Sales Training

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. In the UK, 40 million working days per year are lost directly from stress -- related illness. Costs in absenteeism to British industry is estimated at 1.5 billion pounds per year. USA is 2.5 times larger = cost of $6.2 billion.

Guidelines for closing 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.

Using questions to determine needs

Provides a roadmap for you to follow, allows prospects to discover their problems for themselves, determine prospect's buying criteria, salesperson as a diagnostician

external types of stressors

Physical Environment (Noise, Bright Lights, Heat, Confined Spaces), Social Interaction (Rudeness, Bossiness, Aggressiveness by others, Bullying) , Organizational (Rules, Regulations, "Red-Tape", Deadlines, Lack of Resources), Major Life Events (Birth, Death, Lost Job, Promotion, Marital Status Change), Daily Hassles (Commuting, Misplaced Keys, Mechanical Breakdowns)

Techniques in handling objections

1. Feel, Felt, Found -- Answer it by referring to a third party and using that experience as your "proof or testimony". If the source is reliable or reputable, this can be especially successful. Provide new facts which allow the prospect to reevaluate your proposition. 2. Compensation or Counterbalance Method -- Admit the objection is valid. Describe some counterbalancing benefit. 3. Relate a case history or testimonial -- describe the experience of a client whose situation is similar to that of the prospect. 4. Ask Why? or a Specific Question -- Excellent for separating excuses from real objections. Ask questions that turn a broad general objection into a specific concern that can be answered. 5. Deny the Objection. (Direct denial involves refuting the opinion or belief of a prospect.) -- Considered a high risk method of handling buyer resistance. If buyer resistance is not valid, there may be no other option than to refute it by providing accurate information. Be firm in stating your beliefs; be sincere and don't be defensive. 6. Indirect Denial (Sometimes prospect's objection is valid, or at least accurate to some degree.) -- Best approach is to acknowledge that the prospect is correct. If initially appears as agreement with the customer's objection. If done in a natural, conversational way it will not offend the prospect. Rephrase or have the prospect rephrase. Blame Yourself. Give the facts that answer the objection.

Factors of first impressions

1. Four minutes is the average time that prospects take to decide whether to buy from you. 2. Visual Factors -- clothing, briefcase, grooming 3. Physical Actions -- shake hands, eye contact 4. Attitude -- friendly, enthusiastic 5. Professional habits -- on time, clear agenda, ability to answer questions 6. Building Rapport -- pronounce the prospect's name correctly, look for common ground

Consumer-Benefit Approach

1. Give the prospect a reason to listen 2. Suggest a risk for failure to listen

Product Approach

1. Hand the product, or some physical representation of it to produce a positive reaction 2. It stirs interest 3. Permits a demonstration 4. Makes a multiple sense appeal 5. If bringing the actual product is not feasible, you must use other devices: A piece of literature, sample, model, picture

Referral Approach

1. Helps you establish leverage by borrowing the influence of someone the prospect trusts and respects.

Approach

First initial contact with prospect (Potential Customer) **Not always face-face contact

Causes of customer attrition

12 to 15% -- Product Dissatisfaction 10 to 15% -- Price 50 to 70% -- Poor Service

Approach Objectives

1. Make a good first impression 2. Secure Attention 3. Develop Interest 4. Establish Credibility 5. Opportunity to make a sales presentation(if approach was effective.)

Value Proposition

-- the set of key benefits & values that the company promises to deliver to satisfy needs. 1. Salesperson must be prepared to substantiate the points presented during the sales presentation. 2.Salesperson must focus on key points of difference between your product & competitors (knowledge)

Features VS Benefits

---Features.. are the tangible and intangible qualities (or facts) of a product or service. They are the same no matter who uses them. ---Benefits... Are the value to the customer Translating features into benefits is one of your most important skills.

Open-ended questions

--Identify a topic but do not provide structured alternatives 1. Allows the prospect to move in any direction 2. Cannot be answered with a yes or no 3. Ordinarily begins with "How do you feel?" or "What do you think?" 4. Stimulates the prospect's thinking and increases the dialogue 5. Helps uncover the dominant buying motive 6. Uncovers the true personality or behavioral style of the prospect

Close-ended questions

--Structured Alternatives, Multiple Choice Type 1. Uncover Specific Facts 2. Reduce prospect tension because they are easy to answer 3. Check understanding and receive feedback 4. Maintain control by directing the flow of conversation 5. Cement prospect commitment to a specific position

Nonverbal Language

-Includes all aspects of appearance: grooming, clothing, accessories, and posture. - Effects first impressions even though it may actually provide limited or shallow insight into the true person. - Dress the Part -- We all wear uniforms: Choose accessories carefully, dress appropriately, give attention to grooming - You're projecting an image -- want the prospect to take you seriously, work with your physical characteristics - Some accessory tips -- Jewelry should be neutral and not related to an association or belief, should be of good quality, high quality pens, leather attache cases, avoid sunglasses while talking to prospects

Buying Motive

-What's driving your need for change? -What do you hope to accomplish? -If you can achieve this result, what will it mean to you? -What originally led you to this decision?

When to answer questions

1. Anticipate and Forestall Objections -- Incorporate objections and the answers directly into the presentation. You should be certain that the objection will arise. Prevents a confrontation and communicates objectivity. Objection may come up again -- but it will have less impact the second time. Weave into your presentation factual answers to anticipated objections. 2. Postpone the Answer -- Acknowledge the objection, employ empathy, gives you time to present more benefits, allows you to maintain control, gives you time to think about your response, promise to get back to the question and write it down. If prospect absolutely insists, then answer it when it comes up. Used mostly when price concerns are stated before you are ready to answer. 3. Answer Immediately -- Allows the prospect to concentrate on the rest of the sales story. Shows the prospect your sincerity. Prevents prospects from inferring your inability to answer. Of all the objections, the price question should be answered after need, value, and benefits have been discussed.

Ways to Improve Listening Skills

1. Capitalize on Speed of Thought: -- We speak at 150 words per minute, but we can listen at up to 600 words per minute. 2. Use this spare thinking time to: -- Anticipate where your prospect is going, mentally summarize the message, formulate a response, listen between the lines, use silence strategically 3. Maintain an open mind -- avoid prejudgement, be patient, take notes, reinforce -- paraphrase the customers meaning - ask questions to make sure you understand -- let the speaker know you are listening, listen for ideas, do not try to get every word, focus your full attention -- get rid of distractions, make & maintain eye contact, think about what the speaker is saying -- not what you are going to say next, do not interrupt, listen to the words & try to picture what the speaker is saying, keep your body language neutral, realize that sometimes just listening is enough, be attentive yet relaxed, don't interrupt & don't impose your solutions, wait for the speaker to pause before asking questions, try to feel what the speaker is feeling, pay attention to what isn't said -- feelings, facial expressions, gestures, posture & other nonverbal clues.

Advantages of amplification questions

1. Checks for mutual understanding 2. Allows the salesperson to rephrase what the prospect appears to have intended 3. Invites the prospect to expand or clarify any point of disagreement 4. Narrows down generalizations and clears ambiguities

Benefits of Demonstration

1. Improved Communication and Retention: Attracts customer attention, adds sensory appeal, stimulates interest, creates desire for product. 2. Proof of Buyer Benefits (Evidence to Support Claims): 3. Proof Devices: Demonstration, Facts & statistics (3rd party & your own company), testimonials, photographs & video, customer data (case histories), reprints, samples 4. Feeling of Ownership -- During presentation (involved), Trial

Handling Objections- six step process

1. Listen carefully; Hear the prospect out. 2. Confirm your understanding of the objection -- clarify and classify the objection. Try to distinguish between genuine objections and excuses. 3. Acknowledge the prospect's point of view. -- Restate or rephrase in your own words. Use words such as, "I understand how you feel." Prepare the prospect for your answer. 4. Select a specific technique to base your decision on. -- the prospect's social style, phase of the interview, the prospect's mood, the number of times the objection has been raised, the type of objection (excuse versus a genuine concern or question). 5. Answer the Objection -- say just enough to answer it. 6. Attempt to close -- Continue the presentation if you do not succeed.

What sales managers do

1. Manages (organizes) sales staff (creates territories) -- Product organization, determine sales territories (one of the most important items that a Sales Manager must do.) , determining the size of the sales team. 2. Recruits 3. Trains 4. Budgets 5. Develops compensation plans 6. Grades sales force productivity 7. Motivates sales staff

Objectives of using questions

1. Preplan your questions (customize) 2. Ask the right questions 3. To discover the prospects "hot button" 4. To establish purchase criteria 5. To agree upon a time frame for completion of negotiations 6. To gain agreement on the problem before beginning the actual presentation

5 methods for overcoming the price question

1. Price vs. Value vs. Cost -- Your job is to establish value, not price. Look at the price-quality-value mindset. Talk about the initial price versus the ultimate costs. 2. Price Breakdown -- Break the price down - by day, week, or month (lowest denominator) 3. Presumption of Exclusivity -- Stress the special features that only your product can offer. Sell quality and uniqueness if the buyer argues price. Must be an expert about your industry and product line. Make your price seem unimportant in comparison to the value received. Draw the picture clearly and convincingly -- most buyers are fair-minded. 4. Comparison Method -- When prospects are mentally comparing their present product with your product, make a complete comparison of the two. A demonstration can give a convincing answer to an objection. Comparison of your product's features, advantages, and benefits against competitors. Do a comparison of long-run costs and savings. Use your company's reputation to build trust and justify the higher price. 5. Sell Down Method -- The common law of business balance prohibits paying a little and getting a lot. Be patient, focus on the benefits, and let the buyer tell you what features he can live without. There is a price point below which the buyer will not want to go. All prospects have a purchasing or buying range, find it. Unbundle.

Steps in Sales Process

1. Prospecting 2. Preapproach 3. Approach 4. Needs Discovery 5. Presentation 6. Handling Objections 7. Close the Sale 8. Post-Sale Customer Service

Purpose of Presentation

1. Provide knowledge using the features, advantages, and benefits of your product, marketing plan, and business proposal. 2. Allow buyer to develop positive personal attitudes toward your product and you. 3. Convert need into want and into the belief that your product can fulfill those wants. 4. Convince the buyer that not only is your product the best, but also that you are the best source to buy from.

Question Approach

1. Quickly establishes 2-way communication 2. Suggests interest in the prospects problem 3. Allows you to apply your benefits

Qualifying Question Approach

1. Seeks a commitment from a prospect 2. Determine if prospect is cold, lukewarm, or red-hot

Education Approach

1. Show your knowledge of trends in their industry or market 2. Would work well in a virtual meeting

Compliment Approach

1. Signals your honest interest in the prospect 2. Make it sincere, specific, and of genuine interest

SPIN

1. Situation Questions: Data-Gathering Questions Uncover Facts and Background Information. -- Do you handle the collection of overdue accounts internally? 2. Problem Questions: Here You Help Prospects Define Their Needs Explicitly -- Do you know how much it costs to do your collecting internally? 3. Implication Questions: Get The Prospect To Discuss The Problem And How It Might Be Improved -- Would it be important to you to recover a large share of delinquent accounts & bad checks faster than you are currently able to do? 4. Need - Payoff Questions: Help To Build Up The Value Of Your Proposed Solution In The Customer's Mind. -- If you could design the perfect collection agency, what would you want them to do for you?

Question Types

1. Survey Questions -- Information gathering questions designed to obtain knowledge. Discovers basic facts about the buyers existing situation. Not to be used for factual information one could acquire from other sources prior to the sales call. 2. Probing Questions -- Help to uncover and clarify the prospect's buying problem and circumstances. Obtain more specific information to fully understand the problem. 3. Confirmation Questions -- Verify accuracy and assure a mutual understanding of information exchanged.

Weaknesses of first impressions

1. Tend to be based on emotions 2. All behavioral traits do not show up immediately 3. Behavior may be deliberately controlled by either party 4. An earlier event may influence either person's current behavior

Persistence

10% sales people left after 4 calls 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. Know the numbers -- "300" hitter is a superstar -- failing 70% of the time.

Types of closes

1. The Direct Close -- Has the advantage of clarity and simplicity. Ask for the order in a straightforward manner. Most direct closing approach and appeals to many buyers, especially decisive people. Should not come too early. Highly effective when salesperson has earned the customer's respect. 2. Trial Close -- Can be used at any time during the sales process. May elicit a negative response because buyer is not ready to purchase. A trial close that works becomes the close. 3. Summary of Benefits Close -- Summarize all the benefits vs. the costs and asked for the sale. 4. Assumptive Close -- Allows the salesperson (when confident) to verbalize the assumption to see if it's correct. 5. Special Concession Close (Impending Event) -- Offers the buyer an extra incentive for acting immediately. 6. Multiple Options Close (Alternative Choice) -- Gives the buyer multiple viable options 7. Balance Sheet Close -- 2 Column List: "Reasons for Buying" and "Remaining Questions" Helps find out what's holding the prospect back. List pros & cons of buying. 8. Management Close -- Bring in your upper management to assist in negotiations and close. 9. Minor Point Close -- Focuses the buyer on a small element of the decision. 10. Trial Order Close -- This technique involves 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. 11. Cost of Ownership Close -- Rather than talking about price - this technique focuses on the long term total cost of ownership. Competing systems may seem cheaper, but when you take into account installation, maintenance, warranty and training over the lifetime of the product -- this system is about half the price. If you buy a competing product, you are more than likely to replace it in two years. Our product will last you twice as long. 12. Combination Close -- Using two or more closing methods.

4 types of objections

1. The Stall or Put-Off -- prospect is simply trying to avoid making a decision, you may not have presented a compelling reason to buy, handling the stall is a test of your attitude. 2. The Searcher -- Often prospects just want more data. They have mentally decided they want to buy. They just want to be convinced. So convince them. 3. The Hidden Objection -- Prospect will not reveal the real reason. Often quite personal, so prospect feels uneasy. Like the iceburg lurking below the surface. 4. The Stopper -- An objection for which no solution can be found. Not every prospect is a fit for what you have to offer. The prospect has a legitimate reason for not buying... so move on.

Self-Introduction Approach

1. Weakest approach by itself 2. Address the prospect by name (pronouncing it correctly) 3. State your name and company 4. Present your business card

Curiosity Approach

1. You should know something about the prospect 2. Ask questions whose answers will reflect favorably on your product/service

Demonstration

A well planned demonstration will: ---catch and peak the buyer's interest, fortify your points and get buyer involved, help the prospect understand the benefits, keep you interested and stimulated, cut down on the number of objections, help you close the sale. 3 Principles in Using a Demonstration : 1. Concentrate the prospects attention to you 2. Follow the "tell them 3 times rule" 3.Get your prospect into the act

Objections

An objection is anything the prospect says or does that presents an obstacle to the smooth completion of the sale. Learn to accept objections as a challenge, which when handled correctly will benefit you and your prospect. If you fear objections you will fumble your response, often causing you to fail.

Compensation Plans

Attract, retain & motivate sales staff. Control salespersons activities Be competitive & yet economical Be flexible

Why 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.

Follow Through

Common Post-Sale Services: -- Make credit arrangements. Schedule Deliveries. Be present during delivery. Monitor Installation. Offer training on use or care. Make good on your promises.

Units of conviction

Concise, carefully prepared "mini-presentations" that are used as building blocks in constructing the information the salesperson presents. -- Prepare units of conviction ahead of time, practice them until they are comfortable, they become a permanent part of your selling arsenal, learn how to personalize units of conviction. Each Unit of Conviction Contains: Feature (A fact about the product or service), Transitional Phrase or Bridge Statement, Benefit (What's in it for me?), Evidence or proof statements, Tie-down (Trial Close)

Benefits of customer service

Directly related to long term success, creates a culture when upper management motivates employees, based on customer perception

Dealing with price concerns

Don't apologize for the price. Do add value with a cluster of satisfactions. Unbundle. Don't make price the focal point of your presentation. Do point out the relationship between price and quality (VALUE) Do explain the difference between price and cost.

Amplification Questions

Double-Check Question -- restate or re-phrase the prospects remarks. Ask prospect to expand on their answer. Tells prospects: 1. That you have been listening 2. That you understand their concerns 3. That what they say is important to you 4. Checks for mutual understanding 5. Invites the prospect to expand or clarify any point of disagreement 6. Narrows down generalizations and clears ambiguities

Recognizing nonverbal buying signals

Facial expression changes. Prospect becomes more relaxed (friendly). Prospect nods agreement. Leans toward you. Examines product and/or literature intently.

Follow up

Follow-Ups have two major objectives: To express appreciation & to enhance the relationship. AND to determine if customer is satisfied or are they having problems. -Poor service and lack of follow-up are common causes of customer attrition. -Follow Up Methods: Personal Visits, Telephone Calls, E-mail Messages, Letters or Cards, Entertainment, Call Reports, Should encompass all key people (Receptionists, Technical Personnel, Stock/Receiving Clerks, Management Personnel, All Sales Personnel.) Plan For Follow-Up: Stay Informed -- Changes & Problems. Determine Contact Frequency -- Needs of both you and customer considered. Phone Calls -- Verifications, Check for Problems, Information, Inventory. Send Mail (Email, Letter or Card) -- No specific problems - keep in touch - grow the relationship.

Expansion Selling

Get More From Current Customers 1. Full-Line Selling -- Recommending products & services related to the main item sold. 2. Cross-Selling -- Selling products or services not directly related to the previously sold item. 3. Up-Selling -- Effort to sell better quality or newer version of product.

Why territory management

Greater sales. Greater customer & salesperson satisfaction. Greater salesperson motivation (ownership). Less turnover Pay for performance Control expenses Plan for staff incentives

Why 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:

internal stressors

Lifestyle Choices (Caffeine, Lack of Sleep, Overloaded Schedule), Negative Self-Talk (Pessimistic Thinking, Self Criticism, Over Analyzing), Mind Traps (Unrealistic Expectations, Taking Things Personally, All or Nothing Thinking, Exaggeration, Rigid Thinking), Personality Traits (Perfectionists, Workaholics)

What to do when buyer says no

Make sure the deal is really dead. Review chain of events. Try to interview client. Stay in touch.

Complainers VS NonComplainers

Non-Complainers -- Unhappy customers will tell 9 to 10 other people. Happy customers only tell 3 to 4. Golf Industry -- 80% to 85% of unhappy customers to do not verbally complain -- they just don't come back.

Combination Approach

Performing multiple approaches at once

Planning your time

Plan about 70% of your time. Leave 30% for the unexpected.

Objection Prevention

Prevent Objections by discussing them in your presentation before the prospect has a chance to voice them. Identify all possible objections, write them down, script objection responses with closing questions for each. Develop sales tools that enhance & support every response. Rehearse the scripts in role play. Tweak the scripts. Try them out on customers. Make final revisions based on real world situations. Keep documents in a master notebook. Meet regularly as a group to discuss revisions.

Selling Tools

Quantify the Solution (ROI), Product and Plant Tours, Models, Photos, Illustrations, and Brochures, Portfolio of support materials, Reprints of Articles on Product, Catalogs show product line and specifications, Graphs, charts and test results, bound paper presentations, laptop computer and demonstration software, laptop computers & video, virtual reality, samples.

Recognizing Verbal Buying Signals

Questions -- What color does it come in? Can I get delivery by the end of the month? Recognitions (Positive Feedback) -- I have always wanted a boat like this. I like the features you described. Requirements -- We will need shipment by May 15th. Our staff will need training. Seeks other Opinions -- Who are some other firms that have bought this product recently?

What to do when buyer says yes

Reassure customer. Confirm sale and partnership. Reduce buyer's remorse -- forms of regret, fear, anxiety about sale. Compliment buyer on wise decision. Thank customer for order. Ask for referrals. Provide after-sales service.**

Dealing with rejections

Remind yourself you are not alone. Forgive yourself. Give yourself a positive pep talk(s). Refuse to give up. Remember you are important because of who you are, not what you do. Positively anticipate rejection & it will not overwhelm you. Broaden your definition of success. Commit to routinely attracting more customers than you need.

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 cannot cope. Stress is the "wear and tear" our minds and bodies experience as we attempt to cope with our continually changing environment.

Transitional Phrases or Bridge Statements

Transitional Phrases (or Bridge statements) allow a salesperson to connect a product's features to its benefits. Features to Benefits -- Which, This, That Benefits to Features -- Because, Thanks to, On account of, As a result of, Due to, Since, For that reason This product is nationally advertised, which means you will benefit from more presold customers. (Feature to Benefit.) You will experience increased profits because the first order includes point of purchase advertising materials for the Valentine's Day promotion. (Benefit to Feature.)

people buy expectations

Value Proposition. Client Expectations = Salesperson, Product, Company; you must exceed expectations. -- Lifetime customers (long term relationship). Part of customers "team". Buy again. Buy more. Referrals. Enjoyment & Purpose of Job. Financial Rewards.

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.

What are "moments of truth"

instance of contact or interaction between a customer and a firm that gives the customer an opportunity to form an impression about the firm.

Types of assessment criteria

qualitative and quantitative