I remember being in a presentation where the speaker told us that the average retail store only closes two out of every seven customers, and that five out of seven walk away without buying. As I was researching for a new presentation I did a couple weeks ago at the Independent Garden Center, I came across some numbers that were disheartening.
That conversion rate is getting worse.
According to ShopVisible, LLC conversion rates for typical brick & mortar stores are now only 20%, two out of ten instead of two out of seven. (Online is less than 2%.) Eight out of ten customers are walking out of your store having said, “No.”
The scary thing is that at least eight out of ten walked through your door hoping to say, “Yes,” yet somehow you let them down. Why do I believe that many wanted to say Yes? Most independent retailers are destination stores. You don’t sell milk, eggs, and bread. You don’t sell diapers and formula. No one had to walk through your doors. They chose to walk through your doors, hoping to find a solution to a problem or be enticed to buy something they didn’t yet know they needed.
You let them down.
You let them say No and didn’t take the steps necessary to turn it into the Yes they wanted to say.
I have just published another FREE eBook in the Free Resources section of my website called How to Push for Yes (Without Being Pushy). If you want to see your conversion rate and sales go up, you’ll want to download and read this eBook several times. If you want to see more happy, satisfied customers walking out your door, you’ll want to download and read this eBook several times.
If you want to teach these principles and ideas to your front line sales staff, you’ll want to read the rest of today’s blog post.
(Hint: download and read How to Push for Yes (Without Being Pushy) first. It will help the rest of this post make sense.)
NO, I DON’T WANT IT
To overcome this objection you have to go back to trying to solve the customer’s problem. You need to ask more questions and get to the heart of the matter. The QUESTION GAME from The Meet and Greet is a great place to start.
Another game is the PARROT GAME. The goal of this game is to work on listening skills. Pair off your team and have them each tell a fun story about themselves to the other person. Then get back together as a group and have the person who heard the story relate it back to the group. Do it a second time, but this time have the person hearing the story repeat it back line by line as it is being told. When they return to the group a second time, they find their memory of the story and their accuracy of retelling it both go up dramatically.
NO, I CAN’T AFFORD IT
Often the reason for this objection is the customer doesn’t see how the item will truly Benefit her. Playing the DUTCH AUCTION from Assumptive Selling is one way to get your staff more attuned to offering Benefits instead of Features.
Another activity is to have the staff identify the items that cause customers to balk at the price the most. Then work as a team to find ways to raise the Perceived Worth of the item either through better signage, better displays, or simply coming up with better Benefits.
NO, I CAN’T MAKE THE CALL
Since Analysis Paralysis is often the culprit for this particular No, play the BEST SOLUTION GAME from The Meet and Greet. The better you solve the problem, the more likely she will justify the purchase (and ask for forgiveness instead of permission).
NO, NOT RIGHT NOW
Once again, the customer is not seeing the Benefit of owning the product. Work with your staff to find the Benefits that truly speak to the customer for all of your top products. (Read the post Closing the Sale with Assumptive Selling.)
NO, NOT FROM YOU
One big reason for this No is the fear a customer has of paying too much. She is going to check it out in your store and buy it cheaper online (in theory). We call this Showrooming. If this is the No you are facing, you’ll want to download the FREE eBook Selling in a Showrooming World that talks about the two types of customers, their motivations, and how to appeal to each one based on their needs and desires.
THE SILENCE GAME
Here is a simple activity you can do with your staff that serves double-duty. While discussing any of the topics from the past three blogs, ask your staff an open-ended question. Let them answer it freely without having to raise their hands. When they have answered it, don’t say anything. Just sit intently quiet, staring at them for one minute. Count to sixty in your head if you need to. At some point within that minute someone will start to talk again and the discussion will continue. Afterward explain the concept of White Space and show them how easily it worked. You’ll not only get a deeper discussion from the second go-around, you’ll be able to make the point about letting the customer talk to really get to the heart of the matter.
What can you give away for free without expectation of return? Show them the Johnny the Bagger video and then ask them for ideas. This might take two meetings before you get really good ideas worth implementing.
Recognizing and embracing the No is the path to Yes. When you empower your front line sales staff to push for that Yes in the ways described in the eBook How to Push for Yes (Without Being Pushy) you’ll see your conversion rate rise. Think what would happen if you consistently turned just one of those eight Nos into a Yes. Yeah, that’s growth we all could live with.
PS Here’s a little food for thought … Most customers feel good when they walk out of a store having made a purchase. Most customers feel bad when they walk out of a store and haven’t made a purchase. Wouldn’t you rather have happy customers who feel good? That’s why you want to turn that No into a Yes. It is as much for them as it is for you.
PPS I have two more new FREE eBooks I’ll be publishing in the next few days. I’ll have the training idea blogs for you at some point next week. Happy Labor Day!