BWGTouchPoint

Top ESP selling organizations don’t happen overnight, they take work.  To build a top ESP selling organizations you need to plan, organize, control and motivate.  Following these four steps will put you on the path to success.

Step 1. Plan

Putting together a plan and setting goals for your ESP program is the first step to success.  Perhaps your organizations goal is to increase ESP sales by 20% in three months.  To do that, define the course of the goals.  To see a 20% increases in 12 weeks; you will need a 1.67% increase each week.  Also define the activities necessary to obtain these goals.  This may be making sure that the ESP is presented to every qualified customer, every time, or analyzing which product categories have greatest capabilities for growth and creating an action plan to concentrate on these.  Make sure to also set individual goals for each of your sales people and review these goals with them, letting them know that the success of the organization is determined by their success.

Step 2. Organize

Access the necessary resources you will need to achieve your goals and organize these resources.  Do you have ESP brochures and other point of sale materials available?  Using a brochure during the presentation of the ESP is key to securing the sale.  Brochures make the ESP more real for the customer, it allows the customer to see and feel the product, even if it is just being represented a brochure.  What other point of sale materials do you have?  Do you need to order them or if none are available can you create them?   All qualifying products should have the ESP sku and price marked on them, or if that is not feasible you should have an ESP price sheet that is easily accessible for the sales people.  It is important that you give your sales people every tool possible to be successful.

Step 3. Control

You need to consistently be aware if you are on track to reach your goals.  Tracking sales on a weekly or even better, daily basis and reviewing them with your management team and sales staff is essential.  You may also need develop ways to evaluate your other goals; like presenting the ESP to every qualified customer.  Perhaps you want to have your sales people fill out sales sheets that show how many times they offered the ESP and how many sales they made, and then have them turn these in each day to be reviewed by management.  There is no use in setting goals if you do not hold your team responsible for reaching those goals.

Step 4. Motivate

Maintaining a positive work environment is key to building a top ESP selling organization.  Supervising your management and sales team and providing them with one on one as well as formal ESP training in areas where they can use improvement will help you reach your goals, and letting your team know that you will do whatever you can to help them succeed will help you maintain a positive work environment.

Organizations that sit back and just hope for ESP success are never going to be successful.  It takes hard work.  As you can see from the four steps above, you need to plan the work, and work the plan. If you do that, then your odds of succeeding increase dramatically.

The key is to selling ESP’s to businesses is to have your clients become invested in the extended service program as a whole so that they purchase an ESP automatically each time they place an order for a qualifying product.  Understanding where your clients may have problems and gaps in their organizations and determining what desired conditions they may be seeking is the first step in getting your customers to buy into an extended service program.

When it comes to improving their business, most organizations are look to decrease costs, streamline efficiency, improve service or improve protection.  An extended service program can help them achieve all these desired conditions.

• Decrease Costs – Our extended service programs can help your clients keep their budgets inline, no longer will they have to worry about unexpected repair or replacement costs, which can wreak havoc on company’s budget.  Also the cost of an ESP is often less than the cost of a single repair, saving them money in the long run.

• Streamline Efficiency – Even if your clients have an internal IT department, an extended service program can free up a company’s internal IT staff for more important or larger projects.  Many of our extended service programs offer on-site and express shipping service, which can limit the company’s downtime for repairs.

• Improve Service – With a 24/7 ESP customer support line and basic over the phone troubleshooting, whenever your clients need help, we are there for them.  We also have a nationwide network of service centers that use fully trained, certified, factory authorized technicians.

• Increase Protection – An extended service program can offer product protection that goes above and beyond the limited manufacturer’s warranty.  Extended service programs can offer longer service coverage, power surge protection and even accidental damage and handling protection.

So when selling to businesses, look for problems and gaps in their organization and show them how an extended service program can help them reach the desired conditions they may be seeking.

The number one reason sales people are not successful at selling ESP is because they just don’t offer it. There may be a lot of different reasons why sales people don’t offer the ESP; maybe they don’t believe in it or maybe they are just lazy, though personally I tend to think it is because they just get told “no” too many times. Let’s face facts, over half of the customers you present the ESP to will probably say no. With that many no’s, I know it’s hard to remain positive, but there are things you can do to help.

Let’s take a quick look at the consumer buying statistics of ESP’s. 30% never purchase an ESP, they just don’t believe in them. 50% might purchase an ESP depending on the product and the price, and I like to say the presentation by the sales person, and 20% purchase them all the time. So if we figure we can close the 20% that purchase them all the time, and add to that half of the 50% the might purchase one, that gives us 45%. Let me tell you, if your closing 45% of qualified customers, your an ESP HERO!

So you see that at 45%, even the very best ESP sales people have over half of their customers tell them no. You cannot take it personally and let it discourage you from offering it.  One tool I used to use to help me keep things in perspective was that I would draw two columns on a piece of paper, labeling one “YES” and one “NO”. Then each time I presented the ESP, I would make a mark on the paper, either under YES because I made the ESP sale or NO because I did not. This way I could keep track of how I was doing, and when I started to get down on myself from all the no’s I would check the sheet, if on average I was closing 2-5 customers out of every 10 then I could tell myself everything is fine, I am right on track.

That other thing you can do that will help you remain positive, is to be persistent. Not only being persistent in reminding yourself that you know how to sell ESP’s and you can do it, but also admitting to yourself that you can always learn more, and being persistent in seeking out new knowledge, knowledge about the ESP product and services, as well as ESP selling skills knowledge. Which I guess if your reading this, you are already doing that. If you continue to educate yourself, it will build your self-confidence.

So stay on track, be persistent and remember that every “no” only brings you closer to the next “yes:

If you were to ask me what one thing a sales person could work on that will have the greatest effect on improving their ESP sales success, you might think I would say “presenting benefits”, “closing” or even “overcoming objections”, but you would wrong.  The number one thing that affects a person’s sales success is “attitude”.

Your attitude, how you think or feel about selling ESP’s has a tremendous impact on how successful you are.  Attitude determines the results you see every day.  If you have a negative attitude, or even if you have an ambivalent attitude towards selling ESP’s, you are never going to be successful. On the other hand, if have a favorable or positive attitude, the sky’s the limit!

Here are five attributes of a positive attitude that you should always be working on improving:

Optimism

You have to believe you will make the ESP sale.  Before the sale, envision the last success you had.  Put yourself in that moment; feel that emotion and keep that emotion with you throughout the sale presentation.  If you don’t get the sale, look at it as a temporary setback, one that will only bring you closer to getting the sale the next time.

Enthusiasm

You have to be eager to present the ESP and enjoy presenting it.  Love what you do and be passionate about bringing value to your customers.  Present the ESP with energy and excitement.  If you’re enthusiastic when presenting the ESP to your customers, they will be enthusiastic about purchasing it.

Self-Confidence

You have to believe in your ability to sell ESP’s.  Be knowledgeable about the features and benefits of the ESP’s you offer.   Never stop learning.  Remember, selling ESP’s, like all selling, is a skill that continually needs to be improved.  Learn from your mistakes and learn from your co-workers, your company and  your customers.  Confidence comes from knowledge.

Responsibility

You have to take responsibility for you’re past failures as well as your success.  Too many sales people make excuses or blame external forces for not getting the ESP sale.  They say, “oh they were young and young people never buy them” or “people can’t afford them in this economy”.  If the customer does not show any interest, it is because you failed to gain their interest.   ESP sales is a process, did you work the process, or did you just say, “By the way, do you want to buy the ESP?”  After every sale you need to be able to look in the mirror and with all honesty say “I gave it my best shot”.

Initiative

You have to be proactive.  You cannot wait for the customer to ask you if you have an extended service plan available.  You have to take control and go after the sale.  Don’t pick and choose whom you offer it to. Present the ESP on every qualifying product, every time.  Always look for opportunities to bring the ESP into the sale; like when determining the customer’s needs, when reviewing the Manufacturer’s Limited Warranty, or when listing additional add-on products.  Don’t quit at the first rebuff or hurdle. When it comes to selling ESP’s, set personal goals for yourself and strive to achieve them.

When it comes to selling ESP’s, it is your attitude that will make you or break you.   If there is only one thing you work on improving, let it be your attitude

Objections are just the customer’s way of saying, “I need more information”, though most customers never tell you what their objections are to buying the ESP, they just say “no” when you ask for the sale.  If you are waiting until the customer says “no” to find out what objections they may have to buying, well you, my friend, have already lost the sale.

Once the customer says, “no”, it’s out there, there’s no going back.  No matter what you say, no matter how convincing a justification you make for purchasing the ESP, ego alone may keep the customer from purchasing.  They have already told you “no” and they may think they would look foolish changing that to “yes”.

Before asking for the sale, follow this 5-step process to overcoming customer objections:

Step 1.  Seek Input

Answer any remaining questions the customer may have and seek input on what concerns or objections they may have to buying the ESP with statement’s like; “Do you have any concerns about purchasing the extended service plan today?” or “Is there anything that would keep you from purchasing the extended service plan today?”  Ask more questions, dig deeper; “Is this your only concern?” and “Can you tell me more about that?”

Step 2.  Acknowledge the Objection

Confirm that you understand exactly what their objection is.  Repeat it back to them; “So what you are saying is…” You want the customer know that you understand what they are telling you.  Does the customer agree with how you have summarized their concern?  If not, go back to seeking more input.  Sometimes the customer may not be clear on exactly what their main concern is, that is why it is important to repeat it back to them, this will give them another chance to clarify what they are thinking and feeling.

Step 3.  Empathize with the Customer

You do not want this to be a battle of wills.  You want the customer to know that you are on their side and their objection is not a thoughtless one.  A statement like, “Many people have felt the same way…” or “I have felt that way myself at times” can put the customer at ease and make them feel more open to what you have to say.

Step 5.  Address the Objection

Remember that objections are just the customer’s way of saying they need more information.  There are mainly five reasons customers do not buy; they feel no need, no money, no hurry, no desire, or no trust.  Which one of these does your customer’s objection fall into?  Have information on overcoming these main objections ready so that you can use it to address your customer’s objection.

Step 5. Confirm Agreement

They only way to make sure that you have overcome the objection is to ask the customer, you may have to also get them to agree to the severity of their need, or to the value of the cost of the ESP.  Ultimately you need to find out if you have satisfied their concerns.   If not, go back to step one and seek more input.

In the courtroom they say never ask a question to a witness unless you know what the answer is going to be (and I should add, that you also know the answer is going to be one you want).  It is the same in sales; never ask for the sale until you know the answer is going to be “yes”.   Seek out customer objections before you ask for the sale and use this 5-step process to overcome them.

As you stand in front of your customer presenting the ESP plan, you hope their paying attention and listening to what you’re saying, but in all reality what they are probably listening to is the little voice in their head that is saying “I don’t need this.”  If you are going to be successful selling ESP’s to your customers you are going to have to show them why they need the ESP, not just why it is a good idea to buy an ESP, but what is special about them to which purchasing an ESP will fill a personal need.

If you think about it, when your customer walks into your store, or calls your company, they probably already know what they are looking for, or you might say they know they have a need for a product you sell. They might not know which brand or model they need (that’s where you are going to help them), but they pretty much know what product they need to buy.  But let’s be honest ourselves, not many customers coming walking through the door thinking “I going to buy myself an ESP today” (wouldn’t that be nice).  To be completely honest, the idea of purchasing an ESP probably never even entered their mind until you brought it up.  It is because of this that little voice in your customer’s head starts speaking up saying “I don’t need this.”  To be successful you have to show your customer that they have a need for the ESP.

As I have mentioned in previous blog posts, you have to ask qualifying questions about the customer’s lifestyle and their intended use of the product.  Who will be using it?  What are you using it for?  Where do you use it?  When and how often do you use it?  Why are you purchasing this product?  The more you know about your customer the easier it will be to find their need for the ESP.

Customer needs for purchasing an ESP on the product they are buying:

1. High Amount of User – Will a lot of people be using this product?  The more people using the product the more wear on that product, the higher the chance that they may have a service issue with it.
2. High Amount of Use – How often are they using this product?  The more often the product is used, the more wear on the product, the higher the chance that they may have a service issue with it.
3. Important Use – Is what they are using this for important for their business or in their personal life.  The more important the use of the product is to them, the more they will feel they need to protect their investment in this product.
4. Travel with Product – Where do they use this product?  If they are traveling with it, the more wear on the product, the higher the chance that they may have a service issue with it.
5. Past Service Issues – Why are they purchasing this product?  Are they replacing a product that broke down on them?  Have they had service issues in the past?  If so, the more they will feel they need to protect this product.

It is through your qualifying questions that you will find that your customer probably has one of the needs listed above.   When introducing the ESP start by showing the customer they have a need for the ESP.

For Example:

1. “Remember how you told me that you, your wife and your 5 kids will be using this Blu-Ray player, with that amount of people using this Blu-Ray player luckily this qualifies for our Extended Service Protection plan. “
2. “Remember how you told me you use this laptop not only during the day, but at night and weekends too, well with that amount of use, luckily this qualifies for our Extended Service Protection plan.”
3. “Remember how you told me this printer is important to your business, well with it being so important to your business, luckily this qualifies for our Extended Service Protection plan.”
4. “Remember how you told me you were going to be traveling with this MP3 player, well the road can put a lot of wear on a product, luckily this qualifies for our Extended Service Protection plan.”
5. “Remember how you told me you were purchasing this dishwasher to replace the one that had broke down on you, I am sure you do not want to go through this again, luckily this qualifies for our Extended Service Protection plan.”

By showing the customer they personally have a need for the ESP it quell that little voice in their head from saying “I don’t need this.”  So instead have having to fight through that initial mental wall the customer put up when they thought that this was something they didn’t need, the customer is now more open to what you have to say, and  if your  good, that little voice in the customer’s head will start saying “I really need this.”

Remember that old Smith Barney commercial where the actor John Houseman says the famous line; “We make money the old fashioned way. We earn it.”  Well that is how you get the ESP sale; you earn it.  You earn it by building a strong rapport with your customer.

Most customers when they walk into a store, or call their sales representative, have no idea they are going buy an ESP.  They know the product they are going to buy.  They have probably done some research on it; they may have even talked it over with their spouse, friend or boss, but the ESP, that’s a different story.  They probably have not given any thought to purchasing an ESP before they walked in the door, and because of this if you are going to make the ESP sale, you are going to have to earn it.

By building a rapport with your customer you help them develop a basic level of trust and confidence in you.  Most sales people make the mistake of diving right into their product sales pitch. Slow down, take your time.  Start with a little “small talk” to search out common interests. People trust people that are like them, so reinforce your common interests.  Share information about yourself, like how long you have worked in this industry or other customers you have been able to help, and in doing so you will imply how you can help them.  As you move into asking the customer questions about their needs, listen closely instead of thinking about what you are going to say next.  Repeat what they have told and confirm that you understand them correctly.  Though it is important to start building rapport early with the customer, it is really something that you do throughout the whole sale.

Only through building a strong rapport with the customer will you be successful at selling ESP’s.  Having the customer’s trust and confidence is not something you can take for granted, you have to earn it.

What is your customer ultimately looking for from a sales person?  Most sales people will tell you the customer is looking for “expert advice”, and that is true.   The problem is that as sales people we focus too much on the “expert” and not enough on the “advice”.   Today’s customer is ultimately looking for value and to be successful as a sales person, especially an ESP sales person, you need to become value-adder.

As experts we learn our products inside out.  Memorizing spec sheets, analyzing and differentiating competing products, and keeping track of trends in the market place.   We want to make sure that if the customer asks us a question, we have an answer for them.  I have seen many sales people who basically indentify themselves as “Product Experts”, they believe the appeal is all about the product, but in today’s market place product knowledge is not enough.  Today’s sales person needs to offer their customers solutions that add value, they need to be “Value Experts”.   So how do you become “Value Expert” when it comes to ESP sales?

1.  Ask Questions

Ask questions about the customer’s lifestyle and their intended use of the product.  Who will be using it?  What are you using it for?  Where do you use it?  When and how often do you use it?  Why are you purchasing today? If you are selling ESP’s to a company you may ask them questions about their operations, how they currently service products and what desired goals they may have, like reducing costs or streamlining efficiency.  The key here is to dig deep and gain a thorough understanding of your customer.

2.  Challenge your Customers Perceptions

The number one reason consumers and businesses do not purchase ESP’s is because they don’t think they need them.  Listen to what your customer has been telling you and pull the information you have gathered together to challenge their perceptions.   If the customer does not think they need the ESP, they will not see the value in it.   Use the answers to your probing questions to help you define their need.  For example; so what you’re saying is that there is going to be a lot of people using this product and using it often?  Do you think this may put additional wear and tear on this product? If it is a business you might say; so from what you have told me, it is a long drawn out process to get your products serviced?  Wouldn’t you like to streamline that process and reduce your costs?

3.  Offer “Value” Solutions

Remember you’re a “Value Expert” so you’re not just offering them an ESP, you are offering them a solution that brings value.   Pitch the value; In case of service issues what if I could offer you a solution that will save you money, or what if I could offer you a solution that could considerably reduce your costs? The ESP program offers your customers an easy to use plan that will save them money and give them the peace of mind that they will no longer have to worry about unexpected service issues.

Don’t get caught up in presenting all the specifications or features of a product; the key to successful selling is to provide value to your customers.  Peace of mind, convenience, savings; these are the values that the ESP brings to your customers, and these are the tools of an ESP “Value Expert”.

Customers are continually bombarded with sales information.  It can be difficult for them to process this information and keep track of what is relevant to them.  As a sales person you need to make sure that the ESP information you present to your customer is not going in one ear and out the other.  One of the best ways to do this is to use two simple words, “for example”.

When we tell “stories” or use examples in our sales presentations it helps the customer relate better to how they can use the ESP.  It makes the customer feel connected and emotionally engaged.   Telling stories helps the customer “see” what is being said.

My Story

For example, I remember one of my first experiences with an ESP.  I was house sitting for some family friends who were on vacation and I was watching their large projection screen TV one night when there was a power surge and I heard the TV make a loud “POP” sound.  Then nothing…the screen went blank.   No matter what I tried the TV would not work.  I was devastated, for one I was supposed to be taking care of their house, not breaking their possessions.  And two, I knew that I would have to pay to get this fixed.  TV’s can be extremely expensive to fix and at the time I was a broke college student.  Well, though I knew it would not be a pleasant phone conversation I called the homeowners immediately.   To my surprise, they were not even upset; as a matter of fact they were pretty calm about it.  They told me they had an ESP on the TV and the service number was on the refrigerator.  Even though it was late in the evening they told me to just give the ESP company a call, they are open 24/7, and they’ll take care of everything.   To be honest, I think my friends were more concerned about how shaken up I was, than they were about their TV.  The service technician came out the next day and fixed the TV.  It didn’t cost a penny and it sure made me feel good that when my friends came home from their vacation everything was just how they left it.

That’s a true story, it really did happen to me.  Hearing my story, did it make the ESP feel more real for you?  Did it make you feel emotionally engaged?  You may have noticed in my story I brought up some of the ESP features like; covers power surges, 24/7 call center and that there were no out of pocket expenses.  When I talked about how calm the homeowners were it highlighted the benefit of owning an ESP; peace of mind.  I also mentioned the benefit of convenient on-site service.

Start thinking about your own extended service plans stories or about product services issues you may have had in the past, write them down and incorporate them into your ESP sales presentation. Personal stories about you are the best to use but if you don’t have any perhaps one of your customers do.  I have found that when presenting the ESP customers love to tell me stories about products they have had service issues with in the past and how an ESP had helped them, or how they wish they had an ESP when the service issue occurred.   These are the kinds of stories that will make your ESP sales presentation more engaging.  So in the future, instead of just rattling off ESP features and benefits to your customers use stories and examples to help your customers “see” what you are telling them.

Let’s be honest, when most consumers go out to purchase a product they probably had not planned on purchasing the additional Extended Service Plan, as a matter of fact it may not have even crossed their mind until you mentioned that they are available. To be more successful selling ESP’s you are going to have to be able to persuade people to purchase something that they may never have given any thought to before. Here are five ways to be a more pervasive when selling ESP’s.

1) People find it easier to do something (or purchase something) when they know that other people are doing it also. Prepare customer testimonials to show your customers that others have purchased the ESP and have been happy with it.

2) People deal with fear by blocking it out and denying it. The more they know about the means of ridding themselves of that fear the less they will resort to that denial. Customers may initially be hesitant to purchase the ESP because they are in denial that the product they are purchasing may have a service issue. Explaining to the customer how easy the ESP is to use and the peace of mind and saving they will receive from purchasing it, the easier it will be for them and overcome that initial fear and denial.

3) People are more willing to be influenced by someone when that person has been recommended to them by a third party, even if that third party has a working or personal relationship with the person they are recommending. Does your company have a greeter or receptionist that first meets with the customer before referring them to a sales person? If so, have that person sing your praises first. For example they may say something like, “Let me get John to help you. John has been selling these product for over 15 years and he knows everything about them. If there is one person that can help you find exactly what you need it would be John.”

4) People are more willing to be influenced by someone that they have similarities with. When building rapport with the customer look for things that you have in common with them; same hometown, same alma mater, favorite sports teams or kids the same age. Pointing out your similarities to the customer will help you be more successful later when recommending the ESP.

5) People are persuaded more by losses than they are by gains. Explain how expensive it can be if the customer has a service issue with their product. Breakdown the average repair costs for them; parts, labor and trip charges. Explain to them how an ESP can protect them from these costs.

In closing, remember that customers can be hesitant about purchasing an ESP at first, be prepared for some resistance.  It may take some patience and persistence to overcome their initial hesitation.  Be prepared to present the benefits of the ESP a second time after the first “no”, and if you cannot make the sale ask yourself what you may be able to do next time to be more persuasive.