2. Lecture: Secrets of the successful sales person

Question 1

What is the sales acceleration formula? (Acceleration formula, ch. 1, p. 6).

Answer 1

The sales acceleration formula is a formula consisting of 4 steps. It is applicable to any company and the purpose of it is to hire sales persons whose strengths align with the company’s sales context (Acceleration formula, ch. 1, p. 5-6).

Question 2

Name the four steps in the sales acceleration formula (Acceleration formula, ch. 1, p. 6-7)

Answer 2

1. Establish a theory of the ideal sales characteristics.
2. Define an evaluation strategy for each characteristic
3. Score candidates against the ideal sales characteristics
4. Learn and develop the model while engineering the Sales Hiring Formula

(Accelertion formula, ch. 1, p. 7).

Question 3

Explain the first step in the sales acceleration formula (Acceleration formula, ch. 1. p. 6-7)

Answer 3

The first step in the acceleration formula is to establish a theory of the ideal sales characteristics. This means finding a set of characteristics that describe the ideal sales person of your company.

Question 4

Explain the second step in the sales acceleration formula (Acceleration formula, ch. 1, p. 7)

Answer 4

The second step in the formula is to define an evaluation strategy for each characteristic. In this step , one needs to plan how to evaluate each characteristic, including deciding what questions should be asked in order to find out if for example if the candidate posses a certain characteristic (Acceleration formula, ch. 1 p. 7).

Question 5

Explain the third step in the acceleration formula (Acceleration formula, ch. 1, p. 7)

Answer 5

The third step is pretty straight forward. It is about filling out the interview scorecard after the interview (Acceleration formula, ch. 1, 7).

Question 6

Explain step 4 in the sales acceleration formula (AF, ch. 1, 7-8).

Answer 6

Step four takes place when to have hired the first sales people based on the characteristics defined in step one. Once they get on board and you get to see how they perform, you also get to judge their performances against the characteristics. This means you get to find out which characteristics correlate with successful sales performance and which characteristics that do not seem to have an impact at all. These learnings allow you to develop the model.

(Acceleration formula, ch. 1, 7-8).

Question 7

How did role of a sales person change, when the internet was invented? (AF, ch.1, 8).

Answer 7

With the internet, the power shifted from the sales person to the buyer. This shift means that many buyer no longer tolerate being strong-armed into a purchase. Statistics suggests that salespeople who are intelligent and helpful, rather than aggressive and high-pressure, are more success with today’s empowered buyer.

(AF, ch. 1, p- 9-10).

Question 8

Which five traits do salespeople have? (in Hubspot) (AF, ch2, 11.)

Answer 8

1. Coachability (the ability to absorb and apply coaching)
2. Curiosity (the ability to understand a potential customer’s context through effective questioning)
3. Prior success (A history of top performance or remarkable achievement.)
4. Intelligence (The ability to learn complex concepts quickly and communicate those concepts in an easy-to-understand manner).
5. Work Ethic ( Proactively pursuing the company mission with a high degree of energy and daily activity)

(AF, ch.2, 11).

Question 9

How does larger sales differ from smaller sales, and what does it mean for the sales person (SPIN; ch. 1)

Answer 9

Moving from smaller sales to larger sales (or the other way around) may be a bigger change than the sales person imagined, when he or she changed jobs. Although the new job is in the field of sales, it might be significantly different both in terms of customer behavior, the skills needed and the selling style that is most effective.

(SPIN, ch. 1).

Question 10

Why shouldnt you trust advice from experts? (SPIN, ch. 1)

Answer 10

Because experts/top performers are rarely aware of what makes them successful. They will often highlights the efforts they made to working on those little extra things, not the core of what makes them successful. With this in mind, one should be very cautious of taking advice from top performers (SPIN, ch.1.)

Question 11

Describe the behavior analysis model, used by the Huthwaite group (SPIN, ch. 1).

Answer 11

The behavior analysis model consists of four steps.

1. Select a behavior that you think ties with success.
2. Watch sales calls, counting how often the behavior occurs
3. Divide the calls into those which succeeded and those that failed.
4. Find out if the behavior is positively or negatively related to sales success.

(SPIN, ch. 1).

Question 12

How does multi-call sales differ from single call-sales? (SPIN; ch. 2).

Answer 12

The biggest difference between multi call sales and single call sales is that in single call sales, the sales is often closed with the sales person being present, whilst in multi-call sales the most important discussions and decision making processes seems to take place, when the seller is not present (SPIN, ch. 2).

Question 13

Differences between multi-call sales and single call sales:

Product pitch and selling cycle - what is the relation between the two? (SPIN, ch. 2).

Answer 13

A product pitch only has a temporary effect on a customer. Research by the Huthwaite groups shows that only a week after a product pitch, the customer remembered significantly fewer key points and they were less likely to buy the product.

So if you can get a decision on the spot, product pitches work well. Otherwise, you might want to change your approach.

Also, pushing product benefits rarely work in multi-call sales. If the buyer isn’t ready to decide, pushiness will (sure as hell) not make him more keen on buying the produkt. The rule seems to be, that it is okay to be pushy if you can close the deal then and there, but if you can’t, you may have harmed your chances of final success once you and your customer part company without an order.

(SPIN, ch.2 ).

Question 14

Differences between multi-call sales and single call sales:

Size of the customers commitment:

(SPIN, ch. 2)

Answer 14

Almost by definition, large purchases involve bigger decisions from the customer and this alters the psychology of the sale. In a small sale, the customer is less conscious of value. As the size of the sale increases, successful salespeople must build up the perceived value of their products or serviceses. This is perhaps the single most important skill in larger sales.

(SPIN, ch. 2)

Question 15

Differences between multi-call sales and single call sales:

The ongoing relationship

(SPIN, ch.2)

Answer 15

In a small sale, it is relatively easy to separate the seller from the product. But with larger decisions, seller and product become much harder to separate, because there will be ongoing involvement between the customer and seller, once the deal is closed.
Therefore, larger deals require a different selling style than smaller sales.

(SPIN, ch. 2).

Question 16

Differences between multi-call sales and single call sales:

The risk of mistakes

(SPIN, ch.2)

Answer 16

In small sales nobody needs to know, if you made a mistake, but in larger sales somebody will most likely know if you did so. Larger decisions are more public and a bad decision is much more visible. This means that customers become more cautious as the decision size increases.

(SPIN, ch. 2).

Question 17

Name the 4 stages of a sales call (SPIN, ch. 3)

Answer 17

1. Preliminaries
2. Investigating
3. Demonstrating Capability
4. Obtaining Commitment

Question 18

Describe the preliminary stage of a sales call (SPIN, ch. 3)

Answer 18

The preliminary stage is the warming up before the serious selling begins. It includes the way you introduce yourself and how you begin a conversation. This is very important because it is in the first couple of the call that the customer forms a crucial impression about you. However, research finds that preliminaries have less influence on success than we first thought.

(SPIN, ch. 3).

Question 19

Describe the investigating stage of a sales call (SPIN, ch. 3).

Answer 19

Investigating is the most important of all selling skills and it’s particularly crucial in larger sales. Investigating is about finding something out by asking questions, ind order to get a better understanding of your customers (SPIN, ch. 3).

Question 20

Describe the demonstrating capability stage of the sales call (SPIN, ch. 3).

Answer 20

In the demonstrating capability stage of the call, you have to show customers that you have a solution and that it makes a contribution to helping solve their problems. Demonstrations can be done through formal presentations or by describing potential benefits, which you could provide. The most important thing is that you show the customer that you have something to offer.

(SPIN, ch. 3).

Question 21

Describe the obtaining commitment stage of the sales call (SPIN, ch. 3)

Answer 21

A successful sales call ends with some form of commitment from the customer. In small sales the commitment is in the purchase, whereas in larger sales there may be a whole range of other commitments you have to obtain before you reach the order stage. Forms of commitment in larger sales could be getting the customer to

• attend a product deonstration
• to test new material
• give you access to a higher level decision maker.

(SPIN, ch. 3).

Question 22

What does advances mean when talking about larger sales? (SPIN, ch. 3).

Answer 22

Advances refers to the number of intermediate steps between the first sales call and the final commitment. Each step advances the customer’s commitment towards the final decision. And it is in these areas, where the callsic closing techniques taught in most sales training programmes are ineffectives and may hinder you chances of success.

(SPIN, ch. 3.)

Question 23

Are all stages weighted equally, when making a sales call? (SPIN, ch. 3)

Answer 23

Of course not. Usually all four stages are present to some extent, but the time spent on each of stages vary with the type of sales call. For instance, the investigating stage can take up almost the whole call in the case of selling consultancy services (SPIN, ch 3.)

Question 24

Which of the stages are typically most important in larger sales?

(SPIN, ch 3).

Answer 24

The investigating stage!

SPIN, ch. 3

Question 25

What is the SPIN process? (SPIN, ch. 3).

Answer 25

The SPIN process is a powerful sequence of questions which successful people use during the investigating stage of larger sales.

(SPIN, ch. 3).

Question 26

How could success in larger sales calls be defined? (SPIN, ch. 3)

Answer 26

In SPIN selling, they divide the sales calls into 4 possible outcomes: Orders, advance, continuation and No-sale, where orders and advancers are successful outcomes of a sales call (SPIN, ch. 3).

Question 27

Describe orders and advances (positive outcomes in larger sales) (SPIN, ch. 3).

Answer 27

Orders are some kind of purchase intention, usually written down on some paperwork. Advances are events taking place which moves the sale forwards towards a decisions. Typical advances include:

• agreement to attend and off-site demonstration
• arranging a meeting or phone call with a higher level decision maker.
• agreement to rund a trial or test of your product
• access to parts of the account which were previously inaccesible to you.

(SPIN, ch. 3).

Question 28

Describe continuations and no-sales (negative outcomes in larger sales). (SPIN, ch. 3).

Answer 28

Continuations are instances where the sale will continue but no specific action has been agreed with the customer to move it forward. In No-sales, customer actively refuses a commitment, e.g. if the customer denies a future meeting.

(SPIN; ch. 3).

Question 29

Describe the difference between continuations and advances (SPIN, ch 3.)

Answer 29

Continuations may be positive, such as the customer stating that your presentation was nice, but it doesn’t move the sales forward. Advances are events that actually move the sales forward (new meeting with customer, meeting with a higher lever decision maker, product trial etc.) According to SPIN selling book, one should teach sales people the difference between continuations and advances in order to make them more successful in major sales.

(SPIN, ch. 3).

Question 30

Describe the relation between the outcome of the sales call (either orders/advances or continuations/no-sales) and the number of questions asked during the call (SPIN, ch. 3).

Answer 30

Calls resulting in a positive outcome (order or advances) usually involve more questions, compared to calls resulting in negative outcomes (continuations/no-sales). Questions persuade more powerfully than any other form of verbal behavior.

(SPIN, ch. 3).

Question 31

In which cases are your sales call likely to end with a positive outcome even though you did not spend too much time asking questions? (SPIN, ch. 3).

Answer 31

In cases where
- you have the power
- you're the expert
- you can afford risks
(SPIN, ch. 3).

Question 32

Why is it great to ask questions? (SPIN, ch. 3).

Answer 32

• In most successful sales calls, the buyer is talking more than the seller. Questions are a way to get buyers to speak.
• Asking questions control the customer’s attention
• Questions persuade, reasons don’t
• Questions uncover needs

(SPIN, ch. 3).

Question 33

What is the difference between needs in small sales and large sales? (SPIN, ch. 4).

Answer 33

As sales become larger….

• needs typically take longer to develop
• needs are likely to involve elements, influences and contributions from several people
• needs are more likely to be expressed on a rational basis and
• A purchasing decisions which doesn’t adequately meet certain needs is likely to have more serious consequences for the decision-maker.

(SPIN, ch. 4).

Question 34

What is the definition of a need? (SPIN, ch. 4).

Answer 34

A need can be defined as any statement made by the buyer which expresses a want or concern which can be satisfied by the seller. Thus, it includes both needs and wants.

(SPIN, ch. 4).

Question 35

Describe the development of needs (SPIN, ch. 4).

Answer 35

Needs normally:

• start with minor imperfections
• evolve into clear problems, difficulties or dissatisfactions
• finally become wants, desires or intentions to act.

In smaller sales these stages of need development can happen almost simultaneously, whilst in larger sales, they can take months.

(SPIN, ch. 4).

Question 36

Define implied and explicit needs (SPIN, ch. 4).

Answer 36

Implied needs are statements made by customers of problems or difficulties (Unaware of what they want)

Explicit needs are specific customer statements of wants or desires.

(SPIN, ch. 4).

Question 37

What is the relation between sales success and implied/explicit needs? (SPIN, ch. 4).

Answer 37

Less successful people don’t differentiate between implied and explicit needs, so they treat them in exactly the same way.

Very successful people, often without realizing they are doing so, treat implied needs in a very different way from explicit needs.

Successful people uncover implied needs of the customer. This is especially true for smaller sales, wheres the relationship between implied needs and success diminishes as the sale becomes larger. In larger sales, the implied needs are does the starting point which successful people use as part of their needs-development strategy.

(SPIN, ch. 4).

Question 38

What is the relation between the size of the need and the cost of the solution? (SPIN, ch. 4).

Answer 38

One way to think about the relationship between the size of the needs and the cost of solution is the concept of the value equation. If the customer perceives the problem as larger than the cost of solving it, then there’s probably a sale. On the other hand, if the problem is small and the cost high, then there’s unlikely to be a purchase. Because the price of products in simple sales are usually lower, the size of the needs on the other side of the equation doesn’t have to be so great. In larger sales, however, a high cost solution would require a serious problem if the sale was going to turn into a purchase (SPIN, ch. 4).

Question 39

Do explicit needs predict success in larger sales? (SPIN, ch. 4).

Answer 39

Yes. They do.

(SPIN, ch. 4).

Question 40

How can a sales person convert implied needs into explicit needs? (SPIN, ch. 4).

Answer 40

By asking questions. The real skill in larger sales calls is to enlarge these problems in order to get action

The purpose of questions in the larger sale is to uncover implied needs and to develop them into explicit needs.
(SPIN, ch. 4).