Pipeline Workshop. What is Consultative Selling? © 2012 The PACE Partners LLP London England...

Pipeline Workshop

What is Consultative Selling?

© 2012 The PACE Partners LLP London England

Building the motivation

to buy and re-buy

Why People Buy


Trust

Credibility

Competence

Compatibility

The Iceberg Principle


Building Trust


Trust

Trust

Credibility Competence

Consistency

Compatibility

(Initial) impact

Confidence

Delivery as promised

Honesty

Knowledge

Expertise

Insightful questions

Track record

Over time

Towards different people

Between different people

Genuine interest

Active listening

Showing vulnerability

Adapting behaviour

A Trusted Adviser


Sector & Client

Knowledge

GenuineInterest

Key Skills &

Processes

TechnicalExpertise

The PACES Approach to Selling

P osition your firm, your sector, yourself and the discussion

A scertain in detail the client’s situation and requirements

C onfirm your understanding of the client’s situation and requirements

E xplain or explore a suitable way forward

S eek commitment to the way forward



Key rule:

Total P.A.C.Before E.S.

Agree the full picture before discussing or deciding the way forward


Consultative Selling

What it is not:

Sell, sell, sell

Pouncing on the first opportunity

Focusing only on the opportunities for YOU

Pressure, manipulation

Short-term greed


Consultative Selling

What it is:

Looking through each client’s eyes

Having (and demonstrating) genuine interest in the client

Moving at the client’s pace

Building a relationship of TRUST

Building lifetime value for both parties


Designing the client base of the future

What would your perfect client base look like in 2/3 years time?

Possible considerations:

Number of clients (existing/new)

Type of clients

Type of work

Fee levels

Geography

Type of work

Type of relationship


A cautionary tale…...

Pipeline Activity - Unmanaged


Level

Time

Pipeline Activity - Unmanaged


Level

Time

Activity

Results

Pipeline Activity - Managed


Level

Time

Activity

Results

The PACE Pipeline

What is it?

A ‘project management’ approach to business development


Foundations of the Pipeline Principle

There is nearly always a time lag between selling activities and results.

Not all selling activity produces results.

Results cannot be guaranteed, results are history.

Activities can be managed and monitored.


The PACE Pipeline


1Undefined prospects / suspects

P1

P2

P3

P4

P5

Prospecting

Protecting

Projecting

Promoting

Defined prospectsnot yet marketed

to

Current key and valued clients

Defined prospectsmarketed to- not yet indialogue

Qualified prospects- in dialogue

2

3

4

5

6

Pruning

‘Problem children’ clients


P1

P2

P3

P4

P5

The PACE Pipeline



P1

P2

P3

P4

P5

Prospecting

Protecting

Projecting

Promoting


to




2

3

4

5

6

Pruning


Prospecting

P1

Defining Prospects


GIGO

arbage

n

arbage

ut

Selection criteria

Filters

The factors that make a client more attractive / easier to approach


Triggers

The factors/events that make a target client more likely to meet with/talk to/buy from a new adviser

Factors which might make prospects more likely to move from their existing adviser(s)


Agree a hit list

Decision making model

A Decision Making Model


Bishop‘gatekeeper’can say no based on conforming to specification

can’t give the final approvaljudgmental on specific quantifiable elements of your proposal.

Question: Does it meet specification?

King/Queenfinancial/economic buyercontrols expenditureauthority to release fundsdiscretionary use of budgetthe power of veto

Question: How will this impact our organisation & R.O.I.

Pawn‘users’/supervise usejudgements about impact on job performancewill have to live with your solution

Question: How will it affect me & my team?

Knightcoach/spyguide around the businessprovides & helps interpret informationwants your proposal to be successfulCredibility

Question: How can we win this together?

The PACE Pipeline



P1

P2

P3

P4

P5

Prospecting

Protecting

Projecting

Promoting


to




2

3

4

5

6

Pruning


P2 Promoting

Research

“In addressing how senior people should not be approached, Cold calling, generic letters and brochures came top of this list. (They) were vexed by the number of uninformed approaches they received from firms which simply said they wanted to be considered for work?”

Nisus Consulting


Contact

Capability

Corporate

Clients and defined prospects

Active

Passive

Nearnessto

client

The ‘Nearness to Client’ Pyramid


Maister’s View of Marketing Tactics


Order of effectiveness

The first team

The second string

Clutching at straws tactics

Seminars (small scale) Articles in client-orientated (trade) press Speeches at client industry meetings Proprietary research

Community / civic activities Networking with potential referral sources Newsletters

Public relations Brochures Seminars (ballroom scale) Direct mail Cold calls Sponsorship of cultural / sports events Advertising Video brochures

Source: D H Maister ‘Attracting New Clients’

Clients’ Perception of Marketing


1

2

3

4

5

Staff secondments

Seminars at clients' offices

Regular service review meetings

Seminars at firm’s offices

Research into key issues

E-bulletins

One to one lunches

Newsletters

Pitching proactively for new work

Websites

Corporate hospitality

Seeing a firm’s name in the press

Sponsorship

Importance

Performance

Suggested Elements of a Promotional Campaign

Magazine articles

Proprietary research

Press releases

‘white’ papers

Seminar invitation

DVD’s

Awards

Referrals/references

case studies

Software/tools

Links to websites/pdf files

Promotional items


How to build a campaign

The Client’s World

P olitical

E conomic

S ocial

T echnological

E nvironmental

L egislative


Making the phone call

Gaining the Appointment

1 Greeting

2 Identify - client then you

3 Gain interest/link statement

4 Ask for the meeting

5 Objection handling

6 Ask for the meeting


Client enthusiasm management


Client enthusiasm

Time

P3 Projecting

Managing the Projecting Phase


P3

Projecting

Qualified prospects

- in dialogue

First sight ofopportunity

Plan / execute selling process

Commercial qualificationbegins

Plan / execute bid / proposalprocess Bluebird

Commercial Qualification

1 The business driver(s)

2 The bases of decision

3 Money / budgets

4 Timescales

5 Decision making process

6 Alternatives / competition / incumbents


Managing the Projecting Phase


P3

Projecting

Qualified prospects

- in dialogue

First sight ofopportunity

Plan / execute selling process

Commercial qualificationbegins

Plan / execute bid / proposalprocess Bluebird

Managing bluebirds

The PACE Pipeline



P1

P2

P3

P4

P5

Prospecting

Protecting

Projecting

Promoting


to




2

3

4

5

6

Pruning


P4 Protecting

Key Account Management Model


Segmentingthe client base Meeting client expectations

Relationship protection

Excellence in: Planning Executing Communicating

Marketing to clients

Selling to clients

Cross-selling to clients

Teamwork

Leadership

Communication

Supporting Technology

Key ClientPlanning

Relationship Analysis Model

Relationship Analysis Model (RAM)


Positive

Negative

View of us

Low High?

? ?

Level of influence

Players of unknown influenceand allegiance

Relationship Analysis Model (RAM)


Positive

Negative

View of us

Low High?

? ?

Level of influence

Players of unknown influenceand allegiance

Friends Allies

‘No Man’s Land’

Protestors Enemies

Cross-Selling Challenges

Communication

Knowledge of what others do

Trust in others’ capabilities

Loss of control considerations

Financial considerations

The client’s image of our firm

A real understanding of the client’s business

Knowing how to cross-sell


P5 Pruning

Pruning

Lack of fit criteria

Work is low volume / low revenue

Work is unprofitable / produces poor cash flow

Client / work does not fit with strategic direction

Association with client / work creates poor image

Client / work is unpleasant

Client / work leads to low staff morale / high staff turnover

Work is high hassle / constant source of remedial actions

Work is not in line with our current / future strengths


How to Prune

Alternatives

Let it wither

‘Be honest’ meeting

Set minimum acceptable fees

Delegate the client

Service ‘at a distance’

Pass to a partner organisation



P osition your firm, your sector, yourself and the discussion

A scertain in detail the client’s situation and requirements

C onfirm your understanding of the client’s situation and requirements

E xplain or explore a suitable way forward

S eek commitment to the way forward



Key rule:

Total P.A.C.Before E.S.

Agree the full picture before discussing or deciding the way forward


Meeting Management


Beginthe

meeting

Agreeingtheway

forward

Showingunderstanding

Understandingthe client


I have a really bad headache!

Open General Questions

Are likely to give long uninfluenced answers


Open General Questions

Open questions can be easily identified because they normally start with, or include the key words:

What; Why; Where; Who; How; When; Which

‘Tell me’‘Explain to me’‘Describe to me’


Open Specific Questions

Are likely to give long influenced answers


Closed Questions

Are likely to give short influenced answers - often just yes or no


Exercise

In the following exercises decide which question is the most general and which

is the most specific

A question relating to a person’s attitude to a new system

What is your attitude to this?

Why do you have such strong opinions on these types of systems?

Why are you so negative to this sort of idea?


A question related to dealing with a vacancy in a department

Who do you think has the best skills for this job?

Who do you think should get this job?

How do you think we should deal with this vacancy?


A question related to a person’s view of their career

How do you see your career developing?

How do you see the future?

Where do you want to go in the company?


Funnelling

Funnelling


1 Introduce, set the scene and stimulate the client to talk

3 Open Specific Questionsto explore avenues fully

4 Closed questions to checkunderstanding of information gained

5 Summary and agreement on all aspects of client’s situation

2 Open General Question to open up avenues of discussion

Closed Questions

What do you do when you have asked a question?

Listening


Positive Body Language

Pauses and Silence

Acknowledgements“Uh huh?”“Really?”

“Yes?”

Door Openers “Tell me more.”“I’d like to hear about that.”

“I’m interested to learn about this.”

Unbundling

Key Words & Phrases “Usually?”“When you say ‘political?”

“You mentioned earlier about a lack of

support’?”

Providing Feedback Summarising & Reflecting

Passive

Active

Questioning, listening & funnelling

Paces

Your positioning statement

pacESOffering solutions best practice

F.B.R.

Features

Any facts about a product, service or solution.


Benefits

What the client gains when a feature or features meet the “requirements”.


Requirements

The client’s needs and wants.


Offering Solutions

1 Restate the specific client requirement

2 Select the most appropriate feature/s of the

3 Your firm’s offer

4 Provide proof

5 State the benefits from the client’s perspective

6 Gain commitment


When should you present fees?

The Value Concept - Handling Fee

It’s all in the mind!

Confidence - and lack of it - shows The client is paid to get the best price - you will

often hear your fees attacked If you don’t see the value nor will the client You may not be least expensive but you won’t always be

most expensive If you cannot build confidence in your rates - don’t

try to sell!


Handling Resistance

Handling Resistance

Step 1 Pause

Step 2 Funnel - “Tell me more”

Step 3 Identify other objections

Step 4 “If we can….”

Step 5 Provide best answer

Step 6 “Completely satisfied?”

Step 7 Move to next stage


Handling the Fee Objection

Step 1 “Compared with what?”

Step 2 “How much?”

Step 3 Sell the difference


Moving on fees

Make the client ‘work’ - do not move too easily

If you change the price - change the offer too!

‘Negotiate’ any movement using ‘if’ and ‘then’


Conclusions & Actions

Pipeline Workshop. What is Consultative Selling? © 2012 The PACE Partners LLP London England...

Documents

Transcript of Pipeline Workshop. What is Consultative Selling? © 2012 The PACE Partners LLP London England...