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Sales Exam 3
Terms in this set (79)
what is prospecting and why do salespeople do it?
-identifying potential customers that meets the qualification criteria established by your company
-increases number of people who board the Ferris wheel
-improve quality of prospects
-shorten sales cycle by determining which prospects are "qualified"
what is customer attrition and what are some causes?
-loss of customers
-new buyer buys from another source
-acquisition and mergers
-relationship between customer and salesperson deteriorates
-death of customer
why did we talk about a Ferris wheel in a sales class?
-aimed at supplying an ongoing list of prospects
-illustrates the relationship between prospecting and loss of customers due to attrition
what does it mean to be a qualified buyer?
-does the prospect need the product?
-does the prospect have the authority to buy the product?
-does the prospect have the financial resources to buy the product?
-does the prospect have the willingness to buy the product?
be able to identify all of the sources of prospects we talked about (focus on ones we spent more time on in class)
-referrals and centers of influence *
-trade shows & events
-computerized databases *
-cold calling *
-in-house databases- your firm's existing databases
-list sources- database you purchase outside firm
-not all databases are equal, some have greater pull
-making and profiting from personal connections
what are some effective ways to network?
-meet as many people as you can
-tell them what you do
-do not do business while networking
-offer business card
-edit contacts/conduct follow-ups
what do some salespeople have to spend time cold-calling?
-important for new salespeople
-fewer referrals, fewer established customers
-way to introduce yourself/your company
-prelude to in-person appointment
-should be strategically planned
what are the different types of referrals that may provide a source of prospects?
-prospect recommended by satisfied customer
-endless chain- at close of presentation, ask who else could benefit from product
-centers of influence- person who does not make decision but has influence in those who do (opinion leaders, market mavens)
-type of referral
-at end of presentation, ask who else could benefit from the product
centers of influence
-type of referral
-person who doesn't make decision but has influence in those who do
what information do salespeople use to forecast?
how do they collect, store, manage and access this customer information?
-CRM (customer relationship management) software
be able to describe the two models we discussed for prospect management
what is the presentation so crucial in a sales call?
-adds sensory appeal
-stimulates attention, interest and desire
-improves communication and retention
-opportunity to give solution
what is a proof device and how is it used?
-your presentation- the most convincing proof
-product itself- often best selling aid
-plant tours- nitty gritty info
-photos, illustrations, and brochures
-articles- provide credibility
-catalogs- product specs
-graphs, charts, and test results
-websites, laptops and software
informative presentation strategy
-emphasize facts- rational appeal
-used to introduce new products/services
-stress clarity, simplicity and directness
-less is more- beware of information overload
-transition from information conveyer to trusted advisor
persuasive presentation strategy
-not manipulation, influence attitudes and beliefs
-encourage actions and reactions
-use nostalgia, inspiration, showmanship
-subtle transition from rational to emotional appeal
reminder resentation strategy
-helps maintain product awareness
-good when working with repeat customers
-also known as "reinforcement presentation"
creating a demonstration worksheet
-feature to be demonstrated
-proof device to be used
-what will I say (include benefit)
-what I or the customer will do
telling, showing and involvement
-never tell what you can show
-appeal to as many senses as you can
-use humor if applicable
covering one idea at a time
-make sure customer understands each point before moving on (pacing)
-ask check in questions
-summarize your major points
-KISS (Keep It Simple and Straightforward)
-ask summary-confirmation questions
customizing the presentation
-tailor the presentation to the needs/problems mutually identified by prospect and salesperson
-make it personal
-do not over-structure
proof devices and the value proposition
-drive home the key benefits and how they meet customer needs
-how are you better/different?
-only say what you can deliver
technology issues and sales tools
-ensure audio/video, computer tools/files are in working order
-be prepared for technology snags
-have a backup or a backup plan
quantifying the solution
-cost-benefit analysis, ROI, opportunity cost
-contribution margin of your product
why the setting is important
-location makes a difference
-neutral ground, like hotel/conference center, firm's conference room
-check out meeting room in advance
how do we define negotiation in sales? how do we conduct the negotiation session?
-working to reach an agreement that is satisfactory to both buyer seller
-resolving concerns that prevent buying
-ability to negotiate concerns is an effective way to create value
-is a process, not a once-and-done
-not an "us versus them" process
-trust + rapport = negotiation becomes a partnership
what is the goal of the negotiations process?
maintain long-term relationship
what is the difference between a disagreement and a misunderstanding? which is easier to rectify?
how can you plan for negotiations?
-understand value of what you are offering
-determine goals and financial objectives
-use a negotiation worksheet
what are 5 common types of buyer concerns, what the reasons buyers typically have them and how do salespeople overcome or handle them?
-need for the product
-source of the product
direct denial (buyer concerns)
-refute the opinion/belief of a prospect
-high-risk method of negotiating buyer concerns
-use a win-win approach, be firm and sincere, don't be offensive
indirect denial (buyer concerns)
-when the prospect's concern is completely valid or at least accurate to a large degree
-acknowledge that the prospect is correct
-method is widely used
feel-felt-found (indirect denial)
"I understand how you FEEL. Many of my customers FELT the same way until they started using the product and FOUND it quick beneficial"
questions (buyer concerns)
-convert problem into need-satisfaction question
superior benefit (buyer concerns)
-focus on superior benefit that outweighs that concern
trial offer (buyer concerns)
-prospect tries product without purchase commitment
third-party testimony (buyer concerns)
-almost never triggers an argument from the client
what are some of the strategies used by trained buyers with regard to pricing? how would you respond and negotiate these concerns? what is a priceberg?
budget limitation tactic
-take it seriously and try appropriate negotiation strategies
-can try unbundling and reconfiguring (reduce price by eliminating some items)
-review the added value, then try to close again
-"If you cut your price by 20%, then we can talk"
"sell low now, make profits later" tactic
-"reduce your price this once and I'll come back to you in the future"
what is the number one reason salespeople don't ask for the close?
why are buyers sometimes anxious or reluctant when it comes to a new purchase?
-loss of options
-fear of making a mistake (commitment issues)
-social or peer pressures
when delivering the value proposition, how should the salesperson think about the value he or she is providing? from who's point of view?
-the beginning of a partnership
what are the guidelines for closing the sale and why do we follow them?
-focus on dominant buying motives (which benefit interests buyer the most?)
-achieve incremental commitment with big sales (already committed to a second meeting)
-negotiate tough points before close (what is your products weakness?)
-avoid surprises at close ("did I mentions we have a $1 zillion installation fee?")
-ask for order more than once (buyers often say no no no no... ok)
be able to identify verbal clues that indicate the buyer is interested and the salesperson should transition the close (specifically remember questions, recognitions and requirements)
-questions- "do you provide a warranty?"
-recognitions- "we have been looking for a faster version," positive statement about your product
-requirements- "we would need this up and running by Christmas"
be able to identify nonverbal clues that indicate you should move to the close
-examining product/sales literature intently
-closing attempt made at an opportune time during the sales presentation to encourage the customer to reveal readiness or unwillingness to buy
-all about reading cues/timing
-use if a particular benefit really strikes interest
-don't be too aggressive
direct appeal close
-ask for the order in a straightforward manner
-trial close is about being opportunistic, direct appeal is the natural next step after
-gain prospect's respect and interest
-shouldn't be used until prospect has displayed a definite interest in the product or service
-comes near the end of the presentation when it is obvious that the customer has decided to buy
special concession close
-extra incentive for acting now
-"if you sign today, I'll give you X"
-can lose credibility or cause buyer skepticism especially if this comes after the salesperson has made what seems to be a final offer
summary of benefits close
-concise, straightforward summary of benefits
-gives you the opportunity to restate how the benefits will outweigh the costs
multiple options close
-allow the person to examine several different options and try to assess the degree of interest in each one
-to pull off a multiple option close:
-configure more than one product solution
-present several options to customer
-remove less-appealing options
-stop when ample selection presented
balance sheet close
-sometimes needed if there is a ton of info or indecisive buyer
-outline reasons to buy and not to buy
-engage customer in this process
-involves senior executives or sales manager
-makes prospect feel important
-effective for major accounts
what are things to avoid doing when the prospect says "no"?
can anything good come from a lost sale?
why do we have a confirmation step in the closing segment?
-confirm sale and partnership
-reassure customer of a good decision
-reduce buyer's remorse
what is customer service and when does it take place?
-anything that enhances customer satisfaction
-takes place before, during and after the sale
why has customer service become so important recently?
-customers are one firm 'asset' that appreciates over time
-first sale is just the beginning
-firms want successive sales
-customers have 'great expectations'
-customer attrition is costly
why do customers leave firms?
-50-70% poor service
what is negative WOM?
-negative word of mouth
-when people tell others about a negative service/product
-WOM is highly effective
are customer complaints a good thing or a bad thing? why?
-good if they're making them to you- they aren't telling someone else
with regard to servicing the sale, how can a salesperson follow-through and follow-up? what are the benefits of each? what are effective ways to implement both strategies?
-follow-through- make credit arrangements, schedule deliveries, hold the reservation
-follow-up- personal visit, telephone call, email letter, value reinforcement; shows the customer you appreciate the purchase, enhances the relationship you just established, lets you determine if the customer is satisfied, allows customer to voice concerns to just you
identify the 3 types of expansion selling and know the difference between them: upselling, cross-selling and full-line selling
-suggest related products/services to customer
-only AFTER primary need is satisfied
-if appropriate, demonstrate the connection
-should be thoughtful, complementary suggestions
-selling products not directly associated to those already sold to established customer
-buyers often like single-source convenience
-most effective when salesperson/customer enjoy true partnership
-survey/probing questions can help cross-selling strategies
-effort to sell better-quality products
-describe why it's in the customer's best interest to "spend just a little bit more"
-must be a trusted relationship and qualified buyer
-customers want the right purchase over the least expensive
who should be included in the creation of a solution to a post-sale problem?
-use the collective intelligence of the organization
-the more people involved, the better the solution will be
how do salespeople divvy up their time?
what are some proven effective ways to manage time?
how do salespeople decide on scheduling within their territory?
-map out territory- chunk into smaller zones
-develop a route and specific time frame
-use the 80/20 rule- spend 80% of time calling on most productive customers and 20% on smaller accounts/prospects
what are some typcial types of records and paperwork salespeople must juggle?
-customer and prospect files
what is stress and how can salespeople minimize it?
-an external stimulus (a stressor) and the physical and emotional responses to that stimulus
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