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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” Personal Selling The Selling Process PREINTERACTION Skills: Setting Objectives Knowledge Management Information Gathering Rehearsal INTERACTION Skills: Relating Need discovery Advocating Closing POSTINTERACTION Skills: Supporting Implementing Dealing with dissatisfaction Enhancing the relationship 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? 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 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? Customer Interaction Pharmaceutical Reps Run the Gauntlet If 100 sales reps call on a physician… 100 85 57 20 8 8 reps speak to physician and are remembered …15 depart office before reaching receptionist’s desk Other reps waiting Restricted access signs …28 drop off samples at receptionist’s desk Physician unavailable …37 drop off samples at samples closet Physician unavailable Harried physician …12 speak to physician but are not remembered later Poor communication Harried physician Message not memorable Customer Interaction Successful Salespeople Research prospect background Less Successful Salespeople Do little background research Use company generated prospect lists Use referrals for prospecting Open by asking questions Use needs-satisfaction type presentation Open with a product statement Focus on customer needs Use standard presentations Let prospect make purchase decision Focus on product benefits Close by focusing on the most important customer objection Figure 5-3: Successful Versus Less Successful Salespeople Customer Interaction Means of Reducing Relationship Anxiety PROPRIETY Show buyer respect; dress appropriately COMPETENCE Know your product/service; third-party references COMMONALITY Common interests, views, acquaintances INTENT Reveal purpose of call, process, and payoff to the buyer Customer Interaction Task Motives PRODUCTIVITY MONEY More Output or Quality Less Cost Less Effort More Profit Customer Interaction Personal Motives Respect Power Approval Recognition 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 Customer Interaction TRANSACTIONAL RELATIONSHIPS CONSULTATIVE AND ENTERPRISE RELATIONSHIPS Practices: Practices: Focuses on closing sales Focuses on customer’s bottom line Limited call planning investment Considers call planning a top priority Spends most contact time telling account about products Spends most contact time attempting to build a problem-solving environment Conducts “product-specific” needs assessment Conducts discovery in the full scope of the account’s operations “Lone wolf” approach to the account Team approach to the account Proposals and presentations based on pricing and product features Proposals and presentations based on profit-impact and on strategic benefits. Sales follow-up is short-term, focused on product delivery 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 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 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 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 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