Solution Selling What Are Your Sales Goals? To create a customer - Peter Drucker To bring our audience and advertisers together - KOMC/KRZK, Branson,

Solution Selling

What Are Your Sales Goals?

“To create a customer” - Peter Drucker “To bring our audience and advertisers

together” - KOMC/KRZK, Branson, MO “To help people sell more Fords,” -- Lowry

Mays, former CEO of Clear Channel Communications

Objectives What are your sales objectives?

1 To get results for customers2 To develop new business3 To retain and increase current business

– Presell– Upsell

4 To increase customer loyalty

Strategies What are your sales strategies?

To sell solutions to advertising and marketing problems

Complete customer focus To reinforce the value of advertising and of

your medium

Strategies

To create value for your product To become the preferred supplier

To establish, maintain, and improve relationships at all levels of the client and agency (keep agency informed)

To provide the best research, information, and advice

To be customers’ marketing consultant by providing solutions

Strategies

To innovate New packages, new products, new

promotions New creative approaches New technology “The only functions of an enterprise:

marketing and innovation.” Peter Drucker

Key Functions What are a salesperson’s key functions?

1 To position your product to have a differential competitive advantage

2 To manage relationships and build trust To create rapport To empathize To persuade To cooperate To build consensus

Key Functions

3 To solve problems Creativity Get results

4 To create a sense of urgency5 To communicate effectively up, down,

and acrossKeep your management and coordinator

informedFrom the street, bring back market and

competitor knowledge

Old Paradigms Of Selling

AIDA– Attention– Interest– Desire– Action

Commitment Close

Each step used tricks

Old Paradigms *

Old tricks don’t work anymore.– Designed in 20s and 30s for one-call, low-cost,

unimportant decisions Old selling models don’t work in today’s

highly competitive, interactive, sophisticated business environment.

* Adapted from Sales Effectiveness Training by Carl Zeiss and Thomas Gordon, Dutton, 1993

Old Paradigms

Don’t work because:– Increased competition, increased need for

stronger customer loyalty and long-term relationships

– Increased cost of developing new business Solution selling requires partnering.

– Solution selling is all about establishing and maintaining relationships and building trust.

Old Paradigms

Don’t work because:– Today’s buyers are more sensitive to

traditional sales techniques, manipulation, and tricks.

– Today’s buyers have a multitude of complex alternatives they can buy.

They need help making decisions. They will let you help them only if they trust you and

our company.

Old Paradigms

Don’t work because:– More, stronger competitors provide buyers with

more choices – they don’t have to deal with anyone who doesn’t satisfy their needs or they don’t like or they don’t trust.

Old Paradigms

Don’t work because:– Today’s sellers are unhappy with the pressure

and grind of one-shot sales (Hunters), they prefer long-term relationships (Farmers).

– Today’s sellers want to get results for clients – more satisfying.

– Today’s sellers want to be trusted, respected, and not seen as manipulators (old-fashioned sales image).

The New Paradigm

The customer is not the opponent – not someone to be overcome or beaten.

The customer is a partner who needs:– A trusting relationship– Problems solved– Needs and wants met– Concerns addressed– A win-win, fair agreement– To get started before a competitor does

Solution Selling Is Need-Satisfaction Selling

“Do unto others as they would have others do unto them.”

Uncover and define problems and needs.– Business problems (rational, often ill-defined)– Personal needs (emotional, unconscious)

Need-satisfaction selling is difficult.– Requires emotional intelligence, interpersonal

skills.

The Needs-Recognition Process

UNOBSERVABLE OBSERVABLE

(Unconscious, Semi-conscious)(Conscious)

NEEDS and MOTIVATION BEHAVIOR

Needs Recognition Process

Behavior is observable.– Behavior is conscious, purposeful -- people

behave for a reason. Motivation is unobservable.

– Motivation is semi-conscious -- people are usually not fully aware of their motivation that drives behavior.

Needs are unobservable.– Needs are unconscious, deep seated, changing to

get satisfaction -- people are unaware of their needs that drive motivation.

Solution Selling

Relationship rule: People like and trust people exactly like themselves.

Trust depends on source credibility:– Trustworthiness– Competence– Objectivity– Expertise– Physically Attractiveness– Dynamism– Similarity

Features, Advantages, Benefits Features: What you’ve got.

– Channels, splash-screens, impressions Advantages: Why what you’ve got is

better. Benefits: How what you’ve got solves a

problem.– Always remember WIIFM

The client is asking himself silently to every feature you describe, “What’s In It For Me?”

Solution Selling

Position features, advantages, and benefits as problem solutions.

Position features, advantages, and benefits according to needs (“We’re a safe buy,” e.g.)

– Business needs– Personal needs

See List of Human Needs in the workbook.

Benefits Matrix

Use a Benefits Matrix to position features, advantages, and benefits according to business and personal needs and as problem solutions.

– See Benefits Matrix in workbook.

Solutions Selling

Relationship rule: People don’t care how much you know until they know how much you care.

– The best way to let people know how much you care is to listen.

Effective Listening

The single most important skill in personal relationships, selling, negotiating, and managing is listening.

You can’t have a successful relationship unless you are firmly committed to listening a majority of the time.

Effective Listening

Listening– 60% in most relationships -The minimum– 80% in some relationships - The maximum

If your partner won’t listen at least 20% of the time, it is not a two-way relationship it’s a one-way relationship like in theater, movies, print, broadcasting, or cable -- you are the audience.

Effective Listening

Listening is an essential component of communication.

The Communication Process

Source Message Channel Receiver

Listening

UnderstandingFeedback

Effective Communication

Effective communication requires understanding the elements of the communication process and using them to enhance your communication effectiveness and to power a relationship forward.

– More effective communication = stronger relationships

– The goal, destination of a relationship is agreement.

– Relationships, like car engines, are very complicated.

The Elements of the Communication Process

Communication -The fuel that powers a relationship forward.

Trust - The grease and oil that keeps it running smoothly.

Listening - The foundation, the road on which the process of communication travels toward agreement.

Fuel Engine Destination

Communication

Under-standing

Respect

Caring Fairness

Agreement

TrustListening

Effective Communication Depends On:

Source credibility Message strength Channel effectiveness Receiver characteristics Listening effectiveness Responsive feedback


Elements that enhance Source Credibility:– Trustworthiness– Competence– Objectivity– Expertise– Physical Attractiveness– Dynamism– Similarity

“People like and trust people exactly like themselves.”


Elements that enhance Message Strength:– Two-sided argument– Ordering effects

Primacy and recency– KISS (Keep It Simple, Stupid)

USP (Unique Selling Proposition)– Focus on benefits to partner


Channel Effectiveness– Face-to-face most effective

Full, two-way verbal and non-verbal communication with instant feedback

– Video (film, TV, e.g.) next most effective.– Audio (radio, e.g.) next.

Video and audio can convey emotion and control emphasis, even though they are one-way.

– Print least effective unless the message is complex.

Can’t convey emotion, one-way.


Receiver Characteristics that affect communication:

– Intelligence The receiver can understand and evaluate messages.

– Self-confidence The receiver trusts self to evaluate communication

and make an assured decision.


Effective Listening is the foundation on which effective communication rests.

You can improve not only your listening effectiveness but also the listening effectiveness of your partner on the road to agreement.

The beginning of knowledge, learning, relationships, communication, and conversation is a question – an open-ended question.

Effective Listening Ask an open-ended question. Adopt the proper attitude.

– Optimistic, open, confident, trusting, respecting, non-defensive, and non-judgmental

Shut up and listen. Listen actively: nod, use gestures, smile

(Responsive Feedback). Concentrate on the speaker.

Effective Listening Do not step on sentences. Do not respond to negatives, objections,

concerns too quickly.– If you do, you appear to be defensive.

Do not think of a rebuttal.– If you continually rebut arguments, you’ll stop getting

them and won’t learn anything.– If you think of a rebuttal while trying to listen, you can’t

receive 100% of the information you hear.

Effective Listening

Respect the other side’s statements.– Respect and learn about their view of the

world. Listen for themes.

– Risk averse, conservative, entrepreneurial, needs recognition, affiliation needs, goal oriented, etc.

Be very sensitive to emotional cues. Listen in synchronization – don’t mimic.

Effective Listening

Concentrate on the speaker (open body language).

Acknowledge, don’t always agree.– “Oh,” “Uh-Uh,” “I see,” e.g.– Don’t say “Good,” or “You’re right,” -- judgmental.

Do not react emotionally.– Control your emotions.

Listen with authenticity.– Be yourself, others can tell when you’re not sincere.

Non-Verbal Communication Non-verbal communication conveys 65%

of a message’s meaning. Look for individual body language.

– No universal body language.

Use gestures, space, openness, and your body language to:

– Give the message you care about and like the other person.

– Match their style and pace.

Non-Judgmental Listening

People have a deep need for someone to listen to them and understand them.

Non-judgmental listening responds to this need.

– Interpreting and understanding their entire message without imposing your preconceived ideas or opinions on it.

Non-judgmental listening is non-defensive listening.

Sales Effectiveness Training, Carl Zaiss and Thomas Gordon, Penguin Books, 1993


Listen, understand and accept other people’s perception of the world.

– Spend time in their shoes. Develop a non-threatening, non-

confrontational attitude so people feel secure in opening up, revealing personal information.

– Offer personal information first and then trade it.

– Find something you have in common with the other person.



Vary your responses, otherwise listening becomes a monotonous technique.

Show genuine concern and caring.– “I don’t care how much you know until I know

how much you care.” Never ask “Why?”

No challenges No obvious, manipulating techniques or

leading questions: “Have you stopped beating your wife?” e.g.


Objectives:1 To understand the other person’s needs

Often, the other person just needs to talk.2 To understand another person’s unique

perception of their world.


Listening Roadblocks

Denying, minimizing, Cheering up, reassuring, encouraging Sympathy, indignation, me-tooing, story-

telling Advising, teaching

– Become condescending


Listening Roadblocks

Taking over, rescuing Analyzing, probing, playing detective Criticizing, moralizing, warning Arguing, defending, counterattacking

– All of these responses are judgmental.– So the point is to shut up and listen and

acknowledge unemotionally … like a therapist does.



Aggressive behavior - “Getting What I Want.”

– Don’t be aggressive.

Assertive behavior - “This Is How I Feel.”– Be assertive.– Know who you are, what you want, and what you feel

and communicate it.

Use “I” messages.

Effective Listening: The Four Steps

1 Listen carefully, actively to other people.2 Repeat/rephrase their position/objection.

– “Let me make sure I understand your position…you feel our CPMs are too high?”

3 Get their agreement that you understand.– “Is that correct?”

4 Respond with a form of an “I understand” statement (vary your responses)

– “I understand…,”– “Feel, felt, found.”

“Feel, Felt, Found”

Respond:– “I understand how you feel …”

Acknowledges their feelings and honors them.– “Many advertisers have felt the same way …”

Reinforces and legitimizes their opinions so they know they aren’t way out, unusual, or silly.

– “But we have found that higher CPMs are based on three things: highly targeted inventory, high demand, and high renewal rates.”

Effective Listening Exercise

Find a partner– One is the salesperson, the other the client

Client states an objection, salesperson goes through the four steps of Effective Listening.

– Practice repeating the phrases. “Let me make sure I understand what you are

saying.” “Is that correct?” “I understand how you feel, others have felt the

same way, but we have found …” Switch roles after three attempts.

Solutions Selling

Position features, advantages, and benefits positively as solutions to advertising and marketing problems.

Don’t knock the competition.– You can’t sell what they don’t have.– You can only sell the features, advantages, and

benefits you have.

Don’t Knock the Competition

When you knock, you:– Waste time.– Lose credibility (not objective).– Lower your image (stay above it).– Open up areas you can’t control.

Client/buyer may like competitive salesperson.– Build competitors’ image.

Bring them up to your level. Rolex doesn’t advertise that’s it’s “better than a

Timex.”

Ways of Dealing with the Competition

Don’t mention the competition if you don’t have to -- ignore them.

If you have to mention them or are asked a question about them:

– Compliment the competition.– Talk first about your strengths (don’t answer

the question directly--like politicians do).– Expose generic weaknesses.

“Yahoo has very high-traffic and is the best of the portals, but portals aren’t very sticky.”

The Six Steps of Selling Prospecting Identifying Problems (discovery) Generating Solutions (research and

strategy) Presenting Negotiating and Closing Servicing

Set Objectives for Each Step Criteria for MADCUD objectives:

– Measurable– Attainable (accepted)– Consistent with company goals– Under the control of the person– Deadlined

MADCUD goals must be flexible

Goals

Motivation

Goal DifficultyVery Easy Very Hard

Peak Motivation

Goals and Objectives The purpose of goals (long term) and

objectives (short term) is to make people feel like winners.

Must be bottom-up, not top-down– Budgets and quotas are not motivational for all

people.

Goals Set time-spent goals for the five steps of

selling. For example:– Prospecting 10%– Identifying problems (discovery) 15%– Generating solutions

(research,strategy) 15%– Presenting 40 %– Closing 20%

– How much time spent on each varies according the the experience of the person, type of account list, etc.

Set Activity Goals Calls/Contacts Meetings

– Critical skills: Building rapport and trust Presenting Solving problems Overcoming objections Addressing concerns

Set Activity Goals As Well As Revenue Goals

Orders– Critical elements:

Creating value– Selling an idea– Selling the proposal

Selling the plan (inventory spread and pricing) Negotiating Closing

Set Activity Objectives As Well As Revenue Objectives

Set activity and revenue objectives– Revenue objectives don’t work for everyone.– Calls, appointments, and presentations lead to

sales, which lead to revenue--imperative to make the connection.

– By focusing on activities that lead to revenue, the control of the goal stays with the salesperson.

Salespeople can’t always control the size of the order they get.

But they can control how many calls they make and effective their sales presentation is.

Set Activity and Revenue Objectives

There must be a well-organized system for tracking and reporting on calls, meetings, presentations, opportunities, and orders.

– And details on why opportunities were won or lost.

Objective-setting exercise in workbook.

Prospecting: Creating Opportunities

Developing new business: finding prospects who have advertising and marketing problems.

– No one is completely satisfied with their advertising.

Make contacts:– Write out your telephone pitch in advance.– Use the prospect’s name, introduce yourself and

your organization.– Use a referral if possible. (“Jeff Bezos suggested I call

you.”)

Prospecting– State the purpose of the call is to set up an

appointment, not to sell anything.– Mention a motivating benefit (“special reason”

or “special idea”).– The word “idea” is magic, consultative.

Prospecting Pacing is the key on the telephone.

– Get to the point quickly.– Pause often.– Match prospect’s style and pace.

Put a mirror on your desk and stand up.– More animated, friendly, dynamic

Prospecting On the phone, be persistent (but not

obnoxious). If you get a “yes,” reconfirm the time and

day.– “Do you have your Blackberry handy?”– Generally, don’t reconfirm the day of the

appointment unless it’s out of town. In town, have your assistant call and say, “She’s on

her way for her 10:00a.m. appointment.”

Prospecting If you get the “don’t-come-see me”

stopper:– Ask “why”– Compliment their business.– “If one of your salespeople...”

Appointments are imperative.– Getting appointments is the most difficult part

of selling new business and requires creativity and, most of all, persistence.

Prospecting Prospecting success ratios:

– By telephone 66%– Cold calling 92%

Play the odds, use the telephone. Use voice mail effectively.

Prospecting On cold calls never say:

– “May I have a few minutes of your time?”– “I just happened to be in the neighborhood?”– “I’m sorry I interrupted you.”

On cold calls always state the purpose of the call and how long it will take.

Prospecting Methods By Current Advertisers in Other Media By Season By Category By Geographic Region By Inactive Advertisers By Current Advertisers By Business, Civic, and Other

Organizations

Persistence in Prospecting The key to prospecting, in fact, to all

selling is persistence.– Never, never, never, never, never give up.– Every client has at least one problem (perhaps

they are unaware of it) that is searching for a solution.

The Process of Preparation: Identifying Problems

Set objectives. Ask Discovery Questions:

– “What is the age, sex, and lifestyle of your best customers?

– “What problems do you expect interactive to solve for you?”

– “What advertising are you doing now?”– “What do like best, least about your current

advertising?”

Identifying Problems, Needs (Discovery)

The best questions are follow-up questions.

Discovery requires solid detective work.– Information is power.– The more information you get, the more

problems you uncover, the more objections and concerns you uncover, the more precise and helpful your solutions will be.

See workbook for Discovery Questions.

Generating Solutions (Research and Strategy)

The process of preparation– Research prospect’s category.

Advertising and marketing expenditures. Category growth profile

– Research prospect’s industry. Rank order of players and their market share. Media expenditures of players Creative campaigns and approaches of players Marketing strategy of players


– Research prospect company’s marketing and advertising goals, strategies, and problems in achieving these goals.

Prioritize problems.– Research prospect company’s customers.– Research prospect’s strengths and weaknesses.– Research prospect’s major competitors’ strengths and

weaknesses.– Research prospect’s current creative approach.


– Create effective promotions (if appropriate) that will solve the prospect’s problems.

Targeted Maximize reach Receptive audience.

– Brainstorm to generate several solutions.– Order, anchor, and frame solutions effectively.


– Anticipate your competitors’ attacks on you (what they say about you to prospect).

– Anticipate prospect’s objections and prepare appropriate answers.

– Keep your sales objectives in mind at all times.– Create an account-entry strategy.– Create an overall sales strategy – a detailed,

step-by-step plan of attack (who does what when).

– Create a killer presentation. See checklist in the workbook.

Presenting Confidence is everything! Confidence is an attitude, which you

control:– Optimism– Positive goals (winning, not avoiding a loss)– Visualization– Mental Rehearsal– Do the right thing (honesty)

Presenting: Call Structure

Greeting– Set tone of the meeting and build rapport

New information– Provide new, relevant information to enhance your

source credibility and expertise. Opening

– A well-planned statement to pique interest in your proposal and solution

Recap and purpose– Recap what challenges and problems you will be

addressing and state the purpose of the call.

Discussion– Move prospects from desire to conviction that

your solution is the best one.– Dealing with objections– Conditions– Discussion tactics

Summary and close– Summarize key points – no more than three –

and ask for the order. No ask; no order.

Dealing With Objections

No objection; no sale Figurative and literal objections

– Figurative are not real – they are negotiating tactics and can be ignored.

– Literal objections are real and must be addressed.

Probe to understand. Compliment, restate, and get agreement. Empathize, reassure, and support (“feel,

felt, found”).

Use trial closes Forestall objections Use “Yes, but…” and compare. Use case histories (case studies). Use “coming to that…” Pass on objections

Dealing With the Price Objection

Hope it comes up; otherwise you’ve underpriced your product.

Always talk quality. Break price into smallest possible units. Talk value, not price. Refer to investments, not costs.

– Advertising is an investment in future profits Use “you get what you pay for.”

Conditions– Can’t be overcome; they are legitimate

reasons for not buying.

Discussion Tactics

Vary your style.– Contrast– Movement– Novelty

Use equivalencies to dramatize numbers. Narrow down objections and reconfirm

understanding. Change the basis for evaluation if necessary. Reassure doubts. Continually evaluate reactions and adjust.

Summary and Close

Summarize three key points Close

– Ask for the order No ask; no order.

– Move the sale along.– Get a commitment for next steps

Presenting

You’re a marketing solutions provider, not a “seller.”

– Always keep in mind your #1 sales objective: To get results for customers.

– Don’t sell customers stuff that won’t work. Don’t sell them something they like just to get an

order. Sell them what works best -- you’re the expert.– Don’t sell them more than they need – no

gouging, they won’t renew.

Closing Help buyers make the right decision. Create a sense of urgency. Use a variety of closes:

– The Clincher Close– The Assumption Close– The SRO Close– The Minor-Point Close– The T-Account Close– The Pin-Down Close

Closing

Ask for a decision.– Non-binding Letter of Intent (LOI)– Commitment to send IO

48-hour hold– “What else is left?”– “If I can resolve these issues, do we have an

agreement?” Once you reach an agreement, scram!

– Don’t be around when buyer’s remorse sets in.

Closing

Be careful about trying to close too aggressively.

You can create a sense of urgency, but the timetable has to be theirs.

– Too much pressure can kill a prospective sale. High pressure raises suspicion. People want to buy, they don’t like being “sold” or

“closed.”

Servicing You are the unique competitive

advantage. Set servicing and business increase goals.

– “You never ‘close’ a sale, you open a long-term relationship.” Dennis Waitley

– Which order is the most important one -- first or second?

– Tangibilize Send notes (more personal than e-mails), cards,

small gifts, etc.

Servicing– Always say “thank you” memorably.– Don’t forget anyone (review your account list

regularly).– Always present new ideas – increases.– Pre-sell– Handle complaints immediately and honestly

(see them as an opportunity to prove how good you are at servicing).

Solutions Selling

Managing relationships Creating value Making proposals that will get results

for customers Tracking results and making

adjustments Getting enthusiastic renewals at larger

investments See Servicing Exercise in workbook.

Summary

What are three lessons you learned and will put into practice immediately?

Write them down in the workbook.

Documents

Solution Selling What Are Your Sales Goals? To create a customer - Peter Drucker To bring our audience and advertisers together - KOMC/KRZK, Branson,