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S. Peterson: I did not write
the original statement that I received, however I posted it and made
several references for indie labels to see how this very information can
be useful to them too. This column was wrote for anyone trying to sell
anything and can definitely be applied to your musical strategies. You be
the judge. Many small business
people have great ideas for products or services, but don't want to sell
or don't know how. They've defined their target market and how to reach
it, and have mastered the financial aspects of running a company. However,
often missing is a clear understanding of the sales process - or the
willingness and ability to initiate successful sales conversations, and
not get stopped by people saying "no."
What is it about selling that makes so many
entrepreneurs shudder, especially those
who are the sole salesperson for their firm (or
label)? Very often they are affected by preconceived notions as to
what selling is (adversarial,
difficult, manipulative). Or they have a strong fear of rejection
when a prospect says "no," they take it personally.
Letting these negative ideas get in the way of
selling is one way to ensure your venture will fail.
After all, if you don't make sales, you don't have a business, no matter
how good a product you have, or how well you've done your marketing.
There is a way to sell that is positive, rewarding and enjoyable. And it
helps handle that fear of rejection as well. It's called relationship
selling, and is the way effective, professional salespeople have always
operated. In fact, Dale Carnegie started delivering this message 78 years
ago.
Relationship selling applies to any kind of business, whether
retail or business-to-business, product or service.
While the steps to the sales process may vary slightly for each type, the
over all theme of building relationships is consistent throughout.
Traditional vs. Relationship Selling
Most of the existing negative opinions and
fears about the sales process are based on a traditional, formula method:
memorize 10 different ways to get an appointment, 40 kinds of closes, 20
ways to handle objections, etc. While these techniques can be very
useful, they may also get in your way if used without first building a
relationship with sales prospects.
When many small business people think about selling, they have a
stereotypical image of the used car salesman or the aluminum siding
huckster as played by Danny DeVito in "The Tin Man." Characters such as
these operate in a win/lose mode - an exchange where the seller tries to
trick, persuade or coerce the customer to buy. In contrast, relationship
selling is a win/win game. If the product or service being sold truly
meets the needs of the buyer, both parties benefit as a result of the
sale.
Today's customers have become more sophisticated and demanding of higher
levels of customer service than ever before. They want someone they can
trust who understands their needs and wants (As
far as music). This is particularly important during slow
economic times (especially for indie labels),
when most people make buying decisions, even small ones, very carefully.
Also keep in mind that the best sources of new business are existing
customers and referrals from these customers. To help ensure the success
of your venture, take the time to build relationships with your customers,
rather than just focusing on making the immediate sale. Although
relationship selling may take longer to produce results, it is definitely
worth it in the long run. You will be well rewarded with high levels of
repeat business and referrals from happy customers.
Build Trust
People tend to do business with those they
like and trust. Look into your own buying experiences. Have you ever
walked away from a transaction because you did not trust the salesperson
to deliver what was being promised, or because you just plain didn't like
the man or woman? And conversely, haven't you found yourself going back
again and again to do business with helpful and honest salespeople?
How do you build trust in a business environment? Let your prospects and
customers get to know you (or at least what you're
about). Make sure they understand why you started your business,
and why you believe in your product or service (or
music). You might also get involved in industry or neighborhood
organizations where you can meet your prospects and customers in a
different environment. They can experience another side of you, and get
to know you as a person, not just as a vendor. While you are still
selling the benefits of your product or service, you are also selling
yourself.
Another way to build trust is to keep your word.
From follow-up calls to delivering on time, keeping your word can be one
of your most powerful sales tools. Of course unexpected things do happen,
and sometimes you cannot keep your promises. When this occurs,
communicate with your prospect or customer, and inquire whether the change
is workable and what you can do to lessen the inconvenience. That way,
you keep your trust level intact, or may even strengthen it as a result.
Focus on Filling Customers' Needs
The better your product or service fits
your customers' needs, the more sales you will have. When customers know
you sincerely care about what they want and need, they will feel secure
that they are making the right decision in buying from you.
By clearly identifying the needs of your customers, you can also confirm
whether or not they are part of your target market. Even if they really
do not require what you have, you can still build trust and improve your
relationship by being candid and referring them to a more suitable
resource. You never know when this good deed will return to you in the
form of highly qualified referral business.
Ask Open-Ended Questions
One of the best ways to obtain pertinent
details about a customer's needs is to ask questions that elicit
information, rather than a simple "yes" or "no." The classic interview
questions are: who, what, when, where, why and how. For example, "who
will be using this product?", or "when will you be ready to make a
decision?". While you are asking, also respond at appropriate times by
linking key product or service benefits with the prospect's stated
requirements. The result is an interactive conversation where information
is exchanged and both parties expand their knowledge.
Sometimes it might be appropriate to elicit certain specifics. For
example, "how long have you been in business?" Don't be afraid to ask
such closed-ended questions. They can be quite useful, even though they
don't provide the in-depth information acquired from open-ended queries.
Open and closed ended questions were often used in the outmoded formula
style of selling, but with a more insidious goal of finding out enough
information so the sale could be made - whether or not it was beneficial
to the customer. In contrast, as a sales professional focused on building
relationships, you are operating in a context of integrity and trust with
the goal of having customers for the long-term, not just for the moment.
Listen More Than You Talk
Something magical happens when people give
their undivided attention to others, without interrupting or focusing on
what they are going to say next. This is true whether the environment is
professional or personal. However, it is often overlooked in the context
of establishing a business relationship, much to the detriment of the
seller. After all, if you do all the talking, you will never learn
anything about your prospect.
When you listen more than you talk, customers realize you are genuinely
interested in them, and that you are trying to understand their specific
situation. They feel more comfortable with you, and will soon realize you
are on their side. Make active listening a regular practice, and you will
find it much easier to create excellent relationships with your customers.
Useful Selling Techniques
Although selling by rote formula is no
longer appropriate in today's environment, some simple techniques can be
very effective when properly applied in the context of creating business
relationships. You can focus on building trust all day, but if you don't
ask for what you want, you still won't make the sale.
For example, you might have made a good connection with a fellow industry
organization member, but there will be no possibility of a sale unless you
spend some time discussing how the two of you might have a match. In a
retail environment, it could be as simple as introducing yourself to
customers, rather than staying behind the counter and ignoring their
presence.
Another traditional technique is understanding and using body language.
Knowing how to interpret prospects' folded arms or eye contact could give
you much-needed information about how comfortable they are with you, or
how ready they are to make a purchase decision. Also, when you know how
to use body language appropriately, you can communicate your interest,
concern or enthusiasm without words. It is well known that communication
is 50 percent body language, 40 percent tone of voice, and 10 percent the
actual words used.
Dealing with Rejection
One of the main reasons small business
owners dislike selling is that they don't like to get rejected. This is a
basic and very understandable human reaction. However, excluding
financial considerations, people generally say "no" for one of three basic
reasons: they don't like you, they don't trust you, or what you are
offering is not what they want or need. Aside from the fact that not
everybody will like you, if you have done your job, focused on building
trust, and made sure that there is a fit between you and the prospect, you
will rarely hear "no." At worst, the timing will not be quite right, or
you may be referred to other people who might respond positively.
Many entrepreneurs have their survival directly linked with the success of
their operation, which makes rejection very serious indeed. When starting
out, make sure you have at least a 12-month cushion of money for living
expenses while you are building your business.
Then try focusing on the "numbers game" aspect of selling to put things in
perspective. The truth is that you need to be engaged in a number of
selling "conversations" at any one time in order to reach your desired
goals. Not all of these conversations lead to immediate sales, and you
will normally have to replace approximately 10 percent of your customer
base every year, as people move, change jobs or go out of business. So
make a game of it. While you are busy building relationships, make sure
you are building enough of them. Focusing on the game aspect can help
diminish your feelings of rejection every time someone says "no." You
will be better able to move on to the next prospect, knowing you made your
best effort.
A Different Framework for Selling
Although a lot has been written recently
about relationship selling, the concept itself is not new. The principles
involved have always worked, and are even more important in today's highly
service-oriented market environment.
Relationship selling does not consist of a simple set of techniques you
have to master. It is a way of conducting yourself in the business world
that is flexible, cooperative and professional. When selling in a
context of building healthy relationships, you are operating as an
ethical, considerate and helpful human being. You are also building your
communication and other personal development skills. This is not only
satisfying, but also quite effective in creating a steady stream of sales
for
your business.
STEPS IN THE SALES PROCESS
Understanding the basics of the actual
sales process, and customizing them for your business, are critical in
building customer relationships. Whatever your setting, and whether you
sell a product or service, the following steps are the ones you should
use.
1. Know your product or service. Before you even
have a preliminary conversation with a prospect, it is essential that you
clearly understand what attributes make your product or service unique or
desirable, and why people should want what you have to offer.
2. Make initial contact. The actual sales
conversations with people in your target market begin when you start
letting them get to know you, and vice versa.
3. Exchange information. This step consists of
meeting with your prospects, asking them questions, uncovering their
needs, giving them information about your product or service, and
determining how it might fill those stated needs. Don't be afraid to
acknowledge gaps in your knowledge or understanding; such sincerity comes
through in a positive way.
4. Propose a solution. Once you have ascertained
that there is a good fit between you and the prospect, you can propose how
your product or service would specifically solve a problem or handle a
need. By understanding the features and benefits of competing products or
services, you can also prove at this point how what you offer is better.
5. Confirm the sale. Rather than focusing on
"closing the sale," a term that indicates the end of the process,
confirming the sale means you are reviewing the customer's willingness and
ability to make a commitment. It is a natural extension of a sales
relationship built on a foundation of trust, respect and rapport.
6. Deliver. Although actually delivering your
product or service is not technically part of the sales process, it is a
very critical step. If you don't deliver, you don't have a sale. In
addition, during this step you have an excellent opportunity to continue
to build trust and cement your relationship with your client.
7. Follow up. This is the time to find out how your client likes your
product or service. This stage provides an ideal chance to create repeat
business or get referrals to new prospects. And if there is a problem,
you have an opportunity to correct it. |
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