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Summary Selling Today: Partnering to Create Value - Chapter


10 to 17
Selling Skills (Langara College)

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Chapter 10: Adaptive Selling


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

Developing a Presentation Strategy


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

Presentation Strategy 3 prescriptions:


1. Establish objectives for the sales presentation
a. each sales call should have one or more objective
b. common objectives
- collect info of prospect’s needs
- develop, build, sustain relationship w/ decision buyer

2. Develop presale presentation plan needed to meet objectives


a. more organized during presentation to meet objectives

3. Renewing one’s commitment to providing outstanding customer service


a. careful needs analysis
b. correct product selection
c. clear presentations
d. informative demonstrations
e. win-win negotiations
f. service after the sale

Presentation Add Value


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

Planning the Preapproach


● two-part process
● part 1 = Preapproach

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○ prepare presale objectives


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

Establishing Presentation Objectives


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

1) Needs Awareness → “Investigation Stage”


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

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

Team Presentation Strategies


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

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● results in more precise need identification, solution selection, sales presentations


● requires more detail precall plan
● Each team member should:
○ must understand their role
○ share detail info about customer
○ understand consultative sales presentation
○ prepared to add value

● hard to organize + plan


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

Strategies for Selling to a Buying Committee


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

Adaptive Selling: Builds on Four Strategic Areas of Personal Selling


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

Relationship Strategy
● attention to small detail

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● sending email to confirm appointment


● arriving early
● verbal/ nonverbal messages
● behavior and appearance
● customer preferred communication style (find cues to identify cues)

Product Strategy
● learn something new during preapproach
○ helps you identify features that appeal to them
○ able to identify questions they might ask
● product knowledge + customer knowledge = confidence (abe to alter sales approach)

Customer Strategy
● have higher expectations for value-added products + long-term commitments
● focus on understanding customer needs, wants and buying conditions
● requires careful review in prospect database

Developing The Six-Step Presentation Plan


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

Planning the Presentation


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

Six Steps:

Approach ➢ favorable first impression


➢ securing prospect’s attention
➢ developing prospect’s interest

Need Discovery (Ch.11) ➢ ask strategic questions


➢ determine needs
➢ select solution

Presentation (Ch.12) ● select presentation strategy


● create presentation plan
● initiate presentation

Negotiation (Ch.13) ● anticipate buyer concerns


● plan negotiating methods
● initiate win-win negotiations

Close (Ch.14) ● plan appropriate closing methods


● recognize closing clues

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● initiate closing methods

Servicing the Sale (Ch.15) ● follow through


● follow-up calls
● expansion selling

Adapting Presentation Plan


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

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

3 Approach Objectives:
*First 2 steps most important - determines how much influence you have thru out rest of sale
1. Build Rapport
○ accomplished with telephone/ social contact
2. Capture Full Attention with your business contact
3. Transition to Next Stage of Sales Process (need discovery)
○ multi-call presentations = might be another stage

Credibility
● impression people form about you early in sales process
● establish credibility early

Ways to lose Credibility:


● misspelled words/ grammatical errors in email
● arriving late for appointment
● answering phone/ email while with a customer
● failing to keep good eye contact
● acknowledging only certain members of a buying group
● failing to send info to prospect
● being unprepared for sales call

The Telephone Contact


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

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Telesales
● same elements of a traditional sales
● not scripted, not telemarketing

Making an Appointment
1. Plan in advance what you will say
a. written presentation plan as a guide for first few seconds
b. what you say depends on your objectives
c. calendar ready to confirm date, time, place
2. Politely identify yourself and the company you represent
a. friendly tone
b. avoid getting shut down by gatekeepers (receptionist)
3. State purpose of your call and explain how the prospect can benefit from the meeting
a. benefit statements that gets prospect’s attention
b. only enough information to stimulate interest
4. Show respect for their time by telling them how long appointment will take
a. specify a specific date and time
5. Confirm the appointment with a brief note/ email.
a. enclose business card or any printed information for the prospect

Voice Mail
● compelling reason for prospect to call back
● information that would stimulate interest
● similar opening statement during face-to-face
● brief and describes benefits customer can receive
● give best time to reach him, slow + repeat phone number

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

The Social Contact - Building Rapport


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

3 Areas of Conversation for Social Contact:

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1. Comments about here and now


2. Compliments
3. Mutual acquaintances or interests

Guidelines for Good Social Contact:


1. Prepare for the social contact
○ conduct background check on prospect
2. Initiate social contact
○ open-ended opening comments
○ nonverbal communication (enthusiastic + friendly)
3. Respond to customer conversations
○ acknowledge verbal + nonverbally
4. Keep the social contact focused on the customer
○ encourage them to talk about themselves

The Business Contact


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

Converting The Buyer’s Attention And Arousing Interest


● consultative selling = question/ survey used the most
● approaches can be combined
Agenda Approach
● thank them for time meeting + review your goals for the meeting
● works best for mult-call sales
eg) “Thank you for meeting with me this morning. I would like to accomplish 3 things during the
time you have given me”

Product Demonstration Approach


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

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

Customer Benefit Approach


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

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

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

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

Premium Approach
● giving prospect free sample
● for cosmetics

Coping with Sales Call Reluctance


● fear of making initial contact is one of biggest obstacles

Sales call reluctance


- thoughts, feelings, behavioral patterns that limit what you can accomplish
- caused by,
● fear of taking risks
● fear of group presentation
● lack of self-confidence
● fear of rejection

- suggestions for dealing with it:


● be optimistic about the outcome of initial contact
○ double win, value-adding approach
● practice the approach
● recognize that it's normal to feel anxious
● develop deeper commitment to your goals

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

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● if possible, use referral

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Chapter 11 - Consultative Questioning Strategy


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

Consultative Sales Process Adds Value


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

1. Increased Customer Satisfaction


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

2. More Sales Closed


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

3. Fewer Order Cancellations/ Returns


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

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Four Part Need-Satisfaction Model


Need Selection Of Need Serving the
Discovery the Solution Satisfaction Sale
emphasis on a pivotal point through build repeat
questions informing, business
persuading,
reminding
emphasis on
statements

Part 1 - Need Discovery


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

Part 2 - Selection of Solution


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

Part 3 – Need Satisfaction through Informing, Persuading, Reminding


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

Part 4 – Servicing the Sale


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

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Creating Value With Need Discovery


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

Need Discovery - Asking Questions

● Type/ timing of questions determines if you create value


● Enlighten customers needs and solutions
Two Selling Models:

1. The Spin Selling Model (strategic selling era)


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

2. Personal Selling Skills Model (consultative selling era)


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

The 4-Part Consultative Questioning Strategy


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

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1. Survey Q’s Reveal Customer’s Problems


● Survey Q’s -Info gathering about customer’s existing situation/ problem
● General Survey Q’s - early in sales presentation to discover facts about existing situation
eg) Tell me about the challenges you are facing in the area of data storage?

● Specific Survey Q’s (problem Q’s) gives prospect chance to describe a problem in more detail
eg) How do you feel about installing another server to your system?

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

2. Probing Q’s Reveal Customer’s Pain


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

● Helps gain mutual understanding WHY a problem is important


● Successful probing Q’s lead to customer opening up and sharing ideas

3. Confirmation Q’s Reveal Mutual Understanding


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

● Buying conditions - qualifications/ conditions that must be fulfilled to close a sale


○ Salesperson must confirm each condition
● Summary confirmation Q’s - to clarify/ confirm buying conditions
○ Good for re-establishing what was discussed from previous call
eg) Let me begin by going over what we discussed in our last visit….Is that correct?

4. Need-Satisfaction Q’s Reveal Pleasure (pleasure Q’s)


● Moves sale toward commitment/ action by clarifying customer’s problem and build desire for
solution
● Focuses on benefits and desire for a solution
● Helps prospect see how the product can provide a solution

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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?

● Once needs identified, need-satisfaction Q’s can be used as a closing tool

Qualifying to Eliminate Unnecessary Q’s


● Avoid unnecessary Q’s by researching about your prospect
○ Allows salesperson to ask confirmation Q’s
○ Confirmation Q’s can then lead to probing/need-satisfaction Q’s
● Make sure you are speaking to decision-maker
eg) Who, besides yourself, will be responsible for…. ?

Need Discovery - Listening and Acknowledging the Customer’s


Response
Developing Active Listening Skills
● Active Listening - process of sending back to prospect what they meant (in terms of content +
feelings)
○ Intense involvement
○ Listening attitude
○ Verbal and nonverbal messages
● Requires concentration on what you are hearing
● Non-verbal messages to let them know you’re listening
● Feedback to prospect of what you think they meant

3 Things to Develop Active Listening:

1. Focus Your Full Attention


● Messages delivered slower than we listen
○ Therefore we let your minds wander and think ahead
● Staying focus is difficult (involves verbal + nonverbal messages)
● Show you are paying attention
○ Lean forward and nod in agreement
○ Saying “I understand”, “uh-huh”, “okay”
○ Nod and say these phrases SLOWLY (fast = shows you are impatient)
● Listen for the emotion in the message, not just the facts
● Use moments of silence to control flow of information
○ Let customer do most of the talking

2. Paraphrase The Customer’s Meaning


● After customer stops talking, pause for 2 or 3 seconds
● Ask confirmation Q (in own words) of what you think customer meant
● Ensures mutual understanding + builds relationship

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● Use probing/survey Q’s to clarify something

3. Take Notes
● Note taking is important in complex sales
● Information from customer will be important for developing a buying solution

Need Discovery - Establishing Buying Motives


● Q’s, listening, acknowledging → to uncover needs + establish buying motives
● Focus Q’s on determining prospect’s primary reason for buying
● First plan sales call, then face to face to discovery needs
● Discovering needs = creating value for customer

Selecting Solutions that Create Value

● Salesppl sell not just a “product”, its a “solution” to a “problem”


● Be a product expert and provide customized solution
● Selecting solution that satisfy buying motives takes time and effort

Match Benefits with Buying Motives


● People buy products that fulfill a need
● Customer looking for “cluster of satisfaction”
○ from company/ salesperson/ product
● Focus benefits that fit to each “cluster”
○ But only benefits that meet customer needs

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

Make Appropriate Recommendation


3 recommendation strategies:

1. Recommend Solution - Customer Buys Immediately


● select/ recommend during
○ Beginning of sales call
○ During presentation (after need discovery)

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○ Near the end (minor resistance)


● If presentation of products match well with customer needs = immediate buy

2. Recommend Solution - Salesperson Makes Need-Satisfaction Presentation


● Requires presentation of product benefits
○ Includes demonstration + negotiation
● Customer not totally aware of buying problem ∴ solution not understood
● Salesperson needs to carefully define problem + communicate solution to customer

3. Recommend Another Source


● If products do not satisfy customer needs, recommend another source
● Builds integrity and possible long-term partnerships

Need Discovery and the Transactional Buyer


● Fundamentals of consultative selling = customized to meet individual needs
● Transactional buyers already know what they want
○ Don't waste time w/ survey Q’s and detailed presentations
○ Most likely want solution that focuses on price and delivery issues
● Transactional = one time value
● Consultative relationship = long-term value

Involving the Prospect in the Need Discovery


● Often 30 mins for sales calls
● Need discovery → prospect has bigger role
● Selecting solution → prospect smaller role
● Need Satisfaction → salesperson doing most of the talking

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Transitioning to the Presentation


● Need discovery/ Product Selection → Need-Satisfaction Presentation Stage (Chapter 12)
● If customer buys immediately, you transition to close and service the sale
● If another source recommended, transition to servicing sale for future sales or referral
● If need-satisfaction presentation needed…..
○ eg) “I would like to point out some of the specific benefits of the solution we have agreed
upon”
● If need-satisfaction presentation in multi-call sales….
○ Start with summary-confirmation Q (closes existing call and opens next call)

REVIEW

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Ch 12 - Creating Value With Sales Demonstration


1. List and describe three types of need-satisfaction presentation strategies
2. Present guidelines for creating consultative presentations that add value
3. Describe the elements of a persuasive strategy
4. Describe the elements of an effective group presentation
5. Develop selling tools that add value to your sales demonstration

Need Satisfaction - Selecting a Presentation Strategy


● After configured a solution for customer -> next select presentation strategy
● Need satisfaction achieved by
○ Informative presentation strategy
○ Persuasive presentation strategy
○ Reminder presentation strategy
○ Creating the presentation plan
○ Initiating the presentation
● Can use a mix of Info/Persuasive/Reminder

Informative Presentation Strategy


● Informative Presentation -Emphasizes clarity, simplicity, directness
○ Welcomed by reflective/ directive communication style customers
● Message clearly understood by customer
● Emphasizes factual information
○ Often taken from technical reports, sales literature, testimonials
● Useful for
○ introducing new
○ complex products
○ services of technical nature
● “Less is more”
○ Salesppl not just providing information
○ Salesppl becoming “business advisor”

Persuasive Presentation Strategy


● Persuasive Presentation influences prospect’s:
○ Beliefs -Behaviour
○ Attitudes -Encourage buyer action
● When a real need for the product exists = persuasive strategy
● Persuasion - communication process of motivating someone to voluntarily do something
○ Not manipulating others
○ Must be given legitimate options

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○ Customer feels good after choosing your option

● Requires transitioning from intellectual emphasizes to emotional appeal


● Buying decision = reason + emotion (balance depends on prospect)
● If done improperly = causes anxiety, fear, distrust

Reminder (Reinforcement) Presentation Strategy


● Reminder Presentation - assumes prospect already been inform/persua presented to
○ they understand basic product features + benefits
● Company products’ lose awareness once promotion stops
● “Missionary” salesppl job to maintain awareness
● Sometimes part of servicing after a sale
● B2B situation = remind repeat customers products you offer
● B2C situation = remind regular customer of additional products/ locations
● Reminding them of maintenance services offered
● Used for previous unsuccessful calls
○ To keep yourself on top of their mind
● When customer ask for price reduction
○ Remind them of the value-added you provide

Guidelines for Creating a Presentation that Adds Value


● Canned Presentation - memorized/ scripted presentation with standard steps
○ Ignores unique needs of each customer
○ Sometimes used for group presentation (since audience will have wide range of needs)
● Planned consultative presentation = salesperson seen as a strategic resource + partner

Adapt the Presentation to Meet the Unique Needs of the Customer


● Each presentation is custom-fitted because each client has unique problems
○ Adjusted to customer needs (mutually identified by you and customer)
● Avoid overly structuring presentations (not personalized) - “depersonalization”
● Precall prep + need discovery = present only what benefits the customer

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Cover 1 Idea at a Time and Use an Appropriate Amount of Detail


● Pace the demonstration so customer is not confused
● 1 idea at a time
○ Make sure they understand each point before moving on
● Not too basic, not too detail
● KISS - Keep it Simple and Straightfoward
● Never make presentation more complex than it needs to be
○ Terms and ideas are familiar with customer

Use Proof Devices to Demonstrate Buyer Benefits


● Most effective way of proving buyer benefit
● Comparing samples = converting features into benefits
● Be ready to prove every claim with test, findings, performance records
Proof Devices
● Proof devices help build trust by enhancing credibility
● Helps build customer’s confidence in the product
● eg) statements, reports, testimonials, customer data

Appeal to As Many Senses as Appropriate


● Sight, hearing, smell, touch, taste (diff senses to attract attention and build desire)
● More than one sense = more informative + persuasive

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Balancing Telling, Showing, and Involvement


● “Tell me, I’ll forget; Show me, I may remember; Involve me, i’ll understand
● Combine show, tell and involve to the prospect
● If not able to demonstrate, brochures and sales literature will help

Demonstration Worksheet
Feature to be Proof Device to be What I Will Say What I or the
Demonstrated Used Customer Will Do

Develop Creative Presentations


● Presenting features/benefits in interesting way = requires creativity
○ Gains attention, increase desire, add value
● Creativity enhanced by capacity for
○ divergent thinking (exploring many possible solutions)
○ willing to take risk

Use Humour in Moderation


● Use in moderation/ appropriately = builds rapport/ long-term relationships
● Never use humour to attack someone or to transition to your close

Choose the Right Setting


● No noise/ interruptions
● eg) hotel conference rooms
● Prospect might be unwilling to go “off premises”

Document the Value Proposition


● Value proposition - set of key benefits and values that salesperson promise to deliver
● Must be to back up claims
● Most effective value proposition :
○ Focus on favorable points of difference btw you and next best alternative
○ Describe the few elements that matter most to your customer

Quantifying the Solution


● Quantifying the Solution -Process of determining if a sales proposal adds value
● Cost of proposal offset by added value = easier to close sale
● Cost-benefit Analysis - listing the cost and savings from the purchase
● Return on Investment (ROI) - 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡𝑠 (𝑠𝑎𝑣𝑖𝑛𝑔𝑠) ÷ 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 × 100

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Check Sales Tools


● Make sure everything is working (stuff used for sales demonstration)
● Be prepared for tech and have back up

Summarize Major Points


● Use summary-confirmation questions from time to time
○ Confirms major points

Guidelines for a Persuasive Presentation Strategy


● Emotion is more vital than logic in persuading

Technical vs Persuasive Communication


Technical Communication Persuasive Communication
- For informative presentation strategy - For persuasive presentation strategy

Impersonal, objective personal , subjective

Intellectual response Emotional response

Emphasizes features Emphasizes benefits

Information-driven Influence-driven

Place Special Emphasis on the Relationship


● Good rapport = open exchange of info
● “People like those who like them”
● Establish bond early by,
○ Finding common interest
○ Praise when appropriate
○ Be trustworthy
● Adapt communication style to customer’s
● Use social media to stay connected with customers

Target Emotional Links and Use Persuasive Vocabulary


● Emotional links - connectors btw your message and the internal emotion of your prospect
○ Increases chances of closing a sale
● Common emotional links:
○ Quality improvement
○ On-time delivery

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○ Increased market share


● Use persuasive words to target emotional links

you advantage new benefits

save money results easy

now positive health gurantee

Sell Specific Benefits and Obtain Customer Reactions


● Ppl do not buy things ; they buy what the things will do for them (benefits)
● Benefits:
○ Ease of operation
○ Greater comfort
○ Security
○ Feelings of confidence
○ Economy
● Feature Benefit Reaction (FBR) approach:
● Convert feature into benefit → then get reaction from them by using confirmation/
Need satisfaction questions

Feature Benefit Question

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

Minimize the Negative Impact of Change


● It is natural for buyers to resist change
● Salesppl should help buyers view change as a positive (how does this benefit them?)

Place Strongest Appeal at the Beginning or End


● Beginning of presentation = gets prospect’s attention
● End of presentation = sets the stage for closing the sale

Use the Power of Association with Metaphors, Stories, and Testimonials


● Association - sharing own experience to help customer understand their own needs

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● 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)

Selling Tools for Effective Demonstration


● Proof devices used in demonstration (sometimes called marketing tools)

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Product and Plant Tours ● Best selling aid is the product


itself (able to see product superiority)
● Plant tours is a good source for
information

Models ● When the product itself is too big


(gives an idea how the product works)
● Includes visualization softwares

Photos, Illustrations, Brochures ● Useful for products that are very


visual

Portfolios ● A portable case or loose-leaf


binder that contains wide variety of proof
devices

Reprints ● Reprint of magazine/ journal


articles that feature your product
● Reprint of a reputable journal =
persuasive

Catalogues ● Shows range of your product line


● Review important features with customer

Graphs, Charts, Test Results ● Used to show change in payroll expense,


ROI….
● Should interpret these to customer
● Test results (eg. JD Power and Associates)

Bound Paper Presentations ● Includes Guarantees, warranties,


customer testimonials

Laptop + Demonstration Software ● Most used by salesppl


● Quickly access different things
● Place orders, look up info, show video

Using Powerpoint
● Use own corporate template, logo, video clips
● Simple, large, bold fonts
● Limit to 15 words per slide

Using Electronic Spreadsheets


● Help answer “what if …” questions

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○ Such as lowering costs or raising prices


● Can be converted into graphs and charts after

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

Rehearse the Presentation


● Movements you make /what you say/ how you say it should be familiar to you
● Rehearse and say words out loud like the prospect was there
● Video tape rehearsal and watch it
○ Watch out for unprofessional words “like”, “you know”
○ Check your pace (too slow/fast?)
○ Do you present info clearly? Convincingly?

Plan for the Dynamic Nature of Selling


● Presentation should be fine-tuned to reflect new info available
● Able to execute strategy instantaneously (react fast)
● Prepared to apply several diff selling skills to meet diff buyer responses:
○ Effective questions
○ Benefit statements
○ Demonstrations
○ Negotiating methods
○ Closing methods

● Different selling skills used for different stages of the Sales Presentation
○ See table below…..i dont think he’ll ask this??

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Chapter 13 - Negotiating Buyer Concerns


1. Describe the principles of formal negotiations as part of the win-win strategy
2. Describe common types of buyer concerns
3. Discuss specific methods of negotiating buyer concerns
4. Outline methods for creating value in formal negotiations
5. Work with buyers who are trained in negotiation

Negotiating Buyer Concerns and Problems


● Buyers look at competitive offers and look for best deals
● Salesppl should anticipate buyers concern
↳ Plan collaborative win-win negotiated solutions (before meeting with customer)

Done Wrong Done Right

● 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

Formal Integrative Negotiation - Part of the Win-Win Relationship


Strategy
● Integrative Negotiation - joint problem solving + trust and rapport = win-win situations
● Strong trust and rapport = partnership to work through customer concerns
● Weak trust and rapport = combative situation (win-lose)
● Negotiation - working to reach an agreement that is mutually satisfactory to buyer+seller
↳ Resolving concerns that prevent from buying
↳ Ability to negotiate = also another way to add value
↳ Win-win relationship for long-term relationship

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Steps for Anticipating + Negotiating Problems

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

Planning for Formal Negotiations


● Professional buyers are well-trained negotiators so need to plan in detail

1. Gather Info Before the Negotiation


● “Exhaustive preparation better than aggressive argument”
● Prepare from both POV’s
○ Identify similarities/ diffs of both sides’ goals
● Negotiation is a info game (more info, the better)

2. Decide Team Versus Individual Negotiations for Seller/Buyer


● Who will be negotiating
● Cross-functional teams (from diff departments)
● Cohesive team = higher payoff/ proft

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3. Understand the Value You’re Offering


● Discover what is utmost important to customer
● Tangibles and intangibles
↳ examples:
↳ expert knowledge
↳ Short-set up times
↳ Seamless integration

4. Determine Your Goals and Financial Objectives


● Best Alternative to Negotiated Agreement (BATNA)
○ What alternatives will be acceptable to you if your negotiation does not suceed
○ Assess both you and your customer’s BATNA
● Zone of Possible Agreement (ZOPA)
○ Space btw seller’s walkaway point and buyer’s highest willingness to pay
↳ lowest offer seller willing to accept

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

6. Review Adaptive Selling Styles


● Understanding human behavior (emotive, directive, supportive, reflective)
● “Do unto others as they want to be done unto”

7. Prepare a Negotiations Worksheet


● Predict and classify possible buyers concern
● Identify most common concerns and how to respond
Worksheet Template
Customer’s Concern Type of Concern Possible Response

Conducting the Negotiation Session


● Use skills learned via book this book
○ Good social contact
○ Asking good questions
○ Listen actively
○ Proof devices
○ Apply methods of negotiations

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Golden Rules of Negotiations

Understanding the Problem ● Understand diff btw misunderstanding and


disagreement
○ Misunderstanding - fail to understand
someone’s point.
○ Disagreement - fail to agree despite you
understand their point
● Listen carefully to understand each other's
needs
● Probing Q’s help understanding

Creating Alternative Solutions ● Validate problem with confirmation questions


○ Shows u are giving them attention
○ Gives u time to think of best possible response
● Best response = offering alternate solution
(logrolling)

Periodically Review ● Summary confirmation question to identify all areas of


Acknowledged Points of agreement
Agreement ● Let's prospect see advantages outweigh disadvantages
● Full attention on remaining disagreements

Do Not Make Concessions Too ● Always try to get something in return


Quickly ● Concessions given away too easily = devalues ur product
● Never let negotiation substitute for good selling

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

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Common Types of Buyer Concerns

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

Product/Service ● Why buyer has doubts about the product


1. Product not well established
↳ Use 3rd party testimonials or test results
2. They’re happy with what they have already
↳ Focus on value preposition (what gives your
product a major disadvantage over old one)
↳ ...or reconfigure + customize to better meet
needs

Source ● Difficult w/ relationship buyer (loyal to existing


partnership)
↳ Avoid negative comments to competitor
1. Work harder to identify problems only ur company can
solve
2. Point out superior benefits of ur company
3. Work on building internal champions (referrals)
4. Try to stay visible and connected
↳ 1 contact w/ prospect = 1 step build relations

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

Price ● Biggest, most common obstacle


● Might be an excuse
● Position ur product with value proposition

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Methods For Negotiating Buyer Concerns

Direct Denial ● Refuting prospect’s opinion (high-risk method)


● Provide misinformed prospects w/ accurate info
● Be firm and sincere but not offensive

Indirect Denial ● When prospect’s concern is completely/ partially correct


● You should bend a little and acknowledge prospect is at
least partially right
● Feel-Felt-Found - “ I know how you feel, others have felt
the same. However, we’ve found that…”
↳ Shows others have overcome same concerns

Questions ● Need-satisfaction Q’s move sales toward commitment +


action + focuses on solution

Superior Benefit ● A benefit that will outweigh customer’s specific


concern
● You should acknowledge the valid concern and
counter with a superior benefit

Demonstration ● If you know your product + competitors well


↳ Let you show advantages of ur own product
↳ Provide additional proof

Trial Offer ● Gives prospect chance to try product w/o purchase


● Usually for new products
● To overcome pre-existing relationships from competitors

3rd Party Testimonial ● Positive experiences from neutral 3rd party


● Never triggers argument

Postpone Method ● Method that delays response that would be better


handled later in sales presentation
● “I would prefer to answer that question once i learn what
features you prefer”

*Combination Method - combining 2 or more methods


Trial Close - concluding the sale w/o prejudicing the opportunity to continue the selling process
eg) “If I can address this final concern of yours, will you buy it?”

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Creating Value During Formal Negotiations


Salesperson challenge = negotiation to sell products based on fair and unique value proposition
not price. (or else product becomes a commodity, no loyalty)

How to Deal with Price Concerns

1. Clarify Price Concerns with Questions


● Determine what they are really saying with specific survey Q’s
● eg) “If you had the budget, would you buy?”

2. Add Value with a Cluster of Satisfaction


● Good product/ salesperson as partner/ reputable company
● Looking beyond price = more value for the dollar
● Customer only see price (tip of iceberg)
↳ Salesperson job to direct attention to the value-added features (rest of the iceberg)
● Emphasis your commitment to customer service after the sale

3. Do Not Make Price Focal Point of Presentation


● Don’t bring up price too early
○ Bring it up after you reviewed features+ benefits

4. Do Not Apologize for the Price


● Mention price in confident straightforward manner
● Convey to customer you believe your price is fair
● Discuss how you can add value

5. Point of Relationship between Price and Quality


● Selling quality = price likely to be secondary in mind
● Point of value-added features that create the difference in price

6. Explain the Difference between Price and Cost


● Price - initial amount buyer pays for product
● Cost - amount buyer pays for product as its used over a period of time
● For products that last a long time (reliable)

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Negotiating Price with a Low-Price Strategy


● Low price strategy = small profit margin with large sales volume
● Transactional buyers interested in price and convenience
↳ You should eliminate features that contribute to a higher price

Discount Strategies:
● Quantity discounts
● Trade discounts
● Seasonal discounts
● Promotional discounts
● Price matching

Working With Buyers Who Are Trained in Negotiation


Budget Limitation Tactic
● Buyer says, “We like your proposal but our budget for this is only ….”
↳ Telling the truth or testing your price?
● Try unbundling features or items to lower the price

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

“Sell Low Now, Make Profits Later” Tactic


● Buyer says, “If you reduce price by…, I’ll give you all future work”

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● 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”

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Chapter 14: Adapting the Close and Confirming the


Partnership
● any closing method that is perceived by the customer as pushy or manipulative will damage
● your chances of building a long-term partnership, even if you do get the sale

● 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?”

Closing the sale involves:


● Plan appropriate closing methods
● Recognize closing clues
● Initiate closing methods

Customers are reluctant to make a commitment to your proposal because…


● Loss of Options – example: Customer have limited cash, accepting your offers mean
they would have to postpone another purchase
● Fear of making a mistake – this can be caused by the lack of trust in the salesperson
● Social or Peer Pressure – their decisions can cause anxieties for them because of the
reaction of others (coworkers, or boss)

Guidelines for closing the sale


Focus on Dominant Buying Motives
● pay close attention to the buyer’s interests
● Focus your closing efforts on the point of greatest interest and give the prospect a
reason for buying (BENEFITS)
Longer Selling Cycles and Incremental Commitments
● large, complex sale = try to achieve incremental commitment throughout the sales
process
● Example: Have short sales presentation but multiple sales presentation with each
presentation moving forward
Negotiating the Tough Points Before Attempting the Close
● Negotiate a win-win solution to the tough points before you attempt to close the sale
● close should be a positive phase of the sales presentation
● Avoid Surprises at the Close
Avoid Surprises at the Close
● A surprise can come as a cost
● Do not let a last-minute surprise damage the relationship and threaten the completion
of a sale
“Tough-Mindedness”—Displaying a High Degree of Self-Confidence at the Close

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● 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

Recognizing Closing Cues


Closing clue is an indication, either verbal or nonverbal, that the prospect is preparing to make
a buying decision

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

Specific Methods for Closing the Sale


● goal is not only to close the sale but also to develop a long-term partnership
Trial Close
● a closing attempt made at an opportune time during the sales presentation to
encourage the customer to reveal readiness or unwillingness to buy
● aka. Minor point close
● After the salesperson presents a feature, converts that feature to a buyer benefit, and
confirms the prospect’s agreement that the benefit is important, it would be
appropriate to use a trial close
Direct Appeal Close
● close involves simply asking for the order in a straightforward manner
● should not be used until the prospect has displayed a definite interest in the product or
service
Assumptive Close
● Aka. Take-it-for-granted close
● asks for a minor decision, assuming that the customer has already decided to buy
● This closing method provides a subtle way to ask for a decision when you are quite
certain the customer has already decided to buy
Summary-of-Benefits Close
● summary-of-benefits close is to reemphasize the value-added benefits that can help
bring about a favorable decision
● aka. Step by step close
Special Concession Close

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● 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

When Buyer says no:


● Make sure the deal is really dead.
● Review the chain of events. (understand what went wrong)
● Interview the client. (get feedback)

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CHAPTER 15: Servicing the Sale and Building the


Partnership

Building Long-Term Partnerships with Customer Service


Progressive marketers are searching for ways to differentiate their service from competitors

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.

Achieving Successive Sales

A successful partnering effort results in successive sales and referrals.

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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

 Satisfied customers represent an “auxiliary” sales force

 Good service  tells six

 Outstanding service  tells twelve

Responding to Increased Postsale Customer Expectations

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.”

 Nitin Nohria, professor & author

 Customers buy expectation of the benefits the salesperson promised

 Buyer expects the salesperson to remember the purchase as a favour

High Cost of Customer Attrition

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.

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Current Developments in Customer Service


Bill Gates, in his book Business @ the Speed of Thought, predicts that in the new millennium
customer service may become the primary value-added function.12 He recognizes that
customer service is the primary method of building and extending the partnership. Customer
service, in its many forms, nourishes the partnership and keeps it alive. Salespeople are in a
unique position to enhance customer satisfaction and trust, the two major contributors to
relationship quality. Recent research indicates that the building process involves five important
service behaviors that are especially important in the context of business-to-business selling.

Diligence. Diligence combines two types of service behaviors: responsiveness and


reliability. In today’s highly competitive, time-starved business environment, salespeople
must provide service in a timely manner.

Information communication. This service behavior involves regularly relaying product


information to the customer in a clear and concise manner. Communicating information must
encompass the entire sales process.

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.

Sportsmanship. This service behavior can be defined as a salesperson’s willingness to

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tolerate setbacks and disappointments without displaying negativism. It means demonstrating


good social judgment and professionalism during all customer interactions.

Computer-Based Systems

Customer-friendly, computer-based systems frequently are used to enhance customer service,


loyalty, and sales growth.16 Computers give both the salesperson and the customer ready
access to information and problem-solving alternatives.

Customer Service Methods That Strengthen


the Partnership
Customer service encompasses all activities that enhance or facilitate the sale and use of one’s
product or service. The skills required to service a sale are different from those required prior to
the sale (Figure 15.2). High-performance sales personnel do not abdicate responsibility for
delivery, installation, warranty interpretation, or other customer service responsibilities. They
continue to strengthen the partnership with follow-through, follow-up, and expansion selling.

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Adding Value with Follow-Through


A major key to an effective customer service strategy is follow-through on assurances and
promises that were part of the sales presentation. Properly managing customer relationships
enhances the value creation during and after the selling process.19 Did your sales presentation
include claims for superior performance; promises of speedy delivery; assistance with credit
arrangements; and guaranteed factory assistance with installation, training, and service?

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

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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.

Preventing Post sale Problems


There are ways to prevent post sale problems. The key is conscientious follow-up to be sure
everything has been handled properly. Get to know the people who operate your shipping and
installation department. They are responsible for getting the right products shipped and installed
on time, and it is important that they understand your customers’ needs. Become
acquainted with people in the credit department. Be sure that they maintain a good, businesslike
relationship with your customers. Schedule regular account reviews to determine the level of
customer satisfaction. The focus of these reviews should be key decision makers. Are there
lingering service-type issues that make you vulnerable to the competition? You want to be
certain there are no open doors for your competitors. If you discover a problem, act quickly to
resolve.

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Adding Value with Customer Follow-Up

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

LETTER OR CARD Written correspondence is an inexpensive and personal form of customer


follow-up.

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.

Adding Value with Expansion Selling

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

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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?”

UPSELLING The effort to sell better-quality products is known as upselling. It is an important


selling method that often adds customer value. Mike Weber, sales manager at Young Electric
Sign Company, offers us two important tips on upselling. First, you need a well-established
relationship with the customer—a relationship built on trust. Second, you need to continuously
qualify the prospect throughout the buying process. As customers tell you more about their
needs, you may see an opportunity to upsell.

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Preplan Your Service Strategy

Partnership-Building Strategies Should Encompass All Key People (THERE IS NOTHING


AT HIS SLIDES ABOUT THAT I DO NOT THINK IT’S IMPORTANT)

Partnering with an Unhappy Customer


We have learned that unhappy customers often do not initiate a verbal or written complaint. This
means that postsale problems may not come to the attention of salespeople or other personnel
within the organization. We also know that unhappy customers do share their negative
experiences with other people. Conflict resolution is another aspect of problem solving important
to the customer–salesperson relationship. To achieve this goal, follow these suggestions.

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1. Give customers every opportunity to disclose their feelings.


When customers do complain, by phone, or in person, encourage them to express all their
anger and frustration. Do not interrupt. Do not become defensive. Do not make any judgments
until you have heard all the facts as the customer sees them. If the customer stops talking, try to
get him or her to talk some more. How you deal with anger is very important. Encourage the
angry customer to vent his or her feelings. By asking questions and listening carefully to the
response, you can encourage the person to discuss the cause of the anger openly.
2. Keep in mind that it does not really matter whether a complaint is real or perceived. If
the customer is upset, you should be polite and sympathetic. Do not yield to the temptation
to say, “You do not really have a problem.” Remember, problems exist when customers
perceive they exist.40
3. Do not alibi. Avoid the temptation to blame the shipping department, the installation
crew, or anyone else associated with your company. Never tear down the company you
work for. The problem has been placed in your hands, and you must accept responsibility
for handling it. “Passing the buck” only leaves the customer with a feeling of helplessness.
4. Politely share with the customer your point of view concerning the problem’s
cause. At least explain what you think happened. The customer deserves an explanation.
At this point a sincere apology is usually appropriate.
5. Decide what action must be taken to remedy the problem. Take action quickly and offer a
value-added atonement. Don’t just do what is expected, but delight the customer by exceeding
his expectations. Winning customer loyalty today means going beyond making it right.

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.

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Chapter 16: Opportunities Management: The Key


to Greater Sales Productivity
Opportunity management
● ability to perceive opportunities and seize them is an important characteristic of high-
achieving salespeople
● should be viewed as a four-dimensional process
1. Time Management
2. Territory Management
3. Record Management
4. Stress Management

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

Time Consuming Activities


Keep a time log of your activities, figure out what activities you can cut, and change your habits

Time Management Methods


- Develop Personal Goals
- Prepare daily to-do lists
- Maintain a planning calendar
- Organize your selling tools

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

Steps to Territory Management


1. Classify all customers
a. Divide territory in a way so that it makes sense
b. Small accounts may make up majority of sales volume
2. Develop a routing and schedule plan

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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)

sales call plan


- proposal is a weekly action plan
- purpose is to ensure efficient and effective account coverage

Record Management
Records kept by Sales People are:
- Customer/ Prospect Records
- Call Reports (aka. activity reports)
- Expense Records
- Sales Records

● Record management allows salespeople to be better organized, and quick accessibility to


information often makes it possible to close more sales and improve customer service
● Record keeping helps maintain perspectives

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)

● negative stress hurts relationships and productivity

Stress can be caused by:


● Trying to figure out ways to meet a sales quota or schedule travel throughout a sales
territory Missed appointments, presentations before large groups, and lack of feedback
concerning your performance

Stress Management Strategies includes:


Develop a stress-free home office
● Have separate phone lines
● Have “work hours”

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● Don’t meet at the home office


Maintain an Optimistic Outlook
● Have a positive attitude
● Visualize success
Practice Healthy Emotional Expression
● Fight or Flight response
o Fight = releasing harsh words or ignoring person
o Flight = running away from problems
(use 5-minute stress buster): 5-minute walk/nap
Maintain a Healthy Lifestyle
● EXCERCISE

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Chapter 17: Management of the Sales Force


“People who rise to the position of sales manager must understand the difference between
leadership and management. Managers who lack certain leadership skills can actually
deteriorate salesperson performance.”

Leadership is the process of inspiring, influencing, and guiding employees to participate in a


common effort
● A series of skills that can be acquired through study and practice

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

MANAGER SHOULD HAVE: STRUCTURE, CONSIDERATION, SITUATIONAL LEADERSHIP

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)

Examples of setting structure:


1. Planning takes place on a regular basis
2. Expectations are clearly communicated
3. Decisions are made promptly and firm
4. Performance of salespeople is appraised regularly

● too much structure can create problems

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.

Examples of having consideration:


1. Regular and effective communication receives a high priority
2. Each salesperson is treated as an individual
3. Good performance is rewarded often

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.

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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

Recruiting and Selecting Salespeople


1. Determined Job Requirements
2. Search applicants from several sources
3. Select Best Qualified Candidate
4. Test new applicant’s skills and personality

Orientation and Training


Let new hires know about policies, etc. and train them on products

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.

5 Basic Compensation Plans


o Straight commission plan
o Commission plan with a draw provision or guaranteed salary
o Commission with a draw or guaranteed salary plus a bonus
o Fixed salary plus bonus
o Straight salary

Accessing Sales Force Productivity


● Is complicated
● sales volume alone does not tell you how much profit or loss you are making on the sales of
each member of the sales force
● comparing a salesperson’s current productivity with the past also can be misleading

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