Wednesday, May 25, 2005
Advanced Selling Strategies
Advanced Selling Strategies
© 1996 by Brian Tracy
This book is a consolidation of decades of sales training and management experience. It seeks to summarize the basic tenets of success in the profession of sales.
To be successful in sales, find out what other successful people do and do the same thing, over and over. You will get same results. You can learn anything you need to learn to achieve any goal you want by finding out what others have done before you to get the results you want to get.
Fully 80 percent of your success as a salesperson will be determined by your attitude and 20 percent by your aptitude. You need unshakable self-confidence and enthusiasm. The very best salespeople have an attitude of calm, confident, positive, self-expectation.
Let me think it over... You know everything you need to know to make a decision right now. Why don’t you just take it? The fear of rejection is the biggest single obstacle to success in selling.
Sales success comes from being eager to call on new prospects. It comes from being eager to present your product and service as a solution to their problem. It comes from being eager to show them why their objections have not merit. It comes from being eager to ask them to make a buying decision right now. It comes from being eager to ask for referrals and to look for ways to sell more to the same customer.
What is the difference between a professional salesperson and a nonprofessional salesperson? Successful salespeople see themselves as consultants rather than as salespeople. They differentiate themselves from their competitors by being more concerned with helping their prospects than they are with selling their products or services. Their customers often feel they care more about them than they care about making a sale. And it’s true.
Doctors of selling: examination, diagnosis, and prescription. If you want to be successful, you must model yourself after successful people in your field. The sales field is full of people who do not understand this simple principle. They think they can start late, manage their time poorly, take long coffee breaks and lunch hours, spend much of their day socializing, reading the newspaper, and wasting time, quit early - and still end up making a good living and having a good life. They are dead wrong,
Your income today is your compensation for what you have done in the past. If you want to increase your compensation, you must increase the value of your contribution.
Whatever you believe, with emotion, becomes your reality. “Whatever you dwell upon grows and expands in your life. You are a living magnet and you inevitably attract into your life people and circumstances in harmony with your dominant thoughts.
Your imagination is your preview of life’s coming attractions. The faster you move, the more energy you will have. The faster you move, the more positive you will feel. Set your pace for action. Develop a sense of urgency. When you have a job to do, get on with it. Do it now, get going. Move fast, and then faster.
With clear, written goals, you can accomplish more in a year or two than the average person might accomplish in ten years or twenty. Dwell on your goals. The more you think about your goals, the more of your mental power is assigned to making those goals a reality. In 1895, Emile Coue, “Every day in every way, I’m getting better and better.”
The only way you can be a top salesperson is by having your existing customers selling for you on every occasion. This will produce mega credibility.
80% of your time is consumed by activity that only yields 20% of your business.
Farmer concept: Cultivating your market; preparing the market; planting, seeding, watering, fertilizing.
Milestone method: You can make a list of all the things that have to happen before a customer can make a buying decision. What competitors need to be outflanked? It may consist of 30 different items. You may be able to accomplish only one time on one sales call. But all the items must be covered, and usually in a particular order of sequence, before the prospect will be ready to make the buying decision. Sales manager will ask, how you are doing, and salesperson should be able to refer to a particular sales stage.
Selling involves attention, interest, desire, action. Much of the sales take place when we are not present. And it is not unusual for a sale to be derailed at the last minute by something totally unexpected.
The biggest obstacle to buying is fear of failure, experienced by the customer. The reason that qualified buyers do not buy is because they are afraid of making a mistake. This wave of fear triggers a response of “let me think it over.”
Most salespeople and prospects in this situation enter into an unspoken agreement not to put each other on the spot. They exchange social niceties and end the conversation without either one saying or doing anything to hurt the feelings of the other.
The critical factor is RISK. Four items contribute to perception of risk: the size of the sale, the number of people affected by buying decision, the length of the life of the product, and unfamiliarity with company or product. You must overcome the customer’s fear of risk if you are going to make the sale. Your job is to be the low-risk provider, not necessarily the low-price vendor. Safest and most secure purchase decision.
Sales process: Building trust, you must first establish a sense of trust from the outset. This is 40% of sales process. Next 30% is identifying needs, then presenting solutions then confirming and closing. Does this make sense to you so far? Is this what you had in mind?
Top salespeople dominate in listening. Top sales people follow the 70-30 rule. They talk and ask questions 30% of the time and listen 70% of the time.
Biggest single complaint of professional purchasers is that salespeople talk too much. Listening builds trust. Listening lowers resistance. Listening builds self-esteem. Listen attentively. Listen without interruption. Pause before replying. “How do you mean, exactly?” 85% of a person’s happiness in life comes from happy interactions with other people.
The Law of Indirect Effect in selling says that the more you concentrate on the relationship, the more the sale takes care of itself. The more you concentrate on the sell, and ignore the relationship; you may fail to make the sale.
When you call on a prospect, you should expect him to say something like “I’m not interested.” Customers fall into a comfort zone with an existing supplier and prefer to continue buying from the same supplier. Consistency is absolutely essential to maintaining momentum. Whatever you say you will do, you must do.
The friendship factor underlies all great sales success. You cannot sell to someone that you do not like. Friendship factor is based on time, caring, and respect.
Seven steps to relationship building: 1) Never criticize, complain, or condemn. Be a positive, upbeat, cheerful person. Be optimistic and encouraging. Be happy and easygoing. Be the kind of person that other people are attracted to. Never criticize or bad-mouth your competitors. Whenever the name of your competitor comes up, you simply smile and say “They are a very fine company.” And then go on with your presentation. 2) Acceptance, 3) Approval, 4) Appreciation, 5) Admiration, 6) Agreeability, 7) Focused attention.
You need mega-credibility. You need inordinate levels of credibility. Everything counts! You establish credibility with your person, your appearance, your attitude, your personality. First impressions are lasting. Do I look like a first-class professional salesperson for my company? Second area of credibility is the company - size, length of time in the business, market share. Open with credibility statements.
Next area of credibility is brochures, price lists, handouts, business cards. All true sales professionals prepare thoroughly, in every detail, every single piece of paper they are likely to show or leave with prospect. They leave nothing to chance.
Next area is telephone manners. Be upbeat and optimistic, warm and friendly.
The fastest way to build credibility is with testimonials from satisfied customers. Testimonials are powerful. Three main forms are letters, lists, and photographs. Get letters, highlight best lines, and stick in folders for sales calls. When salespeople start to use testimonial letters - their sales go up almost immediately. Salespeople who do not use testimonials have skinny kids.
Next area is outside authorities and experts who attest to the value and qualities of your product and service.
Satisfaction guarantees can back credibility. You build credibility when you match features and benefits to the specific needs.
There is no substitute for hard, hard work. You should approach selling as a profession. Process analysis is breaking the entire sale into individual specific activities. Top salespeople follow a specific sequence of activities. They see themselves as doctors. 1) Establish rapport, 2) Identify the problem, and 3) Present the solution.
Any discussion of price before buying desire is aroused is out of place.
Seven vital functions of selling: 1) Positive mental attitude, 2) Good health and appearance, 3) Complete product knowledge, 4) Continuous prospecting and new business development, 5) Presentation skills, 6) Handling objections and obtaining commitment, 7) Personal management skills. Determine to be 10% better in all of these areas.
Nine critical success factors in selling: 1) Prospecting, 2) Getting appointments, 3) Qualifying, 4) Problem identification and clarification, 5) Presenting, 6) Answering objections, 7) Closing, 8) Follow-through and delivery, 9) Resales and referrals.
Anticipate and answer each question and concern of my prospect in such a way that the prospect is satisfied with my answer and the objections is dropped and never brought up again.
The Law of Accumulation states that all great successes in human endeavor is an accumulation of hundreds and even thousands of tiny events and activities that nobody ever sees or appreciates. The Law of Continuous Improvement is based on the “kaizen” principle practices throughout Japanese industry. Kaizen means continuous betterment.
Why People Buy: People buy to alleviate dissatisfaction. People do not like change, they fear it. They avoid it at all cost. Top salespeople talk about what it DOES while average salespeople talk about what it IS.
If you have correctly identified an emotional hot button, your customer will react, often physically.
Three favorite questions: 1) Mr. Prospect, what would you absolutely have to be convinced of for you to go ahead with this buying decision? 2) Mr. Prospect, if you were ever to buy this product, what would you want it to do for you at that time? 3) Mr. Prospect, if this product was free, would you take it? - When prospect answers that, yes, if it was free, they would take it, you pause and then ask “Why?”
90% of the buying decision will hang on 10% of the actual benefits. Focus on the benefits of those 10%.
Four aspects of your product: 1) Generic product, 2) Expected product, 3) Augmented element - go beyond expectations. 4) Potential product - Area of creativity and innovation, something unique and different than anything in the marketplace.
Price is seldom the reason for buying anything. Fully 94% of all purchases in America are made on a non-price basis.
Is there anyone, besides yourself, who will be involved in the final decision? Be prepared to press this point until you get a definitive answer. Do not allow low-level decision-makers to waste your time.
How the customer feels about you as a person is a critical issue in superior selling. Customers will pay more, for less, to buy from someone with whom they feel completely comfortable than they ever would in dealing with someone who made them uneasy for any reason.
You must find out why it is that people do not buy from you, or why they buy from your competitors. Make a list of your 10 recent customers, phone them, small talk and then “Could you tell me, what was the REAL reason you decided to buy from me rather than from someone else.” Remain perfectly silent. Write down every word the prospect uses, look from primary motivators, and listen for feeling words.
Call customers who you lost - ask “I am trying to be a better salesperson for my customers, what was the REAL reason that you decided to buy from XYZ Corporation? Every product has its strengths and weaknesses and it would really help me to know, from your perspective, what you felt were the strengths and weaknesses of my presentation.
The sale is often made or lost within the first thirty seconds. Your prospects form a judgment about you in the first four seconds and confirm it as soon as you open your mouth. For this reason, top salespeople in every field consciously and deliberately do everything possible to create an image of competence and professionalism in the first few minutes.
Human beings are intensely visual. What a customer sees has 22X the impact of something he hears. Customers engage in sorting behavior by the use of visual perception.
Your briefcase should be the very best possible and look clean and presentable in every respect. Your posture is terribly important. Stand up and sit up straight as an arrow. Lifting your chin changes your attitude and physiology. When you sit in your customer’s presence, avoid leaning against the back of the chair. Sit slightly forward so that your back is forced straight. Position yourself side by side to prospect, to their immediate left. Avoid a situation where you are between two customers or across the table from them.
In mirroring and matching you assume the same bodily posture as your customer, with a five second delay after your customer moves.
People like to be around positive, happy people.
Your initial goal is to build expectancy. It is to make the customer feel happy that he has given you his time. It is to build the customer’s anticipation of the sales message to come. Thank you for your time. You’re going to be very happy with what I have to show you. These words arouse curiosity and interest and open the customer to listening and paying serious attention to you.
How would I prospect, who would I call, what would I do differently if I was totally unafraid? There is turnover of about one-third of salespeople in America every year.
To increase your sales, you must spend more time with better prospects.
Define clearly the attributes of an excellent prospect. Then find as many as you can. Determine prospects quality ranking on scale of 1-10. 1) Pressing need, 2) Clear cost-benefit relationship, 3) Positive attitude towards you/product/company, 4) Large sale is possible, 5) Prospect is center of influence, 6) Financially sound, 7) Close to your office.
Of all the prospects that you have, is this the most valuable prospect that you could be calling on, all things considered?
The greater the quality and quantity of prospects that go into the top of your sales hopper, or funnel, the greater will be the size and value of the customers that emerge from the bottom.
What do I sell? What exactly do I sell? The amateur tends to respond in terms of the qualities, characteristics and features of the product or service. They focus on what the product IS. The professional focuses single-mindedly on the specific problems or goals and what the product enables the customer to DO in terms of improving his work.
3-3-3 analysis: List three reasons why someone should purchase your product or service at all. List three reasons why someone who has decided to buy your product should buy it from your company. List three reasons why they should buy it from YOU personally rather than from another salesperson in the company.
Who is my customer? Why does my customer buy? Where is my prospect? When does my customer buy? Why doesn’t my customer buy? Who is my competitor? Who are my non-customers? The largest market is always the non-customers.
Four different types of prospects: 1) the successful prospect. 2) Person with a problem, 3) Complacent or satisfied prospect, 4) Negative or difficult person.
Prospects from hell: Generally negative person, difficult for you to demonstrate the value of your product, small sale, no opportunities for follow-up sales, limited value for testimonials, his business is not doing well, geographically distant.
Fully 99% of your initial contact and subsequent follow-up with your prospects will be by telephone. The key questions you must be prepared to answer: “Why should I listen to you?”
To arrange an appointment on the phone, you first need to make sure you are speaking to the right person; second, your visit will be short, third, no pressure, fourth, no obligation.
“I’d like to buy I have something I must SHOW you - cannot talk on the phone. Why don’t I drop it off in person? In making appointments on the phone, there is a huge difference between being persistent and insistent.
Many of your very best customers will initially reject your overtures when you telephone or call upon them for the first time. Condition yourself to looking forward to prospecting.
Four gambits on the first call: 1) Gratitude, 2) Building expectancy, 3) Reversal - written agenda of 3-5 questions, 4) Ask “How did you get into this business (line of work?), most people are fascinated with their career paths and if you ask him about it, he will usually be happy to tell you about himself, giving you an opportunity to listen and build trust.
Presentations: To sell successfully, you must do four things over and over: 1) Prospect, 2) Qualify, 3) Present - you must demonstrate to your prospect that your product or service is the best choice solution to his problem. 4) Close - answer questions and objections and get commitment from him to take action.
The best salespeople are those who confidently and deliberately control the sales process, leading rather than following.
The more you talk, the more time the prospect has to think of objections, criticisms, doubts, fears, etc.
The basic rule is never say anything if you can ask it. The biggest complaint of purchasing people is that salespeople talk too much. What people like most are salespeople who listen carefully to them.
Ben Feldman, the legendary insurance salesman from New York - the Feldman method was the penetrating question. Finding the idea - when someone asks a question, smile, relax, and ask a question in return.
Three powerful words: How do you feel about that? Do you think this would be better than what you are currently using? “In your opinion, is this the best choice of products to solve this problem?
Three-year meeting is that you have been calling the prospect for three years and have been told that he is in a meeting.
Human beings have a herd instinct. We are more convinced that a product or service is good when we learn that lots of other people have already bought it and are satisfied with it. We don’t want to make a mistake.
“Do you know VERY much about my company?” State company size, how long your company has been in business, your market share, etc.
A good question ratio is two business questions for one personal question.
The Law of Four states that most buying decisions revolve around 4 key items – one major item and three minor items. Price is the amount that you pay to acquire the item initially. Cost is the actual outlay over the life of the item.
Whatever you do, your most important consideration should be: -- insert unique selling proposition.
What would it take to satisfy you on that point? This is called a closing condition.
Once you have found the hot button, you must bring the whole sale to hang on this particular point.
Imprinting: When you own, buy it today, start using it, take it with you, why don’t you take it with you.
Tools for presentations: 1) product knowledge, 2) customer knowledge (there is nothing more flattering to a customer than for him to realize that you have taken a good deal of time to find out more about his situation and how your product can help him before you meet him. Do your homework, leave nothing to chance. 3) Thorough preparation, a written agenda of your objectives for the meeting is very impressive. It marks you as a true sales professional.
In my studies of successful people over the years, I have never found anyone who is a late riser.
Presentation process: How does this sound to you? Does this make sense to you so far? Would this particular feature be useful to you in your current operation? Do you like this color? Will this be an improvement over what you are doing right now? Is this what you had in mind?
During the presentation, the power of suggestion is very strong. You use the power of suggestion by continually talking about how happy the prospect will be when he begins using your product.
To make a complex sale, you must accomplish certain objectives with each call. At the end of each sales conversation, you should take the initiative by saying something like, “Based on our discussion, what I recommend is that we get together again toward the end of next week, by which time I’ll have some numbers and comparisons for you to review before we go to the next step. How does that sound to you? Then, get a fixed appointment date and time BEFORE you leave.
If they don’t buy from you, they will buy from someone else.
Objections cluster around 6 areas: 1) Price, 2) Performance, 3) Follow-up service, 4) Competition, 5) Support, 6) Warranties and assurances. You must define each major objection in about 25 words or less in the form of a question that might be asked by a demanding prospect. Do this for each of your six major objections. Once you have defined them clearly, your job is to develop bulletproof answers to each of these questions. Your job is to plan an airtight, logical, powerful response backed by proof, testimonials, research results, and written comparison data.
Whatever your major objection is, be prepared to hit it hard up front. Grab it and slam it to the mat. Eliminate it as an objection so that the prospect cannot come back later and use it as the reason for not going forward. Answer objections when they come up early.
Say: “That’s a good question! I’m glad you asked that!” The first ten or 15 words out of your mouth set the stage - either they connect with the prospect’s real concerns or they do not.
When the prospect won’t proceed, ask “Mr. Prospect, there seems to be some question in your mind that’s causing you to hesitate about going ahead right now. Do you mind if I ask what it is? Acknowledge it and then ask, “That’s a good question, Mr. Prospect. I’m glad you asked it. And in addition to that, is there any other reason why you might be hesitating about going ahead with this offer right now?” Keep asking until they say it is their last concern. Wait until the customer says something like - “Yes, if you can take care of that concern, I don’t see any reason not to go ahead.” You then ask “Mr. Prospect, you tell me. What would it take to satisfy you in that area?”
When customers are interviewed by salesperson, they may state price is reason for sale not closing. But 68% then admit to other interviewers that price was not the reason. Why does one product sell for more or less than another? It is because of differentiation. Your job is to differentiate your product on the basis of non price factors and then concentrate your sales presentation on the benefits your prospect receives aside and apart from the actual price he pays.
“Mr. Prospect, is price your only concern? Are you going to make your decision in this area solely on the basis of price?” Junior purchasing officers are most concerned with price, senior are not.
No one is likely to pay more for what appears to him to be an identical product or service. Your ability to differentiate your product from those of your competitors and then to show your prospect that the value he receives more than offsets the additional price he pays is your key to success.
“Why do you say that? Why do you feel that way? Never use price reduction to arouse buying desire.
Buying desire reduces price sensitivity. The more he wants it, the less sensitive he is to the price.
Show that the product does not cost too much. Ask how far apart we are - as in 10,000 versus 14,000 is really a difference of 4,000, not a price of 14,000. Divide the 4,000 over the life of the product of 5 years = 800 per year or 60-70 per month, etc. Show how product is so far easier to use that for using the product perhaps 5 hours per week and 20% more productive = 1 hour saved per week or 5 per month = $150 per month, etc. etc.
“Mr. Prospect, did you ever get anything cheap that turned out to be good?”
90% of sales take place after the fifth call. And the fifth time the salesperson asks the prospect to make a commitment. The same studies show that most salespeople give up after the first call. That is why 10% of salespeople open up 80% of new accounts and earn 80% of commission payable in any industry.
Customers like to be asked, they need to be asked. Salespeople often carry the sales process through to the final moment and then pull back for fear of offending or antagonizing the prospect. They want you to ask them for the order.
Ten closing requirements: 1) Customer must want what you are selling, 2) Customer must believe in you, 3) Customer must need the product, 4) Customer must be able to use it, 5) Customer must be able to afford it, 6) Customer must completely understand the full nature and scope of the requirement, 7) Salesperson must be eager to make the sale, 8) Salesperson must have sound closing skills, 9) Salesperson must be prepared to hear no and continue selling, 10) Salesperson must be prepared to remain silent after asking the closing question. The very best salespeople are masters in the use of silence during the selling conversation.
Five errors to avoid when closing the sale: 1) Arguing, 2) Expressing personal opinions, 3) Knocking the competition (the fragrance of whatever you throw seems to linger on your hand, and when you are selling, the fragrance seems to hover around your product. Never discuss them by name. Never bring them up to compare your product with theirs or attack them for any reason. Instead of attacking them by name, you can instead attack their methods or processes as being inadequate or insufficient to solve this customer’s specific problems. 4) Overselling, 5) Assuming authority that you do not have.
An important reason salespeople fail to make sales is negative expectations. Selling has been defined as a “transfer of enthusiasm.” 2) Lack of sincerity. 3) Different wavelengths. 4) Personality clash between you and the prospect.
Buying signals are 55% by body language. 1) When prospect asks about price and terms. 2) Customer asks for more details about some aspect of product. 3) Asks about delivery. 4) Chin rubbing (pause because he no longer hears you until his hand comes down from his chin. 5) Calculating numbers, 6) Sudden friendliness. 7) Smokescreen objections like “How do I know I am getting the best deal?”
You should always reassure him that he is making a good decision. You’ve made a good choice! You are really going to be happy with this once you start using it.
Seven closing techniques: 1) Invitational close “If you like what I’ve shown you, why don’t you give it a try?” 2) Directive close - assumption close, post-closing technique - move focus to enjoyment and ownership of the product. Describe the plan of action. If you get an objection, you answer and continue with the close. 3) Alternative close, preference close - which would you prefer A or B? 4) Secondary close, make a small decision first, ask a question about a peripheral detail - incremental close, 5) Authorization close - well then, if you would just authorize this, we can begin. 6) Ultimatum close, use this when you have gone back and forth a good amount of time. You need to get a resolution so that you can either close the sale or get on to other prospects who represent greater opportunities to sell. 7) Order sheet close. 8) I want to think it over close. They need a little extra push. Mr. Prospect, obviously you will have a good reason for wanting to think it over. May I ask what it is? Is it the money?
The world belongs to the askers. Most of all, ask for orders. Once you have decided what you want, act as if it was impossible to fail, and it shall be!
Amazon: http://www.amazon.com/exec/obidos/ASIN/0684824744
© 1996 by Brian Tracy
This book is a consolidation of decades of sales training and management experience. It seeks to summarize the basic tenets of success in the profession of sales.
To be successful in sales, find out what other successful people do and do the same thing, over and over. You will get same results. You can learn anything you need to learn to achieve any goal you want by finding out what others have done before you to get the results you want to get.
Fully 80 percent of your success as a salesperson will be determined by your attitude and 20 percent by your aptitude. You need unshakable self-confidence and enthusiasm. The very best salespeople have an attitude of calm, confident, positive, self-expectation.
Let me think it over... You know everything you need to know to make a decision right now. Why don’t you just take it? The fear of rejection is the biggest single obstacle to success in selling.
Sales success comes from being eager to call on new prospects. It comes from being eager to present your product and service as a solution to their problem. It comes from being eager to show them why their objections have not merit. It comes from being eager to ask them to make a buying decision right now. It comes from being eager to ask for referrals and to look for ways to sell more to the same customer.
What is the difference between a professional salesperson and a nonprofessional salesperson? Successful salespeople see themselves as consultants rather than as salespeople. They differentiate themselves from their competitors by being more concerned with helping their prospects than they are with selling their products or services. Their customers often feel they care more about them than they care about making a sale. And it’s true.
Doctors of selling: examination, diagnosis, and prescription. If you want to be successful, you must model yourself after successful people in your field. The sales field is full of people who do not understand this simple principle. They think they can start late, manage their time poorly, take long coffee breaks and lunch hours, spend much of their day socializing, reading the newspaper, and wasting time, quit early - and still end up making a good living and having a good life. They are dead wrong,
Your income today is your compensation for what you have done in the past. If you want to increase your compensation, you must increase the value of your contribution.
Whatever you believe, with emotion, becomes your reality. “Whatever you dwell upon grows and expands in your life. You are a living magnet and you inevitably attract into your life people and circumstances in harmony with your dominant thoughts.
Your imagination is your preview of life’s coming attractions. The faster you move, the more energy you will have. The faster you move, the more positive you will feel. Set your pace for action. Develop a sense of urgency. When you have a job to do, get on with it. Do it now, get going. Move fast, and then faster.
With clear, written goals, you can accomplish more in a year or two than the average person might accomplish in ten years or twenty. Dwell on your goals. The more you think about your goals, the more of your mental power is assigned to making those goals a reality. In 1895, Emile Coue, “Every day in every way, I’m getting better and better.”
The only way you can be a top salesperson is by having your existing customers selling for you on every occasion. This will produce mega credibility.
80% of your time is consumed by activity that only yields 20% of your business.
Farmer concept: Cultivating your market; preparing the market; planting, seeding, watering, fertilizing.
Milestone method: You can make a list of all the things that have to happen before a customer can make a buying decision. What competitors need to be outflanked? It may consist of 30 different items. You may be able to accomplish only one time on one sales call. But all the items must be covered, and usually in a particular order of sequence, before the prospect will be ready to make the buying decision. Sales manager will ask, how you are doing, and salesperson should be able to refer to a particular sales stage.
Selling involves attention, interest, desire, action. Much of the sales take place when we are not present. And it is not unusual for a sale to be derailed at the last minute by something totally unexpected.
The biggest obstacle to buying is fear of failure, experienced by the customer. The reason that qualified buyers do not buy is because they are afraid of making a mistake. This wave of fear triggers a response of “let me think it over.”
Most salespeople and prospects in this situation enter into an unspoken agreement not to put each other on the spot. They exchange social niceties and end the conversation without either one saying or doing anything to hurt the feelings of the other.
The critical factor is RISK. Four items contribute to perception of risk: the size of the sale, the number of people affected by buying decision, the length of the life of the product, and unfamiliarity with company or product. You must overcome the customer’s fear of risk if you are going to make the sale. Your job is to be the low-risk provider, not necessarily the low-price vendor. Safest and most secure purchase decision.
Sales process: Building trust, you must first establish a sense of trust from the outset. This is 40% of sales process. Next 30% is identifying needs, then presenting solutions then confirming and closing. Does this make sense to you so far? Is this what you had in mind?
Top salespeople dominate in listening. Top sales people follow the 70-30 rule. They talk and ask questions 30% of the time and listen 70% of the time.
Biggest single complaint of professional purchasers is that salespeople talk too much. Listening builds trust. Listening lowers resistance. Listening builds self-esteem. Listen attentively. Listen without interruption. Pause before replying. “How do you mean, exactly?” 85% of a person’s happiness in life comes from happy interactions with other people.
The Law of Indirect Effect in selling says that the more you concentrate on the relationship, the more the sale takes care of itself. The more you concentrate on the sell, and ignore the relationship; you may fail to make the sale.
When you call on a prospect, you should expect him to say something like “I’m not interested.” Customers fall into a comfort zone with an existing supplier and prefer to continue buying from the same supplier. Consistency is absolutely essential to maintaining momentum. Whatever you say you will do, you must do.
The friendship factor underlies all great sales success. You cannot sell to someone that you do not like. Friendship factor is based on time, caring, and respect.
Seven steps to relationship building: 1) Never criticize, complain, or condemn. Be a positive, upbeat, cheerful person. Be optimistic and encouraging. Be happy and easygoing. Be the kind of person that other people are attracted to. Never criticize or bad-mouth your competitors. Whenever the name of your competitor comes up, you simply smile and say “They are a very fine company.” And then go on with your presentation. 2) Acceptance, 3) Approval, 4) Appreciation, 5) Admiration, 6) Agreeability, 7) Focused attention.
You need mega-credibility. You need inordinate levels of credibility. Everything counts! You establish credibility with your person, your appearance, your attitude, your personality. First impressions are lasting. Do I look like a first-class professional salesperson for my company? Second area of credibility is the company - size, length of time in the business, market share. Open with credibility statements.
Next area of credibility is brochures, price lists, handouts, business cards. All true sales professionals prepare thoroughly, in every detail, every single piece of paper they are likely to show or leave with prospect. They leave nothing to chance.
Next area is telephone manners. Be upbeat and optimistic, warm and friendly.
The fastest way to build credibility is with testimonials from satisfied customers. Testimonials are powerful. Three main forms are letters, lists, and photographs. Get letters, highlight best lines, and stick in folders for sales calls. When salespeople start to use testimonial letters - their sales go up almost immediately. Salespeople who do not use testimonials have skinny kids.
Next area is outside authorities and experts who attest to the value and qualities of your product and service.
Satisfaction guarantees can back credibility. You build credibility when you match features and benefits to the specific needs.
There is no substitute for hard, hard work. You should approach selling as a profession. Process analysis is breaking the entire sale into individual specific activities. Top salespeople follow a specific sequence of activities. They see themselves as doctors. 1) Establish rapport, 2) Identify the problem, and 3) Present the solution.
Any discussion of price before buying desire is aroused is out of place.
Seven vital functions of selling: 1) Positive mental attitude, 2) Good health and appearance, 3) Complete product knowledge, 4) Continuous prospecting and new business development, 5) Presentation skills, 6) Handling objections and obtaining commitment, 7) Personal management skills. Determine to be 10% better in all of these areas.
Nine critical success factors in selling: 1) Prospecting, 2) Getting appointments, 3) Qualifying, 4) Problem identification and clarification, 5) Presenting, 6) Answering objections, 7) Closing, 8) Follow-through and delivery, 9) Resales and referrals.
Anticipate and answer each question and concern of my prospect in such a way that the prospect is satisfied with my answer and the objections is dropped and never brought up again.
The Law of Accumulation states that all great successes in human endeavor is an accumulation of hundreds and even thousands of tiny events and activities that nobody ever sees or appreciates. The Law of Continuous Improvement is based on the “kaizen” principle practices throughout Japanese industry. Kaizen means continuous betterment.
Why People Buy: People buy to alleviate dissatisfaction. People do not like change, they fear it. They avoid it at all cost. Top salespeople talk about what it DOES while average salespeople talk about what it IS.
If you have correctly identified an emotional hot button, your customer will react, often physically.
Three favorite questions: 1) Mr. Prospect, what would you absolutely have to be convinced of for you to go ahead with this buying decision? 2) Mr. Prospect, if you were ever to buy this product, what would you want it to do for you at that time? 3) Mr. Prospect, if this product was free, would you take it? - When prospect answers that, yes, if it was free, they would take it, you pause and then ask “Why?”
90% of the buying decision will hang on 10% of the actual benefits. Focus on the benefits of those 10%.
Four aspects of your product: 1) Generic product, 2) Expected product, 3) Augmented element - go beyond expectations. 4) Potential product - Area of creativity and innovation, something unique and different than anything in the marketplace.
Price is seldom the reason for buying anything. Fully 94% of all purchases in America are made on a non-price basis.
Is there anyone, besides yourself, who will be involved in the final decision? Be prepared to press this point until you get a definitive answer. Do not allow low-level decision-makers to waste your time.
How the customer feels about you as a person is a critical issue in superior selling. Customers will pay more, for less, to buy from someone with whom they feel completely comfortable than they ever would in dealing with someone who made them uneasy for any reason.
You must find out why it is that people do not buy from you, or why they buy from your competitors. Make a list of your 10 recent customers, phone them, small talk and then “Could you tell me, what was the REAL reason you decided to buy from me rather than from someone else.” Remain perfectly silent. Write down every word the prospect uses, look from primary motivators, and listen for feeling words.
Call customers who you lost - ask “I am trying to be a better salesperson for my customers, what was the REAL reason that you decided to buy from XYZ Corporation? Every product has its strengths and weaknesses and it would really help me to know, from your perspective, what you felt were the strengths and weaknesses of my presentation.
The sale is often made or lost within the first thirty seconds. Your prospects form a judgment about you in the first four seconds and confirm it as soon as you open your mouth. For this reason, top salespeople in every field consciously and deliberately do everything possible to create an image of competence and professionalism in the first few minutes.
Human beings are intensely visual. What a customer sees has 22X the impact of something he hears. Customers engage in sorting behavior by the use of visual perception.
Your briefcase should be the very best possible and look clean and presentable in every respect. Your posture is terribly important. Stand up and sit up straight as an arrow. Lifting your chin changes your attitude and physiology. When you sit in your customer’s presence, avoid leaning against the back of the chair. Sit slightly forward so that your back is forced straight. Position yourself side by side to prospect, to their immediate left. Avoid a situation where you are between two customers or across the table from them.
In mirroring and matching you assume the same bodily posture as your customer, with a five second delay after your customer moves.
People like to be around positive, happy people.
Your initial goal is to build expectancy. It is to make the customer feel happy that he has given you his time. It is to build the customer’s anticipation of the sales message to come. Thank you for your time. You’re going to be very happy with what I have to show you. These words arouse curiosity and interest and open the customer to listening and paying serious attention to you.
How would I prospect, who would I call, what would I do differently if I was totally unafraid? There is turnover of about one-third of salespeople in America every year.
To increase your sales, you must spend more time with better prospects.
Define clearly the attributes of an excellent prospect. Then find as many as you can. Determine prospects quality ranking on scale of 1-10. 1) Pressing need, 2) Clear cost-benefit relationship, 3) Positive attitude towards you/product/company, 4) Large sale is possible, 5) Prospect is center of influence, 6) Financially sound, 7) Close to your office.
Of all the prospects that you have, is this the most valuable prospect that you could be calling on, all things considered?
The greater the quality and quantity of prospects that go into the top of your sales hopper, or funnel, the greater will be the size and value of the customers that emerge from the bottom.
What do I sell? What exactly do I sell? The amateur tends to respond in terms of the qualities, characteristics and features of the product or service. They focus on what the product IS. The professional focuses single-mindedly on the specific problems or goals and what the product enables the customer to DO in terms of improving his work.
3-3-3 analysis: List three reasons why someone should purchase your product or service at all. List three reasons why someone who has decided to buy your product should buy it from your company. List three reasons why they should buy it from YOU personally rather than from another salesperson in the company.
Who is my customer? Why does my customer buy? Where is my prospect? When does my customer buy? Why doesn’t my customer buy? Who is my competitor? Who are my non-customers? The largest market is always the non-customers.
Four different types of prospects: 1) the successful prospect. 2) Person with a problem, 3) Complacent or satisfied prospect, 4) Negative or difficult person.
Prospects from hell: Generally negative person, difficult for you to demonstrate the value of your product, small sale, no opportunities for follow-up sales, limited value for testimonials, his business is not doing well, geographically distant.
Fully 99% of your initial contact and subsequent follow-up with your prospects will be by telephone. The key questions you must be prepared to answer: “Why should I listen to you?”
To arrange an appointment on the phone, you first need to make sure you are speaking to the right person; second, your visit will be short, third, no pressure, fourth, no obligation.
“I’d like to buy I have something I must SHOW you - cannot talk on the phone. Why don’t I drop it off in person? In making appointments on the phone, there is a huge difference between being persistent and insistent.
Many of your very best customers will initially reject your overtures when you telephone or call upon them for the first time. Condition yourself to looking forward to prospecting.
Four gambits on the first call: 1) Gratitude, 2) Building expectancy, 3) Reversal - written agenda of 3-5 questions, 4) Ask “How did you get into this business (line of work?), most people are fascinated with their career paths and if you ask him about it, he will usually be happy to tell you about himself, giving you an opportunity to listen and build trust.
Presentations: To sell successfully, you must do four things over and over: 1) Prospect, 2) Qualify, 3) Present - you must demonstrate to your prospect that your product or service is the best choice solution to his problem. 4) Close - answer questions and objections and get commitment from him to take action.
The best salespeople are those who confidently and deliberately control the sales process, leading rather than following.
The more you talk, the more time the prospect has to think of objections, criticisms, doubts, fears, etc.
The basic rule is never say anything if you can ask it. The biggest complaint of purchasing people is that salespeople talk too much. What people like most are salespeople who listen carefully to them.
Ben Feldman, the legendary insurance salesman from New York - the Feldman method was the penetrating question. Finding the idea - when someone asks a question, smile, relax, and ask a question in return.
Three powerful words: How do you feel about that? Do you think this would be better than what you are currently using? “In your opinion, is this the best choice of products to solve this problem?
Three-year meeting is that you have been calling the prospect for three years and have been told that he is in a meeting.
Human beings have a herd instinct. We are more convinced that a product or service is good when we learn that lots of other people have already bought it and are satisfied with it. We don’t want to make a mistake.
“Do you know VERY much about my company?” State company size, how long your company has been in business, your market share, etc.
A good question ratio is two business questions for one personal question.
The Law of Four states that most buying decisions revolve around 4 key items – one major item and three minor items. Price is the amount that you pay to acquire the item initially. Cost is the actual outlay over the life of the item.
Whatever you do, your most important consideration should be: -- insert unique selling proposition.
What would it take to satisfy you on that point? This is called a closing condition.
Once you have found the hot button, you must bring the whole sale to hang on this particular point.
Imprinting: When you own, buy it today, start using it, take it with you, why don’t you take it with you.
Tools for presentations: 1) product knowledge, 2) customer knowledge (there is nothing more flattering to a customer than for him to realize that you have taken a good deal of time to find out more about his situation and how your product can help him before you meet him. Do your homework, leave nothing to chance. 3) Thorough preparation, a written agenda of your objectives for the meeting is very impressive. It marks you as a true sales professional.
In my studies of successful people over the years, I have never found anyone who is a late riser.
Presentation process: How does this sound to you? Does this make sense to you so far? Would this particular feature be useful to you in your current operation? Do you like this color? Will this be an improvement over what you are doing right now? Is this what you had in mind?
During the presentation, the power of suggestion is very strong. You use the power of suggestion by continually talking about how happy the prospect will be when he begins using your product.
To make a complex sale, you must accomplish certain objectives with each call. At the end of each sales conversation, you should take the initiative by saying something like, “Based on our discussion, what I recommend is that we get together again toward the end of next week, by which time I’ll have some numbers and comparisons for you to review before we go to the next step. How does that sound to you? Then, get a fixed appointment date and time BEFORE you leave.
If they don’t buy from you, they will buy from someone else.
Objections cluster around 6 areas: 1) Price, 2) Performance, 3) Follow-up service, 4) Competition, 5) Support, 6) Warranties and assurances. You must define each major objection in about 25 words or less in the form of a question that might be asked by a demanding prospect. Do this for each of your six major objections. Once you have defined them clearly, your job is to develop bulletproof answers to each of these questions. Your job is to plan an airtight, logical, powerful response backed by proof, testimonials, research results, and written comparison data.
Whatever your major objection is, be prepared to hit it hard up front. Grab it and slam it to the mat. Eliminate it as an objection so that the prospect cannot come back later and use it as the reason for not going forward. Answer objections when they come up early.
Say: “That’s a good question! I’m glad you asked that!” The first ten or 15 words out of your mouth set the stage - either they connect with the prospect’s real concerns or they do not.
When the prospect won’t proceed, ask “Mr. Prospect, there seems to be some question in your mind that’s causing you to hesitate about going ahead right now. Do you mind if I ask what it is? Acknowledge it and then ask, “That’s a good question, Mr. Prospect. I’m glad you asked it. And in addition to that, is there any other reason why you might be hesitating about going ahead with this offer right now?” Keep asking until they say it is their last concern. Wait until the customer says something like - “Yes, if you can take care of that concern, I don’t see any reason not to go ahead.” You then ask “Mr. Prospect, you tell me. What would it take to satisfy you in that area?”
When customers are interviewed by salesperson, they may state price is reason for sale not closing. But 68% then admit to other interviewers that price was not the reason. Why does one product sell for more or less than another? It is because of differentiation. Your job is to differentiate your product on the basis of non price factors and then concentrate your sales presentation on the benefits your prospect receives aside and apart from the actual price he pays.
“Mr. Prospect, is price your only concern? Are you going to make your decision in this area solely on the basis of price?” Junior purchasing officers are most concerned with price, senior are not.
No one is likely to pay more for what appears to him to be an identical product or service. Your ability to differentiate your product from those of your competitors and then to show your prospect that the value he receives more than offsets the additional price he pays is your key to success.
“Why do you say that? Why do you feel that way? Never use price reduction to arouse buying desire.
Buying desire reduces price sensitivity. The more he wants it, the less sensitive he is to the price.
Show that the product does not cost too much. Ask how far apart we are - as in 10,000 versus 14,000 is really a difference of 4,000, not a price of 14,000. Divide the 4,000 over the life of the product of 5 years = 800 per year or 60-70 per month, etc. Show how product is so far easier to use that for using the product perhaps 5 hours per week and 20% more productive = 1 hour saved per week or 5 per month = $150 per month, etc. etc.
“Mr. Prospect, did you ever get anything cheap that turned out to be good?”
90% of sales take place after the fifth call. And the fifth time the salesperson asks the prospect to make a commitment. The same studies show that most salespeople give up after the first call. That is why 10% of salespeople open up 80% of new accounts and earn 80% of commission payable in any industry.
Customers like to be asked, they need to be asked. Salespeople often carry the sales process through to the final moment and then pull back for fear of offending or antagonizing the prospect. They want you to ask them for the order.
Ten closing requirements: 1) Customer must want what you are selling, 2) Customer must believe in you, 3) Customer must need the product, 4) Customer must be able to use it, 5) Customer must be able to afford it, 6) Customer must completely understand the full nature and scope of the requirement, 7) Salesperson must be eager to make the sale, 8) Salesperson must have sound closing skills, 9) Salesperson must be prepared to hear no and continue selling, 10) Salesperson must be prepared to remain silent after asking the closing question. The very best salespeople are masters in the use of silence during the selling conversation.
Five errors to avoid when closing the sale: 1) Arguing, 2) Expressing personal opinions, 3) Knocking the competition (the fragrance of whatever you throw seems to linger on your hand, and when you are selling, the fragrance seems to hover around your product. Never discuss them by name. Never bring them up to compare your product with theirs or attack them for any reason. Instead of attacking them by name, you can instead attack their methods or processes as being inadequate or insufficient to solve this customer’s specific problems. 4) Overselling, 5) Assuming authority that you do not have.
An important reason salespeople fail to make sales is negative expectations. Selling has been defined as a “transfer of enthusiasm.” 2) Lack of sincerity. 3) Different wavelengths. 4) Personality clash between you and the prospect.
Buying signals are 55% by body language. 1) When prospect asks about price and terms. 2) Customer asks for more details about some aspect of product. 3) Asks about delivery. 4) Chin rubbing (pause because he no longer hears you until his hand comes down from his chin. 5) Calculating numbers, 6) Sudden friendliness. 7) Smokescreen objections like “How do I know I am getting the best deal?”
You should always reassure him that he is making a good decision. You’ve made a good choice! You are really going to be happy with this once you start using it.
Seven closing techniques: 1) Invitational close “If you like what I’ve shown you, why don’t you give it a try?” 2) Directive close - assumption close, post-closing technique - move focus to enjoyment and ownership of the product. Describe the plan of action. If you get an objection, you answer and continue with the close. 3) Alternative close, preference close - which would you prefer A or B? 4) Secondary close, make a small decision first, ask a question about a peripheral detail - incremental close, 5) Authorization close - well then, if you would just authorize this, we can begin. 6) Ultimatum close, use this when you have gone back and forth a good amount of time. You need to get a resolution so that you can either close the sale or get on to other prospects who represent greater opportunities to sell. 7) Order sheet close. 8) I want to think it over close. They need a little extra push. Mr. Prospect, obviously you will have a good reason for wanting to think it over. May I ask what it is? Is it the money?
The world belongs to the askers. Most of all, ask for orders. Once you have decided what you want, act as if it was impossible to fail, and it shall be!
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