1 improving the sales skills of account officers

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Improving the Sales Skills Improving the Sales Skills of Account Officersof Account Officers

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What’s in it for me?

Why is it important for me to learn about selling skills?

What would I gain from learning and employing it?

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What’s in it for me?

Ensure professional and systematic approach to your work as an account officer

Improve delivery of your performance targets Produce clients that are satisfied Generate more income for the bank and thereby, increase your

chances of having better salaries and benefits

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Outline

The Sales Cycle From Suspects to Prospects Win your Clients by Benefits Selling Who’s afraid of Objections Closing the Sale Interfacing Effectively with your Client

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Typical Sales Cycle

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Prospecting

2

Sales Interview

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Negotiate

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Referral

3 Demonstration/

Proposal/

Presentation4

Substantiate

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Transaction

Closure

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Sales Cycle

The term given to a series of sequential steps that comprise a sales process.

It consists of several logical steps that a sales person(the account officer) has to do from beginning to end of the cycle.

Individually, each step within the sales cycle is called a stage.

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Sales Cycle

Each sales cycle stage has two basic components:

1) The predominant activity which is the basic task the account officer needs to perform within each stage of the sales cycle; and

2) The compression objective which refers to the desired action the account officer would like the customer to make to move the sale to the next stage.

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Stages Predominant Activity

Prospecting Determine who are “suspects” and who are “prospects”

Sales Interview Fact & emotion finding about your prospects

Demonstration/Presentation Present and reinforce the benefits of certain features of your product

Substantiate Establish credibility which gives your customers confidence and comfort in purchasing your product

Negotiate Keep the negotiations going until sale is close

Transaction Closure Get the commitment of the customer

Referral Gather other leads

Typical Sales Cycle

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The Sales Cycle for a Microenterprise Loan Product

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Loan Disbursement

2

Client Orientation/Loan Application

3

CIBI/Cash Flow Analysis

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Credit Committee

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Present Loan Package & Close transaction with Customer

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Prospecting

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Ask for a Referral

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Exercise: Knowing your MF Loan Product Sales Cycle Stages

Sales Cycle Stage Predominant Activity Compression Objective

1. Prospecting

2. Client Orientation

3. CIBI

4. Credit Committee

5. Negotiation/Close sale

6. Loan Disbursement

7. Referral

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PROSPECTING

“From Suspects to prospects”

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PROSPECTING

The first stage or beginning of the sales cycle.

The predominant activity here is to determine who are the prospective clients and getting as much information as possible about them.

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PROSPECTING

3 important elements present in a qualified prospect:

1. The authority to make a buying decision.

2. Control over the budget.

3. A need or want for your service or product.

If one of these elements is missing, then what you have is just a suspect.

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Prospecting

Steps in identifying potential customers

Leads

Individuals who possibly fit your loan product’s client

eligibility criteria. Prospects

Those that have already an interest in the product Qualified Prospects

Those that want the product, can afford to buy it and have the authority to make the purchase decision.

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Prospecting

Do you really know your prospect?(Understanding market segmentation and target selling)

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Prospecting

What is market segmentation?

The process of breaking your market into sub-markets of homogenous dimensions or characteristics.

Market characteristics include: market size, number of competitors, profitability, life cycle, geographic locations.

Buying behavior includes such actions as: frequency of purchase, brand loyalty, urgency, motivation, price importance, quality perception.

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What is Target Selling?

What is Target Selling?

This consists of using due diligence to learn about each prospect within the market segment and identifying target accounts that you wish to become your customers.

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Steps to Segmenting your Market

Step 1: Identify your overall market and assign a

name to it.

OverallMicro-enterprise Sector

Market

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Step 2: Divide your overall market into sub-

markets by the nature of their business

activities.

Wholesale & Retail Trade

Sector

Services Sector

Manufacturing Sector

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Step 3: Then further divide the sub-markets by micro-enterprise activities. List as many activities as you can think of.

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Do you really know your prospect?

Market Segmentation Exercise

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The various micro-enterprise activities can be analyzed and grouped according to:

1. Market Segment Size (how many are there of

specific ME’s in the area?)

2. Size of Operation(Is the business operation classified

as small, medium, large?)

3. Business Cycle(Does the product/service have a fast

turn-over? Does it experience seasonality/trends?)

4. Geographic locations(how far are the ME’s from the

bank’s branches?)

5. Potential Risks

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Step 4: Having identified the various micro-enterprise activities, you can now start taking a look at your

trade area or your geographical area of assignment and locating them.

It would help a lot if you have a listing of the establishments in your area, either from the Municipal Planning & Development Office, Municipal Treasurer’s Office and Market Administrator’s Office. The Barangay Office is

also a good source of info for community-based enterprises.

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Step 5: Once you have studied and analyzed the

various micro-enterprise activities in your area of

assignment, you can start doing your

prospecting list.

Use the suggested Weekly Prospecting List Form.

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Weekly Prospecting List FormABC LOAN PRODUCT

WEEKLY PROSPECTING LIST Week 1 :January 5-9, 2004

1. New Accounts

Market Segment: Wholesale & Retail Trade Sector

Name of Business

Address Projected

Loan Amoun

t

Call Date

Follow-up Date

Remarks

1.2.3.4.5.

Prepared and Submitted by: _______________________________________ Signature over Printed Name of Account Officer _______________________________________ Date of Submission *To be prepared in duplicate copies; 1 for the account officer 1 for the MF Supervisor

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Step 6: Having studied the micro-enterprise sector well, it

is also expected at this point that your bank has

already formulated a Unique Selling Proposition

(USP) intended for this sector.

USP is characterized as a series of factors that

competitors cannot claim for themselves. This is

something that differentiates your products/

service/organization from your competitors.

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USP gives the customer or prospect the best

reason why s/he should buy from you rather than

your competitors.

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Some examples of USP

Our bank is known for its fast service. Our bank is open to serve you 7 days a week. Our bank is known as for its friendliest account officers. Our bank is your one-stop shop for financial services.

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“It is a game of numbers” Know your ratios and strive to improve them Quality prospects Make every day a prospecting day

Some things to remember about prospecting

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The Client Orientation or Sales Presentation

“Benefits selling: the heart of a winning presentation”

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Client Orientation

The client orientation is comparable to the

sales presentation stage of a sales cycle. The predominant activity of this stage is to

teach your customer the benefits of doing

business with your bank. The objective here is to be able to sell the

product’s benefits and that the client takes the step to apply for a loan.

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Selling Benefits: The heart of a winning presentation

Buying Motive

- The reason why a product user buys.

- It is his/her motivation to buy and own a

specific product.

- The buying motive must always be the focus of the

selling activity. A client will be motivated to “listen” if

the discussion on the product will meet his/her

objective in buying.

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The Buying Market

1. Effectiveness

2. Supply

3. Convenience

4. Availability

5. Pride

6. Economy

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FEATURES:

An element of a product that delivers a benefit. It is the inherent characteristic of a product. It is the quality that makes it competitive with other lines. It always answers the question “what is it?”

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BENEFITS:

It is the performance of the product to promote the well being of the user.

It answers the question “What can it do for me?” (WIFM)

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Some examples:

Feature Benefit

Airbags Lowered risk of serious injuryLarge type Ease of readingDigital recording Hiss-free listeningSoft leather sneakers More comfortable walkingMercedes Benz logo Increased self-esteem based on

status

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BENEFITS WRITING EXERCISEConverting your loan product features into benefits

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Handling Objections

“Overcoming objections

in a Planned Manner”

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Handling Objections

Process:

Step 1. Hear the full objections(listen before reacting)

Step 2. Make an accurate diagnosis

Step 3. Review the objection with the client

Step 4. Answer with proof (whenever possible)

Step 5. Seek agreement with the client that his

objection has been answered and

overcome

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Handling Objections

Methods in Handling Objections

“YES-BUT” METHOD BOOMERANG METHOD QUESTION METHOD COUNTER BALANCED METHOD THIRD PARTY METHOD DIRECT DENIAL METHOD

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Handling Objections

1. “YES-BUT” METHOD

The account officer acknowledges understanding of why the prospect is making the objection and then shows the prospect why he does not have adequate information.

2. BOOMERANG METHOD

The account officer using this method turns the objection into a reason for buying.

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Handling Objections

3. QUESTION METHOD

The account officer prods the prospect to answer his own objection by asking him a series of question.

4. COUNTER BALANCED METHOD

The account officer uses this method when the prospect’s objection is valid and cannot be truthfully denied. However, it can be compensated for by some other overbalancing benefit.

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Handling Objections

5. THIRD PARTY METHOD

The account officer can answer a prospect’s objection by calling on the testimony of a third person.

6. DIRECT DENIAL METHOD

The account officer uses this method when the prospect leaves you no other choice. If the salesperson has been generally pleasant and agreeable throughout the interview, his denial will be all the more convincing.

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Handling Objections

Overcoming Objections Activity

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CLOSING THE SALE

Objective: To know when to close the sale

When to close the sale (situations) When the client agrees to the answer to his objection When the client is sold on the benefit of the product When non-verbal signs show satisfaction with the

product When the client offers a hidden benefit of the product When all sales resistance shown by the client is

contained

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How to close

Step 1. Shoot a temperature question

A temperature question will seek the real feelings of the client about a product proposal. The account officer has to review the benefits which can really convince the client to buy. In short, the

client is sold or half-sold on the sales proposal.

Step 2. Close the sale

Step 3. Leave with a reminder

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CLOSING THE SALE

Things to remember:

1. Closing is the name of the game.

2. Business requires new money coming in or it fails. Therefore, CLOSE MORE SALES.

3. Closing is sweet success.

4. A CHAMPION has the habit of closing sales most of the time.

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ASK FOR A REFERRAL

Somewhat a new concept in looking at a sales cycle.

Closing the sale is your PAYCHECK; a referral is your BONUS.

A referral, especially coming from a good client, can be your number one prospecting tool.

Referral actually shortens your sales cycle.

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Interfacing Effectively

HOW TO APPROACH

DIFFERENT PERSONALITY TYPES

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Appeal to the personality types of your customer.

LOGIC provides the REASON to justify the purchase. But buying decisions always include a PERSONAL

COMPONENT that provides the MOTIVATION to take action.

By using WORDS & PHRASES in your presentation that respond to the PERSONAL NEEDS of the customer’s PERSONALITY TYPE, you build the FEELING that are necessary for a purchase to take place.

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PERSONALITY TYPES

CONTROLLER

INTELLECTUAL

EXPRESSIVE

PASSIVE

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TRAITS: CONTROLLER

Blunt, direct, impatient Task accomplisher Bottom line results Control oriented, self & others Self-motivated, hard worker

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TRAITS: INTELLECTUAL

Detailed, precise, lengthy Gathers information Defines, clarifies, tests Neat, meticulous, organized Comprehensive steady worker

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TRAITS: EXPRESSIVE

Friendly, gregarious, talkative Stands out, colorful Creative, imaginative Generates excitement Initiates activity, motivates

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TRAITS: PASSIVE

Conservative, low key Dependable, loyal, patient Team worker, agreeable Practical, blends in well Reconciling, good listener

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Approaches to the Different Personality

Types

CONTROLLER INTELLECTUAL EXPRESSIVE PASSIVE

PERSONAL NEEDS

To have control, obtain results

To be an expert, to be right

To be notice, recognized

To have agreement, acceptance

MOTIVATION Get the job done, save time, higher productivity, gain

Make the right decision, have

definable reasons

Receive recognition, be noticed, be first, have the best

Have agreement,

stability, help fellow workers

SALES APPROACH

Get to the point, provide

references, sell staff, give

guarantees

Present data, details, show studies, make comparisons

Refer to new, state of the art, admiration of

others

Develop rapport, provide

references, sell staff, give

guarantees

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To what personality types will these statements appeal to?

1. “Let’s get this purchase order out so you can start making money. It will also give you control over the entire process.”

2. “This is going to be a big benefit to your staff. They will all benefit from it and they are going to appreciate you for moving ahead on this purchase.”

3. “Let’s get this purchase now so you can lead the pact on this. Everyone’s going to know who is using state of the art.”

4. “The studies show it’s best, nobody can argue with that. You are going to be the expert after this purchase.”

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References:

Jim Kasper, Short Cycle Selling, McGraw-Hill,2002 Jay Levinson & Seth Godin, The Guerilla Marketing Handbook,

Houghton Mifflin Company, 1994

1 improving the sales skills of account officers

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