1. © Vlerick Business School

2. THE SALES PROCESS

3. © Vlerick Business School ADAPTIVE SELLING  Adaptive selling entails:  Gathering information about each customer  Observing customers’ reactions during the sales call  Showing agility by making rapid adjustments  Tailoring the sales presentation to each customer’s social style

4. © Vlerick Business School THE KEY TO UNDERSTANDING SOCIAL STYLES  Assertiveness  Competitive  Rapid movers  Quick decision makers  Initiative takers  Time sensitive  Responsiveness  Friendly  Talkative  Approachable  Less time sensitive  Slower decision makers  More sensitive to others’ feelings

5. © Vlerick Business School SOCIAL STYLES MATRIX 5 | Amiable “ Show concern for me and my problems” Supportive Respectful Willing Dependable Personable Amiable “ Show concern for me and my problems” Supportive Respectful Willing Dependable Personable Expressive “I like competent, imaginative salespeople” Personable Stimulating Enthusiastic Dramatic Inspiring Expressive “I like competent, imaginative salespeople” Personable Stimulating Enthusiastic Dramatic Inspiring Driver “Show me bottom line results” Determined Demanding Thorough Decisive Efficient Driver “Show me bottom line results” Determined Demanding Thorough Decisive Efficient Analytical “What I need are practical suggestions” Industrious Persistent Serious Vigilant Orderly ASSERTIVENESS Low High Low RESPONSIVENESS

6. © Vlerick Business School PERCEIVED RISK  In many sales situations, the most important perception to be dealt with is risk  Salespeople must provide evidence that their solutions will work, reducing perceived risk

7. © Vlerick Business School TYPES OF RISK IN PURCHASING DECISIONS  Financial  Social  Psychological  Performance 7 |

8. © Vlerick Business School STEPS IN THE SALES PROCESS 1.Lead Generation 2.Lead qualification 3.Needs Identification: SPIN Selling  Situation  Problem  Implication  Need Payoff 4.Feature/Benefit Presentation 5.Marketing Plan and Business Proposal 6.Close 7.Objection Handling 8

9. © Vlerick Business School LEAD GENERATION  Pre-approach  The search for people and organizations that have a high likelihood of buying  Prospecting  Identifying and qualifying the specific people who might have a want or need that the salesperson’s market offerings could satisfy

10. © Vlerick Business School THE IMPORTANCE OF PROSPECTING WITH EXISTING CUSTOMERS  Existing customers can switch suppliers if current service is not up to par  Existing customers are being called on by competitive salespeople who are always presenting new information  It is much less expensive to call on existing customers than to find new ones  Existing clients are often the best source of new customers

11. © Vlerick Business School PROSPECTING TECHNIQUES  Identification  Qualification  Three Categories  Internal sources of prospects  Prospects found by market intelligence  Prospects generated by specific actions

12. © Vlerick Business School DEVELOPING A LEAD GENERATION PROGRAM  Market segmentation  Lead generation  Direct-mail  Telephone selling  Personal visits  Buying customer lists  Using EAGLES

13. © Vlerick Business School TURNING SUSPECTS INTO BONA FIDE PROSPECTS  Identify MAD Customers  M oney to Buy  A uthority to Buy  D esire to Buy

14. © Vlerick Business School FIRST IMPRESSION  You have only one chance to make a favorable first impression  Your looks  Your actions  Your manner of speaking  Salespeople must be conscious of the communication signals they are sending  Visual  Vocal  Verbal/Non-verbal Three V’s

15. © Vlerick Business School COURTESY AND COMMON SENSE  Ask permission to sit  Never clutter the prospect’s desk or floor without asking his/her permission  Watch the tone of your voice  Always be courteous but not overly friendly or pushy  Never be presumptuous

16. © Vlerick Business School OPENING THE PRESENTATION What makes some salespeople standout?  The best sales professionals know:  How to emphasize benefits in their presentations  That the most effective presentations must start and finish with the prospect’s needs and wants as the focus  A key question for salespeople as they endeavor to maintain their competitive position is to ask, “What could make the customer more delighted?”

17. © Vlerick Business School PLANNING PRESENTATION OPENERS  Openers are introductions  All sales presentations need effective and brief introductions  Salespeople must, in the opener, introduce themselves, the company, and the reason for calling on the prospect  Show the prospect that you are aware of his/her situation and that you have a product that can help  An effective opening statement is essential to get the prospect’s attention  Salespeople sometimes find that a minute or two of friendly conversation relaxes prospects and makes for an effective opening strategy (rapport building)

18. © Vlerick Business School PROSPECT BENEFITS  Selling benefits is what the sales presentation is all about  To use a benefit opener effectively  You must learn as much about the prospect as possible  You must know that the prospect can benefit from your product in the way you describe

19. © Vlerick Business School OTHER TYPES OF OPENERS  Benefits  Third Party referral (AKA- Name dropping)  Sincere compliment Which will be best for the different social styles?

20. © Vlerick Business School TRIAL CLOSING  Trial closing is a process that helps you find out where a person is in the commitment to buy  The goal of the questions is to receive a 'Yes' commitment to move forward in the sale  The easiest way to formulate a trial close question is by using an 'If/Then' scenario

21. © Vlerick Business School STEPS IN THE SALES PROCESS 1.Lead Generation 2.Lead qualification 3.Needs Identification: SPIN Selling  Situation  Problem  Implication  Need Payoff 4.Feature/Benefit Presentation 5.Marketing Plan and Business Proposal 6.Close 7.Objection Handling 21

22. © Vlerick Business School THE SPIN QUESTIONING STRATEGY Situation Questions Achieve fact-finding objectives Have low selling impact Useful at focus of receptivity Problem Questions Achieve uncovering satisfaction objectives Have moderate selling impact Useful at focus of dissatisfaction Implication Questions Achieve objectives of developing and channeling dissatisfaction Have high selling impact Useful at focus of dissatisfaction and focus of power Need-payoff Questions Achieve objectives of rehearsing and selectively channeling customer attention Have high selling impact Useful at focus of dissatisfaction and focus of power

23. © Vlerick Business School RESPONDING TO TOUGH QUESTIONS  When your prospect asks you tough questions at this stage, you should:  Restate the question  Ask  “What do you think?”  “What makes you ask?”  Start with a general reply  Don’t fake it You must listen to be able to respond!

24. © Vlerick Business School EFFECTIVE LISTENING  Effective listening consists of three discrete stages in the listening process: 1.Sensing  The actual receipt of messages 2.Processing  Activities that occur in the mind of the listener 3.Responding  Acknowledgement of the receipt of the message

25. © Vlerick Business School STEPS IN THE SALES PROCESS 1.Lead Generation 2.Lead qualification 3.Needs Identification: SPIN Selling  Situation  Problem  Implication  Need Payoff 4.Feature/Benefit Presentation 5.Marketing Plan and Business Proposal 6.Close 7.Objection Handling 25

26. © Vlerick Business School SOLUTION SELLING  Solution selling is the stage at which the salesperson  Assumes a knowledgeable role  Begins to earn the right to be an advisor to the prospect  Customizes her presentation of product features and benefits to the prospect’s specific needs and wants

27. © Vlerick Business School V = Q/P  The value of a delivered product or service increases as the quality of that product/service increases or the price of that product/service declines V = Value, Q = Quality, and P = Price

28. © Vlerick Business School VALUE-ADDED SELLING ATTITUDES  Pursue excellence  Define value in customer terms  Seek ways to add value, not cost  Sell to the customer’s needs, not against the competition’s package  Seek ways to deliver proactive value-added service  Value-added selling is a team effort  Responsiveness to the customer is at the heart of value-added selling

29. © Vlerick Business School SELL BENEFITS NOT FEATURES  Deal only in facts  Sell the prospect results  What the product will do--not what it is!

30. © Vlerick Business School CHECK THE PROSPECT’S TEMPERATURE  Trial closing is like taking the temperature of the buyer’s interest  The temperature question or “trial close” is not a closing question  The salesperson is not asking for a decision to buy  Avoid asking closed-ended questions

31. © Vlerick Business School YOUR MISSION  Ask as many open-ended questions as possible  Who  What  When  Where  How  Why

32. © Vlerick Business School STEPS IN THE SALES PROCESS 1.Lead Generation 2.Lead qualification 3.Needs Identification: SPIN Selling  Situation  Problem  Implication  Need Payoff 4.Feature/Benefit Presentation 5.Marketing Plan and Business Proposal 6.Close 7.Objection Handling 32

33. © Vlerick Business School MARKETING PLAN

34. © Vlerick Business School BUSINESS PROPOSAL

35. © Vlerick Business School GAINING CONVICTION  To successfully perform the conviction step the salesperson should be sure to:  Explain what the product or service is and how it works  Explain the facts and features and their related benefits  Establish the prospect's belief in the salesperson by presenting evidence  Explain any related information that the prospect would like to know

36. © Vlerick Business School TRIAL CLOSE  After answering all the prospect's questions and concerns, it is time to trial close again  The salesperson can ask the prospect any of the following questions:  “What do you think?"  "How does all of this sound?"  "How do you feel about what I’ve said so far?"

37. © Vlerick Business School OUTCOMES OF A PRESENTATION  Regardless of the outcome of any one sales presentation, there is more work to be done  A prospect buys and becomes a customer  A customer buys again (rebuy situation)  A customer or prospect makes no purchase but requests additional information  A prospect expresses no interest in working with the salesperson's company

38. © Vlerick Business School STEPS IN THE SALES PROCESS 1.Lead Generation 2.Lead qualification 3.Needs Identification: SPIN Selling  Situation  Problem  Implication  Need Payoff 4.Feature/Benefit Presentation 5.Marketing Plan and Business Proposal 6.Close 7.Objection Handling 38

39. © Vlerick Business School HANDLING OBJECTIONS  Effective salespeople are able to:  Anticipate objections  Answer them with confidence  Probe for more concerns  Quickly get back to motivating the prospect/customer to make a decision in favor of purchasing

40. © Vlerick Business School VALUE IMPROVEMENTS  Value improvements can be anything that will help prospects see that their overall situation can be improved through the purchase of a product or service

41. © Vlerick Business School OVERCOMING OBJECTIONS  The salesperson’s formula for handling objections has five parts: 1.Listen very carefully to the prospect's objection 2.Clarify the concern 3.Cushion the objection 4.Classify the objection to determine when and how to answer it 5.Answer the objection with concern, conviction, and enthusiasm

42. © Vlerick Business School CLASSIC OBJECTION-HANDLING TECHNIQUES  Forestall the objection  Compensate  Feel, felt, found

43. © Vlerick Business School STEPS IN THE SALES PROCESS 1.Lead Generation 2.Lead qualification 3.Needs Identification: SPIN Selling  Situation  Problem  Implication  Need Payoff 4.Feature/Benefit Presentation 5.Marketing Plan and Business Proposal 6.Close 7.Objection Handling 43

44. © Vlerick Business School EMPLOYING CLOSING TECHNIQUES  Why should salespeople employ closing techniques?  Many prospects find it difficult to make decisions  Prospects want to make the right decisions, but complete certainty in buying never exists  Many prospects will postpone decisions if salespeople let them  After a sales presentation, prospects often feel confused and hesitant  The salesperson’s goal is to explain/demonstrate how the benefits of the product or service outweigh the risks associated with buying

45. © Vlerick Business School TRADITIONAL CLOSING TECHNIQUES  Assumptive Close  Summarizing the Benefits  Reserving an Advantage  Single Benefit Close  Similar Situation Close  Price Reduction Close  Asking for a Trial Order

46. © Vlerick Business School IF A SALE IS MADE  Before leaving a customer who has agreed to a sale:  Show appreciation for the customer's business, but do not gloat  Reassure the customer that the decision is a good one  Solicit sales leads  Complete all necessary paperwork, and finalize the details  Be sure to leave with a good understanding of the customer's expectations

47. © Vlerick Business School IF A SALE IS NOT MADE  When a sale is not made, the salesperson still has duties to perform:  Duties to the customer  Duties to the sales organization

48. THANK YOU! DEVA.RANGARAJAN@VLERICK.COM