The Complete Guide to Sales: From Prospecting to Negotiation

Posted on May 15, 2024 in Economy

TOPIC 8: Understanding Customers and Buying Situations

Customer Power Tools

Customers today wield significant power in the marketplace. Here are three key tools they use:

1. Instant, Comprehensive Information: The internet provides customers with immediate access to vast amounts of information about products, services, and competitors.
2. Immense Choice: Customers have a wide array of choices in every segment of commerce, allowing them to be selective and demanding.
3. Real-Time Price Comparisons: Customers can easily compare prices from multiple sources, putting pressure on businesses to offer competitive pricing.

C. Strategy: Maximizing Customer Satisfaction

A successful sales strategy involves understanding customer perceptions and maximizing their satisfaction and responsiveness. This requires a carefully conceived plan that addresses customer needs and expectations.

Consumer Buyers vs. Organizational Buyers

There are key differences between consumer buyers (CB) and organizational buyers (OB):

Types of Buying Situations

Business Buying Situations

1. New-Task Buy: A first-time purchase of a product or service.
2. Straight Rebuy: A routine repurchase of a familiar product or service.
3. Modified Rebuy: A repurchase where some modifications or changes are made to the previous order.

Consumer Buying Situations

1. Habitual Buying Decisions: Routine purchases made with little conscious effort.
2. Variety-Seeking Decisions: Purchases driven by a desire for variety and new experiences.
3. Complex Buying Decisions: High-involvement purchases that require significant research and evaluation.

Steps in the Buying Process

1. Needs Awareness: Recognizing a need or problem.
2. Evaluation of Solutions: Researching and comparing potential solutions.
3. Resolution of Problems: Selecting the best solution to address the need.
4. Purchase: Making the purchase decision.
5. Implementation: Putting the purchased solution into use.

Three Types of Buyers and Value Creation

1. Transactional Process Buyer: Focused on the purchase stage, seeking efficiency and convenience.
2. Consultative Process Buyer: Engaged in needs awareness and solution evaluation, seeking expert advice and guidance.
3. Strategic Alliance Process Buyer: Focused on building long-term partnerships, seeking collaborative solutions and shared benefits.

Buyer Resolution Theory

This theory recognizes that a purchase occurs only after the prospect makes five key buying decisions:

• Why should I buy?
• What should I buy?
• Where should I buy?
• When should I buy?
• What is a fair price?

TOPIC 9: Prospecting and Qualifying

The Salesperson’s Main Purpose

The primary goal of a salesperson is not simply to make sales, but to create customers. This involves identifying and developing potential customers through prospecting (in B2C) or account/business development (in B2B).

Who is a Prospect?

A prospect is an individual or business that meets the qualification criteria established by the salesperson or their company.

Position Description: Account Development Representative

An Account Development Representative engages with accounts, targeting key and influential contacts. They qualify opportunities and set up initial sales meetings for the field sales organization.

Responsibilities of an Account Development Representative

1. Drive sales opportunities by setting up introductory meetings and product demonstrations.
2. Work an assigned account list, proactively identifying potential customers.
3. Collaborate with marketing, support, and other teams to maintain prospecting activity and pipeline growth.

Required Skills and Experience

1. Bachelor’s degree
2. Minimum 2 years of B2B enterprise account development experience
3. Strong communication and CRM skills

Reasons for Customer Attrition

1. One-time need or long intervals between purchases
2. Movement outside of the territory
3. Customer business failure or merger
4. Departure of loyal buyer or purchasing agent

Improving Prospecting Efforts

1. Increase Quantity: Expand the number of prospects engaged.
2. Improve Quality: Focus on prospects with higher potential.
3. Shorten Sales Cycle: Quickly identify qualified prospects based on need, authority, ability to pay, and authority to purchase.

Referrals

Referrals are prospects recommended by current customers or individuals familiar with the product. Building value into the sales process increases the likelihood of receiving referrals.

Qualifying Prospects and Accounts

This process involves identifying prospects who have a need for the product and should be contacted. Salespeople establish qualifying criteria and seek answers to key questions about the prospect’s needs, budget, and decision-making authority.

Sales Intelligence

Sales intelligence is crucial for complex sales with long closing cycles. It goes beyond basic sales data to include insights about the prospect’s marketplace, firm, competitors, and the prospects themselves. A portfolio model can be used to organize and analyze this information.

TOPIC 10: Presentation Strategy

Presentation Strategy: A Three-Part Plan

A well-defined presentation strategy includes:

1. Establishing Objectives: Define clear goals for the presentation.
2. Developing a Pre-Sale Plan: Create a structured plan for the presentation.
3. Renewing Commitment to Customer Service: Emphasize the importance of providing excellent customer service throughout the process.

Planning the Pre-Approach

• Review objectives, model, and presentation plan.
• Prepare an approach worksheet.

Establishing Presentation Objectives

First Sales Call on a New Prospect

1. Establish rapport.
2. Obtain permission to ask need identification questions.
3. Gather information to establish the customer’s file.

Stage 2 of the Buying Process

• Involve the customer in product demonstrations.
• Provide value justification.
• Compare and contrast different solutions (if applicable).

Team Presentation Strategies

Team presentations require:

1. A detailed pre-call plan.
2. Clear understanding of each team member’s role.
3. Well-defined presentation objectives.

Six-Step Presentation Plan

1. Approach: Build rapport, capture attention, transition to the next stage.
2. Need Discovery: Uncover customer needs and pain points.
3. Presentation: Showcase the product/service and its value proposition.
4. Negotiation: Address concerns and work towards a mutually agreeable solution.
5. Close: Secure the sale.
6. Servicing the Sale: Provide ongoing support and build customer loyalty.

Social Contact: Building Rapport

The goal of social contact is to build rapport. Focus on these areas:

1. Here-and-Now Observations: Comment on current events or surroundings.
2. Compliments: Offer genuine compliments.
3. Mutual Connections: Seek common acquaintances or interests.

Guidelines for Good Social Contact

1. Preparation: Research the prospect’s interests, review their database, read industry reports.
2. Initiation: Ask open-ended questions, use nonverbal cues like eye contact and smiling.
3. Response: Acknowledge messages verbally and nonverbally, listen actively, show interest.
4. Customer Focus: Keep the conversation relevant to the customer.

Approaches to Gain Prospect Attention

• Agenda approach
• Survey approach
• Question approach
• Premium approach
• Referral approach
• Customer benefit approach
• Product demonstration approach

Sales Call Reluctance

Sales call reluctance encompasses thoughts, feelings, and behaviors that hinder a salesperson’s performance. It can stem from fear of rejection, lack of self-confidence, or discomfort with taking risks.

Dealing with Sales Call Reluctance

1. Be Optimistic: Focus on positive outcomes.
2. Practice: Rehearse the approach before making contact.
3. Normalize Anxiety: Recognize that anxiety is normal.
4. Commit to Goals: Strengthen dedication to achieving sales targets.

TOPIC 11: Need Discovery

Need Discovery: The Second Step

The time spent on need discovery varies based on factors like available time, product complexity, selling price, and customer knowledge.

SPIN Selling

SPIN selling uses four types of questions to uncover customer needs and guide them towards a solution:

• Situation Questions: Gather background information.
• Problem Questions: Identify pain points and challenges.
• Implication Questions: Explore the consequences of unresolved problems.
• Need-Payoff Questions: Highlight the benefits of solving the problem.

Active Listening

Active listening involves reflecting back to the prospect what they have said, both in terms of content and feelings. It demonstrates understanding and builds rapport.

Practices for Active Listening

1. Full Attention: Focus completely on the prospect.
2. Paraphrasing: Restate the prospect’s meaning in your own words.
3. Note-Taking: Record important points and insights.

TOPIC 12: The Presentation

Valuable Presentations

Canned Presentations

Memorized or scripted presentations delivered in a standardized way to all customers. They lack personalization and may not address specific needs.

Consultative Presentations

Customized presentations tailored to the unique needs of each customer. They are more engaging and effective in addressing specific pain points and requirements.

Elements of an Effective Presentation

• Adapt to customer needs.
• Appeal to multiple senses.
• Document the value proposition.
• Quantify the solution.
• Use appropriate sales tools.

Quantifying the Solution

This involves demonstrating the value of the proposed solution. Techniques include cost-benefit analysis and return on investment (ROI) calculations.

Enhancing Persuasive Presentations

• Emphasize the relationship.
• Target emotional connections.
• Use persuasive language.
• Focus on benefits.

TOPIC 13: Negotiation

Negotiation: Reaching a Mutually Satisfactory Agreement

Negotiation involves working towards an agreement that benefits both the buyer and the seller. Key elements include understanding the value proposition, preparing an agenda, gathering information, and understanding concepts like BATNA (Best Alternative to a Negotiated Agreement) and ZOPA (Zone of Possible Agreement).

Rules for Formal Negotiations

• Understand the problem.
• Create solutions that add value.
• Avoid making concessions too quickly.

Types of Buyer Concerns

1. Concerns related to the source (e.g., reputation, reliability).
2. Concerns related to time (e.g., delivery timelines, implementation schedules).
3. Concerns related to price (e.g., affordability, value for money).
4. Concerns about the product or service (e.g., features, functionality, quality).
5. Concerns related to the need for the product (e.g., relevance, urgency, necessity).

Methods of Negotiating Buyer Concerns

Direct Denial

Directly refuting the prospect’s opinion or belief. This approach can be confrontational and may damage rapport if not handled carefully.

Indirect Denial

: Means to bend a little & acknowledge that prospect is partially correct.