Consultative Selling Quiz 3

*Best advice to close more successfully on major sales

"teach your people the difference between continuations and advances and become dissatisfied with setting call objectives that only result in a continuation"

Advances are where an event takes place (that includes action on the buyer's part), either in the call or after it, that moves the sale forward toward a decision. Which of the following is NOT an example of an Advance?

*think action* A customer's suggestion that you visit again the next time you're in the area this a continuation

*Need-Payoff Questions

- Always Happy - Solution centered - Ask about usefulness / value of solving the problem - always need these too

*Implication Questions

- Always Sad - Ask them because of power of avoidance of pain - problem centered, make problems more serious

*Sales Personality Types, know how to deal with each

- Amiable - shopkeeper - Expressive - farmer - Analytical - Repairman - Driver - Hunter

Preliminaries

- Build Rapport - Opening - Engage customer in purpose of visit - Read the room - Confirm Purpose and Expectations

Investigating

- Obtaining a clear understanding of customer's situation and EXPLICIT needs - most important stage of a sales call - buyers talk more than sellers - talk about solutions later

Demonstrating Capability

- Persuasively match your products benefits and solution to meet the Explicit Needs of the buyer - value - make clear your differentiation among competition

New Medical product Example

- Salespeople were unaware of what new product was - focused on what was important which was solving problems for the doctors who use it - shifted attention away from product and back to customer needs - even good companies forget wht they are doing

Stage 4

- getting commitment is whole point of call - you have to ask for commitment - write down objective for the sales call - failure here is often due to incomplete investigating

Expressive Style

1. laugh with them 2. listen to their opinions 3. think big picture 4. recognize their contributions 5. lighten up 6. form a friendship

features

- characteristics, low impact - response: price concerns - impact: slightly positive in small sales, neutral or negative in large sales

Explicit Needs two components

- clear problem - a desire for a solution

FAB

- features, advantages, benefits - ways to demonstrate capability

Opening Sales Call (ATT)

- first impressions are key - have an organized approach - do research - have compelling reason for contact - express the "WIIFM" - set expectations upfront - effective use of key words - be clear and concise - Play catch and ask open ended questions

Advantage

- only slightly related to success - shows how a product or service can be used to help buyer - response: objections - impact: positive in small sales, slightly positive in large sale

Call Outcomes Major Sale

- order - advance: customer has agreed to an action - continuation: key is turning into advance - no sale

WIIFM

- seller wants to know benefits

SPIN and Preliminaries

- smaller sale: build rapport - larger sale: establish yourself

Benefit

- very strongly related to success - shows how a product or service meets an explicit need - starts from the buyer's explicit needs, so most impact - difference is perspective - if failing to sel probably pushing too many advantages - impact: very positive

Action Values

-behavioral based "aligned with principles, behaviors, and standards" of the person

*Customer Value

-defined by customer -not inherent in products or services -evolves from the customer's genuine business issues -Is customer and organization specific changes over time *not features and advantages but benefit for customer

Good value metrics* (will be asked which one isnt one)

-net profit -gross margin -gross margin ROI -Gross margin ROS - ROI, Return on Sales -Annual Growth, Contribution Margin -NPV, Inventory Turn - Break-even -Payback

Demonstrating Capability Effectively

1. Do not demonstrate capabilities too early in sales call 2. Beware Advantages 3. Be careful with new products

Making preliminaries effective

1. Get down to business "quickly" 2. dont talk about solutions too soon 3. concentrate on investigating stage questions * bottom line - read the room

amiable

1. approach conflict carefully 2. get to know them 3. consider their perspectives 4. draw out their opinions\ 5. handle issues privately 6. always be courteous

3 steps for obtaining a commitment

1. check that key concerns have been covered 2. summarize the benefits 3. propose a realistic commitment (an advance)

3 steps to becoming a challenger sales rep

1. identify your opportunity 2. identify your strongest solutions 3. Incorporate Your "lesson" into your messaging

4 stages in Any sales call

1. preliminaries 2. investigating 3. demonstrating capability 4. obtaining commitment

driving style

1. respect their time 2. stick to the facts 3. follow up on your promises 4. show your competence 5. earn their trust before expecting it 6. let them have some control

Objection Prevention Strategy

1. seller devlops need with implication and need payoff questions 2. buyer states explicit need 3. seller offers benefit 4. buyer shows support or approval

Analytical style

1. take your time 2. communicate clearly and concisely 3. dont pressure for answers 4. respect their processes 5. ask directly for their feedback 6. give them space

*Challenger Rep does 3 things well, 3 T's

1. teach customers something new and valuable about how to compete in their market 2. tailor their sales pitch to resonate with the decision-maker's hot button issues 3. take control of the discussions around pricing and challenge the customers thinking around the problem

Components of world class sales pitch

1. the warmer 2. the reframe 3. rational drowning 4. emotional impact 5. a new way 6. your solution

Implied Needs

A clear statement of a buyer's problem, dissatisfaction, or difficulty with the current situation

Explicit Needs

A clear statement of a buyer's want, desire, or intention to act

*Challenger simplified

A: current state - customer's current problem GAP B: New approach - offers new way to address the problem (Solution to Problem)

According to Aja Frost in her blog, what are the three steps to becoming a Challenger Salesperson? (2 pts)

According to Aja Frost, the first step in becoming a Challenger Salesperson is to Identify your Opportunity. This involves becoming very familiar with the prospective customer's business and processes. By becoming aware about the whole business, you may be able to find more teachable opportunities that will help your customer become more open to listen to what you have to offer. The second step in becoming a Challenger Salesperson is to identify the strongest solutions. One must develop a few different strategies or recommendations that match the customer's needs. This might require more research and by looking at past successful sales, you may be able to find similar situations that could help provide a framework for the solutions you come up with. By using real examples of success stories, the customer will be more enticed by your strategies and recommendations. The final step to becoming a challenger salesperson is to incorporate your lesson into your message. By surprising a customer with a challenge they may not be aware of, and by offering a tailored solution, you will be able to capture the customer's attention. It is important that you do this in a way that does not make the customer seem unintelligent. By challenging the customer's perspective, you will be able to show ways in which you can add value to the customers business.

How does Daniel Pink define the ABCs of selling*

Attunement, Buoyancy, Clarity

Emotion Values: Understanding benefit and harm "Whats in it for me?"

Benefit: Love,Hope,Gratitude,relief,compassion, pride,happiness Harm: anger,envy,jealousy,anxiety,guilt, shame, sadness

In a larger sale, what is the most probable customer response to a seller focused mostly on benefits?

By focusing on value, more likely to get commitment from buyer

4. In his "Cliffs Notes", Todd Caponi talks about Negotiation. What is the Common Rep Approach to negotiation and what does Caponi suggest you should do differently? (2 pts)

Caponi discusses negotiation in his "Cliff Notes" and describes the common approach many reps take and why this is unsuccessful. When reps take the common approach to negotiation, they often become to passive and avoid tension that may come from discussing costs. This is bad because it does not allow for as much collaboration about coming to a decision. Instead, reps should take charge of the buying process and help broaden the customer's perspective. This will keep the customer from over analyzing specific details and will allow the customer to become more open to different ideas and solutions.

What is the purpose of a salesperson?

Create Value; firm pays you becase you are providing value to company and customers

Handling Objections

Do: emphasize compensating stengths that are important to buyer Don't: be defensive or the objection will worsen Don't: feel that every objection must be answered - empathize, clarify, respond, confirm

Situation Questions

Finding facts about the customer's existing situation

*Open Ended Questions

Good for smaller sales, no evidence good for SPIN but good to get in habit of using

As listed in "The Challenger Sale Summarized", which of the five B2B selling profiles do you believe you are? Why? Give an example. (2 pts)

In this reading, there were 5 different sales profiles described and I believe that I have qualities encompassed in multiple profiles. I believe my selling style resonates most with the "Hard Worker" profile. I would consider myself the "Hard Worker" because I excelled as an inside sales representative with Coyote Logistics last summer. I worked hard by leading interns in calls made and talk time on the phone. I also utilized feedback given to me by my mentor to develop over the course of this summer. This hardwork enabled me to be in the top 5% of sales made among interns this summer. I believe with more development and hardwork I can become "The Challenger" profile, which is most successful in most B2B sales.

Demonstrating Value

Knowledge, Action, Emotion

What type of sale is SPIN used for?

Larger, probably wont work for simple sale

Implication Questions

Learning about the effects of the customer's problems

Need Payoff Questions

Learning about the value of a proposed customer's solution

What are the two signs that you're getting unnecessary objections that can be prevented by better questioning? (2 pts)

Objections early in the call, objections about value

Obtaining Committment

Obtain an appropriate commitment based on the needs and benefits identified in the previous stages

*Assignment 8 review

Review Week 11_Class 20 lecture slides (when Boston Scientific was here) from 10/29 Review Week 12_Class 23 lecture slides from 11/7

Per "The Challenger Sale Summarized", a challenger rep is defined by the ability to do three key things well. What are the three things? (List the descriptions as well as the name of each skill) (2 pts)

The Challenger rep has the ability to these three things well: • Teach: teach customers something valuable or how to compete in their respective market • Tailor: tailor their sales pitch to resonate with the decision-maker's hot-button issues • Take Control: take control of the discussions around pricing and challenge customers thinking around the problem By utilizing these 3 abilities, a sales rep is more likely to succeed in whatever selling situation they might find themselves in.

Per "The Challenger Sale Summarized", what are the six components that make up a world-class teaching pitch? (List the descriptions as well as the name of each component) (2 pts)

The six components that make up a world-class teaching pitch are as follows: • The Warmer: Build credibility and show your prospect you understand their challenges. This serves as the introduction for the pitch. • The Reframe: Connect those challenges to a bigger problem or opportunity they hadn't previously considered. Build credibility and show your prospect you understand their challenges. This serves as the introduction for the pitch. • Rational Drowning: Next, show prospects the numbers behind why they should think differently. • Emotional Impact: Then, create an emotional connection between the pain in the story you're telling and the pain they feel every day in their organization. • A New Way: It's time to convince them of the solution. Show them the new way they should be thinking about their business. • Your Solution: Finally, demonstrate how your solution is the best one out there, and how it fits with the new way a prospect should be thinking about their business. This form of commercial teaching is essential for new reps to learn in order to be successful challenger salespeople.

*Assignment 10 Review*

This was based on Chapter 2 of SPIN Selling. All questions came from there. Review Week 12_Class 22 lecture slides from 11/5. All questions are listed in the slides and we went over the answers in class

assignment 9 review*

This was based on Chapter 6 of SPIN Selling. All questions came from there. Review Week 12_Class 22 lecture slides from 11/5. All questions are listed in the slides and we went over the answers in class

Value =

Value = Benefits - Costs, Value is something customer is prepared to pay for

In a larger sale, what is the most probable customer response to a seller focused mostly on features? (1 pt)

buyer will object and not buy

In a larger sale, what is the most probable customer response to a seller focused mostly on advantages?

buyer will object and not buy

A salesperson says their objective for a sales call is "to collect data and build a relationship." On its own, does this objective lead to an Advance (Success) or a Continuation (Failure)?

continuation (failure)

stages 3-4

develop them into explicit needs using implication and need payoff questions

Win-Results from each buying role

different people within organization might want different results -economic:good budget fit -user: reliability, increased efficiency -technical: product meets specifications, best technical solution - coach: recognition, visibility, be seen as problem solver

True or False. In larger sales, decreasing the transaction time is a good thing because you normally want less time with key decision makers.

false

True or False. In both simple sales and larger sales, there are just two outcomes: "Order" false (Success) or "No-Sale" (Failure)

false

True or False. Never take the initiative by asking the buyer for a commitment; always let the sale close itself.

false

True or False. Objection handling is better than preventing objections because it addresses the symptoms. (1 pt)

false

True or False. The professional salesperson should welcome objections because the more objections you get, the easier it will be for you to sell. (1 pt)

false

*Fear of harm "wins"

fear is 4x more powerful than the prospect of benefit

Problem Questions

learning more about the customer's problems

Which of the following is NOT one of Rackham's "Four Successful Actions to Obtaining Commitment"?

letting sale close itself

Why are "Continuations" considered "Failure"?

no action

Call Outcomes Simple Sale

order, no sale key call objective - getting the order

Emotion Values

personal and tangible "relative worth, utility, or importance"

Why wouldnt you handle all objections?

removes credibility of questions you know the answers to

What type of closing technique is a salesperson using when he says, "The sale ends tomorrow so you'll want to make a decision today to get this low price"?

the last chance

True or False. Closing techniques, like all forms of pressure, become less effective as decision size increases.

true

True or False. According to Neil Rackham, "a close is anything that puts a customer in a position involving some kind of commitment."

true

True or False. Success in larger and complex sales depends mostly on how the "Investigating" stage of the sales call is handled

true

True or False. The point of asking good Problem, Implication, and good Need- Payoff questions is to build value and prevent objections. (1 pt)

true

stages 1-2

uncover implied needs using situation and problem questions

80% syndrome

where seller does 80% of talking, unsuccessful