Exam 2 Flashcards
What is ACV%
It is total retail dollar sales for an entire store across all products and categories.
Rather than a measure of physical size, like square footage, ACV reflects how much total business is done in that outlet.
Magnus Bonus Question. How old is he?
Magnus is 7 years old.
5 Tools that will help ensure sales success:
The right:
Knowledge.
Technology
Networking
Positioning.
Motivation.
The one trait successful salespeople demonstrate more consistently than any other is
constant prospecting
Important! Prospecting is not simply “cold calling” potential buyers
True
The 3 major concepts of prospecting:
Qualify Leads:
Nurture Leads.
Add Value.
Define Qualify Leads:
Figure out how to build the pipeline and get the oil flowing.
Define Nurture Leads:
A nurturing process keeps you in touch with prospects until they’re ready to see you.
Define Add Value:
Share relevant and insightful information based on your research about prospects and their company
You have to convey to sales leads, as quickly and effectively as possible, that you have an answer to one of their _____
Pain Points
Referral Prospecting:
Have the referral source make the initial contact.
Learn how to ask for a referral
Find a referral source’s ideal way for you to reach out to their leads.
Logical time to ask is right after a successful close.
Center of Influence Prospecting:
Can give you far more prospects.
Willing and able to provide names.
Examples: People who believe in you and what you sell, willing to give you names on a regular basis, influential with a significant number of people, names given are at least partially qualified prospects.
Group Prospecting
Bringing a number of people together at the same time and place with a shared potential need in order to present your sales opportunity.
Prospecting: Hunting and Farming.
A salesperson with a hunting orientation tends to focus more on securing a new customer through lead generation, prospecting, pre-calling, and delivering sales.
In contrast, a farming orientation focuses on selling to existing customers by building relationships.
Chapter 9 Break:
What is the Pre-Approach.
Pre-Approach is the planning and preparation done proper to actual contact with the prospect or buyer.
Pre-Approach allows you to be less mechanical, anticipate problems, and plan ways to handle them.
Building Rapport with Gatekeepers.
Show them respect
Be honest about your intentions.
Sell to the gatekeeper.
Question Gatekeepers.
Be thoughtful, be patient.
What is telemarketing?
An activity that utilizes telecommunications and information systems, combined with personal selling and servicing skills, to help salespeople keep in close contact with customers, increase sales, and enhance productivity.
The Six-Step Telephone Track.
Introduce yourself and your company.
Provide a Tangible Benefit.
Personalize the Call.
Take the pressure off the call.
Overcome Resistance.
Request an Appointment.
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Objectives of the Approach.
1: To make a favorable or positive impression on the prospect / buyer.
2: To gain the prospect/buyers undivided attention.
3: To develop positive interest in your proposition.
4: To lead smoothly into the need discovery phase of the interview.
First Impression:
4 minutes is the average time that prospects take to decide whether to buy from you.
You only get one shot, so make it count: Visual Factors, professional habits, building rapport, physical actions.
Weakness of first impressions.
Tend to be based on emotions
All behavioral traits do not show up immediately
Behavior may be deliberately controlled by either party
An earlier event may influence either person’s current behavior
The handshake
Of all the types of handshakes, the ‘dead fish’ is the most infamous one. The hand has no energy, there is no shake, no squeeze, not even a pinch, and it gives the feeling you are holding a dead fish instead of a hand. This handshake is synonym to lower self-esteem.
The Proper Greeting
The Rule of Ten - the first 10 words should include a form of thanks.
Don’t use worn-out greetings
Plan the proper greeting ahead of time and keep it simple
Failure to prepare in advance could lead to stammering or faltering speech
Small Talk or Get Down to Business?
The purpose of small talk (chit-chat with a purpose)
-Gain an advantageous, positive beginning that will break the ice and ease tension
-“Warm up” a cold environment, Provides additional information
Small talk can be negative if it conflicts with prospect’s social style
Suit your selling approach to the Person:
Expressive: Open in terms of long-range goals or implications, and big creative ideas
Ex: “I can’t wait to share our 2022 seasonal merchandising plan!”
Analytical: Open in precise terms.
Ex: “Let’s start with a business review and I’ll cover how we have reduced your costs by 10% and I will also share the latest results of our research”
Suit your selling approach to the person. *Amiable / Driver
Amiable: Open in supportive, people-orientated terms.
Ex: “It’s great to get together with your team to gain their input and ideas on our 2022 Seasonal Plans”
Driver: Open in results-orientated terms.
Ex: “You challenged us to explore your ideas to grow the business by 10% and we have the answer in our 2022 plans”.
Types of Approaches to use with Prospects/Buyers
Relevant Benefit Approach:
Useful when you know a pain point from your pre-approach
Appeal to the prospect’s dominant buying motives
Spark questions that lead naturally into the presentation
Compliment Approach
Signals honest interest in the buyer
Make it warm, sincere, specific, and genuine
Referral Approach
Helps establish leverage by borrowing the influence of someone the buyer respects
Education Approach
Show your knowledge of trends in their industry or market
Would work well in a virtual meeting
Hands-On Approach
Hand the product, or some physical representation of it to produce a positive reaction
Stirs interest and permits a demonstration
Makes a multiple sense appeal
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SPIN: Selling techniques in action.
Situation Questions: Data-gathering, uncovering facts.
Problem Questions: Here you help prospects define their needs.
Implication Questions: Get the prospect to discuss the problem and how it can be improved.
Need-Payoff Questions: Help to build up the value of your proposed solution.
How is SPIN relevant in today’s selling?
Situation: Have become EVEN MORE negatively correlated with success
Problem: Less reliability in the past,
buyers are looking for salespeople who ask about and anticipate future problems
Implication: Even more important now because complexity has increased.
Need: (Value) As or more powerful today because VALUE importance has increased.
Close-ended questions, Common Questioning Tech.
Uncover specific facts
Reduce buyer tension because they are easy to answer
Check understanding and receive feedback
Maintain control by directing the flow of conversation
Confirm buyer commitment to a specific position
Open-Ended Questions – Common Questioning Techniques
Cannot be answered with a yes or no
Stimulates the buyer’s thinking and increases the dialogue
Helps uncover the dominant buying motive
Uncovers the behavioral style of the buyer
Allows the buyer to move in any direction
Could begin with, “How do you feel…?” or “What do you think…?”
Internal Summary Questions
Also known as reflective questions
Repeat or rephrase part of the prospect’s last response
Gets the buyer to see things from your perspective
Can underscore an important point
Agreement Questions
Formally state the problem and gain agreement on the issue before proceeding
If the buyer agrees, you are ready to present the benefits that can solve the problem
If the buyer disagrees, this indicates you need to continue with need discovery
Becoming a Master Listener.
The first step to listening is to be quiet
Buyers will reveal their needs and show you how you can help them if you listen
Improve your listening skills.
Listen for ideas—do not try to get every fact. If you listen carefully, buyers will reveal their needs and show you how you can help them.
Capitalize on Speed of Thought
We can speak at 100 - 150 words per minute, but we can process at up to 600 words per minute
The heart of the sales cycle:
Need discovery is the foundation for successful presentations.
Plan questions in sequence to gain info.
Successful interactions contain more request than opinions
Define Motivation:
Motivation is the impetus to begin a task, the incentive to expend the necessary time, and the willingness to sustain the effort until the job is done.
Positioning: Differentiating your product/company in the mind of the buyer
Realize what qualities are important use find a niche.
Reinforce your differentiating factors.
Remember your product/service.
Respect the power of competition.
Self-Motivation – Points to remember
Fear motivation is external, temporary, and negative.
Incentive motivation is external and temporary.
Attitude motivation is internal and permanent.
The MADDEN TEST
Cultivate prospects who have.
MONEY
APPROACHABLE
DESIRE
DECISION MAKER
ELIGIBLE
NEED
Class “A” Prospects have what qualities?
Potential customer whose name you received from a person they respect, you have the sufficient personal information to make an exceptional presentation, and they have the authority to make a buying decision and pay for the product or service.
Prospecting Method #3 - Social Media
Social media prospecting is about creating context so that your social interactions might lead to a sale
Prospects are not going to seek you out—you’ve still got to work for them!
Product Knowledge for Salespeople (Exam Q)
Company: History, product evolution, present customers.
Performance: Life expectancy, tolerance to wear and stress, maintenance and supplies.
Product or Service:
External characteristics, how to use, all available options, adaptability.
Product Knowledge for Salespeople (Exam Q) Part 2
Service: Service policies, service personnel,
Manufacturing: How it’s made, quality control
Distribution: Distribution strategy, pricing policies, media support.
Differential Competitive Advantage – Superiority (Exam Q)
4 areas of competitive advantage:
Product, service, source, people.
How to calculate ACV?
Take total market ACV and all them all together.
TO find weighted distribution, take the total ACV’s that were scanned, and divided it by the total.
5 key questions that build relationships
1: Motivation: “Why are you passionate?”
2” Success: What do you want to acheive
3: Frustration: What do you want to avoid?
4” WHat helps you decide what to buy?
5: Commitment, “How involved do you want to be?”
