Needs based selling training while at American Express Incentive Services.

1. Needs-Based Selling
Cindy Wasowski & Dave Carrithers
October 7, 1998

2. “If I can listen to what he tells me, if I can
understand how it seems to him, if I can
sense the emotional flavor which it has for
him, then I will be releasing potent forces of
change within him.”
- Carl Rogers

3. What Is Needs-Based Selling
Listening and defining the problem first then
developing a solution to the need
More consultative than price
Value, history and knowledge
Steps, processes, experience and results based
Not always a single answer
Starts strategic and moves to tactical
Fluid not fixed

4. Examples
Financial services / estate planning
Insurance
Legal
Health Care
Construction
Technology

5. A Mind-set Change
“A banker interviews customers about their
financial needs and then discusses what
products might fit them. In the past a new
customer might have simply opened a
savings account. These days, customers are
shown ways to add more value to their
savings.”
- Kansas City Business Journal

6. Keys To Success
Find the clients fear, pain, worry, issue, concern
and provide a shield against
Be knowledgeable about their industries and
competitors
Listen, ask question, then listen and ask more
questions
More communications, more interaction
Integrate product solutions into recommendations,
but we are not always the only source of a solution

7. Insight
Take the high road
Strategic thinking to reassess the positioning of
sales to deliver value through higher-end solutions
to targeted customers
Aligning and integrating the functional or process
activities to deliver value through sales
A products vale must be identified, demonstrated,
and delivered by the sales agent not sought by the
customer
Entrepreneurial, value-adding in nature

8. Goal

9. The Right Message
Understand client situation/needs
The right audience
Unveil/unfold the solution over time
The right presentation - customized to your
audience and their industry
Pre-work and follow-up
Appropriateness of response
Value in EVERYTHING we do/say/think/provide

10. Keep In Mind As A Team
Do you treat different
customers differently?
Do you create a
learning relationship
with customers?
Do you keep your
customers?
Do you organize
around customers?

11. Typical Client Needs
Direct Clients
– Getting a distributors sales force to focus on
their products
– Competitive market action
– Poor response to product/offer
– Better understanding of mission and objectives
– Inventory stocking or reduction
– Product launch
– Cross selling
– Honor and recognition

12. Typical Client Needs
AVAR
– Product support and knowledge
– Creative solutions to their client problems
– Fast answers to pricing and product functions
– Presentation support
– Trends and competitive insight
– Leads and awareness building support
– Comfort level and sense of “partnership”

13. Gathering Client Information
Sales Incentive
Program Tool
Employee Program
Tool
Consumer/Customer
Tool

14. Know Thy Competition
Why Non-Cash
– Memorable
– Promotable
– Impact is more
Award Comparison Matrix
Selling Against The Competition
– Their one size solution doesn’t fit all
– What are their hidden agendas
– How easy are their solutions

15. Program Management Basics
Establishing program objectives
Set & manage budget
Determine performance criteria
Develop communications plan
Select rewards
Program administration
Sell program to management/co-funding partners,
participants
Ongoing program evaluation
Celebrate success

16. Program Management Is A
Requirement
Self-administered or
out-sourced
Any participant
audience
Across all rewards
Across all types of
programs
All program lengths
Any budget
Either the client
does it, or a
AVAR or us
(indirectly)
Good Programs Just
Don’t Happen

17. Common Mistakes
Poor design - unmotivating/unfair
Unrealistic goals
Lack of management support
Poor communications, both at the launch
and the follow up
No ongoing evaluation/input
Too complicated

18. Establishing Program Objectives
Tie to company objectives
Must be meaningful, measurable and
movable
Reality based
Keep them simple
Clearly communicate

19. Budgeting
Consider costs Vs projected ROI
Awards should represent 3-5% of a
participant's normal income for long-term
programs (at least 6 months)
Awards should represent 6-8% for a short
term “spurt” activity (60-90 days)
Fixed Vs open budgets - or combination
70% awards; 20% promotions; 10% admin

20. Open-Ended Budget
More motivating to participants
Funded by financial incremental results
Types of structures:
– Awards per unit
– Awards per dollar
– Dollar one
– Over objective (incremental)
– Over objective - retro to dollar one
– Accelerators - graduated earnings
– Top stops

21. Fixed (Or Closed-ended) Budgets
Predetermined, fixed budget
Essentially contests, since not everyone can
win/earn
Types of structures:
– Competitive groups
– Top region, area, person
– Greatest dollar (or unit) increase, % of increase or both
– Break the bank with fixed award pool (creates urgency)

22. Add Bonus Activities
Fast start
On Target
Fast finish
Steps to a sale
Overrides (for managers)
Volume bonus
% bonus
Comprehensive (top performers)
Team
Accelerators

23. Determine Performance Criteria
Establish baselines
Set minimum objectives
Consider item specific objectives
Encourage reach - accelerated earnings
scale

24. Communications
Frequency
Consistency
Appropriateness
Media & production value
Communicate both ways
Events
Clear understanding of rules and rewards

25. Selecting Rewards
Demographics - age, income, location
Lifestyle
Budget
Past history with awards
Diversity
Program length
Required effort

26. Selling To Management
Justify investment (ROI)
Demonstrate accountability
Create excitement
Document it’s what participants want and
need
Share info on other successful programs

27. Program Administration
Collecting data
– enrollment
– Invoice and sales tracking
– Claims
Manipulating data
– Reward calculations
– Targets
Reporting
Participant support/service

28. Program Evaluations
Ongoing
Before a program starts
Critical to continues improvement
Provide feedback mechanisms - data &
attitudes
Do something with the feedback
Analyze ROI

29. Celebrating Success
Budget for it
Make sure it’s motivating
Just do it!