Entrepreneurship

Chapter 5
Smart Selling and Effective
Customer Service
 Many Great Entrepreneurs Started as
Salespeople to own business
 Ray Kroc, founded McDonald’s, selling milkshake
machines –a national operation

 Billy Durant, founded General Motors

 King C. Gillette, invented safety razor, before a

travelling salesman

 Aristotle Onassis, sold tobacco wholesale before

becoming multi millionaire in shipping business

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 2 All Rights Reserved.
 Selling is a great source of
market research
 If customer is dissatisfied, the
salesperson hears the complaint.
 When you start business, you will not
be able to hire a sales staff. You will be
the sales staff.
 Selling is a constant source of valuable
market research.

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 3 All Rights Reserved.
 Essence of Selling is Teaching
 Teach customers about the benefits of
your product or service, don’t just tell
them about its features.
 Listen to customers: Their complaints
teach you how to improve your
business.

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 4 All Rights Reserved.
 Principles of Selling
 Make a good personal impression –
prepare yourself physically, clean, well dressed,
not overdress, business card, don’t identify as
owner so talk more easily.
 Know your product or service –
how features can benefit the consumer. Explain
its benefits.
 Believe in your product or service – your
business will fail if you don’t believe it is the
best.
 Know your field – learn your competitor, try
their service, compare them with yours.
 Know your customers – what are their needs
 Prepare your sales presentation – how you want
to present
Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 5 All Rights Reserved.
 Principles of Selling
 Think positively
 Keep good records – have
recordkeeping system, including
invoice, receipts, before you go on
first sales call.
 Make appointments
 Treat everyone you sell to like gold –
treat people with happy, they will
influence others.

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 6 All Rights Reserved.
 Sales Call
A sales call is an “appointment” with a
potential customer to explain/demonstrate
your product or service. During the call:
 Focus on the customer – what does
the customer need, visualize your
product fulfilling that need. Mental
visualization will help you perform
better. Make customer aware of your
product.
Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 7 All Rights Reserved.
 Sales Call
 Make the customer want to buy
that product. listen to uncover
customer need.
 Be honest about it if your product
or service will not meet those
needs

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 8 All Rights Reserved.
 8-Step Sales Call – “Appointment”
1. Prepare yourself mentally – think how the
product will benefit this customer. Have
price, discounts, all technical information.
2. Greet the customer politely – form a
friendship. Maintain eye contact and keep
the customer’s attention.
3. Show the product or service – pointing out
the benefits.
4. Listen to customer – let the customer talk
about it. Learn what the customer needs
and wants.
Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 9 All Rights Reserved.
 8-Step Sales Call
5. Deal with objections…always acknowledge
them – do not overreact to objection. Do
not hesitate to tell the absolute truth about
any negative aspect of your product.
6. Close the sale – do not overstay your
welcome. If a customer say no three times,
you still have a chance. And the forth time,
really no, take it gracefully. You may make
a sale to this customer in the future.
7. Follow up – ask if you can be of any further
help.
8. Ask for new customer referrals
Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 10 All Rights Reserved.
 Sales Call Behaviors of
Successful Salespeople
Neil Rackham researched:
1. Let the customer talk more than you do.
You are there to learn about the customer’s
needs. The more your customer talks the more
you learn about their needs. Understand their
needs better and importance of solving their
problems.
2. Ask the right questions. Be a friend. Your
goal is to understand his problems before trying
to suggest that your product/service could
provide a solution.
Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 11 All Rights Reserved.
 Sales Call Behaviors of
Successful Salespeople
Neil Rackham researched:

3. Wait to offer products and solutions until

later in the call. You cannot offer a solution
until you know your customer’s needs and
problems.

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 12 All Rights Reserved.
 Analyze Your Sales Calls
After each call, ask yourself to improve your selling
skills:
 Did the customer open up to me? Why, or why

not? Did I do or say anything that turned the

customer off?
 Which of my questions helped the customer

describe his/her needs?

 Was I able to make a good case for my product

or service?
 Did I improve my relationship with my potential

customer?

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 13 All Rights Reserved.
 Turn Objections Into Advantages
 Study objections you have received
 Group into categories and develop objection-
proof answers for each
 Price
 Performance
 Follow-up service
 Competition
 Support
 Warranties
 Answers that are backed by proof, testimonials
from customers, research, data comparing your
product with competition’s.
Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 14 All Rights Reserved.
 Use Technology to Sell
 Multimedia demonstrations – a videotaped
 Web site – customers can visit for updates.
 Email & blogs – to stay in touch with
customer
 Digital planners & sales software – to keep
prospect lists organized and log sales calls.
 PDAs for order placement & inquiries –
Personal Digital Assistant / hand computer.

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 15 All Rights Reserved.
 The “One Minute Sales Call”
Planned presentation
 Keep it clear & concise (singkat, ringkas)
 Write it down
 Practice delivering it. The pitch needs to
sound natural
 Get constructive feedback
 Remember – listen to the customer! Don’t
just use the pitch!

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 16 All Rights Reserved.
 Customer Service Is Keeping
Customers Happy
 Know your customers by name
 Deliver products on time
 Help customer carry product to the car
 Suggest a less expensive product that
might meet the customer’s need
 Provide a full refund when a customer is
dissatisfied
 Listen politely & with empathy to
customer complaints

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 17 All Rights Reserved.
 Costs of Losing a Customer
Four costs of losing a customer:
 Loss of current dollars customer was
spending with your business
 Loss of jobs because of a lack of
courtesy/sopan.
 Loss of reputation
 Loss of future business

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 18 All Rights Reserved.
 Customer Complaints
are Valuable
 Always acknowledge & address complaints
and criticism. Complaints are a valuable
source of market research!
 Never overreact to negative remarks from
customers. Do not take these personally.
 Always tell the truth about any negative
aspect of your product or service. When
you admit a negative, you gain customer’s
trust.
Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 19 All Rights Reserved.
 Customer Service Is Marketing
Your customer service should always
reinforce your marketing and competitive
advantage.
 If your competitive advantage is speedy
service, make sure your employees move
fast.
 If your competitive advantage is a
cozy/atmosphere menyenangkan, employees
should not rush/membawa cepat-2
customers.
Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 20 All Rights Reserved.
 Customer Service Is Marketing
Your customer service should always
reinforce your marketing and competitive
advantage.
Word to Use:
Please appreciate
Yes Regret
May I Would you like
Consider this Us
Thank you Use customer’s name
Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 21 All Rights Reserved.
 Collect Market Research Via
Customer Service
 Include brief market surveys with
purchases.
 Ask selected customers to fill out longer
surveys, offering a discount as incentive.
 Have employees regularly ask customers
if they are satisfied with product/service.
 Keep database of customer contact info,
preferences, previous purchases, etc.

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 22 All Rights Reserved.
 Build Long-Term Relationships
with Customers
 Stay in touch via Web site and email in
addition to more traditional ways
 Offer customers birthday discounts,
special shopping days & other benefits
 Ask customers to refer you to new
customers
 A successful business is built on repeat
customers

Entrepreneurship, 2nd Edition © 2010 Pearson Education, Upper Saddle River, NJ 07458.
Mariotti and Glackin with NFTE 23 All Rights Reserved.