11 July 2014

Costliest Sales Mistakes and ways to avoid them

Sales Mistakes, Avoid them!!

One of the biggest problems that sales people face is their inability to disarm sales resistance early or overcome sales objections during the sales process. This is one of the most common reasons why sales people do not close more sales.

The tip here is to identify the sales resistances. During the sales training, identify at least 10-15 sales resistances pertaining to the product or service and prepare an answer or explanation with a logical reasoning that those resistances are overcome and become a substantial point to client satisfaction leading to closing of the sale.

Prospects and customers want several things from their suppliers: Fair Price, Quality Product, and timely service. Consumer survey says that most customers want timely and responsive service first, quality product or service at second and low price third.

It is vital that one understands the difference between Price, cost and Perceived value. Price is what the customer pays for; Cost is what they pay for what they have bought over the time. Perceived value is what they want for the money they are paying. So, the most critical thing is the Perceived Value. If that goes to zero, then the whole process of the selling goes awry.

Most customers tell salespeople that they want low price, when what they really want is low cost.  Always ask the customer what product they want, a thing that is inferior in price or the one that solves their problem or adds value to their value chain.

 


People object to price when they feel that the perceived value is less than price they are paying for. Most sales people when encountered with price resistance lower the price. Real sales persons focus on VALUE.  Price will always be high when the perceived value is low. So, the piece of knowledge I want to share here is to never introduce the price too early in the sales process before the perceived value is enhanced.


Another perspective I want to add here to utilize the objection as an opportunity to create trust is Objections by positive customers are not negative. They indicate interest, a buying signal, or a request for more information. Poor prospects object to get rid of the sales person. Think of sales rejections as unanswered questions rather than sales resistance.

If customers complain of high pricing, the underlying question could be “Why should I pay so much for this?”
When a customer says that he/ she is satisfied with current vendor, they may be asking “What are the advantages of switching to your organization or your products or your services?”

We are going to purchase this product from you, but we need to wait until the end of the month, next quarter, or next year. Could they be asking, “What are the advantages of doing this purchase rather now than later?”

We need to check with some other suppliers before we make our purchase decision. Could they be asking, “How is your package better than your competitors?”

We really don’t need this product. Could they be asking for, “What problem does it solve?”
So, the gist is to develop techniques to answering objections.

There are certain objections which are in accordance with the value system of the sales person. A sales person has the tendency to give in to such objections as it seems the objection from the customer is justified. These objections are the most difficult for answering. I will explain the point with the examples below.  

If you are a price buyer, and your prospect objects to price, you will tend to accept their objection. If you are a credit buyer, you will tend to give credit to the customer. If you are the type of buyer who tends to think decisions over before making a purchase and your prospect says to you, “We need to think this over.” You will tend to go with this objection as rational or making perfect sense because that is the way you buy.

This simple act of accepting sales objections that resonate with you because you can relate to them is nothing more than projecting your personal attitudes into the sales process. You don’t have the right to do this. Furthermore, it makes no sense to assume that just because a prospect says that the price is too high, they actually believe it or mean it. People actually don’t know what they want or why they want and tend to buy things they do not need.

When you project your personal biases onto the sales process, you are assuming that everyone who buys, buys like you and for the same reasons. You are also assuming that when they don’t buy for a reason that is similar to one of your reasons, it makes perfect sense.  This attitude is sooner or later going to cost you a lot of sales. THE MORAL OF THE STORY IS TO STAY NEUTRAL DURING THE SALES PROCESS.

A surprising element of sales which baffles many sales trainers is that In more than half of the sales closing situation, sales persons have failed to ask for the order. People often want to buy things, but they don’t want to make the decision to buy things. People are reluctant to commit the money, time or energy.
During every sales presentation, a sale is closed. Either you sell your product or service to the prospect or they sell you on why they don’t need it, can’t afford it, or don’t need it now.
There are five main reasons why sales people after going through all the time, energy and effort to present their product/ service ask for business.
  •             They fear a rejection.
  •                         They feel that if they have done a good job presenting the products/ services, the prospect will buy.
  •                         They don’t know how to close the sale.
  •    They don’t have a closing strategy.
  •    They never got the control of the sales process from the beginning and they don’t know how to get it in  the end.

So the moral of the story, Have a closing strategy, and think it in the middle of the sales process. Be in control of the sale process and remain there till the end.

Closing the sale is not an event. It is having effective prospecting skills & having a closing attitude. Closing attitude is a go-getter killer attitude that many sales persons lack. This is the difference between a sales taker and an order taker.  Closing is related to everything that you have done up to the final close. It is based on the ability to come from the customers’ perspective. First depends on the ability to create high level of trust.

Attempting a close to a sale without all of the above criteria is to invite a “No Sale” result. Most poor prospects attempt to get the sales person to move on quickly and then base their decision not to buy on price or some other tactic that most sales persons can’t effectively handle.

Few sales persons have a sales closing strategy- a process that they follow with each and every sales opportunity. People don’t generally like making purchase decisions because of the fear of making poor or wrong decisions. So making a choice close like GREEN or RED, or Direct close like CAN I MAKE THE ORDER FORM has two basic problems
  •     It asks the prospect to make a decision
  •    The average Sales person is uncomfortable using them

Instead of asking question whether when is the order expected, let’s ask is 15th of the month fit date for delivery? The focus is on let us. This makes it a collective decision. And the prospect does not feel as though they have to make it.

One of the major mistakes sales persons make in order to facilitate faster sales is offering the discount which is not asked for. Advertising your willingness to make a concession before you are asked to make one is insanity. Discuss discount or concession only when asked for, and again do not give a flat discount. Resist the discount by explaining the logic as to why the price is as quoted.

All sales persons often find prospects that can no longer fructify. Such prospects waste the resources as time, energy and money of the sales person. Sales persons have to take a call when they feel that potential for business is just not there or putting additional resources towards such prospects is no longer a wise investment. So it is in a while important to know that a prospect is not a prospect anymore and one should walk away.


Happy Selling !!!

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