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Closing the Sale – Part 1
Closing the sale has always been a mysterious topic to those new to selling, and is, therefore, a frequently discussed topic in sales-related training environments. A variety of techniques are normally taught, and these concepts are necessary and useful to all of us, regardless of tenure, as they help to keep us focused on our ultimate goal of getting the business. In practice, however, most seasoned sales professionals will confess that the most effective closing techniques aren’t of any specific type, and that they know of no magic words with which they can close business at will. Their approach, instead, is to allow the customer to buy in a more natural way that is part of the entire selling process. Here are a few ideas (secrets?) on how to “naturally” close the sale:
Of course, there’s no such thing as a foolproof plan, so more ideas on closing the sale will follow in our next issue, which will include “Secrets of Closing the Sale - Part II."
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Closing the Sale – Part 2
Closing has always been a mysterious topic for those new to selling. And, regardless of tenure or experience, ideas promoting a strong focus on the goal of making the sale are worth reviewing – after all, every process can be improved! In our last issue, we presented the concept of allowing prospects and customers to buy in a natural way, and discussed the importance of asking the right questions, careful listening, delivering tailored selling presentations, and good timing. Here are a few more ideas on how to “naturally” close the sale: Assume the close. A short discussion with an experienced, successful colleague will likely reveal the fact that the most successful sales reps honestly expect customers and prospects to buy. If we are diligent in our questioning and listening techniques and, consequently, offer customers and prospects true solutions to their needs (needs that are both expressed and “identified”), then it is fair and reasonable that we should expect them to buy. If we approach people with this attitude we’re likely to be perceived as confident, knowledgeable, and deserving. Many buyers will opt for the sales person whose tone, demeanor, and attitude all say, “I’m sure that when you weigh all the facts, you’ll agree we’re offering the best solution – most everyone else thinks so too!” Look for the “No!” A common phrase in the selling world, looking for the “No!”, simply means that we should ask all pertinent questions, listen to the customers’ or prospects’ responses, and continue doing so until we’ve exhausted all potential objections. Some successful sales pros have even been known to ask questions such as, “What might cause you to choose a solution other than ours?” If we get an honest answer to that question, we can then address the given reason (objection) and then close the sale. If at this point we are not successful, we can ask clarifying questions, establish more value, and try again. Be direct – ask! A thirty-year old sales training film that is still used today features a distraught young woman who, when speaking of the boyfriend she has just broken-up with says, “He talked of a life in which I’d be his wife, but… he never came right out and asked me! And now it’s too late, no longer could I wait, I wish he had simply just asked me!” Buyers sometimes become wary of sales people who beat-around-the-bush when asking for orders. Some buyers even become suspicious, as a sales person’s indirect attempt at closing can be misconstrued as a lack of confidence in the product or service being offered. Knowing when to be quiet is also important. Once we have directly asked for an order, it is essential that we quietly await an official response. After asking for an order, the rule of thumb has always been, “The first one to speak owns it!” In theory, once we deliver a solid selling presentation in which appropriate features, advantages, and benefits have all been highlighted, there really isn’t anything left to say! We’re better off asking for the order and, for the moment, leaving the decision in the hands of the customer or prospect. Only after a “no” response is given should we once again resume the selling process. As noted in “Part I” of this article, there’s no such thing as a foolproof plan, so keep on trying – practice does make a difference, and through practice we all improve!
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Keep Marketing Marching On By Peter Gagnon At the moment, Federal Reserve Chairman Alan Greenspan is telling us that the economy is sending mixed messages. We keep hearing about ideas to ‘stimulate,’ ‘jump-start’ or drive the economy on to better times. Will we ever get it to turn that proverbial corner? Regardless of when better times hit, it is important to keep marketing efforts on the move so that your customers are consistently aware of your presence. While your marketing efforts might need to become more focused or a bit more tactical, it is essential to keep delivering your message in a professional and meaningful way during tough economic times. It is also important to concentrate on market share when everyone seems to be focused on market conditions. If others are curbing marketing activities and becoming less visible, there’s an opportunity for those who continue to entice new customers. At times when consumers want to feel the most comfortable with whom they do business, are they likely to choose the providers who are not advertising? Don’t think of these as leaner times, but think of them as times when consumers are looking closer before buying; times when buyers are not as willing to make spur of the moment purchases. And if they do, in fact, want to take a closer look at those from whom they may buy, sellers who are not currently advertising are at a disadvantage. As noted in a recent Boston Globe article, “...the US economy should finally emerge from its prolonged 'soft patch' and begin growing at a faster clip, a panel of prominent economic forecasters predicts, but not until the second half of this year.” It may not be that long until the economy finally picks up the pace to healthier times. In the meantime, there is an opportunity for those who keep their marketing efforts on the march to let consumers know they have quality products and services that are worth a look in both good times and in bad. Peter Gagnon is a Paul Charles Associate. He can be reached through our office.
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Marketing Magic
Many business owners and managers wonder about the role their marketing effort should, or could, play, especially during slower economic times. Since qualified buyers are not a given, we must consistently seek out, attract, acquire, and retain customers if we are to keep our businesses thriving - even when the economy isn’t cooperating. If you’re wondering how this might best be accomplished, the simple answer is marketing. Marketing is the process for planning, as well as executing, the pricing, promotion, and distribution (selling) of goods and services – it is the process for generating demand. And it is a business function that has, over the past fifty years, become an area of increased focus for companies of all sizes. To establish a simple starting point on how to best focus your marketing effort, you might consider the following steps from the American Marketing Association: Identify and research your market. You must understand how customers and prospects relate to your products and services – you must know what they want, when they want it, how it fits into their lives, what satisfies them, and what frustrates them. Develop a marketing strategy – the best ways of approaching the right segments of your market, given your current business position and goals. Build a marketing plan – set straightforward objectives that are consistent with your overall strategy, using tools such as direct mail, advertising, promotion, etc. Implement – stick to your plan and coordinate your group’s selling strategies and activities. Monitor the success of the plan – we all learn from past success or failure. Though this five-step process may appear straightforward, many companies demonstrate confusion when attempting to carry it out. Success will be yours, however, if you can offer products and services that match consumers' needs, wants, and desires, and if you find an effective way (marketing plan) to get the message out.
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Long War - Sell Value By Laurence Sanford Life is a long war, make sure you survive. Business is a long war, make sure you survive. Professor Hickey, who taught my sophomore Business Law class at Boston College, constantly used the expression "life is a long war and the main priority is to survive." The same is true in sales or a business life - make sure you survive. And the key to selling and surviving is effective pricing and the perception of value. If the overall pricing is not high enough to cover costs, business can not survive. But the perception of value for your product or service determines the pricing. If viewed as a commodity, then pricing is very constricted. A paper clip is a commodity item in the office; in prison the same paper clip could be worth a fortune if it assists in picking a lock to escape. In the office product business, paper clips and another dozen or so items are often sold below cost in order to promote the perception that, since your company offers the lowest price on these items, your company is the low-cost supplier on the other 26,000 items in the catalog. Supermarkets also use the loss leader concept of selling by advertising special items at low prices to lure customers into the store. In this model, perception is more important than cost. Obviously you can not survive if you sell loss leaders and not enough profitable products. The trick is to provide the perception of low prices and the reality of charging higher prices on other products. But you need customers and you need to continually add new customers. Pricing and the perception of value is what keeps old customers and recruits new customers. If your product is not perceived as a commodity, then pricing is much more flexible. But even the most common commodity, if perceived as being of value, can be sold at a high price. The “Pet Rock” is a classic example. Our job is to get past the price of paper clips and create the perception of value. We all would love to find customers who have little or no spending restraints. A Tyco $5000 umbrella stand comes to mind, as does a government project such as the $2 billion Big Dig escalating to $16 billion – but that is a future issue. The sales organization’s job is to keep and find customers by projecting the perception of value to maximize pricing to maximize profits so your company will survive. And while they are at it, they should try to find customers where there are little or no spending restraints too! Laurence Sanford is a Paul Charles Associate. He can be reached through our office.
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Rate the Value of Your Presentations What should your company’s typical sales presentation include? Obviously product and service information along with pricing and delivery details must be a part of every presentation. So too must visual aids - brochures, charts, pamphlets, overheads, videos, specifications, etc. - any material necessary to inform and educate your prospects. And every presentation must be interesting if it is to be effective. You have more than likely read and studied various texts and sales manuals describing the how-tos, dos & don’ts, and structural concepts that relate to good selling presentations. And good form is certainly important. But what about the company message? Does your sales team convey the big picture? Are your prospects and customers hearing what your company is really all about? Does your sales team truly know what your company is all about? In many cases it is difficult to impart the necessary quantity of information to prospects. Some are too busy, others disinterested, and there are those who just "don’t want to hear it" because they are inclined to buy elsewhere or because they are under the impression that they are already well enough informed. So as we vie for their time and attention, most often taking what we can get, what portion or portions of our full presentation do we present and what portions do we leave out? Unfortunately, product descriptions are usually left in and the big picture message often gets left out. And the "big picture" company message is the most important part of a winning sales presentation! Making prospects aware of company business philosophies, satisfaction guarantees, problem solving and support capabilities, and customer care programs is what will best distinguish you from your competitors. If a prospect is impressed with this portion of a sales presentation, the odds are that he or she will make time to hear the rest of the details.
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Business Meetings that Work In their book "How to Communicate," Patrick Flanning, Matthew McKay, Ph.D., and Martha Davis, Ph.D. discuss group meetings and the dynamics of communication. They define a business meeting as being a task-oriented group activity where group problems take precedence over individual needs. A review of www.bestmind.com will reveal that "the best meetings are the ones where attention is paid to content, design, and process." We are also reminded that meetings are not destinations, but rather vehicles for reaching strategic objectives. So what are the best ways to make sure that our business meetings are properly structured and effective?
The four key elements involved are:
Design is a function of purpose, and involves participant selection, location, and scheduling. Before designing a meeting, it is important to define its purpose and goals. Only those who are crucial to goal achievement should be invited, as every meeting has an impact on the normal day-to-day responsibilities of the attendees. In addition to participant selection, designers sometimes select others to act as meeting or group leaders. While site decisions are normally straight-forward, scheduling often is not. If, for example, the purpose of a meeting is to solve a critical problem, then the meeting is likely to take priority over other scheduled events. This type of meeting is generally attended by senior/upper managers, and lasts for "as long as it takes." Training meetings, on the other hand, can be scheduled around busy times of day or year. Location, participant selection, the frequency of sessions, and the time allotted to each session can all be determined based upon the nature of the training, the group size, average tenure, or job performance. Once design decisions are made, planning is the next step. Though vital, the need for planning is often overlooked, and poor planning is the most common cause of unproductive meetings. Ideally, planning is done by both the meeting leader and the participants. The planning process, however, begins with the leader, who must conduct appropriate research so as to be capable of effectively organizing an agenda and leading the group. Once created, the agenda should be distributed to participants - preferably three days prior to the meeting - and the leader should encourage the group to not only become familiar with the agenda but also to prepare themselves for a meaningful discussion of the issues therein. As part of the planning process, meeting leaders should also compile handout/visual-aid materials, practice delivery, anticipate group reaction, and plan for group interaction. When necessary, the most effective meeting leaders also familiarize themselves with the room and with any props that will be used during the meeting, such as a microphone, projector, or computer system. It is also the leader’s responsibility to verify the availability of such props. Process involves starting and ending the meeting on time, establishing a decorum, presenting content, coming to a consensus, and setting a follow-up course of action. The best meetings are brought to order with a restatement of purpose and an explanation of the "rules," such as structure, the scheduling of breaks, who will have the floor, how questions will be addressed, and how long the meeting will last. It is then the leader’s responsibility to keep the discussion on-subject and focused on pre-defined group goals. Involving individual participants in the discussion might generate better ideas and can help to keep everyone interested, but can also compromise order. It is important for the leader to maintain control, to draw conclusions from the dialogue, and to identify the next step(s) in the process. Just as lack of preparation often results in poor meetings, poor follow-through is the most common cause of failure to accomplish anything after-the-fact. It is the leader’s responsibility to identify and/or assign follow-through steps and to monitor follow-through activities. If required, a follow-up meeting should be scheduled prior to adjournment. To be sure that all participants are on the same page, the astute leader will allow time for questions, and will end a meeting by summarizing both the discussion and the conclusions that were drawn, along with all agreed-upon next steps.
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Selling in a Slower Economy Economic shifts and the associated changes in buying attitudes demand reactionary modifications of selling activities. In slower economic times, people become more cautious. Not only are "buyers" harder to find, but they also take longer to buy and tend to buy form the safest sources - a-la "No one ever got fired for buying an IBM!" To keep your slice of the suddenly "smaller pie," be ready to adapt your team’s sales habits: Back to basics! When things get tough in sales, the "tough" get back to basics - back to making more calls; back to following-through and following-up on everything; back to the daily checklist and meticulous record-keeping; back to consistent prospecting and to using sales automation tools; back to visiting more customers, and back to providing a little "extra service." Before long, you'll be back on track! Looking for sales orders in more places will likely yield more of them. A regular dialog with co-workers such as installers, technicians, and the administrative staff is a start, as in many cases they can provide "inside" information about your customers. Networking with industry-related contacts to exchange strategies is another good idea. Useful data can also be found in local or regional newspapers and trade journals. Browsing one at lunch each day might well provide a couple of leads worthy of pursuit each afternoon. Regularly seeking out networking opportunities at association meetings, chamber of commerce events, or trade shows is another key activity that often gets underused. It's not always comfortable approaching people at these gatherings, but consider that many of them are there for the same purpose! In addition, making a habit out of asking customers and prospects for referrals is a good practice that makes even more sense during times when orders aren't as plentiful. Keeping the ball in your court makes it easier for you to set the pace of business. Being prepared with a few polite but effective phrases is often the key to keeping control and to arranging a timely next step. "I'm traveling (or) in meetings, so I'll call you back. When's a good time to try?" "Is it all right if I stop by with the pricing? I could leave it at the front desk, or maybe you'd like me to identify a few key points while I'm there." "I know you're busy, so let me take the initiative… can we get together again on the fifteenth?" Working on the right things might seem obvious, but brainstorming with managers/peers increases efficiency by shedding light on the right people to call, the best approaches to take, and the most appropriate benefits to stress. Regular meetings keep everyone focused on the right things. Diligent Follow-up. National Sales Executive Association stats regarding the importance of following up: 2% of sales are made on the 1st contact The sales process works best when a number of different things go right. The more things we try, the better our chances of success - especially if the market isn't cooperating.
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What Are You (Really) Selling? It is every sales person’s job to distinguish his or her products and services from those offered by the competition. And in a business world crowded with competitive offerings, an attempt to accomplish this by selling features and price most often fails. BMW makes cars, but they talk about (sell) performance and prestige! Volvo sells safety. What are you selling? Facing the challenges of buyers who focus on price or who "commoditize" our products and services is difficult. Success can only be achieved by selling benefits and solutions. The best sales people have developed skillful questioning and listening techniques to uncover a buyer’s true needs, as it is only then that they can effectively sell what every buyer truly wants (solutions). Conducting regular FAB (Feature, Advantage, Benefit) brainstorming sessions is a great way to get started. These are typically more challenging than one might expect! The simple formula is to say, "Because of this FEATURE, you get the following ADVANTAGE, which means BENEFIT." You might also imagine speaking to a customer who simply replies, "So what?" after each feature you present. Keep working until there is no way the customer can say, "So what?" Another option might be to conduct focus group meetings that match various service offerings with appropriate benefits or customer testimonials. While the methods can vary, the exercise will be worthwhile. Does anyone remember what Noxzema was selling?
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Sales Management - Does it Ever Change? By Alan MacNaughton I was talking to another old sales pro the other day and he mentioned that the fundamentals of selling haven’t changed since the Phoenicians were leasing ships to the Egyptians, back before Moses was a boy.
We then got onto the subject of sales force make-up from a talent-to- productivity standpoint, and how it always seems that:
1/3 are superstars - truly consistent, excellent producers How do you manage a sales force, given the above, particularly in times (like right now) of a limited pool of potential sales candidates? The "old pro" and I agreed that there was nothing inherently wrong with the mix as described, but there are a few challenges. We discussed three, along with the following solutions: Q. How do you maintain motivation of your superstars even though this group tends to be self motivated, already knows that they are "good," and are probably well compensated? A. One solution is to get this group competing against one another via some kind of sales contest, and do it regularly. Also be creative in your choice of prizes, leaning toward something that includes husbands, wives, or significant others. We all like to look good to our peers and partners. Q. How do you improve the middle group’s performance? A. In addition to sales training and in-field sales management support, encourage cross-fertilization between this group and the superstars at off- campus meetings or evening get- togethers. You want the superstars to share their skills, techniques, and attitudes. It is also important that contests are not structured so that the superstars always win. Contests must motivate the entire sales force. Q. What about the remaining third? A. Accept the fact that you will always have sales force turnover, and try to have the turnover come from the group that isn’t producing. I know of no sales manager who only hired winners. And we all know of people who became very successful in sales despite coming from (supposedly) unpromising backgrounds. As a manager you have to weed out non-producers, do it professionally and with empathy, and then get on with hiring the current bartender, bank teller, or inside person who wants to be in sales and who may be your next superstar. Alan MacNaughton is a Paul Charles Associate. He can be reached through our office.
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SFA Systems & Their Missing Link Most sales people report that their sales force automation (SFA) record system is a valuable asset, but deeper digging into how most systems are being used usually reveals a missing link. First, let’s state that we consider SFA systems, off-the-shelf or customized, to be key components of successful sales efforts. The list of plusses is a long one, and includes benefits for both sellers (easily retrievable data on sales activities, customer’s past buying habits, price quotes, etc.) and managers (if a sales rep leaves the company, a useful, legible customer- interaction history remains!). But while most sales people make efficient use of the customer-related data, few put to good use the daily activity summaries that most SFA systems offer. This data pertains to the sales rep’s work habits. The missing link, simply stated, is a daily call sheet - the means by which sales people keep track of what they are actually doing each day and, more importantly, what they are accomplishing! Not only is it important to know the number of calls made each day, but also the type of calls - prospecting calls, follow-up calls, presentations, closing appointments, deliveries, customer service calls, etc. - and the results of those calls. It is only when a daily log or call sheet is kept and analyzed that we can make honest determinations about what’s working and what isn’t, about what should be done in heavier doses and what should be done less frequently, and about which activities are bringing in the orders! Selling is a complicated business, and basing decisions simply on sales revenue, or the lack thereof, often results in many lost opportunities. But by paying attention to the details associated with daily activities and daily progress, it becomes possible to make necessary adjustments or to take notes that can be shared with other, less successful team members. After all, it’s difficult to know how well a total sales effort is really going, or how much better it could actually be, if nobody’s keeping score!
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Selling Attitude! "Nothing can stop the man with the right mental attitude from achieving his goal. Nothing on earth can help the man with the wrong mental attitude." W.W. Ziege Selling is a people business. People buy from people, and most often, from people that they like. But what makes one sales rep more likeable than the next? Surely all, or at least most sellers try to be likeable! Attitude makes the difference. A positive attitude is not only easily recognizable, but it’s catchy. Sellers who possess truly positive attitudes "assume the close." They honestly expect the best from prospects, and they offer their personal best as well. They tend to react to things positively and, more importantly, tend to bring about positive return reactions. Christine Harvey asks a pertinent question in her "Successful Selling" book. "What are the chances that your customer will be positive if you aren’t? The answer is zero." But it’s not easy to be truly positive! Especially when so much of selling tends to be negative. In his book Selling 101, Michael McGaulley writes, "Despite all the people one meets, selling is a lonely profession. They [sales people] may feel isolated, and not understand that selling is a matter of working through the nos to find the few yes responses that make it all worthwhile." Successful sales people know and understand this concept - and react positively to the negative responses that they know are all part of the cycle. Many sales professionals will readily admit that they "look for the nos," because it is only then that they can actually sell something. You may have read "Lifetime Plan for Success" by Dale Carnegie, who relates the story of poor Thelma Thompson, who in desperation complained to her parents about the miserable living conditions forced upon her during the war. Her father’s reply changed her life; his letter consisted of two lines: Two men looked out from prison bars, A positive attitude is a pre-requisite to long-termed sales success. We must first believe in our products and services, as well as in our companies and ourselves before we can expect customers and prospects to do so. Every sales person and every sales manager should recognize the importance of developing and maintaining such an attitude within themselves and within their organizations. A final testimonial to this discipline is a poem, author unknown, entitled The Winner. The final verse: Life’s battles don’t always go
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Tradeshow Selling Participating in a tradeshow is a common component of most business development efforts. The experience can be fun - the crowd, excitement, change in scene, and new product info are all stimulating, and there is the lure of developing new sales leads. You might even sell something! But lots of sales managers will tell you that "shows" can be expensive, and in many cases yield nothing. One frustrated VP of Sales even expressed disappointment with his group’s after-the-show effort. "We had a pile of business cards that nobody really knew anything about; as a result, any attempted follow-up was ineffective." Are tradeshows worth the effort? Can the costs be justified? Is there a way to make productive use of floor time? At a recent Greater Manchester Chamber of Commerce workshop, Rick Bonyman, Sales Manager at Woodmaster, Inc. of Hooksett, NH, masterfully answered yes to these questions and more. Planning, goal-setting and follow-up are all important, but the secret to tradeshow success is to properly deal with the known prospects, friends, competitors, and "suspects" that you encounter. "Suspects are the key," Bonyman explained. "You can call everyone else on Monday because you already know who they are." Everyday sales presentations are best left at the office on tradeshow days, as it becomes important to:
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