Vital Stats
- Name: Michael van Straaten, 57
- Designation: CEO, Verimark
- Sales Organisation & Distribution: Products are still marketed through DRTV, but can be purchased in the stores of most of the large retail groups, as well as through Verimark-branded stores located throughout the country and in the major shopping centres.
- Offering: Innovative products in health & beauty, homeware, cookware, cleaning, DIY, automotive, toys and exercise & fitness.
- Career: After completing his articles, Michael joined his brother and a 4-year old Verimark with an annual turnover of R1 million, as financial director and 50% shareholder. Together they grew the business until Michael became the sole shareholder and CEO 18 years ago. Verimark was listed on the JSE in 2005. In the past financial year it delivered its best sales performance in its 34-year history, with sales totalling R461,7 million and 144,1% growth in profit before tax to R49,3 million.
What is the sales process for the Direct Response Television (DRTV) in South Africa?
Verimark pioneered Direct Response Television (DRTV) selling in South Africa. Initially, before we had the extensive retail network that we have today, DRTV was responsible for generating 90% of our sales.
The key was to take the viewer from a position of total ignorance about the product, to a buying position where they would pick up the phone and give their credit card details to purchase the product. To do this we concentrated on the AIDA marketing technique, which stands for Attention, Interest, Desire and Action.
You need to start off by grabbing people’s attention, then build on this attention to create an interest, which should be converted into a desire to buy the product, and finally action, where the customer picks up the phone to buy.
What are the ingredients for success?
Scripting is incredibly important, and is something I have had the opportunity to learn about over 18 years. During this time I’ve been closely involved in writing the scripts for the DRTV campaigns.
Scripting is a highly specialised field but there are some basic ingredients. The most important thing, and I think this applies to any sales pitch, is to get the sales message across in a simple way. Don’t use drawn out, over-complicated language. Say what you want to say clearly and simply, in a way that the customer can relate to.
The other critical factor is demonstration. Customers need to see the ‘wow’ factor in the product, and the best way to achieve this is to show them what it can do.
But you have to carefully select what you are going to demo. One example from our product range is the Bauer pan demonstration, where the lady blows the pancake off the pan to show its non-stick ability.
You’re a CA by training. Did sales come naturally to you or was it something you had to learn?
In the early days of the business I was the finance and operations guy, but then I bought my brother out 18 years ago and became CEO. It was then that I realised I would have to dramatically shift my skills set and start to learn how to sell.
I went to many overseas exhibitions to experience different selling techniques and I learnt a tremendous amount from the American ‘pitchmen’.
These are the masters of persuasion and have sales pitching down to a fine art – they’re the people from whom I learnt how to take consumers from total ignorance to buying action. They really understand about presentation to an audience, and how important it is to watch your audience closely and respond to the real-time feedback you are getting from them.
I also learnt from them the importance of immersing yourself in a product, and really getting to know it, before preparing the pitch script.
Your advice on what to avoid while selling?
Creating a perception that you or your product can’t meet. You should never over-promise. Allow your passion to come through but sell the product on its own merit. A huge part of Verimark’s success has been selecting products of a high quality that are unique. When the product is truly good, you don’t have to oversell it.
