CHAPTER
3
SALES
TECHNIQUES IN PRACTICAL APPLICATION
In
this chapter, we will begin to look at some of the basic proven
sales techniques used by sales professionals the world over.
It is important to emphasize that like sales principles described
in the previous chapter, these techniques have proven themselves
to work time and time again.
THE PRESENTATION
PHASE
ONE: THE WARM-UP
Selling
or persuading individuals to your way of thinking brings with
it certain responsibilities on your part. The first will be
to put your prospective customer at ease. When people are
at ease, they make more, and better, decisions. No one wants
to be in a situation where they feel pressured into anything.
It will be your job to set aside any nervousness on your part
and concentrate on making them feel more comfortable.
People
will generally feel comfortable when you build a rapport with
them. A rapport is establishing a common ground. Something
you both can relate to. The more unique the similarity the
better. Bringing out the similarities between you and your
prospects will help to build trust. You have a family. He
has a family. You have a job. He has a job.
You
both have similar values and both need products and services.
You just happen to be a better expert on that particular product
or service you represent. A typical warm-up phase might go
something like this. You are offering your services as a Web
Site Consultant to a local car dealership. You enter and immediately
find out who is the owner or manager. Anyone who can make
a decision. The consultant identifies the owner and asks for
an introduction from one of the staff.
CONSULTANT:
Hi, my name is Mike Barns. I'm with ABC Company. We are a
__________________ firm. I was wondering if you had a few
minutes to talk. (Let's use "Web Consulting" as
your firm/job to illustrate this example.)
OWNER:
Just a few. What can I do for you?
CONSULTANT: Is there somewhere we could go
that's a little more quiet?
OWNER: I guess we could go into my office.
The office is nicely furnished, a few golf trophies line a
shelf. A few photographs are nicely framed on his desk of
his family, a wife and three kids. The wall is filled with
photographs of deep sea expeditions. Below is a typical warm-up
phase in practical application.
OWNER: So, what are you here to sell me?
CONSULTANT: Is that a marlin?
OWNER: Sure is. One hundred and ten pounds.
CONSULTANT: Was that a record?
OWNER: Not on that trip. But it was close.
Do you fish?
CONSULTANT: Yes, as a matter of fact, I do.
OWNER: Freshwater or deep sea.
CONSULTANT: Deep sea.
OWNER: Have you fished off the coast of Santa
Barbara?
CONSULTANT: No, I haven't fished at all lately.
Can't seem to find the time. Not with a wife and four kids.
OWNER: I know what you mean?
CONSULTANT: I play tennis and golf, though.
Less of a time commitment.
OWNER: Have you played Green Lakes?
CONSULTANT: Yes I have. Their greens fees
have gone up a lot lately, though.
OWNER: I know. Personally, I like the public
courses better.
CONSULTANT: I agree.
OWNER: Would you like some coffee?
This
warm-up phase could go on for an hour. Typically, it should
be about one third of your total presentation time. Let's
examine some key elements in the warm-up. First, the consultant
made certain not to pitch his presentation to just anyone.
He was determined to make the presentation to the individual
who had the power to make the decision to buy. Once that was
established, he made a simple introduction and was able to
gain entrance to an environment with no distractions, the
office. Making presentations in noisy distracting environments
are often difficult and counter productive.
Once
inside the office, the consultant was observant of the surroundings.
Particularly, photographs. In the warm-up phase, you are gathering
information on the prospective client that you will either
use now or later in the presentation.
Although
the owner initially wanted to cut right to the chase, the
consultant redirected the conversation to a common interest,
deep sea fishing. They explored golf together, and a little
about family since they are both family men. At first, the
owner had little time to talk. A few minutes later, he's offering
coffee. In the warm-up phase, you want to talk about anything
but business. The longer the warm-up phase, the more likely
you are going to close a sale. This is where trust is gained
between you and the prospective customer. It's important to
always remember, people only buy from people they trust. In
consultative sales, you are not just building a business you
are building long-term relationships.
PHASE
TWO: ESTABLISH THE CUSTOMER'S NEEDS
After
a brief introduction of what your firm does, you begin a check
list of features the customer has now.
CONSULTANT:
How do you do your advertising right now?
OWNER: Newspaper.
CONSULTANT: What kind of budget do you have
for that?
OWNER: About three thousand a month.
CONSULTANT: Do you use any other media sources?
OWNER: No, not really.
CONSULTANT: Have you looked into other providers?
OWNER: Yes, a little bit. Only by phone.
CONSULTANT: What is it that you like about
print ads that attracted you all these years.
OWNER: Well T.V. and radio were just too
expensive.
CONSULTANT: What would you like to change
or alter in your present means of advertising?
OWNER: I'd like to do more of it.
CONSULTANT: Why don't you?
OWNER: Too expensive and business is slow
right now. Print ads are reliable.
CONSULTANT: If I could show you a way to
reach more people without paying more money, and, in fact
possibly for less money, would you be interested?
OWNER: Of course!
CONSULTANT: (explains the features and advantages
of Web sites) In this phase, we have established four things:
WHAT
DOES HE HAVE NOW?
This is important because it gives you a good idea of what
he is willing to spend and what kind of company he has.
WHAT
IS IT THAT HE ENJOYS ABOUT WHAT HE HAS NOW?
You ask this question because it helps you to learn how receptive
he is to change.
WHAT
WOULD HE ALTER ABOUT WHAT HE HAS RIGHT NOW?
Change is always difficult. Usually an individual is receptive
to change if you can show him more satisfaction, more benefit,
more comfort. That urge to improve one's present condition
is why you ask this question.
WHO WILL
ULTIMATELY BE MAKING THE DECISION ON THE SALE?
Although we attempted to get to the individual empowered
to make that decision, sometimes a partner or a spouse will
become involved in the decision-making process. Never assume
anything about your customers.
PHASE
THREE: QUALIFYING
Does
the prospective customer really need the product or service
that I am offering and is it within their power to get it?
That's what qualifying is. It would serve no useful purpose
for you to go into a complete sales presentation to a
company that is going out of business next week, would it?
Or to spend three hours with a business that can't even afford
to small newspaper ad? Proper qualifying of the prospective
customer may save you countless hours of frustration.
Let's
get back to our car dealership scenario. The owner has expressed
interest in your proposal. In certain respects, you have
already qualified him. He already has an advertising budget
in place, but would like to increase his advertising without
paying more for it. He has a need and ability.
PHASE
FOUR: OFFERING SOLUTIONS TO PROBLEMS BY ESTABLISHING VALUE
In
reality, we are selling solutions to people's problems. Then
demonstrating the value of our solutions which will be our
product or service. Occasionally, these problems may not be
easily identified. Either the prospective customer is unaware
of them, or just plain ignoring them. In either case, it will
be our responsibility to find those problems and offer viable
solutions through our products and services. This will establish
value for the customer.
In
our dealership scenario, we have identified a problem. The
owner would like to increase advertising without spending
more money. The consultant (YOU) offers a solution.
CONSULTANT:
By creating your own Web Site, with proper linking,
you will be able to reach far more people, and probably for
less money than you are spending now. In addition, we can
offer..
Here,
we have built value for our services with the prospective
customer. The problems that existed needed a little coaxing
to get them out, but eventually we identified them. Sometimes
a prospective customer will not be as open with their problems
or how we can be of value to them.
Here
is one such story. It is a story of a young man who wanted
a job at Macy's department store. He presented himself to
the personnel director who was cordial, but was told that
no jobs were going to be available. Persistent, the young
man refused to take no for an answer. He spent the next couple
of hours browsing through the store making a list of problems
with recommendations for improvement. He phoned the personnel
director who had turned him down before. After presenting
his proposal, he was immediately asked to return and finally
got his job at Macy's.
PHASE
FIVE: DEALING WITH OBJECTIONS
Many
times all the logic and common sense in the world will dictate
a certain sale. That's when objections set in. Objections
will take on many forms. Below, you will find a system to
deal with them.
FIRST:
HEAR THEM OUT
Too often salespeople leap on an objection before a customer
has a chance to get it all out. We make the mistake of thinking
that we cut off the objection quickly or we won't make the
sale. A prospect needs to have his objection heard.
SECOND:
FEED THE OBJECTION BACK
This is one of the best techniques for getting them to answer
their own objection. Sales pros have told stories of how a
husband and wife argued back and forth as they watched the
wife close the deal.
THIRD:
QUESTION THE OBJECTION
Ask them to elaborate on their objection. If you really get
them detailed on their objection, they will feel a strong
need to remove it themselves. Even if that does not work,
while the prospect expounds on the objection you have more
time to consider another course.
FOURTH:
ANSWER THE OBJECTION
Here is where sound logic and common sense takes over. If
you have properly qualified them, you know they have a need
and an ability to solve it. Try taking the objection apart
and work at overcoming it piece by piece.
FIFTH:
CONFIRM THE ANSWER
Never reply to the objection and leave it hanging. They may
not have understood you. Once you feel you have properly dealt
with the objection, ask tie down questions.
TIE
DOWNS
That
clarifies this point, don't you agree? That's the answer you're
looking for, isn't it? With that question out of the way,
we can go ahead don't you think? Don't you agree with me that
we have covered the question you raised, and given you a way
to handle it? Now let's go back to the dealership. The consultant
has just delivered a great pitch offering a solution with
implied value. Since the owner is still reluctant, the Consultant
resorts to a typical trial close.
OWNER:
I don't know. It all sounds good, almost too good.
CONSULTANT: What seems to be your concern?
OWNER: Well, I feel comfortable with print
ads. They're reliable. I don't know.
CONSULTANT: You wanted to increase your advertising,
right?
OWNER: Of course.
CONSULTANT: Reach more people, right?
OWNER: Yes.
CONSULTANT: A web site will do that for you,
won't it?
OWNER: Yes, that's what you said.
CONSULTANT: And it won't cost you more money,
right?
OWNER: No, I guess not.
CONSULTANT: So you really have a good value
here don't you?'
OWNER: Sounds like it.
CONSULTANT: Now that's settled entirely,
isn't it? (tie down question)
PHASE
SIX: CLOSING
There
are perhaps hundreds of different closing techniques available
to the sales professional. That is where you pick up the expansion
of your product knowledge. In this section, we will examine
what closing is and how to do it. It never ceases to amaze
me, how many salesmen there are that don't even know what
a close is.
Often, I will
hear one of my students attempt a close by saying:
"Well, what
do you think?"
Then if this
doesn't work, he goes to
"Well, what
do you say, can I put you down for one?" That's not closing.
PRINCIPLES
OF CLOSING
The
secret to successful closing starts with attitude! Remember
the Power of Belief principles from your training manual?
When you are closing a sale, act as if you already have it.
A done deal! Your attitude will mean the difference between
losing and closing a sale. When it comes time to ask for the
sale, expect the prospect to start writing the check.
IT IS
YOUR OBLIGATION TO ALWAYS ASK FOR THE SALE
Many
years ago, a Detroit newspaper carried a story about a rather
large insurance policy taken out by Henry Ford. A close friend
of Mr. Ford, who was in the insurance business was quite upset
and asked Mr. Ford why he did not buy the policy from him.
Mr. Ford's answer is a lesson to everybody who sells anything.
He said, "You didn't ask me."
ALWAYS
KEEP IN MIND,
THAT WE WILL MISS 100% OF THE SALES WE DON'T ASK FOR
There are three
principles that will affect your attitude when closing sales.
They are:
1. Always have the prospect's best interest in mind.
2. Always believe in the product you are selling.
3. Always believe that the people are better off after the
sale is made.
To
be an effective closer, you must believe that you are offering
a solution to their problem. If you lower your head and sheepishly,
almost apologetically, ask for the sale, you are doomed to
failure. If the prospect says to you, "Are you trying
to sell me something here?" Don't lower your head almost
apologetically and say, "Oh no, no. Of course I'm
not."
Of
course, you are! You're not a professional visitor! You're
the right person with the right product at the right time.
This is a win-win situation for both of you. That's the right
closing attitude!
CLOSING
TECHNIQUES
There
are any number of different closing techniques available to
the sales professional. To list them all would be beyond the
scope of this book. However, we will attempt to review a few
of the most popular. Once you have the proper attitude everything
else falls into place.
1.
Understand their needs and wants. Remember, people buy on
emotion. Qualify them and understand their motives.
2. Learn to recognize buying signals. If
they ask more questions, it is usually because they are considering
accepting your offer and just need more information. A smile
will also be an important buying signal. People want to say
yes. They know that if they say no the relationship with you
is over.
3. You decide for them that it is in their
best interest to buy your product or service.
4. You have asked all the right questions
and have led them to the close. Now start writing the order.
You will be amazed at how often it will be this easy. If they
don't stop you, they've bought.
5. Ask for the check. Don't do it sheepishly
with your head lowered. Do it authoritatively with confidence.
Look the prospect straight in the eyes and say:
"Now I need you to write me a check for..."
It's that simple.
It's also equally important that once the sale has been made,
you do not change your demeanor or manner in any way.
6. This is the cool down phase. When the
prospect writes the check and sets it in front of you, don't
pick it up! Have a cool drink, relax a few minutes with him.
Then, and only then, when you are ready to leave, pick up
the check. Let the prospect know that this is not the end
of your relationship. This is the beginning. Once you have
taken the prospect through steps one through five and an objection
arises, use one of these closing techniques then go to step
six for the cool down.
CREATE
A SENSE OF URGENCY CLOSE
This
is the must act now mentality. If they don't act now they
will lose something. You decide what that something is. Perhaps
the cost will go up soon. This offer is for a limited time
only. We only offer so many franchises. The time to act is
now, or you'll be left behind. Remember the principles from
the training manual? One principle all successful men have
in common is that they have a do it now mentality.
EMPATHY
CLOSE CLOSE
Some people call this the feel,
felt, found close. This technique is excellent for prospects
with very specific objections. Here's how it works.
The
prospect tells you his objection. You respond:
I know exactly how you feel. I felt the same way, but
I found that once I made the decision (whatever the objection)
I was relieved.
You
will find that this approach works well with almost any objection
you will come across.
TRIAL
OR CLOSE
In
a traditional trial close, you almost ignore the objection.
Instead, you focus on what problems existed with the prospect
before, and what the specific solutions are now. You phrase
it in such a way that you are acting like you already have
it. Then to the right, you list how your product or service
solves it. It is equally important to get the prospect to
say it.
If you say it,
it's opinion. If the prospect says it, it's a fact.
AN EXAMPLE WOULD
BE AS FOLLOWS:
| Problem |
Solution |
| 1. Need a presence
on the Internet that is affordable. |
1. We are building you a
website within your budget. |
| 2. Need to increase
traffic to the service. |
2. We are going to offer
a site to drive traffic there. |
| 3. Need to monitor your
hits online. |
3. We will install counters
and a statistics program to monitor the service. |
In a typical
trial close, you want the prospect to say it.
A scenario might
be as follows:
CONSULTANT: You wanted a web site, right?
PROSPECT: Yes, I did.
CONSULTANT: I offered you a way to build
one, right?
PROSPECT: Yes, you did.
CONSULTANT: I offered to do it within your
budget didn't I?
PROSPECT: Yes, you did.
CONSULTANT: You wanted a method to get more
traffic to your site, didn't you?
PROSPECT: Yes.
CONSULTANT: And I showed you how I'm going
to do that, didn't I?
PROSPECT: Yes, you did.
CONSULTANT: You wanted a way to monitor how
successful we are at that, right?
PROSPECT: That's right. (go to tie down to
close)
CONSULTANT: Aren't you happy to know that
I'm taking care of all of this?
PROSPECT: Yes, I'm very glad.
CONSULTANT: Great, now I need you to write
me a check.
TIE
DOWN PHRASES
That clarifies
this point, don't you agree?
That's the answer you're looking for, isn't it?
With that question out of the way, we can go forward, don't
you think?
Don't you agree with me that we have covered the question
you raised, and given you a way to handle it?
Now that's settled entirely, isn't it?
That solves your problem with _______________, doesn't it?
TRIAL
CLOSE PHRASES
Does it make
sense to..
Don't you agree...
Isn't it about time that..
Doesn't it give you confidence to know...
Don't you feel that...
Can you see the advantage of. ..
Isn't it true that...
Wouldn't it be reassuring to ...
Aren't you really excited about...
Won't it be gratifying when...
Wouldn't you be happy to find...
Aren't you happy to know...
Can you see the benefit of. ..
Isn't it worth considering...
This is something you want, isn't it...
Did you like the fact that...
RULES
TO REMEMBER WHEN CLOSING
• Remember that
people want to say YES.
• Don't give them a reason to say N0.
• We lose 100% of the sales we don't ask for.
• When you ask a closing question, be QUIET. The one who speaks
first, loses.
• When you ask for the
check, look the prospect straight in the eyes and be bold.
When you lower your head and ask sheepishly, you risk losing
the sale.
RESEARCH
HAS SHOWN THAT BEFORE QUITTING:
46%
of salespeople asked once for the sale.
24% of salespeople asked twice.
14% of salespeople asked a third time.
12% of salespeople asked a fourth time.
That means that 96% of all salespeople quit after four closing
attempts. The same research shows that 60% of all sales are
made after the fifth attempt.
This means that 4% of the salespeople are making 60% of the
sales!
Remember! In order to get the sale, you must ask for it!
WORDS
Words that create
problems and words that get you out
| Instead Of Saying: |
Better To Say: |
| Contract |
Paperwork, agreement, form |
| Cost or price |
Investment amount |
| Down payment |
Initial investment or initial
amount |
| Monthly payment |
Monthly investment or monthly
amount |
| Sell or sold |
Get them involved or help
them acquire |
| Buy |
Own |
| Objection |
Area of concern |
| Problem |
Challenge |
| Commission |
Fee or service |
| Sign/Approve |
Endorse, ok or authorize |
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Training and Tips - 5
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