The
Consultant
In a managed consultancy selling program, the sales
person's role changes (more or less) to a consultant. They tend to regard themselves
as the manager of their own personal service business, treating the accounts as
clients. Obviously the objective is still to maximize the profitable operation
of the business.
But as
a business manager, the sales person is concerned with the sum total of the client's
needs, using her or his own expertise.
Confidential
It
is vital to demonstrate that everything you see and hear will remain confidential.
Always consider the confidentiality of your client as paramount. How
many times have you heard people chatting away about highly confidential matters
in such circumstances as cafes and elevators?
Organize
the Buyer's Decision Making
Check that you have used product/service
and prospect knowledge to help the buyer to make a decision soundly on a step-by-step
basis. Don't assume that the
prospect will expect these benefits or even know about them. Here
are ten points that might be followed: -
Show that you understand the clients history. Their attitudes will be closely
linked to past experiences.
- Show
that you have discussed their plans and objections and that your offer is in line
with these.
- Demonstrate
how you have taken into account the people on their staff who will actually work
with your offerings.
- Indicate
your knowledge of the decision making team and its levels of influence.
- Review
past collaboration with the prospect and their staff. Give dates of meetings and
summarize their purpose. It can be fatal to leave such collaboration to chance
recollection and discussion by the decision making team. The people you met and
convinced might be absent when the final decision count down begins. Emphasize
past successful liaison on earlier projects. If it is a new prospect refer them
to other client success stories.
- Show
that your product is compatible with the prospect's existing products and that
interfaces present no problem. There may be commonalties in maintenance, support.
- The
prospect faces real problems and needs which should be solved by making the correct
choice. Show that you understand them and say that, in your expert opinion, your
offer is ideal for the job. There is nothing worse than a sales person who doesn't
understand your needs.
- The
prospect has to struggle with personal preferences and uncertainties regarding
technical and commercial aspects of the project. Deal with each, and turn them
to your advantage. Show that you know what the prospect is looking for.
- Show
that you know precisely what the prospect intends to use the product for and how
you expect it to perform well.
- The
product ideally should be able to cope with additional or different applications
where these can be foreseen at the time of proposing.
What
we're trying to do is find out what their hot buttons are; the key benefits. Once
we know that, we can present the most appropriate (personalized) benefits. But
we usually need not only to present the benefits but also to justify our promotion
of them.
Expose Key Benefits
The
benefits of your promotion need to leap out and impress the prospect. But of course
benefits will be rated by the prospect in varying degrees of importance and significance.
You need to identify the key benefits, and most sales hinge around a few key factors
in favor of the winner.
Promoting
benefits which the client doesn't actually need also implies they are paying more
than they need to; if you like you are asking them to buy things they don't need.
As early as you can choose which factors are relevant to each particular sale. A
useful technique is the 3+3 strategy. Begin by evaluating every aspect of your
offer (product, price, delivery and support) and choose three factors you think
should most benefit this particular buyer. These factors might be, for example:
your proven past performance as a supplier, your extensive service facilities
in the buyer's location, and your rapid delivery ex-stock. Next,
look carefully at your offer from a different perspective. Choose three worthwhile
factors unlikely to be matched by your main competitors. You might decide, perhaps,
on your proven expertise, high local content, excellent staff. Juggle
these six factors into a priority sequence and eliminate any duplications. Your
job is to get these six factors in front of your prospect like shining stars.
Whatever form your proposal takes, be it written or oral, they have to be clear,
bold and obvious. Be creative
in getting them in front of your client. As the saying goes; a picture is worth
a thousand words.
Multiple Buyers
The
larger the project the more people are involved in the decision making process.
It might be necessary to separate the benefits for various buyers. Accountants
will have different needs to the marketing department. Production and personnel
represent different buying requirements. Whatever
the size of the project, there are two types of benefit; corporate and personal.
Corporate
benefits are those which promise something worthwhile for the organisation which
buys them. Most organisations are striving for economy, efficiency and dominant
image, and typical features supporting these, respectively, include cost advantages
(for example low maintenance), minimum supervision and modern technology. Personal
benefits relate to people's interest in simplicity, security, recognition and
an easy/pleasant life. The most obvious personal benefits are thus enjoyed by
people coming into contact with your product during and after its installation. Bear
in mind that what is good for the company may not be welcomed by its personnel.
There may be a conflict of interests.
Benefits
NOT Features
Benefits
which relate to efficiency, delivery and support are vital. And as we've mentioned
you might well need separate arguments for different interest groups. To be convincing,
you must know about their personal preferences, biases, uncertainties, and objectives.
Every time you guess (or assume), you risk missing the points these people rate
as important. In selling
a system, show the prospect how it will fit into his or her staff hierarchy. Ask
who could have prime responsibility, and who else could be involved.
Many
a firm has won the confidence of the prospective buyer and shown how its products/service
will do the job well-only to end up losing the order. This
is often because the sales staff rested on the capabilities alone, without giving
the prospect sufficient reason to believe that this offer is the best. A common
fault is explaining how the product works-rather than how it best satisfies the
prospect's selection criteria. Technical wizardry rates low until it is converted
into unique benefits that really matter to the prospect.
Competition
As
well as promoting your benefits, you also need be aware of those being promoted
by the competition. Even more important is to promote those benefits, which your
offering has, that distinguish your offer from the others. There
could be technical innovations, special compatibility with the buyers organisation,
special pricing, or delivery arrangements and special aspects of your support
which no-one is likely to match. But
also remember that your competitors sales staff might not be so well versed on
benefits. In the days when milk was sold in bottles, rather than cartons, one
processing plant cleaned up a huge percentage of the market. They advertised that
they sterilized their bottles, and promoted the health benefits that resulted.
Of course it was a feature all milk processing plants shared; but none of the
competitors bothered to point out the feature. Careful
research about the competition is essential. You can't stand on their shoulders
if you don't know where they are.
Objections
The
Oxford Dictionary defines the word 'objection' as an adverse reason or statement,
an expression of disapproval or dislike. Objections
usually come up when benefits are being explained to the prospect. To the sales
person, an objection or obstacle can be the prospect saying "I am not ready
to buy". The prospect might be afraid of making the wrong decision for various
reasons. Successful sales
staff have learned to welcome objections because they offer clues to the kind
of strategies to employ. Objections provide hints at what the prospect considers
to be the important issues in the proposition. Objections are a normal part of
the selling process, and the professional sales person must learn to use them
to advantage. They are also a positive sign of interest. Probably
the most difficult prospects sit back, listen attentively to your presentations,
nod pleasantly, says nothing and then doesn't buy. It is not until the objections
have been answered (or avoided) to the buyer's satisfaction will a sale be made. It
is vital that the prospect be given the opportunity to raise objections. Sometimes
you have to dig them out. Distinguish
between a legitimate objection (a valid excuse in the prospects mind to not buy)
and an objection based on lack of understanding. Some perceived objections are
simply questions. In fact viewing objections as questions can sometimes simplify
the task of handling them.
Handling Objections
There
are many ways to handle objections. These two simple methods work for most. 1.
Test the validity of the objection using the 'suppose' technique. When
a prospect raises an objection, you can reply with some probing questions. For
example "Obviously you have a reason for asking that. What is the reason?".
Probe until you are confident you clearly understand the objection. Then test
for validity by asking "Suppose we could meet your objection, would you then
decide to favor our proposal?". You'll quickly be able to assess the validity. Don't
waste time and effort trying to answer objections that are of no consequence.
You need to ascertain the valid objections; and once you have they must be answered
in full. All doubts must be eliminated from the buyers mind before a sale eventuates. 2.
Convert genuine objections into a question. By
effectively converting objections into questions you can avoid putting up defensive
barriers and tension. Again don't be afraid to probe. You can't answer a question
unless you understand what it is. Once
you have categorized and recognized a genuine objection it must be handled positively
and effectively.
Answering Objections
You
will be able to handle objections best if you have a thorough knowledge of your
products and service. No amount of skill can make up for a deficiency of information. To
prepare yourself keep a record of common objections or questions, and then establish
the best possible answer or solution to each. Keep this record in writing and
update it regularly. Lets
work through some techniques to deal with some of the more common situations: •
Turn an objection into a reason to buy.
• Allow
the prospect to answer their own objection.
•
Answer objections by explaining them.
• Validate.
•
Deny the objection.
• Let references give the
answer.
• Don't offend.
•
Raise the objections before they are raised.
•
Offer choices. No one can
say which of these techniques can be used in any given situation. Every sales
person should know more objections to a proposition than the prospect, and should
know how to handle each if the need arises. 'No' is a normal selling obstacle,
and a professional salesperson should learn that it might mean any of the following
'Not today', 'Show me more', 'Maybe later', 'I'm too busy now' or 'It will be
too complicated'. Knowing
when to use a technique is a skill that grows with experience and knowledge. The
key is empathy-the ability to read signals and to be sensitive to what is occurring
in the prospect's mind. And to be able to accurately determine the needs of the
prospect.
Price
Resistance
Dealing with price resistance is seen by many sales
staff as one of the most difficult. Price resistance is often an important factor
influencing a buying decision. The resistance is obvious, and must be handled
in a positive manner.
Again
probe to find out what exactly the prospect means when they suggest the price
is too high. Consider the type of person you are dealing with and the manner the
objection is stated. Never
forget that the price of the product or service is not only the cost to the buyer,
but also the value of all the benefits attached. Understand too that most buyers
rarely buy at the lowest price. Their job is to assess the best buy. It is your
job to demonstrate the real or total value of the service or product. Here
are some ways of handling price resistance:
•
Date the prospect's objection.
• Search for weaknesses
in the competitor's price.
• Let the prospect
discuss the price.
• Sell the price (the benefits).
•
Demonstrate price alone might result in a loss.
•
Say it isn't so, justify the price.
• Present
the price in a new light. As
with all objections price resistance is handled successfully if you think the
problem through in advance and plan a constructive response. This needs to be
done once the prospect is qualified, and has authority to buy, (and there is a
clear need in the buyers mind for the product or service). Your job is to prove
that fact.
Discussing
Objections
In dealing with objections be reassured by them being
raised. You're well down the track to a sale once you start hearing objections. Objections
occur naturally in selling. They are not a personal criticism of you or the product
being offered. They represent attempts by the buyer to do his or her job. They
allow the buyer to justify their decision to others within their organisation. And
they deserve to get all the information they require, irrespective of the final
result. A few points might
help: 1. Be prepared; particularly
with price objections. You should have specific facts, figures and arguments ready.
2.
Deal with objections by relating price to value and customer benefits.
3.
Control your reactions. Do not let voice, facial expressions or gestures indicate
you are having difficulty. And treat objections seriously.
4.
Expect to get commitment and make a sale no matter how strong the objection. Your
attitude must reflect competence and confidence.
It
must be expected too that there will always be objections that can't be answered.
It is better to admit you don't know (and commit to finding out) than to being
caught giving the wrong information. And it gives you a good opportunity for a
follow-up letter, and subsequent meeting.
Sometimes
you even have to admit that your company can't meet the need. A gracious retreat
might take courage, but it will result in a positive impression. It also demonstrates
all those good things like honesty, professionalism and ethics.
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