Winning EdgeCustomer Relations SkillsServicing, Selling & Negotiating in the Value Era
Most Common Negotiating Mistakes (Page 14) Not realizing when negotiations Begin Underestimating of ones Power Giving concessions to Early, Often and Easily! Not Preparing effectively, thus failing to understand the other party Allowing the negotiations to become Adversarial Failing to negotiate Internally first Letting your EGO (emotions) get in the way
Most Common Negotiating Mistakes A mind-set that it is Rigid, failing to listen & understand Saying Yes to things that you have not previously thought through Failing to call Time - Out, in the heat of the action Not knowing when to Walk away Failing to recognize when we are Not dealing with a win – win negotiator Ineffective follow- through
Sources of Negotiating Power (Page 12) Fundamental question at hand is … “Who needs who more than who needs who?” 2 fundamentally important sources of bargaining power are … 1. The distinctive value that you have communicated and created … 4 Types Potential types of Value – Place – Produce – Process – Personal 2. The quality of your BATNA or Next Best Alternative
Sources of Negotiating Power The quality of the Relationship you have with the person Your Attitude … Degree of self confidence, personal power The quality of your Preparation … Achieving clarity of purpose & outcome … Clearly Knowing Walk - Away Point Negotiating Skills, Strategies & Techniques learned and developed The use of “objective criteria”
The Customer Satisfaction Equation (Page 3) + + + DeliriousCustomer Value Perception ++ Delighted + DesiredE +/- CVP = Degree of CS No Neutral - Disappointed Customer Satisfaction -- Disgruntled --- Disgusted Expectations
The Fundamental Business Success Principle“Perception” of Value Selling Price Personal Place Value Value Process Product Cost of Value ValueProducing Profit ValueEveryone in the Organization must understand their role in CREATING & COMMUNICATING CUSTOMER VALUE!!
Customer Centered Consultative Selling Status-quo Satisfaction(Page 7) Need Awareness Need Evaluation Information Gathering ? Competitive Evaluation ? ? Concern Resolution ? DECISION Implementation Utilization
Benefits of Asking Questions (Page 8) Allows you to determine where customer is in buying process Obtains info required for effective problem solving and decision making … Vital to your positioning as a “consultative problem solver” NOT sales person Demonstrates your intentions creates opportunity to listen … Both vital to building Trust Involves customer, building commitment to implementation Gives sales person control without being domineering Allows you time to think and strategize during conversation Ask questions in a systematic and professional manner is a humble way to establish credibility
Guidelines to Asking Questions 80% of time should be invested in ________ to your customer Customer’s time is valuable, key is relevance Must be conversational, not interrogation Use open questions, Be wary of asking leading questions, appears manipulative You must earn right to ask increasingly important questions Take good Notes The key is to ask a systematic series of series of questions 1} Situation questions … 2} Gap Questions … 3} Leverage questions … 4} Commitment questions
Situation Questions (Page 9) Open with confirmation Questions Use the 5 W’s to guide you in gathering information Key is to identify what is truly Important to prospect in terms of desired Results / Outcomes and how they measure it
Gap Questions Ideally get them Rate current performance achieving results Purpose to identify or create GAPS between prospect is Now (RESULTS) and where they SHOULD or COULD be PROBLEM GAPS OPPORTUNITY GAPS Customer usually Aware … Our Customer usually Unaware …job is to Identify Our job is to Create New developments, Frustrations, difficulties, areas of benchmarking, areas of growthpoor performance versus goals and potential Ask question that uncover area of Ask “What if” questionsdissatisfaction, frustration or pain
Leverage Questions The purpose of leverage Persuasion questions is to increase to Motivation to change Key is to establish what it will MEAN to the customer … How the prospect will Benefit if we close the gap and what it will Cost if we fail to close the gap Attempt to make the consequences or effects of the gap as Tangible as possible … Monetize
Commitment Questions Questions that confirm agreement to move forward in the process “What our Next Steps?” “Does that make sense to you?” Goal is to surface disagreement, doubts or objections
Speaking so People Listen, Believe, Understand & Remember What You Say (Page 10) “Repetition mother of all Learning” … “3 Tells Model”… Key repeat key messages without appearing redundant! Head is on the far side of their heart! … Must believe that you genuinely care and that you are trying to HELP them! Best way of demonstrating that you care is to prove you understand them Key to successful communication is to be above all else, the key is to be your natural self! Persuasion is a transfer of enthusiasm! Can’t transfer what you don’t have.
Speaking so People Listen, Believe, Understand & Remember What You Say Use Visual aids as much as possible … diagrams, graphs and models. Use real life examples whenever possible Use analogies and metaphors, especially those that conjure visual images! … Vital benefits … Holds interest, saves time, crystallizes understanding and increases retention Tell stories to make your point … Must keep them relevant and short! Be careful not to make yourself the hero of your stories
Speaking so People Listen, Believe, Understand & Remember What You Say Listen with your Eyes to constantly gauge reactions Eye contact is the most powerful method of Connecting and engaging person … The “4 Is” of eye contact … What we want is the first I – Involvement … Beware of - I____________ I____________ I_____________ Vocabulary – Focus on expressing and not impressing! Use plain, straight talk! Big words and acronyms only distract and disconnect When speaking, try to use Vocal variety – vary your pace, tone, volume and emphasis. Use Silence effectively … the “Power of the Pause”!
Competitive Negotiations - Best Practices (Page 13) Be planned and prepared … Know your “Ideal Outcomes” and you “Walk-Away Point” Start high … Build in a buffer in prep to “split the difference” Shut up!!! … Limit info you give, info is power Never say YES to anything you have not previously thought- out Discover other persons “degree of authority” as soon as possible
Competitive Negotiations - Best Practices Tactfully test their facts and opinions! … Use objective criteria when possible … Market value, legal precedent or 3rd party, professional, scientific or moral standards Demonstrate patience … 80% of concessions, agreements and developments happen in last 20% of time If you recognize that someone is using a manipulative tactic – name it! … “You wouldn’t use old tick on me would you?” Get the other person to make first offer Never say YES to first offer
Competitive Negotiations - Best Practices Never give without a Get! Don’t be fooled by “funny money” If you make concessions, make them slowly & painfully When other party makes request for concession or favour - use the wince or in extreme cases, the full-body flinch Don’t overreact to threats and intimidation … Don’t bite those baited hooks …Respond calmly When emotions are running high call for a time-out!
Competitive Negotiations - Best Practices Take good notes! Power goes to person with best notes When threatened or pressured demonstrate “ assertive pacifism” or “verbal jujitsu”… Ask questions and listen! … Stand your ground but don’t fight back Convert resistance, objections and pressure into questions that require discussion Power usually goes to person with the most time … It is vital to discover your counter-parts “time-line” Realize that often “deadlines” can be moved or changed and should be tested by asking the reason for the deadline