SELLING:
The
simplest way to think of the nature and role of selling (traditionally called
salesmanship) is that its function is to make a sale. This seemingly obvious
statement disguises what is often a very complex process, involving the use of
a whole set of principles, techniques and substantial personal skills, and
covering a wide range of different types of selling task.
The term selling encompasses
a variety of sales situations and activities. For example, there are those
sales positions where the sales representative is required primarily to deliver
the product to the customer on a regular or periodic basis. The emphasis in
this type of sales activity is very different from the sales position where the
sales representative is dealing with sales of capital equipment to industrial
purchasers. In addition, some sales representatives deal only in export markets
whilst others sell direct to customers in their homes. One of the most striking
aspects of selling is the wide diversity of selling roles.
IMPORTANCE
OF MODERN SELLING
The sales team is one of the most important
aspects of any modern business, but far too many companies are using outdated
sales techniques to try and create new customers or make a bigger impression on
their current clients. These old methods of selling were at their most popular
in the eighties, when the competitive culture meant that the client's were way
down the list of priorities when it came to making a good sale. As modern
businesses have tried to increase the number of people using their products and
services, so it has become clear that a new set of sales management skills are
required for the current client.
The modern client has different expectations
of how they will be handled by the sales team, and if they do not like what
they are receiving from one business, they feel perfectly free to move
somewhere else. The rise of the internet has lead to customers having a wider
range of choices than ever before, and this means that modern companies can no
longer rely upon the sales techniques of previous decades. In order to ensure
that you get the most out of any sales campaign, it makes more sense to try and
improve the sales management skills of your team before they start trying to
develop new business.
One method of improving the sales techniques
of the team is to introduce them to modern selling skills. These include
respecting the client, and learning how to present the company in the best
possible way. The principle of this learning is that the client is the centre
of the sales team, and the seller must be prepared to put the potential
customer first during any sales negotiation. These newer skills mean that the
seller learns how to develop a modern and professional style when it comes to
opening up new areas of sales, and developing a strategy that allows them to
reach out to new customers and those interested in the company's products or
services.
In order to learn new sales management
skills, the sales team must adjust their whole world-view, the world view which
has put the sale on a pedestal, and instead focus upon one which is more
centered on the client. The seller will learn how to engage the client during
negotiation, and manage them by addressing their needs and wants. By presenting
the company's products as the best option, including focusing upon unique
selling points, the seller will be able to bring the client around to the sale
easily and in a positive manner.
CHARACTERISTICS
OF MODERN SELLING
Today,
a sales force must have a wide range of skills to compete successfully. Gone
are the days when salespeople required simple presentational and closing skills
to be successful. Today selling requires a wide array of skills, which will be
identified in the next section. In this section we discuss the characteristics
of modern selling. Salespeople who do not understand these characteristics will
be ill-equipped to tackle their jobs. The characteristics of modern selling are
given in Figure 1.1.
1.
Customer retention and deletion:
Many companies find that 80 per cent of their sales come from
20 per cent of their customers. 80% sales normally come from 20% of customers
(Jobber and Lancaster, 2006). Therefore, it is vital for a company to focus on
the 20% customers that generate more sales rather than the other customers that
make small purchases. This is because servicing and distributions costs for
small customers normally lead to revenue reductions.
2.
Database and knowledge
management: The modern sales force needs to be trained in the use and
creation of customer databases, and how to use the internet to aid the sales task
(e.g. finding customer and competitor information). In the past salespeople
recorded customer information on cards and sent in orders through the post to
head office. Today, technological advances such as email, mobile phones and
video conferencing have transformed the way knowledge is transferred. Laptops
mean that salespeople can store customer and competitor information, make presentations
and communicate with head office electronically. Furthermore, information
supplied by the company, such as catalogues and price lists, can be held
electronically.
3.
Customer relationship
management: customer relationship management requires that the sales force
focuses on the long term and not simply on closing the next sale. The emphasis
should be on creating win–win situations with customers so that both parties to
the interaction gain and want to continue the relationship. For major
customers, relationship management may involve setting up dedicated teams to
service the account and maintain all aspects of the business relationship.
4.
Marketing the product: the
modern salesperson is involved in a much broader range of activities than
simply planning and making a sales presentation. Indeed, face-to-face
presentations can now sometimes be replaced by information presented on web
pages and by email attachments that give the customer up-to-date information on
many topics more quickly and comprehensively, and in a more time-convenient
manner than many face-to-face interactions. The role of the salesperson is
expanding to participation in marketing activities such as product development,
market development and the segmentation of markets, as well as other tasks that
support or complement marketing activities such as database management,
provision analysis
of information, and assessing market segments.
5.
Problem solving and system
selling: much of modern selling, particularly in business to business
situations, is based upon the salesperson acting as a consultant working with
the customer to identify problems, determine needs and propose and implement
effective solutions. This approach is fundamentally different from the
traditional view of the salesperson being a smooth fast-talker who breezes in
to see a customer, persuades the customer to buy and walks away with an order.
Modern selling often involves multiple calls, the use of a team-selling
approach and considerable analytical skills.
6.
Satisfying needs and adding
value: Some customers might even do not know what their current needs
are. Therefore, a sales person’s responsibility is to be able identify those
needs and comes out with a solution to satisfy the needs and add value to make
consumers delighted. For example, a machine in a factory could be out dated. A
newer version is much better which brings high productivity at lower costs.
Hence, a salesperson could promote this machine by emphasizing the benefits
sought.
MODERN
SELLING IN BANGLADESH
In Bangladesh context,
we can see that there is very little effort that company gives in modern
selling techniques. Most companies rely on traditional sales skill and as a
result there is very little flourishment in this sector. But, now-a-days
companies try to implement modern selling tools and techniques and provide many
benefits to sales people, which have a positive impact on the sales job and as
well on the sales of the company. Companies now recognize the importance of
modern sales tools and techniques and implement them in their production to
marketing system.
SUCCESS FACTORS FOR PROFESSIONAL SALESPEOPLE
Akey
issue for aspiring and current salespeople and sales managers is an
understanding of the key success factors in selling. A study by Marshall,
Goebel and Moncrief (2003) asked sales managers to identify the skills and
knowledge required to be successful in selling.
The
top ten success factors in selling
1.
Listening skills
2.
Follow-up skills
3.
Ability to adapt sales style from situation to situation
4.
Tenacity – sticking to the task
5.
Organizational skills
6.
Verbal communication skills
7.
Proficiency in interacting with people at all levels within an organisation
8.
Demonstrated ability to overcome objections
9.
Closing skills
10.
Personal planning and time management skills
TECHNIQUES
IN MODERN SELLING
The
joke goes that a good salesperson could sell sand in the desert. In other
words, people will buy what they don’t need if the salesperson is persuasive
enough. A successful selling technique is a complex blend of methodical
approach and the application of psychology.
The
salesperson needs a special combination of personal qualities and trained
skills. A traditional methodical approach to selling is to divide the
process into logical steps. It is usually split up into seven steps which are:
1.
Planning and preparation
2.
Opening
3.
Questioning
4.
Presentation
5.
Overcoming objections/negotiating
6.
Closing
7.
After-sales follow-up
In
planning a sales campaign, we should first learn as much as possible about our service
and product: It is important to be able to describe its features and its
benefits to a potential buyer. We also need to know about any products and
services that form chief competition so that we can decide what advantages
salespeople’s company have over the others on the market.
If
selling to an organization, salespeople need to know who makes the buying
decisions and what their current needs are: It will
also be helpful to gather as much information as possible about their
strategies, budgets and buying patterns. This is the kind of information that
is essential to enable salespeople to put together a presentation that
addresses their specific needs.
Salesperson’s
sales presentation might be a formal one delivered to a group, at a conference,
for example, or something more informal to show an individual. It will need to
be professionally organized with appropriate aids and handouts. In opening
sales presentation it is needed to be confident and enthusiastic.
Questioning
is a key tool in finding out how product or service can benefit the customer
and how salespeople can develop the sale. Questioning
helps build rapport as well because selling is all about establishing a good
relationship. People prefer to buy from those who take the trouble to find out
what the customers really need and to understand the concerns and constraints
they have. Open questions (who/how/what/where/when) are useful for information
seeking. Salespeople may also need to encourage people to tell more by
reformulating what they said or echoing their last comment. This can be a more
effective strategy than asking a “why”
question.
The
sales presentation stresses the benefits the customer would obtain from buying salespeople’s
goods or services. It has to show that in buying from salespeople, the customer
will be able to satisfy his or her main needs. The presentation will vary
therefore from prospect to prospect and will be driven by the information
obtained through questioning.
One
well-known brand of cosmetics sells its beauty products by targeting a woman’s need
for self-esteem, with the tagline: “because you’re worth
it.”
The
professional salesperson will, therefore, always keep in contact with the
customer to see that all the conditions are being met.
The long-term aim of selling is not just to sell one item but to cultivate a
loyal customer. If the follow-up phase goes wrong, salespeople will lose that
long-term relationship and the goodwill that could generate more business by a
satisfied customer spreading the word.
A
number of acronyms are used in selling to simplify some of the key concepts:
FAB, USP and UPB (Features Advantages Benefits, Unique Selling Point, and
Unique Perceived Benefit). The principle of the FAB is that customers
buy what the products feature and advantages of purchasing the product which we
also call: the benefit. The USP is what sets one product or service apart from
all products of a similar nature. In the vacuum cleaner market, one famous
innovative model used no bag or filter and quickly gained a market share on the
strength of this.
On
the other hand a UPB is customer-oriented. If the salesperson knows the
market sector well, then it should be fairly easy to predict the group’s UPBs. A
really expensive encyclopedia was sold successfully for years to families with
young children because of the perceived educational benefits it offered. The
working mother will see time and energy saving as a great benefit, while a
young single man might be more concerned with what a product does for his
image.
The
use of the FAB and the UPB is psychologically clever in other ways, too. Benefits
are very personal. If salespeople sell on the strength of a USP, the customer
will find it easy to make comparisons with the competition. Although the USP
might be enough to persuade them to buy, they might not see it as vital and
could go for something less advanced but cheaper. But the FAB and UPB are
difficult to ascribe a clear value to and it may be less obvious how the
competing products and services match yours.
Another
acronym used in selling is AIDA: attention, interest, desire,
action. The steps of AIDA are used to gain the receivers attention, to create
and hold the receivers interest, to arouse desire, and to motivate the desired
action the purchase.
The
application of psychology to selling has resulted in other techniques such as
consultative selling, which involves deeper questioning of the prospect about
organizational and operational issues that can extend beyond the product
itself. This leads to greater understanding of the customers wider needs and
the questioning process results in a greater trust, rapport, and empathy
between salesperson and buyer. The 'needs-creation' selling approach is an
example of consultative selling.
Here
the sales-person seeks to identify and then enlarge a particular need, problem,
challenge or issue that a potential customer faces. The consultative aspect
lies in the salesperson's ability, experience and expertise, to consult with
the buyer in developing a solution that the sellers organization can supply.
This kind of selling is especially suited to certain fields such as insurance,
mortgages, even holidays, where the needs of customers are very personal. It is
also vital when selling services to other businesses as needs will be complex
and unique to each organization.
Modern
selling still requires a methodical approach as exemplified in the seven steps
but the sellers job is very subtle nowadays. The seller has to help people
understand what their systems or lifestyles require in order to change for the
better, then help them discover how to solve a problem or fulfill a need. By
matching the buyer's unique buying criteria, the seller becomes an advisor and
is uniquely positioned to work on behalf of the supplier.
4 Keys to Modern Selling Negotiations
Negotiating
is a working partnership to achieve a long term mutually satisfying agreement.
Whilst there are specific skills one needs to develop to master the Transparent
Negotiation process there are also four (4) keys that if applied correctly will
ensure you master Transparent Negotiations every time.
Transparent
Negotiations requires sales professionals to develop these skills
1)
Listen
actively
2)
Acknowledge
what is being said - give feedback
3)
Speak
so as to be understood - speak concisely
4)
Speak
only for a purpose.
The
four (4) keys that unlock the Transparent Negotiation process are
1)
Planning - Ascertain what is it
that you want to negotiate about, be very clear about the specifics here. Set a
clear agenda. Create the right environment this will play directly on the mood
of the meeting and determine whether a collective decision or agreement will be
reached.
2)
Gather
data using negotiation strategies. Display
patience, courage, discipline and focus as you work with your client to
identify areas of agreement, potential blockers and ways in which you can frame
solutions. Where possible, point out the opportunities that are there NOW.
3)
Get
feedback & handle objections -
The trial close, really narrow down on the details as they relate to the whole
deal - It is a non-threatening way to get feedback on how the prospect is
thinking and what their intentions are. Settling the details is extremely
important. If feedback is not listened to and objections are not discussed
there is a high risk that the negotiations will collapse. Objections are a sign
of interest so, take your time with your client to work through and address the
details efficiently. When each objection is discussed you have reached the
turning point. People do not buy products or services; they buy solutions to
their problems. The turning point in the negotiation process is when you
unravel their problems and agree on the central issue.
4)
Follow
Up - Now
that you have agreed on a deal, care for your customer - Once you have a
customer, you have to do everything in your power to keep them your customer.
Transparent
Negotiation skills are a critical skill in the Modern Selling Client Management
process. Unlocking these four (4) keys will help you pre-empt, identify and
address roadblocks that occur throughout the modern sales conversation that may
inhibit "go forward".
Modern Selling skills
Modern selling professional become exponent of their
profession by adopting all seven Modern Selling Skill. It is a philosophy that
totally alleviates for someone in sales, the single greatest personal inhibitors
to their sales success worldwide.
v Modern Prospecting:
Skill of finding new business opportunities within existing and non existing
account – either face-to-face or on the telephone (inbound & outbound)
v Modern Customer Centric Pacing: Skill of building professional intimacy. The art of
authencity aligning with a client.
v Modern Probing: Skill of
clearly identifying through intelligent sophisticated questioning strategies
what a prospect/client wants, needs, desires and why.
v Modern Presenting:
Skill of emotionally connecting with customers through the utilization of
innovative presentation methodologies.
v Transparent Negotiations: Skill of pre-empting, identifying and addressing
roadblocks that occur throughout the sales conversation that inhibits “go forward”
v Ethical Closing: A
natural conclusion to the modern selling process. Based on an authentic and
transparent client engagement, often all you have to do is ask. The challenge
of course is knowing, when and how to.
v Authentic Relationship Building: Skill of developing relationship based on genuine
emotional connectivity between two business entities. Salesperson’s and client’s. The goal is not
only make them a customer but to make them customer for life.
