Chapter 15 How to Close a Sale Customer Satisfaction ...mrjwags.weebly.com/.../textbook_chapter_15.pdf · Before You Read glencoe.comm Print this graphic organizer. Closing the Sale

Discovery ProjectENGAGE

Visual LiteracyRead the chapter opener photo caption to students: Why is customer satisfaction so important in the sales process? Satisfied customers will return, and they may recommend the products and services. Businesses rely on repeat sales to be successful. Ask students: What is the most important thing a store can do to make you a satisfied customer? The store must have what I want or need to buy. Then ask these guiding questions.

Guiding Questions

Identify What are the three types of decision making that customers use when choosing what to buy?

extensive decision making, limited decision making, routine decision making

Analyze Why do ethical businesses forbid their salespeople from using hard-sell tactics to close a sale?

Customers do not like sales pressure. They probably will not return to the business and might tell others about their negative experience.

Closing the Sale and Customer Satisfaction Ask students: Do you think a happy customer will be a steady customer? Answers will vary. If a customer needs the product regularly and is happy with a store, the customer will probably return regularly. To encourage students to think about the importance of how a sale is closed, ask them the Discovery Project Essential Question: How do you close a sale and make a steady customer? Answers may include: Customers must feel that the salesperson helped them purchase a product that meets their needs, that they made a wise decision, and that they received good value for their money.

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Discovery Project Resources Send students to the Online Learning Center to download a rubric to evaluate their projects.

338 Unit 5 · Selling

Chapter 15

closing the sale closing the sale

Section 15.1 How to Close a Sale

Section 15.2 Customer Satisfaction

Visual Literacy The sale is closed when your customer makes a commitment to buy. An effective salesperson also masters techniques and skills to ensure that the customer will be satisfied with the purchase. Why is customer satisfaction so important in the sales process?SH

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Connection

DECA Event Role PlayConcepts in this chapter are related to DECA competitive events that involve either an interview or role play.

Performance Indicators The performance indicators represent key skills and knowledge. Your key to success in DECA competitive events is relating them to concepts in this chapter.

• Close the sale.

• Demonstrate suggestion selling.

• Explain the role of customer service as a component of selling relationships.

• Explain key factors in building a clientele.

• Plan follow-up strategies for use in selling.

DECA PrepRole Play Practice role-playing with the DECA Connection competitive-event activity at the end of this chapter. More information on DECA events can be found on DECA’s Web site.

Discovery Project

Closing the Sale and Customer Satisfaction

How do you close a sale and make a steady customer?

Essential Question

Project GoalWorking with two partners, assume you are a salesperson in the home furnishings department of a retail store. For the next sales meeting, you have been asked to conduct a role play. It will demonstrate how to sell to customers who want to renovate or redecorate their homes. The role play focuses on do-it-yourself projects. Your goal is to sell the products that customers need to complete their projects. You must also explain a strategy to use to make them loyal customers. You are expected to emphasize closing the sale, customer satisfaction strategies, and follow-up.

Ask Yourself…• What questions does someone who is renovating their

home ask?

• Which sales techniques will you include in your role plays?

• How can you monitor the customer’s satisfaction?

• How will you present the role plays?

Role Play Present your role play about selling to customers who want to renovate or redecorate their homes. Emphasize closing the sale, customer satisfaction strategies, and follow-up.

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Activity Get a worksheet activity about closing the sale.

Evaluate Download a rubric you can use to evaluate your project.

Chapter 15 · Closing the Sale 339

ENGAGE EXPLORE EXPLAIN ELABORATE EVALUATE

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Chapter 15

PRINT RESOURCES Student Edition

Teacher Edition

Student Activity Workbook with Academic Integration includes worksheets and activities correlated to the text.

Mathematics for Marketing Workbook provides math activities for every unit in the text.

TECHNOLOGY TOOLBOX Connect

ConnectPlus

ExamView Assessment Suite is a comprehensive solution for creating, administering, and scoring tests.

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Graphic Organizers for organizing text concepts visually. Digital Nation Activities and Green Marketer

Activities extend learning beyond the text features. Career Chatroom Career Profiles allow students to

explore different marketing occupations in depth. After You Read Answer Keys for students to check

their answers. Discovery Project Rubrics and Marketing Internship

Project Rubrics for students to evaluate their projects.

Student Activity Workbook with Academic Integration Teacher Annotated Edition includes annotated answers for the activities and worksheets.

Marketing Research Project Workbook provides a step-by-step approach for students to complete their own marketing research studies.

School-to-Career Activity Workbook helps students relate their class work to on-the-job experience and involves work-site analysis and working with mentors.

Competitive Events Workbook helps prepare students for state and national marketing education competitions.

Inclusion in the Marketing Education Classroom provides teaching resources for working with students with special needs.

PowerPoint Presentations provides visual teaching aids and assessments for this chapter.

Online Learning Center provides a variety of resources to enrich and enhance learning.

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Introduce the ChapterChapter 15 discusses the techniques involved in closing a sale. These main concepts are introduced and discussed:

• Timing the close• Tips for closing the sale• Specialized closing methods• Maintaining a positive attitude when failing to close• Benefits of suggestion selling• Rules and methods for suggestion selling• After-sales activities• Customer service• Planning future sales

Discussion StarterMaking the Close Lead a discussion about closing a sale. Talk with students about the diffi culty of identifying when a customer is ready to make a purchase. Ask: If you were a salesperson, what clues would you look for that a customer was ready to make a buy? Answers may include: the customer asks questions, makes eye contact, is engaged in the conversation, and shows signs of agreeing with the salesperson, such as head nodding. Remind students that closing a sale is how a business generates revenue. It is ideally the beginning of a lasting relationship. Ask students: When do you think a salesperson should start thinking about closing a sale? The sale should be closed as soon as the salesperson sees signs that the customer is ready to buy. Not doing so can lead to customer indecision and a lost sale.

Connection

Discuss the performance indicators listed in the DECA Connection feature. Explain to students that performance indicators tell them how to demonstrate their acquired skills and knowledge through individual or team competitive events.

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Competitive Events Workbook For more DECA Role Plays, send students to the Online Learning Center to download the Competitive Events Workbook.


ENGAGE

Anticipation ActivityImproving Student Achievement Have students work on a collaborative list of reasons to explain why a customer will decide to buy. Reasons may include fulfilling a need, getting a good deal, impulse. Then ask: What is the most common reason you make purchases? Answers may include wanting or needing a product or service.

Objectives• Identify customer buying signals. smiling, positive comments

about the object, ownership comments, admiring the object• List a few tips for closing a sale. Close when you see buying

signals, stop showing additional merchandise when customer cannot make a decision, create ownership mentality, get minor agreements, and pace your approach.

• Decide on appropriate specialized methods for closing a sale. Which close: get customer to decide between two items; Standing-room-only close: short supply; Direct close: strong buying signals

Graphic Organizer

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Graphic Organizer Send students to the Online Learning Center to print this graphic organizer.

Closing the Sale

Timing

Closing

DecisionsOwnership Mentality

Agreements

Methods


READING GUIDE

Graphic Organizer Draw or print this chart to identify information you need to know in order to close a sale.

MARKETING CORE FUNCTION

Selling

ACADEMIC

English Language Arts NCTE 4 Use written language to communicate effectively.

Social Studies NCSS IV D Individual Development & Identity Apply concepts, methods, and theories about the study of human growth and development, such as physical endowment, learning, motivation, behavior, perception, and personality.

NCSS National Council for the Social Studies

NCTE National Council of Teachers of English

NCTE National Council of Teachers of Mathematics

NSES National Science Education Standards

Common Core Writing Produce clear and coherent writing in which the development, organization, and style are appropriate to task, purpose, and audience.

STANDARDS

Objectives

• Identify customer buying signals.

• List a few tips for closing a sale.

• Decide on appropriate specialized methods for closing a sale.

The Main Idea At a certain point in the sales process, your customer will be ready to make a purchase. In this section, you will learn how to close a sale.

VocabularyContent Vocabulary• closing the sale• buying signals• trial close• which close• standing-room-only close• direct close• service close

Academic VocabularyYou will find these words in your reading and on your tests. Make sure you know their meanings.

• commit• perseverance

Reflect What questions do you ask of salespeople when you are shopping?

Before You Read

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Print this graphic organizer.

Closing the Sale

Timing


Closing the sale is obtaining positive agreement from the customer to buy. All your efforts up to this step of the sale have involved helping your customers make buying decisions.

To close a sale, salespeople need to recognize when a customer is ready to buy. Sometimes it is so natural that the customer closes the sale for you. In many situations, however, the customer waits for the salesperson to close the sale.

Predict What can salespeople do to make closing the sale more effective?

As You Read

TIMING THE CLOSESome customers are ready to buy sooner than

other customers; therefore, you must be flexible. You might show a customer a product and almost immediately detect an opportunity to close the sale. Other times, you may spend an hour with custome rs and still find that they are having difficulty making a decision.

You should never feel pressured to complete an entire sales presentation just because you planned it that way. The key to closing sales is customer readiness.

BUYING SIGNALS When attempting to close a sale, look for

buying signals, the things customers say or do to indicate a readiness to buy. These signals may be nonverbal and include facial expressions and body language. You know customers are ready to buy when they say, “This is exactly what I was looking for.” Other comments that may be clues about their readiness include: “Do you have these same shoes in black?” “When would I be able to get delivery?” When a customer has mentally decided on the purchase, it is time to close the sale.

Closing the sale is based on customer readiness to buy.

CLOSING CONCEPTS AND TECHNIQUES

Sect

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15.1

How to Close a Sale

Customer Readiness

Determining when a customer is ready to buy is sometimes difficult for a novice salesperson. Looking at this photo, what customer cues might suggest that it is time to close the sale?


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EXPLORE

Section 15.1

How to Close a Sale

Before You Read

Read the Before You Read question aloud: What questions do you ask of salespeople when you are shopping? Students might say they ask salespeople to demonstrate the product or describe its features. If it is clothing, they might ask for a different size or color. They also might ask about fabric content and care instructions. For more expensive items, they may ask about payment plans.

Visual LiteracyCustomer Readiness Caption Answer Read the caption question to students: Looking at this photo, what customer cues might suggest that it is time to close the sale? The couple is pausing to gaze intently at the ring. The young woman is holding the ring in front of them to display it. Both are smiling.

Preteaching VocabularyHave students go to the Online Learning Center at glencoe.com for the Section 15.1 Preteaching Vocabulary online quiz.

Content VocabularyWrite the term closing the sale for students to read. Have students work with a partner to determine as many different defi nitions as they can for the word close. to shut; to block against entry; to stop operation of; to bring to an end or complete; to bring or bind together; to reduce to nothing. Then ask: Which of these definitions applies to closing the sale? to bring to an end or complete

Academic VocabularyCommit—Contextual Meaning Write the following sentence for the class to read: Customers will most likely tell you why they are not ready to commit to buying. Ask students: Based on this sentence, what do you think commit means? agree, consent

Perseverance—Suffixes Write the word persevere for students to read. Explain that is means “to persist in a state or undertaking in spite of opposition or discouragement.”

CLOSING CONCEPTS AND TECHNIQUESAsk these guiding questions to focus the discussion on the concepts and techniques used in the closing process.

Guiding Questions

Explain In order to effectively close a sale, what must a salesperson be able to do?

The salesperson must be able to recognize when the customer is ready to buy.

Draw Conclusions Why do you think that customers often wait for the salesperson to close the sale?

Answers may include: Customers might have difficulties making buying decisions, or they might be waiting for the salesperson’s affirmation that they are making the correct choice.

Expert AdviceRead the quote to students:

Closing the sale is based on customer readiness to buy.

Ask: Have you ever had a salesperson push you to make a buying decision when you were not ready? If so, what did you do? Yes, I felt pressured and annoyed. I went to a different store. Then ask: Have you ever had a salesperson go on about the features of a product after you had already decided to buy it? If so, what did you do? Yes. I was bored and in a hurry, but let the salesperson complete the sales pitch. However, I plan to avoid going to that salesperson in the future.

As You Read

Read students the As You Read question: What can salespeople do to make closing the sale more effective? Possible answers: time the close for when the customer is ready; keep the customer from becoming overwhelmed by too many choices, come to minor agreements during the selling process, and avoid threatening words or hard-sale tactics.


EXPLAIN

Activate Prior KnowledgeReteach the Steps of a Sale Use this graphic to help students recall the steps of a sale as discussed in Chapter 12. Tell students that in this chapter they will learn about closing a sale, suggestion selling, and building relationships.

Visual LiteracyExciting Product Demonstrations Close the Sale Caption Answer Read the caption question to students: Why are effective product demonstrations so helpful in closing the sale? Exciting product demonstrations are convincing, grab the customer’s attention, and help to remove any doubt the customer may have regarding a product’s capabilities. Ask students: For what types of products are demonstrations especially helpful? Answers may include: electronic equipment such as computers, cameras, televisions, and surround-sound systems; home appliances such as vacuum cleaners and food processors, and similar devices.

Reinforce VocabularyTrial Close—Denotative Meaning Read this sentence aloud: You may attempt a trial close to test the readiness of the customer. Explain that in this case, the word trial means preliminary, test, or experimental. Therefore, a trial close is an experimental close or a test close.

APPROACH THE CUSTOMER

DETERMINE NEEDS

PRESENT THE PRODUCT

OVERCOME OBJECTIONS

CLOSE THE SALE

SUGGESTION SELLING

BUILD RELATIONSHIPS


TRIAL CLOSE You may attempt a trial close to test the

readiness of a customer and your interpretation of a positive buying signal. A trial close is an initial effort to close a sale.

Trial closes are beneficial for two reasons. For one, if the trial close does not work, you will still learn from the attempt. Customers will most likely tell you why they are not ready to commit to buying. On the other hand, if the trial close does work, you will reach your goal of closing the sale. In both cases, you are in an excellent position to continue with the sales process.

TIPS FOR CLOSING THE SALEProfessional salespeople recognize closing

opportunities, help customers make a decision, and create an ownership mentality for the customer. They rely on proven and tested techniques. They often use the techniques discussed in the following pages. You will find it easier to attempt trial closes and close more sales if you use these techniques. As you learn to be a salesperson, you will want to avoid saying or doing a few things when closing a sale.

RECOGNIZE CLOSING OPPORTUNITIES

Having a major obstacle removed usually makes a customer receptive to buying the product or service. You can also use effective product presentations to close the sale. Dramatic product presentations often prove important selling points and excite the customer about owning the product. Take advantage of high customer interest at these times and attempt to close.

HELP CUSTOMERS MAKE A DECISION

When a customer is having difficulty making a buying decision, stop showing additional merchandise. You should also narrow the selection of items by removing those products that are no longer of interest to the customer. You can do this by asking, “Which of these items do you like the least?” Once you reduce the selection to two items, you can help a customer decide by summarizing the major features and benefits of each product. You can also explain any advantages or disadvantages of each item being considered. Both methods help you to focus the decision making on important considerations.

Exciting Product Demonstrations Close the Sale

Close the sale by capitalizing on customer interest and excitement with a product. Why are effective product demonstrations so helpful in closing the sale?


CREATE AN OWNERSHIP MENTALITY

Use words that indicate ownership, such as you and your. When presenting selling points, you might say, “You will appreciate these waterproof hiking shoes on your next hiking trip when it starts to rain.” Using you and your when explaining selling points helps customers visualize themselves owning those products. Your selling points become more personal and therefore more effective in helping customers develop an ownership mentality.

AVOID THREATENING WORDSWhen possible avoid words, like now and today

because they have the connotation of having to act immediately. Customers may feel too much pressure in making a buying decision and may change their mind altogether. This approach may accidentally trigger an objection related to time that the customer did not have before.

GET MINOR AGREEMENTS Solicit minor agreements on selling points

that you know your customer has observed or experienced. For example, “Those newly designed golf shoes are comfortable, aren’t they?”

When you get positive reactions from your customer throughout the sales process, that same positive frame of mind will help create a natural closing.

PACE YOUR CLOSINGIf you think the customer is ready to make a

buying decision, stop talking about the product. At that point, close the sale. Continuing to talk about a product after a customer’s readiness is apparent may annoy that customer. It may even cause you to lose the sale.

On the other hand, do not rush a customer into making a buying decision. Be patient, courteous, polite, and helpful, and always remember that your primary interest is customer satisfaction.

SPECIALIZED METHODS FOR CLOSING THE SALE

Attempt to close the sale as soon as you recognize a buying signal. Your method for doing this depends on the selling situation. Certain selling situations warrant the use of specialized methods, including the which close, standing-room-only close, direct close, and service close methods.

Too Many Options Doom a Sale

When customers are overwhelmed with too many options, it is difficult for them to make a buying decision. If a customer has five pairs of shoes to try on and wants to see more shoes, what should the salesperson do?


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Section 15.1

Visual LiteracyToo Many Options Doom a Sale Caption Answer Read the caption question to students: If a customer has five pairs of shoes to try on and wants to see more shoes, what should the salesperson do? The salesperson should get the customer to eliminate at least two pairs of shoes by saying, “Which pairs do y ou like the least?” These pairs should be put away. The salesperson can then proceed to get one or two more pairs for the customer to try on. Encourage students to think about how children make decisions. Experienced parents and caregivers give children only a few choices; this helps keep them from being overwhelmed. The same is true for shoppers. The successful salesperson knows that customers appreciate having the buying process simplifi ed for them.

TIPS FOR CLOSING THE SALEBeing able to use established tips for closing a sale is valuable to any salesperson. To focus the discussion on tips for closing a sale, ask these guiding questions.

Guiding Questions

Describe What is the fi rst thing a salesperson should do when a customer cannot decide among several items?

Stop showing additional merchandise.

Predict A customer is having a diffi cult time deciding whether to buy a digital camera. The salesperson starts pressuring the customer by saying that there are only a few of these cameras left, even though this is not true. How might the customer respond?

The customer might refuse to make a decision because of feeling overly pressured. The pressure might even trigger an objection the customer did not previously have.

Critical ThinkingAsk students how they think the increasingly diverse marketplace affects the art of closing the sale. Answers will vary. Customers of different ages need to be handled differently. For example, a younger person just starting out on his or her own might need more help comparing the features of cleaning products and household appliances. Customers of different cultures also require the salesperson to be more skilled. For example, in some cultures, salespeople are expected to behave aggressively when closing a sale—if they do not, the customer may think the salespeople do not believe in their product. In other cultures, salespeople must behave very submissively toward customers and never push them.

Differentiated InstructionKinesthetic Learners Have students work independently to choose a product to sell to the class. An important part of this selling process should be an effective demonstration of the product. Encourage students to choose a product with which they are familiar and that they can demonstrate in a fairly dramatic way—one that will infl uence customers to make a purchase. Students may want to engage a classmate to help with the demonstration. Students should effectively demonstrate the benefits of the product and inspire their “customers” to want to purchase it. Students should answer any questions their classmates have and work to overcome any objections that may be voiced.

Gifted Learners Discuss with students that because of various technological advances, marketers will frequently state that “geography is history.” Therefore, it is crucial that salespeople understand the culture in which they are working. Have students research the characteristics of closing a sale in a specifi c culture. Questions to consider might include: Is pressuring the customer acceptable? Are men and women treated differently in the marketplace? How fast can you pace your close? Is haggling over the price customary? Students should prepare an oral presentation on the acceptable way to close a sale in their chosen culture. Student presentations should explain ways in which closing a sale in the chosen culture is different. For example, in China, establishing a relationship between buyer and seller is crucial and customers routinely haggle to lower a selling price. Sellers may agree to a price so low that they do not make a profit, just to keep the customer coming back to them.

Mini Projects


EXPLAIN Critical ThinkingAsk students: Has a salesperson ever used the standing-room-only close with you? If so, how did you respond? Responses will vary. If the reason expressed by the salesperson seemed legitimate (such as a short-term sale), the student may have been grateful. However, if the salesperson seemed to be pressuring the student, they may have responded negatively by not purchasing the product. Why must the standing-room-only close be used with great care? Most customers do not like to feel pressured and may withdraw from making the purchase.

Reinforce VocabularyStanding-room-only close—Use Prior Knowledge Ask students: What does the term standing-room-only mean? an event is so crowded that all seats are taken, so you have to stand to see the event Then ask: Based on this information, what do you think a standing-room-only close is? a close emphasizing that the customer better purchase the product quickly because there is little room for additional buyers

TerraCycleTM Grows GreenerScience Answer The store might create a display of Terracycle Plant Food in a large container. Earth worms could be living in the plant food, showing that living things thrive there. Use thes e guiding questions to discuss.

Guiding Questions

Explain What are some reasons that TerraCycle says it is better than competitors?

safe to use and; outperforms synthetic plant foods

Analyze How does TerraCycle demonstrate that it supports local communities?

It relies on fundraising efforts to acquire recycled soda bottles for packaging.

The G REEN M arketerThe GREEN MarketerGREENGREEN


WHICH CLOSEThe which close is a closing method that encourages a

customer to make a decision between two items. If you follow the tips for closing a sale, you will remove unwanted items to bring the selection down to two. Compare the selling points of each item, and then ask the customer, “Which one do you prefer?” This method makes it easier for a customer because only one simple decision must be made.

STANDING-ROOM-ONLY CLOSEThe standing-room-only close is a method used when a

product is in short supply or when the price will be going up in the near future. This close should be used only when the situation honestly calls for it because it may be perceived as a high-pressure tactic. In many situations, a salesperson can honestly say, “I’m sorry, but I can’t promise that I’ll be able to make you this same offer later.”

The standing-room only approach is often used in selling high-demand real estate. Customers must often be prompted to act on a hot property that will be off the market quickly. They also may be prompted to act if an item is advertised at a low price and there is a limited supply at that price. For example, “The item you like is part of a special promotion. It is the last one we have in your size.”

Again, keep in mind that this approach can turn off a customer if he or she feels that you are pressuring them into a sale. Always be tactful and courteous to the customer in these situations.

DIRECT CLOSEThe direct close is a method in which you ask for the sale.

You would use the direct close method when the buying signal is very strong. Here is one example of dialog to use when using a direct close approach to a sales situation: “Can I assume that we’re ready to talk about the details of your order?” “It appears you like everything I have shown you. Now we just need to discuss the quantity you will need.”

You can use a statement like the one above and replace “quantity” with other specifics of the order, such as delivery, shipping terms, or special instructions. Positive statements by the customer to direct close approaches let you know that the customer is ready to buy. You can continue closing the order by addressing the specifics of the order.

In a retail situation, you might simply ask a question regarding payment, such as: “How would you like to pay for this purchase—cash, check, or credit card?”

TerraCycle™ Grows GreenerTerraCycle, Inc., is one of a number of eco-friendly companies in today’s marketplace. Its products, packaging, and product use are all eco-friendly. For TerraCycle’s all-natural plant food, the company uses organic waste to

feed worms. Then the worms’ waste is processed and used to make an all-natural plant food that is packaged in

recycled soda bottles. To acquire these bottles,

TerraCycle relies on fund-raising efforts by schools and nonprofit organizations.

Good Results TerraCycle Plant Food is exceptional in that it outperforms synthetic plant food products in many ways and is safe to use. The product is sold in retail stores, such as Walmart®, Home Depot®, Whole Foods,® Ace Hardware®, Do It Best®, and True Value®, with a 100-percent

satisfaction guarantee.

ScienceCreate You work in a store that sells TerraCycle Plant Food. Think of a scientific product demonstration or display that would help close the sale for this eco-friendly product.

NSES F Develop understanding of environmental quality in local, national, and global challenges.

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Get an activity on green marketing.

TThe GREEN MarketerGREEN


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SERVICE CLOSESometimes you may run into obstacles or

instances that require special services to close the sale. The service close is a method in which you explain services that overcome obstacles or problems. Such services include gift wrapping, a return policy, special sales arrangements, warranties and guarantees, and bonuses or premiums. You might want to explain the store’s return policy when a customer hesitates but seems to be willing to make the purchase anyway. This is an especially good idea when a customer is purchasing the item as a gift for someone else.

Special sales arrangements are used to close the sale when the customer needs help paying for the item or order.

The Service Close in Business-to-Business Situations

In an organizational selling situation, the sales representative would talk about the terms of the sale, discussing points such as when payment is expected. For example, payment could be due 30 or 60 days after the date of the invoice.

Customers may also need information about credit terms to help them decide to buy. In other cases, customers may need a sample to try out before purchasing large quantities. Sometimes offering a sampling program is beneficial if it is a new purchase or the buyer is changing vendors. The buyer needs proof that your product is a better substitute for the one currently being used.

The Service Close in RetailIn a retail selling situation, the use of credit

and checks as well as special buying plans, such as layaway, can be suggested. When a customer questions the quality of the merchandise, perhaps you can explain that a warranty, or guarantee, is offered on the product. When your business offers the same quality merchandise at the same price as your competitors’ price, your service may be the only factor that affects the buying decision.

Analyze Why is it important for salespeople to help customers make decisions?

Reading Check

The Indecisive Customer

The customer in this photo likes the product but is hesitant about buying it because it is a gift. Which specialized closing method would work best in this situation?


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Section 15.1

Graphic OrganizerDisplay this graphic organizer. Have students suggest four specialized closing methods. Possible answers:

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Visual LiteracyThe Indecisive Customer Caption Answer Read the caption question to students: Which specialized closing method would work best in this situation? Because the customer is buying for someone other than herself, such as a male friend or relative, the service close would probably work best. The salesperson could explain the store’s return policy, emphasizing that the recipient can easily return the tie if it is not to his liking. Ask students: Do you think a direct close would work in this situation? Why or why not? Possible answer: Probably not, because the customer is concerned that she might choose a tie that the recipient will not like. To use a direct close may cause her to decide that she should not make the purchase and get something else as a gift.

SERVICE CLOSE Ask these guiding questions to encourage students to discuss the service close.

Guiding Questions

Contrast How is a service close different from a direct close?

Direct close—salesperson asks the customer for the sale. Service close—salesperson offers the customer a specific reason to close.

Apply You are a salesperson at a car dealership. What are three different types of services you might offer to encourage customers to close?

special financing offers, warranties, promotional deals with discounts, deals on car maintenance such as free oil changes

Specialized Methods of

Closing a Sale

Which Close

Standing-Room-Only Close

Direct Close

Service Close

Read the Reading Check question to students: Why is it important for salespeople to help customers make decisions? Many people fear making the wrong decision, and therefore have a very difficult time making any decision. The salesperson is in an ideal position to guide customers to a decision that will meet their needs.

Reading Check Answer

Differentiated InstructionLogical Learners Set this scene for students: You are a sales associate for an electronics shop. It is the last day of the week and you are $400 short of your weekly sales quota. You have just spent 30 minutes with a couple who is looking for a fl at-screen television. They are having diffi culty choosing between a model that is on sale for $449 and another model priced at $499. At this point, your supervisor asks you to take a lunch break because she expects the store to be busy in half an hour. Have students write a one-page paper in which they identify at least three options in the above situation. Have students select the option they believe is best and explain their decision in a one-page paper. Options might include taking a break, making a trial close, handing the customers off to another salesperson, or continuing to help the customers and asking for a break after the busy period. This allows them to pursue closing the sale, perhaps by discussing the warrantees more thoroughly (service close) or explaining that the $449 television will only be on sale for a few more days. (standing-room-only close). Students should explain that the goal is to reach a conclusion that satisfies everyones needs.

Kinesthetic Learners. Assign pairs one of the following specialized closing methods: which close, standing-room-only close, direct close, or service close. Have students create skits incorporating their assigned type of close. One student should be the customer and the other the salesperson. When each pair is done, have the class provide feedback. Each pair should perform a skit in which the salesperson uses the specified closing method. The class should provide feedback, discussing the effectiveness of the salesperson’s closing method.

Mini Projects

PROFESSIONALDEVELOPMENT

ELL: Elaborating on Student Responses Go to the Online Learning Center to view a video clip in which a teacher elaborates on a student response.


ELABORATE

Graphic OrganizerTo help students understand the role of feedback when a salesperson fails to close, display this diagram.

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FAILURE TO CLOSE THE SALEAsk these guiding questions to focus the discussion.

Guiding Questions

Recall Why should a salesperson not take the failure to close a sale personally?

product may not meet customer needs; the product may cost too much

Evaluate “The attitude of the salesperson who has not made the sale should be no different than that of the successful salesperson.” Do you think this is possible?

It is possible if the salesperson believes there may be other opportunities to make sales in the future. It is also important not to take failure to close a sale personally.

Failure to close

Keep communication open

Maintain a positive attitude

Assess feedback


ELL: Academic Language Go to the Online Learning Center for a video in which experts discuss the importance of addressing academic language.


After You Read Section 15.1

For help, go to the Math Skills Handbook located at the back of this book.

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Check your answers.

Practice AcademicsEnglish Language Arts 4. Write a dialogue between two people closing a sale in either a retail or an

organizational setting.

Mathematics 5. To close the sale, you offer layaway as an option, which requires a 20-percent

deposit. What would the required deposit be on a $1,099 television?

Starting Hints To solve this problem, convert 20 percent to a decimal by moving the decimal point two places to the left. Multiply $1,099 by the decimal number to determine the amount of the deposit.

Review Key Concepts 1. Contrast getting minor agreements with pacing your closing.

2. Describe what you would say when closing the sale to create an ownership mentality.

3. Identify the specialized method you would use to close the sale in this situation: A customer is interested in an item but wants to wait to purchase it when it goes on sale.

NCTE 5 Use different writing process elements to communicate effectively.

NCTM Number and Operations Understand numbers, ways of representing numbers, relationships among numbers, and number systems.

This is especially true when you and the buyer have established a good relationship. In such a case, the buyer may respond to an appeal for consideration in the next order.

If you have established excellent rapport with the buyer, you may be able to ask him or her what factors led to the decision to buy from another source. An appeal for constructive criticism may work for you if you have earned the buyer's respect from past interactions.

FEEDBACKExperienced salespeople capitalize on defeat

and come away from an unsuccessful selling experience with something to show for it. A customer who does not make a purchase is still a prospect for future business. Be alert to what purchases today's non-buyer may make in the future.

It is important to get feedback on why a customer did not buy. Try to learn what factor or factors influenced that decision. You may learn that the factors were out of the buyer’s control.

For example, a new company policy or budgetary constraints may be the reason for not buying. Or you may learn that the buyer is purchasing a competitor’s product because of its lower price.

Any feedback you receive can help you and your company in the future. For example, information obtained may help your company decide on future products, pricing, and marketing policies. Your company may learn a customer's opinion about what it needs to do to outsell competitors in the marketplace. The call report you complete will have all those details in it for management to review and act upon.

One popular misconception about selling is that salespeople are born, not made. It is true that effective salespeople possess certain behavioral characteristics. These characteristics include confidence, problem-solving abilities, honesty, and a sincere desire to be helpful.

However, success in selling is the result of training, apprenticeship, and experience. Learning one's products and how to handle various situations comes with experience and hard work.


Do not assume that every sales presentation should end in a sale. Even the best salespeople can sell to only a fraction of their prospects.

You should also not take a failure to close the sale personally. The customer had reasons for not buying your product at that time. It is possible that your product did not meet your customer’s needs. In that case, you would not have closed the sale anyway. In other cases, the customers may not need your product at that time but may in the future.

How do you handle a failed closing and what can you learn from it? Let’s take a look at what you can do in a retail sales situation and in an organizational sales situation. Also, let’s see how feedback can help you and your company.

MAINTAIN A POSITIVE ATTITUDE

The attitude of the salesperson who has not made the sale should be no different than the attitude of the successful salesperson. It is very important for the salesperson to smile and be friendly after failing to make a sale. Customers appreciate a sincere salesperson who has their best interest in mind.

You will have many more opportunities for success, particularly if you treat your customers with courtesy and respect. Be positive and leave the door open for future opportunities.

Closing the Sale Research indicates the outcome of the sale is usually determined within the first 30 seconds of the presentation.

HO T H O T TOPIC T O P I CH O T HO T

T O P I C TOPIC

IN RETAIL SALESIn a retail setting, invite the customer to shop in

your store again. In some cases, your store simply may not have had the product the customer needed at that time. Customers who are treated nicely, even when they do not buy something, remember that experience and will return on another occasion. Thus, you will have a second chance to satisfy their needs and wants.

IN ORGANIZATIONAL SALESNot all sales calls require a closing. Business-

to-business salespeople may negotiate on large accounts for months before closing the sale. So, the first few sales calls may be building blocks upon which you develop a relationship and learn more about your customers’ needs and wants. During that process, you become a partner and consultant in solving your customers’ problems and satisfying their needs.

In organizational selling situations, it is not uncommon for buyers to be convinced by a sales presentation but not yet ready to buy. In such a situation, it is extremely important that the salesperson leave an opening for a return sales call. However, if you clearly sense an impending turndown, it is better to make a graceful exit and leave the possibility for a future sales call. In both cases, leave a business card with those prospects. Research suggests that perseverance is the way to succeed. So, remember every sales contact has the potential to become a successful sale in the future.

In some business-to-business selling situations, the buyer may have some feelings of guilt. These feelings could be due to their rejection of your sales proposition in favor of a competitor’s.

FAILURE TO CLOSE THE SALE

Failure to close

Keep communication open

Maintain a positive attitude

Assess feedback


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Practice AcademicsEnglish Language Arts 4. The student should write a dialogue between two

people closing either a retail sale or an organizational sale. Following is a sample of two people closing a retail sale. Salesperson: Would you prefer the maroon or red shirt? Customer: I think I’ll take the red one. Salesperson: How would you like to pay for it? Customer: I’ll use my debit card.

Mathematics 5. $219.80 ($1099 × .20)

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Answer Key Send students to the Online Learning Center to check their answers.

Review Key Concepts 1. Getting minor agreements involves having the

customer concur with you on selling points that they have noticed. By doing this, you build a foundation of positive interactions throughout the selling process that naturally leads to the closing. Getting minor agreements is a good approach during the time the customer is making the buying decision. However, if you see that the customer is ready to make a buying decision, you should stop using any sales tactics—doing so might annoy the customer, who at this point is ready to proceed with the transaction.

2. To create an ownership mentality, use words like “you” and “your.” You should use language that indicates to the person that the product is already theirs.

3. The standing-room-only close should be used. For example, you might say “There is a limited inventory of that item and it may be sold out before the sale even takes place.”


Critical ThinkingHave students look once again at the feedback diagram on page 346. Ask: Which of these four steps do you think would be the most difficult for you? Why? Sample answer: “Maintain a positive attitude” because I would be very discouraged if I went for a long time without being able to close a sale. Then ask: What are some ways that a salesperson can maintain a positive attitude? Possible answer: By talking with other salespeople who have been in the same situation, and continuing to practice sales techniques.

EnrichmentProviding Encouragement to a Salesperson Have the students imagine that they are sales managers at a bicycle shop. One of their salespeople has a solid record of sales, but lately has had a hard time closing sales. Instruct students to write an encouraging one-page letter to this salesperson. In the letter, they should list at least three of the points discussed under “Failure to Close the Sale.” The letter might begin by stating that even the best salespeople close only a fraction of their sales and that everybody goes through challenging periods. Those salespeople who are successful are the ones who persevere. The student might want to mention the salesperson’s good qualities, such as always being friendly even when a sale is not closed.

Mini Projects


Closing the Sale Ask students to refl ect on whether the outcome of a sale is determined within 30 seconds of the presentation.

H O TH O T T O P I CT O P I CH O T H O T

T O P I C TO P I C

ENGAGE

Objectives• Explain the benefi ts of suggestion selling. Benefits include:

salesperson gains loyal customer, company makes money, customer more satisfied

• List the rules for effective suggestion selling. Do it only after customer is committed; keep customer’s point of view in mind; make suggestion definite; show item; make suggestion positive

• Demonstrate appropriate specialized suggestion selling methods. Know how to perform cross-selling and up-selling and how to draw attention to special sales opportunities.

• Discuss strategies for maintaining and building a clientele. Process order efficiently, reassure client of wise buying choice, thank client, make sure order is properly filled, and follow up.

• Explain the importance of after-sale activities and customer service. Because they are satisfied, clients are more likely to become loyal customers.

• Discuss what salespeople can do to plan for future sales. Keep client file, evaluate their sales efforts, and analyze feedback.

Anticipation ActivityImproving Student Achievement Have students imagine that they work at a men’s clothing store. Ask: After a customer buys a suit, what items can be sold to that customer through suggestion selling? ties, shirts, tie pins, cuff links, belts, socks

Graphic Organizer

Suggestion Selling

Benefits

Rules

Methods

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Graphic Organizer Send students to the Online Learning Center to p rint this graphic organizer.


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Print this graphic organizer.

READING GUIDE

Content Vocabulary• suggestion selling

Academic VocabularyYou will find these words in your reading and on your tests. Make sure you know their meanings.

• appreciated• volume

Graphic Organizer Draw or print this chart to summarize key points for suggestion selling and for building a clientele.

Objectives

• Explain the benefits of suggestion selling.

• List the rules for effective suggestion selling.

• Demonstrate appropriate specialized suggestion selling methods.

• Discuss strategies for maintaining and building a clientele.

• Explain the importance of after-sale activities and customer service.

• Discuss what salespeople can do to plan for future sales.

The Main Idea After you close the sale, there are many things you can do to enhance customer satisfaction. Creating a positive relationship with customers will ensure future business.

Vocabulary

Connect When have you been contacted by a company after making a purchase?

Before You Read

MARKETING CORE FUNCTION

Selling

ACADEMIC

English Language Arts NCTE 4 Use written language to communicate effectively.

Social Studies NCSS VII B Production, Distribution, and Consumption Analyze the role that supply and demand, prices, incentives, and profits play in determining what is produced and distributed in a competitive market system.

NCSS National Council for the Social Studies

NCTE National Council of Teachers of English

NCTM National Council of Teachers of Mathematics

NSES National Science Education Standards

Common Core Writing Write informative/explanatory texts to examine and convey complex ideas and information clearly and accurately through the effective selection, organization, and analysis of content.

STANDARDS

Suggestion Selling

Benefits

Rules

Methods


Maintaining and building a clientele is crucial for future sales. The actual sale is just the beginning of a relationship with the customer. To keep customers, it is important to make a good impression, get to know your customers, and provide excellent customer service. One significant part of this process is suggestion selling.

Suggestion selling is selling additional goods or services to the customer. It involves selling other items to customers that will ultimately save time and money or make the original purchase more appreciated. It is important to the sales process because it helps to improve customer satisfaction, and it increases sales for the business.

Consider the customer who buys an electronic toy for a child, takes it home, and only then realizes that batteries are needed for it to function. That means another trip to the store before the child can play with the toy. The salesperson might have had a sure sale with a suggestion to buy batteries.

Predict What makes some companies better than others in creating loyal customers?

As You Read

BENEFITS OF SUGGESTION SELLING

Suggestion selling benefits the salesperson, the customer, and the company. You benefit because customers will want to do business with you again, so your sales will increase. Since salespeople are often evaluated according to their sales figures, you will be viewed as an effective salesperson. Your customers benefit because they are pleased with their purchase. The company benefits because the time and cost involved in suggestion selling is less than the cost of making the original sale.

Selling is a process of persuasion, so the principles of persuasion apply to it. A counter clerk at McDonald's will ask you whether you would like a drink, French fries, or a hot apple pie with your meal. The clerk is using a suggestion selling approach.

The actual sale is the beginning of a relationship with a customer.

Consider the two purchases in the following chart. The second purchase includes an extra item suggested by the salesperson. Note that the extra time spent on suggestion selling significantly increased the firm’s net profits. Expenses rose, but not in proportion to the sales volume. There are two reasons for this. First, less time and effort are needed for suggestion selling compared to the initial sale. Second, certain business expenses (such as utilities and rent) remain the same despite the extra sales activity.

Purchase 1 Purchase 2

Pants $75 Pants $75

Shirt $35

Total $75 Total $110

Cost of goods -$37 Cost of goods -$55

Gross Profit $38 Gross Profit $55

Expenses -$12 Expenses -$15

Net profit $26 Net profit $40

SUGGESTION SELLING

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15.2

EXPLORE

Section 15.2

Customer Satisfaction

Before You Read

Read the Before You Read question aloud: When have you been contacted by a company after making a purchase? Most students will have been thanked via e-mail after making an online purchase. However, fewer will have been contacted after buying items at a bricks-and-mortar store. Then ask: What was the purpose of this follow-up contact? to show appreciation for being a customer; to provide information about shipping (in the case of online or catalog sales); to advertise new items or other items of interest; and to encourage future sales.

Preteaching Vocabulary Have studnts go to the Online Learning Center at glencoe.com for the Section 15.2 Preteaching Vocabulary online quiz.

Content VocabularyWrite the word suggestion for the class to read. Have students work individually to write a defi nition of suggestion. Ask for volunteers to share their defi nitions. attempting to influence a person’s physical or mental state by a thought or idea Discuss that the word can be diffi cult to defi ne because it involves infl uencing the way that people think and act. In many instances, this type of infl uence is the ultimate goal of the salesperson. Explain that when engaging in suggestion sales, the salesperson is trying to infl uence the customer’s purchase.

Academic VocabularyAppreciate—Word Origins Write the word appreciate for students to read. Explain that it comes from the Medieval Latin word appretiare, which means “to value or prize.” Ask students: How is this definition related to our definition of appreciate? Appreciate means “to grasp the worth or significance of,” which means that we value or prize something.

Volume—Use Prior Knowledge Ask students: What does the word volume mean when used in a science or math class?

SUGGESTION SELLING Present these guiding questions to focus the discussion about suggestion selling.

Guiding Questions

Analyze Think of a time when a salesperson suggested you buy a second product to go with the one you were buying. If so, were you happy with the decision?

I bought a laptop and the salesperson suggested I also buy a printer. I did not buy it because I wanted to conduct research first. However, a week later I returned to the store and bought a printer.

Synthesize How might a small store encourage its salespeople to engage in suggestion selling?

by offering incentives and bonuses for those who are successful in suggestion selling; by offering training and role-playing activities

Graphic OrganizerDisplay this graphic organizer to emphasize suggestion selling.

Expert AdviceRead the quote to students:

The actual sale is the beginning of a relationship with a customer.

Ask students: Do you think developing a strong customer relationship is more important in retail sales or organizational sales? Why? relationships are important in organizational sales because corporate buyers tend to stay with vendors for long periods of time.

Sales engage in suggestion selling

Net profi ts increase Reasons: Lower business expenses; less time for salesperson

Cause Effect

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As You Read

Read the As You Read question aloud: What makes some companies better than others in creating loyal customers? Possible responses: quality of products, wide range of choices, good service, personal attention, and satisfaction with previous shopping experiences and with the staff.


EXPLAIN

RULES FOR SUGGESTION SELLINGAsk these guiding questions to focus the discussion on the rules for suggestion selling.

Guiding Questions

Explain Generally speaking, the salesperson s hould not engage in suggestion selling until after the customer has committed to a purchase. What is the exception to this rule?

when product accessories are a major benefit to the original purchase item

Analyze Why should the salesperson always try to show the item being suggested?

Seeing the item allows the customer to visualize how it enhances the original purchase—this is particularly true with clothing items.

Critical ThinkingAsk: Can you think of any cases where it is not ethical to suggest buying larger quantities of a product? When items tend to spoil or deteriorate quickly, the customer or client should not be encouraged to purchase more than can safely be used.


ELL: Comprehension and English Language Learners Go to the Online Learning Center for a video that discusses comprehension strategies for English language learners.


RULES FOR SUGGESTION SELLING

Here are five basic rules for suggestion selling:

1. Use suggestion selling after the customer has made a commitment to buy but before payment is made or the order written. Introducing additional merchandise before the sale has been closed can create pressure for the customer. The only exception to this rule involves products whose accessories are a major benefit. If you are showing a retailer a new type of video game system, you may need to tell the retailer about the exciting new video games that will be sold in conjunction with that new system.

2. Make your recommendation from the customer’s point of view and give at least one reason for your suggestion. You might say, “For your child to enjoy this toy immediately, you’ll need two AAA batteries.”

3. Make the suggestion definite. In most cases, general questions invite a negative response. Do not ask, “Will that be all?” Instead say, “This oil is recommended by the manufacturer for this engine.”

4. Show the item you are suggesting. Merely talking about it is not enough. In many cases, the item will sell itself if you let the customer see and handle it. You may place a matching purse next to the shoes the customer has just decided to buy, adding some commentary. You might say, “This purse matches your shoes perfectly, doesn’t it?”

5. Make the suggestion positive. You could say, “Let me show you the matching top for those slacks. It will complete the outfit beautifully.” You would certainly never say, "You wouldn't want to look at scarves for your new coat, would you?" Such a negative statement shows a lack of enthusiasm or a lack of confidence on the part of the salesperson.

SUGGESTION SELLING METHODS

Suggestion selling methods are: offering related merchandise, recommending larger quantities, and calling attention to special sales opportunities. Figure 15.1 shows examples of different ways to use suggestion selling.

OFFERING RELATED MERCHANDISE

Suggesting related merchandise, also known as cross-selling, increases the use or enjoyment of the customer’s original purchase. Cross-selling is probably the easiest suggestion selling method. The related merchandise can be a good or service. For example, accessory items can be sold with the original purchase—perhaps a tie to match a new suit or a service contract for a new appliance.

RECOMMENDING LARGER QUANTITIES

Suggesting a larger quantity is often referred to as up-selling. This method works in retail settings when selling inexpensive items or when savings in money or time and convenience are involved. You may tell a customer who wants to buy one pair of socks, “One pair costs $4, but you can buy three pairs for $10.

In organizational sales situations, the salesperson may suggest a larger quantity so that the customer can take advantage of lower prices or special considerations like free shipping.

CALLING ATTENTION TO SPECIAL SALES OPPORTUNITIES

Salespeople are obligated to communicate special sales opportunities to their customers.

In retail sales, routinely inform your customer of the arrival of new merchandise. You could comment on a special sale by explaining, “We’re having a one-day sale on all items in this department. You might want to look around before I process your purchase.”

In organizational sales situations, sales representatives show new items to their customers after they have completed the sale of merchandise requested. Thus, the salesperson has an opportunity to establish a rapport with the customer before introducing new merchandise.

Identify Describe a scenario in which you would use up-selling.

Reading Check


Suggestion SellingSuggestion-selling involves selling other items to customers that will ultimately save time and money or make the original purchase more enjoyable. Let’s see how suggestion selling methods might be used by a sales representative that sells goods and services for pets.

FIGURE 15.1

UP-SELLING A salesperson who sold these dogsled harnesses may suggest larger quantities to make a customer eligible for special discounts.

SPECIAL SALES OPPORTUNITIES When a company runs a special promotion on products unrelated to the original purchase, or wants to introduce a new product or service, like pet photography, it is up to the sales representative to share that information with the customer. These might be suggested after making the original sale.

CROSS-SELLING The salesperson should suggest related items of merchandise. For dogsled owners, dog grooming services might be suggested.


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ELABORATE

Section 15.2

Critical ThinkingHave students share their experiences with after-sales activities, such as follow-up calls and e-mails from online retailers. Students may have received thank-you messages from Web sites, information about when their purchases will arrive, and advertisements for sales on similar products or accessories. Have students discuss whether such actions make it more likely for them to give return business. If a follow-up e-mail tells me about a sale where I might save money, I will probably check to see what is available; otherwise, I just ignore follow-up activities.

Visual LiteracyFigure 15.1 Suggestion Selling Discuss with students that salespeople who are good at suggestion selling are able to put themselves in the customer’s place. Describe for students a scenario in which an 18-year-old goes to an auto supply store to look at seat covers for a used pick-up truck he has purchased. Ask students: If you were a salesperson in this store, how might you use suggestion selling to help this new owner? Encourage students to be creative in their responses. Possible answers: The salesperson may note that the customer is looking at some low-end seat covers and suggest slightly more expensive ones that are stain repellent and have a more durable fabric. The salesperson might also show related items, such as steering wheel covers that match the seat covers.

Read the Reading Check question to students: Describe a scenario in which you would use up-selling? Answers will vary. Sample answers: I might remind a customer that they could save a dollar on paper towels if they purchased three packages instead of one.

Reading Check Answer

EnrichmentIdentifying Suggestion Selling Opportunities Have students research cultural, religious, or national holidays, such as Rosh Hashanah, Cinco de Mayo, Ramadan, Kwanzaa, Christmas, Valentine’s Day, Mother’s Day, and Father’s Day. Ask them to create a calendar listing these holidays and others on which special foods are eaten and/or gifts are given or exchanged. Have students write a one- to two-page report about how a business of their choice can use these events to increase sales. In the report, students can discuss how the business might use suggestion selling to encourage customers to make additional purchases. Student’s reports will vary, but should discuss how a specific business can use suggestion selling to encourage purchases related to various holidays. For example, if a customer was purchasing a ham to serve for Christmas dinner, the salesperson might suggest they also purchase sweet potatoes, applesauce, and other side dishes that are traditionally served on Christmas as an accompaniment to ham.

Learning How to Influence People Discuss with students that in order to be good at suggestion selling, you must be able to establish a rapport with the client so that they will value your opinions. One of the oldest and most widely read books on this topic is Dale Carnegie’s How to Win Friends and Influence People. Tell students that even though the book was fi rst published in 1937, it has invaluable knowledge that can help people build stronger relationships today. It is especially applicable to salespeople because their sales will increase if their customers value their opinions. Have students read this relatively short book and then write a persuasive essay explaining why they think salespeople can benefi t from the information and tips it provides. Students should write a persuasive essay explaining why this book could be helpful to salespeople, particularly in the area of suggestion selling. Tips such as being genuinely interested in others and listening intently to their needs and opinions are at the core of succeeding in sales.

Mini Projects


EXPLAIN

Graphic OrganizerDisplay this diagram as an overview of after-sales activities. Add notes to the bottom row as you discuss with the class .

Visual LiteracyCross-Selling Caption Answer Read the caption question to students: What is the key to suggesting related merchandise, as clearly identified in this catalog page? The products must be closely related to the merchandise being purchased. They should be products that are likely to be needed by the owner of the purchased product. Bring in an item with which students are familiar, such as athletic shoes or a soccer jersey. Ask for volunteers to write items that could be cross-sold with this item. Possible answers for athletic shoes: appropriate socks, cleaning supplies for athletic shoes, clothing for sports activities

Critical ThinkingDescribe for students this scenario: A homeowner purchases new carpet for a family room. A couple of days after the carpet layers have fi nished their work, the homeowner receives a call from the salesperson who sold her the carpet. The salesperson asks to visit the customer at her convenience. The salesperson then carefully examines the carpet and says how nice it looks in the family room. The next day the homeowner tells her neighbor that she had never had a carpet salesperson follow-up by inspecting the fi nished job. Ask students: How do you think this might affect the salesperson’s future sales? Not only is this homeowner likely to seek out this salesperson the next time she needs to make a carpet purchase, her neighbor might do the same.

After-Sales Activities

Order Processing

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Order Fulfi llment

Make certain order is filled to customer specifications

Get customer feedback

Follow-Up

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Marketing CASE STUDY

Equinox Fitness is an upscale fitness club with locations in several U.S. cities. Its original system of developing and following up on leads was paper-based. Frustration with the outdated sales system created a high turnover of sales staff. It was clear that selling fitness memberships had to move into the computer age.

Microsoft SolutionEquinox had a lot of information about its customers, so it knew its target market. But it needed a boost, provided by the Microsoft Gold Certified Partner, Customer Effective. This system improved the process of member applications, while gathering data for sales presentations. Equinox also created its own Equinox Selling Process (ESP), a sales training tool for staff at its clubs. ESP provides sales techniques and support to help the sales staff close membership sales.

Selling Fitness at Equinox

English Language ArtsEvaluate Discuss with a partner the risks and benefits involved in making a system-wide change to an established selling process. What are the advantages of using modern technology if the trade-off is having to retrain the entire sales force?

NCTE 12 Use language to accomplish individual purposes.

DEPARTUREBefore customers depart or before you leave

your clients’ offices, reassure your clientele of their wise buying choices. If an item needs special care or specific instructions, take the time to educate your customer about it. You may want to remind the customer, for example, that to get the best results from a Teflon-coated frying pan, it should be preheated. When selling new automobiles, this would be a good time to show your customers how to work some of the electronic devices, such as the GPS system. This extra time spent with customers helps ensure customer satisfaction.

Always thank your customers. Even when a customer does not buy, express your gratitude for the time and attention given to you. Invite customers back to the store, or ask for permission to call again in the near future.

ORDER FULFILLMENTIn organizational selling situations, order

fulfillment is based on the purchase order or sales order. If a purchase order involves special instructions, salespeople need to communicate those special instructions to other company employees. This helps to ensure that everything is done to the customer’s precise specifications.

For example, salespeople may alert the shipping department when part of an order is to be shipped to different locations or at different times. Salespeople may speak directly with the manufacturing manager regarding specifications for embroidery of a customer’s name on employee uniforms. The salesperson’s attention to these details can avoid potential problems with the current sale and future sales.

In a retail store, order fulfillment is a simple pro-cess of the customer paying for merchandise and carrying it away.

In telemarketing or online sales, order fulfill ment gets more complicated. It includes taking the order, financial processing (such as credit card in formation), picking the right product, packing it well, and shipping it according to the customer’s preference. In some companies, fulfillment also includes customer service, technical support, manag ing inventory, and handling returns and refunds. Success often depends as much on appropriate fulfillment strategies as it does on hav-ing the right product at the right price. Some of the most successful online retailers have established their own fulfillment centers to ensure prompt delivery. Amazon.com, BarnesandNoble.com, and Dell® Com-puter all have their own fulfillment centers. Another approach is to outsource fulfillment to a third party.


Making a sale is the first step in maintaining and building a clientele. Maintaining a clientele is necessary for repeat sales, which are necessary for businesses to be successful. Also, satisfied customers often help generate new customers by telling others about their positive experiences. It also costs more to find new customers than it costs to keep current customers satisfied. Positive customer- or client-relations require a lot of attention after the sale. After-sale activities by the sales and customer service staff, as well as planning for future sales, are key factors in building a clientele.

Building Clientele

Order Processing

Follow-up

Order Fulfillment Departure

AFTER-SALES ACTIVITIES The time you spend with your customer after

a sale is just as important, if not more important, than the time you spent making the sale. After-sale activities include order processing, departure, order fulfillment, and follow-up. All these activities need to be handled in such a way that the customer wants to do business with you again. Satisfied customers become steady customers, which is a goal in selling: to generate repeat business.

ORDER PROCESSING In retail selling, bag the merchandise with care.

Products such as glassware may require individual wrapping before bagging. Expensive clothing may be left on hangers and enclosed in special bags made for that purpose. Work quickly to bag your customer’s merchandise and complete the payment process.

In business-to-business sales, complete the paperwork quickly and accurately. Review the order with your customer and leave the customer with a copy of it along with your business card.

MAINTAINING AND BUILDING A CLIENTELE

Cross-Selling Selling related merchandise is an easy method of suggestion selling. What is the key to suggesting related merchandise, as clearly identified in this L.L. Bean catalog page?


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ELABORATE

Section 15.2

AFTER-SALES ACTIVITIESAsk these guiding questions to focus the discussion on after-sales activities.

Guiding Questions

Analyze In business-to-business sales, the salesperson should leave the customer a copy of the order. Why is this step important?

The customer may need to refer to the order for information, such as delivery date. The customer can also double-check the order when more time is available.

Predict Which of these companies is more likely to need additional help after a sale takes place: A corporation ordering a year’s supply of copy paper or an engineering fi rm ordering components for a bridge that will go over a river?

The engineering firm because such a project has many components—it is likely some components will need to be exchanged, more will have to be added, and so on.

Graphic OrganizerDisplay this graphic organizer. Discuss the different categories of businesses that must fulfi ll orders.

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Retail S tores

Non-Profit Telemarketerss

Types of Businesses-Order

Fulfi llment

Marketing CASE STUDY

English Language Arts Answer Students should discuss with a partner the advantages of having a computer-based system for processing member applications and gathering sales information. Important advantages include that a computer-based system is much easier to update and can be shared among multiple users at the same time. It provides sophisticated sales training tools and support for closing membership sales. The system also greatly simplifi es spotting and analyzing membership trends.

Extend Have students use the Internet to research the advantages of being a member of the Microsoft Partner Network and discuss what they learn. Microsoft states that it can supply tools to support companies through th e business cycle.

EnrichmentCreating a Poster on Cross-Selling Locate a variety of catalogs or Web sites that use cross-selling to suggest related purchases that might interest customers. For example, a women’s clothing site might suggest jewelry or scarves that go with a specifi c dress. Have students print or cut out these examples of cross-selling. Have them use these images to create a poster that explains cross-selling. The poster should include a title and a brief defi nition of cross-selling. Place posters where the entire class can view them. Student posters should contain examples of cross-selling that illustrate how catalogs and Web sites use these techniques to increase sales.

Deciding Whether to Outsource or Establish Own Fulfillment Center Tell students that they work for a Web site that sells sports memorabilia. Up until now, the company has outsourced fulfi llment to a third party. However, the owner is now thinking about having the company establish its own fulfi llment center. The owner has asked their opinion about this idea. Instruct students to write a one-page report in which they discuss the pros and cons of the company setting up its own fulfi llment center. At the end of their reports, students should state the route they believe the company should take. Pros may include: the company would have more control over the process and orders might be filled more quickly. In addition, it might be less expensive. Cons may include: it takes a lot of time and effort to set up a fulfillment center, it detracts from the company’s primary mission, and the company must provide warehouse space for the product. At the end of the report, the student should analyze the options and make a decision either for or against setting up an in-house fulfillment center.

Mini Projects


EXPLAIN

FOLLOW-UPFollow-up completes the cycle which hopefully leads to future sales. To focus on follow-up activities, present these guiding questions to the class.

Guiding Questions

Recall What should the salesperson do if there in an unexpected delay in shipping?

Immediately inform the customer.

Infer What message is a salesperson sending the customer when the salesperson carefully carries through on all promises made during the sales process?

The salesperson is reliable and values the customer’s business.

Apply If you were a salesperson, what would you say in a thank-you note to a customer?

I would thank the customer and mention her wise buying decision, and I would say that I was looking forward to another opportunity to help her.

Critical ThinkingThe fourth follow-up step is to call the customer for feedback one or two weeks after delivery. Why would the salesperson want to wait this length of time? Some customers are busy and may not be able to examine the order immediately. Others may need time to determine whether the purchase is working for them.

Visual LiteracyAfter-Sale Activities Caption Answer Read the caption question to students: What else should the salesperson do before the customer departs? The salesperson should reiterate that the customer has made a good buying decision and remind that person of any special instructions regarding the product. The salesperson may also want to obtain information such as name, address, phone number, and e-mail address for the business’s database for future follow-up. However, most important of all is to offer a sincere thank you, regardless of whether the customer made a purchase or not.


Company CEOs may blog about new products and services. Facebook and Twitter allow companies to interact with customers. Businesses on Facebook may create games or other special activities to engage customers. Customers’ comments recorded on Facebook and Twitter often get responses from the company. This ongoing dialogue between the customer and the company provides customers with a personal response. It also helps companies address unforeseen problems they may not have discovered otherwise.

Online Customer Support Many retailers and manufacturers offer answers

to frequently asked questions (FAQs) on their respective Web sites. Their Web sites may also provide a link to a customer service center. This link allows customers to ask questions and receive replies via e-mail or a phone call from a customer service representative. This online customer support is extremely useful with products that require installation or manipulation.

Special Retail ServicesMany retailers offer a bridal and/or baby registry.

Engaged couples and expecting parents select items they like, and that list is made available to anyone who wants to buy them gifts. In some auto dealerships, specific customer service representatives are assigned to each customer to handle appointments and questions with auto problems and regular servicing. Merchandise returns and customer inquiries are often handled by a special customer service department.

Special Vendor ServicesLarge retailers may require vendors to provide

additional services as part of their sales agreement. Some of those services may include keeping track of retail inventory, providing merchandising services, restocking promotional materials, and designing packages to meet their shelf-space requirements. A retailer that is very important to a vendor may employ its own staff whose sole responsibility is servicing that one big account.

Customer Training When a product is purchased by a company

that requires instruction before using it, hands-on training may be provided to customers. Apple®, Inc., offers everyone who purchases an Apple computer one year of free training.

More advanced instruction may be offered to companies when a new computer software program is installed. Key employees may attend classes provided by the vendor. Instead of formal classes at the company’s headquarters, the training may be held in the customer’s place of business or at a convenient location for the customer.

Manufacturers that sell products for resale may provide training materials to retailers’ and wholesalers’ sales staff. Computer-aided instruction, videos, training manuals, and other items may be used to educate the retail sales staff about a product’s features and benefits. The manufacturer’s sales representative may also provide personal instruction about how to handle customer questions and possible objections.

Customer Satisfaction

The goal of customer service, whether handled by a customer service department or by the salesperson, is customer satisfaction and retention. Why is customer service an important part of sales?


This allows a company to concentrate its efforts on marketing the products. The goal in all forms of order fulfillment is to make the customer happy.

FOLLOW-UP The follow-up includes making arrangements

to follow through on all promises made during the sales process. It also includes checking on your customer’s satisfaction with his or her purchase. Here are a few follow-up ideas:

Call the shipping department to confirm a special delivery date.

Check to make sure that delivery occurs as promised.

Call the customer and explain any delay. Phone customers a week or two after the purchase

to see if they are happy with the selection. Send a thank-you note with your business card

attached.

CUSTOMER SERVICE The role of customer service cannot be

emphasized enough as a part of developing selling relationships. Salespeople do their job generating new customers. Customer service is needed to keep those customers happy. Businesses recognize the importance of customer service.

Employees provide excellent customer service to maintain their clientele. Customer service has many dimensions. It includes offering a variety of special services and handling customer complaints.

OFFERING SPECIAL SERVICES Many customer services are designed to

keep customers loyal by providing ongoing communication with them and help after the sale. Some of these special services include e-mail and social media interaction, online support, special retail and vendor services, and customer training.

E-Mail and Social MediaBusinesses have recognized the benefits

of keeping communication lines open with customers on an ongoing basis. Some use e-mail to provide customers with information regarding new products and special promotions on a regular basis. Businesses are legally required to get permission to send customers email. Customers must "opt-in" and agree to receive the emails. A business must also give customers the opportunity to "opt-out" if they no longer want to get emails from the company.

Social media opportunities include weblogs (blogs), Facebook®, Twitter®, and other Internet platforms that permit businesses to create a dialogue with customers on a frequent basis.

After-Sale Activities

Proper handling of after-sale activities helps to ensure customer satisfaction with the entire shopping experience. What else should the salesperson do before the customer departs?


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eMarketing Worksheet Activity Send students to the Online Learning Center to download an eMarketing worksheet activity.

ELABORATE

Section 15.2

Collaborative FilteringWith collaborative fi ltering, purchase patterns can be discerned based on previous purchases by an individual or by customers that purchase similar products. Companies use collaborative fi ltering to make recommendations when a customer purchases a product. Collaborative fi ltering is an effective form of suggestion selling because data indicate that the customer may be interested in the suggested item(s). Amazon® and some other online catalog companies use collaborative fi ltering. For example, when you purchase a book on Amazon, you are directed to view a few additional books based on your previous purchases or based on what other customers who purchased that book have purchased in the past.

Innovate and CreateDiscuss the effectiveness of collaborative fi ltering as a form of suggestion selling. Why do you think the additional items are suggested after customers have made a commitment to buy but before they conduct their fi nal online check out? What other methods of suggestion selling have you seen in practice online; especially on Amazon.com? For an online clothing e-tailer create the means for suggestion selling to take place before the fi nal check out process. Decide what suggestion selling methods will work best for a clothing e-tailer. Collaborative filtering is an effective form of suggestion selling because the suggested items are based on previous purchases. For example, if a customer has purchased many books by the same author and a new book by that author is now available, it is a strong possibility that the customer will be interested in purchasing it. It is a good practice to conduct suggestion selling after there is a commitment to buy so you don’t overwhelm a customer. To make the suggestion relevant you should give a reason why you are suggesting it (i.e., to complete an outfit, based on previous purchases may be interested in …). With an online e-tailer, showing related merchandise such as accessories on a model (possibly one in the catalog) could create effective suggestion selling. Related merchandise and larger quantities of merchandise (buy one get the second one for half price) and new arrivals can all be used effectively when conducting suggestion selling for an online clothing e-tailer. .

CUSTOMER SERVICEExplain to students that customer service covers everything from handling complaints to offering online product support. Ask these guiding questions to focus the discussion on customer service.

Guiding Questions

List What are three customer services designed to help customers and keep them loyal?

online support, special retail and vendor services, customer training, handling customer complaints

Apply You are a salesperson for a local electronics store. Your store offers no training in using the computers or computer software that you sell. What might you say to encourage your manager to begin offering such training?

Sample answer: Classes for using computers and computer software will encourage consumers to buy from our store. In addition, many of the chain stores offer such training, so we need to offer it to remain competitive.

Visual LiteracyCustomer Satisfaction Caption Answer Read the caption question to students: Why is customer service an important part of sales? Providing good customer service tells customers that the company and the salesperson value their patronage. It sets the stage for long-term relationships and helps cement existing ones. Then ask: What special challenges might there be in providing good customer service when communicating over the phone? Possible answer: It is often easier to establish a personal rapport when face-to-face with someone because you can use nonverbal gestures and body language to establish the relationship. People who provide phone service must use other methods, such as tone of voice and being especially good listeners.

EnrichmentExamining a Commercial Web Site’s Customer Support Instruct students to choose a commercial Web site and investigate its customer support services. Students may want to create a slide show to accompany their presentations. Students should give an oral presentation explaining the customer support services provided by their Web site. For example, the site may have a list of frequently asked questions (FAQs). Other support services might include an explanation of return policies and how to arrange next-day deliveries.

Mini Project


ELABORATEKEEPING A CLIENT FILEExplain to students that keeping a client fi le can serve to refresh the salesperson’s memory before meeting with a customer. Ask these guiding questions to help students explore the advantages of maintaining a customer fi le.

Guiding Questions

Describe What kind of information might a clothing boutique salesperson keep on customers?

color, style, and size preferences, customer’s address, e-mail address, and phone number; some personal information might be included

Infer Why might a salesperson’s client database contain information on the client’s hobbies?

Being able to talk about a client’s interests establishes rapport. At the corporate level, salespeople may bring small gifts, and providing a gift related to a hobby shows thoughtfulness.

Career Chatroom

Focus the Career Chatroom discussion concerning Nadja Specht by asking students these guiding questions.

Guiding Questions

Explain What is Nadja Specht’s goal in her work?

to teach individuals with new how to use today’s marketing tools

Analyze What is conceptual thinking?

It keeps you from being overwhelmed by details.

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Career Exploration Send students to the Online Learning Center to fi nd more information about this career and to get a Career Exploration activity.




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Check your answers.

Academic SkillsEnglish Language Arts 4. Assume you are training a new salesperson. Prepare a written plan that covers

suggestion selling, after-sale activities, and planning for future sales. Use a product of your choice to provide examples of related merchandise to suggest and examples of how to build a relationship with customers after the sale.

Mathematics 5. You sold a $460 item via the Internet to a European customer, a Japanese

customer, and a customer in New Zealand. Use the chart below to calculate the total amount due for the product with duties and customs for each of the three customers.

Europe Japan New Zealand

Duties & Customs 20% 9% 50%

Math Concept Ways of Representing Numbers A percentage can be represented by a number that is less than one.

Starting Hints To solve this problem, convert each of the percents to a decimal by moving the decimal point two places to the left, or divide them by 100. Multiply $460 by each of the decimals to determine the duties and customs charges for each country. Add the duties and custom charges of each country to $460 to determine the total cost for each customer.

Review Key Concepts 1. Explain how suggestion selling benefits the salesperson, company, and customer.

2. Name three related items that could be used for suggestion selling after a customer’s decision to buy a tent for camping purposes.

3. Discuss what a salesperson should do as a follow-up to a sale.

NCTE 12 Use language to accomplish individual purposes.


EVALUATE YOUR SALES EFFORTSEven if your company has a formal method of

reviewing your efforts, you should conduct your own evaluation. In your evaluation, consider the following:

What were the strong points of your sales presentation?

How could you have improved your performance?

What would you do differently next time? What can you do now to solidify your relationship

with your customer if you made the sale?

Asking yourself these questions can help you improve your selling skills as well as your business skills in general. They will enable you to look forward to your next sales opportunity. That kind of attitude will help you become more effective with each sales contact. It will also help you become more successful in building a strong relationship with your customers.

Some businesses send questionnaires or call customers to check on how well they were treated by the sales and service staff. The results of these surveys are passed on to salespeople so they can improve their sales techniques.


Nadja SpechtChief Marketer

Nuvota, LLC

I teach small business owners marketing fundamentals, using plain language, through marketing workshops, coaching, and consulting. This allows those who are unfamiliar with new terms and technology to understand how they can use today’s marketing tools to attract customers. I want clients to get the marketing knowledge they need to make decisions independently so they can sell their products effectively.

It helps to have a great education, the right professional experiences, and to learn from mistakes. Beyond that, the key is to follow my instincts, believe in myself, and have endurance.

Analytical thinking: being detail-oriented and comfortable with number crunching. Conceptual thinking: not getting overwhelmed by details and unknowns, but creating a high-level conceptual framework. Emotional intelligence: being able to listen and adapt to clients’ different personalities and needs to deliver quality service.

What do you do at work?

What is your key to success?

What skills are most important to you?

HANDLING CUSTOMER COMPLAINTSA manufacturer often has customer service representatives

that handle telephone and e-mail customer complaints. Many companies also provide 800 numbers so customers can easily contact them with questions or complaints.

In business-to-business sales, customer complaints should be relayed to the sales representatives responsible for those customers. In some cases, the personal attention of the sales representative is required to ensure complete customer satisfaction and to maintain good relations with the customer.

How these complaints are handled is crucial to maintaining clientele. Customers expect immediate action when they file complaints. Positive customer-client relations require compassionate and understanding customer service personnel and sales associates who are problem solvers. The main goal is customer satisfaction.

In some cases, going the extra mile may be needed to keep a customer. For example, if a customer complains that a product is defective, you may have to replace it or offer a full refund. If the wrong product was delivered, you may have to use an overnight delivery service to get the product to the customer in time. In essence, you need to do whatever is necessary (within reason) to solve the problem and make the customer happy.

PLANNING FUTURE SALESSuccessful salespeople strive to develop relationships with

their customers and work to improve their sales techniques. Getting to know a customer personally is helpful when making future sales calls. To become an effective salesperson, self-evaluation is imperative.

KEEPING A CLIENT FILEYou can use the time immediately after the sale to plan

for your next encounter with the customer. Take notes on your conversation with the customer. Keep this in a file for future reference. In retail sales, note a customer’s preference in color, style, and size, as well as the person’s address and telephone number. In business-to-business selling, record personal information on the buyer’s marital status, children, and hobbies to assist with future sales visits. Record changes in buying patterns that may lead to future sales. Note any future service dates for appliances or cars so that you can send a reminder when the time comes. Be sure to inform your company of any changes you uncover, such as changes in personnel responsible for buying, as well as address or telephone changes, so that company files can stay up to date.

Career Chatroom

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Read more about this career and get a Career Exploration Activity.


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EVALUATE

Section 15.2

Practice AcademicsEnglish Language Arts 4. Students should prepare a written plan of how they

would train a new salesperson. Students should use a product of their choice as an example for activities such as suggestion selling. In the suggestion selling portion of the plan, students should discuss its benefits, list the five suggestion selling rules, and provide examples of cross-selling, up-selling, and promoting special sales opportunities. Students should then discuss after-sales activities, such as order processing, thanking the customer, and making certain the order is properly filled. Lastly, the student should present specific examples of how to build an on-going relationship, such as notifying the customer of any delivery delays, calling for feedback, and writing a thank you note.

Mathematics 5. European customer: $552 (460 × 1.20); Japanese

customer: $501.40 ($460 × 1.09); New Ze aland customer: $690 ($460 × 1.50)

Review Key Concepts 1. Suggestion selling benefits the salesperson in that the

customer will want to do business with the salesperson again and the salesperson will have higher sales figures. It benefits the company since the time and cost involved in suggestion selling is less than the cost of making the original sales and therefore net revenues will increase. It benefits customers because they will be more pleased with the original purchase because they will have what they need to be able to use it.

2. Accept all reasonable answers. Some related camping items include: sleeping bags, backpacks, camper tools, folding chairs, cots, folding tables, nylon rope, lantern, flashlight, tent fan, and hammock.

3. As a follow-up to a sale, salespeople should make arrangements to follow through on all promises made during the sales process. They also should check on the customer’s satisfaction with the purchase, as well as delivery of the merchandise and send a thank you note with a business card attached.


EVALUATE YOUR SALES EFFORTSEffective, objective evaluation can improve everyone’s performance, not just those of people in sales. Ask these guiding questions to focus the discussion on self-evaluation.

Guiding Questions

Explain What are four points salespeople might consider when evaluating their sales performance?

What are strong points? How can they improve? What would they do differently next time? How can they solidify their relationship with the customer?

Summarize Why should you always evaluate your own sales efforts, even if your company has a formal method of reviewing your work?

Objective self-evaluation can help keep you on track toward reaching your goals. Your managers (and others who evaluate your efforts) may not have the same goals or insights that you possess.

Draw Conclusions Why do you think an appliance store might send out questionnaires to customers asking them to evaluate its salespeople?

The managers might want to determine how well salespeople are meeting customer needs and make adjustments accordingly. They also might want to provide feedback to salespeople so they can improve their methods of selling.

ExtensionCreating a Customer Database Explain that today’s corporate salesperson keeps client information in a database, typically stored on their personal laptop. This can be one of the most valuable assets the salesperson possesses. Have students create a database that contains appropriate information on each client a company might have. If students have the ability, they can create the database using software such as Microsoft Access. If database software is not available, they may choose to use a spreadsheet program, such as Microsoft Excel. Students should create a client database either on paper or using appropriate software. Each client record should contain appropriate information, such as the client’s full name, address, telephone number, e-mail address(es), and any additional contact information. Notes on recent conversations and past buying patterns should be included. Some databases may also include the buyer’s marital status, children’s names, and information about hobbies and personal interests.

Mini Project

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Answ er Key Send students to the Online Learning Center to check their answers.


EVALUATE

Visual SummaryExpress Creativity Ask students to create a visual summary that illustrates a concept in the chapter. Encourage students to use different formats for their visual summaries, such as an illustrated poster, a Venn diagram or a photo collage. Visual summaries will vary depending on the concept depicted. Questions to ask when assessing a visual summary include:

• Is the summary clear, economical, and simple?• Are any important steps or concepts left out?• Are steps or concepts arranged in the same order as the original?• Does the summary reveal a pattern that connects the details?• Does the summary locate and highlight the most important

information?

Review Content Vocabulary and Academic Vocabulary 1. Closing the s ale should be a natural part of the sales process.

Buying signals can include both verbal and nonverbal cues. You should use a trial close to test your customer’s readiness to buy. The which close helps a customer decide between two items. Only use the standing-room-only close if there really is a limited supply. The direct close is best used when you are confi dent the customer is ready to buy. If you encourage a customer to make a purchase by saying that the item will be gift wrapped for free, you are making a service close. When you ask a customer if she would like to look at scarves to go with a new blouse, you are practicing suggestion selling. When closing a sale, you get a customer to commit to the terms of the sale. Perseverance is a trait that successful salespeople demonstrate.Customers appreciate a salesperson that is understanding and helpful. Suggestion selling helps to increase sales volume.


Visual Summary

Suggestion selling is important because it helps generate more sales revenue for a company and helps to create more satisfied customers.

Four specialized methods for closing a sale are: which close, standing-room-only close (SRO), direct close, and service close.

Closing the Sale

Chapter 15

Closing the Sale

SRO CloseWhich Close Direct Close Service Close

Cross-Selling Calling Attention to Special Sales

Up-Selling

Suggestion Selling Methods


Review and Activities

Assess for Understanding 2. Identify What are customer buying signals?

3. Justify Which specialized closing method(s) would you use when a customer does not have enough cash to make the purchase today?

4. Discuss Why is suggestion selling an important part of the sales process?

5. Explain Why is using suggestion selling before closing the sale a problem?

6. Write What would you include in a follow-up letter to a new customer?

7. Discuss How can effective customer service influence the retention of clientele?

8. Define What are the definitions of terms direct close and service close?

9. Plan How would you maintain and build clientele for a company that has a few electricians who are hired for jobs with contractors and many more electricians for maintenance and repairs for businesses and residences?

Review Content Vocabulary and Academic Vocabulary 1. Use each of these vocabulary words in a written sentence.

Content Vocabulary• closing the sale (p. 341)• buying signals (p. 341)• trial close (p. 342)• which close (p. 344)

• standing-room-only close (p. 344)

• direct close (p. 344)• service close (p. 345)• suggestion selling (p. 359)

Academic Vocabulary • commit (p. 342)• perseverance (p. 346)• appreciated (p. 349)• volume (p. 349)

Written Summary• Customer buying signals help a salesperson determine a customer’s readiness to buy.

• Close the sale as soon as the customer is ready to buy.

• Use success in answering objections or presenting a product as an opportunity to close.

• Help customers make a decision and create an ownership mentality.

• Four specialized methods for closing a sale include: the direct close, the which close, the standing-room-only close, and the service close.

• Suggestion selling helps generate sales revenue and create satisfied customers.

• Three specialized suggestion-selling methods include the following: offering related merchandise, or cross-selling; selling larger quantities, or up-selling; and calling attention to special sales opportunities.

• After-sales activities are important for maintaining and building a clientele. They include order processing, departure, order fulfillment, follow-up, customer service, keeping client files, and evaluating sales efforts.



EVALUATE

Chapter 15

Assess for Understanding 2. Customer buying signals can be verbal comments that indicate

a readiness to buy, and nonverbal actions, such as a smile, using ownership words, or holding the item for a long time.

3. Answers will vary depending on what options the business might have to offer such as special buying plans, like layaway. Businesses selling larger items frequently allow the customer to apply for a credit card; if the card is granted and customers charge the item to the card, they may be allowed to pay for it over a specific period of time, such as a year, without being charged interest.

4. Suggestion selling is important because it leads to increased sales at less cost for the business and it increases the salesperson’s success. In addition, it improves customer satisfaction because the customer will be better able to use the newly purchased product.

5. Introducing additional merchandise or other information before the sale is closed can confuse the customer and make it more difficult to make the close.

6. Items to include in a follow-up letter to a new customer include: reiterating how much you enjoyed doing business with the customer and look forward to doing more business in the future; discussing any additional support, such as helpful Web sites, that the customer might want to access; and explaining again any delivery and payment arrangements that have been made.

7. Effective customer services, such as online support, special retail services (such as bridal and baby registries), and vendor services (such as inventory management and merchandising), as well as customer training, can influence retention by helping customers use their time more efficiently and successfully meet their needs. Customers realize that the business has helped them to be success and come back because they want to continue this pattern.

8. Direct close: Directly asking the customer to buy the item, asking how they will pay for the item, asking what quantity they want, and so on. Service close: Explaining a service that might overcome obstacles that are in the way of a customer making a purchase. Straightforward return policies, warranties and guarantees, bonuses or premiums, layaway plans, and plans that allow the customer to pay for purchases over time can all be used in making a service close.

9. Answers will vary. Sample answer: I would make certain that when new electrical work is done, the business or homeowner is informed that the company also provides maintenance and repair services. I also would try to get feedback on the job directly from the customer. I would consider providing a once-a-year inspection service in which an electrician would examine the building for potential problems. This service could either be free or at a very low cost. The idea would be to keep customers in touch with the company so that if they required additional electrical work, our company would be the first they called.


EVALUATE

Communication Skills 10. Students should role play selling an item of their choice to a

fellow student, who plays the part of the customer. Students should properly close the sale and then engage in suggestion selling, possibly by offering related merchandise or telling customers about current sales. Students should ask the customer about the type of payment, take the payment, and package the product appropriately.

Financial Literacy Skills 11. $300.39 commission (35 × 49.50 = 1,732.50; 70 × $8.50

= $595; 25 × $65 = 1,625; 1732.50 + 595.25 + 1,625 = $3.952.50; $3,952.50 × .95 = $3,754.875 = $3,754.88; $3,754.88 × .08 commission rate = $300.39).

Everyday Ethics 12. Accept all reasonable answers. Some students will think the

sales policy is unfair to the salesperson who opened the account. Whether the practice is unethical is another question. If the policy was in effect before the situation occurred, then it would not be unethical. If the policy was established after the fact, then it may be considered unethical. Many executives justify these types of rules by saying the individual salesperson does not have the resources to manage such a large account. In addition, by having the account managed by an executive, the company is indicating to the customer the extent to which they value the account.

e-Marketing Skills 13. All reports should compare the two Web sites with regard to their

effectiveness in providing customers with suggestions to complete their on-line purchase. For example, REI.com encourages the customers to purchase a lifetime $20 REI membership which entitles them to an annual refund that is typically 10 percent of qualifying purchases. However, there is no other suggestion selling. REI might consider placing ideas about related products, such as snowboard bindings, snowboard boots, and related gear.



Review and Activities


NSES A Develop abilities necessary to do scientific inquiry, understandings about scientific inquiry.

NCSS VII H Production, Distribution, and Consumption Apply economic concepts and reasoning when evaluating historical and contemporary social developments and issues.

Communications Skills 10. Role Play With another student playing the role

of a customer, perform a role play in which you demonstrate how you would sell a product of your choice to an individual customer. Be sure to close the sale and conduct suggestion selling as part of the role play presentation. Finalize the sale by taking payment and packaging the product.

Financial Literacy Skills 11. What’s Your Commission? You take an order

from an organizational customer that includes the following items: 35 boots @ $49.50 each, 70 gloves @ $8.50 each, and 25 jackets @ $65 each. This order qualifies for a 5-percent discount. Determine your 8-percent commission on this sale. Try using a spreadsheet program to display your calculations.

Everyday Ethics 12. House Accounts A salesperson closes the sale on

one of the biggest accounts she has ever landed. It has potential to grow bigger. The vice president of sales congratulates her and then proceeds to explain a company policy regarding house accounts: All large accounts are reclassified as house accounts and are serviced by the vice president. This policy ensures continuity and provides large accounts with special attention. The sales rep would earn commission on the initial sale, but not on future sales for this account. Do you think this selling policy is ethical? Why or why not?

e-Marketing Skills 13. Online Suggestion Selling Visit two online

companies that sell snowboards and find products that can be used for suggestion selling. Share your opinion on how effective these companies are at suggestion selling. What improvements to the Web site would you suggest to increase sales of additional merchandise?

Build Academic SkillsSocial Studies 14. Economics In a recessionary period, what can companies do to help

salespeople close more sales? Research the most recent recession and provide examples of what two companies have done to help close sales.

Science 15. Applied Technology Research at least two different online sales companies

to identify and evaluate the strategies used to close a sale and provide online customer support. How do these practices differ between consumer and organizational customers?

Mathematics 16. Managing Time Sara is a sales associate for a telecommunications company.

She attends an average of 21 client meetings each month. Her manager has recently asked sales associates to increase the number of client meetings they have each month by 30 percent. How many meetings will Sara then have?

Math Concept Relationships Among Numbers: Percents To determine the percent of a number, for example 25 percent of 50, multiply the number (50) by the decimal equivalent of the given percent (0.25). If a value is increased by a certain percent, add the two values together.

Chapter 15


Connection Role Play

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Download the Competitive Events Workbook for more Role-Play Practice.

Assistant ManagerMen’s Clothing Store Situation You are the assistant manager of an independent, upscale men’s clothing store. Store sales have been declining. Top management believes that the decline in sales is because the sales associates are not well trained in closing the sale, suggesting related items, or developing an on-going relationship with customers.

Activity You are to prepare a training plan for the sales staff that demonstrates how to close the sale, how to suggest additional merchandise, and what can be done as a follow-up to keep customers loyal. The store’s regional manager (judge) wants to see your plan before you present it at the next staff meeting.

Evaluation You will be evaluated on how well you meet the following performance indicators:

• Close the sale.

• Demonstrate suggestion selling.

• Explain the role of customer service as a component of selling relationships.

• Explain key factors in building a clientele.

• Plan follow-up strategies for use in selling.

Standardized Test PracticeDirections Read the following questions. On a separate piece of paper, write the best possible answer for each one.

1. Which of the following sales tactics is not considered effective suggestion selling?

A. Up selling—suggesting a larger quantity to save money or time

B. Cross selling—suggesting related merchandise

C. Special sales—suggesting products on sale or new items

D. Down selling—suggesting products the customer does not need

2. It is a good idea to use words like “I” and “me” when you are trying to create an ownership mentality for your customers.

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3. A __________ close is the initial effort to close a sale.

Test-Taking TipBudget your time, making sure you have enough time to answer all the questions on a test.


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Connection Role PlayEVALUATE

Chapter 15

Build Academic SkillsSocial Studies 14. Students should research the most recent recession and write

about what two specific companies have done to help close sales. Student’s responses will vary depending on the companies chosen. Many tech companies, for example, chose not to slash prices, because doing so tends to devalue the product in the consumer’s eye. Instead, these companies chose to offer additional services, such as a longer warrantees or free technical support. Kmart® advertised it was giving a 20 percent discount off 1,500 food and household items from Kmart’s various store brands.

Science 15. Student answers will vary depending on the sites chosen, but

students should evaluate the strategies used by the two sites to close sales and provide online customer support. Closing a sale online is typically a straightforward process. The customer opens the shopping cart, which contains the purchased items. The customer must supply needed information, such as a shipping address, payment method, shipping method, and so on. The customer may be asked if they have any coupons, special instructions, and so on. After all information is supplied, the customer submits the order and receives an on-screen thank you. In addition, a thank you e-mail is typically sent. This e-mail may contain a tracking number that lets the customer determine where the order is currently located in the shipping process. Many sites provide online help in which the customer can “chat” with a customer service representative to get answers to more specific questions.

Mathematics 16. Rounded up, the number of meetings would be 28.

([21 + 21 × .30] = 27.3), rounded up to 28

Standardized Test Practice 1. D (Down selling—suggesting products the customer does not

need)

2. False

3. trial

Evaluations will be based on these performance indicators:

1. Close the sale. To close a sale, the salesperson must be able to judge the customer’s readiness to buy, and determining which closing method will be most appropriate.

2. Demonstrate suggestion selling. When demonstrating suggestion selling, the salesperson offers other items to the customer that will ultimately save time and money or make the original purchase more appreciated and useful. Be sure to make recommendations from the customer’s point of view, and be sure your suggestions are positive. When done correctly, suggestion selling improves customer satisfaction and increases sales, thereby enhancing revenues.

3. Explain the role of customer service as a component of selling relationships. Good customer service makes customers feel they made a wise buying decision. Making a sale is only the first step in maintaining and building a clientele. The order must be processed quickly and accurately; before the customer leaves, reaffirm the wisdom of the customer’s decision; and later on, follow-up to make certain the order was delivered as promised.

4. Explain key factors in building a clientele. Key factors in building a clientele include ensuring that orders are processed and filled as promised, not making promises you cannot keep, following up to check on customer satisfaction, writing thank-you notes, etc.

5. Plan follow-up strategies for use in selling. Follow-up strategies include confirming delivery, calling the customer to explain any schedule changes or delays, and contacting customers after the purchase (and delivery) to check on their satisfaction with their selection, and sending a thank-you note with your business card attached.

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Role Plays For more DECA Role Plays, send students to the Online Learning Center to download the Competitive Events Workbook.


Documents

Chapter 15 How to Close a Sale Customer Satisfaction ...mrjwags.weebly.com/.../textbook_chapter_15.pdf · Before You Read glencoe.comm Print this graphic organizer. Closing the Sale