How to Improve Sales Productivity: Asking Questions Makes the Sale
| Category: Selling Techniques | Date: 2001-05-04 |
In spite of even the most ardent efforts by sales managers, far too many field salespeople continue to put the cart before the horse; the answers before the questions. Evidently, they think that when meeting with a prospect, making a sales pitch is the number-one task. Instead of a top priority, it should go to the bottom of the list.
Although these salespeople will continue to write orders, their success may be attributed more to the customer's needs than to their selling proficiency. More important, they put a cap on their capabilities. The process of improving sales productivity is a function of raising the closing rate. Instead of closing two out of five sales, moving up to three or four out of five would have a dramatic impact. The most effective method for improving selling productivity is to spend time asking questions, not giving answers. After all, how can anyone make a winning presentation without knowing the right answers?
The most efficient way to prove to prospects that you are out of sync with their needs is to start talking about the features and benefits of your product or service without taking the prospect's needs into account. The customers say to themselves, "This salesperson doesn't have the foggiest idea about who we are or what we need." The more you talk, the more convinced the prospect becomes that you are the wrong person to do business with. The customer comes to the conclusion that your goal is simply to make the sale, not to provide a genuine service which leads to another lost sale.
Here are seven ways to better understand what your customers want and increase your closing rate.
Develop an Accurate Understanding of the Customer or Buyer.
An insurance salesperson asked the vice president of a company with 74 employees, "What do you want to accomplish with a group life insurance program?" After listening to his answers, the insurance agent realized that the VP had seen several other proposals but didn't know which insurance program to buy. Rather than talking about her products, she decided on a different approach.
She offered to interview eight or 10 employees to determine what they wanted in a life insurance program. The VP was pleasantly surprised because some of the responsibility was being shared. This gave the agent an opportunity to become involved with the company, to serve as a source of valuable information, and to walk the vice president through the process. As a result of the information gained from the employee interviews, she developed a program that fit the group.
Make it Possible for Customers to Clarify Their Thinking.
Customers don't always know what they want, even though they may say that they do. For example, an advertising account executive met with a community bank's marketing committee to discuss the allocation of their advertising budget. Because a committee was involved, the account executive assumed that there would be a lack of unanimity in how the bank's advertising dollars should be invested. So, he asked the group to define its objectives. He asked, "What do you want your advertising to accomplish? How do you evaluate the competition? Who do you want as customers?" As each person offered ideas, the account executive became the group's facilitator. He listened, interpreted their responses, asked more questions and offered suggestions based on his experience.
The end result? His proposal was accepted because he was seen as a member of their group and a problem solver.
Get Customers to Want You and What You're Selling.
A color laser printer sales representative flashed gorgeous 8-by-10 color prints to a potential customer. "Aren't these fabulous?" he asked. "Wouldn't it be great to produce this quality right here in your own office?" He went on and on. "And it's only $7,400. What do you think?" His whole pitch was about the printer. He assumed that the customer would get hooked on the equipment, forgetting that the major issue was how the printer would help the company do more business.
He could have had far greater success by meeting with employees who would be using the printer, and asking, "How are you printing color now? What applications do you have for color? If you had a color printer available, how might you use it?"
The questioning process gets the customer to make the sale, solidifying the reasons they want or need your product.
Work Until You Find the Irritation.
"What changes would you make in your present telephone system?" This was the question one salesperson asked. Everyone in the office considered it a chance to express their frustrations with the present equipment. The salesperson took careful note of each complaint. Later, when he made his presentation, he was specific about how his system would overcome all those irritants. He didn't waste his time on features that were of little or no concern to the users.
The successful salesperson isn't content until the source of irritation is uncovered, a process that can only be achieved through intense questioning, such as: How would you like it to operate? What seems to be confusing about the present setup? How many times a week does that occur? What is your normal shipping schedule? Is size a problem?
Getting past the surface issues and isolating the serious problems is the goal.
Get Customers to Do 90 Percent of the Talking.
Most salespeople talk themselves out of the sale by talking too much. By asking questions, the customer will do the talking and literally talk themselves into making the purchase. "Do you like it?" the salesman asked as the customer sat in the driver's seat holding the steering wheel of a new car on the showroom floor. Was this the right question? Absolutely not. It's possible to get a resounding "no" for an answer, and lose your chance to salvage the sale. "What kind of driving do you do?" is a better approach. Get the customer talking about the fun and excitement of weekends in the mountains. Then, perhaps, "If that's what you like, take this one for a drive. You'll love it." The more the customer talks, the more information you'll get to make the sale.
Use These Five Basic Questions to Demonstrate Your Expertise - Who? What? Where? When? and Why?
During the interview process, the customer should come to the conclusion that you are an expert. Questions are, of course, key to moving the prospect to this conclusion. The most effective way to conduct the sales interview is to use who, where, when, why and how questions. They are easy to remember and you won't miss any important details. Here are a few examples:
Who will be using the equipment?
Where will the projector be used?
When does each batch need to be ready?
Why are you restricting the network to this facility?
How many copies do you make each week?
These five questions probe a situation from different angles and demonstrate that the salesperson wants to grasp and understand all the issues involved. In taking this analytical approach, the salesperson comes to be viewed as thorough and competent.
Ask Questions That Break Down the Barriers Between You and Your Customers.
The professional salesperson is aware of the normal tension that exists between "the hunter and the hunted." The customer is wary, defensive and cautious, while the salesperson is often assertive and seemingly manipulative. Few sales can take place in this environment.
Asking questions removes the barriers, producing an interaction in which the prospect takes the initiative and the salesperson listens. With the tension diminished and threats removed, a sense of equilibrium exists. It is in these conditions that maximum communication, understanding and acceptance take place.
Although the questioning process may not be the total answer to increasing sales productivity, it goes far to improve a salesperson's closing rate.
About the Author
This resource is copyright (c) by, and compliments of John R. Graham, President of Graham Communications, a marketing services and sales consulting firm. Graham is also the author of "Magnet Marketing" published by Wiley. You can reach him at (617) 328-0069, by fax at (617) 471-1504 or by mail to 40 Oval Road #2, Quincy, MA 02170-3813.
:To contact see details below.
j_graham@grahamcomm.com
http://www.grahamcomm.com
Although these salespeople will continue to write orders, their success may be attributed more to the customer's needs than to their selling proficiency. More important, they put a cap on their capabilities. The process of improving sales productivity is a function of raising the closing rate. Instead of closing two out of five sales, moving up to three or four out of five would have a dramatic impact. The most effective method for improving selling productivity is to spend time asking questions, not giving answers. After all, how can anyone make a winning presentation without knowing the right answers?
The most efficient way to prove to prospects that you are out of sync with their needs is to start talking about the features and benefits of your product or service without taking the prospect's needs into account. The customers say to themselves, "This salesperson doesn't have the foggiest idea about who we are or what we need." The more you talk, the more convinced the prospect becomes that you are the wrong person to do business with. The customer comes to the conclusion that your goal is simply to make the sale, not to provide a genuine service which leads to another lost sale.
Here are seven ways to better understand what your customers want and increase your closing rate.
Develop an Accurate Understanding of the Customer or Buyer.
An insurance salesperson asked the vice president of a company with 74 employees, "What do you want to accomplish with a group life insurance program?" After listening to his answers, the insurance agent realized that the VP had seen several other proposals but didn't know which insurance program to buy. Rather than talking about her products, she decided on a different approach.
She offered to interview eight or 10 employees to determine what they wanted in a life insurance program. The VP was pleasantly surprised because some of the responsibility was being shared. This gave the agent an opportunity to become involved with the company, to serve as a source of valuable information, and to walk the vice president through the process. As a result of the information gained from the employee interviews, she developed a program that fit the group.
Make it Possible for Customers to Clarify Their Thinking.
Customers don't always know what they want, even though they may say that they do. For example, an advertising account executive met with a community bank's marketing committee to discuss the allocation of their advertising budget. Because a committee was involved, the account executive assumed that there would be a lack of unanimity in how the bank's advertising dollars should be invested. So, he asked the group to define its objectives. He asked, "What do you want your advertising to accomplish? How do you evaluate the competition? Who do you want as customers?" As each person offered ideas, the account executive became the group's facilitator. He listened, interpreted their responses, asked more questions and offered suggestions based on his experience.
The end result? His proposal was accepted because he was seen as a member of their group and a problem solver.
Get Customers to Want You and What You're Selling.
A color laser printer sales representative flashed gorgeous 8-by-10 color prints to a potential customer. "Aren't these fabulous?" he asked. "Wouldn't it be great to produce this quality right here in your own office?" He went on and on. "And it's only $7,400. What do you think?" His whole pitch was about the printer. He assumed that the customer would get hooked on the equipment, forgetting that the major issue was how the printer would help the company do more business.
He could have had far greater success by meeting with employees who would be using the printer, and asking, "How are you printing color now? What applications do you have for color? If you had a color printer available, how might you use it?"
The questioning process gets the customer to make the sale, solidifying the reasons they want or need your product.
Work Until You Find the Irritation.
"What changes would you make in your present telephone system?" This was the question one salesperson asked. Everyone in the office considered it a chance to express their frustrations with the present equipment. The salesperson took careful note of each complaint. Later, when he made his presentation, he was specific about how his system would overcome all those irritants. He didn't waste his time on features that were of little or no concern to the users.
The successful salesperson isn't content until the source of irritation is uncovered, a process that can only be achieved through intense questioning, such as: How would you like it to operate? What seems to be confusing about the present setup? How many times a week does that occur? What is your normal shipping schedule? Is size a problem?
Getting past the surface issues and isolating the serious problems is the goal.
Get Customers to Do 90 Percent of the Talking.
Most salespeople talk themselves out of the sale by talking too much. By asking questions, the customer will do the talking and literally talk themselves into making the purchase. "Do you like it?" the salesman asked as the customer sat in the driver's seat holding the steering wheel of a new car on the showroom floor. Was this the right question? Absolutely not. It's possible to get a resounding "no" for an answer, and lose your chance to salvage the sale. "What kind of driving do you do?" is a better approach. Get the customer talking about the fun and excitement of weekends in the mountains. Then, perhaps, "If that's what you like, take this one for a drive. You'll love it." The more the customer talks, the more information you'll get to make the sale.
Use These Five Basic Questions to Demonstrate Your Expertise - Who? What? Where? When? and Why?
During the interview process, the customer should come to the conclusion that you are an expert. Questions are, of course, key to moving the prospect to this conclusion. The most effective way to conduct the sales interview is to use who, where, when, why and how questions. They are easy to remember and you won't miss any important details. Here are a few examples:
Who will be using the equipment?
Where will the projector be used?
When does each batch need to be ready?
Why are you restricting the network to this facility?
How many copies do you make each week?
These five questions probe a situation from different angles and demonstrate that the salesperson wants to grasp and understand all the issues involved. In taking this analytical approach, the salesperson comes to be viewed as thorough and competent.
Ask Questions That Break Down the Barriers Between You and Your Customers.
The professional salesperson is aware of the normal tension that exists between "the hunter and the hunted." The customer is wary, defensive and cautious, while the salesperson is often assertive and seemingly manipulative. Few sales can take place in this environment.
Asking questions removes the barriers, producing an interaction in which the prospect takes the initiative and the salesperson listens. With the tension diminished and threats removed, a sense of equilibrium exists. It is in these conditions that maximum communication, understanding and acceptance take place.
Although the questioning process may not be the total answer to increasing sales productivity, it goes far to improve a salesperson's closing rate.
About the Author
This resource is copyright (c) by, and compliments of John R. Graham, President of Graham Communications, a marketing services and sales consulting firm. Graham is also the author of "Magnet Marketing" published by Wiley. You can reach him at (617) 328-0069, by fax at (617) 471-1504 or by mail to 40 Oval Road #2, Quincy, MA 02170-3813.
:To contact see details below.
j_graham@grahamcomm.com
http://www.grahamcomm.com
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