Summary Selling Today: Partnering to Create Value - Chapter 10 to 17 PDF

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Summary

Chapter 10: Adaptive Selling 1 Describe the three prescriptions that are included in the presentation strategy 2 Discuss the preapproach process 3 Describe team presentation strategies 4 Explain how adaptive selling builds on four broad strategic areas of personal selling 5 Describe the six main par...

Description

Chapter 10: Adaptive Selling 1 Describe the three prescriptions that are included in the presentation strategy 2 Discuss the two-part preapproach process 3 Describe team presentation strategies 4 Explain how adaptive selling builds on four broad strategic areas of personal selling 5 Describe the six main parts of the presentation plan 6 Explain how to effectively approach the customer 7 Describe seven ways to convert the prospect’s attention and arouse interest

Developing a Presentation Strategy ● ●

combines relationship/ customer/ product strategy must develop the previous 3 before you can do presentation strategy

Presentation Strategy 3 prescriptions: 1. Establish objectives for the sales presentation a. each sales call should have one or more objective b. common objectives - collect info of prospect’s needs - develop, build, sustain relationship w/ decision buyer 2. Develop presale presentation plan needed to meet objectives a. more organized during presentation to meet objectives 3. Renewing one’s commitment to providing outstanding customer service a. careful needs analysis b. correct product selection c. clear presentations d. informative demonstrations e. win-win negotiations f. service after the sale

Presentation Add Value ● ● ●

value added when you position yourself as a resource (not just a vendor) prove you have important ideas/ advice to offer good planning = customized and adapted to meet needs/ time constraints of prospect

Planning the Preapproach ● ●

two-part process part 1 = Preapproach

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○ prepare presale objectives ○ develop presale presentation plan part 2 = Approach ○ favorable first impression ○ securing prospect’s attention ○ transitioning to need identification

Establishing Presentation Objectives ● ●

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part research/ part planning/ part critical thinking consultative/ strategic alliance buying process ○ 1) Needs Awareness ○ 2) Evaluation of Solutions ○ 3) Resolution of Problems ○ 4) Purchase ○ 5) Implementation will not cover all stages in one call need multiple calls (diff objectives for each stage in buying process)

1) Needs Awareness → “Investigation Stage” ● Uncovering + clarifying needs w/ appropriate questions (learn later Ch.11) ○ Objectives for first call: ➢ Establish rapport + begin building relationship ➢ Get permission to ask need identification questions ➢ Obtain personal+ business info to establish their profile 2) Evaluation of Solutions ○ Objectives for stage 2: ➢ involve customer in product demonstration ➢ provide value justification (reduce cost + increase revenue) ➢ compare + contrast features of diff solutions ●

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Every sales call should have action objective (something you want customer to do) ↳ provide financial info ↳ schedule to meet somewhere ↳ trial use of your product ↳ agree to follow up meeting ↳ place an order once appointment made + objectives established ○ make sure to send fax/ email outlining agenda of the meeting ○ this confirms the appointment and clarify topics being discussed

Team Presentation Strategies ● ●

ideal for selling complex/ customized products that require direct communication team needed to uncover cover, solutions, opportunity

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results in more precise need identification, solution selection, sales presentations requires more detail precall plan Each team member should: ○ must understand their role ○ share detail info about customer ○ understand consultative sales presentation ○ prepared to add value

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hard to organize + plan ○ know when it's your turn to communicate ○ know when to ask for help from other sales rep

Strategies for Selling to a Buying Committee ● ●

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must satisfy individual and collective concerns decision buyers could be: ○ well-trained buying team ○ one-time purchase team ○ board of directors need to determine various buying influences ○ role of each decision maker ○ amount of influence of each decision maker ○ identify most powerful influencer ○ who will use product (user influencer) ○ who controls $$ (financial influencer) ○ who provides expertise to decide (technical influencer) make all parties feel involved direct all questions/ comments to all parties find out if any silent members (does not attend presentation)

Adaptive Selling: Builds on Four Strategic Areas of Personal Selling ● ● ●

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every customer has unique needs, wants and concerns involves adjusting communication styles to fit customers ○ requires adjusting during and after sale strategic planning during preapproach includes: ○ strategies to position yourself with customer ○ tactics you use when face-to-face planning approach involves: ○ relationship strategy ○ product strategy ○ customer strategy

Relationship Strategy ● attention to small detail

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sending email to confirm appointment arriving early verbal/ nonverbal messages behavior and appearance customer preferred communication style (find cues to identify cues)

Product Strategy ● learn something new during preapproach ○ helps you identify features that appeal to them ○ able to identify questions they might ask ● product knowledge + customer knowledge = confidence (abe to alter sales approach) Customer Strategy ● have higher expectations for value-added products + long-term commitments ● focus on understanding customer needs, wants and buying conditions ● requires careful review in prospect database

Developing The Six-Step Presentation Plan ● ●

presentation plan helps you achieve your objectives time constraints = only meet few minutes = careful planning needed to win business

Planning the Presentation ●

have sufficient background info → ready develop “customized” presale presentation plan

Six Steps: Approach

➢ favorable first impression ➢ securing prospect’s attention ➢ developing prospect’s interest

Need Discovery (Ch.11)

➢ ask strategic questions ➢ determine needs ➢ select solution

Presentation (Ch.12)

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select presentation strategy create presentation plan initiate presentation

Negotiation (Ch.13)

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anticipate buyer concerns plan negotiating methods initiate win-win negotiations

Close (Ch.14)

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plan appropriate closing methods recognize closing clues

Servicing the Sale (Ch.15)

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initiate closing methods

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follow through follow-up calls expansion selling

Adapting Presentation Plan ● ● ●

carefully select activities included in six-step plan before developing the plan, “do these activities relate to customer’s buying process?” buying procedure/ structure may vary company to company

The Approach ● ●

the initial contact with customer (telephone, face-face) if approach is effective → gives chance to make the sales presentation

3 Approach Objectives: *First 2 steps most important - determines how much influence you have thru out rest of sale 1. Build Rapport ○ accomplished with telephone/ social contact 2. Capture Full Attention with your business contact 3. Transition to Next Stage of Sales Process (need discovery) ○ multi-call presentations = might be another stage Credibility ● impression people form about you early in sales process ● establish credibility early Ways to lose Credibility: ● misspelled words/ grammatical errors in email ● arriving late for appointment ● answering phone/ email while with a customer ● failing to keep good eye contact ● acknowledging only certain members of a buying group ● failing to send info to prospect ● being unprepared for sales call

The Telephone Contact ● ●

appointments important b/c prospects may have busy schedule \ cannot see facial expression/ gesture, rely all on voice + words

Telesales ● same elements of a traditional sales ● not scripted, not telemarketing Making an Appointment 1. Plan in advance what you will say a. written presentation plan as a guide for first few seconds b. what you say depends on your objectives c. calendar ready to confirm date, time, place 2. Politely identify yourself and the company you represent a. friendly tone b. avoid getting shut down by gatekeepers (receptionist) 3. State purpose of your call and explain how the prospect can benefit from the meeting a. benefit statements that gets prospect’s attention b. only enough information to stimulate interest 4. Show respect for their time by telling them how long appointment will take a. specify a specific date and time 5. Confirm the appointment with a brief note/ email. a. enclose business card or any printed information for the prospect Voice Mail ● compelling reason for prospect to call back ● information that would stimulate interest ● similar opening statement during face-to-face ● brief and describes benefits customer can receive ● give best time to reach him, slow + repeat phone number Email ● ● ● ● ● ●

make it easy to read and handle your email meaningful subject line main point in 1st paragraph message tells them what you want and reason to respond format it with headings, check for grammar/ spelling mistakes use signature file (name, title, affiliation, phone number)

The Social Contact - Building Rapport ● ● ● ● ●

first impression is important building rapport leads to credibility, which leads to trust once they trust you, prospect open up and share info info will provide clues (ways to create value) brief, relaxed and friendly

3 Areas of Conversation for Social Contact:

1. Comments about here and now 2. Compliments 3. Mutual acquaintances or interests Guidelines for Good Social Contact: 1. Prepare for the social contact ○ conduct background check on prospect 2. Initiate social contact ○ open-ended opening comments ○ nonverbal communication (enthusiastic + friendly) 3. Respond to customer conversations ○ acknowledge verbal + nonverbally 4. Keep the social contact focused on the customer ○ encourage them to talk about themselves

The Business Contact ● ●

carefully planned opening statement to convert attention to the sales statement/ question that focuses on prospect’s main buying motive

Converting The Buyer’s Attention And Arousing Interest ● ●

consultative selling = question/ survey used the most approaches can be combined

Agenda Approach ● thank them for time meeting + review your goals for the meeting ● works best for mult-call sales eg) “Thank you for meeting with me this morning. I would like to accomplish 3 things during the time you have given me”

Product Demonstration Approach ● ●

showing the product, sample, mock-up, brochure… works best for convention services, technical products, equipment….

Referral Approach ● third party (a satisfied customer) eg) “Mrs…, My name is ..., I represent..., We specialize in …, Mr…. is a regular customer of ours and he suggested I mention his name to you.”

Customer Benefit Approach ● immediately pointing out one benefit from buying the product ● begin with most important issue eg) “The Sony … lightweight projecter strikes a balance among cost, size…. Its a good choice for a quick business trip or….

elevator speech - focuses on the benefit of working with the salesperson + establish credibility eg) “Hello, I’m Kevin Zhang. I partner with companies like yours that need to find talented people to help their business grow and become more profitable.

Question Approach ● triggers prospect involvement ● gets prospect to think about a problem that you’re prepared to solve ● listen to response (if answer is yes = proceed enthusiastically) eg) “Is the vehicle for business or pleasure?” “Will you be buying within the next week or so?” “Are you aware that we just…. Could I tell you about them?”

Survey Approach ● ●

new clients fill out questionnaires before first meet for finacial services, office machines, security systems, insurance

Premium Approach ● ●

giving prospect free sample for cosmetics

Coping with Sales Call Reluctance ●

fear of making initial contact is one of biggest obstacles

Sales call reluctance - thoughts, feelings, behavioral patterns that limit what you can accomplish - caused by, ● fear of taking risks ● fear of group presentation ● lack of self-confidence ● fear of rejection - suggestions for dealing with it: ● be optimistic about the outcome of initial contact ○ double win, value-adding approach ● practice the approach ● recognize that it's normal to feel anxious ● develop deeper commitment to your goals

Selling to Gatekeeper ● ● ● ●

assistant/ secretary work hard to align with this person treat them with respect/ learn their name they can tell you prospects buying process or new developments with the company

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if possible, use referral

Chapter 11 - Consultative Questioning Strategy 1. 2. 3. 4. 5.

Outline the benefits of the consultative sales process Describe the four parts of the need-satisfaction model Discuss the use of questions to discover customer needs Describe the importance of active listening and the use of confirmation questions Select solutions that match customer needs

Consultative Sales Process Adds Value ●

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Consultative selling is a value-adding process: o Meeting customer needs by asking strategic questions, listening, understanding, caring o Selecting appropriate solution, creating sales presentation, after sale o Customer-centric Consultative problem-solving capability translates into:

1. Increased Customer Satisfaction ●

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Prefer to purchase solutions that truly meet their needs o adds value, max satisfaction, sets stage for partnership and repeat business o might mean higher price than expected by higher value compensates it sales ppl who can diagnose + solve problems can satisfy what customer was expecting to get

2. More Sales Closed ● ● ●

Extra time used to solve buying problems = closing more sales Buyer resistance in most selling situations Understanding needs and providing most suitable solution = adds value

3. Fewer Order Cancellations/ Returns ● ● ● ●

Many firms don’t make profit until 3rd/4th sale Repeat business and list of referrals is important Customer feel treated fair = partnership building and future sales Satisfied customers = “auxiliary” sales force (by word of mouth)

Four Part Need-Satisfaction Model Need Discovery

Selection Of the Solution

emphasis on questions

a pivotal point

Need Satisfaction

Serving the Sale

through informing, persuading, reminding emphasis on statements

build repeat business

Part 1 - Need Discovery ● ● ● ●

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Marketing concept = customer needs Important for salesppl to discovery needs, create value, meet customer needs Be able to diagnose and solve a problem Need discovery usually starts after transitioning from the approach ○ Can begin in qualifying stage or initial approach with a survey ○ For multi-call, first call = need discovery objectives Time spent on this stage depends on ○ Level of sophistication of product ○ Price ○ Customer’s knowledge of product ○ Product application ○ Time available

Part 2 - Selection of Solution ● ● ● ●

Product selection and recommendations (custom-fitted solutions) Selecting a product that maximizes customer satisfaction Salesppl must be aware of all product options (including competitors) Effective value-added analysis = salesppl who become trusted advisor

Part 3 – Need Satisfaction through Informing, Persuading, Reminding ● ● ●

Creating a need-satisfaction sales presentation + communicating it Start asking less questions and making more value-adding statements Value-adding statements organized into presentation (inform/persuade/remind)

Part 4 – Servicing the Sale ● ● ●

Activities after closing a sale Ensures long-term relationship Servicing includes expansion selling, credit arrangements, following promises, complaints

Creating Value With Need Discovery ● ●

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Should not recommend products without need identification Two way communication (asking appropriate Q’s, listening carefully) ○ Responses reveal dominant buying motive Ask questions that lead to consultative conversations Some may not be aware they have a problem ○ Our job to bring insight to their buying problem + solutions Need Discovery starts with precall preparation (getting bkg info of prospect/ qualifying)

Need Discovery - Asking Questions

● Type/ timing of questions determines if you create value ● Enlighten customers needs and solutions Two Selling Models:

1. The Spin Selling Model (strategic selling era) ● ●

Multiple questions that clarify problems, evaluate range of solutions, potential outcome of solution 4 types of Q’s in sequence ○ Situation -> Problem -> Implication -> Need-Payoff

2. Personal Selling Skills Model (consultative selling era) ● ● ●

Successful sales calls average 30 mins (13.6 Q’s, 7.7 product features, 6 benefits) Questions get ppl thinking High performers: ○ Use questions to gather info + build mutual understanding ○ Balance of open and closed Q’s ○ Use questioning strategy to facilitate an open exchange of information

The 4-Part Consultative Questioning Strategy ● Situation, Probing, Confirmation, Need-satisfaction questions ● Work best when you try to understand customer, not persuade ● Sequence not always set, diff Q’s can happen at any time Survey Questions → problems + situations Probing Questions → Pain + implications Need-Satisfaction Questions → Pleasure + need satisfaction Confirmation Questions → Mutual understanding

1. Survey Q’s Reveal Customer’s Problems ● Survey Q’s -Info gathering about customer’s existing situation/ problem ● General Survey Q’s - early in sales presentation to discover facts about existing situation eg) Tell me about the challenges you are facing in the area of data storage? ● Specific Survey Q’s (problem Q’s) gives prospect chance to describe a problem in more detail eg) How do you feel about installing another server to your system? ● ● ● ● ●

Should use CRM or other sources to gather factual info, not waste time asking them More time on specific questions Usually at beginning of sales but sometimes also asked any time Open Q’s - requires more than just yes/no ○ Provokes thoughtful + insightful answers Closed Q’s - can be answered with yes/no or brief ○ Useful when need to focus on a specific issue

2. Probing Q’s Reveal Customer’s Pain ● Probing Q’s (implication) - clarify buying problem + consequences of those problems ● For large complex sales eg) How does management feel about employee turnover and the related customer service problem? ● ●

Helps gain mutual understanding WHY a problem is important Successful probing Q’s lead to customer opening up and sharing ideas

3. Confirmation Q’s Reveal Mutual Understanding ● Used throughout sales to assure there is a mutual understanding ● To gain commitment (important for complex sales) ● Helps correct miscommunication eg) If I understand you correctly, the monitoring system must be set up at both your corporate hq and at the manufacturing operation. Is that correct? ●

Buying conditions - qualifications/ conditions that must be fulfilled to close a sale ○ Salesperson must confi...