Sales Tips: Residential vs. Commercial Security
The world of designing, selling and installing security systems is obviously quite complex. With so many products and services to choose from, you somehow have to convince the customer that your proposal is superior to anything they can find from a competing company or worse — a DIY kit.
It can be difficult to close the deal, and it requires fluctuating tactics that range based on the type of customer you are working with. Aside from the many variables that exist with a residential customer, when you start dealing with commercial customers, it can become overwhelming.
Our company has been dealing with both residential and commercial customers over the past decade, and we have some tips and tricks to help you turn an opportunity in both areas into a closed deal.
Residential Customers
The Phone Call: When dealing with homeowners, it is best to start a list of sales tips at the inception of the lead — the phone call. You want to have a clear understanding of the lead and find out if they are just fishing around for quotes, or if they are serious about securing their home. There is a list of questions you should go through to ensure you have enough information on the lead. This material is important to help you determine if this phone call will turn into a possible opportunity, or if it is just a waste of your free time.
When a call comes in, establish who you are speaking with, and if they are the one who will be making the final decision to close the deal. You do not want to put all of your time and education into working with the wife if the husband is the one who will veto your proposal based strictly on the price. It is imperative to have the final decision-maker be your main contact so that person has a thorough understanding of your proposal in the end.
Get the Details: Next, ask what they are looking to get for their home. This is an obvious question, but obtaining the micro-details is a must to get a better understanding of whether or not they are worth the time. Find out what type of security system they are looking for (cameras, alarm system, etc.), and then start working out the details. An example may be the amount of security cameras they need — if someone asks for 16 cameras, they probably have a large home, and most likely will have the budget to afford such a system. If the lead only needs 1 or 2 cameras, it is likely that the lead tends to go cold after they see what it will cost to acquire a quality system.
Don’t Waste Time: Try to gauge their knowledge on the type of system they are looking for. If you have to take hours of to educate the lead, it is unlikely that it will progress into a closed opportunity. If they do not have a basic knowledge of the product, do not spend hours and hours to teach them, as they will likely end up rejecting any proposal that costs more than a DIY kit. It is not worth the battle to show them every detail to have them say, “I can go buy it at the store and install it myself for less than half the price of this proposal. Thanks for your time.”
Find out the Motivation and Budget: The fear that exists for leads who have had a recent security incident is a huge motivator. Always try and find out during your initial phone call if they have had a recent incident at their home or in the neighborhood. This is a key indicator —if their interest level is at an all-time high, they are ready to do what it takes to close the deal for their own safety.
Finding out a lead’s budget will let you know if they are realistically looking for quality services, or if they are trying to skimp by with the cheapest option available. For the most part, there will not be many residents with a budget that will bring in a large profit margin for your company. Try and keep the resident projects to a minimum, and only focus on leads that have motivation, education and a decent budget.
Commercial Customers
The Phone Call: When it comes to selling to commercial customers, the phone conversation is going to be very similar to residential customers. It is still important to find out who is in charge, but in many cases, the main contact will not be the primary decision-maker. Larger companies typically have board members that get together to decide on how the budget is distributed. They tend to not have the time to meet with technicians for appointments, so they have someone like an assistant in charge of getting all of the information. They then relay the proposal for review by the board. In this situation, it can be hard to make a good impression that will close the deal.
The Budget: It is very important to know what budget they are working with. You want to find a way to impress the decision-makers, and throwing a big fancy proposal is not going to sit well with them if it is out of their price range. Taking the time to design the perfect plan that is in budget and includes everything they asked for can also be impossible at times as well; thus you need to inquire about their priorities.
What do They Need? It is key to know what they are looking to secure, and their main reasons for that choice. If they are interested in security cameras and access control, but their budget cannot afford both, then their reasoning for each system can help you determine which system to give them an estimate on. If they need the security system because they have constant incidents of vandalism, and they need the access control because they think it would be cool to track their employees who enter and exit, it would be wise to see the vandalism as the main priority.
Build a Rapport: The next important step here is getting to know your client. Find out how big the property is, how many employees, the coverage needed, etc. Budget and priorities are both an extension of this step, but have more weight than anything else. Beyond the basic understandings of the property, you also need to find out what knowledge the customer has on the products. If they have a scarce interest in the project, it can be difficult to find a definitive selling point, but if they already have the brand of camera picked out, then you will have an easier time relating to the customer. If there is a particular type of camera they are interested in or a specific brand that they really like and have good experience with, you can hone in on that to help close the deal.
With all of your information obtained, the greatest selling point will be in the proposal you design. If you can come up with a design that is in their budget, provides them with their highest priorities, and has quality products that they are invested in, you will be able to impress your client.
Bidding Tips: Competitors can cause your company some headache when you are all bidding on the same quote. Typically, a company can have 10 integrators bidding on a project, sometimes more. You may feel uncomfortable asking the customer how many people you are bidding against, but it really is okay to ask. You have a right to find out what the odds are against you winning the bid. The only information you will most likely not obtain is the price of the competitor’s quotes. At the very least, you need to have a basic understanding of what you are going against to ensure your bid is competitive.
Follow-up and Flexibility: After you send the proposal, make sure to find out when it is best to follow up. You also need to keep track of all of your interactions with the customer as it can take time for their decisions to come through. You do not want to forget or lose any important details. It is highly recommended to use a CRM to save and keep notes on all pending clients. Setting reminders to call after a board meeting or saving emails with pertinent information will show the customer you are organized and on top of their project.
Keep up with your follow ups to let them know you are still thinking about their company, and let them know you are there for them if they have any questions or concerns. On many occasions, they will come back to you after a board meeting, and ask if there is a way to cut some costs, or to break it up into phases to make it more affordable to them. They can look to expand as more money comes in, and they will continue to use your company to complete the project. Flexibility can be a key ingredient to closing the deal, and locking in the sale.
Samantha Young is Vice President of Operations for Smart Security Camera, which has been designing, installing and servicing high-end security and automation systems since 2004 out of South Florida's Tri-County area.
