Approaching Customers

How do you approach a customer? The biggest mistake is to ask, 'May I help you?' Because the customer will most often than not answer back, 'NO', or 'I am just looking'.

So a more effective way of approaching a customer is to say: "Hi, my name is John Doe, and you are?". This is to avoid having the customer answering 'no'. For example, instead of saying, 'are you looking for an iPod?', instead say: 'Would you like an iPod Nano, or iPod Shuffle?'. Remember to create the reciprocity obligation on the customer. Show that you are spending much valuable time with him or her. Explain to the customer the features and benefits (more of the benefits) patiently. The idea is to keep the customer with you as long as possible, the longer the customer is there listening to you the more likely is it for him or her to make a purchase. If the customer is willing to stay longer also shows that the customer has the potential to purchase.

Levine showed the steps taken by an auto dealer named Michael Gasio in order to make the sale.

Firstly get the customer into the door by different techniques such as the 'Throwing the Lowball' technique where you convince the customer to come down to see you because you offered a price lower than any competitor (a 'highball' technique is the opposite when you offer something with a higher value for an exchange of a lower value item, such as a trade-in deal).

Another technique pointed out is the 'Bait and Switch' technique where you quote a low price for the same item as a competitor and when the customer comes to see you, he will realize that something important is missing from the item. This is when you find the customer an item with that feature and with that of course comes with a higher price tag. The 'Lowball' and 'Bait and Switch' technique as Gasio mentions is useful to have commitment from those customers who are supposedly 'just looking', or 'comparing prices'.

The first strategy is to get the customer to meet with you, even though you have over promised and can't deliver what you proposed. What most large sales dealership companies do is that when you asked the salesman who offered you that very attractive offer, the salesman will excuse himself and asked a colleague to handle you where the colleague will than inform you of the mistake the original salesman have made. The new sales person will than proceed with his sales pitch. If the sale is closed, the participating salesman will share the commission.

At the end of it all you must make sure that you are the one who is still in control if you are the sales person. Don't let the customer ask you for the cheapest price you can give, instead ask the customer how much he or she is willing to pay for the item after hearing all the features and benefits. Ask the customer to give an offer. Always ask, how can you get him to purchase the product today.

There are 2 methods that Levine mentioned called the 'A Door In The Face' and 'That's Not All' strategy to attract customers to commit.

To put it simply, 'A door in the face' technique is when when you shock the customers at the high price of the offer, then come in for the kill with your intended price.

In the 'That's not all' technique, instead of having the customer just reject your first item totally, you reduce the price of the same item or get addition bonus or gifts. This technique is widely used by many retail stores and companies selling timeshare. The 'that's not all' technique is also often seen on infomercials when they keep additional items to the package to make it so attractive that you can't resist not buying it.

Remember, we are all ingrained with the obedient trade. You can get anyone to buy from you if you make small, escalating advances one step at a time.