Sales101 rev3 11-14

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1. Follow us on Twitter @SimontonWindows @dougdeluca2 Get today’s presentation online!! www.slideshare.net/slideshow/embed_code/ 32169011 Look for me on Email me at:…
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  • 1. Follow us on Twitter @SimontonWindows @dougdeluca2 Get today’s presentation online!! www.slideshare.net/slideshow/embed_code/ 32169011 Look for me on Email me at: doug_deluca@simonton.com
  • 2. THE ART OF SELLING - DEVELOPING AND UTILIZING PROVEN SALES STRATEGY TECHNIQUES
  • 3. Purpose 4 Today’s focus is threefold; • Increase closing % • Increase AOV • Increase leads
  • 4. 5 What Where Why When How
  • 5. Learning Objectives 1. Understanding customer buying motives 2. Fulfilling customer motives 3. Features vs. benefits 4. Pricing strategy 5. Lead Generation
  • 6. Why do I need a sales strategy? Having a strategy helps you: • Stay on course • Cover essential info • Engage the customer • Convey your expertise • Increase your closing %
  • 7. Appealing to the Customer on their Level 8 You do this for a living, the customer doesn’t
  • 8. Window industry quick facts www.costvsvalue.com states that high end window replacement surpasses both bathroom and major kitchen remodeling projects (in project dollars recouped at resale).
  • 9. IDENTIFYING THE CUSTOMER’S DECISION-MAKING CRITERIA The Art of Selling
  • 10. Understanding Today’s Customer Knowing my customer’s mindset will increase my ability to help the “Buyer buy”
  • 11. 12 Understanding Today’s Customer In a recent survey: • 81% stated that staying within a budget was very important, while 72% stated that when shown high value they would exceed budget by 20% • 97% stated that credibility of the sales consultant was very important. In fact, 57% stated that even when the customer had desire for the product and doing business with the company, if the consultant was not liked – the customer would walk away. The highest reason for customers not buying • 98% stated that the opinion of peers was very important • 98% also stated that online research was a must • Advertising and name brand recognition was not nearly as important as mfr financial strength and strength of product
  • 12. http://web.hbr.org/email/form/dailyalert/index.html
  • 13. Consumers buying habits change with the times 14 Understanding Today’s Customer
  • 14. Decision making criteria Many research studies collectively agree the following factors are the most important for customers when facing a large ticket buying decision. These are rated in order of highest to fourth highest in priority: 1. Confidence in the Manufacturer 2. Confidence in the Company 3. Confidence in the Associate 4. Price
  • 15. Confidence in the manufacturer Confidence in the Manufacturer comes in at #1 in importance. • Do it right the first time • Reassure the customer the manufacturer has staying power • Homeowners have a sense of pride about the quality of the products they choose
  • 16. Confidence in the company Confidence in the Company refers to the dealer or service provider on the local level. • Neighbors and friends have received good service, establishes credibility • Longevity of your company speaks to honest and reliable business practices • Allows consumers to support local business • Provides reassurance your company will be around to honor future warranty concerns or additional projects
  • 17. Confidence in the associate Have you ever heard that “People buy from people they like?” Here are some points to consider: • Listen – It provides reassurance that the customer’s concerns have been truly heard • Understand – Their best interest is and should always be your top priority • Customers will often resist when they feel pushed. • Most deals end at this point. • Customers consider an individual’s credibility as much as Manufacturer and Company • Building rapport builds the customer’s confidence
  • 18. Price • Starting out, most customers have a budget and prefer to remain close to their budget • Most customers will increase their budget if an added value is presented convincingly • Value always trumps price – confidence in longevity and performance vs. cheap • Financing options make projects more affordable To some Sales Associates, it will be a big surprise that price actually comes in fourth place:
  • 19. What’s your take? Are these the criteria you need?
  • 20. MEETING THE CUSTOMER’S DECISION- MAKING CRITERIA Section Two
  • 21. Meeting the customer’s criteria • You know the decision making criteria – this makes you more prepared than most of your competition o Confidence in the Manufacturer o Confidence in the Company o Confidence in the Associate o Price • Get the customer’s buy-in
  • 22. Confidence in the manufacturer Over the next three pages, we will break this down into two easy sections and then summarize: 1. Longevity and strength of Simonton 2. Awards and accolades
  • 23. Longevity and strength - Simonton Simonton celebrates 66 years this year!
  • 24. • Average house cost $1459 • Average wages $2500 • A gallon on gas .15 cents • Cost of new car $1120 • Great Alaska Earthquake 7.4 • BBC started • The first Vespa was manufactured • First microwave oven invented • First class postage .03 cents • Born: • George W Bush • Sally Field • Freddie Mercury • Cher • Donald Trump • Sly Stallone • Steven Spielberg Longevity and strength - Simonton
  • 25. Financial Stability Fortune Brands Home and Security Division FBHS #1 or #2 product nationally in every category
  • 26. Financial Strength Source: http://in.finance.yahoo.com/news/fortune-brands-home-security-reports-200200044.html
  • 27. Accolades and awards Chosen as the most satisfying overall window brand, and ranked highest in 6 of the 7 ranking categories Simonton converts >86% of shoppers who seriously consider new windows and doors into buyers.
  • 28. Confidence in the manufacturer - summary The Industry’s Best Overall Value Proposition  Industry’s shortest, most dependable lead-times  World class manufacturing  National sales and service levels  Industry-leading warranty  Consumer understanding  Proven track record of service  95% “Perfect” orders delivered on time  The premier trade brand chosen by professional remodelers and builders Consistently delivering the best since 1946
  • 29. Confidence in your company • Confidence in your company is the 2nd highest consideration • Package your company’s values and capabilities into easily understandable and relatable talking points
  • 30. Examples Think of your company’s talking points as you now understand Simonton’s talking points regarding longevity and awards For example: • How long has your company been in business? • How many customers have you done business with in your company’s history? • What kind of training or certification have your employees received? • What kind of awards or recognition has your company earned? • Can you provide testimonials from past customers? Are they in writing?
  • 31. Confidence in your company - summary Differentiate yourself from your competition. It is entirely appropriate to brag a little. • Provides peace of mind • Homeowners begin to envision hiring you • Become the trusted advisor • Be clear in your company and product distinctions • Have a plan and be prepared to answer questions or concerns • Know the difference between your product and your competitors Differentiate yourself from your competition by merely talking about your company’s bragging points. You competition will most likely be less prepared!
  • 32. Why Associate? Become the credible, consultative subject matter expert
  • 33. Confidence in the associate “Customers only buy from people they like.” “Liking” you means the customer has confidence you will: • Truly understand their needs • Confidently share product expertise • Demonstrate the highest level of integrity • Respect their budget • Attempt to provide the most effective solution
  • 34. Confidence in the associate - tips Listen carefully • Make eye contact when your customer is speaking to you • Periodically repeat back what they say. Phrases like, “So, if I understand you correctly, you are saying that…” • Be sure to bring back important findings later in the conversation Maintain strong business ethics • Never lie. If you cannot say it truthfully, don’t say it at all. • Never curse. You should always assume your customer is ultra- conservative. • Never cut down your competition
  • 35. Sharing positive stories Effectively gaining your customer’s confidence in you Share your relationship with your company • Explain why you chose to work for your company. • Make this statement your own and from the heart. It is most powerful when you memorize this - especially before sharing with the customer. Share positive stories from your experience – humor works! • “I had a customer who was trying to lower her heating bills. When I showed her how much energy our windows saved, she was shocked and asked if we had a window that would make her dogs be quiet! Then I showed her a window which cuts outside noise by more than half.” • “I love working within a budget. I recently completed a whole house of windows for a customer who started with only three. I promised him I’d be back!” Smile!
  • 36. Why the Associate? • Salesperson vs. Advocate • Credibility gains confidence Most lost sales are lost here, or; The biggest opportunity for improvement
  • 37. Summary – confidence in the associate • Be positive – show confidence • Avoid controversial topics • Don’t trash your competitor – take the high road • Accommodate the homeowner’s needs through your product offering and within their budget. • Tell stories. Tell a joke. Be likeable. • And most importantly SMILE!
  • 38. CONVERTING FEATURES INTO BENEFITS Section Three:
  • 39. Features VS. Benefits “Which means to you…” “People don’t want to buy a quarter-inch drill, they want a quarter-inch hole.” ~Theodore Levitt
  • 40. What’s the difference between features and benefits? Not every feature is necessarily a benefit. • In order to translate features into benefits for your customer, you first need to understand the customer’s “hot buttons” • Translate the features into benefits for them ‘Differentiate with value, or Die with price.’ - Jeff Gitomer
  • 41. Features VS. Benefits ”A benefit is only a benefit if the customer sees value in it.” ~Doug DeLuca
  • 42. Double Hung ¾” Stainless Steel Constant- Force Coil Balance Allows for a maintenance free, system for sash stability. Multiple Chambers Profile Vinyl profiles are filled with 13 dead air chambers that increase window insulation and aides structural integrality Tilt in/Lift out Sash Allow sash to tilt in for easy cleaning Supercept Spacer System Makes for low conduction rates, moisture-resistance and thermal efficiencyContoured Extruded Lift Rails Allows for easy opening –no matter how big the window. Flush Mounted Tilt Latches For a clean, smooth sash rail. Dual Air Locks For ventilation Cam Lock Unique designed secure window lock Fusion-Welded Frame and Sash Profiles and sashes are fused together to create a weather tight, strong one- piece unit. Accessory Groove For the addition of decorative trim & to aid in installation 3 ¼” Frame Allows to fit most openings ⅞” Insulated Glass Unit Double pane, Double strength glass with Low E and Argon Gas for increased energy performance Exterior Frame Meeting Rail Makes for a tight seal with our patented Inter- locking/Over-lapping design Extruded Screens For strength and durability
  • 43. Features to benefits - summary • Be sure to do some investigating to determine your customer’s important features. • When you discuss the product features with the customer, always follow up with its benefit. • If you think a feature and benefit will be important to your customer, show it. • Every feature has a benefit to the customer who desires it. “People don’t want to buy a quarter-inch drill, they want a quarter-inch hole.” ~Theodore Levitt
  • 44. PRESENTING PRICE Section Four:
  • 45. Are there differences in how to present price? “It’s not so much what was said, but how it was said” Merely presenting a price/product package that you think meets their needs, without proper foresight and preparation will actually do more harm than good in gaining the customer’s business. How you present your price/product offering begins with listening carefully to your customer during the beginning and middle of your presentation. The two most important elements necessary for presenting price are knowing the customers wants/needs and their budget. Talking about both and staying within their budget will show you’ve been listening.
  • 46. Buying Behavior Which is a better question? $$$ A $$ B $ C YES or NO or
  • 47. Packaging the customer’s options Many research studies agree when given three options, customers generally choose the middle option. You should anticipate giving the customer three pricing/product offerings at the same time. 1. The most expensive (dream) option 2. Your target option 3. Their budget option $$ $$$$
  • 48. Option 1 – “Dream Option” The “dream option” contains every upgrade, style, color, option and window in which the customer showed interest. Here are some examples of some dream options: Bay/bow window Wood grain Hardware upgrade French Door vs. Patio Door Energy Efficient glass upgrade Full screens if applicable Exterior paint color options All windows in home vs. a few If you don’t present it they cannot choose it – and some will!
  • 49. Option 2 – “Target Option” • This option should be the one which best integrates their needs, wants and is lightly higher than budget. • When this option is presented, acknowledge that it is slightly above their price range. • Also make clear that you believe it to be the best option for them. Using phrases like “best bang for your dollar” or “most practical” will help them to understand you are trying to best meet their needs even though it means slightly exceeding their budget. The target option should be priced slightly above their budget range by about 10-20%.
  • 50. Option 3 – “Budget Option” The budget option should be priced at or slightly below their budget range. • Giving the customer an option which is at or below their budget range will show the customer that you listened and care about their needs • When this option is presented, acknowledge that you have done everything you can to accommodate their budget. • This is a good time to remind the customer that this project should only be done once so doing it right (and how they want) should weigh into their decision.
  • 51. Presenting price - summary Giving the customer three options gives the customer more freedom of choice and shows that you respect their needs, as well as their wants. Be sure to present all three options: • The dream option can increase your average order value significantly. • Your target option is usually where you will land. • The budget option shows the customer the respect they expect from a consultant with good character. Your presentation should include a financing option/monthly payment. Consumer’s tend to accept a $200/mo payment more readily than a $9000 price tag. Presenting three options and monthly financed payments will significantly increase your closing percentage
  • 52. Overcoming Objections 53 What are the most common objections?
  • 53. Lead Generation Best Practices 54
  • 54. 55 Top Home Improvement Lead Sources Canvassing 8 Point Method Direct Mail (Letter, Post Card, Brochure) Installation Invitation TV & Radio Social Media Home Shows, Events & Malls Referrals Lead Generation Best Practices
  • 55. Lead Generation - Canvassing
  • 56. 57 The Canvassing Team • Hire a canvassing service • Employ a canvassing service From http://www.squidoo.com/how-to-generate-home-improvement-leads by Robert Quadra Lead Generation - Canvassing
  • 57. 58 Hiring a canvassing service There are companies that are already formed to do this service. If you are a small company, you and your sales force can make this a part of your marketing and sales plan. The cost is typically around $300 per lead From http://www.squidoo.com/how-to-generate-home-improvement-leads by Robert Quadra Lead Generation - Canvassing
  • 58. 59 Employ a canvassing service • A team consists of a leader and several canvassers • Total canvassing budget should not exceed 10% of marketing costs • Good canvassers should earn around $400-500/20hr work week • A good canvassing leader should earn around $45k annually • Company van should be provided From http://www.squidoo.com/how-to-generate-home-improvement-leads by Robert Quadra Lead Generation - Canvassing
  • 59. 60 How the numbers work: • 1 canvasser should gain minimum 10 appointments/week - 1 appt per 2 hours. (Target 15) • Of the 10 appointments, minimum 8 should confirm (Target 12) • Of the 8 confirmed, minimum 7 should have a presentation (Target 10.5) • Of the 7 presentations, 33% should close - 2.31 (Target 3.47) • Of the closed sales, minimum of 70% retention - 1.67 (Target 2.43) • Minimum of 17% of all leads should result in a retained sale • If each lead assumes cost of $300, 1.67 sales needs to provide maximum of $1796 of program financial support ($3000/1.67) • Target should be a program cost of $1234 per sale From http://www.squidoo.com/how-to-generate-home-improvement-leads by Robert Quadra Lead Generation - Canvassing
  • 60. 61 Canvas Team: •Team Leader: Full time employee. Recruits, trains, and supervises canvassers (trains by example), Maintains goals, Base salary plus incentives •The Canvasser: 19 or older high school graduate - college student works best, Clean-cut dress code, Part time (1000 hr. rule), Hourly base plus incentives •Training: This is a scripted, short presentation. The canvassers must be trained and they must practice the sales methodology for "getting the interest for an appointment." Most companies gain a hook by providing something to the prospect for an appointment: a gift, a free inspection, etc. Note: many communities require fee based license/authority for canvassing. Hefty fines can take place if these rules are not followed (paid for). From http://www.squidoo.com/how-to-generate-home-improvement-leads by Robert Quadra Lead Generation - Canvassing
  • 61. 62 1 2 3 4 5 6 7 8 =Project Address Lead Generation – 8 Point System
  • 62. • About 25 cents each • Door hangers go on minimum of; • Three houses across street • Three houses behind project • Two next door neighbors • Door hangers content: • Sell without selling • Backdoor hook • Incentivize install crew • Commission • Per lead (average cost of lead can be about $300 per) • Both • Sales Consultant prerequisite Lead Generation – 8 Point System
  • 63. Direct Mail • Needs constant monitoring for effectiveness • Is a science • Often outsourced (Val-Pak, etc.) • Cost is about $300/per • Needs call to action Lead Generation – Direct Mail From http://www.squidoo.com/how-to-generate-home-improvement-leads by Robert Quadra
  • 64. Call to action/Hook • Should include one of the following • Down-season special pricing • Overstock clearance • Promotion of new product or service • Special financing • Free inspection • Other compelling reasons for contact • Be sure to include brand, personal and product • Separation from competition • Include community footprint Lead Generation – Direct Mail From http://www.squidoo.com/how-to-generate-home-improvement-leads by Robert Quadra
  • 65. What to expect: • It takes time – a lot of time! • Customers can hold onto mail for > a year • Repeating message substantiates viability • Often need > 6x to remember • Return on Investment • Average response rate is
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