The Road to Success for your Business!

The fact that you think you sell the best there is to offer will not contribute much to your business’ success in this new millennium. The facts are that the business leaders who will thrive in the years ahead are those that are able to cope with constant change. Successful merchants will consistently foster creativity of their own and will learn and absorb that of others. Being Number One will not be measured by assets alone but also by your firm’s ability to identify key market changes and stay ahead of the tide. Today’s customers are more educated, more demanding and more perceptive. They have tools that allow them access to the world, not just the businesses in their neighborhood or town. The successful merchants will be those who are able to grasp the bigger picture and can creatively align themselves with the changing natures of their market structure, while still maintaining their market niche.

IDENTIFY YOUR DESTINATION
Sound like a staggering challenge? I continually stress to my clients, large and small, “Without a destination, your company becomes tactically unsuccessful rather than strategically dominant.” I have seen large companies lose their way and succumb to failure because they did not have a destination. I cannot, within the limits of this article define your destination for you, or give you a set of specific strategies that will get you there. You alone must define that. The most important thing required is for you to answer for yourself, “Who do you want to be?” Are you merely a business owner or are you an “industry lifestyle consultant?” More clearly, are you going to continue down the path hoping you’ll sell a few more units than last year? The successful merchant will be the one who positions himself as a consultant who uses his experience, service and knowledge to assist clients in matching the right products to their lifestyle needs and wants. I have often stressed the importance of segmenting services to targeted customers. Not all customers want to be treated the same and doing so will drag your business down very quickly. Value merchants must be proactive and able to adapt to and even anticipate market changes. Today’s business leaders, no matter the product or service, are leaner and more adaptable than their peers. Often I find long established businesses tailor their strategies to the world as it was. This is not because they can’t change, but because of the entrenched view of key leaders who believe there is no need to. The closer you live to the future, the closer you live to your customer.

The key then in this fast paced environment is to determine your destination. As you have previously created your mission statement, you must now plot the path to deliver it to your customers. Although I call it destination, your future success will always be a continual journey. But you must have a course mapped out that will prevent you from wandering aimlessly, chasing market fluctuations after the fact.

THREE CRUCIAL COMPONENTS
To effectively plot a destination that supports your domination of your market, you must address three crucial components:

1. The changing profile and needs of your customer universe.
2. The Competitive universe in which your customer shops for and buys your product or service.
3. The specific technologies that provide an ability to sell to that customer universe.

No longer is a white male, age 25, the only one who enjoys and can appreciate the unique uses and benefits of a personal watercraft. Jet skis are now common among a broad range of users from children to men and women, not just young white males.

Your customers now have a much wider base from which they can shop and do business. The Internet revolution has broken the barriers of time and distance and made products and services available to people around the world. Information technology now allows Wal-Mart to record every sale in every one of its stores in a giant data warehouse. The information is then applied to market strategies and allows Wal-Mart to distribute products to stores where the most people are likely to buy them. Are you connected to a data base system that could allow you to get emergency repair parts to a remote rancher who’s ATV is down within a matter of hours rather than days?

The emergence of e-commerce has put tremendous potential in the hands of business owners, regardless of size or location. Although selling a finely tuned racing sled over the Internet may not be the most effective vehicle for you, technology can enhance your position as an industry specialist. Does your website offer visitors a chance to experience a virtual reality test drive in a sports car or a mountain bike? Can they access your showroom from their living room and then leave you an e-mail message you can respond to within 24 hours? Do you provide a link that can connect someone who is viewing your website from across the country to a dealer within 25 miles of his or her home? The benefit for you? Collect a referral fee from the dealer after purchase! Technology and the effective use of it will provide you a whole new realm of access to your customer universe.

Thomas J. Winninger, CSP, CPAE, and member of the Speaker Hall of Fame is the president of Winninger Institute for Brand Strategy. Over 70 major companies in North America depend on him to assist them in maintaining their market dominance. The new millennium has seen the release of his newest book “Full Price!”. He is also the best selling author of “Price Wars” and “Sell Easy”. Contact the Winninger Institute at (612) 896-1900. E-mail: thomas@winninger.com; or visit our website at www.winninger.com.

Customer Satisfaction; Building Customer Relationships and Loyalty

“The creation of value is not about increasing your customer’s satisfaction. It is about taking responsibility for your customer’s results.” – Thom Winninger

Customer satisfaction? Isn’t that what we all strive for, what we drive ourselves for each day? The business owner whose has the most satisfied customers wins, right?

For years, conventional wisdom has said that a satisfied customer is a loyal customer. The world is full of information and experts that instruct businesses on how to build customer loyalty. Concepts like “customer focus” and “customer satisfaction” are warmly embraced. Businesses have “products” and “services” to sell and we sell these things to customers. Who wouldn’t want to focus on satisfying customers? Who wouldn’t want to build a base of loyal customers who come to us for all their needs? Yet we still find that customer satisfaction is a fleeting thing, captured one day by the best price, the next day by how well a complaint may be handled.

However, satisfaction and focus simply aren’t enough. A leader in today’s market must learn new words like intimacy, interaction, loyalty, and perhaps most important, strategic alliance. Strategic alliance is a single-thread relationship. It is being one with our customer. This type of relationship is very interactive with the customer. Strategic alliance is not just a fancy re-wording of conventional terms. It is not a make over of the same old tired concepts of “sales and service.” A strategic alliance with a client is built on a mutually agreed-to plan that reflects the nature and needs of the parties involved. It will involve a true paradigm shift away from satisfaction and toward loyalty.

PROCESS NOT PRODUCT
The industry leaders of today focus on the program, process or system that surrounds their product or service – not the product or service itself. An industry leader sells a program that helps customers make money or makes their life easier or more enjoyable. Rather than just selling a product or service, they wrap the process around it, thereby anchoring the value to the product and inevitably, achieve full price!

Almost every product sold, whether it is hard goods like cars, boats houses or soft goods like movies, or vacation packages, is intimately tied to several aspects of a process, including production, conversion, technology, logistics and distribution. By the same token, every customer goes through a buying process. The more a business owner learns about that buying process, the more we can help our customer by customizing programs and systems to assist the customers themselves become part of the buying process. The more we can truly help our customers, not just satisfy them, the stronger our relationship with them becomes. Satisfaction has been confused with acceptance of substandard levels of service and product performance. Customers are not really satisfied; they have just learned to deal with it. They have learned to accept the standard opening question of “Can I help you?” They have learned to accept, “Sorry, that’s not my area,” or “We can’t do that.” A business owner who develops a strategic alliance with customers will help them become a part of finding their own definition of satisfaction and the relationship will be greatly strengthened. The end result is a product or service that becomes so critical to customers that they are willing to base all their future purchases on it. The pressure is off price and focus is on the process.

A key to building this invaluable dynamic with our customers is centered on the selling of the program, process or system by which our product is most intricately linked. Take a look at the success of thematic dining. The Rainforest Café or the Hardrock Café offers food that is not particularly any better than other dining establishments yet they offer entertainment wrapped around the product and the service. Rather than a family going out to eat, they attend an “event” and enter into an “environment.” Bu focusing on the program surrounding the food, rather than the food itself, these eateries are able to create more value and therefore can charge much higher prices for the same food.

FOCUS ON WHAT IT DOES – NOT WHAT IT IS
Business leaders can successfully sell the program in three ways. The first method is to focus on what the product or service we offer does, not merely what it is. Concentrate on the benefits of the product instead of simply the product itself. A customer may come in to a dealership looking for an All Terrain Vehicle. Of course he knows what an ATV is, but does he really know or understand what that piece of equipment can do? Does he know it may decrease field time while delivering safe and stabile assistance with difficult chores? Does our personal watercraft client understand that the jet ski she is considering can not only provide hours of fun and enjoyment but also serve as an economical and efficient means of transport? These days it is not at all uncommon to see a large cabin cruiser parked in a quiet bay on a large body of water, with the family jet ski tied along side, ready to make the quick trip to the marina for more supplies? The idea of selling the benefits instead of the product is proactive in nature. It allows us to draw the client in, finding out what his or her need is, and then applying the features and benefits of the product to it. The concept is to tie the product to the lifestyle needs of the user. The client then reveals to us “why” he or she needs our product or service and we can then build the process around the need.

Thomas J. Winninger, CSP, CPAE, and member of the Speaker Hall of Fame is the president of Winninger Institute for Brand Strategy. Over 70 major companies in North America depend on him to assist them in maintaining their market dominance. The new millennium has seen the release of his newest book “Full Price!”. He is also the best selling author of “Price Wars” and “Sell Easy”. Contact the Winninger Institute at (612) 896-1900. E-mail: thomas@winninger.com; or visit our website.

Techniques, Tips, Rules, and Strategies to Help Make Failed Closing Sale’s a Thing of the Past

How to Successfully Close All Your Sales With No Worries!

Ask most powersports dealers what they fear most about the sales process and more often than not they say, “Closing!” I find that no matter what the business environment or type of product or service, more sales are lost not because of a poor product or too high of a price, but because of the failure to successfully close. I’ve actually watched promising sales go out the door because the sales person feared to move into the final stage and ask for the sale!

It’s unfortunate that so many talented people can perform most of their job very well but are so uncomfortable with the closing process. Closing is nothing more than getting a final agreement, which is a natural conclusion to a well-structured presentation. It is important to mention here that closing need not be such a monumental task if the sales process is broken down into manageable segments. Sales is not just greeting people and asking, “Can I help you?” The sales process is really a progression of discovering customer’s needs and wants and then identifying how your product or service satisfies those needs and wants. At each stage you’ve received agreements from your customer. Therefore, getting a yes is really just a logical conclusion to the groundwork you’ve already laid. Learning how to actually ask for the “yes” will take the pressure off and help make it as pleasant as any other part of your presentation.

HOW TO ASK FOR A YES

Ask 20 leading business owners about their most successful closing techniques and you’ll no doubt come away with 20 different approaches. However, in all my years of experience I’ve found that regardless of the type of sales the following three approaches work best.

Alternate Choice Decision. The goal here is to give your customer two or three choices, any one of which should generate a yes response. If you feel you’re not as close to getting the final response you’d like; you may want to offer three options. However, if you judge you’re close to a positive response, take the more aggressive approach and offer only two. Just remember Ray Kroc’s rule of “three, never more than four choices”.

Minor Choice – Minor Conclusion. The second approach breaks down the final agreement into two or three minor decisions. Most people can make a few small decisions along the way rather than one overwhelming choice all at once. Getting an agreement on the smaller steps is an important part of the overall decision.
Example: “Mr. Smith, if you were going to purchase this boat today, would you choose the burgundy color package or the blue one? Another example of a minor choice might be, “Mike, if you were going to purchase this cruise package today, would you prefer the three or seven day cruise?”

Decisive Action. The third way to ask for an agreement is by decisive action. This approach requires you to do something, and you continue as long as your customers do not stop you. Their action or inaction will clue you as to whether they are going ahead or not.
Example: “Bob, I can have this car ready for delivery on Friday. I can schedule a 3:00 delivery. Will that be a good time for you?” Your remark says you’re moving ahead. Your action is to schedule the delivery. Another example of a decisive action may be to put a special SOLD sign on the item and ask your customer’s permission to put his or her name on it.

CLOSING – MAKE IT NATURAL

Getting to the “yes” in the sales process doesn’t happen automatically. It comes with practice and requires making it a natural conclusion. Following a few simple sell easy rules will make getting to the “yes” a lot easier.

Rule Number One: Don’t ask for a yes in a negative environment. Not every customer comes into your business in a positive position. You may encounter someone who is unsatisfied either with your product or with an experience they may have had with you or something similar in the past. Sometimes right during a presentation, a trigger can go off and you find your customer bringing up a complaint. You often can salvage a sale and turn a negative environment around. Stop the progression and get a verification to something they may have already agreed to, such as a color choice. Anchor that to your final goal and then rebuild from there. Example: “Mr. Adams, I understand your reluctance. Let me go back and verify, you prefer the freezer on the bottom style of refrigerator, is that correct?”
Rule Number Two:Get pre-agreement in the closing process. Because of this strong economy, customers often find themselves confused by a profusion of products in the marketplace. They often have just too much from which to choose. It is critical that we as successful leaders help remove the confusion by determining their needs and wants and then getting a series of pre-agreements along the way to the close. The goal is to get your customer to explain themselves where they are in the decision-making process. It takes the pressure off of them because you merely ask them for their preferences – not a final decision.
Rule Number Three: Get advances if you can’t close. In a challenging presentation, you may have to get to the close by keeping your customer in the decision-making mode. The goal is to ask your customer to make a minor decision that can be applied to the final agreement. Example: “Joe, who else do you want to share this information with before making your final decision? I can meet with him (or her) on Tuesday afternoon to answer any questions.” Another example might be, “Joe, if you went ahead and placed the order today, would you want to pick it up here on your way to the office or may we deliver it for you?”

All of these steps take the apprehension out of closing. Remember, closing should be nothing more than a natural conclusion to a well-structured sales presentation.

Thomas J. Winninger, CSP, CPAE, and member of the Speaker Hall of Fame is the president of Winninger Institute for Brand Strategy and over 70 major companies in North America depend on him to assist them in maintaining their market dominance. Thom is the author of best selling “Price Wars”, “Sell Easy”, and new in 2000, “Full Price!” Contact the Winninger Institute at (612) 896-1900
E-mail: thomas@winninger.com; or visit our website.

Business Strategies to Increase Your Company’s Sales!

Creative Programs That Work!

Stop! Put down that pen. Don’t sign off on another new item for your business until you have accomplished a key element to increase sales – meeting customer needs! In the last few articles we have talked about micro marketing and integrating your message through every aspect of your powersports dealership. Both strategies are essential to success yet both rely on a basic building block, that is, knowing your customer needs. The biggest advertising budget in the world is worthless if a owner doesn’t really know his customer and his highest level of need. The successful business today, one who is experiencing the joy of increased sales, is the one who knows the customer, the need and then creates and integrates programs that address that need.

Far too many businesses make the mistake of offering programs that may approach the customer well up front but really do nothing to satisfy the needs and offer solutions. What’s the point of rewarding your customer with a handy dandy seven-function clock radio when her real need is to buy one more pair of jeans for her rapidly growing son? That’s just what a large retail store has done with its program that awards future discounts for customers who purchase frequently in the children’s clothing department. Under the program, customers’ purchases are tracked in a point of sale computer database until their purchase total reaches a certain amount. At that point, the customer is rewarded with a percentage discount on the next purchase. The amount of the discount is proportionate to the level of purchases accumulated. Result? Customers are given incentive to buy and save, instead of receiving yet another radio to find a plug in for! Tracking research has shown that when customer redeemed their savings discounts, they were spending more money in the children’s department than they had spent prior to implementation of the program. Challenge yourself to really meet a customer’s need and reward yourself with increased sales!

DISCOVER THE PRIMARY CONSIDERATIONS

Before implementing any promotion or program however, we need to make sure we can effectively and tangibly meet the need. To do that, we must identify key considerations or the highest level of need. For example, the department store was able to define that people who buy children’s clothing want value pricing, item popularity, brand selection and durability. Are you able to identify the highest levels of need for your CDM (Central Demographic Model) or in other words, the customers who have the greatest need for your products and or services? Typically, customers don’t replace or upgrade a big-ticket item like a speedboat every six months; more likely, a high level of need will exist in the area of service. Do you know what it is your customers need and want in service? Is it free pick up and delivery? Is it on-site service within a certain mile radius? A regular service check every six months or every 2,500 miles for the first year after purchase?

After identifying and studying the CDM for an upscale car manufacturer, I helped him improve his service and increase sales. We implemented the following programs that satisfied customer needs.

• Free maintenance service for twenty-four months built into the sticker price as standard equipment.
• Regular maintenance service at 2,500-mile intervals at the customer’s convenience. The customer called the dealership to request service. A service technician logged the order, arranged to pick up the car at the customer’s home in the evening after work. The vehicle was then serviced and back in the customer’s garage before leaving for work the next morning.

Simple solutions that meet customer needs and increase sales. What customer wouldn’t love to know his vehicle would be serviced while he slept and that it would be back in his driveway before the sun comes up? Can you imagine how sales might increase in the business where a pre-season and post-season check up were provided as a bonus with the purchase of a mountain bike? AND. . . you picked up and delivered their bike after service! Consider offering a future purchase savings bonus for customer referrals. For example, if one of your customers refers another customer to you and a sale is completed, your original customer receives a special thank you card in the mail rewarding him with bonus points towards the purchase of accessory items. Remember, when it comes to customer satisfaction the key is not to just meet the need, rather to exceed expectations!

MAKE IT TANGIBLE!
It doesn’t matter what business you may be in, the target is to narrow down your CDM, identify the highest levels of need and then meet and exceed the need. Just make sure the program you use to accomplish that can be seen in the minds of your customers and then be tangible. A freebie mini-clock radio just doesn’t fit the bill. I know of a couple whom recently purchased a family mini-van at an upscale dealership. Not able to purchase a brand new vehicle at the time, they opted for a pre-owned model. Their greatest level of need was not a new van, but for a more moderately priced one with the assurance that repair costs would be minimal. The dealership offers a warranty program that guarantees for the first six months of ownership, they pay 50% of any service and repairs. As a result, the couple ended up buying another vehicle at the same time! Meet the need – increase sales!

You can find more of Winninger’s business strategies in his dealer-focused books: Price Wars ($24.95) and Hiring Smart ($15). You can contact the Winninger Institute at (800) 899-8971; e-mail at twinninger@aol.com; website at www.winninger.com.