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Finding
Opportunity In a Tough Economy
A Back to Basics Approach to Successful Retailing in
Tough Times
Every time I talk with a dealer I always try to ask how
they are doing compared to last year or in relation to
their sales goal for last month. What's interesting
lately is that most of the dealers (not all) I speak
with say they are up a couple percent over last year for
January and February. This is exciting because most
dealers tell me that they were up over 20% for January
and February of last year.
So if this is true are we really experiencing tough
times? The answer is yes for many, with national
unemployment at 8.1%, the housing market reeling and the
2.1 Trillion our government recently spent or committed
and the Speaker of the House saying yesterday they might
need to spend more, we must be in bad shape.
What is going on? I think the reality is that our
industry is generally buffered because people will
always need home furnishings and even though CNN and Fox
News continue to scare the heck out of us, we will have
opportunities if we take advantage of them.
So the question remains, how can we maximize our
opportunities during these tough times?
The solution is to set up an automated and consistent
system to work the customers that have been in before
and make sure we can follow-up with the customers who
shop and do not buy the first time.
My friend Joe Capillo once told me that the typical
below average salesperson has a closing ratio of less
than 12% but if he or she can bring that same customer
back on the same project, that same below average
salespersons closing ratio percentage goes over 70%.
Our software has been verifying this number and I can
easily prove this truth. Just look at your Performance
Summary Report and sort by all salespeople to see what
your individual percentages are. It is even more
interesting if you analyze this report for longer
periods of time like the last 12 months. Then check out
the Comparisons report as well to see what your Upboard
Closing Ratios are, (what your salespeople have entered,
compared to your traffic count. If you have a big
disparity you might be losing sales because you are
understaffed and your salespeople can't talk to
everyone, or your salespeople are not entering many of
the opportunities they speak with and don't sell?
Ray , as you know, the real question is: how do we get
more people back into the store after they have shopped
and did not purchase the first time?
Answer: Quality follow-up from the salesperson with
management that can easily view this activity so you
can more quickly spot who is not trying and kick them
into gear.
The IGE (Information Gathering Efficiency) report tells
you who is doing a good job with these unsold customers
and which individual salesperson needs help right now.
I also wanted to say to everyone who starts off with the
program, it surprises me that some dealers drop off and
go back to less than 30% (Capture of Unsold Customer
Info). If this occurs it is purely top managements
fault. Without focus and middle management knowing that
you are dedicated to excellence in this performance, you
can't keep IGE over 50%. If you don't address a slacker
immediately everyone else will eventually follow. To get
it started again you have to almost start over. It's
really about turning a new skill into a basic
fundamental habit. Initially it's like a tug of war.
The side that can pick up momentum first and keeps
it...always wins.
The solution is hard at first (if you don't have this
quality habit engrained on your sales floor) but it also
might be the most worthwhile thing you could ever do on
your sales floor. It is as simple as insuring that your
sales team has all the tools to capture the customer
information every time possible. This requires a
professional guest card (within easy reach) every time
and the incentives for both the salesperson (to get it)
and the customer (to give it). The goal should be that
50% of the customers that don't purchase should leave
their info. They do this for a couple reasons. #1.
They like and trust the salesperson they are working
with and believe there is a fair chance they will be
back to purchase. 2. They have an extra incentive to
leave their information (like a drawing) and 3. Your
salespeople know that (they are not wasting their time)
if they get this very valuable info that follow-up will
automatically be done with a personalized letter or
email (As you know TRAX does this). Is your system
printing a thank you for unsold customer? If not call
or email me today.
Next we must insure the letters you are sending are
absolutely excellent. If you send me a copy I will
proof read it and provide suggestions and comparisons
that other dealers have used with success.
Finally, every letter that you send must have a hand
written personal note from each salesperson at the
bottom. If you are just getting started you must proof
read these PS's so that you know you can trust each
salesperson to send a professional personal note. You
only need to do this for a few days but it is imperative
that you see what is going out on the first few
mailings. The reason for this is, as you know, many on
our sales staffs write like chickens (you know who you
are) and they need to slow down. The content also needs
to be brief, clear and in the first sentence, not
product related. The ideal is a personal note something
like; Mary, I really enjoyed meeting you and discussing
designer shoes with you. Your children Sarah and Jessie
were delightful and I look forward to seeing you next
Friday when you bring your Hubby Frank in.
The more personal the note the more effective the
follow-up! I always ask a question when I see someone
groan because of the fear sometimes of getting
salespeople to commit to doing this process because it
will require extra effort. The question is: How many
times have you received a nice personally crafted thank
you letter from a company you have not purchased from
yet? The answer is almost always NEVER... What do you
think you would feel if you received a personal letter
like this from a company you had shopped with? Do you
think it would influence your decision to buy? You bet
it would...
Here is a link with some additional ideas that you might
enjoy. Another free service we also provide at TRAX is
customizing your Guest Card so that it perfectly matches
your CRM/UP-board. Send me an email request and we will
set this up for you.
Good Luck, Good Selling and Make Your Traffic Count!
Sincerely,
Dave
PS If you are happy with TRAX and know a friend we can
assist, please forward us... |
