大客户销售谋略(ppt)
大客户销售谋略
2003.10-11-10-12
Objective of Workshop
Understand Characteristics of Major Account Selling Strategies in Whole Lifecycle, thus to
Shorten bid-to-win ratio
Shorten selling cycles
Minimize discounts and negotiated concessions
Establish clear, unique business value with the customers
Reduce selling costs through more effective sales strategies
Increase sales per employee
- Develop expected relationship with the customers. Eg. Strategic Partnership etc.

Agenda
Day 1
How the Customer Make Decisions
SPIN Question Strategy
Account Entry Strategy
Understand Your Customer & Their Business
How to Make Your Customers Need You
Day 2
Influence the customer’s choice
Differentiation & Vulnerability
Overcoming Final Fears
Sales Negotiation
How to Ensure Continued Success
客户是如何做决策的
How Customer Make Decisions
The Research Base
The Customer Decision Process
Account Strategy in the Recognition of Needs Phase
Account Strategy in the Evaluation of Options Phase
Account Strategy in the Resolution of Concerns Phase
Account Strategy in the Implementation Phase
Summary

Overview of Major Account Sales Strategy
Sales Strategy should be about customers and how to influence them.
Understanding and Well Prepared are mandatory to form a effective sales strategy
Customer Behavior goes through three distinct phases in making a major purchasing decisions
Recognition of Needs
Evaluation of Options
Resolution of Concerns
A fourth phase, follow-up in implementation phases, if it is well handled, can generate significant additional sales opportunities.
Each of four phases required a different set of strategies and skills.
What is Sales Strategy & What is Major Account
Sales Strategy
A way of thinking and directing your actions to effectively influence customer purchasing decisions.
Focus on Understanding Customer Behavior
Not Procedure or technique
Major Accounts
20/80 rules
New Customers
Potential Customers

Exercise: A Typical ERP Deal Lifecycles
What is typical ERP Deal Selling Cycles
Customer Decision Process
Who is Major Account of ERP S/W
Traditional Mfg
Others
Customer Decision Process Research Base
A Typical Purchase Decision
New Purchase Request Of Procurement Department
What A Procurement Manager Say:
Problem, Dissatisfaction, can not solve with existing equipment or supplies
Spec.; Objective; Must & Wants; Vendor Selection
If decision is big; carefully resolve all concern.


Exercise 1. Procurement Process
Read Appendix A: Procurement Process
Do you know it before, and how you know which phase you are in while you bid, and your strategies on each phase.

10 minutes
Account Strategy in the Recognition of Needs Phase
The Most Effective Selling Strategy During the Phase:
To uncover dissatisfaction in the account and to develop that dissatisfaction until it reaches the critical mass.
When dissatisfaction reaches a sufficient level of intensity or urgency, the account makes a decision to change.
Success sales asks a lot of questions during sales calls than do their less successful colleagues

Questioning Skills (SPIN)
Account Strategy in the Evaluation of Options Phase
The Most Effective Selling Strategy During the Phase:
To Centralize On Understanding, Influencing, and Responding to Customer Decision Criteria.
Differentiate your solution with your competitors is one of your effective selling strategy.
Common Faults during the period is failure to recognize that a shift has taken place in customer concerns. Not try to uncover customer guideline, or criteria, for making the decision.
Account Strategy in the Resolution of Concerns Phase
The Most Effective Sales Strategy During the Phase
To uncover and help resolve perceived risk
Last minutes fears and concerns arises that can block the decision or cause customers to re-open discussions with competitors.
A successful sales normally works to uncover and resolve issues that are troubling the customer, even if these issues are uncomfortable and difficult to discuss.
Negotiation is key selling tool of the phase.
Account Strategy in the Implementation Phase
Most Effective Strategy of the Phase
Follow-up after post implementation leads to continued success.
Very Few major sales stop when the customer signs the contract.

How to build up long term relationship with the customers?

Think About How to Build Up Strategic Relationship with the Customer?
Customer Decision Phases
强大的销售工具 ——提问策略
SPIN Questioning
Situation Questions
Questions that gather data and background facts.
E.g: How many people do you employ? What’s your present ERP system?
Problem Questions
Questions that uncover problems, difficulties and dissatisfactions.
E.g: Are you happy with existing ERP system? Does the existing ERP system has reliability problems.?
Implication Questions
Questions that explore the consequences or implications of customer’s problem
E.g. Does this problem leads to increased costs
As a result of the problem, do we get more down time.
Need-payoff Questions
Questions that explore the value or usefulness of solving a problem
Eg. Why is it so important to you….?
Would it be useful if …?
Implied Needs, Explicit Needs, Benefit, Advantage, Features
Implied Needs
Statement by the customers about problems, difficulties or dissatisfactions with the existing situation.
Eg. I always get behind schedule. We have been lost a lot of money in this area.
Explicit Needs
Statements of a customer’s wants or intentions. Eg. What I need is… I want some to …
Benefits
Statements which show how a product, a product feature or advantage meet explicit need which has been stated by the customer.
Eg. You have said you need fast turnaround, we can give it to you by the end of the month
Advantage
Statement showing how a product, product feature can be used or help the customer. Most advantages can be expressed in the form : because of … feature, you can ..”
Eg. Because of our ERP product finance module, you can get …. Our new model can save additional 8% material cost.
Features
Characteristics of a product or services
Eg. This unit cost $400. This is a closed loop feedback system.
SPIN Form
Normal Sales Call Planning Form
SPIN Questioning Strategy
强大的销售工具 理解你的客户
Account Fundamental
Ownership
Location
Corporation Actions
Financial Performance
Future Prospects
Timing
Organization
Top management cadre

Understanding Your Customers : Organisation Structure & Dynamics
Objectives
Purpose
Provide a framework for better understanding of the client’s organisation and how they make decisions
Output
Organisation Map & People Profiles
Benefits
Improve your view into the client’s organisation for improved relationship management
Develop relationships with the right people who can provide insight and direction
Key Components of Understanding Customer’s Organisation
Maslow’s Hierarchy of Needs
Character Profile
Maslow’s Hierarchy of Needs
Mapping Needs
Adaptability to Change - Technology Adoption Lifecycle
Adaptability to Change
Mapping Adaptability to Change
Decision Orientation
Mapping Decision Orientation
Level of Contact
Mapping Contact Coverage
Your Position
Mapping Our Position
Position in Organisation & Influence
Mapping The Informal Structure
Inner Circle and Political Structure
Trust & Influence Networks
Exercise III : Mapping The Organisation Take 20 minutes to analyse your customer.

强大的销售工具 ——了解你的客户的业务
Understanding Your Customer’s Business
Objectives
To build an overview awareness of customers business activities
To know how to track customer information
To know where to find customer information
To know how to use frameworks to keep track of customer’s business
Understanding Your Customer’s Business
Collect & Monitor Information from HP Sales
Track local news and media
Track your customer’s competition
Keep a diary of events
Read Customer’s Annual Business Report / Financial Statements
Go to : www.economist.com
Understanding Your Customer’s Business
Business Performance Factors :
Political, Economical, Social, Technical

Customer Business Structure Map :
Systems, Style, Staff, Strategy, Skills, Staff and Shared Vision
7s Model
Understanding Your Customer’s Business
Summary
Understand how to track customer’s business information
Use PEST & 7S model
Know where to get customer information
进入客户策略 ——追根溯源
Account Entry Strategy: Getting to Where It comes
The Purchase Channel
Where is the Decision Maker
Entry Strategy
The Three Focus Points of an Entry Strategy
The Focus of Receptivity
The Danger of Receptivity
Moving From Receptivity to Dissatisfaction
Identifying the Focus of Dissatisfaction
Influencing the Focus of Dissatisfaction
Moving to the Focus of Power
Selling at the Focus of Power
When the Focus of Power Changes
Developing Entry Strategies
The Purchasing Channel
Routine Account Penetration Channel
Sales -> Gate Keeper -> Influencer -> Decision Maker
Hardest way to allocate purchase channel for a new innovative products and services in Selling Cycles
E.G. Mfg. Barcode Printing Outsourcing Solution
Success sales normally find a focus (sponsor) within account helping him move towards a point from which they should begin developing needs.
3 focus model for successful people to find sponsors
The focus on receptivity
The focus on dissatisfaction
The focus on power



Where is decision maker
Exercise
Who is the decision maker for ERP project bid.
CEO
CFO
CTO
or others.

What is your passing experience to connect to decision maker?
Entry Strategies
Successful people tended to seek a sponsor
Sponsor
An Individual within the account who helped them, advised them, and if necessary, represented them in place where they could not gain access

Not only individual, But more a particular function or area of an account as sponsor. Focus
Focus
A “ Focus” Within Account – a person, a committee or a department who would help them move toward a point from which they could begin developing needs
The Three Focus Points of An Entry Strategy (I)
Sales People normally could find sponsors from 3 focus points:
The focus of receptivity: the point in an account where there were receptive people who were prepared to listen sympathetically
The focus of dissatisfaction: the point in an account where there were people unhappy with the present system or supplier.
The focus of power: the elusive point in an account where there were people able to make decision.
Especially for account, no purchasing channel existed.
Entry Strategy Model
The Focus of Receptivity
Easiest starting point for your account penetration
The reason why they want to listen
Objective of sales to focus on receptivity
Find out information
Gain access to focus of dissatisfaction



Danger of Focus of Receptivity
Do not misinterpreted the interest as progress
Remember your strategic objective is “ Information” & “ Access”
Danger of distraction
Danger of misinterpretation
Danger of presentation
Moving From Receptivity to Dissatisfaction
Objective of Focus on Receptivity
Gain access to person or function who probably not satisfied
Use SPIN Situational question
E.G Do you know anybody in your company who’s experiencing problems in this areas…
Less successful sales concentrated on impressing the receptive person.
Focus of Receptivity, Focus of Dissatisfaction and Focus of Power may be same person.
Identify the Focus of Dissatisfaction
Mindset to set your product in problem-solving terms to allocate focus of dissatisfaction.
SPIN Questioning Skills
Influence the focus of dissatisfaction
The objective of influence the focus of dissatisfaction
Uncover dissatisfaction and develop it to a point where the customer wants to take action
Use the dissatisfaction you’ve developed to gain access to the decision maker, either directly or by using your sponsor to sell on your behalf.

SPIN Call Planning Form
Moving to the Focus of Power
Identify the focus of Power
Direct or indirect interface with focus of Power
Selling at the Focus of Power
What’s typical characteristics of executive or high level manager
Normally busy
Objective oriented, value driven
Confidence

Danger of selling at the focus of power:
Failure to do homework
Failure to take control
Premature meeting
Inappropriate expectations

“Well Prepared & Understanding your customer is KEY”
Experience Sharing: How to make an appointment with VIP
Set appointment with decision maker is difficult
How to get the face to face opportunities
Homework, dollarize the reason why the customer should do the business with you.
Send a four or five sentence letter to the customer detailing the dollarized bebefit of the product and promising a follow-up phone call.
The objective of the letter is to let the customer take the phone call
When you have the customer on the phone, suggest a meeting, then ask “is Tuesday at three OK” “ How about next Friday at three” “OK, great, the meeting will take about twenty minutes. See you at three, thanks”
This is typical a killer sales question because it leads to that precious appointment over 90 percent of the time.

Develop Your Account Entry Strategy
First, Decide who is likely to be most receptive to product or services like yours.
Approach receptivity and ask for meeting and ease receptivity fears on hard selling.
Uncover information during the meeting
Locate the focus of dissatisfaction, setup the meeting, prepare a question list which you’ll ask to uncover potential dissatisfaction
Conduct several meeting with your contact at the focus of dissatisfaction. You’ll need to meet other individuals in order to justify involving people at the focus of power. The objective of the phase is to develop satisfaction
Develop a sponsor at the focus of dissatisfaction either introduce you or represent you at the focus of power.
Case Study: How to penetrate to a medical account to sell you finance software
Assume you are sales rep. in a finance s/w company, a Shanghai Stock Exchange listed company opened a new factory in your territory in 2002, you get information that the factory will have a new project to standardize its finance operation, you company are one of 2 top players in the area.
Develop you account penetration strategies. The objective is to gain bid right for the project.
如何让你的客户需要你 认识需求阶段策略
Agenda
Objectives for the Recognitions of Needs Phase
Uncovering Dissatisfaction
Setting Your Objectives
Planning Your Questions
Asking Situation Questions
Asking Problem Questions
How Problems Are Developed
Selling to the Focus of Dissatisfaction
Gaining Access to Decision Makers
Selling Indirectly to Decision Makers
Prepare Your Sponsor
Need payoff Questions
The SPIN Questioning Strategy
认识需求
Recognition of Needs
Objectives for the Recognition of Needs Phase
Uncover dissatisfaction
- Because without dissatisfaction there is no reason for the account to buy.
Develop dissatisfaction
- The dissatisfaction you uncover will increase to a level of severity that causes the account to make a decision to act.
Selective channel dissatisfaction
- The people in the account selectively feel dissatisfaction in those areas where your products and services provide them with the best solutions
Uncover Dissatisfaction
How to uncover dissatisfaction?
Ask Questions to customer.
Pre-step of asking question:
What problem your product can solve customer’s problem. Not only technical feature of your product, think about business part of your product can help the customer.
Set your call objectives
Build up relationship with specific focus people
Collect the specific information which can help you moving forward.
Objective should be specific and moving forward
Plan Your Questions
Two types of Questions
Situation Question
Questions that collect effects about the account and individual within it. Typical Question: Do you own the system or lease it?
Problem Question
Questions that probe for problems, difficulties, or dissatisfaction.
Typical Question: What part of operation give you the most difficulty.

From Psychology point, the customer get more motivated when you ask problem questions.
Planning more problem questions is more effective way to fulfill your call objectives.
Asking Situation Question
Do your homework
Annual Report, Media to get basic information
Use the focus of receptivity
Ask situation question of people at focus of receptivity, thus not waste time in asking basic fact-finding questions.
Spread the questions
Do not try to ask all your situational question one time
Earn the right to ask situation question
The motivation of customer answering your situation question is you can help customer to solve the problem. So make it clear your questions are motivated by an interest in the buyer’s problems and out of a desire to help solve them
Asking Problem Questions
Small sale situation – the sale can be finished within a single call. Strategic Objective: To uncover the problem with problem questioning skills
Large sales situation – the sale are more complicated.
Strategic Objective: To develop the problems after you uncover them.
How Problem Are Developed
After you uncover dissatisfaction with situation question and problem question, before you show where you product can solve or alleviate the problem, you need to develop the problem.

The tool is implication question: Implication question:
Questions that explore the consequences or implications of customer’s problem
E.g. Does this problem leads to increased costs
As a result of the problem, do we get more down time.

Selling to the Focus of Dissatisfaction
Uncover the problem and develop the problem to the points where the customer want to take action Implication question is strong tool
Gain access to the decision maker.
Direct
Indirect
Selling Indirect to the Decision Maker (I) Prepare Your Sponsor
If you can not get direct selling opportunity to the decision maker, you should use your sponsor at focus of dissatisfaction to sell to the decision maker on your behalf.
Prepare your sponsor
What will go wrong for your sponsor facing decision maker
People will not remember all they’ve been told.
People will never give somebody else message as convincingly as they would give their own

Rehearsal & Their Own Language
Selling Indirect to the Decision Maker (II)) Need-Payoff Question
Effective way to rehearsal of your sponsor while your sponsor facing decision maker on your behalf. Need-Payoff Question!!
Questions that explore the value or usefulness of solving a problem Eg. Why is it so important to you….? Would it be useful if …?


SPIN Questioning Strategy
Role Play: Prepare Your Sponsor In Front of Decision Maker
Assume you get to focus of dissatisfaction, the Finance Admin. Manager, there will have a briefing meeting to CEO tomorrow afternoon in order to decided two invited companies of the coming closed bid.
Your company are one of leading 3 finance s/w companies in the market.
You set appointment with your sponsor this evening.
Now you are thinking how to prepare your sponsor, plan the evening appointment. Assume evening appointment is coming:
Do a role play, one is sales rep. of the finance s/w company, one is the Finance Admin. Manager.
The Objective of the role play is to ensure your sponsor is comfortable to present you in front of CEO and add you in the bidder list.

15minuts

影响客户的选择 方案评估阶段的策略
Agenda
Recognizing the Evaluation of Options Phase
Objectives for the Evaluation of Option Phase
How People Make Choices
Identify Differentiation
Establish Relation Importance of Differentiators
Judging Alternative Using Differentiators
How Decision Criteria Influence Sales Success
Some Points About Decision Criteria
Influencing Decision Criteria
Developing criteria from needs uncovered earlier in the sale
Reinforcing Crucial Decision Criteria You Can Meet
Building up Incidental Criteria Where You Are Strong
Reducing the Importance of Crucial Decision Criteria
Overtaking
Redefining
Trading-off
Creating Alternative Solutions
The Psychology of Handling Crucial Decision Criteria

Evaluation of Options
Recognizing the Evaluation of Options Phase
When we can determine the customer goes to Evaluation of Options phase
Published specification
RFP is broad
RFP is very detail
Purchasing Committee

Vendor Presentation
Objectives for the Evaluation of Options Phase
Uncover decision criteria
Find out which factors or criteria the customer intends to use to make choice between vendors
Influence decision criteria
Introduce criteria or factors which should be important in making the decision but which the customer may not have considered.
Maximize perceived fit with decision criteria.
Demonstrate to the customer that your product or service adequately fits those criteria which will be used to make the decision

How People Make Choices
The customer vendor selection process will go through following 3 clear stages:
Identifying differentiation
Establish the relative importance of differentiators
Judging alternative using differentiators
Identifying Differentiation
Identifying Differentiators
Differentiator is criteria the customer used to judge between alternatives
A effective differentiator consists of 2 elements

It allows the customer to differentiate
It relates in some way to the customer’s needs.

For Digital Camera
Differentiator: Price, Capacity, Capability, Quality…

For ERP software
What is buyer’s vendor selection differentiators?

Establishing Relative Importance of Differentiators
How Decision Criteria Influence Sales Success (I)
Decision Criteria for A Typical Successful Sale
Customer’s Decision Criteria How customer Assessed the Successful Product
How Decision Criteria Influence Sales Success (II)
Decision Criteria for A Typical Unsuccessful Sale
Customer’s Decision Criteria How customer Assessed the Unsuccessful Product
How Decision Criteria Influence Sales Success (III)
Skillful Sales Rep. influence decision criteria to bring about a better fit with their products.
Customer judgment sequence may revisit the previous steps when the customer meet difficulties at any step.
Identify differentiators
Establish relative importance of differentiators
Judge alternatives using differentiators.
Decision Criteria Situation
The account may set criteria before needs are fully established
Customer may have preexisting criteria
By developing needs you influence decision criteria
Decision criteria live on after the sales.
Influence Decision Criteria
Develop Criteria from needs uncovered earlier in the sales
Reinforce crucial decision criteria you can meet
Build up incidental criteria you are strong
Reduce the importance of the crucial decision criteria you can not meet.

Reduce the Importance of Crucial Decision Criteria (I)
It is hard to change a crucial criterion?
The customer has thought about any issue which is perceived as crucial. The people does not easily change opinions which they’ve thought about.
The issue is important to the customer The people is most resistant to change in areas they see as important.
Four ways to reduce importance of crucial decision criteria
Overtaking
Redefining
Trade-off
Creating alternative solutions
Reduce Crucial Decision Criteria (I) Overtake
To a crucial criterion (eg. Price) you can not meet is to take a criterion which can be met – preferably one which is already quite important to the customer – and increase its importance so that it overtakes price and replace it as more important criterion
Reduce Crucial Decision Criteria (II) Redefine
When the customers tell you that a criterion is “important”, they are letting you know that it matters to them – and it is hard to change. So if you’re unable to meet the criterion well, do not make the mistake of trying to persuade a customer that it is unimportant.
Attempts to talk people out of crucial decision criteria usually fail and often only make the criterion even stronger.
Powerful tool - Redefine
Reduce Crucial Decision Criteria (II) Trade Off & Creating Alternative Solutions
Trading off is a useful method for handling any decision criteria which can be met only if the customer is preparing to make sacrifices in other important areas. Eg. special for pricing negotiation.
Creating alternative solutions is final way to handle the criterion you can not meet, it need imagination and creativity.

Reduce Crucial Decision Criteria (IV) Psychology of Four Methods
差异化以及薄弱环节 更多的关于竞争性战略
Agenda
The Concept of Differentiation
What’s Unique about Micro-Differentiation
“ Hard” and “Soft” Differentiators
Competitive Strategy with “Hard” Differentiators
Speeding Up the Decision Cycle
Turning “Soft” Differentiators into “Hard”
The Expert Judge
Blurring “Hard” Differentiators
Using Differentiation in the Competitive Sale
Vulnerability
Vulnerability Analysis
What’s a Competitor
Strategies for Countering Vulnerability
Strategy 1: Change Decision Criteria
Strategy 2: Increase Your Strength
Strategy 3: Diminish Your Competition
Two Successful Strategies for Talking about Competition
Raising Weaknesses Indirectly
Exposing Generic Weakness, not specific Ones
Competitive Differentiation
The objective of competitive differentiation:
To make your product distinct in the customer’s mind from other available alternatives.

Marco Differentiation (Marketing Term Differentiation)
Likely to have the most impact on the majority of the buying population of the target market.

Individual Variations in decision criteria is common for all sales case, the skillful sales need to differentiate their products effectively during the evaluation of option phase of sale.
Hard and Soft Differentiators
Hard Differentiator: the differentiator can be objectively measured by the customer. Like price, size, weight, speed, compatibility or delivery.
Soft Differentiator: the differentiator are relied on judgment or those can not be objectively measured.
Quality, responsiveness, or standard of services, ethics, strategic alliance, philosophy alignment etc.

Competitive selling will keen to hard differentiator, but soft differentiators are equally or more important criteria than the “ hard” if the seller will need considerable skills and careful strategic planning.

In large deal, soft differentiator is one of important differentiator we need focus on.


Competitive Strategy with “ Hard” Differentiators
The ideal selling position is when your product has clear superiority in terms of “ hard” differentiators. As top competitor, you need
Speed up the decision cycle
Turn “ soft” differentiation into “hard”
When some “hard” differentiator, you are not good at, you can take it and soften its outline, make it difficult for the customer to use as objective standard of judgment.
Eg. Print speed, continuous speed or speed for a one off requirement.
Using Differentiators in the Competitive Sales
The most effective way in competitive selling is to harden your soft differentiators, the way to harden your soft differentiator are
Define the differentiator
Have the customers to define differentiator in their own words
Refine the differentiator
Adding to customer definition, to be effective, the refining must build on the customer own attempt to define the “soft” differnetiator.
Re-position the differentiator
For the case, the customer judgment is only for hard differentiator, you need to consider re-position your soft differentiator to make it hard.

薄弱环节
Vulnerability is a risk which your competitor is strong in the area which is important to your customer, and you are weak in the area.
Vulnerability analysis
Draw a customer viewed decision criteria and his ranking on you and your strong competitor. The obvious V is most vulnerability point.
Understand Competitior
Who is our competitor, what is normal way to compete them in the market
Are there any alternative solutions to the problem?
Are there any alternative use of the budget?

3 strategies to countering Vulnerability
Change decision criteria
Increase your strength
Diminish your competition
Change Decision Criteria
Overtaking
Build up a lesser criterion so that it becomes more important than the crucial criterion you’re trying to reduce.
Trading Off
Balance the criterion against limitation, penalties, or disadvantages which would come from meeting the crucial criterion.
Redefining
Alter the way in which the customer defines the criterion so that it becomes easier for you to meet it.
Creating alternative solutions
Produce new and creative alternative way to meet crucial criterion.
Increase Your Strength
To increase customer’s perception on your strength
Correct any misunderstanding
Negotiate
Diminish Your Competitor
The most dangerous and most difficult strategy of reducing your vulnerability is to attach the perceived strength of your competitor.
You have risk of losing your credibility, and other risks are
Lower your own image
Open up areas you can not control
Build the competitor importance.

Be Careful to use the strategies
Two Successful Way For Talking About Competition
Raise weaknesses indirectly
Like, when the customer ask your comments on competitor pricing, you answer will be our product is more economical to fit the market need. The answer psychology is different.
Expose Generic weakness, not specific one.
When the customer ask discussion on competitor’s specific potential weak area, the better way is to concentrate on the generic reason of the weakness, not on specific weakness itself.
Summary
Differentiation
Hard differentiator
Soft differentiator
Competitive selling with differentiator
Vulnerability & Vulnerability Analysis
Strategies for countering vulnerability
Two successful strategies for talking about competition.
战胜最终的恐惧 ——解决客户忧虑阶段的策略
Agenda
Objectives for the Resolution of Concerns Phase
Resolving Concerns in the larger Sales
Risk in the Resolution of Concerns Phase
Consequences: The Risks of Going Ahead
What Causes Consequence Issues
Recognition: The Essential First Step
Some Early Warning Signals
Detecting Consequences Face-to-Face
Signs Which Suggest Consequences
Discrepancies: The Common Factor
How Do You Handle Consequences
Some Basic Principles
The Three Deadly Sins of Handling Consequences
Minimizing
Prescribing
Pressuring
Handling Consequence Issues Successfully
Resolution of Concerns
Resolving Concerns in the Larger Sale
Bigger Decisions
More People
More Competition
Longer Selling Cycle
More Implementation Issues

Risk of buyer: not only for purchase order, but also his career or other more important consequence.
Consequnces… The Risks going ahead.

Exercise
Review the large sale you have participated, list 3~5 normal consequences which the buyer or decision maker normal consider before signing the contract, and the way you help the customer resolve it.

5 minutes.
What Causes Consequence Issues (I)
What Causes Consequence Issues (II) How the value equation changes
Recognition – The Essential First Step
Consequence is difficult to recognize, because
The consequences are often under the surface.
When they do surface, they are often in the disguised form of a price concern.
Some Early Warning Signals
Large Decisions
High Visibility Decisions
Better Known Competitors
Competitor’s account
Different Technology
Detect consequence face to face
Signs which suggest consequences
Resurface of previously resolved issues
Unrealistic price concern
Unjustified postponements.
Unwilling to meet
Withhold of Information

How to Handle Consequences
Do not ignore Consequences
Build up relationship first
Only the customer can resolve a consequence - you can not.
The Three Deadly Sins of Handling Consequences
Minimizing
Making light of a customer’s concern by denying its importance or by offering baseless reassurance
Minimizing does not solve the consequences.
Minimizing drives the consequences underground.
Larger consequences remain hidden
Prescribing
Pushing the seller’s own ideas, solutions and recommendations for how the consequence should be solved.
Pressuring
Pushing the customer for information or decisions.
Handling Consequences Issues Successfully
Consequences Issues are solved by discussion and confidence building
Enhance communication to have the customer resolve its consequences. Executive Coverage, Executive Visit
Due Diligence to prove your capability.
Executive visit to enhance the commitment.
Exercise
You are selling a finance software to a company, while your selling, the responsible customer project manager, the finance operation manager told you that the customer would like to do further investigation as they are not sure return of investment.
Further discussion, you understand the finance operation manger is near retired, he is afraid the consequence of project failure.
Customer formed a project office as well, project sponsor is CEO, and there are several project team members from function department, like rep. from IT department, rep. from account department.
CEO has strong desire to implement finance software to improve the management of company finance, and reduce the cost.
You have a successful similar reference in other province, and a development team in place.
What’s your strategies to solve consequence.
销售谈判 —— 如何做出让步并达成一致
Sales Negotiation
Negotiation Is not Selling
Selling is purely persuasion, you do not change any terms of standard product.
Negotiation is you have ability to vary terms in order to get an agreement.
Like Price, Delivery, or Contract Terms.

Do not go to the trap: Negotiation Too Soon

Key Rule: Negotiate Late !!!
When not to negotiate
Do not negotiate early in the selling cycle
Negotiation should never be a substitute for selling
Do not try to negotiate you way out of consequence issues or nonspecific concerns.
Final fears will not go away with your negotiation
Negotiation: A costly way to resolve consequences.
Showstoppers
Barriers to moving forward which can not be overcome by selling skills alone
E.g. Exclusive Support of Your Supplier; USA embargo listed countries, license etc..
Strategic advice to deal with showstoppers.
To verify the barrier is genuinely a showstopper.
Deal with showstoppers relatively speedily.

Showstoppers are the only things you should negotiate during the Recognition of Need or the Evaluation of Options Phases.
Right Time for Negotiation
No consequence, no showstopper.
Questions asking yourself before negotiation
Do I have authority to very terms?

Do not give the customer signs you can change everything.?


Negotiation
An attempt by two or more parties to reach an agreement when the following 3 conditions are present
Both parties can very the terms
The resource is scarce
Agreement and conflict exist simultaneously

The Overlapping Circles of Sales Negotiation
Short-term versus Long Term
Some negotiation is around maximize short term advantage over a person you’ll never see again.
Like Long Distance Bus; Train Station or Airport
This is a purely rare case
Most of negotiation is around developing a solid basis for future business, long term.
Five Useful Ways in Negotiation
Focus on areas of maximum leverage
Establish and Narrow Range
Plan and use questions
Separate understanding from agreement
Rigorously test for misunderstanding

Planned Concession !!!
Focus on areas of maximum leverage
Understand decision criteria will led sales rep. to understand which concession areas will offer maximum leverage.
Always asking question that “ how important will concession be to this customer?”

Besides price, quality, delivery, customer support, training will be other areas of maximum leverage.

Think about 5 minutes, give a list of decision criteria of customer, priority them, and plan your concession for your coming negotiation.
Establish and Narrow Ranges
Set a range, gradually narrow the range, until both parties can agree on a fixed point with the customer.
Why, Psychology, Logic way of concession
Set your upper and lower limits
Refine your upper limits in terms of customer expectations & competitive strength
The customer may walk away from the negotiation and decide not to negotiate further because your position is unrelistic.
You may create a credibility gap.
If you initial point is too high, you may become vulnerable to competition
Refine your lower limits in the same way in order to arrive at realistic range
You may be giving away margins
If you lower limits is too low, you may create appetite for further concessions.
If the bottom’s too low, then you’ve no way to go.
Negotiate, starting at the top of your realisitic range and making concessions in increasing smaller increments until you reach agreement.
Start at or near the top of your range
Make concessions in small incremental
Signal the bottom by making increasing smaller concession.


Planning and Using Questions
Questions reveal needs
Question expose problems
Question reveal strategic information
Question control discussion
Questions are an alternative to disagreement
Questions give thinking time

SPIN Question Skills
Plan Your Question In Advance
Uncover Information
Reveal Underlying Needs
Expose Problem
Get agreement

Others for Negotiation
Separate understanding from agreement.
Rigorously testing for misunderstanding
Advice from skilled negotiators
Make sure that each key point in an agreement is clearly understood by both sides.
Any point to delicate to stand up to rigorous discussion during the negotiation will never survive the strain of implementation after it.
Ambiguities worsen like a cancer, an ambiguity during the negotiation grows into a misinterpretation afterward, thus in turn, grow into the most fatal of all negotiating illnesses –mistrust.
You can not undo history, once mistrust exists, there is lasting damage
When you are negotiating, never let misunderstanding or ambiguities go unchallenged.
Summary
Differentiate between selling and negotiating
Do not try to negotiate Consequence issues
Focus on areas of maximum leverage
Establish and narrow your negotiating range
Plan and Use Question
Separate understanding from agreement
Never allow misunderstanding to persist.
Agenda
Why the Difference Between Selling and Negotiation is Important
The Key Rule: Negotiate Late
Negotiation: A Costly Way to Resolve Consequences
Showstoppers
The Right Time for Negotiation
Everybody Negotiates
Defining Negotiation
Studies of Expert Negotiators
Short Term versus Long Term
Focusing on Areas of Maximum Leverage
Establishing and Narrowing Ranges
Set Your Upper and Lower Limit
Refine Your Upper Limits
Refine Your Lower Limits
Negotiate within Your Narrow Ranges
Planning and Using Questions
Plan Your Questions in Advance
Separating Understanding From Agreement
Rigorously Testing for Misunderstanding
Why Negotiations Go Sour
A Final Word on Negotiation
Tips: Eight Ways to Negotiate with the Customer You Can Not Lose
Increase your controllable factors, and clearly understand the lower limit you can accept. Price is not only factor, you can consider more on R&D, RFP, Shipment & Payment, the more option you have, the more possibility you can win.
When you are attacked, do not be angry, listen first, to have the customer clearly express his opinion, you will get more valuable information from the customer conversation.
To minimize mistaken, and assure the customer that you are listening, you should stop timely and summarize results both entities achieved.
Understand yourselves need, too much sympathy to customer will weak your problem solving importance and cause concession.
Have the customer focused on achieving success of negotiation, and ensure solution win/win
Put most difficult problem at last.
High start-up point, Slow concession, always keep high expectation and remember, each compromise creates different values.
Do not be emotional , do not confront with the customer, and point out the customer emotional response is not acceptable.
Role Play: Final S/W Development Contract Negotiation
如何确保持续的成功 ----实施与客户维护策略
Agenda
Objective of the Implementation Phase
Stages of Implementation
Motivation Dip
Account Development
Why is Account Management so important
Five simple strategies for account development


Implementation Phase
Stages of Implementation
Motivation Dip
Three Strategies to Overcome Motivation Dip
Start before the contract is signed
Involve the Customer
Put in effort early.
Why Account Management So Important Why Customers Leave?
“Relationships” are a critical part of retention and loyalty

15% of customers have left to find a better product
15% of customers have left to find a less expensive product
20% felt a lack of contact and individual attention
49% say contact from the vendors / supplier’s personnel was of poor quality

Nearly 70% leave because they do not like the human side of doing business with the previous company

Forum Corp. 1999
Five Simple Strategies for Account Mgmt
Strategy 1: Develop, do not maintain
Strategy 2: Document Good News
Strategy 3: Generate Leads and References
Strategy 4 : Reassess Your Understanding of Customer Needs
Strategy 5: Influence Future Decision Criteria

Account Management
Define Relationship Type
Understand your customer and their business
Value to customer
Value to your company
Competitive Analysis
Account Planning with account team
Executive Coverage

Summary of Workshop
Summary 狼性vs. Good Sales
Sense
A good sales should have strong sense like wolf, you need know where is big fish and how to fish big fish.
Plan
With detail plan, you can achieve your objectives with less resources, selling is one of most objective driven tasks.
Quick Response
Opportunity is not that much, A good sales will not miss the opportunity and he always quick response for a new opportunity , a customer request or a new change of environment.
Focus
Focus is key to win. Especially in tough selling period, facing critical people and impossible missions.
Synergy
To achieve stretch goal or fight big deal, a good sales does not only think about himself, but also he relies on the team, he directs whole team to achieve the goal. He is an actor and more important he is a director.

谢谢!

大客户销售谋略(ppt)