Chapter 5 Adaptive Selling for Relationship Building

Learning Objectives What is adaptive selling? Why is it important for salespeople to practice adaptive selling? What kind of knowledge do salespeople need to practice adaptive selling? How can salespeople acquire this knowledge? How can salespeople adapt their sales strategies, presentations, and social styles to various situations?

Standard Memorized Presentation Completely memorized sales talk Presents same selling points to all the customers Provides complete and accurate information Limited effectiveness No opportunity for the salesperson to tailor the presentation

Outlined Presentation Prearranged presentation that includes: Standard introduction Standard answers to common objections Standard method for getting the customer to place an order Effective because it is well organized

Customized Presentation Based on a detailed analysis of the customer’s needs Use the communication principles to: Discover the customer’s needs and problems Propose the most effective solution Adapts to customer needs

Exhibit 5.1 - Example of an Outlined Presentation

Adaptive Selling Changing sale behavior according the selling situation Illustrated by customized presentation Emphasizes the importance of satisfying customer needs Being adaptable: Increases buyer trust and commitment Results in higher sales performance

Knowledge Required for Adaptive Selling Product and company knowledge Information about products, services, company, and competitors Knowledge about sales situations and customers Categories of customer types or types of sales situations are developed to: Reduce the complexity of selling Free up the mental capacity to think more creatively

How to Create Knowledge In-depth interviews with top performers Feedback from sales managers Performance feedback: Provides information about whether the salesperson achieved his or her goal Diagnostic feedback: Provides information about what the salesperson is doing right and wrong instead of just whether he or she made a sale

Sources of Knowledge Web Company sales manuals and newsletters Sale meetings Plant visits Business and trade publications Competitor displays at trade shows Viewing competitor’s Web pages

Retrieving Knowledge from the Knowledge Management System Accessing information from the salesperson’s memory Customer relationship management systems and knowledge management software Have a positive impact on being adaptive while selling Genius management - Tapping knowledge from genius within a firm Social computing tools are important

Retrieving Knowledge from the Knowledge Management System Progressive firms encourage in-house experts to develop in-house blogs Social networking sites can be used to connect in-house experts with salespeople Tagging - Including key words with a person’s name in company documents and on internal Web pages

Social Style Matrix Training program used to help sales people adapt their communication styles David Merrill and Roger Reid - Patterns of communication behaviors, or social styles People who recognize and adjust to the behavior patterns have better relationships with other people Style flexing: Adjusting your behavior to mirror or match your customer’s social style

Dimensions of Social Styles Assertiveness: Degree to which people have opinions about issues and publicly make their positions clear to others Responsiveness: Based on how emotional people tend to get in social situations

Exhibit 5.2 - Indicators of Assertiveness

Exhibit 5.3 - Indicators of Responsiveness

Exhibit 5.4 - Social Style Matrix

Drivers Have a great desire to get ahead in their companies and careers Swift and efficient decision makers Base their decisions on facts Take risks Look at several alternatives before making a decision

Expressives Focus on the future Direct their time and effort toward achieving their vision Act quickly Take risks Base their decisions on their personal opinions and the opinions of others Impatient and change their minds easily

Amiables Give importance to close relationships and cooperation Make decisions slowly Build a consensus among people involved in the decision Avoid risks Change their opinions reluctantly

Analyticals Suspicious of power and personal relationships Make decisions slowly in a deliberate and disciplined manner Like facts, principles, and logic Strongly motivated to make the right decision

Selling to Various Social Styles Direct, businesslike, organized presentation with quick action and follow-up Emphasize the effects of a purchase decision on profits Drivers Demonstrate how a product will help to achieve personal status and recognition Use product demonstrations and creative graphics Use testimonials from well-known firms and people Put them in the role of innovator, the first person to use a new product Expressives

Identifying Customer’s Social Styles Build personal relationships Give guarantees about a product’s performance Follow through on commitments Stress the product’s benefits in terms of its effects on the satisfaction of employees Amiables Use solid, tangible evidence Use sales presentations that recognize their technical expertise and emphasize long-term benefits Analyticals

Identifying Customer’s Social Styles Concentrate on the customer’s behavior and disregard how you feel about the behavior Avoid assuming that specific jobs or functions are associated with a social style Create, join, and participate in social media groups to learn more about the social style of the buyer

Exhibit 5.5 - Cues for Recognizing Social Styles

Social Styles and Sales Presentations Self-assessments mislead No single best social style for a salesperson Recognize the customer’s needs and expectations

Exhibit 5.7 - Customer Expectations Based on Social Styles

Exhibit 5.8 - Adjusting Social Styles

Versatility Increasing the productivity of a relationship by adjusting to the needs of the other party

Dimensions in Other Classification Schemes Warm–Hostile Dominant–Submissive Dominance Sociability Relater Socializer Thinker Director Logical (yellow) Emotional (blue) Conceptual(orange) Analytical (green) Skeptics Charismatics Thinkers Followers Controllers Hawk Owl Dove Peacock

Systems for Developing Adaptive Selling Skills Should use different presentations with different customers Based on types of customers and cultures Applying the classification rules rigidly reduces the adaptive selling behavior