Chapter 2 Relationship Selling Learning Objectives Understand the role of relationship selling in today’s market and how it differs from past stereotypes of selling. Learn the steps in relationship selling and the purpose of each step. Compare and contrast relationship selling and the traditional sales model. Examine the usefulness of continuous quality improvement in a sales organization. Recognize how to build relationships through team selling.

Quotable Quotes “ Your professionalism is defined not by the business you are in, but by the way you are in business. ” - Dr. Tony Alessandra

Value Creation Through Relationship Selling The trend in professional selling today is toward relationship, problem-solving selling Customer Satisfaction: the ultimate goal of the relationship salesperson throughout the selling process Relationship Management: Managing the account relationship Ensuring that your clients receive the proper service during and after the sale

Relationship Builders Treat customers like life-long partners Become a solutions provider Deliver more service than you promise Schedule regular service calls Develop open and honest communication Use the ‘we can’ approach Take responsibility for mistakes made Be an ally for the customer’s business

Relationship Breakers Simply wait for the problem to develop Focus only on making the sale Over-promise and under-deliver Wait for your customers to call you Lie or make exaggerated claims Use the “us versus them” approach Blame somebody else; Knock a competitor Focus on your own personal gain

Relationship Selling Versus Traditional Selling The face-to-face steps of the Relationship Model: The Approach Identifying Needs Making the Presentation Handling Objections and Gaining Commitment 1 2 3 4 Time: 40 percent spent on gaining rapport and trust Empathy: Think the way your customer thinks. Standards: Customer expectations, higher than ever

Relationship Selling Versus Traditional Selling Relationship Model of Selling Traditional Model of Selling Phases % time spent % time spent Building Trust (Rapport) Probe, Ask Questions, and Listen Sell Benefits Reassure and Close Telling Qualifying Presenting Features Closing Long and Hard Approach 40% 10% Identifying Needs 30% 20% Making the Presentation 20% 30% Resistance and Gaining Commitment 10% 40%

Sales Cycle Framework for Relationship Selling Chapter 7 Prospecting Chapter 8 Preapproach and Telephone Techniques Chapter 9 The Approach Chapter 10 Need Discovery Chapter 11 Making the Presentation Chapter 12 Handling Objections Chapter 13 Closing the Sale Chapter 14 Service after the Sale The 8 STEP SALES CYCLE

Phase One Identifying Qualified Prospects Qualified prospects must have: Need Money Authority Planning Preapproach Activities Telephone Activities

Phase Two Approaching the Prospect Discovering Needs Success of the process depends on this Requires questioning and creative listening skills Making the Presentation Takes planning Handling Objections and Gaining Commitment Resistance happens because an atmosphere of mutual trust was never fully developed There may be problems beyond your control The closing stage is the most tedious for the traditional salesperson

Cognitive Dissonance (buyers remorse) must be reduced Phase Three Service After the Sale Relationships keep satisfied customers coming back Customer satisfaction is an asset to you and your company The relationship really begins when the buyer says “yes” Cognitive Dissonance (buyers remorse) must be reduced

Continuous Quality Improvement Total Quality Management Listen and learn from customers and employees Continuously improve the partnership Teamwork through mutual trust and respect Do it right the first time Get your whole company involved Service Quality There is a process and an outcome. Both are necessary for customer satisfaction.

The Service Quality Interaction The Process The Actual Outcome Perception of Service Quality Received Overall Customer Satisfaction Service Quality Influences… Leads To…

Traditional Management Versus TQM Traditional Management Model The TQM Model Focus on product Company knows best Transactions Individual performance Fire-fighting management Blame/punishment Short-term (year or less) Intolerant of errors Autocratic leadership Bureaucratic Top-down decisions Inward focused Focus on service Customer knows best Relationships Team performance Continuous improvement Support/reward Long-term (years) Allows mistakes Participative leadership Entrepreneurial Consensus decisions Outward (customer) focused

Team Selling

The Growth of Team Selling It has grown to take advantage of diverse skills and personalities needed to sell complex products The selling steps are the same, but rules are needed Usually at least one salesperson and some technical specialists The buyer may also have a team

Benefits of Team Selling Customer gets involved with more than one person More accurate need definition Very useful if product is technical Different individuals bring more selling skills

Risks of Team Selling Requires special planning Must have a leader Must agree on objectives Must be better rehearsed

Combinations That Work Opener and Closer Just as in baseball (starting pitcher and the closer) Some salespeople are good at opening up relationships while others are masters at closing the sale Both are very important-- a symbiotic relationship

Selling in a Multicultural World Multicultural Sales Professionals: Place an emphasis on diversity Establish a pro-diversity climate that benefits from different cultures’ contributions Provide ethnic diversity that helps foster relationships