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 Gaining Access Relating Need discovery Advocating Closing Supporting Implementing Dealing dissatisfaction Enhancing the relationship Figure 5-1: The Selling Process and Skills 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

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 5-3: 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 do I need it? Why do I need it now? How much does it cost? Is your price truly competitive? Figure 5-4: A Client’s Questions 8

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 Figure 5-5: 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 5-6: Top Five Customer Complaints About Salespeople

Customer Interaction Task Motives More Output or Quality Less Cost PRODUCTIVITY Financial 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

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 do 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 5-8: Discovery Process: Types of Questions

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 5-9: 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 Figure 5-10 : The Role of Customer Service 31% 63% 87% 11% 32% 62% 3% 22% 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 5-10 : The Role of Customer Service

Figure 5-11: 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 5-11: Servicing the Sale: The Four Pillars of Sales Support 1