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Chapter 2 Relationship Selling

MKTG. 377 January 29, 2013

Whats YOUR Ice Breaker?

1.

What was your goal for using your ice breaker approach? How did you break the ice? How did your prospect respond? Through its use, did your approach achieve the objective that you were seeking?

2. 3.

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CHAPTER 2
Relationship Selling
What youll learn about today:
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A-L-2-M Chris Brown

5.

Understand the role of relationship selling in todays market and how it differs from past stereotypes of selling. Learn the steps in relationship selling and the purpose of each step. Compare and contrast relationship selling and the traditional sales model. Examine the usefulness of continuous quality improvement in a sales organization. Recognize how to build relationships through team selling.

Value Creation Through Relationship Selling

The trend in professional selling today is toward relationship, problem-solving selling Customer Satisfaction: is the ultimate goal of the relationship salesperson throughout the selling process

Relationship Management:

Managing the account relationship Ensuring that your clients receive the proper service during and after the sale

Only 20% of Companies have Embraced Relationship Selling

By positioning yourself as a Partner or a Consultant, you are creating a more equal relationship with your prospects and clients

Value Creation Through Relationship Selling

The decision to buy often represents the start of a long-term relationship

Ideally, built upon TRUST, MUTUAL REWARD & BENEFITS You are looking out for each others needs and interests
1.Meet the Salespersons support team 2.Meet the Clients support team 3.Both Buyer & Sellers teams are cooperating wonderfully 4.Meet the top Salesperson 5. Meet his beautiful Client 6.Another Highly Successful RELATIONSHIP SALE is completed

Almost like a marriage, its a Business Marriage

Position Yourself as a Consultant, NOT a Salesperson


They are your Clients not Customers

Key personal characteristics of relationship selling


1.

Discover and understand your Clients problems and needs Partner with your Client & become a valuable resource Demonstrate to your Client how they can achieve their goals with your product or service Believe in your company and its products & services BELIEVE IN YOURSELF! a positive attitude is critical

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YOU ARE SPECIAL!!!!

8 Relationship Builders
1. 2. 3. 4. 5.

Treat customers like life-long partners Become a solutions provider Deliver more service than you promise Schedule regular service calls Develop open and honest communication Use the we can approach Take responsibility for mistakes made Be an ally for the customers business

6.

Regarding Relationship Selling, Salespeople can learn a lot from Barney the purple dinosaur

7. 8.

YOU WANT YOUR CLIENTS TO LOVE YOU!!!

8 Relationship Breakers

1.

Simply wait for the problem to develop Focus only on making the sale Over-promise and under-deliver Wait for your customers to call you Lie or make exaggerated claims Use the us versus them approach Blame someone else; Knock a competitor Focus on your own personal gain

2. 3. 4. 5. 6. 7.

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& sadly, all Business Marriages dont last

When one of the parties in a business relationship fails to deliver on their promises suspension, separation or contract termination is imminent

In short the HONEYMOON IS OVER!!!


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Relationship Selling Versus Traditional Selling

The face-to-face steps of the Relationship Model:


1. 2. 3. 4. The Approach Identifying Needs Making the Presentation Handling Objections and Gaining Commitment

Time: 40 percent spent on gaining rapport and trust Empathy: Think the way your customer thinks. Standards: Customer expectations, higher than ever

Relationship Selling Versus Traditional Selling


Relationship Model of Selling Traditional Model of Selling
% time spent % time spent

Phases
Approach Building Trust (Rapport)

40%

Telling

10%

Identifying Needs Making the Presentation Resistance and Gaining Commitment

Probe, Ask Questions, 30% and Listen

Qualifying Presenting Features Closing Long and Hard

20%

Sell Benefits

20%

30%

Reassure and 10% Close

40%

Sales Cycle Framework for Relationship Selling


The 8 Step Process For Successful Relationship Selling

1 PROSPECTING

2 PREAPPROACH & TELEPHONE TECHNIQUES

3 THE APPROACH

4 NEEDS DISCOVERY

8 SERVICE AFTER THE SALE

7 CLOSING THE SALE

6 HANDLING OBJECTIONS

5 MAKING THE PRESENTATION

The Sales Cycle Framework for Relationship Selling


There are three phases in the Sales Cycle, which are presented on the next three slides. The steps are presented in a logical sequence, but are NOT necessarily in chronological order!

Phase One

Identifying Qualified Prospects Qualified prospects must have: Need Money Authority Planning Pre-approach Activities Telephone Activities

1 PROSPECTING

2 PRE-APPROACH & TELEPHONE TECHNIQUES

Phase Two
Approaching the Prospect Discovering Needs Success of the process depends on this Requires questioning and creative listening skills Making the Presentation Takes planning Handling Objections and Gaining Commitment It is up to the seller to qualify the buyer Resistance happens because an atmosphere of mutual trust was never fully developed There may be problems beyond your control The closing stage is often the longest and most tedious stage
6 HANDLING OBJECTIONS 5 MAKING THE PRESENTATION 3 THE APPROACH

4 NEEDS DISCOVERY

Quotable Quotes

Creative wins them and Client Service loses them. - Ad Agency axiom

Phase Three
Service After the Sale Good relationships keep satisfied customers coming back Customer satisfaction is an asset to you and your company The relationship REALLY BEGINS when the Buyer says YES
7 CLOSING THE SALE 8 SERVICE AFTER THE SALE

Phase Three
Cognitive Dissonance (BUYERS REMORSE) must be reduced

7 CLOSING THE SALE

8 SERVICE AFTER THE SALE

Wouldnt it be great if there were a pill to eliminate Buyers Remorse? NOT!!! Its called being a great Relationship Salesperson

So Where Did All These Ideas Originate From?

TOTAL QUALITY MANAGEMENT


In many ways, not just the founder of Total Quality Management, but also the founder of Relationship Selling
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Demings TQM in a Nutshell A Process for Sales...


3 KEY FACTORS 1. - Developing a System to Measure Quality 2. - Process for Continuous Improvement 3. - Development of the Staff Involved
Demings 85-15 Rule
When things go wrong, 85% of the time, it is the process or system that is at fault and only 15% of the time at most, is it the fault of the employee or salesperson.
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TQM - Continuous Quality Improvement


Total Quality Management

Listen and learn from customers AND employees Continuously improve the partnership Teamwork through mutual trust and respect Do it right the first time Get your whole company involved

Service Quality

There is a process and an outcome. Both are necessary for customer satisfaction.

Deming Made Easy... The Service Quality Interaction


Service Quality Influences
The Process The Actual Outcome Perception of Service Quality Received

Leads To
Overall Customer Satisfaction

Traditional Management Versus TQM


TRADITIONAL MGT.
1.Focus on product 2.Company knows best 3.Transactions 4.Individual Performance 5. Management by Crisis 6.Blame / Punishment 7.Short-term (year or less) 8.Intolerant of Errors 9.Autocratic Leadership 10.Bureaucratic 11.Top-Down Decisions

TQM
1.Focus on service 2.Customer knows best 3.Relationships 4.Team Performance 5.Continuous improvement 6.Support/reward 7.Long-term (years) 8.Allows mistakes 9.Participative Relationship 10.Entrepreneurial 11.Outward (customer) focused

Demings TQM Done Right! Carl Sewells $332,000 Customer


Believes that a loyal
customer will spend at least that amount with him over their lifetime by buying several Cadillac cars

Sewell believes that

the actual value of a loyal customer may exceed $1.5 Million since they will refer 4 or 5 other lifetime customers to him
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Demings Fears about US business in 1984 sound just as real today 29 years later

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A very bizarre interview

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The Growth of Team Selling

It has grown to take advantage of diverse skills and personalities needed to sell complex products The selling steps are the same, but rules are needed Usually at least one salesperson and some technical specialists The buyer may also have a team

Risks of Team Selling


1. 2. 3. 4.

Requires special planning Requires a Team Leader All must agree on objectives Must be well-rehearsed

Benefits of Team Selling


1.

Customer gets involved with more than one person More accurate needs definition Very useful if the product is technical Different individuals bring more selling skills Gives the Client added confidence that they are not dependent on a single contact

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3.

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Prospects have less fear of their key point of contact being hit by that proverbial BUS

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Team Selling: Combinations That Work

Opener and Closer

Just as in Baseball (starting pitcher and the relief pitcher / closer) Some salespeople are good at opening the sales relationship while others are masters at closing the sale Both are very important-- a symbiotic relationship

For Thursday, January 31st

Chapter 3

Please make sure that you have read Chapter 3 - ETHICAL & LEGAL ISSUES IN SELLING in your textbook prior to coming to class In your professional or academic career, have you ever

Homework

been caught in the middle of an issue that required you to make some ethical decisions? - How did you handle it? Were you pleased with the outcome of your efforts? What did you learn from this experience?