Sales Training Test 2 OLPD 3424
When to answer questions
-Anticipate and forestall objections - stay ahead of the curve. Put answers to anticipated questions in your presentation -Postpone the answer until later in the presentation - when you plan to cover that point later in presentation. Answering early could disrupt the flow of presentation. -Answer it immediately when it is raised - all should be answered immediately unless there is a logical reason to postpone them. Prevents from festering in prospects mind -Do not answer an excuse - objections have no relevance to your discussion. Suggest you will answer the excuse at the end
Why do objections occur
-Because there are doubts or unanswered questions in the mind of the prospect -Because the prospect wants to buy or is interested in buying, but needs clarification, wants a better deal, or must have a third party approval -Because the prospect does not want to buy
Closed end & Open end questions
Closed-end: limited number of answers, easy to answer, used to get customer feedback Open-ended: designed to stimulate prospects thinking, how/what, no structured alternatives for answers
Describe the types of evidence that may be used to back up a claim
Demonstrations - show the product being used Testimonials - past satisfied customers supporting you and your product Facts and statistics - manufacturers ratings Samples - gives the prospect something concrete to use as the basis of decision making Examples or case histories - presents satisfaction of other clients and customers
What tactic is used as a transition from the approach into needs discovery
Establish a clear agenda
How can a novice salesperson prevent a memorized sales presentation from sounding memorized?
Internalize the presentation. Practice it so much until it becomes natural
How to get the customer involved
Involve the customer in the presentation setup Involve the customer in the product demonstration Involve the customer (prospect) while explaining a service Involve the customer with ideas and questions
What is the purpose of reassurance in connection with the close
It shows the prospect that you have confidence that your product or service will help solve their problem and benefit them
Discuss the importance of service as an ongoing activity
Keeping up with the customers and keeping engaged with them is what keeps them from leaving and buying from your competitors
What kinds of questions allow the salesperson to discover the prospect's behavioral style? How does this help the salesperson?
Open-End questions Know how to sell to them to fit their style
Name a minimum of eight sales aids that could be used in a presentation
Organizer, flipchart, letters from existing customers, business cards of existing clients, pictures of clients using the product, pictures of product installations in customers plants or offices, charts, graphs
What self-prepared visuals could be used by a salesperson selling a landscaping service
Organizer, pictures of places that have already been landscaped, letters and business cards from existing clients
Recognizing Verbal Buying Signals (Clues)
Questions Recognitions (Positive Feedback) Requirements Seeks other opinions
What are "Moments of Truth"
every encounter a company has with customers that make them aware of the company service quality
3 areas of customer service
follow through follow up expansion selling
Benefits of Customer Service
keep customers
SPIN
s - situation questions (find out customers situation) p - problem questions (explore needs, difficulties, dissatisfactions) i - implication questions (build up magnitude of problem so it seems serious to the prospect) n - need-payoff questions (get the customer to tell you the benefits our solution offers)
Demonstration
show the product being used
Define approach
the first contact with the prospect
what is a Buying motive
the reason why the customer purchases the goods
Value Proposition
the set of key benefits & values that the company promises to deliver to satisfy needs
Objectives of using questions
to figure out the problem and how you can best help the prospect
People buy expectations
value proposition = clients expectations need to exceed their expectations
Factors of first impressions
visual factors (look professional) organization and professional habits building rapport physical actions attitude
examples of service after the sale
• Give customers more than the demand, more than they expect, and more than you feel they deserve • Offer to pick up or drop off goods • Give a gift as a thank you, the thought is appreciated • Follow up to see how the product/service is working • Provide customer response cards to get their feedback and it gives them the opportunity to voice their opinion • Prompt delivery time • Sell customers more of what youre already selling to them (upgrades, enhancements, additional products (cross-selling), newer versions (up-selling)) • Rewards programs • Stay informed, make phone calls, determine contact frequency, send mail
What are components of nonverbal language
• Grooming • Clothing • Accessories • Posture • Tone of voice Time and space aspects
What are the guidelines for an effective handshake
• Maintain eye contact for the duration of the handshake • Wait for the prospect to initiate the handshake • Carry a handkerchief and powder if you have sweaty hands • Apply firm, consistent pressure on the hand and avoid limp wristed, wet fish, or bone crusher handshakes Hands should meet at an equal distance between you and the prospect in a vertical position. If you twist your hand on top, it suggests you dominate and if you twist on bottom then you are signaling a submissive nature.
What factors determine a salesperson's ability to formulate the right questions
• Plan your questions in sequence to gain info in a logical order • Predict beforehand all the possible answers to each question so that you are never left wondering what to do next • Prepare a smooth transition from every possible answer into the next question
Techniques in handling objections (PPT)
-Feel, Felt, Found - I can understand how you feel... I have had other customers who felt the same way until they found out... -Compensation or Counterbalance Method - admit the disadvantage but then offer a benefit that overshadows the disadvantage -Ask "Why?" or a Specific Question - separates excuses from real objections -Deny the Objection - the prospect is wrong. Use with caution, don't want to insult them and lose the sale. -Boomerang Method - allows you to agree with prospect yet show them that their objections need not prevent a purchase. -Curiosity Method - answer objections with a question of your own -Deflection Method - acknowledge the objection and then move on
What to do when the buyer says No
-Make sure the deal is really dead. -Review chain of events. -Try to interview client. -Stay in touch
Types of assessment criteria
-Quantitive: Sales volume in dollars Sales compared with last year Volume by product or line Number of new accounts Amount of new account sales Net profit on each account Number of customer calls made -Qualitative: Attitude Product knowledge Communication skills Personal experience Customer goodwill generated Selling skills Initiative Team collaboration
What to do when the buyer says Yes
-Reassure customer (how??) -Confirm sale and partnership (go over details) -Reduce buyer's remorse—forms of regret, fear, anxiety about sale -Compliment buyer on wise decision (dumb) -Thank customer for order -Ask for referrals. Earning a referral is harder than earning sales. (not right away) -Provide after-sales service
Compensation plans
-Straight commission Commission figured as a percentage of sales volume Advantages and disadvantages -Straight salary Gives management the greatest control Not a great motivator for some people -Combination plans Salary (or draw) + Commission Salary + Bonus Salary + Commission + Bonus Commission + Bonus
Types of Closes (PPT)
-The Direct Close: clarity and simplicity, straightforward manner, Highly effective when salesperson has earned the customer's respect -Trial Close: "If we can arrange a August 1 delivery - would that be satisfactory" -Summary-of-Benefits Close: Summarize all the benefits vs. the costs and asked for the sale -Assumptive Close: Allows the salesperson (when confident) to verbalize the assumption to see if it's correct -Special concession close: Offers the buyer an extra incentive for acting immediately -MULTIPLE OPTIONS CLOSE: Gives the buyer multiple viable options -Balance Sheet Close: "Reasons for Buying" and "Remaining Questions." Helps find out what's holding the prospect back. List pros & cons of buying -MANAGEMENT CLOSE: Bring in your upper management to assist in negotiations and close -Minor Point Close: Focuses the buyer on a small element of the decision, "what color do you prefer" -Trial Order Close: asking the prospect for a trial order with no obligation (risk). You either guarantee the money back, or provide the product free for a set amount of time. -cost of ownership Close: this technique focuses on the long term total cost of ownership. -COMBINATION CLOSE: Using two or more closing methods
Types of questions
-amplification questions -internal summary questions -getting agreement on a problem questions
Weaknesses of first impressions
-basked on feelings and emotions -behavior traits don't show up right away -prospect may deliberately control behavior and allow you to only see chosen personality traits -an event immediately preceding the interview may strongly influence the prospects current behavior
Advantages of amplification questions
-encourage prospect to continue to provide revealing info -allows salesperson to rephrase what prospect appears to have extended -invites prospect to expand or clarify -narrows down generalizations and clears ambiguities
Persistence
48% of salespersons quit after 1 contact 73% of salespersons quit after 2 contacts 85% of salespersons quit after 3 contacts 90% of salespersons quit after 4 contacts Those (10%) who go on past the 4th contact - end up with 80% of the business
80/20 Rule
80 percent of time spent calling on most productive (potential) customers 20 percent on prospects and smaller accounts
Costs of stress
80% of all modern diseases have their origins in stress Costs in absenteeism in USA = cost of $6.2 Billion
Recognizing Nonverbal Buying Signals (Clues)
CHEF C: cheek or chin - touching your cheek or chin signals gratification, tightened jaw muscles and covered mouths suggest they are not receptive of what you have to say H: hands - open, relaxed, and upward facing hands mean they may be ready to buy. Rubbing palms together signals they are already assuming ownership. Steeple hands indicate confidence and superiority. Fidgeting or fists signal skeptical or irritated. E: eye contact - eye contact means they are paying attention. Dilated pupils means relaxation. Rolling or squinting means irritation or confusion. Raised eyebrow means they don't believe you. Rate of blinks can indicate anger or excitement. F: friendly prospects - smiling, relaxed, and engaged means you earned their trust Facial expression changes Prospect becomes more relaxed (friendly) Prospect nods agreement Leans toward you Examines product and/or literature intently
External & Internal types of stressors
External: Physical Environment, Social Interaction, Organizational, Major Life Events, Daily Hassles Internal: Lifestyle choices, Negative self - talk, Mind Traps, Personality traits
Why do salespersons dread the close
Fear of rejection, think "I am personally worthless"
Features vs. Benefits
Feature - the tangible and intangible qualities of the product or service you sell Benefits - the value or worth that the user derives from the product or service
Guidelines for closing the sale
Focus on dominant buying motives Negotiate tough points before attempting the close Avoid surprises at close Display self-confidence at close (Believe) Ask for order more than once Recognize closing clues Longer selling cycles require multiple commitments
Expansion Selling
Full-line selling Recommending products & services related to the main item sold. Cross-selling Selling products or services not directly related to the previously sold item. Up-selling Effort to sell better quality or newer version of product.
Is prospecting for new customers or servicing existing ones more important? Justify you answer
I think that servicing existing customers is much more important than prospecting new customers. When you are prospecting, you don't even know if they are going to buy from you or not. But with existing customers, if treated well, there is a very high chance that they will buy from you again. They say that 65% of sales comes from returning customers
Benefits of demonstration
Improved communication and retention Proof of buyer benefits (evidence to support claims) Feeling of ownership
What are the 6 steps for overcoming buyer concerns
Listen carefully and hear the prospect out Confirm your understanding of the objection Acknowledge the prospects point of view Select a specific technique Answer the objection Attempt to close
Follow Through
Make credit arrangements Schedule deliveries Be present during delivery Monitor installation Offer training on use or care Make good on your promises! NEED TRUST
Know what sales managers do - expand
Manages (organizes) sales staff (creates territories) Recruits Trains Budgets Develops compensation plans Grades sales force productivity Motivates sales staff
Timing is crucial in closing. Is attempting a close before the prospect is ready more harmful than trying to close past the critical point?
No, closing past the point is more harmful
How can an objection be considered a buying signal?
Offering an objection is another way for the prospect to say, "Here are my conditions for buying" or "I want to buy as soon as you answer a few more questions or reassure me that buying is the smart thing to do". It gives you a chance to figure out what the prospect is thinking
Planning your time
Plan about 70% of your time Leave 30% for the unexpected
Causes of Customer Attrition (why do you lose customers)
Poor service: 50-70% Product dissatisfaction: 12-15% Price: 10-15%
Objection prevention - how?
Prevent objections by discussing them in your presentation before the prospect has a chance to voice them
Dealing with price concerns. 4 methods.
Price Breakdown - break price down into weekly or monthly payments and compare it to how the customer normally spends extra money Presumption of Exclusivity - stress features that are exclusively yours compared to your competitors when the price is too high Comparison - compare the quality of your product to that of the prospects company. Make sure you have facts to substantiate your claims Sell Down - present the best, most comprehensive product or service first then offer lower priced options
steps in the sales process (cycle)
Prospecting PreApproach Approach Needs Discovery Presentation Handling Objections Closing the Sale Customer Service After the Sale
Dealing with rejection (Tactics)
Remind yourself that you're not alone, forgive yourself, give yourself a peptalk, refuse to give up, remember you are important because of who you are not what you do, engage in positive self talk, positively anticipate rejection and it will not overwhelm you, broaden your definition of success, commit to routinely attracting more customers than you need
What is meant by value added in connection with selling?
Saving the customer time, if they are loyal they will continue to buy and may even refer to others, having better than expected service
unit of conviction (NEED TO KNOW)
concise, carefully prepared "mini-presentations" used as building blocks to construct the info you present
What is stress
Stress is the reaction people have to excessive pressures or other types of demand placed upon them. It arises when they worry that they can't cope S = P > R (pressure>resource)
Types of objections
The Stall or Put Off - prospects are trying to avoid making a decision, shouldn't happen if they were qualified properly. The Searcher - hidden request for more info. Prospect wants to be convinced that buying is the right thing to do even thought they have pretty much already decided they want to buy. The Hidden Objective - hidden problems or unspoken hesitations. Prospect refuses to let you know the real concern. The Stopper - an objection to which no satisfactory solution can be found
Transitional Phrases or Bridge Statements
connect features to benefits and vice versa
Who should control the needs assessment phase of the appointment? How do you maintain control?
The prospect. They don't like to be told that they have a problem. Maintain control by asking the right questions to make them realize that they have a problem that you can help them solve.
Why do prospects naturally say no when a close is attempted
There is usually a lot of risk involved in making the decision
Why get the customer involved
They tend to buy nothing when they are uninvolved
Follow up
To express appreciation & to enhance the relationship To determine if customer is satisfied or are they having problem
Why territory management
To obtain thorough coverage of the market. To establish each salesperson's responsibilities. To evaluate performance. To improve customer relations. To reduce sales expense. To allow better matching of salesperson to customer's needs. To benefit both salespeople and the company
Complainers vs. Non-complainers
Unhappy customers will tell 9 to 10 other people. Happy customers only tell 3 to 4
Why time management
We all have the same amount of time It depends on you how effectively you use it! It is about prioritizing. It is about vision. It is about knowledge
Selling Tools
anything you can use to sell your product
Amplification questions
ask prospect to expand on an answer, encourages prospect to continue talking 4 types: double-check, nonverbal gestures, silence, continuation questions
What is the purpose of open ended questions
• Allow the prospect to move in any direction • To stimulate the prospects thinking and increase dialogue • Help determine dominant buying motives (rational or emotional) • Uncover the social or behavioral style of the prospect
Ways to improve listening skills
• Avoid prejudgment • Be patient • Take notes • Reinforce Capitalize on speed of thought
Describe some specific servicing activities that could be used to win back a lost customer
• Be genuine in your efforts • Be proactive (anticipate further problems/needs) • Communicate thoroughly and frequently • Go the extra mile to do what's not expected • Create a memorable experience Be professional
Types of Approaches (9)
• Self-Introduction Approach o Weakest if used alone • Consumer-Benefit Approach o Gives the prospect a reason to listen. Should appeal to their dominant buying motive. • Curiosity Approach o Ask questions that the solutions apply to your product. • Question Approach o Suggests your interest in the prospect's problems. Establishes 2 way communication • Qualifying Question Approach o Seeks commitment from prospect, consider buying your product • Compliment Approach o Effective if used properly. Offer compliments with empathy, warmth, and sincerity. Have sincere interest. • Referral Approach o Establishes leverage by borrowing the influence of someone the prospect trusts and respects. Enhances credibility. • Educational Approach o Presentation is less of a sales pitch and more of an educational lesson for the prospect. Information is researched very thoroughly. • Product Approach o Handling the product to produce a positive reaction. Provides visible image of product.
Approach objectives
• To make a favorable or positive impression on the prospect • To gain the prospects undivided attentions • To develop positive interest in your proposition • To lead smoothly into the need discovery phase of the interview
List the guidelines for a good first impression
• Visual Factors o Don't be messy looking o Nonverbal communication - body language and clothing o Don't wear things that advertise your membership in a specific organization (they might not like that organization) • Organization and Professional Habits o Be prompt/early o Present clear agenda. State purpose right away. Don't waste their time. o Be prepared with as much info about prospect as possible. (individual and company) • Building Rapport o Pronounce name correctly o Make compliments specific and of personal interest o Respect their personal space o Look for common ground (mutual friends, religious or civic groups, similar hobbies). • Physical Actions o Shake hands, maintain eye contact, greet warmly. Don't say "How are you?" o Refrain from personal habits (smoking, chewing gum) and from using careless language that some may find offensive • Attitude Be enthusiastic. Enthusiasm is infectious.