Selling process and managing sales information


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Selling process and managing sales information

  1. 1. Selling Process & Managing Sales Information
  2. 2. Some Traits of Good Salespeople
  3. 3. Steps in the Selling Process Step 1. Prospecting and Qualifying Step 2. Pre-approach Step 3. Approach Step 4. Presentation/ Demonstration Identifying and Screening For Qualified Potential Customers. Learning As Much As Possible About a Prospective Customer Before Making a Sales Call. Knowing How to Meet the Buyer to Get the Relationship Off to a Good Start. Telling the Product “Story” to the Buyer, and Showing the Product Benefits.
  4. 4. Steps in the Selling Process Step 5. Handling Objections Seeking Out, Clarifying, and Overcoming Customer Objections to Buying. Step 6. Closing Asking the Customer for the Order. Step 7. Follow-Up Following Up After the Sale to Ensure Customer Satisfaction and Repeat Business.
  5. 5. Identify and Qualifying Prospects  Prospecting: Identifying likely new customers ◦ Leads  Qualifying: Evaluating a prospect’s potential The process of collecting customer data and checking lead parameters to make them qualify as prospects is referred as Prospecting.
  6. 6.  Prospecting is the first in selling process and involves the search and identification of potential customers who may be willing to buy a product and have the ability to do so.  Information about prospects can be obtained form four different sources - external, internal, personal and miscellaneous contacts.  The salespersons use different techniques to get information form external, internal, personal and miscellaneous contacts.
  7. 7. PROCESS OF PROSPECTING  A successful salesperson effectively utilizes the selling time by distinguishing the prospects from the suspects.  A salesperson identifies three sets of customers at the stage of prospecting – lead customer, prospect customer and qualified customers.
  8. 8.  Lead customers – Customers with a desire and a need to purchase the product but no or inadequate purchasing power.  Prospect customers – are the buying units who have a current demand for the product and can get substantial benefit through the acquisition of the product.  Qualified customers – are those who have a need for the product or services in offer and have the ability to buy them, but need further persuasion.
  9. 9. Prospecting Successful prospecting 50 potential prospects 50 potential prospects 15 Qualified prospects 25 Qualified prospects 6 Interviews 17 Interviews 1 sale 7 sales No Yes Successful prospecting 9
  10. 10.  Prospecting involves a series of steps.  The salesperson searches for customers with unmet needs or needs that are not fully met by the existing product consumption habits.  In the process of prospecting the salesperson can save his time and effort by differentiating ‘leads’ from ‘prospects’ so that optimum efforts can be put for realizing sales.
  11. 11. Process of prospecting Identify and define prospects Search for sources of potential accounts Qualify the prospects from the suspects 11
  12. 12.  Step 1 - He has to identify the attributes and features of the prospects, which may include the urgency of the need for the product, availability to make payments, expectations and practices of credit payments etc,.  Step 2 – The sources can be primary or secondary.  Step 3 - The next task is to distinguish the prospects from the suspects and then to determine the probable requirement of the purpose.
  13. 13.  By an effective prospecting process, the sales person can build his sales strategies and methods to handle customer objections and satisfy their needs.  The salesperson can ask three questions to determine
  14. 14. To determine whether the individual or organization is a qualified prospect. M-money to buy?  A-authority to buy?  D- desire to buy? 
  15. 15. Methods of prospecting Cold canvassing  Endless chain customer referral  Prospect pool- Leads- Referrals- OrphansCustomers  Centers of influence  Non competing sales force  Observation- Bird Dog  Friends and acquaintances  Lists and directories  Direct mail  Telemarketing-Inbound-Outbound  Trade shows and demonstrations 
  16. 16. Pre – Approach before selling  Before the sales person approaches the customers for a sale, it is necessary to develop a sales strategy by collecting customer data and combining them with the product attributes as a fit for satisfying the individual and organizational needs.  A pre approach selling strategy for each prospect requires a clear understanding of his personal characteristics and needs.
  17. 17.  The need - benefit match is the most essential process of developing a sales strategy.  The product in the last stage and introductory stage of product life stage needs to be treated differently.  The major benefits of doing pre – sale planning are to build up a high level of self confidence before meeting the customer, develop an atmosphere of goodwill and trust, help create an image of professionalism, and to increase the scope of achieving higher sales.
  18. 18. Approach to the customer    In this stage the salesperson tries to get customer attention and generates interest in him. It is necessary to fix an appointment with the prospect. The goals of sales approach can be summarized as – getting prospects attention, removing any inhibitions, gaining prospects attention and confidence, probing for benefits and arousing their interest for hearing the presentation.
  19. 19. The various approaches used for this purpose are Approach Focusing   Benefit – Referral -  Introductory –   Product -    Customer benefits. Third party recommendation. Introducing the company and himself. Hands over the product to the customer.
  20. 20. Sales presentation  Here the salesperson presents his products and services before the prospect and makes effort to create and modify their interest into sales realization.  The presentation should always be made keeping in mind the interest level of the customer, nature of product and the time available.  In a typical presentation a customer accepts, objects, counters, demands an explanation, stays indifferent, doubts the product or gives no clear reactions.
  21. 21. - approach to sales presentation - attracting customer attention  - creating interest  - arousing desire and building conviction  •Use FAB approach: Features, Advantages, Benefits
  22. 22.  - methods of sales presentation ◦ - canned presentation ◦ - organized presentation ◦ - tailored presentation
  23. 23. Handling Customer Objections     Objections are many times excuses for not buying. Objection normally pause the sales process because the customer either has not fully understood the product and its benefits, or is not fully in agreement with the sales person. An objection is always interrupted as ‘I am not yet ready for the real buying.’ Objections may take the form of doubts, minor objections and major objections.
  24. 24. The major complaint from customers is often a disadvantage in the product when applied to the prospects mind.  Objections provide valuable feedback.  An objection is the prospects way of asking more reasons of buying.  It also helps to reclassify the customers from the point of view of ability to buy, needs(stated and latent) and authority to buy. 
  25. 25. Salesperson should concede strategically as follows • Start with your highest expectations • Avoid conceding first • Be sure the customer understands the value of a concession • Make concessions in small amounts • Admit mistakes and make corrections willingly • BE prepared to withdraw a concession • Do not advertise willingness to concede
  26. 26. Methods of handling customer objections            Superior feature method Yes…But method Reverse English method Indirect denial method Pass out method Comparison method Direct denial method Another angle method Narrative method Testimonial method Question or WHY method
  27. 27. Closing the Sale Closing the sale is the goal of any selling process.  How many benefits are sufficient to close a sale?  Customers do not come out positively to offer a buying.  Hence it is important to use closing techniques. 
  28. 28. Methods of Closing the Sale  Assumptive close – assumes that the sale is made.  Negative close – occurs when the salesperson urges the customer to buy immediately.  Special concession close – is common in grocery stores.
  29. 29. Contd…..  Caution method – the salesperson first makes the customer cautious about the availability of the product and then suggests the close.  Implied consent method – the salesperson believes that the customer is satisfied with the presentation and may place the order.
  30. 30. Contd….  Special induced method – the salesperson reminds the customer about the about the promotional schemes.  Direct order method – the customer will come forward to place the order without any further persuasion.  Choice narrowing method – the salesperson presents the a product with its various specification.
  31. 31. Contd….  Ownership suggestion method – the salesperson suggests the customer to buy the product to impress upon social standing.  Advantages and Disadvantages comparison method – the salesperson asks the customer to compare his own products with that of the competitors on objective basis.  Emotional method – the salesperson creates emotions on matters of social interest.
  32. 32. Follow-up Action  This helps the salesperson to evaluate the competitive sales moves, generate additional leads from satisfied customers and also help the company in the idea of cross selling and upselling.  A follow up generally begins by thanking the customer and helps in maintaining goodwill and taking corrective actions for the promises made during the sales presentation and discrepancy arising.
  33. 33.  The salesperson should also do a post call self evaluation to identify personal strength and weakness in the product and company knowledge and selling skills that need attention for improvement.  After-sales service is an important part of the selling process and ensures that it paves the way for building confidence and establishing relationship with customers for future revenues.
  34. 34. Issues in different types of selling methods 1) Understanding customer types through different Selling Styles; Trade selling – the role of the salesperson is to improve company’s sales volume by providing promotional assistance.  They help retailers who are the customers of the manufacturers in their promotional efforts. 
  35. 35.     Missionary selling – the prime responsibility of a missionary sales person is to promote the product to the indirect customers of the manufacturer and encourage them to buy from the manufacturers direct customers. Eg – Medical representatives Technical selling – Technical salesperson have specialized knowledge in their field, which helps them provide technical assistance to customers. These salesperson cater to the needs of existing customers and advice them on the characteristics of the product. Eg: Elevators and Escalators, Otis, Kone
  36. 36.  New Business selling – the company salesperson makes cold calls on prospects and try to convert them into customers.
  37. 37.  2) Finding Customers – Prospecting, that is searching for new customers is the most important and difficult task in personal selling.  In organizational sales, salespersons also have additional challenge of identifying the people who influence the purchasing process in the organization.
  38. 38.  3) Searching customers – After identifying prospects the salesperson has to research prospects to learn their tastes, preference and underlying needs.  Conducting detailed research of customers attitudes and buying habits helps the company to develop products that will appeal to potential customers.
  39. 39.  4) Communicating Effectively – Personal selling is an effective form of two way communication.  The intended message can be customized according to customers requirement.  The effectiveness of company’s communication to its customers depends on the communication skills of its sales force.
  40. 40.  5) Providing Customer Service – With the advancement of internet and other technologies, the customers are now more demanding than ever. They can dictate terms to the sellers.  Companies are now using software tools such as CRM to establish and maintain better relationships with the customers.  The main strategy is to maximize long term customer value and concentrate on serving them better.
  41. 41.  6) Creating Customer Satisfaction – Maintaining high level of customer satisfaction is very essential if a company wants to sustain itself in the market for a longer time.  Customer satisfaction leads to customer loyalty.  Usually, companies have three types of customers – Distress, Just satisfied & Delighted customers.