Consultative Professional Selling Advise

Copyright Jim Tappenden & Spearhead Training Limited

CONSULTATIVE PROFESSIONAL SELLING

This material is aimed to provide you with useful advice on how to sell professionally using the consultative sales process and it can be used in support of any sales courses that you might attend, as a useful refresher or purely on its own. The material contains a numerous useful tips to help your professional consultative selling.

WHAT IS CONSULTATIVE PROFESSIONAL SELLING?

I was once asked to be the lead presenter in a seminar on telephone marketing. We were approached by television journalists who wanted to know what smart tricks we were going to present. When they realised that this was not what we taught they quickly lost interest and so we did not contribute to any TV audience`s evening scandal viewing on that occasion.

Consultative selling is most definitely not deceit or tricks of any kind. It is not what is commonly known as high pressure selling. I have no time for the crooks and charlatans, some of them unfortunately on the lecture circuit, who will teach you the `smart tricks` of selling.

Consultative selling is not about sharp practice. Anyone having difficulty accepting this should not take up the profession until their attitude has changed, for they will never succeed as a consultative salesperson. Some readers may have been exposed, or trained to use high pressure techniques. I promise that Spearhead will show you a better, more profitable way.

I do hold very strong views on this subject, for sharp practice makes it harder for everyone else in the selling profession. It deters good people from becoming salespeople to the detriment of British business and, pragmatically, it does not work over the longer term anyway.

I, like most in the selling profession, came into it almost by accident. I had not planned to be a salesperson, I wanted to be a `Sales Manager`. Mainly because I had a vision of management being about comfortable offices, large cars, staff to do all the work and expense account lunches. How wrong I was! At that time my perception of the salesperson was that of a slightly sharp practitioner, shake hands and count your fingers afterwards. (I did not want to be one of those).

About 50 years ago John Patterson who was Chairman of National Cash Register, at this time a very large global company, said:

`"Nothing ever happens until someone first sells something`.

More recently HRH Prince Philip The Duke of Edinburgh KG, KT. Wrote;

`"Some people seem to believe that Governments can create employment by waving some magic wand, but no manufacturing enterprise can survive if it cannot profitably sell it`s products, which means that employment depends on profitable sales."

The truth about Prince Philip`s words was reinforced by some research in the early eighties which showed that, on average 23, other jobs depended on the orders brought in by each salesperson. The top sales performer is a business person of the highest calibre. A consultative salesperson is at the vanguard of commercial enterprise, for without customers there would not be a need for companies or the whole complex structure of trade that is the engine for civilisation as we know it.

Working as a consultative salesperson is one of the most rewarding careers around. It is rewarding from two angles. The first is that job satisfaction angle - there is nothing to beat the buzz of winning a large contract. The tougher the negotiation the greater the satisfaction.

It is rewarding from the income instance as well - globally selling is consistently one of the highest paid careers. Top sales practitioners frequently enjoy levels of income higher than many senior executives. Incidentally, many chief executives have reached their exalted positions via the marketing and or sales department route. It can be a good route for those keen to earn themselves promotion.

Let us establish where today`s consultative selling has come from. People have sold things to one another for as long as recorded history. At school we learn about the Chinese, Phoenicians, Persians, Greeks, Romans and other great traders. There are many references to selling activities in the bible and it has been dubbed the second oldest profession. However, selling as we understand it probably started after the industrial revolution and the agricultural explosion, when goods and food were produced in greater quantities than could be consumed by local populations.

In those early days sales were easy. Vast markets, many colonised by the powerful European counties, opened up. People were hungry for goods. The main problems related to travel, communications and ability to pay. The latter was resolved by reciprocal tied trade. Selling was something practised by ship`s captains and trading officers of the great companies e.g. Hudson`s Bay Fur Traders and The East India Company who would bargain at each end of their voyage. I will not pretend that all was well and fair at this time, locals were often exploited. Trade has often been rough, tough and violent.

Overlapping this period came the `Carpet Baggers` and `Medicine Men` of the opening west U.S.A. Hawkers, tinkers and market traders abounded in Europe all enjoying reputations akin to timeshare and double glazing today. Caveat emptor!

It was during the early 1930`s that salesman (few, if any, women at this time) working in ways that we would recognise, came into being. At this time they were known as `Commercial Travellers`. Later to be called `Representatives` or `Reps` and more recently `Sales Engineer` `Marketing Executive`, `Area Manager`, `Systems Consultant`, `Field Co-ordinator`, etc.

Taking a slightly cynical stance, it seems almost anything goes, other than the honest title of `"Salesperson`. Let me make myself clear on this point. I see nothing seriously wrong with using an obscuring title as a P.R. exercise. After all to say `"I am a salesperson" smacks of - `"I am here to sell to you". However, be careful, who are you really kidding, the prospect is not a fool! I consider that the biggest danger of obscuring titles is that the holder may fail to recognise that they are salespeople and selling is what they are paid for. They find it convenient to believe that they are judged on criteria other than the quality of the business that they bring in.

It is true that the Consultative Salesperson will only attempt to sell if the customer will gain from the transaction. Consultative Salespeople are employed to sell and will only make contact with those who they reasonably think might have a need for their goods or services. A Consultative Salesperson will not want to spend too much valuable time with people who do not have needs that they can satisfy.

We hear a lot about salespeople who trick customers into buying unsatisfactory goods, or goods that the customer does not need. The media and various consumer shows regularly run items about the latest confidence trickster masquerading as a salesperson.

CONSULTATIVE SELLING

Consultative

In the UK we suffer from a very class conscious society that lingers to this day and the profession of selling suffers from a stigma that I am pleased to say is diminishing. It has to be said that the price of becoming a professional is one that many salespeople do not seem willing to pay. If we expect respect from others we should have respect for ourselves and be willing to work at developing true professional qualities. More about this later.

What are the implications of choosing the word consultative to describe the strategy for selling outlined in this workbook. Consultants are designated as such because they have particular knowledge and skills that are of value to be patient, client, or customer. To be really successful salespeople should also develop their knowledge to the point that they have valuable information to dispense. When customers with whom you have previously done business with start asking if you will come and see them as they have a problem they think you will be able to solve, you know you have cracked it. If those same customers start referring you to their friends without you asking them, you will know that you are on your way to being a consultant.

There are other analogies. A consultant knows that time is precious and does not waste it. After all when you provide a service, time is all that you have to sell. The consultative salesperson will become very time conscious.

Consultants do not become consultants without a lot of hard work. One of the problems with selling is that it is a relatively easy entry career. This can give the false impression that it is an easy option and thus attract the work shy who later on become the high pressure confidence trick artists.

On a more positive note, consultants are usually fee earning. It is the best way to be paid. You are paid on results. If you are as good as you would wish, large incomes are possible. You really can earn what you are worth when you are fee earning.

In Great Britain commission only or fee earning is not the most usual method of remuneration and the culture will not change overnight. I believe salespeople should think like fee earners and recognise that they are paid by results.

Professional

What do we understand by the word professional? The Professions (traditionally teaching, medicine, the law) have come in for a lot of criticism in recent years. Many, especially teachers, have expressed dissatisfaction and have left to pursue other vocations. Professional, as in being a member of a profession (doctor, lawyer, teacher etc.) does not have the social status it once held so what does the word mean now and why it is important for salespeople?

One implication of the word relates to earning a living by working at the profession, as in professional sports person. To be `professional` also implies a certain attitude of mind. It is this attitude of mind that I consider to be important. One is a professional because of the way one approaches the job. It implies standards are set and maintained.

For another view of the implications of the word professional for salespeople let us look at one of the traditional professions. Take the medical profession, for example, the job of a General Practitioner. There are common elements which occur in all other professions and parallel what has to happen in selling.

A doctor has to study to acquire the knowledge essential to becoming qualified. Knowledge and the willingness to study are the first common professional requirements. The professional salesperson has to learn and go on learning for the duration of their career.

Knowledge alone is not sufficient. Professionals are expected to display a particular attitude: a professional attitude. In the medical profession this is concern for the patient. This concern should place the interest of the patient or client at least on par to the self interest of the professional. Often this is written into codes of conduct and a doctor may be struck off and not allowed to practise if found in breach of these ethical codes. There is no body in selling enforcing standards, however, the Consultative salesperson will live by a number of profession standards.

Concern for the customer is an essential ingredient in the make up of a professional salesperson. Customers are not `punters`, nor are they for `stitching up`, such phrases show a lack of proper concern which will actually inhibit sales.

`A good bedside manner` is one indicator of a caring doctor. It is likely that one cannot become a really good doctor or for that matter a really good salesperson unless one likes (or at least has a strong interest in) people. Both are in `"the people business". The right mental attitude towards your customers, your company and most of all to yourself, will be the major factor in your success in the profession of selling.

Knowledge and attitude are very important but they are not enough to guarantee your success. You may have the knowledge required to effectively sell your products and/or services but constant practice is essential to develop your skills. It is not coincidence that all the older professions set up in practice.

Practice is part of the price of being professional - ask any professional sportsperson.

We have dealt with consultative, we have dealt with professional, let us now take a look at selling.

SALES CAREERS

Front line selling jobs include:

The Direct Salesperson

Sells direct to the public. In this sector we have the home improvements salespeople:- double glazing, kitchens, bathrooms, drives, patios, swimming pools, water softeners etc.

Some are supported by heavy marketing, some have canvassers looking for leads. Telephone canvassing is often used - you may well have been on the receiving end at some time!

Direct sales also covers some financial services (in recent years much more tightly controlled than it used to be), party plans, multi-level marketing, timeshare, cosmetics, etc.

Clearly in this sector there are many reputable companies of impeccable pedigree. There also exists a charlatan element. The direct sales area attracts some of the most professional salespeople around, and some of the biggest crooks. The main reason is that it is easy to get into with few qualifications. The reward for success can be very high but aware, there many high risk areas.

Jobs in this sector call for determination, an ability to keep going, self motivation, as well as selling skills. Direct sales can be lonely and is not a good job for the gregarious.

Business to Business Selling

This is a vast sector. Consider that everything sold to the public will, in the form of raw materials, components, goods and services to manufacture the product, have been sold many times over before it ends up as something to sell to the public.

Industry and commerce are great users of everything from toilet paper to computers. Businesses are the main users of services such as banking, insurance, consultancy and of course labour. It has been estimated that more than 300,000 salespeople sell to businesses in England alone. The staff required to sell to these varied markets in the business to business sector uses every permutation of speciality and technical knowledge, plus interpersonal and selling skills.

Retail Selling

Department stores, electrical goods, furniture shops and many others employ salespeople. Quality varies from untrained and unimpressive to the exact opposite. Many good professional salespeople have acquired their skills from retail selling. Many captains of industry have come from this back ground, or have had strong links with retailing e.g. The Sainsbury family, Alan Sugar of Amstrad, Marcus Sieff, Marks and Spencers, Jack Cohen (founder of Tesco), Richard Branson, Ray Krock (McDonald`s) and many others.

Good people skills are needed to be good at retailing. Product (stock) knowledge is all too often lacking. Selling can sometimes be crude and high pressure, or what is probably worse, no pressure and totally lacking in customer interest.

Showroom Selling

Rather like retailing but often with an element of direct selling, e.g. a car salesperson may operate from a showroom but spend a lot of their time selling to business fleet buyers.

Good people skills, good trade and product knowledge are required for success in showroom selling.

WHAT ARE THE PERSONAL QUALITIES REQUIRED FOR SALES SUCCESS?

There is a saying that, before you can sell the product you have to sell yourself. To be successful at selling oneself as a person who people like to do business with calls for many skills and personal qualities.
The following list has been developed by several thousand salespeople on Spearhead Training courses endeavouring to answer the above question. Clearly one can develop a very long list. The words below are the ones most frequently used by salespeople themselves.

Reliability

One of the most annoying things in business is someone who does not ring back when they say they will, or who lets you down with an important delivery. Keeping your promises is a key quality.

Sincerity

The word literally means `without wax` and goes back to the Greek and Roman empires. Marble statues were in vogue in those times and unscrupulous traders would plug holes in the marble with wax. This deception was unlikely to be discovered until some long time after the statue was sold. Sincere was a guarantee that the status was sound. Today, people will only deal with people they trust. Think about this for a moment. It really does not matter how good the deal is - if you are not sure of the vendor the usual reaction is to turn the deal down.

Integrity

This is a difficult word to define, we all draw our own moral standard lines. I am reminded of a proprietor of a dry cleaning shop being asked to define the word by his son. The man replied, `"It is like this son. If I find a ten pound note in a customer`s suit pocket, do I tell your mother or not?".

Attitude

This was mentioned in chapter one. Any definition of R.M.A. (right mental attitude) should include the word `positive`. Most news is bad news. Most customers berate salespeople with their woes. Depressed people do not spend so readily. Most depressions are aggravated, if not actually caused, by a lack of confidence. There is a little jingle that goes, `"Always look on the bright side of life - de boom, de boom, de boom, de boom". Very appropriate for salespeople.

Enthusiasm

Closely related to attitude, enthusiasm is a powerful quality. There are people who capture your interest simply by their enthusiasm. For me, one such person is Dr. David Bellamy the botanist. I am not particularly excited by botany but Bellamy`s enthusiasm holds me from flicking channels. Most of us react very positively to an enthusiastic person.

You will find that customers will allow you to get away with statements and actions that will challenge coming from someone with less enthusiasm. This is a quality that can be worked on and comes from being sincere and having confidence in yourself, your offer and the Company you represent.

Confidence and Competence

Confidence has just been mentioned in the paragraph above but it is worth a few more words as it is one of the more important professional qualities. It is becoming clear that all these quality words are linked. One that is inextricably linked to confidence is competence. I use it as an equation:-

(Competence = Confidence) and (Confidence = Competence)

The more you know about, selling, your business, your customers and your markets, including competitors, the more confident you will become. Knowing about products etc. means knowing what they will do for customers. It also requires that this knowledge is put into perspective.

If you do not believe in your offer, check. It could be your attitude that is wrong. After all, if others are buying, they must be getting some benefit from the offer.

Knowledge and Understanding

The process of learning goes through four stages.

1. Unconscious Incompetence. Ignorance is bliss.
2. Conscious Incompetence. I would like to understand.
3. Conscious Competence. I know how to do it and can do a good job when I think and prepare.
4. Unconscious Competence. I react instinctively. In consultative selling we are working to turn the skills into habits.

Many sales are not made because the salesperson will hang back in the mistaken belief that the prospective customer needs a `"better" deal. It could be that the salesperson actually believes that the competitor`s product is of higher quality, or less expensive. Real understanding is knowing why your deal is good for the customer. You know why others have purchased from your company and are able to communicate these benefits in a way that enables the customer to visualise what you are saying. If you have some satisfied customers they must have chosen your company for a reason. In cases where a competitive product does have some advantages, the customer may have other reasons why they do not wish to deal with the competitor. The advantages perceived by the salesperson may not seem particularly important to the prospective customer.

We talk about integrity, sincerity and other character qualities. If you cannot in all honesty justify selling your employer`s products should you be willing to continue accepting salary cheques from this particular employer?

A qualified consultative salesperson has little difficulty finding good quality representation opportunities.

The question for the professional salesperson is: `"Will the customer`s circumstances be improved by going ahead with us?" If you can give an honest `"yes` to this question, then it is your duty to try and convince the customer. Professional selling is all about satisfying today`s needs. It is wrong to try to sell a Rolls Royce when the customer really needs a Ford Fiesta and it is wrong not to try to sell our product or service if the circumstances are favourable. If our product or service matches the prospective customer`s needs then we should try to make the sale. That is what we are paid for.

Empathy

Sometimes given as sympathy, which is not quite correct. Empathy, means understanding why your customer holds a particular view but not necessarily agreeing with that view.

Personal Hygiene

During my career I have known a number of salespeople with a `personal problem`. The tragedy is that their careers are inhibited and they do not know why. We have one who visits our office, he sells very little and we will never explain the real problem.

We should be realistic. On a hot day, having driven fifty miles, in a hot car, without air conditioning, most of us pong a bit - what you do about it depends on circumstances.

Sales success is often not down to being brilliant but avoiding some silly mistakes that could cost you the business.

Determination

Selling is a tough job. Rejection by others is an everyday occurrence. Customers often say `"no" even to the most reasonable of suggestions, such as seeing you for just a few minutes. This constant rejection is hard to take and calls for some persistence from a determined sales person.

A sense of Humour

We do not mean of the `"Have you heard the one about`.` variety, although it can have its place with a like minded social type. Do not attempt to tell jokes unless this is already a personal skill.

A sense of humour can often defuse an otherwise tense situation. The ability to laugh at oneself will often strengthen the bond between you and your contact. If you work as part of a team, humour can do much to raise morale.

Some years ago a delegate attending a training course produced the following as his answer to the qualities required of a professional salesperson. He stood out in front of the group and said:

`"A salesperson is often referred to as an unusual animal. In fact he is a combination of several animals.

He must have the courage of a lion when going to see an awkward customer but be as gentle as a lamb when dealing with a delegate situation.

He must be as quick as a cheetah when chasing up a new enquiry but have the patience of a spider building a web when preparing a proposal.

He must be able to smile like a Cheshire cat when he feels like crying and be as quite as a mouse when listening to his customer.

He must be as proud as a peacock in his appearance and as loyal as the family dog to his company.

He must be as strong as an ox to carry all the members of his company on his back and have the wisdom of an owl when advising a prospect.

He must be as single minded as a lemming to close that important order and have the determination of a salmon swimming upstream to achieve his targets.

He must have eyes like a hawk to spot every opportunity and have the memory of an elephant to remember a million facts, figures and names.

Above all, he must work like a beaver and be as industrious as an ant in order to succeed".

`"Do you agree?"

When the assembled group had agreed, thinking this was a serious presentation, the delegate went on:

`"I have a little brain because I am a sales manager.
I agree that the salesperson is a combination of several animals.
He talks like a parrot.
Laughs like a hyena.
He`s as rough as a badger`s *****.
He breeds like a rabbit.
Eats like a pig.
Drinks like a fish.
And most of the time he is as drunk as a newt!"

THE EMPLOYER`S VIEW OF THE CONSULTATIVE SALESPERSON

Salespeople are provided with employment for just three reasons. The emphasis will vary from employer to employer but most job descriptions will include reference to the following.

The salesperson is employed primarily to bring in profitable business. The importance of this fact is usually emphasised on good sales courses. This is the number one priority area. There are a surprising number of maverick salespeople out there who do not fit in to the company hierarchy but who do not get made redundant or fired because they keep bringing in orders.

In my early days as a salesman I recall one of my colleagues borrowing a company van over the Christmas holiday, without authority. He crashed it and was dismissed on returning to work early in January. About the middle of January he returned to the company with a fistful of orders and was promptly reinstated.

Salespeople are representatives of their company. As such they are not expected to uphold the image of the company. You would not expect the representative of one of the world`s leading pharmaceutical houses to arrive in a beaten up, rusting, transit van wearing scruffy jeans and a T shirt - would you? Image is very important. Looking the part is halfway to being the part. Image is built up not just by the way you look but by the way you behave. It could do irreparable damage to your image if you arrived for a meeting without the right literature or report. Rudeness and bad manners have cost their perpetrators many orders in the past and you might benefit if one of your competitors is this foolish.

A further role expected by the company is that of market intelligence. The salesperson operates at the spearhead of business and is the eyes and ears of the company. Reports are expected and I have to say that this is a chore that many salespeople do not enjoy. Compute solutions have helped in this process but it still takes discipline to send a report at the end of a very long day.

THE BUSINESS CUSTOMERS` VIEW OF THE CONSULTATIVE SALESPERSON

Many of our customers are in business themselves. They buy to help their business and themselves. The view that they should have of the consultative salesperson is someone who will help them progress in their business and you do this in three ways.

By showing how you can further their business objectives.

Helping them to sell more.
Showing how to cut costs.
Making the job easier for them. Etc.

Presenting them with ideas - which they find helpful

News of new techniques.
Ways to reduce waste.
Ideas that can help them to achieve more.

To understand them and their business

Which means you need good product knowledge.
Good industry knowledge.
Some knowledge of your customer`s business.

THE PRIVATE CUSTOMERS` VIEW OF THE CONSULTATIVE SALESPERSON

If your business is selling direct to the public, the same three points apply with slight modifications.

By showing how you can further their lifestyle objectives

Helping them to earn more.
Showing how to cut living costs.
Making life easier for them, etc.

Presenting them with ideas which they find helpful

News of new goods and services.
Ways to reduce waste.
Ideas that help them to achieve more.

To understand them and their family lifestyle

You need good market knowledge.
Good market knowledge.
Some knowledge of your customer`s circumstances.

To summarise, consultative selling is all about helping people to achieve what they want. It has nothing to do with forcing them to buy goods and services that they do not need. The professional salesperson is an adviser, a consultant, or counsellor, not a confidence trickster.

DEFINING SELLING WITHIN MARKETING

Selling has been defined as the only activity in a commercial company that makes profit. Everything else is a cost.

In the marketing sense, selling is a promotional activity.

It is theoretically possible to balance advertising spend and direct selling effort. An increase in the advertising spend reduces the need for sales effort. Taken to the ultimate, there are products and services sold by direct response advertising without salespeople. Most f.m.c.g. (fast moving consumer goods) companies advertise heavily, stimulating demand from the end user and thereby almost forcing the retailers to stock their products. Retailing nowadays is a sophisticated operation with automatic re-ordering done by computer. The salespeople (often calling themselves Key Account Managers), negotiate contract terms and work at getting listings and special promotional deals for their product ranges. Their job has come a long way from the order taker of yesteryear.

Many business to business marketeers are having to stimulate demand by promotional appeals to the actual user. The user may not be their immediate customer. For example, software houses may advertise to the user through direct mail and the trade press. They may use distributors and wholesalers to bundle their products with hardware and sell them as a total solution.

At the other end of the scale there are many businesses particularly many smaller businesses who do not advertise in the conventional sense. These customers often employ salespeople. These salespeople have to find people to sell to (prospecting) and complete the whole sale process with little support. The compensation often comes in the earnings potential. The company can (I hope) afford to be generous, as it is, in theory at least, saving alternate marketing costs. Everything in promotion and distribution comes down to cost effective balancing of the alternative options to achieve marketing objectives.

These extremes represent an over simplification of the true market position for most companies. In the modern world marketing is very complex. Competitive activities, substitute products, own labelling, manufacture under licence, tariffs and trade barriers, quotas and Government regulation, all add to the headaches of running a business.

We can view sales promotion including selling as the communicating aspect of marketing. Communication is vital but remember, as we work through this book looking at the specialised communication process that we call selling, that in most markets salespeople need product management, pricing, distribution, and a host of other supports.

Another view of selling is that of an interpersonal skill. Part of the communication process between humans. We all try to exert some influence over others. Here, I want to introduce an important idea. It is not necessary for goods, services or cash to have been exchanged for `a sale` to have been made. `Selling` is the acceptance by one human being of the ideas presented by another. Therefore, `selling` is the art of persuasion.

Looking at what salespeople actually do, as described above, quickly leads one to the conclusion that as a representative of the company your job is really that of a two way communicator, acting as go between for the customer and the enterprise. It follows that the communication skills need to be worked at and we will have a look at these shortly. Before we leave this marketing section let us consider some of the marketing responsibilities of the salesperson.

THE MARKETING RESPONSIBILITIES OF THE CONSULTATIVE SALESPERSON

Remembering that the major responsibility of the salesperson is profitable business we should examine some of the elements that make up profitable business.

First of all there is the question of price. How much do I sell it for? Many salespeople are not allowed any negotiating latitude by their management, mainly because management believes that they will take the easy option and give away maximum discounts. There is some truth in this - many salespeople are preoccupied with turnover rather than profit. This may indicate that the average salesperson should be more financially aware and develop their negotiating skills. Both subjects naturally follow the acquisition of selling skills. It is after all, better to persuade the customer to accept the deal you put on the table (sell them), rather than negotiate a compromise away from this position.

Failure to reach target will damage the cash flow and profitability requirements of the organisation. This is likely to produce cuts in spending and staff as management try to correct the shortfall. If it is felt that the fault lies with any particular salesperson`s low performance, and that they are likely to be one of the early casualties. In extreme cases the business will become vulnerable to takeover or failure. Achieving the required volume is important.

WHY PEOPLE BUY GOODS AND SERVICES

Behavioural scientists have studied human beings for many years to try and explain the what, why, how and when of motivating people. It is a very complex subject. Consultative salespeople must be interested in the way people behave, they are people watchers. As salespeople we must take a pragmatic view, we need to know what works and what does not.

Why does a person buy a car?

Maybe to replace an earlier model that has worn out - in which case we have to ask; `"Why did they buy a car in the first place?` Probably to provide transport for self and family. Probably it is more comfortable and more convenient to use than alternative transport. Possibly to use in connection with business.

If it is in any sort of luxury, sports, or top of the range model, I will guarantee that the purchase will have been made to enhance personal image. Even cheap `"wheels" often develop a cult following. Think of the V.W. Beetle and the 2CV Citroen.

Henry Ford once said `"People have at least two reasons for buying a car, one they will tell you and the real one". He was referring to the status, egocentric reasons that are a factor in almost all major purchases. We like to think we are logical, however the weight of evidence suggests otherwise.

People buy goods and services for what they will do for them. They do not buy things for what they are.

People buy to satisfy their wants and needs.

Their wants and needs are a mixture of rational and emotional drives. Wants are more powerful than needs. I need to lose weight - I want a good dinner tonight.

The prospective customer must want the goods or services more than they want the money that they spend on them. Otherwise they would prefer to keep the money and would not buy. Consider a decision to have your haircut. You are going out to dinner and want to look your best. A haircut will cost you £12.50 and you will probably take it. Supposing the haircut was priced at £200. You would probably change hairstylist, or go without (buy a wig?). There is a price for most things. That right price is what you are willing to pay to satisfy your wants and needs at the time.

These seemingly obvious points clearly escape many sales staff for they never get round to selling benefits but concentrate their energies on describing the features of their product or service. In other words explaining what it is, rather than what it does. This negative selling behaviour leads to a price fixation. There is a concentration on cheap offers in spite of all the evidence that people buy that which they need combined with that which offers them best value for money. This is not the same as cheap. Best value for money is in the mind of the purchaser.

Price becomes important when you are able to compare identical goods. For example an identical model toaster. However, would you drive another ten miles to get if for a pound less? We all buy things from local shops rather than go into the supermarket even though it costs less in the supermarket. Convenience commands a premium.

PEOPLE BUY TO SATISFY WANTS AND NEEDS

Peoples` wants and needs are a mixture of rational and emotional drives.

Which is likely to be the most powerful sales statement?

1) `"This washing machine is fitted with a timer".
2) `"This washing machine will look after your washing while you are at work".

It follows that an understanding of what the product does is much more important than deep technical insight into what makes up the product. In fact research has shown that salespeople who concentrate on selling what a product is are only about ten percent as successful as those who can make the mental switch to selling what the product will do. We call this benefit selling. The consultative salesperson does this all the time, selling benefits first, last and in the middle.

Of course there are many products and services which require the salesperson to have a deep technical knowledge in order to know what the product can do for the customer. There may also be health and safety requirements to satisfy. I am not saying the salesperson does not have to understand the product, quite the opposite. The better the salesperson`s knowledge, the easier it is to relate to the needs of the customer.

The sales management conundrum about whether it is better to recruit technicians who can learn to sell, or salespeople who can learn about the technicalities varies from company to company, market to market and salesperson to salesperson. Whatever the background of the salesperson, learning what it is your products can do (that customers want done) is vital. Let us take a look at that process.

There is an analytical process which salespeople need to do well. That process is able to be able to take a feature or attribute of the product or service and relate it to the likely benefit that it will bestow on the customer. The process looks like this:

Features >> Advantages >> Benefits

F. A. B. AND LIKELY BENEFITS

FEATURES and ADVANTAGES which provide BENEFITS, or `"likely` benefits.

We say `"likely benefits` for it is by no means certain that they will actually be benefits.

For a feature to provide a benefit for the customer, they must have an actual need. Furthermore the customer must recognise the need themselves. Needs are individual and it is the salesperson`s job to establish what they are. They will vary in every case. One person buys a camera to snap the family. An estate agent uses it to help sell houses. Someone else buys it as a present for a loved one. Same camera, different needs.

The definition of a benefit is what the product or service will do, that the customer wants done. Unless they want it, there is no benefit. They must want it. The consultative salesperson often has to fan the spark of interest from the recognised need into the flame of desire, the want, that turns a likely benefit into a selling point.

The potential customer may not always realise that they have a need, in which case it is the salesperson who first has to identify the need for the customer e.g. how many businessmen wanted computers in the 1950`s. Clearly the need existed but could not be satisfied and was not recognised. Consultative selling often contains high elements of `"missionary` sales work. That is work spreading the word on new technology and/or products.

If the need can be satisfied the next step that the salesperson must take is letting the customer discover that the need exists. Then the customer must recognise how much they stand to gain by satisfying this need. Only when the customer wants to satisfy the need and salesperson can match the need can a sale take place. How this process is achieved is explained in subsequent chapters of this workbook.

It is helpful to think of `wants` as emotional and `needs` as logical. When someone wants to do something, their motivation to act is far greater than if they simply need it.

Let us now take a closer look at the process of FEATURES leading to ADVANTAGES providing the LIKELY BENEFITS.

Every feature of a product or service is comparable with other suppliers` features. This enables one to claim advantages for a particular product or service when compared with another.

Let us stay with washing machines for a while to illustrate the points. A manufacturer of a washing machine may have a faster spin drying speed than the rival products.

That is one of the features.

The advantage of this faster spin speed is clothes are drier from this
machine when compared with others on the market.

The likely benefits are convenience and possibly time saving (clothes coming from this washing machine are ready to iron). Cost and energy savings are likely benefits as the clothes will not need a further heated drying cycle - or the drying cycle will be shorter.

It is apparent from the following sales dialogues why these distinctions are so important to the salesperson.

Salesperson A `"This washing machine has a faster spinning drum`.
Salesperson B `"This washing machine can save you time and money".

The statement by salesperson `"B" obviously contains the more powerful sales appeal. It presents two potential benefits. Statement `"A" on the other hand relies on the customer translating the feature into a personal benefit. Some will do this but only about ten percent of total potential customers - not very good odds!

Selling `advantages` is better than selling `features` and increases the chance of converting a sale to a willing potential customer to about forty percent. Consider the following dialogue.

Salesperson A `"This washing machine has a faster spinning drum".

Salesperson B `"This washing machine will dry your clothes better than these other machines".

Assessing the advantages of your product is a useful step towards listing the
likely benefits that will accrue to the customer.

Clearly advantages are stronger selling points than features but they are not relevant unless the customer has already decided that they want the product or service and it is therefore comparing what you offer with what they could buy elsewhere. This is not creative selling, it is simply relying on the customers to purchase.

Relying on the customer may be all too common practice when someone enters a retail shop. This does not make it the right way to sell, retail salespeople will find the key points of consultative selling work well in shop and showroom selling.

Most salespeople have to visit potential customers at their premises. Buyers expect strong reasons for dealing with any particular company. This is often due to the fact that it is the seller that makes the first contact. The prospective customer`s level of want is lower than someone visiting the shop or showroom.

THE INTANGIBLE INFLUENCES

Earlier, I mentioned that people buy to satisfy their emotional needs as well as their logical ones. Emotional needs are the more powerful motivators. People claim that they are motivated by logic, but in fact, this is not true. There is plenty of evidence to support this argument. Why do nations go to war`? Logic dictates that most are `no win` situations. Watch barristers smile and rub their hands in anticipation when a client says that it is a point of principle. Why wear ties or shoes with high heels?

It is relatively easy to recognise human emotions at work in consumer purchases but they are also present in business to business sales. People do not leave their egos at home when they go to work.

The power of the intangible influences is particularly strong when one is offering what, at firs sight, might be seen as a near identical product or service.

A product from company `A` might be absolutely identical to that supplied by company `B`. In such circumstances the decision will be taken on emotional grounds. The most likely emotional influence is the relationship between the buyer and salesperson, followed closely by the confidence the buyer has in the reputation of the vending company.

Proof of the strength of intangible influences can be illustrated by a fairly common business situation.

If a businessman has been dealing with a friend (I mean a strong personal fried not just a casual acquaintance), how much discount below the friend`s price will a stranger have to give to get the business? Pick your own figure. In fact the answer is likely to be more than can be afforded as a discount. Over the years research has shown a typical figure of around ten percent.

When one thinks about this it is not logical that people are prepared to pay around ten percent more for service provided by people they like. Like is an emotion. The premium can be said to be the price of friendship. Of course the actin is justified by a `logical` argument, `"I know I can rely on their delivery". Or some similar justification.

I accept the other, often quoted, view that people do not like buying things from real friends. This is usually on the grounds that they do not feel able to complain as strongly as they would in the case of sub standard goods supplied by a stranger or business acquaintance. It follows that this particular resistance is more likely to occur when the prospective customer is concerned with service considerations.

As these intangible benefits are emotional in origin it is harder for the salesperson to focus on them in quite the same way as the tangible benefits.

Since emotional appeals are so powerful they are frequently used by advertising companies as the platform on which the product is sold. Many alcoholic beverages sell friends, convivial company and lifestyle rather than the drink itself.

It is not quite as easy for the salesperson to use such emotional appeals in face-to-face selling but it is very important that the salesperson is aware of the power that emotional influences have on decisions.

Often these intangible influences may not be the main reason for buying. They are commonly the reason for not buying from a particular person or organisation. In other words if their concerns are not fully satisfied the prospective customer will not buy.

For example, if you are in the market for a used car but you consider the company or the salesperson you deal with as somewhat lacking in integrity and moral worth, you are unlikely to buy.

If a prospective customer does not have the confidence they will not buy and it does not matter how good the deal might be. Confidence, image, integrity are all intangible issues that relate to our emotional needs. Companies spend millions of pounds building their images. They know the contribution this makes to goodwill.

Think how green issues now influence customer behaviour.

Public attitudes are constantly changing over quite short periods of time.

It is interesting to observe just how people`s needs, tastes, opinions and attitudes change with time.

Although we all try to give logical reasons for our actions, such logic does not withstand close scrutiny.

Consider the results of a survey of purchasers of cavity wall insulation. While the work was being carried out eighty five percent of the control group gave financial gain (fuel savings) as the main reason why they were having the work done. Ten percent said they wished to be more comfortable and five percent gave added property value as the most important point.

Twelve months after the work was carried out the control group were again asked why they had cavity wall insulation installed. Sixty five percent gave extra comfort as the prime reason for their decision. Few even mentioned fuel savings.

Please view part 2 of this free material for more information. Please click on the link to view our range of sales courses.
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