Chpt 11 Obtaining Commitment PDF

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Chapter 11 Obtaining Commitment Securing Commitment Closing: Asking for the buyer’s business Traditional emphasis on getting the sale no matter what: •

Damages trust

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Insults the buyer’s intelligence

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Raises the possibility of losing commitment

Should be the natural, logical progression of any sales call Importance of Securing Commitment •

Tells the salesperson what to do next

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Defines the status of the client (natural progression from suspect to prospect to customer)

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Failing to obtain commitment results in taking longer time to obtain a sale

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Company’s future success depends on goodwill and earning a profit

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Customer realization of benefits (be confident -the sooner they buy, the sooner they can realize the benefits of your solution)

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Financial rewards for the salesperson

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Customer expects you to bring the sale to a natural conclusion/close

Financial Terms and Conditions Discounts are typically based on: •

Types of customers

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Quantities purchased •

Single-order discount

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Cumulative discount (over time)

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Credit Terms (next slide)

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Shipping Costs (next slides)

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Credit terms • Allowed for early payment • Last discount taken • (2/10, net 30): Deducting 2 percent from the bill if paid within 10 days of invoice and paying full amount in 30 days otherwise • (2/10, EOM) discount: 10-day period begins at the end of the month

• Important in capital equipment sales Easy credit terms help salespeople close sales •

Shipping costs •

Free on board, F O B: Buyer assumes responsibility for both the goods and the costs of shipping them

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F O B destination: Buyer takes responsibility for the goods once they reach the buyer’s location, and the seller pays the freight

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F O B installed: Title and responsibility do not transfer until the equipment is installed and operating properly

Presenting Price Set the price for buyer after studying: •

Competitor’s offerings

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Value delivered by the product or service

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Cost of providing the product or service

What can you do if they ask for price and you don’t know these things yet?? Buying Signals •

Closing cues: Indications that the buyer is ready to buy

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Buyer questions: Signal a readiness to buy if the question concerns implementing the purchase and points toward when purchase is implemented

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“If I agree to go with this advertising program, do you have any ads already developed that I could use?”

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“Do you have any facilities for training our employees?”

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“How soon would you be able to deliver the equipment?”

Requirements: Conditions to be satisfied before a purchase can take place •

“We need 2/10, n/30 terms”

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“We need to get this in weekly shipments”

Benefit statements: Reflect strong feelings in support of the purchase •

“Good, that will fit in our office supply room”

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“Your service guarantee will satisfy a lot of people around here.”

Trial closes: Questions regarding the prospect’s readiness to buy • “How does this sound so far?”; “How does this compare…?” Nonverbal cues: Important indicators of the customer’s state of mind, evident through:

• Facial expressions Actions (e.g., nodding) How to Successfully Obtain Commitment Maintaining a positive attitude Letting the customer set the pace Being assertive and not aggressive •

Aggressive: Such salespeople control the sales interaction but fail to gain commitment

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Assertive: Such salespeople are self-confident and positive

Selling the right item in the right amounts (this requires listening and strategic planning) Effective Methods •

Direct request •

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Benefit summary •

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Reminding the buyer of the agreed-on benefits of the proposal

Balance sheet •

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Asking the buyer for commitment

Helping prospects who cannot make a decision, even when the reason for their behavior is not apparent

Probing •

Using a series of probing questions to discover the reason for the hesitation

How to Successfully Obtain Commitment •

Direct request •

Simply ask for it (and then be quiet!) (be wary of appearing overly aggressive though) (use with Drivers)

Examples: “Can I put you down for 4 cases at $50 each?” “Will you come in for a hands-on demonstration?” •

Benefit summary •

Non-manipulative way of reminding the buyer of the agreed-on benefits of the solution

Examples: “You stated that you were looking for X,Y, and Z. As I’ve mentioned ours does X,Y, and Z…”

- particularly important in long selling cycles (to remind) - see last slide of today’s SPIN notes •

Balance sheet method •

List pros and cons (use with Analyticals)

- Focus on benefits not features - Potential issue with cons outnumbering pros - Careful not to insult buyer’s intelligence •

Probing method •

Initially uses another method (e.g., direct request)

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If unsuccessful with previous method, use a series of probing questions to discover reason for the hesitation

Example: “Do you mind if I ask why you are hesitating to go ahead with it? ...What if I could resolve these issues? Then would you be willing to move forward with an order?” •

Alternative choice (the choice is between items, not between something and nothing) •

Limits prospect’s choices

Examples: “Would you like to buy this copier or that copier?” “Which do you prefer – one or two neck ties to go with your suit?” •

Standing-room-only (seller describes negative consequences of waiting; creates a sense of urgency) •

Effective only if true

Examples: “At the rate these are going, I don’t expect to have any after the end of this week?” “If you can’t decide now, I’ll have to offer it to another customer?” What would you say to a friend to gain his or her commitment to go on a spring break trip? Describe what you would say using each of the following methods: • • • •

Alternative choice Direct request Benefit summary Balance sheet

• Probing Standing-room-only Effective Methods Trial offers •

Based on the idea that once a product is taken home, one might not want to give it up

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Suggestions to use •

Set a specific time for training, and make sure the user is comfortable with the product

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Document that the decision criteria are concrete and that the trial is needed to achieve those criteria

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Agree on when a decision will be made

Responsibilities If Commitment Is Obtained •

No surprises •

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Go over all important information

Confirm the customer’s choice •

Buyer’s remorse: the insecurity a buyer feels about whether the choice was a wise one.

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Assure customers they have made an intelligent choice

Examples: “You’ve made an excellent choice!” “Your mechanics will thank you for purchasing these tools.” •

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Get the signature •

Be prepared – have the paperwork completed beforehand

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Make the actual signing an easy, routine procedure

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Be careful not to exhibit any excess eagerness or excitement at signing time

Show appreciation •

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Cultivate for future calls •

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Thank-you letter

How the salesperson treats the customer is the biggest determinant of future sales

Review the actions to be taken •

Avoid misunderstandings

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Be sure the buyer gets what they were promised

When Commitment Is Not Obtained •

Don’t take it personally!!!

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Some reasons for lost opportunities

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Wrong attitudes

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Poor presentation, habits and/or skills

Discovering the cause •

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Critical so that salespeople can proceed intelligently to eliminate the barriers

Suggestions for dealing with rejection •

Maintain the proper perspective

Suggestions for Dealing with Rejection •

Maintaining proper perspective

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Referrals?

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Using good manners

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Be nice to yourself: you went for it!!!!..... eat a good meal, get a good night’s sleep, regroup and start fresh

Bringing the Sales Call to a Close Salesperson should leave with a clear plan for all parties •

Review what he or she will do next

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What the customer will do next

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When the salesperson will meet again

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Follow up promptly with a thank-you and reminder note...