New 11 sales

On Sales...

Ziya G. Boyacigiller

This presentation was created and given by Ziya Boyacigiller who was leading Angel Investor and a loved mentor to many young entrepreneurs in Turkey. We have shared it on the web for everyone’s benefit. It is free to use but please cite Ziya Boyacigiller as the source when you use any part of this presentation. For more about Ziya Boyacigiller’s contributions to the start-up Ecosystem of Turkey, please go to www.ziyaboyacigiller.com

On Sales…Ziya G. Boyacigiller

Sabanci UniversityBA, MBA and EXEC MBA

2004 through 2013

Ziya G. Boyacigiller (c) 2005 3

Decoding Sales

Ziya G. BoyacigillerSabanci University


Agenda

• What is sales?• How is sales done?• How should it be done?• Sales processes• What affects sales process?• How to select sales channels?• How do you predict sales success?• How do you control sales?


Why is Sales Important?

Profit

Sales Quantity

SalesPrice

Cost

Market Share


Sales Simulation


A New Sales Paradigm:High Probability Selling

(excerpt from High Probability Selling)


1. What is selling?

2. What is your objective when you sell?

3. What do you do to get the prospect to buy?

4. What will you do to get the prospect to buy?

5. How do your prospects feel when they’re being sold?

6. How do you feel when you’re selling?

7. How do you feel when you don’t make the sale?

8. How do you feel at the end of a selling day in which you have made no sales?

9. In society is there a trust or distrust of salespeople?

10. What causes sales resistance?


1. What is selling?• Fulfilling of needs• Providing service• Pointing out benefits• Art of persuasion

2. What is your objective when you sell?3. What do you do to get the prospect to buy?4. What will you do to get the prospect to buy?5. How do your prospects feel when they’re being sold?6. How do you feel when you’re selling?7. How do you feel when you don’t make the sale?8. How do you feel at the end of a selling day in which

you have made no sales?9. In society is there a trust or distrust of salespeople?10. What causes sales resistance?


1. What is selling?











1. What is selling?2. What is your objective when you sell?

• Getting the prospect to buy• Making money• Closing sale• ….• GETTING THE PROSPECT TO BUY

3. What do you do to get the prospect to buy?4. What will you do to get the prospect to buy?5. How do your prospects feel when they’re being sold?6. How do you feel when you’re selling?7. How do you feel when you don’t make the sale?8. How do you feel at the end of a selling day in which

you have made no sales?9. In society is there a trust or distrust of salespeople?10. What causes sales resistance?


1. What is selling?











1. What is selling?2. What is your objective when you sell?3. What do you do to get the prospect to buy?

• Educate them• Promise them good service• Get to know them• Point out the benefits of dealing with me/company• Convince them• Pressure them• Put down competition• Act like I’m a friend

4. What will you do to get the prospect to buy?5. How do your prospects feel when they’re being sold?6. How do you feel when you’re selling?7. How do you feel when you don’t make the sale?8. How do you feel at the end of a selling day in which you have

made no sales?9. In society is there a trust or distrust of salespeople?10. What causes sales resistance?


1. What is selling?











1. What is selling?2. What is your objective when you sell?3. What do you do to get the prospect to buy?4. What will you do to get the prospect to buy?

• Anything• Whatever it takes• Scare them• Manipulate• Con• Stretch the truth• Lie• Be insincere and unauthentic• Be whatever they want me to be


6. How do you feel when you’re selling?7. How do you feel …


1. What is selling?











1. What is selling?2. What is your objective when you sell?3. What do you do to get the prospect to buy?4. What will you do to get the prospect to buy?


• Resistant• Suspicious• Resentful• Scared• Confused• Hostile• Like their intelligence is being insulted• Pressured • Vulnerable• Abused

6. How do you feel when you’re selling?7. How do you feel


1. What is selling?











1. What is selling?2. What is your objective when you sell?3. What do you do to get the prospect to buy?4. What will you do to get the prospect to buy?5. How do your prospects feel when they’re being sold?

6. How do you feel when you’re selling?• Scared• Vulnerable• Like the prospect is in charge• Not good • Lacking in self-respect• Abused• Desparate• Anxious• Angry

7. How do you feel when you don’t make the sale?8. How do you feel at the end of a selling day in which

you have …


1. What is selling?











1. What is selling?2. What is your objective when you sell?3. What do you do to get the prospect to buy?4. What will you do to get the prospect to buy?5. How do your prospects feel when they’re being sold?6. How do you feel when you’re selling?

7. How do you feel when you don’t make the sale?• Lousy• Hurt• Rejected• Frustrated• Resentful• Like a failure• angry


9. In society is there a trust or distrust of salespeople?10. What causes sales resistance?


1. What is selling?











1. What is selling?2. What is your objective when you sell?3. What do you do to get the prospect to buy?4. What will you do to get the prospect to buy?5. How do your prospects feel when they’re being sold?6. How do you feel when you’re selling?7. How do you feel when you don’t make the sale?


• Like a failure• There has to be a better way to make a living• Vulnerable• Worthless• Stressed• Beat-up• Drained



1. What is selling?











1. What is selling?









• Distrust of course



1. What is selling?









10.What causes sales resistance?


1. What is selling?2. What is your objective when you sell?3. What do you do to get the prospect to buy?4. What will you do to get the prospect to buy?5. How do your prospects feel when they’re being sold?6. How do you feel when you’re selling?7. How do you feel when you don’t make the sale?8. How do you feel at the end of a selling day in which you have made

no sales?


• Pressure• Past experiences• Insincerity• Begging

• Selling


Trust me! I’m in sales…


“SELLING” CAUSES RESISTANCE.

And, every attempt to mask the selling objective causes more

resistance.


Purpose of Sales

• Old Convince Customer to Buy sales resistance

• New Look for a mutual way for the customer and the vendor to do business together

no sales resistance


High Probability Sales

1. Need

2. Want

3. Buying Power

4. Accept Relationship Important

5. Sales Conditions

6. Close


Why High Probability Sales?

• Your goal is to maximize profits in the year

← To do this, you need to maximize number of units sold in a year

← To do this, you need to maximize number of customers you sell to (close) in a year

← Since your time is limited, you need to maximize customers (that you can close) you talk to in a year

← To do this, you need to start with the most likely to buy (high probability) customers


Principles of High Probability Sales

1. State your value proposition in 30-40 words, so that it can be clearly and quickly expressed and understood

2. Ask the prospective buyer if s/he is interested, or not. If s/he is interested, ask if they want to meet/get together.

3. If s/he is not interested, find out why. If there is a way to reconnect (raise interest) ask again. Otherwise, terminate politely, and tell them to contact you if they need to in the future.

4. Every question you ask, should make it possible for the customer to respond negatively (say “no”). So, ask: Do you want … , or not.

5. Eliminate any prospects that is not interested in your value proposition (don’t need), or don’t want to buy from you.


Solution SellingCreating Buyers in Difficult Selling Markets

“Diagnose before you prescribe…”

Michael T. Bosworth


Three Levels of Need

Level 1: LATENT NEED

Level 2: PAIN

Level 3: VISION OF A SOLUTION

Anxiety questions

Capability questions

Feature becomes benefit


Solution Selling (latent active pain)

How do you do it today?

Besides yourself, who else is impacted by this (pain), and how are they impacted?

How do you see yourself using … ?

Today, when you do it, do you do…?

Is this (pain) also causing …?

Are you also looking for a way … ?

Would it also help if you had a way … ?

So, the way you do it today is …, correct?

From what I just heard (repeat the who and how) this isn’t just your problem, but a _______ problem. Right?

From what I just heard, if you had the ability to (repeat capabilities), could you solve your (pain)?confirm

control

open

diagnose reason

explore competitive impact

visualize capabilities

outcomes

pain power vision


Solution Selling Principles• No pain, no change…

• Pain flows throughout the entire organization

• Diagnose before you prescribe

• There are 3 levels of buyer needs – latent need, pain, vision of solution

• There are 2 types of opportunities – Looking, and Not-Looking

• Get there first, set the requirements, and make yourself Column A

• You can’t sell to someone who can’t buy – Power & Budget

• Buyers’ concerns shift over time from “need” to “alternatives” to “risks”

• Pain x Power x Vision x Value x Control = Sale


Timing?

When should you start sales?

1. As soon as the first prototypes work?

2. When you start design?

3. When the product is ready for customers?


Who Should be Your First Salesperson?

1. Founder?

2. General Manager?

3. Sales Manager?

4. Your sales person?


When and How to Scale Up Sales Force?

1. As soon as the product is ready…

2. As many as I can hire based on money I have..

3. Hiring on a set plan, e.g. 2 per month…


Customer Segment

• Can you be successful in sales without defining your target customers?

• What is important in defining the target segment?– Can we effectively reach them?– Can we communicate the value proposition when

we reach them?

• Who is yours? Who is your “1st Customer”?


Which “Sales Channel” should we use for best product/sales match?


The Quadrant SolutionA Business Novel that Solves the Mystery of Sales Success

Howard Sterns & Jeff Cox

(The H.R. Chally Group)www.chally.com


Quadrant Solution:Matching Products to Customers

LO TECH - HI TOUCHRELATIONSHIP SELLING

(new car / dealer)

HI TECH - HI TOUCHCONSULTATIVE SELLING

(wireless ADSL / tech sales)

LO TECH - LO TOUCHDISPLAY SELLING

(engine oil / gas station)

HI TECH - LO TOUCHSUPER CLOSER

(navigational radar / web)

TOUCH

(cus

tom

er’s

per

cept

ion

of s

uppo

rt n

eed)

LOW

HIGH

LOW HIGH

(customer’s perception of product’s functional complexity)TECH

1

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4


YOUR PRODUCT

YOUR BEST CUSTOMER

THEIR PREDICTED NEEDS

YOUR BEST APPROACH

SOM EXPECTED

PROFITS EXPECTED

UNIQUE

(new product / service)

Expert or Owner, but Non-User

Emotionally Appealing (performance)

CLOSING 1-3% > 200%

HI-TECH (systems)

Inexperienced Buyer

Technical & Applications, Purchase & Delivery

(turn-key)

CONSULTIVE 20% 50-150%

WIDELY ACCEPTED

(subsystems)

Experienced Buyers

Purchase & Delivery

(premier service)

RELATIONSHIP 75% 10-30%

COMMODITY

(parts)

Experienced and Habitual Buyers

Price & Convenience

DISPLAY 95% 1-5%

Cheat Sheet for Matching Products to Customers


Sales Process

• What is sales process? How do I create my sales process?

• How do we deal with uncertainties?• Is sales cycle time important?• How can I deal with details?• How can I track / control sales?• How can I improve my sales process?• How can we generate sales forecast?


Steps for Successful Sales will Change Depending on Sales Type

Image building Pre-SaleLead generation

Qualifying

Presentation SaleAnswering objections

Closing

Customer relations Post-SaleCustomers service

Resale (repeat business)


Personal Computer End-Customer Sales Cycle

Pre-Purchase

Purchase

Delivery

Payment

Usage

Maintenance & Repair

Supplements

Discard

Research

Training


Tourist Resort Customer Sales Cycle

Pre-Purchase

Purchase

Pre-Payment

Arrival & Checkin

Enter Room

Return Travel

Arrive Home

• Research • Reference Checks

• Reservation

Travel to Destination

Breakfast

Morning Activity

LunchAfternoonActivity

Dinner

After DinnerActivity

Final Payment

Leaving

DailyCycle

GeneralCycle


Bank Customer Sales Cycle

Research/Selection

Open Account

Contact

Needfulfilled

Goodbye

Close AccountTerminate Relationship

Contact

Needfulfilled

Goodbye

ContactNeedfulfilled

Goodbye

Ziya G. Boyacigiller (c) 2005 51© Z iya G . B o yacig iller 2 004 1

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5

Sales PipelineHow to Create Predictable Sales

Target Customers

First Meeting – Pain Analysis

Repeat Buyers

Customers from Referrals

Closed Sales$$$

Demo

High-Probability Customer Screening

Contract Development


Generic Customer Purchase Cycle(for use with Sales Model)

1- First contact(cold phone callto screen customer)

2- Pain & vision development

3- Demonstration

4- Requirements development

6- Acceptance

7- Payment

8- Post-sale support

5- Review offer


effectively forecast & control sales with

Sales Model

target revenue / 2006 200,000 average sales price 5,000

target sales unit / 2006 40

(refer to sales model.xls file)


What We Learned:

• What is sales?• How is sales done?• How should it be done?• Sales processes• What affects sales process?• How to select sales channels?• How do you predict sales success?• How do you control sales?

Small Business & Entrepreneurship

New 11 sales