M103 ap 01_summary

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M103 ap 01_summary

  1. 1. A HISTORY OF SALES Where do your sales techniques come from? <ul><li>Andrew Priestley </li></ul>M105
  2. 2. Sales techniques didn’t work for me! <ul><li>Using textbook closes and people didn’t buy. </li></ul><ul><li>Flushed out the objections – they wanted it, they needed it and still they didn’t buy. </li></ul><ul><li>So, if I received world-class cutting edge training why weren’t people buying? </li></ul>
  3. 3. Two incidents changed how I sold <ul><li>A client was desperate to sell. My sales manager insisted I had to close (cheat) the deal if I wanted a result. I closed the deal, the house sold and I got paid but I felt lousy. </li></ul><ul><li>I told an agent that a client’s husband had arthritis in the hips so she needed a single level dwelling on a flat block. The agent drove her out to a two-storey home on a sloping block. She was angry. So angry. </li></ul>
  4. 4. These incidents taught me <ul><li>Work for my real client – not for my sales manager . </li></ul><ul><li>Spend time genuinely finding out what my customer wanted and why BEFORE a solution was pitched. </li></ul><ul><li>Even though I began my sales career as textbook accurate the experience was terrible </li></ul>
  5. 5. The history of selling <ul><li>From 1890-1930 an interest in selling blossomed, coinciding with the advent of mass production and an exponentially increasing consumer market. </li></ul><ul><li>That huge consumer market had the ability to spend more and more. </li></ul><ul><li>Average annual income in America 1900: $480 1910: $1500 </li></ul><ul><ul><li>Consumer Price Index and inflation Calculators </li></ul></ul>
  6. 6. The early foundations of selling <ul><li>John Patterson, the father of American salesmanship identified a four phase sequence: </li></ul><ul><ul><ul><li>Approaching a customer </li></ul></ul></ul><ul><ul><ul><li>Demonstrating </li></ul></ul></ul><ul><ul><ul><li>Objection handling </li></ul></ul></ul><ul><ul><ul><li>Closing </li></ul></ul></ul><ul><ul><ul><li>1887, John Patterson How I sell National cash registers </li></ul></ul></ul><ul><ul><ul><li>1947, Frank Bettger How I Raised Myself from Failure to Success in Selling </li></ul></ul></ul><ul><ul><ul><li>1982 Tom Hopkins The Art of Selling. </li></ul></ul></ul>
  7. 7. The development of sales training <ul><li>Patterson identified sales skills and training to match each stage </li></ul><ul><li>Most sales books follow his methodology. </li></ul><ul><li>Some sales books have altered the sequence and call it non-traditional selling, e.g. David Sandler. </li></ul><ul><li>Original sales research peaked in the 1920s. </li></ul>
  8. 8. Sales theory <ul><li>The Hierarchy of Effects </li></ul><ul><ul><li>Buying occurs in a predictable sequence and success lies in understanding behaviour and sequence. </li></ul></ul><ul><li>Attention Interest Desire Action (AIDA) </li></ul><ul><ul><li>Proposed by E St Elmo Lewis, 1898; a theory of selling influenced by the Hierarchy of Effects. It suggests that if you create attention, interest, and desire, your customer will take action. </li></ul></ul>
  9. 9. Sales training during the 1950s-80s <ul><li>Sales training became a legitimate industry with the advent of the baby and manufacturing booms. </li></ul><ul><li>With the advent of Hire Purchase and Credit Finance sales people could legally stitch up a client for thousands of pounds of debt during the 50s and 60s, causing many to lose their homes. </li></ul><ul><li>Who taught them to sell like that? </li></ul>
  10. 10. The computer industry, 1983 <ul><li>Xerox versus IBM, 1983 who had both dominated the photocopying industry commissioned studies into sales training. </li></ul><ul><li>This led to Neil Rackham’s SPIN Selling/ Huthwaite (1986), a focus on what sales people do in the process of a sale. </li></ul><ul><li>He observed that the sales techniques you and I were taught as cutting edge actually reverse as the value of the sale increases. </li></ul>
  11. 11. Dr Edward Kellogg Strong <ul><li>Strong, an applied psychologist, has heavily influenced subsequent sales theories. </li></ul><ul><li>His methodology to review available sales literature: observing and analysing sales’ people, and identifying their key behaviours. </li></ul><ul><ul><li>Books by E K Strong: </li></ul></ul><ul><ul><ul><li>The Psychology of Selling (1925) </li></ul></ul></ul><ul><ul><ul><li>The Psychology of Selling and Advertising (1927) </li></ul></ul></ul><ul><ul><ul><li>The Psychology of Selling Life Insurance (1927) </li></ul></ul></ul><ul><ul><ul><li>Psychology of Business (1938). </li></ul></ul></ul>
  12. 12. Strong is credited with: <ul><li>Further developing AIDA in 1925 </li></ul><ul><li>Closing techniques ( A lways B e C losing) . </li></ul><ul><li>That sales is a numbers game </li></ul><ul><li>To ask open/closed questions </li></ul><ul><li>To develop rapport building skills </li></ul><ul><li>Handling objections </li></ul>
  13. 13. What does Strong get right? <ul><li>Strong identified that: </li></ul><ul><ul><li>there is a buyer focus and seller focus.   </li></ul></ul><ul><ul><li>there are implicit and explicit needs for why people buy. </li></ul></ul><ul><ul><li>top sellers focus on indentifying a buyer’s explicit needs ; poor sellers focus on what they guess the customer wants . </li></ul></ul><ul><ul><li>success is linked to meeting buyer and seller goals. </li></ul></ul>
  14. 14. So what’s wrong with Strong? <ul><li>Hierarchy of Effects theory is not yet proven.   </li></ul><ul><li>No differentiation between value and cost. </li></ul><ul><li>Not focused on how to build real value for services. </li></ul><ul><li>Didn’t qualify what a ‘high’ price was </li></ul><ul><li>There is NO research that supports his idea that strong desire or conviction to purchase actually leads to a purchase. </li></ul>
  15. 15. Factors not accounted for by Strong <ul><li>Length of sales cycle </li></ul><ul><li>The importance of a perceived value </li></ul><ul><li>Relationships – ongoing, referrals etc. </li></ul><ul><li>Customer sophistication </li></ul><ul><li>The tendering process </li></ul><ul><li>Needs analysis/feasibility </li></ul><ul><li>Other environment considerations. </li></ul><ul><li>The role of finance </li></ul><ul><li>The role of after-sales warranties </li></ul>
  16. 16. What’s common to all sales? <ul><li>Opening – rapport building skills </li></ul><ul><li>Needs research – open/closed questions </li></ul><ul><li>Benefits confusion, based on implicit or explicit needs </li></ul><ul><li>Objections – handling or prevention? </li></ul><ul><li>Tie downs </li></ul><ul><li>Closing techniques – trial closes, assumptive closes, alternative closes, either/or closes. </li></ul>
  17. 17. The Sales Skill Profile <ul><li>The sequence of ten sales skills: </li></ul><ul><ul><li>Readiness </li></ul></ul><ul><ul><li>Knowledge </li></ul></ul><ul><ul><li>Prospecting </li></ul></ul><ul><ul><li>Rapport </li></ul></ul><ul><ul><li>Investigating, Qualifying </li></ul></ul><ul><ul><li>Presenting </li></ul></ul><ul><ul><li>Objections </li></ul></ul><ul><ul><li>Closing </li></ul></ul><ul><ul><li>Servicing </li></ul></ul><ul><ul><li>Administration </li></ul></ul>
  18. 18. Sales Systems <ul><li>It is best to train the sales person how their sales’ system works from both the customer and the buyer’s perspectives. </li></ul>
  19. 19. Summary <ul><li>Books, training, research and theory. </li></ul><ul><li>EK Strong played a key role. </li></ul><ul><li>We still lack is a robust theory of selling. </li></ul><ul><li>Many of your ideas may not work. </li></ul><ul><li>There is a sequential order to sales. </li></ul><ul><li>Skilled people with poor attitudes can be outsold by poorly skilled people with great attitudes. </li></ul>
  20. 20. Conclusion <ul><li>Skills, attitudes and sequence strengths can be tested and should be tested. Sales skills should be tailored to sales systems; and the bespoke customer context for your business or industry. </li></ul><ul><li>Sales techniques should be ethically applied and meet compliance with the customer. </li></ul>
  21. 21. A HISTORY OF SALES THIS PRESENTATION IS PROTECTED BY COPYRIGHT. IF YOU WOULD LIKE TO USE OR SHARE IT OUTSIDE THE RIPPLE EFFECT TRAINING PROGRAMME PLEASE SPEAK TO US FIRST. <ul><li>Andrew Priestley </li></ul>

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