getting into your customers head
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TRANSCRIPT
GETTING INTO YOUR
CUSTOMER’S HEAD
8SECRET
ROLESOF
SELLINGYOUR
COMPETITORSDON’TKNOW
Kevin Davis
Selling Is More Difficult…
Buyers are changing– Their competition is growing tougher– They have to do more with less– More demanding– More price conscious– Less loyal to suppliers– Deluged by choices– More uncertain about the future– More risk if a mistake is made– More cautious
Sellers Must Change
Top 5 Sources of Frustration with Sales Reps Difficulty in communication Rep’s lack of knowledge with customer’s company Overaggressive selling Slow delivery Rep’s over promising and under delivering
Forum Corporation Boston-Based consulting firm, surveyed 342 Fortune 500’s
Buyer Focused Selling
IT’S NOT ABOUT ME… IT’S ALL ABOUT THE BUYER, AND HOW THAT
BUYER WANTS TO BUY, PERIOD.
Two Buying Processes
Buy-knowing: When buyers already know enough in order to buy.
– Simple choice– Quick– Made without deliberation – Driven by emotional need
Buy-learning: When buyers have to acquire knowledge and give careful consideration of alternatives
– More complex– Takes longer– Made with careful consideration– Driven by sequences and rationally vs. emotional
The Buy-Learning Process
Change inour businessand personalLives leadsto discontent.
1.
Discontentbrings problemsor opportunities that develop intoneeds.2.
3. Research identifiesthe capabilities necessary for asolution.
4.5.6.
7.8.
Comparisonleads to identifyinga preference.
Fear often needs to be over-come before a decision can be made.
Commitment is made by approving the purchase.
Expectations arethat immediatevalue will be realized.
Satisfactionis equivalent to the favorableresultsachieved
Why People Buy
Buying is an emotional need-satisfaction process that occurs when people believe that the results of buying will improve their lives in some worthwhile way.
Two Types of Needs
Personal Needs: are individual needs. Social Needs: relate to how people want others to
see them
Examples of Personal Needs
Healthy, not sick Physically safe, not threatened Relaxed, not tense Happy, not sad In control of life, not controlled by others Entertained, not bored Free, not confined Loved, not hated Self-assured, not insecure Rich, not poor
Examples of Personal Needs
Successful, not a failure Admired, not snubbed Beautiful, not ugly Literate, not illiterate Accepted, not shunned
Why Organizations Buy
Organizations, like individuals, buy for improvement. Every company has
organizational goals it is striving to achieve:– Increase efficiencies– Cut Costs– Improve Profitability– Gain Competitive Advantages
Examples of Problems
Material or component shortages Obsolete plant and equipment Poorly performing suppliers Competitors’ activities
Examples of Opportunities
Increase in sales Improvement in quality Entry to a new market Increasing efficiency of operations
Examples of Personal Goals
Corporate buyers seek:– More achievement, not less– More authority, not less– More money, not less– More job security, not less– More responsibility, not less– More recognition, not less
Examples of Social Goals
A business buyer desires:– To be a leader, not a follower– To be a problem solver, not a problem ignorer– To be admired, not ignored– To have more influence , not less– To be valuable, not expendable– To gain more power
CUSTOMER-FOCUSED SELLING
CFS is selling to customers the way the customers want to be sold to.
Throughout the buying process, you must change your sales approach to meet your customers’ needs; that is, you must adopt the selling role that matches your buyers’ current needs.
The Eight Sales Roles of CFS
Student: Study the Change affecting your customers, and open some closed doors.
Doctor: Diagnose your customers’ Discontent and uncover their big needs.
Architect: Design unique solutions that simplify your customers’ Research and lock out your competition.
Coach: Compare your offering to the competition’s and then implement a game plan to win.
Therapist: Draw out Fears and help resolve them. Negotiator: Discuss with a view of reaching a mutual
Commitment to open a relationship (not close a sale.) Teacher: Identify Expectations, teach the customers to use
your product, and test for the Value improvement achieved. Farmer: Cultivate Satisfaction and grow the account.
Roles of Customer-Focused Selling
STUDENT
1.
DO
CTO
R2.
3.
AR
CH
ITE
CT
4.5.6.
7.8.
COACH THERAPIST
NE
GO
TIATO
R
TEA
CH
ER
FARMER
Cha
nge
Discontent
Research
Co
mp
arison
FearCommitm
ent
Expectations
Satisfaction
The Levels of Management
CEO
CORE
SUPPORT
The CEO Level
Includes the President, ranking Vice Presidents, and Chief Officers
Concerned with:– Profitability– Strategic Planning & Direction– Investments for growth– Controlling expenses for maximum profitability– Problem solvers & solution seekers– Competition
CEO Concerns
Cost pressures Rising customer demands Information technology Revenue Growth
Your customer’s key question is: How does your product or service address our concerns or corporate initiatives?
The Core Level
The core level is known as the beating heart of the organization.
Consists of the frontline functions that are vital to providing goods and services to customers: manufacturing, operations, sales and service.
Core Level operations are connected to each other like a chain…Order Taking, Preparation, Delivery, and Payment
Core Level
Vice President of Sales Vice President of Manufacturing Vice President of Customer Service
Some core level managers have authority and some have influence
Core Level Concerns
Problems solved NOW! Problems in any area affects all the other
areas. If you can solve problems in the Core Level
you will have ample opportunities to achieve sales success.
Core Level Key Success Factors
Order entry process Delivery Efficiency Sales reps link your solution
to one or more of these factors.
Support Level
The bottom level of a business is Support, which provides assistance to both the CEO and Core levels.– Purchasing– Legal– Accounting– TrainingA sale in this area is typically a lowest cost transactional sale
The Levels of Management
CEO
CORE
SUPPORT
{Consulting Sale}
{Transaction Sale}
Sales Role # 1 STUDENT
STUDENT: As a student you will study how changes are affecting your prospects and find opportunities where you can add value.
First Step In Customer’s Buying Process
CHANGE– Comes from Internal Forces– Comes from External Forces– Comes from Personal Experiences
External Changes
Come From:– Customers– Government Regulations– Competitors– Technology– Politics– Economy
Internal Changes
Resulting from External Changes:– Strategic Planning/Goal Setting– Quality Initiatives– Cost Cutting– Reengineering
Change Creates Huge Opportunity!
Change is constant With Change comes opportunity Seek opportunities in Change Change presents problems and opportunities Selling opportunities abound with Change
Second Step In Buying Process
DISCONTENT is triggered from change resulting from a feeling of dissatisfaction with the current situation. During the Discontent Process your prospects:
– Recognize a problem or opportunity.– Ask, “How serious is the problem?”– Ask, “How much will the solution cost?”– Determine, “I need to buy!”
Sales Role # 2 THE DOCTOR
THE DOCTOR Is a professional who helps people achieve wellness through expert knowledge, questioning, and skill.
Three Patients of the Doctor
Sick patients Fairly healthy patients who want to be better
off “In-Denial” patients who think they are
healthy, but whose doctor knows that is not their true condition.
Role of the Doctor
Ask Five Types of Questions:– History Questions (To ID optimum vs. actual
condition)
– Symptom Questions (To ID Discontent)
– Cause Questions (To define the true problem)
– Complication Questions (To clarify the seriousness of the problem)
– Cure Questions (To help you ID your prospects’ expectations of value)
History Questions
What are some of the changes going on in your business?
What are your customers’ expectations? Where are you now in relation to your company
goals?
Symptom Questions
Are you satisfied with____________? What barriers stand between you achieving your
goals? Is you current level of _____ acceptable to you? What would you like to see improved? Are you concerned about __________?
Cause Questions
What do you attribute that to? Any idea what could be causing that? What factors bring about that?
Complication Questions
How does that affect _________? Does that lead to _________? That must cause real problems. (Pause and let
client provide input about the issue)
If that problem doesn’t get resolved, what might happen?
What other problems does that create for you?
Cure Questions
Suppose you could ______. What would that enable you to do?
How would that help? How much would you save if you could____?
Sales Persons’ Call Objectives
Build trust Close the sale Get positioned with a new decision maker Write a proposal Gather more information Identify needs
Which one of these objective are different from the others & why?
Action commitment
Action Commitment Objectives
Prospect commits to another appointment Prospect commits to conducting a survey Prospect commits to attending a demo Prospect set an appointment with another
key decision maker in the company Prospect grants you access to confidential
company information. Prospect agrees to a trial of your product or
service
Third Step In Buying Process
RESEARCH Your primary objective in the Research step of
the buying process is to influence your prospects’ needs while simultaneously creating a competitive advantage for you. This is establishing the “buying criteria” for you.
Sales Role # 3 THE ARCHITECT
THE ARCHITECT designs solutions with their buyers that showcase the unique capabilities you have to offer that will position you competitively for the sale.
Buying Criteria
Buying criteria: are standards against which competing products are measured.
Each criterion consists of a difference between alternatives that the prospect considers important.
The different alternatives may be divided into two categories:
– Must-Haves– Nice-to-Haves
Tools of The Architect
Creativity: is the ability for bringing something new into being and for responding to your perplexing design problems
Expert Knowledge: is the gift of being an expert in design, drafting, layout, site selection, building materials, building codes, and so on. You must also be a professional at selling and buying
Fourth Step In Buying Process
COMPARISON: is the client making sure they are making the right decision on the best available choices
Four Actions of Comparison
Consider only options with must-have capabilities
Request presentations ID additional nice-to-haves in each option ID a preference
Sales Role # 4 THE COACH
THE COACH primary objective is to defeat the competition without slashing price.
Coach’s Process for Victory
Analyze your strengths and weaknesses in comparison to your competitors.
Develop a game plan to positively position yourself against the competition.
Demonstrate your superiority on the playing field with a great sales proposal and presentation.
Fifth Step In Buying Process
FEAR: Occurs when they sense that they may regret a buying decision after the purchase is made.
Up to this point in the sale, concrete issues, known to both the buyer and the seller, have been dealt with
Why Fear Happens
Major Dollar Investment Long-term Impact Significant Changes in Operations Lots of Competition or Zealous Competition New Product or Concept Several Decision Makers
Sales Role # 5 THE THERAPIST
THE THERAPIST: Is one who assists the client through the process of over-coming fear in the buying decision. Traditional objection-handling techniques will not work here. All you can do is help your prospects resolve the concerns themselves by offering information or references they may know and trust.
Symptoms of Fear
Negative, nonverbal body language Unreturned phone calls Inappropriate delay Reluctance to meet One minor detail remaining… Unrealistic demand (price, delivery, etc…)
Sixth Step In Buying Process
COMMITMENT: The focus changes from the value of your solution to its cost. The focus now becomes: How much?
Why Buyers Negotiate With Sellers
When your client’s job is on the line. If your client wants internal admiration. If your client wants company recognition. If your client enjoys being tough on sales
professionals.
Sales Role # 6 THE NEGOTIATOR
THE NEGOTIATOR: Offers a discussion designed to Reach An Agreement between parties who share some interests but are at odds on others.
Win-Win Agreements Occur When
Each party felt the other party cared about his or her interests.
Each party felt the other party won as well. The self-respect of each party is intact. Each party feels the other will abide by the
agreement.
Sources of Negotiating Power
Need Options Time Relationships Investment Credibility Knowledge Skill
CFS Strategies That Strengthen your Credibility and Negotiating Position
Dress Professionally Be Prepared on Every Sales Call Use Top Quality Sales Materials Use Customer List, Testimonials, References Demonstrate Fast, Professional Follow-up Honor Your Promises
No Tricks Analysis Worksheet
Who Needs this sale more?
Options if no agreement is reached?
Events causing a Time deadline?
How important is our relationship?
How much energy has been invested?
How much credibility do I have?
Who has more knowledge / upper hand?
Who is the more skillful negotiator?
Seller Buyer
Seventh Step In Buying Process
EXPECTATIONS OF VALUE: Begins when your clients approve a sale and ends when they have successfully implemented your solution.
5 Phases of Learning a New Product
Unconscious Incompetence: Your clients don’t know what they don’t know.
Conscious Incompetence: Your clients know that they don’t know.
Conscious Competence: Your clients work hard at what they don’t know.
Unconscious Competence: Your clients don’t have to think about knowing what to do.
Conscious Unconscious Competence: Your clients can easily explain to others how to do what they can now do.
Challenges For Sales People
Expectations of Value Challenges:– Be ignorant of the learning process that change
requires.– Lack familiarity with the changes that must be
made to implement the solution.– Have undefined and unrealistic expectations of
the value of the product or service.– Have lofty expectations of the seller’s involvement
in post sale activities.
Sales Role # 7 THE TEACHER
THE TEACHER: takes their clients through a Learning Process, and learning can be annoying, frustrating, and time-consuming.
Three Steps in Teacher Role
Set Realistic objectives and expectations Show, then help do Test to measure progress
The Right Perspective
For most sales people the sales process comes to an end when the customers says “yes.” To keep Clients for Life, you must change your frame of reference, get into your customer’s head, and see things from the customer’s perspective. You must start seeing the close of a deal as the beginning of a new sales process, not the end of an old one.
Eighth Step In Buying Process
SATISFACTION: Is based on four factors:– Value achieved– Product Quality– Service Quality– Pricing
Customers Wonder…
Am I achieving the results I expected? Is the product performing as expected? Does the way I am treated by the seller’s support
services people make me feel important? Did I pay a fair price?
Customers wonders are linked back to the four satisfaction factors
Sales Role # 8 THE FARMER
THE FARMER: Must help improve the lives of others. You must have strong character and deliver what you promise. You must work hard in the field, and follow through quickly on all client requests.
You must pay attention to your customers, the way a farmer pays attention to the land, the crops, and the weather. Furthermore, all farmers are aware of this simple truth: You must sow before you reap.
Role of Farmer
Nourish a productive relationship with the buyer.
Sow new applications for your product or service
Cultivate the account Reap the fruits of your labor Plan your next season
Complex Selling to Multiple DM’s
ID the Power Broker who has:– Access to senior managers– The most to gain politically from a buying decision– Involvement in other projects– Self-confidence– Desires authority– Understands company goals and objectives– The listening ear of others
Identifying All Players on Complex Team
How will the organization make this decision? Who else besides yourself would I need to
visit with? Who will give the final okay? Who has the greatest interest in the
decision? Is there anyone on the team who is opposed
to my solution?