SALES TECHNIQUES http://www-rohan.sdsu.edu/~renglish/377/
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Introduction to Selling Relationship Selling Ethical and Legal Considerations Consumer Behavior and and The Communication Agenda Finding your Selling Style Preparation for Success in Selli lin ng Prospecting The Preapproach and Telephone Techniques Approaching the Prospect Asking Qu Questions an and Li Listening The S P I N Preparin ing g for an Effectiv ivee
chapter 11: Presentation chapter 12 12: Handling Ob Objections chapter 13: C L O S E chapter 14 14: Building Re Relationships with Total Customer Service chapter 15: Pers rso onal Organis isaation and Self Management chapter 16: Sales Management
CHAPTER 1 INTRODUCTION TO SELLING Qualities of High Sales Performers o o o o o o
Sell to people Know when to close Exchange Information Regularly establish trust Engage in certain behaviors Provide value added to the customer
Be perceived as a genuine advocates of prospects’ needs o
THE SALES EDGE - EVERYBODY SELLS o
Human relation skills are basic selling skills. Skills are learned and practiced from birth. Everyone has a base upon which to build their selling abilities.
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Introverts and extroverts are successful in selling
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The Value of Salespeople Selling keeps products, services and ideas flowing. Sales people are solutions providers
o o
Growing corporate competiveness Latest sales strategies are essential
Understand your customers problems o identify customer needs Businesses rely on o Help determine prices of the products their sells. salespeople for o company Inform customers of new products. o
many functions
o
Follow up on the customer once the sale is made.
Compensation places more salespeople above $100,000 annually than people in any other profession. Critical importance o Time and Cost of Sales Training of salespeople o Importance of Sales Training o
is recognized by
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According to published data, the average cost per call for a professional salesperson in many industrial organizations exceeds $300
More salespeople earn above $100,000 annually than people in any other profession
Importance of Sales Training o o o o o
Salespople are cross trained on other tasks Cost of replacing a trained seller can be up to $500,000 Learning never stops Salespeople are most comfortable selling what they understand. Successful companies see sales training as the basis for gaining a competitive advantage. provide ongoing training Sales training builds confidence in the sales force and enables them to make superior presentations.
o
THE POSITIVE NATURE OF PROFESSIONAL PROFESSION AL SELLING
False Negative Perceptions about selling abound
Personal Attributes Required
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Personal Integrity Personality Structure
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Personal Relationships
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Personal Abilities Demanded
Women in Selling o
About 26% of all sales jobs and 10% of all sales managers Women dominate some industries (Apparel, Business services, office equipment) Still lagging in many industries to gender
There is no evidence relating performance There are style differences.
PERSONAL SELLING Definition of Personal Selling Seeking out people who have Seeking a particular need. Assisting Demonstratin g Persuading
Assisting them to recognize the existence of needs they have that could be met through your offering. Demonstrating how your offering fills that need.
Persuading qualified prospects that your product will fill their needs.
Salespeople are made not born
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They are made with concentrated attention repeated practice goal oriented direction Become a Master Salesperson Become a student of your profession
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Learn throughout your career
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REWARDS OF A SALES CAREER o o o o o
day
Variety and Independence No set routine Each sales situation has a unique character The variety of prospects and their needs. Variety of activities in one day and from day to
Security o Entrepreneurship Professional salespeople are never o unemployed. o
Salespeople have an especially good opportunity to exercise a direct effect on their income
o
and security by their own efforts.
Hierarchy of Personal Needs
MORE REWARDS OF A SALES CAREER o o
Opportunity for Advancement
o o o
Security o The knowledge that you are meeting your own highest personal needs for selfactualization. o Knowing that you have been of service to someone else while, at the same time, you have o
Personal Satisfaction is derived from
Advancement in Direct Selling Entrepeneurship Promotion to Sales Management Involvement in Sales Training Moving Into Top Management
met your own goals. Being able to control your own o wn work time and activities on a daily basis. o
DISADVANTAGES OF A SALES CAREER Variable income Long hours Travel Handling rejection
CLASSIFICATION CLASSIFICAT ION OF SALES JOBS All sales jobs have some similarities o
The need to understand the prospect’s problems The need for self discipline to relentlessly execute a sales plan The need for appropriate technical and/or product knowledge.
o
The ability to translate products into benefits that resolve problems
o o
Taking orders and field service. Largely involves delivering orders and o replenishing inventory. o Expected to persuade customers to provide additional shelf space or more favorable placement of stock. Opportunity to increase sales comes most often o through assisting the customer to move a larger volume of inventory. o
Trade Selling
Often actually set up product displays in retail stores. o Educate those who ultimately decide what product will be used by the consumer. Often does not see immediate results from their o efforts in the way of products sold. o
Missionary Selling
Still accountable for sales. o Salespeople must also be competent in some technical specialty related to the products sold. o Usually called in by another salesperson who has already contacted the prospect and stimulated some interest. Often conducted by a sales team. o o
Technical Selling
Still need real sales skills because their role is more than just explaining the technical aspects of the product. o
New Business Selling o
Account representative
Established clients
Many calls Concentrates on o promotions Product introductions o o
Detail salesperson
Selling for a Manufacturer Sales Engineer Industrial Products Salesperson - Non Technical
May not take orders directly Technical skills o o Tangible products Industrial customers o o
Technical knowledge not needed o Intangible products o
Service salesperson
Sells on benefits only Largest group - Real estate - Retail clerks Insurance agents - Telephone salespeople Direct (door to door) - Party sales Multi level sales o
Selling at Retail
The Order Taker and the Order Getter Order Taker Order Getter
"Responds" or "Reacts" to the expressed desires of customers is o
Uses suggestion selling to get buyers to purchase additional products. are creative, persistent, and build strong o relationships creative selling deals with intangibles and o intangibles offers the possibility of the highest personal o income of any type of selling. requires a high level of personal skill, dedication o and effort. o
time is still spent in maintaining relationships with former or present clients. o
Successful Salespeople
Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude.” - Thomas Jefferson
CHARACTERISTICS OF SUCCESSFUL SALESPEOPLE o
Enthusiasm
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Sincerity
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Empathy
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Goal Direction
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Resourcefulness
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Administrative Ability
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Perseverance
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Pleasant Personality
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Initiative
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Ability to Ask Questions
Willing to do what it takes to attain goals. Ability to find satisfaction in o contributing to achievement of the goals set by their company. Enjoy serving the needs of o others. Able to stay focused on daily o activities. o Other characteristics Strong positive self image High ethical standards Sensitivity to the needs of others. o
1 1
Able to win the trust of others
CREATE THE SALES EDGE is often desirable, frequently C Change necessary, and always inevitable
E A T E
Remember…only you can give yourself permission to approve of you. Unlock your mind from negative thinking nvision yourself a success. What you think about you become. Attitude does determine your altitude. It's what’s inside that that makes you rise. rise. The right angle to solve a problem is the try-angle. Eliminate failure as an option, and progress naturally emerges
T H E
The best is yet to come. yesterdays impossibilities are today’s possibilities. Have your dreams. they are the stuff great people are made of. reach for the stars but keep your feet on the ground. Extraordinary desire and persistance drives ordinary people to achieve great things. achievers are not extraordinary people.
R
S Seven days without laughter makes one weak. A A smile is the shortest between two people. Listen twice as much as you talk. You were given two ears and one L tongue. Encourgaging feedback is a process for learning about your impact on E those around you. Success is the progressive realization of worthwhile, predetermined, S personal goals. E Excuses are for losers. Winners have ways. May we all find the way. never to give up. It’s when things seem the worst that you D Determine must not quit. G Goals are dreams with a due date. Expect the best of yourself. Be somebody special. The best never E consider success optional.
CHAPTER 2 RELATIONS RELA TIONSHIP HIP SELLIN SELLING G “Your professionalism is defined not by the business you are in, but by the way you are in business” - Tony Alessandra
THE CHANGING ROLE OF PROFESSIONAL PROFESSION AL SELLING The trend in professional selling today is toward Consultative, Problem-Solving selling
Customer Satisfaction Relationship Management
Successful sellers who Successful foster relationship selling
The ultimate goal of the consultative seller throughout the selling process. Managing the account relationship Ensuring that your clients receive the proper service before, during and after the sale Present only what the prospect needs to know and then ask for the order. Take time to use an icebreaker, if appropriate, to warm up the prospect before discussing product information. Keep their attention focused on the objectives for the sales call. Are careful to establish a firm foundation for a productive relationship with the prospect.
InfoQuest CRM undertook a detailed study of 20,000 of its customer surveys from around the world
The value of customers
a totally satisfied customer contributes 2.6 times as much revenue as a somewhat satisfied customer a totally satisfied customer contributes 14 times as much revenue as a somewhat dissatisfied customer a totally dissatisfied customer actually decreases revenue at a rate equal to 1.8 times what a totally satisfied customer contributes to a business
How To Build or Break a Relationship Relationship Builders
Treat customers like life-long partners Become a solutions provider Deliver more service than you promise Schedule regular service calls Develop open and honest communication Use the ‘we can’ approach Take responsibility for mistakes made Be an ally for the customers’ business
Relationship Breakers
Simply wait for the problem to develop Focus only on making the sale Over-promise and under-deliver Wait for your customers to call you Lie or make exaggerated claims Use the “us versus them” approach Blame somebody else; Knock a competitor Focus on your own personal gain
RELATIONSHIP SELLING VERSUS TRADITIONAL SELLING
The Face to face steps of the Relationship Model
o o o o
The Approach Identyfying Needs Making the Presentation Overcoming Resistance
Time Empathy Customer expectation expectationss
Gaining Commitment 40% spent on gaining rapport o and trust Think the way your customer o thinks o Higher than ever Gives us tools to aid in the process
Technology
Can also cause a loss of personal contact
o
Has taken over low end transactions
The Sales Cycle Framework for Consultative Selling
Phase 1: Pretransactional Steps
Prospecting
Qualified prospects
• • •
Money Authority Need
Prospecting discussed in depth in Ch 7
Preapproach Telephone Activities
Phase 2: Transactional Steps Approach Need Discovery
Preparation and Making The presentation
Handling Objections [Resistance can be avoided]
The Success of the process depends on this Active questioning and creative listening skills are needed Features vs Benefits A feature is a fact that is true about a product or service, tangible or intangible. A fact becomes a benefit when it fulfills a need to the customer. Benefits of the product or service are the application of features to the needs of the prospect A seller should be thoroughly familiar with the features of the product or service Knowledge makes it possible to describe the benefits It is up to the seller to qualified the buyer. Resistance comes because an atmosphere of mutual trust and cooperation was never fully developed. Adjust your personality to the behavioral style of the prospect well enough to establish rapport.
Closing
There may be problems beyond your control. The closing stage is often the longest and most tedious stage for the traditional seller. When a qualified prospect says," No," today’s consultative seller tries to discover whether the prospect really needs the product or Whether the prospect understands how the product can help solve a problem.
Phase 3: Posttransactional Steps Relationships keep satisfied customers coming back Customer satisfaction is an asset to you and your firm The relationship begins after the buyer says "yes." Cognitive Dissonance (buyer's remorse) must be reduced
Continuous Quality Improvement Total Quality Management Principles that apply to relationship selling Listen and learn from customers and employees Continuously improve the partnetshop Teamwork through mutual trust and respect Do it right the first time Get your whole company involved
Service Quality Interaction
Re-Engineering requires culture changes in a sales organization Traditional Management Model Focus on product Company knows best Transactions Individual performance Fire-fighting management Blame/punishment Short-term (year or less) Intolerant of errors Autocratic leadership Bureaucratic Top-down decisions Inward focused
Total Quality Management Model Focus on service Customer knows best Relationships Team Performance Continuouss improvement Continuou Support/reward Long-term (years) Allows mistakes Participative Relationship Entrepreneurial Consensus decisions Outward (customer) focused
TEAM SELLING
The Growth of Team Selling
It has grown to take advantage of diverse skills and personalities needed to sell complex products The steps are the same but rules are needed Usually at least one seller and some technical specialists The buyer may have a team also
The Benefits of Team Selling
Customer gets involved with more than one person More accurate need definition Very useful if product is technical Different individuals bring more selling skills
Requires special planning
The Roles of Each Member
Combinations That Work
Must have a leader Must agree on objectives Must be better rehearsed
Salesperson and Attorney Good guy/Bad guy scenario Makes salesperson more careful Stresses the importance of the meeting Opener and Closer Just as in baseball (starting pitcher and the closer) Some salespeople are good at opening the sales relationship while others are masters at closing the sale Both are very important-- a symbiotic relationship
CHAPTER 3
ETHICAL AND LEGAL CONSIDERA CONSIDERATIONS TIONS IN SELLING Glengarry Glen Ross What were the principal ethical predicaments which Sheldon Levine (Jack Lemmon) and his cohorts faced? How could Shelley's extenuating circumstances justify his actions?
What types of external pressures influenced the salespeople's unethical selling practices? How did the sales manager (Kevin Spacey) and top management (Mitch & Murray) foster the unethical practices? How the nameless motivational speaker (Alec Baldwin) address the issues of ethics? How does Dave Moss (Ed Harris), rationalize rat ionalize breaking the law? How does George Aaronow(Alan Arkin) violate rules of ethics? What was unethical about Ricky Roma's (Al ( Al Pacino) methods in prospecting and closing James Link (Jonathan Pryce)? Why was Ricky Roma's handling of Mr.Link 's cancellation unethical?
The Power of Ethical Management by Dr. Ken Blanchard & Dr. Norman Vincent Peale The basic message of their book b ook is simple: • •
• •
•
You don’t have to cheat to win! “Nice guys may appear to finish last, but usually they are running in a different race.” Cheating, lying, and short-changing the customer on service may bring a satisfactory profit today, but it is a sure way to court failure for the future.
Is the language of ethics different from other uses of language? Guidelines for Ethical Behavior The golden rule Universal Nature Everyone plays by the same rules Trust facilitates cooperation Truth Telling Responsibility for One's Actions
Don't blame others for your problems The "victim" mentality
THE ETHICAL DILEMMA: Do honest salespeople finish last? Ethical Questions • • • •
What method do we use to determine moral standards? Why be moral at all? Are there moral standards which are common to all humanity? Is free will a necessary condition for moral praise or blame?
The Origin of Ethics Legal Standards are enforced Ethical standards come from society
Bases for Ethical Systems Deontological Teleological
Standards-based ethics uses specific rules Results-Based Ethics defines right and wrong in terms of end results Started by Jeremy Bentham (1748-1832) Tried to reform some of the unfair laws in England
Utilitarianism
Developed a theory that the morally correct rule was the one that provided “the greatest good to the greatest number of people. The greatest good for the greatest number”
Ethical Ambivalence
results from learning that everything is relative. Are there any moral absolutes?
INFLUENCES ON THE SALESPERSON’S SALESPERSON ’S ETHICS Company Code of Ethics
Government action and fear of retribution have induced more companies to adopt a code
Typical issues covered
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Expense accounts Gift giving Unethical demands by a buyer Promises about performance or delivery
•
selling unnecessary products
• • •
Role Modeling by Executives and Sales Managers Examples Set by Colleagues and Competitor The Bottom Line Groupthink
o
Profit?
Survival? peer pressure o
group develops a set of shared perspectives that may be unrealistic but are strongly supported by the members of the group.
Gamesmanship winning for the sake of winning Responsibility to Self Responsibility to your Company
your conscience Inaccuracies in Expense Accounts Honesty in Using Time and Resources Accuracy in Filling Out Order Forms Representing the Company
Responsibility to Competitors Responsibility to Customers
Overselling and Misrepresenting Products or Services Keeping Confidences Gifts & Entertainment
OPERATING IN A GLOBAL ENVIRONMENT Some cultures have different expectations
U.S. citizens are expected to follow U.S. laws
ETHICS AND JOB TENURE
Whistle-Blowing • • •
•
You may be held legally accountable for inaction Recent rulings encourage whistle blowing Sometimes the best policy may be to keep quiet until solid evidence can be accumulated against a wrongdoer. A word of caution… inaction can even be grounds for legal action.
How Does the Company Treats the Salesperson
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Some incentives encourage fudging Management may not be accessible to help with dilemmas Do control mechanisms exist for Customer complaints Salesperson dissatisfaction Expense accounts Are sales goals impossible
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Be sure managers fairly manage the distribution of sales territories
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SEXUAL HARASSMENT Nearly 16000 complaints per year Look for a harassment policy including -
Company Leadership Immediate complaint investigation Privacy rights protected Thorough follow up Sensitivity training Review training for comprehension
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Periodic refresher courses
ETHICS AS GOOD BUSINESS Unethical activity costs business Check Points in Ethical Decision-Making Is it legal? Is it fair to all concerned? Would I want someone else to act this way to me? How would I explain my actions to someone else? How will it make me feel about myself?
Remember…There is no pillow as soft as a clear conscience.
LEGAL ISSUES FACING THE SALESPERSON
It is easy to violate many of the laws
Some Legal Traps
Categories of Laws
Quality below standard specified Violation of delivery date Pricing concessions Incomplete or incorrect instructions Price fixing Delivering a different brand than that sold Misrepresentation of product usage Slandering competitor Kickbacks to buyer Charges after the sale Misuse of proprietary data Signing agreements without the proper authorization Antimonopoly Deceptive actions Preserve competition
SPECIFIC ANTITRUST LAWS AND THEIR SALES IMPLICATIONS The Sherman Antitrust Act of 1890 Federal Trade Commission Act of 1914 The Robinson Patman Act of 1936
Unfair methods of competition and commerce Unfair or deceptive acts or practices Defines price discrimination Gives FTC the right to limit quantity discounts Prohibits unfair promotional allowances Brokerage allowances only go to brokers
THE UNIFORM COMMERCIAL CODE (UCC) Guidelines for Selling Written or verbal offers to sell may be binding Financing must be explained clearly and completely Salesperson must know legal responsibilities of both parties
Warranties and guarantees Express warranties are made by salesperson or in writing Implied warranties State law Unless a disclaimer is made ___________________________-
COOLING-OFF LAW
How to keep out of Legal Trouble "Puffery" vs. statements of fact. Educate the customer thoroughly before making the sale Know technical specs, etc. for the product you sell. Know your company's literature. Challenge it if is false Know the terms of sale policies. You can bind the company Know federal and state laws regarding your product and its warranties Don't guess at your product's capabilities
CHAPTER 4
CONSUMER BEHAVIOR & THE COMMUNICA COMMUNICATION TION AGENDA Lincoln's Gettysburg Address 268 words 196 One Syllable Words 52 Two Syllable Words 20 More Than Two Syllable Words Small words work! - Buzz Words Don’t work
Consumer Behavior Consumer behavior
You, the seller must be able to determine
The set of actions that make up an individual's consideration, purchase and use of products and services. Includes the purchase as well as consumption of the products and services. What is motivating the customer to buy. This enables you to convert features into benefits for that particular individual In which step of the purchase decision process is the buyer.
Problem Recognition May occur when the consumer receives information from advertising or from conversation with friends that causes awareness of a need. In consultative selling sometimes hinges on the seller's ability to uncover a need. May occur when the consumer reevaluates the current situation and perceives an area of void or dissatisfaction. No matter what kind of need exists some prospects do not consciously recognize it until the seller brings it out into the open.
Search for Alternatives - Limited By Time and cost - Experience and urgency. Value of purchase - risk involved in the purchase
Evaluation of Alternatives
Evoked Set is the list of alternatives Salient attributes are used to evaluate products. Determinate attributes are motives used to make a decision.
Purchase Decision
Several alternatives may seem equally acceptable; Can be made easier by a professional seller Involves a set of related decisions. Decision criteria Tangible features of the product. Financial considerations such as price, discounts, credit policies, etc. Intangible factors: reputation, past performance of the seller, possible delivery dates, etc.
Postpurchase Evaluation post-purchase anxiety
Cognitive Dissonance aka "Buyers Remorse"
Depends upon the importance of the decision and the attractiveness of rejected alternatives. by selling products that meet needs, by reinforcing the buyer's belief that the right decision was made
Minimize
by demonstrating the capabilities and quality of the product, By post purchase follow-up to be sure that deliveries are prompt, quantities are correct, and the product is functioning as expected.
Business to Business Buying Some Fundamental Differences Characteristics of Organizational Buyers Categories of Organizational Buyers Purchase policies Multiple Buying Influence
The Buying Center
Buying Motives
Decision Maker Buying Criteria Buying Motivation
May be a buying center More complex rational economic emotional
Fewer in number, Purchases involve larger dollar volume Less freedom of decision Industrial Wholesale & Retail Government set by companies provide guidelines concerning performance, service, quality etc. Product or service must meet these criteria Several people involved directly or indirectly in the t he decision making process. Many times dollar limits are set and a nd exceeding these limits requires the approval of higher level executives.
Users. Buyers. Influences. Gatekeepers. Decision Makers.
More of the decisions are based on rational buying motives rather than emotional motives. Research and analysis concerning the product and the company selling it is often conducted prior to purchase.
Ultimate Consumer Buying Motives Increase wealth Alleviate fear Secure social approval Satisfy bodily needs Experience happiness or pleasure Gaining an advantage Imitating Dominating others Recreation Improving health
Ultimate Organizational Buying Motives Profit Economy Flexibility Uniformity of output Salability Protection Utility Guarantees Delivery Quality
ENVIRONMENTAL INFLUENCES ON ENVIRONMENTAL THE PURCHASE DECISION PROCESS Psychological Influences The Role of Perception Illusions
Mood of the Moment Attitudes Buyer is not always consciously aware of attitudes. Attitudes are habitual patterns of response to previous experiences. Preconceived attitudes do not always make the selling process difficult. A negative attitude must be overcome before a sale can be made.
Self-image
Attitudes are the mind’s paintbrush. They can color or affect any situation. self-image impacts the problem recognition phase of consumer behavior Many of our permanent beliefs about our self-image are developed in our childhood. Our concept of self-image can change through our lives. Advertisements that are consistent with our self-image are more persuasive. Self-image and public-image are not always the same. Much behavior can be explained if the self-image is understood.
Sociocultural Influences Culture is an influence that is completely learned and handed down way of life. Cross-Culture Business Considerations Physical Environment Social Class Might impact the information search phase of consumer behavior Marketing and advertising campaigns must differ in their attempts to reach the various social classes. Reference Groups
THE COMMUNICATION AGENDA to be sure that the prospect understands the message, accepts it, and makes a commitment to take action.
Source the Message Encoding and decoding of messages are often achieved through the use of symbols
Encoding The Message Itself Evaluating the Prospect's Decoding Barriers to Effective Communication
Words Distractions Timing Interruptions Technical Erudition Poor Listening Habits Make Use of Feedback - your message has been transmitted successfully when the prospect's understanding of the message is the same as yours.
Use of the Voice
Clarity or Articulation Volume Uniqueness Silence Rhythm Rate of Speech
SELLING WITHOUT WORDS (NONVERBAL COMMUNICATION)
Vi sual communication the expresses majority of a person's feelings and emotions
Kinesics Body language includes facial expressions, shifts in posture and stance, as well as the movement of body limbs. Understand the Body Language of Gestures Body Signals
Hand Movements Your mannerisms should be calm and unhurried. Facial expressions convey a larger percentage of the nonverbal message than body movement does. If you can read a prospect's body language and control your own body signals then you are more likely to be understood. Warning signals that the prospect is either not understanding or not accepting the message. Rubbing the nose. Leaning back in the chair with hands behind the head. Resting the head in the hands with elbows on the desk. Finger under collar or rubbing back of neck. The Non Verbal Dictionary Analyzing the walk Biomotion Lab
concerned with the physical distance individuals prefer to Proxemics maintain between themselves and others. Successful sellers tend to move closer to aclient when closing a sale.
1.
It is best to carefully test for a prospect's comfort zone.
2.
Comfort zones tend to change with sex, status, or age.
3.
Four to twelve feet from the client could be a good distance in which to begin a sales interview.
4.
In a selling situation, the intimate zone should be entered only by invitation or during a handshake. 5.
Cultural Proxemics o
Americans use a firm, solid grip;
Middle Easterners and Asians prefer a gentle grip a firm grip to them suggests unnecessary aggressiveness o
HAND SHAKE
o
Americans are taught to look directly
Japanese and Koreans are taught to avoid direct eye contact, direct eye contact to them is considered a weakness, and may indicate sexual overtones o
EYE CONTACT
For Americans, forming a circle with thumb t humb and forefinger to signal O.K. Means "zero" or worthless in France o Means money in Japan o o
Means calling someone a very bad name in Germany. o
O.K. GESTURE For Americans, up and down means yes, side to side means no o
NODDING YES OR NO
in Bulgaria, the nods are reversed in meaning. o
An American gesture is found to be offensive to nearly every other country around the globe o
TING FEET ON TABLE
PUT
GENDERSPEAK: SEPARATED BY COMMON LANGUAGE Relating to the Opposite Sex Body language does not mean exactly the t he same between a man and a woman as it means between two men or two women Websites Genderspeak http://www.adrr.com/lingua/12lwma.htm Genderspeak: Men, Women, and the Gentle Art of Verbal Self Defense A woman's smile may be interpreted as an attempt to substitute personal charm for competence. If she doesn't smile, smile, she she may be considered cold and impersonal. Both men and women may unconsciously join in a game of talking business but using body language that says, "Let's flirt."
Men
Women o
Tend to surrender more quickly
Personal Space May feel vaguely o
Interruptions
uncomfortable about having done so. interrupt men less often they do other women. Tend to use more More Less
Networking Patience Use of Humor questioning and Tend to be better listening
o
Tend to surrender less quickly
interrupt both sexes Tend to use less Le s s More Tend to be worse
CHAPTER 5
FINDING YOUR SELLING STYLE A DIFFERENCE IN SOCIAL STYLE Failure to understand styles can cause lost sales, frustration Understanding styles leads to better Success communication and Behavioral Style analysis was Styles started by Jung and modified by others. o
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THE BEHAVIORAL OR SOCIAL STYLES MODEL
Four basic styles based on four functions of human personality Function
Driver [Sensor] Expressive [Intuitive] Amiable [Feeling] Analytical [Thinking] Are You A Director, Thinker, Relater, or Socializer?
Characteristic Quick reactions to here and now sensory input Imagination an and th thought Emotional and personal reactions to experiences Logically organizing and analyzing data Try the Kiersey Temperament Sorter o
o
Here is the Watchword Technique
Basic Concepts Primary style Back up style Clues to style We respond to a style similar to our own.
the favorite used sometimes (stress) manner of speech use of time, etc Don’t overuse your style
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We use one or two styles in selling Know your own style well Style predicts surface behavior.
o
It is not an in-depth personality analysis.
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Behavioral Styles in Selling
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Dimensions of Behavior
Assertiveness [dominance] Responsiveness [Sociability] Versatility
Recognizing Social Styles
The degree to which a person attempts to control situations or the thoughts and actions of others. The readiness with which a person outwardly displays emotions or feelings and develops relationships. Individual's ability to adjust personal pace and priorities to help interaction with a person of another style. Use the grid which plots assertiveness vs. responsiveness. Each quartile in the grid represents levels of intensity
Identifying the Four Behavioral Styles Low assertiveness
Analytical
Low responsiveness
Reserved technical specialists. o Cautious in decisions and action o Likes organization and structure o Dislikes involvement o Asks specific questions o Prefers objective, task-oriented, intellectual work o Wants to be right, so collects much data o Works slowly, precisely, and alone o Seeks security and selfactualization o
Has good problem-solving skills
High assertiveness
Drivers
Low responsiveness.
Control freaks. o Decisive in action and decision making Likes control; dislikes o inaction o Prefers maximum freedom to manage self and others Cool, independent, and o competitive with others Low tolerance for o feelings, attitudes, and advice of others Works quickly and o impressively alone Seeks esteem and selfo actualization o
skills
Has good administrative
High assertiveness o High responsive. o
o
Amiables
o
Low assertiveness Expressives High responsiveness.
Social specialists Support specialists o Spontaneous actions and o decisions o Slow in making decisions or taking o Likes involvement actions o Exaggerates and generalizes o Likes close, personal relationships o Tends to dream and get others o Dislikes interpersonal conflict caught up in those dreams o Supports and actively listens to others o Jumps from one activity to o Weak in goal setting and self-direction another o Seeks security and identification with o Works quickly and excitedly with a group others o Seeks esteem and group o Has good counseling and listening identification skills o
o
Has good persuasive skills
Versatility as a communication tool o
Conflict can happen if we use u se our own styles
One person must adapt Behavior Flexibility or The willingness to control personal Versatility behavior and adapt. o
Human beings are instinctively impelled to return to others the feelings and emotions they give to us.
When we move toward their style then they are compelled to move toward our style. o Called mirroring and matching
The Law of Psychological Reciprocity
o
o
o
Identifying Pace and Priority
o
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Style Clues in the Prospect’s
o o
You can impact the thoughts, actions and feelings of others by modeling what you want to have happen How fast are decisions made? How competitive? How much feeling is displayed? Office decorations Furniture
Environment
o
Pictures, diplomas etc
The Interaction of Styles Style flexing is the ability to adjust your style to meet that of your prospect Source Shared Styles of Area of Agreement Dimension Conflict Low Analytical v Amiable Pace Assertiveness Priorities High Driver v Expressive Pace Assertiveness Priorities Low ResAnalytical v Driver Pace Priorities ponsiveness High ResAmiable v Expressive Pace Priorities ponsiveness Analytical v Expressive Both Amiable v Driver Both
Style Summary Driver Backup Style Autocratic
Measures Personal Values Results By: For Growth Needs Listen to Allows to Needs climate build own that structure
Expressive Attacker
Amiable Acquieser
Analytical Avoider
Applause
Security
Accuracy "Being Right:
Check
Initiate
Decide
Inspires to reach goals
Provides Details
Suggests
Takes time to be Efficient
Stimulating Agreeable Accurate Dreams and Relationships Principles and Support their Conclusions and actions Intuition and feelings thinking
Present benefits that tell
What
Who
Why
Guarantees For decisions Options and Testimonials and and give them probabilities incentives assurances Their specialty is Controlling Socializing Supporting
How Evidence and service Technical
THE EMERGENCE OF NEUROLINGUISTIC PROGRAMMING (NLP) Use these as another way to observe and understand people. Separate from style analysis o
Perceptual fields are the ways in which people perceive the world
• •
•
o
The science of how the brain learns Sound Modes of Perception Auditory Most of us favor one Visual Sight mode Kinesthetic Touch Tapping into the Prospect's System of Perception Certain clues tell us which representational mode a person favors. o
NLP can help you develop the ability to identify a prospect's traits
Interpreting Eye Cues Look Visual -ing Perception Look -ing
left
Visualizing or picturing the past.
up
&
up
a & right Constructing visual image
Kinestheti Look c -ing down & right Perception Look Side& left -ing ways
Remembering past feelings Hearing sounds from the past.
Constructing a Auditory Look Side- & right future perception -ing ways conversation
Look down & left -ing
Talking to self
Left handed people may reverse
Interpreting Predicate Words: Listen for word cues I am watching developments in that particular stock; Visual before I buy, I want to see the progress it makes this quarter and get a picture of what to expect in the future. Auditory There is so much noise in here I can't hear myself think atmosphere was heavy and damp; there was an Kinesthetic The oppressive stillness, thick with apprehension.
Match word cues with eye cues for accuracy.
Using Perceptual Field Information o
Adapt your mode of selling to their t heir mode of learning.
o
Adapt demonstrations as well as your verbiage. v erbiage.
Perceptual Field
What to bring
W h a t to d o
pamphlets, Visual diagrams, graphs, videos
Show the buyer how the product works well prepared to explain Auditory tapes, videos with sound Be verbally the actual Let the buyer hold the product, Kinesthetic samples, product let them try it out
Learn NLP
Ethics of employing Style analysis or NLP. Are they are simply used as tools to obtain information that will aid in serving the client? o
o
Are they are used to satisfy personal greed?
CHAPTER 6
PREPARATION FOR SUCCESS IN SELLING EXCELLENCE o o
Is never an accident. Is contagious.
Demands commitment and dedication from organizational leadership. o Is inspirational o
Is important because it is everything. o
Is an organization's life line.
o
PREPARING TO SELL Orients us to the business world o Acquaints us with managerial and organizational styles o
Academic preparation
Acquaints us with various types of problems or opportunities that face corporations
o
o
Product knowledge Motivation and goal setting
o
Knowledge of the sales process
o
Involves three areas
PRODUCT KNOWLEDGE Know everything. o
The Product Itself
o o
o o
Performance
o
o
Manufacturing
o
External characteristics How to use All available options Adaptability Life expectancy Tolerance to wear and stress Maintenance and supplies needed. How is it made
o o
Distribution Channels
o o
o
Service Available Application of Product Knowledge
Information About the Company
o
Quality control Distribution strategy. Pricing policies Media support Target markets Service policies
Service personnel Know when to use it. o Can be a hindrance if you talk too o much o
Don't assume that it is solely the company's responsibility to educate you. History o Product evolution o o
o
Present customers
Benefits of Gaining Product Knowledge Gives you pride self confidence in the product Gives you self assurance Allows you to diagnose the customer's problems Enables better customer service Gives you an air of competence Can sell to experts and to beginners
o o o o o o
Knowledge of the Competition Differential Competitive Advantage Product Superiority -
-
Versatility Efficiency Storage Handling Time Safety
-
-
Appearance Design Mobility Packaging Life Expectancy Adaptability
Service Superiority -
Delivery Inventory Credit Training Merchandising Installation Maintenance
Source Superiority
People Superiority Personal knowledge and skill Knowledge and skill of support people Integrity and character Standing in the community Flexibility of call schedule Interpersonal skills Mutual friends -
-
Time Established Competitive Standing Community Image Location Size Financial Soundness
-
Policies and practices
-
-
Cooperation
Sales Force Automation Computers in Selling 85% of the sales force will become automated in the nineties The Virtual Office is carried on a computer
The Impact of Technology Tools Laptops Pen based computers o Palmtops o Contact Management Software o Mapping programs and GPS o Calendar and scheduling o Geodemographic segmentation o o Smart Card Reader E mail o Internet and videoconferencing o Telecommuting o Electronic data interchange for order o processing Corporate contact management o Online databases for ordering o Marketing strategy built around benefits o important to customers. Emphasis on service o Focusing on the few attributes that really o set you apart means you can’t be all things to all people. Keep an eye on how your competitors are o positioning themselves. o
Personal Productivity
Improved Communication Transactional Processing Product Positioning
Positioning: The Battle for Your Mind A computer system that coordinates the o marketing elements and provides feedback for measurement. Using computer databases to coordinate all marketing function o Combining demographic characteristics with geographic variables to develop clusters of similar individuals. Modules within a firm use common o information to deliver communications tailored to the market needs o Account management software facilitates relationship selling because it allows salespeople to match corporate capabilities against the needs of the customer. a collection of related records or o transactions. storing customer and prospect o information on a computer. o
Integrated Marketing
Databases
MOTIVATION o o
time
The impetus to begin a task The incentive to expend
The willingness to persist until the job is done. o
Motivation can come from without or within the individual
o
Fear Motivation Advantages
Disadvantages It is external. Take away the source and the fear disappears. It is temporary. It can o eventually be tuned out. It is negative if we act to o avoid punishment rather than by choice. Motivation based on o intimidation. Always results in inner o anger and resentment
o
It protects us from self destruction or harm It protects society o It is sometimes the quickest o way to get a reaction. Easiest form of motivation o o
Gets results because the person will do what you ask for fear of loss o
Usually results in “when the cat is away, the mice will play.” Use if person in power can not create a climate for other types of o beneficial motivation. Sometimes the threat of loss or punishment for motivation must o be used, but should only be used when all other methods have failed. o
o
Incentive Motivation: money, perks, prizes
Advantages
Disadvantages It is external. Comes from the boss not the self. It is temporary o If the reward is not desirable o then nothing happens Incentives evolve into rights o instead of privileges o
If the reward is desirable then sellers will go for it. o
o
It is positive.
CAUSAL MOTIVATION Occurs when an environment is created that causes people to: WANT to work Be the best they can be. o Causal motivation is working toward a “cause.” o People will work their hardest for something or someone they believe in. o There must first be a cause in which your team can believe o The environment must be created that will cause the team to want to work toward the vision or goal. Answer the question “What’s in it for me?” o People want a return on their investment of time, talent, money, etc. o To expect people to work for you cause and your shareholders’ o cause, without concern for their dreams and goals, is blindness to the way we are. o People do things for their reasons, not yours. o
o
Attitude Motivation: Self Motivation Advantages o o o o
o
Internal and Permanent Based on strong self image. Is the result of choices. Conformity is a decision. No decision is a decision .
Disadvantages
DESIGNING YOUR OWN SELF-MOTIVATION
Personal goals is the single most important tool Various Perspectives o o o o o
o o o o o
o o o
o o
o
Motivation - Psychological Self-Help Goal SettingTips GOALS AND GOAL SETTING Goal Setting Handbook Goal Setting - Powerful Written Goals In 7 Easy Steps! Goal Setting Articles Time Mananagement Free Tips for 1999 from the G.A.L.S. Goal Setting Workshop Goalmap - Set personal goals to improve and balance your life Where are you going? - 10/15/98 Setting Your Goals Techniques and Strategies for Managers and Supervisors from The Economics Press, Inc. DYNAMICS OF LEADERSHIP, INC. Goal Setting - Strategies for a Balanced Life Goal Exercises - developing personal visio
Sincere Desire – Writing Down & Planning
differentiate between a wish and a goal.
The Million Dollar Personal Success Plan Crystallized Thinking
Know exactly what you want
o
Goals must be written and dated You know exactly what to do next Gives you the time frame Draws out your potential Helps maintain a positive attitude
o o
A Written Plan of Action with Deadlines
o o o
Helps eliminate distractions Enables undertaking challenging goals. Converts problems into stepping stones Builds your credibility
o o
Supreme Confidence
o o
o
Is your greatest source of security. Allows you to ignore thoughtless comments Allows you to ignore disapproval Keeps you calling on difficult customers.
o
Gives you creative freedom.
o o
Dogged Determination
o
Download MP3s from the Author of "The Million Dollar Success Plan"
SUCCESS AND THE TOTAL PERSON Is the progressive realization of worthwhile predetermined goals Is progressive o throughout life o
Success
Is different for different people o Financial and Career o Social and Cultural o Physical and Health Mental and Education o Family and Home o o
The Wheel Of Life
Trying to achieve balance
in the areas of
o
Spiritual and Ethical
CHAPTER 7 PROSPECTING THE CONCEPT OF PROSPECTING A salesperson without prospects is out of business. A salesperson without prospects can no more close a sale than a surgeon without a patient can operate. Presenting a professional appearance, giving an impressive presentation and closing like a master are not enough to prevent failure if too little attention is given to prospecting. You must have someone to whom to tell your story: one who wants to buy and can buy. If your closing ratio is lower than you like, the major problem may be that you don't have enough good prospects -- not that you are a poor closer. o
o
o
o
o
o
Prospects are everywhere - find the best
“I’d rather be a master prospector than be a wizard of speech and have no one to tell my story to.”
-Paul J. Meyer
QUALIFYING THE PROSPECT Moving from a "lead" to a qualified prospect LeadJust Lead Just a name Researched for need, Prospect money authority Evaluated prospect Qualified along with personal Prospect information
Qualify with the MADDEN Test
M oney A pproachable D esire D ecision-Maker E ligible N eed
o
Research credit before
o
Can you get an appointment
You may have to create or discover o Often missed by salespeople o May be committed already o our company may turn down o
Always a win-win
o
Referral from a person the prospect respects Has the ability to make a buying decision o o Has the ability to pay for the product or service o
Class “A” Prospects
You have all the personal information you need to make a good presentation
o
METHODS OF PROSPECTING
Why we lose old customers (Attrition) o
Customer's company goes broke Competitor takes your customer Customer moves or dies Merger or downsizing
o
Customer-salesperson relationship deteriorates
o o o
Referrals Special Article by David Frey Have referral make the initial contact Learn how to ask for a referral o o Get letter of introduction o Have referral call the prospect o
Why people don't give referrals Can't think of anyone o Object to giving referrals o
o
Referrals tend to be horizontal
Centers of Influence o o
Believes in what you are selling Is influential with a number of
people Is willing to give you names o
The names given to you are at least partially qualified prospects, more than just leads.
o
Group Prospecting Give a brief presentation to a group
o o
Trade shows Speaking engagements
Follow up with interested prospects
o
Seminars
o
o
Planned Cold Calling At least one out of seven will be receptive. Treat cold calls as a o supplement. Don't neglect others by o too much of this. Preplan Cold Calls o o Develop effective, memorable door openers o Limit Waiting a. Fifteen minutes b. Keep busy while waiting o
o
Remain Enthusiastic
Direct Mail or Fax Prospects do read well targeted direct mail Watch quality of o purchased lists
o
o
o o o o
Create your own newsletter o
o
o
Mailing is only as good as the list Membership rosters City directories Yellow pages White pages Religious groups Past customers
Joining Civic Groups Are members the type of people that you need o
Carefully select groups
Do you believe in the group's mission
o
Assume leadership responsibilities o Become highly visible o Set contact goals for each club meeting o Keep files on each contact made o Use "re-meet " goals to help you develop closer relationships o Reach out to new members o Use active listening o
o
Look for sales opportunities
Networking - active cooperation i.e. "tips" o o
There are formal groups that you can join Sharing information makes good sense
o
o
Using Directories can be gold mines if used correctly Sales and Marketing Management - buying power index Moody's Industrial o Manual Poor's Register of o Directors and Execs The Dun and o Bradstreet Reference book o The Thomas register of American Manufacturers o
o
Contacts Influential
Observation Prospects are everywhere
o o
o
Always be looking Read the news Trade journals
Company Initiated Prospecting Telephone o Human calls o Computer generated calls o
Telemarketing
1
1
o
Advertising
o
o
Past Customers
o o o o o
Trade Shows
o o o
show
Lower cost Direct mail Newspaper Other media Go over list of inactive accounts Selecting the right show On the spot vs. lead generation Display planning Staffing the booth Pre show training Getting high visibility Managing information collected at
o
Planning follow up For Prospecting Streamline the sales process
o
Joint marketing with other firms
o o
Web Sites
Fewer leads
The 12 Faces of Call Reluctance Why do we hate to use the phone? Are you one of these th ese classic types Identified by George Dudley and Shannon Goodson. o o
Listed in order from most common to least
o
common Yielder Overpreparer Emotionally unemancipated
o
o
o
Separationist
o
Hyper-Pro
o
Role rejecter Socially selfconscious Doomsayer Telephobic Stage fright Referral aversions Oppositional reflex
Fears intruding on others or being pushy.
Overanalyzes Underacts. o Fears loss of family approval Resists mixing business and family. o Fears loss of friends Resists prospecting among personal friends. o Obsessed with image o Fears being humiliated. o
Ashamed to be in sales.
o
Intimidated by upmarket customers.
Worries, won’t take risks. Fears using the telephone for prospecting or selling. o
o
Fears group presentations.
Fears disturbing existing business or client relationships. o
o
Rebuffs attempts to be coached.
Conquering Call Reluctance From behavioral scientist and call reluctance expert George Dudley .
Acknowledgment is a major step toward recovery, but it’s not an easy move. o Denial is the most frequent companion of call reluctance o The problem is sometimes hard to identify. Admit that you o Salespeople “typically know something is wrong, but have call they may not know what it is,” reluctance. o Many who do know they are experiencing sales call reluctance don’t feel secure admitting it, because many sales organizations tend to feature cultlike, unrealistic emphasis on maintaining a positive attitude. and specifically identifying your fears or Determine your o Clearly negative thoughts. call reluctance o Tackle them head-on, one at a time. type o Curbing call reluctance is like breaking a bad habit. o
o
Token reward systems may be useful
Thought Zapping o
Adopt appropriate countermeasures Relaxation
Place a rubber band around your wrist. When a negative thought intrudes, you snap the rubber band sharply
o
techniques may help
•
•
•
o
Follow up Keep plugging o
o
Make calls.
•
•
•
•
Immediately conjure up a positive mental image of yourself Taming call reluctance is work It may take continuous effort. “Don’t confuse a change in your outlook with a change in the number of contacts you initiate with prospective buyers.” Call reluctance may actually be a sign of commitment to selling. “Salespeople who are not motivated or o r goal-focused can never be considered call reluctant,” says Dudley. Salespeople with authentic call reluctance care very much about meeting prospecting goals. “You simply cannot be reluctant to get something you don’t want in the first place.” o
MANAGING PROSPECT INFORMATION
Initial Recording of Leads Record all basic information (computer or index cards)
Classification of Prospects A simple method for manual systems Class A: You have enough information to make make a presentation Class B: You need more Class C: A "lead" "lead" you don't know know much much more than the name Sophisticated, classifications can be done with a computer
Scheduling Contacts Contact prospects using a prioritized list Keep a tickler file.
USING TECHNOLOGY TO MANAGE PROSPECT INFORMATION Personal Databases Corporate Databanks Improving Communications
Salespeople now have access to the most current information o
SUMMARY Prospecting keeps you in business Ten methods have been given. o
o
Referrals and center of influence are the best
o
Chapter 8
The Preapproach & Telep elephone hone Techn echnique iquess The Importance Of Preapproach Planning See enough people o See the right people o
The path to success
See them at the right time o
The four phases of the sales process that turns a lead into a qualified prospect
Preapproach
The planning and preparation done prior to the actual contact with the prospect o
Allows you to be less mechanical and more thoughtful thoug htful
o
Allows you to anticipate problems and plan ways to handle them o
STEPS IN THE PREAPPROACH
o
o
Analyze prospecting information. Plan specifically for each sales call. Go over your presentation.
Study product and sales literature. There is some overlap between o prospecting, preapproach and approach The amount of preapproach will o vary with industry client number of accounts familiarity o
EXTENT OF THE PREAPPROACH
etc.
Preparation & Preapproach Develop a checklist of sales essentials (exhibit 8.1) Questions about the prospect's company
What business is the prospect's company in? What are its products and o markets? o
Who are its primary customers? How big is this prospect's o company? o
Where does it rank in its industry? o Who is the actual decision maker? o Who handles the purchase process? o Who else influences the purchase process? o What are the backgrounds and personal interests of each person in the buying process o Is the company's staff well informed? o Can we help this company's staff develop more expertise? o
Questions about the prospect's company's buying center
Does any in my company know anyone in this company? How often does this company buy o my type of product or service? Who is this company's o competitor? Does my company do business o with that competitor? o What plans does the company have that could affect future need for my product? How well is this company satisfied o with its present supplier? o Does this company's potential volume of business suggest a personal call, a telephone call or a letter? o
Other Questions
Do we (or can we) use their product or service? Can I get a referral to another o department? Can I get a second appointment? o o
If I don't make the sale
Will they seriously evaluate my proposal? o
Gain a Personalized Sales Interview
with the information gathered above. o
Predict Likely Objections
o
Your past experience Your company's training
The preapproach information gathered Set sales call objectives o Rehearse o o
Prepare for the Presentation
Practice demonstrations o Mental toughening - visualize the meeting over and over with a successful outcome. o
Visualize Successful Selling Learn How to Best Approach the Prospect
o
Practice out loud. Role play.
o
Style analysis
Sources of Preapproach Information Direct questions: prospect Six 2. Other company salespeople customers Proven 3.4. Current Local newspaper Sources 5. Personal visit / cold call 1.
o
Mergers Personnel changes Changing product lines Advertising plans TV and magazine ads
o
Sales training
o
Some things to look for Be ready to answer
o o o
Ten Buyer Questions What are you selling? Why do I need it? o Who is your company? o How much will it cost? o Who else I using it and are they o satisfied? What kind of person are you? o Is your price truly competitive? o How does your solution compare o to other alternatives? o
o
Why do I need it now?
What is your record for support and service? Ask more questions during the o approach o
FURTHER QUALIFYING THE PROSPECT
o
Most prospects answer freely
Building Your Personal Self-Confidence Having a plan and knowing the customer bolsters your self confidence Dress appropriately o Be polite o Don't knock the competition o Be prompt Keep promises o Plan ahead don't leave anything to o chance Write a note of thanks o o
Enhance your perceived value
o
Look for ways to do extra things
Setting Up the Sales Interview o
Timing
Will the prospect be too busy?
What is the "best" time to see the prospect? o
Gaining Entry Letter - the weakest Cold call - good but time consuming Making the Telephone - high rejection rate First Telephone - mail - follow up call appointment Get the Some Techniques Ask former or retired employees to give Prospect's you names and the lay of the land Ask the building administrator for Name o o o
o
o
o
names. o Ask for a sales rep in the prospect's company then Solicit the salesperson's help to get to the right person. "I'm sorry, I got the wrong extension. I was trying to reach the person who's in charge of.." Show them sincere respect. o Friendly not fake. o Be honest about your intentions o Get personal information about the o gatekeeper o Sell to the gatekeeper o Question gatekeepers. o They often know what the company needs o Be thoughtful - small gifts and cards can go a long way o Keep your sense of humor
Gatekeepers
Be patient and persistent Press "0" on your phone. Usually gets a o person o
Leave a message: "I will be in your neighborhood at 11 a.m. on Wednesday, April 10, and would like to meet with you for 10 minutes to explain XYZ and how it can help you. Please let me know if this is inconvenient, otherwise I'll look forward to seeing you this Wednesday." o
Voicemail
Telephone Techniques Use of sophisticated telecommunications and information systems Combined with personal selling and o servicing skills Helps companies keep in close contact o with present and potential customers Increases sales o
Telemarketing
Do mental exercises in advance of a telephone approach Use powers of visualization. o
Enhances business productivity
Relax and close your eyes. See yourself and the prospect. o Think about what you will say and o anticipate the prospect's responses. o Create a mental hologram and live it over and over in your mind. Practice out loud - your mind believes the o sound of your own voice. o If you do not like the result, redesign the scenario and play it over again until it is comfortable and produces the desired outcome. o Your mind cannot separate a real experience from an imaged one. o
o
You gain the same benefit from this type of practice as from an actual sales interview. o
o o
Good techniques
o
Qualify prospects Budgets your time Enhances your image
Preconditions prospect for the call o
Eliminate verbal pauses Scripts can be helpful o o
First Impressions
o
Voice tones
Annoying Voice Characteristics Whining and complaining High pitch or loud tone Mumbling Too fast or too weak Monotone Strong Accent
44.0% 28.0% 11.1% 8.5% 3.5% 2.4%
The Appointment is a Mini Sale Sell the appointment not the product Why am I calling? o What is my proposal? Ask o What would make this person want to grant Yourself my request? o
What is the best action plan that I can offer? a specific time for calls Strategy points oo Schedule Always follow up a successful call with to consider another call o Arrange to avoid interruptions o Develop a written script o Verify that you have actually contacted the prospect o Just tell as much as needed to get an appointment o Keep control but don't be pushy o Excitement and enthusiasm o Don't argue! o Use the fatal alternative o Sell your name. Ask the prospect to write it down. o Be courteous. - Please & Thank You o
Key
Watch language and speech patterns o Full Information - review notes and history instantly o Auto Dialing - Fast and Accurate o Caller ID - Go right to the contact's record o
Plugging Contact Management into the Telephone.
o
Road Warrior Sidekick - your virtual assistant
The Six-Step Telephone Track A judgement will be made within 15 words o
Introduce Yourself Step I and Your Company
Keep it warm and friendly A call is an interruption Get permission to continue o
o o
Step II
Take the Curse Off the Call
Soften the impact with "just a minute," etc. A brief hard hitting lead in o
o
Step III State the Purpose of the Call
Mention referrals if you have them Usually a customer benefit o
o
An Step IV Interest-Capturing Statement
You can also use a provocative question Don't give too much information over the phone o
o
Step V
Request an Appointment
Give a choice of times (fatal alternative) Agree with the objection Switch back to your idea of reason for the appointment o
o
o
Step VI
Overcome Resistance
Ask for the appointment again o
Chapter 9
APPROACHING THE PROSPECT PURPOSE OF AN EFFECTIVE APPROACH To make a favorable or positive impression on the prospect. To gain the prospect's undivided attention. To develop positive interest in your proposition.
o o o
To lead smoothly into the fact-finding or need discovery phase of the interview.
o
FIRST IMPRESSIONS Four minutes is the average time that the prospects takes to decide about you Not all buyers act upon their first impressions o o Weaknesses of first impressions 1. Ten end d to to be be ba base sed d on on em emot otiion onss 2. All beh behavi avior or trai traits ts do do not not show show up in firs firstt impre impressi ssions ons 3. Beh Behavi avior or may may be delibe deliberat rately ely cont control rolled led by by either either party party duri during ng initi initial al contact. o
4.
Antecedent states may influence either party's current behavior
There's No Second Chance To Make a Good Go od First Impression
Organization, Visual Factors Professional Habits o
o o
o
Some details about you are a distraction : Car, Grooming, … Watch your body language Watch what you wear Don't advertise political, religious or group affiliations that may evoke a response
Be Prompt Have a clear agenda o o State the purpose of your call right away o
Be prepared with pre approach information o
Building Rapport
Actions
o
Pronounce the name correctly Use compliments carefully Respect personal space
Shake Hands Keep eye contact Warm greeting
o
Look for common ground
Don't smoke, chew gum, etc
o o
Enthusiasm, Enthusiasm
Attitude
SURFACE LANGUAGE o
ng o
Includes All Aspects of Appearance
g o
ories o
e o
o
groomi clothin access postur
Affects first impressions
even though they may actually provide limited or shallow insight into the true person. Dress Conservatively o Dress Attractively o Choose Accessories Carefully o Dress Appropriately o
Dress the Part We all wear a uniform.
Give Attention to Grooming Get the prospect to o take you seriously o
Projecting an Image
Work with your physical characteristics Clothing should be professional and o o
Some Style Tips
understated Neutral colors like blue, taupe and gray o Wear suits to meetings. Jackets give the o appearance of power. Blue is the most powerful color o Keep your shoes shined o Match socks to clothing o Keep accessories simple o o Take dress cues from the highest person in the company o
Dress appropriately for your business
Basic Dress Guidelines for Men and Women Men
Suits are still appropriate. o More casual looks include wool pants or quality cotton slacks. o
o
Women
o
One staple is a sheath dress that can be worn alone or with a blazer.
A dress shirt and tie, a nice sweater, or o More casual looks include a blazer sweater sets and tailored pants
THE PROPER GREETING Choice of Greeting
The Rule of Ten - the first 10 words word s should include a form of thanks
o
Watch out for cliches Failure to prepare in advance could lead to o stammering or faltering speech, either of which creates a negative impression. o
plan ahead
o
o
kept quite simple.
You must be ready to alter the prepared approach if the situation demands it o
The Handshake
J.T. Auer’s Nine Categories of handshake Name
Flabby
Characteristics o
Tips Pessimistic
o
need reassurance
Limp, Soft Paw
o o
The Squeeze
Squeeze like a vice
o
o
“Next To Body” Impelling Nongripping Robot
Jackhammer
Arm and elbow are bent and right hand stays close to the side Hand is thrusted forward and pumped vigorously Hand is thrust forward. Fingers do not move.
Quick and automatic
Handpumping
Usually men want to show strength and power Possible inferiority complex Meet needs with flattery o Favored by politicians and others who are hesitant to take risks Use caution They seem o insecure o
Use more insistence Don’t want o involvement o
Approach slowly o Indifferent and self interested o
Show that you are indispensable to their needs Lots of will power o Tend to be o inflexible o
o
them o
Prison Normal
Hold your hand and won’t give it back. Open and honest
Be determined with Opportunists
Emphasize how fortunate you are to meet Trust your instincts o
Driver firm may turn hand over yours Handshake helps Amiable may not make eye contact determine personality style The handshake is one of the first nonverbal signals you receive. o
o
Be sure to make use of it to learn how to
deal with a particular prospect. Stand (men and women) o Maintain eye contact o Step or lean forward o Greet the other person, and repeat his or her name o Have a pleasant, animated face o Watch for people that do not like to be touched o Firm, consistent, pressure o For moist hands – carry a special handkerchief o
Rules for An effective handshake
Hands should meet equidistant o As you approach someone, when you are about three feet away, extend your right arm out at a slight angle across chest, with your thumb t humb pointing upward. o Lock hands, thumb joint to thumb joint. o Firmly clasp the other person’s hand – without any bone crushing or macho posturing. o
So how can you make your handshake more memorable? Four opportunities to shake hands
Pump the other person’s hand two to three times, and let go. 1) Wh When en yo you u are are in intro trodu duce ced d to to som someo eone ne an and d when you say good-bye 2) Wh When en a cl clie ient, nt, cu cust stom omer er or or any any vis visit itor or fro from m the outside enters your office 3) When you run into someone you haven’t seen in a long time o
4) When When you you en enter ter a mee meetin ting g and and are are int intro rodu duce ced d to participants International protocol dictates o Shake hands with everyone in a room Omissions are noticed, and are considered a rejection. Women should initiate handshakes, and o shake hands with other women and men. Not extending her hand to a European male will cause an American businesswoman to lose credibility. o Western and Eastern Europeans reshake hands whenever they’re apart for even a short period of time (for example, lunch). o French and Japanese business people shake hands with one firm gesture. o In Japan, the handshake may be combined with a slight bow, which should be returned. o In Arab countries, handshakes are a bit limp and last longer than 1 1
1
typical American handshakes. Latin Americans also tend to use a lighter, lingering handshake. o In all cases o don’t pull your hand away too soon 1
1
such a gesture will be interpreted as a rejection.
Other Suggestions For Greetings Use of of the Prospect’s Name, “The sweetest sweetest and most important sound in any language.” o
First Name? or Formal Name?
o o
o
style
Based on Relative ages Prevailing custom Type of product or industry Your conclusions about behavioral
Remembering the Buyer’s Name Small Talk? or Get Down to Business? Suit the Approach to the Person Gaining Attention Capturing Interest Ten Questions
Relationship tension is not uncommon in the beginning The purpose of small talk. Gain an advantageous, positive beginning that will break the ice and ease the tension. “Warm up” a cold environment Provides additional information about the prospect. Small talk can be negative if it conflicts with the prospect’s behavioral style. You must first estimate the personality style. Computer Use in the Approach
Appeal to the senses Introduce of a benefit How did you get your start in the widget business? What do you enjoy most about your profession? What separates you and your company from the competition? What advice would you give someone just starting in the
widget business? What one thing would you do with your business if you knew you could not fail? What significant changes have you seen take place in your profession through the years? What do you see as the coming trends in the widget business? What was the strangest or funniest incident you’ve experienced in your business? What ways have you found to be the most effective for promoting your business? What one sentence would you like people to use in describing the way you do business?
APPROACH OBJECTIVES Objectives of a “statement” or “demonstration” approach o o
o
To capture the attention of the prospect. To stimulate the prospect’s interest. To provide a transition into the sales presentation.
Objectives in opening with questions To uncover the needs or problems important to the prospect. To determine if the prospect wishes to fulfill these needs or solve these problems. o
o
To have the prospect tell you about these needs or problems, and the intention to do something about them. o
TYPES OF APPROACHES Self Introduction Approach
Addresses the prospect by name o States your name and company o
Presents your business card. Consumer o Gives the prospect a reason for listening o
Benefit Approach Curiosity Approach
Question Approach Compliment Approach Referral Approach Shock Approach
Product Approach
Suggests a risk for failure to listen. o You should know something about the prospect o
Ask questions whose answers will respond favorably to your product/service. o Quickly establishes two-way communication. o
o
o
Enables you to investigate the prospect’s needs and apply the benefits of your product or service to those expressed needs. Signals your sincere interest in the prospect.
Helps the salesperson establish leverage by borrowing the influence of someone the prospect trusts and –respects. o presents a shocking statement of what could possibly happen if the prospect does not buy your product. o actually hand the product, or the physical representation of it, to a prospect to produce a positive reaction. o stirs interest o permits a demonstration o makes a multiple sense appeal o Creates a feeling of commitment to listen and to participate actively in the presentation. o
If bringing the actual product is not feasible, you must use other devices (model, sample, sample, picture, …) : This serves to help the prospect focus and hold attention on your product o doing something unusual to capture the prospect’s attention (example, dropping a “new, unbreakable china” platter to demonstrate durability). o
Showmanship Approach Curiosity Approach Opinion Approach Premium Approach
o
o
o
make the prospect curious about your product. ask the prospect for his opinion on your products. giving the prospect a sample of your product or a small gift.
Using Questions Results in Sales Success
Ask Questions to Obtain information from prospect. Develop two-way communication.
o o
Increase prospect participation.
o
Direct Requires a short answer – usually “yes” or “no”. Question Nondirective who – what - where - when Open end questions Question - how - why. Allows the salesperson to Rephrasing better clarify what the Are you saying that ….......?” … .......?” Question prospect means. o Redirect prospect to points of agreement. We agree that having a Redirect supplier that can reduce your Question o Often used as a backup costs is vital. Don’t we? opening statement Three Rules for Using Questions Use only those questions to which you can anticipate the answer (those o that won’t put you between a rock and a hard place). Wait for an answer to your question. - Just listen. IS THE PROSPECT STILL NOT LISTENING? o Quickly Hand or Show the Prospect the Product. – Ask A Question. BE FLEXIBLE IN YOUR APPROACH: Be Prepared To Make Changes in Your Approach and Overall Presentation o
After the interview The prospect should remember you in subjective subjective terms. Your goal in managing your overall appearance is to get the o prospect to take you seriously. o If you project an attitude and look of authority and power, you are more likely to gain an audience with the prospect.
o
When you achieve that hearing, you are more likely to close the sale if you project confidence, success and experience.
o
Chapter 10
Asking Questions and Listening – The SPIN
The Purpose of Asking Questions The Salesperson as a diagnostician Provides a roadmap for you to follow Allows prospects to discover for themselves their o problems o Determine prospect’s buying criteria o
Salesperson as a diagnostician
o
Need discovery is more important than any other step in the sales cycle
•
Plan your questions in sequence to gain information in a logical Research findings suggest that successful sales interactions: Contain more requests for information than opinions Contain fewer statements of disagreement d isagreement
•
Closing is directly linked to questions
• • •
Specific Planning for Asking Questions o
Four key objectives of questions To discover the prospect’s “hot button” To establish purchase criteria To agree on a time frame for completion of negotiations To gain agreement on the problem p roblem before beginning the actual presentation of benefits o
Gear questions to the benefits of your product
Asking questions in rapid-fire machine-gun fashion… Causes prospects to withdraw or to become angry o Do not keep the prospect pinned down with a ceaseless chatter of oral machine-gun fire o
Avoid attempting to force or manipulate answers you want to hear
o
SELECTION OF TACTICS Phrase Each Question so That it Has Only One Clearly Focused Purpose
Avoid Technical Language that Might Confuse the Prospect
Questions are easily misunderstood Phrase each question to o maximize the amount of information you receive o
Terms Unique to Your Industry, Company, or Product That o
Amiables and analyticals take longer to respond. Be patient. Drivers are task oriented. Show o them that they can win Expressives show personal o orientation. Testimonials and showmanship. o
Ask Questions That Help to Reveal the Behavioral Style of the Prospect
The Spin Neal Rackham – A British research psychologist developed the “SPIN” selling system. A precisely defined sequence of four question types o Enables the conversation to logically move from o exploring the customers’ needs to designing solutions To uncover Implied Needs and develop them into Explicit Needs that You, the salesperson, can resolve. The SPIN incorporates all of the concepts in this chapter o o SPIN is a registered trademark of Huthwaite, Inc., and has been developed into a learning/seminar program by Hodgden Consulting Services. o
Some Links at the Huthwaite Site Why Hospital Sales can be elusive Understanding how customers buy Improve Your Negotiation Skills - Just take the tablet
What makes a high performer? A New SPIN on Sales Are your presentations sales winners or sales killers? Are your people negotiating or Think global. Act local. concession making? Huthwaite International Shares Exploring the no-grow situation. Sales Skills Expertise Telenor Mobil stay ahead with Huthwaite A positive change in habits helps the habitat experts at Legacy. SKF Europe look to solution selling with Xerox Norway takes SPIN® full Huthwaite circle A radical company restructure Creating a customer- focused sales required big changes in behaviour culture at ... Tata Telecom achieve leadership Sun Microsystems - a total position solutions approach Hill-Rom develops its own internal Coaching for success at Nutricia SPIN training capability Why coaching is not happening Executive Network reaps a ten-fold (and how it can) Overview return on their training Effective Maximising marketing messages Skills and strategies for sales Overview - SPIN marketing performance improvemen improvementt MADKAM Overview - Major account Creating major sales Overview development and Key account SPIN selling management Complex relational selling Overview The make or break skills Overview Account strategy for major sales Effective sales proposals and ... Developing customer needs, the Insight into the changing role of the key to increasing sales revenue and procurement professional ...
S S it u a ti o n Q u e s ti o n s
Data-gathering questions. o
Uncover facts and background information
o
Examples: o o o o
o
"Would you describe your current account documentation system?"
When overused, these questions bore the customer. clarify the customer's current situation Be sure each question is necessary Can be overused (often are by inexperienced salespeople) Don't ask a question to get information that you should have obtained before the call. What is your position? o o How long have you been here?
Individual
Company
What do you see as your objectives in this area? What sort of business do you run? o Is it growing or shrinking? o What is your annual sales volume? o
o
o
How many people do you employ? What equipment do you use at present? How long have you had it? Is it purchased or leased?
o
How many people use it?
o o
Business
o
Problem P Questions
Here you help prospects define their needs explicitly o
"So you're having trouble account-sensitive ensitive Example: retrieving account-s data on a timely basis?" Problem Questions Every problem implies a need! Are designed to identify a customer's problem Are more often asked by experienced salespersons. Inexperienced reps are tempted to see the customer's problems as a distraction or threat. The more experienced you become, the more you want to uncover difficulties The more you realize that customer difficulties present you with an opportunity to be of service. Other examples Is this operation difficult to perform? Are you worried about the quality you get from the old machine? How satisfied are you with your present equipment? What are the disadvantages of the way that you're handling this now? Isn't it difficult to process peak loads with your present system? How is the reliability on this system
I I m p l i c a t i o n
Get the prospect to discuss the problem and how it might be improved
Q u e
s t i o n s Example:
"What kind of closing opportunities do you think your people have missed because of the data-retrieval problem?" o
The customer's problems have
o
o
o
effects consequences implications
Implication Questions
Are strongly linked to success in larger-ticket sales Are more difficult to phrase than either Situation Questions or Problem Questions. A problem can generate many implications. You may have to ask several of these for each problem Are essential to moving sales forward Make the problem seem more acute to the buyer Help to make the customer (and the seller) aware of hidden complications or of potential difficulties that may arise if steps are not taken to remedy the immediate problem. By definition these questions make the customer uncomfortable? Be careful not to offend or upset
o
Examples How will this problem affect your future profitablity? What effect does the reject rate have on customer
satisfaction? What effect does that have on your output? You only have three people that can use them. Doesn't that create work bottlenecks? It sounds like the difficulty of using these machines may be leading to an employee turnover problem. Is that t hat right? What does this turnover mean in terms of training cost? Could that lead to increased cost? Could that lead to customer service s ervice problems? Will it slow down your growth?
to build up the value Need-Payoff Help your proposed solution N Questions ofin the customer’s mind
Need-Payoff Need-Payo ff Questions Are linked to success in more complex sales. Can be especially useful when you're talking t alking to top decision makers (or those who will influence them) Increase the likelihood that your solution will provide the t he payoff that answers the need. Focus the customer's attention on the solution rather than the
problem
Encourage the customer to outline the benefits that your solution will provide his or her company Pre-empts objections Enlists customer buy-in.
Examples Would it be useful to speed this operation by 10%? If we could improve the quality of this operation, would that help you? Is it important to solve this problem? Why would you find this solution so useful Is there any other way that this could help you out? So would you be interested in a way to control this cost?
Would it help you if ................? Would you be happier if.................? if.................?
TRANSITION FROM APPROACH Components of a good transition often called a "bridge" Aim toward the bridge with your questions by
o
Tell the prospect what you intend to do Provide a logical agenda
o
Tell the prospect what you are doing
o
o o
o
Planning questions in a logical sequence Predict all possible answers Prepare a smooth transition from each possible answer
If I could show you a way to get get quicker, more reliable retrieval and the gain in revenues would you like to see it? o
If I could tell you a way to get get quicker, more reliable retrieval and the gain in revenues would you like to hear about it? o
Specific Questioning Techniques Uncovering specific facts Reducing tension because they are o easy to answer Maintain control by directing flow of o conversation o
Closed End Questions Structured alternatives Multiple choice
Bind prospect commitment to a specific position o Allow the prospect to move in any direction o Cannot be answered with a yes or no o Ordinarily begin with Who, What, Where, When, Why or How o Stimulates the prospect's thinking and increases dialogue Helps uncover the dominant buying o motive o
Open End Questions Identify a topic but do not provide structured alternatives.
Uncovers the personality of the buyer. o
Classification of Questioning Techniques Amplification Questions: DoubleCheck Question
Non verbal Gestures
restate or rephrase the prospect's remarks. Tells the prospect
o
That you have been listening That you understand their concerns That what they say is important to you
o
That they are making themselves clear
o o
o o o
Nod head lean forward raise eyebrows
inject words or phrases to keep the prospect talking o
Use of Silence
Tells the prospect that you don't quite understand Allows you to relax the pace o Lets you formulate your next question o o
Don't abuse or you'll make the prospect uncomfortable o
Continuation Questions
They simply encourage more communication from the prospect o
Use a few words or phrases to keep the prospect talking o
Advantages of Using Amplification Questions Checks for mutual understanding Allows the salesperson to rephrase what the prospect appears to o have intended o Invites the prospect to expand or clarify any point of disagreement o
o
Narrows down generalizations and clears ambiguities
Classification of Questioning Techniques Repeat or rephrase part of the prospect's last response Gets prospect to see things from your o perspective o
Internal Summary (reflective) Questions
o
Can underscore an important point. Formally state the problem
o
Confirm with the prospect
o
Getting Agreement on the Problem
BENEFITS OF ASKING QUESTIONS Before the presentation
o
Agree that a need or problem exists
o
Agree to explore your proposal
Build prospect confidence o Keys your product's benefits focused on specific prospect needs o Encourages active prospect participation o Determines the prospect's hot button Determines the prospect's dominant buying o motive o
The goal of fact finding questions
o
Strengthens your relationship
LISTENING Faulty listening results in misunderstandings o
o
Effective listening includes
Hearing Hear and receive the message o Listen actively Think as you listen Maintain eye contact Put aside other activities o
o
Receive message openly
Interpreting Process and assinn meaning to the message o Detect central meaning Interest Need Rejection o Verify your interpretation o
o
Assessing Review Emotions Evaluate content, not o delivery Be objective o
Responding o
o
Reserve judgement until message is complete o
Get Common understanding
o o o o
Clarify your expectations Review priorities Review resources that apply Decide on a response Negotiate if necessary
Achieve understanding and commitment o
Improving Listening Skills We can speak at 125 - 150 words per minute o We can hear at 600 words per minute o Use the spare time to Anticipate where your prospect is going Mentally summarize the message Formulate a response Read between the lines Use silence strategically o
Capitalize on Speed of Thought Annoying Listening Habits to avoid Listening Habits to Develop
o o o o o o
o o o o
Disagreeing or interrupting Invasion of personal space Doodling, wandering eyes Overdoing acknowledgemen acknowledgements ts Showing off personal knowledge Having to top everything Be Patient Take Notes Avoid Prejudgment Reinforce strategically
Manipulation
influencing prospects to buy a product or service not in their best interest. Make use of silence to give prospects opportunity to express their feelings. Avoid attempting to force or manipulate answers you want to hear. Straightforward questions make no attempt to manipulate the prospect to make a premature commitment to the salesperson's product. Integrity and sincerity are the hallmarks of the consultative style of selling
.
CHAPTER 11
PREPARING FOR AN EFFECTIVE PRESENTATION Call Objective Each interview should have a specific objective How much information about the prospect is available o The type of product or service you are selling o
The Call Objective is dictated by
Other factors unique to your own business and that of the prospect. o
Initial call
o o
Survey call o o
Proposal call
o
Calling on Regular Customers
uncover buying motives Presentation Handle objections
o
Trial close Get the order Try to provide new money making ideas
o
Don't give the same presentation over and
o
Closing call
Establish rapport and gather information meet decision makers
o
over
Sales Call Planning Sheet Name Type of company Address Names of individuals Buyer background and profile Major competitors Sales call objective Best times Needs analysis Fact finding questions Features and benefits to stress Presentation Objections strategies anticipated Objection handling techniques o
o
o
o
o
Sales tools to take Results
Closing techniques
Style of the Presentation Memorized Presentation Quick Productivity Reliable Information Proved Effectiveness Confidence Building Designed by Experts
Advantages Beneficial during initial learning periods Ensures the right information gets to the prospect Presentations are typically tested and refined Knowing the presentation works for other
o
Ask and answer questions Explore options
o
Seek creative solutions
o
Buyer or seller should still be able to o o o o
o
Practice it Polish the delivery until it becomes natural. Internalize to the point that it is a normal, personal message. Once memorized, it comes from your heart and mind. The memorized presentation is a guide to lead buyer and seller through the sales process.
The Outline Presentation Seller prepares an outline of the presentation in written form. Useful when the product or o service requires extensive research into customer needs o You must have developed several "units of conviction" worksheets o
o
The call is still structured
Any written outline or plan Reveals need for any o additional information, Makes it possible to check o needs and goals against suggested solutions, Makes sure that you have a clear picture of the entire situation before arriving for the interview. o
The Extemporaneous Presentation o
Only recommended for the most experienced sellers
Takes a tremendous amount of a. Pr Prod oduc uctt knowl knowled edge ge b. Selli Selling ng skill skillss and and experien experience ce
The Salesperson’s Curse “ You know your product better than you know how your client’s business can use it.”
The Purpose of the Presentation Main Goal
o o
Provide knowledge via
o
ges
To sell your product to your customer. Features o Advanta Product o Marketing plan
o Benefits Business proposal. of your Allow buyer to develop positive personal o attitudes toward your product. Attitudes result in desire (or need). o o
Other Goals
Convert need into want and into the belief that your product can fulfill a certain need. your product is best o o
Convince the buyer that Three Essential Steps Within The Presentation
you are the best source from which to buy. Fully Discuss Your Product o
1 1 1
Present Your Marketing Plan. Explain Your Business Proposition (value/cost (v alue/cost comparison). o Don't worry about making the perfect presentation. It's more important that you truly believe in your product. o Sellers typically presents 6-8 features or benefits in a presentation Prospect remembers only one o o 39% of the prospects remember that one thing o
Facts About Presentations
Features Advantages Benefits
incorrectly 49% percent remember something that was not even mentioned
o
Strive for Passion, Not Perfection Attitudes result in desire (or need).
Allow buyer to develop positive personal attitudes toward your product. Convert need into want and into the belief that your product can fulfill a certain need.
THE SALES PRESENTATION TOOLBOX
Persuasive Communication Construct logical reasoning based on: o
Seven factors that help you to be a better communicator: 1. 2. 3. 4. 5. 6.
Using Usin g ques questi tion ons. s. Bein Be ing g em empat pathe heti tic. c. Keepin Kee ping g the the mes messag sagee simp simple. le. Crea Cr eati ting ng mutu mutual al tru trust st.. Lis iste teni ning ng.. Having Hav ing a positi positive ve attitud attitudee and enthusi enthusiasm asm..
7. Be Bein ing g be beli liev evabl able. e.
o
Major premise. Minor premise.
Conclusion. Make the presentation fun. Personalize your relationship. Build trust. Use body language. Control the presentation. o
o
o
o o o
o
Use the Paul Harvey dialogue.
Suggestions to Aid Persuasion Suggestive propositions Prestige suggestions Autosuggestion Direct suggestion Indirect suggestion Counter suggestion
o
now.
suggest the prospect should act
name the famous or respected people or companies that use your product. o attempt to have the buyer sell himself by imagining himself using the product. o suggest that the prospect buy your product o make it seem as if the purchase of your product is the buyer's idea. Gets the buyer to express why he or o she needs the product o
o
Will probably also compel him or her to defend his purchase decision.
Make Your Statements Visual Simile
a comparison statement using the words "like" or "as"
Metaphor
implied comparison that uses a contrasting word or phrase to evoke a vivid image.
Analogy
compares two different situations which have something in common.
Proof Statements
Past sales help predict the future. The guarantee. Testimonials. Company proof results. Facts and Statistics Demonstrations - show the product in use Testimonials Have your referral call the prospect Bring letters Samples - appeal to the senses if possible
Case Histories
Independent research results
Restate the benefit before proving it. State the source and relevant facts or figures about the product. Expand of the benefit.
Induce Participation
Ask Questions. Product use. Visuals. Demonstrations. Listen Encourage the prospect to ask questions
The Visual Presentation Show and Tell
Increase retention. Reinforce message. Reduce misunderstanding. Create a unique and lasting impression. Show your buyer you are a professional. VISUAL AIDS HELP TELL THE STORY
Behavioral Style and Prospect Participation Presenting to each of the four social styles
o
o
Driver
Expressive
Planning
Planning
Short term results
Discover their goals and plans at the preapproach o Concentrate on your offering's exclusive aspects o
Your product should show immediate benefits
o
Presenting Personal relationship is not important. Don't spend too much o o
Stress their personal and company benefits
Presenting o o
They are visionaries, dreamers Open with innovative suggestions for them to grow
time on the relationship Move quickly to a o substantial benefit with a payback Be brief stress the o bottom line Get them involved. Let o them lead Drivers test your mettle. o Prepare for a debate. Answer objections. Don't o bluff o Present alternatives. Let the prospect choose o
o
o o o
o
o
Let them see how it fits into their plan.
Analytical
Amiable
Planning
Planning
Structured. They study everything Know their business o thoroughly Use facts o Prepare several alternatives
o o o
o
o
Presenting Data oriented o Structured approach o Low key, logic based Be sure that they o understand your structure Emphasize test proven o benefits Visual aides, charts and o graphs. "Leave behinds" Don’t exaggerate or act o flamboyantly Point out positives and o negatives of your offering o
o
Learn and relate to their "game plan" Lots of questions Discuss ideas and concepts with respect Use some showmanship Don't get into arguments Ask if they want you to respond to their "blue sky" comments. Testimonials are important
Use an action close.
o
o
o
Use a detailed summary as a close.
They want to know you. They need your enthusiasm Approach with lots of personal information Bring testimonials, case studies and third party references Develop a personal relation ship with the prospect
Presenting o o o o
o o
o o
o
Convince of your sincerity. They have a hard time saying yes. Don't sound "canned." Make it look real informal but well organized Empathize. Reflect their feelings Spend time on the relationship during the presentation Be open and candid Use an interesting, entertaining style Assume the sale and move to the next step.
Demonstration o
A well planned demonstration will
o o o o o
o
Planning a Demonstration Getting Participation in a demonstration
o o
o o o o
o
o o
o
Sales Demonstration Checklist.
o
o
o
o
The salesperson's curse
o
o
Catch the buyer's interest Fortify your points Help the prospect understand Keep you interested and enthusiastic Cut down on the number of objections Help you close Get the prospect "involved" Concentrate the Prospect’s Attention on You Demonstrate Your Interest in the Prospect start off by handing them something Demonstrate Benefits not features Let the prospect do something simple. Let the prospect work an important feature. Let the prospect do what he would frequently do. Ask the prospect questions throughout the demonstration. Is the demonstration needed and appropriate? Have I developed a specific demonstration objective? Have I properly planned and organized the demonstration? Have I rehearsed to the point that the demonstration flows smoothly and appears to be natural? What is the probability the demonstration will go as planned? What is the probability the demonstration will backfire? Does my demonstration present my product in an ethical and professional manner? "You know your product better than you know how your client's business can use it."
You must determine what kind of buying decision to recommend to the prospect
Units of Conviction
o
Concise, carefully prepared "mini presentations" Building blocks in constructing the information you present. Prepared ahead of time Practiced until you are comfortable Add them to your store of available options for later use. Become a permanent part of your selling arsenal. Learn how to personalize units of conviction
o
Recall them in the best order for helping the prospect see them clearly
o o o o o
Each unit or mini presentation consists of five elements Buying Motives To Associate With A Benefit
Feature Benefit
o
Quality Convenience Cost saving Status
o
Security
o
Buying motive associated with this benefit
o o
Evidence or proof statements Nail down or trial close
Features
Benefits o
o
The components of your product or service o They are the same no matter who uses the product or service.
Benefits are the value to the customer Translating features into benefits is one of your most important skills Transitional phrases connect features to benefits
1
Because .. This lets you … That means …
1
What this gives you …
1 1
Feature benefit worksheet - exhibit 11.5 o
You need to develop a general sheet
o
A specific sheet for each customer
The Nail Down or Trial Close o
o
o
A yes/no question that confirms that the prospect agrees that the benefit is applicable If the prospect says no then go back over this benefit This gives you feedback and builds commitment
Nail Down or Trial close should always be made o
o o
o
After making a feature - benefit sequence After the presentation. After answering an objection. Immediately before you move to close the sale
Forms of Nail Downs (Trial Closes) Aren't They? Aren't you? Can't you? Couldn't it? Doesn't it?
Hasn't he? Don't you agree? Hasn't she? Don't we? Isn't it? Shouldn't it? Isn't that right? Wouldn't it? Didn't it?
Standard Nail Down
Haven't they? Wasn't it? Won't they? Won't you?
Put the nail down at the end
Example: "After seeing this feature you can really see the benefit. Can't you?"
Inverted Nail Down
Put the nail down at the beginning.
Example:"Can't you see the benefit of this feature?"
Internal Nail Down
Embed in the middle of the sentence.
Example:"After seeing this feature, can't you see the benefit?" When the customer says something Tag on Nail Down positive, reinforce with a nail down. Customer: "I can see the benefit of that feature." Example: Seller: "Can't you?"
Use of Sales Aids The Organizer
A series of visuals that go step by step through the sales process. (eg A flip chart) o Built around benefits o Fosters 2 way communication o Leads to the close o Gets the whole story out in less time
Company prepared organizers Supplements that you should add
o o o o
Keeps the presentation on track Personal letters of reference Business cards of clients Pictures of clients using the product
Pictures of finished installations Other Audiovisual Aids Computers o Videos o Slides o
The most popular Audiovisual Aids Guidelines for Using Visual Aids, Dramatics, Demonstrations.
o
Presentation software use is growing o Rehearse them! o Customize them to fit each individual customer. o Make them simple, clear, and straight forward. o Control the demonstration. o Make the demonstration true to life. Encourage prospect participation. o o
o
Incorporate trial closes (nail downs) after showing or demonstrating a major feature, advantage, or benefit in order to determine if it is believed or important to the prospect.
Handling special situations
The Setting for the Sales Interview
o
Their office - Your office - Restaurant :
o
Less interruptions •
Your prospect is obligated to listen Non threatening atmosphere •
Less stressful Wait until prospect's attention is completely back to you. Restate selling points that were of interest to the prospect. Invite participation. •
o o
Interruptions
o
o
Make sure interest has been regained, then proceed. Offer to leave the room if the prospect must take a call
o
Turn off or silence your cell phone or pager.
o
Phone Calls
TEAM SELLING Customer gets involved with more than one person Benefits of o More accurate need definition o Very useful of product is technical o
Team Selling
Different individuals bring more selling skills o Requires special planning Risks of o Must have a leader o Must agree on objectives o
Team Selling
o
The Roles of Each Team Member
o
Must know the product, company policies and markets Tech advisor, Finance advisor, Etc … Salesperson and barrister (attorney) Good guy. Bad guy a.Makes salesperson more careful b. Impresses the importance off the meeting Opener and closer o
o
Combinations that Work (There are a lot more than what is in the book.)
Must be better rehearsed o Coordinates the effort o Monitors presentation o Shows leadership, maturity and Leader responsibility
o o
o
NEGOTIATION AND THE CONSULTATIVE SALES CYCLE FRAMEWORK Negotiation in Selling The Planning Phase o o
o
Trying to reach an agreement Use a win-win approach Negotiation takes place throughout each phase of the selling process.
Approach and Need Discovery Phase o
o
Predict problems ahead of time
o
Talk to others that have worked with the prospect
o
Presentation, Objections, and Commitment Phase
Information gathered will uncover the real needs of the prospect
o
Agreement that a problem needs a solution sets the stage for negotiations
o
Both parties are searching for a solution The "nail down" or trail close helps you confirm that needs are being met
PRINCIPLES OF NEGOTIATION Negotiating Tactics o
Probing Questions o
Restatement of what the prospect has said
o
Trial Balloons
o
o
even after need discovery. Many objections are a request for information Shows that you are listening Gives you time to think a "what if" question that assumes that the prospect has made the decision
Tactics that Might Be Used Against You Nibbling
o
o
Hot Potato o o
Higher Authority o
Bad Guy, Good Guy Flinching
o o
Red Herring or Decoy
o
request for additional freebies after the agreement has been made "Limited budget" Test the validity of the budget Talk it over with the "boss" You did not qualify this prospect physically grimacing when price is mentioned prospect says something is not negotiable when in fact it is Avoid through needs discovery and active listening
Special Situations o
Ultimatums o
Trade-Offs Deadlocks
o
o
Set it aside for now. It might not be all that important. Don't give away anything without getting something Get help
CHAPTER 12 HANDLING OBJECTIONS
Negotiation and the Relationship Sales Cycle o o
o
Trying to reach an agreement based on mutual interest Use a win-win approach Negotiation takes place throughout each step or stage of the selling process
ATTITUDE TOWARD OBJECTIONS objection is anything the prospect says or does Objection An that is an obstacle to smooth closing. o
WELCOME OBJECTIONS!
o
o
Learn to Accept Objections as a Challenge Which, When Handled Correctly, Will benefit you and Your Prospect. If You Fear Objections You Will Fumble Your Response Often Causing You to Fail. Prospects that buy have 58% more objections.
WHY PROSPECTS OBJECT o o o
Psychological reasons
o
o
o
o
Logical Reasons
o
o
Dislike decision making Prefer old habits Reluctance to give up something old for something new Unpleasant past associations with you or your company Resistance to domination Perceived threat to self image All or part of the presentation was misunderstood Prospect is not convinced Hidden reason (stall)
WHEN DO PROSPECTS OBJECT?
Question:
Any Time During Your Sales Call - From introduction to close.
Answer:
TYPES OF OBJECTIONS Stopper Objection - no solution can be found
No Need No Money
o
This is widely used because it gets rid of the salesperson.
It is tricky because it also includes a hidden objection and/or a stall. o Encompasses several forms of economic excuses o
It is simple for the buyer to say. Say that it is risky to discuss the product's price until it can be compared When buyer asks to the product's benefits. for the price ----OR---Quote the price and go right on selling. Once you convey the benefits, price becomes a secondary o
factor which usually can be dealt with successfully. o Used to determine if a prospect is or is not convinced the price is too high. The Price / Value Formula.
No Authority
Price/value = cost comparison of what is Cost received to money paid. what the prospect sees the Value product doing for them. You must determine if the o statement is truth or it is a o Usually a stall smoke screen designed to get rid of you. o Screen for decision making authority One of the toughest stalls o early to overcome arises when selling o
a new consumer product.
Searcher Objection - A Valid Request for Information o
"I am not interested" "I don't have any money for this" "We are satisfied with what we have now"
o
"I really like the competitor's product"
o o
Searcher Objection - A Valid Condition of Sale Sometimes prospects may raise an objection that turns into a condition of the sale. "I don't like the color, size, etc" o o
o
"I need it by a next week"
Invalid Objections Prospect who asks trivial, unimportant questions Prospect conceals feelings beneath a veil of o silence. o
Hidden objection Stall "Put Off"
The salesperson must ask questions and carefully c arefully listen in order to smoke out the prospect's real objection. "I'll think it over..."` o o
o
"I'll be ready to buy on your next visit"
8 Objections from justsell.com from justsell.com 1 2 3 4 5 6 7 8
lack of per lack perce ceiv ived ed value in the product or service lack la ck of per perce ceiv ived ed urgency in purchasing the offering percep per ceptio tion n of an an inferi inferiori ority ty to a competitive offering internal political issue between parties/ departments lack of f funds funds to purchase the offering personal issue with the decision maker(s) corporate initiative with an external party "it's safer safer to to do nothing" perception
Classify the Objection Six Basic Categories of Objections
Product objection Objection to the salesperson Objection to the your company Don't want to make a decision Service objection Price objection Major or minor objection. Practical or psychological objection. Practical (overt). Psychological (hidden).
Other Classifications Some General Tips for Handling Objections Keep the buyers attitude toward your product positive. Let buyers know you are on their side Help with objections. If you get no response, give a multiple choice question to display an attitude of genuine caring. Your goal is to help your prospect realistically examine reasons for and against buying now. The main thing is not to be satisfied with a false objection or stall. Bring out any or all of your main selling benefits now and keep on selling! They need your product or service Your product is the solution to my problem You are the person from whom I should buy Your company is the one to deal with The time to buy is now
The prospect must agree that
The price and terms are fair
Strategies for Deciding when to Answer Objections Anticipate incorporate objections & answers in the presentation and Forestall be certain that the objection will arise Objections Prevents a confrontation and communicates objectivity o o
o
Gives you time to present more benefits o Allows you to maintain control o Gives you time to think about the response o Acknowledge the objection o Employ empathy o Promise to get back to the question o
Postpone the Answer
Write it down o The prospect not listening. o prospect feeling that you are hiding something. o The appearance that you also feel it's a problem. o The appearance that you're not able to answer because you do not know the answer. o The appearance that you are not interested in the prospects opinion. o
Answer Immediately Postponement of objections may result in:
The appearance that you are not sympathetic o Serious objection will be repeated o
Do Not Answer an Excuse Disagree Without Being Disagreeable
Not answering suggests that the excuse is not truly relevant o Selling should be win-win o Don't try to show up the prospect o
Challenge ideas without offending Remove blame by "I have not made myself prefacing answer. clear......" Make a concession "You raise an excellent before taking point….." exception: o
Add all new objections to yr database & Share them with yr cohorts
A Negotiating Strategy for Handling Buyers’ Concerns (A Six-Step Process)
Listen Carefully
o
o
Confirm Your Understanding of the Objection Acknowledge their Point of View
o o o
Hear the Prospect Out Validate the Problem Clarify and Classify Use confirmation questions Ask if there is anything else
Try to distinguish between genuine objections and excuses That is a logical question o Restate or rephrase in your own words o Use words such as, “I understand how o you feel” , “I see where you are coming from”, … o
Prepare the prospect for your answer BASE YOUR DECISION ON: o
o
Select a specific technique
The prospect's behavioral style o Phase of the interview o The prospect's mood The number of times that this o objection came up o
o o
Answer the objection Attempt to Close
The type of objection
Confirm with the buyer that you have answered the objection o
Continue the Presentation If You do Not Succeed o
Specific Techniques for Handling Objections Answers Based on Concrete Evidence o
Product comparison: case history or testimonial Demonstration
compare advantages and disadvantages
When the prospect is mentally comparing the present product or a competing product with your product, you may make a complete comparison of the two o Describe the experience of a customer whose situation is similar to that of the prospect o One of the most convincing ways to overcome buyer resistance and specific objections. o
Sometimes a second demonstration is needed to overcome buyer skepticism. o Removes resistance by reassuring that the purchase will not result in a loss. o Guarantees must be meaningful o
Guarantees or warranty cost of delaying
provide for recourse on the part of the customer o The prospect wants to wait a while before making a final decision.
o
Use pencil and paper to show that delaying the purchase is expensive
Classic Objection Handling Techniques it by referring to a third party and Feel Answer using that experience as your "proof or Felt testimony". Found If the source is reliable or reputable this can be especially successful with the expert or Let a Third skeptical prospect. o
o
I understand how you feel
Party Answer.
Your friend, Hugh Jass, felt the same way Here is what he found .
Compensation or Counterbalance Ask "Why?"
Direct Denial
o
Admit the objection is valid
o
Describe some counterbalancing benefit
o
Answer with a question
Rephrase the objection o Considered a high risk method of handling buyer resistance. Use it with care. o If the buyer resistance is not valid, there may be no other option than to refute it by providing accurate information. o Example: If the quality of the product is questioned, meet the statement head on with whatever proof seems appropriate. o
Be firm in stating your beliefs and be sincere, don't be offensive. o Acknowledge that the prospect is at least partially correct. o It initially appears as agreement with the customer's objection but moves into denial of the fundamental issue. o If done in a natural, conversational way the salesperson will not offend the prospect. o Rephrase or have the prospect rephrase o Blame yourself o
Indirect Denial
o
Boomerang turn the objection into a benefit
o
o
o
Trial offer
o
Give the facts that answer the objection Prospect: "I don't like the size" Seller: "The size is exactly the reason you should buy it!" A trial offer lets prospect try product without obligation to buy. Popular with customers because they can get fully acquainted with a product without making a major commitment.
Effective Strategies for Coping with Price Objections The prospect places insufficient value on the product A competitive product is a better o deal o
The meaning of a price objection
o
The prospect just wants to bargain
YOUR PRICE IS TOO HIGH YOUR PRICE IS TOO HIGH!
o
Learn to respond to this objection. It is inevitable. Buyers will object just to get a discount. Knowledgeable buyers know that there is often a standard discount for which they qualify Price objections are an opportunity to sell the value of the product or service. The danger is to respond to the wrong price objection.
o
"Tell me more" or "Explain"
o o o o
o
Six fundamental price perspectives: Discover the differences between the competitor's proposal and your proposal. o The price is lower because the product or service is less robust. o
Price versus competition
A time related "special offer." o Was it a budget, or an expectation
Price versus approved budget Price versus buyer expectations
Was it based on old or unreliable data? data? o Was the prospect told about a less expensive solution provided to a friend? Explore the friend's solution. The buyer can then accept the other solution at a lower price o
The buyer can then accept the higher price for the original solution. o Your price is being compared to a process alternative. o Buying software may be compared to manual methods.
Price versus a process alternative
There are often new benefits that are impossible with the manual method o Maintenance or support costs can be greater than the original cost. o 20 years ago hardware and software was Price versus more expensive than support. hadware and software costs are low. a percentage of the o Today Labor for support is high. product price (for o Support may be more comprehensive than continuing services) in the past. o
Understand and communicate these changes to the prospect o Denies the cost of labor of the participant o - and of extended time to implement. o Example: lawn care. Everyone can cut grass cheaper than hiring a service Few enjoy spending time on this chore. o
Price versus "do-it-yourself"
"Do it yourself" places less
value on your time
VALUE ANALYSIS:
Determines the Best Product for the Money. Comparison of your product's features, advantages, and benefits to those of the product presently in use. Comparison of long range costs and savings. o Evaluation of the buyer's present product - does it perform better o than is required? o
Determine if the buyer would benefit more from a higher-priced, better performing product.
o
Types of Value Analysis o
True Value Reduce to the ridiculous
o
o o
o o
Return on investment
o
Compare product costs to true value. Establish the value of the product first so the buyer can intelligently compare the true worth of the product to its true monetary cost. Unit costs break price down Use the Lowest Common Denominator Know basic quantities Return-on-investment refers to an additional sum of money expected from an investment over and above the original investment. Emphasize the percentage return that can be earned by purchasing your product.
When Dealing with Price Resistance o o o o
DO
o
DON'T
o o
Add value with a cluster of satisfactions. Point out the relationship between price and quality. Explain the difference between price and cost. Employ the Presumption of Exclusivity Stress your product's exclusive features Identify extras that only come from you Sell quality, exclusivity and differential features Sell Down All prospects have a buying range Show the best first and then let the prospect reduce price by removing features or lowering quality Apologize for the price. Make price the focal point of your sales presentation.
o
Become demanding, defensive or hostile
Five Question Sequence Method of Overcoming Objections Q1
"There must be some good reason why you're hesitating. Do you mind if I ask what it is?"
Q2
"In addition to that, is there any other reason for not going ahead?"
Q3
"Just supposing, M. Buyer, you could... then you'd want to go ahead?"
Q4 Q5
"Then there must be some other reason. May I ask what it is?"
YES Ask what it is and
Go To Q2 Go To NO Q3 YES Go forward to discuss this NO Go To Q4 Answer GO TO Q2 No Answer GO TO Q5
"What would it take to convince you?"
This series of questions keeps the conversation going and gets the real objections out in the open which helps increase your sales.
Some Thoughts on Negotiation Qualities of a Good Negotiator o o
o
Patience Endurance
Willingness to continue o Risktaker o
Stamina
o
Tolerate ambiguity
Negotiating Skills o o
o o
o
Allow time for planning Collect all available information Negotiate internally first Be flexible Don’t give concessions too early
Don’t respond too quickly to demands o Call "time-outs" when appropriate o Put yourself in customer’s shoes o Don’t let egos interfere o
o
Always follow through
Buyer's Overt Concerns o
o
Do we really need this product or service? What will the savings be for
o
Are there alternatives?
o
Do we have sufficient budget?
the company?
Buyer's Covert Concerns o
o
Will I be at risk?
Will this solidify my position? o Will this mean more work for me? o
Will this reflect positively on me?
o
Do potential gains outweigh risks?
Ten Booby Traps o o o o
o
Sneak attacks Fatal assumptions Misguided missiles Killer impatience Bad intentions
Blind faith o Mental blocks o Price paralysis o Unwise ultimatums o
o
Misplaced emotions
Prepare! Remember o Probe! o Propose! o
CHAPTER 13 CLOSE
Be A Winner Winners Part of the Solution
Losers Part of the problem
"It may may be diffi difficul cultt but it's it's possi possible ble"" "It may may be possi possible ble but but its its too diffic difficult ult"" Find Fi ndss an an answ swer er for for eve every ry pro probl blem em
Find Fi ndss a pro probl blem em wit with h ever everyy answ answer er
"Let me do it for you"
"That's not my job"
"There's a green near every sand trap"
"There are two or three sand traps near every green
Always has a plan
Always has an excuse
"I'll get it right next time."
"It wasn't my fault."
"If it is to be, it's up to me."
"I can't help it."
Translate dreams into reality.
Losers translate reality into dreams.
Empower.
Losers control
"Let's find out."
"Nobody knows."
What is a Close? The process of helping people make a decision that will benefit them. o You help them make that decision by asking them to buy. o
Closing
A question or action designed to elicit a buying decision o The Prospect is Ready.
o
Attempt to Close the Sale When Computers and Closing
The prospect is in the "conviction stage" of the mental buying process. o Can make closing quicker o Can quickly calculate complex prices
o
o
Can fax or e-mail multiple parties
Perspectives on Closing Closing should be natural and easy o It should be planned like the rest of the process o Closing is integrated throughout the presentation. It is not a separate event o Each point of agreement is a minor close. o
o
Failure to close comes from an inadequate performance in other areas
Abraham Lincoln's Record 1832 1833 1834 1835 1836 1838 1843 1846 1848 1849 1854 1856
Defeated in the race for the legislature Failed in business Elected to legislature Sweetheart died Suffered a nervous breakdown Defeated for speaker in the legislature Defeated for nomination to Congress Elected to Congress Lost renomination Rejected for job as land officer Defeated for Senate Defeated for nomination for vice-president
1858 1860
Defeated for Senate Elected sixteenth president of the United States
Function of the Close The Moment of Decision is difficult for most people
The Need For a Close
Buying means change Not buying leaves problems unsolved
The seller feels stress also - The seller must ease the buyers pain - The art of closing sales is not the process of persuading people to make decisions, but the art of making decisions with which people agree -
Encourage them but respect their decisions - If they agree on the benefits then you are responsible to guide them to the close - Your buyers will be relieved and grateful for your efforts to close -
Reassure and Close
Believe in what you sell - Assume commitment - Confidence is contagious - Understand that rejection is not personal -
The Salesperson's Attitude
Your sincerity Your interest in the buyer Your belief in your product and company Your overall success •
Your attitude will communicate
• •
•
Don't accept no for an answer unless it is in everyone's interest - You have earned the right to close - Abraham Lincoln's track record shows persistence in the face of failure -
Persistence
48% Don't Stop 73% at the 85% 90% First "NO." 10%
Quit after the 1st contact Quit after the 2nd contact Quit after the 3rd contact Quit after the 4th contact Get 80% of the business
-
Dealing with Rejection
Barriers to Closing
Count your successes. The number of failures doesn't count Failure to close a sale does not make you inferior Look at closing averages
Remind yourself that self worth is different from performance Positive self talk Six Don't assume that you are the problem Do more prospecting. Useful Work a fresh lead. Tactics Expect rejection but don't create it The buyer may have rational reasons for not buying that they do not tell you Negative first impression still lingers in prospect's mind. Demonstration was not handled smoothly. Sales resistance was not overcome. Attempting to close too early or too late.
The Closing Curve
10% will never buy 10% will be easy 80% can be closed
Display Selfconfidence at the Close.
You believe in your product and your company You have identified a genuine need You naturally feel self-confident at the time of the close. "The prospect is persuaded more by the depth of your conviction than the height of your logic" (Cavett Robert). Ask for the sale in a confident way, not in a halfhearted manner.
Recognizing Buying Signals The CHEF Technique
C
o
Cheek or Chin o o
H
Hands
o
o o
E
Eye Contact
o
Rubbing Hands means assumed ownership Constant contact is good Dilated eyes mean relaxation
o
o
Casual conversation
o
F
Leaning forward and nodding Open and Relaxed. Plams Upward
Rolling or squinting means confusion or ire Smiling Relaxed
o
Friendliness
Stroking cheek or chin means satisfaction
Some verbal and non verbal buying signals Resistance
o o
Verbal Signals
o o
o o o o
Gestures
o o
objections mean interest How much is it? How soon can I get it? Sounds good. What's the next step? Nodding head Leaning forward Rubbing chin Tugging ear Reexamines product, sample or paperwork
o
Relaxes and become friendly. Stopping just short of buying Asking about price means they are sold on benefits Reinforcing or agreeing with your ideas
o
Asks another person's opinion.
o
o o
Other
Types of Closes The Trial Close
asks for an opinion not a decision
Assumptive Closes o o
o
Assume that you asked for the order That the prospect said "Yes" Proceed to the next step o
Minor-Point Close Physical-Action Close
o
o o
Alternative-Choice Close o
Order-Blank Close
o
Continuous Yes
o
Similar Situation
o
Asks the prospect to make a low-risk decision on a minor, usually low-cost element of a single product such as delivery dates, optimal features, etc... Fill out the order Wrap it up An old favorite; it provides a choice between something and something, never between nothing and nothing. Example: "Which do you prefer?" or "Would you prefer A or B?" ask questions and write answers on the contract. keep asking questions that are designed to be answered yes. Explain another customer's situation and lead into the close.
Direct Close: ask for the business We can have it delivered by the end of the month if we can get a signed contract into the implementation department by Thursday. o Should I forward a contract o Has the advantage so you can get started? of clarity and o Would you like to try it for a simplicity. quarter? o It’ll take a few weeks to o Ask for the order in process and ship the order a straightforward so if you’re interested in manner. moving forward, we should o Most direct closing start the paperwork now. approach and o Let’s get this off your plate appeals to many and start the paperwork. buyers, especially o What do you think? decisive people. o Let’s start the process so you o Should not come can get onto your other too early. priorities. Sound good? o Would you like to move o Highly effective forward? when salesperson o Are you ready to get started? has earned the o Can we go ahead? customer's o We can start the process respect. today with a credit card if you’d like. o
Direct Appeal Close
We can deliver it to you by the close of business tomorrow if you’d like. o Summarize the product's benefits in a positive manner so that the prospect agrees with what you are saying o Then ask for the order. o
Summary of Benefits Close
You can easily adapt Feature / benefit statements for your "summary" close. o indicate that if they do not act now they may not be able to buy in the future. o
Impending-Event or Standing Room Only Close
Special
It should only be used in complete honesty. o Offers the buyer something extra for acting immediately, such as o
a special price reduction a more liberal credit plan an added feature o Make sure the buyer places a value on the consession before offering. o Don’t say that you will do it. Ask instead if the special concession would be sufficient to close the sale. Only confirm the concession if the buyer agrees. Only concede of the buyer has specifically told you that there are no other objectionss
Concession Close
Use with care because some buyers are skeptical of concessions. o Have a reason to come back
o
Call-Back Close
Review everything when you come back o Puppy dog o Often called the Ben Franklin close o Based on the process people go through when they make a decision o Weigh the cons against the pros. o The same as debits and credits, act or not act, etc.. o
Trial-Order Close
Balance-Sheet or T - Account Closes
Probability Close
Modified T-Account or Balance Sheet Close -- only list the reasons to buy. Some salespeople do not remind the prospect of any of the reasons not to buy as they attempt to close the sale o Ask prospects what the probability p robability of doing business at a later time is.
o
This permits prospects to focus in on and discover their own hidden objections. o One single objection stands in the way of a close. o Most often surfaces when a trial close is used. o Never lose patience with prospect o Clarify the customer's position regarding the objection.
o
Negotiating the single problem close.
Help customer weigh advantages of product by reviewing product's superior points o Provides prospects with choice as a way of qualifying. o Allow customer to examine several different
o
Limited Choice Close
models and try to assess degree of interest in each one. o Cease showing new products when it appears that the prospect has been given ample selection. o Remove products that the prospect does not seem genuinely interested in. o
Place unwanted products aside and concentrate on products the prospect seems to be definitely interested in.
"Your price is too high!" Confirm that price is the only Problem The prospect should make an offer o o
o
Confirm the offer No matter what it is.
o
o
"Is there anything else beside price p rice that is holding you back?" "If the price were better then could we do business right now?"
o
"What did you have in mind?"
o
"What can your budget spare?"
o
Do not commit yourself.
"If I can get you that price then can we do business immediately?"
If the prospect responds "Then there must be something else. Can I ask what it is? o Then handle that objection. o
No
Price may never come up again. o Recognize that you prospect is committed. o You may or may not be able to negotiate. o You can chose Calculate the price difference and reduce Haggle
o
Yes
Don't give in untill the contract is filled out and ready to sign
I want to think it over
I want to sleep on it. Agree and complement Start packing up One last question.
Two options now
o
"I can understand that."
"I'd do the same thing myself?" "I am sure that you'll have some questions for me as you think it over, won't you?" o "Just so that I'm prepared.
o
What are some of the specific things that you'll be thinking about? Soft Hard o Start asking yes/no questions Is it my company? o Be quiet and let them Is it the color? talk. Is it ..... o Go through all the o Handle any response benefits as an objection. o
o
Make the prospect realize that they are just stalling
Research shows six common closing mistakes 1. Talks too too much. much. Doesn't Doesn't ask enough enough questions questions.. 2. Over-c Over-control ontrolss the call; asks too many many closed-end closed-end question questions. s. 3. Doesn't respond to customer needs with benefits. 4. Doesn Doesn't 't recognize recognize needs, needs, gives gives benefits benefits prematurely prematurely.. 5. Doesn Doesn't 't recognize recognize or handle negativ negativee attitudes attitudes effectively. effectively. 6.
Makes weak closing statements, doesn't recognize when or how to close.
After the Close Confirm the sale when the buyer says yes: Be sure all details related to the purchase agreement are o completed Check everything with buyer o Ask for signature if necessary. o o Reassure customer and confirm Pointing out that s/he has made the t he correct decision Describe the satisfaction that will come with ownership of product or service o
o
Thank customer for the order. A follow-up thank-you letter is often appropriate. Ask for referrals. Provide after-sale service. Leave Gracefully
o
Don't talk past the close
o o o o
When You Dont Make The Sale o
Recognize hopeless selling situations
Avoid doing or saying anything that will jeopardize the relationship established o Do not take the buyer's denial personally o It was a business decision that the buyer made given the circumstances. o The proper handling of a no-sale situation helps build a sound business relationship with your Act Professional customers. Act Adult Ask why you lost out - learn from your o successes and no-sales. o
o
Prepare prospect for shopping the competition
o
Sometimes, it is proper to reopen the presentation Do everything possible to help customer make o an intelligent comparison. Review strong points of product, giving special emphasis to areas in which product has superior advantage over competition.
Never treat the lost sale as a defeat. Do not use selling methods that are unethical and/or illegal.
o o
Analyze Lost Sales A lost sale can be a learning experience. Take a good, objective look at presentation and try to identify o weaknesses o Consider how to avoid this problem in the future. Salvage as much as possible from the t he experience o o Don't give up too soon. o
o
Callbacks are very common, especially in the field of industrial selling.
o
Discuss the lost sale with Prepare for a possible return call by recording information.
o
o
Your sales manager Your fellow salespeople
Other people who understand the selling se lling and buying process. Personal information - family, hobbies, and o so forth. Company information - if selling to an o individual buyer, company information is quite valuable. Purchase priorities - every prospect has unique purchase priorities. o
CHAPTER 14
BUILDING RELATIONSHIPS WITH TOTAL CUSTOMER SERVICE THE NATURE AND PURPOSE OF TOTAL CUSTOMER SERVICE Service is an Ongoing Activity Selling is the courtship; Service is like “permanent dating” o You become part of the customer’s team o You establish a basis for a long-term relationship o You might get new prospects (your current customers give them to you) o
Think of each customer as your only account “A lot of people have fancy things to say about customer service, including me, but it’s just a day-in, day-out, ongoing, never-ending, unremitting, persevering, compassionate type of activity.” - Leon Gorman, L.L. Bean
o
Service Quality Strategy Can be a strategy to acquire and maintain customers. o Segment customers o Inform specific customers what to expect o Exceed expectations o
o
Must be a way of life
Moments of Truth o
Each time a customer contacts your firm a
moment of truth occurs o
At each moment the customer becomes aware of your service quality
Value Added Everything the salesperson does during and after the sale provides value added. Value added . Means going above and beyond what is merely expected of you Warranty and repairs are part of what we sell. Our service must go beyond that. There is no speed limit on the extra mile
Service After the Sale The sale is not complete until the customer is satisfied
Ten elements of service after the sale. Follow-up on delivery schedules. Checking on the performance of the product after delivery. Training or instructing the customer in using the product. Making adjustments of mistakes in delivery quantity or quality. Assisting in securing replacement parts. Helping to arrange and check displays. Checking customer's inventory of related supplies to make the product or service work properly. Answering questions related to the product or other products or services your company provides. Giving prospect referrals to customers for their business when you discover one. Sending appropriate remembrances on occasions of importance to the customer including birthday, holiday seasons, public recognition or business achievement, promotion, etc.
PROVIDING QUALITY
SERVICE HAS ITS REWARDS If complaints are intercepted and solved quickly then they don't become major problems o
Problem Prevention
Quick service can turn a lemon into lemonade Personnel changes o Competitors activity o o
Staying Informed frequent service calls keep you up to date
o
firm
Upcoming structural changes in client
More technical sales are lost through poor follow-up than anything else Average firm looses 20% of customer o base per year o
Retaining Existing Customers
Any reduction in that number greatly increases profits o Service is the only way to justify a price differential o
Building Goodwill
Goodwill makes a repeat sale possible o
WHEN AND HOW TO SERVICE Service as an Ongoing Activity Selling is the courtship. Service is the marriage o o o o
You become part of the customers team You establish a basis for a long term relationship You make sure that customers get what they thought they were buying You get new prospects 1. 2.
o
By referrals By le learning th the cu custo tom mer's in industry
Think of each customer as your only account
Gaining a new customer cost five times t imes more than keeping a current customer
Service in Response to Needs o
Service the old accounts as well as the new
o
Anticipate complaints and intercept them
Technical Assistance Research Programs, Inc findings Only 4% of unhappy customers actually complain. Even some with serious problems Complainers are more likely to do business with you again o 50%-70% of complainers will give repeat business if the complaint o is resolved 95% complainers will give repeat business if the complaint is o resolved quickly o Dissatisfied complainers will tell at least 9 or 10 people. 13% tell more than 20 people o
o
Satisfied complainers will tell about 5 people
Some types of problems a salesperson, could solve before they become serious. o
The product is not functioning fu nctioning properly. The personnel handling the equipment cannot operate it efficiently.
o
They are not getting replacement parts quick enough.
o
the phone is a great tool. o Gives personalized attention quickly o
Phone Calls Problem Solving
Customer service hot lines have proven themselves to be profitable o
o
Coordination Within Salesperson’s Company
o
Assistance With Training
SERVICE AT DIFFERENT LEVELS IN THE CHANNEL Servicing Retailers o
Keep customers informed of promotional programs Supply display items Help with displays and arrangements Check inventory regularly
o
Train the customer's people
o o o
Servicing Intermediaries o
Call on the distributor. Call on the distributor's customers.
o
Train distributor's sales force.
o
Technology and Service Quality o
Service ability has been enhanced
Electronically mediated sales conversations - two computers sharing o
Tracking Service Activities A written specific plan should be developed
Call Frequency o
Rank your customers (criteria may vary)
o
Allot service time and call frequency f requency accordingly
Follow-Up at a specific time interval after each sale. Mail - keep your name in front of them o
Promotional material New product information Company newsletter Newspaper articles
o
Letter with a reply card
o o o
SERVICING ATTITUDES Personal Reliability - don't be a flake Second-Mile Action - there is no speed limit on the extra mile
Winning Back Former Customers Reasons for losing an account Something the seller does o Something the seller fails to do o Something the company does o Something the company fails to do o
o
A question of service
List of excuses - "It's not my fault." Competition too cheap Competition unethical Customer is too difficult All customer cares about is price I don't have time to follow up I've been doing sales for ## years. It can't be me. My company fails to back me up
o o o o o o o
1 1
1
delivery is late quality deteriorates I never lose a customer through any fault of mine
Ask the tough questions
o
Do I get mad at small orders? Do I stay away too long between calls? Do I keep customers informed? Do I keep all my commitments? Was our service ineffective?
o
Can I help you in any way to get the account
o o o o
back?
Listen carefully and politely
12 COMMANDMENTS OF TOTAL CUSTOMER SERVICE
Customers
o
o
Customers Customers
o o
o o
Customers Customers
we’re dependent upon them. are not cold, hard lifeless statistics
they are flesh and blood human beings with feelings and emotions just like our own. o do us a favor when they call with a complaint or service request o
o
Customers
satisfying them is an income-producing endeavor. are the most important people in my business. are not dependent on us
o
o
Customers
are the life-blood of every business
o
customer retention is the bottom line. are not an interruption of our work they are the purpose of everything we do. are the key components of our business
they are not outsiders. o deserve the most courteous and attentive service we can give them o
Customers
o
Customers
o
o
Customers
o
o o
Customers Customers
develop a servant’s heart. are people who bring us their wants and needs it is our job to thrill them. are not opponents to argue or match wits with why win the battle and lose the war? should be considered economic assets
manage them to maximize your return on investment. o make it possible for a company to pay your salary o
whether you are a secretary, production employee, office staff, salesperson or sales manager. o
CHAPTER 15 Personal Organization and Self Management ACT!
"Dost thou love life? Then do not squander time, for that’s the stuff life is made of." - Benjamin Franklin
John Ciardi Yogi Berra Benjamin Franklin Alexander Rose French proverb Napoleon Bonaparte Abraham Lincoln Thomas Edison Victor Kiam Anonymous
The day will happen whether or not you get
o
up. o
It isn't over till it's over.
o
Remember that time is money.
o
half the agony of living is waiting.
People count up the faults of those who keep them waiting. o You may ask for anything you like except time. o You can't escape the responsibilty of tomorrow by evading it today. o Everthing comes to him who hustles while he waits. o Procrastination is opportunity's natural assassin.... o Don't wait for your ship to come in; swim out to it. o
Someday is not a day of the week o If it weren't for the last minute, nothing would get done. o
ATTITUDES TOWARD TIME "What is the best use of my time right now?" o Activities can be managed Time cannot be managed. o Self Management or Self Discipline Personal Organization and Self o Planning and Organizing
Lakein's first question to ask:
Management involve
Automation systems and techniques o How will you spend your time? o How will you invest your time? o How much to business, service, family, leisure? o
84,000 seconds per day to use
o
How much for yourself?
We have the ability but what about the desire? Lack of organization is a major contributor to failure
Organization must become a habit
DEVELOPING A TIME MANAGEMENT ATTITUDE Mental preparation - takes lots of practice List activities that you want to complete this o week Keep a detailed, hour by hour, record of what o you do with your time Some suggestions Audit yourself at the end of each day and week o List five habits that are your biggest obstacles. Write out a plan to correct Detailed time analysis twice per year o
NEED FOR ORGANIZATION Organize to prioritize and process information received
Three Basic Mental Tasks Unaided recall is 40% maximum o Stimulated recall can be 100% o
Stimulating Recall
Reminders must be in plain sight. o Incomplet Incompletion ion: anything that t hat needs additiona ad ditionall action before it is put to rest. o To avoid frustrating thoughts about incompletions 1. Do it now if possible 2. Delegate and forget o
Handling Incompletions
3. Pu Putt a re rem min inde derr som omep epllac acee th that at wil illl wo work rk o You need to make time for creative thinking
Thinking Creatively
o
Get everything else under control and this time becomes available.
PROCEDURES FOR GETTING ORGANIZED David Allan's Getting Things Done People Pleaser
o
o
Types of Time Abusers
o
Perfectionist o
o
panic
Procrastinator
Remove the Clutter
Fears authority Unrealistic standards Can't delegate Put off, put off
o
o
Wants to please
Even neat piles must go.
Clutter in sight is a mental burden.
o
o o o
Collect the Clutter from everyplace Get into one location. Sort the Clutter 1. Time critical 2. Someday 3.
Trash o
Deal with Priorities Time critical material
o
o
Set Up Working Categories for the Rest (Someday material)
o
o
31 day folder system David Allen's 43 folders computerized reminders Reading Projects - separate folder for each project
Handle Interruptions People Interruptions o Superior: you can respectfully ask for a delay o Associate o Subordinate
Paper Interruptions o o o
ence o
Notes Memos Correspond Periodicals Messages
Environmental Interruptions Telephone Calls - try to hold and return Visual distractions o Comfort factors o You might need a o hideaway o
o Customer: consider it a Email o Projects o contact not an interruption If an interruption is part of your job then you need to decide whether it is more important than your current task
o
1
1
Tasks handled by interruptions take longer
AN ORGANIZING SYSTEM
two simple tools
The Master Calendar A simple pocket calendar backed by
1
1
1-31 files or a computer
Daily to-do List
2000Write down tasks Rank them in order of priority Attack them in order Forces you to attach time to each task The Integrated System Forget about incompletions until they arise 1
1
1
1
How its done
1
1
1
Start a fresh to-do list every day
Identifying Priorities The 80/20 Rule means that in anything
The (Vilfredo) Pareto principle
a few (20%)
are vital
many (80%)
are trivial l
Aka the 80/20 rule In Pareto's case it meant 20% of the people owned 80% of the wealth. Industrial Engineering 20% of the defects causing 80% of the problems. Project Managers 20% of the work consumes your time and 80% of resources.
Sales Managers 20%of 20% of salespeople produce 80%of 80% of sales Sales People 20%of 20% of customers produce 80%of 80% of your income
How It Can Help You
The value of the Pareto Principle for is that it reminds you to focus on the 20 percent that matters. Of the things you do during your day, only 20 percent really matter. Those 20 percent produce 80 percent of your results. Identify and focus on those things. When the fire drills of the day begin to sap your time, remind yourself of the 20 percent you need to focus on.
1
1
1
1
1
If something in the schedule has to slip, if something isn't going to get done, make sure it's not part of that 20 percent .
1
"A" Priorities "B" Priorities "C" Priorities Time Goals
1
1
1
1
1
pressing and related to your goals something that can be done anytime within a day, week, month Nice to do sometime Parkinson's law - work expands to fill the time allowed to do it Record time next to each item
Maintaining a Positive Attitude Toward Time 1
1
1
1
1
1
1
1
1
1
Set Deadlines and beat them Place a time limit on meetings Take advantage of your peak time Learn to say no Make Decisions Overtime is another bad habit Delegate Write it down (or type it into ACT!) Nurture helpful relationships Stay Balanced
TIME-EFFECTIVE TELEPHONE TECHNIQUES Benefits of Planned Telephone Time
1
Telephone saves you time
Schedule and confirm appointments Get Organized to Make Calls 1
1
List topics for discussion Have reference material handy Have your calendar handy Limit the Time for Making Calls Some socializing is necessary
Give a time limiting preface
1 1
Controlling Telephone Time
1
Setting Goals for Telephone Control Techniques for Telephone Time Problems Don't get upset if they can't talk when you Ego Needs call. Minimize. Socializing Remember priorities Lack of Awareness of time Keep track of time spent on each call spent. Easy availability Set a quiet time to make and take calls Facts not available Don’t leave the caller hanging while you look, Fear of offending The other person needs to hang up too.
Self-discipline It takes practice to do all of the above. Preface call "I'll just be a minute…." Too much time given to a call. Preface termination "Before I hang up… "
Computerized Mapping Systems
Computer software that displays numeric data on maps Trip Maker - Plans trips and tracks expenses
Strategize prospecting calls PDA AvantGo Software for your phone Color maps fully annotated Zooming capability Routing information Hotel Data Features of most Restaurant Data mapping programs Car Rental Data Toll Free Numbers and URL's Expense Tracking
Custom Printouts The system uses satellites to locate the position of anything with a GPS receiver, like a car. Rick's GPS You always know where you are even in a bad storm or heavy fog GPS will become standard equipment in cars
Global Positioning
Lock your keys in your car, no problem; use your cell phone to call a toll-free number and the satellite system will beam down a signal that will unlock your car door. Rand McNally Delorme GPS for GeoQuery PDA Garmin Copilot Google Maps AlkTechnologies Maps On Us Yahoo Maps
Web Sites
Mapquest
MANAGING TRAVEL TIME IN THE SALES TERRITORY Prioritize customers
A High High Volu Volume me rep repeat eat cus custom tomers ers B Mod Modera erate te volume volume reli reliabl ablee custom customers ers C Cost you you ti time me and and energy energy and and yield yield little little profit profit
Territory Routing Patterns
Cloverleaf Hopscotch
Starting and ending point are the same
Each leaf represents a cluster of customers start at the farthest customer and call on clients on the way home
Circular Straight line
Without a plan much time is wasted
SUMMARY Time management is largely a matter of attitudes. Time is life You can control your life only by controlling time, Professionally, time is money. The necessary elements of an effective organizing system. The 1-31 reminder file The master calendar.
•
•
•
A daily "to do" list
Defining Success More Broadly. A good life-balance means taking the time to t o appreciate what we're doing now. It prompts these questions: What are we doing? - are we doing something that's worth doing, however that may be defined? Why are we doing it? - what is our ultimate goal or reward? Who are we doing it for? - for ourselves, families, others? How do we measure our success? - is it by narrow, materialistic gain or by broader,, subjective achievements? broader 1
1 1 1
Try thinking again about what you're doing and what you hope to achieve. Being satisfied with what you've got can be a liberating experience. Knowing when enough is enough could transform your perception of success. Perhaps the real benefits of time management come by ensuring we don't waste it, doing the wrong things for the wrong reasons. Guard against narrow definitions of success. Stop following the crowd, simply striving for more. Consider what you have to appreciate, here and now. Stop and smell the flowers! How to realise the benefits of time management?
Begin with the end in mind, and Define success broadly - recognising what you have, and when enough is enough. 1
1
The Benefits Of Time Management:
Remember Who You Work For
A recent UK TV commercial showed short clips of children admonishing their workobsessed parents. “Your fired” said the children, as parents came home late from work, or missed special moments. The ads finished with the statement “remember who you're working for” . The happy manager approach is to ensure working doesn't diminish our appreciation of what we have now - the pleasures in life. Think through what you really value in life, and what you need to do to enjoy it. Perhaps these are the real benefits of time management.
CHAPTER 16 SALES MANAGEMENT The Sales Management Function Sales management may be a firm's largest operating expense o
Sales manager is the link
Between sellers and customers
between sellers and management Two sets of o Selling Skills o
skills are needed As a manager rises in the hierarchy
Management Skills o Less time is spent in the field with salespeople o
o
More time in spent in administration
Managing any Employees In The 21st Century Employees consider three item most important about their job • • •
Open two way communication Effect on personal / family life The nature (importance) of their work
Total Quality Management (TQM) and the Sales Manger TQM philosophy is changing many aspects of business o Many sales management methods contradict TQM o
o
TQM uses salespeople to connect customers to the firm's internal operations.
Role of the Salesperson in TQM o
Must satisfy customer
o
Must satisfy management
Video Conferencing o
o
Combines voice and visuals Saves time and money
What To Do Edit information ahead of time Interact! o Ask and answer questions Have Audio Backup o Control noise and o interruptions
What Not To Do
o
Practice and debug ahead of time o
Have a clear, limited agenda o Don't let one person dominate o Body language is hard to read. Don't use it. o
Use it often to get comfortable with the technology o
Choosing a sales manager Promote the top-producing salesperson o o
Expertise in all aspects of selling Sales ability alone is not enough. May be unhappy and ineffective in managing other salespeople.
o
Lateral transfer of an effective manager from another department (e.g., finance, advertising, manufacturing) o
Has the management ability
o
Lacks the basic sales abilities that everyone in sales needs.
Hiring someone from outside the organization o
o
Has sales ability management ability
Unfamiliar with company policies, office practices expense account procedures and organizational goals.
From salesperson to sales manager Activities of a sales manager o o o o o
o
Working with sales representatives Recruitment Training and development Appraisal, counseling coaching Administration Self management
Five characteristics that make a great leader Provides employees with a sense of mission o Creates a challenging work environment o Gives immediate feedback o Rewards and praises to recognize a. The individual b. Th Thee ind indiv ivid idua uall as as a me memb mber er of a tea team m o
o
Develops employees talents and careers
Steps to success as a sales manager Clarify attitudes about leadership o See yourself as a. Production manager first b. Personnel ma manager se second o Pride in your team o Always do what you say o Set priorities o Continuously and consistently recruit the right kinds of people o
o
Train continuously and consistently
Becoming A Winning Manager Traditional Managers Resist Change Self Image:"The o Boss" o Make decisions alone o Reluctant to share information o Demands hours not achievement o Neglects career planning o
Considers sales staff to be subordinates
o
Winning Managers Loves Change Self Image: "The o Coach" o Group Decision Making o Shares news and information o Expects results and progress o Helps everyone plan career o Considers staff to be a team o Provides employees with a sense of mission Challenges sales team to o stretch themselves Gives immediate feedback o Rewards and praises individual o and team performance o
Helps employees develop their talents and careers
o
SPECIFIC RESPONSIBILITIES PERFORMED Determine Sales Force Organization o
Product Organization o
Geographic Organization
o
o o o
Customer Type Organization
o
o
Combination Approaches
o
Expensive complex products Expensive due to specialization Product line must not be too complex Territories must be properly sized Selected SIC Codes Selected customers by name (without centralized buying) Selected customer by region National or Key Accounts (with centralized c entralized buying) o Can combine any and all of the above Depends on need, cost, etc
Determine the Number of Salespeople Needed Workload approach - popular Determine the number of calls needed o Determine time needed per call o Determine total working time ( a * b) o o Determine actual selling time available per salesperson o
Determine number of sales people ( c /d)
Develop a Job Description Develop candidate profile Information needed in a job description
Educational requirements o Experience o Job conditions o
Type of customers o Job title o Relationship to management a. Wh Who o is is thei theirr bos bosss b. Co Comp mpen ensa satio tion n c. Cri Criter teria ia for for prom promoti otion on Job planning : what the salesperson is o expected to learn or know o Selling activities a. Sel Sellin ling g tec techni hnique quess o
b. Acti Activit vityy expect expectati ations ons o
Self management
Recruit and Select Salespeople Within the organization Competitors Non competing companies Advertisements Schools
o
Sources for Recruiting
o o o o
o
Interview and Selection
Employment agencies o Application form o Reference check o Personal interview 1. 2. 3. 4. o
o o o
Orientation
o o
o
Qualiifi Qual fied ed? ? Want Wa nt or ne need ed the the job job? ? Can we we meet meet their their expecta expectatio tions? ns? Can Ca n they they do do the the job job? ? Testing Physical exam Introductions Policies and practices Vertical communication Company outside activities Expense account
Skip the learning curve Choose marketing skills over sales skills
Tips for hiring right
Seek out charismatic types
Raid the big guns
Hire someone with experience in the areas specific to your needs Some sales o experience is beneficia o
marketing requires different abilities and approaches than does sales o Leadership abilities o
Strong communication skills Some of the best o training grounds are in the companies such as Procter & Gamble o
o
best
So try to recruit their
Determine the Compensation Plan o
Straight Commission Straight Salary Combination Plans
o
o
o
TQM Based Compensation o
Achieve high volume
sales Allows salespeople to structure their own time and activities. o Gives control over salespeople's activities May not give aggressive selling o Most Popular today Draw vs Salary o Customer Retention Bonus Penetration of Target o Accounts Bonus Company-Wide Performance Bonus
Provide Sales Training One on One Sessions Field Training Group Sessions Role playing
Supervise and Motivate
Interactive Multimedia CD Sales Training Video sales training Single issue sessions Feedback o Receive continuous training in new product technology o Guide and direct them in goal-setting Motivation is at the very heart of supervision o Goal is to create a work environment within which the individuals can and do motivate themselves 1
The real key is to find motivated men and women and teach them how to t o sell 1
Performance Evaluation Quantitative Objective and standardized
o
Easier to use
o
Qualitative Focus on Quality not quantity Often ambiguous Allows use of personal biases Should accompany quantitative measures Other requirements Standardized form Consistent over time
o o o o o
1 1
1
Used for the entire sales force
Techniques for Qualitative Appraisals Behaviorally Anchored Rating Scale(BARS)
Each point on a scale is labeled with a different description of behavior o
o
o
More of a standardized 5 or 10 point scale
o
Usually has more scales
Checklist Scale
o
Goal setting and evaluation process Mutual goals Periodic reviews
o
Evaluation based on each goal
o o
MBO
Often a dozen or more scales
Effectiveness versus Efficiency Effectiveness o 1 1 1
o
Effectiveness is a function of Territory Objectives Resources allocated to that territory Salesperson's performance Measure actual sales against potential, quota or objectives
Efficiency o
Profitability of a territory
Time, effort and money invested to get sales Ratio analysis - various ratios are used as a measure of efficiency o Expense/Volume (E/V) Profit/Volume (P/V) predicts the effects of sales on profits predicts the number of sales needed to offset rising expenses
Evaluating actual performance When and how often? o
o
Informal evaluations should be done frequently- daily, weekly
Formal evaluations should be on a regular schedule - two months is considered optimal
Sources of Information for the Evaluation o
Sales Reports Expense Reports Activity Reports Complaint Records
o
Call Reports
o
Accompany salesperson
o
Observe phone conversation, mail, e-mail
o
Company Records Observations External Sources
o o
o
Customers Associations
o
Agencies
o
Recommending Action Improvement o o
o
Salesperson should agree on what are reasonable improvements Step by step plan should be developed Reasonable time period should be specified
Characteristics Characterist ics of an Effective Evaluation Program
Motivation Participation Agreement
Evaluation should motivate salespeople to want to improve Evaluation should offer the sales person an opportunity to participate Both parties should agree on o Objectives o Means of getting the objectives
o
Commitment Realism Objectivity
How attainment will be measured
Salesperson should be committed to attaining the objectives The program should be based on realistic objectives that reflect actual territory conditions The program should be centered around objective and constructive techniques and measuring tools
SALES TECHNIQUES http://www-rohan.sdsu.edu/~renglish/377/
chapter chapter chapter chapter
1: 2: 3: 4:
chapter chapter chapter chapter
5: 6: 7: 8:
chapter 9: chapter 10 10:
Introduction to Selling Relationship Selling Ethical and Legal Considerations Consumer Behavior and and The Communication Agenda Finding your Selling Style Preparation for Success in Selli lin ng Prospecting The Preapproach and Telephone Techniques Approaching the Prospect Asking Qu Questions an and Li Listening The S P I N Preparin ing g for an Effectiv ivee
chapter 11: Presentation chapter 12 12: Handling Ob Objections chapter 13: C L O S E chapter 14 14: Building Re Relationships with Total Customer Service chapter 15: Pers rso onal Organis isaation and Self Management chapter 16: Sales Management
