Module 1 Flashcards
Explain the SMART principle and what is it used for
SMART is used to clearly define goals and expected outcomes
Specific Measurable Achievable Relevant Time-bound
Explain the recruitment sales cycle
Identifying sales opportunities Questioning to identify needs Showing capability Managing objections Asking for commitment Creating loyalty
Explain SWOT analysis
Developed by Albert Humphrey in the 1960s. Used to analyse and help sales people identify their current situation and plan future actions and goals
Strengths (internal, favourable)
Weakness (internal, unfavourable)
Opportunities (external, favourable)
Threats (external, unfavourable)
What is PESTLE analysis
Often used in conjunction with SWOT. Looks at external factors likely to effect an organisation
Political events Economic solution Sociological or social change Technological advancements Legislative or legal frameworks Environmental considerations
What is Porter’s Five Forces Model
Developed by Michael Porter in the 1980’s this model looks at the implications for the external competitive business environment
Rivalry amongst existing competitors The threat of new entrants The threat of substitute products and services The bargaining power of customers The bargaining power of suppliers
What did Professor Joel Le Bon talk about in the Harvard Business Review, April 2015
‘provoked luck’
He said that sales people aren’t lucky, it has little to do with luck and a great deal to do with the preparation, research and other actions undertaken in the lead up to the sale.
What is the Betari Box Model
Used to show how a sellers attitude and behaviour affects the degree of influence they have on buying decisions
My attitude - affects -
My behaviour - affects -
Your attitude - affects -
Your behaviour - affects -
Empathy to break a cycle of hostility - 3 distinct categories
Cognitive empathy - knowing what and how the other person is feeling. Under emotional, unsympathetic
Emotional empathy - when you feel with the other person, as if their emotions are contagious
Compassionate empathy - a balance is found here, you understand how they are feeling and feel compelled to help. You can take action to help resolve the problem
Questions a strategic seller will ask to uncover strategic opportunities (to plan for the long term and establish clear goals)
Where are we now with this buyer?
Where do we want to be in x months time?
What actions do we need to undertake to get there?
How will we measure our success?
Push sales style
Giving more info than gathering (ratio of 3:1)
CHARACTERISTICS Lots of talking about the service Limited listening Sale focused Scripted Discounts to get the sale Assumes buyer will buy Uses emotional language to influence High pressure tactics Buyer not researched Untargeted approach
SELLER PERCEIVED AS Pushy Aggressive Only interested in short term Not valued Pestering Desperate for the sale
POSITIVES Many calls quickly made Buyer may buy Commitment can be gained over the phone Initially commitment May lead to future business
NEGATIVES Rejection Danger of short term one off business only Reduced margin May only use you as a last resort Assumptions frequently made Likely to reject further contact
Pull sales style
Gathering more info than giving (ratio of 3:1)
CHARACTERISTICS Active listening Pre-sales research Targeted approach Open and probing to establish a need Focus on problems and issues Creative ideas to solve problems Involves the buyer in decisions Takes time to understand the buyer Empathetic
SELLER PERCEIVED AS Consultative Taking a genuine interest Trusted and respected Having useful discussions Seeking a mutually beneficial relationship Involving buyer in decisions
POSITIVES Long term relationship more likely Repeat business Higher margins Higher levels of commitment Less rejection Agreed action plan involving both parties Seller viewed as an advisor and consultant
NEGATIVES
More likely to gain a greater commitment face to face
Likely to take longer to develop the relationship
Time needed for research and planning
Patience is required to ask the right questions
Buyer may feel the questions are intrusive
Open questions
To gain more than once piece of information
Start with words like tell me, explain to me and describe to me, usually followed by how, what, why, when, where, who and which
“Describe to me the process you follow when you have a recruitment need”
Closed questions
To gain one piece of information. Usually yes and no responses. Used to confirm or summarise information.
Start with works like did, will, do, can, shall, would, are
Do candidates need a degree in order to be considered for this role?
Probing questions
Used to dig deeper and gain further info.
Use words like detail, specifically, clarify, exactly, more, reason, particularly
When exactly will you be making this decision?
Can you clarify the main responsibilities of this role?
Hypothetical questions
To gain agreement to a hypothetical scenario
Open or closed. Often start with “if”
If I had a candidate with the skills you are looking for would you be interested in their cv?
Features of a benefit statement once clients need is identified to show capability
“When I have a vacancy I need it to be filled quickly”
Features - available candidate lists, database of candidates, 24 hour cover
Explained - our recruiters have their available candidate list at home with them, with your call being directed to them day or night
Benefit - this ensures that whenever you have a recruitment requirement we can provide the staff quickly
Tone and body language to show positive behaviour in a sales context
Positive Inclusive Factual Engaging and involving Eye contact Leaning forward Firm handshake Mirroring of others
SPIN selling
successful sales are a result of the client doing the talking and the sales person asking appropriate questions
Questioning technique for successful sales.
Situation questions (what is the buyers current situation)
Problem questions (what are the specific problems faced by the buyer)
Implication questions (what are the consequences arising from the problems identified)
Need - payoff questions (how do we solve the problems that have been identified)
4 objection groups
Price - concern over cost - “I just don’t have the budget”
Capability - concern over service or ability to deliver - “temporary staff are unreliable”
Vague - a non specific comment - “I am not interested at the moment”
Irrelevant- an attempted block with little relevance to the dialogue - “we have a PSL in place”
Positive behaviour toolbox
Empathy - to express understanding
Probe - to get the underlying objection
Hypothetical question - to gain commitment and move the discussion forward
Future plan - gaining an agreement on how to move forward
APAC Model
Approach to objection handling, consists of 4 stages
Acknowledge - recognise the issue and the need for it to be discussed
Probe - probing questions to get more info
Answer - respond to objection
Close - objection is now dealt with
Feel, Felt, Found
Another simple approach to handing objections. 3 components:
Understand how the buyer feels (empathy)
Other people felt the same way (not just them)
What others found (how others overcame the objection)
Margin (gross profit margin)
Is calculated from the sales price.
Client pays £1000 fee
Margin of 40%
1000 x 0.4 = 400 (we need to have 40% of £1000. The rest can be used for cost)
1000 (sales) - 400 (margin) = £600 cost (wages, NI, paye etc)
Mark up
What the recruitment consultancy add to the cost of sales
Cost of sales = £600
Mark up = 40%
600 x 0.4 = 240 (40% mark up)
Therefore using a 40% mark up
600 (cost of sales) + 240 (mark up) = £840 billed to client
