• 1. 大客户销售谋略2003.10-11-10-12
    • 2. Objective of WorkshopUnderstand Characteristics of Major Account Selling Strategies in Whole Lifecycle, thus to Shorten bid-to-win ratio Shorten selling cycles Minimize discounts and negotiated concessions Establish clear, unique business value with the customers Reduce selling costs through more effective sales strategies Increase sales per employee - Develop expected relationship with the customers. Eg. Strategic Partnership etc.
    • 3. AgendaDay 1 How the Customer Make Decisions SPIN Question Strategy Account Entry Strategy Understand Your Customer & Their Business How to Make Your Customers Need You Day 2 Influence the customer’s choice Differentiation & Vulnerability Overcoming Final Fears Sales Negotiation How to Ensure Continued Success
    • 4. 客户是如何做决策的
    • 5. How Customer Make DecisionsThe Research Base The Customer Decision Process Account Strategy in the Recognition of Needs Phase Account Strategy in the Evaluation of Options Phase Account Strategy in the Resolution of Concerns Phase Account Strategy in the Implementation Phase Summary
    • 6. Overview of Major Account Sales Strategy Sales Strategy should be about customers and how to influence them. Understanding and Well Prepared are mandatory to form a effective sales strategy Customer Behavior goes through three distinct phases in making a major purchasing decisions Recognition of Needs Evaluation of Options Resolution of Concerns A fourth phase, follow-up in implementation phases, if it is well handled, can generate significant additional sales opportunities. Each of four phases required a different set of strategies and skills.
    • 7. What is Sales Strategy & What is Major Account Sales Strategy A way of thinking and directing your actions to effectively influence customer purchasing decisions. Focus on Understanding Customer Behavior Not Procedure or technique Major Accounts 20/80 rules New Customers Potential Customers
    • 8. Exercise: A Typical ERP Deal LifecyclesWhat is typical ERP Deal Selling Cycles Customer Decision Process Who is Major Account of ERP S/W Traditional Mfg Others
    • 9. Customer Decision Process Research BaseNeil Rackham Huthwaite 35,000 sales calls in 27 countries 10,000 sales SPIN (Situation, Problem, Implication, Need Pay-off) DecisionI: Recognition Of Needs V Change Over TimeIV ImplementationIII Resolution Of ConcernsII Evaluation Of OptionsBuyer CycleCustomer Decision Process
    • 10. A Typical Purchase DecisionNew Purchase Request Of Procurement Department What A Procurement Manager Say: Problem, Dissatisfaction, can not solve with existing equipment or supplies Spec.; Objective; Must & Wants; Vendor Selection If decision is big; carefully resolve all concern.
    • 11. Exercise 1. Procurement ProcessRead Appendix A: Procurement Process Do you know it before, and how you know which phase you are in while you bid, and your strategies on each phase. 10 minutes
    • 12. Account Strategy in the Recognition of Needs PhaseThe Most Effective Selling Strategy During the Phase: To uncover dissatisfaction in the account and to develop that dissatisfaction until it reaches the critical mass. When dissatisfaction reaches a sufficient level of intensity or urgency, the account makes a decision to change. Success sales asks a lot of questions during sales calls than do their less successful colleagues Questioning Skills (SPIN)
    • 13. Account Strategy in the Evaluation of Options PhaseThe Most Effective Selling Strategy During the Phase: To Centralize On Understanding, Influencing, and Responding to Customer Decision Criteria. Differentiate your solution with your competitors is one of your effective selling strategy. Common Faults during the period is failure to recognize that a shift has taken place in customer concerns. Not try to uncover customer guideline, or criteria, for making the decision.
    • 14. Account Strategy in the Resolution of Concerns PhaseThe Most Effective Sales Strategy During the Phase To uncover and help resolve perceived risk Last minutes fears and concerns arises that can block the decision or cause customers to re-open discussions with competitors. A successful sales normally works to uncover and resolve issues that are troubling the customer, even if these issues are uncomfortable and difficult to discuss. Negotiation is key selling tool of the phase.
    • 15. Account Strategy in the Implementation PhaseMost Effective Strategy of the Phase Follow-up after post implementation leads to continued success. Very Few major sales stop when the customer signs the contract. How to build up long term relationship with the customers? Think About How to Build Up Strategic Relationship with the Customer?
    • 16. Customer Decision PhasesDecision PhaseTypical Customer Concerns During the PhaseSign that the Phase is Over and the next phase are startingCommon Strategies errors in this phaseRecognition of NeedsHow we a problem How big is it Does it justify actionsCustomer accepts that the problem is severe enough to justify changed and therefore decides to take actionsFailure to investigate/develop customer needs Making product presentations too earlyEvaluation of OptionsWhat criteria should we use in making a decision Which competitor best meets our criteria?Customer has a clear decision mechanism in place and has used it to select 1 or more final contenders Failure to uncover customer’s criteria Little attempt to influence/change stated criteriaResolution of ConcernsWhat are the risks of going ahead? What if it goes wrong? Can we trust these people?Customer make the purchasing decisions Ignoring concerns in the hope they’ll go away. Pressuring the customer to make a decisionImplementation- Are we getting value from the decision? - How quickly will we see the resultsNew needs and dissatisfactions ariseFailure to treat implementation as a sales opportunities Failure to anticipate vulnerable implementation points
    • 17. 强大的销售工具 ——提问策略准备
    • 18. SPIN Questioning Situation Questions Questions that gather data and background facts. E.g: How many people do you employ? What’s your present ERP system? Problem Questions Questions that uncover problems, difficulties and dissatisfactions. E.g: Are you happy with existing ERP system? Does the existing ERP system has reliability problems.? Implication Questions Questions that explore the consequences or implications of customer’s problem E.g. Does this problem leads to increased costs As a result of the problem, do we get more down time. Need-payoff Questions Questions that explore the value or usefulness of solving a problem Eg. Why is it so important to you….? Would it be useful if …?
    • 19. Implied Needs, Explicit Needs, Benefit, Advantage, FeaturesImplied Needs Statement by the customers about problems, difficulties or dissatisfactions with the existing situation. Eg. I always get behind schedule. We have been lost a lot of money in this area. Explicit Needs Statements of a customer’s wants or intentions. Eg. What I need is… I want some to … Benefits Statements which show how a product, a product feature or advantage meet explicit need which has been stated by the customer. Eg. You have said you need fast turnaround, we can give it to you by the end of the month Advantage Statement showing how a product, product feature can be used or help the customer. Most advantages can be expressed in the form : because of … feature, you can ..” Eg. Because of our ERP product finance module, you can get …. Our new model can save additional 8% material cost. Features Characteristics of a product or services Eg. This unit cost $400. This is a closed loop feedback system.
    • 20. SPIN FormSituation QuestionProblem QuestionImplied NeedsExplicit NeedsImplication QuestionNeed-Payoff QuestionBenefitsAdvantageFeature
    • 21. Normal Sales Call Planning FormSituation: The background information I need before probing for the problem: ------------------------------------------------------------------------------ ------------------------------------------------------------------------------Problems The difficulties the customer has that I could solve. ----------------------------- ------------------------------ ----------------------------- ----------------------------- ---------------------------- -----------Implications “Knock on” effects for each problem stated ----------------------------- ------------------------------ ----------------------------- ----------------------------- ---------------------------- -----------PayOf The Value to the customer of solving these problems. ----------------------------------------------------------------------------------
    • 22. SPIN Questioning StrategySituation QuestionProblem QuestionImplication QuestionNeed Pay Off Question Achieve fact finding objectives Have low selling impact Useful at focus of receptivity Achieve uncovering dissatisfaction objectives Have moderate selling impact Useful at focus of dissatisfaction Achieve Objective s of developing and channel satisfaction Have high selling impact Useful at focus of dissatisfaction and focus of power Achieve objectives of rehearsing and selectively channeling customer attention Have high selling impact Useful at focus of dissatisfaction and focus of power
    • 23. 强大的销售工具 理解你的客户准备
    • 24. Account FundamentalOwnership Location Corporation Actions Financial Performance Future Prospects Timing Organization Top management cadre
    • 25. Understanding Your Customers : Organisation Structure & Dynamics
    • 26. ObjectivesPurpose Provide a framework for better understanding of the client’s organisation and how they make decisions Output Organisation Map & People Profiles Benefits Improve your view into the client’s organisation for improved relationship management Develop relationships with the right people who can provide insight and direction
    • 27. Key Components of Understanding Customer’s OrganisationMacro Formal Structure Political Structure Inner Circle Influence NetworksMicro Coverage Status Decision Orientation Innovation / Change
    • 28. Maslow’s Hierarchy of NeedsPhysiologicalSafetyBelongingEsteemSelf-Actualisation
    • 29. Character ProfileMaslowAdaptabilityDecision OrientationLevels of ContactYour PositionChen Yuan CEO#%BVE
    • 30. Maslow’s Hierarchy of NeedsPhysiologicalSafetyBelongingEsteemSelf-Actualisation SA : Self Actualisation E : Esteem B : Belonging S : Safety P : Physiological
    • 31. Mapping NeedsSA : Self Actualisation E : Esteem B : BelongingCEOSenior VP Sales & MarketingSenior VPCFOVP Field OperationsMarketing DirectorDirector of R&DDirector of Mfg.Director of ITControllerSAESABBSAEEBB
    • 32. Adaptability to Change - Technology Adoption LifecycleInnovatorsVisionariesPragmatistsConservativesLaggards
    • 33. Adaptability to ChangeInnovatorsVisionariesPragmatistsConservativesLaggardsStatus QuoReference SitesWhat They WantWhat They BuyYour Value PropositionNot to be left behindEvolution Solve ProblemsRevolution RecognitionState of the artTrials TestsCustomised SolutionTotal SolutionsIndustry standards at low price with no riskEnhancement of existing servicesProduct excellence InnovationFuture Competitive AdvantageReturn on Investment GuaranteesInvestment protection
    • 34. Mapping Adaptability to ChangeI : Innovator V : Visionary P : Pragmatist C : Conservative L : LaggardCEOSenior VP Sales & MarketingSenior VPCFOVP Field OperationsMarketing DirectorDirector of R&DDirector of Mfg.Director of ITControllerSAESABBSAEEBBVVVPPIILCC
    • 35. Decision Orientation“On what factors does our client base their decision on ?”Financial $Technical TRelationship RBusiness B
    • 36. Mapping Decision OrientationB : Business R : Relationship F : Financial T : Technical CEOSenior VP Sales & MarketingSenior VPCFOVP Field OperationsMarketing DirectorDirector of R&DDirector of Mfg.Director of ITControllerSAESABBSAEEBBVVVPPIILCCBBBBRTFFTR
    • 37. Level of ContactNo Contact !Brief Contact %Multiple Contacts *In-Depth @“How often do we meet with our client ?”
    • 38. Mapping Contact Coverage ! : No Contact % : Brief Contact * : Multiple Coverage @ : In-Depth *CEOSenior VP Sales & MarketingSenior VPCFOVP Field OperationsMarketing DirectorDirector of R&DDirector of Mfg.Director of ITControllerSAESABBSAEEBBVVVPPIILCCBBBBRTFFTR!!!!!%%!!%
    • 39. Your Position Enemy XNon- Supporter “Where are we with the client ?” Mentor M
    • 40. Mapping Our PositionX : Enemy <: Non-Supporter # : Neutral > : Supporter M: MentorCEOSenior VP Sales & MarketingSenior VPCFOVP Field OperationsMarketing DirectorDirector of R&DDirector of Mfg.Director of ITControllerSAESABBSAEEBBVVVPPIILCCBBBBRTFFTR!!!!!%%!!#><#XM##MM%
    • 41. Position in Organisation & InfluenceInner CirclePolitical StructureInfluence StructurePhysical StructurePositionInfluence
    • 42. Mapping The Informal StructureCEOSenior VP Sales & MarketingSenior VPCFOVP Field OperationsMarketing DirectorDirector of R&DDirector of Mfg.Director of ITControllerSAESABBSAEEBBVVVPPIILCCBBBBRTFFTR!!!!!%%!!#><#XM##MMYou%
    • 43. Inner Circle and Political StructureInner CirclePolitical StructureBusiness ValueDefine the organisation’s business objectives and strategyResponsible for executing the objectives and strategyPhilosophyDefined organisation’s culture based on their philosophy and valuesUnderstand and assimilate into the organisation’s culture View policy and procedures as a guidelineRecognised as consistently successful in the past and sought out by others for advice Recent successful performance instils confidence in their ability to handle new, highly visible projectsPartnersCentre of the organisation’s informal communications networkEnd nodes of the informal communication network collection and providing information to the inner circleTrack Record
    • 44. Trust & Influence NetworksCEOSenior VP Sales & MarketingSenior VPCFOVP Field OperationsMarketing DirectorDirector of R&DDirector of Mfg.Director of ITControllerSAESABBSAEEBBVVVPPIILCCBBBBRTFFTR!!!!!%%!!YouCEOSenior VP Sales & MarketingSenior VPCFOVP Field OperationsMarketing DirectorDirector of R&DDirector of Mfg.Director of ITControllerSAESABBSAEEBBVVVPPIILCCBBBBRTFFTR!!!!!%%!!XM##MM%
    • 45. Exercise III : Mapping The Organisation Take 20 minutes to analyse your customer.
    • 46. Mapping Your ClientsStep 1 : Define the formal Organisation Structure For each individual : Step 2 : Identify their needs level Step 3 : Identify their adaptability to change Step 4 : Identify their Decision Orientation Step 5 : Identify your level of contact Step 6 : Identify your position Step 7 : Present your map to your account team
    • 47. 强大的销售工具 ——了解你的客户的业务准备
    • 48. Objectives To build an overview awareness of customers business activities To know how to track customer information To know where to find customer information To know how to use frameworks to keep track of customer’s businessUnderstanding Your Customer’s Business
    • 49. Understanding Your Customer’s BusinessCollect & Monitor Information from HP Sales Track local news and media Track your customer’s competition Keep a diary of events Read Customer’s Annual Business Report / Financial Statements Go to : www.economist.com
    • 50. Understanding Your Customer’s BusinessBusiness Performance Factors : Political, Economical, Social, Technical Customer Business Structure Map : Systems, Style, Staff, Strategy, Skills, Staff and Shared Vision 7s Model
    • 51. Summary Understand how to track customer’s business information Use PEST & 7S model Know where to get customer informationUnderstanding Your Customer’s Business
    • 52. 进入客户策略 ——追根溯源投标前阶段
    • 53. Account Entry Strategy: Getting to Where It comesThe Purchase Channel Where is the Decision Maker Entry Strategy The Three Focus Points of an Entry Strategy The Focus of Receptivity The Danger of Receptivity Moving From Receptivity to Dissatisfaction Identifying the Focus of Dissatisfaction Influencing the Focus of Dissatisfaction Moving to the Focus of Power Selling at the Focus of Power When the Focus of Power Changes Developing Entry Strategies
    • 54. The Purchasing ChannelRoutine Account Penetration Channel Sales -> Gate Keeper -> Influencer -> Decision Maker Hardest way to allocate purchase channel for a new innovative products and services in Selling Cycles E.G. Mfg. Barcode Printing Outsourcing Solution Success sales normally find a focus (sponsor) within account helping him move towards a point from which they should begin developing needs. 3 focus model for successful people to find sponsors The focus on receptivity The focus on dissatisfaction The focus on power
    • 55. Where is decision makerExercise Who is the decision maker for ERP project bid. CEO CFO CTO or others. What is your passing experience to connect to decision maker?
    • 56. Entry Strategies Successful people tended to seek a sponsor Sponsor An Individual within the account who helped them, advised them, and if necessary, represented them in place where they could not gain access Not only individual, But more a particular function or area of an account as sponsor. Focus Focus A “ Focus” Within Account – a person, a committee or a department who would help them move toward a point from which they could begin developing needs
    • 57. The Three Focus Points of An Entry Strategy (I)Sales People normally could find sponsors from 3 focus points: The focus of receptivity: the point in an account where there were receptive people who were prepared to listen sympathetically The focus of dissatisfaction: the point in an account where there were people unhappy with the present system or supplier. The focus of power: the elusive point in an account where there were people able to make decision. Especially for account, no purchasing channel existed.
    • 58. Entry Strategy ModelFocus of ReceptivityFocus of DissatisfactionFocus of PowerLeads you toLeads you toThe Individual, functional area or location most likely to Listen receptively Provide you with informationThe Individual, functional area or location most likely to Perceive problems and dissatisfaction in an area where you can help.The Individual, functional area or location most likely to Approve action Prevent action Influence action
    • 59. The Focus of ReceptivityEasiest starting point for your account penetration The reason why they want to listen Objective of sales to focus on receptivity Find out information Gain access to focus of dissatisfaction
    • 60. Danger of Focus of ReceptivityDo not misinterpreted the interest as progress Remember your strategic objective is “ Information” & “ Access” Danger of distraction Danger of misinterpretation Danger of presentation
    • 61. Moving From Receptivity to DissatisfactionObjective of Focus on Receptivity Gain access to person or function who probably not satisfied Use SPIN Situational question E.G Do you know anybody in your company who’s experiencing problems in this areas… Less successful sales concentrated on impressing the receptive person. Focus of Receptivity, Focus of Dissatisfaction and Focus of Power may be same person.
    • 62. Identify the Focus of DissatisfactionMindset to set your product in problem-solving terms to allocate focus of dissatisfaction. SPIN Questioning Skills
    • 63. Influence the focus of dissatisfactionThe objective of influence the focus of dissatisfaction Uncover dissatisfaction and develop it to a point where the customer wants to take action Use the dissatisfaction you’ve developed to gain access to the decision maker, either directly or by using your sponsor to sell on your behalf. SPIN Call Planning Form
    • 64. Moving to the Focus of PowerIdentify the focus of Power Direct or indirect interface with focus of Power
    • 65. Selling at the Focus of PowerWhat’s typical characteristics of executive or high level manager Normally busy Objective oriented, value driven Confidence Danger of selling at the focus of power: Failure to do homework Failure to take control Premature meeting Inappropriate expectations “Well Prepared & Understanding your customer is KEY”
    • 66. Experience Sharing: How to make an appointment with VIPSet appointment with decision maker is difficult How to get the face to face opportunities Homework, dollarize the reason why the customer should do the business with you. Send a four or five sentence letter to the customer detailing the dollarized bebefit of the product and promising a follow-up phone call. The objective of the letter is to let the customer take the phone call When you have the customer on the phone, suggest a meeting, then ask “is Tuesday at three OK” “ How about next Friday at three” “OK, great, the meeting will take about twenty minutes. See you at three, thanks” This is typical a killer sales question because it leads to that precious appointment over 90 percent of the time.
    • 67. Develop Your Account Entry StrategyFirst, Decide who is likely to be most receptive to product or services like yours. Approach receptivity and ask for meeting and ease receptivity fears on hard selling. Uncover information during the meeting Locate the focus of dissatisfaction, setup the meeting, prepare a question list which you’ll ask to uncover potential dissatisfaction Conduct several meeting with your contact at the focus of dissatisfaction. You’ll need to meet other individuals in order to justify involving people at the focus of power. The objective of the phase is to develop satisfaction Develop a sponsor at the focus of dissatisfaction either introduce you or represent you at the focus of power.
    • 68. Case Study: How to penetrate to a medical account to sell you finance softwareAssume you are sales rep. in a finance s/w company, a Shanghai Stock Exchange listed company opened a new factory in your territory in 2002, you get information that the factory will have a new project to standardize its finance operation, you company are one of 2 top players in the area. Develop you account penetration strategies. The objective is to gain bid right for the project.
    • 69. 如何让你的客户需要你 认识需求阶段策略认识需求阶段
    • 70. AgendaObjectives for the Recognitions of Needs Phase Uncovering Dissatisfaction Setting Your Objectives Planning Your Questions Asking Situation Questions Asking Problem Questions How Problems Are Developed Selling to the Focus of Dissatisfaction Gaining Access to Decision Makers Selling Indirectly to Decision Makers Prepare Your Sponsor Need payoff Questions The SPIN Questioning Strategy
    • 71. 认识需求客户意识到有新的购买需求。策略目标: 发现不满 扩大不满 根据客户的不满提供解决方案
    • 72. Recognition of NeedsThe account recognizes that a need exists which justifies a purchasing action. Strategic Objectives: Uncover dissatisfaction Develop dissatisfaction Selective channel dissatisfaction
    • 73. Objectives for the Recognition of Needs PhaseUncover dissatisfaction - Because without dissatisfaction there is no reason for the account to buy. Develop dissatisfaction - The dissatisfaction you uncover will increase to a level of severity that causes the account to make a decision to act. Selective channel dissatisfaction - The people in the account selectively feel dissatisfaction in those areas where your products and services provide them with the best solutions
    • 74. Uncover DissatisfactionHow to uncover dissatisfaction? Ask Questions to customer. Pre-step of asking question: What problem your product can solve customer’s problem. Not only technical feature of your product, think about business part of your product can help the customer. Set your call objectives Build up relationship with specific focus people Collect the specific information which can help you moving forward. Objective should be specific and moving forward
    • 75. Plan Your QuestionsTwo types of Questions Situation Question Questions that collect effects about the account and individual within it. Typical Question: Do you own the system or lease it? Problem Question Questions that probe for problems, difficulties, or dissatisfaction. Typical Question: What part of operation give you the most difficulty. From Psychology point, the customer get more motivated when you ask problem questions. Planning more problem questions is more effective way to fulfill your call objectives.
    • 76. Asking Situation QuestionDo your homework Annual Report, Media to get basic information Use the focus of receptivity Ask situation question of people at focus of receptivity, thus not waste time in asking basic fact-finding questions. Spread the questions Do not try to ask all your situational question one time Earn the right to ask situation question The motivation of customer answering your situation question is you can help customer to solve the problem. So make it clear your questions are motivated by an interest in the buyer’s problems and out of a desire to help solve them
    • 77. Asking Problem QuestionsSmall sale situation – the sale can be finished within a single call. Strategic Objective: To uncover the problem with problem questioning skills Large sales situation – the sale are more complicated. Strategic Objective: To develop the problems after you uncover them.
    • 78. How Problem Are DevelopedAfter you uncover dissatisfaction with situation question and problem question, before you show where you product can solve or alleviate the problem, you need to develop the problem. The tool is implication question: Implication question: Questions that explore the consequences or implications of customer’s problem E.g. Does this problem leads to increased costs As a result of the problem, do we get more down time.
    • 79. Selling to the Focus of DissatisfactionUncover the problem and develop the problem to the points where the customer want to take action Implication question is strong tool Gain access to the decision maker. Direct Indirect
    • 80. Selling Indirect to the Decision Maker (I) Prepare Your SponsorIf you can not get direct selling opportunity to the decision maker, you should use your sponsor at focus of dissatisfaction to sell to the decision maker on your behalf. Prepare your sponsor What will go wrong for your sponsor facing decision maker People will not remember all they’ve been told. People will never give somebody else message as convincingly as they would give their own Rehearsal & Their Own Language
    • 81. Selling Indirect to the Decision Maker (II)) Need-Payoff Question Effective way to rehearsal of your sponsor while your sponsor facing decision maker on your behalf. Need-Payoff Question!! Questions that explore the value or usefulness of solving a problem Eg. Why is it so important to you….? Would it be useful if …?
    • 82. SPIN Questioning StrategySituation QuestionProblem QuestionImplication QuestionNeed Pay Off Question Achieve fact finding objectives How low selling impact Useful at focus of receptivity Achieve uncovering dissatisfaction objectives Have moderate selling impact Useful at focus of dissatisfaction Achieve Objective s of developing and channel satisfaction Have high selling impact Useful at focus of dissatisfaction and focus of power Achieve objectives of rehearsing and selectively channeling customer attention Have high selling impact Useful at focus of dissatisfaction and focus of power
    • 83. Role Play: Prepare Your Sponsor In Front of Decision MakerAssume you get to focus of dissatisfaction, the Finance Admin. Manager, there will have a briefing meeting to CEO tomorrow afternoon in order to decided two invited companies of the coming closed bid. Your company are one of leading 3 finance s/w companies in the market. You set appointment with your sponsor this evening. Now you are thinking how to prepare your sponsor, plan the evening appointment. Assume evening appointment is coming: Do a role play, one is sales rep. of the finance s/w company, one is the Finance Admin. Manager. The Objective of the role play is to ensure your sponsor is comfortable to present you in front of CEO and add you in the bidder list. 15minuts
    • 84. 影响客户的选择 方案评估阶段的策略方案评估阶段
    • 85. AgendaRecognizing the Evaluation of Options Phase Objectives for the Evaluation of Option Phase How People Make Choices Identify Differentiation Establish Relation Importance of Differentiators Judging Alternative Using Differentiators How Decision Criteria Influence Sales Success Some Points About Decision Criteria Influencing Decision Criteria Developing criteria from needs uncovered earlier in the sale Reinforcing Crucial Decision Criteria You Can Meet Building up Incidental Criteria Where You Are Strong Reducing the Importance of Crucial Decision Criteria Overtaking Redefining Trading-off Creating Alternative Solutions The Psychology of Handling Crucial Decision Criteria
    • 86. Evaluation of OptionsThe account decides to act and you hope to emerge as leading competitor during the phase. Strategic objectives of the phase will be: Uncover decision criteria Influence decision criteria Maximize perceived fit with decision criteria.
    • 87. Recognizing the Evaluation of Options Phase When we can determine the customer goes to Evaluation of Options phase Published specification RFP is broad RFP is very detail Purchasing Committee Vendor Presentation
    • 88. Objectives for the Evaluation of Options Phase Uncover decision criteria Find out which factors or criteria the customer intends to use to make choice between vendors Influence decision criteria Introduce criteria or factors which should be important in making the decision but which the customer may not have considered. Maximize perceived fit with decision criteria. Demonstrate to the customer that your product or service adequately fits those criteria which will be used to make the decision
    • 89. How People Make ChoicesThe customer vendor selection process will go through following 3 clear stages: Identifying differentiation Establish the relative importance of differentiators Judging alternative using differentiators
    • 90. Identifying Differentiation Identification of differentiators2. Establish relative importance of differentiators3. Judging of alternatives using differentiatorIdentification of preferred alternativeThe three psychological stages in the assessment of alternative choicesStage: Customer Action Strategic Sales ObjectiveCustomer forms criteria which allow the choices to be differentiated Customer Assesses the relative importance of criteria and understands which are crucial to the decision and which are not. Customer Compares alternative options to find “best fit” with criteria Uncover existing decision criteria Suggest other appropriate decision criteria Increase relative importance of criteria you meet well Decrease relative importance of criteria you don’t meet well Show how you product or Service meet decision criteria Differentiate yourself from competitors in terms of decision criteria
    • 91. Identifying DifferentiatorsDifferentiator is criteria the customer used to judge between alternatives A effective differentiator consists of 2 elements It allows the customer to differentiate It relates in some way to the customer’s needs. For Digital Camera Differentiator: Price, Capacity, Capability, Quality… For ERP software What is buyer’s vendor selection differentiators?
    • 92. Establishing Relative Importance of DifferentiatorsReliabilityLow PriceFlexibilityDeliveryQuality Reliability Delivery Low Price FlexibilityQualityCustomer thinks about needs and criteria, then decides which are most importantCrucialIncidental
    • 93. How Decision Criteria Influence Sales Success (I)Decision Criteria for A Typical Successful Sale Customer’s Decision Criteria How customer Assessed the Successful ProductQuality Reliability Price After Sales Services Compatibility with existing equipmentCrucialIncidentalQuality Price Reliability After Sales Services Compatibility with existing equipmentStrongWeak
    • 94. How Decision Criteria Influence Sales Success (II)Decision Criteria for A Typical Unsuccessful Sale Customer’s Decision Criteria How customer Assessed the Unsuccessful ProductCompatibility with existing equipment Price After sales services Reliability QualityCrucialIncidentalQuality Price Reliability After Sales Services Compatibility with existing equipmentStrongWeak
    • 95. How Decision Criteria Influence Sales Success (III)Skillful Sales Rep. influence decision criteria to bring about a better fit with their products. Customer judgment sequence may revisit the previous steps when the customer meet difficulties at any step. Identify differentiators Establish relative importance of differentiators Judge alternatives using differentiators.
    • 96. Decision Criteria SituationThe account may set criteria before needs are fully established Customer may have preexisting criteria By developing needs you influence decision criteria Decision criteria live on after the sales.
    • 97. Influence Decision CriteriaDevelop Criteria from needs uncovered earlier in the sales Reinforce crucial decision criteria you can meet Build up incidental criteria you are strong Reduce the importance of the crucial decision criteria you can not meet.
    • 98. Reduce the Importance of Crucial Decision Criteria (I)It is hard to change a crucial criterion? The customer has thought about any issue which is perceived as crucial. The people does not easily change opinions which they’ve thought about. The issue is important to the customer The people is most resistant to change in areas they see as important. Four ways to reduce importance of crucial decision criteria Overtaking Redefining Trade-off Creating alternative solutions
    • 99. Reduce Crucial Decision Criteria (I) Overtake To a crucial criterion (eg. Price) you can not meet is to take a criterion which can be met – preferably one which is already quite important to the customer – and increase its importance so that it overtakes price and replace it as more important criterionQuality Price Delivery Compatibility with existing equipmentCrucialIncidental
    • 100. Reduce Crucial Decision Criteria (II) RedefineWhen the customers tell you that a criterion is “important”, they are letting you know that it matters to them – and it is hard to change. So if you’re unable to meet the criterion well, do not make the mistake of trying to persuade a customer that it is unimportant. Attempts to talk people out of crucial decision criteria usually fail and often only make the criterion even stronger. Powerful tool - RedefineEasy to use keyboardEasy to use keyboardGood Training SupportUser Friendly SoftwareEase of Use Ease of Use Redefined as
    • 101. Reduce Crucial Decision Criteria (II) Trade Off & Creating Alternative SolutionsTrading off is a useful method for handling any decision criteria which can be met only if the customer is preparing to make sacrifices in other important areas. Eg. special for pricing negotiation. Creating alternative solutions is final way to handle the criterion you can not meet, it need imagination and creativity.
    • 102. Reduce Crucial Decision Criteria (IV) Psychology of Four MethodsOvertakingRedefiningTrading OffCreating Alternative Solution Recognize that it is dangerous to challenge a crucial criterion and concentrates instead on building up the importance of other criteria. Allows the crucial criterion to remain important to the customer, but alters its definition so that the seller can meet it more easily. Accept the importance of criterion, but shows that there are other factors which must be balanced against it. Recognize that the criterion is important and therefore searches out new and creative ways to meet it.
    • 103. 差异化以及薄弱环节 更多的关于竞争性战略方案的评估阶段
    • 104. AgendaThe Concept of Differentiation What’s Unique about Micro-Differentiation “ Hard” and “Soft” Differentiators Competitive Strategy with “Hard” Differentiators Speeding Up the Decision Cycle Turning “Soft” Differentiators into “Hard” The Expert Judge Blurring “Hard” Differentiators Using Differentiation in the Competitive Sale Vulnerability Vulnerability Analysis What’s a Competitor Strategies for Countering Vulnerability Strategy 1: Change Decision Criteria Strategy 2: Increase Your Strength Strategy 3: Diminish Your Competition Two Successful Strategies for Talking about Competition Raising Weaknesses Indirectly Exposing Generic Weakness, not specific Ones
    • 105. Competitive DifferentiationThe objective of competitive differentiation: To make your product distinct in the customer’s mind from other available alternatives. Marco Differentiation (Marketing Term Differentiation) Likely to have the most impact on the majority of the buying population of the target market. Individual Variations in decision criteria is common for all sales case, the skillful sales need to differentiate their products effectively during the evaluation of option phase of sale.
    • 106. Hard and Soft DifferentiatorsHard Differentiator: the differentiator can be objectively measured by the customer. Like price, size, weight, speed, compatibility or delivery. Soft Differentiator: the differentiator are relied on judgment or those can not be objectively measured. Quality, responsiveness, or standard of services, ethics, strategic alliance, philosophy alignment etc. Competitive selling will keen to hard differentiator, but soft differentiators are equally or more important criteria than the “ hard” if the seller will need considerable skills and careful strategic planning. In large deal, soft differentiator is one of important differentiator we need focus on.
    • 107. Competitive Strategy with “ Hard” DifferentiatorsThe ideal selling position is when your product has clear superiority in terms of “ hard” differentiators. As top competitor, you need Speed up the decision cycle Turn “ soft” differentiation into “hard” When some “hard” differentiator, you are not good at, you can take it and soften its outline, make it difficult for the customer to use as objective standard of judgment. Eg. Print speed, continuous speed or speed for a one off requirement.
    • 108. Using Differentiators in the Competitive SalesThe most effective way in competitive selling is to harden your soft differentiators, the way to harden your soft differentiator are Define the differentiator Have the customers to define differentiator in their own words Refine the differentiator Adding to customer definition, to be effective, the refining must build on the customer own attempt to define the “soft” differnetiator. Re-position the differentiator For the case, the customer judgment is only for hard differentiator, you need to consider re-position your soft differentiator to make it hard.
    • 109. 薄弱环节Vulnerability is a risk which your competitor is strong in the area which is important to your customer, and you are weak in the area. Vulnerability analysis Draw a customer viewed decision criteria and his ranking on you and your strong competitor. The obvious V is most vulnerability point.CrucialDelivery Quality PriceIncidentalStrongPrice Quality DeliveryWeakStrongDelivery Price QualityWeakYour Customer Decision CriteriaYouYour Customer
    • 110. Understand CompetitiorWho is our competitor, what is normal way to compete them in the market Are there any alternative solutions to the problem? Are there any alternative use of the budget?
    • 111. 3 strategies to countering VulnerabilityChange decision criteria Increase your strength Diminish your competitionCrucialDelivery Quality PriceIncidentalStrongPrice Quality DeliveryWeakStrongDelivery Price QualityWeakYour Customer Decision CriteriaYouYour CustomerStrategy #1Strategy #2Strategy #3
    • 112. Change Decision CriteriaOvertaking Build up a lesser criterion so that it becomes more important than the crucial criterion you’re trying to reduce. Trading Off Balance the criterion against limitation, penalties, or disadvantages which would come from meeting the crucial criterion. Redefining Alter the way in which the customer defines the criterion so that it becomes easier for you to meet it. Creating alternative solutions Produce new and creative alternative way to meet crucial criterion.
    • 113. Increase Your StrengthTo increase customer’s perception on your strength Correct any misunderstanding Negotiate
    • 114. Diminish Your CompetitorThe most dangerous and most difficult strategy of reducing your vulnerability is to attach the perceived strength of your competitor. You have risk of losing your credibility, and other risks are Lower your own image Open up areas you can not control Build the competitor importance. Be Careful to use the strategies
    • 115. Two Successful Way For Talking About CompetitionRaise weaknesses indirectly Like, when the customer ask your comments on competitor pricing, you answer will be our product is more economical to fit the market need. The answer psychology is different. Expose Generic weakness, not specific one. When the customer ask discussion on competitor’s specific potential weak area, the better way is to concentrate on the generic reason of the weakness, not on specific weakness itself.
    • 116. SummaryDifferentiation Hard differentiator Soft differentiator Competitive selling with differentiator Vulnerability & Vulnerability Analysis Strategies for countering vulnerability Two successful strategies for talking about competition.
    • 117. 战胜最终的恐惧 ——解决客户忧虑阶段的策略解决忧虑阶段
    • 118. AgendaObjectives for the Resolution of Concerns Phase Resolving Concerns in the larger Sales Risk in the Resolution of Concerns Phase Consequences: The Risks of Going Ahead What Causes Consequence Issues Recognition: The Essential First Step Some Early Warning Signals Detecting Consequences Face-to-Face Signs Which Suggest Consequences Discrepancies: The Common Factor How Do You Handle Consequences Some Basic Principles The Three Deadly Sins of Handling Consequences Minimizing Prescribing Pressuring Handling Consequence Issues Successfully
    • 119. Resolution of ConcernsOvercome final fears and concerns of the customer, the strategic objectives of Resolution of Concerns are as follows To find whether Consequence issues exists To uncover and clarify any consequence issues To help the customer resolve Consequence issues
    • 120. Resolving Concerns in the Larger SaleBigger Decisions More People More Competition Longer Selling Cycle More Implementation Issues Risk of buyer: not only for purchase order, but also his career or other more important consequence. Consequnces… The Risks going ahead.
    • 121. Exercise Review the large sale you have participated, list 3~5 normal consequences which the buyer or decision maker normal consider before signing the contract, and the way you help the customer resolve it. 5 minutes.
    • 122. What Causes Consequence Issues (I)Price ConcernsApplication ConcernsContact ContractLevel Customer ConcernSelling CycleHow Price Concern Change
    • 123. What Causes Consequence Issues (II) How the value equation changesSolutionSavingBenefitCostWhat the customer getsWhat customer must PayBuyDo Not BuySolutionSavingBenefitCostWhat the customer getsWhat customer must PayBuyDo Not BuyExtraRiskHassleEarly in the Sale Sellers build up what the customer getsAt the decision nears Customers start to worry about what they must pay
    • 124. Recognition – The Essential First StepConsequence is difficult to recognize, because The consequences are often under the surface. When they do surface, they are often in the disguised form of a price concern. Some Early Warning Signals Large Decisions High Visibility Decisions Better Known Competitors Competitor’s account Different Technology Detect consequence face to face Signs which suggest consequences Resurface of previously resolved issues Unrealistic price concern Unjustified postponements. Unwilling to meet Withhold of Information Common Factor: Discrepancy
    • 125. How to Handle ConsequencesDo not ignore Consequences Build up relationship first Only the customer can resolve a consequence - you can not.
    • 126. The Three Deadly Sins of Handling ConsequencesMinimizing Making light of a customer’s concern by denying its importance or by offering baseless reassurance Minimizing does not solve the consequences. Minimizing drives the consequences underground. Larger consequences remain hidden Prescribing Pushing the seller’s own ideas, solutions and recommendations for how the consequence should be solved. Pressuring Pushing the customer for information or decisions.
    • 127. Handling Consequences Issues SuccessfullyConsequences Issues are solved by discussion and confidence building Enhance communication to have the customer resolve its consequences. Executive Coverage, Executive Visit Due Diligence to prove your capability. Executive visit to enhance the commitment.
    • 128. Exercise You are selling a finance software to a company, while your selling, the responsible customer project manager, the finance operation manager told you that the customer would like to do further investigation as they are not sure return of investment. Further discussion, you understand the finance operation manger is near retired, he is afraid the consequence of project failure. Customer formed a project office as well, project sponsor is CEO, and there are several project team members from function department, like rep. from IT department, rep. from account department. CEO has strong desire to implement finance software to improve the management of company finance, and reduce the cost. You have a successful similar reference in other province, and a development team in place. What’s your strategies to solve consequence.
    • 129. 销售谈判 —— 如何做出让步并达成一致解决客户忧虑阶段
    • 130. Sales Negotiation To approach decision, the sales rep. Negotiates with the customer to reach an acceptable decision.
    • 131. Negotiation Is not SellingSelling is purely persuasion, you do not change any terms of standard product. Negotiation is you have ability to vary terms in order to get an agreement. Like Price, Delivery, or Contract Terms. Do not go to the trap: Negotiation Too Soon Key Rule: Negotiate Late !!!
    • 132. When not to negotiateDo not negotiate early in the selling cycle Negotiation should never be a substitute for selling Do not try to negotiate you way out of consequence issues or nonspecific concerns. Final fears will not go away with your negotiation Negotiation: A costly way to resolve consequences.
    • 133. ShowstoppersBarriers to moving forward which can not be overcome by selling skills alone E.g. Exclusive Support of Your Supplier; USA embargo listed countries, license etc.. Strategic advice to deal with showstoppers. To verify the barrier is genuinely a showstopper. Deal with showstoppers relatively speedily. Showstoppers are the only things you should negotiate during the Recognition of Need or the Evaluation of Options Phases.
    • 134. Right Time for NegotiationNo consequence, no showstopper. Questions asking yourself before negotiation Do I have authority to very terms? Do not give the customer signs you can change everything.?
    • 135. NegotiationAn attempt by two or more parties to reach an agreement when the following 3 conditions are present Both parties can very the terms The resource is scarce Agreement and conflict exist simultaneously
    • 136. The Overlapping Circles of Sales NegotiationWhat You WantWhat the Customer WantsWhat You WantWhat the Customer WantsWhat You/ Customer WantsEvery Sales negotiation looks like thisNot a negotiation; no common ground.No need for negotiation; total overlap.
    • 137. Short-term versus Long Term Some negotiation is around maximize short term advantage over a person you’ll never see again. Like Long Distance Bus; Train Station or Airport This is a purely rare case Most of negotiation is around developing a solid basis for future business, long term.
    • 138. Five Useful Ways in NegotiationFocus on areas of maximum leverage Establish and Narrow Range Plan and use questions Separate understanding from agreement Rigorously test for misunderstanding Planned Concession !!!
    • 139. Focus on areas of maximum leverage Understand decision criteria will led sales rep. to understand which concession areas will offer maximum leverage. Always asking question that “ how important will concession be to this customer?” Besides price, quality, delivery, customer support, training will be other areas of maximum leverage. Think about 5 minutes, give a list of decision criteria of customer, priority them, and plan your concession for your coming negotiation.
    • 140. Establish and Narrow RangesSet a range, gradually narrow the range, until both parties can agree on a fixed point with the customer. Why, Psychology, Logic way of concession Set your upper and lower limits Refine your upper limits in terms of customer expectations & competitive strength The customer may walk away from the negotiation and decide not to negotiate further because your position is unrelistic. You may create a credibility gap. If you initial point is too high, you may become vulnerable to competition Refine your lower limits in the same way in order to arrive at realistic range You may be giving away margins If you lower limits is too low, you may create appetite for further concessions. If the bottom’s too low, then you’ve no way to go. Negotiate, starting at the top of your realisitic range and making concessions in increasing smaller increments until you reach agreement. Start at or near the top of your range Make concessions in small incremental Signal the bottom by making increasing smaller concession.
    • 141. Planning and Using QuestionsQuestions reveal needs Question expose problems Question reveal strategic information Question control discussion Questions are an alternative to disagreement Questions give thinking time SPIN Question Skills
    • 142. Plan Your Question In AdvanceUncover Information Reveal Underlying Needs Expose Problem Get agreement
    • 143. Others for NegotiationSeparate understanding from agreement. Rigorously testing for misunderstanding Advice from skilled negotiators Make sure that each key point in an agreement is clearly understood by both sides. Any point to delicate to stand up to rigorous discussion during the negotiation will never survive the strain of implementation after it. Ambiguities worsen like a cancer, an ambiguity during the negotiation grows into a misinterpretation afterward, thus in turn, grow into the most fatal of all negotiating illnesses –mistrust. You can not undo history, once mistrust exists, there is lasting damage When you are negotiating, never let misunderstanding or ambiguities go unchallenged.
    • 144. Summary Differentiate between selling and negotiating Do not try to negotiate Consequence issues Focus on areas of maximum leverage Establish and narrow your negotiating range Plan and Use Question Separate understanding from agreement Never allow misunderstanding to persist.
    • 145. AgendaWhy the Difference Between Selling and Negotiation is Important The Key Rule: Negotiate Late Negotiation: A Costly Way to Resolve Consequences Showstoppers The Right Time for Negotiation Everybody Negotiates Defining Negotiation Studies of Expert Negotiators Short Term versus Long Term Focusing on Areas of Maximum Leverage Establishing and Narrowing Ranges Set Your Upper and Lower Limit Refine Your Upper Limits Refine Your Lower Limits Negotiate within Your Narrow Ranges Planning and Using Questions Plan Your Questions in Advance Separating Understanding From Agreement Rigorously Testing for Misunderstanding Why Negotiations Go Sour A Final Word on Negotiation
    • 146. Tips: Eight Ways to Negotiate with the Customer You Can Not LoseIncrease your controllable factors, and clearly understand the lower limit you can accept. Price is not only factor, you can consider more on R&D, RFP, Shipment & Payment, the more option you have, the more possibility you can win. When you are attacked, do not be angry, listen first, to have the customer clearly express his opinion, you will get more valuable information from the customer conversation. To minimize mistaken, and assure the customer that you are listening, you should stop timely and summarize results both entities achieved. Understand yourselves need, too much sympathy to customer will weak your problem solving importance and cause concession. Have the customer focused on achieving success of negotiation, and ensure solution win/win Put most difficult problem at last. High start-up point, Slow concession, always keep high expectation and remember, each compromise creates different values. Do not be emotional , do not confront with the customer, and point out the customer emotional response is not acceptable.
    • 147. Role Play: Final S/W Development Contract Negotiation
    • 148. 如何确保持续的成功 ----实施与客户维护策略实施阶段
    • 149. AgendaObjective of the Implementation Phase Stages of Implementation Motivation Dip Account Development Why is Account Management so important Five simple strategies for account development
    • 150. Implementation Phase In order to achieve continuous success, sales rep. will involve implementation, installation, after sales support to success develop the customer as existing install base and loyal customer via account management.
    • 151. Stages of ImplementationResultEffort“ New-Toy” StageLearning StageEffectiveness StageTime“ New Toy” Stage : A few simple success with little effort. Learning Stage: Hard work but not much to show for it. Effectiveness Stage: Full Results Achieved with much less efforts
    • 152. Motivation DipLevel of enthusiasmImplementation The level of customer enthusiasm changes during the implementation process.Motivation Dip: Customers’ enthusiasm Drop off rapidly as the customers enter the Learning stage.
    • 153. Three Strategies to Overcome Motivation DipStart before the contract is signed Involve the Customer Put in effort early.
    • 154. Why Account Management So Important Why Customers Leave?“Relationships” are a critical part of retention and loyalty 15% of customers have left to find a better product 15% of customers have left to find a less expensive product 20% felt a lack of contact and individual attention 49% say contact from the vendors / supplier’s personnel was of poor quality Nearly 70% leave because they do not like the human side of doing business with the previous company Forum Corp. 1999
    • 155. Five Simple Strategies for Account MgmtStrategy 1: Develop, do not maintain Strategy 2: Document Good News Strategy 3: Generate Leads and References Strategy 4 : Reassess Your Understanding of Customer Needs Strategy 5: Influence Future Decision Criteria
    • 156. Account Management Define Relationship Type Understand your customer and their business Value to customer Value to your company Competitive Analysis Account Planning with account team Executive Coverage
    • 157. Summary of Workshop
    • 158. Summary 狼性vs. Good SalesSense A good sales should have strong sense like wolf, you need know where is big fish and how to fish big fish. Plan With detail plan, you can achieve your objectives with less resources, selling is one of most objective driven tasks. Quick Response Opportunity is not that much, A good sales will not miss the opportunity and he always quick response for a new opportunity , a customer request or a new change of environment. Focus Focus is key to win. Especially in tough selling period, facing critical people and impossible missions. Synergy To achieve stretch goal or fight big deal, a good sales does not only think about himself, but also he relies on the team, he directs whole team to achieve the goal. He is an actor and more important he is a director.
    • 159. 谢谢!Meeting us on http://www.salesconsultant.cn Presented | Senior Consultant ST.Luke Consulting Co., Ltd.