John S. Parke, CMP, President & CEOLeadership Synergies, LLC

508-367-6632jparke@leadershipsynergies.com

© 2015 Leadership Synergies, LLC. Confidential and proprietary. Any reproduction is strictly prohibited.

The Science and Art of Selling:The Building Blocks of Professional Selling

Housekeeping Notes

Cell phones off

No dominant personalities

Everyone engaged

Take notes

Out on time, back on time

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A Practitioners Definition

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Demand Creation

(Marketing)

DemandManagement(Revenue Management)

Demand Capture(Sales)

Sales Efficiency

Demand Creation – Marketing

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Demand Creation

(Marketing)

Advertising Public Relations ResearchInternet Channel management

Demand Capture – Sales

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Demand Capture(Sales)

Negotiate and close

Demand Management – Revenue Management

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Adding science to instinct

Business analysis

DemandManagement

(Revenue Management)

Destination Sales Force Focus Is Evolving

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Sales Representative

Product/Service Focus

Reactive

Compete for Sale

Account Director

Customer Focus

Proactive

Create Loyalty

The Relationship Role Is Evolving

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Order Taker

Product Pusher

Narrow Relationship

Offering Discounts

Trusted Advisor

Consultant

Broad Relationship

Delivering Value

Four Selling Types

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Sales – Public Face:

Point of contact

Negotiations

Monitor milestones/activities

Conflict resolution

Reports to DOS, who reports to DOM, who reports to GM

Revenue Management –Analyst:

Long-term trend analysis

Views hotel as an asset to manage

Makes pricing recommendations based on history and forecast

Reports to GM and/or regional RM

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Changing Roles

Revenue Management Defined

Classic revenue management (RM) is defined as the management of demand so the right customer gets the right product at the right price to optimize revenues. This primary activity of revenue management is most valuable when demand outstrips the available capacity so that the management of competing demands will optimize the utilization of the product.

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Airlines, Toll Roads, Concert Venues

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Hotels - All in the Mix

Business Travel

Leisure Travel

Conventions & Meetings

Tours

Airline crews

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Rates $

Occupancy %

Effort and Value

High Value/Low

Effort

High Value /High

Effort

Low Value/Low

Effort

High Effort/Low

Value

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Valu

e

Effort

STEP Defined (outside-in view)

STEP analysis: It is very important that an organization considers its environment before beginning the strategic planning and marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization's marketing environment is made up from:

The microenvironment e.g., our external customers, stakeholders, suppliers, our competitors, etc.The macro-environment e.g., Political forces, Economic forces, Sociocultural forces, and Technological forces. These are known as PEST factors.

 (Source: Marketing Teacher)

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Industry Trends – Group Discussion

Sample STEP:Social trendsTechnological trendsEconomic trendsPolitical trends

Note: Often referred to as PEST Analysis

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ASAE Business of Meetings – STEP Analysis Example

Social: Diversity demographics/generational issues/multiculturalSocial mediaTravel restrictions/xenophobiaGlobalization/demographic cultureSpecial interest groupsGenerational differences

Technological:Virtual meetingsMass communicationsKeeping up with technologyMobility (email, telecommunication, travel)InfrastructureCyber security

Economic: JobIncreased cost of travelAging populationThe economy (domestic & global)“Do more with less”Sponsors spending less

Political: Tax reformsGlobal turmoil (national security, government regulations)Government restrictionsVisa processLegislative/regulatory avalancheFunding/travel restrictions

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E-Lead Sources: Channels

Third parties – 40% of leads come from third parties National and Global Sales Offices (brands) Direct from customers Through platforms (CVENT/Starcite)Many times, all of the above Leads causing chaos—sorting, eliminating duplication, assignments, tracking

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Sales Process Defined

What? A sales process is a step-by-step approach to selling and/or managing a customer relationship, product or service.

Why? Reasons for having a well thought-out sales process include relationship risk assessment, standardized customer interaction in sales, and scalable revenue generation. A major advantage of approaching from a "process point of view" is that it offers a host of well-tested design and improvement tools/resources from other successful customer engagements. In turn, this offers potential for quicker progress. Mapping a process makes it easier for everyone to learn, it leads to more success sooner, and it makes it easier to modify and refine over time.

Adopted from: http://en.wikipedia.org/wiki/Sales_process

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Nine-Step Proactive Sales Process

Step 1: Research/discover

Step 2: Initial contact

Step 3: Qualify/RFP

Step 4: RFP/bid

Step 5: Presentation

Step 6: Negotiation

Step 7: Account servicing

Step 8: Event/post-conference

Step 9: Rebooking

Green indicates where human sellers can add value

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Five Ways to Shorten the Sales Process

1. Sell in priority order (speed)2. Five-minute research (preparations) 3. Use a script (two-minute drill) 4. Sell to the right buyer (decisions) 5. Close the business (reduce vulnerability)

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Selling In Priority Order

1)Increase share of current customers: Sell more to existing high-value customers first. Increase the share of business you already get by offering new products and services that the customer is not buying from you today. This category of customer already has a relationship with your company, and it will be easy to gain access to and influence the buyers.

2)Sell to lost customers: Sell to customers who considered buying from you in the past but ultimately selected one of your competitors. They are aware of your destination but do not have an ongoing relationship. They will be the next most likely to give access, and they could be dissatisfied with your competitors’ services and/or products.

3)Sell to customers you turned down in the past: Perhaps the customer was not very desirable in the past for any number of reasons (low margin, low volume, late payments, etc.), but in a slower economy you find them more desirable. Assuming you turned them down in a diplomatic and professional manner, they will be the next most receptive category of customers to solicit.

4)Sell to new customers: It’s astonishing that sales leaders often ask their sales teams to “go get new customers” before the sales force has exhausted customers in categories 1–3 above. New customers are the hardest to gain access to and the hardest to influence because they have no prior interactions or awareness of your offerings, and no existing relationships.

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Five-Minute Web Research

Company profile Mission and vision Executive profiles News and PRContact information

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The Science of Solicitation

Five-minute researchScript your approach

First minute: establish the “why”

Next 2–5 minutes: establish the “how”

Next 5–7 minutes: establish the “when”

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Use a Script

Best day to callBest time to callBest option for very senior executives Focus on the first minute, then the next two minutes, then the next five minutesSample phone and e-mail script

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Territories and Segments

Segment of the market for which a salesperson is responsible. Territory assignments may be exclusive, meaning no other salesperson can sell in that territory, or nonexclusive. Territories may be defined in terms of geographic or market segments, product or product lines, size of customer or by specific customers or prospects.SMERF: Sports, Military, Education, Religious & Fraternal Corporate: Pharmaceutical, Auto, ITAssociation: Trade, Education

Source: Answers.com

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Mapping

Microsoft MapPoint software for North America

http://www.microsoft.com/mappoint/default.mspx

Export data from Excel spreadsheet containing Zip code/Postal code and other relevant data:− Vertical market segment− Group size− Sales managers− Status (definite, tentative, lost, etc.)

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Definite Bookings by Market Segment - USA

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Definite Bookings by Market Segment – North East

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Switching Costs

Switching costs are hidden costs a consumer faces when switching from one product to another in the marketplace. Consumers should try to factor switching costs into purchasing decisions, since they impact future purchasing decisions (limiting freedom of choice). Companies develop switching costs to try to establish lock-in. The airlines have a good understanding of switching costs and have developed frequent-flyer programs to raise switching costs and increase loyalty among their installed bases.

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Examples of Switching Costs

Why switch? Management teamProcessesRelationshipsExtensive offerings Production expenseFinancial savings Creativity/solutions

Why not? Too much effort required to changeRelationship and comfort—anxiety over assimilating with a new team Concerns with replicating existing processes, reports, etc.Fear of change (job loss, diminishment)No reason to change 32

Identify and Understand Buying Influences: Buyer Types

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Adapted from: The New Strategic Selling Stephen E. Heiman and Diane Sanchez with Tad Teluja. Miller-Heiman, Inc., 1998.

Who is involved in the decision-making process for this sale?–Roles, titles• Economic Buyer• User Buyer• Technical Buyer• Coach Buyer

The Players: Economic Buyer

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Adapted from: The New Strategic Selling Stephen E. Heiman and Diane Sanchez with Tad Teluja. Miller-Heiman, Inc., 1998.

• Position: Rubber stamp

• Role: Give final approval to buy− Controls money− Veto power

• Focus: Bottom line and organizational impact

• Asks: − What is the ROI? − How will this impact our

organization?

The Players: User Buyer

• Position: Tester

• Role: Judge impact of product/service on his/her job performance

−Will use or supervise use of product/service

−Link between User Buyer’s success and the success of product/service

• Focus: Task at hand

• Asks: − “How will this work for me in

my job/department?”

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The Players: Technical Buyer• Position: Gatekeeper

• Role: Measure quantifiable aspects of product/service against specifications

−Can’t give final approval−Can advise against based on technicalities

• Criteria: Price, delivery schedule, logistics, terms and conditions, credit, regulations

• Focus: Not win, but play

• Asks: −“Does this meet requirements?”

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The Players: Coach Buyer

• Position: Yoda

• Role: Act as guide for sale−Provide/interpret information about

validity of single sales objective, other buyers, plan

• Focus: Your success with this objective

• Asks: − “How can we ensure that this solution

is accepted?”

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Closing Sales

Four ingredients to closing:

1)Needs2)Solutions3)Next steps4)Contract close

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Why Customers Don’t Buy

They are not aware of your product. They don’t understand the benefits of your product.They don’t feel your product has perceived value.They don’t see how your product meets their needs.Your product is not accessible to them.

http://marketing.about.com/od/marketingmethods/a/5reasonsnotbuy.htm39

How to “Close” Business

The elements of closing include verifying that:your proposal meets the needs of the client you have provided the client a contract to sign with terms that are agreeable to both parties you have provided a clear view of the go-forward path for the customer (“these would be the next steps once the contract is signed”)you have asked for their business (“we want to work with you”)

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When Customers Push, Respond

Request for deeper discount:Your best response: Ignore it and stand firm. Demands for discounts, especially at the end of a sales cycle, usually mean the customer is testing to see if they've gotten the best deal. If you drop your price in a demand for an automatic discount, you'll lose credibility and end up with a non-profitable deal.

“I’m the decision maker”:Your best response: Ask about the specific reporting structure and skillfully probe to find out which stakeholders influence the decision. Read between the lines and you'll probably be able to figure out which people actually have to be "sold" before a deal can go through.

“Competitor is cheaper”: Your best response: Treat this as you would if the competitor actually WERE cheaper: position your offering, and the privilege of working with your company, as having massively higher value than working with the competitor.

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I Can Never Reach a Human!

“Employees were given the option to turn off their voicemail systems at the Atlanta office complex and our Coca-Cola Technology Plaza, and only 6% opted to keep

voicemail.”Your best response:

Call early in the morning or over the weekend.   Many real decision-makers work extra hours and take their own calls when the office is empty.Use a script when leaving a voicemail message – keep your message under one minute.

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Percentage Chances of Closing Tradeshow Leads

30% •First month after the event •Customer remembers one or two points

20% •Second month •Vague memory recall – basically the same as competitors

10% •Third+ month •Same as starting over

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Tools Available to You Today

Session PowerPointSample scripts and e-scriptsSample account action plan Sample client needs assessmentASAE – attendee ROI toolASAE – exhibitor ROI tool

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Sales Meeting FormatThe sales meeting format should change to be more focused and better utilize the team’s time (efficiency and effectiveness). The sales meeting time frame should be one hour maximum. The agenda should be fixed and should cover:

The top 5–7 major accounts that are in the sales process for each personThe sales leader must determine in advance which accounts each person will review (no self-selection by the sales team). The sales leader should open the meeting with a perspective that only the sales leader would/should be responsible for offering (total team year-to-date production status, major destination-related news, major industry trends, etc.). The sales managers should then conduct an account overview to include (mandatory information for each event): − Which sales process step the account/event is in − 1–3 key objectives from the customer’s perspective (what is really

important to the customer relating to the event) − The top 2–3 competitors and their positions with the account/event − Who the decision maker(s) are (must identify the economic buyer—the

person who signs the contract)− Any key obstacles/objections the seller needs to overcome (this is the time

when the sales team can offer insights, suggestions, best practices)− Decision process steps (next step in the sales process, what they plan to

do, and next major milestone date)− Contract decision date

This meeting should be held once a month with the expectation that team members will come prepared with all the answers to the items listed above (no exceptions). The sales leader should close out the meeting with a summary statement and key next steps.

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Essential Leadership Components

Sales Leadership

Architect

Analyst

Defender

Coach

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Session Summary

TakeawaysNext steps

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