Sunday, August 7, 2011

the call sequence

The Pro always takes a position of strength. The victorious situation is the product of a champion salesman’s creative imagination. He creates conditions certain to produce a quick positive decision. Constantly weighing every situation before he moves. He is prudent but not hesitant. All actions are calculated – manageable risk but never needless ones. In the course of operation, tactics are expected to change in accordance with the situation. Movements supported by a deeper purpose contributing to a victorious situation. He chooses the ground of battle and draws opponent to it.

Selling is a significant function in any business enterprise. Therefore the skill should be thoroughly studied. It is a recurrent conscious act and therefore can be rationally analyzed and learned.

The primary purpose of a The Call Sequence is to provide a persuasive structure of selling given the time constraints of selling situations. From a pile of experiences and psychology theories, the BSP was created to provide summary of an efficient and effective way of approaching salesmanship. With a summary, the techniques and steps are easier to remember and implement. 
Selling is a basic human function. In one way or another, we have sold something in our lives - the son convincing his father to lend him the family car for a Friday night out; the father who motivates his son to excel in academics; The local politician campaigning for the election; Even the exercise of the humble mambobote in the streets negotiating to buy your scrap items; the fish vendor in the market inviting people top buy her products; even the whinnying of a young girl reminding her mother of a visit to Jollibee over the weekend. These stories illustrate the  exercise of the selling process. 

As a recurrent conscious act, the selling function has a system we can deliberate on. It can be learned and mastered. A standard framework has been developed through the years by practitioners and the academe. To some it is Basic Call Procedure and to others, Basic Selling Steps. It might have different titles and may vary from in form from one industry to another but the elements are the same. It is  the standard process by which a sales person executes the selling process for the purpose of presenting a product or a service to a prospective customer. Although, the selling approach has evolved into different forms, the basic elements remain. Technology has tremendous effect on our human situation and selling, as a human function,  has evolved with it. When product information is no longer the center of discussion in selling, other tactics ( approaches and methods ) have been developed to augment the ever changing  business landscape. As long as people are in the decision making process, Basic Selling Procedure will remain a standard framework among sales organizations.

The Eight Steps

1. Planning research and preparation
2. Introduction sell first yourself/establish initial credibility
3.Probing questioning/listening/identify needs/5W and 1H;/ rapport
4.  Presentation selling of the Product
5.  Handling objections fine tuning and handling objections
6.  Closing a Sale commitment and agreement
7.  Post Sale Function delivery, assessment and sustained sales
8. Repeat Sale steps 1 to 7 is geared towards sustained repeat transaction

Planning. Planning is the process of coping with uncertainty by formulating future course of action to achieve specified results. I enables the Sales Executive to achieve great things by providing a pathway from concept to reality. Sun Tzu spoke about a key principle in waging war similar to waging a sales operation " a victory gained before the situation crystallized is the acme of skill" This principle defined the whole process of Planning. " The expert commander strikes only when the situation assures victory". Therefore the need for a thorough and exhaustive study and planning. Planning in the Call Sequence refers to the process of preparing exhaustive data and constructing a course of action towards the closing of a sale.  

Planning enables us to put in simple and manageable terms complex concepts; translating thoughts into workable action breaking huge ideas into day to day programs. Planning is a process of coping with uncertainty by formulating a course of action towards specified goals. By creating contraptions, we cannot risk our investments to the whims of fate and the fickle weather. We anticipate and we make assumptions based on reconnaissance and gathered market intelligence. A SWOT analysis of our product, our competitor and the market would be a good brainstorm format in preparing a plan.

Let us discuss three concepts in Sun Tzu’s The Art of War to expose the gravity of the function of Planning.

1.      War is a grave concern of the state; the province of life or death; the road to survival or ruin. It is pertinent that it be thoroughly studied.

2.      To subdue the enemy without fighting is the acme of skill. Supreme excellence in war is to attack the enemy’s strategy. His primary target is the mind of the opposing commander.

3.      An army may be likened into water; it leaves dry the high places and hastens to the lowlands. So it is that an army turns from strength and strike upon the emptiness of the enemy. The flow of water is regulated by the shape of the gorund so it is that an army obtains victory in accordance with the situation of the enemy. Thus, know thyself and they enemy and in a hundred battles you will never be in peril

4.      The expert commander strikes only when the situation assures victory”

Business is a grave concern. To lose a client or to loss in business would be catastrophic for a family. Therefore, be circumspect and prudent. Prepare and make a thorough and exhaustive plan. Prepare exhaustive data to be able to construct a course of action in closing and sustaining sale.

Strategy, as a plan of action designed to achieve a particular goal, must be a salient feature in every plan. A qualification which proposes anticipating threats, capitalizing in one's strength and taking advantage of opportunities and the competitor's weakness.Be familiar with selling and persuasion tactics to be able to make practical and effective program of action. Be thoroughly knowledgeable of the features, benefits, target market, marketing mix, value proposition, and competitive product advantage of your product. Prepare customer database and route plan; sales objective broken down into per account, per day, per week, per month. 

A sound plans follows a structure which satisfies the following qualifications:

1.      Forecasting. Make a forecast as to your target sales for the month, for the week, for the day, for a specific account, for a specific client call. Forecast defines the financial relevance of your action.

2.      Develop your objectives. It must be Specific, Measurable, Attainable, Relevant, and Time bound. It must be relevant to your department. It must be measurable defined in financial terms. Sales, Call Effectiveness and Range.

3.      Programming. Being able to identify specific and relevant activities. A checklist is developed and proper scheduling, assigned persons, timing and sequencing is constructed.

4.      Budgeting.The allocation of resources to achieve an objective within specified period of time.


Market Intelligence on the following items must be thoroughly prepared in managing The Call Sequence.

1.      Be thoroughly knowledgeable of the features, benefits, target market, value proposition and competitive product advantage of your product.

2.      Prepare customer database and route plan; sales objective broken down into annual, monthly , weekly, daily, and per customer; Daily checklist

3.      Prepare competitive analysis. 4Ps and competitor TOT.

4.      Identify the strategy of your customer.  Prepare a thorough SWOT Analysis of your customer situation, traditional activities, market opportunities, AC Nielsen and organization decision maker circle of influence.

Courage in attacking an opportunity is merely a realization that on is mentally and emotionally prepared. Being able to appreciate the landscape of the field you about to enter – one gains confidence and familiarity of the ground will prepare one to make modifications on the manner of approaching sensitive situations or discussion. One may modify tactics according to the situation. Be empowered. Make preparations with senior managers as to budgets and limits of authority so as to be able to decide and act accordingly in the negotiations.

Prepare your sales presentation to comply with AIDCA. Powerpoint. Brochures, samples,AIDCA - Attention, Interest, Desire, Commitment and Action. The design of one’s presentation will entirely depend on the market intelligence gathered. In simple terms, if the target client is particular with finance, a sales presentation must focus on ROI and other financial terms; while if it’s a marketing manager, a sales presentation must include Market Shares, Sales Supports, Target Market, and Competitive Analysis. Prepare a Checklist of requirements and issues for the presentation to ensure 100% preparedness ticking each item along the way as it is completed.

Planning is not everything. Street smart decisiveness and maneuver can deliver the same impact. In simple terms, if the opportunity of closing a sale presents itself like in a cafeteria conversation, one may take advantage of this as experience would dictate. Experience teaches as that the guards of managers and purchasers are down during break and light moments outside their offices and tables.

The following are some techniques in preparing for an exhaustive Planning of a Sales Call:

  • Define the parameters and measurement of your sales objective.
  • Prepare competitive analysis. Competitor marketing mix, Trading terms.
  • Identify decision maker circle of influence. Designation and motives.
  • Prepare SWOT and Environment Scrutiny Analysis. Be able to identify the strategy of you client and the competitor.
  • Execute reconnaissance on business situation, peculiarities, traditional activities, personalities involved.
  • Prepare a written draft of your negotiation strategy complete with contingency plan and Plan A,Plan B.
  • Prepare a mental draft of your negotiation strategy. Prepare yourself emotionally to build confidence and presence of mind to be able to control negotiation.
  • Be empowered. Prepare with senior managers necessary approving limits and required budgets to be able to decide and act accordingly in the negotiation. 
  • Prepare a checklist of Things to do on the day of negotiation. 
  • Be prudent. Prepare for contigency; plan for risky areas of the call. Be at the agreed venue 30 minutes before agreed time; always give allowance. you never know when the rain will strike. you cannot be caught with your pants down.

Introduction. Introduce oneself in a professional manner stating name, designation and company you represent. Demonstrating a professional personality communicate in a pleasant manner at the right tone, confident body language and right amount and content of words. Present in Japanese style your calling card courteously by holding it with both hands and extending it with head bowed forward slightly.

Relevance. Establish the motivation and emotion to be able to influence the behavior of your customer to concentrate and to act positively on your proposal. All efforts towards achieving the sale; never a futile or useless initiative.Develop audience level of involvement and the speaker’s credibility through logical argumentation and emotional investment.  ( i.e. seminar organizer introduces  a speaker by mentioning his background  or a presentation about Green Movement that starts with pictures of pitiful people in calamities)Create impact within 30 seconds by exciting the customer with something new, an enthusiastic greeting, a promise, referring to your buyer using his first name, a sincere compliment or a scheme or idea to make profits.

Sell first yourself before selling your product. Be pleasant and confident. Condition your motivation and emotion from the fact that your come prepared.Make a logical and emotional connection with your audience  where you can jumpstart your presentation.
 

Probing. Before the presentation, one has to validate the viability of the presentation strategy. A principle in sun Tzu states “ Therefore a skilled commander seeks victory from the situation ..” which translated to sales operation, the sales executive needs to Probe the situation, talk to the client, diligent observation of the clients place of business, casing the store, casual conversation with Circle of Influence as “ kamusta ang climate sa loob” to determine the moral atmosphere in the Decision maker’s office.  The probing process starts prior to the meeting. The act of keen observation as to the characteristics of your subject matter based on your professional judgment honed by years of experience and familiarity with the situation at hand.
Opening the meeting with a series of questions designed to validate or testing the ground. The Series of Question is a result of a thorough investigation of the profile and personality of your contracted audience. It is a Catch Net concentrated on the various interest of the audience. It will be able to catch pertinent information as biases, priority, needs and most relevant items to your clients. 

A major purpose of probing is to identify the strongest need or benefit perceived by the prospect and other underlying requirements with regards to the proposal of the salesman. Modern selling use Questioning as a tool to facilitate the decision making process of a client with the sole purpose of assisting the buyer to decide. Good empathic questioning also builds relationships, trust and rapport - nobody wants to buy anything from a sales person who's only interested in their own product or company - we all want to buy from somebody who gives the time and skill to interpreting and properly meeting our  needs. Probing validate the logic and the emotion behind a sale.

Open Question. Open Questions gather information and build rapport. It invites persons to give long answers exposing an individual’s biases and political position. Used often to gather information. 5W and  1H. “ Kamusta ang negosyo sir?”
Closed Question. Closed Questions filter, qualify and seek commitment answerable by Yes or No, or Selection of an option which is answerable by a minor agreement  to the salesman’s proposition. Often used to qualify and confirm an interpretation. “ Itutuloy nyo ba sir yung renovation ng selling area?”

When you've asked a question, you must then be quiet - do not interrupt - allow the other person time and freedom to answer. A champion talks half as much as he listens. The principle is quite similar to the Principle of Aikido, where a sensei has the skill to utilize the strength of his opponent to his advantage. A champion salesperson utilizes the facts and motives exposed by his prospect to tie down his proposal.

Probing validates the sales executive’s strategy and fortifies it with fresh market intel information as customer’s Unique Perceived Benefit, target market, strategy, competitive product advantage, and personal / business perception which is vital in determining the right formula and a tactically sound strategy for the presentation.

Presentation.  The most important step in the Call Sequence is Presentation. The single most important determining factor in all purchase decisions. You and I buy things because of the way the offer is presented to us.

With the proper presentation of your offer, You can: trigger the emotion, provide value, build expectation, use referrals, become familiar and prove there is a need for your product. As a standard, the sales presentation materials should focus on a central proposition, which should be the Unique Perceived Benefit that the prospect will gain from the product/service. 

Tactical adaptation rest on the judgment of the sales person. Sales presentation materials are merely a tool to assist in the  communication process however it does not control the process; the sales person controls the presentation. With the client profile cased, Presentation merely becomes an exercise of matching the benefits to the defined need of the client. Constantly seeking feedback per match building a majority number of minor agreements. Constantly matching the product feature to the benefit of the customer.

All sales presentations  must be well structured, clear and concise, professionally delivered with integrity. The quality and integrity of the presentation is always regarded as a direct indication as to the quality and integrity of the product/service. Sales presentations must always meet the expectations of the listener in terms of the level of information and relevance to the prospect's own situation, which is another reason for proper Planning.

The presentation must include relevant evidence of success, references from similar sectors and applications, facts and figures - all backing up the central proposition; props; samples; demonstration and gift items.  Maintain focus on the Main Proposition with due consideration on the minor supporting materials as illustration and financial data.

Presentations should use the language and style of the audience - i.e., technical people need technical evidence; sales and marketing people like to see flair and competitive advantage accruing for their own sales organization; managing directors and finance directors want clear, concise benefits to costs, profits and operating efficiency; plenty of relevant hard facts and evidence.

Keeps control of the presentation using Persuasion and Selling Tactics.

Handling Objections.  Objections can be handled constructively. Avoid being argumentative. Be open minded. It’s a process you have to facilitate. Keep your cool. Don’t take it personal.If objections arise, firstly the sales person should qualify each one by reflecting back to the person who raised it, to establish the precise nature of the objection so as to be able to determine the right approach. Probe each objection to understand its underlying motives so as to work out an acceptable arrangement with the client.  In so doing, one is able to facilitate sustainable solutions for the client and the company. Most objections are mere request for additional information.

Re – Phrase Technique. Reflect the objection back to the customer by re-phrasing it in the form of a question which you are confident your client can answer on the affirmative.
Isolation Technique. Isolate the objection by giving another sales spill that will be able to maneuver the discussion into favorable grounds. It’s like changing the topic only you are in control. You might do a summary of more Pros and less Cons or might resell another benefit that would appeal to your client.
Inverted Empathy Technique. Put the shoe on your customer foot.
Magnify Technique. Highlight major benefit, Dwarf the minor objection.
Overwhelming Technique. Summarize benefits, ask for the Deterrent in the investment
3R Technique. Relax when hearing out an objection. Respond positively and professionally with maturity. Relate to the person by empathizing where he is coming from.

Successful business people earned themselves the right to be cautious about financial transactions. A salesman may view it this way – while it is a sales persons business to increase sales, it is a businessman business to ensure the viability of their investments. Thus the existence of objections – a basic quality of successful of business people, thorough deliberation of SWOT (Strength, Weakness, Opportunities, Threats). People are unique in different ways. One customer may be soft spoken; another skeptic and others may be too conservative. Nevertheless, an objecting customer is better than a customer indifferent and silent, unreadable to a salesman. It’s good to note that the mere fact that a businessman has accommodated a sales person means he might buy. Often, objections are merely defense mechanism of customers who wants to display their debating prowess and wants to extract additional concessions from the deal. It is the sales persons business to manage the situation and end up with a Win-win arrangement, advantageous to both parties. Business people will not business people if not for their shrewdness in business; they will do everything in their power to protect their interest. A Pro believes in two Don’ts and one Do in handling negotiations. Don’t Argue, Don’t fight emotions and Do lead them to answer their own objections. An objection literally defines their area of interest.

Handling negotiations require sales people to be in the position to decide on matters related to the transaction. Therefore, it is of utmost importance that a sales person prepares thoroughly for a presentation discussing intensively with their respective senior managers the minimum and maximum tolerance for certain Terms of Trade. Surely, business people are hard bargains. They will negotiate for the sweetest deals. Often, they will appear inscrutable. Some will open the meeting appearing uninterested. A sales executive must have the skill to draw out involvement and discussion so as to expose the customer’s position. A caution to sales people – never jump on the guns when confronted by an inscrutable customer. You might exhaust your resources.

A simple process of handling objection is as follows:

1.      Hear them out
2.      Feed it back, to clarify and qualify if your understanding of their concern is correct.
3.      Provide the answer
4.      Contract an agreement with the answer: Have I answered your concern?
5.      Link the concern to a Tie Down.

Closing a Sale. There are no exact formulas as to when to close. Closing a sale is a matter of opportunity. It may happen at the Probing stage. It may even happen at the Introduction stage. A salesman must be circumspect to determine the opportunity and the skillful enough to grab it.

Every sales person's aim should be to prepare and conduct the selling process so well that there are few objections arises, and no need for a close. The best close these days is something like "Are you happy that we've covered everything and would you like to go ahead?”

In many cases, if the sales person conducts the sale properly, the prospect will close the deal himself, and this should be the another aim for the sales person - it's civilized, respectful, and actually implies and requires a high level of sales professionalism. The manner in which a sale is concluded depends on the style of the decision-maker - watch out for the signs: no-nonsense high-achievers are likely to decide very quickly and may be a little irritated if you leave matters hanging after they've indicated they're happy; cautious technical people will want every detail covered and may need time to think, so don't push them, but do stay in touch and make sure they have all the information they need; very friendly types may actually say yes before they're ready, in which case you need to ensure that everything is suitably covered so nothing can rebound later.

Silence Technique. After spilling a closing question, take a pause and be silent indefinitely until your client speaks. It’s a psychology principle “the first one to talk loses”.

Customer Decision Making Obstacle Psyche
1.      Fear of making a bad decision. Fear to be rejected by peers and family.
2.      Insecurity causes Procrastination. Doubt and lack of confidence over the investment. Lack of information.
3.      Customers buy after they OWN. Owning is the process of emotionally and mentally imagining the benefits the investment will give you.
4.      Customers need for positive feeling.  A reassurance that they are making the right decision.

POWER CLOSE

Closing a sale is the main point of the whole sales process. During presentation and appointments is the best time to close a sale. The risk of losing a sale increases with time. Business people with their busy schedule will offer an opportunity to present once in a blue moon and the urgency of placement demands a “close” in the timeline given. Each day that passes gives competitors window to take the sale from you. Therefore, be observant for buying signals and tie down a close at the soonest opportunity available. The sales person must be equipped with the necessary resources and level of authority to decide as the situation requires.

Post Sale Function. A sale is a product ordered, delivered, paid, consumed and continuously bought. This definition should be the guiding principle of each salesman. It is sustainable and long term. Truly, we desire repeat purchase from our clients. Being the champion of the sales process, it is the job of the salesman to ensure the viability of this process. He coordinates with Manufacturing, Finance, Marketing, Logistics, Manpower Agency and other pertinent departments involved in the process.

Customer Service in account management involves a process of ensuring that our products are adding premium (profits, goodwill, strategic advantage) to our customers. It is long term as much as it is short term. Thus, the transformation of Position Title Key Account Managers to Customer Development Managers. It is the adaptation of FMCG Multinational Companies to cope with the evolution of the selling profession. With globalization and entry of so many competitive brands, multinationals are brining the competition farther where new players will have a hard time catching up. 

Illustration: Philippine Multinational  Sales and Distribution Operation. It’s quite apparent the Preferred Supplier Status and Cost Advantage of some multinational in the Philippines where Sales Managers of Unilever and Procter and Gamble don’t have to line up in PO rooms thus saving time and money. Sales Managers who manage 4 Regions with capacity for decentralized decision making giving allowance for regional and local marketing programs suitable and more effective to their assigned regions while some companies are implementing centralized marketing programs who are ineffective in certain areas.
The matching function of sales people extends to the actual Delivery. Ensuring the delivery of agreed services or products would entail matching company logistics with customer Warehouse policies (i.e. BO policy and merchandising support), matching the company policy on credit terms with the customer’s prevailing collection bureaucracy / standard operational procedure (i.e.  lead times). 

Assessment.  Sales Report is pertinent for progressive marketing companies. It gives management a system of Feedback Mechanism as to (OFI) Opportunity For Improvement opportunities, Inventory Situation, Market Trends, and Competitive Report.  In reference to the principle of TQM which spouses continuous improvement, Improvements Mechanism should be clearly communicated and in place. Sales i9s merely the end result of this many little concerns. Best if all our sales people are champion but the fact of the matter is that, a courageous and skillful soldier is a rare find. How about the other complacent employees. If these improvements are not addressed, the management might send the wrong message. The risk of demoralization would be high and performance is affected.
Analysis on the Sales Call is a very effective way of determining areas of improvement and other opportunities to sustain sales growth. Actual vs. Objective. What worked? What did not work? What is the next step towards a sale?

Repeat Sale. As a business system, professional selling is geared towards sustainable operation which satisfies short and long term business objectives.  Every sales transaction shall contribute to the continuity and growth of business. Emphasis is given to this function to demonstrate the “customer service” aspect of the selling function. If we manage our customers by satisfying not only short term benefits but rather long term and holistic business benefits. Managing every step of the BCP (no.1 to 7) towards no. 8 will result to long term business relationship.

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