Sales and Negotiation Techniques for Effective Business Interactions
T.6.1. Sales Dashboard
A synthetic document that allows periodic and systematic monitoring and control of the company’s sales activity in general and each seller in particular.
– Components: Market delimitation, market share by seller, achievement of objectives by seller, status by seller, product analysis, customer analysis, control of salespeople’s work, evaluation of them, commercial management control.
2. Sales Control
Not only implies volume control but also includes other indicators that indirectly influence volume.
– Indicators: Annuals, mobile (MAT), and diagnostic.
3. Sales Representative Behavior Evaluation
Includes time dedicated to commercial activity, phone calls, promotional actions, information provided to the company, and quality of service provided.
4. Part of a Dashboard
a. Financial Perspective
Focuses on the financial objectives of the organization and tracks financial performance, such as profitability, revenue growth, and shareholder value. If we succeed, how will we look to our shareholders?
– Examples of Metrics: Return on investment (ROI), earnings per share (EPS), revenue growth, cost reduction.
b. Customer Perspective
Concentrates on customer satisfaction and retention, aiming to understand how the company can add value to its customers and differentiate itself from competitors. To achieve our vision, how must we look to our customers?
– Examples of Metrics: Customer satisfaction score, customer retention rate, market share, number of customer complaints.
c. Internal Process Perspective
Focuses on the internal operational goals and outlines the key processes necessary to deliver the customer objectives. To satisfy our customers, which processes must we excel at?
– Examples of Metrics: Cycle time, production efficiency, quality control measures, process improvement rates.
d. Learning and Growth Perspective
Centers on the intangible assets of an organization, primarily focusing on human capital, information capital, and organizational capital. This perspective aims to foster a culture of continuous improvement and innovation. To achieve our vision, how must our organization learn and improve?
– Examples of Metrics: Employee satisfaction, employee turnover rate, training and development hours, innovation capacity, number of new skills learned.
T.7. 1. Typology of Sellers
Include dependents, shop and trade sellers, promoters, technical sellers, trusted service sellers, indirect or political sellers.
2. Seller Profile
Physical condition, character, intelligence, personality, knowledge, and skills.
3. Characteristics of a Good Communicator
Must enjoy communicating, sincerely care about others, have enthusiasm, imagination, kindness, and be approachable.
4. Establishment and Development of Client Relationships
Building relationships based on ethical values and responsibilities, providing value through the product, the company, and the seller.
Tipos de consumers
1. NO Satisfecho + NO Leal: Terrorist (hater – sabotages)
– Description: This type of consumer is not satisfied with the products or services and also shows no loyalty to the brand. They often complain openly and can influence potential customers negatively.
2. NO Satisfecho + Sí Leal: Hostage (complains, but keeps buying)
– Description: Despite being dissatisfied, this consumer remains loyal to the brand, possibly because they have no viable alternatives. They complain but continue purchasing.
3. Sí Satisfecho + NO Leal: Mercenary (switches for the best deal – promotions)
– Description: This consumer is satisfied with the product or service but shows no loyalty. They are susceptible to offers and promotions from competitors and can easily switch brands.
4. Sí Satisfecho + Sí Leal: Apostle (evangelizes, promotes among their network)
– Description: This type of consumer is satisfied and loyal to the brand. They actively promote the brand among their friends and family, acting as a brand ambassador.
T.8.1. What is a Presentation Strategy?
A well-conceived plan that includes:Setting objectives for the sales presentation.Developing the pre-sale presentation plan.Renewed commitment to providing outstanding customer service.
2. The Six-Step Presentation Plan
- Approach:Establish rapport.Capture the customer’s full attention.Transition to the next stage of the sales process.
- Need Discovery:Use strategic questions to discover customer needs (SPIN Selling: Situation, Problem, Implication, Need-Payoff).
- Presentation:Selection of informative, persuasive, or reminder presentation strategy.Personalize the presentation according to the customer’s needs.
- Negotiation:Resolve customer objections and concerns.Use negotiation tactics and adapt to the customer’s communication style. 5) Close:dentify buying signals (verbal and non-verbal).Use different closing methods (e.g., direct close, assumptive close, balance sheet close).
- Servicing the Sale:Follow up to ensure customer satisfaction and encourage repeat sales.Implement strategies to strengthen the customer relationship.
3.AIDA
stands for attention, interest, desire, and action. That is a model that is used in sales to describe the potential journey a customer might go through before purchasing a product or service. The AIDA model helps organizations focus their efforts when optimizing their marketing activities based on the customers’ journeys.
Awareness:
Let people know that you have a potential solution to their problem
Interest
Ensure thet potential customers can access information about your company when they show interest
Decision:
Sell your product as the only real solution to their problems or as being scarce
Action:
Customer decides to buy your product
Satisfaction:
Referrals/loyalty
4.MODEERN CUSSTTOMER JOUURNY
ATTENTION
This stage of the model is all about getting your brand and your product in front of people. The main things to remember are: Dive deep into your audience, do your research i.e. who’s going to be interested in your product or service? Building up a persona of a hungry-to-buy customer (passions, pain points, solution they
wish they had)
INTEREST By now, you’ve managed to create attention-grabbing content that leaves your audience wanting to know exactly what it is your service, product or company does. Now it is your job to guide them through to the next stages of your AIDA+S funnel.
DESIRE This is where you get to show your prospect the perfect solution to their problem. How? Demonstrate your offering’s features and benefits related to their situation. You can use different methods to portray these. Photos, before and afters and statistics are all common ways.
ACTION Once a prospect has enough desire, your next job is to convince them to take immediate action. You have probably experienced this step-in person, where a salesperson asks you for the sale ‘so, would you like to take this one?’ ‘which color do you want?’ ‘do we have a deal’? Online, it’s a little different. Many advertisers will create urgency, to get the prospect over the line and converted into a sale. For example, things like ‘sale ends this Thursday, 20% off for the next 100 orders’ are ways of instilling urgency in people. It’s also important to make this process as simple as possible. Add your office phone number, or a call-to-action button leading them to make a purchase.
T.91. Negotiation Process: Interaction process where the involved parties combine influence and persuasion mechanisms to reach an agreement that satisfies their respective interests. Conditions for Negotiation: There are two different positions on the same issue. Both parties want to reach an agreement. Mutual communication and concessions.Basic Elements of Negotiation: Communication process. Involves persuasion. Resolving differences. Focused on obtaining a result.Formal process with rules and regulations.
2. Handling Objections– Identifying and Responding to Common Objections:“The price is too high”: Articulate the value. “I need to think about it”: Create comfort and provide proof.”I need to consult with my boss”: Reduce risks.”I need more quotes”: Solutions and value.”I’m satisfied with my current supplier”: Differentiation.”Past negative experience”: Proof of change.– Negotiation Methods for Objections: Direct Denial: Refute the prospect’s opinion. Indirect Denial: Partially accept and correct.– Questions: Clarify and delve deeper. – Superior Benefit: Show significant advantages.- Demonstration: Prove through evidence.- Third-Party Testimonial: Use external testimonials.
3. Close the DealAttitude Towards Closing: View closing as helping the customer.– Closing Methods:– Trial Close: Attempt to close during the presentation to gauge the customer’s readiness.– Direct Close: Directly ask for the order. – Assumptive Close: Assume the customer’s decision and proceed. – Balance Sheet Close: Compare pros and cons.
– Handling Yes and No: When the Customer Says Yes: Reaffirm the decision and express gratitude. When the Customer Says No: Analyze the situation and maintain the relationship for future opportunities.
5. Basic elements in a negotiation It is a communication process Form of contact and mutual knowledge between the people involved. It is the way for negotiators to influence each other. Without an efficient communication process, the negotiation will be faulty. In short, it is the means through which the results of the negotiation are constructedInvolves persuasion of othersNegotiation is a persuasive activity, not a coercive one. It is framed within the principles and norms that each society has established to cooperate and coexist.The weapons for this persuasion are our words, our silences (active listening) and our gestures (non- verbal language)Attend to resolve differences For there to be negotiation, it is necessary for the parties to be motivated by unmet needs. The fact that the needs to be satisfied are different enables the creation of value in the negotiation process (generation of ideas that satisfy the interests of the parties) Focused on getting a resultThe negotiation finds its meaning with the achievement of an adequate agreement, that is, one that satisfies the interests of the parties and is durable over time. Possible results: 1. Win / Win: both parties win. It is the most desirable result, fostering future negotiations. It is known as cooperative bargaining. 2. Win / Lose: one party wins and the other loses. It is undesirable, since it can be a fictitious victory afterwards. It is known as competitive negotiation. 3. Lose / Lose: both parties lose. There is no agreement or it does not meet the expectations of any. Example: a stuck labor negotiation. It is a formal process with rules and regulationsIt is necessary to know the phases through which a negotiation passes and its purpose. Each phase makes its contribution to the consequence of the result. The more prepared the negotiator is, there will be greater control over the different moments the negotiation goes through. It is not advisable to resort to excessive improvisation It affects personal relationships A proactive and serene attitude, a sincere interest in cooperating will have a positive impact on the outcome of the negotiation, ensuring an honest and professional atmosphere for future meetings. On the contrary, closed and / or disrespectful attitudes will have a negative effect on the objectives set It implies a cooperative attitudeThe objective of any negotiation is for the parties to act cooperatively in the search for a solution that implies mutual gains. Hard positional competitive negotiation often does not lead to good agreements, raises efficiency issues (effort, time, and money) and jeopardizes the relationship between the parties.
T.9How to bargaing like a pro
Planning phase: This is arguably the most important stage of negotiations. Here, you gather as much information as you can about the parties involved or any leverage and set your aims
Opening phase: The second stage of negotiations involves establishing dialoges between the involved parties. This is where ground rules are established so that everyone understands each others
Classification phase: This is the stage that comes when you and the other party have exchanged information. You and the other party evaluate your position to start to figure out if your demands are reasonable
Bargaining phase: This is where the actual bargaining starts to take place. Here, the objective is to make the other party believe that your demands are acceptable and at the same time you convince them that they should concede their demands
Closure phase: Wrapping it up, the final stage of negotiation is the closure phase. This is where you and the other party finalize your agreement and hash out any fine details and minor compromises
Closing the Deal:Closing Techniques:**
1. **The Summary Close:**Summarize key points without introducing new facts. Effective after extensive discussions. Highlight main points leading to the only logical conclusion.
2. **The Alternative Close:**Offer two choices that move the deal forward.Simplifies decision-making for the prospect.Effective with prospects who have no objections.
3. **The Sharp Angle Close:**Address a single objection by turning it into a question.Effective if the prospect is likely to buy but has one concern.Provides a second chance to clarify any other issues.
4. **The Needs Close:**List the prospect’s needs and how your product meets them.Effective for prospects unsure of how your product benefits them.Use emotion to Sometimes giving more time to think is better than pushing for a close.
6. **The Artisan Close:**Highlight the work, skill, and time invested in the product.Effective with prospects who appreciate effort and craftsmanship.
7. **The Opportunity Cost Close:**Emphasize what the prospect will miss by not choosing. Highlight the ROI and long-term benefits.
8. **The Ownership Close:**Paint a picture of the prospect already owning the product.Back it up with facts and stories of success.Repeatedly state the benefits to create a mental closure.
9. **The ‘Best Time to’ Close:**Use a timely event related to the prospect to persuade them.
10. **The Thermometer Close:**Ask prospects to rate their likelihood of purchase on a Address objections until the prospect gives a score of 10.
11. **The Calendar Close:**Suggest a future date to finalize the deal.Fixes a timeframe for decision-making.
12. **The Ben Franklin Close:**List the pros and cons of the product.Helps prospects visualize the value of the product.Use testimonials to convince the prospect.