Chapter 5 - Customer interaction management. This chapter presents the following content: Improving your chances of success, personal selling, customer interaction, pre-call planning, anticipate buyer questions, personal motives,....
Part II SALES FORCE ACTIVITIES Chapter 5: Customer Interaction Management Improving Your Chances of Success Build awareness Get on the short list Demonstrate how your proposal meets company needs Directly address decision maker’s personal needs Be prepared for “buyer remorse” Personal Selling The Selling Process PREINTERACTION Skills: Setting Objectives Knowledge Management Information Gathering Rehearsal INTERACTION Skills: Gaining Access Relating Need discovery Advocating Closing POSTINTERACTION Skills: Supporting Implementing Dealing dissatisfaction Enhancing the relationship Figure 51: The Selling Process and Skills Customer Interaction Pre-Call Planning What I want to accomplish? What 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 they sell and what markets 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 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 52: Some Important Pretransactional Information Successful Salespeople Less Successful Salespeople Research Prospect Background Do Little background research Use referrals for prospecting Use company-generated prospect lists Open by asking questions Open with a product statement Use needs-satisfaction type presentation Use standard presentation Focus on customer needs Focus on product benefits Let prospect make purchase decision Close by focusing on the most important customer objection Figure 53: Successful versus Less Successful Salespeople Customer Interaction Anticipate Buyer Questions Who is your company? What is your record for support and service? What are you selling and what kind of person are you? Who else is using your product? Are they satisfied? How does your solution compare to alternatives? Why I need it? Why I need it now? How much does it cost? Is your price truly competitive? Figure 54: A Client’s Questions 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 Figure 55: Means of Reducing Relationship Anxiety Does not understand our business Inadequate product knowledge Does not respond to our needs Does not listen to our needs Should be more of our advocate 17% 15% 13% 12% 11% Percentage of Customers with complaint Figure 56: Top Five Customer Complaints About Salespeople Customer Interaction Task Motives PRODUCTIVITY Financial 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 Permission Close-ended Fact-finding Factual information Feeling finding Open-ended questions Checking questions Confirm understanding Type of Question Purpose Example Permission A close-ended question asking the other person’s permission to ask questions or probe further into a subject “May I ask you a few questions about your current shipping process?” Fact-Finding A question focusing on factual information about the business, person, or current situation “Who is your current supplier of sutures? Do you have a JIT arrangement with Ethicon in supplying sutures?” Feeling-Finding An open-ended question that tries to uncover feelings about a situation and potential consequences of the situation “How you feel about your current inventory levels in sutures? What effect does this level of inventory have on your operating costs?” Checking A question for checking one's understanding and getting agreement concerning the statement “If I understand you correctly, you have said that you are happy with the quality of your current supplier, but feel that you may be able to get the same quality of service at a lower price from another supplier Is that accurate?” Figure 58: Discovery Process: Types of Questions 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 59: 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 Problemsolve 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 Summary Summarize the benefits already covered in the presentation 2 Single Objection Asks for the order if last obstacle is overcome Assumption Assume readiness to buy and focus on the transaction details Choice Focus on version to be ordered 5 Direct Customer Interaction 31% Most Profitable Return Top 3 Rankings for Growth 63% 87% Quality of service to customers Rated Very Important to Growth 11% 32% 3% 8% 16% 22% 26% 34% 62% 59% 58% 49% Product improvements or extensions Information technology Advertising and sales promotion Development of entirely new product lines Figure 510 : The Role of Customer Service Customer Interaction Sales Support Support the Buying Decision Manage Deal Enhance the with the implementation dissatisfaction Relationship Figure 511: Servicing the Sale: The Four Pillars of Sales Support ... Figure 53: Successful versus Less Successful Salespeople Customer Interaction Anticipate Buyer Questions Who is your company? What is your record for support and service? What are you selling and what kind of person... of our advocate 17% 15% 13% 12% 11% Percentage of Customers with complaint Figure 56: Top Five? ?Customer? ?Complaints About Salespeople Customer Interaction Task Motives PRODUCTIVITY Financial More... Figure 58: Discovery Process: Types of Questions Customer Interaction TRANSACTIONAL RELATIONSHIPS CONSULTATIVE AND ENTERPRISE RELATIONSHIPS Practices: Practices: Focuses on closing sales Focuses on customer? ??s bottom line