Visioning & Alignment
What is strategy?
Strategy means consciously choosing to be clear about your company’s direction in relation to what’s happening in the dynamic environment. With this knowledge, you’re in a much better position to respond proactively to the changing environment
What is the mission statement ?
A mission statement is a statement of the company’s purpose or its fundamental reason for existing.
The statement spotlights what business a company is presently in and the customer needs it’s presently striving to meet. To build a solid foundation for a successful business, it’s essential to have a written,clear, concise, and consistent mission statement. This statement should simply explain who you are and why you exist.
What is the Vision ?
An idealized view of where or what an organization would like to be in the future.
Values
Values are enduring, passionate, and distinctive core beliefs. They’re guiding principles that never change. Values are why you do what you do and what you stand for. Values are deeply held convictions, priorities, and underlying assumptions that influence your attitudes and behaviors. They have intrinsic value and importance to those inside the organization. Your core values are part of your strategic foundation.
More about Values
More and more companies are articulating the core beliefs and values underlying their business activities. Strong values account for why some companies
gain a reputation for such strategic traits as leadership, product innovation, dedication to superior craftsmanship, being a good company to work for, and total customer satisfaction.
A company’s values can dominate the kind of strategic moves it considers or rejects. When values and beliefs are deeply ingrained and widely shared by managers and employees, they become a way of life within the company, and they mold company strategy.
They’re also called guiding principles.
Acting on your organizational values
Developing a set of values is one thing, living by them is something completely different. Having a values statement that’s all talk and no commitment
undermines your leadership and the management team’s credibility. Here are some ways to bring your organizational values to life:
Communicating values: Send a letter to every employee; develop a brochure;visit every office to personally explain the values; post the values in a
public area.
Values training: Develop short training sessions about the different value topics. If that sounds like a lot of work, consider holding a brown bag
lunch focused on one of the values. Allow an open discussion about what it means to act on and live by each value.
Values reinforcement: Engrain your values through performance reviews, in
your goal statements, and in your everyday language.
Rewards/Recognition: Host contests to give employees a fun reason to discover and integrate the values.
Hiring: Use your values statement as a guide in your hiring process. Structure interview questions around each one of your values to ensure that you’re bringing people into your company who align with your corporate culture.
Alignment: Look at your values and figure out specific ways to align daily activities with the values. For example, if one of your values is innovation, then install a system to reward innovation. If customer satisfaction is a value, then set a policy of 100 percent money back guarantee.
Why worry about mission / vision / values/goals..etc.
Fully understanding and aligning yourself with your organisation's mission vision , Values and Strategic goals enables you to :
Spend more time on high impact, high-growth activities
High impact, high growth activities are where you want to spend as much time as possible. With these maneuvers, you spend less time spinning your wheels. Think back on the past month. Were there any projects or activities you were part of directly or indirectly that didn’t actually move the organization forward because they were dead end opportunities? I bet there were.
Get rid of this dead weight as fast as possible!
Identify true opportunities versus false starts
If you know what you’re best at and where you want to go, you can more quickly identify true opportunities versus false starts. You want to pursue true opportunities and quickly throw out false starts. Strategic planning helps you to put the boundaries on your business. When you ignore extraneous distractions, you use your resources more effectively and more quickly to grow your organization.
Adapt quickly
The ability to adapt quickly is the name of the game in today’s business climate.
When everyone on your team is on the same page and is pulling in thesame direction, you can easily absorb shifts, make changes, and innovate on the fly. If there’s no clear direction in your strategic plan, your team may not know how and what to adapt to.
Be proactive instead of reactive
Being in a reactionary mode all of the time puts you one (or more) steps
behind your competition. Make sure that your strategic plan maps out proactive
choices to propel your company forward.
Achieve your vision for success
You started your organization for a reason. You likely have a vision for your business. You want to achieve your vision for success. You have to specifically
figure out how you’re going to get there. Having a strategic plan makes success intentional.
Increase employee commitment
Strategic planning increases employee commitment — especially in this tight labor market, helping your employees see the vision that you have for success
and growth helps you work toward that goal.
Elements of an effective vision statement
Audacious: Represents a dream that’s beyond what you think is possible.
It represents the mountaintop your company is striving to reach.
Visioning takes you out beyond your present reality.
Capitalizes on core competencies: Builds on your company’s core competencies.
It builds on what you’ve already established: company history,customer base, strengths, and unique capabilities, resources, and assets.
Future casting: Provides a picture of what your business looks like in the future.
Inspiring: Engaging language that inspires. It creates a vivid image in people’s heads that provokes emotion and excitement. It creates enthusiasm
and poses a challenge.
Motivating: Clarifies the direction in which your organization needs to move and keeps everyone pushing forward to reach it.
Purpose-driven: Gives employees a larger sense of purpose, so they see themselves as building a cathedral instead of laying stones.
Networking
What is Networking?
Networking is about building, cultivating, and developing relationships with a large, diverse group of people who will gladly and continually refer business to you.
A practical skill played out at well-organized trade shows, seminars, association meetings, and professional group meetings.
A widely used tool for building a rapport with others in order to give and receive ideas for learning and educating.
About who you know, who knows you, and what you do for a living. When that person or someone that person knows needs your products and services, they will think of you, providing they like and trust you.
To network effectively, you must:
Be prepared
Understand the objectives of attending the event
Analyze the event
Overcome the fear of strangers
Follow-up and keep promises
There are certain skills involved with networking, some of which are:
Engaging in conversation
Giving the right impression
Gathering information
Disengaging from conversation
Follow-up on new contacts
Tips on Networking Effectively
Pre-Qualifying the Group
Attending meetings, joining organizations, and going to conferences and trade shows are all ways to meet people. However, if they don’t fit into the demographics you have decided are most apt to buy your products, you can waste a lot of time without ever getting any return on your effort.
Pre-Networking Introductions
If you are heading out to a meeting with the local Chamber of Commerce, you might want to find somebody who you know that already belongs to the group and ask them if they would introduce you to a couple of people. You might have a couple of people you want to meet that you know they know, or you might leave it up to them.
Pre-Event Strategies
Prepare effective conversational openers. Know what the organization is about and what types of people will be there. The easiest way to be informed is to become an active participant in the organization. This is a great way to build relationships with other members before the events.
Self Introduction
Spend some time and thought in preparing a self-introduction that sounds good and tells people what you want them to know. Practice until you can say it easily without feeling self-conscious.
How to Walk into a Room
Some people walk into a room as though to say, “Here I am.” However, you might be more successful if you walk into the room with an expression of, “Here you are!” on your face.
Don’t Just Stand There, Mingle!
If you are with a group, don’t freeze up. Walk around the room until you spot somebody else who looks like they are alone and then walk up to them, stick out your hand for a handshake, and introduce yourself.
How to Break into a Group
It can be hard to break into an already formed group. However, look for people who are alone like you, or for odd groups. In a group of three, for example, one person may be unattached or feeling left out of the conversation. Think of yourself as a host and look around for others who may need help.
Be the Person they Remember
In business, as in most aspects of life, what goes around comes around. Whenever possible, give a lead or referral to people you meet. They will remember it. Before you enter the room take a deep breath, walk in with confidence, and give the room a once over. Pick a place where people are congregating; the bar and food table are good places to begin the networking process! Start with simple questions, such as, “Are you a member?”
Find Intermediaries
Perhaps there is somebody in the group who can help you get an introduction to someone you would like to meet. Ask them if they are willing to act as an intermediary.
The Handshake
Nobody wants to get a wet fish handshake, and they don’t want a crusher handshake either. A firm grip so the web between your thumb and forefinger is against the web of the other person’s thumb and forefinger usually gives you the right grip. Your handshake should be firm, short, one-handed (right), and be accompanied by a smile.
Pick a Card, Not Just Any Card
At business functions you are expected to have business cards. Don’t pass out business cards like they are candy. However, do pass one to anyone who asks or who has expressed an interest in your products or services. Or, at the end of a conversation, ask for the person’s card and offer yours. When someone gives you their card, take time to look at it before slipping it in your pocket or wallet. Do not write on the back unless you ask them first; respect their card. Later, make note of where you met the person and what the date was; this will help with follow-up.
Focus on One Person at a Time
When talking with someone, don’t let your eyes wander to others in another area of the room. Give that person your full attention until you are ready to move on. You never know when opportunity will knock. Have you ever had someone look over your shoulder? It is rude behavior. Focus on that person; it’s not only polite, it’s effective networking. Try to use the person’s name three times in a conversation; it makes the person feel good, and it will help you to remember.
Have Fun! Be Positive! Remember Body Language!
Use open body language, with arms at your sides and an alert, pleasant expression on your face.
Coffee, Anyone?
Always send a thank you note to the host or hostess of the event. Fax an article of interest to someone you spoke with. If a connection has been made and you tell the person you will call them to set up a meeting, call within 24-48 hours. If you wait too long you will lose credibility.
Buddy System
If you are going to an event it can sometimes increase your confidence and your comfort to bring a buddy along. However, make sure you and your buddy agree not to stick to one another like glue. Make an effort for each of you to meet others, introduce others to your buddy, and you will have doubled the number of people you can network with in an evening.
Small Talk
Use these questions to generate small talk with your partner. Substitute “widget” for their business.
How did you get your start in the widget business?
What do you enjoy most about your business?
What separates you from your competition? (Let them brag!)
What advice would you give someone starting out in your business?
What one thing would you do with your business if you knew it could not fail?
What significant changes have you seen take place in your business throughout the years?
What do you see as the coming trends in the widget business?
Selling Features, Advantages and Benefits
There comes a point, during the sales process, when the salesperson needs to present the solution that meets the customers' needs. Presentations can relate to products or services or the company itself.
During the sales process it is important to:
• Sell the concept of buying the product. In other words, does it meet their business and personal needs?
• Sell their company as the natural choice of provider
Many salespeople fail because they raise awareness about the need to buy a particular product, or service, then fail to sell their company. This can lead to the customer shopping around for the cheapest option, which may not actually be in their best interests.
When salespeople present information, they tend to present features of their products or company:
Our company is market leader
This product has flexible payment options
Our company has been established for 100 years
We offer a great service
And the reaction of most potential customers is to say, to themselves So what? The customer really wants to know “What’s in it for me?”
Let us look at how a number of different products could be described. Read the examples overleaf and decide which is the most persuasive.
Example 1
This mobile phone has continuous access to your e-mails
Our calculator has a solar battery
Our computer has a 32 GB Hard Drive
Example 2
Because this mobile has continuous access to your e-mails you can keep in touch with your business on the move.
Because it has a solar battery our calculator can run indefinitely in normal daylight.
Because our computer has a 32 GB Hard Drive you can use the widest range of software available.
Most people find that the second style of statements is more persuasive
What is the common factor in the second type of statements, which makes them seem more persuasive than the first? Each of the first statements is a neutral description; a fact or a piece of information about the product. In selling, such statements are called Features.
A Feature describes some characteristic of a product or service. Features are relatively neutral, both in their content and in their effect on the buyer. In fact, the second set of examples goes beyond simple product characteristics. It shows how a characteristic, or Feature, can be used and applied. Such statements are called Advantages.
An advantage describes how a product, or a product feature, can be used or can help the buyer. Advantages, as we have seen, are more persuasive than Features. Most Advantages can be expressed in the form:
Because of ... (feature) you can ... (advantage)
So, if the Feature is:
This policy has a flexible maturity date.
An Advantage could be:
Because the policy has a flexible maturity date you can choose the best time, based on your personal circumstances, for the policy to mature.
But there is one way for a seller to describe the produce which is even more persuasive than using advantages. People buy because they have needs. If the seller can relate the product specifically to those needs, then there is a high probability of making a sale. Statements, which show how the buyer's needs can be met by product features, and advantages, are called Benefits.
Benefits are the most powerful way in which a seller can describe the product.
A benefit describes how a feature and advantage of a product can meet a specific need the buyer might have for that product. By having a clear understanding of the buyers' needs, we can sell the particular benefits of the product that meet those needs
You will recall we have spent time in the sales call asking questions in order to identify needs. Using the examples, above, of the mobile, the calculator and the computer, let us say that during the sales calls that took place the following answers were received during the `asking questions' phase of the call.
I need to be able to respond quickly when customers contact me by email.
I like the look of your calculator but I find it expensive to run my current machine as it gets through a lot of batteries.
I am looking for a flexible computer system and I need to be sure that I have enough space on my hard drive to take into account future upgrades in software?
During the presentation phase of the call we can sell Features Advantages and Benefits to link our presentation to the actual needs described by the customer earlier in the sales call. For example:
Because this mobile has continuous access to your e-mails you can be confident that if a customer sends you an e-mail you can respond quickly.
Because it has a solar battery, our calculator can run indefinitely in normal daylight, which means that you will not need to worry about the cost of replacement batteries.
Because it has such a large hard drive, our computer can use the widest range of software available, and will continue to do so in the future. This means that you can be reassured that your particular accounting and stockcontrol needs will be met.
Benefits relate to the individual. They say how the features and advantages will affect the individual and are therefore much more persuasive. Most people are thinking “what is in this for me?”
Benefits describe what is in it for the individual customer and reflect feelings of confidence, reassurance and peace of mind. The benefit phrases people like to hear are:
1. You don’t have to worry because…
2. You can be confident that…
3. You can be reassured that…
4. This will give you peace of mind because…
Advice from the Giants of Sales
John Henry Patterson
He invented the fundamentals of modern selling as a definable and repeatable process. Eventually, somebody might have discovered the value of a structured approach. Maybe that person would have promoted it zealously.
Maybe people who were trained in that method would have gone on to lead dozens of other companies and thus spread the sales method throughout the economy. But with that many ‘‘maybes’’ in the equation, it seems likely that without Patterson, the development of professional sales would have been delayed by a generation or more.
All Process oriented sales training traces its DNA to Patterson
Professional Selling Skills (PSS), Strategic Selling, Solution Selling, SPIN Selling, or any other process-oriented approach, no one would blink twice. They fit right in.
Some of the various sales methods that can trace their DNA back to Patterson
Dale Carnegie
The Dale Carnegie approach is fundamentally about improving our relationships with other people, not about selling them more stuff.
The Carnegie approach is about getting what you want by helping someone else get what he or she wants.
In that sense, it’s very much about establishing a trusting relationship built on sincere acceptance of the other person’s point of view, on honest communication, and on sharing an open agenda.
Dale Carnegie 's 1st Principle
Act As If
One of Carnegie’s fundamental principles was that people could change their attitudes by changing their behavior. If you were scared and worried, you could overcome those feelings by acting as if you felt confident and serene.
Dale Carnegie2nd Principle
MAKE THE OTHER PERSON FEEL IMPORTANT
One of the fundamental Carnegie principles was that you can win friends and wield more influence if you can force yourself to pack your own ego away and focus on making the other person feel important. Everybody was a hero in his or her own mind, Carnegie felt, and would welcome any external evidence that supported that belief.
Carnegie maintained that the desire to feel important is one of the characteristics that make human beings human.
Dale Carnegie3rd Principle
INSTILL AN ‘‘EAGER WANT’’
A third Carnegie principle is one that salespeople have applied in their work for generations.
Action springs out of what we fundamentally desire . . . and the best piece of advice which can be given to would-be persuaders, whether in business, in the home, in the school, in politics, is: first, arouse in the other person an eager want. He who can do this has the world with him. He who cannot walks a lonely way.
Carnegie was convinced that this principle worked. If we wanted to persuade someone else to do something, we had to make him want to do it. It was an absolutely vital principle for sales.
Carnegie’s magic Dramatizing formula Begin dramatically, tell a good story, make a point, and deliver a benefit.
DRAMATIZE!
As a trained actor and a champion debater, Carnegie knew the value of making a vivid impression on the audience. In his public speaking classes, he encouraged students to make their messages vivid.
‘‘This is the day of the dramatization,’’ he wrote. ‘‘Merely stating a truth isn’t enough. The truth has to be made vivid, interesting, dramatic. You have to use showmanship. The movies do it. Radio does it. And you will have to do it if you want attention.
Dale Carnegie’s ideas on building rapport with prospects
1. Be your professional self. Don’t try to act like somebody other than who you are. If you do, it’ll come across as insincere or false.
You can listen with interest and enthusiasm as a prospect talks about his recent trip to watch a NASCAR event, even if auto racing is about as appealing to you as having your teeth drilled. Remember—it’s his story.
But don’t try to pretend to be a ‘‘good old boy’’ and fake a personal interest in racing that you don’t have.
2. Dress simply and professionally. Minimize jewelry, and wear a good watch and polished shoes. Keep the focus on the customer and away from your wardrobe.
3. Be forthright. Extend your hand, look the other person in the eye, and tell him how good it is to meet with him.
4. Take a second to scan her office. Do you see signs of a similar interest? Pictures of the family or a hobby, office layout? Awards she/he has won? Make a connection. If you truly don’t have the same interests and cannot see a personal connection, look for a professional connection.
5. Always set a time frame at the beginning of the meeting, whether it is on the telephone or in person.
‘‘Beth, I’ve planned an hour for our meeting; does that work for you?
We’ll wrap up by 2:00 pm.’’
6. At the start of a meeting, resist the temptation to show off all you have learned about the customer’s business and industry from reading the company’s 10-K and annual report. You’ll make a bigger impression if you wait to display your knowledge by asking an incisive question later, after you’ve established rapport.
7. When the customer talks, listen. Look directly at him. Nod. Don’t interrupt. If you like to take extensive notes, ask permission to do so. (People don’t like to have someone writing down every word they say—it’s too much like giving a deposition and too little like having a conversation.) When the other person has made his point, wait for three counts before you say anything back to him. Linger over what he’s said. Give him a chance to take a breath. Show him that you are listening by stopping to absorb what he just said.
One effective technique for remaining focused and interested, yet keeping your own ego in check and your emotions in the background, is to pretend that you are a journalist whose assignment is to interview this businessperson.
What questions would you ask to encourage her to talk? What mannerisms and body language would you use to convincingly act the part of a professional interviewer? How do interviewers on television look at the person they are interviewing? How do they communicate interest nonverbally? You can use those techniques, too.
8. After listening, always feed back what you heard. This is the highest compliment you can pay someone. It is the most important sign of a truly conscious relationship. You listened, and you want to get it right. ‘‘Let me make sure I have this right, Mary. As you said, you’ve been in banking for 20 years, and you’ve never seen banking fees so low. Your concern is finding alternative sources of revenue to make up for what’s being lost from fee reductions. Is that right?’’
You should always recap at the end of a meeting, but it’s also a good idea to take these small validation steps every 10 minutes or so. One of the most important questions you can ask is, ‘‘Why?’’ after you’ve fed back what you heard.
9. Stay on the topic, but don’t try to control the conversation too tightly. If the customer wants to talk about how the war is affecting the company’s profit, listen; you may gain insights into business needs that you would never get by asking directly. As need statements emerge, be sure to write them down so that you can later match a solution and/or benefit to each need.
10. Treat your customers or prospects as your equals, as partners in having a successful meeting. Let them explain their problems and how their business and their decision processes work, and then carefully explain to them how your sales cycle usually progresses.
11. Never argue with the customer. Instead, if you disagree, take a few minutes to make sure you understand his position. Go back to tip 8 and feed back what you heard. Make sure you truly see the customer’s point of view. You are not there to judge him, you are there to solve his problems and provide a benefit to him and his company.
One of the best ways to resolve conflict is to ask, ‘‘Why?’’
12. When leaving, extend your hand and offer a firm handshake and a smile, look the customer in the eyes, and thank her for her hospitality.
Remind her of your next agreed-upon step.
Elmer Wheeler
‘‘Don’t sell the steak, sell the sizzle.’’
It’s more effective to ask customers which than to ask them if.
When they are asked which type of a product they want, customers are more likely to choose one of the options you give them. In contrast, asking them if they want a product at all is more likely to produce a clear no.
Elmer Wheeler’s focus was on the importance of using language in the most effective way possible to stimulate sales.
you may have heard the phrase, ‘‘Don’t sell the steak, sell the sizzle.’’ Most people have. It has achieved the status of a proverb or a bit of folk wisdom. But it was invented by Elmer Wheeler as a way of making the point that bland, factual details don’t work. You have to show the customer what the benefits are.
Example 1:
Having the staff ask, ‘‘would you like any wine with your meal?’’ was only a tiny bit better. It was too easy for the customer to answer, ‘‘No.’’
Wheeler’s approach was to train the staff to ask diners a different question:
‘‘Would you prefer red or white wine with your meal tonight?’’ When the question was phrased that way, sales of wine shot up dramatically.
Example 2:
Having pump attendants ask ‘Shall I fill it up?’ instead of “ how many gallons you want “ gasoline sales shot up
The wheelerpoints
• Wheelerpoint 1: Don’t sell the steak, sell the sizzle!
• Wheelerpoint 2: Don’t write—telegraph.
• Wheelerpoint 3: Say it with flowers.
• Wheelerpoint 4: Don’t ask if—ask which!
• Wheelerpoint 5: Watch your bark!
DON’T SELL THE STEAK—SELL THE SIZZLE!
So what’s a sizzle? And why should we focus on selling it instead of the actual product?
What Wheeler means by a ‘‘sizzle’’ is the primary appeal to customers— the aspect of our product or service that catches their attention and makes them think about what the product will do for them. It’s the fact or detail that is most closely linked to the interests of the receiver.
People want to know, what’s in it for me?
And until they see that there is something in it for them, something that they want, they’re not likely to listen to our sales pitch.
DON’T WRITE—TELEGRAPH!
Have you ever sent a telegram? They’re pretty rare these days, but in Wheeler’s time they were a common way to send urgent messages. They were extremely expensive, though, so people had to communicate as much as possible in as few words as possible. That’s what Wheeler is getting at in this principle: You need to get the customer’s ‘‘IMMEDIATE and FAVORABLE attention in the fewest possible words.’’
SAY IT WITH FLOWERS
What Wheeler means by this principle is that you must prove your claims.
If you say to your spouse, ‘‘Happy anniversary,’’ that’s good, but if you also hold out a bouquet of flowers as you say it, that’s better. As he says, ‘‘Give a quick customer benefit—but then prove it the next second.’’6
Wheeler seems to be suggesting that we use two different kinds of proof.
On the one hand, we can substantiate our claims of benefits by offering a factual example or proof statement. On the other hand, we can provide emotional proof that we believe in our claims by demonstrating the kind of body language that communicates sincerity.
DON’T ASK IF—ASK WHICH!
This is one of Wheeler’s best insights. As he explains you should always frame your words (especially at the close) so that you give the prospect a choice between something and SOMETHING, never between something and NOTHING.’’ Most parents of toddlers have stumbled on the magic of this approach, but we may not see how the same psychology works with adults, too.
When asking for the order, when asking the customer to agree to move to the next stage of the sales process, when simply asking for an appointment— ask the customer in such a way that she or he must choose between two options, both of which you are happy with. You can ask which of a couple of options that customer wants to buy, when the product should be delivered, how many items should be in the initial order. But you don’t ask if the customer wants to buy.
WATCH YOUR BARK
Wheeler’s final point means that you need to deliver your message effectively.
It’s not just using the right words; it’s saying them the right way that delivers results. In his own words: ‘‘The finest ‘sizzle’ that you ‘telegraph’ in ten seconds, with huge bouquets of ‘flowers’ and lots of ‘which,’ ‘what,’ ‘where,’ and ‘how,’ will flop if the voice is flat.’’9
In face-to-face selling, using a monotone or speaking in a whiny voice will undercut your message. Nervous gestures like wringing your hands together or playing with your hair, will suggest that you are not confident of what you are saying. Communicating optimism, enthusiasm, and energy through your voice and gestures helps create those same feelings in the audience.
This is a point that Dale Carnegie made, of course, and one that his disciple Frank Bettger repeated . . . enthusiastically.
One of Wheeler’s strongest ideas
Ask ‘‘Why?’’ when you get objections, and don’t forget to ask ‘‘Which?’’ when it’s time for the order.
Joe Girard
Joe Girard sold more cars by himself than 95 percent of all the dealerships in North America. In fact, he was so successful that Joe Girard is listed in the Guinness Book of World Records as ‘‘the world’s greatest salesman.’’
So how did he do it? And what big idea did this car salesman contribute?
Girard is basically a relationship salesperson. He’s pretty explicit about it, in fact: ‘‘Make [the customer] a friend and he’ll work for you.’’ Even though Girard sold what anybody would call a commodity—Chevrolet cars and trucks—he actually saw himself as selling a relationship
JOE GIRARD’S LAW OF 250
The principle is this: Most people have about 250 other people in their lives who are important enough to invite to a wedding or to a funeral.
Pretty simple, isn’t it? But really powerful.
Each person I do business with represents 250 other people. If I do a great job, 250 more people are likely to get a recommendation to buy from me. If I do a lousy job, I have just made 250 enemies.
Consistently doing a good job—building strong relationships, treating people fairly, and giving them what they want—will make selling a lot easier in the long run.
Excerpts from "The Giants of Sales" Book by Tom Sant
9 Closing Techniques
The purpose of this section is to look at nine ways of closing the sale. Any examples that are given will be general. Write down, for the closing techniques indicated, examples in your own words:
1. Ask for the order
It has been estimated that 7 out of every 10 presentations end without the salesperson asking for the order. Of the 3 salespeople who do ask for the order, 2 give up after the second refusal.
Having presented to your customer in a professional way you have the right to ask for the order and the customer expects you to do so. This technique alone will improve your sales results and give you more confidence in the selling situation.
Remember that closing is about timing. The best closers recognise there is a time to ask for commitment and they have the confidence to do so. If you get rejected, so what? What have you actually lost? In fact you are better off because even if you get rejected at least you now know where you stand.
2. The Assumptive Close
By assuming that the order is being placed you can remove the responsibility for decision-making away from the buyer. This uses the buyer's natural inertia.
The assumptive close uses words like `will' and `when'
This will solve a lot of problems when it is installed.
When will be the best time to deliver?
Will 4 units be sufficient to meet your requirements?
3. The Alternative Close
This close gives the buyer the choice between 2 alternatives, both of which have been chosen by you
Do you require delivery Tuesday or will next week be more convenient?
Will you take the option of alloy wheels or do you prefer central locking?
Would you prefer the green or the red?
4. Closing on a small issue
Often the buyer finds it easier to make small decisions than large ones.
However, having made the smaller decision the larger one becomes easier to make. Choose a minor feature of your product and gain agreement from the buyer on that feature.
Delivery can be made on a weekly basis. Does that meet your requirements?
We can arrange for the colors to match your company logo. Would that be what you are looking for?
If storage is a problem we can arrange for a split delivery at no extra cost. How does that sound?
5. The Pressure Close
This enables you to put pressure on the buyer in terms of special offers or inducements that are available or penalties for not placing the order.
This price is only available up until the end of the month.
If you order the smaller quantity the higher price will apply.
We are giving a free mobile phone with orders of 500 units and above.
This offer ends tomorrow.
6. Converting on Objections
An objection can be a very strong buying signal. If the buyer raises an objection and it is the only objection that is preventing the order from being placed you can use this to gain commitment to buy.
You have said Mr Jones that you are interested in our products but the discount terms that we offer are unacceptable. Is this the only objection you have? If we were able to work out a compromise would you be willing to place the order today?
7. The Negotiated Close
Standard negotiating techniques are very useful at the closing stages of the sales process.
If I can reduce my price by 15 per unit will you agree to place the order today?
If I can agree your delivery terms can we agree today on a long-term commitment for you to use us as your main supplier?
I will ring my boss now. If he agrees to reduce the price by 10% do we have a deal?
8. The Trial Close
During your presentation the buyer may make a remark that suggests a decision to buy may have been made. In these situations
• Listen to what the buyer says
• Summaries what has been said
• Ask for the order/close the sale
9. The Balance Sheet Method
One closing technique that can be used is to list all the points in favour of your product and all the points against on a sheet of paper.
This can be repeated for the other products being considered by the buyer and can influence the decision of where the `balance of power' lies. If your product is the stronger of the alternatives available to the buyer this method can help the final decision be made in your favour.
The Body Coaching Model
| Head Questions: |
- What will success look like for us? - If we resolved this problem, what would we be saying to ourselves? - What do we think about this problem? - Where are we heading? |
|
| Body Questions |
- What is going on now?
|
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| Leg question |
- Where could we go for answers/assistance? |
|
|
Feet questions |
- What are our next steps? |
|
Extracts from Body Coaching Model by Paul Tizzard, published in Fenman Coach the Coach Series
Techniques for handling objections
APAC Model for handling objections :
An objection is good news. When a customer raises an objection, it means the customer is identifying issues that have to be resolved before the sales can be closed. The customer is interested; the sales person’s task is to Manage the Objection.
Once you get an objection You should work on :
Identifying ‘real’ and ‘false’ objections
Understanding different types of objection – Feasibility; Value; Price – recognising what the customer is really saying!
Managing objections using the powerful APAC model – four clear steps to successfully managing objections and closing the sale –
Acknowledge; Probe; Answer; Close
Pre-empting Objections – how to deal them into benefits – before the customer has raised them. A real business and rapport builder.
Before an objection can be answered it must be acknowledged. Jumping in, especially with a denial, gives quite the wrong impression and tends to lead to an adversarial situation and to argument.
An acknowledgement (which may only be a few words: ‘That’s certainly something we need to review... Yes, that’s a fair point, let me give you some more background’) will:
● Indicate to your customers that you believe they have a point
● Show that you are not going to argue
● Make it clear that you are likely to respond with something serious and considered (including ‘yes’ in the acknowledgement may help)
● Give you a moment to think (something you may welcome or even seek to extend:‘Let me think about that for a second’)
● Good acknowledgement makes subsequent handling of objections more straightforward.
More Techniques for handling objections
- Acknowledge but do not agree with the objection before you answer it
- Clarify your understanding of the question the customer is raising before you answer it
- Listen and think momentarily before answering
- Aim your answer directly to what on the customer’s mind
- Handle objections as you handle any other ordinary question, without paying excessive attention to it
- Handle emotional situations by treating objections as if they resulted just from a lack of information
- When your client is objecting, hear him or her out. Don’t leap in too soon with your response. Make certain you are clear about what the objection truly is.
- Feed the objection back to the buyer, to be sure you are both on the same page.
- Respond to the objection. Think of this as another opportunity to sell your product or service and put it in a good light.
- Ask for feedback. Have I been clear enough or are there still some questions you’d like to ask?
Be Curious
Last resort
Ask why you didn’t get it
Ex: “I really thought this product was a fit for your needs. Can you let me know why you decided not to buy?”
Boomerang
Use their objection to weaken their point and reinforce your point.
Ex: Customer: “This widget is way too light.” Salesperson: “It is remarkably light, isn’t it? We’ve started using a lighter, more durable metal. We’ve found that it’s much safer.”
Can You Clarify?
Ask the customer for more information before responding to the objection.
Ex: Customer: “I would never buy this product. It’s not built to last.” Salesperson: “I’m interested in why you think that. Would you mind explaining that further?”
Certain Closure
Offer to resolve their objection if they make the purchase.
Ex: “If I get the author to autograph this book, do we have a deal?”
Deflection
Avoid the objection. Use this one sparingly, and make sure you’re polite.
Ex: “That’s an interesting point. Now, let me show you the colors this model comes in.”
Disagree
Politely and assertively disagree with the customer,
But make sure you have facts to back you up.
Ex: Customer: “Acme Widgets doesn’t require anything like this.” Salesperson: “In fact, Acme Widgets does also require a service plan, although theirs is quite a bit more expensive.”
FFF (Feel, Felt, Found)
Empathize with the customer, tell them how others have felt, and tell them what they have found.
Ex: “I understand that you feel that this plan is a big investment. Others (including myself) have felt the same way. However, they have found it really gives them peace of mind.”
Reframe
Interpret their objection as something other than an objection.
Ex: “I can see that I’m not making sense. Sorry – let me put it another way.”
Show Your Hand
Ask the customer to list all their objections at once.
Ex: “It sounds like you have a lot of concerns. What else is on your mind?”
Handling Objections
Defining buyer objections : Objections are really a technique the buyer uses to slow down and make sure he or she isn’t rushing into the sale.
But Before we go deeper into objections , let take a look at a quick technique to pre-empt objections,taking the potential negative of price( or whatever weak point in our product/service ) and bragging about it so hard - that technique is sometimes called "Making the skeleton dance"
Lets see an example :
“Sounds to me like you people are awful damn expensive,”
he said accusingly.
“Absolutely,” Helen agreed, offering her brightest smile.
“So why do you charge so much?”
“Simple,” she said. “Because we can!”
“What?”
“We charge that much because we can—because our clients
are not just willing but happy to pay those kinds of rates for the
results we generate.”
“But can’t they find someone else to do the job for less?”
“Absolutely.”
“Somebody who will do the exact same job for less?”
“Well, they could certainly find companies that will charge
less. I’m no expert on the kind of work these people might do,
so I really can’t say whether or not they’ll do the exact same job.”
“So you’re saying, ‘You get what you pay for’?”
“No,” she smiled, “I’m saying to get us, you’ve got to pay for
us.
so, why do we get objections ?
- Prospect misunderstand something you have said
- Feel pressurized
- Are not convinced about your claims
- Prospect haven't yet made up their mind
- Have to go back and justify their buying decision to others
- Want to make a buying decision
When people are about to make a buying decision they worry. What they worry about is making a mistake. This is the most common time, in the sales
process, when objections are raised; just before the decision to purchase.Often, what the customer is looking for is reassurance that their decision to
buy is the right one. This is why objections are commonly raised at this stage.The problem is that if we observe the behaviour of salespeople during this
process, it can be quite negative. The most common thing that happens when a salesperson hears an objection is that they interrupt the customer.
The # 1 Rule don’t interrupt or disagree
If you jump in , interrupt and disagree if a customer says it’s too expensive you are practically telling him /her:
-I’m interrupting you
-You are wrong
-And I will prove it
Most salespeople when faced with an objection tend to react too quickly and don’t ask enough questions. This is a bad tactic since none of us like to be
wrong and all of us hate to be proved wrong. This method, therefore, of responding to an objection with a statement of fact is unwise since it puts the
customer in the wrong frame of mind Rather than attacking our customer's beliefs or opinions we should try to get them on our side. The golden rule should be that, whatever the objection, you should never openly contradict a customer.
It may be that the customer has misunderstood something you have said previously or maybe feels it is his or her duty to question some of your claims
about your product or service in order to test their validity. Whatever the objection and whatever the circumstances the least powerful way to answer a
sales objection is with a statement of fact.
The main process of dealing with objections :
1. Listen to the objection
Resist the temptation of interrupting the customer. You may have heard the objection a hundred times before but not from this particular customer. It may
also be that the customer has more than one objection, or that this particular objection is slightly different than the ones you usually hear.
By listening you show the customer you are interested in his or her problems and enhance your own professionalism. It also gives you time to think of a
way of answering the objection.
2. Clarify the objection
It is very easy in the heat of the moment to mishear what your customer has
said and begin to answer the wrong objection.
So, for example, when the customer says you are too expensive it can mean
different things. The customer could mean:
I've had another quote
I'm checking you out
I'm negotiating with you
I have to go back and convince others
It's more than I expected
It's more than I have in my budget
I don't want to buy from you
It could also be that when you test your understanding of the objection you
find that your customer has another objection that is fairly trivial and can be
handled with ease. To clarify the objection you could say something like:
" When you say we are a little expensive, can you be more specific? "
We then need to probe and find out the real reasons behind the objection,
before moving to the next stage. It could be that by the end of this stage of the
process you identify, for example, they have had a slightly cheaper quote from
a competitor. Once you have enough information it is now time to deal with
the objection.
3. Deal with the objection.
Once you fully understand the nature of the objection then it can be answered
in different ways depending on whether it is
a misunderstanding by the customer
disbelief over claims you are making
a product disadvantage
4. Advance the sale.
The key to objection handling is to react less quickly when an objection is
raised and find out more about the problem. Clarify exactly what the problem
is then try to overcome the objection. Ask more questions.
Finally, if you have dealt with the objection successfully and it is the right time,
close the sale, or move on the next stage of the sales process.
types of objections :
Need
They say that they do not need your product or service for some reason or another, or perhaps have a need that you cannot satisfy.
Examples
I have one of those already.
My car works just fine thank you.
I have no space for any more.
Sorry, I just don't want it.
Price
The objections here are about the price of the product.
Examples
How much??
I have already spent my budget for the month.
Your competitors sell a better product for less money.
I could get it cheaper on the web.
I didn't realize that service was not included.
Features
They object to some element of what you are selling, whether it is aspects of a service or details of a product.
Examples
I don't like that style. It looks rather modern for me.
It does not have the latest gadgets.
The guarantee is only six months.
It is far too big.
It is not good enough quality.
Time
In this, the objection is around time, such as the person not being ready to buy.
Examples
I don't know. I need to think about it.
I won't have the money until next month.
I am moving next year, maybe then.
I need to talk to my manager first
THE STAR/AR FEEDBACK MODEL
Giving positive feedback :
ST(Situation/task) : A customer came into your office today looking upset.
A (Action): You gave her the forms she needed and explained how to fill them out.
R (Result): She thanked you for your help and left looking relieved.
Activity: Identify the STAR Components
“Thanks for helping me with my report when I had to rush to the meeting. I appreciate your delivering it to Sue so quickly and spending time answering her questions. I wanted you to know that she called me back and said she was really impressed with our responsiveness and your knowledge of the project. It looks like she’s going to recommend our department for the job.”
Giving Feedback for Improvement :
ST (Situation/Task) : A customer complained to me about the service he received from your office.
A (Action): Before he could finish, you interrupted him and said there was nothing you could do.
R (Result): He left looking really upset.
A (Action): It might have helped if you had reviewed the circumstances with him, explained why he could not get what he wanted from your office and referred him to the appropriate office.
R (Result): That way, he would have better understood our regulations and felt better about the interaction.
Activity: Identify the STAR/AR Components
“Pat asked for the weekly time-tracking report that was due to her first thing this morning. Without offering an explanation, you told Pat that you wouldn’t be able to get the report to her for another two days. She left the department feeling frustrated that you hadn’t met your deadline and angry that you didn’t even explain why. You might have shared your time constraints with Pat, asked her exactly what information she needed, and asked if you and she could discuss some alternative dates or approaches. Pat would have understood your situation better. Then the two of you could have worked something out, which also would have strengthened your partnership.”
Adapted from Development Dimensions International, Inc. “Interaction Management” series, Pittsburgh, PA
Grow Service Model Based Questioning
Questioning is an essential skill for being able to provide excellenct customer service, follow the below questioning model to identify your customer's exact needs.
1- Goal: Find out your customer’s ultimate goal.
First you need to agree with your customer and clearly understand his/her ultimate goal from this visit/call, what type of service/product is he looking for? So the customer’s specific, measureable, and realistic goal is very clear in your head.
In doing so it would be useful to ask questions like:
• Why are you shopping for a new mobile phone?
• What would you like the new phone to be able to do?
• What problems are you currently having with your mobile phone/service?
2- Reality: Examine the customer’s current reality and situation.
Next you need to find out about the customer’s current situation by clearly understanding what type of service is he getting now or products he is currently using and has used in the past and are there any specific problems he is currently experiencing.
In doing so it would be useful to ask questions like:
• What type of service are you using now?
• Whom have you used in the past?
• How was your experience with the last product/service you used?
3- Options: Explore available options together
Once you clearly understand your customer’s current reality and situation, you need to explore together all the options that can be offered to match both his/her needs & to cover any shortcomings in his current plan/service/product
After explaining all the different options it would be useful to ask questions like:
• Do you agree that our second option would be the most suitable to your needs?
• Do you wish us to customize this option further to better fit your need?
4- Will: Take responsibility and gain commitment from the customer.
By examining the current reality and exploring all available options, both you and your customer will have a good idea of how he/she can achieve the goal, solve the problem or provide the appropriate services. So the final step would be to show your customer that you are committed to the solutions agreed and to get a commitment from the customer that he/she is ready to go for the new agreed options/solutions within an agreed upon timeframe.
In doing so it would be useful to ask questions like:
• Would you like me to go ahead and do this for you right now?
• When is a convenient time for you to go ahead and do this?
• What’s the best time for you to start this process?
Selling to different Personality styles
Types of Buyers we Deal with
We recommend you take a look at our Behavior styles article for the characteristics of each personality style
The analytical buyer
Don’t be pushy
Take your time
Action rather than words
Give details
Stick to specifics – and don’t overstate
Discuss reasons and ask `why?' questions
The amiable buyer
Be friendly
Seek common ground
Find out about personal interests
Be patient
Give personal assurance
Take your time to be agreeable
Focus discussion on `how'
Demonstrate low risk solutions
The expressive buyer
Ask open questions
Keep the pace – don’t make them bored
Keep summarizing
Work out specifics on points of agreement
Try short, fast moving experience stories
Get commitment today
The driver
Be assertive. Use eye contact
Discuss actions and results
Keep it to the facts
Get to the point fast
Tell him what’s in it for him up front
Learn how to say no
Conclusion
People buy differently,…so we should sell to them differently
Determine their type within the first few minutes
Be flexible
Learn to shift
Related Articles
GROW Coaching model
You and your employee will get the most out of a coaching session if you take the time to prepare. Use the worksheet below and the GROW questions to prepare.
Reality Questions:
1. What is the situation now?
2. How is this affecting you?
3. What actions have you already taken?
4. What do you think is stopping you?
5. Do you know other people who have achieved this goal?
6. What is the perception of others?
7. What is working? And what was the effect?
8. What has been your greatest challenge?
9. What did you learn from this?
10. What could you do better this time?
11. One scale 1-10 how severe /serious/urgent this is?
12. what is holding you back from finding a way forward
13. Who needs to know what your plans are?
14. What support do you need?
Goals Questions:
1. What would you want to achieve out of this coaching session?
2. What would you like to discuss?
3. What is your goal for this session?
4. What is the goal you want to work on today?
5. For you to feel this session is useful what do we need to have worked upon today?
6. What do you have at the end of this session that you don’t have now?
7. Why are you hoping to achieve this goal
8. Who else is involved? How will you inform them?
9. What would be of real value to you?
10. How will you measure it?
11. How will you know when you have achieved this goal(s)?
Options Questions:
1. What options do you have?
2. What approach have you considered?
3. What are the pros/cons of your option?
What's the best/worst thing about that option?
4. When do you need assistance? And from whom?
5. What are 3 different ways you could approach this situation?
6. What else could you do?
7. What could be your first step?
8. Who else might be able to help?
9. What do you think I/others would suggest?
10. What would happen if you did that?
11. What is the most challenging part?
12. If you had unlimited time/resources what would you do?
13. What advise would you give others?
14. Which option you feel ready to act on?
15. If you made a list of actions you could take, what would be on the list?
16. How would you prioritize this list?
17. Which option do you feel strongly about? Why?
18. What would you do if you could start again with a clean sheet, with new team?
Will Questions:
1. What approach do you intend to use
2. What would happen if you did nothing?
3. What specific steps would you take next?
4. How would these actions move you closer to achieving your goal?
5. How and when will you do that?
6. What are you criteria and measurements for success?
7. What do you need from me/others to help you achieve it?
8. How will you know when you have achieved it?
9. What are 3 actions you can take this week that would get you closer to your goal?
10. On scale 1-10 how excited/motivated are you to take these actions?
11. What would happen if you don’t do this?
12. When are you going to start?
13. How will you let me know?
14. What can I do to support you?
15. On scale 1-10 how committed are you to this goal?
16. Is there anything else you want to talk about?
Effective Delegation
When Should you delegate? , you should only delegate when the task:
– Is not your strength and someone else has more skill
– Requires a lower level of expertise
– Will take more time that you have and someone else has the time
– Would be a good training opportunity
To delegate effectively you have to follow a proper delegation process, first of all you need to clearly write down the following
Before Delegating make sure you :
1. Identify the task
2. Determine:
a) Who has the skill, ability and time, OR
b) Who is ready to be trained on this task
Identify Delegation Candidates Exercise
Delegation Steps
1. Explain why the job is important.
a) How does it fit with the team goals?
b) How does it contribute to Vodafone’s success?
2. Describe how to do the task and what is needed in terms of results.
a) Invest time and write the results down.
b) Write the results as a SMART goal.
3. Give the person the authority they need to do the job.
a) Allow them to contribute their own ideas on how to proceed.
b) Make sure others know the person has the authority to complete this task.
4. Indicate when the job needs to be completed and get agreement.
5. Check for understanding by asking the other person to:
a) Summarize their understanding of the task, expected results, checkpoints and deadlines.
b) Encourage the person to ask questions.
After Delegating:
1. Follow-up at checkpoints.
2. Give positive and constructive feedback.
3. Make yourself available.
4. Accept risk—avoid perfectionism.
5. Limit standards to what is acceptable and expect a learning curve.
Delegation preparation Activity
In the previous exercise, you identified employees who would benefit from learning new tasks through delegation. Select one of the employees you identified and prepare to practice delegating the new task. Use the space below to prepare for your practice session.
Employee Name:_____________________________________________________________
Task:________________________________________________________________________
1. Why is this job important?
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2. How do you do the task? What results do you want? (Write it as a SMART Goal.)
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3. What authority or materials will the person need to complete the task?
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4. When does the task need to be completed?
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5. When will you check back with the employee to assess progress?
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Sales Training
