers.  Focus on the many purchases that the customer will make over time, not just the short term.

Video Settings

Segment 9.flv

Handle Objections

When you ask for the sale, there are times when you will uncover objections that will lead the customer to answer “No” when you ask them to buy. Objections are an opportunity to clarify information and help the customer make the buying decision. Your job is to handle those objections effectively and, if meeting their needs, to ask again for the sale.

"No" Means “Not Enough Information”
Remember that when the customer says "No" to you, it is not a personal rejection but rather an opportunity to understand an objection. What the customer is really saying is that they need different information to make a buying decision. Your job is to uncover the real objection and satisfy the needs of the customer so they can make the purchasing decision.

Uncovering the Obstacle
It takes practice to develop the skill of uncovering the obstacle. Some customers will be honest and tell you their obstacles clearly; others may be evasive or naturally distrustful because of previous sales experiences. Proper use of our Participative process will help you address many (but not all) trust issues. Because there are numerous possibilities for why a customer may not want to purchase, you should first create a list of potential obstacles. Then seek relevant books or other information sources on the topic of sales—this will help your progress. We will discuss some of the more common obstacles and possible interactions below.

Simple “No” Objection
If a customer's response to your asking them to buy is a simple "No," sometimes the best response is a simple “Why?” Many times a customer will tell you the answer, but if not, another possible response is “Could you tell me why, specifically?” Similarly, you could say, “Thank you for your honest response; is there a particular reason?” These types of questions help keep the customer engaged in the sales process.

Product Objections
The customer may feel that the product does not meet their needs. Many times this is the result of a breakdown in the qualifying process: there's been some type of "hiccup" in defining all of the product's specific features and customer's specific needs. It will be necessary to learn about the concern the customer has in relation to the product  and then to rethink the product if necessary. This situation can always be avoided when the qualifying process is done correctly.

Price Objections
The customer may have a competitive price from another seller. In this situation, your job is to understand that information and decide if there is a way to either be price-competitive or to justify the reason the customer might want to pay you more for the product. “I understand that price is a concern," you could tell the customer. "Are you comfortable buying this from us at our price?” If the response is "No,"  you might ask, “Would you consider meeting us halfway?” If the customer does not want to, they will tell you and then you can decide if you want to be price-competitive and meet the price. Always start by asking the customer if they would be willing to pay your price; you will be surprised how many either say "Yes" or suggest that you meet in the middle. It is not always necessary to sell at the lowest price. After all, you are a professional once you have mastered the Participative Selling method and as such, you are worth more to your customer, to your company and to yourself.

"I Have to Think About It”
This is an evasive response; it is not clear as to what the customer actually needs to think about. It may seem obvious, but the easiest response to this objection is “What exactly do you need to think about?” You will need to practice this question so that it sounds smooth, natural and effective. When you ask this question, make sure you sound cooperative, not confrontational. Explain that the extra information the customer gives you can help you help that person to make a decision.

Other Common Objections
There are many other objections and each one has several appropriate responses that will help your customer overcome their fears. Here are just a few, along with some possible responses:

Common Objection #1: “I just started looking.”
(Simple Response) “That’s great. I’m glad we have what you’re looking for. Would you like to take it with you?”
(Policy Response) “Thank you for choosing us, and just so you know, we offer a 30-day customer satisfaction guarantee to insure you don’t need to go anywhere else… Would you like to take it with you?"

Common Objection #2: “I need to talk it over with my wife (or husband).”
(Simple Response) “Do you think she (or he) would approve?”

Common Objection #3: “I’m just not sure.”
(Simple Response): “What specifically are you not sure about?”

Common Objection #4: “Is that your best price?”
(Simple Response) “Yes. Would you like to take it with you?”
(Policy Response) “You can be assured to get our best price because we back it up with a 30-day price-protection policy.” 

Learning from Objections
Customer objections help us learn about mistakes we may have made in the sales process. Did the objection involve features, price, trust, competition, relationship or something else? Use the feedback from objections to improve your understanding of sales and customers, and you will rapidly become more skillful and successful.

Asking Again for the Sale
Remember that after addressing your customer’s objections, it will be necessary to ask for the sale again. Allow your customers to say “Yes” or “No, I need more information.” This is all part of including your customer in the buying decision, which helps create long-term customer relationships—and increased sales.

Video Settings

Segment 10.flv

Seek Referrals

People buy from people who meet their expectations.  People refer others to those who exceed their expectations and are trusted individuals.  Treat your customers very, very well.  Serving them at the highest level possible will position you to comfortably ask for their help when you seek referrals.

The Value of a Happy Customer
The value of a happy customer is not the one sale that occurs in a day, but the many purchases that person will make over a lifetime and the word-of-mouth that a happy customer can provide to improve your performance in sales.  Never underestimate the Happy Customer.

New Business Opportunities
Your greatest opportunity for new business will come from satisfied customers who are raving fans!  You must ask your customers to bring their friends into your store.  Get their commitment to do so, and then watch for those customers as they come in to make sure that your referral is secured.

Example of Asking for a Referral
After completing the sale, and the customer has been thanked and is happy, ask, “Would you do me a favor?  If I give you a few extra business cards, would you please give them to your friends and ask them to come in and see me?"  (If you don't have business cards, just tell the customer your schedule and invite that person to send a few friends to your store to see you.)  When you ask a happy customer to help you in this way, that person feels an obligation to help you and tends to remember to do so.

Video Settings

Segment 11.flv

The Sale After the Sale

It is important to let your customers know that you are as concerned about them after the sale as you were before the sale.  Assure them that you really do care about them since they have already given you their money and that you will still be there to provide service and support.

Contact After the Sale
Establish a means of keeping in contact with both your regular and high-dollar customers.  We recommend a postcard system or e-mail contact list.  Being first in the customer's mind allows the customer remember you when they're ready to make the next purchase.

In addition, establishing a contact list of customers will help you remember their faces and names, which will be very helpful during their next visit.  Remembering customers' names should be a top priority for you because it helps to build a sense of trust and loyalty with customers.  And this skill sets you apart from your competitors.

Customers for Life
Your mission should be generating a client list that accounts for the majority of your sales.  The Participative Selling method focuses on the long-term aspects of the relationship between you and your customers.  By establishing customers for life, you will be successful in sales and may help change the lives of others.

Video Settings

Segment 12.flv

Telephone Tactics

The goal of using the phone should be to build relationships with your customers in order to bring them into your store.  One of the top two ways that customers assess the value of your company's service is determined by their interaction with you on the phone.  Learning proper telephone techniques can truly set you apart from the competition and increase your customer retention and sales. 

Answering the Phone
The telephone should be answered in the following way: “Thank you for calling (your store name), this is (your name).”  This allows you to show appreciation to your caller and let them know who they are speaking with.  Smile when you answer the phone—this simple act will make your voice sound warmer, more excited and more energetic.

Putting Callers on Hold
Always ask permission before putting callers on hold.  Keep in mind this basic idea: waiting on hold is a negative state that seems twice as long to your callers than it does to you.

Remember the Three “P's"
During the phone conversation you can choose to speak about Products, Prices or People—and the People game is the winning game.  Get the caller's name, find out who they are and what they are trying to do.  Ask if they've ever been to your store.  Take time to learn about the person, and you will set yourself apart.  Take time to talk about product and price, and you will have a short conversation that's less fruitful for both of you.  Remember, it’s all about PEOPLE.

Video Settings

Segment 13.flv