Download Chapter 5

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