Entrepreneurship and smaill business management chapter 11

Entrepreneurship and Small Business Management Chapter 11 Smart Selling and Effective Customer Service 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Ch 11 Performance Objectives (continued)  Analyze and improve your sales calls  Provide excellent customer service  Define customer relationship management and understand its value Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 The Sales Call A 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Eight-Step Sales Call Prepare yourself mentally Greet the customer politely Show the product or service Listen to the customer Deal with objections…always acknowledge and handle them Close the sale Follow up regularly Ask for new customer referrals Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River, NJ 07458 Three Call Behaviors of Successful Salespeople Let the customer talk more than you You are there to learn about the customer’s needs Ask the right questions Be a friend Your goal is to uncover problems your product/service could solve 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 Entrepreneurship and Small Business Management, 1/e 10 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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? Entrepreneurship and Small Business Management, 1/e 11 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 12 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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) Entrepreneurship and Small Business Management, 1/e 13 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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! Entrepreneurship and Small Business Management, 1/e 14 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 15 © 2012 Pearson Education, Upper Saddle River, NJ 07458 Positively Outrageous Service*  Random and unexpected  Out of proportion; catches attention  Involves the customer personally  Creates positive word of mouth * T Scott Gross Entrepreneurship and Small Business Management, 1/e 16 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 17 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 Entrepreneurship and Small Business Management, 1/e 18 © 2012 Pearson Education, Upper Saddle River, NJ 07458 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 customerservice components  Designed to maximize customer satisfaction  Encourages repeat buying and referrals Entrepreneurship and Small Business Management, 1/e 19 © 2012 Pearson Education, Upper Saddle River, NJ 07458 CRM Supports Market Research Via Customer Include brief market surveys with Service  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 Entrepreneurship and Small Business Management, 1/e 20 © 2012 Pearson Education, Upper Saddle River, NJ 07458 SBA’s Three Golden Rules for CRM  Put the customer first  Stay close to your customers  Pay attention to the little details Entrepreneurship and Small Business Management, 1/e 21 © 2012 Pearson Education, Upper Saddle River, NJ 07458 SBA’s 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, 1/e 22 © 2012 Pearson Education, Upper Saddle River, NJ 07458  ... blogs, and newsgroups Webinars and audio conferences Digital planners and calendars Sales and contact management software Personal digital assistants (PDAs) Entrepreneurship and Small Business Management, ... Provide excellent customer service  Define customer relationship management and understand its value Entrepreneurship and Small Business Management, 1/e © 2012 Pearson Education, Upper Saddle River,... 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 Entrepreneurship and Small Business Management, 1/e 10 ©