the power of building relationships the power of building relationships 3-1

The Power of Building RelationshipsThe Power of Building Relationships

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The extent of the buyer’s confidence that he or she can rely on the salesperson’s integrity.

What is Trust?What is Trust?

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Why is Trust Important?Why is Trust Important?

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• A fundamental competitive strategy of a growing number of organizations is to build long-term mutually beneficial relationships with their customers.

• The ability of those organizations’ salespeople to earn their customers’ trust is essential to the success of that strategy.

How to Earn TrustHow to Earn Trust

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Trust ExerciseTrust Exercise

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Knowledge Bases Help Build Trust and RelationshipsKnowledge Bases Help Build Trust and Relationships

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Industry KnowledgeIndustry Knowledge

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Knowledge Need: the dynamics, structure, culture, and forces that affect the industry or industries in which they work.

Benefit: ability to 1) develop and execute effective selling strategies, and 2) be viewed as a market information resource.

Company KnowledgeCompany Knowledge

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Knowledge Need: understand their company’s culture, mission, goals, policies, and procedures.

Benefit: ability to effectively and accurately represent the company when interacting (e.g., negotiating) with its prospective and current customers.

Product KnowledgeProduct Knowledge

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Knowledge Need: a thorough understanding of their product offerings and the various sources of value they provide.

Benefit: be perceived (by the customer) as experts and capable of accurately matching solutions to the needs of the customer.

Service KnowledgeService Knowledge

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Knowledge Need: understand their company’s service capabilities, including limitations, fees, time-frames, and the value they add.

Benefit: ability to match their company’s service capabilities to the needs of their customers.

Promotion and Price KnowledgePromotion and Price Knowledge

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Knowledge Need: understand the details of, and how to manage, promotional programs and the pricing policies of their products.

Benefit: ability to 1) facilitate their customers’ participation in promotional programs and 2) effectively negotiate terms.

Market and Customer KnowledgeMarket and Customer Knowledge

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Knowledge Needs: understand the markets they serve and their customers, including needs, personalities, and communication styles.

Benefit: ability to 1) develop and implement effective selling strategies, and 2) clearly communicate relevant solutions.

Competitor KnowledgeCompetitor Knowledge

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Knowledge Need: their competitors and respective market offers and how they are perceived in the market.

Benefit: to position their products against those of their competitors’.

Technology KnowledgeTechnology Knowledge

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Knowledge Need: understand how utilize sales technology hardware and software (e.g., internet, CRM, laptops, smart phones).

Benefit: to leverage technology to me more competitive . . . work smarter not harder.

The Power of Relationship The Power of Relationship

SellingSelling• To be successful in selling you have to make selling personal • People do business with people, not with companies • Relationship selling / consultative selling: Working

personally with your customer to understand their needs, putting their needs first, and providing consultation to help them make the best decision for themselves or their business

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From Personal to Problem From Personal to Problem

SolvingSolving

• Give the customers what they need rather than what you want to sell them

• Brands must understand how important each moment of truth is when creating relationships with customerso Moment of truth: The moment the customer comes in contact with the

brand• Example — Service at the point of interaction; meeting the

expectations that the customer has of you as a brand

• Customer relationship allows you to bridge the gap between a customer’s problem and the solution

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From Personal to Problem From Personal to Problem

SolvingSolving

• Consultative selling o Gives a reason to buy from you when the competition is priced lower o It defines the relationship before the sale, during the sale, and after the

sale

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CRM Tools Help you Manage CRM Tools Help you Manage

RelationshipsRelationships

• Customer relationship management (CRM) tools: Technology solutions that organize all of a customer’s interactions with a company in one place o Makes it easier to understand the lifetime value of a customer o Starbucks uses a CRM tool to power their MyStarbucksIdea.com Web site

Source: Starbucks Corporation

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Under promise and Over Under promise and Over

deliverdeliver• The best salespeople say they will do something by a certain day,

and then not only do they do it, but they deliver it one day early • Trust is built between salesperson and customer, and the

relationship goes to the next level: partnership

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When Times are ToughWhen Times are Tough• Deliver bad news using the following practices:

o Openo Honesto Timely communication

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Triple Win: The Ultimate Triple Win: The Ultimate

RelationshipRelationship

• Triple win: All parties in a relationship win—your customer, you, and your company or organization o It results in more business with your existing customers because you have

become a partner in solving their problems, and it brings you new business in the form of referrals

o It plays a significant role in the negotiating process

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How do you Bring How do you Bring Value?Value?

• The video Give Value First features Jeffrey Gitomer • She discusses the importance of providing value to

customers without any expectations• To view the video, click here

Source: Buy Gitomer, Inc

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How do you Bring How do you Bring Value?Value?

• Explain with examples, the difference between value-added services provided to the customers and giving value to the customer.

• A ‘flat 50 percent off’ offer on an apparel brand is a promotional tool and not a value-added service. Substantiate.

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Networking: Relationships That Networking: Relationships That

Work for YouWork for You

• Networking: Art of building alliances or mutually beneficial relationships

• Networking is a requirement to stay competitive, because it’s virtually impossible to do your job alone

• Building strong relationships with customers is an excellent way to build your network

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Networking Tips of the TradeNetworking Tips of the Trade

• Start with people you know• Join and get involved in professional organizations• Attend industry events• Keep in touch • Create a profile on the major professional social networks• Be proactive• Mind your manners

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Twitter SellsTwitter Sells• The video How To Use Twitter To Network Before a

Conference features Mig Pascual • He tells his story on how he used Twitter to

engage and build professional relationships with people online prior to meeting them in person at a conference

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LinkedInLinkedIn• LinkedIn is a business-oriented social networking site,

mainly used for professional networking• The Power of Selling group is active on LinkedIn• To join the group, click here

SummarySummary

• Relationships are vital to success in most selling situations. When you understand what the customer wants and needs, you can provide solutions to help your customer meet his goals

• Adaptive selling occurs when you adapt and customize your selling style based on the behavior of the customer

• Networking is about exchanging value, not collecting business cards

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Step 1: Prospecting / Generating Quality Leads

Step 2: Pre Approach - Knowledge gathering and leveraging

Step 3: Approach – Making a connection

Step 4: Needs Assessment – Discover, confirm or create

Step 5: Presentation

Step 6: Closing the sale

Step 7: Repeat Sales and Referrals

Key Skill: Overcoming Objections

The 7 Step and 1 Key Skill Sales Process

Business Ethics—The Power of Doing the Business Ethics—The Power of Doing the

Right ThingRight Thing

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Chapter ObjectivesChapter Objectives• Understand ethics and what composes ethical

behavior. • Discuss the role of values in ethics.• Understand how you define your personal code of

ethics.• Identify how company policies reflect business ethics.

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What is Ethics?What is Ethics?• Ethics: System that defines right and wrong, and

provides a guiding philosophy for every decision you make

• Two aspects to ethics:o The ability to discern right from wrong, good from evil, and propriety

from impropriety o The commitment to do what is right, good, and proper

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Personal Ethics—Your Behavior Defines Personal Ethics—Your Behavior Defines

youyou

• A highly developed set of personal ethics guides you when you are in a situation that challenges you morally

• To develop a strong sense of ethics:o Do what you believe ino Take actions consistent with your principles

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CONSISTENTLY

Categories of Unethical BehaviourCategories of Unethical Behaviour• Deceptive Practices

o Salespeople giving answers they do not know, exaggerating product benefits, and withholding information may appear only to shade the truth, but when it causes harm to the buyer, the salesperson has jeopardized future dealings with the buyer.

• Noncustomer Oriented Behaviouro Most buyers will not buy from salespeople who are pushy and practice the hard

sell. Too much is at stake to fall for the fast-talking, high-pressure salesperson.

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Categories of Unethical BehaviourCategories of Unethical Behaviour• Illegal Activities

– Misusing company assets has been a long-standing problem for many sales organizations.

• Using the company car for personal use,• Charging expenses that did not occur, • Selling samples for income.

– Some of these violations discovered by company probing also constitute violations of the Canadian Revenue Agency (CRA) and Internal Revenue Service (IRS) and are offenses that could lead to jail or heavy fines.

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Do the Right ThingDo the Right Thing• Unethical behavior: Acting in a way that is not

responsible or deemed to be the standard of what is right, good, and fair

• Essence of ethics - Choosing to do the right thing when you have a choice of actions

Source: Steven R. Hoover

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High-Profile Unethical Behavior in High-Profile Unethical Behavior in

BusinessBusiness

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High-Profile Unethical Behavior in High-Profile Unethical Behavior in

BusinessBusiness

• Enron o Began to expand - borrowed money to fund the new businesses o The debt made the company look less profitable o Senior management created “paper companies” in order to keep the

debt off the books o This accounting made Enron look extremely profitable - more people

bought stock in the companyo On October 16, 2001 the company announced a loss of $638 million

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Ethical Behavior in SalesEthical Behavior in Sales• The most visible positions in any organization in

terms of ethics is saleso Because it is the salesperson that comes in contact directly with the

customero Salesperson’s conduct is a direct reflection of the organization and its ethics;

he represents the company

“Start with what is right, rather than what is acceptable” Peter Drucker Famous Management Consultant and Author

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Selling from the CustomerSelling from the Customer’’s Point of s Point of

View View

• The customer is always right, except when he asks you to do something unethical

• In such situations, to uphold your ethics and maintain your relationship SellingPower.com suggests the following steps:o Evaluate the situation with a clear head o Don’t jump to conclusions o Identify the criteria you are using to make this judgment o Seek counsel

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Character and its Influence on Character and its Influence on

Selling Selling

• Character: Features and beliefs that define you • It is composed of six core ethical values:

o Trustworthinesso Respecto Responsibilityo Fairnesso Caringo Citizenship

Source: Josephson Institute

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YouYou’’re Only as Good as Your re Only as Good as Your

WordWord

• Not everyone in sales is ethical or honest • The video Honesty in the Workplace highlights

the problem of lying in the workplace• To view the video, click here• Bottom Line – Honesty is HARD

Source: NBC Universal, Inc

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Where the Rubber Meets the Road: Where the Rubber Meets the Road: Facing Challenges Facing Challenges

• In a situation that challenges your ethics:o Follow your code of ethics and the company’s code of ethics

• In a situation where you feel pressured to do something unethical:o Talk to your supervisor about it o Talk to someone in the human resources department (if you don’t feel that

you can talk to your supervisor or your supervisor is part of the problem)

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Legal Implications of Professional SellingLegal Implications of Professional Selling

• All Canadian provinces and territories have established a ‘cooling off’ period during which the consumer may void a contract to purchase goods or services.

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Legal Implications of Professional SellingLegal Implications of Professional Selling

• It is also important to remember that sales representatives often have to engage in a contract with an individual or firm in order to secure the sale.

– A contract is simply a promise or promises that the courts will enforce. Oral contracts are enforceable, but written contracts are preferable, as they reduce the possibility of disagreement.

© 2013 by Nelson Education Ltd.

What Company Policies Say and What Company Policies Say and What They MeanWhat They Mean

• Conflict of interest: A situation in which a person, such as a public official, an employee, or a professional, has a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties

• Family interests: When a relative of yours is either someone from whom you might purchase goods or services for your employer or when you have influence over the potential hiring of a family member of yours

• Gifts: Something received without compensation or exchange

• Private use of employer property: Using an employer’s property—cars, software, staplers, and so on—for nonbusiness purposes

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What Company Policies Say and What Company Policies Say and What They MeanWhat They Mean

• Moonlighting: Holding down a second job on the side • Bribe: Money or favor given or promised in order to influence

the judgment or conduct of a person in a position of trust; something that serves to induce or influence

• Noncompete agreement: A contract that prevents you from taking a job with a competitor after you’ve quit or been fired

• Trade secrets: Something (as a formula) which has economic value to a business because it is not generally known or easily discoverable by observation and for which efforts have been made to maintain secrecy

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The Competition ActThe Competition ActThe major federal legislation in Canada that defines

illegal practices, including the following:• price fixing - agreements between two or more people to prevent or

unduly lessen competition, or to unreasonably enhance the price of a product.

• bid rigging – an agreement whereby competitors agree in advance as to which will win the bid based on the tenders submitted.

• price discrimination a seller knowingly and systematically sells the same goods or services at different prices to buyers.

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The Competition ActThe Competition Act• predatory pricing - when a firm or individual deliberately sets prices

to incur losses for a long period of time to eliminate a competitor, or inhibit competition in the expectation that the firm will be able to recoup its losses by charging prices above competitive levels.

• bait and switch selling - firms and/or individuals are prohibited from advertising products at bargain prices that they do not have available in reasonable quantities.

• pyramid selling- fees or commissions are not paid on the basis of product sales but on the recruitment of others to make sales.

© 2013 by Nelson Education Ltd.