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 PRE- INTERACTION INTERACTION POST-INTERACTION Skills: Setting Objectives Knowledge Management Information Gathering Rehearsal Relating Need discovery Advocating Closing Supporting Implementing Dealing with dissatisfaction Enhancing the relationship 1

Customer Interaction Pre-Call Planning What do I want to accomplish? What do 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 do they sell and what markets do 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 do 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 5-2: Some Important Pre-transactional Information

Customer Interaction Anticipate Buyer Questions What are you selling? Why do I need it? Who is your company? How much will it cost? Who else is using it? Are they satisfied? What kind of person are you? How does your solution compare to alternatives? Is price competitive? Why do I need it now? Your record for support & service? 8

Pharmaceutical Reps Run the Gauntlet Customer Interaction Pharmaceutical Reps Run the Gauntlet If 100 sales reps call on a physician… 100 85 57 20 8 8 reps speak to physician and are remembered …15 depart office before reaching receptionist’s desk …28 drop off samples at receptionist’s desk …37 drop off samples at samples closet …12 speak to physician but are not remembered later Other reps waiting Restricted access signs Physician unavailable Harried physician Poor communication Message not memorable

Customer Interaction Successful Salespeople Research prospect background Use referrals for prospecting Open by asking questions Use needs-satisfaction type presentation Focus on customer needs Let prospect make purchase decision Less Successful Salespeople Do little background research Use company generated prospect lists Open with a product statement Use standard presentations Focus on product benefits Close by focusing on the most important customer objection Figure 5-3: Successful Versus Less Successful Salespeople

Means of Reducing Relationship Anxiety 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

Customer Interaction Task Motives More Output or Quality Less Cost PRODUCTIVITY MONEY More Output or Quality Less Cost Less Effort More Profit 1

Customer Interaction Personal Motives Respect Power Approval Recognition 11

Customer Interaction Needs Discovery: Types of Questions Permission Close-ended Fact-finding Factual information Feeling finding Open-ended questions Checking questions Confirm understanding 12

Customer Interaction TRANSACTIONAL RELATIONSHIPS CONSULTATIVE AND ENTERPRISE RELATIONSHIPS Practices: Focuses on closing sales Limited call planning investment Spends most contact time telling account about products Conducts “product-specific” needs assessment “Lone wolf” approach to the account Proposals and presentations based on pricing and product features Sales follow-up is short-term, focused on product delivery Focuses on customer’s bottom line Considers call planning a top priority Spends most contact time attempting to build a problem-solving environment Conducts discovery in the full scope of the account’s operations Team approach to the account Proposals and presentations based on profit-impact and on strategic benefits. Sales follow-up is long-term, focused on long-term relationship enhancement Figure 5-6: Key Differences in Practices Between Relationships

Customer Interaction Sales Proposals – General Format Problem Analysis Solution Product Specifications Cost-benefit Analysis Contract 14

Customer Interaction Handling Concerns Listen to the buyers feelings Share concerns without judgment Clarify real issue with questions Problem-solve present options and solutions Ask for ACTION to determine commitment 15

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.” 16

Customer Interaction Closing Techniques IMPORTANCE BY PRODUCT Selling Technique Industrial Consumer Direct Ask for the order in a straight-forward manner 1 Summary Summarize the benefits already covered in the presentation 2 Single Objection Asks for the order if last obstacle is overcome 3 4 Assumption Assume readiness to buy and focus on the transaction details Choice Focus on version to be ordered 5 17

Customer Interaction 31% 63% 87% 11% 16% 8% 32% 3% 34% 26% 22% 62% 58% 59% 8% 26% 58% 16% 34% 49% Most Profitable Return Top 3 Rankings for Growth Rated Very Important to Growth Quality of service to customers Product improvements or extensions Information technology Advertising and sales promotion Development of entirely new product lines Figure 5-7 : The Role of Customer Service

Figure 5-8: Servicing the Sale: The Four Pillars of Sales Support Customer Interaction Sales Support Support the Buying Decision Manage implementation Deal with dissatisfaction Enhance Relationship Figure 5-8: Servicing the Sale: The Four Pillars of Sales Support 1

Customer Interaction Pillars of Sales Support Reduce buyer anxiety Make a follow-up call Ask for feedback Support Buying Decision Assist w/ approval process Introduce support resources Monitor & report progress Manage the Implementation 18

Customer Interaction Pillars of Sales Support Deal with Dissatisfaction Empathize with the buyer Respond to problems – use objection handling techniques Anticipate buyer concerns and expectations Reinforce the Benefits 19

Customer Interaction Pillars of Sales Support Enhance the Relationship Be available Arrange continued personal communications Maintain quality of products/services Provide ongoing updates and progress reports Be a resource for info, help and ideas Grow the business internally Ask for referrals 20

Customer Interaction Ways to Anger Customers Constant Selling Neglecting Customer Problems Talking Too Much Stretching the Truth No Thank-Yous