The personal selling process consists of creating new customers and maintaining existing customers. Salespeople follow a series of steps in identifying prospects and turning them into customers.
Prospecting: is identifying potential qualified customers. It is the first step in personal selling process. A prospect is a person or business that needs the product a salesperson is selling and has the ability to buy it. A sales person constantly looks for new prospects for two reasons. One is to increase sales. The other is to replace the customers who will be lost over time.
Prospects may come as referrals from existing customers, from suppliers, dealers, etc. Sometimes they come from analysis of public sources such as directories, newspapers, or public activities of the firm. Once prospects have been identified, they need to be qualified or screened to see if they are good prospects.
Pre approach: once the prospect has been identified and qualified the next step in selling process is pre approach. During pre approach the sales person is gathering information to use in the attempt to make the sale. Salesperson investigates the prospect in greater depth and plans the sales call. Pre approach is planning the sales presentation to meet the customer’s wants or to solve the customer’s problem. It involves gathering research about the prospect. The salesperson must determine where the specific target market consumer is in the purchasing process. In the approach, the salesperson meets and greets the buyer and puts the buyer at ease. At this meeting, the salesperson asks some key questions to get some essential information before getting the buyer’s attention and launching into the presentation.
Sales persons should carefully plan their sales call. Although numerous reasons exists for planning the sales call, four of the most frequently mentioned are
- Helps build a salesperson confidence
- Develop an atmosphere of goodwill and trust with the buyer
- Help create an image of professionalism
- Increase sales because people are prepared.
Presentation: the sales opener , or approach , is the first major part of sales presentation If done correctly , it greatly improves the chances of a sales person’s chances of getting the sale. Purpose of presentation is to provide knowledge about the features, advantages and benefits of the product. Telling the product “story” to the prospect, showing how the product will solve a problem for the product. The salesperson must build a case for how the product can serve the needs of the buyer. A need-satisfaction approach involves carefully listening to the buyer’s needs and then clearly explaining how the product can satisfy those needs. Questioning and listening are more important than talking. Presentations using Microsoft’s PowerPoint significantly enhance the professionalism of the presentation.
To do an adequate job in planning a presentation, salespeople must understand the concepts of features, potential benefits, and confirmed benefits. Extensive research by Learning International, a major sales training and consulting firm, concludes that stating features and potential benefits may result in successful sales calls, or at least may lead to a continuation of the sales dialogue on the next sales call. This same research, however, concluded that a far more promising way to achieve sales call success is to seek customer confirmation of potential benefits. According to Learning International, successful sales calls have approximately five times as many confirmed benefit statements than for unsuccessful sales calls.
A feature is a factual statement about a characteristic of the product or service being sold.
Examples of features:
- Bell shaped nozzle on vacuum cleaner
- Daily delivery of Frito-Lay potato chips
- Technical support personnel for a computer system
A potential benefit describes how the product or service may meet a customer need that is assumed to be important by the salesperson. When a customer acknowledges the importance of a benefit to his or her buying situation, it is a confirmed benefit. In selecting specific benefits to be stressed, salespeople should focus on any unique benefits not offered by competition, as long as the benefits are of interest to the prospect. These might include product benefits, along with non-product related benefits such as delivery, extraordinary customer service, or additional sales support available to the customer.
Examples of corresponding benefits:
- Optimum airflow improves cleaning ability
- Retailer can reduce inventory costs
- Assistance in installation, maintenance, and expansion
Handling Objections: theoretically salesperson presentation should show the prospect that the product is required by him and it should be bought Very few presentations end that successfully and very few prospects are that easily convinced Usually prospect will raise objections .Objections raised by the prospect takes a great deal of skill and training. Experienced sales person welcome objections the salesperson must be able to identify the real reasons for an objection, respond to the objection, and overcome it. Objections provide the salesperson with the opportunity to learn more about the customer’s needs and provide information about the product to satisfy those needs. The most difficult prospect is one who does not say anything during the presentation refuses to buy and gives no reason for the decision. The best way to deal with objections is to avoid them by building answers to common questions in to the formal sales presentation.
Closing: closing follows once the objection have been handled. It is at this point that the sales person should ask for order. Unfortunately, many sales persons are too reluctant to close: in fact one study revealed that 50% of salespeople failed to directly ask for the order. The major reason the salespeople are so resistant to close seems to be is fear of rejection. If sales people do not ask for an order they cannot be turned down and thereby they avoid embarrassment or disappointment. However all professional purchasing agents expect a sales representatives to attempt a close. Closing the sale is asking the prospect for an order. The salesperson must be able to recognize the signals that indicate the prospect is ready to close. Successful salespeople learn to time their closing remarks on the basis of signals given by the buyer. These cues can take the form of gestures (Customer nods in agreement, picks up the product and examines it closely) or they can be verbal comments. When prospect makes comments like
“Shipment must be completed in five months?” ”
We like the speed control feature?”
”Do you have custom model in stock?”
Sales person should recognize these comments as signs of interest and shift to closing techniques. These we will discuss in detail in next lesson.
Follow up: is essential to building a relationship between the seller and the buyer. The sales person follows-up to ensure that the buyer received the right products in the right condition at the right time. Any problems or concerns on the part of the buyer after the sale are addressed immediately. The salesperson demonstrates continued interest in the account and a desire to satisfy the buyer’s needs on an ongoing basis.
It is a must that sales should end in follow up; determine if the order was delivered on time, installation OK etc. Also helps determine the prospects future needs. Accomplishes four objectives:
- Customer gain short term satisfaction
- Referrals are stimulated
- In the long run, repurchase
- Prevent cognitive dissonance
Follow up activities are critical to the success of salespeople and sales managers. Customers expect after-sale service and it is frequently the job of sales people to make sure these activities are carried out.
As a general rule when an order is not obtained on the initial call the sales person should express appreciation for the time made available and suggests a later visit. In this way a sales person show continued interest in helping the prospect and in getting the order. When leaving a sales person should inquire if there are any brochures, samples or other information that the prospects needs before they meet again.
Whenever a sales person leaves without an order they should immediately write down what they have learned about the prospect for example What were prospects chief objections , who makes the decision and what are the prospects primary needs. If the sales person made any critical mistake during presentation they should be noted so that they are not repeated in the next visit.
Old school, sell and leave!!—Quickly before customer changes her mind!!
Now:
- Stay a few minutes after sale—reinforce, make them feel good, made wise choice, leave small gift (with co. name on it!!), call office at any time etc!!
- Follow up, reinforce, and know birthdays, new year etc, friendly correspondence…relationship building!!
Salespeople who do not follow up on sales are unlikely to establish long term relationship with customers or secure repeat business. Purchasing agents expects post sale service and it is sales person’s responsibility to see that they remain satisfied.
Compensation
Compensation plans include (1) straight wages or salary, (2) straight commission, (3) wages or salary plus bonus, and (4) wages or salary plus commission. Salespeople receive hourly wages, a salary, commissions, or a combination of wages or salary and commissions. Commissions are usually based on the amount of sales, whereas bonuses may depend on individual performance, on the performance of all salespeople in the group or district, or on the company’s performance. Commissions offer salespeople the opportunity to significantly increase their earnings, but they may find their earnings depend on their ability to sell their product and the ups and downs of the economy. Employers may use incentive programs such as awards, banquets, and profit-sharing plans to promote teamwork among the sales staff.
