sales techniques - effective sales training
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Sales Techniques: Full Quality Training on Salesmanship. - Effective Sales Training.TRANSCRIPT
SALES TECHNIQUEShttp://www-rohan.sdsu.edu/~renglish/377/
chapter 1: Introduction to Selling
chapter 2: Relationship Selling
chapter 3: Ethical and Legal Considerations
chapter 4: Consumer Behavior and The Communication Agenda
chapter 5: Finding your Selling Style
chapter 6: Preparation for Success in Selling
chapter 7: Prospecting
chapter 8: The Preapproach andTelephone Techniques
chapter 9: Approaching the Prospect
chapter 10: Asking Questions and ListeningThe S P I N
chapter 11: Preparing for an Effective Presentation
chapter 12: Handling Objections
chapter 13: C L O S E
chapter 14: Building Relationships with Total Customer Service
chapter 15: Personal Organisation andSelf Management
chapter 16: Sales Management
CHAPTER 1 INTRODUCTION
TO SELLING
Qualities of High Sales Performerso Sell to people o Know when to close o Exchange Information o Regularly establish trust o Engage in certain behaviors o Provide value added to the customer o Be perceived as a genuine advocates of
prospects’ needs
THE SALES EDGE - EVERYBODY SELLS o Human relation skills are basic selling skills. o Skills are learned and practiced from birth. o Everyone has a base upon which to build their selling abilities.
o Introverts and extroverts are successful in selling
The Value of SalespeopleSelling keeps products, services and ideas flowing.
Sales people are solutions providers
o Growing corporate competiveness o Latest sales strategies are essential o Understand your customers problems
Businesses rely on salespeople for
many functions
o identify customer needs o Help determine prices of the products their
company sells. o Inform customers of new products.
o Follow up on the customer once the sale is made.
Critical importance of salespeople
is recognized by
o Compensation places more salespeople above $100,000 annually than people in any other profession.
o Time and Cost of Sales Training o Importance of Sales Training
o 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 Trainingo Salespople are cross trained on other tasks o Cost of replacing a trained seller can be up to $500,000 o Learning never stops o Salespeople are most comfortable selling what they understand. o Successful companies see sales training as the basis for gaining a competitive advantage. provide ongoing training
o Sales training builds confidence in the sales force and enables them
to make superior presentations.
THE POSITIVE NATURE OF PROFESSIONAL SELLING
False Negative Perceptions about selling abound
Personal Attributes Required
o Personal Integrity o Personality Structure
o Personal Relationships
Personal Abilities Demanded
Women in Sellingo
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
There is no evidence relating performance to gender
There are style differences.
PERSONAL SELLINGDefinition of Personal Selling
Seeking Seeking out people who have a particular need.
AssistingAssisting them to recognize the existence of needs they have that could be met through your offering.
Demonstrating Demonstrating how your offering fills that need.
PersuadingPersuading qualified prospects that your product will fill their needs.
Salespeople are made not borno They are made with
concentrated attention repeated practice goal oriented direction
o Become a Master Salesperson o Become a student of your profession
o Learn throughout your career
REWARDS OF A SALES CAREERo Variety and Independence o No set routine o Each sales situation has a unique character o The variety of prospects and their needs. o Variety of activities in one day and from day to day o Security o Entrepreneurship o Professional salespeople are never unemployed.
o Salespeople have an especially good opportunity to exercise a direct effect on their income and security
by their own efforts.
Hierarchy of Personal Needs
MORE REWARDS OF A SALES CAREER
Opportunity for Advancement
o Advancement in Direct Selling o Entrepeneurship o Promotion to Sales Management o Involvement in Sales Training o Moving Into Top Management o Security
Personal Satisfaction is derived from
o The knowledge that you are meeting your own highest personal needs for self-actualization.
o Knowing that you have been of service to someone else while, at the same time, you have met your own goals.
o Being able to control your own work time and activities on a daily basis.
DISADVANTAGES OF A SALES CAREER
Variable income Long hours
Travel Handling rejection
CLASSIFICATION OF SALES JOBSAll sales jobs have some similarities
o The need to understand the prospect’s problems o The need for self discipline to relentlessly execute a sales plan o The need for appropriate technical and/or product knowledge. o The ability to translate products into benefits that resolve problems
Trade Selling
o Taking orders and field service. o Largely involves delivering orders and replenishing
inventory. o Expected to persuade customers to provide additional
shelf space or more favorable placement of stock. o Opportunity to increase sales comes most often
through assisting the customer to move a larger volume of inventory.
o Often actually set up product displays in retail stores.
Missionary Selling
o Educate those who ultimately decide what product will be used by the consumer.
o Often does not see immediate results from their efforts in the way of products sold.
o Still accountable for sales.
Technical Selling
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.
o Often conducted by a sales team.
o Still need real sales skills because their role is more than just explaining the technical aspects of the product.
New Business Selling
Selling for a Manufacturer
Account representativeo Established clients o Many calls
Detail salespersono Concentrates on promotions o Product introductions o May not take orders directly
Sales Engineer o Technical skills
Industrial Products Salesperson - Non Technical
o Tangible products o Industrial customers o Technical knowledge not
needed
Service salespersono Intangible products
o Sells on benefits only
Selling at Retail
Largest group - Real estate - Retail clerks Insurance agents - Telephone salespeople Direct (door to door) - Party sales Multi level sales
The Order Taker and the Order GetterOrderTaker
o "Responds" or "Reacts" to the expressed desires of customers is
o Uses suggestion selling to get buyers to purchase additional products.
OrderGetter
o are creative, persistent, and build strong relationships o creative selling deals with intangibles and intangibles o offers the possibility of the highest personal income of
any type of selling. o requires a high level of personal skill, dedication and
effort.
o time is still spent in maintaining relationships with former or present clients.
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
o Sincerity
o Empathy
o Goal Direction
o Resourcefulness
o Administrative Ability
o Perseverance
o Pleasant Personality
o Initiative
o Ability to Ask Questions
o Willing to do what it takes to attain goals.
o Ability to find satisfaction in contributing to achievement of the goals set by their company.
o Enjoy serving the needs of others.
o Able to stay focused on daily activities.
o Other characteristics
11Strong positive self image
11High ethical standards
11Sensitivity to the needs of others.
11Able to win the trust of others
CREATE THE SALES EDGEC Change is often desirable, frequently
necessary, and always inevitable
RRemember…only you can give yourself permission to approve of you. Unlock your mind from negative thinking
E nvision yourself a success. What you think about you become.
AAttitude does determine your altitude. It's what’s inside that makes you rise.
T The right angle to solve a problem is the try-angle.
E Eliminate failure as an option, and progress naturally emerges
T The best is yet to come. yesterdays impossibilities are today’s possibilities.
H Have your dreams. they are the stuff great people are made of. reach for the stars but keep your feet on the ground.
E Extraordinary desire and persistance drives ordinary people to achieve great things. achievers are not extraordinary people.
S Seven days without laughter makes one weak.
A A smile is the shortest between two people.
L Listen twice as much as you talk. You were given two ears and one tongue.
E Encourgaging feedback is a process for learning about your impact on those around you.
S Success is the progressive realization of worthwhile, predetermined, personal goals.
E Excuses are for losers. Winners have ways. May we all find the way.
D Determine never to give up. It’s when things seem the worst that you must not quit.
G Goals are dreams with a due date.
E Expect the best of yourself. Be somebody special. The best never consider success optional.
CHAPTER 2 RELATIONSHIP SELLING
“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 SELLING
The trend in professional selling today is toward Consultative, Problem-Solving selling
Customer Satisfaction The ultimate goal of the consultative seller throughout the selling process.
RelationshipManagement
Managing the account relationship Ensuring that your clients receive the proper service before, during and after the sale
Successful sellers who foster relationship
selling
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.
The value of customers
InfoQuest CRM undertook a detailed study of 20,000 of its customer surveys from around the world
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 RelationshipRelationship
BuildersRelationship
Breakers
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
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 The Approach o Identyfying Needs o Making the Presentation o Overcoming Resistance
o Gaining Commitment
Time o 40% spent on gaining rapport and trust
Empathy o Think the way your customer thinks
Customer expectations o Higher than ever
Technology
Gives us tools to aid in the process
Can also cause a loss of personal contact
Has taken over low end transactions
The Sales Cycle Framework
for Consultative Selling
Phase 1: Pretransactional Steps
Prospecting
Qualified prospects Money AuthorityNeed
Prospecting discussed in depth in Ch 7
Preapproach
Telephone Activities
Phase 2: Transactional Steps
Approach The Success of the process depends on this
Need DiscoveryActive questioning and creative listening skills are needed
Preparationand
MakingThe presentation
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
Handling Objections
[Resistancecan be avoided]
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.
There may be problems beyond your control.
Closing
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 ModelTotal Quality Management
ModelFocus on product Focus on service
Company knows best Customer knows bestTransactions Relationships
Individual performance Team PerformanceFire-fighting management Continuous improvement
Blame/punishment Support/rewardShort-term (year or less) Long-term (years)
Intolerant of errors Allows mistakesAutocratic leadership Participative Relationship
Bureaucratic EntrepreneurialTop-down decisions Consensus decisions
Inward focused Outward (customer) focused
TEAM SELLING
The Growth ofTeam 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 ofTeam 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
The Roles of Each Member
Requires special planning
Must have a leader
Must agree on objectives
Must be better rehearsed
CombinationsThat Work
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 3ETHICAL AND LEGAL CONSIDERATIONS
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 breaking the law?
How does George Aaronow(Alan Arkin) violate rules of ethics?
What was unethical about Ricky Roma's (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 Managementby Dr. Ken Blanchard & Dr. Norman
Vincent PealeThe basic message of their book 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
Universal Nature
The golden rule
Everyone plays by the same rules
Truth TellingTrust facilitates cooperation
Responsibility for One's Actions
Don't blame others for your problems The "victim" mentality
THE ETHICAL DILEMMA:Do honest salespeople finish last?
Ethical QuestionsWhat 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 Standards-based ethics uses specific rules
Teleological Results-Based Ethics defines right and wrong in terms of end results
Utilitarianism
Started by Jeremy Bentham (1748-1832)
Tried to reform some of the unfair laws in England
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 ETHICS
Company Code of EthicsGovernment action and fear of retribution have induced more
companies to adopt a code
Typicalissuescovered
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
o Profit?
o Survival? Groupthink peer pressure
group develops a set of shared perspectives that may be unrealistic but are strongly
supported by the members of the group.
Gamesmanshipwinning
for the sake of winning
Responsibilityto Self
your conscience
Responsibilityto your Company
Inaccuracies in Expense Accounts
Honesty in Using Time and Resources
Accuracy in Filling Out Order Forms
Representing the Company
Responsibilityto Competitors
Responsibilityto 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 TENUREWhistle-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
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
Be sure managers fairly manage the distribution of sales territories
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
- 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
SomeLegalTraps
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
Categoriesof Laws
Antimonopoly Deceptive actions Preserve competition
SPECIFIC ANTITRUST LAWS AND THEIR SALES IMPLICATIONS
The Sherman Antitrust Act of 1890Federal Trade
CommissionAct of 1914
Unfair methods of competition and commerce Unfair or deceptive acts or practices
The Robinson Patman Act of 1936
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 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 4CONSUMER BEHAVIOR &
THE COMMUNICATION AGENDA Lincoln's Gettysburg Address
268 words196 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
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.
You, the seller must
be able to determine
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 ByTime 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.
PurchaseDecision
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
Cognitive Dissonanceaka "Buyers Remorse"
post-purchase anxiety Depends upon the importance of the decision and the attractiveness of rejected alternatives.
Minimize
by selling products that meet needs,
by reinforcing the buyer's belief that the right decision was made
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
Decision Maker May be a buying center
Buying Criteria More complex
Buying Motivation
rational economic emotional
Characteristics of
Organizational Buyers
Fewer in number, Purchases involve larger dollar volume Less freedom of decision
Categories of Organizational
Buyers
Industrial Wholesale & Retail Government
Purchase policies
set by companies provide guidelines concerning performance, service, quality etc. Product or service must meet these criteria
Multiple Buying Influence
Several people involved directly or indirectly in the decision making process. Many times dollar limits are set and exceeding these limits requires the approval of higher level executives.
The Buying Center
Users. Buyers. Influences. Gatekeepers. Decision Makers.
BuyingMotives
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
Ultimate Organizational 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
Profit Economy Flexibility Uniformity of output Salability Protection Utility Guarantees Delivery Quality
ENVIRONMENTAL INFLUENCES ON THE PURCHASE DECISION PROCESS
Psychological InfluencesThe 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.
Attitudes are the mind’s paintbrush. They can color or affect any situation.
Self-image
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
Encoding the Message Encoding and decoding of messages are often achieved through the use of symbols
The Message ItselfEvaluating 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)
Visual communication the expresses majority of a person's feelings and emotions
KinesicsBody 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
Proxemics
concerned with the physical distance individuals prefer to maintain between themselves
and others. 1. Successful sellers tend
to move closer to aclient when closing a sale.
2. It is best to carefully test for a prospect's comfort zone.
3. Comfort zones tend to change with sex, status, or age.
4. Four to twelve feet from the client could be a good distance in which to begin a sales interview.
5. In a selling situation, the intimate zone should be entered only by invitation or during a handshake.
Cultural ProxemicsCultural Proxemics
HAND SHAKE
o Americans use a firm, solid grip; o Middle Easterners and Asians prefer a gentle
grip a firm grip to them suggests unnecessary aggressiveness
EYE CONTACT
o Americans are taught to look directly o 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.K. GESTURE
o For Americans, forming a circle with thumb and forefinger to signal O.K.
o Means "zero" or worthless in France o Means money in Japan o Means calling someone a very bad name in
Germany.
NODDING YES OR NO
o For Americans, up and down means yes, side to side means no
o in Bulgaria, the nods are reversed in meaning.
PUTTING FEET ON TABLE
o An American gesture is found to be offensive to nearly every other country around the globe
GENDERSPEAK: SEPARATED BY
COMMON LANGUAGERelating to the Opposite
SexBody language does not mean exactly the 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, 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."
Women Men
Personal Space
o Tend to surrender more quickly
o May feel vaguely uncomfortable about having done so.
o Tend to surrender less quickly
Interruptionsinterrupt men less often they do other women.
interrupt both sexes
Networking Tend to use more Tend to use lessPatience More Less
Use of Humor Less More
questioning and listening
Tend to be better Tend to be worse
CHAPTER 5FINDING YOUR SELLING
STYLE A DIFFERENCE IN
SOCIAL STYLEFailure to understand styles can cause lost sales, frustration
Success and
Behavioral Styles
o Understanding styles leads to better communication
o Style analysis was started by Jung and modified by others.
THE BEHAVIORAL OR SOCIAL STYLES MODEL
Four basic styles based on four functions of human personality
Function Characteristic
Driver [Sensor] Quick reactions to here and now sensory input
Expressive[Intuitive] Imagination and thought
Amiable[Feeling]Emotional and personal reactions to experiences
Analytical[Thinking]Logically organizing and analyzing data
Are You A Director, o Try the Kiersey Temperament
Thinker, Relater, or Socializer?
Sorter
o Here is the Watchword Technique
Basic ConceptsPrimary style the favorite
Back up style used sometimes (stress)
Clues to style manner of speech use of time, etc
We respond to a style similar to our own.
Don’t overuse your style
Behavioral Styles in Selling
o We use one or two styles in selling o Know your own style well o Style predicts surface behavior.
o It is not an in-depth personality analysis.
Dimensions of Behavior
Assertiveness[dominance]
The degree to which a person attempts to control situations or the thoughts and actions of others.
Responsiveness [Sociability]The readiness with which a person outwardly displays emotions or feelings and develops relationships.
VersatilityIndividual's ability to adjust personal pace and priorities to help interaction with a person of another style.
Recognizing Social Styles
Use the grid which plots assertiveness vs. responsiveness. Each quartile in the grid represents levels of intensity
Identifying the Four Behavioral Styles
Analytical
Low assertiveness
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 self-
actualization
o Has good problem-solving skills
Drivers
High assertiveness
Low responsiveness.
Control freaks. o Decisive in action and decision
making o Likes control; dislikes inaction o Prefers maximum freedom to
manage self and others o Cool, independent, and
competitive with others o Low tolerance for feelings,
attitudes, and advice of others o Works quickly and impressively
alone o Seeks esteem and self-
actualization
o Has good administrative skills
Amiables
o Low assertiveness o High responsiveness.
o Support specialists o Slow in making decisions or taking
actions o Likes close, personal relationships o Dislikes interpersonal conflict o Supports and actively listens to others o Weak in goal setting and self-direction o Seeks security and identification with a
group
o Has good counseling and listening skills
Expressives
o High assertiveness
o High responsive.o Social specialists
o Spontaneous actions and decisions
o Likes involvement o Exaggerates and generalizes o Tends to dream and get others
caught up in those dreams o Jumps from one activity to
another o Works quickly and excitedly
with others o Seeks esteem and group
identification
o Has good persuasive skills
Versatility as a communication tool o Conflict can happen if we use our own styles
o One person must adapt
Behavior Flexibility or Versatility
The willingness to control personal behavior and adapt.
The Law of Psychological Reciprocity
Human beings are instinctively impelled to return to others the feelings and emotions they give to us.
o When we move toward their style then they are compelled to move toward our style.
o Called mirroring and matching
o You can impact the thoughts, actions and feelings of others by modeling what you want to have happen
IdentifyingPace and Priority
o How fast are decisions made? o How competitive?
o How much feeling is displayed?
Style Cluesin the Prospect’s
o Office decorations
Environmento Furniture
o Pictures, diplomas etc
The Interaction of StylesStyle flexing is the ability to adjust your style to meet that of your prospect
Styles Shared
Dimension
Source of
ConflictArea of Agreement
Analytical v AmiableLow
Assertiveness Priorities Pace
Driver v ExpressiveHigh
AssertivenessPriorities Pace
Analytical v Driver Low Res-
ponsivenessPace Priorities
Amiable v Expressive High Res-
ponsiveness Pace Priorities
Analytical v Expressive Both
Amiable v Driver Both
Style Summary Driver Expressive Amiable Analytical
Backup Style Autocratic Attacker Acquieser Avoider
Measures Personal Values
By:Results Applause Security
Accuracy "Being Right:
For Growth Needs to
Listen Check Initiate Decide
Needs climate that
Allows to build own structure
Inspires to reach goals
Provides Details
Suggests
Takes time to be Efficient Stimulating Agreeable Accurate
Support their Conclusions and actions
Dreams and Intuition
Relationships and feelings
Principles and thinking
Present benefits that tell
What Who Why How
For decisions give them
Options and probabilities
Testimonials and
incentives
Guarantees and
assurances
Evidence and service
Their specialty is Controlling Socializing Supporting Technical
THE EMERGENCE OF NEUROLINGUISTIC PROGRAMMING (NLP)
Perceptual fields are the ways in which people perceive the world
o Use these as another way to observe and understand people.
o Separate from style analysis o The science of how the brain learns
Modes of PerceptionMost of us favor one
mode
Auditory Sound
Visual Sight
Kinesthetic Touch
Tapping into the Prospect's System of Perception Certain clues tell us which representational mode a person favors.
NLP can help you develop the ability to identify a prospect's traits
Interpreting Eye Cues
Visual Perceptio
n
Look-ing
up & left Visualizing or picturing the past.
Look-ing
up & right Constructing a visual image
Kinesthetic
Perception
Look-ing
down & right Remembering past feelings
Auditory perception
Look-ing
Side-ways
& left Hearing sounds from the past.
Look-ing
Side-ways
& rightConstructing a future conversation
Look-ing
down & left Talking to self
Left handed people may reverse
Interpreting Predicate Words: Listen for word cues
VisualI am watching developments in that particular stock; 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
Kinesthetic The atmosphere was heavy and damp; there was an oppressive stillness, thick with apprehension.
Match word cues with eye cues for accuracy.
Using Perceptual Field Informationo Adapt your mode of selling to their mode of learning.
o Adapt demonstrations as well as your verbiage.
Perceptual Field What to bring What to do
Visualdiagrams, pamphlets, graphs, videos
Show the buyer how the product works
Auditory tapes, videos with sound
Be well prepared to explain verbally
Kinestheticsamples, the actual product
Let the buyer hold the product, let them try it out
Learn NLP
Ethics of employing Style analysis or NLP.o Are they are simply used as tools to obtain information that will aid in
serving the client?
o Are they are used to satisfy personal greed?
CHAPTER 6PREPARATION FOR
SUCCESS IN SELLING EXCELLENCE
o Is never an accident. o Is contagious. o Is important because it is
everything.
o Demands commitment and dedication from organizational leadership.
o Is inspirational
o Is an organization's life line.
PREPARING TO SELL
Academic preparation
o Orients us to the business world o Acquaints us with managerial and
organizational styles o Acquaints us with various types of
problems or opportunities that face corporations
Involves three areas
o Product knowledge o Motivation and goal setting
o Knowledge of the sales process
PRODUCT KNOWLEDGEKnow everything.
The ProductItself
o External characteristics o How to use o All available options o Adaptability
Performanceo Life expectancy o Tolerance to wear and stress o Maintenance and supplies needed.
Manufacturing o How is it made o Quality control
DistributionChannels
o Distribution strategy. o Pricing policies o Media support o Target markets
ServiceAvailable
o Service policies o Service personnel
Application ofProduct Knowledge
o Know when to use it. o Can be a hindrance if you talk too much o Don't assume that it is solely the
company's responsibility to educate you.
Information Aboutthe Company
o History o Product evolution
o Present customers
Benefits of Gaining Product Knowledge o Gives you pride self confidence in the product o Gives you self assurance o Allows you to diagnose the customer's problems o Enables better customer service o Gives you an air of competence o Can sell to experts and to beginners
Knowledge of the Competition Differential Competitive Advantage
Product Superiority Service Superiority
- Versatility
- Efficiency - Storage - Handling
Time - Safety
- Appearance
- Design - Mobility - Packaging - Life
Expectancy - Adaptabilit
y
- Delivery - Inventory - Credit - Training - Merchandising - Installation - Maintenance
-
Source Superiority People Superiority
- Time Established - Competitive Standing - Community Image
- Personal knowledge and skill
- Knowledge and skill of
- Location - Size - Financial Soundness - Policies and practices
support people - Integrity and character - Standing in the community - Flexibility of call schedule - Interpersonal skills - Mutual friends
- 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
PersonalProductivity
o Laptops o Pen based computers o Palmtops o Contact Management Software o Mapping programs and GPS o Calendar and scheduling o Geodemographic segmentation o Smart Card Reader
ImprovedCommunication
o E mail o Internet and videoconferencing o Telecommuting
TransactionalProcessing
o Electronic data interchange for order processing
o Corporate contact management o Online databases for ordering
Product Positioning
o Marketing strategy built around benefits important to customers.
o Emphasis on service o Focusing on the few attributes that really set
you apart means you can’t be all things to all people.
o Keep an eye on how your competitors are positioning themselves.
o Positioning: The Battle for Your Mind
IntegratedMarketing
o A computer system that coordinates the 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.
o Modules within a firm use common 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.
Databases
o a collection of related records or transactions. o storing customer and prospect information on
a computer.
MOTIVATION
o The impetus to begin a task o The incentive to expend time o The willingness to persist until
the job is done.
o Motivation can come from without or within the individual
FearMotivation
Advantages Disadvantages
o It protects us from self destruction or harm
o It protects society o It is sometimes the quickest way
to get a reaction. o Easiest form of motivation o Gets results because the person
will do what you ask for fear of loss
o It is external. Take away the source and the fear disappears.
o It is temporary. It can eventually be tuned out.
o It is negative if we act to avoid punishment rather than by choice.
o Motivation based on intimidation.
o Always results in inner anger and resentment
o Usually results in “when the cat is away, the mice will play.”
o Use if person in power can not create a climate for other types of beneficial motivation.
o Sometimes the threat of loss or punishment for motivation must be used, but should only be used when all other methods have failed.
o
Incentive Motivation: money, perks, prizes
Advantages Disadvantages
o If the reward is desirable then sellers will go for it.
o It is positive.
o It is external. Comes from the boss not the self.
o It is temporary o If the reward is not desirable
then nothing happens o Incentives evolve into rights
instead of privileges
CAUSAL MOTIVATIONo 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. o 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’ 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
Attitude Motivation: Self MotivationAdvantages Disadvantages
o Internal and Permanento Based on strong self image. o Is the result of choices. o Conformity is a decision.
o No decision is a decision.
DESIGNING YOUR OWN SELF-MOTIVATION
Personal goals is the single most important tool
Various Perspectives o Motivation - Psychological Self-Help o Goal SettingTips o GOALS AND GOAL SETTING o Goal Setting Handbook o Goal Setting - Powerful Written Goals In 7
Easy Steps! o Goal Setting Articles o Time Mananagement o Free Tips for 1999 from the G.A.L.S. o Goal Setting Workshop o Goalmap - Set personal goals to improve
and balance your life o Where are you going? - 10/15/98 o Setting Your Goals o Techniques and Strategies for Managers
and Supervisors from The Economics Press, Inc.
o DYNAMICS OF LEADERSHIP, INC. o Goal Setting - Strategies for a Balanced
Life
o Goal Exercises - developing personal visio
Sincere Desire – Writing Down & Planning differentiate between a wish and a goal.
The Million DollarPersonal Success
Plan
CrystallizedThinking
o Know exactly what you want o Goals must be written and dated
A Written Planof Action
with Deadlines
o You know exactly what to do next o Gives you the time frame o Draws out your potential o Helps maintain a positive attitude o Helps eliminate distractions
SupremeConfidence
o Enables undertaking challenging goals. o Converts problems into stepping stones o Builds your credibility o Is your greatest source of security.
DoggedDetermination
o Allows you to ignore thoughtless comments o Allows you to ignore disapproval o Keeps you calling on difficult customers.
o Gives you creative freedom.
Download MP3s from the Author of "The Million Dollar Success Plan"
SUCCESS AND THE TOTAL PERSON
Success
o Is the progressive realization of worthwhile predetermined goals
o Is progressive throughout life o Is different for different people
The Wheel Of LifeTrying to
achieve balance in the areas of
o Financial and Career o Social and Cultural o Physical and Health o Mental and Education o Family and Home
o Spiritual and Ethical
CHAPTER 7PROSPECTING
THE CONCEPT OF PROSPECTING
o A salesperson without prospects is out of business.
o A salesperson without prospects can no more close a sale than a surgeon without a patient can operate.
o 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.
o You must have someone to whom to tell your story: one who wants to buy and can buy.
o 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 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 PROSPECTMoving from a "lead" to a qualified prospect
LeadJust a name
ProspectResearched for need, money authority
QualifiedProspect
Evaluated prospect along with personal
information
Qualify with the MADDEN Test
M oney o Research credit before
A pproachable o Can you get an appointment
D esire o You may have to create or discover
D ecision-Maker o Often missed by salespeople
E ligible o May be committed already o our company may turn down
N eed o Always a win-win
Class “A” Prospects
o Referral from a person the prospect respects o Has the ability to make a buying decision o Has the ability to pay for the product or service
o You have all the personal information you need to make a good presentation
METHODS OF PROSPECTING
Why we lose old customers (Attrition) o Customer's company goes broke o Competitor takes your customer o Customer moves or dies o Merger or downsizing o Customer-salesperson relationship deteriorates
Referrals Special Article by David Frey
o Have referral make the initial contact o Learn how to ask for a referral o Get letter of introduction o Have referral call the prospect o Referrals tend to be horizontal
Why people don't give referrals
o Can't think of anyone
o Object to giving referrals
Centers of Influence o Believes in what you are selling o Is influential with a number of people o Is willing to give you names
o The names given to you are at least partially qualified prospects, more than just leads.
Group Prospectingo Give a brief presentation to
a group o Follow up with interested
prospects
o Trade shows o Speaking engagements o Seminars
Planned Cold Callingo At least one out of seven
will be receptive. o Treat cold calls as a
supplement. o Don't neglect others by too
much of this. o Preplan Cold Calls o Develop effective,
memorable door openers o Limit Waiting a. Fifteen minutes b. Keep busy while waiting o Remain Enthusiastic
Direct Mail or Fax
o Prospects do read well targeted direct mail
o Watch quality of purchased lists
o Create your own newsletter
o Mailing is only as good as the list
o Membership rosters o City directories o Yellow pages o White pages o Religious groups
o Past customers
Joining Civic Groups
Carefully select groups
o Are members the type of people that you need
o 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 Look for sales opportunities
Networking - active cooperation i.e. "tips"o There are formal groups that you can join o Sharing information makes good sense o
o
Using Directories can be gold mines if used correctly
o Sales and Marketing Management - buying power index
o Moody's Industrial Manual o Poor's Register of Directors
and Execs o The Dun and Bradstreet
Reference book o The Thomas register of
American Manufacturers
o Contacts Influential
Observation Prospects are everywhere
o Always be looking o Read the news
o Trade journals
Company Initiated Prospecting
Telemarketing
o Telephone o Human calls o Computer generated calls
Fewer leads Lower cost
Advertising o Direct mail o Newspaper o Other media
Past Customers o Go over list of inactive accounts
Trade Shows
o Selecting the right show o On the spot vs. lead generation o Display planning o Staffing the booth o Pre show training o Getting high visibility o Managing information collected at show o Planning follow up
Web Sites
o For Prospecting o Streamline the sales process
o Joint marketing with other firms
The 12 Faces of Call Reluctance Why do we hate to use the phone? o Are you one of these classic types o Identified by George Dudley and Shannon
Goodson. o Listed in order from most common to least
common
Yielder o Fears intruding on others or being pushy.
Overpreparero Overanalyzes o Underacts.
Emotionally unemancipated
o Fears loss of family approval o Resists mixing business and family.
Separationisto Fears loss of friends o Resists prospecting among personal friends.
Hyper-Proo Obsessed with image o Fears being humiliated.
Role rejecter o Ashamed to be in sales.
Socially self-conscious
o Intimidated by upmarket customers.
Doomsayer Worries, won’t take risks.
Telephobic o Fears using the telephone for prospecting or selling.
Stage fright o Fears group presentations.
Referral aversions
o Fears disturbing existing business or client relationships.
Oppositional reflex
o Rebuffs attempts to be coached.
Conquering Call ReluctanceFrom behavioral scientist and call reluctance expert
George Dudley.
Admit that you have call
reluctance.
o 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. o Salespeople “typically know something is wrong, but
they may not know what it is,”
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.
Determine your call reluctance
type
o Clearly and specifically identifying your fears or negative thoughts.
o Tackle them head-on, one at a time. o Curbing call reluctance is like breaking a bad habit.
Adopt appropriate
countermeasures
o Token reward systems may be useful
o Relaxation techniques may help
Thought Zappingo Place a rubber band around your
wrist. When a negative thought intrudes, you snap the rubber band sharply
o Immediately conjure up a positive mental image of yourself
o Follow up o Keep
plugging o Make calls.
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 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.”
MANAGING PROSPECT INFORMATION
Initial Recording of LeadsRecord all basic information (computer or index cards)
Classification of ProspectsA simple method for manual systems Class A: You have enough information to make a presentation Class B: You need more Class C: A "lead" you don't know much more than the name Sophisticated, classifications can be done with a computer
Scheduling ContactsContact prospects using a prioritized list Keep a tickler file.
USING TECHNOLOGY TO MANAGE PROSPECT INFORMATION
Personal Databases
Corporate Databanks
Improving Communications
o Salespeople now have access to the most current information
SUMMARYo Prospecting keeps you in
business o Ten methods have been given.
o Referrals and center of
influence are the best
Chapter 8 The Preapproach &
Telephone Techniques The Importance Of Preapproach Planning
The path to success
o See enough people
o See the right people
o See them at the right time
The four phases of the sales process that turns a lead into a qualified prospect
PreapproachThe planning and preparation done prior to the actual contact with the
prospect
o Allows you to be less mechanical and more thoughtful o Allows you to anticipate problems and plan ways to handle
them
STEPS INTHE
PREAPPROACH
o Analyze prospecting information.
o Plan specifically for each sales call.
o Go over your presentation.
o Study product and sales literature.
EXTENT OFTHE
PREAPPROACH
o There is some overlap between prospecting, preapproach and approach
o The amount of preapproach will vary with
industry client number of accounts familiarity
etc.
Preparation & Preapproach
Developa checklist of
sales essentials(exhibit 8.1)
Questions about the prospect's company
o What business is the prospect's company in?
o What are its products and markets?
o Who are its primary customers? o How big is this prospect's company? o Where does it rank in its industry?
Questions about the prospect's company's
buying center
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 Does any in my company know anyone
in this company?
OtherQuestions
o How often does this company buy my type of product or service?
o Who is this company's competitor? o Does my company do business with
that competitor? o What plans does the company have
that could affect future need for my product?
o How well is this company satisfied with its present supplier?
o Does this company's potential volume of business suggest a personal call, a telephone call or a letter?
o Do we (or can we) use their product or service?
If I don'tmake the sale
o Can I get a referral to another department?
o Can I get a second appointment? o Will they seriously evaluate my
proposal?
Gain a Personalized Sales Interview with the information gathered above.
Predict LikelyObjections
o Your past experience o Your company's training o The preapproach information gathered
Prepare for the Presentation
o Set sales call objectives o Rehearse o Practice demonstrations
VisualizeSuccessful
Selling
o Mental toughening - visualize the meeting over and over with a successful outcome.
o Practice out loud. Role play.
Learn How to Best Approach the Prospect
o Style analysis
Sources of Preapproach Information
SixProven
Sources
1. Direct questions: prospect 2. Other company salespeople 3. Current customers 4. Local newspaper
5. Personal visit / cold call
Some thingsto look for
o Mergers o Personnel changes o Changing product lines o Advertising plans o TV and magazine ads
o Sales training
Be ready toanswer
Ten Buyer Questionso What are you selling? o 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
satisfied? o What kind of person are you? o Is your price truly competitive? o How does your solution compare to
other alternatives? o Why do I need it now? o What is your record for support and
service?
FURTHER QUALIFYINGTHE PROSPECT
o Ask more questions during the approach
o Most prospects answer freely
Building Your Personal Self-Confidence
Having a plan and knowing the customer bolsters your self confidence
Enhance your perceived
value
o Dress appropriately o Be polite o Don't knock the competition o Be prompt o Keep promises o Plan ahead don't leave anything to chance o Write a note of thanks
o Look for ways to do extra things
Setting Up the Sales InterviewTiming o Will the prospect be too busy?
o What is the "best" time to see the prospect?
Gaining EntryMaking the
First appointment
o Letter - the weakest o Cold call - good but time consuming o Telephone - high rejection rate
o Telephone - mail - follow up call
Get the Prospect's
Name
Some Techniques o Ask former or retired employees to give you
names and the lay of the land o Ask the building administrator for 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.."
Gatekeepers o Show them sincere respect.
o Friendly not fake. o Be honest about your intentions o Get personal information about the
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 o Be patient and persistent
Voicemail
o Press "0" on your phone. Usually gets a 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."
Telephone Techniques
Telemarketing
o Use of sophisticated telecommunications and information systems
o Combined with personal selling and servicing skills
o Helps companies keep in close contact with present and potential customers Increases sales Enhances business productivity
o Do mental exercises in advance of a telephone approach
o Use powers of visualization.
o Relax and close your eyes. o See yourself and the prospect. o Think about what you will say and anticipate
the prospect's responses. o Create a mental hologram and live it over and
over in your mind. o Practice out loud - your mind believes the
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 You gain the same benefit from this type of practice as from an actual sales interview.
Good techniques
o Qualify prospects o Budgets your time o Enhances your image o Preconditions prospect for
the call
First Impressions
o Eliminate verbal pauses o Scripts can be helpful
o Voice tones
Annoying Voice CharacteristicsWhining and complaining 44.0%High pitch or loud tone 28.0%Mumbling 11.1%Too fast or too weak 8.5%Monotone 3.5%Strong Accent 2.4%
The Appointment is a Mini Sale Sell the appointment not the product
AskYourself
o Why am I calling? o What is my proposal? o What would make this person want to grant
my request? o What is the best action plan that I can
offer?
Key Strategy points to consider
o Schedule a specific time for calls o Always follow up a successful call with
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 Watch language and speech patterns
Plugging Contact Management into
the Telephone.
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 Road Warrior Sidekick - your virtual assistant
The Six-Step Telephone Track
Step I Introduce Yourself
and Your Company
o A judgement will be made within 15 words
o Keep it warm and friendly
Step II Take the Curse
Off the Call
o A call is an interruption o Get permission to continue o Soften the impact with "just
a minute," etc.
Step III State the Purpose
of the Call
o A brief hard hitting lead in o Mention referrals if you have
them
Step IVAn
Interest-Capturing Statement
o Usually a customer benefit o You can also use a
provocative question
Step VRequest an
Appointment
o Don't give too much information over the phone
o Give a choice of times (fatal alternative)
Step VIOvercome Resistance
o Agree with the objection o Switch back to your idea of
reason for the appointment
o Ask for the appointment again
Chapter 9 APPROACHING THE PROSPECT
PURPOSE OF AN EFFECTIVE APPROACHo To make a favorable or positive impression on the prospect. o To gain the prospect's undivided attention. o To develop positive interest in your proposition. o To lead smoothly into the fact-finding or need discovery phase of the
interview.
FIRST IMPRESSIONSo Four minutes is the average time that the prospects takes to decide
about you o Not all buyers act upon their first impressions o Weaknesses of first impressions 1. Tend to be based on emotions 2. All behavior traits do not show up in first impressions 3. Behavior may be deliberately controlled by either party during initial
contact.
4. Antecedent states may influence either party's current behavior
There's No Second Chance To Make a Good First Impression
Visual FactorsOrganization,
Professional Habitso Some details about you are a
distraction : Car, Grooming, …
o Watch your body language o Watch what you wear o Don't advertise political,
religious or group affiliations that may evoke a response
o Be Prompt o Have a clear agenda o State the purpose of your call right
away o Be prepared with pre approach
information
Building Rapport Actionso Pronounce the name correctly o Use compliments carefully o Respect personal space o Look for common ground
Shake Hands Keep eye contact Warm greeting
Don't smoke, chew gum, etc
AttitudeEnthusiasm, Enthusiasm
SURFACE LANGUAGE
IncludesAll Aspects
of Appearance
o grooming o clothing o accessories o posture
o Affects first impressions
o even though they may actually provide limited or shallow insight into the true person.
Dress the Part
We all wear a uniform.
o Dress Conservatively o Dress Attractively o Choose Accessories
Carefully o Dress Appropriately o Give Attention to
Grooming
Projecting an Image
o Get the prospect to take you seriously
o Work with your physical characteristics
Some Style Tips o Clothing should be professional and
understated o Neutral colors like blue, taupe and gray o Wear suits to meetings. Jackets give the
appearance of power. o Blue is the most powerful color o Keep your shoes shined o Match socks to clothing o Keep accessories simple o Take dress cues from the highest person in
the company o Dress appropriately for your business
Basic Dress Guidelines for Men and WomenMen Women
o Suits are still appropriate. o More casual looks include wool pants
or quality cotton slacks. o A dress shirt and tie, a nice sweater, or
a blazer
o One staple is a sheath dress that can be worn alone or with a blazer.
o More casual looks include sweater sets and tailored pants
THE PROPER GREETING
Choice of Greeting
o The Rule of Ten - the first 10 words should include a form of thanks
o Watch out for cliches
o plan ahead o kept quite
simple.
o Failure to prepare in advance could lead to stammering or faltering speech, either of which creates a negative impression.
o You must be ready to alter the prepared approach if the situation demands it
The Handshake
J.T. Auer’s Nine Categories of handshake
Name Characteristics Tips
Flabby Limp, Soft Pawo Pessimistic o need reassurance
The Squeeze Squeeze like a vice
o Usually men o want to show strength
and power o Possible inferiority
complex o Meet needs with flattery
“Next To Body”
Arm and elbow are bent and right hand stays close to the side
o Favored by politicians and others who are hesitant to take risks
o Use caution
Impelling Hand is thrusted forward and pumped vigorously
o They seem insecure o Use more insistence
NongrippingHand is thrust forward. Fingers do not move.
o Don’t want involvement o Approach slowly
Robot Quick and automatic
o Indifferent and self interested
o Show that you are indispensable to their needs
Jackhammer Handpumpingo Lots of will power o Tend to be inflexible o Be determined with them
Prison Hold your hand and won’t give it back.
o Opportunists
o Emphasize how fortunate you are to meet
Normal Open and honest Trust your instincts
Handshake helps determine personality style
Driver firm may turn hand over yours
Amiable may not make eye contact
o The handshake is one of the first nonverbal signals you receive.
o Be sure to make use of it to learn how to deal with a particular prospect.
Rules for An effective handshake
o 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 Hands should meet equidistant
So how o As you approach someone, when you are about three feet away, extend your right arm out at a slight
can you make your
handshake more
memorable?
angle across chest, with your thumb 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 Pump the other person’s hand two to three times, and let go.
Fouropportunities
to shake hands
1) When you are introduced to someone and when you say good-bye
2) When a client, customer or any visitor from the outside enters your office
3) When you run into someone you haven’t seen in a long time
4) When you enter a meeting and are introduced to participants
o International protocol dictates Shake hands with everyone in a room Omissions are noticed, and are considered a
rejection. o Women should initiate handshakes, and
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 typical
American handshakes. o Latin Americans also tend to use a lighter, lingering handshake. o In all cases don’t pull your hand away too soon
such a gesture will be interpreted as a rejection.
Other Suggestions For GreetingsUse of the Prospect’s Name, “The sweetest and
most important sound in any language.”First Name?
oro Based on Relative ages o Prevailing custom
Formal Name?
o Type of product or industry
o Your conclusions about behavioral
style
Remembering the Buyer’s Name
Small Talk?or
Get Down to Business?
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.
Suit the Approach
to the Person
You must first estimate the personality style. Computer Use in the Approach
Gaining Attention
Capturing Interest
Appeal to the senses Introduce of a benefit
Ten Questions
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 OBJECTIVESObjectives of a “statement” or
“demonstration” approacho To capture the attention of the prospect. o To stimulate the prospect’s interest.
o To provide a transition into the sales presentation. Objectives in opening with questions
o To uncover the needs or problems important to the prospect.
o To determine if the prospect wishes to fulfill these needs or solve these problems.
o To have the prospect tell you about these needs or problems, and the intention to do something about them.
TYPES OF APPROACHES Self Introduction
Approach
o Addresses the prospect by name o States your name and company o Presents your business card.
ConsumerBenefit Approach
o Gives the prospect a reason for listening o Suggests a risk for failure to listen.
CuriosityApproach
o You should know something about the prospect o Ask questions whose answers will respond
favorably to your product/service.
Question Approach
o Quickly establishes two-way communication. o Enables you to investigate the prospect’s needs
and apply the benefits of your product or service to those expressed needs.
ComplimentApproach
o Signals your sincere interest in the prospect.
ReferralApproach
o Helps the salesperson establish leverage by borrowing the influence of someone the prospect trusts and –respects.
ShockApproach
o presents a shocking statement of what could possibly happen if the prospect does not buy your product.
ProductApproach
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, picture, …) : This serves to help the prospect focus and hold attention on your product
ShowmanshipApproach
o doing something unusual to capture the prospect’s attention (example, dropping a “new, unbreakable china” platter to demonstrate durability).
CuriosityApproach
o make the prospect curious about your product.
OpinionApproach
o ask the prospect for his opinion on your products.
PremiumApproach
o giving the prospect a sample of your product or a small gift.
Using Questions Results in Sales Success
Ask Questions too Obtain information from prospect. o Develop two-way communication.
o Increase prospect participation. Direct
QuestionRequires a short answer – usually “yes” or “no”.
NondirectiveQuestion
Open end questionswho – what - where - when - how - why.
RephrasingQuestion
Allows the salesperson to better clarify what the prospect means.
Are you saying that ….......?”
RedirectQuestion
o Redirect prospect to points of agreement.
o Often used as a backup opening statement
We agree that having a supplier that can reduce your costs is vital. Don’t we?
Three Rules for Using Questions
o Use only those questions to which you can anticipate the answer (those that won’t put you between a rock and a hard place).
o 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
After the interviewo The prospect should remember you in subjective terms. o Your goal in managing your overall appearance is to get the 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.
Chapter 10Chapter 10Asking Questions and Listening – The SPINAsking Questions and Listening – The SPIN
The Purpose of Asking QuestionsThe Salesperson as a diagnostician
o Provides a roadmap for you to follow o Allows prospects to discover for themselves their
problems o Determine prospect’s buying criteria
o Salesperson as a diagnostician
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
Closing is directly linked to questions
Specific Planning for Asking Questionso 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 before beginning the actual
presentation of benefits
o Gear questions to the benefits of your product Asking questions in rapid-fire machine-gun fashion…
o 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
SELECTION OF TACTICS
Phrase Each Question so That it Has Only One Clearly Focused Purpose
o Questions are easily misunderstood
o Phrase each question to maximize the amount of information you receive
Avoid Technical Language that Might Confuse the Prospect o Terms Unique to Your Industry,
Company, or Product That
Ask Questions That Help to Reveal the Behavioral Style of the Prospect
o Amiables and analyticals take longer to respond. Be patient.
o Drivers are task oriented. Show them that they can win
o Expressives show personal orientation. Testimonials and showmanship.
The Spino Neal Rackham – A British research psychologist developed the
“SPIN” selling system. o A precisely defined sequence of four question types o Enables the conversation to logically move from
exploring the customers’ needs to designing solutions To uncover Implied Needs and develop them into Explicit Needs that You, the salesperson, can resolve.
o The SPIN incorporates all of the concepts in this chapter o SPIN is a registered trademark of Huthwaite, Inc., and has been
developed into a learning/seminar program by Hodgden Consulting Services.
Some Links at the Huthwaite SiteWhy Hospital Sales can be elusive What makes a high performer?
Understanding how customers buy A New SPIN on Sales
Improve Your Negotiation Skills - Just take the tablet
Are your presentations sales winners or sales killers?
Think global. Act local. Are your people negotiating or concession making?
Exploring the no-grow situation. Huthwaite International Shares 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 Huthwaite
Xerox Norway takes SPIN® full circle
Creating a customer- focused sales culture
A radical company restructure required big changes in behaviour at ...
Tata Telecom achieve leadership position
Sun Microsystems - a total solutions approach
Coaching for success at Nutricia Hill-Rom develops its own internal SPIN training capability
Executive Network reaps a ten-fold return on their training
Why coaching is not happening (and how it can) Overview - Effective
Maximising marketing messages Overview - SPIN marketing
Skills and strategies for sales performance improvement
MADKAM Overview - Major account development and Key account management
Creating major sales Overview - SPIN selling
Complex relational selling Overview - Account strategy for major sales
The make or break skills Overview - Effective sales proposals and ...
Insight into the changing role of the procurement professional
Developing customer needs, the key to increasing sales revenue and ...
S
Situation Questions
o Data-gathering questions.
o Uncover facts and background
information
Examples: "Would you describe your current
account documentation system?"
o When overused, these questions bore the customer. o clarify the customer's current situation o Be sure each question is necessary o Can be overused (often are by inexperienced salespeople) o Don't ask a question to get information that you should have obtained
before the call.
Individualo What is your position? o How long have you been here? o What do you see as your objectives in this
area?
Companyo What sort of business do you run? o Is it growing or shrinking? o What is your annual sales volume? o How many people do you employ?
Business
o What equipment do you use at present? o How long have you had it? o Is it purchased or leased?
o How many people use it?
P Problem Questions
o Here you help prospects define their needs explicitly
Example:"So you're having trouble retrieving account-sensitive 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
Implication Que
Get the prospect to discuss the problem and how it might be improved
stions
Example:"What kind of closing opportunities do you
think your people have missed because of the data-retrieval problem?"
The customer's problems have
o effects o consequences o implications
o 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 right? What does this turnover mean in terms of training cost? Could that lead to increased cost? Could that lead to customer service problems?
Will it slow down your growth?
NNeed-Payoff Questions
Help to build up the value of your proposed solution in the customer’s mind
Need-Payoff Questions
Are linked to success in more complex sales. Can be especially useful when you're talking to top decision makers (or
those who will influence them) Increase the likelihood that your solution will provide the 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.................?
TRANSITION FROM APPROACHComponents of agood transitionoften called a
"bridge"
o Tell the prospect what you intend to do o Provide a logical agenda o Tell the prospect what you are doing
Aim toward the bridge
with yourquestions by
o Planning questions in a logical sequence o Predict all possible answers
o Prepare a smooth transition from each possible answer
o 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?
Specific Questioning Techniques
Closed End QuestionsStructured alternativesMultiple choice
o Uncovering specific facts o Reducing tension because they are easy
to answer o Maintain control by directing flow of
conversation o Bind prospect commitment to a specific
position
Open End QuestionsIdentify a topic butdo not provide structured alternatives.
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 o Helps uncover the dominant buying
motive
o Uncovers the personality of the buyer.
Classification of Questioning Techniques
Amplification Questions:
Double-CheckQuestion
restate or rephrase the prospect's remarks.
Tells the prospect o That you have been listening o That you understand their concerns o That what they say is important to you
o That they are making themselves clear
Non verbalGestures
o Nod head o lean forward o raise eyebrows
o inject words or phrases to keep the prospect talking
Use of Silence
o Tells the prospect that you don't quite understand
o Allows you to relax the pace o Lets you formulate your next question
o Don't abuse or you'll make the prospect uncomfortable
Continuation Questions
o They simply encourage more communication from the prospect
o Use a few words or phrases to keep the prospect talking
Advantages of Using Amplification Questions
o Checks for mutual understanding o Allows the salesperson to rephrase what the prospect appears to have
intended o Invites the prospect to expand or clarify any point of disagreement
o Narrows down generalizations and clears ambiguities
Classification of Questioning Techniques
Internal Summary(reflective) Questions
o Repeat or rephrase part of the prospect's last response
o Gets prospect to see things from your perspective
o Can underscore an important point.
Getting Agreementon the Problem
o Formally state the problem
o Confirm with the prospect
BENEFITS OF ASKING QUESTIONSBefore the
presentation
o Agree that a need or problem exists
o Agree to explore your proposal
The goal offact finding questions
o 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 o Determines the prospect's dominant buying
motive
o Strengthens your relationship
LISTENINGo Faulty listening results in
misunderstandings
o Effective listening includes
Hearing Interpreting
o Hear and receive the message o Listen actively
Think as you listen Maintain eye contact Put aside other activities
o Receive message openly
o Process and assinn meaning to the message
o Detect central meaning Interest Need Rejection o Verify your interpretation o Get Common
understanding
Assessing Responding
o Review Emotions o Evaluate content, not delivery o Be objective o Reserve judgement until
message is complete
o Clarify your expectations o Review priorities o Review resources that apply o Decide on a response o Negotiate if necessary
o Achieve understanding and commitment
Improving Listening Skills
Capitalize onSpeed of
Thought
We can speak at 125 - 150 words per minute
We can hear at 600 words per minute
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
AnnoyingListening
Habits to avoid
Disagreeing or interrupting
Invasion of personal space
Doodling, wandering eyes
Overdoing acknowledgements
Showing off personal knowledge
Having to top everything
Listening Habits
to Develop
Be Patient
Take Notes
Avoid Prejudgment
Reinforce strategically
Manipulationinfluencing 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 11PREPARING FOR AN
EFFECTIVE
PRESENTATION Call Objective
Each interview should have a specific objective
The Call Objectiveis dictated by
o How much information about the prospect is available
o The type of product or service you are selling o Other factors unique to your own business
and that of the prospect.
Initial call o Establish rapport and gather information
Survey call o meet decision makers o uncover buying motives
Proposal callo Presentation o Handle objections o Trial close
Closing call o Get the order
Calling on Regular Customers
o Try to provide new money making ideas
o Don't give the same presentation over and over
Sales Call Planning Sheet
NameType of companyAddressNames of individualsBuyer background and profileMajor competitorsSales call objectiveBest timesNeeds analysis
Presentation strategies
o Fact finding questions o Features and benefits to
stress o Objections anticipated o Objection handling
techniques
o Closing techniques Sales tools to takeResults
Style of the PresentationMemorized Presentation
AdvantagesQuick Productivity Beneficial during initial learning periods
Reliable Information Ensures the right information gets to the prospectProved
EffectivenessPresentations are typically tested and refined
Confidence Building Knowing the presentation works for other
Designed by Experts
Buyer or sellershould still be able to
o Ask and answer questions o Explore options
o Seek creative solutions o Practice it o Polish the delivery until it becomes natural. o Internalize to the point that it is a normal, personal message. o Once memorized, it comes from your heart and mind. o The memorized presentation is a guide to lead buyer and seller
through the sales process.
The Outline Presentation
o Seller prepares an outline of the presentation in written form.
o Useful when the product or service requires extensive research into customer needs
o You must have developed several "units of conviction" worksheets
o The call is still structured
Any written outline or plano Reveals need for any additional
information, o Makes it possible to check
needs and goals against suggested solutions,
o Makes sure that you have a clear picture of the entire situation before arriving for the interview.
The Extemporaneous Presentation
Only recommended for the most experienced sellers
o Takes a tremendous amount of a. Product knowledge
b. Selling skills and experience
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 To sell your product to your customer.
Provideknowledge via
o Features o Advantages o Benefits of your
o Product o Marketing plan o Business proposal.
Other Goals
o Allow buyer to develop positive personal attitudes toward your product.
o Attitudes result in desire (or need). o Convert need into want and into the belief that your product can fulfill a certain need.
Convince the buyer that
o your product is best
o you are the best source from which to buy.
Three Essential
Steps Within The
Presentation
Fully Discuss Your Product
Features Advantages Benefits
Present Your Marketing Plan.
Explain Your Business Proposition (value/cost comparison). o Don't worry about making the perfect
presentation. o It's more important that you truly believe in your
product.
Facts About Presentations
o Sellers typically presents 6-8 features or benefits in a presentation
o Prospect remembers only one o 39% of the prospects remember that one thing
incorrectly
o 49% percent remember something that was not even mentioned
Strive for Passion, Not
Perfection
Allow buyer to develop positive personal attitudes toward your product.
Attitudes result in desire (or
need).
Convert need into want and into the belief that your product can fulfill a certain need.
THE SALES PRESENTATION TOOLBOX
Persuasive Communication
Seven factors that help you to be a better communicator:
1. Using questions. 2. Being empathetic. 3. Keeping the message simple. 4. Creating mutual trust. 5. Listening. 6. Having a positive attitude and enthusiasm.
7. Being believable.
Construct logical reasoning based on: o Major premise. o Minor premise. o Conclusion. o Make the
presentation fun. o Personalize your
relationship. o Build trust. o Use body language. o Control the
presentation.
o Use the Paul Harvey dialogue.
Suggestions to Aid Persuasion
Suggestivepropositions
o suggest the prospect should act now.
Prestigesuggestions
o name the famous or respected people or companies that use your product.
Autosuggestion o attempt to have the buyer sell himself by imagining himself using the product.
Directsuggestion
o suggest that the prospect buy your product
Indirectsuggestion
o make it seem as if the purchase of your product is the buyer's idea.
Countersuggestion
o Gets the buyer to express why he or she needs the product
o Will probably also compel him or her to defend his purchase decision.
Make Your Statements VisualSimile 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.
ProofStatements
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
Independentresearchresults
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 VisualPresentation
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
Driver Expressive Planning Planning
o Short term results o Your product should show
immediate benefits
o Discover their goals and plans at the preapproach
o Concentrate on your offering's exclusive aspects
o Stress their personal and company
benefits Presenting Presenting
o Personal relationship is not important.
o Don't spend too much time on the relationship
o Move quickly to a substantial benefit with a payback
o Be brief stress the bottom line o Get them involved. Let them
lead o Drivers test your mettle.
o They are visionaries, dreamers o Open with innovative suggestions
for them to grow o Learn and relate to their "game
plan" Lots of questions o Discuss ideas and concepts with
respect o Use some showmanship o Don't get into arguments o Ask if they want you to respond to
Prepare for a debate. o Answer objections. Don't bluff o Present alternatives. Let the
prospect choose o Use an action close.
their "blue sky" comments. o Testimonials are important o Let them see how it fits into their
plan.
Analytical Amiable
Planning Planning o Structured. They study
everything o Know their business
thoroughly o Use facts o Prepare several alternatives
o They want to know you. o They need your enthusiasm o Approach with lots of personal
information o Bring testimonials, case studies and
third party references o Develop a personal relation ship
with the prospect
Presenting Presentingo Data oriented o Structured approach o Low key, logic based o Be sure that they understand
your structure o Emphasize test proven
benefits o Visual aides, charts and
graphs. "Leave behinds" o Don’t exaggerate or act
flamboyantly o Point out positives and
negatives of your offering o Use a detailed summary as a
close.
o Convince of your sincerity. o They have a hard time saying yes. o Don't sound "canned." o Make it look real informal but well
organized o Empathize. Reflect their feelings o Spend time on the relationship
during the presentation o Be open and candid o Use an interesting, entertaining
style
o Assume the sale and move to the next step.
Demonstration A well planned demonstration
will
o Catch the buyer's interest o Fortify your points o Help the prospect understand o Keep you interested and enthusiastic o Cut down on the number of objections o Help you close o Get the prospect "involved"
Planning aDemonstration
o Concentrate the Prospect’s Attention on You o Demonstrate Your Interest in the Prospect -
start off by handing them something o Demonstrate Benefits not features
GettingParticipation
in ademonstration
o Let the prospect do something simple. o Let the prospect work an important feature. o Let the prospect do what he would frequently
do. o Ask the prospect questions throughout the
demonstration.
SalesDemonstration
Checklist.
o Is the demonstration needed and appropriate?
o Have I developed a specific demonstration objective?
o Have I properly planned and organized the demonstration?
o Have I rehearsed to the point that the demonstration flows smoothly and appears to be natural?
o What is the probability the demonstration will go as planned?
o What is the probability the demonstration will backfire?
o Does my demonstration present my product in an ethical and professional manner?
The salesperson's
curse
o "You know your product better than you know how your client's business can use it."
o You must determine what kind of buying decision to recommend to the prospect
Units of ConvictionConcise, carefully prepared "mini presentations"
o Building blocks in constructing the information you present. o Prepared ahead of time o Practiced until you are comfortable o Add them to your store of available options for later use. o Become a permanent part of your selling arsenal. o Learn how to personalize units of conviction
o Recall them in the best order for helping the prospect see them clearly Each unit or mini presentation consists of
five elementsFeature
Benefit
Buying motive associated with this benefit
Evidence or proof statements
Nail down or trial close
Buying Motives To Associate With A Benefit
o Quality o Convenience o Cost saving o Status
o Security Features Benefits
The components of your product or service
They are the same no matter who
uses the product or service.
o Benefits are the value to the customer
o Translating features into benefits is one of your most important skills
o Transitional phrases connect features to benefits
Because .. This lets you … That means … What this gives you …
Feature benefit worksheet - exhibit 11.5o You need to develop a general sheet
o A specific sheet for each customer
The Nail Down or Trial Close
o A yes/no question that confirms that the prospect agrees that the benefit is applicable
o If the prospect says no then go back over this benefit
o This gives you feedback and builds
commitment
Nail Down or Trial close should always
be made o After making a feature - benefit
sequence o After the presentation. o After answering an objection.
o 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?
Don't you agree?Don't we?
Shouldn't it?Wouldn't it?
Hasn't he?Hasn't she?
Isn't it?Isn't that right?
Didn't it?
Haven't they?Wasn't it?
Won't they?Won't you?
Standard Nail DownPut the nail down at the
endExample:
"After seeing this feature you can really see the benefit. Can't you?"
Inverted Nail DownPut the nail down at the
beginning.Example:"Can't you see the benefit of this feature?"
Internal Nail DownEmbed in the middle of
the sentence.Example:"After seeing this feature, can't you see the benefit?"
Tag on Nail DownWhen the customer says something positive, reinforce with a nail down.
Example:Customer: "I can see the benefit of that feature."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)
Company prepared
organizers
o Built around benefits o Fosters 2 way communication o Leads to the close o Gets the whole story out in less
time o Keeps the presentation on track
Supplements that you should
add
o Personal letters of reference o Business cards of clients o Pictures of clients using the
product o Pictures of finished installations
Other Audiovisual Aids
The most popular
Audiovisual Aids
o Computers o Videos o Slides o Presentation software use is
growing
Guidelines for Using Visual
Aids, Dramatics, Demonstrations.
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. o Encourage prospect participation.
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 situationsThe Setting o Their office - Your office - Restaurant :
for the Sales
Interview
o Less interruptions
Your prospect is obligated to listen Non threatening atmosphere
Less stressful
Interruptions
o Wait until prospect's attention is completely back to you. o Restate selling points that were of interest to the
prospect. o Invite participation. o Make sure interest has been regained, then proceed.
Phone Callso Offer to leave the room if the prospect must take a call
o Turn off or silence your cell phone or pager.
TEAM SELLING
Benefits ofTeam Selling
o Customer gets involved with more than one person o More accurate need definition o Very useful of product is technical o Different individuals bring more selling skills
Risks ofTeam Selling
o Requires special planning o Must have a leader o Must agree on objectives o Must be better rehearsed
The Roles of Each Team
Member
o Leader
o Coordinates the effort o Monitors presentation o Shows leadership, maturity and
responsibility o Must know the product, company policies
and markets o Tech advisor, Finance advisor, Etc …
Combinationsthat Work
(There are a lot more than whatis in the book.)
o Salesperson and barrister (attorney) o Good guy. Bad guy
a.Makes salesperson more careful b. Impresses the importance off the meeting
o Opener and closer
NEGOTIATION AND THE CONSULTATIVE SALES CYCLE FRAMEWORK
Negotiation in Selling The Planning
Phaseo Trying to reach an agreement o Use a win-win approach o Negotiation takes place throughout
each phase of the selling process.
o Predict problems ahead of time o Talk to others that have worked
with the prospect
Approach and Need Discovery Phase
Presentation, Objections, and
Commitment Phase
o 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
o The "nail down" or trail close helps you confirm that needs
are being met
PRINCIPLES OF NEGOTIATIONNegotiating Tactics
Probing Questionso even after need discovery. o Many objections are a request for
information
Restatement of what the prospect has said
o Shows that you are listening
o Gives you time to think
Trial Balloons o a "what if" question that assumes that the prospect has made the decision
Tactics that Might Be Used Against You
Nibbling o request for additional freebies after the agreement has been made
Hot Potato o "Limited budget" o Test the validity of the budget
Higher Authority o Talk it over with the "boss" o You did not qualify this prospect
Bad Guy, Good Guy
Flinching o physically grimacing when price is mentioned
Red Herringor Decoy
o prospect says something is not negotiable when in fact it is
o Avoid through needs discovery and active listening
Special Situations
Ultimatumso Set it aside for now.
o It might not be all that important.
Trade-Offs o Don't give away anything without getting something
Deadlocks o Get help
CHAPTER 12 HANDLING
OBJECTIONS
Negotiation and the Relationship Sales Cycleo Trying to reach an agreement based on mutual interest o Use a win-win approach o Negotiation takes place throughout each step or stage of the
selling process
ATTITUDE TOWARD OBJECTIONSObjection An objection is anything the prospect says or does
that is an obstacle to smooth closing.
WELCOME OBJECTIONS!
o Learn to Accept Objections as a Challenge Which, When Handled Correctly, Will benefit you and Your Prospect.
o If You Fear Objections You Will Fumble Your Response Often Causing You to Fail.
o Prospects that buy have 58% more objections.
WHY PROSPECTS OBJECT
Psychologicalreasons
o Dislike decision making o Prefer old habits o Reluctance to give up
something old for something new
o Unpleasant past associations with you or your company
o Resistance to domination
o Perceived threat to self image
LogicalReasons
o All or part of the presentation was misunderstood
o Prospect is not convinced
o Hidden reason (stall)
Question: WHEN DO PROSPECTS OBJECT?
Answer:Any Time During Your Sales Call - From introduction to close.
TYPES OF OBJECTIONSStopper Objection - no solution can be found
NoNeed
o This is widely used because it gets rid of the salesperson. o It is tricky because it also includes a hidden objection
and/or a stall.
NoMoney
o Encompasses several forms of economic excuses o It is simple for the buyer to say.
When buyer asks for the price
Say that it is risky to discuss the product's price until it can be compared to the product's benefits.
----OR----Quote the price and go right on selling.
Once you convey the benefits, price becomes a secondary factor which usually can be dealt with successfully.
The o Used to determine if a prospect is or is
Price / Value Formula.
not convinced the price is too high. o Price/value = cost
Costcomparison of what is received to money paid.
Valuewhat the prospect sees the product doing for them.
NoAuthority
o Usually a stall o Screen for decision
making authority early
o You must determine if the statement is truth or it is a smoke screen designed to get rid of you.
o One of the toughest stalls to overcome arises when selling a new consumer product.
Searcher Objection - A Valid Request for Informationo "I am not interested" o "I don't have any money for this" o "We are satisfied with what we have now" o "I really like the competitor's product"
Searcher Objection - A Valid Condition of Saleo Sometimes prospects may raise an objection that turns into a
condition of the sale. o "I don't like the color, size, etc" o "I need it by a next week"
Invalid Objections
Hidden objection
o Prospect who asks trivial, unimportant questions o Prospect conceals feelings beneath a veil of silence. o The salesperson must ask questions and carefully
listen in order to smoke out the prospect's real objection.
Stall"Put Off"
o "I'll think it over..."`
o "I'll be ready to buy on your next visit"
8 Objections from justsell.com1 lack of perceived value in the product or service
2 lack of perceived urgency in purchasing the offering
3 perception of an inferiority to a competitive offering
4 internal political issue between parties/ departments
5 lack of funds to purchase the offering
6 personal issue with the decision maker(s)
7 corporate initiative with an external party
8 "it's safer to do nothing" perception
Classify the ObjectionSix Basic
Categoriesof Objections
Product objection Objection to the salesperson Objection to the your company Don't want to make a decision Service objection Price objection
OtherClassifications
Major or minor objection. Practical or psychological objection. Practical (overt). Psychological (hidden).
Some General Tips for Handling ObjectionsKeep 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!
The prospectmust agree
that
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 price and terms are fair
Strategies for Deciding when to Answer ObjectionsAnticipate
and Forestall Objections
o incorporate objections & answers in the presentation o be certain that the objection will arise o Prevents a confrontation and communicates
objectivity
Postponethe
Answer
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 Write it down
Answer Immediately
Postponement of objections
may result in:
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 The appearance that you are not sympathetic
Do Not Answeran Excuse
o Serious objection will be repeated o Not answering suggests that the excuse is not truly
relevant
DisagreeWithout
BeingDisagreeable
o Selling should be win-win o Don't try to show up the prospect
o Challenge ideas without offending Remove blame by prefacing answer.
"I have not made myself clear......"
Make a concession before taking exception:
"You raise an excellent point….."
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 Hear the Prospect Out
Confirm Your Understanding
of the Objection
o Validate the Problem o Clarify and Classify o Use confirmation questions o Ask if there is anything else
o Try to distinguish between genuine objections and excuses
Acknowledge their Point of View
o That is a logical question o Restate or rephrase in your own words o Use words such as, “I understand how you
feel” , “I see where you are coming from”, …o Prepare the prospect for your answer
o Select a specific
technique
o
BASE YOUR DECISION ON:
o The prospect's behavioral style o Phase of the interview o The prospect's mood o The number of times that this objection
came up
o The type of objection
Answer the objection
o Confirm with the buyer that you have answered the objection
Attempt to Close o Continue the Presentation If You do Not Succeed
Specific Techniques for Handling Objections
Answers Based on Concrete Evidence
Product comparison:
o compare advantages and disadvantages
o 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
case history or testimonial
o Describe the experience of a customer whose situation is similar to that of the prospect
Demonstration
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.
Guarantees or warranty
o Removes resistance by reassuring that the purchase will not result in a loss.
o Guarantees must be meaningful
provide for recourse on the part of the customer
cost of delaying
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 TechniquesFeelFelt
FoundLet a Third
o Answer it by referring to a third party and using that experience as your "proof or testimony".
o If the source is reliable or reputable this can be especially successful with the expert or skeptical prospect.
I understand how you feel
Party Answer.Your friend, Hugh Jass, felt the same wayHere is what he found.
Compensationor
Counterbalance
o Admit the objection is valid o Describe some counterbalancing benefit
Ask "Why?" o Answer with a question o Rephrase the objection
DirectDenial
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.
IndirectDenial
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 Give the facts that answer the objection
Boomerangturn the
objection into a benefit
o Prospect: "I don't like the size"
o Seller: "The size is exactly the reason you should buy it!"
Trial offer
o A trial offer lets prospect try product without obligation to buy.
o 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 meaning of a price objection
o The prospect places insufficient value on the product
o A competitive product is a better deal
o The prospect just wants to bargain
YOUR PRICE IS TOO HIGH YOUR PRICE IS TOO HIGH!
o Learn to respond to this objection. o It is inevitable. o Buyers will object just to get a discount. o Knowledgeable buyers know that there is often a standard discount for
which they qualify o Price objections are an opportunity to sell the value of the product or
service. o The danger is to respond to the wrong price objection.
o "Tell me more" or "Explain"
Six fundamental price perspectives:
Price versuscompetition
o Discover the differences between the competitor's proposal and your proposal.
o The price is lower because the product or service is less robust. A time related "special offer."
Price versusapproved budget
o Was it a budget, or an expectation o Was it based on old or unreliable data?
Price versusbuyer expectations
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 The buyer can then accept the higher
price for the original solution.
Price versusa process alternative
o Your price is being compared to a process alternative.
o Buying software may be compared to manual methods.
o There are often new benefits that are impossible with the manual method
Price versus a percentage of the
product price (for continuing services)
o Maintenance or support costs can be greater than the original cost.
o 20 years ago hardware and software was more expensive than support.
o Today hadware and software costs are low. Labor for support is high.
o Support may be more comprehensive than in the past.
o Understand and communicate these changes to the prospect
Price versus"do-it-yourself"
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.
"Do it yourself" places less value on your time
VALUE ANALYSIS: Determines the Best Product for the Money.
o Comparison of your product's features, advantages, and benefits to those of the product presently in use.
o Comparison of long range costs and savings. o Evaluation of the buyer's present product - does it perform better
than is required? o Determine if the buyer would benefit more from a higher-priced,
better performing product.
Types of Value Analysis
True Value
o Compare product costs to true value. o Establish the value of the product first so the buyer
can intelligently compare the true worth of the product to its true monetary cost.
Reduce to the ridiculous
o Unit costs break price down o Use the Lowest Common Denominator o Know basic quantities
Returnon
investment
o Return-on-investment refers to an additional sum of money expected from an investment over and above the original investment.
o Emphasize the percentage return that can be earned by purchasing your product.
When Dealing with Price Resistance
DO
o Add value with a cluster of satisfactions. o Point out the relationship between price and quality. o Explain the difference between price and cost. o Employ the Presumption of Exclusivity Stress your product's exclusive features Identify extras that only come from you Sell quality, exclusivity and differential features o 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
DON'T
o Apologize for the price. o Make price the focal point of your sales
presentation.
o Become demanding, defensive or hostile
Five Question Sequence Method of Overcoming
ObjectionsQ1 "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?"
YESAsk what it is and
Go To Q2
NO Go To
Q3
Q3 "Just supposing, M. Buyer, you could... then you'd want to go ahead?"
YESGo forward to discuss this
NO Go To Q4
Q4 "Then there must be some other reason. May I ask what it is?"
Answer GO TO Q2No Answer GO TO Q5
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 Negotiatoro Patience o Endurance o Stamina
o Willingness to continue o Risktaker o Tolerate ambiguity
Negotiating Skillso Allow time for planning o Collect all available
information o Negotiate internally first o Be flexible o Don’t give concessions too
early
o 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 Always follow through
Buyer's Overt Concernso Do we really need this product
or service? o What will the savings be for
the company?
o Are there alternatives? o Do we have sufficient budget?
Buyer's Covert Concernso Will I be at risk? o Will this reflect positively on
me?
o Will this solidify my position? o Will this mean more work for me? o Do potential gains outweigh risks?
Ten Booby Trapso Sneak attacks o Fatal assumptions o Misguided missiles o Killer impatience o Bad intentions
o Blind faith o Mental blocks o Price paralysis o Unwise ultimatums o Misplaced emotions
Remember o Prepare! o Probe!
o Propose!
CHAPTER 13CLOSE
Be A WinnerW i n n e r s L o s e r s
Part of the Solution Part of the problem
"It may be difficult but it's possible" "It may be possible but its too difficult"
Finds an answer for every problem Finds a problem with every answer
"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?
Closing
o 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 A question or action designed to elicit a buying decision
Attempt to Closethe Sale When
o The Prospect is Ready.
o The prospect is in the "conviction stage" of the mental buying process.
Computersand Closing
o Can make closing quicker o Can quickly calculate complex prices
o Can fax or e-mail multiple parties
Perspectives on Closingo 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 Failure to close comes from an inadequate performance in other areas
Abraham Lincoln's Record1832 Defeated in the race for the legislature
1833 Failed in business
1834 Elected to legislature
1835 Sweetheart died
1836 Suffered a nervous breakdown
1838 Defeated for speaker in the legislature
1843 Defeated for nomination to Congress
1846 Elected to Congress
1848 Lost renomination
1849 Rejected for job as land officer
1854 Defeated for Senate
1856 Defeated for nomination for vice-president
1858 Defeated for Senate
1860 Elected sixteenth president of the United States
Function of the Close
The Need
For a Close
The Moment of Decision is difficult for
most people
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
Reassureand
Close
- 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
TheSalesperson's
Attitude
- Believe in what you sell
- Assume commitment - Confidence is contagious
- Understand that rejection is not personal
Your attitude will communicate
Your sincerity Your interest in the buyer Your belief in your product and company Your overall success
Persistence
- 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
Don't Stop
at the
First "NO."
48% Quit after the 1st contact
73% Quit after the 2nd contact
85% Quit after the 3rd contact
90% Quit after the 4th contact
10% Get 80% of the business
Dealing with Rejection
- Count your successes. - The number of failures doesn't count - Failure to close a sale does not make you inferior - Look at closing averages
Six
Useful
Tactics
Remind yourself that self worth is different from performance Positive self talk Don't assume that you are the problem Do more prospecting. Work a fresh lead. Expect rejection but don't create it
The buyer may have rational reasons for not buying that they do not tell you
Barriers to Closing
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 Self-confidence
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 SignalsThe CHEF Technique
C Cheek or Chin o Stroking cheek or chin means satisfaction o Leaning forward and nodding
H Handso Open and Relaxed. o Plams Upward o Rubbing Hands means assumed ownership
E Eye Contacto Constant contact is good o Dilated eyes mean relaxation o Rolling or squinting means confusion or ire
F Friendliness
o Smiling o Relaxed
o Casual conversation
Some verbal and non verbal buying signals
Resistance o objections mean interest
VerbalSignals
o How much is it? o How soon can I get it? o Sounds good. o What's the next step?
Gestures
o Nodding head o Leaning forward o Rubbing chin o Tugging ear o Reexamines product, sample or paperwork o Relaxes and become friendly.
Other
o Stopping just short of buying o Asking about price means they are sold on
benefits o Reinforcing or agreeing with your ideas
o Asks another person's opinion.
Types of ClosesThe Trial Close asks for an opinion not a decision
Assumptive Closes o Assume that you asked for the order o That the prospect said "Yes" o Proceed to the next step
Minor-Point Close
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...
Physical-Action Close
o Fill out the order o Wrap it up
Alternative-Choice Close
o An old favorite; it provides a choice between something and something, never between nothing and nothing.
o Example: "Which do you prefer?" or "Would you prefer A or B?"
Order-Blank Close o ask questions and write answers on the contract.
Continuous Yes o keep asking questions that are designed to be answered yes.
Similar Situation o Explain another customer's situation and lead into the close.
Direct Close: ask for the business
DirectAppealClose
o Has the advantage of clarity and simplicity.
o Ask for the order in a straightforward manner.
o Most direct closing approach and appeals to many buyers, especially decisive people.
o Should not come too early.
o Highly effective when salesperson has earned the customer's respect.
o 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 so you can get started?
o Would you like to try it for a quarter?
o It’ll take a few weeks to process and ship the order so if you’re interested in moving forward, we should start the paperwork now.
o Let’s get this off your plate and start the paperwork.
o What do you think? o Let’s start the process so
you can get onto your other priorities. Sound good?
o Would you like to move forward?
o Are you ready to get started?
o Can we go ahead? o We can start the process
today with a credit card if you’d like.
o We can deliver it to you by the close of business tomorrow if you’d like.
Summary ofBenefits Close
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 You can easily adapt Feature / benefit statements
for your "summary" close.
Impending-Eventor Standing Room Only Close
o indicate that if they do not act now they may not be able to buy in the future.
o It should only be used in complete honesty.
Special o Offers the buyer something extra for acting immediately, such as
ConcessionClose
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
o Use with care because some buyers are skeptical of concessions.
Call-Back Close o Have a reason to come back
o Review everything when you come back
Trial-Order Close o Puppy dog
Balance-Sheetor T - AccountCloses
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 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
Probability Close
o Ask prospects what the probability of doing business at a later time is.
o This permits prospects to focus in on and discover their own hidden objections.
Negotiating the single problem close.
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 Help customer weigh advantages of product by reviewing product's superior points
Limited ChoiceClose
o Provides prospects with choice as a way of qualifying.
o Allow customer to examine several different
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
o "Is there anything else beside price that is holding you back?"
o "If the price were better then could we do business right now?"
The prospect should make an offer
o "What did you have in mind?"
o "What can your budget spare?"
o Confirm the offero No matter what it
is. o Do not commit
yourself.
o "If I can get you that price then can we do business immediately?"
If the prospect responds
Noo "Then there must be something else. Can I ask
what it is? o Then handle that objection.
o Price may never come up again.
Yes
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
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 andcomplement
o "I can understand that."
o "I'd do the same thing myself?"
Start packing up "I am sure that you'll have some questions for me as you think it over, won't you?"
One last question.o "Just so that I'm prepared. o What are some of the specific things that you'll
be thinking about?
Two options now
Soft Hard
o Be quiet and let them talk.
o Handle any response as an objection.
o Start asking yes/no questions
Is it my company? Is it the color? Is it ..... o Go through all the
benefits
o Make the prospect realize that they are just stalling
Research shows six common closing mistakes1. Talks too much. Doesn't ask enough questions. 2. Over-controls the call; asks too many closed-end questions. 3. Doesn't respond to customer needs with benefits. 4. Doesn't recognize needs, gives benefits prematurely. 5. Doesn't recognize or handle negative attitudes effectively. 6. Makes weak closing statements, doesn't recognize when or how to
close.
After the Closeo Confirm the sale when the buyer says yes: o Be sure all details related to the purchase agreement are completed o Check everything with buyer o Ask for signature if necessary. o Reassure customer and confirm
Pointing out that s/he has made the correct decision Describe the satisfaction that will come with ownership of
product or service
o Thank customer for the order. o A follow-up thank-you letter is often appropriate. o Ask for referrals. o Provide after-sale service. o Leave Gracefully
o Don't talk past the close
When You Dont Make The Saleo Recognize hopeless selling situations
o Avoid doing or saying anything that will jeopardize the relationship
established
Act Professional Act Adult
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 customers. o Ask why you lost out - learn from your successes and
no-sales.
o Sometimes, it is proper to reopen the presentation
Prepare prospect for shopping the competition
o Do everything possible to help customer make an intelligent comparison.
o Review strong points of product, giving special emphasis to areas in which product has superior advantage over competition.
o Never treat the lost sale as a defeat. o Do not use selling methods that are unethical and/or illegal.
Analyze Lost Saleso A lost sale can be a learning experience. o Take a good, objective look at presentation and try to identify
weaknesses o Consider how to avoid this problem in the future. o Salvage as much as possible from the experience o Don't give up too soon.
o Callbacks are very common, especially in the field of industrial selling.
Discuss thelost sale with
o Your sales manager o Your fellow salespeople
o Other people who understand the selling and buying process.
Prepare for a possible returncall byrecording information.
o Personal information - family, hobbies, and so forth.
o Company information - if selling to an individual buyer, company information is quite valuable.
o Purchase priorities - every prospect has unique purchase priorities.
CHAPTER 14BUILDING RELATIONSHIPS
WITHTOTAL CUSTOMER SERVICE
THE NATURE AND PURPOSE OF TOTAL CUSTOMER SERVICE
Service is an Ongoing Activity
o 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
Service Quality Strategy
o Can be a strategy to acquire and maintain customers.
o Segment customers o Inform specific customers what to expect o Exceed expectations
o Must be a way of life
Moments of Trutho 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 SaleThe 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
Problem Prevention
o If complaints are intercepted and solved quickly then they don't become major problems
o Quick service can turn a lemon into lemonade
Staying Informed - frequent service calls
keep you up to date
o Personnel changes o Competitors activity o Upcoming structural changes in client
firm
Retaining Existing Customers
o More technical sales are lost through poor follow-up than anything else
o Average firm looses 20% of customer base per year
o Any reduction in that number greatly increases profits
Building Goodwill
o Service is the only way to justify a price differential
o Goodwill makes a repeat sale possible
WHEN AND HOW TO SERVICE Service as an Ongoing Activity
Selling is the courtship. Service is the marriage o You become part of the customers team o You establish a basis for a long term relationship o You make sure that customers get what they thought they were buying o You get new prospects
1. By referrals 2. By learning the customer's industry
o Think of each customer as your only account Gaining a new customer cost five times 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 o Only 4% of unhappy customers actually complain. Even some with
serious problems o Complainers are more likely to do business with you again o 50%-70% of complainers will give repeat business if the complaint is
resolved o 95% complainers will give repeat business if the complaint is resolved
quickly o Dissatisfied complainers will tell at least 9 or 10 people. 13% tell more
than 20 people 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 properly. o The personnel handling the equipment cannot operate it efficiently. o They are not getting replacement parts quick enough.
Phone Calls
o the phone is a great tool. o Gives personalized attention
quickly o Customer service hot lines
have proven themselves to be profitable
Problem Solving
o Coordination Within Salesperson’s Company
o Assistance With Training
SERVICE AT DIFFERENT LEVELS IN THE CHANNEL
Servicing Retailerso Keep customers informed of promotional programs o Supply display items o Help with displays and arrangements o Check inventory regularly o Train the customer's people
Servicing Intermediarieso Call on the distributor. o Call on the distributor's customers. o Train distributor's sales force.
Technology and Service Qualityo Service ability has been enhanced
o Electronically mediated sales conversations - two computers sharing
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 accordingly
Follow-Up at a specific time interval after each sale.
Mail - keep your name in front of themo Promotional material o New product information o Company newsletter o Newspaper articles o Letter with a reply card
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
o Something the seller does o Something the seller fails
to do o Something the company
does o Something the company
fails to do
o A question of service
List of excuses - "It's not my fault."o Competition too cheap o Competition unethical o Customer is too difficult o All customer cares about is price o I don't have time to follow up o I've been doing sales for ## years. It can't be me. o My company fails to back me up
delivery is late quality deteriorates I never lose a customer through any fault of mine
Ask the tough questionso Do I get mad at small orders? o Do I stay away too long between calls? o Do I keep customers informed? o Do I keep all my commitments? o Was our service ineffective?
o Can I help you in any way to get the account back?
Listen carefully and
politely
12 COMMANDMENTS OF TOTAL CUSTOMER SERVICE
Customers o are the life-blood of every business o satisfying them is an income-producing endeavor.
Customers o are the most important people in my business.
Customers o are not dependent on us o we’re dependent upon them.
Customerso are not cold, hard lifeless statistics o they are flesh and blood human beings with feelings and
emotions just like our own.
Customerso do us a favor when they call with a complaint or service
request o customer retention is the bottom line.
Customers o are not an interruption of our work o they are the purpose of everything we do.
Customers o are the key components of our business o they are not outsiders.
Customerso deserve the most courteous and attentive service we
can give them o develop a servant’s heart.
Customers o are people who bring us their wants and needs o it is our job to thrill them.
Customers o are not opponents to argue or match wits with o why win the battle and lose the war?
Customers o should be considered economic assets o manage them to maximize your return on investment.
Customers
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.
CHAPTER 15Personal
Organizationand
Self ManagementACT!
"Dost thou love life? Then do not squander time, for that’s the stuff life is made of."
- Benjamin Franklin
John Ciardio The day will happen whether or not you get
up.
Yogi Berra o It isn't over till it's over.
Benjamin Franklin o Remember that time is money.
Alexander Rose o half the agony of living is waiting.
French proverbo People count up the faults of those who keep
them waiting.
Napoleon Bonaparteo You may ask for anything you like except
time.
Abraham Lincolno You can't escape the responsibilty of
tomorrow by evading it today.
Thomas Edisono Everthing comes to him who hustles while he
waits.
Victor Kiamo Procrastination is opportunity's natural
assassin....
Anonymous
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.
ATTITUDES TOWARD TIMELakein's first question to ask: "What is the best use of my time right
now?"
Time cannot be managed. o Activities can be managed
Personal Organization and Self Management involve
o Self Management or Self Discipline o Planning and Organizing o Automation systems and techniques
84,000 seconds per day to use
o How will you spend your time? o How will you invest your time? o How much to business, service,
family, leisure?
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
Some suggestions
o List activities that you want to complete this week o Keep a detailed, hour by hour, record of what you
do with your time o 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
NEED FOR ORGANIZATIONOrganize to prioritize and process information received
Three Basic Mental Tasks
Stimulating Recall o Unaided recall is 40% maximum o Stimulated recall can be 100% o Reminders must be in plain sight.
Handling Incompletions
o Incompletion : anything that needs additional action before it is put to rest.
o To avoid frustrating thoughts about incompletions
1. Do it now if possible 2. Delegate and forget 3. Put a reminder someplace that will work
Thinking Creatively
o You need to make time for creative thinking
o Get everything else under control and this time becomes available.
PROCEDURES FOR GETTING ORGANIZED
David Allan's Getting Things Done
Types of Time Abusers
People Pleaser
o Wants to please o Fears authority
Perfectionisto Unrealistic standards o Can't delegate
Procrastinatoro Put off, put off o panic
Remove the Cluttero Even neat piles must go.
o Clutter in sight is a mental burden.
o Collect the Clutter from everyplace o Get into one location. o Sort the Clutter
1. Time critical 2. Someday 3. Trash
Deal with Priorities - Time critical
material
o 31 day folder system o David Allen's 43 folders o computerized reminders
Set Up Working Categories for the Rest
(Someday material)
o Reading
o Projects - separate folder for each project
Handle Interruptions People
InterruptionsPaper
InterruptionsEnvironmental Interruptions
o Superior: you can respectfully ask for a delay
o Associate o Subordinate o Customer:
consider it a contact not an interruption
o Notes o Memos o Correspondence o Periodicals o Messages o Projects
o Telephone Calls - try to hold and return
o Visual distractions o Comfort factors o You might need a
hideaway
o Email
If an interruption is part of your job then you need to decide whether it is more important than your current task
Tasks handled by interruptions take longer
AN ORGANIZING SYSTEM two simple tools
The Master Calendar
A simple pocket calendar backed by
1-31 files or
a computer
Daily to-do List
How its done
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
Start a fresh to-do list every day
Identifying Priorities
The (Vilfredo) Pareto principle
Aka the 80/20 rule
The 80/20 Rule means that in anything
a few (20%)
are vital
many(80%)
are triviall
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
80%of your time and resources.
Sales Managers
20%of salespeople produce80%of sales
Sales People
20%of customers produce80%of your income
How It Can Help You 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. 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. "A" Priorities pressing and related to your goals
"B" Priorities something that can be done anytime within a day, week, month
"C" Priorities Nice to do sometime Time Goals 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 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 TECHNIQUESBenefits of Planned Telephone Time
Telephone saves you time Schedule and confirm appointments
Controlling Telephone Time
Get Organized to Make Calls
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
Setting Goals for Telephone Control Techniques for Telephone Time Problems
Ego Needs Don't get upset if they can't talk when you call.
Socializing Minimize. Remember priorities
Lack of Awareness of time spent.
Keep track of time spent on each call
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.
Too much time given to a call. Preface call "I'll just be a minute…." 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
Features of most mapping programs
Color maps fully annotated Zooming capability Routing information Hotel Data Restaurant Data Car Rental Data Toll Free Numbers and URL's Expense Tracking Custom Printouts
Global Positioning
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 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.
Web Sites
Rand McNally Delorme GPS for PDA Copilot -
AlkTechnologies Maps On Us Mapquest
GeoQuery Garmin Google Maps
Yahoo Maps
MANAGING TRAVEL TIME IN THE SALES TERRITORY
Prioritize customersA High Volume repeat customersB Moderate volume reliable customersC Cost you time and energy and yield little profit
Territory Routing Patterns
Cloverleaf
Starting and ending point are the same
Each leaf represents a cluster of customers
Hopscotch 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 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? 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. The
Benefits Of Time Management: Remember Who You Work ForA
recent UK TV commercial showed short clips of children
admonishing their work-obsessed 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 16SALES MANAGEMENT The Sales Management Function
Sales management may be a firm's largest operating expense
Sales manager is
the link
o Between sellers and customers
o between sellers and management
Two sets of skills are
needed
o Selling Skills o Management Skills
As a manager
rises in the hierarchy
o Less time is spent in the field with salespeople
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
o TQM philosophy is changing many aspects of business o Many sales management methods contradict TQM o TQM uses salespeople to connect customers to the firm's internal
operations.
Role of the Salesperson in TQMo Must satisfy customer
o Must satisfy management
Video Conferencingo Combines voice and visuals o Saves time and money
What To Do What Not To Doo Edit information ahead of time o Interact!
Ask and answer questions o Have Audio Backup o Control noise and
interruptions 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
Choosing a sales manager Promote the top-producing salesperson
o Expertise in all aspects of selling o Sales ability alone is not enough.
o May be unhappy and ineffective in managing other salespeople.
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 Has sales ability management ability
o Unfamiliar with company policies, office practices expense account procedures and organizational goals.
From salesperson to sales manager Activities of a sales manager
o Working with sales representatives o Recruitment o Training and development o Appraisal, counseling coaching o Administration
o Self management
Five characteristics that make a great leader
o 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. The individual as a member of a team
o Develops employees talents and careers
Steps to success as a sales manager o Clarify attitudes about leadership o See yourself as
a. Production manager first b. Personnel manager 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 Train continuously and consistently
Becoming A Winning ManagerTraditional Managers Winning Managers
o Resist Change o Self Image:"The
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 Loves Change o Self Image: "The 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 o Challenges sales team to stretch
themselves o Gives immediate feedback o Rewards and praises individual and
team performance
o Helps employees develop their
talents and careers
SPECIFIC RESPONSIBILITIES PERFORMED Determine Sales Force Organization
Product Organization o Expensive complex products
o Expensive due to specialization
Geographic Organization
o Product line must not be too complex
o Territories must be properly sized
Customer Type Organization
o Selected SIC Codes o Selected customers by name (without
centralized buying) o Selected customer by region
o National or Key Accounts (with centralized buying)
Combination Approaches
o Can combine any and all of the above
o Depends on need, cost, etc
Determine the Number of Salespeople NeededWorkload approach - popular o Determine the number of calls needed o Determine time needed per call o Determine total working time ( a * b) o Determine actual selling time available per salesperson
o Determine number of sales people ( c /d)
Develop a Job DescriptionDevelop
candidateprofile
o Educational requirements o Experience o Job conditions o Type of customers
Informationneeded
in ajob description
o Job title o Relationship to management
a. Who is their boss b. Compensation c. Criteria for promotion
o Job planning : what the salesperson is expected to learn or know
o Selling activities a. Selling techniques
b. Activity expectations
o Self management
Recruit and Select Salespeople
Sourcesfor
Recruiting
o Within the organization o Competitors o Non competing companies o Advertisements o Schools
o Employment agencies
Interviewand
Selection
o Application form o Reference check o Personal interview
1. Qualified? 2. Want or need the job? 3. Can we meet their expectations? 4. Can they do the job?
o Testing
o Physical exam
Orientation
o Introductions o Policies and practices o Vertical communication o Company outside activities
o Expense account
Tips for hiring right
Skip the learning curve
o Hire someone with experience in the areas specific to your needs
Choose marketing skills over sales
skills
o Some sales experience is beneficia
o marketing requires different abilities and approaches than does sales
Seek out charismatic types
o Leadership abilities o Strong communication skills
Raid the big guns
o Some of the best training grounds are in the companies such as Procter & Gamble
o So try to recruit their best
Determine the Compensation Plan
StraightCommission
o Achieve high volume sales o Allows salespeople to
structure their own time and activities.
StraightSalary
o Gives control over salespeople's activities
o May not give aggressive selling
CombinationPlans
o Most Popular today o Draw vs Salary
TQM BasedCompensation
o Customer Retention Bonus o Penetration of Target
Accounts Bonus o Company-Wide
Performance Bonus
Provide Sales TrainingOne on
One Sessions Interactive Multimedia CD Sales Training
Field Training Video sales training
Group Sessions Single issue sessions
Role playing Feedback
Supervise and
Motivate
o Receive continuous training in new product technology
o Guide and direct them in goal-setting o Motivation is at the very heart of supervision
Goal is to create a work environment within which the individuals can and do motivate themselves
The real key is to find motivated men and women and teach them how to sell
Performance EvaluationQuantitative
o Objective and standardized
o Easier to use
Qualitativeo Focus on Quality not quantity o Often ambiguous o Allows use of personal biases o Should accompany quantitative measures o Other requirements
Standardized form Consistent over time
Used for the entire sales force
Techniques for Qualitative AppraisalsBehaviorally
Anchored Rating Scale(BARS)
o Each point on a scale is labeled with a different description of behavior
o Often a dozen or more scales
Checklist Scaleo More of a standardized 5 or 10 point scale
o Usually has more scales
MBO
o Goal setting and evaluation process o Mutual goals o Periodic reviews
o Evaluation based on each goal
Effectiveness versus EfficiencyEffectiveness
o Effectiveness is a function of Territory Objectives Resources allocated to that territory Salesperson's performance
o Measure actual sales against potential, quota or objectives
Efficiencyo Profitability of a territory
Time, effort and money invested to get sales o Ratio analysis - various ratios are used as a measure of efficiency
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 performanceWhen and how often?
o Informal evaluations should be done frequently- daily, weekly
o Formal evaluations should be on a regular schedule - two months is considered optimal
Sources of Information for the Evaluation
Company Records
o Sales Reports o Expense Reports o Activity Reports o Complaint Records
o Call Reports
Observationso Accompany salesperson
o Observe phone conversation, mail, e-mail
External Sources
o Customers o Associations
o Agencies
Recommending Action Improvemento Salesperson should agree on what are reasonable improvements o Step by step plan should be developed
o Reasonable time period should be specified
Characteristics of an Effective Evaluation Program
Motivation Evaluation should motivate salespeople to want to improve
Participation Evaluation should offer the sales person an opportunity to participate
Agreement Both parties should agree on o Objectives o Means of getting the objectives
o How attainment will be measured
Commitment Salesperson should be committed to attaining the objectives
Realism The program should be based on realistic objectives that reflect actual territory conditions
Objectivity The program should be centered around objective and constructive techniques and measuring tools
SALES TECHNIQUEShttp://www-
rohan.sdsu.edu/~renglish/377/chapter 1: Introduction to Sellingchapter 2:
Relationship Sellingchapter 3: Ethical and Legal Considerationschapter 4: Consumer
Behavior and The Communication Agendachapter
5: Finding your Selling Stylechapter 6: Preparation for Success in Sellingchapter 7: Prospectingchapter
8: The Preapproach andTelephone Techniqueschapter 9:
Approaching the Prospectchapter 10: Asking Questions and Listening
The S P I Nchapter 11:Preparing for an Effective Presentationchapter 12: Handling
Objectionschapter 13: C L O S Echapter 14: Building Relationships
with Total Customer Servicechapter 15: Personal Organisation and
Self Managementchapter 16: Sales Management