The comparative test

The next test of proposition is to find out how it compares with your competition? What are real advantages to customer of your proposition against competition? What are values of your company and proposition versus competition? How do these values support and relate to marketing claims of product or service? How do these values support price? The elevator test

This is 30-second explanation as to why customer should invest his time in listening to your proposition. The sales person should really be able to pass this test. It should feel both natural and smooth. The salesperson should ooze confidence, enthusiasm and knowledge as to what’s advantageous and distinctive about your company, product and services.

Why not try this out with three people from your organisation to see what happens? The question could be: “Tell me very briefly why I should buy from your company?” Remember they should be able to support their claims with strong proofs if asked to do so.

The reference and proof test

How many of your salespeople have information to hand about positive reference stories supporting claims of proposition? The stronger proof of proposition stronger case for it to be accepted. The spectrum of proof varies from weakest, which is an unsupported verbal claim, to proof of someone with credibility personally using product or service.

This reminds me of a true story about a glass company that launched a new range of toughened glass products. The product was given to all salespeople but one particular person achieved disproportionate sales success. The Managing Director called him for a discussion to find out why he was so successful. He explained that after finding out what customer needed he presented his proposition and took out a large hammer from his briefcase, put glass on table, and hit it as hard as he could. This proof convinced customer to buy by supporting claims of proposition.

The Managing Director in response bought all sales team hammers and built this process into their sales approach, but at end of second year same salesman sold more toughened glass than any other salesperson.

He was again called into Managing Director’s office to explain what he was doing to make him top salesperson again. The salesman replied “I knew you would be supplying all salespeople with a hammer so I considered how I might make my proof stronger. I decided I would take hammer out of case put glass on table and ask customer to hit glass with a hammer”. Can you see power of proofs in convincing customer to buy?

The pricing test

How many salespeople and business managers can defend price of their product or service by understanding and articulating proposition supported by advantages, proofs and value to customer? The greater value of product or service to customer easier it is to protect price and retain profit margin. Remember (V) Value Added to customer = (B) Benefits minus (C) Cost.

How many companies set their pricing by looking at value of proposition being delivered to customer? I have attended many meetings where Finance Director sets pricing based on profit margin he requires rather than looking at value to customer. Concentrating on preparing, well-constructed propositions can add significant profit to bottom line and increase customer satisfaction by convincing customer of real value of purchase.

The differentiation test

Why is your product or service different to competition’s? The more differences you have that are advantageous to customer more you can place a premium on price. If you can’t highlight any differences why should customer buy from you?

Summary

If your sales people, business managers and directors are unable to understand, articulate and present your sales propositions in a professional, consistent and coherent manner with knowledge and enthusiasm then your marketing investment may be leaking like a burst water pipe.

A professionally crafted sales proposition that is delivered to customers in a consistent manner, with thought and enthusiasm, supported by knowledge and understanding of product or service as to how it will be of advantage to customer will increase sales, profitability and increase return on your marketing investment.

·Who has responsibility for Sales Propositions within your organisation? ·How well constructed are your Sales Propositions? ·How good are skill levels within your organisation in terms of understanding customers’ needs and wants and presenting your sales propositions in relation to those needs and wants in a way which conveys real, quantifiable business value? ·How do your propositions match those of competition? ·How does value of your product or service to customer support your pricing? ·How do you set pricing of your products and services? ·What actions are you going to take improve quality and delivery of your Sales Propositions?

5. Summarise customer needs and wants

Before presenting your idea, product or service, summarise customer’s needs and wants using following structure: ·Thank customer for giving you information ·Ask them if it would be helpful to summarise key points to check your understanding of their requirements ·Feedback key points from your notes if appropriate (the customer will probably correct any misunderstandings en route) ·Check that you have a reasonable and accurate understanding and ask them if they have anything to add.

6. Present relevant propositions

Based on accepted summary, only present ideas / products / services that are relevant to customer. Link advantages of your propositions to customer’s needs and wants. Avoid ‘pitching’ of irrelevant propositions. Emphasise benefits — ‘pay-offs’ in relation to their needs and wants. As you present, test customer's commitment, e.g. “how’s it sounding so far Mr Brown?”

7. Have relevant proofs to hand

Through above process you will generate a good match between customer’s requirements and your offering. To gain customer’s commitment you need to develop their belief that your solution will work. Your claims need substantiation or evidence to overcome any customer doubt or scepticism. Good examples of proofs are: customer references; case study materials; charts; brochures; product information sheets; press releases etc.

8. Expect objections and prepare for them

Objections are a sign of genuine customer interest. Without them, sales are rarely made! It’s imperative that we unearth any objections as one to fear most is one we don’t know about! Most objections raise their heads regularly and can be anticipated. Get together with your colleagues and develop ‘best of breed’ answers.

9. Develop an information base

Unless you are dealing with a ‘one-off’ contact / sale, develop an information base on company / individual. Whether on a sophisticated CRM system or on ‘shoebox’ record cards, keep details of all previous conversations, in particular their needs and wants. Develop a check list of background information you would like to collect for each customer. Use this as an aide memoire for questions to be asked in conjunction with ones required to define needs and wants for your offering.

10. Follow-up and keep initiative

Every “no” gets you closer to a “yes.” Based on your conversion ratios and average sales value work out how much each “no” is worth. It can be quite motivational! A “no” today is not necessarily a “no” forever. Gain customer’s commitment to next stage even if it’s only to take a follow-up call in 6 months. Never rely on customer to come back to you (usually they don’t). Keep control of sale and keep momentum going. If all else fails, qualify customer out and get on with something else. This in itself is a win.

In summary, our experience is that you will ‘sell-up’ and ‘cross-sell’ more effectively by following these practical guidelines. Furthermore, evidence strongly indicates that customers will more readily buy into your company’s added-value across-the-board if you successfully integrate guidelines into your sales approach.