06/ 03/ 2005
by Jeffrey Moses
Speaking broadly, you can think of every sale as having four distinct phases. These phases sometimes blur into one another, or course, as the interaction between two or more individuals proceeds. But in general, the phases can be described as follows:
1. Research. Sales success begins with an understanding of the customer’s unique situation, needs and ability to buy. The more a sales person can understand the customer, the better the chance for successfully completing a sale.
For example, when selling equipment, researching a customer’s needs might include finding out about:
- The equipment the customer currently has
- Why the equipment needs to be replaced or added to
- Problems with the current equipment
- Specific future uses for additional equipment purchased
- Problems that need to be solved by a purchase
- Volume or quantity the new equipment will be required to handle
- Funds available for purchase
When these factors and others have been analyzed, the next step is to determine how the products the salesperson has available will meet these needs. A key element in this step is to become aware of differences in price and features between the equipment the salesperson can offer and what the competition has available.
2. The Presentation. In this phase, the salesperson meets with the prospective customer to discuss everything determined in phase 1. The more completely and accurately the salesperson can show why his or her company’s products address all the customer’s needs, the more compelling the presentation will be.
The presentation phase consists of describing how the customer’s needs will be met, and answering questions (objections) put forth by the customer. Every question or objection should be thought of as an opportunity to demonstrate how the products offered will fill a need, solve a problem, increase profitability, speed up work, etc.
3. The Close. Volumes have been written about closing techniques. Most successful sales veterans continually study these techniques, perfecting their style and ability.
Ideally, the closing phase is a natural extension of the presentation phase (which of course is a natural extension of the research phase). When all questions and objections have been addressed, the salesperson needs to say or do something that finalizes the sale. In other words, something needs to be done so that the customer can formally end his or her search for what will solve the needs or problems under consideration.
Closing techniques include:
- Assuming the Sale (“We’ll start delivery on that right away, if you’ll just sign right here.”)
- Closing with a Choice (“Do you want the 100 horsepower or the 125 horsepower model?”)
- Asking the customer to take some action that implies acceptance (“Sign right here and we’ll start arranging delivery.”)
These and dozens of other closing techniques are proven ways to allow a customer to acknowledge that the sale has been finalized.
4. Post-sale Activities. After a sale has been completed, a salesperson needs to immediately focus on two things:
- After-sale services, such as timely delivery, installation, employee training on new equipment, etc. The better this post-sales aspect is handled, the more likely a customer will be to make repeat sales.
- Minimizing buyer remorse. It’s natural for customers to temporarily regret or question their purchasing decisions. They may ask themselves: Did I pay too much? Could I have gotten something that would have been better for my purposes? What if this doesn’t work and I look foolish? By realizing that a customer might experience this phase (and might even cancel the sale because of it), a salesperson should address the problem before it grows stronger. Reiterate the wisdom of the purchase, how the purchase will meet needs and solve problems, and how the purchase ‘fits the bill’ and will make the buyer look good.
Every sale has some element of these four phases. Corporate sales may allow a salesperson to fully engage in all phases (extensively researching, having a face-to-face presentation with decision makers, using closing techniques and following up with post-sales activities).
Direct mail and print ad sales also involve each of the four phases described. The research phase is carried out by locating the most likely target markets (using appropriate mailing lists or types of magazines, for example), writing ad copy that demonstrates how the product or service being sold will solve a problem or address a need, writing a “call to action” that encourages people to mail a check or call in for a credit-card purchase, and following up sales with excellent service that solidifies the sale, encourages future sales and minimizes buyer remorse.
