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1、Solution Selling1A Powerful Tool for SalespeopleWho is Selling a Combination ofProducts,Services and Concepts1A new approach to generate prospects and new business.A behaviorally-correct technique for developing buyer needs,specific to your product,service and concept.An integrated buyer-qualificati
2、on model which targets access to power,committee decisions,and the negotiation of the sales cycle.A prototype for developing sales tools,specific to your products and markets,which enables sales people to succeed immediately while they gain the expertise they will need long term.A set of tools which
3、 enables management to manage pipeline,assign prospecting activity,control the cost of sales,and predict future business more accurately.Sales Training Components2Diagnostics and Power Based SellingBoth are sales models which integrate with and expand Sales Training.Diagnostics selling helps in the
4、area of needs processing and decision management.Power Base Selling helps establish a political influence strategy and a competitive sales strategy.3THE TRADITIONAL PROCESSTHE DIAGNOSTIC PROCESSUNSTABLE RELATIONSHIPSTABLE RELATIONSHIPClosePresentationProblem SolvingQualifying45%35%15%5%5%10%35%50%Ag
5、reementPresentationDesign SolutionsProblem SolvingDiagnosisTraditional vs.Diagnostic4Sales Process OverviewTarget potential opportunitiesPre-call planning and researchCreate curiosity and hopeRapport,credibility,credentialsDevelop buyer and user needsdetermine pain,critical issuesdiagnose reasons wi
6、th bias toward offeringsdetermine impacts across the organization-who,how,financialcreate,participate in,reengineer buyer visionsclarify expectations and ownershipAgree on evaluation criteria5Determine capabilities needed to meet buyer visionPresent offeringsBuyer acceptance of offeringsMutually agr
7、ee on ROINegotiate a win/win profitable agreementImplement as agreed,measure success criteriaContinue to develop relationshipUse success to leverage other opportunitiesSales Process Overview(cont)6High Difficulty SellingConceptual/intangibleDifficult to learn and explainPerceived as expensivePerceiv
8、ed as complexRequires major change by buyerSold to committeesSmall organization selling to large7Superior SellerSituationKnowledgeCapabilityKnowledgePeopleSkillsSellingSkillsSituational Fluency-Align with your buyer-Align with your buyer8Basic PrinciplesNo PAIN,no ChangeDiagnose before you prescribe
9、Three levels of Buyer PAINPeople buy from peoplePower buys from power“Product”=Buyer VISUALIZATIONYou cant sell to someone who cant buy9Latent Pain Vs.PainLATENT PAINPAINCURRENTACTIVE EVALUATIONS10Three Levels of Buyer PainLevel One:LATENT PAINLevel Two:PAINLevel Three:VISUALIZATION11Definition of N
10、eedsLevel One:Latent PainPotential needs for a product or service in the mind of the seller.Latent needs are usually either ignorance or rationalizations.A potential buyer is unaware that a potential solution exists or has previously attempted to find a solution and was unsuccessful.It is/was“too ex
11、pensive”or“too complicated”or“too risky”,etc.Level Two:PainComplaint statements by the buyer about problems,difficulties or dissatisfaction with the existing situation,ie pain.Complaint statements indicate that the buyer knows he/she has a problem,but does not know how to solve the problem.Level Thr
12、ee:Vision of a SolutionCapability statements by the buyer indicating that the buyer accepts responsibility for solving the problem and specifying the precise capabilities needed to deal with the problem.The seller must participate personally in the development of the need in order for it to be a qua
13、lified need.12Definition of Needs(cont)Vision of a SolutionNOTE:When a buyer has a vision of a solution,he does not expect the seller to solve the problem,but can now“see”himself solving the problem in his mind.He is enabled.13Examples of NeedsLevel One:Latent NeedsPeople standing in line for transa
14、ctions on their lunch hour at the bank.Inventory build-up due to obsolete parts.People manually re-keying data from unlike financial systems.An entrepreneur with no disability insurance.Level Two:Pain“We are losing customers because people hate standing in long lines”.“Our inventory is much too high
15、.”“The re-keying errors are killing us”.“Im worried about what will happen to my business if I get sick.”Level Three:Vision of a Solution“We need to be able to handle the average banking transaction in under 60 seconds”.“I need to be able to sort my inventory by date of last use.”“We need the abilit
16、y to consolidate data from unlike systems without re-keying.”“I need the ability to generate X dollars of income even if I am disabled”.14Types of ApprovalSponsor BeneficiariesAdversariesLegal/Technical/AdministrativeFinancialPower SponsorPOWER15Components of a SalePAIN+POWER+VISION+MOMENTUM+PROCESS
17、=SALE16How People BuyLatent PainPainVisualizationMatch VisionCost JustifyOvercome Fear of RiskPrice JustifyTake Action17Alignment of Buying&Selling PhasesPhase I Phase II Phase IIINeed Definition Evaluate Alternatives Take Action How much does it cost?Do I need to change?What do I need?Is there a so
18、lution?Which one meets my needs?Can I afford it?Should I do it?Consequences?Is it the right price?Define their needs with our product bias.Qualify buying process.Demonstrate how product meets defined needs.Why us?Why now?BUYER:SELLER:Need Development Proof Close the Sale18Buying PhasesTimePhase IPha
19、se IIPhase IIISolutionRiskNeedsCostLevel of Concern19Risk ObjectionsSmile(to yourself)EmpathizeAnswer(if appropriate)Recall painRecall reasonsRecall visionRecall proofNudge20Pain SheetPain:Situation:Our Product:Potential ReasonsImpactCapabilitiesIs it because.(reasons for the pain that align withyou
20、r product orservice capabilities)Is this causing.(impact on other areas,depts.,people,who is impacted/concerned)What if there were away for you to.(product capabilitieslinked with reasons)21Pain SheetPain:Failure to meet shipment scheduleJob Title:VP Mfg.,Gen Mfr.(SIC 35)Our Product:Symix Mfg.Softwa
21、rePotential ReasonsImpactCapabilitiesIs it because.Sales is quoting unrealistic delivery dates Excessive material shortage You are planning production you dont have the capacity to meet Frequent schedule changes from mktg.Service parts forecasts are not recognized when planningIs this causing.missed
22、 revenue targets lower profits inability to accurately predict revenue Is the VP Finance concerned?losing customer orders losing customer credibility losing market share Is the VP Sales impacted?What if there were away for you to.give sales access to mfg.schedules while they enter orders notify plan
23、ners/buyers in advance of potential shortages estimate bottleneck resource loads before finalizing schedule show marketing the effect of a proposed schedule change include marketings service part forecast in production planning22Pain SheetPain:Inventory Investment is too HighJob Title:VP Finance,Gen
24、 Mfr.(SIC 35)Our Product:Symix Mfg.SoftwarePotential ReasonsImpactCapabilitiesIs it because.Excessive obsolete inventoryInaccurate stores and WIP inventoryManufacturing is building things it no longer needsPurchasing buys long lead time materials based on their own forecastsIs this causing.excessive
25、 WIP inventorypressure to reduce production costspressure to cust back productionpressure to reduce purchasesshortages which impact shipments Is the VP Mfg.impacted?missed customer delivery datespressure to sell what you haveinability to meet sales goals Is the VP Sales affected?What if there were a
26、 way for you to.Easily identify,locate and quantify obsolete inventoryEasily audit and verify inventory levelsReevaluate production plans dailyFind all Pos supplying unneededmaterial23Job Title:CEOPain:Eroding ProfitsReasons:Missed ShipmentsWeaving the Pain ChainJob Title:VP ManufacturingPain:Missed
27、 ShipmentsReasons:ShortagesJob Title:Materials Mgr.Pain:ShortagesReasons:Inaccurate inventory Order changes Uncontrolled ECNs24Organizational“Pain Chain”Example CEOPain:Stock price is downR1:Profits are downR2:Customer erosion CFOPain:Profits are downR1:Revenue downR2:Cost of Mfg.up VP MARKETINGPain
28、:Customer erosionR1:Cant fill ordersR2:Cant sell substitute products to customers VP MANUFACTURINGPain:Cost of Mfg.upR1:Orders for products they dont haveR2:Not selling products they do have VP SALESPain:Not meeting revenue goalsR1:Salespeople taking orders they cant fulfillR2:Cant offer substitutes
29、 to customers DIRECTOR OF MISPain:Unhappy line VPsR1:Cant deliver needed applications on time MGR.APPLIC.DEVELOP.Pain:Cant deliver needed applications on timeR1:Legacy applications still on mainframeR2:Applications are not flexible to change with businessSpecific capabilities of sellersproducts and
30、services will enable this person to deal withthese issues,thus effecting a“beneficiary chain”up to thetop of the organization.25Case Study“Pain Chain”Title:Pain:R1:R2:For your fictious prospect organization,create a“pain chain”between a minimumof four job titles.One of them should be a decision make
31、r and a minimum of oneof them a direct user of your productsor services.Align a minimum of two specific capabilitiesof your offering with the reasons of the directuser(s).Title:Pain:R1:R2:Title:Pain:R1:R2:Title:Pain:R1:R2:Title:Pain:R1:R2:Title:Pain:R1:R2:Title:Pain:R1:R2:26Reference Story FormatSIT
32、UATIONThe situation must include the persons job title and industryCRITICAL ISSUEThe critical issue is the pain of the person above.(Anxiety words and phrases are very powerful here.)REASONSThe business reasons for the critical issue are biased to your product.VISIONIn the words of your customer the
33、 capabilities he/she/they needed to solve their problem-“He/She/They told us they needed.”_ PROVIDEDIf the“solution”is described properly above,all we have to do here is say that we(our product/company)gave them those capabilities.RESULTSpecific measurement is best!27Reference StorySITUATIONMaterial
34、s Manager,power supply panyCRITICAL ISSUEDifficulty controlling shortagesREASONSFrequent engineering changes and two different bills of material(one for engineering and one for manufacturing)VISIONHe told us he needed to be the control point for implementing engineering changes.This would allow him
35、to simulate the impact in advance of the change.He also needed both engrg.and mfg.to operate from the same bill of material._ PROVIDEDWe provided him with those capabilitiesRESULTOver three years he has had no more than 18 parts short at one time out of 3500 parts.28Whats It Worth to Reduce Inventor
36、y?Cash-Inventory requires and ties up cashCash needlessly tied up in inventory reduces cashreserves or requires additional debt.Profit-Carrying costs reduce profitsCarrying costs increase operating costs,which reduce profits.Carrying costs include:Storage facility costsStaffing and handling costsIns
37、uranceTaxesPilferageDamageObsolescence.and more.Inventory carrying costs are usuallyat least 25%29Whats It Worth to Reduce Receivables?Cash!It generates cash.Receivables are simply no-interest loans to yourcustomersCash you could use to fund your businessDays in excess of terms raise your costs and
38、increase your risk of cash loss.You have to borrow less(usually)Interest expense is reduced and most liquidity ratios are strengthened.Receivables can be controlled by setting a“Days of Receivables”goal and monitoring performance to achieve it.30Value Measurement ElementsWhat will be measured?Who is
39、 responsible?How much is possible?What capabilities will be needed?When will this investment pay for itself?31Power Sponsoraka the“Vice President of Change”Typically an innovator or early adapterEnough clout to get it if they want it,regardless of job titleWilling to introduce you to anyone you need
40、 to talk toWilling and able to negotiate an evaluation plan32Why Change?ERODING:profits,market share,service,quality,growth rate,etc.INCREASING:costs,competition,errors,returns,employee turn-over,etc.GOVERNMENT:EPA,FTC,FCC,OSHA,IATA,FDA,etc.COMPANY IMAGE33InterdependenceLowHighBowling TeamOrchestra
41、Business34Organizational Interdependence20th Century Organization$PresidentVPMarketingVPSalesVPMfg.VPFinanceDistributionManagerPlantManagerDirectorMISMaterialsManagerAppl.Dev.Manager35Transition to Vision ProcessingPotential Buyer Responses.enough about me/us,tell me about you and your situation.Fou
42、r Potential Buyer Responses:1.2.3.4.Seller Action:1.2.3.4.36Transition to Vision ProcessingGetting Buyer to Admit PainEnough about me.Pain?TalkingFreely?Situation QuestionsPain?Menu of PainBranch to DoorPain?NoYesNoNoYesYesYes$/EmotionNoR1I1C1R2I2C2R3I3C337Transition to Vision ProcessingTransition Q
43、uestion ExamplesSituation Questions:Describe your current architecture?How does everyone get the news when a change occurs in the middle of the design cycle?How do you gather user feedback?How are you dealing with distributed development?38Transition to Vision ProcessingTransition Question ExamplesM
44、ultiple Choice“Menu”Approach:The top three difficulties we are hearing from CIOs these days include:inability to deliver client/server applications on time,applications that fail to meet user expectations,difficulty meeting the ROI requirements of the organization.are you facing any of these issues
45、today?39Transition to Vision ProcessingTransition Question Examples$/Emotion Questions:How do you get the news?How does this impact you personally?Who else is aware of this situation?Are they looking to you to fix it?40Navigating the Three Levels of NeedLevel Three:Vision of a SolutionLevel Two:Pain
46、Level One:Latent9 Block Vision Processing ModelReference Story41Three Levels of NeedCreating a Specific Need for a Specific FeatureLEVEL THREEFeature becomes a benefit!Vision of a SolutionLEVEL TWOCapability QuestionPainLEVEL ONEAnxiety QuestionLatent42Vision Processing Prompter-Vision CreationPAINR
47、1(1)I1(4)C1(7)R2(2)I2(5)C2(8)R3(3)I3(6)C3(9)DiagnoseReasonsExploreImpactVisualizeCapabiltiesOpenControlConfirmVISION OF A SOLUTIONHow does this affectyou as.;how do youget the news?Who is looking to you to fix this problem?“Tell me about it,what iscausing you to have this.(repeat pain)?”“Besides you
48、rself,who in yourorganization is impacted by this(repeat pain)and how are thy impacted?”“What is it going to take forYOU to be able to solve this(repeat pain)?”“Could I try a few ideas on you?“Is it because.?”“Is this(pain)causing.?”If so,wouldnt(title)be concerned.?”“What if there were a way for yo
49、u to.,wouldthat help?What if you were also ableto.?”“So,the reasons for your(repeat pain)are.?”“From what I just heard,ifyou had the ability to.(repeat vision capabilities)Could you solve your(repeat pain)?What would it worth.?”“From what I just heard,(repeat the who and how)it soundslike this is no
50、t just your problem,but a _ problem!”43Vision Processing ModelPAINR1I1C1R2I2C2R3I3C3DiagnoseReasonsExploreImpactVisualizeCapabiltiesOpenControlConfirmVISION OF A SOLUTION44The Power BaseFinding the People with InfluenceInfluential AuthoritariansNon-InfluentialAuthoritariansInfluentialNon-Authoritari