L4 Sales & Consultative Selling.pdf

Entrepreneurship & Sales LESSON 4 – Sales & Consultative Selling Contents Sales Management Sales Management Components Sales Management Process Effective Sales Management Tactics Sales Stages Consultative Selling Methodology Sales Management Sales Management Is the process of...

Entrepreneurship & Sales LESSON 4 – Sales & Consultative Selling Contents Sales Management Sales Management Components Sales Management Process Effective Sales Management Tactics Sales Stages Consultative Selling Methodology Sales Management Sales Management Is the process of developing, planning, monitoring, and controlling the entire process of selling your company’s goods or services. It also concerns recruiting, training, and supervising your sales force and covers all pre-sales, sales, and post-sales activities. Sales Management Components 1. Strategy Without having a clear strategy your sales efforts will be fruitless. To know what resources and specialists your business may require, you should set up a sales process and plan a series of activities at every stage of your sales funnel or sales pipeline. This can be done for either the whole company or in regard to individual brands, goods, or services. A sales funnel is a powerful analytical tool, if designed with a data-first approach. It describes a single customer’s journey through 5 steps: awareness, interest, consideration, decision, and — the most desired stage for all businesses — purchase. Sales Management Components Sales Management Components 2. Operations A sophisticated strategy isn’t worth a penny without being implemented. You need the team on paper to come true. People are the stumbling block that separates average companies from the best players in the market. It’s not only that sales reps bring you revenue — they are your brand’s ambassadors. Salespeople directly deal with: Lead conversion. They build a bridge between what the client needs and what your company can offer. Business growth. Sales representatives initialize referrals and help build customer loyalty. Client retention. Their connections with customers shouldn’t be under-evaluated. Remember that a 5% increase in retention rates may boost profits by 25%. Sales Management Components 3. Analysis Sales analysis concerns either KPIs and sales metrics. A key point here is to bring actionable insights that can be further used in the sales strategy. The following effectiveness indicators are usually used by most sales managers: Total revenue Revenue growth rate Revenue distribution by sources Revenue distribution by representatives Average conversion rate Sales-to-date Average purchase value Sales Management Process 1. Setting Goals To manage the process, you need to have a sales roadmap. With it, it’s possible to track the reps’ ongoing performance and timely determine whether comprehensive assistance is needed to achieve the goals. 2. Planning and Managing Sales Activities This area of responsibility concerns developing and testing sales activities. Trying out new technologies and approaches is the only way your team can succeed in nurturing customers better than competitors do. Sales Management Process 3. Motivating The Team If you build team members’ competencies, you’ll boost employee retention and increase employee lifetime. Don’t become too experimental, however. Use good old methods of employee retention — the ones that have been tested by generations of managers: Set SMART goals. A never-ending pursuit of unattainable results is exhausting and leads to emotional and professional burnout. Appreciate personal contribution. Gen Z are not the ones who will wait for changes — they want to lead them. If you value talent, be ready to give them enough space for initiative and decision-making. Sales Management Process Build trust. Let each team member see the big picture and go over plans with your people. Share growth-hacking insights, corporate strategic goals, and how the company’s doing overall. If there are some issues — communicate these. Encourage high-performance culture. Cultivate a results-based work environment approach rather than just a work-to-do-work approach. Sales Management Process 4. Evaluating and Reporting For every decision you make or insight you speak, put numbers in front. Use essential software, create sales dashboards, and deliver comprehensive sales reports. Make data integrated and visualize where relevant. Using automation in your sales reporting will prevent: Revenue discrepancy Poor data access Decision-makers being overloaded with irrelevant and outdated information Effective Sales Management Tactics 1. Find the Right People Of course, staffing is a responsibility of the HR department. But for the manager, it’s crucial to translate vision and requirements to future employees to hire the right people. The “right” doesn’t mean “the best”, though. Don’t look for Jack of all trades. Overloaded job descriptions are not effective. Define 2 or 3 key points that are relevant and go ahead hunting future sales reps. Effective Sales Management Tactics 2. Avoid “One-Size-Fits-All” Decisions Whatever you manage, people or processes, avoid oversimplification and too much extrapolation. What works in crisis may not work when the growth starts, and vice versa. Be flexible and an out-of-the-box thinker. 3. Hire Specialists for Different Roles If your business grows, you’ll have to divide responsibilities. One employee can’t combine several roles. As soon as you feel your workers can’t cope with the amount of work and tasks they get — hire more professionals. Effective Sales Management Tactics 4. Contribute to the Growth of Each Sales Representative Best salespeople bring your company the most deals thanks to their experience, personal qualities, luck, or all three at a time. But if the team’s imbalance grows rapidly, you get a lot of deferred risks: Inner tension Loss of motivation Irreplaceable employees. Activity 1 Afterlife Activity Activity Link: https://docs.google.com/forms/d/e/1FAIpQLSex873MGSLU8wzNLir SEpRbENYIACUhLflM9cz4c9JHU9hGNg/viewform?usp=sf_link Sales Stages Sales Stages A business exists to fulfill people’s needs. Nothing happens for a business or for a customer until a sale is completed. Making a sale is all about facilitating a process in which a customer decides to purchase a good or service. Making a sale is not about a salesperson bullying someone into buying something. For a person-to-person sale to take place and for the customer to feel good about the experience, the salesperson should use a six-step selling process. Sales Stages 1. The Pre-Approach: Before a salesperson shows a customer a product, he or she must carefully prepare for the interaction with the customer. This preparation, which includes gathering information about a potential customer, learning about the product(s), and preparing to meet the customer, is called the pre-approach. The pre-approach aims to promote better understanding of both the customer’s needs and the product the salesperson is selling. In a situation in which a salesperson identifies a company to approach about a product or service, the pre-approach entails learning about the business’s history, what the business does, what its mission is, who the business’s competition is, what its concerns are, and what its current needs are. Sales Stages 2. The Approach: The approach is the first personal interaction a salesperson has with a prospective customer in the selling process. This step entails making a favorable impression with the prospect, gaining the prospect’s attention, and establishing rapport. Rapport is a trusting relationship or connection between two people. Without these factors in place, the probability of making a sale is low. Salespeople may know and understand their products, but if they can’t relate well to their customers, the customers will most likely not want the products that are for sale. Sales Stages Take the first step! People are always more at ease when they’re approached by a friendly person. Try using the GNAP technique, combined with a smile and a solid handshake, when you introduce yourself. GNAP stands for greeting, name, affiliation, and purpose. G: Greeting—“Hi!” N: Name—“I’m Dave…” A: Affiliation—“…with ABC Lawnmowers.” P: Purpose—“I hear you’re looking for a new mower that will make your yardwork go faster.” Or “What can I help you with today?” Or “Thanks for your time. When this new mower came on the market, I knew you’d want to see it.” Sales Stages 3. The Presentation: The sales presentation or demonstration is the point in the selling process where the salesperson shares the features, advantages, and benefits of the product. The presentation is the “meat” of the sale. It is also the point in the process where it is vitally important that the salesperson fully understand the product and how it relates and applies to the prospect’s needs. Sales Stages The FAB Selling Method: A Feature is a characteristic of the product. Features typically aren’t the driving factor in a customer’s choosing to buy a product. Examples of features are size, color, quality, payment terms, packaging, price, and warranty. An Advantage describes how a product can be used or will help the buyer. Advantages are what the features provide. Examples include a motor (feature) that requires less fuel to run (advantage) and a programmable sprinkler system (feature) that senses when it is raining and automatically shuts off (advantage). A Benefit helps the customer answer, “What’s in it for me?” and persuades him or her to make the purchase. Put another way, benefits help the customer see how the advantages of the product will meet the customer’s needs. Sales Stages Presentation Tips: 1. Be excited about the product! Enthusiasm carries a strong message about a salesperson’s personal commitment to the product. 2. Relax while selling. This can be easier said than done. But a relaxed salesperson helps a prospect relax and feel better about the product being viewed. 3. Allow the prospect to interact with the product. Let the customer handle it, ride it, wear it, etc. Ask probing questions that help uncover the customer’s experiences, needs, and wants. 4. Observe body language and facial expressions for clues to the prospect’s feelings toward the product. Sales Stages 5. Do not interrupt a customer while he or she is speaking or taking time to think. Limit the choices a prospect sees. Most experts advise showing only three options in one sitting. Too many options may be overwhelming, resulting in a lost sale. 6. Adapt the sales presentation to the prospect. 7. Look for opportunities for the prospect to agree he or she will benefit from owning the product. 8. Follow through on promises. Sales Stages 4. The Objection: After the presentation, and sometimes during the presentation, the customer will ask questions or will make statements about why he or she may not want to purchase the product. A question or statement of this type is called an objection. Objections are a common part of the selling process. Sales Stages Common Objections: 1. Question of value: “I don’t have a need for that,” or “I already have something similar.” 2. Lack of urgency: “I don’t think it’s necessary right now,” or “I need to think about it.” 3. Perception of a lack of quality: “Your competitor has a similar product, and I trust that company more because it’s been around longer,” or “I saw something similar advertised for 15 percent less than you’re asking.” 4. Lack of money to make the purchase: “I’ve already spent my budget,” or “It costs how much?” 5. Conflict with product features: “I don’t like that design,” or “It’s more powerful than I need for my work.” Sales Stages Tips for Working Through an Objection: 1. Handle all objections politely and with interest. The sale is not lost just because the prospect makes an objection! 2. Acknowledge the prospect’s thoughts, and offer new information about the product. 3. Restate the objection so the prospect can hear it aloud. Doing this helps to minimize the objection and allows the prospect to modify the statement to express the objection more accurately. 4. Listen carefully. The objection may actually allow you to see that another product may be a better fit for the customer. Sales Stages 5. The Close: A customer generally doesn’t tell a salesperson straight out of the intention to purchase a product. The salesperson must ask for the sale. The process of asking a prospect for a sale is called closing. Sales Stages Examples of signals that a prospect is ready to purchase the product are: Asking about availability, delivery, and add-on services Asking about pricing and payment options Asking about features or quality Asking questions to learn more about the business Asking questions to review previous portions of the conversation Asking for samples or a repeat of the demonstration Asking about other products the business carries Asking for referrals of customers Sales Stages Seven Techniques to Help Close the Sale: 1. End with a small choice: “Would you like the black or silver model?” or “Can I get the 4- GB or the 8-GB version for you?” 2. End with small “yeses”: “Would you like to see how it handles in packed dirt, too?” or “Wouldn’t this save you several hours every week?” 3. End with a bargain: “This price is in effect for only two more days,” or “This is the last one in our inventory. It’s very possible the item may go on backorder today.” 4. End with a “join the club” invitation: “We’ve sold this model to many people in your current situation,” or “This product has been very popular with people who are running into the same issue you are.” Sales Stages 5. End with a payment method: “Will you be paying by check or credit card today?” or “Whom should I send the invoice to at your office?” 6. End with a test drive: “Why don’t you take it home and test it out?” or “Feel free to test the product out in our demo areas.” 7. End by asking for the sale: “We can get the product shipped to you as soon as you sign the contract,” or “Are you ready to take the product home today?” Sales Stages 6. The Follow-Up: For an in-person sale, especially of a high-dollar item, the salesperson should always follow up to ensure that the customer is satisfied with the purchase and not experiencing any problems. Making the effort to follow up with the customer sends the message that the salesperson and the business care about the customer and his or her experience. It also helps establish a long-term relationship with the customer. Common examples of follow-up activities are a telephone call to the customer to check on how the product is performing, a thank-you note to the customer for the purchase, and a small gift sent on behalf of the company to thank the customer for his or her purchase and loyalty to the business. Activity 2 1. What are the six steps of a sale? 2. What does the pre-approach involve? 3. What are some presentation tips? 4. What are some common objections and appropriate responses? 5. What are some techniques for closing a sale? Consultative Selling Methodology Consultative selling is an investigative approach to sales. Rather than telling prospects what they need, you ask prospects thought-provoking questions that help them identify their own pain points. Ultimately, with a consultative sales approach, prospects will steer themselves into making their best decision. When you have a consultative sales approach, you measure success by the impact you have on customers, the outcomes they’re achieving, and their success. You focus your messaging around this data, rather than your features and benefits. You never treat the customer as a number. Instead, you view yourself as a trusted advisor. Consultative Selling Methodology Here are some steps for Implementing a Consultative Sales Process: Become a trusted authority through active listening and asking better questions Conduct in-depth research to understand your customers Lead the conversation Come up with a tailored solution just for them Consultative Selling Methodology Present Yourself as a Trusted Authority: How do you present yourself as an expert and an authority in your area? 1. Back what you say with evidence 2. Embrace criticism 3. Offer real value using content Consultative Selling Methodology Conduct in-depth Research: Conducting in-depth research regarding your prospect could help you land lucrative deals. As such, you want to unearth as much information about your lead as possible, including: The size of the company The prospect’s target market Their annual turnover or average sales size Number of employees Service offering or typical product What makes your prospect tick Consultative Selling Methodology Lead the Conversation: Before you can meet a prospect, you can prepare a list of generic questions that can help you start the conversation. However, you must be able to think on your feet and ask relevant questions emanating from the prospect’s responses. If your product is within the prospects’ price range Have the prospects shown interest in your product? Are they satisfied with their current vendor? What is the biggest challenge the prospect is facing in their business at the moment? Consultative Selling vs. Traditional Sales Techniques Consultative Selling Methodology Building a tailored solution is the last step towards becoming a successful consultative seller. A tailored solution means that it is specifically customized to that customer and their exact needs, rather than a one-size-fits-all cookie cutter solution. After you understand the prospect’s problems, immerse yourself in the challenge, and then show your product in action. Additional Reading SALES MANAGEMENT: AN OVERVIEW Dr. Surinder Singh Kundu Insert text Q&A Session