consultative selling workshop

1

Consultative Selling Workshop

Objectives¨ Conduct comprehensive analysis of key buyers in every account.¨ Employ more consultative selling techniques.¨ Use better tools to get information about customer needs, and to give

information that is highly relevant to those needs.¨ Better deal with objections to Company and its products.¨ Negotiate more skillfully.¨ Understand the value and uses of Model II Behavior.¨ Be able to apply new skills and tools to real customer situations.¨ Use practical tools to help you and your TMs manage your customers and

territories more effectively: Relationship Matrix Account Planning Tool Buyer Influence Analysis Worksheet

Overall Goals Targeted Accounts

– Target High Leveraged Accounts– Strategically and Tactically Plan to Advance the Sale in

these Accounts– Penetrate these Accounts with Strong Listening,

Questioning, and Problem Solving Skills– Close these with Win/Win Agreements

Model II Behavior– Making Informed Decisions based on valid, illustrated data– Working hard (questioning, probing, analyzing) to get that

valid, illustrated data

Your Territory is Your Business

What are the qualities of a Business Leader?

¨ Focused on Key Success Factors Detailed Planning Targeting Leveraged Opportunities Focused Objectives Obtain Depth of Information and Customer Needs Appropriate Use of Currencies Win/Win Agreements Measured Results Corrective Action

Your Territory is Your BusinessWhat are the qualities of a Business Leader?

¨ Spends Time Highly Focused on High Leveraged Opportunities

Spend Your Time with Accounts that have Large Payoff Creative Approach to Get Those Accounts to Commit

and to Close

¨ Uses Data as a Competitive Advantage Know What Currencies to Use Measures Actions and Results Looks for Windows of Opportunity in the Data

LeadershipHow the Best See Themselves

Their most important trait is in how they see themselves; Self-Employed: You are your own boss. If something’s

wrong, it is first up to you to challenge yourself and to change it.

A Product Consultant: Your job is not just to sell, it is to identify & solve customer needs & problems.

A Business Consultant: Examine the account, give a diagnosis & present solutions.

LeadershipHow the Best See Themselves

Their most important trait is in how they see themselves; A Strategic-Thinker: You have specific goals & plans. You

need to know what you must accomplish & what must be done, and how to measure the results.

Results-Oriented: You don’t want to waste time. You choose actions that will lead to results.

The Best: You have decided that you are the best, and you will continue to be the best. This decision affects everything you do.

Theories in Action

Theories in Action determine all human behavior and action

Governing Values

Action Strategy Consequences

Double Loop Learning

Single Loop Learning

Double Loop Learning is the more effective way of making informed decisions about the way we design and implement action

Theories in ActionEspoused Theories Beliefs Attitudes Values

Theories in Use Actual Behavior Action Maps Unconscious Causalities

Mismatch• Threatened• Embarrassed• Loss of Control

Actions, Policies, Practices• Cover-up• Avoid/Deny• Lie• Anger• Rationalize• Defensiveness

Why???Protect:• Competence• Self-Confidence• Self-Esteem• Position

Initial Role Play

How to Assess Yourself

• Took the time to listen and understand before responding or trying to offer solutions.

• Used strong active listening skills and asked open yet specific questions that clarified the underlying needs, values, desires of the customer.

Consultative Selling Definition Consultative Selling defined: Process builds on belief that uncovering

buyer needs on all levels - economic, technical, personal, organizational - and meeting those needs will drive buying decisions.

Strengths Balances Company product/service line with real customer needs. Understands and gets critical customer needs and data, both for total

account and for individual buying influences. Gears all product and concept information to account/individual needs. Tends to ask great questions. Exhibits Model II Behavior

Traps Can sometimes miss obstacles generated by personal buyer issues. Model II Behavior can overcome this trap.

Advancing the Sale

The goal of customer interactions is not to close every time

The goal is to “Advance the Sale” “Advancing the Sale” means moving the customer closer and closer

to higher utilization by better understanding their needs, and showing them how Company products meet those needs.

Effectiveness depends on: Your knowledge of the business/industry/customer Your ability to build and maintain relationships Your skills in matching Company product/service benefits to real

customer needs

1. What they SAY

• Price reduction• “Done the analysis”• “Got to reduce expenses”• “Everyone’s doing it”

2. What they MEAN• Fear of Change (Try to understand what is behind this fear)• Too Much Work to Look at Long Term Value (Try to

determine why they feel this way)• Loyalty to competitor (What is the reason; what do they

like) • Insecure in that they do not fully understand either

financial implications and/or long term value (Do not threaten them; look for a deeper need and go after that)

3. Their REAL NEEDS (Probe to find this out; Match Currencies to Needs; Look for Currency Exchange)

• What to be a hero• Want to achieve a specific goal• Want to be recognized• Want the org to be more efficient, effective• Want the org to be in line with budget• What to grow professionally

• Look for an alternative access/entry point:

• Operations• Sales• Admin

4. Alternatives

Don’t AssumeDon’t React…This is a PROCESS, NOT an Event

Ladder of Inference

I take Actions based on my beliefs

I draw conclusions

Make Assumptions based on the meanings you added

Add meanings to the data

Select Data from what you observe

Key Sales Skills Required To Move Customers Through A Sales Cycle

Information - Giving Behaviors

Statements to positively position Company appropriately.

Clinical and economic data that supports increased product utilization.

Statement to respond to objections.

Next step proposals.

Key Sales Skills Required To Move Customers Through A Sales Cycle

Information - Getting Behaviors

Account utilization data.

Climate Building Skills.

Skills in uncovering and prioritizing customer needs: Questioning Skills.

Skills in uncovering and prioritizing customer needs: Listening Skills.

Skills in surfacing objections and responding to objections.

Difficulty in Changing from Model I to Model II

People are skillfully incompetent We are unaware of both our mismatches and our

incompetence Model I behaviors are taken for granted, used skillfully, and

constantly reinforced People often see Model I behaviors as caring and

supportive Hard to change what comes naturally

Model I Characteristics Model I Governing Values

– Achieve your intended purpose without examining or validating what you are doing or why

– Be in Control– Maximize winning, minimize

losing– Suppress/avoid negative

feelings

Operationalised by:– Unillustrated attributions and illustrations:

“I see you are ____”; “You are always ____.” “Obviously;” “I assume”

– Advocate courses of action which discourage inquiry: “The numbers aren’t important, I have a feeling.”

– Treat one’s views as “obviously” correct.– Face-saving moves by leaving potentially

embarrassing facts unstated.¨ Consequences

– Defensive relationships– Assumptive behavior– Dysfunctional communication– Reduced production of valid information– Distortion of Reality– Little learning

Model II Characteristics Model II Governing Values

– Validate information before acting on it

– Making informed choices based on credible, well-thought our information, no matter how threatening

– Vigilantly monitor choices to correct errors (internal commitment)

– Engage embarrassment and threats

Operationalised by:– Attribution and evaluation illustrated

with hard data– Surfacing conflicting views and

inconsistencies– Encouraging public testing of

evaluations¨ Consequences

– Minimally defensive relationships– Quality decisions and actions– Increased likelihood of learning

Defensive Reasoning Premises you develop to support causal explanations are

tacit and/or soft The inference process by which you go from your premises

to your conclusions is also tacit Very vehement and defensive about your claims, offended

by or will rationalize a call for validation Blame others or the environment, thus absolving self Look to others who will reinforce your Defensive

Reasoning “If my behavior is driven by my not wanting to be seen as

incompetent or weak, this may lead me to hide things from myself and others, in order to avoid negative feelings.”

Productive Reasoning Premises you develop is based on valid, confirmed

information You can illustrate a basis for your inferences Conclusions based on informed choice Data used is hard data Evaluate choices for potential correction and adjustment “If my behavior is driven by wanting to be competent, this

may lead me to encourage honest evaluation of my behavior by myself and others.”

Content vs Context

Content– The words you use; sentences and paragraphs– The words you use: unconsciously ineffective

“Obviously…” “Always…” “Never…” “We think…”

Context– Tone/Speed/Volume– Non-verbals– Extra-verbals– Location– Timing

Theories in Action

Theories in Action determine all human behavior and action

Governing Values

Action Strategy Consequences

Double Loop Learning

Single Loop Learning

Double Loop Learning is the more effective way of making informed decisions about the way we design and implement action

Territory Strategy

Account Targeting• Link Information in

Account Profiles with Territory Objectives

• Criteria & Categories

Account Tactics• Diff Customer Needs • Alternative Currencies

• Action Plans• Call Objectives

• Handling Objections

Making the Sale• Ask for the Order• Closing Tactics• Closing Options

Measurement• Appropriate Use of Tools

• Qualify/Quantify Performance• Know Why We Won and Lost

• Taking Corrective Action

Sales Process Model

Account Profile• Key Information

• Alternative Currencies

Territory Plan• Opportunities/Challenges

• Territory Objectives

Data Points Weekly Scorecard

– New Accounts that Meet Strategic Intent

– Strategic Account Development

– Weekly forecast/variance– Flex contracts– Call value– Appointments (Objectives

and Outcomes) Daily Sales Sheet

– Actual sales Account Plan

– Objectives Field Visit follow-up

– See Tool on page 19

Assessment of Skills (e.g. Problem Solving)– Data-based discussion of

problem, using specific illustrations and valid information

– Presents well thought our alternatives and benefits/risks

– Recommends an informed choice that is measurable

Assess Inquiry and Consultative Skills

Assess Negotiation/Closing Skills

Other (return phone calls; # of complaints)

Feedback Monthly Review

– Performance Feedback based on articulated data points

– Follow-up on Set Expectations from the past

– Setting new Expectations– Setting Strategies and Tactics with

Territory and with Key Accounts– Dealing with Internal/External

issues

Informal (phone call, email)– Recognition– Customer issue, objection, report

from the TM, or response from RM– Internal/External issue from the TM,

or response from RM– Information

Problem (focus on only one issue)– Active Listening– Specific Feedback (validated with

productive reasoning)– Set Expectation– Discuss resources needed, RM

commitment

Field Visit– Agenda set, both in terms of time

and activities– Objectives for BOTH the visit, and

for each account call (from RM and TM)

– Feedback prior to call (pertaining to pre-visit prep), after each call (regarding account call), and at the end of the visit (to summarize, possibly set new expectations)