Professional Documents
Culture Documents
● Every sales call should have action objective (something you want customer to do)
↳ provide financial info
↳ schedule to meet somewhere
↳ trial use of your product
↳ agree to follow up meeting
↳ place an order
● once appointment made + objectives established
○ make sure to send fax/ email outlining agenda of the meeting
○ this confirms the appointment and clarify topics being discussed
Relationship Strategy
● attention to small detail
Product Strategy
● learn something new during preapproach
○ helps you identify features that appeal to them
○ able to identify questions they might ask
● product knowledge + customer knowledge = confidence (abe to alter sales approach)
Customer Strategy
● have higher expectations for value-added products + long-term commitments
● focus on understanding customer needs, wants and buying conditions
● requires careful review in prospect database
Six Steps:
The Approach
● the initial contact with customer (telephone, face-face)
● if approach is effective → gives chance to make the sales
presentation
3 Approach Objectives:
*First 2 steps most important - determines how much influence you have thru out rest of sale
1. Build Rapport
○ accomplished with telephone/ social contact
2. Capture Full Attention with your business contact
3. Transition to Next Stage of Sales Process (need discovery)
○ multi-call presentations = might be another stage
Credibility
● impression people form about you early in sales process
● establish credibility early
Telesales
● same elements of a traditional sales
● not scripted, not telemarketing
Making an Appointment
1. Plan in advance what you will say
a. written presentation plan as a guide for first few seconds
b. what you say depends on your objectives
c. calendar ready to confirm date, time, place
2. Politely identify yourself and the company you represent
a. friendly tone
b. avoid getting shut down by gatekeepers (receptionist)
3. State purpose of your call and explain how the prospect can benefit from the meeting
a. benefit statements that gets prospect’s attention
b. only enough information to stimulate interest
4. Show respect for their time by telling them how long appointment will take
a. specify a specific date and time
5. Confirm the appointment with a brief note/ email.
a. enclose business card or any printed information for the prospect
Voice Mail
● compelling reason for prospect to call back
● information that would stimulate interest
● similar opening statement during face-to-face
● brief and describes benefits customer can receive
● give best time to reach him, slow + repeat phone number
Email
● make it easy to read and handle your email
● meaningful subject line
● main point in 1st paragraph
● message tells them what you want and reason to respond
● format it with headings, check for grammar/ spelling mistakes
● use signature file (name, title, affiliation, phone number)
Referral Approach
● third party (a satisfied customer)
eg) “Mrs…, My name is ..., I represent..., We specialize in …, Mr…. is a regular customer of
ours and he suggested I mention his name to you.”
elevator speech - focuses on the benefit of working with the salesperson + establish credibility
eg) “Hello, I’m Kevin Zhang. I partner with companies like yours that need to find talented
people to help their business grow and become more profitable.
Question Approach
● triggers prospect involvement
● gets prospect to think about a problem that you’re prepared to solve
● listen to response (if answer is yes = proceed enthusiastically)
eg) “Is the vehicle for business or pleasure?”
“Will you be buying within the next week or so?”
“Are you aware that we just…. Could I tell you about them?”
Survey Approach
● new clients fill out questionnaires before first meet
● for finacial services, office machines, security systems, insurance
Premium Approach
● giving prospect free sample
● for cosmetics
Selling to Gatekeeper
● assistant/ secretary
● work hard to align with this person
● treat them with respect/ learn their name
● they can tell you prospects buying process or new developments with the company
● Specific Survey Q’s (problem Q’s) gives prospect chance to describe a problem in more detail
eg) How do you feel about installing another server to your system?
● Should use CRM or other sources to gather factual info, not waste time asking them
● More time on specific questions
● Usually at beginning of sales but sometimes also asked any time
● Open Q’s - requires more than just yes/no
○ Provokes thoughtful + insightful answers
● Closed Q’s - can be answered with yes/no or brief
○ Useful when need to focus on a specific issue
eg) And if I told you that I can offer you cost savings of at least 5% over your current shipping expenses,
would that be meaningful?
3. Take Notes
● Note taking is important in complex sales
● Information from customer will be important for developing a buying solution
Configure Solution
● Product configuration - selecting the right solution
● Several needs and many buying motives = takes more time to configure solution
● Different software/ applications help salesppl configure customized solutions
● Salesperson and customer often co-create solution together through conversations
REVIEW
Demonstration Worksheet
Feature to be Proof Device to be What I Will Say What I or the
Demonstrated Used Customer Will Do
Information-driven Influence-driven
Seven-hour battery Fewer work interruptions when “Battery life is important to you,
travelling isnt it?”
Use of Showmanship
● Showmanship - interesting and attractive way of communicating an idea to others
○ Done appropriately = improve persuasiveness of sales presentation
● Metaphors - help link ideas via pictorial relationships (keeps their attention/ interest)
● Stories - appropriate to customer’s situation/ short/ enthusiastic (helps build relationships)
● Testimonials - from 3rd party customers (help them feel confident about using ur product)
Using Powerpoint
● Use own corporate template, logo, video clips
● Simple, large, bold fonts
● Limit to 15 words per slide
Web-Based Demonstrations
● Eg. Mircrosoft office live meeting
● Some sales demonstration stored in library and available on demand
● Able to present features and ask questions in real time
● Different selling skills used for different stages of the Sales Presentation
○ See table below…..i dont think he’ll ask this??
● Enter negotiation w/o formal strategy ● Identify needs and select solution
● Last minute concession to close a sale effectively = adds value ∴ price is less of
an issue
Negotiation is a Process
● Takes place before sales call
↳ Meeting time, location, who meets
↳ Early concessions = negative influence (giving too much at the start)
● Can take place any time during sales presentation
↳ Most important during 3rd stage of buying process
↳ Takes the longest for strategic alliances
5. Prepare an Agenda
● What will/ will not be discussed and in what sequence
● Prioritize to achieve “small wins” to create goodwill before dealing with tougher issues
Timing and the Pareto Law ● Pareto Law - 80% of results agreed in last 20% of time
● Buying more time to consider concessions
● Giving deadline to speed up agreement
Know When to Walk ● When customer’s budget won’t allow for purchase
● When customer’ best offer not favorable to your
company
● When prospect only interested in lowest price
● When prospect is dishonest
● Keep a log during negotiation for formal written
contracts
Need for the Product ● If precall plan correctly = customer have a need for
product
● Conditioned response that hides real reason for
reistance
● Must be able to show how product can benefit
customer’s business
Time (stall) ● “I want time to think about it” = they have +/- feelings
towards ur product
● Probing Q’s to find out negative feelings
● If buying now is beneficial, tell them sincerely
● Renegotiating contracts - offer break in payment
schedule
Discount Strategies:
● Quantity discounts
● Trade discounts
● Seasonal discounts
● Promotional discounts
● Price matching
Take-It-or-Leave-It Tactic
● Buyer says, “My final offer is...Take it or leave it”
● Lower price? (but means lower profit + commision)
● You should review superior benefits and attempt to close again
● Consider calling halt to negotiation if final offer is without merit
Let-Us-Split-the-Difference Tactic
● Acceptable price= you take it
● Not acceptable = make a counter offer
“If...Then” Tactic
● Buyer says, “Unless you agree to lower price by…, we’ll look somewhere else”
● Response depends on balance of power established during presentation
○ If buyer has many options with same benefits you can offer = you accept
○ If your product has advantages over others = you can counter
● You should say, “I am uanble to because of the price i quoted. However, if you give me this job
and future ones, I will discount your future work”
○ This creates value for both you and your customer
*Decide on terms you are willing to accept/ not accept before going in to negotiate
*It's important you have authority to set prices”
● Closing should not be viewed as a strategy to win at the expense of the customer
● replace defense arousing language: “This is the lowest price available anywhere,” with
need-satisfaction question: “Wouldn’t this new software help you achieve more efficient
inventory control?”
● Salesperson who confidently asks for the sale is displaying the tough-mindedness that
often is needed in personal selling
Ask for the Order More Than Once
● Don’t give up after one no
● Every no brings you closer to a yes
VERBAL CLUES
● Questions One of the least subtle buying signals is the question
● Recognitions A recognition is any positive statement concerning your product or some
factor related to the sale, such as credit terms or delivery date
● Requirements Sometimes, customers outline a condition that must be met before they
can buy.
NONVERBAL CLUES
● body movement, facial expression, and tone of voice
● hard to detect
● special concession close offers the buyer an extra incentive for acting immediately
Multiple Options Close
● when dealing with the price-conscious transactional buyer
● allow the person to examine several different options, and try to assess the degree of
interest in each one
Balance Sheet Close
● balance sheet close appeals to customers who are having difficulty making a decision
even though they have been given plenty of information
Management Close
● involve management to make prospects feel your whole company’s resources will be
available to support the customer
Impending Event Close
● impending event close, also known as the positive/negative technique, involves making
positive use of a negative point
● need to have a good relationship with your prospects to make the method work
Combination Closes
● Combine a bunch of closing methods together
Adapting to the Customer’s Communication Style
DIRECTOR
● Display confidence, persistence, and determination
EMOTIVE
● Maintain good eye contact and be a good listener.
SUPPORTIVE
● understand their perceived risks so you can reassure them before asking for a buying
decision.
● Patience is important.
REFLECTIVE
● Review important factual information
● Never pressure
Confirmation step – reassurance after the sale has been closed to reduce buyer’s remorse
● compliment on wise choice
● offer appreciation
● ask for referral
and to build emotional loyalty through value. A sales organization that can develop a reputation
for servicing each sale (Figure 15.1) is sought out by customers who want a long-term partner to
help them with their buying needs. Satisfied customers represent an “auxiliary” sales force—a
group of people who recommend customer-driven organizations to others.
Repeat sales come after the supplier demonstrates the ability to add value in various ways. This
value may take the form of timely delivery, superior installation, accurate invoicing, technical
know-how, social contacts, or something else that is important to the customer. Taking the
customer’s point of view and acting in the customer’s interest, often described as customer
advocacy, is a major factor underlying repeat business
They buy the expectations of benefits you promised. Once the customer buys your product,
expectations increase. Levitt points out that after the sale is closed, the buyer’s attitude
changes. The customer expects the salesperson to remember the purchase as a favor
bestowed on him by the buyer. Increased customer expectations, after the sale is closed,
require a strategic plan for servicing the sale. Certain aspects of the relationship, product, and
customer strategies can have a positive influence on the customer’s heightened expectations.
“Customers are enormously punishing when companies don’t meet their expectations.”
Financial institutions, public utilities, airlines, retail stores, restaurants, manufacturers, and
wholesalers face the problem of gaining and retaining the patronage of clients and customers.
These companies realize that keeping a customer happy is a winning strategy. To regain a lost
customer can be four to five times more expensive than keeping a current customer satisfied.
Inducements. This service behavior is aimed at personalizing the relationship with the
customer. Some
service behaviors provide the customer with an incentive, or an inducement, for maintaining the
relationship with the salesperson. Becoming genuinely interested in the customer, talking in
terms
of the customer’s interests, and doing special favors can strengthen the relationship with the
customer.
Empathy. Empathy is one of those high-touch abilities that mark the fault line between
salespeople who are highly productive and those who are average or below average in terms of
productivity.
Computer-Based Systems
MAKE CREDIT ARRANGEMENTS: Credit has become a common way to finance purchases.
Closing the sale often depends on your ability to develop and present attractive credit plans to
the customer. Even if you do not get directly involved in the firm’s credit and collection activities,
you must be familiar with how the company handles these matters. Salespeople need to
establish a relationship with the credit department and learn how credit analysts make their
decisions.
SCHEDULE DELIVERIES: Many organizations are adding value with on-time deliveries. A late
delivery can be a problem for both the supplier and the customer. To illustrate, let us assume
that
the supplier is a manufacturer of small appliances and the customer is a department store
chain. A late delivery may mean lost sales due to out-of-stock conditions, cancellation of the
order by the department store, or loss of future sales.
Customer follow-up methods usually have two major objectives. One is to express appreciation
for the purchase and, thus, enhance the relationship established during the sales presentation.
You no doubt thanked the customer at the time the sale was closed, but appreciation should be
expressed again a few days later. The second purpose of the follow-up is to determine whether
the customer is satisfied with the purchase. Both of these methods can strengthen the
buyer–seller relationship and build a partnership that results in additional sales.
PERSONAL VISIT This is usually the most costly follow-up method, but it may produce the best
results. It is the only strategy that allows face-to-face, two-way communication. When you take
time to make a personal visit, the customer knows that you really care.
Use the personal follow-up to keep the customer informed of new developments, new products,
or new applications. Personal visits provide a wonderful opportunity to engage in value
reinforcement. Value reinforcement means getting credit for the value you create for the
customer.
TELEPHONE CALL The telephone provides a quick and efficient way to follow up a sale.
E-MAIL MESSAGE In many cases it is a lot quicker to send an e-mail than to make a phone
call
CALL REPORT The call report is a form that serves as a communications link with people who
can assist with customer service. The format varies, but generally it is a simple form with only
four or five spaces.
Personal selling is the process of identifying and filling the customer’s needs. As the
salesperson learns more about the customer and establishes a relationship based on trust and
mutual respect, opportunities for expansion selling will arise. Expansion selling can take three
forms: full-line selling, cross-selling, and upselling.
FULL-LINE SELLING Full-line selling, sometimes called suggestion selling, is the process of
recommending products or services that are related to the main item sold to the customer. The
recommendation is made when, in the salesperson’s judgment, the product or service can
provide
additional satisfaction.
Customers may view full-line selling as a form of value-added service when it is presented
correctly. There is a right way and a wrong way to make recommendations. Some guidelines to
follow include:
CROSS-SELLING We have seen an increase in the use of cross-selling to grow sales volume.
Cross-selling involves selling products that are not directly associated with products that you
have sold to an established customer. Salespeople who have a good understanding of the
customer’s needs and have earned the customer’s respect will face less resistance when
recommending a product or service. To achieve success with cross-selling, you need to use
survey questions and probing questions
A general survey question such as “Can you tell me more about your expansion plans?”
A WORD OF CAUTION When you are dealing with major or minor customer service problems
and an apology is necessary, do not use e-mail. When a minor problem surfaces, call the
customer personally. Do not delegate this task to someone else in your organization. If you
need to apologize for a major problem that has occurred, meet with the customer in person.
Schedule the meeting as soon as possible.
Improving the management of both time and territory is a high-priority concern in the field of
selling
Time Management
Increase sales volume in two major ways:
1. improve selling effectiveness
2. more time in face-to-face selling situations
You can also save time with meetings in cyberspace and other methods of communication
(such as email, faxing, and etc.)
Territory Management
sales territory is the geographic area where prospects and customers reside
- common approach is to establish a territory on the basis of classes of customer/ sales
potential
Objective: to increase actual selling by reducing time spent traveling between accounts
and time spent waiting to see customers
a. Obtain or create a map of your territory, and mark the location of current
accounts
b. Organize territory into smaller zones
c. Develop a routing plan for a specific period of time
d. Develop a schedule that accommodates your customers’ needs
e. Think ahead, and establish one or more tentative calls in case you have some
extra time
f. Decide how frequently to call on the basis of sales potential (80/20 rule: 80% of
time call most productive customer, 20% on smaller accounts)
Record Management
Records kept by Sales People are:
- Customer/ Prospect Records
- Call Reports (aka. activity reports)
- Expense Records
- Sales Records
Stress Management
Stress refers to two simultaneous events: an external stimulus (called a stressor) and the
physical and emotional responses to that stimulus (anxiety, fear, muscle tension, surging heart
rate, and so on)
Sales management is the process of planning, implementing, and controlling the personal
selling function
● Managing the sales force is an external management function (bringing order and
revenue from outside the company)
● requires coordination and cooperation with almost every internal department
Structure: set of written and unspoken policies, practices, and expectations that surround the
job of the salesperson (example: job descriptions, territory definitions, call reports, and sales
process definitions)
Sales manager who demonstrate a good amount of consideration is most likely to have
relationships with their salespeople characterized by mutual trust, respect for salespeople’s
ideas, and consideration for their feelings.
Situational Leadership: leadership approach is based on the theory that the most successful
leadership occurs when the leader’s style matches the situation
● Need to have character which is composed of your personal standards of behavior,
including your honesty, integrity, and moral strength.
Coaching is an interpersonal process between the sales manager and the salesperson in which
the manager helps the salesperson improve performance in a specific area
1. helping the salesperson recognize the need to improve his or her performance a
2. developing the salesperson’s commitment to improve performance
Internal motivation is an intrinsic reward that occurs when a duty or task is performed
External motivation is an action taken by another person that involves rewards or other forms
of reinforcement that cause the worker to behave in ways to ensure receipt of the award (cash
bonuses)
Compensation plans for salespeople combine direct monetary payments (salary and
commissions) and indirect monetary payments such as paid vacations, pensions, and insurance
plans.