Showing posts with label closing sales. Show all posts
Showing posts with label closing sales. Show all posts

Wednesday, 15 April 2009

Post 11: Neuro Linguistic Programming

So I’ve learnt some basic sales skills and techniques, which is half of the battle, but a lot of people speak about ‘the psychology of sales’ to give them the competitive edge. We learnt more about this psychology and how it can be used in business by attending a lecture on NLP, provided by Caroline Edwards of Satsuma-NLP.

Like many people, I have encountered NLP in the past (my secret love of Derren Brown), but it was great to finally speak to a professional and learn the ‘nitty-gritty’ of the subject.

So, NLP, it’s a fancy title, but what does it mean?

In its simplest form, NLP is a system of communication to get results. It was first devised in 1949 and evolved by John Grinder and Richard Bandler in the mid 70s. The 2 college friends admired successful therapists such as Erickson and Jung, and ‘elicited the strategies’ of these top professionals to turn them into a model of how language is processed by the brain. This information could then be taught to anyone to improve their listening and communication skills.

Grinder and Bandler argue that the language we use can have a powerful affect on the unconscious neurological processes of the listener. By employing NLP techniques, it is possible to gain an insight into how others want you to communicate with them to best effect, and build rapport quickly for successful selling, Yemm (2006).

Modern NLP practitioners identify 5 types of people based on the 5 different senses (usually one or two senses are prevalent), and they suggest you adopt specific approaches when communicating with each type of person. i.e. when selling to a ‘Visual Person’ (uses language like “I can’t see that product fitting in here”) you should use descriptive language to create pictures for them.

The 5 Different Categories


Below is a table detailing the types of person, the characteristics to spot in identifying each type, and then how to communicate/sell to these people for best effect.


Obviously everyone was keen to hear Caroline’s ‘diagnosis’ on their NLP type to see if the theory worked. Caroline said she felt I was predominately auditory, with some kinaesthetic traits. I imagined I would have had a visual/audio mix given my tendency to imagine pictures, love of music and use of ‘proper language’, so although I was surprised with the result, I agree with her.

Rapport


Rapport happens all around us, and most of the time we barely even notice, it’s that hour long conversation with a friend over coffee that seemed like it lasted 10 minutes. Both parties are deeply engaged in conversation and active listening – you could call this ‘subconsciously connecting’.

In a business scenario, rapport is making this connection and engagement which improves a seller’s chances of success. NLP can be used to quickly build a rapport, Nancarrow (1998), and applies to all interactions, including clients, suppliers and potential customers.

Caroline mentioned only around c7% of communication comes from the spoken word, with 55% from physiology (body language), and 38% tonality (use of pitch/tone).

Whereas traditional NLP techniques related purely to language, modern techniques build on more physiological aspects such as ‘Mirroring’ body language and breathing patterns. By employing these NLP techniques further subconscious rapport can often be established quickly. However, you must approach this with caution; being too obvious in mirroring body movements could most likely make others feel uncomfortable.

Improper use of NLP techniques, as mentioned above, could cause ‘Synaesthesia’ in the recipient. This isn’t a good thing, as essentially 2 of their senses overlap and they become subconsciously confused, uncomfortable and therefore stop absorbing information.

I was fascinated when Caroline said she could always spot a liar through their eyes. NLP practitioners recognise that your eyes tend to move in different places dependent on brain function, and that these movements can be generalised for most people.



So the picture above shows the most common eye positions which give insight into how people’s brains are processing data. To put this into perspective if you asked someone if they like the Rolling Stones, as they think of their answer they will probably look to the left as they remember the sound, if kinaesthetic, they may look down and to the right, while they connect with their feelings about the Rolling Stones.

Constantly monitoring people’s eye movement in everyday life is a little extreme, but if you are in a specific situation looking for patterns of where people’s eyes are during speech may it may offer further insight to their true thoughts/feelings.

Conclusion

I definitely believe that the workshop on NLP helped to improve my confidence and knowledge going into sales situations, for example:

- When completing market research I spoke to various existing VTA distributors and potential suppliers, paying particular attention to their use of language. By picking up on subtle suggestions, managed to turn a telephone interview into a sales pitch with one of the largest distributors in the UK.

- I know the importance of varying my tone in conversations, especially telephone calls where physiological signals can’t be projected. This will also appeal specifically to auditory people.

- Not to try too hard to notice the NLP signals – I now find myself trying to ‘decode’ people, and barely hear a word of what they’re saying!

Due to my previous interest in NLP I went straight home and did some research. My impression is that the pragmatic approach of the originators (Grinder & Bandler) has now been swamped in a huge industry of ‘gimmicky’ theories and false promises. I do however acknowledge NLP is an effective tool if used wisely.

Recommended links:

www.satsuma-nlp.co.uk (Caroline’s company)
www.nlp3.co.uk
• NLP in business – www.ciauk.com

Friday, 10 April 2009

Post 8: Professional Selling - Contact Methodology

Qualification Questions

Qualifying customers is arguably one of the most important parts of the selling process, as spending time pursuing those who can’t afford or simply don't have a need for your product is time wasted.

Key qualification questions include:


• Will your business make a difference to the client
• Does the client need/want your product or service
• Can the client afford / is willing to pay for your product or service.
• Is it the right point in the buying cycle


The key to effectively qualifying prospects as discussed during the second sales workshop is to really listen to prospects and ask plenty of open questions such as, who, what, where, why, how.

Further reading since the workshops had identified that good qualification questions fall into three main categories: Money, Method and Motivation.

http://www.allbusiness.com/sales/selling-techniques/373097-1.html

Applying the theory covered in this workshop gave the following qualification questions for my business:

Money:

• How much of your budget it assigned to tackling obesity, and specifically for preventative medicine products such as these?

• What is the source of your funding and when is it renewed?

• How much do you normally pay for VTA products?

Method:

• What criteria does this product need to meet to be approved

• What steps do I need to make to convince you to purchase – product pictures or full personal demonstration?

• If you were to purchase, when would you need delivery?

Motivation:


• Why do you need this type of product? (core business function i.e. schools with specific healthy eating targets)

• What happens if you don’t get this product?


Features VS Benefits

Every product or service available offers the purchasers features and benefits. Demonstrating these to prospects can be an excellent method of generating credibility, sales, and a gaining competitive advantage.

The two can however often be confused. For an explanation of the difference please see the example of an electric toothbrush below:


During the workshop, Steve explained that by putting yourself in the shoes of your clients and understanding their needs you are able to recognise the features and benefits that will be of interest to them.

The features and benefits of the VTAs I am looking to distribute are;


Objection Handling

A major problem encountered by sales people are objections like;
“I don't want or need your product”
“I can't afford it”
“I already have one”
“We have a Preferred Supplier List (PSL)”


Being able to overcome these types of objections will massively increase the chances of making a sale, although to do this effectively your response must be instant, convincing, and confident. It was therefore highly recommended by Steve that we prepare for objections before making sales calls. The result of which are:


I have found since the workshop that keeping an accurate list of objections given during live calls is an excellent way of being prepared for any objection posed.

Closing Sales


For many sales appointments signing the order can be a formality. Likewise, at the end of an appointment a salesperson may realise that this prospect is never going to agree to a deal.

There are however times when a prospect is still unsure, and can be swayed into the decision the seller is looking for, this process is known as closing.

For many salespeople this can be the most difficult part of the process even though it is simply down to asking the question; Can I have the business?

Asking this will give either a yes or no answer, if no then it’s time to go back to the objection handling process discussed earlier, and if yes then fantastic, a sale has been made!

During the second sales workshop Steve described the closing process as:

- Ask a question
- Overcome any objections and push them aside
- Repeat asking for the business


As my company is currently at a pre-trading stage I have been unable to put this theory into practice although I fully appreciate that closing sales is more a question of effective objection handling which can be practised in advance.

Recommended links:

• Objection handling – www.changingminds.org
• Objection handling script - http://www.avnmembers.co.uk/knowledgebase/Business/pdf/priceobjections.pdf
• Closing sales – www.entrepreneur.com and www.allbusiness.com and www.24techniquesforclosingthesale.com