The Sales Process

• The sales cycle is composed of several stages:
  1. Defining Commercial Objectives: Align sales objectives with the overall business strategy.
  2. Creating Prospection Channels: Develop mono or multi-channel strategies for prospecting.
  3. Preparing for Sales Interviews: Systematically prepare for sales meetings.
  4. Qualifying Customer Needs: Determine customer motivations and needs.
  5. Presenting Sales Points: Effectively communicate the sales proposition.
  6. Treating Objections and Negotiating: Address customer concerns and engage in negotiations.
  7. Closing the Deal: Finalize agreements and establish an action plan.
  8. Retaining Customers: Focus on maintaining customer relationships.
  9. Measuring Sales Performance: Analyze sales metrics and performance indicators.

Treating Objections and Negotiation

• Understanding Objections:

  • Objections are genuine questions or concerns related to the product. They can vary between:
  • B2C (Business to Consumer): Features, quality, price, etc.
  • B2B (Business to Business): System compatibility, ROI, warranty, etc.
  • Objections might also be used by clients as a diversionary tactic, aiming to negotiate a better price or lower the perceived value of the offering.

• Methods for Handling Objections:

  1. Decoder: Ask probing questions for clarification regarding their objections.
  2. Social Proof: Use testimonials or data from other clients to validate your product's value.
  3. Stepping Stone: Leverage the objection to transition smoothly into further discussions.
  4. Airbag: Acknowledge the objection to create understanding and rapport.
  5. Anticipating: Prepare for potential objections beforehand to preemptively address them.

• Best Practices:

  • Trust Issues: Share success stories and robust warranties to build credibility.
  • Shipping Time Concerns: Offer better shipping terms, discounts, or other compensations.
  • Quality Doubts: Provide certifications or third-party validations.
  • Handling Criticism: Address negative feedback directly and explain improvements since the critique.
  • Competition: Provide comparative analysis to emphasize your product's strengths.
  • Price Objections: View these objections as the start of negotiations, aiming for a mutually beneficial agreement.

Examples of Handling Objections

• Example 1: Chair Durability

  • Customer objection: "My last chair broke after a few years."
  • Sales response: "We offer a 10-year warranty as we are confident in our chair's durability."

• Example 2: Engine Quality

  • Customer objection: "Engines always squeak eventually!"
  • Sales response: "Our engine has an automatic lubrication system to prevent noise and wear."

• Example 3: Chair Recline

  • Customer objection: "The chair doesn't recline completely."
  • Sales response: "We designed it that way to ensure safety and prevent tipping."

Price Negotiation in B2B Sales

• Price is usually influenced by market conditions, governed by supply and demand:

  • Maximum Justifiable Price: The highest price you can charge.
  • Minimum Acceptable Price: The lowest you can sell for while still making a profit.

• Price Reduction Dynamics: Each negotiation round typically results in diminishing price reductions.

• Common Price Objections:

  • "Too expensive!"
  • "I can find a better price elsewhere!"
  • "Your product isn’t the best."

Key Negotiation Strategies

• Handle objections without automatically resorting to price cuts. Always demand a compensatory concession for any price decrease.
  • Concession Table: Identify potential concessions from both buyer and seller perspectives, assessing incurred costs and perceptions.

BATNA (Best Alternative to Negotiated Agreement)

• Understanding each party's BATNA will help gauge power dynamics in negotiations:
  • Seller's worst case, desired price, alternatives.
  • Buyer's desired price, worst case, alternatives.

Closing the Deal

• Techniques for closing a deal include:
  • Clear agreement statements, e.g., "If we reach a price agreement, are you ready to sign?"
  • Timing and urgency statements like setting deadlines for returning the purchase order.

Retaining Customers

• Strategies for customer retention, especially in B2C:
  • Loyalty Programs: Reward systems based on purchases or visits.
  • Regular Communication: Utilize social media, newsletters, etc. to keep in touch.

Measuring Sales Performance

• Monitor key metrics established at the start of the sales cycle:
  • Track variations in average order value and other relevant KPIs to adjust practices accordingly.

Application to the "fil rouge" Case

• Identify possible objections specific to your case, leveraging sales techniques learned. Consider how to effectively manage price negotiations for your services or products.