1. 1 Agribusiness Library LESSON L060095 Using the Six-Step Selling Process - Part 1

2. 2 Objectives 1.Identify the six steps involved in the selling process. 2.Define pre-approach, and describe activities that occur in this step. 3.Define approach, and examine factors that contribute to a successful approach.

3. 3 Key Terms  approach  pre-approach  prospecting  qualifying  rapport

4. 4 What are the six steps involved in the selling process? A business exists to fulfill people’s needs. Nothing happens for the business or for the customer until a sale is completed. Making a sale is all about facilitating a process where a customer makes the decision to purchase a good or a service. The terms marketing and sales are sometimes used interchangeably.

5. 5 What are the six steps involved in the selling process? When it comes to the actual sales process, marketing activities are the things that build the base upon which sales are made (advertising, promotions, public relations, etc.). For person-to-person sales to take place and for the customer to feel good about the experience, the salesperson should use a six-step sales process.

6. 6 What are the six steps involved in the selling process? Each customer is different and each salesperson is different, so these six steps will happen in a unique way for each sale. However, it is important to understand what the steps are and how they benefit the buyer and the seller. That way, a salesperson can quickly alter each step to accommodate the personality of the customer.

7. 7 What are the six steps involved in the selling process? A. Step 1: Pre-approach B. Step 2: Approach C. Step 3: Presentation D. Step 4: Objection E. Step 5: Close F. Step 6: Follow-up

8. 8 What is pre-approach? What should happen during the pre-approach of the selling process? Before a salesperson shows a customer a product, he or she must carefully prepare for the interaction with the customer. This preparation (the pre-approach) includes gathering information about a potential customer, learning about the product(s), and preparing to meet the customer. The pre- approach work aims to better understand the customers’ needs and the product.

9. 9 What is pre-approach? What should happen during the pre-approach of the selling process? In situations where a salesperson identifies a company to approach about a product or service, the pre-approach would entail learning about the business’s history, what it does, its mission, the competition, its concerns, and its current needs. When a salesperson works for a retail store, however, the pre-approach is slightly different.

10. 10 What is pre-approach? What should happen during the pre-approach of the selling process? Instead of researching every possible customer that will walk through the door, the salesperson learns about different target audiences the store reaches and their buying preferences, typical needs, and personality types.

11. 11 What is pre-approach? What should happen during the pre-approach of the selling process? A. The pre-approach is a tactical step in the sales process. It aims to anticipate customer needs. By learning about potential customers early on, the salesperson is able to think about what they may say or do in the actual sales presentation. Based on that, the salesperson can prepare how to respond.

12. 12 What is pre-approach? What should happen during the pre-approach of the selling process? B. A salesperson engages in prospecting during the pre-approach. Prospecting is the process of searching for potential customers that have needs the salesperson’s company can meet with a product or service it offers. A prospect is the potential client a company researches. Not every prospect needs what the company has to offer. It is a waste of time for the salesperson to approach just anyone. Because of this, a salesperson spends time qualifying prospective customers.

13. 13 What is pre-approach? What should happen during the pre-approach of the selling process? C. Qualifying involves determining if the prospect is worth pursuing based on a defined set of criteria. When adequate pre-approach research is done, the likelihood of closing a qualified sale increases. Basic qualifying centers on three things: 1. Available money 2. The power to make decisions 3. The desire to buy

14. 14 What is approach? What must happen during the approach phase of the selling process? “There is only one chance to make a first impression” is absolutely true in sales. The approach is the first personal interaction a salesperson has with a prospective customer in the sales process. This step entails making a favorable impression with the prospect, gaining his or her attention, and establishing rapport (a trusting relationship or connection built between two people).

15. 15 What is approach? What must happen during the approach phase of the selling process? Without any of these factors in place, the probability of making a sale is low. Salespeople must know and understand their products. If they are not able to relate well to their customers, however, the customers will most likely not want the products. The following tips are important for creating a successful sales approach:

16. 16 What is approach? What must happen during the approach phase of the selling process? A. Make the introduction: People are always more at ease when they are approached by a friendly person. Salespeople should try using the GNAP technique, combined with a smile and a solid handshake when introducing themselves. 1. G: Greeting—“Hi!” 2. N: Name—“I’m Dave…” 3. A: Affiliation—“…with ABC Lawnmowers.”

17. 17 What is approach? What must happen during the approach phase of the selling process? A. Make the introduction (cont’d) 4. P: Purpose—“I hear you’re looking for a new mower that will make your yard work go faster.” “What can I help you with today?” “Thanks for your time. When this new mower came on the market, I knew you would want to see it. It has the potential to save you significant time each week so you can get to more of your customers.”

18. 18 What is approach? What must happen during the approach phase of the selling process? B. Be a professional: Customers want to deal with people who look like they know what they are doing. Therefore, salespeople should be clean and well- dressed. In addition, they should make good eye contact, smile, appear confident, have a solid handshake, and be on time for appointments.

19. 19 What is approach? What must happen during the approach phase of the selling process? C. Get their attention: It is necessary for salespeople to help the prospects understand why they should invest their time working with them. This may already be covered in their introduction with the “Purpose” step, or another statement could be made to grab their attention. “I appreciate you meeting me today. I wanted to share how we’re able to cut your store’s energy consumption by 30 percent.”

20. 20 What is approach? What must happen during the approach phase of the selling process? D. Show an interest: When salespeople show an interest in others and take time to listen to their thoughts, concerns, stories, and questions, they put the customers at ease, build rapport, and learn more about their needs. In sales, this means asking questions about what the customers are looking for and what problems they are trying to overcome with a new product or service.

21. 21 What is approach? What must happen during the approach phase of the selling process? D. Sales are often lost when salespeople talk about themselves too much and forget to center the conversation on the customer. At this point in the pre-approach, it is important to identify how to help meet the prospects’ needs.

22. 22 Review  List of the six steps in the selling process.  In what industry is the pre-approach not used in the selling process?  What are the three things that center around qualifying a potential customer?  Why is important to show interest in a person in order to make a sale?

23. 23 Agribusiness Library LESSON L060095 Using the Six-Step Selling Process - Part 2

24. 24 Objectives 4.Define presentation, and describe the FAB selling method. 5.Define objection, identify the type of objections, and demonstrate the ability to successfully handle objections. 6.Define close, and demonstrate the ability to use the various ways to close a sale. 7.Define follow-up, and identify typical follow-up activities.

25. 25 Key Terms  advantage  benefit  closing  feature  objections  presentation

26. 26 What is presentation? What should happen during the presentation of the selling process? Once the prospect’s interest is captured and he or she seems comfortable with the salesperson, it is time to present the product for sale. The sales presentation (demonstration) is the point in the sales process where the salesperson shares the product features, advantages, and benefits. The presentation is the “meat” of the sale.

27. 27 What is presentation? What should happen during the presentation of the selling process? It is also the point in the process where it is vitally important for the salesperson to fully understand the products he or she sells and how the product relates and applies to the prospect’s needs. This is where the research from the pre-approach pays off! The selling process varies a great deal depending on the product, the environment where the sale is taking place, and the personality of the prospect.

28. 28 What is presentation? What should happen during the presentation of the selling process? A. The FAB selling method provides a structure to present the product to a prospect. FAB stands for features, advantages, and benefits. This method helps a salesperson focus on a product’s benefits, which are the ultimate reasons a customer purchases a product. During the pre-approach, it is important to list all of the features a product offers and then write out what advantages those features provide and, ultimately, what benefits they will give customers.

29. 29 What is presentation? What should happen during the presentation of the selling process? 1. A feature is a factual statement about the product. Features typically are not the driving factor in customers choosing to buy a product. Examples are size, color, quality, payment terms, packaging, price, warranty, or other characteristics. 2. An advantage describes how a product can be used or how it will help the buyer. Advantages are what the features provide. Examples are a motor (feature) that requires less fuel to run (advantage) and a programmable sprinkler system (feature) that senses when it is raining and automatically shuts off (advantage).

30. 30 What is presentation? What should happen during the presentation of the selling process? 3. A benefit helps the customer answer, “What’s in it for me?” and persuades the customer to make the purchase. Examples are a four-wheeler with an extra long storage rack (feature) that allows the user to carry items that are up to 8 inches longer than previous models (advantage), meaning fewer trips have to be made (benefit) and less money will be spent on fuel (benefit).

31. 31 What is presentation? What should happen during the presentation of the selling process? B. When working through the presentation: 1. The salesperson should be excited about the product! Enthusiasm carries a strong message about a salesperson’s personal commitment to the product. 2. The salesperson should relax while selling. This can be easier said than done. But a relaxed salesperson helps a prospect relax and feel better about the product being viewed.

32. 32 What is presentation? What should happen during the presentation of the selling process? B. When working through the presentation (cont’d) 3. The salesperson should allow the prospect to interact with the product. Let him or her handle it, ride it, wear it, etc. Ask probing questions that help uncover his or her experiences, needs, and wants. 4. The salesperson should observe the prospect’s body language and facial expressions for clues to his or her feelings toward the product. 5. The salesperson should not interrupt when a customer is speaking or when a customer is taking time to think.

33. 33 What is presentation? What should happen during the presentation of the selling process? B. When working through the presentation (cont’d) 6. The salesperson should limit the choices a prospect sees. Most experts advise showing only three options in one sitting. Too many options may be overwhelming, resulting in a lost sale. 7. The salesperson should adapt the sales presentation to the prospect. 8. The salesperson should look for opportunities for the prospect to agree that he or she will benefit from owning the product. 9. The salesperson should follow through on promises.

34. 34 What is an objection? What are the types of objections? What are optional methods for effectively handling sales objections? After the presentation, and sometimes during the presentation, the customers will ask questions or make statements regarding why they may not want to purchase the product. These questions or statements are objections and are a common part of the sales process. It is important for the salesperson to identify what is holding the customers back and to answer their questions or statements with information that will change their minds or help them see why the product is a good fit for them.

35. 35 What is an objection? What are the types of objections? What are optional methods for effectively handling sales objections? Often an objection is a sign that the prospect is asking for more information. During the research in pre-approach, salespeople should think about what possible objections are and rehearse answers to them. To answer some objections, the salesperson may have to ask more questions of the prospect.

36. 36 What is an objection? What are the types of objections? What are optional methods for effectively handling sales objections? A. Some tips for salespeople working through the objection 1. Salespeople should handle all objections politely and with interest. The sale is not lost just because the prospect makes an objection! 2. Salespeople should acknowledge the prospect’s thoughts, and offer him or her new information about the product.

37. 37 What is an objection? What are the types of objections? What are optional methods for effectively handling sales objections? A. Some tips for salespeople (cont’d) 3. Salespeople should restate the objection so the prospect can hear it aloud. Doing this helps to minimize the objection and allows prospects to modify the statement to more accurately express the true objection. 4. Salespeople should listen carefully. The objection may actually allow the salesperson to see that another product may be a better fit for the customer.

38. 38 What is an objection? What are the types of objections? What are optional methods for effectively handling sales objections? B. Common objections include: 1. Question of value— “I don’t have a need for that.” “I already have something similar.” 2. Lack of urgency—“I don’t think it’s necessary right now.” “I need to think about it.” 3. Perception of a lack of quality—“Your competitor has a similar product and they have been around longer. I trust them more.” “I saw something similar advertised for 15 percent less than you are asking.”

39. 39 What is an objection? What are the types of objections? What are optional methods for effectively handling sales objections? B. Common objections include: 4. Lack of money to make the purchase—“I’ve already spent my budget.” “It costs how much?” 5. Conflict with product features—“I don’t like that design.” “It’s more powerful than I need for my work.”

40. 40 What does it mean to close? What are effective ways to close a sale? Customers generally do not tell a salesperson straight out that they are going to purchase the product. The salesperson must ask for the sale. The process of asking a prospect for a sale is called closing. It is important for the sales-person to carefully watch for cues that the customer is ready to purchase the product or step away from the sale.

41. 41 What does it mean to close? What are effective ways to close a sale? A. Examples of signals a prospect gives saying he or she is ready to purchase the product include: 1. Asking about availability, delivery, and add-on services 2. Asking about pricing and payment options 3. Asking about features or quality

42. 42 What does it mean to close? What are effective ways to close a sale? A. Examples of signals a prospect gives (cont’d) 4. Asking questions to learn more about the business 5. Asking questions to review previous portions of the conversation 6. Asking for samples or a repeat of the demonstration 7. Asking about other products the business carries 8. Asking for referrals of customers

43. 43 What does it mean to close? What are effective ways to close a sale? B. Seven techniques to help a salesperson close the sale are: 1. Ending with a small choice—“Would you like the black or silver model?” “Can I get the 4 GB or 8 GB version for you?” 2. Ending with small “yeses”—“Would you like to see how it handles in packed dirt, too?” “Wouldn’t this save you several hours every week?”

44. 44 What does it mean to close? What are effective ways to close a sale? B. Seven techniques (cont’d) 3. Ending with a bargain—“This price is only in effect for two more days.” “This is the last one in our inventory. It’s very possible the item may go on backorder today.” 4. Ending with a “join the club” invitation—“We’ve sold this same model to many people in your current situation.” “This product has been very popular with people who are running into the same issue.”

45. 45 What does it mean to close? What are effective ways to close a sale? B. Seven techniques (cont’d) 5. Ending with a payment method—“Will you be paying by check or credit card today?” “Who should I send the invoice to at your office?” 6. Ending with a test drive—“Why don’t you take it home and test it out.” “Feel free to test the product out in our demo areas.” 7. Ending by asking for the sale—“We can get the product shipped to you as soon as you sign the contract.” “Are you ready to take the product home today?”

46. 46 What is a follow-up? What types of activities facilitate follow-up from a sale? For in-person sales, especially high-dollar items, the salesperson should always follow up with the customer to ensure that he or she is satisfied with the purchase and is not experiencing any problems. Making the effort to follow up with a customer sends the message that the salesperson or business cares about the customer and his or her experience. It also helps establish a long-term relationship with the customer.

47. 47 What is a follow-up? What types of activities facilitate follow-up from a sale? Examples of follow-up activities include: A. A telephone call from the salesperson to the customer to check on how the product is performing B. A thank-you note from the salesperson to the customer for the purchase C. A small gift sent to the customer on behalf of the company thanking him or her for the purchase and for loyalty to the business

48. 48 Review  Describe the FAB selling method.  What are the common objections during a potential sale, and how should salespeople respond to them?  List some common signals that a prospect gives when they are about to make a purchase.  Why is follow up important? What are some methods of follow up?