Marketing and Sales - Sales Techniques and Customer Relationship Management

1. Sales Techniques and Customer Relationship Management intro: Welcome to this course in our marketing and sales series on sales techniques and customer relationships. So in this course, we look at initially some vocabulary phrases that you would come across in this area. We look at how to build strong customer relationships and the importance of it. We look at their negotiating skills and specifically how we overcome obstacles and objections. We look at closing the deal and getting the contract signed, which is the ultimate aim here. And we also look at upselling and cross selling, and finally, another important aspect, namely the follow up after the sale and customer relationships and the maintenance of that. Now, as with all skill share courses, there is a project that you can take part in if you wish. There's quite a few parts to this project. So if you feel it's too much, by all means, just do, you know, some parts of it. There's no need to do all of it. But whatever you do, put it up onto, you know, the platform, and I'll have a really good look at it and give you some great feedback. As with all courses, any questions, please feel free to ask, and I hope you find it interesting and informative. 2. Sales vocabulary and phrases: Welcome to this lesson on sales vocabulary and freezes. So this initial lesson on this section is to get some important terminology out of the way with explanations and examples. And the first ones we'll look at are prospect, lead, pipeline, conversion, quota, and commission. And we'll look at each of these in turn. So what's a prospect? So a prospect refers to a potential customer or client who has shown some interest in a product or service, but has not yet made a purchase. So these could be individuals or businesses that the sales reps would target in order to convert them into paying customers. So somebody might visit a website, sign up for a newsletter, fill out a contact form, they can then be considered a prospect. As an example, somebody visits a car dealership website and submits a request for a test drive. Now a lead, on the other hand, is sort of a more qualified prospect, and this is somebody who's shown a higher level of interest in your product or service. And leads are often generated through various different marketing efforts such as attending events, filling out forms, or requesting information. And leads typically are seen to have a higher likelihood of conversion if when compared to say general prospects. So, for instance, a lead could be somebody who has contacted a sales rep directly to inquire about pricing and product details. The question is more specific. Oh, for example, a leader attends a trade show and provides you with their contact information for further follow up, contact, telephone calls, et cetera. It has to do with the pipeline. So sales pipeline is like a visual representation of the sales process from the initial contact to the closing deal. And it typically consists of various stages or steps that a prospect will go through as they move closer to becoming actual paying customers. And the pipeline also helps the sales team to track and manage their interactions with prospects, and it can provide a certain amount of visibility to the sales cycle. Now, each company will have their own different version of the pipeline, but it can typically include a prospect, a lead, a qualified lead, a proposal sent, negotiation, closed or won. There maybe a typical pipeline. Your company may have slight variations of this. So, for example, a sales manager would look at the pipeline and identify 50 prospects that are leads and 20 in the sort of qualified lead stage. So in a very general sense, conversion refers to somebody completing an action or a desired action that you want them to do. And in a specific sales context, this often means turning a prospect or a lead into an actual paying customer. It can also refer to other actions such as signing up for a trial or subscribing to a service or making a specific purchase. For instance, if a prospect purchases something after a sales rep's interaction, it is considered a successful conversion. So here's a concrete example, a prospect who had shown interest in a software product actually makes the purchase and then becomes a paying customer. Related to this, of course, is the quota. And the quota, we can call the sales targets or the goal that a salesperson or team or company or department is expected to achieve within a given time period. And these are often set by the organization to sort of drive sales performance and also to measure the effectiveness of the sales efforts. They can be based on quite a lot of different metrics. They can be revenue can be units sold, new custom acquisitions, other things, and in combination. There are a couple of examples. For instance, a salesperson might have a monthly quota of $50,000 in sales revenue, or his team might have a quarterly quota of acquiring 100 new customers. Then we have commission, this is the sales reps favorite word. A commission is compensation, which is paid to sales reps or the team based on their sales performance. And very typically, it'll be a percentage of the revenue that they generate from the sales that they make. So commission structures will vary wildly across organization, but the idea is to provide incentives for salespeople to achieve and even exceed their quotas. So for instance, a salesperson, they might earn a percentage commission on every sale they make, which will make them want to make more deals. So a sales rep earns, say, 10% commission on each product sale and would then receive $500 for closing a $5,000 deal. A little word of warning if you are interested in sales, actually you can end up making a rod for your own back because what happens is very often is you say you want to have to sell 100 widgets per month, and you end up selling 150. Well, that's great for that one month, but then your target for the next month is 160, and it will come to a point where you just can't do it anymore. A word of warning. So this isn't the only vocabulary that we use. There are other terms that you'll find, and here's a few more other ones. So we have territory, objection, value proposition, and forecasting. We'll have a quick look at these, and that will be done then for the basic sort of terminology. So the territory, this prefers, generally speaking to a geographical area that is assigned to a salesperson or a team for sales activities. So it's often a region or a district, but it could also be a specific set of accounts or even industries. For example, a sales rep is responsible for all the sales activities and relations with clients in the London territory. And this is also I've seen this in companies where they use this type of thing to give the impression of being a larger company. So what they'll do, they may have I was actually with a company had one sales rep, and questions that came in, the people on the phone would say, Okay, thank you for your details. I've got your contact information. We'll get the sales rep for your area to contact you later. There's only one sales rep. But by saying for your area, it gives the impression that there are more. I mean, you could be on Mars, you get the same guy. But it's just a technique that is often used, like I said, to make people think you're bigger than you are. Have objections that an objection is, say, a concern or a question or some hesitation or uncertainty that comes from the prospect during a sales process. It could be related to the product or the price, the timing, you know, how quickly they can get it, or really any other aspect of the thing they're talking about. And sales reps, they need to be able to address these objections effectively and provide relevant information, talk about the concerns, and generally overcome any barriers to the sales. So they have to think on their feet. And if you need more information on this, there is a whole separate lesson on overcoming objections, so have a look at that, as well. As an example, a prospect raises an objection about the cost of a product and basically says that it's higher than their budget. So I can't afford it. And then it's up to the sales rep to work out how to deal with this. We have the value proposition. So a value proposition is a statement or a message that explains the unique benefits and value of a product or services to the customers. It will highlight the advantages or solutions or improvement that the product provides compared to competitors and will aim to persuade the prospects to choose them over their competitors. As an example, a salesperson presents a value proposition to a prospect and emphasizes how their software solution can save time, increase productivity, and reduce costs for their business. And lastly, we have forecasting, and forecasting refers to a process of estimating or predicting future sales based on all sorts of things like historical data, market trends, gut feeling, your crystal ball, whatever you find works best for you. And the idea behind this is to help organizations plan and allocate resources, set targets, and make informed decisions about strategies and budgets. Now, for example, a sales manager will use historical sales data, current market research, and input from the sales team to forecast sales for the upcoming quarter. 3. Building strong customer relationships: Welcome to this lesson on building strong customer relationships. It's may be stating the obvious, but building strong customer relationships is very essentially important for the long term success of any business. And here are some rough reasons why this is important. We get repeat business, referrals, and customer loyalty. I'll look at each of these in turn. Strong customer relationships lead to repeat business. In other words, when customers have a positive experience with a company, they're more likely to go back to them for future purchases or engage in ongoing services. This, of course, helps increase your revenue and build a loyal customer base. As an example, a clothing retailer who provides excellent customer service and builds strong relationships with shoppers are much more likely to see these shoppers return for future purchases, which would, of course, increase their revenue. Also have mentioned referrals. So satisfied customers often refer their friends, their families, their colleagues to a business that they trust. And word of mouth referrals are highly influential and extremely cost effective in acquiring new customers. And by fostering strong relationships, the businesses can encourage positive referrals and expand their customer base. For instance, a satisfied customer who has had a positive experience with a landscaping company could well refer their friends and neighbors to the same company when they themselves need such services. Please don't underestimate the effectiveness and strength of word of mouth referrals. People very often are happy to talk about bad companies and to avoid them, which, again, is a form of word of mouth referral, but in a negative sense, and it costs you nothing. So really it's the best form of advertising you can get. Building strong relationships also enhances customer loyalty. So loyal customers are much more likely to stick with a company even if there's new competition or increased pricing. And they also then become kind of brand advocates, and they'll promote the company giving positive reviews and testimonials and social media engagement. And these are your best customers, the ones who become your brand advocates. As an example, a frequent flyer consistently chooses a particular airline for their travels and promotes the airline's services to others by giving positive reviews and word of mouth recommendations. We do need to mention customer relationship management or CRM. So what CRM is, it's a strategy or set of practices aimed at managing and nurturing customer relationships. We use technology and processes to gather and analyze customer data, improve interactions, and enhance customer satisfaction. And here's a few reasons why CRM is significant. We have centralized customer data, improved customer service, and we can add personalization as well. Let's talk about centralized customer data first. So a CRM system will consolidate all the customer information, including contact details, purchase history, preference, and communication history with say, support or sales. And this will then enable a business to have a really comprehensive overview of each customer, and you can use this to tailor your interactions with them accordingly. Though, for example, a customer using a CRM system can access the customer's contact information, purchase history, and preferences in one place. And this will allow them to provide personalized service based on the previous interactions. It also provides better customer service because you can track inquiries, issues, problems and preferences. And with this information readily available, to your service reps, for example, they can address the customer needs much more effectively, and then the customer is, of course, happier. Is prevents you having to go over old stuff that they've told you 100 times because nobody wrote it down. You have it all in one central location that's accessible to everybody, as this example shows. So with a CRM system, a customer service rep can quickly access a customer's support history and preferences, and this will enable them to provide efficient and tailored assistance. And this will, of course, make the customer happier. You also mentioned personalization. And with a CRM, you can personalize your interactions with customers. By understanding their preferences and behaviors, you can deliver sort of targeted marketing campaigns, customized product recommendations, and personalized offers, which makes the company feel a sort of a stronger bond with the customers. And so as an example, by analyzing customer data in a CRM system, the marketing team can create targeted email campaigns to cater specifically to individual customer preferences and purchase behaviors. And this will, of course, increase the likelihood of engagement and further conversion. But all this needs effective communication is also really important. And here are some key points to look at. We need active listening. We ask open ended questions, and we show a genuine interest. Now, this is an overview of this. You can do a whole course on effective communication. If this is something you want more information on, I would encourage you to search for a course that you like the look of. Anyway, active listening. This is when you fully concentrate on what your customer is saying, and you do this so you can understand their needs and respond appropriately. And this shows the customer that their opinions and concerns are valued. So during a sales consultation, a salesperson would actively listen to a customer's needs, concerns, and preferences, repeating and summarizing key points to ensure a thorough understanding. Also open ended questions. So asking open ended questions will encourage customers to provide much more detailed responses which can really give you more insight. And open ended questions are those that you can't answer with yes or no. And again, it demonstrates a genuine interest in understanding their perspective. So you might ask open ended questions such as, tell me about the challenges you've been facing with our product. And this gives the customer really an open opportunity to give you really good detailed feedback, and then the rep can address these specific issues that the customer mentions. You don't put words in their mouth, you just ask open ended questions. And this leads to what's called genuine interest. You show an interest in the customers well being and their goals and challenges and so on. It's sometimes even comes under the topic of small talk. And this is really the human interaction. So this is not I'm the customer. You're the supplier. This is we're both people. So a financial advisor will engage in really small talk with a client and show an interest in their goals and their life and everything beyond just the numbers. And this builds support and rapport and trust. Speaking of trust, it's often seen as the foundation of a good customer relationship. And here are some ways that you can actually establish that trust. You can deliver on promises. You can provide exceptional customer service, and you can maintain confidentiality. So by consistently fulfilling your commitments and delivering products or services as promised, shows the customer that you are reliable. It shows them that they can trust your business to meet their expectations. So a software company consistently meets project deadlines and delivers software solutions with agreed upon features and functionalities which will earn the trust of their clients, the classic on time on budget. Everyone loves it. Exceptional customer service is going above and beyond what people would normally expect. And again, builds trust. Thereby promptly addressing problems, providing timely solutions and being responsive to customer needs will strengthen a relationships a couple of examples. So a hotel will say, go the extra mile to resolve a guest complaint promptly. They will offer, maybe a free upgrade and a personal apology. This demonstrates their commitment to exceptional customer service and will build trust. Maintaining confidentiality is also important these days, especially with privacy concerns and data issues. So by respecting their privacy and maintaining confidentiality, this will make the customer like you. So you need robust data security measures, and you need to be transparent about what data is being handled. Again, people want to know this these days. The healthcare provider ensures that patients' medical records are securely stored and only accessible to authorized personnel and then maintain strict confidentiality, and this will help build trust with the patients. You need to understand the customer's needs. You need to understand their requirements, their pain points, their goals and aspirations. And there's a couple of things you can do that we've actually mentioned before, again, active listening, effective questioning. So the active listening, this is where you focus on not just the verbal things, but also the non verbal things. And this helps you really to identify their needs and concerns accurately. So during a consultation with a client, a web designer will listen to their requirements and their goals and their preferences. You then take notes, you ask clarifying questions. So at the end of it, you fully understand their needs, and only then can you actually implement what they want. Again, effective questioning asks targeted and relevant questions to understand what they want. Encourage them to express themselves, and they will provide you with valuable insights. It goes back to the thing about open questions. Don't ask yes no questions, ask open questions, you'll get more information. So an insurance agent could ask a potential customer, what are your primary concerns regarding insurance coverage? And this will then invite the prospect to really tell you what they want. And, in turn, you can provide some very specific tailored policy recommendations. Also mentioned tailoring solutions. So you need to customize your product or service to meet specific customer needs. And here's a couple of approaches we could look at. We have personalization and we have demonstrating value. With personalization, this is where you offer, say bespoke versions of your systems or your product or your service, which matches the customer's preferences and say, even past purchases and specific requirements. This then makes the customer feel more valued and demonstrates your commitment to meeting their needs. A subscription box service will allow customers to customize the contents of their monthly boxes based on their preferences and interests. And this then ensures that they receive products that they really enjoy, which goes back to all the things we said earlier about repeat business, customer loyalty, et cetera. You also need to demonstrate value. We need to clearly communicate the value proposition of the service or the product and explain how it addresses the customer's needs. We need to highlight the benefits and advantages that will help customers see the relevance and value of the solution. A software sales rep will highlight specific features of a product that will directly address the customer's pain points. These pain points have, of course, been previously determined through open questioning and feedback dialogue. They will also explain how the service or the software can streamline their processes, which in turn will save them time and money. 4. Negotiation skills in sales: Welcome to this lesson, which is an overview on negotiating skills in sales. So the sales negotiation process involves several stages, and each stage is equally important in achieving the successful outcome. It's a very quick overview of the four stages. You have preparation, discussion, proposal, and finally agreement. The preparation stage is all about gathering information and setting goals before we even enter the negotiation. And the key aspects of preparation could include understanding the needs and interests of both parties, researching the market and the competition, determining your own objectives, and identifying potential areas of compromise. So if you're selling a product to a potential customer, you would research their industry, their current challenges, and any specific requirements they may have. The discussion stage is where both parties engage in open and honest communication, ideally. Each side presents their needs, their concerns, and their desired outcomes while actively listening to the other party. And here, it's really important to maintain a positive and respectful tone throughout this stage in order to foster a much more positive collaborative atmosphere. So a salesperson will discuss the features and benefits of their product while actively listening attentively to the customer's feedback and requirements. Having discussed it, we move to the proposal and which offers are made by, say, one or both parties. And these proposals should address the interests and needs of both sides and aim for a mutually beneficial solution. Now, it's important here to focus on the value and the benefits that each party can gain from this proposed agreement. So a salesperson may propose a customized pricing package to a customer that includes additional services or discounts which will then demonstrate the value that the customer would receive. And ideally, we'll end up at the agreement stage. This is where the final terms and conditions are reached and formalized. This includes solidifying the price, the delivery schedules, warranties, and any other relevant details. And both parties should be able to express their satisfaction with the agreement and then be ready to move forward. So a salesperson and customer will sign a contract that outlines the terms they've agreed upon, such as the quality of the products, the delivery dates, and the payment terms. So what are the important principles in all of this? We'll have a look at them during the process, we need to look at win win outcomes, maintaining positive relationships, focusing on interests, exploring options, separating people from the problem, and finding mutual gains. And by following these principles and stages, the sales negotiations can be much more satisfying for both parties. We end up with a positive relationship and really lay the foundation for future teamwork, collaboration, and sales. So a win win outcome means that both parties benefit from the negotiation. It's not like I can only win if you lose, okay? That's not what we mean here. And this is important because we end up building trust, we foster long term relationship, and we increase the chance of future working together. So in a sales negotiation, a salesperson may offer a discount to a customer while still maintaining their profit margin. And this results in a win win situation where the customer feels they're receiving a favorable price, and the salesperson secures the sale. We also need to maintain a positive relationship with the other party, as this is the foundation of trust and cooperation. And by treating the negotiation as a collaborative problem solving process rather than a confrontation, both sides then can work together to find mutually beneficial solutions rather than working against each other to find a win lose solution. So a salesperson can actively listen to the customer's concerns, provide empathetic responses which will then demonstrate their commitment to the customer satisfaction. But rather than getting stuck on positions or demands, it's important to focus on the underlying interests and needs of both parties. And if you can understand the motivation behind each side's request, you can explore alternative solutions that address those interests. So if a customer insists on the lower price, a salesperson can inquire maybe about their budget constraints and explore other ways to add value without compromising the price. This could be by offering, say, extended payment terms or offering additional support services. So by exploring options, what we mean here is that we should look at multiple ways to find creative and innovative solutions as part of the negotiation process. So we will do brainstorming, consider all sorts of alternatives, and both parties can discover new possibilities that will meet their respective needs. A salesperson can propose different product configurations or packaging options to the customer. This will then allow the customer to customize their order and stay within their budget. And we also need to separate the personal emotions from the negotiation, okay? It's not about the people, it's about the underlying problem that we're talking about. By focusing on the issue at hand, rather than attacking or criticizing other party, we can maintain a constructive atmosphere. So if a disagreement arises during negotiation, both parties can collaborate to identify the root cause and find a solution. And we do this, of course, without assigning blame or making it personal, okay? Don't start pointing at people saying, but you did or you said, Don't do that. Okay. Don't make it personal. You won't benefit. And we need to find mutual gains. So again, we're looking it's back to the win win situation. So we don't see it as a zero sum game where I can only win if you lose. It should be possible to have an outcome that benefits both parties. And so what we do we so called, expand the pie, and we find value creating solutions that are happy with both sides' objectives. A salesperson can offer, say, additional training or support services without significantly increasing the price. And this then will create additional value for the customer, which in turn will increase the chances of closing the deal. 5. Overcoming objections and obstacles: Welcome to this lesson on overcoming objections and obstacles. One of the most important parts of the sales process is that of addressing objections and overcoming obstacles. And in this lesson, we'll look at the following the common objections and obstacles that you can encounter in sales, the reasons behind them, their impact on the sales process, techniques for addressing them, strategies for overcoming them, and the importance of active listening. So here are some common objections and obstacles. You can hear these all the time. Price concerns. So customers often express objections related to the price of a product or the services, of course, feeling that it's too high and is out of their budgetary range. Competition. They may talk about alternative products or services that are offered by your competitors. Timing. They may feel that it's not the right time to make a purchase and product fit. Customers may have doubts about whether the product or services is actually suitable for their specific needs or requirements. And these objections or obstacles typically stem from various sources such as budget constraints, a lack of awareness or understanding, previous negative experiences, and uncertainty about the value that the product or the service will provide. And the objections or obstacles can actually slow down or even hinder the sales process completely if they're not effectively addressed. They can create doubt, they can erode trust, and lead to a loss of business if you don't resolve them. So I have a look at several techniques for addressing these objections and obstacles. One of them are paraphrasing, clarifying and demonstrating empathy. So by paraphrasing, what we do here is restate the customer's objection in your own words, to make sure that you've understood their concern correctly, and also it shows to them that you're actively listening. So if a customer says, I think the price is too high, you could respond with, Okay, if I understand you correctly, you feel that the price is beyond your budget. So just paraphrase it back to them and they now know that you've got it. You can clarify. And again, this is asking open ended, non yes no questions that can clarify their objections and enable you to get extra information. So you could ask, for example, can you tell me more about your budget limitations and what price range would be suitable for you? And demonstrating empathy generally is good to create a positive or personal connection with the customer. It acknowledges their concerns and shows understanding. So you could say, Okay, I understand that price is an important factor for you, and we want to ensure you receive the best value for your investment. Look at some strategies for overcoming these. There are many strategies. Some will be company based, some will be personal based, you'll find the ones that suit you best. But here's a shortish list of the typical things you can do. You can provide relevant information. You can offer alternative solutions. You can use testimonials and success stories. You can counter objections with relevant information. You can highlight the customer centric benefits you maintain professionalism and stay calm, okay? Is not personal. You look for win win situations are mutually beneficial solutions. And you can also, and this is a good one, reframe the objections as opportunities. Offer detailed explanations, give them data or comparisons that address their concerns directly. So the customer says, I think your price is too high. You could say, I understand your concern. Please let me provide you with a detailed breakdown of our pricing structure and show you the additional features and benefits that justify the price. And this will help you understand the value that you'll receive. You could offer alternative solutions. So if a customer raises an objection that's based on maybe the fit or the timing, suggest alternative options that meet their needs and accommodate their timeline. And flexibility can also overcome these obstacles. So if the customer says, Well, I don't think the timing is right for us to implement a new system, you could say, I understand timing is important. We have flexible implementation options that can be tailored to your schedule. So, for example, we can start with a pilot phase to minimize disruption and gradually transition to the full implementation when it aligns better with your operations. You can use testimonials and success stories, so called social proof. So you would share the testimonials or case studies that demonstrate how other customers have overcome similar objections or obstacles. And this then builds credibility and reassures the customer. So here's a typical dialogue. The customer could say, Well, I'm not sure if your solution will meet our specific needs. And the salesperson will come back with, I completely understand your concern. We've worked with similar clients in your industry who have faced similar challenges, and they have achieved significant results with our solution. Let me share a case study with you that shows how we've addressed their specific needs. And you can also counter with sort of relevant information. So if you have objections, use relevant facts and figures and market research to support your response. The customer says, Well, I've heard your competition offers a similar product at a lower price. Salesman says, I appreciate your awareness of the market. However, what sets apart is our advanced features and exceptional customer support. Our solution has been proven to provide a higher return on investment due to its reliability and scalability. And here's a comparison chart that highlights the key advantages that we offer. And you also highlight the customer centric benefits. So you emphasize the specific benefits that align with the customer's pain points or objectives, either one that you've previously determined. And this will help the customer to see the value and relevancy of your product or service. So when the customer says, No, I'm not convinced your product will solve our productivity issues, the salesman said, I understand your concern. Our product is specifically designed to address productivity challenges. By automating repetitive tasks and streamlining workflows, our solution has helped companies increase productivity by an average of 30%. I can provide you with specific use cases that demonstrate the positive impact it can have on your team's efficiency. You also need to stay calm and professional. So when dealing with a challenge or resistant client, it's really important to main professional, composed and respectful. Respond to the objections with patients, actively listen to their concerns, and reframe their objections as opportunities for collaboration. Okay. Do not take it personally. The customer says, Your company has a poor reputation for customer service. Oops, the salesperson can say, Oh, I apologize if you've heard about negative experiences in the past. Our team has recently undergone significant improvements, and we now have dedicated customer success managers who are committed to providing exceptional support. We value our customers and will assure your experience is smooth and hassle free. And then you find the win win situation. So you collaborate with the client to identify common ground and explore alternatives that address their objections while still meeting your business needs. You find win win solution. You can overcome obstacles and then maintain a positive relationship. So the customer says, Your pricing is beyond our budget. Salesperson. Well, I understand your budget limitations. So let's explore some options to make it work within your financial constraints. We can discuss alternative payment plans or consider reducing the scope of the initial implementation. Our priority is to find a solution that meets your needs while fitting your budget. And this is quite commonly done, especially in sort of big software solutions. You'll reduce the scope of the initial implementation, and then at a later date, you'll add the extra functionality that they need and charge it accordingly. So instead of viewing these objections purely as obstacles, look at them as opportunity to provide additional value or to tailor your offering to address their specific needs. And this sort of proactive approach really demonstrates your commitment to finding solutions. So the customer will say, We're not convinced that your product integrates well with our existing systems. Salesperson. Thank you for raising this concern. We see it as an opportunity to collaborate with your IT team and ensure a seamless integration. Our technical experts will work closely with your team to address any compatibility issues and provide a customized integration plan that aligns perfectly with your existing systems. Again, in the software world, legacy systems and integrations with a common thing. And if you do it really well, you can actually get paid to integrate it. And then again, the importance of active listening. When we're talking about objections and obstacles, we need to actively listen to what they say. We need to fully focus on their concerns, and we seek to understand their perspective and thus demonstrate empathy. And by active listening, you get a good rapport with the customer, you gain insights into their needs, and you can identify the underlying reasons for their objections. And quite often, the reason they give you first is not the real reason. You need to dig deeper and you can do this by active listening. 6. Closing deals and contracts: Welcome to this lesson on closing deals and contracts. So we've done all the hard work. Now it's time to actually close the deal. And here are the things we'll specifically look at in this lesson. The sales closing process, strategies for creating momentum and urgency, trial closes, assumptive closing technique, alternative choice closing technique, negotiating terms and conditions, drafting and reviewing the contracts, addressing any final objections or concerns, and finally handling buyers' remorse. So there are several things to bear in mind here, and these include recognizing buying signals, summarizing benefits, addressing concerns, actually asking for the order, and then confirming next steps. How do you recognize buying signals? So what we have to do is the salesperson has to really pay attention to verbal and non verbal cues from the customer that indicate a sort of a readiness to move forwards. For instance, if the customer says, Okay, how soon can we start implementing the solution? That tells you that in his mind, they've already bought it. So this is what we call a buying signal. To this, the salesperson will say, Hey, that's a great question. They like those questions. So once we finalize the details, we can start straight away. Yeah, This is buying signals. Oh we also summarize the benefits. So we recap the key benefits and value propositions, and this way, we sort of reinforce the customer's decision making. But the salesman would say, so just to recap, our solution will streamline your operations, reduce costs, and improve productivity. It will also provide real time analytics to help you make data driven decisions. So this is the summary of the benefits. There may be some final objections or concerns that the customer may have before sort of taking the plunge and actually making the decision. So they might say, for instance, I'm worried about the learning curve for my team, you know, but they managed it in time. And a salesperson will counter this by saying, Okay, I understand your concern. We offer comprehensive training programs and ongoing support to ensure a smooth transition. We have a dedicated team that are available to you to assist your team every step of the way. So you're sort of quieting these concerns, you're explaining how you would act against it. And then hopefully, it's not a concern anymore. And then we actually ask for the order. If we sit around waiting for the customer to say, Okay, where do I sign? You're going to wait a long time. So we actually have to ask them to make the purchase and sign the contract. So you might do it like this. So based on our discussion, it seems like our solution is a great fit for your needs. Are you ready to move forward and make the purchase? You'll save a lot of time doing this. Don't be afraid to do. Then we confirm the next steps. So we clearly communicate the next steps. And these would be, say, delivery, implementation, follow up, et cetera, to ensure a smooth transition. When the guy says, yes, the salesperson is fantastic. Once you provide the details, we will generate the contract for your review. Once you're satisfied, we can proceed with the signing process. And after that, we'll schedule the kick off meeting to get things started. Always good to have a kickoff meeting. And it's really essential to have good closing techniques to achieve your sales targets and to enhance customer satisfaction. So these strategies help the salespeople to guide customers through the decision making process to actually get that commitment and ensure they have a positive buying experience. So some strategies, very typical strategies for this would be limited time offers, exclusive bonuses, and product scarcity. And we'll look at each of these in turn now. We create a sense of urgency by making a discount or a promotion time limited. They can't think about it forever. As an example, the salesperson would say, as a special promotion, we're offering a 20% discount on all our products, but only for the next 48 hours. This is a great opportunity to save on your purchase and take advantage of our premium features. So if you need a week to decide, it's going to cost you more. But if you decide now, you'll get that 20% discount. That might just give them a little push they need. Then we have exclusive bonuses. So you're providing an additional incentive for them to buy within a specific time frame. I said, Okay, to show our appreciation for your business, we're offering an exclusive bonus package that includes free training sessions and a personalized onboarding experience. But this is only available to customers who make a purchase within the next week. So this is combining the bonus with the time frame. Then we have product scarcity. So what we do is we highlight the limited availability and encourage customers to take prompt action. The salesman could say, Well, our product is in high demand, and we only have limited stocks. We encourage you to make a decision soon as we cannot guarantee availability beyond the next few days. And by securing your order now, you can ensure that you get your hands on this highly sought after product. In other words, they're saying, If you wait too long, we might not have any left. And then what are you going to do? So again, we're using scarcity as a motivator. We look at trial closes. So what trial closes is a sort of technique to gauge the client interest. I can also address their concerns and generally move the whole sales process forward. So what you do is you ask these questions or make statements, and depending on how the customer reacts, you can then assess their sort of readiness to buy. For example, based on what we've discussed so far, how does our solution align with your needs? The customer says, Well, I think it meets our requirements, but I have a few more questions about implementation. This is an assumptive closing technique. This is actually quite a good one because what it does is it assumes that it's going to go through, and then you say, Well, assuming it's closed, what would we then do? And what we can do here is you sort of put it in the customer's mind that they've already bought it, and then what we do next? And so the salesperson would say, Okay, let's discuss delivery options. Would next week be convenient for you or do you have a different time frame? Of course, the option he's not got here is to not do it at all. So you're putting it in his mind, he's already bought it. It's quite it's a good technique. And similar to that is the alternative choice closing technique. And what we do here is we present them with two different options. And both of these sort of lead to a positive outcome. They buy it. So a salesman could say, Would you prefer the basic package, which offers cost savings or the premium package, which gives additional features and enhanced support? Of course, the option he's not giving is, Oh, I just go away and you don't buy it. So it's subtle and it's good. Now we do have to negotiate terms and conditions. So you'll have your standard Ts and Cs and they'll have theirs. But this is mainly focusing on the contract conditions for the specific project or the specific solution that they're looking for. And you need to understand their priorities and objectives, but you also need to make sure that your company's interests don't end up getting lost. And so you would propose alternative solutions. You offer trade offs, flexible payment terms. And what generally happens is one, usually say the supplier will make a draft contract and send it to the customer. The customer will then look through it, make changes, and send it back. The supplier will then look through those changes, make possible other changes, and send it back. And this whole thing is called a battle of forms, and it basically goes backwards and forwards until both are happy with it. And quite often, what you'll find is the customer will try and add little conditions like unlimited liability, to which obviously the supplier does not want to have, so they will cross that out and say maximum 100,000 monetary units or whatever. And it goes backwards and forwards, I say, battle of forms until they're both happy. We would then when everyone's happy, draft the contract. We make sure it's complete, legally compliant, and it's clear what it contains. We try to use clear and concise language. We try to include all the relevant terms and conditions, and ideally we would have advice from, say, a legal department if we had one. You know, review the contract with the client, address any questions or concerns, and make sure that we're all on the same page here. Now, ideally, in an ideal world, you will have a legal department who will sort this out for you. If you don't, it'll probably be your sales team doing a massive copy and paste exercise from other things, other contracts, and it'll be a lot slower, a lot more difficult and basically a worse contract. So ideally, have a legal team sort it out. So if there are any objections or concerns before closing the deal, so the picture you have in your mind is the customers just about to sign, when a thought occurs to them. You have to provide additional information or insurances or incentives to overcome this last resistance to actually get them to sign. And you need to address each concern directly and highlight how your product or service addresses those concerns. So, for instance, you might offer satisfaction guarantee. You might provide case studies or testimonials from satisfied customers. Anything to get them to sign on the dotted line. And finally, we have this so called buyer's remorse. So they've bought it. And now they're wondering, did I do the right thing? Maybe I shouldn't have bought it. And what you hear you need to do is to reinforce the value of the purchase. You need to remind them of the key benefits they'll receive and address any concerns or questions that arise. Now, what they may have arisen before, you may be just asking some old questions, you still answer them. So you would offer assistance with implementation. You'd provide additional resources, and basically, you ensure a positive post sale experience for them. 7. Upselling and cross selling: Welcome to this lesson on upselling and cross selling. So upselling is when you encourage customers to buy a higher priced or upgraded version of the product that they're thinking about buying. Whereas cross selling involves offering them extra products that will enhance the use of the thing they're buying. So one is the upgrade and one is an additional thing that goes well with it. And here, we'll look specifically at the importance and benefits of cross and upselling, understanding customer needs, leveraging product knowledge, the benefits of bundling identifying complimentary products, identifying opportunities for cross selling, and also tailoring recommendations and addressing objections. Upselling and cross selling are really important these days for maximizing the customer value and revenue. They increase the average order value. They boost customer satisfaction by meeting additional needs, and they can foster a long term customer relationship, and all businesses benefit from increased sales and profit margins. In order to effectively identify upselling and cross selling opportunities, you need to understand the customer's needs and preferences. Things like surveys, analyzing purchase history or generally just talking to them, getting feedback helps you to gather customer insights. Now, there's a lot more to it than these two sentences. So please look at the lessons on market research and analysis for more information on this topic if you want. It helps, it's necessary even to have an in depth knowledge of your own products yourself so that you can make personalized upselling and cross selling recommendations that are based on your customer's needs. You can highlight the benefits and the features and added value of some higher price or upgate graded products. For instance, the salesperson might say, Well, based on your requirements, I actually recommend the premium version of our software. It offers advanced reporting capabilities, 247 customer support, and this way, you get optimal performance for your business. That's the upsell. And we have bundling. What we do with bundling is we put together related products or add ons to enhance the value of the customer's purchase. And if you can present these bundled offers and add ons in a compelling manner, you can increase customer satisfaction and sales revenue. Here's an example. We have a special bundle that includes not just the laptop, but also a protective case and a one year anti virus subscription at a discounted price. So this way, you'll have everything you need to keep your device safe and secure. If they're spending a lot on a laptop, the case and the subscription is just a little bit extra that they might well go for. But we need to identify the complimentary products. So you need to understand how they're going to use the product. And doing this, you can identify some extra products for cross selling. And so you make suitable recommendations which are based on your customer's needs. As an example. Well, since you're purchasing a camera, I recommend considering an additional lens that will expand your creative possibilities. This will allow you to capture a wider range of shots and achieve even more professional looking results. If you've ever seen any photographers, sometimes you think, so are you a photographer or do you just collect accessories? Because they often have loads of lenses and filters and all sorts of stuff. So cameras is a good way of adding extra products. Now, the cross selling can exist at really any stage of the customer journey. It's not just something you do at the end, but very typically you would do it at the checkout or the post purchase stage. And what you can do is you can integrate cross selling into the customer experience. Now, I'm sure you've seen all these online shops where it says, customers who bought this product also bought these products. Would you like to add them to your cart? And what you're doing here is you're making it very, very easy for them to go click, click, click and I've added them. It's a good way to do it, and it's a good timing to do it. And there's a reason why most online sites do it's because it works. Again, we might have some objections to this. And the upsell or the cross sell really should be tailored to the customer's specific needs. And if they have any specific objections or concerns during this process, you need to address them and make sure the customers happy. So the customer might say, Well, I'm not sure if I need the upgraded version. The salesman reply, Well, I understand your hesitation, but the upgraded version offers additional features that would significantly streamline your workflow and save you time. Plus, it comes with a satisfaction guarantee, so you can try it risk free. 8. Follow up and Relationship Maintenance: Welcome to this lesson on follow up and relationship maintenance. We do need to maintain a regular contact with our customers and we do this because we're building a relationship with them. This is what happens afterwards. Some strategies for this would be timely follow up and ongoing support. So promptly following up after a sales or service interaction to express your gratitude will ensure customer satisfaction. It shows an attentiveness to them and reinforces their positive experience, and it makes them feel valued. For example, after completing a home renovation project, a contractor sends a personalized thank you email to the client within 24 hours on the same day even expressing their appreciation and offering post service support if needed. Again, cost nothing can be automated is appreciated immensely by the customer. Then we offer ongoing support, and this is done really following the sale. This can be offering help, answering questions, providing updates on new products or services, or even providing updates to the thing they've bought. And this is regular communication which shows that the relationship has extended beyond the initial transaction. So a software company will provide regular software updates. They will have bug fixes and technical support for their customers. This will then ensure that they get ongoing assistance, and it demonstrates the company's commitment to the long term relationship with their customers. What we here do is we actively seek out customer feedback, and we use this to understand how happy they are to identify areas for improvement and to generally address concerns. Now, there are several techniques we can use for this. We can do surveys and feedback forms. We can have direct communication. We can address the concerns, and we look at the importance of feedback. So these surveys and feedback forms are used to collect feedback from customers. And this will help to get specific information, and then you would use this and analyze the data. So ecommerce company could send out a post purchase survey to customers asking about their shopping experience, the quality of the product they received, and if they had any suggestions for improvement. These days, I must admit, surveys and feedback forms are a plague that you cannot avoid. Every time you phone up a support thing. Oh, please stay on the line and fill out our feedback. No, thank you. You don't have to do this. This is voluntary. Feel free to put the phone down afterwards. You don't have to do this, but it's good if you can get them to do it. We also have direct communication. Now, this could be say from phone calls, emails, or live chats sort of via the website. And this really allows you to get personalized and get really good information from them. And so a direct communication, say, through a phone call, allows customers to provide detailed feedback, and the company can then respond very quickly with a personalized solution and a commitment to address whatever problem the person is having. Obviously it relies on you having systems in place to make notes of all this. You should also respond to concerns quickly and effectively. You should acknowledge their feedback. You should take ownership of any issues. So, yep, Ma quilpa sorry. And also provide good solutions or resolutions. And doing this demonstrates a commitment and trust and again, enhances customer satisfaction. So a restaurant manager would promptly respond to a customer's negative feedback in an online review. They would apologize for the poor experience, invite them back, say for a free meal to address their concerns and make amends. Obviously, it depends on what the problem was. A lot of people leave negative feedback exactly to get a free meal. So context, yeah. Then we have a look at lastly, the importance of feedback. So customer feedback is very important, and you use this to improve products, services, and generally the overall customer experience. I can help a business to identify where they need to make improvements. It enables them to make informed decisions, and then stay ahead of customer expectations. So a product development team would review customer feedback for say a newly launched mobile app. And then based on the user suggestions and the feedback, they would target specific areas that need improvement. They would have a release cycle of updates to enhance that improvement or to fix the bug or to make it easier to use. This would then make it the user experience better. They would meet their expectations, and then it'll be happier with you, happier to recommend them. There's no downside to this. Don't be afraid of feedback.