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.