Saturday, April 24, 2010

Selling Cycle, Closing, Sales Psychology and Customer Decisions















In sales, only 3% of the available sales people will perform well because of their natural talent. Another 27%, if given the correct tools and support, will turn themselves into the desired 3%ers. Unfortunately, too many companies hire members of the leftover 70% wasting both their time and their money trying to make a sales person out of a passive person.

I usually teach this thing to my marketers and down lines, especially to the new ones, these are a compilation of learning from the sales guru in the internet. Above is an illustration of the selling cycle or process, understanding it would guide them for a better or smoother presentation. The illustration is like of a game of baseball or softball, where there are bases to complete until you score. (Click the image for better viewing, thanks.)


* 1st Base is for the first appointment.


* 2nd Base is when that opportunity becomes a prospect …


* 3rd Base is when the opportunity is totally qualified …


* You present your needs and cost appropriate solution between 3rd and Home.


* Home is when you score.


Most have a big gap between 1st and 3rd base, the areas where the actual selling takes place, that's where development (shown in blue) needs to take place as seen above.


And in the process of qualifying the marketer usually got a hard time to go for the kill or close that is why rather than expounding more of the process I jumped to the best part, the close.



CLOSING THE SALE


Ultimately, every sale comes down to the close - the moment of truth you've been building up to throughout the entire selling process. Is it stressful? Absolutely, because unless you are able to convert qualified leads into sales, all of your efforts to sell your product will have been wasted.


Given what's at stake, it's no wonder that many sales people find closing the deal to be the most uncomfortable and awkward part of their job. But that doesn't necessarily have to be the case. There are a number of things that you can do to reduce the stress and discomfort of the close.


Lay a solid Foundation


The selling process should have a natural flow so that when the time comes to close the deal, no one is taken by surprise. From the very beginning of the relationship the customer needs to understand that your goal is to help them make a decision to buy your product/services/opportunity. As the relationship progresses, your job is to build rapport and provide them with the information they need to make their decision.


Know the signs


As the customer gets nearer to making a decision, she will start to give you signs that the time for the close is approaching. These signs often come in the form of specific questions related to the product or service or of the opportunity that will be delivered after they sign on the dotted line.


For example, if you are selling green barley juice, the customer might ask how it will be taken. If you are offering the opportunity, they might ask whether your company is willing to do the presentation to their members. Never answer these questions with a simple "Yes" or "No" response! Instead, respond with a closing question such as, "Would you like to me to open one bottle to demo the mixing of barley and water?", or "Would you like me to schedule it to the soonest time, tomorrow or this weekend?"


Ask for the sale


You've heard it said before, but the most common reason why people don't buy is that the sales person never asked for the sale. At some point you just have to go for it and ask the customer to make a decision. There are an endless number of techniques to help you do this, but the effective ones have two things in common - they suggest specific terms (e.g. 20boxes free of charge delivery if paid advance in cash) and they demonstrate respect for the customer. People want to know what they are agreeing to, but they also want to be treated like a person and not like a number on a sales report. Do those things above and more often than not you will make the sale.


Be prepared to overcome objections


Despite your best efforts to lay a solid foundation and close the sale, the customer might still have some objections that need to be overcome. Before you are going for the close place yourself in the customer's shoes and ask what lingering objections might still exist? Cost? Timing? Availability?


Be prepared to meet your customer's indecision with a response that reinforces what you have been showing them in the steps leading up to the close and affirms that your product is the right product for them.


As I remind always to my down lines or marketers try “go for the kill”, time, money and effort would have been wasted if you leave without a sale.



BASIC CLOSING TECHNIQUES


You are right: "I can understand your hesitation, the benefits is certainly not exactly what you had in mind. But many of our customers felt the same way, until their friend start earning of the same marketing plan offered. They found that they were paid promptly."


Competitor endorsement: "Mr. Smith, as we discussed earlier, this is really good for diabetics. In fact, your neighbor Mr. Jones purchased one yesterday."


A choice: "Mr. Smith, would you like a box of ULTIMA-C or 2bottles of green Barley?"


Bluff Called: "Mr. Smith, if I can get you 3boxes of product packs of green Barley, would you take it?"


The impending doom: "Mr. Smith, please come and see us after you and your wife talk about the number of slots you will take. But, one of the reasons I wanted to wrap this up today for you is that the price increases tomorrow."


The crowded room: "One of the reasons I wanted to wrap this up today for you is that we only have seven (7) product packs left in inventory."


Logical: "If I can prove to you, without a doubt, that barley and psyllium husk will work, will you give it a try?"


The Challenge: "Mr. Smith, I don't think you will need only the green Barley. Can I show you what’s with ULTIMA-C?"


Value Added: "Mr. Smith, we have developed customer cumulative usage of 28bottles so you won't have to worry about that one-time P6,370."


Kick the Tires: "Mr. Smith, it looks like you are serious about this, but have some doubts. I'll tell you what, buy it and take it home for a couple of days. If I'm wrong, if you aren't satisfied for any reason, bring it back for a full refund."


Pre-Close: "If you buy this colon cleansing package, when do you plan to take it, this Friday or Saturday?"


An assumption: "Mr. Smith, where would you like this delivered?"


Luxury: "Treat yourself to something nice today and give us a try."


Reverse: "Mr. Smith, now that its over, could I ask just one question? Why wouldn't you buy from me?"


"You put your finger on the prospect's eye. So gradually, so gently, he doesn't blink." The prospect finally buys to end uncomfortable feelings caused by the closing techniques.



Reminder… .


Believe it or not, you still have not closed. You will close only when your customer is completely satisfied. What's better than closing on a bank check? How about one of the greatest aspects of industry business: repeat orders?


Use more of a conversational close, not a scripted close. There are some purchasing agents who want to be asked for their order. If they seem to be this type, if they look interested, and if the time is right, why not simply ask for the order?


Sell something that you believe in.


Sell the features and benefits.


Be yourself.


Don’t try to read or outsmart the people that you sell to.


People will respect you for your knowledge in your product, for having integrity, for being honest, and for being yourself. It is these types of people that get the sales, that get great testimonials, and that get further business referrals.



SALES PSYCHOLOGY And CUSTOMER DECISION


In the book of 7 Lies in Network Marketing and particular also on Selling is that “every one is a prospect, that they need your product and service”, I strongly disagree for the same statement, and to prepare or make my marketers elude from disappointments I show them this content, and it works!


Sales psychology and the politics of customer decisions will play an important part in your marketing and sales efforts. As a customer formulates their decision, many of their requirements are unspoken. You will never persuade your customer to talk with you about their psychological pressures which are, in other words, unspoken customer requirements.


Chances are good that the customer is completely unaware of psychological pressures that weigh upon his decision. Most sales people are also unaware. However, psychological pressures will affect a customer's decision just as certainly as a printed specification sheet.


If you are upset about not closing sales, or going crazy trying to build strong customer relationships, consider whether any of the following factors might apply to your particular situation.


Reputation: The customer's personal career reputation is more important than your product performance, price, quality, guarantees, service, and any number of excuses and free lunches.

The old saying is, "You are known by the friends you keep." What is your reputation? If you do not have a reputation, what does it seem like?


Trust: Your customers know that there are better vendors for the job. But you have the business because he knows that you will never get him in trouble with his superiors, their husbands or wives, or take credit for his work.

I have seen companies that will price a bit high to their bureaucratic customers. Then, within reason, they can take a few product returns, rather than push blame back to the ordering engineer.


Habit: Fast schedules and time constraints force customers to fill in the blanks. A customer makes decisions a certain way because it 'feels right' and caused him the least amount of pain in the past. The customer does not consciously know why he makes decisions, behaves or dresses the way he does.


Here is a good example ... ever meet someone who does not deal well with problems after 2:00 pm? Hint: It’s easier to change your presentation time, than it is to change their nature.


Clubs: A customer organization will have a core of 'club members'. Membership in the club speaks of achievement, loyalty, and privilege. One member's decision over-rules any non-member.


Nobodies: Beware of a customer who emulates their superior's authority or style. Others may resent their behavior, and perhaps their recommendations.


Perspective: Sales people think of scientists and say, "Can't I get a simple yes, or no?" Sales people are trained to think positively. Scientists think of sales people and say, "Lacks substance." Scientists are trained to think of all of the angles. Keep a healthy respect for other's perspectives.


Image: Is your customer management material? He will want to highlight his dedication and sense of urgency. For example, he may call a weekend or 5:00am meeting, regardless if the time for such a meeting is logical or required.

Once, on a Friday, a customer asked me to attend a problem solving meeting that he scheduled for 5:00am on Monday. He could have easily scheduled the same meeting for Tuesday at 3:00 pm. I didn't question his time, not even jokingly. I enthusiastically thanked him for the invitation, then purchased a Sunday plane ticket and an extra alarm clock.


Politics: Some in an organization make decisions based only on personal gain. They rule against your idea when the organization may have something to gain by success; but, they personally have nothing to gain from taking the risk.

In their minds, a possible benefit to the organization is only worthwhile when it may result in their personal gain.


Branding: Your first job at a new prospect is to make your name known. Does your prospect remember you? Really? Face it, after a few weeks, some busy executives might forget they talked with you -- or met with you -- entirely.

Find ways to keep in touch with your customers.


Subordinates: You will need help from subordinates. So, don't forget to give them the time and respect that they really deserve. Consider the receptionist who won't let you speak to the manager. How about the quiet laboratory technician who has poor social skills, and can accomplish significant things with your product?

Your customer's high-powered top managers may organize and motivate well, communicate and dress well, but might not fully understand your product. So guess whose opinions they rely on in their final analysis (hint: not yours)?

1 comments:

Unknown said...

Thanks Eric! Very comprehensive approach to getting the sale. Love the analogy of "hitting the home run". Next time I'm making pitch, I'll think of the bases, "Whose on first" ;-)! Thanks again!

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