7 habits of highly effective salespeople

7 Habits of Highly Effective Salespeople

March 28, 2011

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Time

Evaluation Initial Purchase Repeat Purchase Disillusionment

TotalSales

Sales Covers the Customer Lifecycle

Prospecting Opportunity

Planning &Tracking

Customer Management

Channel Management

Sales Planning

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Overview of the Seven Habits

1. Seek to understand2. Adopt a sales process3. Learn to love prospecting 4. Know your products5. Find pain and deal with it6. Learn to love technology7. Invest in your customers

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Habit 1. Seek to Understand - Yourself

Selling is the combination of attitude, behavior, technique

Overcome the fear of rejection Be resourceful Build credibility Measure progress Prepare, prepare, prepare

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Habit 1. Seek to Understand – Your Customers

Who are they? How do they buy? Who are the buying

influences? What adds value to

their business?

One thing that we’ve discovered with certainty is that anything we do that makes the customer more successful, inevitably results in a financial return for us. - Jack Welch – former Chairman, General Electric

One thing that we’ve discovered with certainty is that anything we do that makes the customer more successful, inevitably results in a financial return for us. - Jack Welch – former Chairman, General Electric

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Habit 1. Seek to Understand – Buying Influences

Five Buying Influence types affect the purchase decisionEconomic BuyerTechnical BuyerUser BuyerCoach/ChampionDominant InfluencerAdapted from Miller Heiman, Inc.

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Habit 2. Adopt a Sales Process Prospects have a buying

process You should have a selling

process Create your sales process

Align with your prospect’s buying process

Steps, activities, and deliverables Create, document, and share it

Explain your process during discussions & presentations

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Habit 2. State Your Value Proposition

Constructing your value propFor (target customer)

+Who (statement of the need or opportunity)+The (product name) is a (product category)+That (statement of key benefit - that is,

compelling reason to buy)+Unlike (primary competitive alternative)+Our product/service (statement of primary

differentiation)

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Habit 3. Learn to Love Prospecting

Sales = # opportunities x close ratio (NOxCR)Sales = # opportunities x close ratio (NOxCR)

Lead Generation & Prospecting

Repetition & Training

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Habit 3. Learn to Love Prospecting – with ReferralsBest source of leadsPre-qualified credibility3 reasons for no referrals

Not WOWedDoesn’t know you want

referralsCan’t explain your

differentiation/Value PropBe generous giving

referrals

Customer Referrals

53%

Print Advert.

19%

Direct Mail15%

Trade Shows

13%

$ $

Proof Trust

DiscussRelationship

MeetAwareness

Prospecting Pyramid

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Habit 4. Know Your Products Value proposition (elevator

pitch) Use reference stories to build

credibility Know how your products

solve pains Provide proof to build credibility

and reduce buyer’s perceived risk

Help calculate a return on investment

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Habit 4. Sell the Total ProductCore

ProductExpected Product

Augmented Product

Possible

Product

Adapted from Marketing Imagination, Theodore Levitt

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Habit 5. Find Pain and Deal With ItDifference between

reality and expectations

The more the betterBuyer must admit

painProduct features and

benefits are only important to you!

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Habit 5. Understand the Impact of the PainHow much does this cost per year?Whom does it impact?Who will be involved in fixing this

pain?When does the pain need to be

fixed? What happens if it doesn’t get fixed?Does a budget exist to pay for it?

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Habit 5. Focus on Solution to PainPaint a picture of your solution solving their painA benefit is one that addresses a prospect’s painSeek to create life changing eventsProducts belong in your back pocket“What if …” , “Would it help if ...”Prepare by creating Pain Sheets

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Habit 6. Learn to Love Technology

Automate non-value added activitiesChoose a level appropriate for your

businessMaximize customer touch

timeImprove retention

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Habit 6. Technologies to Adopt

Nice to haveiPhone, iPad,

BlackBerryCorex CardScanDymo LabelWriter

PIMOutlook

Palm Desktop

PIMOutlook

Palm Desktop

Contact ManagerACT!

Outlook BCM

Contact ManagerACT!

Outlook BCM

CRMMicrosoftSalesLogixGoldmine

CRMMicrosoftSalesLogixGoldmine

Enterprise CRMSalesForce

SiebelSAP

Enterprise CRMSalesForce

SiebelSAP

IndividualsTracking contacts,

appt, tasks

Multi-dept.Sharing, collaboration, up-sell,

cross-sell

Small groups.Manage notes,

history of contact

Get Rid of Your Addiction to Paper!!!

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Habit 6. Technology Implementation2/3 Process, 1/3 TechnologyDefine your objectivesA well defined implementation

process increase probability of success

Assign the right people

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Habit 7. Invest in Those Who Bought From YouA satisfied customers is your most valuable assetsInvest in them

A 5% improvement in customer retention rates

will yield between a 25 to 100% increase in profits

60–80% of lost customersreport to be Satisfied

or Very Satisfied prior to defecting

2/3 of customers leave because

they feel neglected

It is 6-7 times more expensive to acquire customers than retain them

It is 6-7 times more expensive to acquire customers than retain them

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Habit 7. Insurance for Best CustomersInsure your most valuable assets (invest

in your customer relationship)About 20% of accounts provide

about 80% of profits – ‘A’ customersCalculate the lifetime value of ‘A’

customersSpend accordinglyBuild a system for staying in touch