Selling as a service
Credit to Author: RONALD GOSECO| Date: Fri, 17 May 2019 17:21:01 +0000
I completed a two-year sales assignment last year running VW dealerships. This was after a hiatus of almost 20 years when I was assigned to run Honda dealerships.
Over the years, I realized that traditional sales techniques have not changed very much.
We still follow the textbook 7-step sales process. This process starts out with:
Prospecting – this is the stage where one finds potential customers and determine whether they have a need for one’s product or service. In auto industry, we prospect through mall displays, auto shows and other contact events. The most promising prospects are usually the showroom walk-ins who have expressed their personal interest in buying our products. We qualify these prospects by evaluating whether they can afford to buy our offers. Oftentimes, we work with banks to determine if these prospective clients will pass their credit score cards.
Preparation – At this stage, we prepare for the initial contact with the potential and qualified customer. We prepare by ensuring we have complete product knowledge of our offerings. We also
have both technical and cost comparisons of our competitor’s products. We develop a sales presentation tailored to our potential customers needs. It is particularly vital to prepare formal presentations before meeting corporate clients.
Approach – We usually employ two approaches when we first come in contact with clients. We ask them questions about their specific requirements and clarify their needs. We ask them about their decision making process, their problems, needs, current suppliers competitors and their aspirations. The last part is crucial as this industry is characterized by emotional purchases and a lot of buyers are motivated by what they aspire to be. We prepare structured questions to identify our client’s buying criteria. The other approach is the product approach where we invite clients to test drive our products. We offer this after we identify their preferred product category.
Presentation – At this stage, we actively demonstrate how our product meets the needs of potential customers. We also demonstrate the distinct features of the product. We point out the various means by which they can acquire and finance our products. We actively listen to what they are looking for and their other requirements. We also promote our after sales or service capabilities. The cost and ease of ownership are usually important decision criteria.
Handling objections – We listen to our clients’ concerns and address them. Successfully handling and alleviating concerns is critical to closing the sale. it’s what separates the most persistent sales persons from the ordinary.
Closing – We get the decision from the customer to move forward. We usually achieve this by providing alternatives like color ( white for visibility, black for elegance, red for vitality, luck and so forth). We ask for their preferred manner of payment and delivery dates. At this point we also announce to clients the impending price increases.
Follow up- Once we close the sale, we keep in contact with the customer for potential repeat business as well as referrals. We also keep in contact with them for their periodic service requirements and other collateral businesses like annual insurance renewals.
These tried and tested techniques have been around for quite some time and even our customers are aware of these sales methods. Our customers expect our sales persons to go through this process or a variation of this process tailor-fitted to address certain requirements. Sometimes this is not enough though.
Most sales persons are quite good in dealing with customers. They can engage and they possess excellent social skills. They are also committed to their personal and organization’s goals and objectives.
They really want to do well and give their customers great service but they commit mistakes.
Sometimes, they have unclear objectives and lack working sales plan. They find it hard to prioritize activities. Prospecting is not given a high priority as they are concentrating on “sure” customers.
They find it hard to deal with assertive buyers especially in determining when to say no. When a customer tells them that our products or services are too expensive or makes a demand that is going to cost money, they need to resist the temptation to immediately agree to a discount.They do not structure sales calls and find it hard to be in control. Sometimes, they simply do not ask enough questions and fail to listen attentively. Sometimes, they fear rejection and fail to close. They try to avoid negotiations and will simply take the side of the customer.
These are common mistakes and some of them could be addressed by a new approach that I chanced upon from a book authored by my wife’s AIM classmate Jojo Apolo. It uses NLP or Neuro-Linguistic Programming which Mr. Apolo applied to sales. NLP is the study of how we think and communicate with ourselves and with others, and how we can use it to get the results we want.
The approach uses a similar 7-step pattern but utilizes NLP to control our own mind and influence our customers. Mr. Apolo’s process starts out with:
State- this is the state of motivation of the sales person when he meets with a customer. Although it is understandable that a person would have good and bad moments, it is important that the sales person recognizes this condition and learn to overcome frustrating thoughts.
Entry – In meeting new customers, this approach uses NLP techniques like matching and mirroring, pacing and leading process that enables building connections with potential customers. This is different from the usual technique that we use to connect which is by finding common topics of interest which some customer have become wary of.
Rapport – We have to speak and determine the language pattern of the customer by using a NLP technique called eye accessing cues, and precise listening to discover the customer’s preferred mode of communicating.
Views – After gaining rapport, we should be able to determine the needs and wants of the customer by speaking in the customer’s mindset.
Influence – We need to learn how to embed action commands mutually beneficial to both customer and sales person.
Closing – This is obviously a common step but Mr.Apolo’s approach will require using persuasive language patterns to enable handling objections without losing rapport. It also uses reassurance anchors or justifications to help the customer feel good about his decision.
Energize- Sales persons have to be continually motivated and energized by celebrating results and anchoring and finding a way to remember these results for future self affirmation.
I have learned during my stint with VW that the old and tested sales techniques are still valuable. It is important to understand though that there are emerging techniques or tools that every sales person should learn to successfully provide sales as a service to potential customers.
Ronald Goseco is a Director of FINEX Foundation
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