9.04 – Sales: The Dark Arts
Selling is a fundamental aspect of every business. Whether you are moving goods over a counter or negotiating complex contracts, understanding and engaging in the selling process is crucial.
Telling The Difference Between Selling And Marketing
Marketing encompasses the entire process of deciding what to sell, who to sell it to, and how to sell it. A brilliant marketing strategy should, in theory, reduce the need for aggressive selling. However, selling is not about forcing products onto customers who don’t need them; it’s about bridging the gap between the product and the customer. Effective selling involves conveying information and demonstrating how your product or service meets customer needs better than anything else available.
Selling yourself
Your personal selling style is crucial to your business success. Whether you have prior experience in selling or not, developing a style that suits both your customers and your comfort level is essential. This self-assessment also helps define and reinforce your business goals.
- Objective Setting: Always have a clear objective for any selling activity, along with a fallback position. For example, aim for an order but be prepared to settle for a chance to tender for the customer’s business.
- Identify Decision-Makers: Focus on the person who makes the buying decisions, even if you have to start further down the chain.
- Listen to Customers: Ask open-ended questions to understand the customer’s needs, confirm those needs back to them, and then explain how your product or service meets those needs.
- Handle Objections Gracefully: Treat objections as a sign of interest. Address them without hostility and use them as an opportunity to provide further information and reassurance.
- Closing the Deal: Use techniques like the assumptive close, where you proceed as if the sale is a given, or the balance sheet close, where you compare the pros and cons to highlight the benefits of your product.
Hiring Salespeople or Agents
For many small businesses, hiring full-time salespeople can be too costly. Using sales agents can be a cost-effective alternative. Agents are paid on commission, meaning they only earn when they sell. They should have existing contacts, personal knowledge of buyers, and detailed knowledge of your market.
- Finding Agents: Advertise in trade press, use agent directories, or approach potential agents directly through industry contacts.
- Interviewing Agents: Evaluate their current product lines, market knowledge, contact network, sales record, and reliability. Speak to their biggest customers for references.
- Agreement Details: Define geographical areas, commission rates, payment terms, customer retention policies, training, support, non-competing agreements, and notice periods. Consider an initial trial period.
Measuring Results
Sales results can take time to materialize. In the interim, track activities that lead to successful sales:
- Sales Appointments and Calls: Monitor the number of sales appointments and calls made daily, weekly, and monthly.
- Quotations Given: Track the number of quotations provided to potential customers.
- New and Lost Accounts: Keep a record of new accounts opened and old accounts lost.
- Average Order Size: Analyze the average size of orders to gauge the effectiveness of your sales strategies.
Using Customer Relationship Management (CRM)
CRM involves understanding and improving relationships with your clients to boost satisfaction and maximize profits. It involves maintaining a database of customer demographics, purchase patterns, preferences, and more.
- CRM Systems: These systems help manage sales enquiries and track leads through the sales cycle. Tools like Zoho CRM offer free versions for small teams and provide essential features such as sales lead tracking, contact management, and multichannel marketing.
CRM systems put customers at the center of your data flow, enabling you to tailor your sales and marketing efforts more effectively. They can be an invaluable asset for small businesses looking to optimize their sales processes and improve customer relations.
Conclusion
Understanding the selling process and continually refining your sales strategies are vital for business success. By developing a personal selling style, utilizing effective sales agents, measuring your sales activities, and leveraging CRM systems, you can enhance your sales efforts and achieve better business outcomes.
