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57 Cards in this Set
- Front
- Back
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Negotiation
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working to reach an agreement that is mutually satisfactory to both the buyer and the seller
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What Karl Eller said about negotiation
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In a good deal, everybody wins
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what to do when: "price is too high"
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-don't accept at face value (masks other issues that need persuasion)
-ask questions that identify or isolate issue (what makes you say that) -validate the issue (price is important..) |
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what to do when: "need to think about it"
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-ask what is preventing the decision
-ask if you have done a poor job of explaining -ask if they are trying to politely say "no" (figure out if there is a legitimate concern that is unclear) |
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what to do when: "I have to talk to my boss"
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-remove doubt or hesitation
-provide proof -ask if they need letters of rec., referrals, or references |
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what to do when: "need to get more quotes"
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- ask before the beginning if anyone else should be present
-ask if they are currently available -ask if you should schedule a time to talk to them next week |
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what to do when: "satisfied with present supplier"
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-your #1 competitor is Status Quo, otherwise, they would have called you
-say that others expressed similar thoughts before they saw what how the benefits we offer can further compliment what they are already doing |
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what to do when: "I'm not interested"
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say:
-a lot of people have said that before they had a chance to see how what we do can benefit them -that is similar to the reaction that I got when I called XYZ, they have been a customer for 5 years now -I appreciate your candor, can I ask why you feel that way |
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what to do when: "can you send me some literature"
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-most difficult to handle
-90% of the time prospect claims they did not receive say: -I know your time is valuable, I won't take more than 15 minutes -we have literature but do not know enough about your situation to give you right one |
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what to do when: "had a bad experience once with your company"
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-isolate problem
-cite how company currently handles -what happened?, we strive to our best but sometimes mistakes happen |
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confirmation questions
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helps isolate the problem and confirm your understanding
"what I believe I heard you say was..." |
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probing questions
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helps your understanding of the problem
"so, do you mean this is more important than.." |
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when to walk away
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-budget doesn't allow
-customer is dishonest -terms aren't good for your company -price is the only thing the customer thinks is important |
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superior benefit
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if a prospect raised issue that cannot be denied
-best to acknowledge but remind them of one or more superior benefits that tip the scale in your favor |
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general survey questions
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reveal facts about buyer's situation
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probing questions
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reveal problems and pain
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what is "Closing"?
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-process of making a sale
-the artful means of persuasion -process of helping others make a decision that will benefit them by asking to buy -term comes from real estate |
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studies' results of when closing occurs
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80% of sales occur after the fifth attempt at closing
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three problems of closing
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-too few sales people actually ask for the order
-too few sales people ask more than once -too few sales people know more than 4 or 5 different closing techniques |
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verbal cues customers are ready to buy
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-subtle questions
-recognition (positive statement) -requirements (conditions of which the sale hinges) |
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non-verbal cues customers are ready to buy
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-pen in hand
-holding documents -body language (eye contact>60% of the time, nodding, frequent smiling, hands are flat on table etc.) |
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% of sales that actually don't occur
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80 % of the time
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trial close
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closing attempt made during opportune time that encourages customer to reveal readiness to buy
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direct appeal
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ask for the order in a simple and straightforward way
-only to be used when prospect has a definite interest in buying |
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assumptive close
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salesperson assumes sale is made (Cutco knifes put aside)
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balance sheet close
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-use with indecisive buyer
- t account with reasons to buy on one side, reasons not to on the other |
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hot button close
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find the 1 or 2 things most important to prospect and zero in on them
-80% of buying decision based on 20% of product's features |
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adapting to a directive
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display confidence, persistence and determination
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adapting to an emotive
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maintain eye contact, be a good listener
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adapting to a supportive
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reassure before close, be patient
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adapting to a reflective
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provide plenty of factual information, don't pressure for a quick sale
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why are loyal customers important to your business?
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-reduce costs
-increase their purchasing over time -pay less attention to competing brands and are less prone to be persuaded by them -more apt to purchase other products offered by you -provide a stable sales base |
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cost of getting a new customer over a loyal customer
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4-5 times more expensive to gain a new customer than it is to keep a loyal customer
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customers word of mouth -positive and negative
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satisfied customers will tell 3 people, unsatisfied customers will tell 11.
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how prominent is poor service to customer defection
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70% poor service (15% product issues and 15% price considerations)
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components of customer service
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-reliability
-tangibility -responsiveness -assurance -empathy |
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Follow Through Strategies
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-express appreciation for customer's business
-make sure products are delivered and installed on-time -help with warranty or service contracts -represent customer in solving their problems with your company -keep customer informed -ask about how else you might help them -ask about satisfaction level |
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how to handle unhappy customers
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-shut up and listen
-never belittle a complaint -don't argue or make excuses -offer reassurance -take action promptly -follow-up |
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Complaints handled importance and how many come back
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70% of customers who complain will buy from the seller again if the complaint is handled satisfactory
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average work emails per day
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105 sent and received, about 28% of workers time spent reading and writing them
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4 components of opportunity management
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1. time management
2. territory management 3. records management 4. stress management |
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breakdown on time
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60% of sales person's time is spent on admin tasks and travel
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how to better manage time
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-time logs
-establish written goals -prepare a to-do list -make a planning calendar |
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sales territory
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geographic area where prospects and customers reside
-based on: sales potential, mileage/area, population, accounts present |
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steps 1 and 2 of territory management
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step 1: classify customers (80/20 applies)
step 2: develop routing and scheduling plans-use tools to increase efficiency |
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types of record management
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-prospect/customer files
-call reports -expense reports -sales records |
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Covey's 7 habits of highly effective people
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1. be proactive
2. begin with end in mind 3. put first things first 4. think win/win 5. seek to understand/ then to be understood 6. synergize 7. sharpen the saw (re-energizing and renewing one's self) |
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BATNA
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best alternative to negotiated agreement
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ZOPA
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zone of possible agreement: the space between the seller's walk way point and the buyer's willingness to pay
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platinum rule of negotiation
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do unto others as they want to be done unto
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logrolling
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offering an alternative solution to the problem
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timing and Pareto law
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80% of your results are generally agreed upon in the last 20% of your time
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feel-felt-found
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I understand how you feel, many other customers felt this way until they started using our product and found it to be easy and effective
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unbundling
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reducing the price by removing some items or features from the package
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BMW name
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Bavarian Motor Works
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the delivery of the owner's new BMW
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-car on a turntable
-suspense -intrigue -anticipation |
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what is a brand (BMW class)
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the sum of all things good, bad and indifferent that the market experiences when coming into contact with it
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