Strategic Selling Review 19991011

7/31/2019 Strategic Selling Review 19991011

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Strategic Selling

Robert B Miller and Stephen E

Heimanv0.1 October 11, 1999


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What you will learn from the book

How to position yourself with the real

decision makers and avoid those without

approval power.

How to spot the two key customer

attitudes that can make a sale, and the

two that usually break it.

How to get not only the order but a

satisfied customer, repeat sales and

enthusiastic referrals.

How to increase sales penetration in your

current accounts.

How to free up the stuck order.

When to treat an old account like a new

prospect.

How to avoid selling business you dont

want.

How to identify and deal with the four

different Buying Influences present in

every sale.

How to prevent sales from being

sabotaged by an internal antisponsor.

How to recognize fail-safe signals that

indicate when a sale is in jeopardy.

How to track account progress and

forecast future sales

how to avoid dry months by allocating

time wisely to three critical selling tasks.

When the adage, look before you leap, is

the key to selling in present times and why

he who hesitates is lost is inappropriate

advice.


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Lucky Salespersons

concentrate instead on providing solutions,

solving problems, creating opportunities, and in

general making their customers feel good about

the sale, no matter how much effort that takes.


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Complex Sale

Is one in which several people must give their

approval before the sale can take place.


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Three Premises

Whatever got you where you are today is no

longer sufficient to keep you there.

In the complex sale, a good tactical plan is

only as good as the strategy that led up to it.

You can only succeed in sales today if you

know what youre doing and why.


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Profile

They have developed a conscious, planned

system of selling steps that are visible, logical

and repeatable.

They are never satisfied.


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Why you need Strategy first

Both strategy and tactics are derived fromancient Greek. To the Greeks Taktikos meant fitfor arranging or maneuvering, and it referred to

the art of moving forces in battle. Strategos wasthe work for general. Originally therefore,strategy was the art of the general, or the art ofsetting up force3s before the battle began. In

military terms these definitions still apply; withthem in mind, you can easily see why strategymust precede tactics in a military setting.


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Short Term and Long Term Objectives

In the short term you want to close as manyindividual deals as you possibly can, as quickly aspossible.

In the long term you want ot maintain healthyrelations with the customers signing for thesedeals, so that they will be willing to make furtherpurchases from you in the months and years tocome.

The successful sales strategist will keep bothshort-term and long-term objectives in mindwhen managing the Complex Sale.


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Use a logical, repeatable sequence

Analyze your current position with regard to youraccount and with regard to your specific salesobjectives.

Think through possible Alternate positions.

Determine which Alternate Position would best secureyour objective and devise an Action Plan to achieve it.

Implement you Action Plan.

The whole key to strategy is position. It tells you whereyou are now, and where you might have to move toincrease your chances of sales success.


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Position

On the battlefield, being in the wrong place at

the wrong time can be a fatal error, because

no matter how brilliantly an army may

perform in a face to face encounter it will

never get a fair change to do so if its leaders

dont know where they are, or if they are

marching in the wrong direction.


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Position - Steps

Identify relevant changes

What are the changes that you feel are influencing the way you do business?

Rate these changes + or - Of the above, which are the opportunities and which are the threats?

Define your current sales objective It must be specific and measurable (who is being what, when)

It must focus on the outcome what am I trying to make happen in this accountthat isnt happening right now?

It is single rather than multiple.

Test your current position How do you feel about with regard to ?

Euphoria / panic continuum - dangerous to be at either end.

Euphoria secure comfortable OK concern discomfort worry fear Panicgreat

Predictable Unpredictable

Do I need to change anything to assure success? What must I change to reduce anxiety?


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The Six Key Elements of Strategic

Selling

Buying influences

Red flags / Leverage from Strength

Response Modes Win-Results

The Sales Funnel

The Ideal Customer Profile.


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Buying Influences

Economic buying influence Will give final approval.

Can say yes when everyone else has said no.

User buying influence Sale will affect their job performance.

Their personal success tied to the decision.

May be more than one. Technical buying influence

To screen out possible suppliers

Focus on product or service itself

Cant give a final yes, but can give a No.

May be more than one.

Coach

to guide you and give you information you need to position yourself May be in the organization, or in your own organization, or outside.

Focus is on your success


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Economic Buyer

The ultimate reason for the purchase is the bottom-

line impact you can make on the organization.

It is critical to find out who gives the final yes.

Economic Buying Influence

Role: To give final approval to buy.Only one per sale.(Note: May be one set of people such as a board or committee.)

Direct access to $

Release $ Discretionary use of funds Veto power

Focus: Bottom line and impact on organization.Asks: What kind of return will we get on this investment?


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Finding the Economic Buyer

Dollar amount The greater the amount the higher you must look

Business conditions In hard times decisions are pushed upwards

Experience with you and your company It takes time to build trust, and the higher the perceived the risk

the higher the decision is made

Experience with your product or service The decision to try a new product or service could raise the

decision point. Potential operational impact

Buying decisions that affect the long-term stability and growthwill be made high.


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User Buyer

They make a judgment about the impact of the product or

service on the job to be done.

Personal perspective - how will your product or service work

for me?User Buying Influence

Role: To make judgements about impact on job performance.Often several or many.

People using / supervising use of your product of service Personal, since user will have to live with your proposal

Direct link between users success - success of your product/service

Focus: The job to be done.Asks: How will it work for me?


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Technical Buyer

Could be categorized as people who cant say yes, only no - and often do.

Make judgements about the measurable and quantifiable aspects of your product or

service based on how well it meets a variety of product specifications - which may or

may not be technological. May be a legal reason not to proceed or on price, delivery

time, failure to meet specifications, logistics, conditions of sale, credit terms, even

references.

Technical Buying Influence

Role: To screen out.Often several or many.

Judges measurable, quantifiable aspects of your proposal.

Gatekeeper Makes recommendations Cant say yes (ie , in final approval) Can say no - and often does

Focus: Produce per seAsks: Does it meet specifications?


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Coach

The first three categories already exist. They are waiting to be

identified. The Coach must not only be found, but must be

developed. Coach

Role: To act as guide for the sale.Develop at least one.

Can be found: In buying organization In your own organization Outside both

Provides and interprets information about: Situation Buying influences How each wins

Focus: Your success with this proposal.Asks: And how can we pull this off?


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Criteria for a good Coach

You have credibility with that person.

Possibly has won in a sale with you in the past.

Knows that you can be trusted.

The Coach has credibility with the buying organization.

The information that the Coach provides must be reliable. The Coach wants you to succeed.

The Coach sees that it is in their self interest for the buying organization to

accept your solution.

Dont ask the Coach to do your selling for you. Seek

information and direction, rather than referrals. What youwant the Coach to hear is I will take accountability for the

sale, but I could use your expertise. I will do the selling ifyou will explain how a couple of things work.


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Identify the buyers

To locate your single Economic buyer ask, Who hasfinal authority to release the money for this sale?

To find your User buyers ask, Who will personally useor supervise the use of my product or service on thejob?

To find the Technical buyers ask, Who will makejudgements about the technicalities of my product orservice as a way of screening our vendors?

To find the people you can most efficiently developinto Coaches ask, Who can guide me in this sale?

Prepare the chart


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The Buying Influence Chart

Economic - releases $

Coach - guides me on this sale

User - Judges Impact on Job

Technical - Screens Out

Dan Farley

Gary Steinberg

Will Johnson

Harry Barnes

Andy Kelly

Doris Green

Harry Barnes

Doris Green


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Red Flags - for danger or

opportunity

Red flags are used to highlight areas of

strategy that need further attention.

Missing Information

Missing information signals that the sale may be in

danger.

Uncertainty about information

What has been assumed?

What is not understood in the context of the sale?

Any uncontacted buying influence

Cover each base with the person best qualified to


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Second Key Element of Strategy

Leverage from strength, which involves:

Locating areas of weakness (red flags)

Locating areas of Strengths Using those Strengths to remove the Red Flags


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Response Modes

There are four possible reactions to change that a Buyer can

have in a given selling situation. They are determined by:

The Buyers perception of the immediate business situation.

The Buyers perception of how your proposal is likely to

change that situation.

The buyers perception of whether or not that change will

close a gap, or discrepancy, between what is seen as the

current reality and the results needed. No matter how good a

match there is between your proposal and those objective

needs, no Buyer will be receptive to change unless this

discrepancy is apparent first.


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The Four Response Modes

Growth. The Buyer does perceive the essential discrepancy between the

way things are right now and the way they should be. A Buyer in growth

mode will be receptive to you provided you can show that your proposal

makes it possible to do more or do better.

Trouble. A Buyer in Trouble Mode sees a reality-results discrepancy, but it

is something in the business environment that has caused a deviation

from the planned course. The Buyer will be receptive if you show that

your solution can quickly eliminate that discrepancy.

Even Keel. The Buyer is happy as he does not perceive a discrepancy. The

probability of selling is low.

Overconfident. The Buyer perceives reality as far better than expected.

The likelihood of making a sale is nil.


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Additional Traps

Sales representatives who are inattentive to Buyer

receptivity frequently fall into one of three fatal

traps:

They take their own perceptions of reality as the keyto the sale.

They assume their perceptions of reality are the

same as those of their Buyers.

They recognize that the Buyers perceptions of reality

are different from their own, but conclude that they

are wrong or irrelevant.


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The strategic sales representative understands thatanytime you ask someone to buy something, you are

asking that person to make a change.


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First Response Mode - Growth

The buyersperceiveddiscrepancy between the current

situation and the goal or target is invariably a crucial factor in

readiness to buy.

Knowing when to approach a customer is often just as

important, but usually not as predictable, a factor in making a

presentation as knowing what the customer needs.

Trigger words are more, better, faster, improved and signal the

readiness for change. These must be used personally rather

than as a description of their organization. Address theindividual perception and not the perception of the

company at large.


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Second Response Mode - Trouble

Does your proposal remove the cause of the Trouble and the

discrepancy that it causes.

This is a reversal of the discrepancy perceived by a buyer in

Growth response mode and means that the buyer is ready to

buy, but not necessarily from you.

The winning proposal will be the one that will most quickly

remove the cause of the problem.

Trouble always takes precedence over growth.

Selling Growth to a Buyer in Trouble, is like selling a roof to a

farmer whose barn is on fire!

I need to do more right now (Growth)

I need to do more rightnow (Trouble)


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Third Response Mode - Even Keel

In this mode the chances of making a sale are low because the

buyer does not perceive the essential discrepancy between

current reality and desired results. There is no receptivity to

change.

Your proposal may even be seen as a threat to a stablesituation. Only three things will change this:

The buyer sees growth or trouble coming.

Use pressure from another buying influence.

The Economic Buyer normally spots trouble faster.

You demonstrate a discrepancy.

Show that reality is not as satisfactory as they believe and that they

have settled far short of what they can achieve.


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Fourth Response Mode -

Overconfident The perceived discrepancy works against a sale.

Things may be too good to be true:

They are misunderstanding the situation, out of ignorance

or wishful thinking. Their goals are set so low that the poor performance is not

obvious.

Overconfidence always cycles into trouble.

Messenger may get killed.

Wait for reality.


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A Mixed Field of Buyers

It is possible to sell a proposal to a mixed field of Buyers, but

only if you employ the basic principles of Response Modes

The starting point for approaching each individual buyer is to

learn that Buyers current perception of the business situation

and his or her perceived discrepancy between reality and

results.

Each Buyer base must be covered by a person who accepts

this as the starting point, and who is best qualified to

approach that individual Buyer.

Always use Leverage from Strength to bring about a match of

modes from a mixed field of responses.


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Actions

Identify each players Response Modes.

Rate them on how you think they feel right

now about the proposal, from Enthusiastic

Advocate (+5), Strongly Supportive (+4),

Supportive (+3), Interested (+2), Will Go Along

(+1), Probably Will Not Resist (-1),

Uninterested (-2), Mildly Negative (-3), Strongfor Competition (-4), Antagonistic Anti-

Sponsor (-5).

Test these ratings


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Updated table

Economic - releases $

Coach - guides me on this sale

User - Judges Impact on Job

Technical - Screens Out

Dan Farley G +2

Gary Steinberg T -4

Will Johnson OC -4

Harry Barnes EK -2

Andy Kelly T +4

Doris Green G +3

Harry Barnes EK -2

Doris Green G +3


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The Importance of Winning

Mutual satisfaction is the foundation of long term success.

The good sales representative wants:

the order

satisfied customers

long term relationships repeat business

strong referrals

You cannot manage a sale so that any given buying company wins. You

can, and must, manage each sales objective so that every one of the

Buying Influences for that objective sees a personal win in the sale. The Sales Representative should strive to develop a joint venture in which

their Buying Influences are seen not as threats, but as members of their

own team.


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Win-Results

The reason people really buy is only indirectly related to the product or

service performance. You cant just meet their business needs. You have

to serve their individual subjective needs as well.

A RESULT is the impact your product or service can have on the Buyers

business process.

A Win is a personal gain that satisfies an individual Buyers perceived self

interest.

A Win-Result is a Result that gives one of your individuals a personal Win.

A Result must take place before a Buyer will perceive a Win; its a

precondition to a Win. Companies get Results; only people get Wins.


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Results / Wins

Results

Impact of a product on a business

process

Improve a good process

Fix something that has gone wrong

Tangible, measurable, quantifiable Make sure that it is a desired result

Corporate They are shared by various people in the

buying organization

Wins

Fulfillment of promise made to

oneself

Win is always in context of specific cultural

environment

may change as environment changes

intangible, not measurable, not

quantifiable

subjective, along lines of samples which

follow

Personal

Results may benefit many people, but notall in the same way. A win is personal.


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Sample Wins

Remain in power

Achieve control over others

Get more leisure

Remain in a given location

Increase skill development

Increase personal productivity Be an instrument of change

Be looked upon as a problem solver

Contribute to the organization

Increase mental stimulation

Gain recognition

Increase growth potential

Improve social status.

Have more time with family

Get more power

Increase self-esteem

Be more flexible

Feel more secure or safe

Put in a quality performance Be seen as a leader

Offer uniqueness

Pay a debt

Increase responsibility and authority

Pursue a lifestyle

Get more freedom


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Determining Your Buyers Wins

You can inferyour individual Buyers Wins,

wither from the Results they are likely to want

or from what you know about their attitudes

and lifestyles.

You can askthem directly what is in the sale

for them.

You can get Coaching.

l h d f


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Results that produce Wins for

Buyer Groups Economic

low cost of ownership

good budget fit

ROI

financial responsibility

increased productivity

profitability

smooth out cash flow

flexibility

Technical specs best and product meets them

delivery timely

best technical solution

discounts / low bids / price

reliability

User reliability

increased efficiency

upgrade skills

fulfill performance requirements

best problem solution

do job better / faster / easier

versatility

super-service

easy to learn and use

Coach recognition

visibility

get strokes

make contribution

be seen as problem-solver


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Infer from the environment

If the office is full of golf trophies and community

plaques, there is a strong need for achievement and

recognition

If there are pictures of children on the wall, securityor family approval might be the key.

If appointments are always on time then efficiency

may be the key.

The better you know the Buyers lifestyles and

attitudes, the better you will be able to infer their

Wins.


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Actions - 1

Identify Results for your business

use the examples as a start and list for all types of buyer.

Test the Result

Is it measurable, tangible, and quantifiable?

Is it corporate - can it be shared by more than one Buying Influence?

Is is business related - does it positively affect a business process of

the customer?

Identify Results for your current sales objective

Focus on one or two key results for each buyer listed in column 1.

Buyer Results Wins


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Actions - 2

Test your individual Buyers results

What business process of the Buyer does this

Result address?

How does the Result improve or fix that process?

How does the Result relate to the specific

business concerns of the Buyers category of

Buying Influence? Identify your Buyers wins

How will this Buyer win if my product or service

delivers this result?


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Win-Results Chart


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Win-Results Chart

Buyers Results Wins

Dan Farley (EB) Productivity increase Red flag

Dorris Green (UB) Less overtime; performance Maintain feeling of departmental control

Harry Barnes (UB, TB) Continued reliability Security

Gary Steinberg (TB) Move inventory faster Red Flag

Will Johnson (TB) Easy credit arrangements Enhance reputation withmanagement


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Actions - 3

Determine your present Win-Win status

Have I delivered or can I deliver the Results that

each Buyer needs to Win?

Does every buyer have confidence that I can dothis? In other words, do they all know I am

playing Win-Win with them?

Revise your Alternate Positions list


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Getting to the Economic Buyer

Frequent problems are:

The economic buyer cannot be identified

Others are blocking access to the economic

buyer

You are uncomfortable talking to the

economic buyer


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Identification

The dollar amount of the sale

Business conditions

Experience with you and your firm

Experience with you and your product or service

Potential Organizational Impact

the buyer is likely to be sale specific the buyer is often likely to be highly placed

the buyer is generally paid for his ability to see into

the future


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When you are blocked

Show the blocker how to win

not just be letting you see the economic buyer,

but by taking you there personally

show that you have something of value to theEconomic buyer

the single most valuable contribution you can

bring is knowledge show how you can increase his predictive

capability

Getting around a block


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Contacting the Economic Buyer

You have a valid reason for contacting an EconomicBuyer when you can present knowledge that will makea contribution to the way he or she is doing business.

Knowledge that increases their ability to predict thefuture, and thus decreases their perceived risk anduncertainty, is held in the highest regard.


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Actions

Who is the economic buyer?

How well is the economic buyer covered?

How receptive is he to my proposal?

Am I playing win win?

Do I have a valid business reason for seeing him. What do I need to FIND OUT?

What information do I need to get from the economic buyer to help me better address the required Results and

personal Wins.

What do I want the Economic Buyer to KNOW? What contribution can I make to his long range planning process?

What do I want him to DO?

How will that contribution provide results that will have a positive impact on both the buying business and mine?

What do I want him to FEEL?

How will the Results translate into a personal Win that he will attribute to me?


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Your Coach - Actions

Do you have credibility with your Coach?

How has he won with me in the past?

If he has not won with me, has he at least won with my company?

Am I certain that he trusts me?

Does he have credibility with the buying organization?

Does he want you to make the sale?

How is the coachs self interest served by my making this sale?

Assess your current position

Revise your alternative positions list

Strategic Selling Review 19991011

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