Chapter 2 Relationship Selling Learning Objectives Understand the role of relationship selling in today’s market and how it differs from past stereotypes of selling. Learn the steps in relationship selling and the purpose of each step. Compare and contrast relationship selling and the traditional sales model. Examine the usefulness of continuous quality improvement in a sales organization. Recognize how to build relationships through team selling. 1 1 Quotable Quotes - Dr. Tony Alessandra 2 2 Value Creation Through Relationship Selling The trend in professional selling today is toward relationship, problem-solving selling Customer Satisfaction: the ultimate goal of the relationship salesperson throughout the selling process Relationship Management: Managing the account relationship Ensuring that your clients receive the proper service during and after the sale 3 Relationship Builders Treat customers like life-long partners Become a solutions provider Deliver more service than you promise Schedule regular service calls Develop open and honest communication Use the ‘we can’ approach Take responsibility for mistakes made Be an ally for the customer’s business 4 Relationship Breakers Simply wait for the problem to develop Focus only on making the sale Over-promise and under-deliver Wait for your customers to call you Lie or make exaggerated claims Use the “us versus them” approach Blame somebody else; Knock a competitor Focus on your own personal gain 5 Relationship Selling Versus Traditional Selling The face-to-face steps of the Relationship Model: 1 The Approach 2 Identifying Needs 3 Making the Presentation 4 Handling Objections and Gaining Commitment Time: 40 percent spent on gaining rapport and trust Empathy: Think the way your customer thinks. Standards: Customer expectations, higher than ever 6 Relationship Selling Versus Traditional Selling Traditional Model of Selling Relationship Model of Selling Phases Approach Identifying Needs % time spent Building Trust (Rapport) 40% Probe, Ask Questions, and Listen Making the Presentation Sell Benefits Resistance and Gaining Commitment Reassure and Close 30% 20% 10% % time spent Telling Qualifying Presenting Features Closing Long and Hard 10% 20% 30% 40% 7 Sales Cycle Framework for Relationship Selling Chapter 14 Service after the Sale Chapter 7 Prospecting Chapter 13 Closing the Sale Chapter 12 The 8 STEP SALES CYCLE Handling Objections Chapter 8 Preapproach and Telephone Techniques Chapter 9 The Approach Chapter 11 Making the Presentation Chapter 10 Need Discovery 8 Phase One Identifying Qualified Prospects Qualified prospects must have: Need Money Authority Planning Preapproach Activities Telephone Activities 9 Phase Two Approaching the Prospect Discovering Needs Success of the process depends on this Requires questioning and creative listening skills Making the Presentation Takes planning Handling Objections and Gaining Commitment Resistance happens because an atmosphere of mutual trust was never fully developed There may be problems beyond your control The closing stage is the most tedious for the traditional salesperson 10 Phase Three Service After the Sale Relationships keep satisfied customers coming back Customer satisfaction is an asset to you and your company The relationship really begins when the buyer says “yes” Cognitive Dissonance (buyers remorse) must be reduced 11 Continuous Quality Improvement Total Quality Management Listen and learn from customers and employees Continuously improve the partnership Teamwork through mutual trust and respect Do it right the first time Get your whole company involved Service Quality There is a process and an outcome. Both are necessary for customer satisfaction. 12 The Service Quality Interaction Service Quality The Process The Actual Outcome Influences… Leads To… Perception of Service Quality Received Overall Customer Satisfaction 13 Traditional Management Versus TQM Traditional Management Model The TQM Model Focus on product Focus on service Company knows best Customer knows best Transactions Relationships Individual performance Team performance Fire-fighting management Continuous improvement Blame/punishment Support/reward Short-term (year or less) Long-term (years) Intolerant of errors Allows mistakes Autocratic leadership Participative leadership Bureaucratic Entrepreneurial Top-down decisions Consensus decisions Inward focused Outward (customer) focused 14 Team Selling 15 The Growth of Team Selling It has grown to take advantage of diverse skills and personalities needed to sell complex products The selling steps are the same, but rules are needed Usually at least one salesperson and some technical specialists The buyer may also have a team 16 Benefits of Team Selling Customer gets involved with more than one person More accurate need definition Very useful if product is technical Different individuals bring more selling skills 17 Risks of Team Selling Requires special planning Must have a leader Must agree on objectives Must be better rehearsed 18 Combinations That Work Opener and Closer Just as in baseball (starting pitcher and the closer) Some salespeople are good at opening up relationships while others are masters at closing the sale Both are very important-a symbiotic relationship 19 19 Selling in a Multicultural World Multicultural Sales Professionals: Place an emphasis on diversity Establish a pro-diversity climate that benefits from different cultures’ contributions Provide ethnic diversity that helps foster relationships 20