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This chapter discusses moving beyond just closing a sale to completing the transaction and building a long-term partnership. It emphasizes focusing on the customer's needs rather than just making the sale. Completing a transaction may result in an immediate sale, additional information being provided, or no purchase currently but maintaining the relationship. Partnering involves forging a mutual beneficial relationship where both sides work together to meet goals rather than just making a single transactional sale. It is important to use completion and partnering approaches rather than just focusing on traditional closing techniques which can create pressure.
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- 1. CHAPTER 11 Completion and Partnering
- 2. “Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay”… “Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality” Peter Drucker
- 3. Traditionally, the "close" has been the logical conclusion of a sales presentation
- 4. 2 11 The Completion & Partnering Steps The “close” is really an “open” The time to complete the transaction and the opportunity to "open the door" to what could be a mutually profitable, long-term business relationship A Partnership!
- 5. 2 11 Outcomes of a Presentation Regardless of the outcome of any one sales presentation, there is more work to be done A prospect buys and becomes a customer A customer buys again (re-buy situation) A customer or prospect makes no purchase but requests additional information A prospect expresses no interest in working with the salesperson's company
- 7. 2 11 Closing Mentality A closing mentality focuses strictly on the transaction as the end result of a sales presentation Closing questions ask for a definite, immediate decision, triggering one of the following responses: A decision to buy A reason for not buying A request for additional information
- 8. 2 11 Nature of the Traditional Sales Close A real issue in closing is the anxiety, hesitancy, or inability of human beings to make decisions Most salespeople are afraid of rejection Their minds sometimes jump to possible negative consequences, creating a negative attitude
- 9. 2 11 The Salesperson Should Rejoice! The salesperson has made it through all the previous steps He should be positive and confident at this stage Completing the transaction should be the easiest of all the steps in the process It is the next logical thing to do
- 10. 2 11 When It Is Time To Close A salesperson should do the following: Look Lower Lean Shut Up Nod, and Smile
- 11. 2 11 Traditional Closing Techniques Professional salespeople often use more than one technique during a presentation Salespeople should pick the techniques with which they feel most comfortable
- 12. 2 11 Employing Closing Techniques Why should salespeople employ closing techniques? Many prospects find it difficult to make decisions Prospects want to make the right decisions, but complete certainty in buying never exists Many prospects will postpone decisions if salespeople let them After a sales presentation, prospects often feel confused and hesitant
- 13. The salesperson’s goal is to explain/demonstrate how the benefits of the product or service outweigh the risks associated with buying
- 14. 2 11 Traditional Closing Techniques Asking for the Order Assumptive Close – “How Should We Bill You? Alternative Choice Close – “Three or Four deliveries?” Summarizing the Benefits The Weighing Close – Pros and Cons The Probability Close Power Questions – “Any real reason Why You Shouldn’t buy?” Continuous Yes Standing Room Only
- 15. 2 11 Traditional Closing Techniques Reserving an Advantage – “BTW, We Also…” Single Benefit Close – “We’re the Only One…” Similar Situation Close Price Reduction Close – “Value in Use” Suggestion Close – “Many are Already Satisfied” Alternate Source Close – “Eggs Not in One basket” Asking for a Trial Order The Takeaway Close
- 16. 2 11 Cautions About Traditional Closing Techniques The goal of closing techniques is to make it relatively easy for the prospect/customer to decide to buy Although traditional closing techniques can be effective under the right circumstances, salespeople should use them judiciously
- 17. 2 11 Completion Mentality A completion mentality emphasizes the point that all sales presentations must reach some type of conclusion, which may or may not result in a transaction On average, it takes five sales calls on a business prospect to complete a transaction
- 18. 2 11 If a Sale Is Made Before leaving a customer who has agreed to a sale: Show appreciation for the customer's business, but do not gloat Reassure the customer that the decision is a good one Solicit sales leads Complete all necessary paperwork, and finalize the details Be sure to leave with a good understanding of the customer's expectations
- 19. 2 11 If a Sale Is Not Made When a sale is not made, the salesperson still has duties to perform: Duties to the customer Duties to the sales organization
- 20. 2 11 Customer-Related Duties The major objective of all postcall activity is to maintain and increase customer goodwill This process has two aspects • Terminating the interview • Possibly providing service
- 21. 2 11 Terminating the Interview Salespeople must learn to respect customers’ decisions and should engage in the following activities before making a prompt exit: Accept the prospect's decision graciously Say "thank you" for the prospect's time and mean it Establish good rapport with the prospect Do not tarry Refer to Table 11.2--Postsale Questionnaire
- 22. 2 11 After Rejection… What Steps Should Thaldorf Take Now? Three-Minute Drill
- 23. 2 11 Providing Service There are at least four areas in which salespeople may be of service: 1. Handling complaints 2. Order expediting 3. Adjustments, returns, and allowances 4. Information
- 24. 2 11 Organization-Related Duties When the sale is not made: The salesperson’s duties include the documentation of the sales presentation and the assembly of information useful to the organization When the sale is made: The salesperson plays a key role in consummating the exchange transaction
- 25. 2 11 Partnering Mentality A partnering mentality changes the salesperson's primary goal from one of just completing the transaction to one of beginning a partnership with the prospect
- 26. 2 11 Partnerships In a partnership, both the seller and the buyer perceive a need for the relationship, and each values the other Benefits of a partnership Quicker response to change Cost savings Agility in meeting customer needs Increases in sales Quicker identification of problems and opportunities
- 27. 2 11 Mistakes Made in Forging Partnerships Cutting a deal that favors the selling organization too much Lacking an exit strategy Failing to plan Partnering in isolation Seeking quick partnerships Creating ideas and solutions while thinking on one's feet Not being able to walk away
- 28. Figure 11.2 True Partnering PresidentPresident Vice PresidentVice President Operations ManagerOperations Manager Field Sales ManagerField Sales Manager SALESPERSONSALESPERSON PresidentPresident Vice PresidentVice President Operations ManagerOperations Manager Purchasing ManagerPurchasing Manager Purchasing AgentPurchasing Agent SELLING FIRM BUYING FIRM The salesperson orchestrates the formation of the partnership by ensuring that the roles on both sides are introduced and are in communication with each other.
- 29. 2 11 The Nature of Partnering Partnering is a way of doing business that helps salespeople and buyers work together to achieve mutual and individual goals Traditional closing methodologies that are transaction-oriented and often pressure buyers are not appropriate in partnerships
- 30. Figure 11.3 Elements of Customer Relationships Excellence Communications Execution/ Responsiveness Mutual Goals Clear Expectations TrustCommitment Understanding
- 31. 2 11 Perspectives on Partnering If the exchange is to be consummated, salespeople must provide leadership to help prospects make decisions Building relationships involves a shift in emphasis from persuasion to motivation Salespeople must help prospects make the long-term commitment to purchase
- 32. From the perspective of relationships, two things are critical: Failure to reach a decision is never fatal! Success is never final!
- 33. 2 11 Partnering versus Other Sales Approaches Transaction-focused A single sale is the focus Product-focused Product solutions are the focus Business-focused Multiple product solutions that address larger business problems are the focus Partnership-focused Multiple business-focused presentations with the intent of solving multiple business-wide problems are the focus
- 34. Source: Adapted from Dunn, D. T., and C. A. Thomas (1994), “Partnering with Customers,” Journal of Business and Industrial Marketing, 9(1), 34–40. Type of Relationship Solution Orientation How Purchases Are Made Buying Principals High Partnership-focused Multiple business solutions linked across the customers firm Buying program Top management Business-focused Multiple product solutions linked to solve a business-wide problem Buying project Middle-upper management Product-focused Product plus service applications Buying project Department management Low Transaction-focused Features, functions, price, performance Transaction User Complexity of Relationship Figure 11.4 Transaction Relationship Bandwidth of the Agile Salesperson
- 35. 2 11 Account Management and Partnering Salespeople must develop partnership relations selectively Extend account bandwidth in both the transactional and partnering directions Craft relationship strategies that more closely meet the requirements of customers
- 36. Figure 11.5 Managing Account Bandwidth A = Partnership B = Individual Transactions Call1Call1 Call2Call2 Call3Call3 Call4Call4 Sales Time A B
- 37. 2 11 Basis of The Relationship Transactional customers Core product/service Unbundling of product/service offerings • Most interested in price Partnership customers Augmented products Bundling of product/service offerings
- 38. 2 11 Unbundling Unbundling is focused on taking away the product/service features that the customer does not need or want to meet demands for lower prices
- 39. 2 11 Bundling Bundling is focused on offering augmented products/services to meet specific customer needs and wants that go beyond the basic capabilities of the core product/service Refer to Table 11.3--Ways to Augment Product Offerings
- 40. 2 11 Customer Equity Customer equity is the value of a complete set of resources, both tangible and intangible, that customers invest in a supplier firm Tangible investments include products, services, and money Intangible investments include commitment and trust
- 41. 2 11 Becoming the Preferred Supplier The best way for salespeople to become preferred suppliers is to build such a high level of goodwill that customers always think of them and their sales organizations first
- 42. Salespeople are an integral part of the total package provided to customers
- 43. 2 11 Today… Chapter 11 – Completion and Partnering Questions & Knowledge-Building Three-Minute “After Rejection” Review/Preview