By: Mark Chodosh
Introduction
The principal mission of a salesperson is to gain a commitment.
Would you believe that over half of salespeople make sales calls without attempting to gain a commitment?
Every sales call should have a commitment objective. Getting a commitment (Agreement) is essential to moving the process to get an order.
This article will outline a step-by-step process to help improve closing deals for salespeople.
Consist Sales Process
When a consistent sale process is used, salespersons know when and how to gain commitment through each sale milestone. But remember, the sales game is not only about organizing and planning; it's primarily about getting results.
Don't kid yourself with busy work. Get in front of customers who can buy your product. It's about being efficient and effective with your time. To help you plan your time, consider the following facts when considering priorities.
To help understand, let's classify customers into current and new and add to the matrix current products versus new products.
Studies show a relationship between the ease of obtaining an order versus the time spent. There are percentages of success related to each of these elements.
Current Customers New Customers
Current Products 90% 75%
New Products 50% 25%
In other words, when you focus on obtaining orders for existing products from existing customers, the likelihood of getting an order is much greater than working on new products with new customers.
That's not to say you focus on easy orders because new products and customers are the future business's lifeblood. But it would help if you kept it in perspective.
Based on these proven industry averages, where do you spend your time?
8-Step Funnel Process to Closing Deals for Salespeople
Steps>
Step 1: Qualify Potential Customers
Step 2: Develop Leads
Step 3: Prepare for the Sales Call
Step 4: Prepare a Value Statement
Step 5: Engage the Prospect
Step 6: The Presentation
Step 7: Commitment
Step 8: Follow Up
To be effective in selling, you must adopt a process. This selling process can be described as a funnel. You start with a large potential base, but at each step, you get a commitment to proceed or eliminate the potential client as a candidate.
The funnel forces the process, helps you be realistic about your prospects and guides you to the next step.
Step 1. Qualify Potential Customers
Qualified Suspects are individuals/companies who could use or currently use the goods/services like what you are offering.
Finding qualified suspects requires a disciplined effort.
There are many sources for Lead Generation (Qualified Suspects), including:
Advertising
Online (website, search engine optimization, pay-per-click ads)
Email
Social media
Client referrals
Trade Shows
Direct Mail
PR
Phone/cold calls
In-person networking
You should assess which ones work best for you and learn how to use them. But any of the above can be helpful.
Step 2. Develop Leads
The initial contact with the suspect is critical. You need to gather facts about the potential client and find the appropriate person to contact.
Think through your questions before making contact. You must carefully prepare your questions, and they must lead to an objective. Things to consider:
Content and timing: Effective questioning involves knowing what questions to ask and how to ask them.
Plan before the call: Identify the gaps in the customer's business you need to understand. Go into each sales call with the intent to learn.
Lines of inquiry: What is the customer's business? What is preventing the customer from moving forward? What motivators influence the buying decision?
Don't hold an inquisition: Try to obtain the info you need over a series of meetings. Pick one or two lines of inquiry for each call.
Listen first, then ask: Consider what the customer said, then decide where you want the conversation.
Invite customers to speak their minds: Rule of thumb: every question should be open-ended. Begin by asking How, What, or Why.
The effectiveness of your questions will determine if you meet your sales objective for this contact. Success is achieved if you can develop a meeting to follow up.
Step 3. Prepare for the Sales Call
Next, it's time to prepare for the sales call. Things you need to consider:
Send an outline of the agenda before the meeting.
Prepare a value statement (see below).
Bring all materials, brochures, etc.
Determine the call's goal, what you need to discover, and the next step.
Learn about the customer and the company.
Step 4. Prepare a Value Statement
First, ask yourself, "Why do customers buy from one supplier versus others?" The answer is that they buy based on perceived value.
Studies show that the most successful salespeople offer unique value. They establish a difference in value unavailable elsewhere, a difference that is compelling to the buyer.
In determining how you develop different and compelling values, you have two choices:
provide lower cost but equal benefits, or
provide excessive benefits at the same cost.
Which direction do you want to go?
As part of your decision, you need to determine which type of benefit the customer values more. This understanding will help direct you toward low-cost or value-added routes.
This analysis will shape your proposition to the client as a value statement.
Your value statement is the most critical element of the selling process. It should explain why the potential client wants to buy from you. It must include three key elements:
1. What value do you bring?
2. How is it relevant to the buyer?
3. How is it different from the competition?
Another way to say it is that the value statement/proposition must hit the customer's hot button. Examples can include:
Improved product quality
Reduced (just in time) deliveries.
Improved distribution, quicker response time
Lower costs within the value chain
Lower prices – but remember, the competitor can lower their prices too.
Determining what the customer values can be learned through questioning, e.g., "If you had a preference, what would you pick, lower cost or improved benefits?" Or, "What is the one thing you need but are not getting from current suppliers?
A good value statement (e.g., a salesperson selling at-home physical therapy?) says: "We relieve your pain when others cannot. Affordable personalized treatment in your home by qualified professionals. "
A compelling value statement differentiates you and solves a problem. What is the client's primary need, and how can you uniquely fill it?
Step 5. Engage the Prospect
Now that you have determined the individual or company needs your goods and services, you are ready to move to the next step.
Stay home if you do not have a plan before going into this meeting.
Among your goals at this stage is learning about the company.
Names decision-makers.
Their business goals.
Their business challenges
Their process for adding a new vendor
Their decision-making process
The time frame for purchasing decision
What are their filled and unfulfilled needs?
Determine potential deal breakers
Specifics of their product/service needs.
What does a win-win look like to them?
What are the deficiencies of current products/services?
What support do they require after the sale?
To the extent you can learn information during the initial contact, you can better tailor your presentation as follows:
Prioritize prospect's needs.
Talk about features and benefits.
Verify each need before moving on.
Establish better rapport.
CAUTION! 95% of salespeople talk too much and listen too little. Talking too much, presenting too soon, and winging it have grim consequences. It's critical to learn when and how to establish rapport, present the company and its product, ask for commitment, and follow up.
An entire sales career's success is based on developing and practicing a well-defined road map that sets up the sales presentation at the right time—when the customer wants to hear it.
Be aware of the client's buying decision process to increase your chances of a sale. Coordinate what you say and when you say it with the buying decision. All too often, the salesperson gets in front of the customer's buying process, and a sale is lost.
Step 6. The Presentation
The presentation should focus on the unique benefit the client will gain from the product or service.
During the previous discussions, you should have defined this benefit and now be able to match your product's benefits to the client's needs. Ideally, it would be best to go into a presentation clearly understanding what benefits the client needs and how you can match those needs better than anyone else.
Other things to consider in the presentation are:
Avoid talking only about features.
Include relevant examples of success with other customers.
Never knock the competition.
Thoughts regarding questioning:
Empathy and listening are crucial.
Understanding body language is important.
Understanding the most substantial need or benefit is essential.
Buyers usually have one primary need or benefit. What is it?
As you go through the presentation and ask for information about the client's needs, you WILL GET OBJECTIONS as you begin to close the order.
Getting objections is good news. This means the client is interested but not yet satisfied with the idea they want to buy. Objections are your best friend. How you handle the objections will significantly impact getting the order. So, get ready. How to handle:
Listen to the entire objection – do not interrupt.
Pause for 3 seconds before responding.
Remain calm, not defensive.
Meet the objection with a question to find out more.
Restate the objection to make sure you understand.
Answer the objection using facts.
NEVER try to overcome an objection by saying negative things about your competitor.
Don't use the word "but." It's confrontational.
Step 7. Commitment
Now, the good work you have done begins to pay off. The buyer is prepared to make a buy. Gaining commitment is critical, and you need to make a close.
To have a successful close, you need to:
Have the customer identify objections or problems your product or service might solve.
Have the customer identify the value of solving these problems.
Get agreement; the proposed solution provides the values identified.
Close with something like, "Would you like to go ahead." In many cases, the buyer will close the deal for you.
Ask for the order.
Know when to stop.
Most customers have a buying process they follow. The buying decision process usually takes the following steps.
Salesperson: The buyer must feel comfortable with you. You need to create creditability and trustworthiness. You should emphasize your experience and knowledge of their product, industry, and company.
Remember, you are in the people business. Your customer wants to be treated personally. Getting attention and maintaining the buyer's interest is a challenge.
Before making a sales call, remember that the client is unique and deserves respect. Work on establishing your creditability. Promote your experience, product knowledge, customer knowledge, and how you present yourself.
Company: you must promote your company's abilities, success, and reputation.
Product: product knowledge is critical, particularly in solving customer needs.
Price: You need to equate price versus value. Either offer equal value at a lower price or better value at a similar price. You must decide which strategy to take; these are your only competitive choices.
Finally, and perhaps most importantly: you must understand the customers' needs, separate those not being filled, and help the client know how you will uniquely fulfill them.
Bingo, if you do the above, you will get an order.
Your ability to create comfort around these decision-making processes will impact your ability to get an order. If you have failed to develop comfort, you will probably not get an order. Period!
Step 8. Follow Up
Selling current products to current customers typically generates a 90% success rate. Sales to new customers or sales of new products are less successful, consume more time, and cost more.
This time-cost relationship suggests you must work on current customers first and then sell a new product or prospect to new customers when you have time.
So, what guarantees we get the next order from our customer? FOLLOW UP!
Actions by the seller to ensure customer satisfaction are key. Activities to consider include:
A thank you letter
A request for referrals.
A schedule for follow-up calls and training
Requesting follow-up items to keep the relationship strong.
2 Questions to Ask Yourself Regarding How to Measure Your Sales Performance
1. What actions in the sales process do you need to improve to impact your selling skills significantly? What will you do to improve?
2. What metrics are important to you in measuring performance and effectiveness?
Average deal size: Are you spending too much time chasing too small orders?
Cycle time: The number of days to obtain an order. Does it sit in the funnel too long without your attention? By spending time upfront in the sales process to establish value, you have the leverage to move the process forward more quickly.
Conversion rate: Are you doing an excellent job of selling value? If the order conversion rate is low, you must reconsider your approach.
Do the Uncomfortable Thing
The best salespeople are willing to risk everything. They believe inposition and are committed their value pro to providing unique value.
They are eager to get in front of demanding customers, ask the hard questions, and go for the close. Doing the uncomfortable thing is where top performers live.
Make a list of the most challenging prospects and develop an attack plan. As they say, "You can't bring home the big fish without getting into the deep water where the big fish swim.
What makes sense to you?
Additional Resources
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