Chapter 5: The Sales Presentation

Chapter 5: The Sales Presentation

Learning Objectives After studying this chapter, you should be able to: Describe the basic types of selling models. State the skills utilized in the pre-interaction phase List the skills involved in the interaction phase. Explain the skills involved in the post-interaction phase

The Selling Process Selling requires a deep understanding of the customer’s problems and challenges to offer the right solutions. It is also essential to understand the needs of the customer’s customers especially when the solution involves the application of a new technology. E.g. Oracle was able to close a deal with Boeing for a $39 million database for the production of their Boeing 777 aircrafts.

BASIC TYPES OF SELLING MODELS
There are three basic selling process models: […] Standardized Model, Need-Satisfaction Model, and Problem-Solution Model.

Standardized Selling Model […]
With the standardized selling model, a series of statements are constructed about an offering so as to stimulate a positive response by the customer. This is also known as ‘benefitizing’ the offering i.e. translating a product or service features into customer benefits.

For example, a new software package feature may have several benefits to the user such as: Fewer employee complaints Greater productivity, and Cost savings

Specific statements are often developed using phrases that tend to elicit a positive response These may include words such as: User-friendly Satisfaction guaranteed Productivity improvement, and No down payment This is often referred to as a canned presentation because the same presentation is given to each customer.

Not much time and effort is put into preparing for any single customer interaction once the basic presentation has been mastered It’s really a one-size-fits-all presentation The standardized selling model is most appropriate in situations where a product is standardized or when the benefits are generally the same for all customers It’s ideal for transactional relationships with price-sensitive customers who are seeking convenience

Need-Satisfaction Selling Model […]
The need-satisfaction selling model is oriented to discovering and meeting customers’ needs. With this selling model, the salespeople probe prospective customers for any problems they are experiencing and the value they can deliver with the solutions that their products provide.

In this model, the salesperson’s goals are: To quickly and accurately identify the customer with the highest probability of purchasing the offering To provide the customer with the incentive to change To provide the customer with the confidence to invest in the proposed solution(s), and To ensure that the value promises made are fulfilled

This selling model is most appropriate for consultative-type customer relationships. Both the customer and the supplier are required to invest significant time and resources to achieve the desired goals The salespeople of consumer goods and office products companies often use this selling model.

Problem-Solution Selling Model […]
The problem-solution model is similar to the need-satisfaction model in that both involve an analysis of each customer’s circumstances. The main difference though is that the problem-solution selling model is based on more formal studies of the customer’s operations.

The sales rep or sales team will first conduct a study on the customer premises then submit a written proposal to resolve the pending problem(s). With the written proposal, there is also a formal presentation by the sales team and possibly their technical personnel to answer any technical questions the customer may have.

The problem-solution selling model usually involves significant dollar expenditures, and the selling cycle may be quite long. This selling approach is most appropriate for a consultative or enterprise type of relationship where there is a very high investment in the relationship by both the seller and buying organizations.

Figure 5-2 Standardized versus Problem-Solution Thinking
Standardized Presentation Thinking Problem-Solution Thinking All prospects will buy. Never take ‘no’ for an answer. A good salesperson can sell anything to anybody. Never walk away when money is on the table. The customer is always right. Only certain customers will and should buy. Always be leaving. Give the customer room to breathe. A good salesperson weeds out poor prospects and focuses on high-gain opportunities. Always walk away unless you know you can improve your customer’s business. The customer requires professional guidance to complete a quality decision.

The Selling Process The customer interaction process includes three phases: […] Preinteraction – actions initiated prior to interaction with key decision makers requiring skills in pre-call planning Interaction – actions initiated while interacting with decision makers, requiring skills in relating, discovery, advocating, handling objections, and closing. Postinteraction – activities following a transaction involving supporting skills.

Figure 5-1 , p. 132 […] The Selling Process and Skills
The Customer Interaction Process and Skills Pre-interaction Phase Interaction Phase Post-interaction Skills: Setting Objectives Knowledge Management Information Gathering Rehearsal: what am I going to say? Gaining access Relating Discovering needs Advocating Closing Supporting Implementing Handling dissatisfaction Enhancing the relationship Knowledge management 1

THE PREINTERACTION PHASE: PLANNING SKILLS […]
Setting Objectives: What do I want to accomplish? Knowledge Management: What do I know about the Customer? Information gathering: Where can I find the Information? Rehearsal: What am I Going to Say?

Setting Objectives: What do I want to accomplish?
The salespeople should not make a call unless they can specify an action that they want the client or prospect to take. The objective(s) should be clear such as: The client agrees to supply information on historical inventory levels. The client tells you who will be involved in the purchase decision. The client arranges for a meeting with the chief design engineer. The client agrees to a trial run on the system

Knowledge Management: What Do I Know about the Customer?
Preinteraction planning is a good opportunity to review individual, company, and industry information about clients and their companies. Useful information includes an individual’s exact spelling and pronunciation of her name, title, age, residence, education, buying authority, clubs and memberships, hobbies, and her likes & dislikes. E.g., A medical representative salesperson was having a hard time trying to persuade doctors at the hospital to allow him to give a presentation as they were mainly concerned about their immediate patients. He found out that many of them belonged to a health club near the hospital where they’re usually more relaxed and willing to listen to his sales pitch. He eventually became the top salesperson in his district – and an accomplished racquetball player.

Information Gathering: […] Where Can I Find the Information?
Some vital sources to collect information about the customer include company records, salespeople, customer employees, published information, and observation. By observing the prospect’s business operations, a good salesperson can tell a lot about a client’s pricing strategy, merchandising strategy, vendor preferences, and deal proneness. Corporate Web sites are an excellent source of information. They give accurate information of how the company positions itself. Most of them also include press releases about changes within the organization Some of the leading US business data vendors include Dun & Bradstreet, American Business Information, Database America, TRW, and Equifax.

Figure 5-3 Customer Interaction Techniques of Successful vs
Figure 5-3 Customer Interaction Techniques of Successful vs. Less Successful Salespeople Successful Salespeople Research prospect background Use referrals for prospecting Open by asking probing questions Use needs-satisfaction type presentation Focus on customer needs Let prospect make purchasing decision Less Successful Salespeople Do little background research Use company-generated prospect lists Open with a product statement Use standard presentation Focus on product benefits Close by focusing on the most important customer objection

Rehearsal: What Am I Going to Say? […]
Salespeople should prepare the questions they will ask and what benefits they will present to the customer during their initial interaction. They should also anticipate any concerns a customer is likely to raise and prepare strategies for addressing these concerns. A good technique is to visualize a successful sales encounter by creating a mental picture of the sequence of events that will lead to accomplishing the interaction objective. Through practice, salespeople will boost their confidence level and reduce their anxieties.

Rehearsal: What Am I Going to Say?
Here are some of the questions clients may have about your company: (Figure 5-4, p. 136) Who is your company? What is your record for support and service? What are you selling and what kind of person are you? Who else is using your product and are they satisfied? How does your solution compare to other alternatives? Why do I need it? Why do I need it now? How much does it cost? Is your price truly competitive? What’s the added value?

THE INTERACTION PHASE The interaction phase refers to what takes place during a face-to-face encounter with a customer. This phase of the selling process focuses on: […] business and social interaction skills: relating, discovering & advocating. and successful selling skills: gaining access to key personnel & closing the sale.

Gaining Access to Key Personnel
It’s getting increasingly difficult to get “face time” with clients and it is expected to be even more so in the future. E.g. a study by McKinsey found that pharmaceutical salespeople get an opportunity to speak with a physician in only one out of five office visits Here are some commonly used alternatives for gaining access to decision makers: […] Direct personal contact Phoning ahead Personal letters messages referrals

Direct Personal Contact
The direct personal contact is the most difficult approach without a prior attempt to communicate with the prospect. This approach is likely to create problems as the prospect may be busy with his/her own clients and the salesperson will have to wait. While waiting, successful salespeople should spend their time efficiently and learn more about their prospects from others inside the organization; they can also prepare for other scheduled calls, or complete necessary reports. BEWARE! Some prospects do NOT like being called on without an appointment!

Phoning Ahead Phoning ahead to make an appointment has many advantages. Precious time is spent more efficiently for both the salesperson and the prospect. A major drawback of this approach is that it is too easy for the prospects or their administrative assistants to turn someone down over the phone. Salespeople people should use their social skills to secure the cooperation of executive assistants and receptionists. E.g. always make an effort to heed people’s likes & dislikes and refer to them by their names.

Personal Letters Letters are more difficult to screen for administrative assistants than phone calls. A main advantage of mailing letters is to include brochures that describe the product features and benefits, enabling prospects to learn more about a potential supplier than they can over the phone. Approach letters should close by suggesting dates for a meeting. This may also be accomplished by a follow-up phone call. In doing so, the prospect’s attention is focused on scheduling the meeting rather than deciding whether to meet.

Messages Sending messages to existing and new clients has become quite common. A recent survey found that 52% of companies are using when prospecting for new customers while 90% of companies are using it for retention of existing customers. messages have two main advantages over voice messages (i.e. voice mail): It’s relatively inexpensive and time efficient to broadcast messages to opt-in prospects and customers. Graphics and promotional material may be included with the message messages must be concise and clear to get the attention of the recipients and lead them to take action.

Referrals Having a referral is by far the most appropriate method especially when it comes to getting on a senior executive’s calendar. Surveys of senior executives indicate that most of them do not allow salespeople to call on them unless someone inside their company recommends them. That’s why salespeople should use their social skills and first establish relationships with midlevel managers at most large accounts. Studies show that salespeople who do not gain executive access until late in the selling cycle find their impact to be greatly reduced.

Relating Skills […] Salespeople have long recognized call reluctance, or the fear of making contact with a customer, as a problem. In most instances, both salesperson and customer meeting for the first time experience a degree of tension. It is estimated that call reluctance with reach intense levels for up to 40% of salespeople at some point in their careers. Customers also experience a form of anxiety known as relationship anxiety when they meet salespeople for the first time; this kind of anxiety arises because people don’t like to be sold – instead they like to buy.

Relating Skills […] Relating skills refer to the ability to put the other person at ease in a potentially tense situation. The salesperson should give first impressions of competence, honesty, and likeability to the potential customer. To reduce relationship anxiety the salesperson should show: Propriety – i.e. show buyer respect; dress appropriately Competence - i.e. know your product/service; mention credible third-party references Commonality – i.e. have common interests, views, acquaintances Intent – i.e. reveal purpose of call, process, and payoff to the buyer

Relating Skills – Team Exercise [5 min, …] “What Does Ms. Williams Hear?” p. 138
Consider the following introduction statement from a salesperson calling on Ms. Williams for the first time: “Hello, Ms. Williams, how are you today? My name is Joe James. I’m an account executive with Petro-Safety Technologies. We are a leader in oil rig safety solutions, and we have developed the most advanced safety programs in use by companies like yours. Our programs will improve your safety record and save lives. I would like to get together with you and explain some of the more successful programs that we have created and how they can make your business a better place to work.” Q: The salesperson in this case is trying to create interest, but what does Ms. Williams hear and how does she interpret this call?

Relating Skills – Team Exercise [5 min, …] “What Does Ms. Williams Hear?” p. 138
Q: The salesperson in this case is trying to create interest, but what does Ms. Williams hear and how does she interpret this call? Show respect for the buyer by stating your name and thanking them for taking the time to meet with you. Dress appropriately. Hand the prospect your business card. Tell the prospect the purpose of your call. Tell the prospect the potential benefit to him or her for taking the time to meet with you. Indicate what will take place and how much time it might take.

Needs Discovery Skills […]
After establishing initial rapport with the prospect, the salesperson should begin to understand what’s on the prospect’s mind rather than focusing on the product and its benefits. In today’s business environment, 80% of the selling process focuses on discovering and matching customer needs. Research shows that successful sales calls contained about three times more identified needs than failed ones. Customers surveys reveal that about 57% of salespeople lack understanding of the customer’s situation and needs as shown on the next slide.

Figure 5-6 Top Five Customer Complaints About Salespeople (p. 140)

Identifying Task Motives & Personal Motives […]
Task motives can be defined as the logical, practical, or functional reasons for buying; they involve either money (i.e. financial) or productivity. Typical financial motives may include cost savings or profit increases. Productivity motives may focus on increasing output, improving quality, or reducing effort. Personal motives include respect, approval, power, and recognition. Both types of motives are equally important especially in large-ticket sale situations.

Figure 5-7 Types of Motives for Purchasing
Task Motives Personal Motives Financial Productivity Respect Approval Power Recognition

Team Exercise – “Why Beat a Dead Horse?” p. 141

Questioning / Probing […]
Salespeople must ask customers questions and actively listen to their responses to find out about their needs. Obtaining information through probing becomes more important the more complex the sales situation is. Questions asked may be classified as closed-ended or open-ended. Closed-ended questions can be answered with a simple ‘yes’ or ‘no’ or by selecting from a list of responses. These should be mainly used to gain feedback and commitment. E.g. Would you prefer to arrange the demo in the morning of in the afternoon?

Questioning / Probing Questions asked may be classified as closed-ended or open-ended. Open-ended questions cannot be answered with a simple ‘yes’ or ‘no’ and are used to identify a topic. This type of questions is mainly used to discover information about a topic. More examples - See figure 5-8 Discovery Process: Types of Questions, p. 142

Advocating Skills […] An Advocate (noun) is defined as:
1 : one that pleads the cause of another; specifically : one that pleads the cause of another before a tribunal or judicial court 2 : one that supports or promotes the interests of another Advocating skills refer to the ability to clearly and fully present a solution that customers can see that it helps to address their needs. We will consider three aspects of advocating: Presenting a specific solution to a problem, Submitting a sales proposal, and Addressing customer concerns regarding the solution being proposed.

Solution Presentation […]
The objective of a solution presentation is to confirm with customers that the goods and services being offered match their requirements and satisfy their needs. It’s a presentation of a series of product or service features and benefits that the client has already indicated are important, and are followed by evidence that the benefits will in fact be delivered. Features are tangible or intangible characteristics of the product or service.

Solution Presentation
A benefit is a statement about how a product or service can help a customer satisfy an explicit or stated need. E.g. “Our sleeping bags have a 1 inch layer of insulation on them. This helps to retain body heat on cold nights. You’ll be warm all night. Which means that you’ll get a great sleep and be well rested for a day of fun activities (that you’ll fully enjoy!).” The salesperson should also offer some kind of evidence to support his/her claims such as showing test results or testimonials from satisfied customers.

Sales Proposals The sales proposal is a document of confirmation for the prospective buyer and the seller. Sales proposals are more likely to be used when the purchase decision is made by a committee. The details of sales proposals must be considered carefully because they are legally binding documents. A sales proposal should mention all the incentives for a customer to change what she/he is presently doing and confirm the confidence to invest in the proposed solution. There should be no surprises.

Addressing Customer Concerns […]
Customer concerns, objections or questions about a proposed solution to a problem are likely to arise in any sales presentation. Salespeople should view them as an opportunity for deeper insight into customer needs rather than an obstacle. Most concerns are nothing more than innocent questions.

Addressing Customer Concerns […]
Wilson Learning suggests the LSCPA method to handle real customer objections. The process involves the following steps: Listen to the client’s feelings Share the concerns without judgment Clarify the real issue with questions Problem-solve by presenting options and solutions Ask for action to determine commitment

Addressing Customer Concerns
These steps are recommended because customers are in no mood to listen to a logical clarification or solution when they are feeling tense. When salespeople listen to their customers and empathize with their concerns without judgment, they reduce the tension by helping them get objections out in the open. Salespeople should listen actively and encourage the customer to talk.

Closing Skills […] Closing occurs when a salesperson asks for a commitment from the customer. In a transactional selling situation, such as inventory replenishment, the commitment is for an order. Many salespeople find this the most difficult step of the selling process and are very reluctant to close, primarily out of fear of rejection. If salespeople do not ask for the order, , they cannot be turned down, and thereby they avoid embarrassment or disappointment.

Closing Skills – When to Close […]
Salespeople must be prepared to close up to five times without being too pushy. Salespeople may use trial closes to determine how close the client is to making a purchase decision. Examples of trial questions: How does this look to you? How important is this to you? Is this what you had in mind? Will this equipment be consistent with what you have now? A ‘yes’ answer to any of these questions usually indicates that the customer is leaning toward buying.

Closing Skills – When to Close […]
Successful salespeople learn to time their closing remarks on the basis of buying signals given by the customer. These buying signals (aka cues) can take the form of gestures, (e.g. the customer nods in agreement, picks up the product and examines it closely, or leans back in his or her chair), or they can be verbal comments such as: “Shipments must be completed in five months.” “We like the speed-control feature.” “Would we be able to install the custom model within three weeks?”

Closing Skills – Closing Techniques […]
The alternative choice and the summary choice are two of the most popular closing techniques. The alternative choice close may be effective when the prospect is faced with limited options to select from. E.g. these water tanks are available in ruby red or dark grey. Which color would you prefer?

Closing Skills – Closing Techniques
The summary close provides a summary of the benefits accepted during the call, combined with an action plan requiring the customer’s commitment. Example: “During the past week, you had requested that we ensure packaging for each unit is provided.” “True.” “We came to an agreement to include packaging if your company was able to place an order for 5,000 units. This would allow you to receive a product that is ready to sell in time for the Christmas shopping season.” “We will go ahead and draw up the paperwork to have everything shipped and delivered by August 31st. Will this work for you?” “Sure. Sounds good.”

THE POSTINTERACTION PHASE
The postinteraction phase refers to the salesperson’s followup with the customers to build a long-lasting relationship and provide after-sale service. Surveys show that quality of customer service is ranked the highest in terms of contributions to growth and profits See Figure 5-10, p. 147, The Role of Customer Service (next slide)

Customer Interaction 31% 63% 87% 11% 16% 8% 32% 3% 34% 26% 22% 62% 58%
59% 8% 26% 58% 16% 34% 49% Most Profitable Return Top 3 Rankings for Growth Rated Very Important to Growth Quality of service to customers Product improvement or extensions Information technology Advertising and sales promotion Development of entirely new product lines Figure 5-7 : The Role of Customer Service

Customer Interaction Sales Support
Wilson Learning Worldwide has identified four pillars of sales support involved in after-sales followup: […] Sales Support Support the Buying Decision Manage implementation Deal with dissatisfaction Enhance Relationship Figure 5-11, p. 147: Servicing the Sale: The Four Pillars of Sales Support 1

Sales Support […] Supporting the buying decision means reducing any anxiety that may arise with the purchasing decision. This may be accomplished through: a followup sales call or by sending a card or letter thanking the customer for the order.

Sales Support […] Managing the implementation includes: offering support services, assisting with any personnel training, and reporting implementation and utilization progress.

Sales Support […] Dealing with disssatisfaction may include: Responding in an empathetic manner to any problems that arise Making amends if the customer has been inconvenienced as a result of an error on behalf of the salesperson or the company he/she represents.

Sales Support Salespeople should always try to enhance the relationship by being always available for the customer, ensuring that the quality of the offering is maintained, and being a source of information, help, and ideas.

Relationship Enhancement
Relationship enhancement activities include cross-selling and up-selling. Cross-selling involves selling additional products and services to an account. E.g. selling printers along with personal computers, or selling batteries with toys. Up-selling refers to selling bigger products or enhanced services to an account that typically results in greater sales and higher margins

Knowledge Management Salespeople should always record what they have learned about the prospect or customer following their sales call. Laptops, smartphones, or tablets are now used to synch customer information back and forth with head office. This information helps the sales team to better understand the customer’s needs and issues and build a relationship with them.

End of Chapter 5

Part II SALES FORCE ACTIVITIES
Chapter 5: Customer Interaction Management

Customer Interaction Anticipate Buyer Questions What are you selling?
Why do I need it? Who is your company? How much will it cost? Who else is using it? Are they satisfied? What kind of person are you? How does your solution compare to alternatives? Is price competitive? Why do I need it now? Your record for support & service? 8

Customer Interaction Successful Salespeople
Research prospect background Use referrals for prospecting Open by asking questions Use needs-satisfaction type presentation Focus on customer needs Let prospect make purchase decision 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 Figure 5-3: Successful Versus Less Successful Salespeople

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

Pharmaceutical Reps Run the Gauntlet
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 …28 drop off samples at receptionist’s desk …37 drop off samples at samples closet …12 speak to physician but are not remembered later Other reps waiting Restricted access signs Physician unavailable Harried physician Poor communication Message not memorable

Means of Reducing Relationship Anxiety
Customer Interaction 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

Customer Interaction Task Motives More Output or Quality Less Cost
PRODUCTIVITY MONEY More Output or Quality Less Cost Less Effort More Profit 1

Customer Interaction Personal Motives Respect Power Approval
Recognition 11

Customer Interaction Needs Discovery: Types of Questions
Permission Close-ended Fact-finding Factual information Feeling finding Open-ended questions Checking questions Confirm understanding 12

Customer Interaction TRANSACTIONAL RELATIONSHIPS
CONSULTATIVE AND ENTERPRISE RELATIONSHIPS Practices: Focuses on closing sales Limited call planning investment Spends most contact time telling account about products Conducts “product-specific” needs assessment “Lone wolf” approach to the account Proposals and presentations based on pricing and product features Sales follow-up is short-term, focused on product delivery Focuses on customer’s bottom line Considers call planning a top priority Spends most contact time attempting to build a problem-solving environment Conducts discovery in the full scope of the account’s operations Team approach to the account Proposals and presentations based on profit-impact and on strategic benefits. Sales follow-up is long-term, focused on long-term relationship enhancement Figure 5-6: Key Differences in Practices Between Relationships

Customer Interaction Sales Proposals – General Format Problem Analysis
Solution Product Specifications Cost-benefit Analysis Contract 14

Customer Interaction 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 commitment 15

Customer Interaction 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.” 16

Customer Interaction Closing Techniques IMPORTANCE BY PRODUCT
Selling Technique Industrial Consumer Direct Ask for the order in a straight-forward manner 1 Summary Summarize the benefits already covered in the presentation 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 Choice Focus on version to be ordered 5 17

Customer Interaction Pillars of Sales Support Reduce buyer anxiety
Make a follow-up call Ask for feedback Support Buying Decision Assist w/ approval process Introduce support resources Monitor & report progress Manage the Implementation 18

Customer Interaction 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 19

Customer Interaction Pillars of Sales Support Enhance the Relationship
Be available Arrange continued personal communications Maintain quality of products/services Provide ongoing updates and progress reports Be a resource for info, help and ideas Grow the business internally Ask for referrals 20

Customer Interaction Ways to Anger Customers Constant Selling
Neglecting Customer Problems Talking Too Much Stretching the Truth No Thank-Yous

Chapter 5: The Sales Presentation

Similar presentations

Presentation on theme: "Chapter 5: The Sales Presentation"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Chapter 5: The Sales Presentation

Similar presentations

Presentation on theme: "Chapter 5: The Sales Presentation"— Presentation transcript:

Similar presentations

About project

Feedback