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Psychologically selling
A lot of the sale is how the customer is thinking
Recently we conducted an informal investigation into sales techniques in stores. From our experience it appears that it is being taken for granted that people coming into our stores are going to make a purchase and other than pretty displays, little can be done to influence the purchases of these people.
We observed employees responding to questions about where various products were to which employees pointed to the general area and gave directions much like the person we all experience who lives in an area and concludes the directions with, “you can’t miss it”. We have all experienced situations where we proved that last statement to be false.
Instead, we need to walk the customer to the specific aisle and engage the customer in conversation about what particular product they are looking for, or if they have named a particular product, what has been their experience with that product.
Both conversation starters can go a long way toward making a sale.
We observed customers finding an employee in an aisle and when asked where a particular product was, such as a tequila, and the employee pointed to the bottle on a shelf. Unfortunately, too often the employee then leaves the customer thinking their job is done.
Instead, if the product were taken from the shelf and placed in the customer’s hands for their inspection, research has shown that sales increase by approximately 15% because the customer is holding the desired product. Psychologically, the customer is experiencing a feeling of ownership with the product which produces the potential increase in sales.
It is at this point that we can further increase overall sales by asking the customer, “Is one enough or would two be better?”. As compared to a, “How many do you want?” type of question, our suggested question can be received more as a helpful suggestion.
This is an excellent time to mention two additional helpful sales tools. The first addresses the hand baskets that many stores stack at the entrance to the business. While this may be “an” attractive place for the baskets, it should not be the only place they are located. Instead there should be multiple locations so that customers and employees can easily get one.
Again we know by research that when a customer has their hands full of product they mentally shut down from shopping. This is a reason why all employees should be on the lookout for customers that have multiple items in their hands. When they see this customer, they should grab a basket and offer to help the customer place their selections in the basket. With the basket now in one hand, the customer can return to shopping.
The second aspect is that of additional items near the product; mixers and various accessories. This as compared to having to walk the customer to another area of the store.
While the customer is thinking of one item, having the "add on" or "impulse" item nearby helps to make that subliminal suggestion to the customer of increasing their purchase.
When working with a customer it is important for you to be thinking, and it is important to be aware of how the customer is thinking.
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This article is copyrighted by Tom Shay and Profits Plus Solutions, who can be reached at: PO Box 128, Dardanelle, AR. 72834. Phone 727-823-7205. It may be printed for an individual to read, but not duplicated or distributed without expressed written consent of the copyright owner.
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With over 25 years of frontline experience Tom Shay is America's leading Small Business
Management
Expert. He's a "Must Have" for your next event.
Perhaps you have investments outside of your small business; gold, stocks, bonds or money market funds. With each you likely know what the rate of return is.
What about your busines? Do you know what the rate of return is for your business? You should. After all, you do not want to be the person who has just bought themselves a job.
We see a lot of social media with what we think is a "sympathy plea" do do business with local small businesses.
It is not going to work. People select where they do business based on positive reasons. We discuss what we are seeing.
Article of the Month
A timely article for the holiday season. With any business that has inventory, are you looking at sales per square foot? Are you looking to see which is the most valuable space in your business? You can increase sales by knowing which items to place where.
Book of the Month
Fix This Next by Mike Michalowicz. We love this description of the book; The biggest problem entrepreneurs have is that they do not know what their biggest problem is.
If you find yourself trapped between stagnating sales, staff turnover, and unhappy customers, what do you fix first? Every issue seems urgent - but there is no way to address all of them at once. The results? A business that continues to go in endless circles putting out urgent fires and prioritizing the wrong things.