Completion and Partnering

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CHAPTER 11

• Completion and Partnering

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Overview

• Test 2 Discussion
• Lecture over Chapter 11
• Peer Review of Teaching Discussion
• 20 Minutes
• Feedback from You for Better Understanding and
  Improvement
• End of Class

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Test II and Grades (001)

• 7.5 Points ( 24, 27, 42)
• 99.0 Points (79.2)
• Look Over Tests and Test Questions at the End of
  Class on Next Tuesday (John Jolliff Thursday)
• TODAYS Letter Grade on Gradesheet
• A 100-88.8
• B 88.7-75.2
• C75.1 and Below

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Points Remaining

• Quiz 6 (50 points)
• Extra Credit (50 Points)
• Counts as a seventh 50 points Quiz
• Take 7, Drop 2 instead of Take 6, Drop 1
• Five Paragraph Essay II (125 Points)
• Cumulative Final (250 Points)
• Total 375 Points plus your Quiz/Extra Credit

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Quality in a product or serviceis not what the
supplier puts in. It is what thecustomer gets
out and is willing to payCustomers pay only
for what is of useto them and gives them
value.Nothing else constitutes quality

• Peter Drucker

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Traditionally, the "close" has been the logical
conclusion of a sales presentation
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The Completion Partnering Steps

• The close is really an open
• The time to complete the transaction and the
  opportunity to "open the door" to what could be a
  mutually profitable, long-term business
  relationship

A Partnership!
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Outcomes of a Presentation

• Regardless of the outcome of any one sales
  presentation, there is more work to be done
• A prospect buys and becomes a customer
• A customer buys again (re-buy situation)
• A customer or prospect makes no purchase but
  requests additional information
• A prospect expresses no interest in working with
  the salesperson's company

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The Salespersons Mentality

• Closing
• Completion
• Partnering

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Closing Mentality

• A closing mentality focuses strictly on the
  transaction as the end result of a sales
  presentation
• Closing questions ask for a definite, immediate
  decision, triggering one of the following
  responses
• A decision to buy
• A reason for not buying
• A request for additional information

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Nature of the Traditional Sales Close

• A real issue in closing is the anxiety,
  hesitancy, or inability of human beings to make
  decisions
• Most salespeople are afraid of rejection
• Their minds sometimes jump to possible negative
  consequences, creating a negative attitude

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The Salesperson Should Rejoice!

• The salesperson has made it through all the
  previous steps
• He should be positive and confident at this stage
• Completing the transaction should be the easiest
  of all the steps in the process
• It is the next logical thing to do

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When It Is Time To Close

• A salesperson should do the following
• Look
• Lower
• Lean
• Shut Up
• Nod, and
• Smile

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Traditional Closing Techniques

• Professional salespeople often use more than one
  technique during a presentation
• Salespeople should pick the techniques with which
  they feel most comfortable

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Employing Closing Techniques

• Why should salespeople employ closing techniques?
• Many prospects find it difficult to make
  decisions
• Prospects want to make the right decisions, but
  complete certainty in buying never exists
• Many prospects will postpone decisions if
  salespeople let them
• After a sales presentation, prospects often feel
  confused and hesitant

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The salespersons goal is to explain/demonstrate
how the benefits of the product or service
outweigh the risks associated with buying
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Traditional Closing Techniques

• Asking for the Order
• Assumptive Close How Should We Bill You?
• Alternative Choice Close Three or Four
  deliveries?
• Summarizing the Benefits
• The Weighing Close Pros and Cons
• The Probability Close
• Power Questions Any real reason Why You
  Shouldnt buy?
• Continuous Yes
• Standing Room Only

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Traditional Closing Techniques

• Reserving an Advantage BTW, We Also
• Single Benefit Close Were the Only One
• Similar Situation Close
• Price Reduction Close Value in Use
• Suggestion Close Many are Already Satisfied
• Alternate Source Close Eggs Not in One basket
  
• Asking for a Trial Order
• The Takeaway Close

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Cautions About TraditionalClosing Techniques

• The goal of closing techniques is to make it
  relatively easy for the prospect/customer to
  decide to buy
• Although traditional closing techniques can be
  effective under the right circumstances,
  salespeople should use them judiciously

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Completion Mentality

• A completion mentality emphasizes the point that
  all sales presentations must reach some type of
  conclusion, which may or may not result in a
  transaction
• On average, it takes five sales calls on a
  business prospect to complete a transaction

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If a Sale Is Made

• Before leaving a customer who has agreed to a
  sale
• Show appreciation for the customer's business,
  but do not gloat
• Reassure the customer that the decision is a good
  one
• Solicit sales leads
• Complete all necessary paperwork, and finalize
  the details
• Be sure to leave with a good understanding of the
  customer's expectations

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If a Sale Is Not Made

• When a sale is not made, the salesperson still
  has duties to perform
• Duties to the customer
• Duties to the sales organization

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Customer-Related Duties

• The major objective of all postcall activity is
  to maintain and increase customer goodwill
• This process has two aspects
• Terminating the interview
• Possibly providing service

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Terminating the Interview

• Salespeople must learn to respect customers
  decisions and should engage in the following
  activities before making a prompt exit
• Accept the prospect's decision graciously
• Say "thank you" for the prospect's time and mean
  it
• Establish good rapport with the prospect
• Do not tarry

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Three-Minute Drill

• After Rejection
• What Steps Should Thaldorf Take Now?

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Providing Service

• There are at least four areas in which
  salespeople may be of service
• Handling complaints
• Order expediting
• Adjustments, returns, and allowances
• Information

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Organization-Related Duties

• When the sale is not made
• The salespersons duties include the
  documentation of the sales presentation and the
  assembly of information useful to the
  organization
• When the sale is made
• The salesperson plays a key role in consummating
  the exchange transaction

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Partnering Mentality

• A partnering mentality changes the salesperson's
  primary goal from one of just completing the
  transaction to one of beginning a partnership
  with the prospect

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Partnerships

• In a partnership, both the seller and the buyer
  perceive a need for the relationship, and each
  values the other
• Benefits of a partnership
• Quicker response to change
• Cost savings
• Agility in meeting customer needs
• Increases in sales
• Quicker identification of problems and
  opportunities

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Mistakes Made in Forging Partnerships

• Cutting a deal that favors the selling
  organization too much
• Lacking an exit strategy
• Failing to plan
• Partnering in isolation
• Seeking quick partnerships
• Creating ideas and solutions while thinking on
  one's feet
• Not being able to walk away

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Figure 11.2True Partnering
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The Nature of Partnering

• Partnering is a way of doing business that helps
  salespeople and buyers work together to achieve
  mutual and individual goals
• Traditional closing methodologies that are
  transaction-oriented and often pressure buyers
  are not appropriate in partnerships

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Figure 11.3 Elements of Customer Relationships
Clear Expectations
Mutual Goals
Excellence
Understanding
Execution/ Responsiveness
Communications
Trust
Commitment
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Perspectives on Partnering

• If the exchange is to be consummated, salespeople
  must provide leadership to help prospects make
  decisions
• Building relationships involves a shift in
  emphasis from persuasion to motivation
• Salespeople must help prospects make the
  long-term commitment to purchase

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From the perspective of relationships, two things
are critical

• Failure to reach a decision is never fatal!
• Success is never final!

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Partnering versusOther Sales Approaches

• Transaction-focused
• A single sale is the focus
• Product-focused
• Product solutions are the focus
• Business-focused
• Multiple product solutions that address larger
  business problems are the focus
• Partnership-focused
• Multiple business-focused presentations with the
  intent of solving multiple business-wide problems
  are the focus

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Figure 11.4Transaction RelationshipBandwidth of
the Agile Salesperson
Complexity of Relationship
Source Adapted from Dunn, D. T., and C. A.
Thomas (1994), Partnering with Customers,
Journal of Business and Industrial Marketing,
9(1), 3440.
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Account Management and Partnering

• Salespeople must develop partnership relations
  selectively
• Extend account bandwidth in both the
  transactional and partnering directions
• Craft relationship strategies that more closely
  meet the requirements of customers

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Figure 11.5Managing Account Bandwidth
A Partnership B Individual Transactions
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Basis of The Relationship

• Transactional customers
• Core product/service
• Unbundling of product/service offerings
• Most interested in price
• Partnership customers
• Augmented products
• Bundling of product/service offerings

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Unbundling

• Unbundling is focused on taking away the
  product/service features that the customer does
  not need or want to meet demands for lower prices

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Bundling

• Bundling is focused on offering augmented
  products/services to meet specific customer needs
  and wants that go beyond the basic capabilities
  of the core product/service

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Customer Equity

• Customer equity is the value of a complete set of
  resources, both tangible and intangible, that
  customers invest in a supplier firm
• Tangible investments include products, services,
  and money
• Intangible investments include commitment and
  trust

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Becoming the Preferred Supplier

• The best way for salespeople to become preferred
  suppliers is to build such a high level of
  goodwill that customers always think of them and
  their sales organizations first

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Salespeople are an integral part of the total
package provided to customers
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Review/Preview

• Today
• Test II Review
• Chapter 11 Completion and Partnering
• Peer Review of Teaching
• Thursday
• Guest Speaker John Jolliff

47
Test II and Grades (002)

• 7.5 Points ( 24, 27, 42)
• 101.9 Points (81.5)
• Look Over Tests and Test Questions at the End of
  Class on Next Tuesday (John Jolliff Thursday)
• TODAYS Letter Grade on Gradesheet
• A 100-88.3
• B 88.2-76.7
• C76.6 and Below

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Quiz 6

• Multiple choice
• Five Questions (50 points)