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Illuminate Universe has partnered with Porsche to create the virtual learning experience “The Art of Mastering Luxury Sales”. As a community leader with Illuminate Universe, I was able to take part in and complete this work-integrated learning experience and leadership journey. If you are interested or find yourself working in any level of sales, especially higher ticket items like the products at Porsche, this journey is definitely worth your time. This learning experience certainly expanded my knowledge of the Porsche brand, but reviewing my learning, my biggest takeaways have to be in regard to luxury sales techniques like creating persuasive presentations and fostering long-term customer loyalty, trade appraisals within this market, and mastering challenging customer interactions.
The journey begins by going over the psychology behind luxury purchases, as it is critical to understand what factors lead to people desiring these products in order to effectively sell them. There are 6 key factors behind what drives someone to want to purchase a luxury car like a Porsche:
The high perceived value these luxury products possess.
The ability to use the product as a symbol of status.
A desire for self-affirmation that is interconnected to the product.
A genuine passion for the product.
An interest in the entire consumer experience that the product offers.
The superior build quality associated with the product's premium pricing.
The learning experience then goes on to discuss Porsche as a brand, more specifically its history, values, and a brief overview of the product line. Founded in 1931, the company initially focused on providing design and engineering services to other manufacturers. It wasn’t until 1948 that Porsche developed their first branded sports car, ushering in a new era of automobiles with the 356 series that became instantly recognizable and popular among sports car enthusiasts. Over time, the brand began to expand its product offerings to serve a larger base of customers with mid-engine cars such as the Boxster and sedans like the Panamera, which demonstrated the company’s ability to innovate and adapt to changing market demands. Today, the company’s line-up consists of sports cars such as the 911, 718 Boxster, and Cayman, as well as SUVs like the Cayenne and Macan, as well as 2 sedans, the Panamera and the all-electric Taycan.
When looking at selling luxury items, specifically a Porsche, it is critical to not only understand the product line, but the comparative analysis of the line against its competition. The first way to do so is to look at depreciation value, which tells us that Porsche’s cars depreciate significantly less over time than rival brands like BMW or Audi. We can also look at aspects like performance, driving experience, quality, and craftsmanship which are all unparalleled, yet still subjective in the eyes of a prospective buyer.
Once we have a solid understanding of these topics, we can begin to learn about the sales techniques and strategies that go into selling a Porsche. The first step that comes before curating a sales pitch or presentation, is to identify the type of personality we are dealing with. The personalities of prospective luxury product customers are generally broken down into 7 types:
The assertive/confident customer who will have direct eye contact and ask questions directly.
The analytical and more cautious customer who will greet you with a more formal handshake and spend a lot of time comparing different models.
The expressive customer who will be friendly and engage in small talk while expressing lots of emotions throughout the process.
The amiable customer who will have a relaxed posture, will avoid conflict and require more reassurance throughout the process.
The economical customer who will ask questions about fuel efficiency, cost of ownership, and long-term value.
The enthusiast customer will have extensive knowledge of the brand and may seek more high-performance models and appreciate the special trims of the car.
The status-oriented customer will wear more upscale clothing and will ask more questions about the exclusive features/customization options throughout the process.
It is important to note that these are just guidelines as every client is unique and will likely be a combination of one or two of these personality types. Active listening and engaging in conversation are key to adapting your approach to better meet the customer’s needs.
Once we know what type of customer we are dealing with, we can start to tailor our presentation to address these specific needs. This is best done through popular sales techniques like storytelling and using powerful words that sell. Two power words that I believe are the most effective when building a connection with a client are:
We: this word is used to enhance cooperation and let the customer know that we are forming a mutually beneficial relationship.
You: reminding the client that you are working to address their personal needs is best accomplished by using this word throughout the presentation.
Other important techniques I picked up on through this learning experience are to demonstrate exclusivity as much as possible, rely on facts/statistics, and always offer an unforgettable test drive experience as a way to seal the deal.
Moving on, let’s look at the most significant part of any sales process, closing. Regardless of the product being sold the following dimensions of a sale remain constant: people, problems, and process. People refer to the understanding of all the individuals involved, including yourself, who have concerns, desires, and needs.
The problems aspect refers more so to problem solving, which consists of a simple 4-step process:
Identify the problem: carefully observe the situation to make sure that you are not jumping to conclusions and can find the best way to find a solution.
Think laterally: consider alternative approaches that may not be apparent at first. Break down a complex problem by exploring different viewpoints.
Analyze the problem: gather relevant data, conduct research, and evaluate potential options so that you can make an informed decision.
Learn from the experience: assess the outcomes and evaluate the effectiveness of your approach. Be sure to remember what needs to be worked on.
A key process when closing a deal is anticipating and handling objections that arise. Thorough preparation is key to being able to anticipate objections that come up in the close. Maintaining a positive attitude and ensuring effective communication is the best way to handle any objections. Here is an example of a common objection that the learning experience went over and how to respond to it:
Objection: “This product is too expensive/overpriced!”
Response: “I understand that price is an important consideration for you.” You can then go on to showcase the benefits and the value the products provide. You can also conduct a brief comparative analysis to justify the price point. End by stating, “We can explore creative strategies to fit the purchase into your budget and discuss flexible payment options.”
If you have been following the guide, you would have taken note that this is an economical customer and would have anticipated this objection as a sales representative. I also utilize powerful words like “we” when handling the objection.
Once a sale is completed, it is essential to continue relationship building so that you can foster long-term customer loyalty. Emotional intelligence (EI) is a powerful sales tool that enables a luxury item seller to connect with buyers on a more personal level, aiding the development of this relationship.
After going over the process of selling a luxury product like a Porsche, the learning experience goes on to discuss luxury trade appraisals. I learned that the three most prominent appraisal guidelines are under the Canadian Black Book, Red Book, and Kelley’s Blue Book. The Red Book is the most useful in cases of vehicles as it is more detailed and favored by insurance companies to determine the product's worth and insurance policy. I was also able to learn more about trade-ins and how they actually create a win-win situation as they generate customer satisfaction through financial benefits and uphold the brand value of a luxury brand like Porsche. Depreciation is another aspect to be considered when selling luxury items. For Porsche, the most common factors of depreciation are mileage, condition, and age. An interesting fact that I picked up on is that the average car depreciates over 58% of its original value within 3 years of ownership, whereas a Porsche usually loses 25% of its value at the same time. These reduced depreciation rates are accredited to the brand's demand and product reliability.
This work-integrated learning experience ends off with multiple role-playing exercises geared toward mastering challenging customer interactions that I found to be incredibly useful. To conclude, Illuminate Universe and Porsche’s “The Art of Mastering Luxury Sales”, virtual experience has better informed me about the world of selling high-priced items and showed me just how much thought, preparation, and skill is needed to master this art.
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