Part II SALES FORCE ACTIVITIES Chapter 5 Customer

Part II SALES FORCE ACTIVITIES Chapter 5: Customer Interaction Management

Improving Your Chances of Success 1. Build awareness 2. Get on the short list 3. Demonstrate how your proposal meets company needs 4. Directly address decision maker’s personal needs 5. Be prepared for “buyer remorse”

Phases of The Selling Process n Customer interaction process divided in to three phases : n PRE- INTERACTION : actions that are initiated prior to interaction with key decision makers , requiring skills in precall planning. n INTERACTION : actions initiated while interacting with decision makers , calling on skills in relating , discovery , advocating , handling objectives, and closing n POST-INTERACTION : activities following a transaction involving supporting skills.

Personal Selling Phases of The Selling Process PREINTERACTION Skills: n n Setting Objectives Knowledge Management Information Gathering Rehearsal INTERACTION Skills: n n Relating Need discovery Advocating Closing POSTINTERACTION Skills: n n Supporting Implementing Dealing with dissatisfaction Enhancing the relationship

Basic Types Of Selling Models : n Standardized model : n Referred to as benefitizing an offering. n benefitizing means translating features of a product into benefits believed to be of value to the customer. n benefitizing means how to transfer the specification of product into benefits, so focus on the benefits because customer wants benefits , not the specifications , the product is standardized when it is going to be sold and used by majority of the customers , and there are no specific characteristics needed. n If the buyer decision making is complex so standardized model is at a disadvantage. n The Standardized model is most appropriate when a product is standardized or when the benefits are the same for all customers.

Basic Types Of Selling Models : n Need satisfaction model : n This model is oriented to discovering and meeting customers’ needs. n Needs discovery is achieved by skillfully asking questions that will elicit customer buying needs. n Needs discovery takes place early in the selling cycle , often during the first call, and replaces the presentation as the most important step in the selling process. n (you are buy the benefits of the engine of the cars like high speed ) n According to customer needs we products , and these product are appropriate for specific people like CIA , Laptop. n Its appropriate for consultative types of customer relationship.

Basic Types Of Selling Models : n Problem solution model : n It is similar to needs satisfaction model in that both involve an analysis of each customer’s circumstances , the primary difference is that a problem solution is based on more formal studies of the customer’s operations , and this needs to gets customer permission to conduct such formal studies. n This selling model usually involves significant dollar expenditures , and the selling cycle may be quite long ( products like computers system , advertising campaigns , information systems ). n The problem is to identify customer with a sufficient value to cover the high investment involved in this model , and the other issue is the development of the capabilities of the company’s sales effort to effectively solve problems better than competition.

PRE- INTERACTION Phase: Planning skills n As the term planning skills implies, this stage occurs when you collect your thoughts and organize your interaction strategy prior to meeting a customer face to face.

Customer Interaction Pre-Call Planning § What do I want to accomplish? § What do I know about the prospect? § Where can I find the information? § What am I going to say?

PRE- INTERACTION Phase: Planning skills n Setting objectives : What do I want to accomplish? n Salespeople should not make a call unless they can specify an action that they want the prospect to take. n The objective should be clear , specific , not “ to collect information “ or “ build a good relationship “ n Objectives like these are good objectives : n The client agrees to supply information on historical inventory levels. n The client tells you who will be involved in the purchase decision. n These objectives calls for the customer to take a specific actions.

PRE- INTERACTION Phase: Planning skills n Knowledge management : What do I know about the prospect? n Basic information that may be useful to know about an individual includes exact spelling and pronunciation of her name , title , age , residence, education, buying authority , clubs and membership , hobbies , etc…. n Not only is personal information important , but you should also review what you know or do not know about the client’s organization. n Next are some of the question that a salesperson should be able to answer about a customer.

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

PRE- INTERACTION Phase: Planning skills n Information Gathering : Where can I find the information? n When you know what information you need to make successful sale call , you can usually identify a number of sources for obtaining the data. n Some of these resources are : company records , salespeople , customer employees , published information , observation of prospect’s business operations , ask competitor , the internet and the company websites. n Next are comparison of customer interaction techniques of very successful with less successful salespeople.

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

PRE- INTERACTION Phase: Planning skills n Rehearsal : What am I going to say? n All salespeople should have at least some idea of how they will initially tat an interaction, what questions they will ask , and what benefits they plan to present. n When preparing to call on clients , it is helpful to put yourself in their position , what would you want to know about your company and its products if you were the customer ? If you are ready for these questions , you are ready for the interaction with the customer and may have a better chance of success. n Next are questions that may help to expect or anticipate the buyer or customer questions.

Customer Interaction Anticipate Buyer Questions 1. What are you selling? 2. Why do I need it? 3. Who is your company? 4. How much will it cost? 5. Who else is using it? Are they satisfied? 6. What kind of person are you? 7. How does your solution compare to alternatives? 8. Is price competitive? 9. Why do I need it now? 10. Your record for support & service?

INTERACTION Phase: n Refers to what takes place during a face to face meeting with a customer. n We will focus on this phase on 3 skills that are important in all business and social interactions: n Relating n Discovering n Advocating n In addition there are two skills critical ro successful selling which is : n Gaining access n Closing n Gaining access to key personnel is very important when calling on prospects. n Closing is a necessary step in all selling situations but is most problematic during transactional type customer relationship.

INTERACTION Phase: n Gaining access to decision makers is not easy , following are 4 ways fir gaining access. n 1 --Direct personal contact (face to face ): the most difficult approach , without a prior attempt to communicate with the prospect , this approach is likely to create problems , for example the person may be busy , so the salespeople must wait. n The key is not to waste time , so you should use this time to learn more about prospect from others in the organizations , prepare for other scheduled calls , or complete necessary reports. The most difficult problem is that when the prospect has a negative reaction to being called on without an appointment.

INTERACTION Phase: n Gaining access to decision makers is not easy , following are 4 ways fir gaining access. n 2–-Phoning Ahead : using the telephone to approach prospects has a number of advantages , like make better use of the salesperson time and reduce the hours spent in waiting rooms , prospects who busy usually answer the phone and provide salespeople opportunity to introduce himself and set up a future meeting. n The main problem is that it easy to turn some one down over the telephone. n You can left a voice messages , start by state your name in the beginning and at the end of the message , keep the message as short as possible , state your phone number slowly , slower indeed than you think is necessary.

INTERACTION Phase: n Gaining access to decision makers is not easy , following are 4 ways fir gaining access. n 3 -- Personal letters : the first approach used to contact with customers in the past , letters are difficult more than the phone calls for the secretary to screen. n They also enable to attach brochures which help prospect to know more about the product than they can over the phone , the letter ended by suggesting dates for a meeting so focus the prospect attention on when to meet not whether to meet. n 4– E-mail messages : they have 2 advantages over the voice messages : n It is possible to send the message at very little cost in time and money to a large number of people n Graphics and detailed promotional material may be included with the message as an attachment to the main message.

INTERACTION Phase: n Relating skills : n Both of the people meeting for the first time experience a degree of tension. n Salespeople have long recognized call reluctance or the fear of making contact with a customer as a problem. n Customers are also feel a form of anxiety referred to as relationship anxiety when meeting a salesperson , this anxiety arise because people don’t like to be sold , they like to buy. n The role of salesperson is to help customers buy wisely , through relating skills , which mean the ability of salespeople to put the other person at ease in a potentially tense situation. n The first few moments of the selling meeting are important , because people formulate initial impressions at this time , so salespeople should be credible , competence , honest , likeable. n Don’t ask “ how are you “ but say “ thank for your time “ and to hand next the business card to the prospect , and introduce your self … n “” hello Mr. smith I am ragheb bseiso of xyz company , thank you for seeing me , I am here today to see if we can help you save money …”

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

INTERACTION Phase: n Needs discovery skills : is about understanding the other person’s perceptions of his or her most important needs and help them to fully understand these needs. its not easy to do so but when you really help customers understand the total cost of their problem and the extent of their opportunities , it makes it easier for them to choose the best solution. n In selling to organizations , the situation is complicated because both task and personal motives influence the purchasing decision. n Task motives can be defined as the logical , practical , or functional reasons for buying , they usually involve either money or productivity. Typical financial motives include cost savings or profit increases , productivity motives may focus on increasing output , increasing quality , or reducing effort. n Organizations tend to emphasize different task issues in their culture , so it is important fro salespeople to understand these. n Personal motives : are the individual preferences that spur a person to buy , they are psychological in nature , and involve relationship with other people. Personal motives include the need for respect , approval , power , and recognition.

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

Customer Interaction Personal Motives Respect Power Approval Recognition

INTERACTION Phase: n Questioning : discovering a customer's perceived needs naturally involves asking questions and actively listening to the customer’s responses. n Note in asking questions in away the does not irritate the customer and helps them to better understand their own needs. n Questions may be classified as closed –ended or open-ended. n Closed-ended questions can be answered with a simple yes or no or by selecting from a list of responses. n open-ended questions can not be answered by yes or no , and are used to identify a topic. n In addition to these 2 types , there are other types like: n Permission : (closed-ended ) may l ask you questions about ? n Fact finding : focus on factual information about the business, who is your current supplier of computers ? n Feeling –finding : (open ended) how do you feel about your current inventory levels of computers ? n Checking : “ if I understand you correctly , you have said that you are happy with the quality if your current supplier but feel that you may be able to get the same quality at lower price from another supplier. Is that accurate ? ”

Customer Interaction Needs Discovery: Types of Questions 1. Permission Close-ended 2. Fact-finding Factual information 3. Feeling finding Open-ended questions 4. Checking questions Confirm understanding

INTERACTION Phase: n Advocating skills : n After discovering the customer needs , advocating skills start to work , which refer to the ability to clearly and fully present a solution that customers can see helps to address their needs. n These skill involves 2 steps : n Solution presentation n Addressing customer concerns (questions) regarding the solution being proposed.

INTERACTION Phase: n Solution presentation: to convince customers that the goods and services , which are offered match their requirements and satisfy their needs , in more specific term , it should clear how your product or service will satisfy their task and personal motives or needs. n It is a discussion of a series of a product or services feature connected with benefits that the client has already indicated are important , and followed by evidence that the benefits will in fact be delivered. n Features : Are tangible and intangible characteristics of the product or service. n A benefit : is a statement about how a product or service can help a customer satisfy an explicit or stated need. n The most widely used means of providing evidence to prove problem solving is the use of demonstration which encourage participation and often allow the client to experience the product benefits firsthand.

INTERACTION Phase: n Types of customer relationship : n Presentation skills like the other skills are related to success regardless of the type of relationship being developed. n The next figure lists some general differences between the interaction practices in transactional compared to consultative and enterprise relationships. n written ales proposals : customers want to see what promised on writing , proposal should convey the following 5 quality dimensions : n Reliability : identify solutions to achieve prospect’s needs. n Assurance : builds trust and confidence in your ability to deliver , implement , produce benefits. n Tangibles : enhances and supports your message n Empathy : confirms your understanding of the prospect’s business and needs. n Responsiveness : develops proposal in atimely manner.

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

Customer Interaction Handling Concerns (LSCPA) 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

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. ”

Customer Interaction Closing Techniques IMPORTANCE BY PRODUCT Selling Technique Industrial Consumer Ask for the order in a straightforward manner 1 1 Summary § Summarize the benefits already covered in the presentation 2 2 Single Objection § Asks for the order if last obstacle is overcome 3 4 Assumption § Assume readiness to buy and focus on the transaction details 4 2 Choice § Focus on version to be ordered 5 5 Direct n

INTERACTION Phase: n Closing skills : occurs when salesperson asks for a commitment from the customer. many salespeople find this the most difficult step of the selling process and are very reluctant to close , primarily out of fear of rejection. n Closing is simply asking for a decision when you’re fairly certain a person is going to say yes. n When to close : client is likely to regard asking for the order before he is ready to buy as pushy , so successful salespeople tended to simply let the customer make the decision often through the use of silence. n It is said that most acceptance are made on the fifth closing attempt.

INTERACTION Phase: n Closing techniques : n Many different closing techniques may be used , and salespeople have personal preferences , depending on the circumstances. n Two popular closing techniques are the alternatives choice close and the summary close. n Alternative choice : when the prospect is faced with a variety of colors and models , this method may be effective , the salesperson ask questions to narrow the choice and help the prospects make a final selection. n Summary close : one of the best closes provides a summary of the benefits accepted during the call, combined with an action plan requiring the customer’s commitment.

POST-INTERACTION Phase: n Once a salesperson help the customer make a purchase, attention shifts to the follow –up activities , which refers to all the efforts involved in servicing the sale and building a lasting and growing relationship with the customer. n Ongoing activities : the selling process is really a continuous one , after the immediate post interaction activities are completed , the seller focus shifts from the attraction to the retention and growth.

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

Customer Interaction Sales Support the Buying Decision Manage the implementation Deal with dissatisfaction Enhance the Relationship Figure 5 -8: Servicing the Sale: The Four Pillars of Sales Support

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

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

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

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