| Why Not Try a Fallback Offer? |
Why Not Try A Fallback Offer?
If your call center makes selling attempts in any capacity, Fallback Offers can significantly
increase your total sales and your average revenue per sale. Fallback Offers are not new, but
few call centers maximize this important sales tool. By implementing the ideas in this article,
your center can be well on its way to your best sales year ever.
What is a Fallback Offer?
A Fallback Offer is a second sales offer that follows an initial offer. When a caller rejects the
initial sales offer, the telephone associate makes a second offer that is usually smaller in scope
and reduced in price. For example, an airline sales associate may offer the “Premium Travel
Package,” which includes first-class seating, upgraded meals and vouchers to various events. If
rejected, the associate may make a Fallback Offer on a lower-priced package that doesn’t
include the upgraded meals, and may have only business-class seats.
Why Do Fallback Offers Work So Well?
Fallback Offers work because people instinctively feel like they are “getting a deal.” The offer
itself would not be so appealing if it were a first offer. Because, however, callers can compare it
to the original, more comprehensive (and often more pricey) offer, this one seems like a steal. A
Fallback Offer that costs $79.00 seems excellent when compared to an initial offer of $149.50.
Most people state that they have a very hard time saying no to a Fallback Offer because “it just
sounds too good to pass up.”
Fallback Offers are Easy
The best thing about Fallback Offers is that they require little if any skill improvement to use.
Even a poorly-attempted Fallback Offer will work some of the time, which is better than just
letting the caller go after a single offer has been rejected. When we consult with call centers, the
first thing we will recommend is that telephone associates start making Fallback Offers.
Telephone associates like Fallback Offers because they are easier to make than to try
overcoming the caller’s objection to the initial offer.
Targeted Fallback Offers
One way to increase the effectiveness of a Fallback Offer is to listen to why the caller has
rejected the initial sales offer. A caller may say, “Oh, that Premium Cable Package isn’t for me. It
has so many movie channels. We don’t watch that many movies.” When callers explain why they
are rejecting the initial offer, the telephone associate should formulate the Fallback Offer based
on this information. In this example, the telephone associate can offer a package that includes
fewer movie channels, rather than saying something unreasonable like, “Well, you really ought
to watch more movies, you know.”
Guidelines About the Initial Offer
Most sales managers want their telephone associates to take a top-down offer approach. This
means that the first offer should be the most expensive one, with the best features. If your center
does not offer its best products, callers will not even have a chance to buy them. Additionally,
Fallback Offers work brilliantly with this approach. If callers reject the higher offer, the Fallback
Offer will often generate a sale. When telephone sales people begin with their lower-priced
packages, Fallback Offers will have little or no impact.
Implement a Fallback Offer Strategy
Centers with new or hesitant telephone associates should implement an “Offer Strategy.” An
Offer Strategy identifies the best Fallback Offer for each of your initial product offers. Telephone
associates should place this offer strategy in their cubicles so they can see it when they are
speaking to callers. An offer strategy is particularly important for centers that have dozens of
different products or product lines.
If your center has veteran sales people that can easily choose a Fallback Offer based on the
caller’s reason for rejecting the initial offer, no offer strategy is necessary. Just tell your
telephone associates to listen for why the caller is saying, “No.” Veteran telephone associates
should also feel comfortable asking the caller why he/she is rejecting the initial offer. A question
that won’t put the caller on the defensive is, “What is it about this offer that you feel won’t meet
your needs?”
What About Trying to Handle the Objection Instead of Falling Back to a Second Offer?
From a sales revenue perspective, this makes the most sense. We strongly recommend trying
to maintain the original offer. Even a single attempt to overcome the caller’s objection will result
in some additional sales of the higher-priced offer. If the caller says “No” again, telephone
associates can still make a Fallback Offer.
Click Here to read more about training in Fallback Offers and other telephone sales skills.
CLICK HERE TO READ MORE CALL CENTER ARTICLES
Article by FCTC
© 2001
All Rights Reserved
If your call center makes selling attempts in any capacity, Fallback Offers can significantly
increase your total sales and your average revenue per sale. Fallback Offers are not new, but
few call centers maximize this important sales tool. By implementing the ideas in this article,
your center can be well on its way to your best sales year ever.
What is a Fallback Offer?
A Fallback Offer is a second sales offer that follows an initial offer. When a caller rejects the
initial sales offer, the telephone associate makes a second offer that is usually smaller in scope
and reduced in price. For example, an airline sales associate may offer the “Premium Travel
Package,” which includes first-class seating, upgraded meals and vouchers to various events. If
rejected, the associate may make a Fallback Offer on a lower-priced package that doesn’t
include the upgraded meals, and may have only business-class seats.
Why Do Fallback Offers Work So Well?
Fallback Offers work because people instinctively feel like they are “getting a deal.” The offer
itself would not be so appealing if it were a first offer. Because, however, callers can compare it
to the original, more comprehensive (and often more pricey) offer, this one seems like a steal. A
Fallback Offer that costs $79.00 seems excellent when compared to an initial offer of $149.50.
Most people state that they have a very hard time saying no to a Fallback Offer because “it just
sounds too good to pass up.”
Fallback Offers are Easy
The best thing about Fallback Offers is that they require little if any skill improvement to use.
Even a poorly-attempted Fallback Offer will work some of the time, which is better than just
letting the caller go after a single offer has been rejected. When we consult with call centers, the
first thing we will recommend is that telephone associates start making Fallback Offers.
Telephone associates like Fallback Offers because they are easier to make than to try
overcoming the caller’s objection to the initial offer.
Targeted Fallback Offers
One way to increase the effectiveness of a Fallback Offer is to listen to why the caller has
rejected the initial sales offer. A caller may say, “Oh, that Premium Cable Package isn’t for me. It
has so many movie channels. We don’t watch that many movies.” When callers explain why they
are rejecting the initial offer, the telephone associate should formulate the Fallback Offer based
on this information. In this example, the telephone associate can offer a package that includes
fewer movie channels, rather than saying something unreasonable like, “Well, you really ought
to watch more movies, you know.”
Guidelines About the Initial Offer
Most sales managers want their telephone associates to take a top-down offer approach. This
means that the first offer should be the most expensive one, with the best features. If your center
does not offer its best products, callers will not even have a chance to buy them. Additionally,
Fallback Offers work brilliantly with this approach. If callers reject the higher offer, the Fallback
Offer will often generate a sale. When telephone sales people begin with their lower-priced
packages, Fallback Offers will have little or no impact.
Implement a Fallback Offer Strategy
Centers with new or hesitant telephone associates should implement an “Offer Strategy.” An
Offer Strategy identifies the best Fallback Offer for each of your initial product offers. Telephone
associates should place this offer strategy in their cubicles so they can see it when they are
speaking to callers. An offer strategy is particularly important for centers that have dozens of
different products or product lines.
If your center has veteran sales people that can easily choose a Fallback Offer based on the
caller’s reason for rejecting the initial offer, no offer strategy is necessary. Just tell your
telephone associates to listen for why the caller is saying, “No.” Veteran telephone associates
should also feel comfortable asking the caller why he/she is rejecting the initial offer. A question
that won’t put the caller on the defensive is, “What is it about this offer that you feel won’t meet
your needs?”
What About Trying to Handle the Objection Instead of Falling Back to a Second Offer?
From a sales revenue perspective, this makes the most sense. We strongly recommend trying
to maintain the original offer. Even a single attempt to overcome the caller’s objection will result
in some additional sales of the higher-priced offer. If the caller says “No” again, telephone
associates can still make a Fallback Offer.
Click Here to read more about training in Fallback Offers and other telephone sales skills.
CLICK HERE TO READ MORE CALL CENTER ARTICLES
Article by FCTC
© 2001
All Rights Reserved
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training, positive power and influence program, PPI, presentation skills training, meeting management training,
interpersonal skills, training, business training, harvard, positive power and influence, communication, change
management, management training, positive negotiation, negotiation skills, presentation skills, meeting management,
effective meetings, influence without authority, situation management, train the trainer, customer service, conversation,
skill building, experiential training, experiential, interactive training, call center coaching, call center training, contact
center training, contact center coaching, telephone sales, e-mail communication, email communication, customer
service training, technical support training, field rep training, customer service for field reps, customer service for
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support, getting to the heart of email, the other side of service
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