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Your Complete Guide to Customer Retention: Service and Follow-Up (with Examples)

Customer Retention: Service and Follow-Up is Step 10 of your Ultimate 10-Step Sales Presentation.

It has been a long road to get to this point! You combed through dozens of potential leads to develop a handful of qualified customers. You learned about the customer’s needs and wants. You crafted a benefit-driven sales presentation that knocked the buyer’s socks off! The buyer said, yes, the product was delivered, and you banked a big commission check. All is right with the world.

So, now it’s on to the next customer. Right?

Wrong!!!

Back the bus up!

You’re not done with this customer yet. Before you move on to the next customer, you need Step 10: Customer Retention: Service and Follow-Up.

For a few years, my dad tried his hand at selling cars. He was not cut out for sales, especially car sales, but he did ok. The reason he did ok was, he learned right away that the key to his success was satisfied customers.

It turns out he might make $500 when he sold a car. However, if that customer was satisfied with the buying experience and the car, that buyer would come back and buy another car from dad. In fact, over a lifetime, that buyer might buy ten cars for themselves and their family. So yes, that first car sold was a $500 paycheck, but the value of that customer over a lifetime was more like $5,000!

Dad realized if he treated every customer like a lifetime customer, he would have more lifetime customers.

You see, sales is really not about how many customers you can sell, as much as it is about how many customers you can keep selling to over and over!

The difference between a single sale and a lifetime of sales is in how many customers you can retain through service and follow-up!

So, let’s dig in and learn how you can leverage your service and follow-up skills to become a successful salesperson!

Content

In this article on Customer Retention: Service and Follow-Up, we’ll examine:

• The Importance of Service and Follow-Up
• Building Long-Term Business Relationships
• Business Relationships and Customer Retention
• The Product and Its Service Component
• Customer Satisfaction and Retention
• Does Service Increase Sales?
• The Importance of Account Penetration
• The Role of Service in Customer Retention
• Handling Customer Complaints
• Building A Professional Reputation
• The Path to Success

 

 

The Importance of Service and Follow-Up

From the very start of this series, I stressed the role of a relational salesperson is to help customers. Once the sale is made, the best way to further help the customer is to continue to build on your relationship through regular follow-up and service after the sale. The goal of post-sale follow-up is to ensure the product is performing as expected and that the customer is satisfied with their purchase.

The buyer will evaluate every salesperson and every purchase asking the same three questions:

1. Was this salesperson trustworthy?
2. Did the product and the salesperson do what they said?
3. Did the salesperson really care about me?

If you think about it, these three questions center around trust and relationship. Were you honest in every statement and claim you made? Did you care enough about the customer to establish a relationship with them? If the answer to these questions is less than a resounding “yes,” you have little chance of selling this customer a second time.

Building Long-Term Business Relationships

One of the keys to sales success is building long-term business relationships. Imagine you have a relationship with a buyer that exists for years or even decades. In all likelihood, your relationship will grow from a simple casual relationship to a business friendship.

A business relationship develops over time, much like your personal relationships. There are people with whom you are merely acquainted, people you consider casual friends and a few people with whom you enjoy an intimate friendship.

• Acquaintances are people you see occasionally, but you don’t know much about them. For a salesperson, these are customers you are meeting for the first time. You don’t know them, their needs, or their likes and dislikes. As far as business relationships go, the baristas at Starbucks fall into the acquaintance category for me. They know I come in on Sunday mornings with my son, and they know how I like my coffee. That’s about it.
• Casual friends are people whom you know and like and see on a fairly regular basis. You share common interests with these friends, and you trust them. In terms of business relationships, several buyers I called on over the years fall into the casual friend category. We knew each other fairly well. We knew each other’s preferred selling/buying style. We even knew a bit about each other’s families and pastimes outside of work.
• Intimate friends are people you know well and trust. You care about them and their families. In business, these intimate relationships are built over a period of time. The relationship is a close one where each party knows and cares about the other. Over my entire career, I experienced this level of intimate business relationship only a few times, but each was incredibly satisfying and rewarding to me. Our relationship grew well beyond a simple business relationship to be a caring, personal one.

Business relationships, like personal relationships, take time to build and work to sustain. The relational salesperson recognizes the importance of these relationships to their long-term success and diligently works to maintain them.

Business Relationships and Customer Retention

Salespeople bear the bulk of the responsibility for contact with the customer. Very few people outside the sales organization ever have contact with a customer. So, it falls to the salesperson to develop a relationship with the customer.

There are three levels of customer relationships:

1. The salesperson sells to the buyer one time and does not expect to contact them again. Most retail sales fall into the transactional category. The buyer walks into a store, buys something, and leaves with no expectation of working with this salesperson in the future.
2. The salesperson expects to make multiple sales to a buyer over a period of time. The salesperson develops a relationship with this buyer following up after the sale to make the buyer is satisfied with their purchase. Almost all of my sales relationships over the years fall into the relational category. Even if I knew I would only work with the buyer for a few months, I did everything I could to develop a trusting relationship with them.
3. The salesperson works with the customer on multiple aspects of the business to improve the customer’s operations, sales, and profits. Partnering with a buyer was my absolute favorite role throughout my career. I had customers who presented me with business problems and asked for my team’s help in solving their problems. A partnering relationship with a customer differentiates you from all your competitors.

If you look back at the three levels of business relationships and compare them to the levels of customer relationships, you’ll see some similarities. Acquaintances are likely to be transactional in nature. Business friends are likely to be relational. While partnering relationships are reserved for intimate business relationships.

Relational and partnering business relationships take time to build. However, having these relationships with customers makes you a preferred provider in the eyes of the buyer. Once these relationships are established, competitors have little chance of taking the business away from you, and you will have a customer for years to come.

The Product and Its Service Component

When a buyer buys, they are deciding about more than a product. Yes, they are buying a product for what needs/wants it fulfills, but they are also buying anticipated service after the sale, and to some extent, the reputation of the seller’s company.

For example, if I need a dress shirt, I know Turnbull & Asser makes shirts for me that fit well, look great, and will give me years of wear.  However, when I buy a Turnbull & Asser shirt, I am also buying with an expectation of a high level of customer service to go along with the quality of the product they sell. My confidence in the company is reinforced by their reputation as a provider of high-quality men’s clothing for over 130 years. So, when I buy a Turnbull & Asser shirt, I am buying the product, their service, and their reputation.

From a wholistic standpoint, customer service is all of the activities, programs, and services the seller provides to the buyer. This includes warranties, credit, delivery, financial terms, ordering systems, gift-wrapping, and so forth.

So, remember you are selling more than a product. You are also selling all the components of customer service and the reputation of your company. This leads us to the next important topic which is the intersection of customer satisfaction and customer retention.

Customer Satisfaction and Retention

A customer will be satisfied when their expectation for customer service is met. A customer will be dissatisfied when their expectation for service is not met.

For example, I have little expectation of customer service when shopping at Target. I expect shopping carts at the door, the product I need to be in stock and easy to find, and a cashier to ring up the sale. As long as they do that, I feel they have met my needs.

On the other hand, when I shop at Nordstrom’s, I have a much higher expectation for customer service. I expect salespeople to be courteous, to offer to help me, to give me expert advice, to tailor clothes that need fitting, to ring up the sale quickly and efficiently, and to put all my goodies in fancy bags! If Nordstrom’s fails to meet these expectations, I may still make a purchase, but I will have some level of dissatisfaction.

So, if there is a negative gap between my expectations and my actual experience, I will be a dissatisfied, unhappy customer. I may not be back for a repeat purchase. Additionally, I may just tell all my friends about my bad experience.

On the other hand, if there is a positive gap between my expectations and my actual experience, if you overdeliver, I will be exceptionally satisfied with my purchase. I will more than likely return to make repeat purchases and if all goes well, I will become a loyal shopper. Plus, I will tell others about my great experience.

Since customer retention is critical to the long-term success of a professional salesperson, you’ll want to ensure that you deliver above and beyond customer experiences every time.

That is why overdelivering on service is a sure way to help you build sales!

Does Service Increase Sales?

There are only two ways you, as a salesperson, can increase sales. You can either sell to more new customers or sell more to existing customers.

Either way, the level of customer service you provide impacts your ability to increase sales.

For example, you are trying to sell to more new customers. What do you suppose is the most reliable and productive source of new customers? If you answered, referrals, you are absolutely correct!

And who do you think will be most anxious to give you a referral, a happy, satisfied customer or a dissatisfied customer?

So, if you are trying to sell more new customers, you need to provide excellent service to the customers you have, so they will be inclined to provide you with productive referrals.

What if you have plenty of existing customers and you want to increase sales to them? Again, by providing over the top, beyond expectations for customer service, you increase the likelihood of someone giving you more business.

Finally, what about the customers you failed to sell? Maybe your product just wasn’t the right fit for them, or the timing wasn’t right. For whatever reason, you didn’t make the sale. Do you suppose that by building a relationship with them and giving them great service through the selling process, they might be more interested in doing business with you in the future? Do you suppose these folks might also be willing to give you referrals? Of course! So, even if you didn’t close the sale this time it behooves you to provide an excellent customer eservice experience for every customer, every time!

One way to help you deliver excellent customer service is to know your customer inside and out. This is why account penetration is so important to your long-term success!

The Importance of Account Penetration

Account penetration is the ability to contact and work with a variety of people of a target customer. Why you may ask, is account penetration important for customer service?

The short answer is, the more you know about the customer through a variety of sources, the better you’ll understand their situation and needs. The more you know about their situation and needs, the better you’ll be able to match your products and services to their situation.

For example, when I was the sales manager for P&G’s Foodservice division, my personal account was a major grocery chain. They had a central bakery that supplied all the baked goods to all their stores in three states. One day when I was working with them, one of the bakers told me how they were having trouble getting their pies to bake evenly. It had nothing to do with a product I sold, but I used this information from the baker to work with the commissary manager to help him solve the problem with his pies.

Because I knew the baker, he told me about a problem, and I was able to use that information to provide expertise to the commissary manager. I provided an “above and beyond” level of customer service because of my account penetration!

The Role of Service in Customer Retention

By now, I hope you understand how important service is and the impact it will have on your ability to retain customers.

Loyal customers don’t become loyal customers by accident. Their loyalty is the result of a mutually beneficial relationship developed over time.

There are four ways customer service will help build your relationship and develop loyal customers.

1) Walk a Mile in their Shoes

People buy from people they like and trust. Think about how you like to be treated as a customer. What makes you feel extra special, like a valued customer? Endeavor to provide that kind of experience for your customers.

• Build your relationship by getting to know them.
• Use account penetration to learn more about your customers.
• Demonstrate how you are unique. What is your competitive advantage?
• Ask them how you can serve them even better!

2) Then Go the Extra Mile

Begin by treating customers how you would like to be served, then go the extra mile to provide above and beyond levels of customer service. Very few salespeople go the extra mile in their customer service, so this is one way you can differentiate yourself as a relational salesperson!

3) Show Your Appreciation

Saying thank-you is becoming a lost art—especially in the business world. A very small percentage of salespeople acknowledge the opportunity to meet with a buyer with a thank-you. Of those who do say thank-you, many salespeople send simple form letters.

So, if you want to differentiate yourself, to stand out from the crowd, then start saying thank-you the right way! Here are four tips for saying thank-you to a buyer.

1. Be Prompt. Send the thank-you as soon after the meeting as possible, preferably within two days.
2. Be Personal. Address the thank-you directly to the person using their name and reference specific aspects of the meeting. While we’re on the topic of personalization, dropping the first name into a form letter is not personalization. A thank-you on social media does not count as personalization either. In fact, if you really want to stand out, get some personalized stationery, write a note by hand, and mail it to the customer!
3. Be Precise. Whenever appropriate, state in precise terms what will happen next. Will you call for a follow-up appointment? Will your warehouse call to schedule delivery? Whatever the next steps are, be specific and precise.
4. Be Positive. The tone of your thank-you should be warm and upbeat. Let them know how much you appreciate their time, attention, business, etc.

Remember, most salespeople do not take the time to follow-up with a thank-you of any kind, so differentiate yourself by being a salesperson who always says thank-you!

Some years ago, I went on a family shopping trip to Nordstrom’s. I was a reluctant shopper, but my wife and daughter insisted on some updates to my wardrobe. The salesperson that helped us was outstanding. He met all my expectations. The next day he set himself apart when he called and asked if everything fits well, if I was satisfied, and if there was anything else I might want. Plus, two days later, I got a handwritten note from him thanking me for giving me the opportunity to work with him! The handwritten note put him head and shoulders above every other retail salesperson I’ve worked with over the years. When I went back to the store a couple of months later, I learned he had been promoted to head of the department. I was not surprised.

4) Treat Every Customer Like a Key Customer

Treat every customer as though they were your most important customer.

I know when I go into the local gourmet meat market to buy a piece of meat for a special occasion that I am not one of their top customers. They don’t know me from Adam. Nonetheless, I’d like to think that I am an important customer whether I am spending $20 or $100.

I know I am not alone. Every buyer wants to be treated like they are special.

So, treat every customer like a key customer. The person that spends $20 today may be the person who ends up being a loyal customer, spending thousands of dollars.

Handling Customer Complaints

It is bound to happen. No matter how conscientious you and the rest of your organization are, mistakes will happen. A customer will let you know they are unhappy with some aspect of the product or your service. There will be times when you did everything you said, and the product is exactly as you described, and the customer still complains.

What do you do? Sometimes the customer is right. Sometimes the customer is wrong!

When the Customer is Right

When the customer is right, make every effort to deal with the customer’s complaint quickly and fairly. This is another time when going above and beyond what you have to do to correct a problem or resolve a complaint is to your long-term advantage.

For example, I recently purchased a mattress cover for a guest bed. When I took the cover out of its package, I noticed it was soiled. When I notified the company, they asked me to send a picture, which I did. I immediately got a response back from the company. They apologized and said a replacement cover was being shipped immediately. I expected them to ask me to return the soiled cover and they said, no, just keep it along with the new one!

When the new mattress cover arrived, there was a note of apology, and a 20% discount offer good on my next purchase.

Contrast their professional response with this experience that happened the same week.

I ordered a cover for my car to protect it from the birds and foul weather. The company’s website claimed to ship custom covers within two weeks. Within two days of placing the order, I was thrilled to get a shipping notice.

Days went buy and no product. I called and sat on hold with customer service for 30 minutes before I could ask about my car cover. At first, they claimed the product had shipped. They asked me to wait two more days and call back if the cover didn’t arrive. After two days and no cover, I called back. This time they said it hadn’t really shipped, it hadn’t even been made yet! They promised to expedite manufacturing and shipping.

At nearly the one-month mark, which was two weeks late according to their website, the cover finally arrived. When it arrived, I unpacked it only to find that some accessories were missing. They had not shipped the entire order! I had to call customer service again and they promised to ship the accessories immediately. As of this writing, it’s been another week and I still don’t have the rest of my order.

What kind of reference do you think I’ll give the first company versus the second company?

My point in relaying these two stories is when you get a customer complaint, and the customer is right, at a minimum get on the problem immediately and resolve the problem to the customer’s satisfaction. If you want to do something to stand out, do something nice for the customer that they didn’t expect that demonstrates how much you appreciate their business.

When the Customer is Wrong

There will be times when a customer’s complaint is invalid. When this happens, you need to determine whether the customer is being honest and wrong or is deliberately complaining in an attempt to take advantage of you!

Customers make mistakes just like you do. Occasionally a customer will complain, but the mistakes are theirs. In this case, you need to decide how to handle the situation so as to maintain the relationship. You may agree to correct the situation as far as company policy allows.

Honest Mistake

I recently purchased some replacement floor mats for my car. When they arrived, I attempted to install them, but they did not fit correctly. I called to complain, and the customer service person insisted I had ordered mats for the wrong model. My mistake, they said. I asked if I could return the mats in exchange for the correct mats. “No,” they said. “All sales are final. See the fine print on the bottom of our website?” No amount of pleading or groveling on my part made a bit of difference. I was stuck with mats that didn’t fit my car. I still needed new mats for my car, but guess what? I didn’t order them from this company, and you can be sure I won’t return to them for any other accessories I need over the years to come!

Dishonest Customer

On the other hand, there are customers who will lodge a complaint trying to take advantage of you and your company. This happened to me a number of times when I was a young sales representative. In one instance, a customer claimed they were owed merchandising allowances for the product they purchased. They even showed me a receipt for the purchase from a wholesaler. When I delayed paying their claimed allowances, they complained loudly and vociferously to my bosses’ boss! In the meantime, I checked with the wholesaler and found yes, they had purchased the product, but they had returned it to the wholesaler on their very next order! They were lying and trying to defraud my company and me!

Needless to say, we stopped calling on this customer. You don’t need customers who behave like that!

Building A Professional Reputation

Over the course of this series, I have referred to the importance of building and maintaining a professional reputation. Let’s review what it takes to build your reputation as a professional salesperson.

• Be honest. Tell the truth. Don’t exaggerate claims for your products or services.
• Be knowledgeable. Know your products and services inside and out. Continue to build your own skill sets.
• Speak well of others. Don’t run down people in your own organization or your competitors.
• Keep confidences. Keep customer information confidential and do not share with their competitors.
• Don’t use undue pressure. Be assertive but do not use unfair pressure tactics to take advantage of a customer.
• Be community-minded. Where possible, support local community events and causes—especially those important to your customer.
• Provide above and beyond customer service with every customer, large and small.

It takes a concerted effort over time to build and maintain a professional reputation. It takes only one misstep to throw it all away. There will be times when you are tempted to compromise your ethics, your standards, to betray a confidence, or to overstate a claim. Don’t do it! The short-term gain from these tactics is never worth losing your reputation as a trustworthy salesperson.

The Path to Success

Some of you may be familiar with the Ask, Seek, Knock verse in the Bible. Jesus said in Matthew 7:7,

“Ask, and it will be given to you; seek and you will find; knock, and the door will be opened to you” (Matthew 7:7).

For the professional salesperson, the order is Seek, Knock, Ask, and Serve.

1. Seek new customers and new ways to serve existing customers, and you will find them.
2. Knock on many doors, and some will open to you.
3. Ask for the order, and customers will buy.
4. Serve before, during, and after the sale, and you will develop loyalty among your customers.

Selling is service. Your role as a relational sales professional is to serve the customer. Your ability to deliver above and beyond customer service every time to every customer will determine how many customers you sell, and how many of those customers you will retain who will become life-long loyal customers!

The 10-Step Ultimate Sales Presentation Series

Step 10: Customer Retention is the eleventh in a series of articles, created to teach you how to craft and deliver the Ultimate Sales Presentation in 10-Steps.

If you missed a previous article in this series or you want to review one again, you’ll find them here:

• Kick-Off: The Ultimate 10-Step Sales Presentation
• Step 1: The Complete Guide to Sales Prospecting for Your Ultimate Presentation
• Step 2: A Complete Guide to Planning Your Ultimate Sales Presentation
• Step 3: A Complete Guide to the Approach Step of Your Ultimate Sales Presentation
• Step 4: How to Create Your Ultimate Presentation (Presentation Part 1)
• Step 4: Key Elements of Your Presentation (Presentation Part 2)
• Step 5: How to Leverage the Trial Close in Your Ultimate Sales Presentation
• Step 6: Your Complete Guide to Flushing Out Buyer Objections
• Step 7: Your Complete Guide to Handling Buyer Objections
• Step 8: Repeat of Step 5: How to Leverage the Trial Close in Your Ultimate Presentation
• Step 9: Your Complete Guide to Closing the Sale (with Examples)
• Step10: Customer Retention (you’re here!).

Join the Conversation

As always, questions and comments are welcome. What aspect of customer service is most important to you7 in your field?

I’d love your help. This blog is read primarily because of people like you who share it with friends. Would you be kind enough to share it by pressing the share button?

Category: Salespeople

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Your Complete Guide to Closing the Sale (with Examples)

Step 9 of your Ultimate 10-Step Sales Presentation is the process of closing the sale.

In our last article, Step 7: Your Complete Guide to Handling Buyer Objections, we learned a lot about how to handle objections.  Step 8 of the Ultimate 10-Step Sales Presentation process is focused on using the trial close after handling objections. Step 8 is a repeat of Step 5. So, if you need a refresher on the trial close, please refer to the article: How to Leverage the Trial Close in Your Ultimate Sales Presentation.

Now, you should be at the stage where you have flushed out and handled all the buyer’s questions and objections, it is time to close the sale. It is the moment every professional salesperson has been waiting for!

There’s a lot more to closing the sale than simply asking for the order, so let’s dive in!

Content

In this article on closing the sale, we’ll examine:

• When should you try to close the sale?
• What buying signals should you look for?
• What makes a good closer?
• How often should you try to close?
• How to improve the odds of closing the sale.
• What are the types of closing techniques?
• What are multiple close sequences?
• Does the situation impact how you close?

 

 

When Should You Try to Close the Sale?

This is a question that almost every young salesperson asks me – when should I try to close the sale?

The simple answer is, close whenever the buyer is ready!

The technical answer to when you should close is when the buyer is in the conviction stage of the buying process (remember the buyer’s mental buying process = attention, interest, desire, conviction, purchase). In the conviction stage, the buyer is convinced your recommendation is the best solution for them.

Click here if you want a refresher on the conviction stage of the buying process.

What Buying Signals Should You Look For?

The observant salesperson is always on the lookout for signals from the buyer to assess if they are in the conviction stage and ready to buy.

Some of the most common buying signals include:

• Asking questions. Buyers asking questions like “How much is it?” When can I take delivery? or “What is your guarantee?” are signaling they are ready to make a buying decision.
• Asking another person’s opinion. A buyer who asks another person’s opinion is often looking for confirmation of their decision to buy.
• Carefully examines the product. A buyer who starts looking at the product carefully is signaling they are in the final decision-making stage.
• Gets a contract or purchase order. A buyer who starts looking over your contract or gets out a purchase order is definitely ready to buy.
• A buyer who relaxes leans forward, and smiles are signaling that the pressure to make a decision is gone. They have made their decision and are ready to buy.

What Makes A Good Closer?

No one is a natural-born closer. The newspaper never makes a birth announcement that reads, “Judy, a natural-born closer, was born today at 7:00 am.” Nope. Never happen. Every good closer I have ever known was good because they developed strong closing skills.

In my experience, every strong closer has these three skills:

• Always be closing. Relational salespeople who are convinced their product is a good solution for their buyer have a strong desire to close the sale. They prepare their sales presentations with the close in mind. Every element of the presentation is aimed directly at the end goal, which is to close the sale. The courage of their conviction drives them to want to ask for the order and close the deal.
• Ask for the order and be quiet. I am being extra polite here. What I mean to say is, ask for the order and shut up! I can’t tell you how often I’ve watched in horror as a salesperson asks for the order, waits two milliseconds for the buyer to respond, and then jumps back in talking. They talk themselves right out of a sale. Ask for the order and DO NOT say another word. DO NOT TALK! Wait for the buyer to respond. Anything you say takes the pressure off the buyer to make a decision, and at that moment the buyer may decide against you.
• Get the order and move on. The buyer said, yes. Now, finalize the deal and move on to the next buyer! Once again, I’ve seen it happen numerous times. The buyer said yes. The deal was done. However, the salesperson kept talking as though the buyer had said no. In fact, just by continuing their conversation with you may give the buyer a reason to change their mind and say no for real.

So, if you want to grow into a professional salesperson who is known as a good closer, then

• always be closing,
• know when to ask for the order and stop talking, and
• once you have the order, move on to the next buyer!

How Often Should You Try to Close?

Someone asked Jesus how often should I forgive someone? Jesus answered 70 times seven times (490 times for you non-mathletes). I do not recommend trying to close 490 times.

On the other extreme, one study found that 64% of salespeople don’t even ask for the order! So, they do all the work of researching a buyer and making a presentation, and then they don’t ask for the order one time!

The answer to the question, how often should you try to close, is somewhere between one and something less than 490 times!

What happens in a real presentation is you are moving through your presentation, verifying information using trial closes as you go. Then, during the close, the buyer raises an objection about the product, the marketing plan, or the business proposition. What do you do? You must first handle the objection (See Step 7) and then use another trial close.

If the buyer raises another objection, handle it, use a trial close, and try to close again. At some point, you will either get a yes from the buyer or a firm no. If you hear yes, then wrap up the details of the deal and move on to the next buyer. If you hear no, then thank the buyer for their time and the opportunity to serve them and move on to the next buyer.

Improving the Odds of Closing the Sale

All right, we’ve now established that you are a professional salesperson, who can pay attention to buying signals. You are anxious to close this deal. However, there are still a few things to keep in mind that will improve your odds of closing this sale.

• Have the right attitude. Present enthusiastically with confident assurance that what you are selling is a great solution for this buyer.
• Begin with the customer in mind. Plan your presentation and tell your story from the buyer’s viewpoint. The product you’re selling is solving a problem or filling a need that is important to the buyer.
• Focus on benefits, not features. Explain the key benefits of your product and how they meet the needs of the buyer.
• Ensure buyer understanding. Make sure you tell the whole story about your product and that the buyer understands what you tell them.
• Handle objections. Answer every question. Smoke out objections. Handle every real objection and confirm with a trial close.
• Use a trial close before you close. Make sure you use trial closes to confirm buyer understanding and agreement as you go through your presentation. Don’t wait until the end of your presentation to check in with the buyer!
• Look for buying signals. Watch your buyer closely. Always look for buying signals that will tell you when it’s time to close.
• Never, ever stop at the first no. Use the objection handling techniques we learned before and follow up with a trial close. Keep going until you’ve answered all the buyer’s questions, then ask for the order!
• Ask for the order. Close with a question asking for the order and then stop talking!

There are no magical closing techniques that will ensure you close the sale every time. In fact, odds are you will hear no more often than you hear yes. However, you will improve the odds of closing the sale by employing each of these nine tips.

What Are the Types of Closing Techniques?

Like many teenage boys at the time, I loved working on my cars. Over time, I bought a complete set of socket wrenches, screwdrivers, and even some specialized tools to help me get the job done. Knowing which tool was the right tool for the job was important. Closing the sale is similar.

There are different closing techniques, and each is a tool in your closing toolbox. Each closing technique is best suited for specific closing situations. A professional salesperson evaluates the buyer’s state of mind and readiness to buy and selects the right closing technique for the situation.

For example, I had one buyer with a, particularly large ego. I often found a compliment close worked well with him. Another buyer, who always had trouble making a decision responded to the alternative-choice close.

The point is, I needed to assess the buyer’s state of mind and select a closing technique that I thought was best suited for the specific situation.

In my opinion, there is no one closing technique that always works in every situation. Therefore, the professional salesperson masters several closing techniques and keeps them at the ready in their closing toolbox to be used when the need arises.

Here are twelve of the most common closing techniques that I think you should master.

Alternative Choice Close

The alternative-choice close does not give the buyer an option to not buy. Rather, the alternative-choice close asks the buyer to choose between two options.

For example. When I was roughly eleven years old, our Boy Scout troop would make and sell wreaths at Christmas time to raise money. I would trudge through the snow in my Boy Scout uniform carrying a wreath. I knocked on a neighbor’s door, and when they answered I held up a wreath made my pitch. It is surprising how many people will say no to a cute kid in uniform out in freezing weather, trying to raise money for his scout troop!

The next night before I went out, my dad suggested I take two wreaths and change my close. My close changed from “do you want to buy a wreath,” to “which wreath would you like to buy?” I assumed you’re going to buy a wreath; the question is, which one do you want? I sold a wreath to nearly every door using the alternative-choice technique.

The alternative-choice technique does not allow a choice between something and nothing. Rather, the choice is only between alternatives.

Assumptive Close

The assumptive close, as the name suggests, assumes the buyer says yes. The salesperson presents the suggested order, assumes the buyer says yes, and continues to close the deal.

For example. When I was a young sales manager, I developed a great relationship with a senior buyer at a wholesaler. I came in early, evaluated his inventory, completed the purchase order for him, and then met with the buyer. Using the assumptive close, I simply handed the completed purchase order to the buyer, asked him to review it, and add his signature.

The assumptive close is effective when the buyer and seller have established a strong, trusting relationship.

Balance Sheet Close

As the story goes, the balance sheet close was developed based on a decision-making tool of Ben Franklin. When faced with a decision, Ben would grab a piece of paper and draw a line down the middle. He then wrote pros on one side and cons on the other side. If the pros outweighed the cons, he would go ahead. If the cons outweighed the pros, he would not do something.

In the balance sheet close, the salesperson draws a line down the middle of the paper. Then, either list the pros and cons themselves or invites the buyer to participate in building the list. The cons, especially if mentioned by the buyer, are clues to possible objections. Cons should be offset in some way by pros.

I must admit, in all my years of selling, I never used the balance sheet close. However, I have had it used on me. A stockbroker I consulted used the balance sheet method to outline the pros and cons of a particular investing strategy. The complexity of the strategy made the pros and cons list a valuable guide in helping make my decision. As a buyer, the balance sheet helped me get clarity on what investment approach was right for me at that time.

Modified Balance Sheet Close

The modified balance sheet close uses the same strategy as the balance sheet close. However, only pros are listed on the paper. The idea is to state a case for why a purchase is a wise decision without bringing up negatives.

In this way, the modified balance sheet close is similar to the summary of benefits close.

Compliment Close

Everyone loves compliments. The compliment close is especially effective with

• buyers with well-developed egos,
• buyers who consider themselves to be experts, and in some cases, with
• buyers who have low self-esteem.

Sincere compliments tend to open communication and cause the buyer to listen with an open mind.

For example. I loved selling to chefs. Their creativity and attention to detail always impressed me. Most chefs considered themselves to be experts in their field, and many had life-size egos to go alongside their expertise. They were perfect candidates for the compliment close. To a well-known dessert chef, I said, “Chef, you’re the expert at making frosting and decorating cakes. Our shortening is designed to meet the exacting standards you require for your cakes. I’d like you to try making some frosting with our shortening and see what you think.”

Impending Event Close

The impending event close suggests some impending event requires an immediate decision from the buyer. If you think about it, you are surrounded by the impending event closes. Advertisers love to use the impending event strategy to drive consumers to buy now.

• “Sale ends Thursday.”
• “Going out of business sale. Everything must go!”
• “Buy now before prices go up!”
• “Supplies are limited. Order now!”

I used the impending event close regularly when I was selling consumer goods.

For example. Whenever there was a price increase, I called on buyers to tell them to place an order right away before the prices go up. Or, when resources were in short supply, I called buyers telling them about the predicted shortage and urged them to increase inventories by placing orders while they could.

The impending event close is very effective, but the impending event needs to be real and not simply an attempt to manipulate the buyer.

Summary of Benefits Close

The summary of benefits close works well when the salesperson has identified the key benefits important to the buyer and has verified them through the use of the trial close.

In this case, the salesperson summarizes the benefits discussed throughout the presentation, confirms with a trial close, and then asks for the order.

For example. As a young sales representative, I was selling displays of Folger’s coffee to independent grocers. In one presentation, I said, “Ken, you said increasing gross sales and sales per square were foot was important. Do I have that right?” (Summary of benefits and trial close.) “Great. I suggest you buy 100 cases of Folgers for display on the first of the month to take advantage of increased store traffic. The display will increase gross sales and sales per square foot.” (Reinforce key benefits.)

Continuous Yes Close

The continuous yes close is similar to the summary of benefits close. However, instead of summarizing the benefits, the salesperson develops a series of benefits questions linked to a trial close, then follows with a summary of benefits close.

For example. Using the situation above, I could easily create a continuous yes close.

Me: “Ken, you said increasing gross sales was important. Is that right?”

Ken: “Yes, that’s right.”

Me: “And you said, increasing sales per square foot was also important. Right?”

Ken: “Yes, absolutely.”

Me: “Well then, since gross sales and sales per square foot are important, I suggest….” (Close using summary of benefits close)

Minor Points Close

Some buyers are indecisive or reluctant to make a final decision. These buyers tend to respond well to a minor point close. When a decision is complicated, it is easier to get a buyer to choose between two seemingly minor points that eventually lead to which product to purchase.

A menswear salesman used the minor point close technique with me when I was in the market to buy a new sports coat. I told him I was interested in navy blue but hadn’t made up my mind. He put two blue sports coats next to each other on the table. Then he asked which one do you like the feel of the fabric the most? Which one has a pattern you like the most?

In some ways, his approach was similar to an alternative choice close, but instead of asking which sportscoat I like he guided me through asking about minor points of preference.

For example. Recently my wife and I were shopping to replace her aging car. I used the minor point close with her to help her decide which model she preferred. You see, deciding which car between the two models was a huge decision. However, I started by asking her to sit in each one and asked,

• “Which seat seems most comfortable to you?”
• “Which one can you see out of the best?
• “What color interior do you prefer? The black or the beige?”
• “What color exterior do you want? The red or the silver?”

Deciding on which car was an immense decision, but by guiding her through minor points, it was easy to narrow down her choice to the exact model that now sits in our garage!

(I hope the salesman learned something as he observed how I guided my wife through the decision. I think he owes me part of his commission!)

In addition, the minor points close is especially effective with complex purchase decisions or when a buyer seems unsure of themselves. Deciding on a minor point is easier for most people, so the professional salesperson simply must guide the buyer through a series of choices until a clear decision is in view!

Probability Close

The probability close is helpful when the buyer says “maybe,” or “I want to think it over.” If this happens, the salesperson asks the buyer to state a probability that they will buy the product.

If the buyer gives a percentage between 50% and 85%, there is likely a significant objection you need to flush out and deal with before you can close the sale. Ask the buyer to describe what issues are in the remaining percentage. In this way, you force the buyer to think of the objections that are holding them back from buying. Then, you deal with the objections and move on to close the deal.

If the buyer gives a percentage between 85% and 100%, there may be some minor issues or objections. If so, you should use a minor point close or a summary of benefits close to guide the buyer through to a decision.

However, if the buyer gives you a number that is less than 50%, you have little chance of closing the sale the way things stand. At this point, the only thing you can do is start the selling process over because there are some major issues or objections you need to flush out and handle.

Negotiation Close

The negotiation close is effective in industries where terms and conditions are often points of negotiation. Good examples of industries where a negotiation close is common are in home sales, commercial property, and vehicle sales.

The desire of the professional salesperson is to close the sale with both the buyer and seller, feeling like they got a fair deal.

Price is a common point of negotiation, but so are the terms of the sale, delivery timing, add-on features, and a host of other things.

The key to using a negotiation close effectively is to be positive, enthusiastic, and demonstrate a sincere desire for both you and the buyer to be happy with the deal.

What is a Multiple Close Sequence?

As I mentioned earlier, there is no one closing technique that works every time in every situation.

Professional salespeople who are strong closers learn how to use most, if not all, of these closing techniques. When a buyer shows some signs of resistance to one approach the strong closer switches to another closing technique and keeps going.

One of my personal favorite closing techniques is the summary of benefits close. However, if the buyer said no, I needed to change my approach. I need to determine what objection I missed, use trial closes to handle the objection, and then continue.

Instead of staying with the summary of benefits close, I might use the continuous yes or the minor points technique to close the sale. The reason I would choose continuous yes or minor points techniques is they both allow me to move slowly, confirming each specific benefit point until I can try to close the sale a second time.

Moreover, being able to assess the situation, the mood of the buyer, and switch closing techniques is what marks a professional salesperson, who is a strong closer.

Does the Situation Impact How You Close?

The professional salesperson who is a strong closer seems to know intuitively what will work best in any given situation. However, that intuition takes years of experience to develop.

So, here is a shortcut guide to help you decide which specific closing techniques are most effective in specific situations.

• The customer is indecisive. You need to force a decision. Use the alternative choice, a summary of benefits, compliments, continuous yes, minor-points, balance sheet, impending event, probability, or negotiation techniques.
• The customer is an expert or is egotistical. You need to let them make the decision. Use compliment, balance sheet, probability, or negotiation techniques.
• The customer is hostile. You need to calm the situation. Use compliment, continuous yes, probability, or negotiation techniques.
• The customer is a friend. You have a trusting relationship. Use assumptive, probability, or negotiation techniques.
• The customer has preconceived notions. You need to focus on benefits. Use balance sheet, probability, or negotiation techniques.
• The customer wants a “deal.” You need to help them feel good about their purchase. Use impending events, probability, or negotiation techniques.

Again, my disclaimer is every buyer, and every situation is different. What will work beautifully with one buyer may also result in you having the door slammed in your face with a different buyer. This is precisely why you must master multiple closing techniques and learn how and when to employ them to close your sale!

The Ultimate 10-Step Sales Presentation Series

Step 9: Closing the Sale is the ninth in a series of articles, which have been created to teach you how to craft and deliver the Ultimate Sales Presentation in 10-Steps.

If you missed a previous article in this series or you want to review one again, you’ll find them here:

• Kick-Off: The Ultimate 10-Step Sales Presentation
• Step 1: The Complete Guide to Sales Prospecting for Your Ultimate Presentation
• Step 2: A Complete Guide to Planning Your Ultimate Sales Presentation
• Step 3: A Complete Guide to the Approach Step of Your Ultimate Sales Presentation
• Step 4: How to Create Your Ultimate Presentation (Presentation Part 1)
• Step 4: Key Elements of Your Presentation (Presentation Part 2)
• Step 5: How to Leverage the Trial Close in Your Ultimate Sales Presentation
• Step 6: Your Complete Guide to Flushing Out Buyer Objections
• Step 7: Your Complete Guide to Handling Buyer Objections
• Step 8: Repeat of Step 5: How to Leverage the Trial Close in Your Ultimate Presentation
• Step 9: You’re Here!
• Step10: Coming soon. The final article in this series releases in two weeks.

If you want to make sure you don’t miss one of these articles, you can sign up to receive the series here.

Join the Conversation

As always, questions and comments are welcome. Which closing techniques do you feel most comfortable with now? Which closing techniques do you need to master to increase your closing rate?

I’d love your help. This blog is read primarily because of people like you who share it with friends. Would you be kind enough to share it by pressing the share button?

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Your Complete Guide to Flushing Out Buyer Objections

The process of flushing out buyer objections is Step 6 of your Ultimate 10-Step Sales Presentation.

Salespeople tend to have a fear or flight reaction when it comes to buyer objections.

Every salesperson I ever trained initially either feared or despised buyer objections. Those who feared objections eventually stumbled and fumbled their responses, and then failed. Those who despised objections became defensive and domineering, determined to “win the argument.” They also failed.

Neither response to objections is productive nor helpful. Neither will help you close a sale.

The correct response to an objection is to smile and treat it like a request for additional information.

Just in case you either fear or despise objections, my goal today is to help you see why you should welcome buyer objections in your presentation so you can handle them and make the sale!

Content

In this article on flushing out buyer objections, we’ll examine:

• Why should we welcome buyer objections?
• What are objections?
• When does the buyer object?
• Objections and the sales process
• 7-step roadmap to handle objections
• 6 common types of objections

Why Welcome Buyer Objections?

Why in the world would any salesperson welcome objections? Simply because when handled correctly, objections lead to a sale. Objections demonstrate the buyer is engaged in your presentation. They are the buyer’s way of asking for more information. Inside that objection is a clue to what the buyer is concerned about. When you meet the customer’s needs and solve their problems by answering their objections, you will make more sales.

No buyer wants to be taken advantage of or make a poor purchase decision. So, buyers ask questions and raise objections to fill in gaps in their knowledge and assure themselves they are making a good decision. When you answer their questions and handle their objections, you’re fulfilling your responsibility as a relational salesperson to help the buyer.

So, I look forward to the objections. Handling objections is one more way you serve your customers.

What Are Objections?

Buyer objections are defined as any resistance to any information or request you make as the salesperson. Simply put, an objection is just about anything the buyer says or does that interferes with the completion of your presentation.

If a buyer has been properly qualified (see MAD process), an objection is really a buying signal. Objections demonstrate the buyer is engaged, and they help us determine which stage in the buying process the buyer has reached—attention, interest, desire, conviction, or ready to buy.

When Do Buyer’s Object?

Simply put, buyers may object at any point in the sales process from the approach to the close.

So, as a professional salesperson, you need to be ready to handle buyer objections from the moment you see the buyer all the way until you have their signature on the order form.

When I was a young sales representative, our company announced a price increase that would take place almost immediately. I had to call on all my customers within a few days to take orders before the price increase went into effect.

As I approached one buyer, he shouted out to me, “You know I don’t see salespeople on Tuesday. Come back on my regular buying day!

I admit I was more than a little annoyed at his rudeness. However, I took a couple of deep breathes, smiled and said, “Sorry, to bother you. I know it’s not your regular buying day, but I have a price increase to tell you about that goes into effect before your next buying day.”

Then I stopped talking and waited.

He put his papers down, looked up from his desk, and gruffly invited me into his office. Had I walked away at his first objection; I would have lost a sale. In a few days, when he discovered he missed the opportunity to buy before the price increase, he would have been mad he lost out, and he would have blamed me!

Buyer Objections and The Sales Process

Some inexperienced salespeople have a tendency to start their presentation and keep talking without taking a breath until they ask for the order at the end of their presentation. Then, the buyer raises an objection, and the salesperson has no idea what to do next.

That is not the way you, a professional salesperson following the Ultimate 10-Step Sales Presentation, deliver your presentations!

If you refer to the illustration of the Ultimate 10-Step Sales Presentation (above), note that Step 6 is Determine Objections. Determining objections comes after using a Trial Close.

You use a trial close after every major selling point. Remember, the trial close asks the buyer’s opinion; it is not a decision to buy.

The trial close will either cause the buyer to agree with what you’ve presented or cause them to ask a question or raise an objection. If the buyer objects you…

1. determine the objection using one of the objection handling techniques,
2. address the buyer’s objection,
3. use another trial close to determine if you have answered the objection satisfactorily, and
4. then transition back into the presentation.

If at the end of step 3, the buyer still has an objection, you jump back up to step 1 and repeat the process until you have addressed the objections to the buyer’s satisfaction. Then and only then do you move on to step 4 and transition back to the main body of your presentation.

7-Step Roadmap to Handle Objections

One of the first things new salespeople need to learn is how to handle objections.

As they get more experience, salespeople realize it’s a lot easier to plan for and build answers to common objections into the presentation. By building answers to common objections into their presentations, you answer the objection before the buyer even raises it.

In this section, we will consider how to plan for objections ahead of time, then how to build answers into our presentation, and finally, how to handle other types of objections as they arise.

1. Plan Ahead of Time

You know what they say, “prior planning pays profits promptly!” This saying is certainly true when it comes to planning for objections. When planning your presentation, you should think of what questions the buyer might have about your product. Also, think about what objections the buyer might have to buying your product. In other words, think about why the buyer might say, “no.”

I always encourage new salespeople to keep track of the questions and objections they get from their buyers and which responses helped make the sale. Similarly, consider which responses did not have the desired effect on the buyer. Improve the good and eliminate the poor responses from your selling skillset.

The more presentations you make, the more times you’ll hear similar objections, and the better prepared you’ll be to handle them.

2. Anticipate Objections

In the previous step, I asked you to consider what objections might arise ahead of time. Now as you develop your presentation, I want you to build answers to all these questions and potential objections into your presentation.

In this way, you’ll deal with the question or objection that may be forming in the buyer’s mind before they even have an opportunity to verbalize it. That is why it is so important to catalog questions and objections you frequently hear so you can build the answers into your presentation!

An objection anticipated is an objection forestalled!

A second way to deal with objections is to discuss your product’s disadvantages before the buyer does. Almost every product has some disadvantages. If you think a disadvantage might be an issue with your buyer, then the best course of action is to address the disadvantage directly in your presentation.

An anticipated disadvantage will never be raised.

A third way to handle an objection is to reframe it as a benefit. For example, price objections are among the most common objections you’ll hear as a salesperson of premium products. I like to reframe the price of a premium product. You can discuss the premium product’s price in terms of investment, lower cost per use, or lower cost over time, etc.

A reframed disadvantage becomes a benefit.

3. Handle Objections Promptly

A common question among new and experienced salespeople alike is, “When should I handle an objection?”

In almost every case, I recommend handling objections as they arise. Ignoring, or not dealing adequately with an objection, will cause the buyer to negatively react to your presentation.

I have one exception to the “handle it right away rule,” and that is if you are just about to address the topic the buyer brought up. If so, I suggest you acknowledge the buyer’s objection with a statement like, “I’m glad you asked that. I am going to talk about that next.” Then finish the point you are making and transition into the question the buyer asked. Say something like, “You asked about (fill in the blank) a minute ago. I want to cover that now.”

So, handle objections as they arise, unless it is something you are going to cover in just a moment. If you delay handling an objection, make sure you acknowledge the buyer’s objection as you transition to handle the objection, and then again as your transition back to your presentation.

4. Remain Positive

By all means, remain positive. Remember, the objection is a request for information that handled properly brings you closer to making a sale. So, smile and handle that objection respectfully.

Remember, you are there to serve the best interests of your customer, including all those requests for additional information that come in the form of an objection.

5. Actively Listen

There is a tendency for salespeople to start answering an objection before the buyer has a chance to finish a sentence.

Inexperienced salespeople want to demonstrate their knowledge, so they answer before they’ve heard the whole question. Experienced salespeople assume they know where the question is going just because they’ve heard it so many times before.

Do not be that salesperson!

Never interrupt your buyer. Listen carefully as the buyer expresses their concern. When they are finished, then you can decide how to handle the objection best. Until then, practice your active listening skills!

6. Seek to Understand

Not all objections are created equal. Before you decide how to answer an objection you must decide whether the objection is a simple request for more information, whether it is an objection based on a specific condition, whether the objection is a functional or emotional one, and finally, whether the objection is a major or minor issue.

Request for Information

Many objections are simple requests for more information. That means the buyer has a desire for the product and is likely already in the conviction stage of the buying cycle. In the conviction stage, the buyer is already convinced buying your product is a good idea. Their questions simply reflect a need to get enough additional information so they can be sure of their decision.

Conditional Objection

A conditional objection is one where the buyer is saying they will purchase if a specific condition is met.

Conditional objections are common in sales fields like automobile and home purchases.

For example, the last time I purchased a car, I offered the dealer a price several thousand dollars under the sticker price. This was a conditional objection. I was willing to purchase the car if the dealer met my condition.

Major or Minor Objection

Whether the objection is relatively important or unimportant to the buyer determines how you will respond to the objection. You want to concentrate your efforts on objections that that is directly related to an issue important to the buyer. An important objection requires your focused attention to deal with the objection satisfactorily.

On the other hand, an objection to a relatively unimportant issue does not require a major discussion to resolve. So, don’t make a mountain out of a molehill.

Often less experienced salespeople will tackle every buyer objection, whether important or unimportant, as though they were planning an assault on Mt. Everest. Experienced salespeople learn to give objections to the attention they deserve to address them satisfactorily, and then they move on with their presentation.

Real or Hidden Objection?

Sometimes, and I know this will come as a surprise to some of you, but buyers don’t always say what they mean when they object to something. Sometimes they will offer a real, tangible objection like “your price is too high.” But their real objection is hidden. What they really mean to say is, “I don’t think I can afford it.”

Price is the stated objection, but the real objection, the hidden objection, is their concern about affordability.

It takes experience to sense whether a stated objection is the real one, or if there is an objection the buyer is hiding.

One way you can tell whether an objection is real or if there is also a hidden is to respond to the stated objection assuming it is real. Then, if the buyer continues the objection to the same issue, you may be dealing with a hidden objection.

I had one buyer who wanted to discontinue a product I was selling him. I tried to determine his reason, and he kept giving me different reasons. I dealt with each objection. Finally, somewhat exasperated, I said, “Look, your business is very important to me, and I feel like you’re not telling me what is really driving your decision to discontinue this product. I can’t help you if you aren’t frank with me.”

Finally, he broke down and told me the real reason he was planning to discontinue the product. Once he finally gave me the hidden objection, we worked together to solve the problem, and I kept the product in distribution.

7. Respond to the Objection

Now that you thoroughly understand the objection, you are ready to respond.

How you respond to the objection depends on your understanding of the objection (what we just discussed), and the type of objection (what we will discuss next).

Six Common Types of Objections

The vast majority of objections you will hear throughout your career will be one of these six types:

• Hidden,
• Stalling,
• No-Need,
• Money,
• Product, or
• Source

Learning about the six types of objections and developing a plan to address each type will enable you to handle them more effectively and efficiently.

1. Hidden Objections

Hidden objection, as the name implies, are objections the buyer hides from the salesperson. The buyer hides his or her true objection either by asking unimportant questions to deflect the salesperson or by their silence.

Buyers hiding their true objections will often pleasantly converse with the salesperson, yet never reveal their true objections.

Overcoming the hidden objection begins with the salesperson listening carefully to the buyer’s tone of voice, observing their body language, and noting their response to the salesperson (either unimportant questions of the silent treatment).

Then, the challenge for the salesperson is to open up communication with the buyer through a series of open-ended questions. Eventually, through these questions, the salesperson may be able to get the buyer to open up enough to reveal their real objection.

When subtle methods fail to get the buyer to reveal their real objection, a direct approach may be effective. The direct approach asks the buyer directly and specifically what the hidden objection is so it can be resolved.

I had one buyer who I had worked with successfully for months suddenly resist my recommendations and showed signs of having hidden objection. After several minutes of asking open-ended questions to get him to reveal the hidden objection, he would not budge.

Finally, I closed my notebook, edged up closer to his desk, looked him straight in the eyes, and said, “Look, our relationship is a bit like a marriage. If you don’t tell me the truth, we can’t solve this problem. But I am confident if you tell me what is really bothering you, we can deal with it together.”

It was a risky move, but I felt our relationship was strong enough to withstand my challenging approach. Suddenly, he relaxed, and told me what was really going on was an issue from upper management he didn’t personally agree with, but he felt he had to follow their direction. Together we worked through the problem in a way that made him look good to his superiors.

2. Stalling Objections

The stalling objection is a common tactic and is usually a false objection.  Common stalling objections are: “I’ll think it over and get back to you,” I think I have enough inventory, check with me next time,” or “I need to check with my boss and get back to you.”

The first thing you need to do to deal with a stalling objection is to determine if the objection is real or false.

For example, if the buyer objects saying they have enough inventory, you need to determine if they have enough inventory to carry them until the next visit.

I had buyers use this stalling technique many times.

• Sometimes they had enough inventory, and I just needed to wait until my next visit. When that is the case, be honest and tell them you agree they don’t need to order this trip.
• Sometimes the buyer didn’t have enough inventory to carry them through until my next visit. When that was the case, I needed to discover why they were reluctant to order. There were times a small customer just didn’t have the cash flow to place an order right then, and it would be bad business to push them to buy when they couldn’t afford the order.
• Other times, they had an inventory coming up, and the real reason they stalled was they didn’t want the order to arrive before their inventory.

As you can see, some reasons for the stall are valid, and some are not. It is up to you to determine which is which and then take appropriate action.

3. No-Need Objections

No-need objections typically arise either when the buyer uses a similar product, and they have no intention of changing, or when they don’t see the need for the product at all.

With either case, the buyer may listen politely and then say, “Thanks, but I’m not interested now,” or “Thanks, but I’m happy with the product I’m using now.”

The challenge with the No-Need objection is, it doesn’t give the salesperson much of a clue what to say or do next.

Overcoming the No-Need objection requires you to open the conversation up and keep it going. If you know the buyer uses a similar product, you may be dealing with buyer loyalty to the product. If so, consider dealing with the objection as though it were a product or source objection.

If the buyer doesn’t use a similar product and they say they have No-Need, then to overcome the objection, you need to be able to demonstrate how your product can solve a problem for the buyer.

4. Money Objections

Money objections are among the most common you’ll encounter as a salesperson: The product costs too much, I can’t afford that, or I don’t have any money.

One difficulty of dealing with price objections is they are false objections as often as they are real objections.

Think about your own buying habits. If you’re like me, I bet you’ve told a salesman you couldn’t afford something when, in fact, you could. The real issue was you weren’t ready to buy, or you weren’t convinced the benefits of the product outweighed the price.

On the other hand, the price objection may be very real. A buyer may be comparing your price against competitors who is less expensive.

Overcoming real price objections requires the salesperson to reframe the value of the product, so the benefits outweigh the price. For example, often the operating cost of a premium product is lower than a less effective, lower price competitor. You can overcome the price objection by showing the buyer per use cost comparisons, or lifetime cost comparisons.

5. Product Objections

Objections to products usually come up either when a buyer is buying a product they are not familiar with, or when they already are buying a competitive product.

Buyers unfamiliar with the product may be unsure of their decision. They may be afraid the product will not perform as expected or that it isn’t all the salesperson claims.

Buyers familiar with the product may already be buying a competitive product and have preconceived notions about your product.

Overcoming product objections requires you to reassure the buyer about the product and the claims being made. This is usually done with some combination of guarantees, testimonials, independent research reports, and demonstrations.

6. Source Objections

Sometimes buyers are loyal to a company or a particular product. Presentations that suggest changing the source or particular product may result in what we call source objections.

Source objections came up frequently when I was selling Foodservice products. Chefs tend to be particularly loyal to both their sources and the products they use. Sometimes that loyalty was because they had a longstanding relationship with a salesperson or a supplier. Their loyalty to products was usually due to the product’s consistent performance.

Overcoming the source objection requires developing a strong relationship with the buyer. Get to know them and their specific needs. The better you understand their unique needs, the better you can serve them.

The Ultimate 10-Step Sales Presentation Series

Step 6: Determine Objections is the seventh in a series of articles, which have been created to teach you how to craft and deliver the Ultimate Sales Presentation in 10-Steps.

If you missed a prior article in this series or you want to review one again, you’ll find them here:

If you want to make sure you don’t miss one of these articles, you can sign up to receive the series here.

Join the Conversation

As always, questions and comments are welcome. What process do you use to flush out objections in your presentations?

I’d love your help. This blog is read primarily because of people like you who share it with friends. Would you be kind enough to share it by pressing the share button?

Category: Salespeople

 

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How to Leverage the Trial Close in Your Ultimate Sales Presentation

The Trial Close is both Step 5 and Step 8 of your Ultimate 10-Step Sales Presentation.

Yes, indeed, the trial close is so important; it is two steps of your Ultimate 10-Step Sales Presentation!

The reason is simple. If you don’t understand and master the trial close, you might as well look for another career right now. Without the trial close, you’ll never be a top salesperson.

Think about it for a moment. Have you ever been a buyer when the salesperson pitched their product, and they never stopped talking until they asked for the order? So, have I! I didn’t buy their product either!

Here’s what happens. The salesperson starts talking. You have a question, but they keep talking. As they talk, you realize you don’t agree with what the salesperson just said, but they just keep talking.

This goes on for what seems like an eternity.

The salesperson is talking, and all the while, you have questions and objections piling up in your head like a major traffic jam on the freeway!

Suddenly, without warning the salesperson, asks for the order. You can’t wait to blurt out, “NO!,” “HECK NO,” “OH, MY GOSH, NO,” or some other appropriate variant.

However, when used properly, the trial close will keep you from being THAT salesperson.

Instead, as you start talking to your buyer, you will stop after every major point and ask questions. If the buyer asks you a question or raises an objection, you will stop, address their question or objection, and make sure you’ve answered it to their satisfaction before you move on with your presentation.

These questions, when they are correctly constructed, are known as trial closes, and we will learn all about them today!

Content

In this article on using the Trial Close, we’ll examine:

• What is the Trial Close?
• The Four benefits of using Trial Closes.
• When to use a Trial Close.
• Examples of Trial Closes.
• How to Leverage the SELL Sequence.

 

 

What Is A Trial Close?

A trial close is an important tool for every professional salesperson. The trial close allows the salesperson to determine whether or not the buyer is ready to buy.

A trial close is different from the close!

A trial close asks for the buyer’s opinion, while the close asks for the buyer’s decision to buy. By asking for the buyer’s opinion, the trial close gives you, the seller, immediate feedback about the buyer’s state of mind.

Think of this feedback like a stoplight.

• Proceed. The buyer agrees with your proposal.
• Proceed with caution. The buyer partially agrees with your proposal. However, there is something the buyer does not agree with or something they don’t understand about your proposal. So, you need to figure out what the issue is and clear it up before you can move on to your next point.
• Stop! The buyer doesn’t agree with the claims in your proposal. You need to back up and figure out what went wrong, before moving on to your next point.

Without the trial close, you will keep going with your presentation without knowing whether the buyer is stuck on something you said four points back. Then, when you try to close the deal, the buyer says “no” and you have no idea why!

Using the trial close prevents that surprising “no” at the end of your presentation.

4 Benefits of Using Trial Closes

I have explained to you that a trial close is a tool that provides feedback regarding the buyer’s state of mind and specifically their readiness to buy. Here are four benefits to using trial closes in your presentation

1. It reveals obstacles

A trial close can help reveal obstacles that may prevent you from closing your sale. Most often, the obstacle is a question or objection that the buyer has about something you’ve said. The trial close will flush these obstacles out in the open so you can deal with them.

2. It reveals opportunities

Sometimes an obstacle, like the ones I mentioned above, are really opportunities. A buyer may like the main points of your proposal but be concerned about one thing. Maybe they think the order is too small to meet their needs, so there is an opportunity to increase the order. Or, perhaps the buyer wants to proceed but is nervous about signing a long-term contract. Here, there is an opportunity to shorten the length of the contract or provide an escape clause in the contract.

The trial close helps bring these opportunities to light

3. It builds trust and relationships

As I said before, the trial close asks for the buyer’s opinion about something. Don’t we all like to be asked for our opinion? And, don’t we love it when we sense the person asking the question actually listens to us and cares about our answer?

Asking questions and listening to the buyer demonstrates your intention to build a relationship and serve the customer.

4. It increases the likelihood of getting a “yes”

The more “yes’s” you get throughout your presentation, the more likely you’ll get a yes at the end.

Using trial closes throughout your presentation allows you to deal with obstacles while it reveals opportunities and builds trust. So, you come to the end of your presentation knowing exactly where you stand, and with the buyer having said yes to all the major points you discussed along the way.

So far, we learned what a trial close is and how it differs from the final close to our presentation. We also learned four benefits to using trial closes. Next, let’s consider when we should use trial closes in our presentation.

When to Use A Trial Close

There are four distinct opportunities to leverage the power of the trial close in our presentations.

• After every main selling point in our presentation.
• After answering any question from the buyer.
• After answering any objection from the buyer.
• Just before we are ready to close the sale.

Using a trial close at each point in our presentation accomplishes four things.

1. It tells us whether the buyer agrees with a feature, benefit, and advantage of our product or proposal.
2. It tells us whether we have successfully answered a buyer’s objection or overcome some obstacle.
3. It tells us whether or not there are additional questions, objections, or obstacles.
4. It tells us whether the buyer is ready for us to close the sale.

If inexperienced salespeople have one glaring weakness, it is the tendency to get so wrapped up in giving the presentation; they forget to use trial closes to make sure the buyer is tracking with the presentation. In effect, they are pushing forward without realizing they left the buyer behind!

Generally, when salespeople tell me they failed to make a sale, it is almost always because they didn’t use enough trial closes. In all my years of selling, I’ve never seen a salesperson lose a sale because they used too many trial closes.

Examples of Trial Closes

Remember, the trial close asks for the buyer’s opinion. So, the trial close is always posed as a question.

Here are a few examples of common trial close questions.

• How do you feel about what we have discussed so far?
• What do you think about the solution I’ve shared with you?
• How does what we’ve talked about sound to you?
• Based on what you’ve heard so far, what are your questions?
• If you had your way, what changes would you make to the proposal?
• Does the product/solution make sense to you?
• What do you think about this (insert idea/benefit)?

The trial close question you ask needs to be tailored to the opportunity. For example,

• Did you just deliver a major selling point? Then you might ask, “What do you think about this (insert benefit)?
• If you just answered a question from the buyer, you might ask, “Does that answer your question?” Or, “Does that make sense to you?”
• If the buyer just raised an objection and you answered. Then you might ask, “What do you think about this solution?”
• When you are just about ready to close the sale, you might ask, “Does the product/solution we’ve been discussing make sense to you?

One of the most common places where we lose a buyer during a presentation is when we explain a feature, advantage, and benefit of our product or proposal. That is why it is so important to use a trial close after every major selling point in our presentation.

So, let’s review the SELL sequence to see how the trial close should be used when discussing features, advantages, and benefits.

How to Leverage the SELL Sequence

In the last article, 6 Key Elements to Use in Your Ultimate Sales Presentation, I introduced the concept of the SELL sequence. As a refresher, the SELL sequence stands for:

• Show the feature,
• Explain the advantage,
• Lead into the benefit, and
• Let the customer talk!

The last “L,” let the customer talk, is where we leverage the power of the trial close. We show a feature, explain the advantage of the feature, and discuss how it benefits the buyer. Then we use the trial close to ask a question and let the customer talk!

The response from the buyer at this point tells us whether the buyer accepts the point we’ve made or whether he/she has some concern that we need to address.

The SELL sequence is especially important to use after every major selling point in the presentation where you introduce a feature, advantage, benefit combination.

The trial close is deceptively simple yet is among the most powerful tools in the salesperson’s arsenal. I urge you to master the trial close. Use it in every selling situation as often as you can until it becomes second nature.

You won’t have a better friend helping you to close sales than your trial close!

The Ultimate 10-Step Sales Presentation Series

Step 5: The Trial Close is the sixth in a series of articles, which have been created to teach you how to craft and deliver the Ultimate Sales Presentation in 10-Steps.

If you missed a prior article in this series or you want to review one again, you’ll find them here:

• Kick-Off: The Ultimate 10-Step Sales Presentation
• Step 1: The Complete Guide to Sales Prospecting for Your Ultimate Presentation
• Step 2: A Complete Guide to Planning Your Ultimate Sales Presentation
• Step 3: A Complete Guide to the Approach Step of Your Ultimate Sales Presentation
• Step 4: How to Create Your Ultimate Presentation (Presentation Part 1)
• Step 4: Key Elements of Your Presentation (Presentation Part 2)
• Step 5: How to Leverage the Trial Close in Your Ultimate Sales Presentation (you’re here)
• Steps 6-10: Coming soon. A new article releases every two weeks.

If you want to make sure you don’t miss one article, you can sign up to receive the series here.

Join the Conversation

As always, questions and comments are welcome. What questions do you have about using the Trial Close in your Ultimate 10-Step Sales Presentation?

I’d love your help. This blog is read primarily because of people like you who share it with friends. Would you be kind enough to share it by pressing the share button?

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6 Key Elements to Use in Your Ultimate Sales Presentation

The Sales Presentation is Step 4 of your Ultimate 10-Step Sales Presentation.

There is an old proverb that goes, “You can lead a horse to water, but you can’t make him drink!”

The same meaning is true for buyers. You can lead them to the right product or solution, but you can’t make them buy. Your job as a professional salesperson is to make the buyer “thirsty.” Show them why and how your product or solution is best. When you do that effectively, the buyer will buy.

Now, how do you make the buyer “thirsty?” The answer lies in how you craft your ultimate sales presentation.

Contents

In this article on crafting your ultimate sales presentation, we’ll examine:

• Three steps essential to your presentation.
• The sales presentation mix.
• Using persuasive communication to persuade.
• How to use visual aids to tell your story.
• Creating drama in your presentation.
• Using demonstrations to prove your point.
• Get ready for Murphy’s Law!

 

 

3 Steps Essential to Your Presentation

There are three essential steps to almost every presentation.

• You begin by discussing your product or idea. What are the features, advantages, and benefits of your product that will solve the buyer’s problem?
• Next, you present your marketing plan. If you are selling to a reseller or wholesaler, you discuss how they can resell your product. If you are selling to an end-user, you discuss how they will use your product.
• Finally, you need to explain your business proposition. Answer the questions: “What’s in it for your customer?” “How does the value of your product or idea outweigh its cost?”

Example

Here’s a simple example to demonstrate those three steps. In this example, I am selling Sterling Vegetable Oil to an Executive Chef who buys through a foodservice wholesaler.

• Product Features. Sterling Vegetable Oil is 100% premium Soybean oil. It is nearly colorless, and tasteless, and has been “winterized.”
• Product Advantages. Sterling Vegetable Oil’s clarity and non-oily taste make it an excellent base for your signature dressings and marinades. The winterized formula means it will remain clear even when refrigerated, unlike most other oils that get cloudy when refrigerated.
• Product Benefits. The clarity and taste of the oil mean the colors and taste of your spices will stand out in your recipe. Customers will see the bright colors of your ingredients and taste the flavor of your spices, not just oil. Additionally, you may find you can use less spice in your recipe and still have a great taste carry through in your dressing!
• Marketing Plan. Sterling Vegetable Oil comes in 1-gallon bottles, 4 to a case. It is stocked by both your primary foodservice wholesalers. With weekly deliveries from both distributors, you don’t need to carry a large inventory. Since you can reorder weekly, you don’t have to worry about running out of stock.
• Business Proposition. In the business proposition, I would discuss comparisons to competitive products, pricing, etc. I would also stress the value of using a premium oil in his signature dressings.

It’s important to note the features, advantages, and benefits are discussed when talking about the product. It is equally important to use the same feature, advantage, benefit technique when discussing the marketing plan and business proposition.

The Sales Presentation Mix

Every presentation is different, but every presentation shares six common elements. These six elements are known as the Sales Presentation Mix. The professional salesperson utilizes some combination of these elements (to a greater or lesser extent) in every presentation.

First, I’d like to introduce you to these six powerful elements. After a brief introduction, we’ll spend some time examining several elements of the sales presentation mix in more detail.

1. Persuasive Communication

Persuasive communication is critical to your success as a salesperson. You must be able to transmit your message to another person so they support your proposal. Plus, you also need to be able to persuade people to adopt your viewpoint.

2. Visual Aids

There is nothing worse than sitting across from a salesperson whose entire presentation is them talking. How boring is that?! So, as a professional salesperson, you must bring some interest to your presentation to capture the buyer’s attention and engage them. One way to do that is through visual aids.

3. Drama

Buyers see salespeople one after another, all day long. If you were a buyer, who would you look forward to seeing today? If you’re like me, the answer is someone who brings their presentation to life in some dramatic fashion. Someone who entertains me while they present.

That’s the power of adding a dramatic element to your presentation.

4. Demonstrations

Demonstrations are a great way to add drama to your presentation and engage your buyer. Good demonstrations are short, concise, and dramatically prove a point you are making in your presentation. The best demonstrations go one step further, getting the buyer into the act by inviting the buyer to participate in the demonstration.

5. Participation

Getting a buyer involved in your presentation increases their engagement and interest. So, finding ways to have a buyer participate in some way is important.

6. Proof

Buyers want to be convinced that what you are telling them is the truth, whether they say it out loud or not. The easiest way to do that is through proof statements. Proof of your claims can be provided in several forms, including testimonials, guarantees, company research, outside research, and the customer’s own past experiences.

So, there you go. We have now finished the quick introduction to the six presentation mix elements. Now, let’s take a deeper dive into using persuasive communication, visual aids, adding drama, and conducting demonstrations.

Using Persuasive Communication to Persuade

As I said before, persuasive communication is critical to the success of every salesperson. You must be able to persuade people to adopt your viewpoint. If you can’t do that, your career as a salesperson will be short-lived!

There are libraries of books on the “how to’s” of persuasive communication. In this article, I can only give you a topline look at some of the most powerful elements of persuasive communication:

• The SELL sequence,
• How to use logic,
• The power of suggestion, and
• The importance of trust.

SELL Sequence

The SELL sequence is one of the most versatile and powerful tools in the persuasive communication arsenal. Every professional salesperson must master the use of the SELL sequence.

SELL is an acronym that stands for:

• Show the feature,
• Explain the advantage,
• Lead into the benefit, and
• Let the customer talk!

You should use the SELL sequence when discussing any of the three stages (product, marketing plan, or business proposition) of your presentation.

For Example, I might ask an executive chef if the quality of the salad oil he uses in his signature dressings is important. I know he’ll say yes, of course, it is.

• Then I’ll hold up a small vial of Sterling Salad Oil and explain one feature of Sterling is it is the purest, 100% Soybean Oil available on the market.
• The advantage of Sterling’s purity is it is nearly colorless and tasteless.
• The benefit of being colorless and tasteless to you, chef, is the color and taste of the ingredients in your signature salad dressings will stand out, not the flavor of the oil.
• Then, I will let the customer talk by using a trial close. Knowing the taste of his signature dressings is important to him, I ask, “Is that important to you?”

The key to using a tool as powerful as the SELL sequence is to use the feature, advantage, benefit combination that is most important to the buyer first. Don’t start off by explaining something that isn’t that important to the buyer. Focus instead on the feature, advantage, and benefit that is most important to the buyer.

Another important tip in using the SELL sequence is to complete the sequence for each feature, advantage, and benefit before moving on to the next sequence. I’ve seen it over and over with less experienced salespeople. They are so excited they vomit out everything they know about a product in some random order that makes no sense and confuses the buyer.

Don’t be that salesperson! Be organized and follow your plan to talk about the most important thing first, then the next most important, and so on.

Logical Reasoning

Using logic as a persuasive communication tool is especially effective with analytical buyers. Analytical buyers appreciate the thought process that goes into the logical flow of establishing a premise followed by a conclusion.

A simple form of logical reasoning in a presentation calls for the salesperson to establish a major premise, then a minor premise, and finally, a conclusion.

For example. A major premise is, “Your trucking company wants to increase efficiency while reducing costs.” A minor premise is, “Brand X Trucks will increase efficiency while reducing your costs. And finally, the conclusion, “Therefore you should buy Brand X trucks from me.”

Another form of logical reasoning is called SCQA.

• Situation. Describe the current situation.
• Complication. What is the problem?
• Question. How can the problem be solved?
• Answer. Deliver your brilliant solution.

For example. You want to expand your trucking company business (situation). However, you can’t afford to expand because profits are down (complication). How can profits be increased to allow the business to expand (question)? Buy my new high-efficiency trucks that get 50% better mileage than your current fleet of trucks (answer).

These are just two of the many forms of logical reasoning that can be employed as part of a persuasive communication presentation. The important thing with these, or other logical reasoning tools, is that you adapt them to your buyer.

Suggestions Persuade

I don’t know about you, but usually, I don’t like being told what to do. If a salesperson tells me I need to do something in that “or else” tone of voice; my reaction is a hard “no!”

On the other hand, if a salesperson, respectfully suggests a course of action that will benefit me, then chances are good, I’ll take his or her suggestion.

That’s the power of persuasion through suggestion. You use suggestions to get the buyer’s attention, interest, desire, conviction, and action!

Here are six of the most common suggestion techniques you can deploy in your persuasive communication.

1. Suggestive Propositions

A suggestive proposition simply proposes the buyer should act now. It is particularly effective with buyers who procrastinate when making a decision.

For example, “Do you think it is beneficial for you to order before the price increase.?

2. Prestige Suggestions

The prestige suggestion appeals to the aspirational desire of the buyer. The buyer visualizes the prestige of a famous product or person associated with your suggestion applying to them.

For example, “Would you like to be like nine of the top ten manufacturers in your field who use Brand X?”

3. Autosuggestion

The autosuggestion technique asks the buyer to imagine themselves using or benefiting from the product. Almost every television commercial uses some form of autosuggestion.

For example, “Imagine how you will look when you lose that last 20-bs. You will be the envy of all your friends in the gym with your new physique!”

4. Direct Suggestions

Salespeople use the direct suggestion technique frequently because it is so effective. With the direct suggestion, you simply suggest what the buyer should do next.

For example, “Based on your recent sales volume, I suggest you purchase 20-cases of Brand Z.”

5. Indirect Suggestions

The indirect suggestion is also used to recommend a course of action. Often the indirect suggestion is used to assume the buyer will buy but give them a choice in how much or when to buy.

For example, “Do you think 50 cases of Brand Z will be enough for your next promotion, or would 75-cases be better?” Or, “Would you like delivery as soon as next week or would you prefer to take delivery at the end of the month?”

6. Counter Suggestions

The counter-suggestion is my least favorite technique. The idea is you make a suggestion counter to what you know the buyer wants.

For example, “Are you sure you really want the quality of these 1,000 count Island Cotton sheets?”

When you know a customer wants a specific product, the counter-suggestion can get them to defend their purchase decision. That is why I am not much of a fan of this technique. It tends to put the buyer in a defensive position, and that can easily backfire on the salesperson.

Build Trust

Trust is what I call a “hidden” element of persuasive communication. If the buyer trusts you, he or she is more likely to believe what you say. If the buyer doesn’t have a trusting relationship with you, they may take what you say with a grain of salt or disbelieve what you tell them.

For that reason, I always tell young salespeople for long-term success, be honest in all ways with everyone.

When I was a brand-new sales representative, I called on small independent grocery stores. I had trouble breaking through and selling a group of my customers. I kept calling on them every two weeks and finally got an order from one customer. Then two weeks later, I got an order from another customer in this group, and then another. Suddenly, I was flush with orders!

It turned out all these independent grocery store owners were part of a group, and they all talked to each other. The first owner ordered from me because I had quoted exactly the same prices and promotional offers to every one of my customers. Eventually, he had come to trust me. Why? Well, because I delivered exactly as I said I would, word got around, and the rest of the group ordered from me because they now trusted me.

If I hadn’t been honest with every one of the owners, I never would have gotten the first order. If I hadn’t delivered exactly as I said, I would never have gotten the other owners to order.

So, you always need to be honest with everyone all the time if you want to build trust. Trust that derives from honesty is a valuable tool in your persuasive communication.

How to Use Visual Aids to Tell Your Story

A visual aid is any physical item you use in your presentation to illustrate a key point. A visual aid leverages sight to reinforce the point being articulated. So, you appeal to two senses, hearing and sight, linked to make your point. Often visual aids are used to emphasize features, advantages, and benefits of the solution you are presenting.

Some of the common visual aids I’ve used over the years include

• Samples of the product itself.
• Photographs of the product.
• Testimonials from current users of the product.
• Product brochures and catalogs.
• Sample advertisements.
• Flip charts and posters.
• Printed presentations, including charts, graphs, and feature, advantage, benefit summaries.

I’m sure you can think of other visual tools you might use. The key to using a visual element is to use elements that support the point you are making in the presentation. You’ll just confuse the buyer if what you say doesn’t match what you show them in the visual!

Creating Drama in Your Presentation

Think about how you would feel if you were a buyer listening to one salesperson after another all day long, every day, day-after-day. How engaged would you be if the salesperson simply sat across the desk talking through a presentation, flipping through pieces of paper?

Or, would you be more engaged if they found a way to present their product in some striking, entertaining, or extravagant way?

I remember one sales rep that spoke about the quality of Iams Canned Dog Food to a buyer. He showed the buyer the can, then popped the top off the can, grabbed a spoon from his bag, and ate a big spoonful of Iams. He did this to make the point with the buyer that Iams is so pure it is fit for human consumption.

If you gagged a little bit just now, you know how I felt as he pulled this surprise move with his buyer.

I guarantee you that moment of drama engaged the buyer in the presentation. And I suspect, the buyer talked about this crazy salesperson eating dog food the rest of the week!

That’s what adding drama does for a presentation. It takes what might be a routine presentation and makes it stand out in the mind of the buyer!

Using Demonstrations to Prove Your Point

Another way to create drama in your presentation is to use demonstrations. Demonstrations are one of my favorite tools as a sales representative because the demonstration proves the point I am making in the presentation.

I have found that employing more of our senses when making a presentation always makes the story you are telling more powerful. Most salespeople talk all the way through their presentations. However, talking only employs the hearing sense, and we all know we tend to forget most of what we hear.

On the other hand, if what we hear is reinforced by a demonstration that dramatically makes the same point, we are much more likely to believe the point and to remember it. So, if you can use a demonstration to engage sight, touch, taste, and smell besides hearing your presentation will be far more memorable and convincing.

Example

I was presenting at a convention of restaurant owners about the importance of using high-quality dish soap to clean their dishes and utensils. Does that sound like a snooze fest or what?!

The topic itself is important since a restaurant’s rating from the health department is based in part on how clean all those dishes and utensils are. But most restaurant owners think soap is soap, so who cares?!

I knew I had a great story to tell because institutional Joy Dishwashing liquid is far superior to just about everything else on the market. It is a little more expensive per gallon, but it is so much more effective you can use less and still end up with sparkling clean dishes.

So, to keep my audience from tuning out, or worse, falling asleep, I conducted a demonstration to prove my point.

I filled two beakers with some water, put in equal amounts of dirty oil, and shook them up.

Then I put ten drops of a competitor’s dish soap in one beaker, and five drops of Joy in the other beaker. I shook them both up, and the results were dramatic.

The competitor’s product still had oil floating on the water and no suds. The Joy beaker had all the oil trapped in the suds and lots of suds remaining.

That demonstration proved my point far more effectively than anything I could have said! The only thing I would do differently is getting an audience member to participate by doing the demonstration as I talked him or her through it.

Demonstration Checklist

As I said, I love doing demonstrations, but to be convincing, you must spend some time planning your demonstration. Here are five things to think through as you plan your next demonstration.

1. Will the demonstration reinforce my presentation?
2. What is my objective with this demonstration?
3. Have I planned how I will conduct the demonstration?
4. Have I rehearsed every element of the presentation, so I know it will flow smoothly and achieve my objective?
5. Is there anything that can go wrong with this demonstration, and if so, how will I recover?

Remember, the whole reason for doing a demonstration is to increase the effectiveness of your presentation. You need to do three things.

• Capture the buyer’s attention and interest.
• Engage them through participation in the demonstration.
• Reinforce the features, advantages, and benefits of your product as a solution to the buyer’s problem.

One final note on demonstrations. You spend all this time and energy, creating and conducting this demonstration. Take advantage of the powerful conclusion to your demonstration by incorporating a trial close. In my Joy Dishwashing example above, a trial close might be something as simple as saying, “Do you all agree that Joy has done a better job of trapping the grease than the competitive product even though I used half as much Joy?” (We’ll talk more about the trial close and how to use them in your presentation in the near future.)

Get Ready for Murphy’s Law!

I suspect you are aware of the adage known as Murphy’s Law. Murphy’s Law states, “anything that can go wrong, will go wrong.”

You’re my friend, so let me assure you Murphy is alive and well, and his law is still in place!

As a professional salesperson, you might as well get used to the idea that things will go wrong when you are giving a presentation. However, I’m sure that you understand that I can’t possibly cover everything that can go wrong (that would be another book). Although, I know that there are two of the most common things that can and will go wrong at some point in your sales career.

Interruptions

You will be just about ready to close on a major point, and the phone will ring, or the boss will stick his or her head in the door and interrupt your presentation. What do you do? If the discussion is personal (like a spouse is on the phone) motion you will step outside to give the buyer privacy.

Meanwhile, wait and gather your thoughts. Quickly think about exactly where you left off in your presentation. Also, while you are waiting, decide how you will reengage the buyer when you resume.

Once you are ready to resume your presentation, give the buyer a moment to clear their head and focus their attention back on you and the business at hand.

Next, I like to restate the last point I made to help get the buyer’s attention back on track. In the Sterling Oil presentation, I mentioned before; I might say something like, “As I was saying, Sterling Oil is nearly clear and tasteless, which means the color, and the taste of your spices really stand out. Does that sound good to you?”

Technical Fails

Technology is often a vital element in our presentations today. Sadly, technology has a way of breaking down and not working right when we need it the most. I try to protect myself from technology failures ruining a presentation by having duplicate systems.

I don’t like to rely on internet downloads when I am in someone else’s’ office. So, I make sure that I have downloaded the videos, presentations, and everything else I need on my computer hard drive. Often, I will make another backup of all those important files on a second device like a thumb drive.

If my computer won’t run, I always have paper copies of my presentation so I can go old school if needed.

The point is, be prepared. Interruptions will happen. Technology will fail. Don’t get upset. Don’t let your frustration show. Just smile and get back on track as fast as you can and close that sale!

The Ultimate 10-Step Sales Presentation Series

Step4: The Presentation is the fifth in a series of articles, which have been created to teach you how to craft and deliver the Ultimate Sales Presentation in 10-Steps.

If you missed a prior article in this series or you want to review one again, you’ll find them here:

• Kick-Off: The Ultimate 10-Step Sales Presentation
• Step 1: Customer Prospecting
• Step 2: Pre-Approach Planning
• Step 3: The Approach
• Step 4: The Presentation – Part 1
• Step 4: Key elements of the Sales Presentation Mix to Use in Your Presentation (you’re here)
• Steps 5-10: Coming soon. A new article releases every two weeks.

If you want to make sure you don’t miss one of these articles, you can sign up to receive the series here.

Join the Conversation

As always, questions and comments are welcome. What questions do you have about the Sales Presentation Mix elements of the Ultimate 10-Step Presentation model?

I’d love your help. This blog is read primarily because of people like you who share it with friends. Would you be kind enough to share it by pressing the share button?

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How to Create Your Ultimate Sales Presentation (with examples)

The Presentation is Step 4 of your Ultimate 10-Step Sales Presentation.

So, you are a dedicated sales professional who has been following my Ultimate 10-Step Sales Presentation formula! Thus far, you have completed your sales prospecting, so you know the customer is a qualified prospect. You have also spent time developing a strategic presentation plan. Plus, you have even planned your all-important approach to begin your presentation.

Now. At last. It is time to plan a killer presentation; a presentation sure to bring success and well-deserved hearty congratulations from coworkers and bosses!

So, no more delays, let’s get started!

Content

In this article on creating your ultimate sales presentation, we will cover:

• Types of Common Selling Situations
• 4 Sales Presentation Methods
• Basics of A Group Presentation
• Win-Win Negotiating
• Which Presentation Method is Best?

 

 

Types of Selling Situations

When I first started as a sales representative, I only had to master one selling situation. It was me selling to a single buyer. However, as I gained sales experience, I found that I had to present in a variety of selling situations.

As a professional salesperson, you need to be aware of the types of selling situations that you might encounter over the course of your career. Here are five of the most common selling situations.

• Salesperson to the buyer. A single salesperson presenting to a single buyer. This is how most of us start in our selling careers.
• Salesperson to the buyer group. A single salesperson presenting to a buying group or committee. You may present to a buying group when the information is technically complex or when the dollar value of the product is above a single buyer’s authorized level.
• Sales team to the buyer group. A selling team presents to a buying group or committee. The selling team and buying committee is often made up of people from different departments with different skillsets. For example, I led selling teams comprising myself as a sales manager, along with people from sales, finance, product supply, operations, and logistics. We presented to customer buying teams comprising people with the same areas of expertise.
• Consultant selling. A lead salesperson assembles company personnel to deal with specific opportunities or solve specific problems for a customer. For example, when I was a sales manager for Procter& Gamble’s Foodservice division, I was frequently called on to work with customers as a consultant to solve a specific problem. “Why don’t our pie crusts bake evenly?” “Why are the scallops cooked at lunch lighter than the scallops cooked for dinner?” I brought in teams of experts to work specifically on these problems.
• Seminar selling. Seminar selling is often educational in nature. In the “old days,” seminar selling was often held in a hotel meeting room. For example, attorneys put on an educational seminar about wills and trusts. When they were done with the seminar, they sold their services. These days a lot of seminar selling is done via “webinars.” A salesperson presents educational material via a live stream over the internet, and when they are done, they sell their services.

Now that we have a handle on the most common selling situations, we must determine which sales presentation methods we will use for our presentation.

4 Sales Presentation Methods

Your sales presentation is a combination of persuasive verbal and visual communications of your business proposition that will solve a customer’s problem. Although to deliver a compelling presentation, you also need to match the presentation method to the specific buying situation.

There are four basic presentation methods most salespeople need to master. They are the

• memorized,
• persuasive selling,
• needs-satisfaction, and
• problem-solution method.

The primary difference between the methods is the percentage of time the salesperson is speaking. In the memorized and persuasive selling methods, the salesperson dominates the conversation. In the needs-satisfaction and problem-solution methods, both the salesperson and buyer share in the conversation.

You can think of these methods as being on a continuum from highly structured to completely customized.

 

Memorized

The memorized sales presentation method is the most highly structured method. The salesperson does 80-90% of the talking. The buyer’s participation is generally limited to responding to questions posed by the salesperson.

The memorized presentation is a “canned” presentation; delivering the same basic presentation to every prospective buyer. The salesperson discusses the same features and benefits hoping they will stimulate the buyer’s interest.

The most common use of memorized presentations today is door-to-door and telephone sales.

The memorized presentation method has several advantages.

• It increases the confidence of inexperienced salespeople.
• It ensures that a salesperson or entire salesforce delivers the same features and benefits to prospective buyers.
• It is most efficient when selling time is short.

Drawbacks of the memorized presentation include:

• It is impersonal.
• It may present features and benefits that mean nothing to the buyer.
• It has limited participation with the buyer and, therefore, may be perceived as a high-pressure sales presentation.
• It is not effective for complicated selling situations or technical products.

Persuasive Selling

The persuasive selling presentation method is a powerful tool for both new and experienced salespeople. It is less structured than the memorized presentation. The salesperson typically controls the approach and beginning of the presentation but then engages the buyer more and more as the presentation continues.

The persuasive selling method has several advantages.

• It provides an opportunity for more buyer/seller interaction.
• It provides a logical framework and flow of information.
• It allows the salesperson to handle anticipated questions and objections.

The primary drawback of the persuasive selling model is that the structure is less flexible than the need-satisfaction or problem solution methods. Its more formal structure makes it less suitable for complex selling situations.

With the persuasive selling method, the presentation follows a formula or outline. A typical outline for a persuasive selling presentation includes five steps.

• Summarize the Situation
• State Your Idea
• Explain How it Works
• Reinforce the Key Benefits
• Suggest an Easy Next Step

Summarize the Situation

Summarize the situation that leads to the purpose of your presentation.

For example, “Last time we met, you mentioned needing to increase sales by 5%. Is that still the case?”

State Your Idea

State your idea regarding a solution in clear, simple terms.

For example, “My idea is for you to feature Product X in your advertising and support the feature with a display.”

Explain How it Works

Share the details of your proposal. Include information about the product, pricing, timing, and etc., so the buyer understands how your proposal will solve his/her problem.

For example, “We know features and displays on Product X increase sales volume by 5x. I suggest you feature Product Super Duper Extra Large Size in your feature on (date). I will come in the week before the ad and build a display for you.”

Reinforce Key Benefits

Reinforce the key benefits by restating why your proposal solves the buyer’s problem. Focus on the key benefit(s) that are most important to the buyer.

For example, “As I said, a feature and display of Product Super Duper usually has a significant impact on sales. I estimate your sales will increase to (estimate) during the week of the feature and display.

Suggest an Easy Next Step

Close the sale by suggesting the next steps, which are needed so you can successfully follow through in your proposal.

For example, “If you submit Product Super Duper for a feature on (date), I will order X number of cases of Super Duper to arrive the week before the feature. Then, on the day before the ad breaks, I will come in and build a display for you.”

Need-Satisfaction

The need-satisfaction presentation method is the most difficult to master. The entire presentation is often a back and forth conversation between buyer and seller. For this reason, the salesperson needs to be able to adapt their style and the information they convey to the seller throughout the presentation.

The need-satisfaction method has several advantages.

• It is highly flexible and customizable.
• It is particularly well-suited for the sale of complex, highly technical products.
• It is most effective at uncovering and prioritizing buyer needs.

The primary drawback of the needs-satisfaction method is the open-ended conversational nature of the presentation process. This makes it a difficult method for less experienced salespeople to master.

As the name suggests, the salesperson begins by discussing the buyer’s needs, then clarifies and summarizes the buyer’s greatest need, and finally, demonstrates how their product will meet the buyer’s needs.

Need Development

The presentation begins with the salesperson, asking a probing question to begin the process of ascertaining buyer needs. The salesperson asks a series of these probing questions to understand as much as possible about all the buyer’s specific needs and problems.

It is not uncommon for half or even more of the presentation time to be spent in the need development phase.

For example, a probing question for a computer salesperson is, “What tasks do your employees use your computers for? Or, “What software do the people in your company use the most?”

Need Awareness

Once the salesperson understands the buyer’s needs and problems, it is time to narrow down the needs/problem to the most important one to solve. The salesperson should then restate the need/problem and confirm with the buyer.

For example, “From what you’ve told me, the biggest problem your accounting staff has is they need to be able to see what people in other departments are spending. They use the Super Deluxe Accounting software package, but they are not on the same network, so they cannot see what various departments are spending. Is that correct?”

Need Fulfillment

The need fulfillment stage is the final phase of the needs-satisfaction presentation method. In this stage, the salesperson demonstrates how their product will meet the buyer’s needs or solve their problem.

For example, “I can certainly understand the importance of having your accounting staff computers networked with common software so they can see what each department is spending. My company makes an internet hub specifically designed to link seamlessly all the computers in the accounting department. It is fast, reliable, and is expandable so it can grow as your company grows. I suggest our training team come in and train your accounting department the week before the technical crew installs the new system Is next week good for the training or would the following week be better?”

I’ve used the needs-satisfaction method numerous times throughout my career.

Often, with complicated situations, I’ve had to spend an entire appointment on just needs development and needs awareness phases. When this happens, I will take the time between appointments to think through all the buyer’s needs/problems and select the best features, advantages, and benefits. Then in my next meeting with the buyer, I will use the persuasive selling method to present my solution because I already know the problem I need to solve for the buyer!

Problem-Solution

The problem-solution presentation method is a completely flexible, customized presentation that requires full engagement between buyer and seller. It is like the need satisfaction method because it is designed to uncover specific buyer needs or problems and then provide the appropriate solution. The primary difference is the problem-solution method is designed to handle a situation where the buyer may not even understand the problem or know how to solve it.

The problem-solution presentation method has several advantages.

• It is highly flexible and completely customizable.
• It is best suited for highly complex technical situations.
• It provides an in-depth analysis of specific needs or problems.

The problem-solution presentation method also has several disadvantages.

• Its complexity makes it difficult for inexperienced salespeople to manage the entire process.
• It is time-intensive, often taking several appointments involving multiple disciplines, over a period of weeks or even months.

Multiple Steps are Needed

The problem-solution presentation method consists of multiple steps. Here are eight steps I follow using the problem-solution presentation method.

• Agreement between buyer and seller to complete the analysis.
• Assemble the seller team and identify the customer’s mirror team.
• Agree on a timeline and the scope of the analysis.
• Conduct the actual analysis.
• Form conclusions and recommended courses of action based on the analysis.
• Develop the sale presentation based on the analysis, conclusions, and recommended course of action.
• The sales team delivers the sales presentation to the customer mirror team.
• Implement the agreed-upon actions.

Example

I can’t give you a verbatim example of a problem-solution presentation, or this article would likely run several hundred more pages than you would want to read! However, I can give you an example of a situation where I used the problem-solution method.

I was in a role where I led teams of salespeople, finance, and product supply experts to analyze entire departments of a grocery store. The goal was to maximize department profits by optimizing the product assortment and layout of the department.

The analysis required the retailer to provide months’ worth of detailed financial and volume information for every product carried in the department. We combined their information with complicated psychographic information to determine the mix of products that would maximize profits and customer satisfaction. Then, with the optimized assortment, we designed shelf layouts that incorporated each product in its most logical and efficient location.

Once the analysis, conclusions, and recommendations were developed, we assembled all the information in presentation notebooks. With all the data these presentations typically ran over 100-pages!

Finally, when everything was printed, our selling team comprising of salespeople, finance, and product supply folks, presented to the customer’s mirror team. Often these presentations ran over two hours.

Once all the agreements were made, we established implementation teams responsible for making the changes in every store.

All-in-all it was not uncommon for this process to take 2-3 months for every retailer we worked with. However, we only committed to this kind of work when there was a significant long-term upside for our company! Given all the time, energy, and expertise to do the analysis and make the presentation.

Both the need-satisfaction and problem-solution presentation methods may involve presenting to a group of people. So next, let’s look at some of the nuances of presenting to groups.

Basics of A Group Presentation

There are two types of group presentations I participated in or delivered over the years. One type is what I call the one-to-many, where I present to a customer’s group. The other type and the one I liked the most is the many-to-many, where a group from the seller company presents to a group from the buyer company.

Delivering successful group presentations is complicated because many people are involved, you cover a lot of material, and the material itself is usually complicated.

I can’t possibly cover everything about running a successful group meeting in this article. Nonetheless, there are a few basics you must understand to conduct successful group presentations.

Get plenty of space

These group presentations are often conducted in a large meeting or board room. There’s nothing worse than stuffing 15 people into a room that holds ten.

Arrange for more time than you think you’ll need

If you need 90 minutes, ask for two-hours. No executive will complain if you finish 30 minutes early, but you stand the risk of losing people if you go over your allotted time.

The more people, the more structured the presentation method. Controlling the attention of any large group requires a presentation that is highly structured and organized.

Start with introductions

Chances are individuals who know each other, but not everyone else in the room, so start with simple introductions of name and role.

Publish an agenda

Let the people know what will be covered and in what order. This is also a perfect time to let people know what to expect for the rest of the meeting.

Have a designated question and answer time

Open questions and answers throughout a presentation with large groups are too distracting. If there are major sections to your presentation you can have a question and answer session for each section. Otherwise, you may elect to have one question and answer section at the end of the presentation.

Assign a timekeeper

For very complicated, long presentations, have someone on your team serve as a timekeeper to help keep you on track and from going over your time limit.

Appoint a designated note-taker on your team

The note taker needs to capture key comments, questions, and agreements for reference later.

Get engagement and agreement as you go

I know I said not to have open questions and answers throughout the presentation, but that doesn’t mean you make the presentation like a robot from the front of the room. If you see head nods, ask if they agree. If you see someone with a concerned or quizzical look on their face, ask if they have a question. If the issue is simple, handle it. Otherwise, say you’ll answer their question in just a moment (or in the Q&A at the end).

Focus on benefits

Talk about and reinforce the key benefits of your solution throughout your presentation. If there is a product supply person in the room, mention the benefits that accrue to that department. If there is a finance person talk to them about financial benefits. And so on! Make sure every person in the room hears the benefit of the proposal as it pertains to them!

Summarize the benefits

Just as you’re getting ready to close, summarize, or restate the key benefits you mentioned throughout your presentation. Again, make sure everyone hears the benefit that your solution brings to them in their work!

These tips are just the basics of running a successful group presentation. I can’t guarantee your success by following them, but I can just about guarantee failure if you ignore any of them!

As you approach the close, you will almost certainly have points the buyer wants to question or negotiate. So next, let’s talk a little bit about how to set yourself and your team up for successful negotiations.

Win-Win Negotiating

I knew a few salespeople over the years who had a “take it or leave” attitude. They had one proposal, and one way of doing business and they were prepared to walk away from business if the buyer didn’t meet all their demands.

On the other hand, I also ran across a few customers who had a “take it or leave it” attitude. They made whatever demands they felt they could get away with pressuring suppliers to meet their demands. They figured if one supplier didn’t meet their demands the next supplier probably would.

I didn’t like working with either sellers or buyers who took that hardline approach.

In my opinion, a relational salesperson should be prepared to negotiate whether you are talking to a single buyer or a buying group. Over the years, I found the trick is to plan your points of negotiation ahead of time. By planning ahead of time you’ll know where you can compromise and where you cannot.

For example, you should know:

• What extra services can you provide that competitors do not?
• Is your price firm, or is there some flexibility?
• Are there payment terms or a payment plan?
• Can you provide any free services (like training) or equipment upgrades?
• Can you offer flexible delivery dates?

At Procter & Gamble (and most other large companies), our prices and terms were fixed, so I had to create negotiating flexibility in other ways. I could easily offer different shipping dates, different quantities and product assortment, and in some cases, product training.

The point is that I was clear about the things I could not negotiate. Likewise, I clarified that I was happy to negotiate where I had flexibility.

Which Presentation Method is Best?

So far, we have covered the five most common selling situations and the four presentation methods. Now, it is time to determine which presentation method is best for you and your situation.

Your selling objective is the starting point in deciding which presentation method to use. If you are making a sales presentation, you will take a different approach than if your objective is to gather the information you can use later to develop a sales presentation.

Generally speaking, if you are making a sales presentation, the memorized or persuasive selling method is best. However, if you need to understand buyer priorities or uncover buyer needs or problems then the needs-satisfaction or problem-solution methods are best.

Yet, there is no single best method. When selecting your presentation method you must consider

• the experience of the salesperson,
• your objective,
• the nature of the product,
• the information about the buyer’s need or problem,
• and a host of other variables.

We’re Not Done with our Sales Presentation!

Although we’ve made a lot of progress, we’re still not ready to see the buyer yet!

Sure, we’ve done our prospecting, some approach planning, and we’ve decided on a presentation method. However, we still need to create that all-important presentation! In the next article, we’ll take a hard look at the important elements we must include in our presentation.

The Ultimate 10-Step Sales Presentation Series

Step4: The Presentation is the fifth in a series of articles, which have been created to teach you how to craft and deliver the Ultimate Sales Presentation in 10-Steps.

If you missed a prior article in this series or you want to review one again, you’ll find them here:

Kick-Off: The Ultimate 10-Step Sales Presentation

Step 1: Customer Prospecting

Step 2: Pre-Approach Planning

Step 3: The Approach

Step 4: The Presentation – Part 1 (you’re here)

Steps 5-10: Coming soon. A new article releases every two weeks.

If you want to make sure you don’t miss one of these articles, you can sign up to receive the series here.

Join the Conversation

As always, questions and comments are welcome. What questions do you have about the Approach step of the Ultimate 10-Step Presentation model?

I’d love your help. This blog is read primarily because of people like you who share it with friends. Would you be kind enough to share it by pressing the share button?

Category: Salespeople

 

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A Complete Guide to the Approach Step of Your Ultimate Sales Presentation

The Approach is Step 3 of your Ultimate 10-Step Sales Presentation.

I am not a good golfer. I wanted to be a decent golfer because it seemed like it was an important thing for a young sales manager to be able to do.

Yes, I took some lessons to improve my game, but they didn’t do much good. So, by the end of my lessons, my instructor suggested that I should take up some other sport, preferably one requiring less eye-to-hand coordination and finesse.

I took his not to subtle hint, so if you’re interested, I have three sets of golf clubs in my attic and my wife says they are all for sale!

However, I did learn one thing on my journey to not being an accomplished golfer, which is the importance of the approach shot. The approach shot is the shot you take from the fairway up to the green. The reason this shot is important is that a good approach shot sets up an easy putt for a below-par score. Whereas a bad approach shot that lands in the water or in a bunker means you’ve still got a lot of work to do to finish the hole.

The same thing is true of the relational salesperson. A well-constructed, strategic approach will set you up for a good sales presentation. Whereas, a poor approach will leave you with a lot of work to do to recover, or maybe, an early “no” from the buyer!

If you agree with my viewpoint about the importance of the approach step, then we need to spend some quality time thinking about and designing a strategic approach for every presentation.

If you missed the kick-off article in this “how-to” series to building the Ultimate Sales Presentation, you can read it here. The second article in the series covering Step 1: Prospecting is available here. And the third article in the series covering Step 2: Pre-Approach Planning is available here.

So, let’s get started by learning how to craft an effective approach.

Contents

In this article on the Approach, we will cover:

• What is the Approach?
• 3 Objectives of the Approach.
• What is the right Approach?
• 3 Types of Approach Techniques
• 4 Types of Opening Statements.
• 2 Types of Demonstrations.
• 5 Types of Questions.
• BONUS: 4 Categories of Questions

 

 

What is the Approach?

In a personal selling situation, the approach begins the moment you are called in to see the buyer and lasts until you transition into the heart of your presentation.

An approach might last a few seconds or a few minutes depending on how long it takes to open communication with the buyer while gaining their trust in you, and their interest in how your product will meet their needs.

The approach establishes the buyer’s first impression of you. Oh, and I’m sure you know what they say about first impressions, right? You only get one chance to make a good one!

So, let’s focus on how to construct a strategic approach that will set you up for success!

3 Objectives of the Approach

We’ll talk about the types of approaches later, but regardless of the type of approach you use, your approach has three objectives. You need to get the buyer’s attention, secure their interest in what you have to say, and then smoothly transition into your presentation.

Attention

We need to get and maintain the buyer’s attention from the moment we first make eye contact and say hello!

In all likelihood, the buyer is asking himself/herself, “Why is this person here, today?” “I wonder if they can help me?” or “Is this going to be a complete waste of time?”

As we develop our approach, we must begin by securing the buyer’s undivided attention, so we can pique their curiosity and gain their interest in what we have to say.

Interest

If you did all your pre-approach planning, you should have a pretty good idea of what is most important to the buyer. A key to gaining the buyer’s interest is to demonstrate right away that what you have to say will meet the buyer’s needs or help solve the buyer’s problem.

Transition

Alright. So, now we have gained the buyer’s attention. We demonstrated that we know what is important to them, and we showed them we have a solution. Next, we need to transition directly into the heart of the presentation.

A good transition is simple and straightforward. We’ve already made some good progress by gaining the buyer’s interest. Let’s continue to pick up momentum by transitioning smoothly and immediately into our presentation.

What is the Right Approach?

The approach will often consist of two parts; some small talk to build rapport, and then the more structured, strategic lead-in to the discussion of our idea.

Because every selling situation is different, there is no one right way to approach your buyer. It is up to you to construct a strategic approach based on the situation.

Some of the common situational variables, that you must consider include:

• The product you are selling.
• How well do you know the buyer? Is this your first contact, or do you have an established relationship?
• How much do you know about the buyer’s current needs?
• How much time do you have for the presentation? Is it enough?
• How is the company’s business? Are they growing, or are they a sinking ship?

Your understanding of each of these and other variables will inform how you construct your approach to this buyer!

Now that we know we must construct a different approach for every situation, let’s talk about some of the approach techniques we can use.

3 Types of Approach Techniques

There are three common approach techniques that every salesperson should master. They are statements, demonstrations, and questions. Knowing when and how to use each of these techniques is a critical step in mastering the approach to your buyer.

Statements

Statements are a very effective way to begin your approach, especially if you know a lot about the buyer’s needs. There are four common statement approaches.

• Introduction
• Compliment
• Referral
• Samples/Premium

Demonstrations

Demonstrations are one of my favorite approach techniques because they create drama and engage the buyer in the process immediately. There are two common types of demonstrations.

• Product
• Showmanship

Questions

Questions are an excellent way to begin your approach, especially if you need to learn more about or confirm the buyer’s needs. Questions are also a good way to start your approach because they engage the buyer in the conversation right away. Five types of questions are commonly used in the approach.

• Customer benefit
• Curiosity
• Opinion
• Shock
• Multiple Questions (aka SPIN)

Now that we know about the three types of approach techniques; statements, demonstrations, and questions let’s dig in and learn more about each one. I’d like to start by examining each of the four types of opening statements.

4 Types of Opening Statements

Four types of common opening statements are used in the approach. Each one can be effective if used the right way in the right situation.

Introduction

The introduction statement is by far the most common and, in my humble opinion, the least powerful way to begin your approach.

An example of the introduction statement opening is, “Hi, Ms. Jones. I am John Smith from the Acme Distributing Company.”

The best use of the introduction statement is when you are meeting a buyer for the first time. However, because the introduction statement does nothing to really engage the buyer, I like to couple it with another opening statement like the compliment, the referral, or the premium.

Compliment

I find that most buyers are just like most everyone else. What I mean is that, just like us, (and most people), they enjoy receiving compliments. Sincere compliments regarding the overall business or directed to the buyer’s business specifically can be a very effective way to begin your approach.

Here is an example of a compliment statement: “Congratulations Ms. Smith! I just read an article in XYZ Trade Journal talking about your record year and how much you’ve contributed to the business here at the Acme Company.”

Before we go on, let me share a word of caution about using the compliment approach. Keep your compliments sincere and professional. Compliment the company or the buyer’s business. Also, I would try and avoid venturing into the trap of using compliments that are personal in nature, unless and until you have a personal relationship with the buyer. My advice is, keep it professional and avoid personal compliments altogether.

Referral

The referral approach statement includes the use of someone else’s name. For example, “Ms. Jones, the CEO at Acme Freight, spoke very highly of you, and she suggested I speak with you.”

The advantage of the referral approach is when used correctly the expertise and authority of the referring party helps open communication with your buyer. The referral is a great approach tool to use if you know the buyer and the person providing the referral know and respect each other.

I’ve had referral approaches used on me by salespeople and had both positive and negative reactions. If I like and respect the referral person, I feel like I have something in common with this salesperson already. “Come on in, new friend.”

On the other hand, if I don’t like or respect the referral person, I feel like someone is trying to take advantage of me. I find myself asking, “Why in the world would I care about what he thinks, anyway!?”

So, using referrals in the approach is very powerful if the referral and referee person know and respect each other.

If you’re not sure about their relationship, you can say, “Do you know Ms. Jones, the CEO at Acme Freight?” If the buyer lights up and smiles you know the referral may help. However, if the reaction is negative, then you need to minimize the connection, disregard the referral, and move on to another approach technique.

Samples/Premium

Who doesn’t like getting a free sample or a product premium? For example, when I recently opened my mail, I received a nice pen. The pen had my company name and phone number imprinted on it and came in a little velvet pouch. I received this sample from a company who specializes in producing customized office pieces. “That’s nice,” I thought as I studied the brochure that came with the pen. If I needed imprinted pens, I would give them a call.

So, giving me a sample pen was a nice surprise. It caught my attention. In the same way, giving a premium or a sample to your buyer is a great way to start a conversation and begin the approach.

When I was a sales manager for Duncan Hines, I made it a standard practice to bake cupcake samples of our new cake and frosting flavors. I assembled trays of the cupcakes and handed them to the buyer as I sat down to discuss our new product launch.

The reason I did this is, I figured that the chances of her going home and baking a cake or a batch of cupcakes to try them was small. So, I took the initiative by making the samples for her and encouraged her to try them while I was making my presentation! It worked every time!

2 Types of Demonstrations

As I said before, demonstrations are one of my favorite approach techniques because they create drama and engage the buyer right away.

Product

The product approach simply requires you hand the product to the buyer or set it on his/her desk and wait for them to examine it. The buyer’s curiosity will almost always compel them to pick up the item and look it over. At that point, you have engaged the buyer and captured their interest.

Now, let’s revert back to my Duncan Hines example. After I let the buyer sample the real cupcake, I gave her the box of cake mix and the tub of frosting so she could see what went into the cupcake she just ate. As soon as she picked up the cake mix or tub of frosting, I knew she was engaged and interested.

Showmanship

The showmanship approach requires you to do something special and dramatic to get the buyer’s attention.

I once had a briefcase stuffed full of fake $20 bills. I put it on the buyer’s desk, and as I opened it, I told him the idea I had for him was worth over $250,000.

A salesperson I knew sold paper plates, and the brand she represented claimed they were the strongest paper plates on the market. She told me she would go into the buyer’s office with a picnic basket full of food and some of these special paper plates. Then, she proceeded to load up the paper plates with mounds of food like a hungry teenage boy at a picnic. The plates held the load, and she made her point about the strength of these plates!

For me, the reason that I like the samples and demonstration methods of approach so much is that I have had a lot of success with them over the years. They are great tools to engage the buyer and pique their curiosity.

Plus, and this is important, these methods appeal to multiple senses. Tasting that cupcake employs sight, smell, and taste. The same is true of my friend selling paper plates loaded with food. Looking at that briefcase full of money employs sight and triggers the brain to think about how the buyer can earn all that money.

The more senses you can employ in your approach, the more successful the approach is likely to be!

But you can’t rely on these approach techniques exclusively. They just don’t fit every situation. Sometimes the best and most effective approach technique is asking a series of questions, and that’s what we will learn about next.

5 Types of Questions

Questions are the best tool for the job when you don’t know everything you would like to know about a customer’s needs, or if you just want to confirm your understanding! Asking questions comes naturally for most of us but asking questions in the seller/buyer environment is a bit more complicated than you might first think.

Firstly, I find the best questions are ones you already think you know the answer to because you are simply confirming information through these questions. Second, and this is where many inexperienced salespeople falter, is they ask questions that result in negative responses. The last thing you want to do is ask questions that result in negative responses from the buyer.

I’ve found there are five common question types every salesperson should master, so let’s look at each type to see when and how they can be used.

Customer Benefit

The customer benefit approach requires the salesperson to know about the buyer’s needs. You begin by stating a need you know the buyer has that your product can fill and confirm with the buyer.

For example, if you know, the buyer has been under pressure to reduce costs, and your product will save them money you might say, “Mr. Jones, would you be interested in an idea that will reduce Acme Freight’s transportation costs by 5%?”

The customer benefit question approach is very powerful if you know there is a strong connection between something the buyer needs and what your product can provide.

The customer benefit approach is especially useful when you know a lot about the buyer’s situation, and you have little time. This is because you are engaging the buyer in an idea that is important to him/her at the outset of the presentation. The buyer is interested because you have an idea that will solve a problem!

Curiosity

A curiosity approach question is designed to pique the curiosity of the buyer.

An example of a curiosity question is, “Would you like to know how 8 out of 10 companies like yours are lowering their transportation costs?” See how I phrased this question to get a “yes” answer? I didn’t ask, “Do you know how 8 out of 10 companies like yours are lowering their transportation costs? I don’t want “no” answers coming from the buyer’s lips!

Another example of a curiosity question is, “Would you like to know how I helped Mr. Jones (the buyer across the hall) to lower their costs 5%?”

Opinion

Everyone has opinions, and most people like to share their opinions. In the opinion question approach, the salesperson asks the buyer to share their opinion about a specific situation or product.

The opinion question is especially helpful for new salespeople and salespeople calling on new buyers.

An example of an opinion question is, “Mr. Jones, would you mind sharing your opinion? I’m wondering which brand of truck you feel is most efficient here at Acme Freight.”

The advantages of an opinion question include, it puts the buyer at ease because they are sharing their expertise, and in the course of answering your question, they may provide important information about additional opportunities.

The key to using an opinion question effectively is to ask a question that is directly related to the product or service you want to sell. In other words, don’t ask about trucks if you’re selling forklifts!

Shock

A shock question, as the name implies, is designed to shock the buyer in a way that causes them to think about something related to the product you’re selling.

Shock questions are not suitable for every industry, but in the right circumstances, they can be quite effective.

An example of a shock question in real estate sales is, “Did you know that housing values have increased 15% this year? If you want to buy, now is the time before prices go up further!

A pulmonologist I know, asks patients, “Do you know you’re dying?” I know it sounds cruel, but his question gains the patient’s attention and understand the seriousness of the discussion.

Multiple Questions (aka SPIN)

In many selling situations where the salesperson needs to learn more about the buyer’s business, using a series of well-crafted questions is immensely helpful. The questions are designed to help the salesperson ascertain the buyer’s needs so you, as the salesperson, can tailor your presentation with the right features, advantages, and benefits.

A specific technique to guide the question sequence is known by the acronym SPIN. Spin stands for Situation, Problem, Implication, and Needs-payoff.

Using this the SPIN technique the salesperson asks questions:

• Situation. Ask about a specific situation or problem related to your product or service.
• Problem. Ask about specific problems or difficulties related to the situation.
• Implication. Ask about the implications of the problem or difficulty. What happens if this problem or difficulty is not resolved?
• Needs-Payoff. Ask the buyer if they have a specific need they have identified as it relates to this problem or difficulty. What is the payoff if the problem is solved?

The beauty of using the SPIN series of questions is that they can lead the buyer into telling you exactly what you need to present to solve the specific problem they have!

However, notice how there is no discussion of your specific product throughout this series of questions. You are not selling; you are gathering the information that will help you sell in a few minutes when you deliver your presentation.

So, the next step you must take is to use the information the buyer just gave in answer to the SPIN questions to discuss how your product will solve the buyer’s problem!

BONUS: 4 Categories of Questions

As I said before, asking questions comes naturally to most of us. But knowing what to ask and how to ask are critical if you want to get the information you need to help the buyer.

Asking questions will

• help open communication between you and the buyer,
• increase buyer engagement, and
• will provide the information you need from the buyer.

The questions you ask need to be directed to obtain the information that will help you help the buyer.

Since some topics are sensitive, the buyer may be reluctant to answer, they may provide only partial information. Or, in some cases, may even provide false information. Getting at the truth requires a salesperson who is empathetic, has gained the trust of the buyer and is skilled at asking questions.

I’ve found there are four types of questions commonly used in sales interviews. They are close-ended, open-ended, rephrase, and redirect.

Close-Ended

Close-ended questions are typically answered with one word; often just “yes” or “no.” They are especially helpful at guiding a series of questions to the desired endpoint. If you have ever watched an attorney questioning a witness in a trial you’ve probably noticed how the attorney uses closed-ended questions to guide the witness right to where he or she wanted.

An example of a close-ended question is, “Ms. Jones, is Acme Freight’s goal to reduce costs by 5%?” Or, “Ms. Jones, are you available at 4 pm for a conference call?”

Although with close-ended questions, it is important to anticipate the answer and phrase the question, so that you get a “yes” answer. A question with a “no” answer will often leave you stuck making it very difficult to get the conversation back on track to where you want to go.

Open-Ended

Open-ended questions provide a platform for the buyer to answer any way they want. Sometimes their answer might be just a few words; sometimes their answer could span over a few paragraphs.

Open-ended questions often start with who, what, where, when, how, or why. If you have ever watched a reporter interviewing someone for a story you’ve probably noticed their use of open-ended questions starting with one of these six words! They use open-ended questions because the heart of the story comes out as the person responds.

Just like the reporter looking for information, as a salesperson, you can use open-ended questions to gain valuable insights into a buyer’s needs or problems.

Examples of open-ended questions a commercial truck salesperson might ask include:

• What features are you looking for in your new trucks?
• How soon are you hoping to take delivery of these trucks?
• Who will be operating your new trucks?
• Where will you use these trucks?

All these open-ended questions are designed to elicit information from the buyer that will help you as the seller make the best recommendation to the buyer.

Rephrase

Sometimes, a buyer’s answer may not be clear. In that case, a rephrase question is a great tool for you to use. With a rephrase question, the salesperson restates part of what the buyer said as a way to clarify their meaning.

An example of a rephrase is, “If I understand you correctly, your number one priority is to reduce transportation costs. Is that correct?”

If you get a positive answer to your rephrase, you’ve confirmed your understanding and can move on. If you get a negative answer to your rephrase, then you must follow-up with an open-ended question to gather more information.

Redirect

A redirect question is often used to turn a negative answer back to a point of agreement.

Let’s say, for example, that the buyer has said they need to reduce operating costs of their truck fleet. Yet when you tell them the price of the new truck you recommend, he or she says “no, that’s too much.”

This is where a redirect question can save the day. You direct the conversation back to a point of the agreement saying, “I understand your concern over the price of the new truck. Do you agree that your number one priority is to increase the efficiency of your fleet?”

When the buyer confirms efficiency is important, you can continue to explain how the higher efficiency of the truck you are recommending will deliver lower operating expenses and over time will pay for its higher cost. In fact, the buyer should think of the higher cost as simply an investment in the company’s success because it will save the company money over the life of the truck!

There is a lot more to learn about asking questions in the sales presentation. I promise we’ll learn more about the art of asking questions in future articles!

The Ultimate 10-Step Sales Presentation Series

Step3: The Approach is the fourth in a series of articles. Each article teaches you how to craft and deliver one part of the Ultimate 10-Step Sales Presentation.

If you missed a prior article in this series or you want to review one again, you’ll find them here:

• Kick-Off: The Ultimate 10-Step Sales Presentation
• Step 1: Customer Prospecting
• Step 2: Pre-Approach Planning
• Step 3: The Approach (you’re here).
• Steps 4-10: Coming soon. A new article releases every two weeks.

If you want to make sure you don’t miss one of these articles you can sign up to receive the series here.

Join the Conversation

As always, questions and comments are welcome. What questions do you have about the Approach step of the Ultimate 10-Step Presentation model?

I’d love your help. This blog is read primarily because of the people like you who share it with friends. Would you be kind enough to share it by pressing the share button?

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A Complete Guide to Planning Your Ultimate Sales Presentation

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The Complete Guide to Sales Prospecting for Your Ultimate Presentation

Did you know sales prospecting is the first step in building your ultimate sales presentation?

If you have missed the kick-off article in this “how to” series to building the Ultimate Sales Presentation, you can read it here.

In this article on sales prospecting we will cover:

• Why is prospecting is necessary at some level in every sales role?
• What is the difference is between a lead and a prospect?
• 13 different methods of sales prospecting.
• The 4-step referral cycle.
• 6 things to consider when asking for a referral.
• 3 important steps to manage prospect information.

Sales Prospecting is Necessary

While sales prospecting is necessary for every salesperson, it is absolutely critical for some.

If you think because you are in a retail selling situation, so you don’t need to worry about sales prospecting, sadly, you’re wrong! Sales prospecting is a necessary part of your job, and the better you get at prospecting, the more successful you’ll be as a salesperson.

If you are in a retail sales role like insurance, real estate, or solar systems, sales prospecting is critical.

If you are in a business-to-business sales role, sales prospecting is also critical for you.

Retail Example

Our daughter, Rebekah, to help pay her way through grad school, became a sales associate at Nordstrom’s. In a few months, her manager promoted her to the position of “personal stylist.” In layman’s terms, a personal stylist is a person you go to get advice on assembling a whole head-to-toe ensemble.

Rebekah credits much of her success as a salesperson to sales prospecting. She built up books of private clients who trusted her style advice so much that they would call to make appointments with her directly.

Every single person that became a private client started out as someone just walking through the door. Her design sense and skill at prospecting turned them from casual shoppers into private clients.

B2B Example

My son-in-law, Curtis, is a talented salesperson in the commercial software field.

Curtis learned early in his sales career to focus his time on the most fruitful leads. Subsequently, those qualified leads became sales prospects. He further refined his lists of prospects into the most likely clients to purchase his firm’s products and the likelihood for sales success. (We’ll talk more about this later.)

It wasn’t long before Curtis was teaching his prospecting techniques to the other salespeople and that led to promotions and raises.

Now that we know that prospecting (in some form) is important for every sales role, let’s look into the difference between a lead and a prospect.

Who Is A Prospect?

A prospect is a buyer who has the potential to buy your product or service. Now, a lead is not the same thing as a prospect! A lead is simply when the salesperson has contact information of a client. It is only when the lead has been qualified, that it then becomes a prospect.

A lead becomes a qualified prospect when they exhibit these three characteristics:

• They must have the money to buy,
• They must have the authority to buy, and
• They must have a desire to buy.

I’ve found an easy way to remember the criteria of a qualified prospect is with the acronym M.A.D.

A qualified prospect has the:

• Money,
• Authority, and
• Desire to purchase the product!

Prospecting is the lifeblood of every sales role. Thus, keeping a pipeline full of potential prospects is critical for long-term success. Unfortunately, the problem is that prospecting is a lot of work, and it is an on-going task.

Prospecting is Hard Work

Prospecting is a lot of work because it is a numbers game. For example, for every ten leads, you may only have three possible qualified prospects. Out of those three prospects, you may close only one sale.

So, if you need to close ten sales a month, you will need 30 qualified prospects. Also, to get 30 qualified prospects, you need 100 leads! It’s hard work, and you must be willing to keep at it.

Prospecting is Ongoing

Prospecting is undoubtedly an ongoing task because you must keep that pipeline of prospects full. Every prospect you sell needs to be replaced with a new prospect.

However, it is also ongoing because you are “leaking” customers. Every salesperson loses a certain number of customers every year. They may move away, the business may close, or a new buyer might change their suppliers. There is a whole host of reasons, but every salesperson will lose some of their customers every year. Therefore, these “losses” must be replaced by new customers from the pool of qualified prospects.

Once we know what goes into a qualified prospect, we then need to get busy and find them. For that, we’ll look at some of the most common prospecting methods.

Methods of Sales Prospecting

Usually, the task of finding leads and turning them into qualified prospects is the responsibility of the salesperson. So, with that in mind, it is important for salespeople to be familiar with a variety of prospecting techniques and to use the ones that are best suited for their industry.

Prospecting Methods

Here are 13 of the most common prospecting methods. This list is certainly not exhaustive, but it is enough to keep you busy and productive!

1. Referrals. A referral is a name given to you as a lead by someone else. Usually, referrals come from your current customers and friends.
2. E-mail. You may send an email to prospects who have requested additional information.
3. Websites. How often have you been on a website and a “pop-up” asks you to fill in your name and email to get more information? The beauty of websites when it comes to gathering leads is, they are on the job 24 hours a day, seven days a week.
4. Cold canvassing. This method is often door-to-door. Also, cold canvassing requires you to contact people that you don’t already know to see if they can become qualified prospects.
5. Orphaned customers. Orphaned customers are customers whose original salesperson has left the company. So, these customers are classed as “orphaned.” Once a relationship is established, they can often be developed into loyal customers.
6. Prospect lists. The profile of an ideal customer is established and then lists of potential leads are developed from public sources of information like D&B reports, local Chambers of Commerce, etc.
7. Public exhibitions and shows. Conventions, trade shows, and other public exhibitions are a great source for leads, which might provide you with qualified prospects.
8. Direct mail. Just like the email method, a direct mail means that you communicate with a potential customer directly. Usually, you will ask for a response to see if they are interested in your product/service.
9. New businesses. You can look for new businesses under construction or scan business permit or incorporation documents for potential leads.
10. Telephone/telemarketing. Often used as a form of cold canvassing, telephone calls to potential leads are used to qualify prospects.
11. Networking. Building your personal/online network is often a starting point for referrals and center of influence prospects.
12. Center of Influence. A person with a large, established, and trusted network might be a center of influence. Center of influence people have large, established networks and are willing to refer you to other people in their network because they have a relationship with you and the other person.
13. Social media. Linked-In and Facebook, besides the other social media sites where businesses connect to consumers, can be a rich source of prospects.

Several prospecting methods include some aspect of a referral. Cold canvassing, orphaned customers, the center of influence, telephone/telemarketing, networking, and public exhibitions and shows all include some aspect of the referral. All of these methods provide an opportunity to ask someone if they know someone else who might be interested in the product.

Therefore, we also need to understand the referral cycle due to the importance of referrals in prospecting.

The Referral Cycle

Nearly every selling situation provides the salesperson with four distinct opportunities to secure a referral. These opportunities are known as the referral cycle.

In the referral cycle, the salesperson can secure a referral

1. In the pre-approach phase,
2. The presentation itself,
3. During product delivery, and
4. The service and follow-up stage.

The salesperson must be prepared to ask for a referral in each of these stages of the referral cycle.

The most difficult phase to secure a referral is the pre-approach phase. This is because you have probably not established a trusted relationship with the customer yet.

In all probability, the best opportunity to secure a referral is during the presentation phase, and specifically, at the close of the presentation.

If your product involves on-site delivery, then this is also a prime opportunity to secure a referral.

Finally, a great opportunity to secure a referral is during the after-sale service and follow-up phase. The product has been delivered, installed, and performing above expectations. The customer is thrilled. So, this is a perfect time to ask for a referral!

But, how exactly should the salesperson ask for a referral? Most people don’t like giving referrals. So, the salesperson must treat the opportunity to ask for a referral like a sale within the sale.

How to Ask for A Referral

Most salespeople don’t sell as much as they could because they don’t ask for the order. They fail to close! The same is true of referrals. Most salespeople don’t get as many referrals as they should because they fail to ask, and they fail to develop a specific plan to secure the referral.

Here are six techniques you can use when asking for referrals. Practice them. Role-play them just like you would an important sales presentation. Remember, a referral represents your best chance to make additional sales!

1. Ask respectfully. Recognize that what you’re asking is uncomfortable for some customers. Let the customer know what you are about to ask is important.
2. Ask for their help. People love to help others, especially if they have a trusted relationship with you.
3. Explain how it works. Let the customer know what you will do with the referral information they give you.
4. Describe your ideal prospect. By describing your ideal prospect, you help the customer narrow their focus. You don’t want or need a laundry list of everyone in their contact list. You only want leads that you can qualify as prospects.
5. Report back to them. Always report back to whoever gave you the referral to let them know you followed up on their leads. This is an excellent time to ask for additional referrals!
6. Thank them! Always follow back up and thank the person who took the time to give you a referral whether the referred person bought from you or not!

Now that you have referrals and a pile of leads that you have qualified as prospects, what do you need to do with all that information? How do you sort through it all and decide who to contact first? You need a system to manage your prospect information.

Managing Prospect Information

So, you’ve worked hard, and you have a pile of qualified prospects. Now what? How do you manage all this information to make the best use of your time? Well, I believe there are three key steps you need to take:

1. Collect all the information and record it in one place.
2. Classify and prioritize your prospects.
3. Schedule contact with your prospect.

Record Information

As you may already know, there are plenty of Customer Relationship Management (CRM) systems available to salespeople today. The key is to use one, even if it is a simple Excel spreadsheet, to record all the information about your prospects in one place.

The more complete the information is that you have on any given prospect, the better. At a minimum, you should know:

1. Prospect’s full name, including how they like to be called. For example, most William’s may prefer to be called Bill; most Elizabeth’s may prefer Beth. So, you need to make sure that you know their preference.
2. Preferred email address and business address.
3. Direct phone number, including cell phone if possible.
4. Name of the company.
5. Position and title in the company.
6. Personal information like college attended, degrees attained, hobbies, service clubs, etc.
7. Family information like a spouse’s name, number of children with their names and ages.
8. Source of the prospect. How did you get the prospect’s name? Was it through a referral? If so, who?

Classify and Prioritize

The next step in managing prospect’s information is to classify each prospect and then prioritize them.

Classify

An easy classification system is simply to code each prospect as “A,” “B,” or “C” priority.

An “A” prospect is one for whom you have all the basic prospect information. You have qualified them by determining they have the money and the authority to buy your product.

A “B” prospect is one for whom you have most of the basic prospect information. You may not have been able to fully qualify them knowing they have both the authority and the money to buy your product. Your next step with “B’s” is to fill the gaps in your knowledge to determine if they are indeed fully qualified prospects.

A “C” prospect is one for whom you have limited information beyond their names. These are not really prospects, but they are leads. Your next step with “C’s” is to complete your prospect profile and qualify them before taking any action.

Prioritize

Now that all our prospects have been classified, we then need to prioritize them. Your time is limited. So, you only want to call on the prospects that will most likely buy your product.

For that reason, we put the “B’s” and “C’s” aside until we complete their profile and can either upgrade them to an “A” or ignore them as leads because they are not worth pursuing at this time.

Next, we need to prioritize all those “A’s.” That’s what Curtis did. He refined his prospect lists two ways. First, he prioritized the customers with the highest potential volume. Next, he prioritized customers who he felt were most likely to purchase their product.

You need to do the same thing. Try to develop some type of criteria that makes the most sense for your business. Suggested criteria include the anticipated sales volume and the likelihood of making the sale. Score each prospect against these additional criterions to determine who is the highest priority for you to contact first.

For example, you may need to decide between a very high-volume customer with a high degree of difficulty in making the sale. Alternatively, you could focus on a lower volume customer who may be a quick, easy sale. Who is most important to approach first? Rank that customer as “A1.” Then, rank the next most important customer as “A2,” and so on.

Once all you have classified and prioritized all of your prospects, next, you will need to contact the prospect.

Schedule Contacts

Finally! The step that every salesperson has been waiting for—contacting the customer. If you’ve followed the prospecting tips outlined so far you are ready to call your “A1” prospect. After all, you are not going to waste your time on some “C” prospect that you hardly know anything about. Right?!

You can reach out to the prospect in many ways, by phone, email, direct mail, social media, or a personal visit. The key is to make initial contact with the prospect in whichever manner is most appropriate based on the information you obtained in your prospect research.

For this initial encounter, your goal is to secure an appointment to make a presentation. Since securing that appointment is so important, we have decided to dedicate our next article to the pre-approach step that includes securing your appointment.

The Ultimate 10-Step Sales Presentation Series

I hope what I shared with you here has helped you understand and appreciate the power of the Ultimate 10-Step Sales Presentation model. However, I’ve just scratched this surface here! Over the next few months, I’ll be sharing more detail about each step of the model with more examples.

So, if you want to learn more about the Ultimate 10-Step Sales Presentation model, you can subscribe to the series here. That way you won’t miss any of this valuable information!

Join the Conversation

Finally, questions and comments are always welcome. What questions do you have about the Sales Prospecting step of the Ultimate 10-Step Sales Presentation model?

I’d love your help. This blog is read primarily because of people like you who share it with friends. So, would you be kind enough to share it by pressing the share button?

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10-Steps to Your Ultimate Sales Presentation (with Examples)

One of the first things every new salesperson needs to learn, if they are to succeed, is how to develop and deliver a sales presentation. A lot of factors go into developing a sales presentation for a specific situation. However, by following a logical series of steps, it will greatly enhance the chance of making a sale.

A sales presentation is defined as “a talk giving information about a product or service that you are trying to sell, intended to persuade people to buy it.” Historically, sales presentations were delivered one-on-one with the salesperson, presenting directly to a buyer.

However, technology has expanded the traditional in-person sales presentation to include the potential for video conference presentations, telephone presentations, presentations delivered via email, and even long-form presentations delivered via internet web sales pages.

Regardless of the delivery method, a salesperson who follows a logical series of steps will have the greatest chance of making a sale.

The graphic below depicts an outline of the Ultimate 10-Step Sales Presentation:

Each step of the Ultimate Sales Presentation is important and contributes to the likelihood of making a sale. That said, not every step is needed in every selling situation. Sometimes the buyer is ready to buy after Step 4: Presentation. Sometimes the buyer will inject objections immediately as the salesperson begins, Step 3: Approach.

As I said, every salesperson/buyer interaction is different. The relational salesperson is acutely aware of this difference and will flex their presentation to meet the needs of the buyer.

10-Step Ultimate Sales Presentation

So now, let’s take a quick look at each of the 10-Steps of the Ultimate Sales Presentation.

1. Prospecting

Prospecting is the first step in the selling process. A prospect is a buyer who has the potential to buy your product or service. A lead is not the same thing as a prospect! A lead is simply someone for whom the salesperson has contact information. Once the lead has been qualified, they then become a prospect.

A lead becomes a qualified prospect when they exhibit these three characteristics:

• They must have the money to buy.
• They must have the authority to buy.
• They must have a desire to buy.

Prospecting is the lifeblood of many sales roles. Keeping a pipeline full of potential prospects is critical in industries like real estate, insurance, and vehicle sales. Even many retail businesses (like department stores) rely on prospecting to develop new customers.

2. Pre-approach/Planning

Planning is the second step in the selling process. Planning is done after we have identified a qualified prospect, and before we approach the customer.

A plan is a sales presentation strategy designed to achieve a specific end goal. A plan describes what you want to achieve and how you will do it.

The desire of a relational salesperson is to help people. The purpose of meeting with a buyer is to help that person in some way. The purpose of the plan you create is to help the person by selling the right product or service to meet their needs.

Planning is critical to the sales process because it accomplishes four things:

• Planning builds the confidence of the salesperson.
• Planning demonstrates the salesperson’s professionalism.
• Planning often builds goodwill between the salesperson and the buyer because the buyer sees the effort taken by the salesperson to meet their needs.
• Planning increases the probability of making the sale because the salesperson better understands the buyer’s needs.

3. Approach

The approach is the third step in the selling process. It is the period of time between when the salesperson first sees the buyer up until they start to discuss the product. The approach is the first step of the actual sales presentation.

The approach step of the sale presentation process consists of two distinct, yet equally important, parts. First is the rapport building, “small talk.” This is usually the first minute or two of the sales meeting where the salesperson might talk about something you know the buyer is interested in (sports, weather, family, children, etc.).

The second part of the approach step is the planned, formal lead-in to the actual discussion of the product.

The main thing every buyer wants to know is whether the product you’re about to discuss will meet their needs. As a salesperson, your approach to lead-in to the presentation with the buyer must accomplish three things:

• You must capture the buyer’s attention.
• You must stimulate their interest in your product or solution.
• You must then transition smoothly into the presentation.

The approach lead-in might take the form of a statement, a question, or a demonstration. Whichever method you choose (statement, question, or demonstration), you must capture the buyer’s attention, stimulate their interest in the product, and transition into the main body of the presentation.

Approach Example

An example of the statement/question approach is, “What a wonderful picture of your two children! How old are they?… That’s a wonderful age. Mrs. Buyer, the reason I wanted to meet with you today is I have an idea that I think will increase your sales and profit. Is that something you are interested in?”

As soon as you have the buyer’s attention and gained their interest, it’s time to transition directly to the main body of your presentation.

4. Presentation

The presentation is the fourth step in the selling process. The presentation is your persuasive verbal and visual explanation of your selling proposition. The presentation follows the approach.

The presentation takes the buyer through five distinct stages in the buying cycle that build upon one another:

• To provide knowledge in the form of features, advantages, and benefits so that the buyer can make an informed decision.
• This knowledge translates into positive beliefs about you and your product/service.
• The positive beliefs result in the buyer having a desire for the product.
• The desire for the product becomes an attitude that your product is the best product to fulfill the buyer’s need.
• When the buyer realizes you have the best product to meet their needs, they move into the conviction stage. They are now convinced yours is the product they need to buy.

Once the buyer has reached the conviction stage, it is time for a trial close.

5. Trial Close

A trial close is the fifth step in the selling process. The trial close is not asking the buyer to decide to buy. Rather, the trial close asks for the buyer’s opinion regarding what they have heard so far.

The trial close allows the salesperson to determine:

• Whether the buyer likes your product or service.
• Whether you have successfully answered any questions from the buyer.
• Whether any additional questions remain unanswered.
• Whether the buyer is ready for you to close the sale.

The trial close is an important yet often underutilized tool. A trial close can be used:

• After making a significant point in the presentation.
• After answering any questions or objections from the buyer.
• After the close of the main body of the presentation, and before you move to close the sale.

Trial Close Examples

Examples of a simple trial close include,

• “Does that answer your question?”
• “How does that sound to you?”
• “What do you think about what we’ve discussed so far?”

If the trial close results in a positive response from the buyer, jump to Step 9: Close. However, most trial closes will result in some questions or objections from the buyer. It’s time to determine and handle objections.

6. Determine Objections

Determining objections is the sixth step in the selling process. Assuming the trial close has resulted in questions or objections from the buyer, we now must begin the process of discovering those questions and handling those objections.

Some salespeople bristle and get defensive when asked questions or confronted with objections from a buyer. But this is the wrong way to think about objections! Salespeople should be grateful for questions and objections because they indicate the buyer’s interest. They also help the salesperson determine which stage of the buying cycle the buyer is in—attention, interest, desire, or conviction.

If the buyer has raised an objection, the salesperson needs to ensure their understanding of the objection. One easy way to do that is to restate the objection and ask for confirmation.

Determine Objection Example

For example, if the buyer has raised an objection about the expected life of a machine, the salesperson might say, “If I understand you correctly, your main concern with this machine is that it will provide you with trouble-free service for several years. Is that right?”

When the buyer confirms your understanding of the objection its time to move to the next step in the selling process and handle the objection!

7. Handle Objections

Meeting or handling objections is the seventh step in the selling process. Once you have determined you understand the buyer’s objection, you need to handle the objection. Usually, objections should be handled as soon as they are brought up. However, you may want to delay handling the objection if you are just about to talk about the question in your presentation.

There are four important points to consider when handling objections:

• Handle objections when they arise.
• Be positive when responding to objections.
• Listen carefully to the buyer as they state their objection.
• Confirm your understanding of the objection.

Some objections are false, and these can usually be ignored. However, if a buyer brings up an objection a second time, it is most likely a real issue, which needs to be addressed.

Real objections are almost always a request for more information. So, the best way to handle them is to answer the question with the specific relevant information the buyer needs.

Handle Objection Example

Going back to our machine question in the Determine Objection section above, the salesperson might continue, saying, “I certainly understand your concern. Our company has placed over 300 of these machines in companies like yours over the past ten years, and I’m proud to say they have a 99% run rate with no failures!

8. Trial Close

A follow-up trial close is the eighth step in the selling process. Whenever a question or objection is raised and handled, it’s time to try a trial close. As before, the point of the trial close is to ensure you have answered the buyer’s question to their satisfaction. If there is any doubt that the buyer is satisfied with your answer, you need to dig in to discover what other issues the buyer might have.

Trial Close Example

In our machine example, the salesperson might simply say, “Does our machine’s long life and 99% run rate answer your concern for our product’s reliability?”

When the salesperson feels that all the questions and objections have been addressed satisfactorily, it’s time to move on to the Close!

9. Close

The close is the ninth step in the selling process. Closing is simply the process of helping the buyer make a decision that benefits them. The salesperson should attempt to close the sale when they feel the buyer is in the Conviction stage of the buying process.

Unfortunately, research shows a whopping 64% of salespeople fail to close. They fail to ask for the order! There are several reasons why this is the case, but generally, most of them revert to fear. The salesperson is afraid of failure, of being told “no.” Whereas, relational salespeople who are selling to solve problems and help people should never be afraid to ask for the order!

Good closers plan the close of their sale as carefully as they plan all the rest of their presentation. The close is not something you tack on to the end of the presentation, hoping that the buyer will say “yes.”

Close Example

There are many ways to close, but the simplest way is just to ask for the order and stop talking.

A salesperson might say, “Mr. Buyer, we’ve covered a lot of ground today, and I think you agree this machine will increase your production and improve your sales and profit. I have the order contract ready for your signature.” Then stop talking!

Another form of the close that I personally like is the assumptive option close. The salesperson might say, “Mr. Buyer, we’ve covered a lot of ground today, and I think you agree this machine will increase your production and improve your sales and profit. Would you like to have it delivered and installed next week, or would the following week be better for you?”

10. Follow-Up and Service

Finally, follow-up and service after the sale is the tenth step in the selling process. Sales are not about you. It’s about you taking care of your customers, and that happens after the buyer says “yes.”

What you do after the sale to provide follow-up and service to the customer is critical. It makes the difference between making a sale to a customer one time and making a sale to the same loyal customer many times year after year!

A salesperson who is diligent about providing follow-up and service after the sale will outperform the salesperson who does not perform that service. This maxim holds true simply because it is always easier to sell more to a current happy customer than find new customers. Happy, satisfied customers tell others and provide a flow of new business leads to the salesperson.

There are six steps the salesperson should take after the sale:

• Focus on improving account penetration. Get to know as many people in the account as you can. Look for needs or problems that you might be able to solve.
• Continue regular contact with the customer. Make sure every promise made in the presentation is kept.
• Handle any issues or customer complaints immediately. Things will go wrong, and the speed at which you handle even a minor issue demonstrates your commitment to the customer.
• Always keep your promises. Nothing destroys a developing relationship, like not keeping your promises. Stay true to your word. The customer placed their faith in you when they bought your product. You need to respect that faith by keeping your word.
• Become the customer’s business advisor. Do what you can to shift from the role of the salesperson to that of the trusted advisor by providing helpful industry insights, new information, or problem-solving solutions. Become a valued partner in the business!
• Show your appreciation. Showing your appreciation is a simple way to demonstrate you are thinking about the customer. Never underestimate how much a handwritten thank-you note, a congratulatory phone call, or a birthday card will mean to a buyer!

There you have it, a quick overview of the Ultimate 10-Step Sales Presentation Model!

The Ultimate 10-Step Sales Presentation Series

I hope what I shared with you here has helped you understand and appreciate the power of the Ultimate 10-Step Sales Presentation model. But I’ve just scratched this surface here! Over the next few months, I’ll be sharing more detail about each step of the model with more examples.

If you want to learn more about the Ultimate 10-Step Sales Presentation model, you can subscribe to the series here. That way you won’t miss any of this valuable information!

Join the Conversation

As always, questions and comments are welcome. What questions do you have about the Ultimate 10-Step Sales Presentation model? Are there any steps you think are more or less important than others?

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Category: Salespeople