Mark 3337 Test 3 Chapters 10-15

Trial close

- Made at opportune time - "Can we ship in May?" - "Would you like to start on the first of the month?" - "Will a $500 down payment be possible?"

need-satisfaction presentation

- Select informative presentation - Select persuasive presentation - Select reminder presentation

Post-Sales Services that Ensure Successive Sales

-Make credit arrangements -Schedule deliveries -Be present during delivery -Monitor installation -Offer training on using and caring for product -Provide price change information

Follow up methods

-Personal visit -Telephone call -E-mail message -Letter or card -Call report

Key Moments for Customers

-moment of truth -moment of misery -moment of magic

Guidelines for good social contact

1) prepare for the social contact 2) initiate social contact 3) respond to the customer's conversations 4) keep the social contact focused on the customer

6 step presentation plan

1. approach 2. need discovery 3. presentation 4. negotiation 5. close 6. servicing the sale

Customer follow up has two main objectives

1. express appreciation for the purchase 2. determine if the customer is satisfied with the purchase This strengthens the relationship and builds a partnership that results in additional sales. • Poor service and lack of follow-up after the sale are the primary reasons customers stop buying.

Strategic planning for approach

1. review presentation objectives 2. review the strategic/consultative selling model 3. review the six step presentation plan 4. prepare an approach worksheet

Actions during the approach

1. telephone contact 2. social contact 3. business contact

Regaining a lost customer

4-5 times more expensive than keeping a customer satisfied

Sales teams presentations require:

A more detailed precall plan Clear understanding of the role Clear presentation objectives

Approaches to Gain Prospect Attention

Agenda approach Product demonstration approach Referral approach Customer benefit approach Question approach Survey approach Premium approach

3 dimensions of need discovery

Ask appropriate questions Listen and acknowledge customer response Establish buying motive

How do you define value?

Benefits - Cost = Value

The approach has three key objectives:

Build rapport Capture person's full attention Transition to the next stage of the sales process

How to overcome objections

CATC Clarify Acknowledge Type Confirm

Ethos

Choose suitable language Sound unbiased Demonstrate expertise

Logos

Construct logical arguments • Cite facts • Use theory and literal analogies

How do I conclude the deal?

Direct- Gain BUYER respect, ask then remain quiet, Time your close appropriately, Ask for agreement in a straightforward manner Summary of benefits- Re-emphasize the value-added to the BUYER• Use phrases such as 'Can I agree this contract with you?' Assumptive- Assume that the BUYER will agree pre-emptively• Ask towards the end of the negotiation• Request BUYER decision subtly Special concession- Emphasize benefits of the deal• Provide extra incentive for acting now• Use with care - potential negative impact Multiple options- Present multiple options to the BUYER• Configure and offer more than one solution• Remove less appealing options

The continuous engagement of the customer with her phone during your product discussion suggests:

Disinterest

What non-verbal signals might indicate the initiation of negotiation close?

Examining product literature intently

Professor Ahearne gave examples of several types of objections. Which type of objection does the quote below represent? 'I hear that this drug has a lot of side effects compared to competitors' products.'

False exaggeration

Guidelines for closing sales

Focus on dominant buying motives Longer selling cycles require incremental commitments Negotiate tough points before close Avoid surprises Display self-confidence Ask for commitment more than once

All of the following can be a reason for sales call reluctance except?

Having high self confidence

Sales Call Reluctance

Includes the thoughts, feelings, and behavioral patterns that conspire to limit what a salesperson can accomplish. causes: fear of taking risks, fear of group presentations, lack of self confidence, fear of rejection

consultative sales process and value

Increased customer satisfaction More sales closed Fewer order cancellations Fewer returns Increased repeat business Increased referrals

Process in closing a sale

Initiate close, conclude sale, confirm partnership

In lecture video 14, Prof. Ahearne suggests which one of the following questions to ask lastly from an employer in a job interview to positively improve your chance for getting hired?

Is there any reason in your mind that I am not an ideal fit for this position?

What is the best way to prepare for and handle objections?

Know the causes Understand objection cues Handle the objection

A real estate agent is trying to convince a potential buyer to invest in a particular property by sharing data that shows how property values in the area have steadily increased over the past few years. What type of storytelling strategy is this salesperson using to help articulate value?

Logos

Three areas of conversation

Make comments on here-and-now observations Offer [genuine] compliments Search for mutual acquaintances or interests

Importance of asking questions

Mastering the use of questions can increase success in negotiations by 17%

3 dimensions of product selection

Match benefits with buying motives Configure solution Make appropriate recommendation

Consultative sales process can lead to all of the following values except:

More product returns

What presentation strategy would you use when calling restaurant owners to encourage them to switch from traditional plastic straws to biodegradable paper straws?

Persuasive strategy

Making Sales Appointments by Telephone

Plan in advance what you will say Politely identify yourself and the company you represent State the purpose of your call and explain how the prospect can benefit from a meeting Show respect for prospect's time by telling the person how much time the appointment may take Confirm the appointment with a brief note, e-mail message, or letter with the date, time, and place of your appointment

Causes of Customer Attrition

Poor service (50-70%) Product dissatisfaction (12-15%) Price considerations (10-15%)

How can I confirm the partnership

Reassure the buyer Confirm the sale and partnership Reduce buyer remorse Compliment the buyer on a wise decision Thank the buyer for their time and agreement

Need discovery time varies based on

Sophistication of product Selling price Customer's knowledge Product applications Time available

Sales team presentations require all the following except?

Spontaneous calls

In making sales appointments by phone, which of the following practices should be done by the sales person?

State the purpose of the call Plan in advance what you will say Politely introduce yourself and your company

Which type of closing approach does the quote below represent? "Just to highlight the advantages of our partnership - our software solution streamlines your workflow, significantly reduces processing time, and comes with 24/7 customer support. We're committed to your success and offer a money-back guarantee if you're not satisfied within the first three months. Can we proceed with this partnership?"

Summary of benefits approach

Customer advocacy

Taking the customer's point of view and acting in the customer's interest, is a major underlying factor in repeat business

Based on the Features and Benefits Role Play Guidelines, you are supposed to cover all of the following in the close part of the role play EXCEPT?

Tell them it's time to buy

Tom Peters on Creating the Lifetime Customer

That asset is the well-served customer, who becomes to most significant sustainer of the business, the lifetime customer.

quantifying the solution

The process of determining whether or not the proposal adds value Cost benefit analysis

How should an act of LISTENING be like?

Trampoline

The Jam Jar video shows that customers can simply make their buying decisions if the number of options is limited rather than numerous.

True

Why do objections arise during negotiation?

Unable to make a final decision Are interested in the agreement but would like to negotiate Nervous about being the decision-maker Dislike the company from previous experiences

Pathos

Use meaningful language Utilize emotional tone Build in anecdotes

How to identify objection cues?

Verbal and Nonverbal

Recognize Closing Clues

Verbal clues- questions, recognitions, requirements Nonverbal- facial expressions changes, prospect nods in agreement, leans toward you

Moment of truth

When we meet customer expectations

ZOPA

Zone of Possible Agreement - the space between the seller's walk away point and the buyer's highest willingness to pay

What is BATNA?

best alternative to a negotiated agreement Seller: Seller's reservation value and the minimum seller's price Buyers: Buyer's reservation value The maximum the buyer is willing to pay

The goal of good social contact is

build rapport

Moment of magic

customer's expectations were met and exceeded

Moment of misery

customer's expectations were not met

A customer is willing to pay more for a product when the gap between the actual and perceived communication is significant.

false

During consultative sales presentation and in the need satisfaction part, prospect should use the most of the time.

false

How to handle different types of objections

false exaggeration- Address the issue directly• Provide clarification• Highlight evidence / facts to support response• Assess if it is possible to give a guarantee Request for info- Acknowledge the customer's interest• Remain focused on precise request only• Be informative and open Misunderstanding- Evaluate if customer is incorrect & your explanation• Emphasize that they are not alone in thinking this• Use language like "I understand" / "Many feel this too" Drawback- Be explicit about what you can and cannot do• Emphasize that benefits outweigh drawbacks• Summarize the benefits

Which one of the following is NOT a part of Need Discovery?

make appropriate recommendation

ROI

net profits/investments*100

active listening

process of sending back to the prospect what you as a listener think the person meant, both in terms content and feelings

Benchmarking

provides the basis for further negotiation Makes intangible benefits tangible Improves trust and understanding

Full-line selling

recommend related products to the main item sold to the customer

Upselling

sell better quality products to the customer

Cross-Selling

sell products that are not directly related to the product sold to the customer

SPIN Selling

situation, problem, implication, need payoff Questions that clarify the dimensions of the problem, help the customer with a range of solutions, assist the customer in evaluating the potential outcome of the solution that is implemented

In the pre-suation experiment that was about helping behavior, which of the following pictures had the higher influence on the subjects (participants)?

standing together

Suggestions to manage sales call reluctance:

•Be optimistic about the outcome. •Practice your approach before making the initial contact. •Recognize that it is normal to feel anxious. •Develop a deeper commitment to your goals.

Addressing Unhappy Customers

•Give customers every chance to disclose their feelings. •Keep in mind that it does not matter whether complaint is real or perceived. •Do not alibi. •Politely share with the customer your point of view regarding the problem's cause. •Decide what action must be taken to remedy the problem.