The Magic 8 s of Selling Sunday, June 26 3:00pm - 5:00pm

Transcription

1 CPE ACCESS CODE: ACPE UAN: L04-P CPE Credit: 0.2 CEUs/2.0 Hrs. Ac vity Type: Knowledge-Based Must redeem CPE credit by: JULY 30, 2016 at The Magic 8 s of Selling Sunday, June 26 3:00pm - 5:00pm Learning Objec ves for Pharmacists: Upon comple on of this CPE ac vity, pharmacists will be able to: 1. Examine the benefits of crea ng a staff educa on program 2. Outline the necessary steps for crea ng a staff educa on program 3. Detail the components of a staff educa on program 4. Illustrate the eight types of customers a pharmacy will experience 5. Demonstrate engagement exercises that teach employees how to sell be er Tom Shay, CSP Tom Shay s experiences as a fourth-genera on merchant provide him with the knowledge and background to present tried and proven ideas to assist owners, managers, and staff with the day-to-day opera on of their pharmacies. During the 25-plus years that Tom was part of the family business, the stores were ongoing laboratories for the management and promo onal techniques that are the backbone of the seminars that Tom now produces. He presents proven and me-tried ideas on the topics of business management and marke ng, staff educa on, employee skills development, and financial control. Tom has worked with many pharmacists through the state pharmacy associa ons as well as with regional buying groups. Tom Shay has authored five books on small business management and co-authored a book on retailer/vendor rela ons. During the past 8 years, Tom has wri en over 400 management ar cles that have appeared in over 70 na onal and interna onal trade magazines including Drugstore News. He has wri en eleven books and one textbook on small business financial management. His website, profitsplus.org, is very extensive; packed with free financial and adver sing calculators as well as many of the ar cles he has wri en and over 30 hours of con nuing educa on classes on all aspects of business management. As a speaker, Tom has earned the Cer fied Speaking Professional (CSP) dis nc on, an honor that has been earned by fewer than 7 percent of speakers worldwide. Faculty Disclosure: Tom Shay reports no actual or poten al conflicts of interest in rela on to this CPE ac vity.

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3 Continuing Education 2016 Magic 8 s of Selling Tom Shay, CSP Disclosure Tom Shay reports no actual or potential conflicts of interest associated with this presentation 2 1

4 Learning Objectives Upon successful completion of this activity, pharmacists should be able to: Examine the benefits of creating a staff education program Outline the necessary steps for creating a staff education program Detail the components of a staff education program Illustrate the eight types of customers a pharmacy will experience Demonstrate engagement exercises that teach employees how to sell better 3 4 2

5 5 Argument #1 Only 25% of small businesses have formal training programs of which half actually budget for this expense. Of these, the average amount is.02% of sales. 6 3

6 Argument #2 For businesses that increase their education budget: 68% report a jump in profits 44% report a jump in productivity - AMA study 7 Argument #3 And after a year: 80% report a jump in profits 70% report an increase in productivity 8 4

7 Argument #4 The cost of hiring and training a new employee will be 40% to 60% of the annual cost of the employee. 9 Argument #5 The cost of gaining a new customer is $20 The cost of keeping a current customer is $4 10 5

8 Argument #6 A business that is committed to quality customer service traditionally experiences a low staff turnover. - Harvard Business School 11 Argument #7 The alternatives: Hire the best employees from the competition Educate the staff you have Pray: Oh God, I hope this person works out better than the last one! 12 6

9 The sequence that worked best for us: Initial staff meetings Immediate needs policies & procedures Knowledge sharing Desired policies & procedures Job specifications 13 Job descriptions Chain of command Involve others Refine Hiring process 14 7

10 Initial staff meetings were: One hour in length Bi-weekly Held before or after hours Attendance required 15 One good idea: Daily, before the start of work for 15 minutes 16 8

11 Immediate policy and procedure needs Policy What to wear, absences Procedure the sequence or method of doing a task 17 Knowledge sharing Advertising efforts Product knowledge Sales/service techniques 18 9

12 Desired policy and procedure Where do you want your business to go and grow? 19 Job specification How to perform a particular task: Salesperson Installation Cashier Supervisor 20 10

13 Job descriptions Work with customers Work with each other Leadership 21 Chain of command Customers Sales Staff Supervisor Manager Owner 22 11

14 Involve others Create a mentoring system Allow others to coach & teach Develop a supervisor system 23 Refine the process Procedure takes times Semi-annual job reviews for all Use a score card Set goals and deadlines Add class tests Sticks & carrots 24 12

15 Hiring process The copy of your help wanted ad Job descriptions with the application The interviewers What would your last employer say? 25 Two bonuses A bonus for the mentor The feeling you will have after a staff meeting 26 13

16 Share with you 8 types of selling Share with you 8 ways of closing a sale What happened to the 5? Always give a customer more than they are expecting 27 Is that all there is to selling? Then let s keep dancing. A customer comes in, asks for a product, and purchases it. What did you sell? 28 14

17 Convert to sale Have a browser become a buyer 29 She walks into your store while her husband is next door at another store Can you convert this browser to a customer? 30 15

18 What is your conversion rate? Total number of browsers / those making a purchase 31 The natural instinct is to say, Can I help you? Do you have a repertoire of other opening phrases? Hello Good morning Welcome Just making eye contact 32 16

19 Repeat sale Have an existing customer return 33 She has shopped with you before Does she ask for you by name? Did you get her name? Her contact information? 34 17

20 Why would she share personal information this with you? When there is a benefit for having a contact from you! 35 How often does your store contact the customer? If you added a new product, how would you tell existing customers? (Not by way of the traditional media) 36 18

21 Referral sale Have an existing customer suggest a friend or neighbor do business with you 37 One of the highest compliments a customer can pay you and the store where you work Gain referrals by first taking care of customers so that they repeat 38 19

22 Educate your repeat customers so that their friends and neighbors consider them an expert on the subject 39 Cross selling Have a new product or service that you anticipate an existing customer will purchase because of their previous purchases 40 20

23 In return, the customer will widen their dependence on your store They will also decrease the possibility that they are price shopping, or spending some of their dollars at another dealer 41 This is serving not selling Look for the appropriate moment Offer no more than three items Offer varying prices 42 21

24 Suggestive selling When the customer is looking for a solution or idea and you can provide assistance 43 Over 70% of customers do not know what they want when they come in the store This is a combination of the customer s best interest and the store s best interest Suggested selling is a service to the customer not a task 44 22

25 Their initial choice of a product likely occurred because of a friend or neighbor s suggestion It is your responsibility to get the customer to the product that is right for them Help the customer to see there is a difference in what they want and what they need 45 Up selling Have a customer purchasing a product or service that is higher quality or more expensive than what they originally asked for 46 23

26 Up selling begins when the customer first selects a product Questions should be asked to learn about the customers preferences and experiences What else have you owned? Do not jump immediately into the up sale 47 As the customer examines the product, look for their disappointments Does the higher quality product do a better job of solving the want or need? Look for the What do you think? 48 24

27 Up-selling Would you like to have the extra large drink for only 15 cents more? Would you like to have the.. for only $... More? 49 Add on selling After having made the initial sale, this product or service relates to the initial purchase 50 25

28 Would you like cheese on your hamburger? Would you like fries with your hamburger? It may be obvious, but it has to be mentioned to be sold. 51 Who is more qualified to know which product goes with which? If the customer returns and says, I forgot to get some., it was your lost opportunity and sales failure

29 Display items that are natural add on sales near the item they go with even if that means the item is displayed in several places. Practice developing your add on list Play list of 25 Play hot potato 53 Impulse selling Have the customer select something that catches their eye or that you suggest that may or may not relate to the initial sale Or, making the purchase on a whim 54 27

30 This is an item that the customer had no intention of purchasing when they started shopping 55 Almost half of all purchases are made on impulse 56 28

31 Those that shop more frequently and those that spend more are most likely to respond to impulse items Place items that you want them to pick up in the easy to see and get places at the checkout, end caps, 4 to 6 6 from the floor, dump displays 57 People purchase commodity items on impulse People are impulsive about products that are on sale display them predominately! 58 29

32 8 Sale closings Either/or Do you want the blue or green? Assumptive Start showing the accessories Reflective question Can I get this in a bigger Do you want? Feel, felt, found I know how you 59 Take away It s the last one, end of sale Ask for it Are you going to buy this one? Relevant story Let me tell you about another customer What did I do wrong Just one more question 60 30

33 61 Customers are just like vowels; you have to buy them one at a time 62 31

34 Continuing Education 2016 Questions? Tom Shay, CSP 32