Decision Time -- Salesperson's Psychology/Techiques

Author: Linda Richardson
Translator: Haiyan Book Company
Country: United States
Publisher:
Publish Date: 2001-09-01
Features:
Phase 1, Phase 2: We can divide the sales cycle into two phases:
Phase 1: Understand the needs;
Phase 2: Meet the needs and close the deal.
Phase 1: Confirm the needs, establish credibility for yourself and your company, provide some information to gain the right to move to the second phase.
Phase 2: Utilize the information gathered in Phase 1 to develop ideas, introduce ideas or products, develop ideas with the customer, propose alternatives within the permitted scope, and make suggestions to close the deal.
These two phases may occur in one or multiple sales visits. In different transactions, the time between the two phases may span weeks, months, or even years, with back-and-forth interactions in between. Adhering to this principle helps salespeople prioritize needs over products. The simple concept of "needs first, products later" can give you a competitive edge.
In Phase 1, you may conduct one or more visits via phone or in-person. Your goal is to understand where the problem lies, what the customer wants to achieve, their difficulties, and the obstacles, along with the reasons behind them. Then, position yourself and your company to succeed in Phase 2.
Preparation is essential in Phase 1, not only to show you are well-prepared but also to add value and bridge the gap to Phase 2. In Phase 1, you can say, "We have some preliminary ideas, so we can discuss what issues your company is facing?"
In Phase 1, you can outline a few feasible solutions, seek the customer's feedback, and validate your assumptions. In smaller sales, both phases can often be completed in a single visit, while more complex or large-scale sales may require multiple visits, sometimes via phone, sometimes face-to-face, with correspondence via letters in between. Additionally, when facing complex sales, you may need to deal with different levels of personnel within the customer's company and collaborate with colleagues to grasp the core and cover all aspects.
In Phase 1, you should identify the following answers:
- What is the customer's current situation?
- What is the customer's own perspective?
- What is the customer currently doing, and why?
- What does the customer want to achieve, and why?
- What needs does the customer perceive or state?
- What needs are unspoken or (unspoken or unperceived)?
- What are the customer's difficulties, and why? What is the priority? Where do these difficulties have the greatest impact?
- What are the customer's purchasing criteria?
- What is the ideal solution?
- How can you establish credibility?
- What preliminary ideas do you have?
- How does the customer react?
Through these questions, you can gain a general understanding of the solution the customer seeks and other alternative options. You can compare these options, develop proposals, products, and suggestions, and present them in Phase 2. Phase 1 is about preparing for Phase 2, where you position the ideas, products, and proposals.
Phase 2 is when you present the proposal. Since customer needs may change, it's important to ask the customer to confirm if their needs have shifted before proceeding to the next step.
A salesperson once had a client who, after their initial meeting, completely changed their strategy a month later. The client's company had been experiencing a continuous decline in stock prices, leading to an internal decision to issue new shares for funding. However, after hearing another suggestion, they reversed their decision. Although the salesperson privately reached the same conclusion, they failed to reconfirm and reposition, so when they met again, they unknowingly contradicted their own thoughts and proposed solutions based on the client's original positioning. A week later, the client partnered with another company. The salesperson's frustration was understandable.
Many salespeople jump straight to products without fully understanding the customer's needs or even when the customer volunteers them. Sometimes, even if the customer states their needs, the salesperson ignores them because they don't align with their plan or because they've already asked other questions.
Understanding customer needs is like passing through layers of a puzzle. At first, you see the surface, but if the customer is interested in talking to you, they will quickly reveal their situation, which contains problems. The real needs lie within the problems, and the solutions the customer desires are hidden within those needs. Once you identify the needs, you can often successfully fulfill the task, but you must dig deeper.
To uncover needs, you must prepare—such as reading materials related to the company, researching the industry, and conducting comparative analyses. Additionally, you need strong questioning skills. Typically, an hour of preparation can give you a significant advantage. With sufficient preparation and prior experience, you can first outline key questions (including broad and critical ones) and perspectives, then use questions to uncover the needs.
Customer needs are always the most important, though they are not always obvious. You can't fully guess what the customer needs, so never underestimate them. Reflect on your last sales experience: Were you well-prepared? What conversations did you spark? How many questions did you ask before discussing products?
A salesperson in one of our training courses realized how low their "need IQ" was. After a role-play, they said, "Kobe Guo mentioned that he was very concerned about the company's 'IPO ability,' and I immediately started discussing the topic and trying to sell. I never asked why he was concerned or allowed him to elaborate on his worries—I had no idea what he was truly worried about, and in the end, the deal fell through. Later, I learned that his real concern was the market's poor reaction to his stock." (To learn more about effective questioning, see Chapter 9, Questioning.)
When customers cannot or will not articulate their needs, even after a successful opening and relevant questions, some may still hesitate or refuse to reveal them. In such cases, you can proactively present one or two ideas to help them open up. For example, if a customer is reluctant to provide financial information, you can offer some relevant figures and options to gauge their reaction. Some cautious customers may only reveal their true needs after receiving enough information, sometimes because they don't feel comfortable yet or because they want to test you. Others may simply be unaccustomed to consultative selling.