The objectives for the sales presentation are developed after completion of the presentation plan.

Unformatted Attachment Preview

1 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. 10 Approaching the Customer with Adaptive Selling Source: Michael Ahearne Learning Objectives When you finish reading this chapter, you should be able to 1 Describe the three prescriptions that are included in the presentation strategy 2 Discuss the two-part preapproach process 3 Describe team presentation strategies 4 Explain how adaptive selling builds on four broad strategic areas of personal selling 2016-08-01 10:55 AM 2 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... 5 Describe the six main parts of the presentation plan 6 Explain how to effectively approach the customer 7 Describe seven ways to convert the prospect’s attention and arouse interest MyMarketingLab™ Improve Your Grade! Over 10 million students improved their results using the Pearson MyLabs. Visit mymktlab.com for simulations, tutorials, and end-of-chapter problems. 2016-08-01 10:55 AM 3 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Reality Selling Video—Alim Hirani/Hilti Corporation The worldwide Hilti Corporation (www.hilti.com) specializes in providing leading-edge technology to the global construction industry. With some 20,000 employees in more than 120 countries around the world, Hilti actively pursues a value-added orientation in all of its activities. As part of this orientation, Hilti puts its new salespeople through a rigorous training curriculum that includes one-month pretraining on Hilti products and services, a three-week intensive training in product and services sales, and a two-week training on software applications. In addition, these salespeople also ride along with experienced sales managers to get hands-on experience. Furthermore, the company offers refresher courses to keep its salespeople updated on Hilti’s products and services, the construction market, and corporate strategy. Equipped with this in-depth knowledge and the value orientation that is deeply rooted in the corporate culture, salespeople like Alim Hirani, on the right in the photo above, are always well prepared to approach customers to make sales presentations, demonstrate and explain Hilti’s products and services, and show the customers both the tangible and intangible benefits that Hilti can offer. With a direct sales model, Hilti relies heavily on its salespeople to make the connection and deliver its values to its global customers. Alim is a strong believer that he and his sales team are the face of the company. His credibility is embedded in Hilti’s credibility and vice versa. He always makes sure that his sales presentations are well prepared in advance. More importantly, he builds and maintains rapport with his customers from the very beginning of the PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. business relationship because such partnership mentality motivates the customers to disclose their actual concerns. In the end, customers value only solutions that address their actual needs, and Alim as a Hilti salesperson knows that by heart. Developing the Presentation Strategy 2016-08-01 10:55 AM 4 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... 1 Describe the three prescriptions that are included in the presentation strategy The presentation strategy combines elements of the relationship, product, and customer strategies. Each of the other three strategies must be developed before a salesperson can create an effective presentation strategy. The presentation strategy is a well-conceived plan that includes three prescriptions: (1) establishing objectives for the sales presentation, (2) developing the presale presentation plan needed to meet these objectives, and (3) renewing one’s commitment to providing outstanding customer service ( Figure 10.1 ). FIGURE 10.1 The Strategic/Consultative Selling Model provides the foundation for a value-added consultative presentation strategy. 2016-08-01 10:55 AM 5 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... The first prescription reminds us that we need to establish one or more objectives for each sales call. High-performance salespeople like Alim Hirani understand that it is often possible to accomplish several goals during a single call. A common objective of sales calls is to collect information about the prospect’s needs. Another common objective is to develop, build, or sustain a relationship with those who make the buying decision. A carefully prepared presentation plan ensures that salespeople are well organized during the sales presentation and prepared to achieve their objectives. A six-step presentation plan is introduced later in this chapter. Establishment of objectives for the sales presentation and preparation of the presentation plan must be guided by a strong desire to offer outstanding customer service. Achieving excellence is the result of careful needs analysis, correct product selection, clear presentations, informative demonstrations, win-win negotiations, and flawless service after the sale. Salespeople who are committed to doing their best in each of these areas are richly rewarded. PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Presentation Strategy Adds Value How does precall planning add value? Value is added when you position yourself as a resource—not just a vendor. You must prove that you have important ideas and advice to offer.1 A well-planned presentation adds value when it is based on carefully developed sales call objectives and a presentation plan needed to meet these objectives. Good planning ensures that the presentation is customized and adapted to meet the needs and time constraints of the prospect. Increasingly, customers’ time is very limited and they want a concise and thoughtful presentation. Careful planning is the key to delivering more value and increasing your sales productivity.2 Salespeople need to be aware of the changing needs of their customers or risk losing out to the competition. Some salespeople do not pay enough attention to how they conduct business with their established customers. Without a precall plan, it’s easy to miss opportunities to increase your knowledge of the customer’s business, sell new products, or discover ways to improve service.3 Planning the Preapproach 2016-08-01 10:55 AM 6 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... 2 Discuss the two-part preapproach process Preparation for the actual sales presentation is a two-part process. Part one is referred to as the preapproach . The preapproach involves preparing presale objectives and developing a presale presentation plan. Part two is called the approach and involves making a favorable first impression, securing the prospect’s attention, and transitioning to need identification (Figure 10.2 ). The preapproach and approach, when handled correctly, establish a foundation for an effective sales presentation. FIGURE 10.2 Preparing for the presentation involves planning for the activities that occur before meeting the prospect and for the first few minutes of actual contact with the prospect. The preapproach should be viewed as a key step in preparing for each sales presentation. Professional 2016-08-01 10:55 AM 7 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... salespeople complete the preapproach for every presentation whether it involves a new account or an established customer. Top salespeople often spend two or three hours planning for a 25-minute sales call. The preapproach includes the first two prescriptions for developing a presentation strategy: establishing objectives and creating a presale presentation plan. PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Establishing Presentation Objectives Preparation for a sales call is part research, part planning, and part critical thinking. Sales representatives employed by Nalco Chemical Company prepare for each sales call by filling out a 13-point precall planner. One section of this form requires the salesperson to identify the objectives of the call. Nalco is a company that emphasizes professionalism, long-term partnerships, and staying focused on customer needs.4 In Chapter 8 , we introduced the five stages of the typical buying process (see Figure 8.3 ). When you are calling on a consultative or strategic alliance buyer, you will usually not cover all of these stages during a single sales call. Multi-call sales presentations are especially common in complex sales. Therefore, it’s best to develop presentation objectives suitable for each stage of the buying process. During the first stage—need awareness—customers may or may not be aware of their needs and problems. The need awareness stage is the “investigation” stage. Uncovering and clarifying needs will require the use of appropriate questions (covered in detail in Chapter 11 ). The following presentation objectives would be appropriate during the first call on a new prospect: Establish rapport and begin building a relationship with the customer. Obtain permission to ask need identification questions. Obtain personal and business information to establish the customer’s file. During stage two of the buying process—evaluation of solutions—the customer is ready to consider possible problem solutions. In some cases, there may be several solutions that must be evaluated. Presentation objectives for stage two might include the following: Involve the customer in a product demonstration. 2016-08-01 10:55 AM 8 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Provide value justification in terms of cost reduction and increased revenues. Compare and contrast the features of, for example, a truck fleet lease plan with a fleet purchase plan. Every sales call should have an action objective . An action objective is something that you want the customer to do during the sales presentation: provide specific financial information, schedule a visit to your manufacturing plant, agree to a trial use of your product, agree to a follow-up meeting, or place an order. An action objective brings a sharp focus to the sales presentation.5 Once you have an appointment with the prospect and the presentation objectives have been established, consider sending a fax or e-mail message that outlines the agenda for the meeting. This will confirm the appointment and clarify the topics to be discussed.6 Multi-call sales presentations are common in many areas, including the retail field. The sale of expensive recreational vehicles, leased automobiles, boats, and quality sound systems for the home or business often requires more than one sales call. High-ended clothing companies, retail stores and independent tailors make office calls to sell tailored clothing. One example is Tom James Clothing introduced in Chapter 1 . Another is Mitchells/Richards, with stores in Westport and Greenwich, Connecticut. This progressive retailer, with a reputation for superior customer service, makes office calls upon request. Working with a customer at his office usually requires more than one sales call.7 Team Selling Presentation Strategies 3 Describe team presentation strategies In today’s ever-changing business environment, team selling has surfaced as a major development. Team selling is ideally suited to organizations that sell complex or customized products and services that require direct communication between customers and technical experts. Sales teams can often uncover problems, solutions, and sales opportunities that no individual salesperson could discover working alone.8 In some situations, the involvement of technical experts can shorten the selling cycle. The team approach often results in more precise need identification, improved selection of the product, and more 2016-08-01 10:55 AM 9 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... informative sales presentations. Team sales presentations require a more detailed precall plan than individual sales calls. Each team member must have a clear understanding of the role he or she will play during the sales call. Sales presentation objectives should be clearly stated. Team members should be given PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. detailed information about the customer, understand the basics of a consultative sales presentation, and be prepared to add value.9 A survey of 19,000 salespeople and sales managers found that about one-fourth of the people contacted use sales teams. A carefully conceived presentation strategy, with each participant having a clear understanding of the role and value he or she will add during the sales call, is essential. Source: Monkey Business Images/Shutterstock Companies that have moved to team sales have discovered that this approach is not easily executed. At Hickok Cole Architects in Washington, D.C., team selling is the primary approach used to obtain new accounts. However, the team selling process was not easily mastered by staff members. Determining who would communicate when, and determining how presentations would fall into place seamlessly, took months of practice among the company’s teams, which often consisted of six or more people. Without sufficient practice, the staff at Hickok Cole discovered that team presentations were sometimes 2016-08-01 10:55 AM 10 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... disorganized.10 Social Media and Selling Today Team Selling, Buying Committees, and “Chatter” Sales of complex or customized products and services invariably involve two teams of people—the selling team and the buying committee or team. Important communications occur between and among members of the two teams. Information about technical and financial matters, information technology, facilities management, and other sales-related issues is exchanged throughout the sales process. [no longer online] Salesforce.com has introduced a system called “Chatter” to facilitate collaborative communication throughout the sales process. Chatter is linked to the [no longer online] Salesforce.com CRM system and incorporates the benefits of social media. Chatter is a secure, cloud-based, online service similar to most social media systems. Members of both teams may create personal profiles similar to those on Facebook. This personalizes the people working together and makes it easy for anyone with access in both companies to get acquainted with everyone involved in the sales transaction. Users can follow selected personnel in either company, sort the profiles by expertise, and form networks of specialists. Messages are easily transmitted among all participants and recorded for reviewing later. Although it appears to be social media, wise users should retain a “casual business” writing style and avoid too much informality. Chatter conversations can pertain to specific subjects so users receive real-time news feeds and participate in the development of each part of the solution. This creates value for the total transaction in that anyone in the buying company not involved in the solution development, such as a board of directors, can review the exchanges to understand the results achieved. Sections of the Chatter system are for people within the selling company to confidentially comment and exchange ideas on how to best solve problems and move the sale ahead. When it is time for the sales presentation, everyone following Chatter’s continuous collaboration will be well prepared to confirm that the proposed solution is a good fit. The presentation contributions by sales team members can be better organized and coordinated. For more information, go to www.Salesforce.com/chatter. A variation of the team approach to selling is used by some marketers. Salespeople are trained to seek 2016-08-01 10:55 AM 11 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... the assistance of another salesperson or actually turn the customer over to another PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. salesperson when problems surface. The other salesperson may bring to the selling situation greater ability to identify the customer’s needs or select the appropriate product. Salespeople who have well-prepared presale objectives know when to seek assistance from another professional. Strategies for Selling to a Buying Committee In some cases, salespeople must address and satisfy both the individual and collective concerns of each participant in a multi-buyer situation. The decision makers may be members of a well-trained buying committee, or a board of directors. As in any type of selling situation, the salesperson should attempt to determine the various buying influences. When possible, the role of each decision maker, the amount of influence he or she exerts, and each decision maker’s needs should be determined before the presentation. Careful observation during the presentation can reveal who may use the product (user influencer), who controls the finances (financial influencer), and who can provide the expertise necessary to make the correct buying decision (technical influencer). When you make a presentation to a buying committee, make sure all parties feel involved. Any member of the group who feels ignored could prevent you from closing the sale. Be sure to direct questions and comments to all potential decision makers in the group. As early as possible, identify the most powerful influences. Find out if there are any silent team or committee members. A “silent member” is one who can influence the buying decision but does not attend the presentation. Silent members are usually senior managers who have a major influence on the buying decision. If a silent member does exist, you must find a way to communicate, directly or indirectly, with this person.11 Adaptive Selling: Builds on Four Strategic Areas of Personal Selling 2016-08-01 10:55 AM 12 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... 4 Explain how adaptive selling builds on four broad strategic areas of personal selling At the very heart of adaptive selling is the belief that every sales call must be tailored to the unique needs, wants, and concerns of the customer. As noted in Chapter 5 , adaptive selling involves altering sales behaviors in order to improve communication with the customer. Identifying and responding to the customer’s needs frequently requires complex behavioral adjustments before and during the sales call. These adjustments are based on the relationship needs and product needs of the customer. Salespeople today must develop a broader repertoire of selling strategies and apply more effective informationacquisition skills.12 The strategic planning that takes place during the preapproach can greatly enhance the adaptive selling process. This plan includes strategies that you use to position yourself with the customers and tactics you will use when you are face-to-face with a customer. Planning the approach involves consideration of how the relationship, product, and customer strategies can enhance the sales presentation. Review the Relationship Strategy As noted in Chapter 3 , salespeople need to think of everything they say or do in the context of their relationship with the customer. Customers want a quality product and a quality relationship. Building and nourishing a long-term partnership with the customer often begins with attention to many small details. Confirming the appointment with a brief e-mail message and arriving for the appointment a few minutes early send a positive message to the customer before the first face-to-face meeting. The first contact between a salesperson and a prospect is very important. A positive or negative first impression can be formed in a matter of seconds. The customer is receiving a variety of verbal and nonverbal messages that can either facilitate or distract from the sales call. Your behaviors and appearance create an image that others observe and remember. Identification of the customer’s preferred communication style should be given a high priority during the initial contact. Once you are in the presence of the customer, absorb the many clues that will help you with style identification. Then use style flexing to accommodate the needs of that person. Review the Product Strategy 2016-08-01 10:55 AM 13 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... During the preapproach, you will learn some new things about the potential customer. You will no doubt acquire information that did not surface during the prospecting stage. If this is the case, it pays to take another look at your product. Now it will PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. be easier to identify features with special appeal to the person you are calling on. In addition, you can more accurately identify questions that the prospect might raise. Product knowledge, combined with knowledge of the customer, builds confidence. Salespeople who are confident in their ability to alter the sales approach as needed are much better prepared to engage in adaptive selling.13 Customers today are eager to do business with salespeople who have developed “expert power.” The strategic planning and preparation that takes place during the preapproach can greatly enhance the adaptive selling process. This planning includes a clear understanding of the relationship, product, and customer strategies. This planning and preparation enabled Lana and her sales team to create a presentation strategy that met the relationship and product needs of Ron, one of her largest customers. Source: Michael Ahearne Review the Customer Strategy Personal selling provides us with the opportunity to apply the marketing concept during every contact with the customer. All energies can be directed toward an individual who is likely to think and act differently from anyone else. Customers today have become increasingly sophisticated in their buying 2016-08-01 10:55 AM 14 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... strategies. They have higher expectations for value-added products and long-term commitments. A customer strategy focuses on understanding the customer’s needs, wants, and buying conditions. A careful review of information contained in the prospect database is an essential part of reviewing the customer strategy. With this understanding, adaptive selling strategies are formulated to meet both the relationship and product needs of the customer. Selling in Action No Tech to High Tech Account planning by the 70 sales representatives at Sebastiani Winery used to be a time-consuming process. Without the aid of modern technology, salespeople were forced to manually analyze two monthly reports that were inches thick. Preparing for a sales call was burdensome. Some salespeople said that they spent almost half their time analyzing reports. A major sales force automation (SFA) initiative was started. The project had these four objectives: Improve communication through the use of e-mail, file sharing, and intranet technology. Support needed development of multimedia presentations. Provide data analysis capabilities. Ease the administrative burden. Each member of the Sebastiani sales force received a laptop loaded with Windows, PowerPoint, e-mail, and Business Objects—the software needed for analyzing data. The new technology was introduced during a three-day training program. Today, salespeople have the ability to do account planning that is much more effective than in the past.a Developing the Six-Step Presentation Plan 5 Describe the six main parts of the presentation plan 2016-08-01 10:55 AM 15 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Once you have established objectives for the sales presentation, the next step (prescription) involves developing the presentation plan. This plan helps you achieve your objectives. PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Today, with increased time constraints, fierce competition, and rising travel costs, the opportunity for a face-to-face meeting with customers may occur less frequently. The few minutes you have with your customers may be your only opportunity to win their business, so careful planning is more critical than ever. Planning the Presentation Once you have collected background information, you are ready to develop a “customized” presale presentation plan. Preparing a customized sales presentation can take a great deal of time and energy. Nevertheless, this attention to detail gives you added confidence and helps you avoid delivering unconvincing hit-or-miss sales talks. The plan is developed after a careful study of the six-step presentation plan activities: (Figure 10.3 ). In most cases, the sales process includes the following 2016-08-01 10:55 AM 16 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... FIGURE 10.3 The Six-Step Presentation Plan A presale plan is a logical and an orderly outline that features a salesperson’s thoughts from one step to the next in the presentation. Each step in this plan is explained in Chapters 10 to 15 . 1. Approach. Preparation for the approach involves making decisions concerning effective ways to make a favorable first impression during the initial contact, securing the prospect’s attention, and developing the prospect’s interest in the product. The approach should set the stage for an effective sales presentation. 2. Need discovery. The need discovery, also commonly referred to as “needs assessment” or “needs analysis process,” is one of the most critical parts of the selling process. If the salesperson is unable to discover the prospect’s buying needs and select a product solution that meets those needs, the sale will likely be lost. Chapter 11 covers all aspects of the need discovery process and selecting products that meet individual needs. 3. Presentation. Three types of need-satisfaction presentation strategies are available to adapt the sales presentation to the needs of the prospect. After deciding which strategy to use, the salesperson carefully prepares the presentations following the guidelines presented. Selling tools or proof devices are used to demonstrate and document the benefits presented. Chapter 12 is devoted exclusively to adapting presentations to meet customer needs. 2016-08-01 10:55 AM 17 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... 4. PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Negotiation. Buyer resistance is a natural part of the selling/buying process. An objection, however, does present a barrier to closing the sale. For this reason, all salespeople should become skillful at negotiating resistance. Chapter 13 covers this topic. 5. Close. As the sales presentation progresses, there may be several opportunities to confirm and close the sale. Salespeople must learn to spot closing clues. Chapter 14 suggestions on how to close sales. provides 6. Servicing the sale. The importance of developing a long-term value-adding relationship with the prospect has been noted in previous chapters. This rapport is often the outgrowth of postsale service. Learning to service the sale is an important aspect of selling. Chapter 15 activities that build value-adding partnerships. deals with Adapting the Presentation Plan to the Customer’s Buying Process A truly valuable idea or concept is timeless. The six parts of the presale presentation plan checklist have been discussed in the sales training literature for many years; therefore, they might be described as fundamentals of personal selling. These steps are basic elements of most sales and frequently occur in the same sequence. However, the activities included in the six-step presentation plan must be selected with care. Prior to developing the sales call plan, the salesperson must answer one very important question: Do these activities relate to the customer’s buying process? As noted in Chapter 8 , purchasing structures and buying procedures can vary greatly from company to company. In some cases, the steps in the buying process have been clearly defined by the organization and this information is available to vendors. Selling steps are of little value unless they are firmly rooted in your customer’s buying process.14 2016-08-01 10:55 AM 18 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Global Business Insight Doing Business in England Linda Phillips, codirector of Executive Etiquette Company, says, “First and foremost is the British attention to detail.” English businesspeople also tend to be more formal in terms of dress and person-to-person communication. It’s helpful to study English business customs before visiting that country. Introductions in England tend to be very formal. The British look for whose name is spoken first. If you are calling on a client named Robert Timmons, the introduction of your sales manager would be, “Mr. Timmons, I would like you to meet Raymond Hill, my sales manager.” In this case the client’s name is first because he is the more important person. Never address someone by his or her first name unless you are invited to do so. Making decisions is often a time-consuming process, so don’t expect a quick close. Do not use aggressive sales techniques, such as the hard sell, and avoid criticism of competing products. Focus on objective facts and evidence during the presentation. It would be poor manners to discuss business after the business day in England. This is true even when you have drinks or a meal with a businessperson.b The Approach 6 Explain how to effectively approach the customer After a great deal of preparation, it is time to communicate with the prospect, either by face-to-face contact, by telephone, or some other appropriate method of communication. We refer to the initial contact with the customer as the “approach.” A high-quality and professional approach is a powerful way to add value and differentiate yourself from your competitors.15 All the effort you have put into developing relationship, product, and customer strategies can now be applied to the presentation strategy. If the approach is effective, you may be given the opportunity to make the sales presentation. If, 2016-08-01 10:55 AM 19 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... however, the approach is not effective, the chance to present your sales story may be lost. You can be the best-prepared salesperson in the business, but, without a good approach, there may be little chance for a sale. The approach has three important objectives. First, you want to build rapport with the prospect. This will be accomplished with your telephone and/or social contact. Second, you want to capture the person’s full attention with your business contact. These first two steps are extremely important in establishing how much influence you will have throughout the rest of the sales PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. process. Never begin your sales story if the prospect seems preoccupied and is not paying attention. Third, you want to transition to the next stage of the sales process. In the early part of the sales process, this will likely be the need discovery; in multi-call presentations, it may be one of the other stages in the sales process such as the presentation, negotiations, or closing the sale. In some selling situations, the first contact with the customer is a telephone call. The call is made to schedule a meeting or, in some cases, conduct the sales presentation. The face-to-face sales call starts with the social contact and is followed by the business contact. The telephone contact, social contact, and business contact are discussed in this section. 2016-08-01 10:55 AM 20 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Establish Your Credibility Early During your approach, everything you do affects the amount of credibility and influence you will have throughout the sales process. Your actions will either increase your perceived value or detract from it.16 Thomas A. Freese (www.qbsresearch.com/ ), author of Secrets of Question-Based Selling, says credibility is critical to your success in sales. Credibility is an impression that people often form about you very early in the sales process.17 Sometimes, little things can erode your credibility and influence before you have a chance to prove yourself. Strategic communications consultant and executive coach Mark Jeffries ([no longer online] www.markjeffries.com) in a new training video on “The Art of Networking” provides examples regarding how misspelled words or grammatical errors in an e-mail, arriving late for an appointment, answering a cell phone or reading an e-mail while with a customer, failing to maintain good eye contact, acknowledging only certain members of a buying group, or failing to send the prospect information that was promised can quickly weaken the amount of influence you have in a relationship. Failure to be well prepared for the sales call will also undermine your credibility. Credibility and influence grow when the customer realizes you are a competent sales representative who can add value throughout the sales process. The Telephone Contact A telephone call provides a quick and inexpensive method of scheduling an appointment. Appointments are important because many busy prospects may not meet with a salesperson who drops in unannounced. When you schedule an appointment, the prospect knows about the sales call in advance and can, therefore, make the necessary advance preparation. Some salespeople use the telephone exclusively to establish and maintain contact with the customer. As noted in Chapter 1 , inside salespeople rely almost totally on the telephone for sales. Telesales , not to be confused with telemarketing, include many of the same elements as traditional sales: gathering customer information, determining needs, prescribing solutions, negotiating objections, and closing sales. Telesales usually are not scripted, a practice widely used in telemarketing. In some situations, telesales are as dynamic and unpredictable as a face-to-face sales call. 2016-08-01 10:55 AM 21 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Capturing the customer’s full attention is a major objective of the approach. Attention has become a very scarce resource in today’s fast-paced world. Source: Goodluz/Shutterstock PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. In Chapter 4 , we examined some of the factors that influence the meaning we attach to an oral message from another person. With the aid of this information, we can see that communication via telephone is challenging. The person who receives the call cannot see our facial expressions, gestures, or posture, and, therefore, must rely totally on the sound of our voice and the words used. The telephone caller has a definite handicap. The telephone has some additional limitations. A salesperson accustomed to meeting prospects in person may find telephone contact impersonal. Some salespeople try to avoid using the telephone because they believe it is too easy for the prospect to say no. It should be noted that these drawbacks are more imagined than real. With proper training, a salesperson can use the telephone effectively to schedule appointments. When you make an appointment by telephone, use the following practices: 2016-08-01 10:55 AM 22 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Plan in advance what you will say. It helps to use a written presentation plan as a guide during the first few seconds of the conversation. What you say is determined by the objectives of the sales call. Have a calendar available to suggest and confirm a date, time, and place for the appointment. Be sure to write it down. Politely identify yourself and the company you represent. Set yourself apart from other callers by using a friendly tone and impeccable phone manners. This approach helps you avoid being shut out by a wary gatekeeper (secretary or receptionist). State the purpose of your call and explain how the prospect can benefit from a meeting. In some cases, it is helpful to use a powerful benefits statement that gets the prospect’s attention and whets the person’s appetite for more information. Present only enough information to stimulate interest. Show respect for the prospect’s time by telling the person how much time the appointment may take. Once the prospect agrees to meet with you, say, “Do you have your appointment calendar handy?” Be prepared to suggest a specific time: “Is Monday at 9:00 a.m. okay?” Confirm the appointment with a brief note, e-mail message, or letter with the date, time, and place of your appointment. Enclose your business card and any printed information that can be of interest to the prospect.18 You should anticipate resistance from some prospects. After all, most decision makers are very busy. Be persistent and persuasive if you genuinely believe a meeting with the prospect can be mutually beneficial. Effective Use of Voice Mail The growing popularity of voice mail presents a challenge to salespeople. What type of message sets the stage for a second call or stimulates a return call? It’s important to anticipate voice mail and know exactly what to say if you reach a recording. The prospect’s perception of you is based on what you say and voice quality. The following message almost guarantees that you will be ignored: Ms. Simpson, I am Paul Watson and I am with Elliott Property Management Services. I would like to visit with you about our services. Please call me at 555–1500.19 2016-08-01 10:55 AM 23 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Note that this message provides no compelling reason for the prospect to call back. It offers no valid item that would stimulate interest. The voice mail message should be similar to the opening statement you would make if you had a face-to-face contact with the prospect: Miss Simpson, my name is Paul Watson and I represent Elliott Property Management Services. We specialize in working with property managers. We can help you reduce the paperwork associated with maintenance jobs and provide an easy way to track the progress of each job. I would like the opportunity to visit with you and will call back in the morning.20 Note that this message is brief and describes benefits that customers can receive. If Paul Watson wants a call back, then he needs to give the best time to reach him. He should give his phone number slowly and completely. It’s usually best to repeat the number. If you are acting on a referral, be sure to say who referred you and why. Effective Use of E-mail Many prospects and established customers like the convenience of e-mail correspondence and prefer it as an alternative to telephone contact. Your challenge is to make it easy for your correspondents to read and handle your e-mail. Always use a meaningful, specific subject line. People who receive large amounts of e-mail may selectively choose which PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. ones to read by scanning the subject lines and deleting those of no interest. An e-mail with a subject line titled “Action Steps from Our 9/28 Meeting” is more likely to be read than a subject line like “Meeting Notes.”21 The e-mail message should tell the reader what you want and then encourage a response. Identify the main point of your e-mail within the first or second paragraphs. Format the e-mail so it’s easy to read. This may require the use of headings (with capitals or boldface print) to identify the main elements of the 2016-08-01 10:55 AM 24 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... memo. Proofread all e-mails for proper grammar, punctuation, and spelling.22 Always use the grammar and spell-check tools. Messages that contain errors may misrepresent your competence. Finally, use a signature file—a small block of text that automatically follows each e-mail you send. A typical signature file includes full name, title, affiliation, phone number, and in some cases a slogan. The Social Contact—Building Rapport According to many image consultants, “First impressions are lasting impressions.” This statement is essentially true, and some profitable business relationships never crystallize because some trait or characteristic of the salesperson repels the prospective customer. Sales personnel have only a few minutes to create a positive first impression. Susan Bixler, author of The New Professional Image, describes the importance of the first impression this way: Books are judged by their covers, houses are appraised by their curb appeal, and people are initially evaluated on how they choose to dress and behave. In a perfect world this is not fair, moral, or just. What’s inside should count a great deal more. And eventually it usually does, but not right away. In the meantime, a lot of opportunities can be lost.23 Building rapport should lead to credibility, which leads to trust. Once trust is established, the customer is likely to open up and share information. This information will provide clues regarding ways to create value. To be certain your first impression is appropriate, review the material in Chapters 3 , 4 , and 5 . The information in those chapters is timeless and can serve you well today and in the future. The brief, general conversation that often occurs during the social contact should hold the prospect’s attention and establish a relaxed and friendly atmosphere for the business contact that is to follow. As mentioned in Chapter 4 , there are three areas of conversation that should be considered in developing a social contact. 2016-08-01 10:55 AM 25 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... The goal of good social contact is to build rapport. Building rapport leads to credibility, which leads to trust. Once trust is established, the customer is likely to open up and share information. Source: StockLite/Shutterstock PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Comments on here-and-now observations. These comments may include general observations about an article in the Wall Street Journal, the victory of a local athletic team, or specific comments about awards on display in the prospect’s office. Janis Taylor, sales representative with Trugreen Chemlawn, likes to start each new appointment by seeking “common ground” with her prospects. She looks for such items as a picture of the prospect’s children or a trophy.24 Compliments. Most customers react positively to sincere compliments. Personal items in the prospect’s office, achievements, or efficient operation of the prospect’s business provide examples of what can be praised. A salesperson might say, “I learned recently that your company is ranked number one in customer satisfaction by J.D. Power and Associates.” Search for mutual acquaintances or interests. The discovering of mutual 2016-08-01 10:55 AM 26 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... friends or interests can serve as the foundation for a strong social contact. Most people enjoy talking about themselves, their hobbies, and their achievements. Debra Fine, author of The Fine Art of Small Talk, says, “Small talk isn’t stupid. It’s the appetizer for all relationships.”25 Planning Personal Visits Using CRM Personally visiting prospects and customers helps build strong relationships, yet traveling is expensive and time consuming. A salesperson is challenged to plan visits that optimize the investment represented by each trip. Access to customer relationship management (CRM) contact records helps salespeople quickly identify all the accounts in a given geographic area that can be visited during one trip. CRM empowers salespeople to rapidly review and compare an area’s contacts on the basis of their stage in the sales process, the potential size of the account or purchase, the likelihood of a sale, and the contribution the visit could make to information gathering and relationship building. A well-managed CRM database provides salespeople with appropriate business and social topics to discuss when calling selected prospects for an appointment. Guidelines for Good Social Contact The social contact should be viewed as rapport-building communication on a personal basis. This brief conversation establishes the foundation for the business contact, so it should never be viewed as an insignificant part of the presentation strategy. The following guidelines can help you develop the skills needed to make a good social contact. 2016-08-01 10:55 AM 27 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Selling in Action Effective Design and Use of the Business Card The business card continues to be a powerful tool for salespeople. It provides a personal touch in our high-tech world. The business card is a convenient way to communicate important information to customers and others involved in the sales process. When you develop your business card, keep these tips in mind. Use eye-catching items such as your company logo, raised letters, and textured paper. The card should be tasteful and pleasing to the eye. Do use a white background. The card should feature all current contact information such as your e-mail address, telephone numbers, and mailing address. List a home phone number only if there’s a second line for business calls. Consider using both sides of the card. You might print your customer service philosophy on the back of the card or list the products you sell. Give your cards generously to anyone who might need to contact you later. Always offer your business card when networking. The card is useful when the contact tells others about your products or services. How you respond to someone else’s business card is important also. According to communications trainer Mark Jeffries, mentioned earlier, when someone hands you their business card, find something about it you can comment on before putting it away. You can comment on things such as the design, the company, or the individual’s title. He contends people will have a favorable memory of you, if done successfully.c 2016-08-01 10:55 AM 28 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... 1. Prepare for the social contact. Conduct a background check on topics of interest to the person you are contacting. This includes reviewing information in the prospect database, reading industry reports, and searching the Internet. Once you arrive at the customer’s office, PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. you will discover additional information about the person’s interests. Most people communicate what is important to them in the way they personalize their work environment. 2. Initiate social contact. The most effective opening comments should be expressed in the form of an open-ended question, such as, “I understand you have just been elected president of the United Way?” You can improve the possibility of a good response to your verbal question by applying nonverbal communication skills. Appropriate eye contact, voice inflections that communicate enthusiasm, and a warm smile will increase the customer’s receptivity to your opening comments. 3. Respond to the customer’s conversations. When the customer responds, it is imperative that you acknowledge the message both verbally and nonverbally. The verbal response might be “That is really interesting” or any other appropriate comment. Nonverbally, you let the customer know you are listening by taking notes, maintaining good eye contact, and occasionally nodding of your head. These gestures communicate you want her to continue talking. 4. Keep the social contact focused on the customer. Because you cannot control where a conversation might go, you may be tempted to focus the conversation on topics with which you are familiar. A response such as, “Several years ago I was in charge of our company’s United Way campaign and we had a difficult time meeting our goal,” shifts the focus of the conversation back to you. While an occasional short personal reference may be appropriate, it is best to keep the conversation focused on topics that are of interest to the customer. Dale Carnegie said that one of the best ways to build a relationship is to encourage others to talk about themselves. 2016-08-01 10:55 AM 29 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Communication on a personal basis is often the first step in discovering a common language that can improve communication between the salesperson and the prospect. How much time should be devoted to the social contact? There is no easy answer to this question. The length of the conversation depends on the type of product or service sold, how busy the prospect appears to be, and your awareness of topics of mutual interest. In many cases, the rapport-building conversation will take place over lunch or dinner. Some sales professionals contend that social conversation should occur before the meal is served, reserving business conversation until later. In some cases, it may be during a sporting event, such as a golf outing. It may also occur during a social event, such as a Broadway play that is offered in appreciation of prior or future business. Many successful sales have been closed during or after a social event. This explains why some companies enroll their sales staff and other customer contact personnel in dining etiquette classes. The Business Contact Converting the prospect’s attention from the social contact to the business proposal is an important part of the approach. When you convert and hold your prospect’s attention, you have fulfilled an important step in the selling process. Furthermore, without this step, the door has been closed on completing the remaining steps of the sale. Some salespeople use a carefully planned opening statement or a question to convert the customer’s attention to the sales presentation. A statement or question that focuses on the prospect’s dominant buying motive is, of course, more likely to achieve the desired results. Buyers must like what they see and hear and must be made to feel that it is worthwhile to hear more. Converting the Prospect’s Attention and Arousing Interest 2016-08-01 10:55 AM 30 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... 7 Describe seven ways to convert the prospect’s attention and arouse interest Throughout the years, salespeople have identified and used a number of effective methods to capture the prospect’s attention, arouse interest, and transition into the next step of the presentation. Seven of the most common are explained in the following material: Agenda approach Product demonstration approach Referral approach Customer benefit approach PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Question approach Survey approach Premium approach We also discuss combining two or more of these approaches. Agenda Approach One of the most effective methods to transition from the social contact to the business contact is to thank the customer for taking time to meet with you and then review the call objectives you have prepared for the meeting. You might say, “Thank you for meeting with me this morning. I would like to accomplish three things during the time you have given me.” This statement shows you value the person’s time and you have preplanned a specific agenda. Always be open to changing the agenda based on input from the customer.26 This approach is welcomed by buyers in multi-call situations. 2016-08-01 10:55 AM 31 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Product Demonstration Approach This straightforward method of getting the prospect’s attention can be achieved by showing the actual product, a sample, a mock-up, a video, or a well-prepared brochure either in print form or on a computer screen. It is a popular approach used by sales representatives who sell convention services, technical products, pharmaceuticals, photographic equipment, automobiles, construction equipment, office furniture, and many other products. In many multi-call situations, salespeople leave samples for the customer to examine and try out at a later date. Trish Ormsby, a sales representative for Wells Fargo Alarm Services, uses her portable computer to create a visual image of security systems that meet the customer’s security needs.27 Referral Approach Research indicates that another person is far more impressed with your good points if these points are presented by a third party rather than by you. The referral approach is quite effective because a third party (a satisfied customer) believes the prospect can benefit from your product. This type of opening statement has universal appeal among salespeople from nearly every field. When you use the referral approach, your opening statement should include a direct reference to the third party. Here is an example: “Mrs. Follett, my name is Kurt Wheeler, and I represent the Cross Printing Company. We specialize in printing all types of business forms. Mr. Ameno—buyer for Raybale Products, Incorporated—is a regular customer of ours, and he suggested I mention his name to you.” Customer Benefit Approach One of the most effective ways to gain a prospect’s attention is to immediately point out benefits of purchasing your solution or value proposition. As noted in Chapter 7 , the benefit could focus on either the product, company, or salesperson. Begin with the most important issue (or problem) facing the client. When using this approach, the most important buyer’s benefit is included in the initial statement. For example, the salesperson selling a portable Sony projector might open with this product benefit statement: The Sony VPL-CS4 lightweight projector strikes a balance between cost, size, brightness, and convenience. It’s a good choice for a quick business trip or for a work-at-home presentation. A company benefit example taken from the financial services field is: 2016-08-01 10:55 AM 32 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... When you meet with a Charles Schwab investment specialist, you can obtain advice on over 1,200 no-load, no-transaction-fee mutual funds. The customer benefit approach is also used with what is sometimes referred to as the “elevator speech.” The elevator speech focuses on the benefit of working with the salesperson and is used to open the door and establish credibility to meet a need. It is about offering to take excellent care of the prospect. The elevator speech should be short, prepared well in advance, and extensively rehearsed before it is used. It is used most appropriately in the initial call on a prospect where the prequalifying research indicates the buyer is more interested in the benefits of working with a highly qualified salesperson than finding a new product solution or supplier. Here is PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. an employment services example of a salesperson benefit statement using the elevator speech approach: Hello, I’m Chad Leffler. I partner with companies like yours that need to find talented people to help their business grow and become more profitable. As noted, the key to achieving success with the customer benefit approach is advance preparation. Customers are annoyed when a salesperson cannot quickly communicate the benefits of meeting with them. Bruce Klassen, sales manager for Do All Industrial Supply, says, “Our salespeople begin the sales process by researching the prospect and the company. We need to be sure that our sales calls are going to benefit that prospect before we make even an initial sales approach.”28 Question Approach The question approach has two positive features. First, an appropriate question almost always triggers prospect involvement. Very few people avoid answering a direct question. Second, a question gets the prospect thinking about a problem that the salesperson may be prepared to solve. Molly Hoover, a sales training consultant, conducts training classes for sales managers and car dealers who want to better understand the subtleties of selling to the new woman car buyers. She suggests an approach that includes a few basic questions such as: “Is the vehicle for business or pleasure?” 2016-08-01 10:55 AM 33 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... “Will you be buying within the next week or so?”29 These opening need-related questions will be discussed in detail in the next chapter and are generally not difficult to answer, yet they get the customer mentally involved. Some of the best opening questions are carefully phrased to arouse attention. The authors of The Sales Question Book offer some good examples: “Are you aware that we just added three new services to our payroll and accounting package? Could I tell you about them?” “We are now offering all our customers a special auditing service that used to be reserved for our largest accounts. Would you be interested in hearing about it?”30 Once you ask the question, listen carefully to the response. If the answer is yes, proceed with an enthusiastic presentation of your product. If the answer is no, then you may have to gracefully try another approach or thank the prospect for his or her time and depart. The use of questions will be discussed in detail in the next chapter and will provide information on the specific types of questions to use to approach your customer. The survey approach offers many advantages. It is generally a nonthreatening way to open a sales call. You simply ask permission to acquire information that can be used to determine the buyer’s need for the product. Source: carlosseller/Shutterstock Survey Approach Robert Hewitt, a Monterey, California, financial planner, has new clients fill out a detailed questionnaire before the first appointment. This procedure is part of his customer strategy. He studies the completed questionnaire and other documents before making any effort to find a solution 2016-08-01 10:55 AM 34 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. to any of the customer’s financial planning needs. The survey or “needs discovery,” as it is also called, is an important part of the problem-solving philosophy of selling. It often is used in selling products where the need cannot be established without careful study. The survey approach offers many advantages. It is generally a nonthreatening way to open a sales call. You simply are asking permission to acquire information that can be used to determine the buyer’s need for your product. Because the survey is tailor-made for a specific business, the buyer is given individual treatment. Finally, the survey approach helps avoid an early discussion of price. Price cannot be discussed until the survey is completed. We will discuss the survey or needs discovery in detail in Chapter 11 . Premium Approach The premium approach involves giving the customer a free sample or an inexpensive item. A financial services representative might give the customer a booklet that can be used to record expenses. Sales representatives for a large U.S. textbook publisher give faculty members a monthly planner. Product samples are frequently used by persons who sell cosmetics. Creative use of premiums is an effective way to get the customer’s attention. The agenda, product, referral, customer benefit, question, survey, and premium approaches offer the salesperson a variety of ways to set the stage for the presentation strategy. With experience, salespeople learn to select the most effective approach for each selling situation. Table 10.1 how these approaches can be applied in real-world situations. provides examples of 2016-08-01 10:55 AM 35 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... TABLE 10.1 Business Contact Worksheet This illustrates how to prepare effective real-world approaches that capture the customer’s attention. 2016-08-01 10:55 AM 36 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Method of Approach 1. Agenda 2 Product What Will you Say? 1. (Office supply) “Thank you for meeting with me. During the next 45 minutes, I plan to accomplish three things.” 2a (Retail clothing) “We have just received a shipment of new fall sweaters from Braemar International.” 2b (Business forms manufacturer) “Our plant has just purchased a $300,000 Harris Graphics composer, Mr. Reichart; I would like to show you a copy of your sales invoice with your logo printed on it.” 3 Customer benefit 3 (Real estate) “Mr. and Mrs. Stuart, my company lists and sells more homes than any other company in the area where your home is located. Our past performance would lead me to believe we can sell your home within two weeks.” 4 Referral 4 (Food wholesaler) “Paula Doeman, procurement manager for Mercy Medical Center, suggested that I provide you with information about our computerized ‘Order It’ system.” 5 Question 6 Survey 5 (Hotel convention services) “Mrs. McClaughin, will your Annual Franchisee Meeting be held in April?” 6a (Custom-designed computer software) “Mr. Vasquez, I would like the opportunity to learn about your accounts receivable and accounts payable procedures. We may be able to develop a customized program that will significantly improve your cash flow.” 6b (Retail menswear) “May I ask you a few questions about your wardrobe? The information will help me better understand your clothing needs.” 7 Premium 7 (Financial services) “I would like to give you a publication titled Guaranteed Growth Annuity.” 2016-08-01 10:55 AM 37 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Combination Approaches A hallmark of adaptive selling is flexibility. Therefore, a combination of approaches sometimes provides the best avenue to need identification. Sales personnel who have adopted the consultative style, of course, use the question and survey approaches most frequently. Some selling situations, however, require that one of the other approaches be used, either alone or in combination with the question and survey approaches (Figure 10.4 approach combination follows: ). An example of how a salesperson might use a referral and question FIGURE 10.4 Combination approaches provide a smooth transition to the need discovery part of the consultative presentation. Salesperso n: Customer: Salesperso n: Carl Hamilton at Simmons Modern Furniture suggested that I visit with you about our new line of compact furniture designed for smaller homes. He believes this line might complement the furniture you currently feature. Yes, Carl called me yesterday and mentioned your name and company. Before showing you our product lines, I would like to ask you some questions about your current product mix. First, what do you currently carry in the area of bedroom furniture? Suggesting the use of a combination approach, noted sales authority Linda Richardson of Richardson Learning Systems advised to “go in armed to the gills with a full portfolio of knowledge, insights, data, and ideas. Use that portfolio to engage customers by sharing insights and asking business challenge questions that show that you know what you are talking about and that lead into your value. Intelligent questions provide as much insight as answers. They give you insights into the customer’s thinking and jumpstart the collaborative process. They also help you validate that your insight is relevant.”31 2016-08-01 10:55 AM 38 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Coping with Sales Call Reluctance The transition from the preapproach to the approach is sometimes blocked by sales call reluctance. Fear of making the initial contact with the prospect is one of the biggest obstacles to sales success. For new salespeople, the problem can be career threatening. Sales call reluctance includes the thoughts, feelings, and behavioral patterns that conspire to limit what a salesperson is able to accomplish. It is an internal, often emotional, barrier to sales success. Sales call reluctance can be caused by several different thought patterns:32 Fear of taking risks Fear of group presentations Lack of self-confidence Fear of rejection Regardless of the reasons for sales call reluctance, you can learn to deal with it. These are some suggestions: Be optimistic about the outcome of the initial contact. It is better to visualize and anticipate success than to anticipate failure. Martin Seligman, professor of psychology at the University of Pennsylvania and author of the best-selling book Learned Optimism, says that success in selling requires a healthy dose of optimism.33 It is important to frequently recommit yourself to the double-win value-adding approach to working with customers discussed earlier. The anticipation of failure is a major barrier to making the initial contact. Practice your approach before making the initial contact. A well-rehearsed effort to make the initial contact increases your self-confidence and reduces the possibility that you may handle the situation badly. PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Recognize that it is normal to feel anxious about the initial contact. Even veteran salespeople experience some degree of sales call reluctance, and this reluctance can surface anywhere in the sales process. Develop a deeper commitment to your goals. Abraham Zaleznik, professor emeritus at Harvard Business School, says, “If your commitment is only in your mind, then you’ll lose it when you encounter a big obstacle. If your commitment is in your heart and your mind, you’ll create the power 2016-08-01 10:55 AM 39 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... to break through the toughest obstacles.”34 Selling to the Gatekeeper Many decision makers have an assistant or secretary who manages their daily schedule. This person is often referred to as the “gatekeeper.” If you want to reach the decision maker, work hard to align yourself with the person who schedules this person’s appointments. Rule number one is to treat the gatekeeper with respect. Learn their names and what they do. Keep in mind this person can be an important source of information. For example, the gatekeeper can tell you how the buying process works and provide information regarding new developments in the company. This person may be able to help you make a preliminary qualification before you reach the decision maker. When you treat the person as an expert by soliciting their views, you establish a relationship that can pay big dividends today and in the future.35 When possible, use personal referrals from someone the prospect knows. If you have met the prospect previously, describe the meeting and tell the gatekeeper why you feel a second meeting would be beneficial. 2016-08-01 10:55 AM 40 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Chapter Learning Activities 2016-08-01 10:55 AM 41 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Reviewing Key Concepts Describe the three prescriptions that are included in the presentation strategy Developing a presentation strategy involves preparing presale objectives, developing a presale presentation plan, and providing outstanding customer service. The presentation strategy combines elements of the relationship, product, and customer strategies. Discuss the two-part preapproach process Preparation for the sales presentation is a two-part process. Part one is referred to as the preapproach and involves preparing presale objectives and developing a presale presentation plan. It’s best to develop presentation objectives for each stage of the buying process. Part two is called the approach and involves making a good first impression, securing the prospect’s attention, and transitioning to need identification. Describe team presentation strategies In recent years, team selling has surfaced as a major development. Sales teams can often uncover problems, solutions, and sales opportunities that no individual salesperson could discover working alone. Team sales presentations require a more detailed precall plan than individual sales calls. Without careful planning and extensive practice (rehearsal), team presentations are likely to be delivered in a disorganized manner. Explain how adaptive selling builds on four broad strategic areas of personal selling Adaptive selling involves altering sales behaviors in order to improve communication with the customer. Salespeople today are challenged to develop a broader repertoire of selling strategies. Salespeople skilled in adaptive selling consider how the relationship, product, and customer strategies can enhance the sales presentation. 2016-08-01 10:55 AM 42 of 42 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. 2016-08-01 10:55 AM 1 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. 11 Determining Customer Needs with a Consultative Questioning Strategy Learning Objectives When you finish reading this chapter, you should be able to 1 Outline the benefits of the consultative sales process 2 Describe the four parts of the need-satisfaction model 3 Discuss the use of questions to discover customer needs 4 Describe the importance of active listening and the use of confirmation questions 5 Select solutions that match customer needs MyMarketingLab™ Improve Your Grade! 2016-08-01 10:54 AM 2 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Over 10 million students improved their results using the Pearson MyLabs. Visit mymktlab.com for simulations, tutorials, and end-of-chapter problems. 2016-08-01 10:54 AM 3 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Adaptive Selling Video—Questions, Questions, Questions The effective use of questions is the starting point of the consultative sales process. Questions are used to build adaptive style selling relationships, discover customer needs, and adapt and present product solutions that meet those needs. Questions span the entire sales process and are also used to successfully negotiate, close, and service a sale. “Questions, Questions, Questions,” the second video in our Adaptive Selling Today Training Video Series, introduces and shows how to use the four adaptive selling questions described in this chapter. An Internet telephone systems sales representative featured in the video learns one of his largest accounts may be going with another supplier. The salesperson’s company brought in a new sales training program on how to use questions effectively, and the salesperson is the first to learn the system. With his newly acquired knowledge and skills, the salesperson schedules another call to see if he can, with the use of questions, reestablish his relationship and salvage the sale. In this follow-up call, we find out how well he has learned to adapt and use questions to discover and better understand the customer’s needs, create value, solve the customer’s buying problem, and retain the account. Throughout the three-part video, our salesperson learns about the following four-part multiple-questioning strategy and what these questions will reveal during the consultative sales presentation. Survey Questions Reveal Problems and situation Probing Questions Reveal Pain and implications Need-Satisfaction Questions Reveal Pleasure and need satisfaction Confirmation Questions Reveal Mutual understanding The use of an effective questioning strategy, so important to the consultative sales process, is one of the greatest challenges facing salespeople. Need discovery and questioning will be explored in this chapter (Figure 11.1 next chapter. ), and the sales presentation and demonstration will be presented in the 2016-08-01 10:54 AM 4 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. The Consultative Sales Process Adds Value 1 Outline the benefits of the consultative sales process Extensive research regarding the use of questions in the sales process reveals the importance of developing and perfecting a multiple questioning strategy to understand and solve customer needs. The Adaptive Questions video dramatically presents how these questions are used in the sales process. Source: Michael Ahearne 2016-08-01 10:54 AM 5 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... FIGURE 11.1 Creating the Sales Presentation The consultative sales process involves adding value by accurately determining the prospect’s needs and selecting an appropriate product or service. A growing number of salespeople, like the Internet telephone system salesperson pictured above, have adopted the consultative sales process. New competitive structures and customer demands have forced companies to continuously adapt and redefine their value-adding processes.1 Consultative selling, as introduced in Chapter 2 , is a value-adding process. Consultative selling involves meeting customer needs by asking strategic questions, listening to customers, understanding—and caring about—their problems, selecting the appropriate solution, creating the sales presentation, and following through after the sale. Consultative selling is a very customer-centric form of selling that PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. creates value for the customer and, in the process, creates value for the firm.2 This approach is very different from product-oriented selling. As one author noted, “Product-oriented selling can easily lapse into product evangelism.” Product-oriented selling is usually inefficient and ineffective.3, 4 New entrants in the field of personal selling sometimes wonder why some people excel in selling products 2016-08-01 10:54 AM 6 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... or services, while others, who seem to work just as hard, fall short of meeting company or personal selling goals. The answer can be found by reviewing the behaviors displayed by top sales performers from Fortune 500 and smaller entrepreneurial-based companies. High-performance sales personnel have learned how to skillfully diagnose and solve problems better than their competitors.5 This consultative problemsolving capability translates into the following: 2016-08-01 10:54 AM 7 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Increased Customer Satisfaction Customers prefer to purchase solutions that truly meet their needs. The solution that is “just right” for the customer adds value, maximizes satisfaction, and sets the stage for a partnership relationship and repeat business. In some cases, the right solution will cost more than the customer planned to pay, but the added value will usually compensate for the higher price. Jeff Thull, author of Mastering the Complex Sale and The Prime Solution, states, “In too many buyer–seller relationships, there is a value gap where the customer is not getting the satisfaction they believe was promised.”6 Consultative salespeople with the ability to diagnose and solve customer problems are able to close this value gap. More Sales Closed The extra time taken to carefully solve the customer’s buying problem will set the stage for closing more sales. A certain amount of buyer resistance surfaces in nearly every selling situation. Understanding your customer’s needs and configuring the most suitable solution from available options add value to both your customer and your company. It will help you avoid unnecessary objections from the customer. Fewer Order Cancellations and Fewer Returns It is always disappointing to have a customer cancel an order a few days after the sale was closed. The frequency of order cancellations can be reduced with consultative style selling. Returned merchandise is another serious problem. Whether the product is returned or needs to be reconfigured, the expense will often wipe out the profit earned on several sales. Increased Repeat Business and Referrals Many business firms do not make a profit on the first sale. In fact, some firms do not earn a profit until the customer has placed the third or fourth order. The same is true for the salesperson. Without repeat business and a steady list of referrals, the salesperson will generally not experience the financial and psychic rewards described in Chapter 1 . If at any point the customer does not feel the treatment was fair, the time and cost invested in partnership building and obtaining the initial order, as well as future sales, may be lost. Repeat business also builds a sense of pride within everyone associated with the business. 2016-08-01 10:54 AM 8 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Satisfied customers represent a potent form of sales promotion. A group of satisfied customer forms what might be called an “auxiliary” sales force. Through word-of-mouth advertising, especially with the availability of social media and blogging, these people are referring potential customers and building new business for both the salesperson and the firm. Most of us can’t resist sharing positive experiences with friends and business acquaintances. The sales environment is changing. In competitive markets, success increasingly hinges on developing and maintaining mutually rewarding customer relationships.7 Salespeople using the consultative sales presentation model are able to create more value and gain competitive advantage in their markets. The Four-Part Need-Satisfaction Model 2 Describe the four parts of the need-satisfaction model To be most effective, the salesperson should think of the sales process as a four-part model. The Consultative Sales Process Guide features these four parts (Figure 11.2 ). Part One—Need Discovery Since the emergence of the marketing concept discussed in Chapter 2 , where the activities of a firm revolve around the needs of the customer, need discovery forms the essence of salespeople being able to create value, meet the needs of their customers, and execute the firm’s commitment to the PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. marketing concept. A review of the behaviors displayed by high-performance salespeople helps us understand the importance of precise need discovery. They have learned how to skillfully diagnose and 2016-08-01 10:54 AM 9 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... solve the customer’s problems better than their competitors. This problem-solving capability translates into more repeat business and referrals and fewer order cancellations and returns.8 FIGURE 11.2 The Consultative Sales Process Guide To be most successful, the salesperson should think of the sales presentation as a four-part process. Selling in Action Asking Questions Not Telling at CARQUEST CARQUEST Auto Parts promises to deliver what customers need. To achieve this lofty goal, the company enrolled its 1,200 outside sale force members in Action Selling. A major objective of this sales training program is to help salespeople become trusted business consultants. They learned that asking—not telling—is the key to sales success. Emphasis throughout the course is placed on asking more and better questions. Duane Sparks, who developed Action Selling, says “The success rate of sales calls rises significantly when more than two specific customer needs are uncovered by questioning.”b Unless the selling situation requires mere order taking (customers know exactly what they want), need discovery in the information economy is a critically important part of the sales presentation. It may begin during the qualifying stage of building the prospect database or during the approach if the salesperson uses questions or a survey during the initial contact with the customer. Need discovery generally begins after you transition from the approach. In multi-call situations, need discovery may be the primary call objective during the first or second call. In most multi-call settings, it is wise to reconfirm the needs discovered in earlier calls. The pace, scope, depth, and time allocated to inquiry depend on a variety of factors. Some of these include the sophistication of the product, the selling price, the customer’s knowledge of the product, the product 2016-08-01 10:54 AM 10 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... applications, and, of course, the time available for dialogue between the salesperson and the prospect. Each selling situation is different, so a standard set of guidelines for need discovery is not practical. Additional information on need discovery is presented later in the chapter. Part Two—Selection of the Solution The emphasis in sales and marketing today is on determining customer needs and then selecting or configuring custom-fitted solutions to satisfy these needs. Therefore, an important function of the salesperson is product selection, also often referred to as “product configuration.” Product recommendations in complex sales generally involve writing a detailed product proposal. The salesperson must choose the product or service that can provide maximum satisfaction. When making this decision, the salesperson must be aware of all product options, including those offered by the competition. Salespeople who have the ability to conduct an effective, value-added needs analysis achieve the status of trusted adviser. Mary Langston, personal shopper at Nordstrom’s Michigan Avenue store in Chicago, helps customers update their wardrobes. When asked what her days are like, she says, “It starts and ends with being a good listener.” She promises her customers that she will never let them walk out of the store with clothing that does not look right.9 Part Three—Need Satisfaction Through Informing, Persuading, or Reminding The third part of the consultative sales process consists of creating a need-satisfaction sales presentation and communicating to the customer, both verbally and nonverbally, the satisfaction that the product or service can provide. The salesperson places less emphasis on the use of questions and PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. begins making value-adding statements. These value-adding statements are organized into a presentation that informs, persuades, or reminds the customer of the most suitable product or service. In several of the remaining chapters, we discuss specific strategies used in conjunction with the sales presentation/demonstration, negotiating buyer resistance, and closing and servicing the sale. 2016-08-01 10:54 AM 11 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... Pharmaceutical salespeople generally have only a short time to present their product. In some situations, the doctor may immediately indicate a willingness to prescribe. However, in other situations the salesperson may be asked to make an informative need- satisfaction presentation to several members of the practice. Source: Custom Medical Stock Photo/Alamy Part Four—Servicing the Sale Servicing the sale is a major way to create value. These activities, which occur after closing the sale, ensure maximum customer satisfaction and set the stage for a long-term relationship. Service activities include expansion selling, making credit arrangements, following through on assurances and promises, and dealing effectively with complaints. This topic is covered in detail in Chapter 15 . In those cases in which a sale is normally closed during a single sales call, the salesperson should be prepared to go through all four parts of the Consultative Sales Process Guide. However, when a salesperson uses a multi-call approach, preparation for all the parts is usually not practical. The person selling networking systems or investments, for example, almost always uses a multi-call sales process. Need discovery (part one) is the focus of the first call. Creating Value with Need Discovery 2016-08-01 10:54 AM 12 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... 3 Discuss the use of questions to discover customer needs A lawyer does not give the client advice until the legal problem has been carefully studied and confirmed. A doctor does not prescribe medication until the patient’s symptoms have been identified. In like manner, the salesperson should not recommend the purchase of a product without thorough need identification. You start with the assumption that the client’s problem is not known. The only way to determine and confirm the problem is to get the other person talking. Effective relationship builders are willing to listen to better understand customer challenges. They ask questions that lead to consultative conversations, which open doors to greater opportunities.10 You must obtain information to properly clarify the need, propose a single solution, or offer a range of solutions. Customers may not realize that they actually have a problem. Even when they are aware of their need, as noted earlier by [no longer online] Salesforce.com’s Dave Levitt, given the wide range of solutions and new products available today, they may not realize that an actual solution to their problem exists. Bringing new insights regarding both their buying problem and enhanced solutions creates value for your customer. PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Need discovery (sometimes called “need analysis” or “needs assessment”) begins with precall preparation when the salesperson is acquiring background information on the prospect. As noted in Chapter 9 , this part of need discovery is also referred to as “qualifying the prospect.” Need discovery, and in some cases the qualification process, continues once the salesperson and the customer are engaged in a real dialogue. Through the process of need discovery, the salesperson establishes two-way communication by asking appropriate questions and listening carefully to the customer’s responses. These responses usually provide clues concerning the customer’s dominant buying motives (Figure 11.3 ). 2016-08-01 10:54 AM 13 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... FIGURE 11.3 Three Dimensions of Need Discovery Need Discovery—Asking Questions The effective use of questions to achieve need identification and need satisfaction is one of the greatest challenges facing most professional salespeople. The types of questions you ask, the timing of those questions, and how you pose them greatly impact your ability to create customer value. In many situations, asking high–value-added questions that enlighten your prospect both about their needs and possible solutions results in an immediate sale. The strategic approach to asking questions has been the focus of two major studies. These studies were conducted in response to the emergence of the marketing concept and evolution of the consultative and strategic selling eras discussed in Chapter 2 . The research was conducted by Neil Rackham, for his book SPIN Selling and SPIN Selling Sales Training programs, and Xerox Learning Systems for their successful Personal Selling Skills (PSS) course. The Spin Selling Model According to research conducted during the strategic selling era (see Chapter 2 , Table 2.1 Evolution of Personal Selling) on more than 35,000 salespeople by Neil Rackham, mastering the use of questions can increase one’s success in sales by 17 percent.11 Questions help clarify the exact dimensions of the problem, help the customer evaluate a range of solutions, and assist the customer in evaluating the potential outcome of the solution that is implemented.12 Rackham’s research focused on strategies for making large-ticket sales and is based on a close examination of successful salespeople. Rackham found the investigative or need-discovery stage of the sales process has the most impact on the buyer’s decision to purchase a product. He recommends a multiple-question approach that involves using four types of 2016-08-01 10:54 AM 14 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... questions in a specific sequence (see Selling in Action on p. 234 PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. ). SPIN sales training programs are presented by Huthwaite, Inc. (www.huthwaite.com). PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Personal Selling Skills Model The importance of questioning to establish two-way communication was revealed in another study conducted during the consultative selling era. Research conducted by Xerox Learning Systems was used to develop the original Xerox Personal Selling Skills training program. Sales personnel were interviewed to identify the characteristics of a successful sales call. The results were quite surprising. A successful sales call lasts an average of 30 minutes. During this period, the salesperson asks an average of 13.6 questions, discusses an average of 7.7 product features, and describes approximately six product benefits. During the successful sales call, the customer asks approximately eight questions.13 This 18-month study of behavioral differences among high-, average-, and low-performance salespeople illustrates that a successful sales call is a model of good two-way communication. Regarding the specific use of questions, the results revealed high performers do the following: Use effective questions to gather information and build a clear, complete, mutual understanding of customer needs. Guide the direction of a sales call by striking an appropriate balance between open and closed questions. Use their questioning strategy to facilitate an open exchange of information.14 This study has been used to create and update the very successful Personal Selling Skills training program, now presented by AchieveGlobal ([no longer online] www.achieveglobal.com/solutions/sales). The art and science of using questions was also discussed by Socrates more than 2,500 years ago. He noted, among other things, that questions tend to make people think. It’s nearly impossible to remain 2016-08-01 10:54 AM 15 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... passive when confronted with a direct question. Today, there are sales training programs such as Michael Hargrove’s “Using the Socratic Selling Methods” and books such as Kevin Daley’s Socratic Selling: How to Ask the Questions That Get the Sale that include many of the observations of Socrates.15 In every selling situation, you want the prospect to be actively thinking, sharing thoughts, and asking questions. Appropriate questions reduce tension and build trust in a selling situation because they communicate interest in the other person’s welfare. Until the person begins to talk freely, the salesperson will have difficulty diagnosing and solving the customer’s problems. The Four-Part Consultative Questioning Strategy Table 11.1 illustrates the use of a multiple-questioning strategy to discover customer needs. This strategy is based upon the research studies discussed earlier, as well as that conducted for the “Questions, Questions, Questions” sales training video described in the opening material for this chapter. The four types of questions are situation questions, probing questions, confirmation questions, and need-satisfaction questions. Developing skill in the use of these questions will work best if the consultative salesperson develops the mind-set that it is more important to understand the customer than it is to persuade the customer. You will note similarity to the SPIN Selling and personal selling skills questioning strategies, as well as those found in other popular selling books. Survey Questions Reveal Customer’s Problems At the beginning of most sales presentations, there is a need to collect basic facts about the buyer’s existing situation and problem. Survey questions , or “information-gathering questions,” as they are sometimes called, are designed to obtain this knowledge. To accomplish this, there are two types of survey questions. General survey questions help the salesperson discover facts about the buyer’s problem and existing situation and are often the first step in the partnership-building process. Rackham refers to these as Situation Questions. Here is a sampling of general survey questions that can be used in selected selling fields: “I understand that your regional facilities don’t necessarily use the same delivery carriers, is that correct?” (Shipping Service) “Tell me about the new challenges you are facing in the area of data storage.” (File Server) “What is your current rate of employee turnover?” (Customer Service Training) “Can you provide me with information on the kinds of meetings and conventions you plan for your 2016-08-01 10:54 AM 16 of 38 https://jigsaw.vitalsource.com/api/v0/books/9781323398906/print?from... clients and employees?” (Hotel Convention Services) “Can you describe the style of home furnishings you prefer?” (Retail Home Furnishings) In most selling situations, general survey questions are followed by specific survey questions. PRINTED BY: . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Specific survey questions are designed to give prospects a chance to describe in more detail the problem, issue, or dissatisfaction they are experiencing from their point of view. These specific survey questions (see Selling in Action on ...
Purchase answer to see full attachment

Which is the first step in creating a presentation objective?

What should a salesperson do after finishing the sales presentation?

Which of the following is a purpose of the sales presentation?

Which goals does a salesperson need to accomplish during the first part of a sales presentation?