Selling and Closing by Results Rules OK Ltd

Results Rules OK...

Selling & Closing… Remove the risk, and get the sale... …how to build your conversion rate selling anything…

E Book # 7 David Holland MBA The Results Guy… June 2011

©Results Rules OK Ltd 2011

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Contents 1. Introduction 2. The Sales Process 3. About Results Rules OK â&#x20AC;&#x201C; the marketing bit...

ÂŠResults Rules OK Ltd 2011

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1. Introduction. It doesn’t matter what business you are in, you have to make the sale. The success of your business will depend on two key drivers; 1. The rate you attract customers. 2. Your rates of customer retention. This paper will be focussing on the rate you attract customers and specifically how to convert a prospects when face to face selling. Your success attracting customers to your business is determined by the following factors; 1. Lead generation – actually getting someone to phone you, or agree to a meeting. Otherwise known as Marketing. 2. Conversion – how many of the leads you get become customers. Otherwise known as Selling. I am going to assume, somewhat dangerously, that your marketing activity is elegant and effective. You have a targeted niche and by running several strategies you are able to generate all the leads you require – if this is not the case, see my book Your Business Rules OK for further details. So we will start the process of selling and closing from the point at which initial contact is made with a prospect. Final point, one of the biggest limitations that a business can have is the ability to effectively convert prospects to customers – once this has been systemised in a way that generates results, the business can grow. The main contributor to this unfortunate situation is that many people in business, including some sales people, either don’t understand selling or they don’t want to be perceived as a salesperson, so they avoid the activity of closing the deal at all costs. So before you go any further, make sure that you are comfortable with selling, asking for the money, closing the deal and shaking hands on an agreement at the end of a meeting – if a sales meeting doesn’t result in a sale then it was just a coffee and a chat. It wasn’t a sales meeting it was a tales meeting – a process of just telling stories to each other…

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2. The Sales Process Lesson 1 – people buy from people. They buy from people they like and they buy from people they are like. Simple… All your prospects will know that you intend to sell them something, don’t disappoint them, but rather, than selling use the “helping to buy” approach. Lesson 2 – people like to buy but they don’t like being sold to. So in order to be really effective at selling we have to get people to like us, and guide them to a decision that involves becoming a customer of ours rather than of one of our competitors. People will buy from you when they believe that the investment they make and the perceived risk associated with it are outweighed by their levels of trust and belief in the product or service you are presenting. Our job in sales is to establish a method where we overcome their Resistance. All buying decisions are predominantly based upon emotion – we buy from people we like, we buy from people we are like – people we “connect with”. Second, people buy in to a vision – a belief that the product or service that is being offered will bring them a benefit or move them towards an objective. These two emotional concepts combine to overcome the “logical” or risk adverse part of people’s nature – the process can be expressed as a formula;

Connection x Vision > Resistance Or CxV>R Connection & Vision – needs to be established over a period of time, it may take a few seconds if you are in retail, minutes, days or even months – it depends on the type of business you are in. This is a process of building rapport, developing understanding and constructing a relationship with the prospect before the actual sale is made. This is the courtship process, and it runs according to a prescribed process that we can manage and systemise in any business.

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Now, remember, all businesses are different and whilst the process will apply, the levels and timings may differ. If I am selling you a car for example then I will have a different method of managing the process than if I was selling you a house, seminar, insurance or anything you can think of – the process of selling in your business will be different…

The Buying Decision Process

The Chart above describes the 10 Stages involved with the conversion, or not, of a prospect into a customer. Red Line – level of Resistance, showing a value of 85 (the level of Resistance that we will need to overcome in order to convert this prospect into a customer) Blue Line – level of C x V, this is the only line we can control and we can influence the relative values through our sales process. Stage 1 – background ambivalence. Your prospect may never have heard of you, your product or your service, they don’t know you, they have no relationship with you and in fact may be slightly hostile or negative towards the mere prospect of being contacted, called or marketed to. So we start the process at a -10 position, the position of rest for most prospects before we get in contact.

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Stage 2 – the Marketing works. Our message whether it be a call, advert, email or offer has resulted in contact being made with us, a meeting set or a conversation booked. It may also simply reflect a change or situation for the prospect, and that is why your marketing activity should be continuous, even if it doesn’t get immediate results – some people pick up the phone after the first touch from your business, others will need twenty touches. The relationship has begun, you are now registered in their minds and they are aware of you. This will improve your relationship with them immediately so the value of C x V has increased to + 20. Stage 3 – a critical stage. Once the initial contact has been made the next stage of the process must start immediately. The short dwell on the chart of the blue line at the 20 level will not last unless we take control and engage the prospect in a process of building the relationship with you, your business and your products. The potential here is that if the process does not maintain momentum, the lead will go “cold” very quickly and the opportunity will disappear – this is the first moment of truth in your sales process, your speed of response. Stage 4 – the start of the relationship process. To be clear – stage 4 must follow stage 3 very quickly. The number of times I have seen huge marketing investment be wasted simply because enquiries are not followed up efficiently. Try this out with a company, go online and request information and see what happens – some are really good and have an automatic response, or someone responds within 24hrs. Whilst others you will never hear from – I do this a lot and I am amazed at the responses I get, or rather don’t... Better still, try it on your own website – mystery shop your own business and see what happens, or drop me a note and I will do it for you… Stage 5 – relationship building. There are a number of ways to build the relationship with your prospect, whether they are with you in the store, restaurant or showroom or whether they are remote and only in contact by email and telephone. The objective here is to build trust and rapport with them, allow them to get to know you and understand that your product or service is in their best interests. Note – as a professional, if you discover that your product or service is not actually in their best interests, don’t sell it to them, refer them to someone who can help them. We are not in the business of selling for the sake of selling; we are in the business of solving other peoples purchasing challenges.

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Different ways of developing the C x V depending on your situation; a. With you “in store” – don’t sell to them, ask them questions. Find out about them, their needs and wants – don’t sell them anything yet, they are not ready, you don’t know what you need to help them to buy yet, and they don’t know if they can trust you yet. b. Remote location – build the relationship with a series of “touches” which could include sending them information, questionnaires to complete, telephone calls to find out how you can help them etc. The whole process you use guides them towards the point at which the deal can be closed, the more elegant and professional your system is, the less “selling” you will have to do. Stage 6 – the Sales meeting, the part of the process where it is appropriate for the sale to be confirmed. We all know when this is coming, and can sense it as the ritual begins. Whilst the C x V score is higher now than it ever has been it has not yet overtaken the level of Resistance, so more work to be done; don’t close too soon. The meeting should be based upon you asking questions and seeking clarification, settling any doubts the prospect may have regarding you, your product or service and final details regarding specification, colour, delivery and price are agreed. When the prospect starts to ask you questions about your service or product at this stage – that is a buying signal, allow them to buy. You have now entered the Green Zone on the graph, for the first time the levels of C x V are higher than the Resistance and the deal can be closed. Stage 7 - Allow them to buy, close the deal, shake hands, sign the form – whatever you need to do that enables the deal to be confirmed. The Green Zone is your Closed Area and represents your second moment of truth – it maybe a fleeting moment or maybe a few minutes in duration – but if you miss it the opportunity is regularly lost, sometimes for good. When the sale is confirmed, you must have a next stage, a process that maintains their enthusiasm and heads off the buyer’s remorse. This is where, after you have left, there is nothing to keep the C x V levels up and as the values come down, they change their mind and call you to cancel the order. Stage 8 – if a sale is not closed, and for example the prospect says the classic “I’d like to think about it...” objection, the C x V value drops almost instantly. They will not be thinking about it, or you or your service and product. The truth is that you didn’t show them the value, you may have never even entered the Green Zone, and rather than tell you that they don’t trust you or your company, they will simply say “I’d like to think about it…” At stage 8 the situation can be salvaged by maintaining a relationship with the prospect, following up and keeping in touch. You will effectively return the process to stage 5 again and may well have the opportunity of selling to them again in the future. Remember, it was your process of selling that failed; the prospects process of resisting beat you. Your responsibility and your opportunity to put right, don’t blame your prospects for not seeing the value; it’s your job to demonstrate it to them in a manner that is compelling. ©Results Rules OK Ltd 2011

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You need to adapt your selling process to match the buying process of your prospects, not the other way round. Stage 9 – free fall. Without professional follow up the relationship value of the C x V continues to fall over a very short period. That is why follow up is critical, and the more quickly it is done the better. Stage 10 – mild bitterness. If the process is handled really badly, the prospect will have the levels of C x V continue to drop to a level lower than that of the background ambivalence they had before they had ever heard of you. At a level of – 25, all your marketing and sales activity has produced is a person who dislikes you more than they did a month ago. Well done… Remember in business as in life, once a relationship comes to an end, there is the possibility that the parties will become more adversarial at the end than they were before it began. See notes on divorce settlement cases for evidence… Finally – remember that at any time in the process your Prospect may decide to buy from you, and your job is to allow them to. Don’t go through the whole process just because it your system – it’s OK to take the cheque early…

For help with designing your Sales process, buy David’s book, Your Business Rules OK by clicking HERE, download tools and templates from our website, come along to one of our events, or email David at davidholland@resultsrulesok.com

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3. About Results Rules OK Results Rules OK was created with a simple and clear 2020 vision;

To enable everyone to enjoy learning, achieving, doing and being more... This is achieved through the delivery of World Class Business Coaching, Training, and Development Programs designed for business owners and entrepreneurs just like you… We recognise that all businesses are different, as are the people that build, own and run them so we have a range of products and programs that will help, inspire and support you – whatever stage of development your business is at… You can register for our newsletter, check out David’s latest blog and even download documents and templates from our website at www.resultsrulesok.com If you’d like to come along to an event – either to join one of our Webinars or participate in a Workshop or Seminar – click on the LINK to find our full schedule of events. David is offers a limited number of FREE Business Strategy Sessions for qualifying businesses, to arrange a meeting or discussion with David, simply got to our Home Page, scroll down and press the “Book Free Session with David” button... Our USP is our people, our delivery, the results our Clients achieve and our philosophy of Fun in Life and in Business. We are a growing profitable business, and we believe in making contributions to charity and causes that are aligned with our values. David’s unique experience, background and passion for adding value to the business and personal lives of others have enabled him to become not only a top Business Coach, but an accomplished Speaker and Author. Having worked in 21 countries so far, his presentations and key note presentations are compelling, informative and fun and his books reflect his knowledge and personality…

David’s first two books are available now… Buying David’s books in Hardback, Paperback or in Kindle format is easy – just click on the LINK… To check David’s schedule and arrange for him to speak at your next event, or arrange a bespoke program or workshop for your team – just drop us an email at info@resultsrulesok.com We look forward to hearing from you…

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If you have got this far then maybe we should talk…!

Results Rules OK Ltd 55, Newhall Street, Birmingham, B3 3RB. England Tel - +44 (0)121 416 0023

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