How to Become of a “Value Expert”
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”.
Two Words to Use in Every ESP Sales Presentation: “For Example”
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.
5 Ways to Be More Persuasive when Selling ESP’s
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.
Different Ways to Emphasize the “Benefits” of the ESP
My wife’s grandmother owned a parrot name “Tony”, and whenever anyone came into her house that parrot would fly over, perch on their shoulder and say “Got a kiss for me…got a kiss for me Tony?” saying it again and again. Besides being a little freaked out because you had a parrot on your shoulder, the continuous “Got a kiss for me…got a kiss for me Tony” would start to get to be a little monotonous until you finally just tuned him out.
The extended service plan (ESP) has three main benefits: peace of mind, convenience and savings. But how often in your presentation can you make the statement that “this will give you peace of mind”, “this is convenient” or “this will save you money” without starting to sound a little like Tony the parrot and risk the customer tuning you out? Finding different ways to emphasize the benefits of the ESP will keep your presentation compelling and help you be more successful when presenting the ESP to your customers.
Here are few different ways to emphasize the three main ESP benefits:
Peace of Mind
- Protects your investment
- Puts your mind at ease
- Saves you needless worry
- Your defense against…
- Protects you from…
- Shelters you from…
- You can depend on the ESP
Convenience
- It’s there when you need it
- Ready to go anywhere you are
- Simplifies
- Fast and easy
- At your convenience
- You won’t have to shop around
- Takes the work out of searching for a repair center
Savings
- Pays for itself
- A terrific value
- Cost-efficient
- Your money’s worth
- You save because…
- Helps you avoid costly repairs
- Eliminates costly repairs
Remember, “features tell, but benefits sell”, emphasizing the benefits of the ESP is what will ultimately induce the customer to buy, so don’t be like Tony the parrot, find different ways to emphasize the benefits of the ESP to keep your presentation compelling to the customer. Oh yea, and don’t ever ask the customer, “Got a kiss for me…got a kiss for me Tony?”
The Top 10 Most Common ESP Objections and How to Overcome Them
Selling extended service plans (ESP’s) is often a challenge for even the best sales people. Customers are conditioned to say no to add-ons and up-sells and especially to ESP’s. Objections are just the customer’s way of letting you know that they have some questions and concerns that haven’t been resolved yet, and that they need more information. I have collected the Top 10 most common ESP objections and provided some responses to help you overcome them.
#10 – “I have a friend that can fix it.”
“It’s great that you have a friend to fix it, but is your friend going to fix it on your time schedule or his? You also have to factor in that you still have to pay for parts or to replace the product if it cannot be fixed. With our extended service plan all it takes is one simple phone call to initiate service. The plan pays 100% covered parts and labor and if it cannot be fixed it will be replaced.”
#9 – “They never break.”
“Products today have more features and are more technologically advanced. Because of that if something were to fail, repairs are more expensive. Labor costs alone nowadays can cost you $50 to $100 an hour. Our extended service plans save you money by paying 100% covered parts…and labor.”
#8 – “I can get it cheaper elsewhere.”
“Not all extended service plans are the same. Many are just extensions of the limited manufacturers warranty. Our extended service plan goes beyond what most manufacturer’s warranty covers. It offers power surge protection, on-site service and a free 24-hour product support line. Plus all our plans are transferrable, so it actually increases the value of your (product) in case someday you decide to sell it or give it away.”
#7 – “If this (product) is so good, why do I need this plan?”
“We sell only quality products, but there is a reason why manufacturer’s warranties are limited and typically last for only one year or less. This is why we feel it is so important to give our customers the opportunity to protect their purchases after the manufacturer’s warranty expires. Your long-term satisfaction is our number one concern.”
#6 – “My credit card doubles the warranty.”
“Generally credit card warranties simply extend the manufacturers original limited warranty for a maximum of one year or less, with no added benefits. This program offers a number of benefits that the manufacturer doesn’t cover like power surge protection, on-site service and a free 24-hour product support line. Often credit card companies make you find a service center and get repair estimates, which you may have to pay for, and then once the estimate is approved you pay for claims up front and then they make you wait for reimbursement. With our program you do not have to search for a service center or obtain estimates. We also offer direct billing to service centers so there are no out of pocket expenses.
#5 – “I’ll never use it.”
“When it comes to extended service plans, it is better to have one and not need it than to need one and not have it. At least with our extended service plan you will gain the peace of mind of knowing that you are protected from any surprise repair or replacement bills and your that your (product) will keep on working.”
#4 – “I need to ask my spouse.”
“Does it sound like a good idea to you so far? You are the best one to make the decision since you asked all the questions and heard all of the information, if you would like to review it with your spouse I recommend purchasing now and you can review the terms and fine print together when it’s convenient for both of you. If you change your mind you always have 30 days to bring it back.”
#3 – “I’ll take my chances.”
“I have said the same thing myself. But in my case, it seems that whenever I take a chance, for example putting off a car or a house repair, that’s when I run into a problem that ends up costing more. Now, when I gamble I feel better when the odds are in my favor – there are less risks that way and I feel better about my investments.”
#2 – “I need to think about it, can I purchase it later?”
“Too be honest, what usually happens when people wait to purchase it later is that they simply forget…that is until they have an unexpected service issue. Then I feel bad because I have to be the one to inform them that the time period to purchase it has expired. We have a 30-day return policy here, why don’t you purchase it today and then take the next 30 days to think about it. If for any reason you do not think it was a wise decision, and I promise you it is, you can come back and get a full refund.”
#1 – “It costs too much.”
“A single repair can end up being more than the cost of the extended service plan and usually creeps up at the most inopportune time. This way, for what works out to be a few pennies a day* you know you are protected from any surprise repair or replacement bills and that your (product) will keep on working.”
*Create a chart to keep close by where you break down extended service plan costs down by year, month and day – people don’t usually object to “a few pennies a day” costing too much.
I will Huff and I will Puff and I will Blow Your Sale Down
As I travel around the country doing sales training for our dealers, the number one question I get is “How do you overcome objections?”
Objections are common in sales, and there are a number of ways to overcome common customer objections to purchasing ESP’s. But what I try to emphasize in my trainings is that the best way to overcome objections is to try not to get them in the first place by making sure the structure of your ESP sales presentation is strong.
When I was a young boy, I loved to build forts in my backyard. My friends and I would borrow tools from our dads and since we lived in a fairly new suburban development we would “borrow” building materials from the local housing construction sites (I am pretty sure the statue of limitations on that “borrowing” has expired by now). I remember our first fort had this cool trap door in the top for access, and it was our favorite place to hang out. Well, that was until a storm came along one night and toppled it over…and over…and over. Our problem had been that we forgotten to build a strong foundation that would anchor it to the ground. With our second fort, we knew how important it was build a strong foundation so we made sure to take care of that. This time instead of plywood, we built the walls out of fiberboard, which was in abundant supply at the time. Again a storm came along one night and what walls were not scattered to the wind; the fiberboard had literally disintegrated to mush in the onslaught of rain. Seriously, it looked like someone had poured porridge over the whole thing. It was not until our third fort that we learned our lesson, like the three little pigs: it is how you build your home and what you build your home out of that keeps it from falling apart when the big bad wolf comes huffing and puffing on your doorstep.
You can learn a lot about selling extended service plans (ESP’s) from the story of the three little pigs. Let me point out that by no means do I mean to compare our customers to the big bad wolf, but if the structure of your sales presentation is not strong, even little huffing and puffing is going to knock that sale down.
- The foundation, or underlying basis of your ESP sales presentation must connect the customer’s need to the solution. The need for an ESP may be a high amount of people using the product, a high amount of use of the product or a past experience with service problems. The solution to that need is an ESP. So a strong foundation for your ESP sales presentation must consist of showing your customers that they have a need and presenting the ESP as a solution to that need.
- The walls or what encloses your ESP sales presentation are the benefits. WIIFM- “what’s in it for me?” applies here. What is the customer going to get out of having purchased an ESP? The benefits of the ESP are peace of mind that they will not have to worry about unexpected service repairs for the term of the ESP. That the ESP is easy to use and provides them with a convenient way to get their product repaired or replaced, and most of all that they are going to save some money if they purchase an ESP and have a service issue. Explaining the benefits to your customers builds strong walls around your ESP sales presentation.
- The roof, or what tops off your ESP presentation is the close: asking for the sale. It is important when asking for the sale that you “personally” recommend the ESP. You’re the expert; let them know you believe in these plans. A strong close, or roof on your presentation is letting your customer know you are keeping their best interests in mind and that you think it is a good idea that they purchase an ESP.
That third fort of mine, stood for years in my backyard, and it went through many a storm without any damage. So remember the next time the big bad wolf comes huffing and puffing on your doorstep and is ready to blow that sale down, the first thing you better look at is how strong you built your ESP sales presentation to withstand the storm.
The Chemistry of Sales
I am so glad I am married now. I remember what it was like being single and going out on that first date. To say that some of those dates were a train wreck is an understatement. I am sure we have all been through those kinds of dates; where half way through dinner you’re actually gauging the distance between your table the exit sign. Thoughts of faking food poisoning and calling for an ambulance to rescue you might start to sound like a very viable option. In dating sometimes that spark is just not there; there is no “chemistry” as they say.
Chemistry in dating is really about perception, the perception of compatibility; is this person right for me? It has nothing to do with fate or luck, pheromones or some Love Potion #9; it is about your body language and the verbal tone of your voice. Over 80% of our communication is not in the words that we say, but in our body language and the tone of our voice. As in dating, “chemistry” in sales is extremely important, it is in this underlying communication that we form a rapport and build trust with our customers.
This “chemistry” as we call it, like any other part of sales, is based on skill. Which means that “chemistry” can be learned. Facial expressions, hand gestures, posture, and tone of voice are all skills that can be developed and improved upon.
Facial Expressions
Smile! A nice smile says; I like you and I am happy to see you. A smile can act as an invitation to your customer that you would like to form a better relationship. Lifting your eyebrows or pressing your lips slightly together is a sign of interest. Most of all don’t be afraid to make eye contact. When you look the customer in the eye it also shows that you are interested in them, and that you can relate to them. Just don’t go overboard, for instance; don’t glare at them, never blinking, never taking your eyes off of them because…well, that’s just creepy.
Hand Gestures
When gesturing keep you hands above your waist, and make your hands purposeful and deliberate. Try not to use the same hand gesture over and over again, excessive hand gestures can make you look nervous and the customer may start to focus on your hands and not on what you’re saying. A slight touch on the shoulder or arm can show the customer that you are confident and comfortable with them. When it comes to handshakes, a good handshake should be firm and match the pressure your customer is giving you. Stay away from the “dead fish” handshake; the limp, clammy handshake only shows that you are nervous and insecure.
Posture
Stand up straight and keep your shoulders back to show confidence. Avoid slouching because it indicates low self-esteem and unease. At times, lean slightly into the customer to indicate interest. A tilt of the head one way or the other shows the customer that you are listening. Stay away from closing your arms in front of yourself; it closes you off from the customer and the customer may think you are bored with them. Putting your arm on your hips can be a sign of aggression, and no one likes an aggressive sales person. For best results, keep your arms casually to the side of your body.
Tone of Voice
Watch the speed at which you speak. Speaking too fast can be a sign of nervousness. Try not to speak in flat tone of voice anduse inflection to emphasis key points of your presentation. Speak from your diaphragm to imbue energy and speak with enthusiasm. Try to sound upbeat and warm, the tone of your voice unveils emotions and you want to elicit positive emotions. It is believed that higher tones and pitches help establish rapport by signaling a more upbeat and happy personality. Remember, “It is not what you say, but how you say it”.
So next time you are practicing your sales presentation, take into account your body language and your tone of voice, as well as the words your are saying. Working on developing your “chemistry” skills with the customer may turn out to be the difference between succeeding or failing in sales. Oh and by the way, if it also helps you to get lucky on that first date, more power to you!
