April 15, 2010
How Are You Handling Telephone Shoppers?
Your Telephone Staff Make All the Difference, Says J.D. Power
He can be an aggravation, or a prime opportunity: the shopper who calls numerous stores to get the best possible price. And according to Chris Denove, vice president of operational research at J.D. Power and Associates, you could be making an expensive error in not putting your best salespeople on the line when he calls.
You’re a click away from losing that customer completely,” Denove says. “The salesperson needs to do more assessment and fact-finding before he makes a recommendation. Spend sixty seconds fi nding out what the ‘hot button’ is, and then tailor the recommendation to the needs of the customer. Based on our research, that simply isn’t happening enough.”
What are your employees recommending?
A J.D. Power survey made more than 4,000 anonymous calls to 2,100 different U.S. retail tire locations during 2008 and 2009. In each case, the request was identical: same vehicle, same questions. The variable was in the replies, Denove says: Les Schwab, a western U.S. retailer, was the highest-priced at $687 for four tires, followed by Sears at $627. Not surprisingly, Wal-Mart was the lowest, at $467.
“It doesn’t necessarily mean that Sears and Les Schwab are tire-for-tire more expensive,” Denove says. “It means their salespeople are gravitating toward recommending higher-line tires, and that’s where they need to be careful. If these salespeople would take a little more time and talk to their customers, you’d see a narrower price range. In the case of Les Schwab, it was doubly dangerous because the brand they most recommended was less well-recognized.”
Focusing on attributes
The survey found that salespeople tend to focus on specifi c attributes: for example, those recommending Michelin most often stressed quiet ride and fuel efficiency, while those endorsing Goodyear focused on price, value, and special promotions.
“We don’t have an opinion on whether it’s good or bad to recommend a tire on one attribute or another, but what is important is that the salesperson be able to easily and quickly articulate why they’re recommending a particular brand,” Denove says. “Customers don’t want a salesperson who doesn’t seem knowledgeable.”
The customer may just want a quick quote, but “a salesperson needs to be a salesperson, not just an order clerk,” Denove says. He adds that this is the reason why tire shops consistently outperform mass-marketers such as Wal-Mart in J.D. Power surveys. Your employee needs to take the time to determine what’s important— safety, fuel effi ciency, performance, long tread life or whatever—and tailor the tire to the customer’s needs, not just to his wallet.
Finish with a “call to action”
How your employee ends the call is vitally important as well. Following up immediately with a “call to action” can make or break the sale—trying to set up an appointment, or mentioning that sales may end soon. One retailer that consistently did this rated very well, even though its quotes were typically $100 over its closest competitor. Naturally, a straight quote followed by “thanks for calling, goodbye” is something your callers should never hear.
Sell your telephone callers short, and you’re selling your shop short. Price shoppers shouldn’t be considered an annoyance, but an opportunity to bring in a new customer—and you won’t do that unless your employees do everything they can to win him over.
“There’s a reason that great salespeople make a lot of money: they’re worth it,” Denove says. “The people dealing with these people over the phone can’t just be clerks. They need to be salespeople.”
| 
Jil McIntosh
