Make Your Next Best Offer

Decide what type of product or service your customer will want before he himself knows. This way, after he completes the purchase of one item, you can guide him toward the best selection in the next category. Researchers at Babson College, Citibank, and Deloitte Consulting LLP refer to this as the salesperson’s skill at identifying the NBO—Next Best Offer.
     They find the timing of the NBO as well as the NBO item itself is determined by more than what will satisfy the shopper’s needs. As important is what will serve the retailer’s goals. If the goal is to increase the current sale, the NBO might be made immediately and be for an item stocked close to the one just selected. If the goal is to add on sales by tempting the shopper to return to the store soon and often, the NBO might involve giving the customer a coupon for a discount on a specified item on her next visit.
     The more you know about the customer, the better you’ll be at NBOs. On the other hand, you must be selective in your information gathering. Ask too much and you’ll frighten the shopper. Spend too much time asking questions and you’ll irritate the shopper.
     Something too often overlooked in analyzing the data is that shoppers’ preferences move in cycles. Researchers at University of Utah and University of Iowa find that monthly paycheck cycles affect not only how much money people will spend on merchandise, but also the types of merchandise they’ll find most attractive.
     In the days soon after receiving a paycheck, consumers with full-time jobs become more interested in products and services which help them gain more than what they currently have. This is a time for you to suggest the latest technologies and the toothpaste claiming to whiten teeth.
     Then as the days after the paycheck pass, the person becomes progressively more attracted to products and services which help them avoid losing what they have now. They'll become more interested in nostalgia items, familiar brands, and the cavity-fighter toothpaste. The researchers determined that this cycling was not due to a declining checking account balance or to the pricing of different types of products.
     The retailer using NBOs should also cycle, according to the Babson/Citibank/ Deloitte researchers. The best salespeople learn from the results of past NBOs, building their skills for the next round with the consumer.

Click below for more:
Predict Consumer Preferences by Asking Why
Merchandise to Fit Purchasing Cycles