Sell Products and Services
Information
Page Number
2
2
Course Outline
Critical Aspects
3
3
4
5
6
Approach the Customer
Why Customers Buy
Techniques to Approaching the Customer
Which Approach to Use
Approach Customers Summary
Apply Product Knowledge
Gaining product knowledge
Gathering Information
Questioning
Listening
Non-Verbal Communication
Gathering Information Summary
6
7
7
7
7
7
19
Effective Responses Using Product Knowledge
Respond to Customer Enquiries about Products Summary
Sell Benefits
Features and Benefits
Rational and Emotional Benefits
Matching Needs to Products
Converting Features and Benefits
Converting Features and Benefits Summary
Overcome Objectives
Objections
Price Objections
Merchandise Objections
Time Objections
Responding to Objections
Overcome Objections Summary
10
10
11
11
12
13
14
14
15
16
17
18
19
19
19
19
20
20
23
22
23
Close the Sale
Buying Signals
Customer Questions
Customer Actions
Customer Reactions
Closing the Sale
24
24
25
25
Maximaise Sales Opportunities
Selling up to meet the customer’s needs
Monitoring your own sales performance
Closing the Sale Summary
Key Terms and Concepts
26
1
Sell Products and Services
This unit involves the use of sales techniques and encompasses the key selling skills from approaching a
customer to closing the sale. It requires a basic level of product knowledge.
Critical Aspects of Assessment
Evidence of the following knowledge and skills is considered essential to demonstrate competency in this
unit:






Applying product knowledge and using an appropriate sales approach to sell the benefits of
products, overcome objections and close sales
Using questioning, listening and observation skills to accurately determine customer requirements
Consistently applying store policies and procedures, in regard to selling products and services
Maximising sales opportunities according to store policies and procedures
Consistently applying industry codes of practice, relevant legislation and statutory requirements in
regard to selling products and services
Evaluating personal sales performance to maximise future sales
2
Approach the customer
The way that you first approach a customer can have a big impact on how successful the interaction will
be. A successful interaction with your customer will most likely result in a sale, which is the goal of any
retail business.
Critera covered in this activity:
Timing of customer approach determined and applied.
Effective sales approach identified and applied.
Positive impression conveyed to arouse customer interest.
Convey a positive impression to arouse customer interest.
Knowledge of customer buying behaviour demonstrated.
Customer focused on specific merchandise.
Interact with a range of customers.
Purpose:
A professional approach provides you with the opportunity to create a positive first impression, and helps
the customer to feel confident about doing business with you.
Why Customers Buy
Think of the last time that you made a purchase in a retail store. Why did you buy that particular item?
People buy products for two main reasons…
1) They need a product
2) They want a product
Mrs James
Mr Hamilton has just bought
just bought
a new tie.
I got drenched on
I couldn’t resist
an
the way to the
such a good
umberella
shops I really
bargain. Look at
my tie!
needed this
umbrella
Mrs Lockett really needed that umbrella, since she got caught in the rain this morning. Mr Hamilton didn't
really need a new tie, but he saw it and wanted it - so he bought it
Knowing whether your customers need or want your product will influence the way that you sell it to
them.
Customers will buy from you for many different reasons. The main ones are because they need or want
the product, but others include not being able to resist a bargain or buying something to cheer themselves
up.
As a professional sales person, your job involves being able to identify the difference between a need and
a want, and using this information as part of your sales technique.
3
Techniques for approaching a customer
When you enter a retail store, how do you like to be greeted?
It is often a matter of personal choice as to how we like to be greeted, so it is important that the way
you greet your customers communicates a positive message.
The greeting should also be appropriate to the retail store and the type of customer that shops there.
You are aiming for a positive first impression - so the greeting really counts.
Acknowledging the customer as they enter the store is essential - it lets them know that you are aware
of them, and that you are ready to help them.
An "over-the-top" greeting can make a customer feel threatened. Some sales people seem ready to
"devour" the customer as soon as they've walked in the door!
The difficulty with getting the greeting just right is that every customer you deal with is an individual,
with personal tastes and expectations.
As a customer, you have probably been the victim of an over-the-top greeting at some time. This may
have made you feel anxious to get away from the store, rather than feeling welcome to stay inside and
browse.
As a general rule, a warm and friendly greeting is always most appropriate. Many customers are quite
happy to browse around your store, and prefer to be left alone to do this.
Many retail stores understand the importance of greeting customers effectively, and have put into
place a policy for the way that staff are to greet their customers.
In other stores, there is no "policy" as such, but there is an informal agreement between staff as to how
customers are greeted.
Some stores have perhaps not realised how important it is to greet customers effectively, and staff say
whatever they feel like at the time. Whilst this approach can work in a more casual type of retail store,
it is not the most professional or effective way to create a welcoming environment.
The key to a successful greeting is to make the customer feel welcome, and begin building the rapport
that leads to the building of successful customer relationships.
4
There are three types of approach that can be used in a sales situation. These are known as:
1) The Greeting approach.
2) The Merchandise approach.
3) The Service approach.
The Greeting Approach
The greeting approach works
well when your customer
appears to be just browsing, and
hasn't shown interest in a
particular product. This
approach simply involves
greeting the customer in a
friendly and professional way by
using open questions - examples
include "Hello, how are you
today" or "Good morning".
But… it's not what you say, it's
how you say it. Always use a
smile, a friendly expression and a
pleasant tone of voice so the
customer knows you are happy
to help them.
The greeting approach should
get a positive response from the
customer and get a conversation
started. This conversation will
lead to discussion on the
customer's needs and/or wants and eventually to a sale.
The merchandise approach
The service approach.
The merchandise approach
The service approach can be
should only be used when a
used with customers who know
customer has shown interest in a exactly what they want, or
particular product by looking at
appear to be in a hurry. A typical
it, touching it or reading
service approach is "Hello, can I
information on the packaging.
help you?". This is different to
The merchandise approach
the greeting approach, because
immediately focuses the
you are making an immediate
customer's attention on the
offer of assistance rather than
product, and provides you with
just saying hello, although a
an opportunity to start selling
greeting needs to be included in
the features and benefits of the
the approach.
product, since you know that the The danger with using the
customer is already interested.
service approach is that most
The most effective way of using
customers will respond
the merchandising approach
immediately with "No thanks",
effectively is being able to judge or "I'm just browsing", which can
exactly what feature of the
make it hard for you to continue
product the customer is
with the conversation. Avoid
interested in - the colour, the
service approaches that include
price, the quality etc.
a closed question - "Can I help
An example of the
you?" will usually get a "no"
merchandising approach would
response, where "How can I help
be as follows; a customer is
you?" means that the customer
looking at a red velvet jacket,
has to answer you with more
and touching the fabric… you
than just one word, and you can
approach them and say "Good
start a conversation more easily
morning… isn't that velvet lovely
and soft." The customer
responds in a positive way, and
the sale begins.
Remember, a merchandising
approach needs to include a
greeting such as "hello"
Some customers really are just looking, and would like to be left alone, or prefer to browse without being
pressured by a sales assistant. Give them time to look around - you can always approach them again if
they are still there after a few minutes.
Which Approach to Use?
Using the right approach and greeting technique will help you to create a positive first impression, which
will usually lead to a successful interaction with your customer.
Customers will have different ideas about how they like to be approached by you when they're shopping
in your store. Being able to adapt your approach to suit individual customers will improve your sales skills.
5
Approach Customers Summary
A professional approach is the first step towards providing excellent service to your customers, and
meeting their needs with your products and services. Remember that each customer is different, and be
prepared to pay attention to the way that they respond to your approach. Look out for non-verbal
communication such as their facial expression and body language.
Apply Product Knowledge
You will need to know about the products you sell in order to tell customers about them.
Customers need information to help them make a buying decision. The essence of selling is to
communicate this information.
Being an effective salesperson is all about your ability to communicate with your customer. More
specifically, it involves being able to pass on details about your products and services, and provide your
customers with the information they need to make a buying decision.
To sell effectively you must be able to respond to your customer's enquiries about a particular product or service.
Sales staff must gain information about the products they are selling. You should be able to answer
questions that a customer may ask, such as;
 What is the product used for?
 How does it work?
 What are the main ingredients /components?
 How much does it cost?
 What are its advantages over the products of a competitor?
If you cannot answer questions like this your ability to sell the product is severely limited.
When customers ask these questions, they expect you to be able to answer them. A response of "I don't
know" tells customers that you are not able to help them make a buying decision (or worse still - that you
don't care), and they will probably go to another store where they can find someone who knows about
the product.
The more strategies you use to get to know your products and services, the better you will be able to sell
them to your customers. In most cases, the best way to learn about your product is to actually use it
yourself - get it out of the box and see what it's all about. Your store may not permit you to take products
home, so make sure you read all the instructions and product information you can find.
Gaining product knowledge
There are 3 key components to developing product knowledge
1. the information that you need to know about the products you are selling
2. knowing where to get the information
3. communicating the information to the customer
The information that you need to know is determined by what you are selling and by your customers. For
example, a car salesperson would need to know a lot more about the product than the checkout operator
in a supermarket.
The most valuable and easiest source of information is from the product itself. By looking, touching,
tasting, smelling, using and reading the label/box you can learn most of the information needed to sell a
product. Other staff members and customers can also give you a wealth of information about a product.
Suppliers can also be a very valuable source of information.
Do not forget about the information that can be gained from trade shows, media advertisements, family
and friends, government departments (eg ACCC) and magazines like Choice.
6
Gathering Information
Gathering information requires the effective use of questions in a non-threatening and conversational way.
Determining a customer’s needs is vital to successful selling
The most obvious way to gather information from your customers is to ask them questions. Customers will be more
willing to answer your questions if you have already approached and greeted them in a professional and friendly
way, because they have already started to trust and like you.
Some salespeople use a questioning technique that is similar to an interrogation, making the customer feel
intimidated or even threatened. These salespeople are usually unsuccessful, so this is not an effective questioning
technique.
Questioning
There are three main types of questions that are used to determine a customer’s needs: open-ended, closed and
reflective.
1. Open-ended questions– should be used when first serving the customer to gather the required information.
The amount of information gained will vary with the customer and the environment you have created as well
as the questions asked. This type of question generally starts with one of the key words: which, what, where,
when, who, why or how.
Examples
“How do you think you will use the product?”
“Where are you planning wearing this dress?”
“When do you need the present by?”
“Why do you require that particular brand?”
“What do you think of this season’s colour range?”
Open questions begin with words like:
How
Where
When
Why
What
Who, Which
Because open questions will encourage a customer to talk, avoid asking too many if your customer is very chatty
and you are having trouble keeping them focused.
Some customers can feel overwhelmed by open questions - usually because they don't know how to answer them.
Be aware of your customer's body language, and help them along if they need more information from you before
they can answer your open questions.
2. Closed questions– are used to get specific information and usually receive yes/no or single word
answer. This information should supplement the information gained from open-ended questions.
Examples
“Do you need a particular colour?”
“Can I help you with that?”
“Are you looking to purchase today?”
“Is there anything I can assist you with?”
Closed questions begin with words like:
Do
Can
Are
Is
Because closed questions will not encourage a customer to talk, avoid asking a series of closed questions, one after
the other. This tends to make the customer feel uncomfortable, as if they are being interrogated.
Customer service is all about two-way communications. Too many closed questions will mean that you are doing all
the talking. This can make the customer feel that they are not participating in the conversation.
Watch your customer's body language. If they start to look uncomfortable or begin to move away from you, your
closed questions may be too aggressive.
You could lose the opportunity to establish rapport with your customer by having an easy-going
conversation if you ask too many closed questions in a discussion.
7
3. Reflective questions– are used to show you have been listening, and to clarify what you have
heard. They are formulated by turning a statement the customer has made into a question.
Reflective questions can work very well, because they show that you have been listening, and help you to
focus on determining the exact needs of your customer
Reflective questions begin with words like:
Examples
“You mentioned a problem with your wrist. Would a light
You
weight model be better for you?”
“You gave the impression earlier that this occasion will be
very special. Would you like to start with our more
exclusive products?”
“You mentioned that you will be travelling a lot. Would you
like to see our heavy duty range of suitcase?”
Listening
Listening plays a vital role in any interaction with a customer. It enables you to gather information and ask
appropriate questions. Effective listening requires concentration on the emphasis placed on certain words,
tuning in to what the customer is saying and how they are saying it. There are 5 steps to effective
listening.
1. Stop what you are doing and give your full attention
2. Let the customer do most of the talking
3. Accept what the customer is saying
4. Put yourself in the customer’s shoes.
5. Understand the depth of feeling in emotive words.
Non-Verbal Communication
Verbal communication represents only about 30% of the way a message is communicated.
This means that the actual words we say, our tone of voice and general sound (including volume of speech) only
makes up a small portion of the message that we are sending.
So that leaves a balance of 70%, and this is made up of the various non-verbal communication skills that are used
every time a message is communicated.
There are many types of non-verbal communication including:
 Body language
 Personal space
 Facial expressions
 Gestures
Gestures
Gestures can help both you and your customer to relax and be more open with each other.
Some customers find it difficult to take in technical information - for example, you may be selling computer
equipment.
Gestures can help your customer to visualise what you're trying to explain.
If the customer's body language is expressing discomfort or disagreement with what you are saying, stop talking!
Give customers an opportunity to say what's on their mind, and encourage them to communicate with you.
Shuffling feet, looking at the floor and avoiding eye contact are all signs that the customer is losing interest, or has
stopped listening.
It is important to show the customer you are interested while serving them. Non-verbal signals or body language is
important. This can include nodding your head, maintaining eye contact, smiling.
8
Touch and handle the product yourself - this indicates that you like the product too, and encourages the
customer to also touch and handle it.
Stand close to your customers (not too close - remember personal body space!) to make them feel that you
are paying attention to them.
Smile and nod your head as the customer is speaking - this indicates that you are listening.
Make eye contact when you are talking about the features of the product - this indicates that you are being
honest.
Use your hands to point at special features of the product.
Reflect the customer's body language in your own.
Watch your customers - if they are looking concerned, ask an open question to try and find out what is
bothering them.
If your customers are moving away from you, it is possible that you are starting to interrogate them and
they want to get away from you. Slow down and use more open questions.
Information Gathering Strategies - Summary
Some customers think that sales assistants are pushy, and only interested in selling them as much as
possible so that they get a bonus or a pay rise.
Customers who feel this way have probably been a victim of a sales assistant who did not use effective
information gathering strategies to determine what they actually needed before launching into their sales
routine.
Now that you have a range of effective information gathering strategies, you should be able to determine
your customer's needs in an efficient and professional manner. This will leave your customers feeling
happy with your service, and satisfied with the product they purchased.
Each and every customer is different, and will have his or her own individual needs and expectations.
Watch and listen carefully at all times.
If your store has a policy on the way you gather information from your customers, you should read it
carefully and ensure that you can incorporate these new information gathering strategies.
9
Responding to Customer Enquiries
Having product knowledge will enable you to respond to your customer's enquiries in a positive and professional
manner
Responding to the customer's enquiry in a positive way will start the communication that should lead to a
successful sale. You will need to be listening carefully, and use a variety of closed and open questions to
further determine the customer's needs. Once their needs are established, you will use your product
knowledge to identify the most appropriate product to offer them.
A good response will:
 Acknowledge what the customer has said.
 Demonstrate your willingness to help the customer.
 Include a question or phrase that will encourage the customer to give you more information that
will help you identify their needs.
 Demonstrate that you have knowledge about the product they're interested in.
 Be warm and friendly, so the customer feels comfortable talking to you.
Effective responses using product knowledge
When customers come in to your store to buy a product, they expect that you will be able to supply
information and advice on the products that you sell.
A technique used by many sales people is to anticipate the questions that customers are going to ask, and
have responses in mind. Being prepared for typical questions gives your customers the impression that you
are not only professional, but also very knowledgeable and confident in your products. Like most skills, the
more you practise, the better you get.
Respond to customer enquiries about products - summary
An effective salesperson should always be able to respond to a customer's enquiry.
If you are ever unsure what your customers are trying to say when they make an enquiry, you should use a
clarifying question, such as "So you're looking for something under $50.00?", or "Do you mean the black
one?"
Remember that each customer is different, and be prepared to pay attention to the way that they respond
to you as you start to interact. You should also check if your store has a specific policy about the way you
respond to a customer's enquiry.
10
Sell Benefits
Every product or service that your store offers will have both features and benefits. Customers buy a
product or service because of what it will do for them - that is, the benefits they will receive.
You will need to understand the difference between a feature and a benefit, and know how to incorporate
benefits into the sales discussion you have with your customers.
There is an old saying that is well known in the sales world:
Features tell... Benefits sell.
Being able to convert a product's features into benefits for the customer will make you a very effective
salesperson. Although your customers will be attracted to a product because of its features, ultimately it is
the benefits of the product that will make them decide to buy it
Features and benefits - what's the difference?
Every product you sell has its own set of features. Features of a product can be defined as:
The characteristics of a product - things you can see, smell, hear, touch or taste.
Typically, features include things like the warranty, the price or what the product actually does.
Usually, features are easy to identify because they are written on the packaging, or the product itself.
For example, look at
this fantastic new
car.
If you were selling this car, naturally you would want your customers to know about all the great features it
has… but they will be more interested in knowing what these features will actually do for them - that is,
what are the benefits?
You are considering buying this new car. Think about the first feature - the leather seats. Ok… the car has
leather seats. So what?
As a customer, when you ask the question "so what?" you really mean "what will that do for me?" In other
words, what you mean is "what benefit does that give me?”



Comfortable to sit in.
Hard-wearing.
Great looking
Benefits of leather seats in a new car
 Long lasting.
 Prestigious.
If you were selling this car, how would you know which of the above benefits are going to appeal to your
customer? To work this out, you need to know the difference between rational benefits, and emotional
benefits. You also need to be aware of the priority ranking customers use - what is most important to
them?
11
Rational and Emotional Benefits
There is quite a difference between rational benefits and emotional benefits.
It might help you to think of them this way:
Rational benefits come from the head
Emotional benefits come from the heart.
For example, with the leather seats in your new sports car, the rational benefit would be that they are hard
wearing and long lasting - very sensible. The emotional benefit would be that they are soft and
comfortable - very nice!
Generally, people buy for emotional rather than rational reasons. Perhaps you have recently purchased an
item that you knew you didn't really need, but you just couldn't resist it… an item of clothing that was a
real bargain, but doesn't really go with anything else in your wardrobe. Then you get home and wonder
why you bought it!
Rational benefits are quite straightforward - they are usually specific and will appeal to the majority of
customers. Emotional benefits, however, are not that easy - because every customer is different. For
example, some customers may want the leather seats because they are looking for comfort, while others
may be looking for durability. In this case, there would be no point in promoting the comfort benefit to
customers that are only interested in durability.
Hopefully your excellent information gathering strategies will have identified the emotional needs of your
customer, so that you can promote the benefits that best match those needs.
One way of determining your customer's emotional and rational needs is to simply ask! The best way to
ask is with an open question - for example, "What are you looking for in your new car?" Customers will
usually be happy to tell you.
Finally, you need to remember that emotional needs can be sensitive. Unless customers feel that they can
trust you, they may not give you the full story about their needs. For example, a man with thinning hair
may be buying a hat because he wants to cover up his baldness - maybe he's embarrassed about it. He
doesn't really have a rational need for the hat - his needs are purely emotional - he may feel that wearing a
hat will make him more attractive. Obviously, this is quite personal and he may not wish to share these
feelings with you. Keep an eye on your customer's body language and facial expressions - you will soon
know if they are becoming uncomfortable.
Matching needs to products
During the sales discussion you are building up a mental picture of the product that is going to best suit
your customer's needs. Your product knowledge will help you do this.
Sometimes, you arrive at the most suitable product by a process of elimination. For example, your
customer is looking for curtains, and has told you that she doesn't like dark colours or floral prints. So you
know that she isn't going to be interested in a certain range of curtains that you offer, simply because they
won't match her needs. Therefore you can eliminate those products, and focus on others.
There are six common needs that customers may have, and these must be satisfied before they will make a
buying decision. Some customers may have only one or two of these needs - others may have more.
If you can identify the strongest needs for your customer, you will be in a very strong selling position.
12
Need
Safety
Description
This might be a high priority need when purchasing certain items - for example,
electrical equipment or children's toys.
The rational side of the safety need is protection from injury.
The emotional side of the safety need is peace of mind and not having to worry about
personal injury or damage to property.
Customers with this need will want you to explain all of the safety features of the product.
Performance This need relates to how the product actually works.
Performance is usually more of a rational need, although sometimes it can be emotional.
With the example of the car used earlier, performance would relate to the emotional need
of liking to drive fast.
Customers with this need will want you to explain how the product works, and what it can
do.
Appearance
Appearance can be one of the strongest buying needs, and also one of the most
emotional.
The most common types of merchandise strongly affected by the appearance needs
include clothing, cosmetics and luxury items such as furnishings and homewares.
Customers with the appearance need will want you to reassure them that the product is
attractive, and will make them (or their home) attractive too.
Comfort
This can be a complex need, as it relates to areas such as physical and mental
comfort, and/or ease and convenience.
The comfort need may also be related to how easy a product is to use, which is more
mental comfort than physical - customers don't like to be stressed every time they use the
product.
Economy
The economy need is all about value for money - not necessarily just about price.
Some "expensive" products are still popular, because they are of a high quality or have
other features and benefits that are very appealing to the customer.
The economy need is very closely related to other needs - particularly performance and
durability.
When dealing with a customer who has the economy need, you should focus on the value
for money that the product offers.
Durability
This simply means "how long is this product going to last".
When a customer has a strong durability need, they are looking for things like overall
quality of the product, what materials have been used to make it, and even the brand or
where it was made.
Product warranties and guarantees are designed to meet customer's durability needs.
The durability need is closely related to the economy need - usually customers will pay a
little more for a product if they believe it will last longer.
13
Converting features to benefits
Once you have established your customer's needs, you use the features of a product to sell the benefits for
the customer. The benefits you sell must match the customer's need.
For example, if your customers need safety from the product they are looking at, there is no point focusing
your sales discussion on the comfort aspect of the product. Many salespeople "lose" their customer this
way, because they have not sold the benefits that match the need.
Selling benefits is really quite easy. Here is a simple technique you can follow:
1. Make sure that you have correctly identified the customer's needs - listen carefully and ask
questions.
2. Use your product knowledge to highlight the features of the product.
3. Talk about the product's benefits in a way that makes the customer see them as advantages.
4. Keep listening and asking questions to make sure you're on the right track.
You could also try the simple technique of thinking to yourself; "SO WHAT?" Remember, this is what your
customers will be thinking to themselves if you offer only features instead of benefits.
Converting features to benefits - summary
Every customer who comes in to your store has certain needs. Every product that you have in your store
has certain features.
Customers buy a product not because of the features it has, but because of the benefits it will give them.
If you remember to always talk to your customers about benefits, not features, you will find that your
sales discussions are a lot more successful.
Always keep in mind the "SO WHAT" question. Ask yourself this question every time you look at a
product's features.
In some retail stores, sales assistants have special training in specific products. These people may be
known as "Product Experts" or "Product Specialists". If you are dealing with complex equipment that
requires specialist knowledge, don't be afraid to refer your customers to these experts in your store - doing
this will make sure that your customer gets the service they need.
14
Overcome Objections
Customers start to process information in their own minds at different stages of the sales discussion. They may
question the product's features and benefits, expecting you to be able to respond to these questions.
Until you can respond effectively to customers' objections, the sale will not progress. When customers feel
that their objections are not handled professionally, they may change their mind about buying in your
store.
Most customers simply need you to reinforce the benefits of the product so that they can be sure it will
meet their needs
Some salespeople get frightened when their customer raises objections during a sales discussion.
Of course, it is natural for you to want a sales discussion to remain positive, and for all your customers to
be happy with the sales process you follow.
No matter how skilled a salesperson you are, you will not be able to stop customers from raising
objections. What you can do, however, is be aware of the way that you feel about customer objections.
When customers take the time to raise an objection, it shows you that:




They have been listening to you.
They are interested in the product.
They would like to know more.
They are unsure about something.
These are all positive signs that the customer is still interested, and will probably still buy your product. You
simply need to do a little more questioning and listening to make sure you are offering the best product for
their needs.
However, some more complex reasons for objections include:




They have further needs you haven't yet discovered.
You haven't given them enough benefits to satisfy their needs.
The product you are recommending is not the best one for their needs.
They have changed their mind about buying the product
Keep your attitude positive, and accept objections willingly. Try to think of them as an opportunity to get
to know your customers' needs better. Of course, the better you know your customers' needs, the better
service you will be able to give them.
Have you ever thought that some customers may feel a little frightened to raise objections? When
customers feel this way, it is usually because the salesperson has intimidated them and made them feel
uncomfortable. They will simply walk away from the sale, rather than deal with the salesperson any longer.
If your customers raise objections, it is a sure sign that you have made them feel comfortable enough to
want to continue dealing with you.
15
Objections
There are three main categories into which a
customer's objection can fall. These are:
Price Objections
The price objection is quite straightforward - it describes the type of objection that relates specifically to
the price of the product. There can be different reasons why the customer is objecting to the product's
price, but the most common are:



Because they don't feel that the product represents value for money (related to the "economy"
need).
Customers believe that they can get the same (or similar) product cheaper elsewhere.
Because customers like to "haggle" for a price or a special deal.
How would you respond to an objection on price? Firstly, you need to identify whether the customer is concerned
about value for money, or if they feel that your store is over-charging for the product. You can probably figure this
out easily by what the customer said.
Look at the customers below, and read what they are saying. You will be able to clearly see the 2 different
types of price objection.
The first customer is objecting to the price of the surfboards because he has seen them advertised cheaper
in a different surf store.
The second customer loves the towels, but is concerned that they are a little expensive. She wants to be
sure that the towels will give her value for money.
Although they are both price objections, each one is different.
16
Merchandise Objections
Objections that relate specifically to the product itself are known as merchandise objections. They usually
relate to the product's features, or its suitability for the customer's needs.
There can be different reasons why the customer is objecting to the merchandise, but the most common
are:


Because the product's features (and sometimes benefits) don't meet the customer's specific needs,
or they have concerns about the product. Perhaps the quality or durability doesn't meet their
needs.
They don't like something about the product - for example, its colour or size.
How would you respond to this type of objection? Firstly, you need to identify whether the customer is
concerned about the product's features or benefits, or if they are unsure that the product suits their
needs. You can probably work this out by what the customer has said.
Look at the customers below, and read what they are saying. You will able to clearly see the 2 different
types of merchandise objections.
The first customer wants a microwave oven, but is concerned that this particular product does not have
enough room inside. His objection relates directly to the product's size feature.
The second customer is objecting to the thin material used in the t-shirts, so she has a concern about the
quality and/or durability of the product.
Although they are both merchandise objections, each one is different
17
Time Objections
The third type of objection is time. This can be one of the most difficult to deal with, because customers
often use it as a tactic to "get rid of" a salesperson. A common time objection is: "Oh, I'll have to think
about it".
When presented with a time objection, you need to find out whether it is genuine, or whether the
customer is not interested any more and just wants to get out of the sales discussion.
There can be different reasons why the customer makes a time objection, but the most common are:
 When the customer has to check with someone else (eg, a spouse or housemate) before making
the purchase.
 If the customer genuinely cannot afford the product - it's out of their price range.
 Because the customer wants time to think about it, or they're having difficulty making a decision
"on the spot".
 Because they're not sure if the product has all the features and/or benefits they are looking for.
 When the customer wants to shop around to see if they can get the product cheaper elsewhere.
How would you respond to a time objection? Firstly, you need to identify whether the customer is genuine
or just trying to get out of the sale by using a delay tactic such as "I'll think about it". With a genuine time
objection, you can discuss options such as lay-by, or holding the product for the customer.
Look at the customers below, and read what they are saying. You will see 3 different examples of time
objections.
The first customer really liked
the skateboard - he just doesn't
have the money to buy it right
now. His time objection seems
genuine.
The second customer knows
that she needs a coat, but she
seems reluctant to buy one
right now. Her time objection is
probably more of a delay tactic
than a genuine concern about
the product.
Although they are all time objections, each one is different.
18
The third customer could be
just using a delay tactic, but her
time objection is probably
genuine - she wants to make
sure that her husband will like
the watch before she buys it.
Responding to Objections
Once you have identified the type of objection the customer has raised, you need to come up with an
effective response.
To be effective, your response must:






Directly address the customer's objection.
Be relevant to the customer's objection.
Offer appropriate solutions that will address the customer's objection.
Have a positive manner and reassure the customer.
Take into account the customer's feelings.
Be appropriate for the customer's needs
Overcome Objections - Summary
It is only natural that customers are going to raise objections. This is a normal part of the sales process. Knowing how
to respond effectively to these objections will help you to be a more professional salesperson.
When responding to customers' objections, you use problem solving techniques such as listening,
questioning, and reflecting on what has already been said.
Having good product knowledge and an understanding of the services offered at your store are both very
important.
Now that you have completed these exercises, you should feel confident that when you are assessed in the
workplace, you would be able to demonstrate the following competencies:




Customer objections identified and accepted.
Objections categorised into price, time and merchandise characteristics.
Solutions offered according to store policy.
Problem solving applied to overcome customer objections.
Close the Sale
Once you have covered all the features and benefits of a product and responded effectively to any
objections, the sale can be closed.
This is the stage of the sales process that involves recognising customers' buying signals, and applying
different techniques to finalise the sale.
Recognising buying signals and using effective closing techniques will ensure that your customers leave the
store feeling satisfied with their purchase, and happy with the service that they received.
Being able to maximise sales opportunities by promoting additional products and services will boost your
sales performance, and enhance the quality of service that you are providing to your customers.
19
Buying signals
Wouldn't it be great if you could tell straight away when your customers are ready to buy?
Well… you can! Understanding your customers' buying signals will help you recognise when it is time to
close the sale.
Buying signals are simply something that the customer says or does that indicates he or she is ready to
buy. These signals may be verbal or non-verbal.
Buying signals fall into 3 main groups:
Once you have received and recognised the buying signal, you will then be able to close the sale.
The closing technique you apply will depend on the type of buying signal the customer is sending.
Customer Questions
Quite often, customers will ask a question that indicates they have made up their minds to buy the product you've
been discussing.
This customer has decided that she wants to purchase the item, and now she's
working out how to get it home. She may not have told you that she wants to
buy the item, but she has clearly made up her mind that she does.
When customers ask if you have lay-by available, they have decided that
they want the item. Now all they need to do is work out how they're going to
pay for it.
This is another customer who has already decided that she wants the product.
All she needs to do now is find out whether you will accept her credit card so
that she can pay for it.
20
As you can see by these questions, the customers have already decided to buy the product. They're now
working out how they're going to pay for it, or what delivery arrangements need to be made.
In situations like these, the customers are sending a very clear buying signal. The salesperson simply needs
to answer the question, then close the sale.
You should be aware that not all of your customers' questions are buying signals. If they're still asking
about the product's features and benefits, they haven't yet decided to buy. In this situation, you need to
make sure that you have provided solutions to all their needs before they will be ready to make a buying
decision.
Always ensure that you are listening carefully when your customers are talking. If you misinterpret a
question that wasn't actually a buying signal, you could scare the customer away by trying to close the sale
too early.
If you're unsure whether your customer asked a buying signal question, continue the sales discussion until
you are confident that it's time to close the sale
Customer Actions
As you already know, customers can say just as much through their actions as they can verbally.
Non-verbal communication such as nodding the head, smiling or walking towards the cash register are all
strong indications that the customer has decided to purchase the item.
Quite often, something interesting happens when a customer has decided to buy a particular product…
they become possessive! You will notice that they won't let go of the product - or they seem reluctant to
put it back on the shelf. This is a clear signal that in the customer's mind, the product already belongs to
them. This happens a lot in fashion stores - customers walk out wearing the clothes they just purchased.
21
Customer Reactions
As part of your sales service, you watch your customer's body language, gestures and facial expressions to
help you communicate more effectively.
Customers can react in both verbal and non-verbal ways, and you need to be able to recognise both kinds
of buying signals.
Here are some examples of strong verbal customer reactions
It looks like this lady is really happy with the red coat. It seems that her reaction to
the coat is a strong buying signal.
This man seems to have decided that he wants this blue chair. His verbal reaction
indicates that he's already imagining it inside his house - a clear buying signal.
You can see that this lady is impressed with not only the green shoes, but also with
the price. Her reaction sends out a strong buying signal.
Non-verbal forms of customer reactions can include smiling, and touching the merchandise.
As with other types of buying signals, you do need to be sure that you have not misinterpreted the
customer's reaction. Some customers get very excited about products, but have no intention of buying
them. If the customer is still asking questions about features and benefits, they haven't yet decided to buy.
22
Closing the Sale
When your customer sends buying signals, you will know that it is time to close the sale. Once you are
confident that the buying signal is clear, you can begin the closing process.
Some salespeople are scared to close a sale - they wait for the customers to actually say "I'll take it".
Customers will expect you to ask for the sale - it's a part of professional customer service.
Effectively closing the sale doesn't mean putting pressure on the customer, or hassling them to buy
something. If you have sold the features and benefits, met the customers' needs, overcome any objections
and received buying signals, there is no reason why closing the sale will make customers uncomfortable.
There are many different ways of closing a sale, but the techniques most commonly used are shown.
Direct
Active
Steps
Choice
Miss out
Assume
This technique involves asking a direct closed question; “Would you like to take that
one?”
By involving the customer this technique works very subtly; Walking the customer
towards the cash register.
It is a technique of closing the sale one step at a time; “Do you like that colour”,
“Would you like to put it on lay-by.”
A very common way of using choice is; “Will that be cash or credit”.
When the product is on sale or low on stock; “The sale ends tomorrow then it will
be full price,” or “We only have one left and are not ordering any more.”
When you assume the customer is going to buy, “We can deliver it for you today.”
One more closing technique that you might like to try is known as the "puppy dog" close.
Have you ever seen a cute little puppy in a pet shop, and been tempted to take it home? Or perhaps you
have purchased an item that you weren't sure about, but once you got it home you decided to keep it?
This is how the puppy dog close works. The salesperson tells the customer they can buy the product, and
bring it back if they're not happy with it. Most customers will end up keeping it, because they grow to like
it. This works particularly well with expensive or luxury items.
For example, you are thinking about buying a cordless phone. You don't really need one, but it would be
nice to have. The salesperson tells you that you can always bring it back if you change your mind, so you
buy it. After using the cordless phone for a few days, you decide that there's no way you're going to take it
back - you love it!
In summary, you should always close the sale - don't wait around for the customer to do it for you. An
effective close saves both you and your customers time, and makes the whole sales process more efficient
and professional.
You should check if your store has a specific policy for the way in which a sale is to be closed.
23
Maximise Sales Opportunities
Professional selling is all about making sure that your customers get the products and services they need.
Sometimes, this involves selling them a product that is more expensive than the one they had in mind - this
is known as "selling-up". Alternatively you might try to sell your customers additional products and services
that complement their basic purchase. This is known as "on-selling".
Customers will rely on your product knowledge, experience and expertise to recommend the best possible
solutions to their needs. If you are sincere in the way you recommend additional products and services, the
customer will trust and respect your opinion. Consider the alternative… is it good service to not sell the
customer additional products, or to sell them a cheaper product, then let them find out a week later that
the product doesn't meet their needs?
Have you been a victim of a salesperson who didn't on-sell? A typical example of this is when customers
purchase children's toys, only to get them home and discover they need batteries.
On-selling is not "pushing" the customer to buy more. It's simply recommending additional products
and/or services that will help the customer be totally satisfied with their purchase.
Selling up to meet the customer’s needs
The other way of maximising each sales opportunity is to encourage the customer to see the benefits of
buying a more expensive product. This is known as "selling-up".
Selling-up is not just a way to make the customer part with more money - it is simply using your product
knowledge to recommend the very best solution to their needs. Sometimes a more expensive product will
be better, because it has additional features and benefits for the customer.
A salesperson knew that his customer might be disappointed with the quality of photos he would get from
the cheaper camera. He wanted to make sure that the customer was going to be happy with his purchase,
so he suggested a more expensive model. This is a good example of selling-up, and it was done in a friendly
and professional way without pressuring the customer.
When considering selling-up to your customers, you need to be sure that you can justify the price of the
more expensive product. Your customers are probably going to ask why the more expensive product is
better, so you will use your product knowledge to answer them with valid reasons.
Some ways to justify a higher price are:
 The extra features and benefits offered by the more expensive product are more suited to the
customer's needs.
 The quality of the more expensive product is much higher - saving the customer money in the long
run because the more expensive product will last longer.
 The performance offered by the more expensive product will give the customer a better result - for
example, a vacuum cleaner is more expensive because it has a bigger motor, but it will clean the
house much better.
In summary, tricking or forcing your customers into buying more expensive products is not professional
selling. You must be sure that you can genuinely justify the higher priced product by the extra features and
benefits it offers your customers.
24
Monitoring your own sales performance
Finally, it's time to say goodbye to your customer. Having sold him or her a product that suits their needs
perfectly, overcome all the objections, added on a couple of accessories to go with the product and
processed the sale, your job is done. Or… is it?
Professional salespeople know that they are only as good as their last sale. Nobody is perfect - there is
always room for improvement.
Being a successful salesperson takes practice and commitment. There are three main ways to monitor your
performance:
 Ask your colleagues and/or manager to give you feedback on your sales technique.
 Reflect on your sales experiences each day.
 Review your sales performance (you may be able to access sales figures).
Your workmates and store
manager can provide you with
valuable feedback on your
sales technique - you could ask
them to observe as you
interact with your customers.
You can also learn a lot from
watching other more
experienced workmates, and
observing their sales
techniques.
Monitoring your performance
You should always look back on
the sales discussions you have
with your customers. Ask
yourself questions like "Could I
have met their needs more
effectively?". Pay particular
attention to the techniques you
use to gather information about
your customers' needs, and the
way you sell benefits rather
than features.
Most retail stores keep statistics on
daily or weekly sales. In some cases,
individual sales results can be
obtained for each salesperson. You
should review these reports
regularly and see how you're going.
You may also be able to get figures
on "return rates" - that is, the
number of products being returned
by your customers. A high return
rate could indicate that you are not
selling your customers the product
that best suits their needs.
Closing the Sale - Summary
Being able to use a variety of closing techniques will help you provide a more professional and efficient
close to the sales discussion.
Being able to on-sell and up-sell will help improve your sales performance, as well as ensure that your
customers are totally satisfied with their purchase, and the service they received.
Finally, by monitoring your own sales performance you will be able to identify areas where you can
improve, and develop your skills on an on-going basis.
Now that you have completed these exercises you should feel confident that when you are assessed in the
workplace, you would be able to demonstrate the following competencies:






Customer buying signals monitored, identified and responded to appropriately.
Customer encouraged to make purchase decisions.
Appropriate method of closing sale selected and applied.
Opportunities for making additional sales recognised and applied.
Customer advised of complementary products or services according to customer's identified need.
Personal sales outcomes reviewed to maximise future sales
25
Key Terms and Concepts
Active Listening
Occurs when you tune into what someone is saying and how they are saying
it. It involves nonverbal signals and reflective questioning.
Add-on Sale
An extra item that is sold with a purchase eg. A paintbrush with paint, a cake
with your coffee, polish with shoes. The product could be something
unrelated to original purchase eg. a new product or promotion.
Benefits
Are the answers to customers’ questions – what can it do for me? They
appeal to the emotions and rationale of the customer. They are the non
tangibles.
Buying signals – the things a customer says or does to indicate they are ready
to make the purchase.
Closed questions
Are used to get specific information from a customer. They usually require a
yes or no answer.
Closing techniques – techniques used by a salesperson to close the sale. They
should leave the customer with a positive impression.
Complementary
products
Go with or add to another purchase (see add-on sales). They are related to
the item in some way, eg. Polish with shoes, cheese with crackers.
Customer
objections
Questions or statements that the customer may make to indicate that they
may be unsure about the purchase. They usually refer to price, time or
merchandise.
Features
Things that are tangible about the item. The way it smells, feels, looks, tastes
Greeting approach
Approaching customers with a friendly greeting that may open the
opportunity to make a sale. Eg. Hi, it’s great weather out today.”
Merchandise
approach
The way that you approach a customer who is interested in a particular item.
Eg. “Hi do you play a lot of netball?”
Open questions
Provide the opportunity for the customer to provide as much information as
possible.
Product knowledge – specific information about a product that the
salesperson can use to help sell the product.
Reflective
techniques
Questions that a salesperson may ask to clarify the information they have
been given or to indicate they have been listening to what the customer is
saying.Selling up - selling an item that is priced higher than that originally
requested by the customer eg. An automatic rather than a manual car
Service approach
When a customer appears to know what they want or are in a hurry you would use
this approach. You should still avoid asking “Can I help you?” but rather, “Is there
something I can help you with today?”
26