©2013 liz kislik associates llc increasing average order value april 2013 operations summit liz...
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©2013 Liz Kislik Associates LLC ©2013 Liz Kislik Associates LLC ©2013 Liz Kislik Associates LLC
Increasing Average Order Value
April 2013
Operations Summit
Liz Kislik, President, Liz Kislik Associates
©2013 Liz Kislik Associates LLC 222 ©2013 Liz Kislik Associates LLC ©2013 Liz Kislik Associates LLC
What We’ll Cover Today
• Customers relationship and expectations
• What and how to offer
• How to work with reps
• Management, measurement, motivation
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It’s Harder Than It Used to Be
Decision makers are over-trained
Only testing will tell you
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The more you ask from your customers,
the greater your obligation to understand them.
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The Role of Impulse
Consumers do pre-call planning
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Customers Can’t Stand Being…
• Pushed
• Slicked
• Taken for granted
• Treated mechanically
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Understanding “No”
When does it occur in the call?
What is it a response to?
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Make Each Customer Special
• Customer history counts
• Phone only vs. multichannel
• Clear value proposition
• Clear service positioning
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Confirm Brand Image and Value
• Sell what you sell
• Reps must be credible
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Preparing Offers
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Picking Product
• Easy to picture and describe
• Low rate of return
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General Appeal vs. Customized Choices• Enhances value of
base product
• Hard to find
• Related to order or customer
• “Collaborative filtering”
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Price Points
• Consider 1/3 of order total or item
• Not higher than highest single line
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To Discount or Not to Discount
• Avoid “training” customers
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Discount Rationales
• Discount eligibility• Order size• Purchase history
• Our mistake; your benefit• Overstocks and liquidations• Manufacturing/purchasing efficiency
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Shipping & Handling
• Barrier to purchase
• Seems like manipulation
• Make S&H the “special”
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Offer Structures That Work
• Permission, not Product
• Product A vs. B
• Diminishing Value
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Getting Your Reps on Board
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It’s Ok to Sell AND
100% Offering is Fiction
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Reasons Not to Offer
• Product?
• Customer history?
• Customer circumstance?
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When to Call it Quits
• Not until “No”
• Maximum of two
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Helping Customers “See”
• Bring customers to the page or screen
• Put people in the picture
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Coaching after Observation
• Individual
• Concrete
• Include language practice
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The Supervisor’s Role(s)
• Trainer?
• Sales Coach?
• Enforcer?
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Training Tips
• Group by skill or tenure
• Have the product present
• Practice language
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Management, Measurement,
and Pay
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Typical Organizational Structures• Ops in charge;
Merchants supply produce
• Merchants in charge; Ops implements
• Sales/Marketing in charge
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Systems Requirements for Reps
• Offer prompts
• Flags for “no offer”
• Detailed product info
• Subtotals
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Components of Metrics and Tracking
Offers
Orders
Items
Dollars
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Reporting Rates and Trends
Conversion
Returns
By subgroup
0
1
2
3
4
5
6
Series 1Series 2Series 3
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Setting Achievable Targets
• Reality testing
• Raise the bar over time
• Quantity plus quality
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Paying for Performance
• Variable comp complicates life
• Set baseline first
• Choose incentive targets carefully
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Pay that Motivates
• Is easy to calculate
• Has rhythm and pace
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Things to Watch
• Stockouts
• Skipping offers during high volume periods
• Gaming the system
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Successful selling and
lifetime value rely on
good relationships
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Email: [email protected]
Twitter: @LizKislik
Newsletter: Workplace Wisdomhttp://lizkislik.com/Subscribe.aspx
Blog: Workplace Wisdomhttp://lizkislik.com/blog
Phone: 516.568.2932