Part II
SALES FORCE ACTIVITIES Chapter 5:
Customer Interaction Management
Improvi ng Your Cha nce s of Suc ces s 1. Build awareness 2. Get on the short list 3. Demonstrate how your proposal meets company needs 4. Directly address decision maker’s personal needs 5. Be prepared for “buyer remorse”
Personal
Sel ling
The Selling Process PREINTERACTION Skills:
Setting Objectives Knowledge Management Information Gathering Rehearsal
INTERACTION Skills:
Relating Need discovery Advocating Closing
POSTINTERACTION Skills:
Supporting Implementing Dealing with dissatisfaction Enhancing the relationship
Cus tomer Interacti on Pre-Call Planning
What do I want to accomplish?
What do I know about the prospect?
Where can I find the information?
What am I going to say?
Customer Interaction What is the size of the business? What product lines do they sell and what markets do they serve? Where, how, when, why, and by whom will the products be used? Who are the prominent executives and other key personnel? Who are their competitors and on what basis do they compete? Do they have any previous experience with our company? What are the prospects for future sales volume and what is the upside potential? Figure 5-2: Some Important Pre-transactional Information
Cus tomer Interacti on Anticipate Buyer Questions 2. What are you selling? 3. Why do I need it? 4. Who is your company? 5. How much will it cost? 6. Who else is using it? Are they satisfied? 7. What kind of person are you? 8. How does your solution compare to alternatives? 9. Is price competitive? 10. Why do I need it now? 11. Your record for support & service?
Customer Interaction Pharmaceutical Reps Run the Gauntlet If 100 sales reps call on a physician…
100
85
57
20
8 8 reps speak to physician and are remembered
…15 depart office before reaching receptionist’s desk Other reps waiting
Restricted access signs
…28 drop off samples at receptionist’ s desk
Physician unavailabl e
…37 drop off samples at samples closet
Physician unavailable
Harried physician
…12 speak to physician but are not remembered later Poor communicati on
Harried physician
Message not memorable
Customer Interaction
Successful Salespeople
Research prospect background
Less Successful Salespeople
Do little background research
Use company generated prospect lists
Open with a product statement
Use standard presentations
Focus on product benefits
Close by focusing on the most important customer objection
Use referrals for prospecting Open by asking questions Use needs-satisfaction type presentation Focus on customer needs Let prospect make purchase decision
Figure 5-3: Successful Versus Less Successful Salespeople
Cus tomer Interacti on Means of Reducing Relationship Anxiety PROPRIETY
Show buyer respect; dress appropriately
COMPETENCE
Know your product/service; third-party references
COMMONALITY Common interests, views, acquaintances INTENT
Reveal purpose of call, process, and payoff to the buyer
Cus tomer Interacti on Task Motives PRODUCTIVITY
MONEY
More Output or Quality
Less Cost
Less Effort
More Profit
Cus tomer Interacti on Personal Motives Respect
Power
Approval
Recognition
Cus tomer Interacti on Needs Discovery: Types of Questions 3.
Permission
Close-ended
4.
Fact-finding
Factual information
5.
Feeling finding
Open-ended questions
6.
Checking questions
Confirm understanding
Customer Interaction TRANSACTIONAL RELATIONSHIPS
CONSULTATIVE AND ENTERPRISE RELATIONSHIPS
Practices:
Practices:
Focuses on closing sales
Focuses on customer’s bottom line
Limited call planning investment
Considers call planning a top priority
Spends most contact time telling account about products
Spends most contact time attempting to build a problem-solving environment
Conducts “product-specific” needs assessment
Conducts discovery in the full scope of the account’s operations
“Lone wolf” approach to the account
Team approach to the account
Proposals and presentations based on pricing and product features
Proposals and presentations based on profit-impact and on strategic benefits.
Sales follow-up is short-term, focused on product delivery
Sales follow-up is long-term, focused on long-term relationship enhancement
Figure 5-6: Key Differences in Practices Between Relationships
Cus tomer Interacti on Sales Proposals – General Format
Problem Analysis
Solution
Product Specifications
Cost-benefit Analysis
Contract
Cus tomer Interacti on Handling Concerns Listen
to the buyers feelings
Share
concerns without judgment
Clarify
real issue with questions
Problem-solve
present options and solutions
Ask for ACTION
to determine commitmen
Cus tomer Interacti on Pseudo-Concerns “I’ll have to talk it over with Frank.” “I’ll get back to you.” “I’m too busy right now.” “Our budget is tight this year.” “We have no room to store it.”
Cust omer Interacti on Closing Techniques
IMPORTANCE BY PRODUCT Selling Technique
Industrial Consumer Ask for the order in a straightforward manner
1
1
Summary
Summarize the benefits already covered in the presentation
2
2
Single Objection
Asks for the order if last obstacle is overcome
3
4
Assumption
Assume readiness to buy and focus on the transaction details
4
2
Choice
Focus on version to be ordered
5
5
Direct
Customer Interaction 31%
Most Profitable Return Top 3 Rankings for Growth
63%
87%
Rated Very Important to Growth
11% 32% 62%
3%
8%
16%
22%
26%
34%
59%
58%
49%
Quality of Product Information Advertising service to improvement technology and sales customers s or promotion extensions Figure 5-7 : The Role of Customer Service
Development of entirely new product lines
Customer Interaction Sales Support
Support the Buying Decision
Manage Deal the with implementatio dissatisfaction n
Enhance the Relationship
Figure 5-8: Servicing the Sale: The Four Pillars of Sales Support
Cus tomer Interacti on Pillars of Sales Support Support Buying Decision
Reduce buyer anxiety Make a follow-up call Ask for feedback
Assist w/ approval process Manage the Implementation Introduce support resources Monitor & report progress
Cus tomer Interacti on Pillars of Sales Support Deal with Dissatisfaction Empathize with the buyer Respond to problems – use objection handling techniques Anticipate buyer concerns and expectations Reinforce the Benefits
Cus tomer Interacti on Pillars of Sales Support Enhance the Relationship
Be available
Arrange continued personal communications Maintain quality of products/services
Be a resource for info, help and ideas Grow the business internally Ask for referrals
Provide ongoing updates and progress reports
Customer Interaction Ways to Anger Customers Constant Selling Neglecting Customer Problems Talking Too Much Stretching the Truth No Thank-Yous