1、1Solution Selling1A Powerful Tool for SalespeopleWho is Selling a Combination ofProducts,Services and Concepts2 A new approach to generate prospects and new business.A behaviorally-correct technique for developing buyer needs,specific to your product,service and concept.An integrated buyer-qualifica
2、tion model which targets access to power,committee decisions,and the negotiation of the sales cycle.A prototype for developing sales tools,specific to your products and markets,which enables sales people to succeed immediately while they gain the expertise they will need long term.A set of tools whi
3、ch enables management to manage pipeline,assign prospecting activity,control the cost of sales,and predict future business more accurately.Sales Training Components3Diagnostics and Power Based Selling Both are sales models which integrate with and expand Sales Training.Diagnostics selling helps in t
4、he area of needs processing and decision management.Power Base Selling helps establish a political influence strategy and a competitive sales strategy.4THE TRADITIONAL PROCESSTHE DIAGNOSTIC PROCESSUNSTABLE RELATIONSHIPSTABLE RELATIONSHIPClosePresentationProblem SolvingQualifying45%35%15%5%5%10%35%50
5、%AgreementPresentationDesign SolutionsProblem SolvingDiagnosis5Sales Process Overview Target potential opportunities Pre-call planning and research Create curiosity and hope Rapport,credibility,credentials Develop buyer and user needs determine pain,critical issues diagnose reasons with bias toward
6、offerings determine impacts across the organization-who,how,financial create,participate in,reengineer buyer visions clarify expectations and ownership Agree on evaluation criteria6 Determine capabilities needed to meet buyer vision Present offerings Buyer acceptance of offerings Mutually agree on R
7、OI Negotiate a win/win profitable agreement Implement as agreed,measure success criteria Continue to develop relationship Use success to leverage other opportunitiesSales Process Overview(cont)7High Difficulty Selling Conceptual/intangible Difficult to learn and explain Perceived as expensive Percei
8、ved as complex Requires major change by buyer Sold to committees Small organization selling to large8Superior SellerSituationKnowledgeCapabilityKnowledgePeopleSkillsSellingSkills9Basic Principles No PAIN,no Change Diagnose before you prescribe Three levels of Buyer PAIN People buy from people Power
9、buys from power“Product”=Buyer VISUALIZATION You cant sell to someone who cant buy10Latent Pain Vs.PainLATENT PAINPAINCURRENTACTIVE EVALUATIONS11Three Levels of Buyer PainLevel One:LATENT PAINLevel Two:PAINLevel Three:VISUALIZATION12Definition of Needs Level One:Latent Pain Potential needs for a pro
10、duct or service in the mind of the seller.Latent needs are usually either ignorance or rationalizations.A potential buyer is unaware that a potential solution exists or has previously attempted to find a solution and was unsuccessful.It is/was“too expensive”or“too complicated”or“too risky”,etc.Level
11、 Two:Pain Complaint statements by the buyer about problems,difficulties or dissatisfaction with the existing situation,ie pain.Complaint statements indicate that the buyer knows he/she has a problem,but does not know how to solve the problem.Level Three:Vision of a Solution Capability statements by
12、the buyer indicating that the buyer accepts responsibility for solving the problem and specifying the precise capabilities needed to deal with the problem.The seller must participate personally in the development of the need in order for it to be a qualified need.13Definition of Needs(cont)Vision of
13、 a Solution NOTE:When a buyer has a vision of a solution,he does not expect the seller to solve the problem,but can now“see”himself solving the problem in his mind.He is enabled.14Examples of Needs Level One:Latent NeedsPeople standing in line for transactions on their lunch hour at the bank.Invento
14、ry build-up due to obsolete parts.People manually re-keying data from unlike financial systems.An entrepreneur with no disability insurance.Level Two:Pain“We are losing customers because people hate standing in long lines”.“Our inventory is much too high.”“The re-keying errors are killing us”.“Im wo
15、rried about what will happen to my business if I get sick.”Level Three:Vision of a Solution“We need to be able to handle the average banking transaction in under 60 seconds”.“I need to be able to sort my inventory by date of last use.”“We need the ability to consolidate data from unlike systems with
16、out re-keying.”“I need the ability to generate X dollars of income even if I am disabled”.15Types of Approval Sponsor Beneficiaries Adversaries Legal/Technical/Administrative Financial Power Sponsor POWER16Components of a SalePAIN+POWER+VISION+MOMENTUM+PROCESS=SALE17How People Buy Latent Pain Pain V
17、isualization Match Vision Cost Justify Overcome Fear of Risk Price Justify Take Action18Alignment of Buying&Selling PhasesPhase I Phase II Phase IIINeed Definition Evaluate Alternatives Take Action How much does it cost?Do I need to change?What do I need?Is there a solution?Which one meets my needs?
18、Can I afford it?Should I do it?Consequences?Is it the right price?Define their needs with our product bias.Qualify buying process.Demonstrate how product meets defined needs.Why us?Why now?BUYER:SELLER:Need Development Proof Close the Sale19Buying PhasesTimePhase IPhase IIPhase IIISolutionRiskNeedsC
19、ostLevel of Concern20Risk Objections Smile(to yourself)Empathize Answer(if appropriate)Recall pain Recall reasons Recall vision Recall proof Nudge21Pain SheetPain:Situation:Our Product:Potential ReasonsImpactCapabilitiesIs it because.(reasons for the pain that align withyour product orservice capabi
20、lities)Is this causing.(impact on other areas,depts.,people,who is impacted/concerned)What if there were away for you to.(product capabilitieslinked with reasons)22Pain SheetPain:Failure to meet shipment scheduleJob Title:VP Mfg.,Gen Mfr.(SIC 35)Our Product:Symix Mfg.SoftwarePotential ReasonsImpactC
21、apabilitiesIs it because.Sales is quoting unrealistic delivery dates Excessive material shortage You are planning production you dont have the capacity to meet Frequent schedule changes from mktg.Service parts forecasts are not recognized when planningIs this causing.missed revenue targets lower pro
22、fits inability to accurately predict revenue Is the VP Finance concerned?losing customer orders losing customer credibility losing market share Is the VP Sales impacted?What if there were away for you to.give sales access to mfg.schedules while they enter orders notify planners/buyers in advance of
23、potential shortages estimate bottleneck resource loads before finalizing schedule show marketing the effect of a proposed schedule change include marketings service part forecast in production planning23Pain SheetPain:Inventory Investment is too HighJob Title:VP Finance,Gen Mfr.(SIC 35)Our Product:S
24、ymix Mfg.SoftwarePotential ReasonsImpactCapabilitiesIs it because.Excessive obsolete inventoryInaccurate stores and WIP inventoryManufacturing is building things it no longer needsPurchasing buys long lead time materials based on their own forecastsIs this causing.excessive WIP inventorypressure to
25、reduce production costspressure to cust back productionpressure to reduce purchasesshortages which impact shipments Is the VP Mfg.impacted?missed customer delivery datespressure to sell what you haveinability to meet sales goals Is the VP Sales affected?What if there were a way for you to.Easily ide
26、ntify,locate and quantify obsolete inventoryEasily audit and verify inventory levelsReevaluate production plans dailyFind all Pos supplying unneededmaterial24Job Title:CEOPain:Eroding ProfitsReasons:Missed ShipmentsWeaving the Pain ChainJob Title:VP ManufacturingPain:Missed ShipmentsReasons:Shortage
27、sJob Title:Materials Mgr.Pain:ShortagesReasons:Inaccurate inventory Order changes Uncontrolled ECNs25Organizational“Pain Chain”Example CEOPain:Stock price is downR1:Profits are downR2:Customer erosion CFOPain:Profits are downR1:Revenue downR2:Cost of Mfg.up VP MARKETINGPain:Customer erosionR1:Cant f
28、ill ordersR2:Cant sell substitute products to customers VP MANUFACTURINGPain:Cost of Mfg.upR1:Orders for products they dont haveR2:Not selling products they do have VP SALESPain:Not meeting revenue goalsR1:Salespeople taking orders they cant fulfillR2:Cant offer substitutes to customers DIRECTOR OF
29、MISPain:Unhappy line VPsR1:Cant deliver needed applications on time MGR.APPLIC.DEVELOP.Pain:Cant deliver needed applications on timeR1:Legacy applications still on mainframeR2:Applications are not flexible to change with businessSpecific capabilities of sellersproducts and services will enable this
30、person to deal withthese issues,thus effecting a“beneficiary chain”up to thetop of the organization.26Case Study“Pain Chain”Title:Pain:R1:R2:For your fictious prospect organization,create a“pain chain”between a minimumof four job titles.One of them should be a decision maker and a minimum of oneof t
31、hem a direct user of your productsor services.Align a minimum of two specific capabilitiesof your offering with the reasons of the directuser(s).Title:Pain:R1:R2:Title:Pain:R1:R2:Title:Pain:R1:R2:Title:Pain:R1:R2:Title:Pain:R1:R2:Title:Pain:R1:R2:27Reference Story FormatSITUATIONThe situation must i
32、nclude the persons job title and industryCRITICAL ISSUEThe critical issue is the pain of the person above.(Anxiety words and phrases are very powerful here.)REASONSThe business reasons for the critical issue are biased to your product.VISIONIn the words of your customer the capabilities he/she/they
33、needed to solve their problem-“He/She/They told us they needed.”_ PROVIDED If the“solution”is described properly above,all we have to do here is say that we(our product/company)gave them those capabilities.RESULT Specific measurement is best!28Reference StorySITUATION Materials Manager,power supply
34、panyCRITICAL ISSUE Difficulty controlling shortagesREASONS Frequent engineering changes and two different bills of material(one for engineering and one for manufacturing)VISION He told us he needed to be the control point for implementing engineering changes.This would allow him to simulate the impa
35、ct in advance of the change.He also needed both engrg.and mfg.to operate from the same bill of material._ PROVIDED We provided him with those capabilitiesRESULT Over three years he has had no more than 18 parts short at one time out of 3500 parts.29Whats It Worth to Reduce Inventory?Cash-Inventory r
36、equires and ties up cash Cash needlessly tied up in inventory reduces cashreserves or requires additional debt.Profit-Carrying costs reduce profits Carrying costs increase operating costs,which reduce profits.Carrying costs include:Storage facility costs Staffing and handling costs Insurance Taxes P
37、ilferage Damage Obsolescence.and more.Inventory carrying costs are usuallyat least 25%30Whats It Worth to Reduce Receivables?Cash!It generates cash.Receivables are simply no-interest loans to yourcustomers Cash you could use to fund your business Days in excess of terms raise your costs and increase
38、 your risk of cash loss.You have to borrow less(usually)Interest expense is reduced and most liquidity ratios are strengthened.Receivables can be controlled by setting a“Days of Receivables”goal and monitoring performance to achieve it.31Value Measurement Elements What will be measured?Who is respon
39、sible?How much is possible?What capabilities will be needed?When will this investment pay for itself?32Power Sponsor aka the“Vice President of Change”Typically an innovator or early adapter Enough clout to get it if they want it,regardless of job title Willing to introduce you to anyone you need to
40、talk to Willing and able to negotiate an evaluation plan33Why Change?ERODING:profits,market share,service,quality,growth rate,etc.INCREASING:costs,competition,errors,returns,employee turn-over,etc.GOVERNMENT:EPA,FTC,FCC,OSHA,IATA,FDA,etc.COMPANY IMAGE34InterdependenceLowHighBowling TeamOrchestra Bus
41、iness35Organizational Interdependence20th Century Organization$PresidentVPMarketingVPSalesVPMfg.VPFinanceDistributionManagerPlantManagerDirectorMISMaterialsManagerAppl.Dev.Manager36Transition to Vision ProcessingPotential Buyer Responses.enough about me/us,tell me about you and your situation.Four P
42、otential Buyer Responses:1.2.3.4.Seller Action:1.2.3.4.37Transition to Vision ProcessingGetting Buyer to Admit PainEnough about me.Pain?TalkingFreely?Situation QuestionsPain?Menu of PainBranch to DoorPain?NoYesNoNoYesYesYes$/EmotionNoR1I1C1R2I2C2R3I3C338Transition to Vision ProcessingTransition Ques
43、tion Examples Situation Questions:Describe your current architecture?How does everyone get the news when a change occurs in the middle of the design cycle?How do you gather user feedback?How are you dealing with distributed development?39Transition to Vision ProcessingTransition Question Examples Mu
44、ltiple Choice“Menu”Approach:The top three difficulties we are hearing from CIOs these days include:inability to deliver client/server applications on time,applications that fail to meet user expectations,difficulty meeting the ROI requirements of the organization.are you facing any of these issues t
45、oday?40Transition to Vision ProcessingTransition Question Examples$/Emotion Questions:How do you get the news?How does this impact you personally?Who else is aware of this situation?Are they looking to you to fix it?41Navigating the Three Levels of NeedLevel Three:Vision of a SolutionLevel Two:PainL
46、evel One:Latent9 Block Vision Processing ModelReference Story42Three Levels of NeedCreating a Specific Need for a Specific FeatureLEVEL THREEFeature becomes a benefit!Vision of a SolutionLEVEL TWOCapability QuestionPainLEVEL ONEAnxiety QuestionLatent43PAINR1(1)I1(4)C1(7)R2(2)I2(5)C2(8)R3(3)I3(6)C3(9
47、)DiagnoseReasonsExploreImpactVisualizeCapabiltiesOpenControlConfirmVISION OF A SOLUTIONHow does this affectyou as.;how do youget the news?Who is looking to you to fix this problem?“Tell me about it,what iscausing you to have this.(repeat pain)?”“Besides yourself,who in yourorganization is impacted b
48、y this(repeat pain)and how are thy impacted?”“What is it going to take forYOU to be able to solve this(repeat pain)?”“Could I try a few ideas on you?“Is it because.?”“Is this(pain)causing.?”If so,wouldnt(title)be concerned.?”“What if there were a way for you to.,wouldthat help?What if you were also
49、ableto.?”“So,the reasons for your(repeat pain)are.?”“From what I just heard,ifyou had the ability to.(repeat vision capabilities)Could you solve your(repeat pain)?What would it worth.?”“From what I just heard,(repeat the who and how)it soundslike this is not just your problem,but a _ problem!”44Visi
50、on Processing ModelPAINR1I1C1R2I2C2R3I3C3DiagnoseReasonsExploreImpactVisualizeCapabiltiesOpenControlConfirmVISION OF A SOLUTION45The Power BaseFinding the People with InfluenceInfluential AuthoritariansNon-InfluentialAuthoritariansInfluentialNon-AuthoritariansNon-InfluentialNon-Authoritarians46The P
