Presentation (the seven steps of the sale - 4)

· the sales presentation should focus on a central proposition, which should be the unique perceived benefit that the prospect gains from the product/service

· during the questioning phase the sales person will have refined the understanding (and ideally gained agreement) as to what this is - the presentation must now focus on 'matching' the benefits of the product with the needs of the prospect so that the prospect is entirely satisfied that the proposition

· the sales person therefore needs an excellent understanding of the many different organizational benefits that accrue to customers, and why, from the product/service - these perceived benefits will vary according to the type of customer organization (size, structure, market sector, strategy, general economic health, culture, etc)

· the sales presentation must demonstrate that the product/service meets the prospect's needs, priorities, constraints and motives, or the prospect will not even consider buying or moving to the next stage; this is why establishing the prospect's situation and priorities during the questioning phase is so vital

· the above point is especially important to consider when the sales person has to present on more than one occasion to different people or groups, who will each have different personal and organizational needs, and will therefore respond to different benefits (even though the central proposition and main perceived benefit remains constant)

· all sales presentations, whether impromptu (off the cuff) or the result of significant preparation, must be well structured, clear and concise, professionally delivered, and have lots of integrity - the quality and integrity of the presentation is always regarded as a direct indication as to the quality and integrity of the product/service

· it follows then that the sales person must avoid simply talking about technical features from the seller's point of view, without linking the features clearly to organizational context and benefit for the prospect - also avoid using any jargon which the prospect may not understand

· sales presentations must always meet the expectations of the listener in terms of the level of information and relevance to the prospect's own situation, which is another reason for proper preparation - a vague or poorly prepared sales presentation sticks out like a sore thumb, and it will be disowned immediately

· when presenting to influencers, which is necessary on occasions, it is important to recognise that the sales person is effectively asking the influencers to personally endorse the proposition and the credibility of the selling organization and the sales person, so the influencers' needs in these areas are actually part of the organizational needs of the prospect company

· the presentation must include relevant evidence of success, references from similar sectors and applications, facts and figures - all backing up the central proposition

· business decision-makers buy when they become satisfied that the decision will either make them money, or save them money or time; they also need to be certain that the new product/service will be sustainable and reliable; therefore the presentation must be convincing in these areas

· private consumer buyers ultimately buy for similar reasons, but for more personal ones as well, eg., image, security, ego, etc., which may need to feature in these type of presentations if they form part of the main perceived benefit

· while the presentation must always focus on the main perceived benefit, it is important to show that all the other incidental requirements and constraints are met - but do not over-emphasise or attempt to 'pile high' loads of incidental benefits as this simply detracts from the central proposition

· presentations should use the language and style of the audience - eg., technical people need technical evidence; sales and marketing people like to see flair and competitive advantage accruing for their own sales organization; managing directors and finance directors want clear, concise benefits to costs, profits and operating efficiency; and generally the more senior the contact, the less time you will have to make your point - no-nonsense, no frills, but plenty of relevant hard facts and evidence. See the presentation section for more guidance on this.

· if the sales person is required to present to a large group and in great depth, then it's extremely advisable to enlist the help of one or two suitably experienced colleagues, from the appropriate functions, eg., technical, customer service, distribution, etc., in which case the sales person must ensure that these people are properly briefed and prepared, and the prospect notified of their attendance.

· keep control of the presentation, but do so in a relaxed way; if you don't know the answer to a question don't waffle - say you don't know and promise to get back with an answer later, and make sure you do.

· never knock the competition - it undermines your credibility and integrity - don't even imply anything derogatory about the competition

· if appropriate issue notes, or a copy of your presentation

· use props and samples and demonstrations if relevant and helpful, and make sure it all works properly

· during the presentation seek feedback, confirmation and agreement as to the relevance of what you are saying, but don't be put off if people stay quiet

· invite questions at the end, and if your are comfortable, at the outset invite questions at any time - it depends on how confident you feel in controlling things

· whether presenting one-to-one or to a stern group, relax and be friendly - let your personality and natural enthusiasm shine through - people buy from people who love and have faith in their products and companies

5. overcoming objections/negotiating (the seven steps of the sale - 5)

· decades ago it was assumed that at this stage lots of objections could appear, and this would tend to happen, because the selling process was more prescriptive, one-way, and less empathic; however, successful modern selling now demands more initial understanding from the sales person, even to get as far as presenting, so the need to overcome objections is not such a prevalent feature of the selling process

· nevertheless objections do arise, and they can often be handled constructively, which is the key

· if objections arise, firstly the sales person should qualify each one by reflecting back to the person who raised it, to establish the precise nature of the objection - "why do you say that?" , or better still, "what makes you say that?, is usually a good start

· it may be necessary to probe deeper to get to the real issue, by asking why to a series of answers - some objections result from misunderstandings, and some are used to veil other misgivings which the sales person needs to expose

· lots of objections are simply a request for more information, so definitely avoid responding by trying to re-sell the benefit - simply ask and probe instead; the best standard response is something like "I understand why that could be an issue, can I ask you to tell me more about why it is and what's important for you here?.."

· try to avoid altogether the use of the word 'but' - it's inherently confrontational

· an old-style technique was to reflect back the objection as a re-phrased question, but in a form that the sales person is confident of being able to answer positively, for example: the prospect says he thinks it's too expensive; the sales person reflects back: "I think what you're really saying is that you have no problem with giving us the contract, but you'd prefer the payments staged over three years rather than two? - well I think we could probably do something about that..."

· another old-style technique used to be to isolate the objection (confirm that other than that sticking point everything else was fine), then to overcome the objection by drawing up a list of pro's and con's, or analysing to death all the hidden costs of not going for the deal, or re-selling the benefits even harder, and then to close powerfully, but these days such a contrived approach to objection handling is likely to insult the prospect and blow the sales person's credibility

· the 'feel-felt-found' technique was another popular tactic in overcoming objections: this is a response built around the three 'feel felt found' elements: "I understand how you feel/why you feel that...//Other customers have felt just the same/that...//But (or 'And') when... they have found that..." The method uses empathy in stage one, neutrality and group reference (shifting the issue away from personal confrontation) in stage two, and then counters the objection and reinforces the benefits using (alleged) majority evidence in stage three, in the hope of persuading the buyer that he/she is isolated and missing out if deciding not to buy

· it is important to flush out all of the objections, and in so doing, the sales person is effectively isolating them as the only reasons why the prospect should not proceed, but then the more modern approach is to work with the prospect in first understanding what lies beneath each objection, and then working with the prospect to shape the proposition so that it fits more acceptably with what is required. See the section on negotiating.

· avoid head-to-head arguments - even if you win them you'll destroy the relationship you'll go no further - instead the sales person must enable a constructive discussion so that he and the prospect are both working at the problem together; provided the basic proposition is sound most objections are usually overcome by both the seller and the buyer adjusting their positions slightly; for large prospects and contracts this process can go on for weeks, which is why this is often more in the negotiating arena than objection handling

· you've handled all the objections when you've covered everything that you've noted down - it's therefore important to keep notes and show that you're doing it

· by this stage you may have seen some signs that the prospect is clearly visualising or imagining the sale proceeding, or even talking in terms of your working together as supplier and customer; this is sometimes called buying warmth. Certain questions and comments from prospects are described as buying signals because they indicate that the prospect may be visualising buying or having the product/service. In the old days, sales people were taught to respond to early buying signals with a 'trial close', but this widely perceived as clumsy and insulting nowadays. Instead respond to early buying signals (ie those received before you've completed the presentation to the prospect's satisfaction, and answered all possible queries) by asking why the question is important, and then by answering as helpfully as possible

6. close/closing/agreement (the seven steps of the sale - 6)

· in modern selling, even using the traditional Seven Steps process, every sales person's aim should be to prepare and conduct the selling process so well that there are few if any objections, and no need for a close

· the best close these days is something like "Are you happy that we've covered everything and would you like to go ahead?", or simply "Would you like to go ahead?"

· in many cases, if the sales person conducts the sale properly, the prospect will close the deal himself, and this should be the another aim for the sales person - it's civilised, respectful, and actually implies and requires a high level of sales professionalism

· the manner in which a sale is concluded depends on the style of the decision-maker - watch out for the signs: no-nonsense high-achievers are likely to decide very quickly and may be a little irritated if you leave matters hanging after they've indicated they're happy; cautious technical people will want every detail covered and may need time to think, so don't push them, but do stay in touch and make sure they have all the information they need; very friendly types may actually say yes before they're ready, in which case you need to ensure that everything is suitably covered so nothing can rebound later

· for the record here are some closes from the bad old days - the traditional golden rule was always to shut up after asking a closing question, even if the silence became embarrassingly long - (a who-talks-first-loses kind of thing) - use them at your peril:

· the pen close: "Do you want to use your pen or mine?" (while producing the contract and pen)

· the alternative close: for example - "Would you like it delivered next Tuesday or next Friday?", or "We can do the T50 model in silver, and we have a T52 in white - which one would you prefer?"

· the challenge close: "I know most men wouldn't be able to buy something of this value without consulting their wives - do you need to get your wife's permission on this?.." or "Most business people in your position need to refer this kind of decision to their boss, do you need to refer it?"

· the ego close: "We generally find that only the people who appreciate and are prepared to pay for the best quality go for this service - I don't know how you feel about it?..."

· the negative close: "I'm sorry but due to the holidays we can't deliver in the three weeks after the 15th, so we can only do it next week, is that okay?"

· the guilt close: "Over three years it might seem a lot of money, but we find that most responsible people decide they simply have no choice but to go for it when it's less than a pound/dollar a day to protect your.../safeguard your..../improve your... (whatever)."

· the sympathy close: "I know you have some reservations that we can't overcome right now, but I've got to admit that I'm pretty desperate for this sale - my manager says he'll sack me if I don't get an order this week, and you're my last chance - I'd be ever so grateful if you'd go ahead - and I promise you we'd be able to sort out the extra features once I speak to our production people..." (How could anyone live with themselves using that one?....)

· the puppy dog close/puppy dog sale: "Let me leave it with you and you see how you get on with it..."

· the last ditch close: (sales person packs case and goes to leave, but stops at the door) "Just one last thing - would you tell me where I went wrong - you see I just know this is right for you, and I feel almost guilty that I've not sold it to you properly, as if I've let you down....."

· the pro's and con's list: "I can appreciate this is a tough decision - what normally works is to write down a list of all the pro's and con's - two separate columns - and then we can both see clearly if overall it's the right thing to do..."

· the elimination close: "I can see I've not explained this properly - can we take a moment to go through all the benefits and see which one is holding us back from proceeding?" (At which the sales person lists all the benefits - the positives, and runs through each one to confirm it's not that one which is causing the problem, crossing a line through each as he goes. When he crosses the last one out he can claim that there really seems to be no reason for not going ahead...)

7. follow-up/fulfilment/delivery/admin (the seven steps of the sale - 7)

· after-sales follow-up depends on the type of product and service, but generally for every sale the sales person must carry out a number of important processes:

· all relevant paperwork must be completed and copies provided to the customer - paperwork is will cover the processing of the order, the confirmation of the order and its details to the customer, possibly the completion of installation and delivery specification and instructions

· Sales reporting by the sales person is also necessary, generally on a pro-forma or computer screen, typically detailing the order value, product type and quantity, and details about the customer such as industrial sector - each sales organization stipulates the sales person's reporting requirements, and often these are linked to sales commissions and bonuses, etc.

· The sales person should also make follow-up contact with the customer - as often as necessary - to confirm that the customer is happy with the way the order is being progressed; this helps reduce possible confusion and misunderstood expectations, which are a big cause of customer dissatisfaction or order cancellation if left to fester unresolved

· Customer follow-up and problem resolution must always be the responsibility for the sales person, who should consider themselves the 'guardian' of that customer, even if a well-organised customer service exists for general after-sales care

· Customers rightly hold sales people responsible for what happens after the sale is made, and good conscientious follow-up will usually be rewarded with referrals to other customers - this is also helpful for networking

· Follow-up is an important indicator of integrity; when a sales person makes a sale he is personally endorsing the product and the company, so ensuring that value and satisfaction are fulfilled is an integral part of the modern sales function

The product offer (also called 'sales proposition')

FABs (features advantages benefits)
USPs (unique selling propositions/points)
UPBs (unique perceived benefits)

The product offer, or sales proposition, is how the product or service is described and promoted to the customer. The product offer is generally presented in varying levels of detail and depth, depending on the situation.

As an opening or initial proposition the words are used by the sales person to attract attention and interest in verbal and written introductions to prospects - so it has to be concise and quick - remember that attention needs to be grabbed in less than five seconds.

The product offer is also used by the selling company in its various advertising and promotional material aimed at the target market.

Traditionally the selling company's marketing department would formulate the product offer, but nowadays the sales person greatly improves his selling effectiveness if he able to refine and adapt the product offer (not the specification) for targeted sectors and individual major prospects.

Developing and tailoring a product offer, or proposition, is a vital part of the selling process, and the approach to this has changed over the years.

FABs (features - advantages - benefits)

The technique of linking features, advantages, and benefits (FABs) was developed in the 1960s and it remains an important basic concept for successful selling and sales training. FABs were traditionally identified and by the company and handed by the training department to the sales people, who rarely thought much about developing them.

Here is the principle of using Features, Advantages, Benefits:

Customers don't buy features, they don't even buy the advantages - what they buy is what the product's features and advantages will do for them, which in selling parlance is called the benefit.

For example: A TV might have the feature of internet connectivity and a remote control qwerty keyboard; the advantage is that the customer can now access and interchange internet and TV services using a single system; and the benefit is that the customer saves money, space, and a lot of time through not having to change from one piece of equipment to another.

It's the saving in money, space and hassle that the customer buys. A sales person who formulates a sales proposition or product offer around those benefits will sell far more Internet TV's than a sales person who simply sells 'TV's with internet connectivity and remote qwerty keypads'. In fact lots of customers won't even have a clue as to what a 'TV with internet connectivity and remote qwerty keypad' is, particularly when it's packaged, branded and promoted as the latest 'WebTV XL520 with the new Netmaster GT500 Supa-consul'....

Moreover the few customers who recognise the product benefit by its features and advantages will also recognise all the competitors' products too, which will cause all the sales people selling features and advantages to converge on the most astute purchasing group, leaving the most lucrative uninformed prospects largely untouched.

The aim is to formulate a product offer which elegantly comprises enough of what the product does and how, with the most important or unique benefits for a given target market or prospect type.

USPs (unique selling points/propositions)

The strongest benefit for a given target sector is often represented by the term USP, meaning unique selling point or proposition (for many companies no real uniqueness exists in their USPs, so the term is often used rather loosely where the word 'strongest' would be more apt). Real or perceived uniqueness is obviously very important because it generally causes a prospect to buy from one sales person or supplier as opposed to another. If there were umpteen WebTVs on the market, the ones that would sell the best would be those which had the strongest unique selling points.

Price is not a USP; sure, some people only buy the cheapest, but most do not; most will pay a little or a lot extra to get what they want. As with the example of the WebTV, an advantage that produces a money-saving benefit is different to straight-forward price discounting. A low price is not a benefit in this context, and any product that is marketed purely with a low-price USP will always be vulnerable to competition which offers proper user-related benefits, most of which may come in the form of a higher value, higher price package.

What makes it difficult to succeed all the time with a fixed USP or series of USPs is that one man's USP is another man's dead donkey - USPs by their nature fail to take account of a prospect's particular circumstances and detailed needs. The name itself - unique selling point - says it all. Purchasers of all sorts are more interested in buying, not being sold to.

Each type of prospect has different reasons for buying. Market sectors or prospect types with smaller houses and fewer rooms are more likely to respond to the space-saving benefit of the WebTV as the product's main USP. Market sectors or prospect types with big houses and lots of big rooms are more likely to regard the time-saving benefit as the key USP instead. A sector which comprises people who are not technically competent or advanced, may well respond best to a USP that the supplier could fail to even mention, ie., installation, training and a free technical support hotline. Where does that leave the sales person if his marketing department hasn't included that one on the list?..

UPBs (unique perceived benefits)

This leads us to the UPB, meaning unique perceived benefit - a modern selling concept naturally evolved from FABs and USPs.

The UPB acronym and concept was originated by The Marketing Guild, and it is proper to mention this when using the term in training.

A UPB is essentially a customer-orientated product offer.

The problem with USPs and FABs is that they are largely formulated from the seller's perspective; they stem from product features after all. So if instead of looking at the product from the seller's viewpoint, we look at the need, from the customer's viewpoint, we can build up a UPB-based product offer that fits the prospect's situation and motives much better than any list of arbitrary FABs and USPs.

First it comes down to knowing the target market segment, or the targeted prospect type, extremely well. This implies that we should first decide which sectors or segments to target, and it also shows why the planning and preparation stage in the selling process is far more significant and influential than it ever used to be.

Each targeted segment or prospect type has its own particular needs and constraints, and these combine to create the prospect's or target sector's very specific buying motive. So if we can identify and then formulate a unique perceived benefit to meet or match a known or researched sector's specific buying motive, we can create a very well-fitting and easily recognisable product offer indeed.

For instance, a likely attractive target sector for the WebTV could be families with limited space and little technical confidence. With children at school learning how to use computers, their parents (the decision-makers) would likely be interested in improving their children's access to internet services at home, given no requirement for extra space, and in a way that didn't put pressure on their limited technical know-how at the time of installation and for ongoing support. If the package enabled the parents to upgrade their TV as well for not much more than the cost of a conventional TV, then we're certainly likely to get their attention and interest, and we're a short step away from creating some real desire. The UPB for this particular prospect type might look something like:

"You can now give your children important educational access to the Internet at home, if you know nothing about computers, and don't even have room for one."

The product offer above is described so that the prospect type in question identifies with it, and can immediately match it to his own situation. The WebTVs relevant benefits - ie., you save space and you don't need to spend time understanding the technicalities - have been translated to match exactly why we believe that the prospect might be motivated to consider buying it. The 'important educational' reference is an example of developing the UPB further, ie., that your children's education will be improved. The trade-off is that more words reduces impact and attention; only by using the UPB in various forms can we see what works best.

It's now clear to see the difference now between a basic technical feature ('a TV with internet connectivity and remote qwerty keypad) and an unique perceived benefit (your children will be better educated). The feature does nothing to attract the buyer; the UPB does a lot.

There's another important reason to use tailored perceived benefits, rather than focus on FABs and unique selling points: it's easy for prospects to compare and put a price on what a product is (FABs and even USPs), but it's very difficult to value a real UPB. This means that sales people who sell UPBs are far less prone to competitor threat.

Developing strong meaningful unique perceived benefits is not easy - it requires good insight and understanding of the prospect or sector to be approached, and a lot of thought, trial and error to arrive at something that works well.

Remember that it is important to adapt the product offer (UPB, sales proposition or however you define it) according to its use in the selling process. For example:

· When cold calling, the proposition is generally broad, concise, and more strategic in nature, and amounts to no more than a long sentence.

· In sales brochures and enquiry follow-up letters the product offer or proposition is more detailed, perhaps running to a few sentences or bullet points.

· In formal proposals and detailed presentations the proposition can often extend to several paragraphs.

consultative selling, 'needs-creation' selling, and 'SPIN Selling®'

Consultative selling involves deeper questioning of the prospect, about organizational and operational issues that can extend beyond the product itself. This leads to greater understanding of the prospect's wider needs, (particularly those affected by the product), and the questioning process itself also results in a greater trust, rapport, and empathy between sales-person and buyer. The process has been practised instinctively in good sales people and organizations for many years, particularly since the 1970s, especially for concept selling or service solutions selling, driven by competitive pressures, as buyers began to learn as much about the sales process and techniques as the sales people themselves. In the 1970s and 1980s various proprietary frameworks and models were established, and many of these remain in use today. The 'needs-creation' selling approach is example of consultative selling. It's more involving (of the client) than the essentially one-way prescriptive Seven Steps method, but it is still largely centred on what the supplier wants, rather than helping the buyer.

In 'needs-creation' selling, the sales-person seeks to identify and then 'enlarge' a particular need, problem, challenge or issue that a potential customer faces. Obviously the sales-person would must have a reasonable confidence that the supplier organisation is able to offer a suitably matched remedy or solution (product and/or service proposition) once the 'need', with all of its attached considerable and negative strategic and financial implications, are firmly established in the buyer's mind.

The consultative aspect exists hopefully in the sales-person's ability, experience and expertise, to 'consult' with the buyer in developing a solution, which of course entails the supplier organisation provision of product and/or service.

The process is rather like the process employed by professional consultants in all sorts of 'professional' and 'technical' disciplines (for example, engineering, health and safety, law, finance, IT, etc):

1. Research the prospective customer organisation to confirm suitable prospect profile (subject to the supplier's prospect qualification criteria), and competitor threats, opportunities, contract review dates, past dealings, etc.

2. Establish rapport and seller's professional credentials with the client (typically by referencing case-histories and case-studies for successful solutions provided in similar markets and applications that are similar to those of the prospective client).

3 Ask 'strategic' open questions to identify, explore and develop areas of potential problems, difficulties, aims, challenges and unresolved issues within the prospect organisation. Normally identify and agree on a single primary issue (which represents both a major concern for the buyer, and a relevant area of product and/or service opportunity for the seller.) This could be a 'distress' or emergency pressure, priority, or threat, for example an issue which the prospect is involved in 'fire-fighting' to resolve currently, such as legislative compliance; or a strategic development opportunity for market or business development, to which significant potential profit, cost-savings and/or competitive advantage are attached.

4. Interpret, clarify, extend and quantify in financial and strategic terms the knock-on effects of the primary area of opportunity or threat. That is to say, what are all the negative effects and costs of failing to resolve the threat or pressure?, or what are all the positive effects and revenues/profits that will be derived from achieving the identified strategic opportunity? The sales person is effectively doing three things here:

a) Increasing the size and cost/value of the issue heightens the issue's priority and importance, and thus increases the buyer's feeling that action must be taken - it gets the issue higher up the buyer's agenda and closer to the front of his/her project schedule.

b) Increasing the size and complexity of the issue increases the need and opportunity for consultative advice - the buyer increases his/her perception that outside expertise (from the seller) is required.

b) Increasing the costs or values associated with the issue naturally increases the buyer's tolerance and expectations for the cost of the supplier's proposed product/service solution - the higher the cost or value of the challenge, then the higher the cost of the solution.

5. Sell the principle of the seller's solution (necessarily in outline for large prospects - small, simple situations often require specific solutions proposals at this stage), matching the benefits of the solution to the various aspects of the prospect need or strategic opportunity. For larger prospects it is commonly necessary to agree to proceed with a survey or assessment prior to producing a fully detailed proposal. A large complex proposal would typically need to be presented by the sales-person, or a team from the seller's organisation, to a board or decision-making team within the prospect organisation.

The final point referring to a buying organisation's decision-making team provides a clue as to the weaknesses of these traditional supplier-orientated selling methods. Decision-making within organisations, particularly large ones, is a highly complex process. Often the organisation, and certainly the buyer, does not understand it, let alone be able or willing to explain it to an outsider.

Buyers rarely explain everything to a sales-person during a consultative meeting, however good the sales-person is. This is not a criticism of buyers - simply an acknowledgement of the extremely complex nature of organisational decision-making. As such, consultative selling and 'needs-creation' selling, howsoever packaged, don't always provide a reliable selling framework for the modern age.

Buyers and customer organisations often need more help, especially in the early stages of the sales process.

They need help with their own processes of evaluation and assessment, decision-making, communications, and implementation, which traditional 'consultative selling' alone is unable to address in a true and meaningful sense. For this reason, if you seek to become a truly expert and effective sales person modern selling and business, I would urge you to look beyond the traditional methodologies, to the modern philosophy and concepts contained in collaborative and facilitative selling, especially the ideas developed and defined by Sharon Drew Morgen.

Date: 2015-01-11; view: 1078