The science of selling white paper

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The Science of Selling describes Carpedia Consulting's approach to making the sales process more measureable, and therefore more manageable.

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The science of selling white paper

  1. 1. The Scienceof Sellingopens the The Science of Sellingopportunityto ameasureablesales process Werner Hess A White Paper Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  2. 2. The sales Introduction Newcomers to the sales environment may perceive the sales Newcomers to the sales perceive the sales function to be an activityprocess that somehow comes naturally to some people, whilst others struggle to achieve success.shouldn’t be a The Science of Selling de-mystifies the elements of successfulmystery. It selling and reveals approaches, systems and processes that can be put into place to create a platform for sales success. An essentialshould be a element in this science is that the customer is central to all sales activities. This makes relationship-enhancing processes paramount towell thought achieving sales. The Science of Selling looks at –out, purpose • Needs and value realisationdesigned • Sales systems and processes • Relationship-centred selling and relationship-based conversionprocess that • Key success factors and skills application for enhancing commitment, improving presence, and widening the scope ofdefines how opportunity.the salesshouldexecuted.It’s a simplefact:No apparentneed,No sale!No apparentvalue,No sale! Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  3. 3. Central to the science of selling are the concepts of needs and value. It’s quitesimple; if you are unable to define a specific need with a potential customer, youprobably won’t be selling anything.The challenge with the concept of needs, is that it’s not exactly measureable, so thatmakes it difficult to put a value to how strong your customers needs are! The needscontinuum is a great tool that enables sales people to envisage the strength orintensity of a need along the needs continuum.Introducing the needs continuum… The concept of needs The needs Needs: A need can be described as the difference between an actual and a desired continuum state, while wants are desires to satisfy needs in specific ways that are culturally and socially influenced. The needs continuum: helps measure Low Needs High Needs needs Low perception of needs High perception of needs Low need to act High need to act intensity In sales, the conversation with customers revolves around building a strong perception of the needs, and the need to act Move the needs line from the left to theThe needs continuum starts off “cold” in other words there is a lowperception of needs.It is only through effective exploring that needs may become apparent to potentialcustomers. Many sales people have felt the frustration of simply not gettinganywhere in a sales meeting. The root cause of that is that their customer’s needs are not clearly apparent.Getting to the customer needs, means that the measure of needs intensity will moveto the right on the continuum, until the needs are at a “high”. Customers tend to actwhen the needs intensity is high. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  4. 4. Introducing the value continuum… Customers are unlikely to commit to your offering unless they can see, or at least calculate the value of your offering. They may have a need, but they also have a choice to either live with the situation or they can do something about it, i.e. they can act on the need. The value continuum is a great tool for judging the extent to which your value proposition aligns with the customer’s perception of value. The customer will further check the value in terms of ROI and in terms of other options that he may engage to satisfy the need. Sales people are in essence agents of value!The value The concept of valuecontinuum Value: The quality (positive or negative) that renders something desirable or valuablemeasures The value continuum:the level of Low Value High Valuevalue Low perception of value High perception of valueappreciation In sales, the conversation with customers revolves around building a strong perception of the value Move the value line from the left to the A sale is most likely to happen when both needs and value are high. The customer has a pressing need to be satisfied and he can clearly see and calculate the value of going ahead and buying your product or service. The sales person can use the needs and the value continuum to measure the extent to which the customer is at the ready to buy. Logically, when the needs are high and the value is high, the sale has a strong chance of going ahead. Relationship Centered Selling is based on enabling sales people through skills application, to effectively explore needs and to project the value of buying the product or service. The benefit if the relationship selling approach is that sales people can follow a step-by step selling process that enables them to conclude the deal when needs and value are high on the matrix. The conversion process can successfully be applied to selling in any environment and be personalised to a company’s particular sales environment. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  5. 5. Relationship Centered Selling is a program where sales people can learn the skills of executing the sales process steps successfully. The concept of the sales conversion process and relationship centered selling is highly adaptableAcquisition and customisable to all sales situations.RetentionPenetration The Conversion Process and sales systems Most companies don’t actually have a defined sales process in place, andIdentification rely on sales people to make their own way in terms of knowing where to find customers and how to set up meetings with them. Any opportunity isResearch seen as a good opportunity and often a lot of time and effort goes to waste chasing deals that are not ripe for conversion.Classification Setting up a sales process is much simpler then what most companies can imagine. In the absence of a specific sales process, a generic versionTargeting can easily be modified and changed to suit specific go-to market models.QualificationConversionRegistration The Revenue Eco-System Acquisition System Retention Penetration System Lead Identification System Lead Research Lead Classification Lead Targeting Lead Qualification Lead Conversion Lead Registration Shareholder Value Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  6. 6. What makes this approach specifically effective is that the revenue streams have been defined. We are therefore able to build specific processes for customer acquisition, retention and penetration. The process design for acquisition would normally be different to that of penetration. Introducing measurability of the sales process….The salespipeline Once a process had been established, the execution elements of the process become measureable. Lead identification and researchnot only probably only moves the sale 7% down the pipeline and once a need has been established and the value is clear to the customer, then ahas value sale is qualified and can be seen as being 30-80% complete.to keep This kind of measurability not only makes a lot of sense to the sales person managing the sale through to completion, but it also has greatsales value to the company in terms of quantifying the sales pipeline in terms of number of opportunities and the stages to completion. Mostpeople on sales managers will find the sales pipeline invaluable in terms of planning, controlling and organising sales focus and activity levels.track, it’salso avaluable Sales Process Planning The Sales Process Planning Continuum converted into the sales metrics system:forecastingtool ID Researc Segment Target Qualify Convert Register h 3% 7% 10% 20% 30--------80% 100% Now converted into measurable Pipeline Goals Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  7. 7. The complex meeting system is the most criticalThe Golden Hour – The part of the salescomplex meeting system process ….Sales people often refer to sales meetings with customers as the It is also the part of“golden hour” and it is indeed in the sales meeting where therubber meets the road and the opportunity is either movedforward to the next step in the sales process, or it falls flat and the process wheregoes nowhere. Not only a lost opportunity, but also a wastedactivity! sales people areIn general, sales managers underestimate the power of being least prepared forprocess ready and being able to use effective communicationskills to move the sale forward. The complex meeting system is a effective execution!systems focused tool that provides a framework for structuring allthe key meeting steps needed to successfully execute the sale.In essence the complex meeting system needs to be underpinned by a relationship focus inorder to manage the sale with the best interests of the customer in mind. The system as wellas the process skills needs to be relationship centered.Introducing Relationship Centered Selling….We talked about needs and value earlier in this white paper and how sales people shouldhave the skills of uncovering needs and projecting the value of their offering. In structuringrelationship centered selling, the needs and value continuum forms the basis on whichCarpedia Consulting built the structured meeting system.The essence of relationship centered selling is to keep the customer in control of where thesale is going (without the customer actually being aware of it!). The sale is broken down intodefined process steps which again are measureable. The logic applied to the process issuch, that the customer feels in control of the sale and removes elements of “features andbenefits punting” from the process. The relationship centred selling system is also structuredin a way so that sales people can use it as a framework, injecting their own style and contentinto the mix.Sales people detest using a sales methodology that is rigid and makes them come acrossstiff and rehearsed. Relationship centered selling provides the framework for setting up theprocess so that both the customer and sales person can advance the sale using logical Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  8. 8. Sales peopledetest sales process steps and relaxed communication techniques. In fact the process very effectively uncovers customer’s needs and helps the sales person project themethodologies value of uncovering the needs sets effectively. In fact we like to talk aboutthat make customer conversion rather than selling!them appearrehearsed andstiff – The complex meeting system – Relationship Centered SellingThey wouldmuch ratheruse aframework, High Valueand inject theirown Concludingpersonalityand content Negotiatinginto thesystem! Presenting Projecting Exploring Positioning Connecting Low Value High Needs Low Needs Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  9. 9. Critical Success Factors Providing sales people with a structured sales process, using well defined sales systems and being able to navigate the complexities of a complex meeting may not necessarily guarantee sales success. Success is defined by the individual. Attitude, behaviour and skilful execution. Introducing the success matrix…AttitudeThe success matrix has attitude, behaviour and skills at its foundation. Having awinning attitude that says “can do” and approaching the world with dynamicenthusiasm and the will to succeed lies in the hands of every sales person. Whileattitude is deeply ingrained and can’t easily be changed, behaviour can be changedtomorrow!BehaviourBehaviour is simply putting attitude into action. At its foundation, behaviour is allabout having clear goals and objectives. Clear goals (written & committed to) arewhat keeps the individual on track and results focused. The further elementarybehavioural aspect that applies to sales, is to develop a plan to realise the goals and Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  10. 10. objectives. The planning phase should define high value segments and quantify thenumber of meetings required to reach the goals. Finally, the plan should include aclear action plan to drive execution.Skills & KnowledgeHaving the right attitude in place, and engaging in a defined planning process willonly lead to success once sales people are able to apply knowledge and skills to theinterface, in order to convert customers successfully.Knowledge amounts to the sum total of what is known about the market place,products, competitive offerings, and sales policies and procedures. Skilful applicationof the conversion process (relationship centered selling) is the final element thatensures individual success.Sales people capable of combining a great attitude with skilful execution, leads to theall elusive quality of presence being nurtured. When combining skills with behaviour,more and more opportunities will open up, and finally, being able to combine a greatattitude with the right behaviours will lead to the level of commitment required tosucceed.CoachingCoaching is perhaps one of the most critical elements insales effectiveness program implementations. Havingachieved a fairly high degree of measurability in terms ofthe systems, processes and skills development, the No less than 4opportunity is now there to make coaching work, coaching sessions areremoving some of the subjective elements from thecoaching process and replacing the subjective with required in the 14quantifiable measures. week period afterCoaching is a key management imperative providing theopportunity not only to get out into the market, but also in training or learningterms of measuring go-to-market model execution. decay will be 80%!Managers should take the opportunity to engage witheach sales person in a coaching mode, at least every Don’t waste moneyquarter and use measureable coaching tools to assessprogress. on training, if you are not serious about coaching! Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  11. 11. About Carpedia Consulting…Carpedia Consulting is an internationally relevant management consultancy firm, dedicatedto assisting clients to improve sales and profits through the implementation of improvementprograms. Our approach is what makes us unique. The way we design, develop and executeour programs is hands-on, solutions-based and excellence driven.Our programs are customized to the needs of your organisation and are designed to ensuresignificant and sustainable improvements are made both internally and externally – by thesales team, for the customer.www.carpedia.co.zaAbout Werner Hess…Werner Hess has spent 20 years of his career in various sales, marketing and leadershippositions with Bayer, Triad Electronics, GE and GE Plastics before serving as managingdirector of GE Plastics and Polymerland. Werner’s first experience in the world of consultingcame about when he joined Proudfoot Consulting as Director of Business Development,which included several international assignments in Europe and the USA, leading saleseffectiveness projects for global clients. Werner’s current company, Carpedia Consulting isa specialist niche consultancy focused on sales and profit improvement.Werner’s latest book, The Science of Selling has just been published and revealsapproaches, systems and processes that can be implemented to create a successful salesplatform.Werner can be reached on: whess@carpedia.co.za Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling
  12. 12. Carpedia Consulting (Pty) Ltd PO Box 1701 GALLO Manor 2052 Building 2 Country Club Estates Woodlands Drive Woodmead Sandton South Africa Tel: 27-11 – 258-8813 Fax: 27-11- 258-8511 Mob: 27-82-888-0228 Email: info@carpedia.co.za www.carpedia.co.za The Science of Selling is the essential, must-have handbook for all sales people, in any industry, regardless of one’s level of experience. Use this book to sharpen your approach and sales skills even further to maximise your performance and exceed your sales targets!Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – The Science of Selling

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