Chapter 21Sales Dialogue: Creating and Communicating Value After completing this chapter, you should be able to: L01 Describe the key characteristics of effective sales dialogue. L02 Explain how salespeople can generate feedback from buyers. L03 Discuss how salespeople use confirmed benefits to create customer value. L04 Describe how verbal support can be used to communicate value in an interesting and understandable manner. L05 Discuss how sales aids can engage and involve buyers. L06 Explain how salespeople can support product claims. L07 Discuss the special considerations involve in sales dialogue with groups. L01 Effective Sales Dialogue Preparing and completing this phase of the sales process successfully has been compared to doing surgery in that it is complex and requires preparation, knowledge, and skill. They work with the prospective buyer to identify, diagnose, and clarify unsatisfied needs or problems and then show the buyer how much better the situation would be by purchasing the proposed product or service. Professional selling classes often require students to role play a sales dialogue, have sales contests within their institution, or have students competing against other college’s events. Planning and practice should focus on an organized sales dialogue and not a canned sales presentation. Proper planning and practice provide an important foundation for effective sales dialogue. Keys to Effective Sales Dialogue The most effective sales dialogues: - Are planned and practiced by salespeople. - Encourage buyer feedback. - Focus on creating value for the buyer. - Present value in an interesting and understandable way. - Engage and involve the buyer. - Support customer value through objective claims. L02 Encouraging Buyer Feedback In a productive sales dialogue, the salesperson continually assesses and evaluates the reactions and responses of prospective buyers. The SPIN or ADAPT questioning processes are designed to get the buyer to provide feedback to specific questions the salesperson asks. The observant salesperson can receive a great deal of continual feedback in the form of the buyer’s nonverbal cues. In addition to observing nonverbal cues, high-performing salespeople incorporate verbal probes at key points in order to evaluate the buyer’s interest and assess the progress of the sales dialogue. The phrases check-backs or response checks have become common names for this form of questioning–seeking feedback from the buyer. Check-backs or response checks Questions salespeople use throughout a sales dialogue to generate feedback from the buyer. Check-backs are commonly employed at two key points: After a specific feature-benefit sequence in order to confirm the benefit and better assess the prospective buyer’s level of interest Following the response to an objection in order to evaluate the level to which the salesperson has handled the problem. The effective use of check-backs offers a number of advantages, the most evident is increased buyer interaction. The effective use of response-checks also helps the salesperson evaluate the level of the buyer’s understanding and keeps the salesperson on the right track. L03 Creating Customer Value After the introductory part of a sales call, the salesperson must try to determine what the buyer considers to be of value. A salesperson can use the SPIN or ADAPT questioning strategies to understand the buyer’s situation and to identify needs, problems, or opportunities important to the buyer. The salesperson's primary goal is to uncover the prospect's specific needs or problems and then focus on what products or services will solve the problem or meet the specific needs. Confirmed benefits The benefits the buyer indicates are important and represent value. A major purpose of the use of the SPIN or ADAPT questioning process I to help the salesperson identify the confirmed benefits for the buyer. The importance of focusing on confirmed benefits to create value for buyers is illustrated in “Professional Selling in the 21st Century: Using confirmed Benefits.” L04 Interesting and Understanding Sales Dialogue Once confirmed benefits have been identified, the salesperson needs to present key selling points in a manner that is interesting and understandable to the buyer. Verbal support The use of voice characteristics, examples and anecdotes, and comparisons and analogies to make sales dialogue interesting and understandable. Voice Characteristics The pitch and speed of speech, which salespeople should vary to emphasize key points. Examples and Anecdotes Example A brief description of a specific instance used to illustrate features and benefits of a product. Anecdote A type of example that is provided in the form of a story describing a specific incident or occurrence. Comparisons and Analogies Comparison A statement that points out and illustrates the similarities between two points. Analogies A special and useful form of comparison that explains one thing in terms of another. L05 Engaging and Involving the Buyer Simply informing the prospect about the benefits and their value to the buyer is seldom sufficient to generate the level of interest and desire required to result in a purchase decision. Sales aids The use of printed materials, electronic materials and product demonstrations to engage and involve buyers. A salesperson should use the sales aids that will engage and involve each buyer most effectively in a particular sales dialogue. Reasons for Using Sales Aids Capture prospective buyer’s attention. Generate interest in the recommended solution. Make presentations more persuasive. Increase the buyer’s participation and involvement. Provide the opportunity for collaboration and two-way communication. Add clarity and enhance the prospect’s understanding. Provide supportive evidence and proof to enhance believability. Augment the prospect’s retention of information. Enhance the professional image of the salesperson and selling organization. Types of Sales Aids Visual Material Printed materials, photographs and illustrations, and charts and graphs used as sales aids. Electronic Materials Sales aids in electronic format such as slides, videos, or multimedia presentation. Product Demonstration The product itself is often the most effective sales tool because it provides the prospective buyer with an opportunity for hands-on experience. Using Sales Aid in the Presentation Practice! Practice! Practice! Rehearsal of the presentation is the final key to conducting effective sales dialogue. Using the SPES Sequence can facilitate the effectiveness of presentation tools and sales aids: S = State selling point and introduce the sales aid P = Present the sales aid E = Explain the sales aid S = Summarize L06 Supporting Product Claims As discussed earlier in this chapter, confirmed benefits answer the buyer’s question, “What is in it for me?” In a similar fashion, proof providers can be utilized to preempt the buyer from asking, “ Can you prove it?” or “Who says so?” Proof providers The use of statistics, testimonials, or case histories to support product claims. Proof Providers Statistics Facts that lend believability to product claims and are used as proof providers. Testimonials Proof providers that are in the form of statements from satisfied users of the selling organization’s products and services. Case Histories A testimonials in story or anecdotal form used as a proof provider. L07 Group Sales Dialogue Sales dialogue with group is fairly commonplace in business-tobusiness selling. Interacting with groups presents special challenges and opportunities. When selling to groups, salespeople can expect tough questions and should prepare accordingly. Most buying groups are assembled to tap the individual expertise and interests of the group members. When selling to a group, salespeople should take every opportunity of preselling to individual group members prior to the group presentation. Preselling Salespeople present their product/service to individual buyers before a major sales dialogue with a group of buyers. Buying procedures in a given company may or may not allow preselling. Preselling can also reveal the roles of the individuals in the buying center. Two key areas of preselling - Tragically suggestions for group presentations Handling questions in group settings Sales Tactics for Selling to a Group Assuming that the salesperson or sales team has planned a comprehensive sales dialogue and done as much preselling as possible, there are some specific sales tactics that can enhance presentations to groups. Three general categories of sales tactics for group presentations - Arrival Tactics - Eye Contact - Communication Tips Handling Questions in Group Settings Just as is the case with sales dialogue to individuals, questions from buyers in a group are an important part of the buyer-seller interaction that leads to a purchase decision. Salespeople should recognize that questions fill information gaps, thus allowing buyers to make better decisions. In a group setting, questions can also add a dramatic element, making the presentation more interesting for those in attendance. To handle questions that arise during the meeting effectively, salespeople should listen carefully and maintain eye contact with the person asking the question. By listening carefully to the question, salespeople should show proper respect to the person asking the question. At the same time, they are helping direct the attention of the group to the question. In many cases, it is a good idea to repeat or even restate the question. When restating questions, salespeople must be careful to capture the essence of the buyer’s concern accurately. When answering questions, there are three guidelines. 1. Salespeople should not attempt to answer a question until he or she and the group members clearly understand the question. 2. Salespeople should not attempt to answer questions that they are not prepared to answer. 3. Try to answer questions as directly as possible. When answering questions, it is important to address the entire group rather than just the individual who asked the question. In larger groups, it is particularly important to avoid getting locked into a question-and-answer dialogue with one person if other people are showing an interest in asking questions. When selling to a group, salespeople should have a clear objective for their presentation. In some cases, the group will wish to deliberate and let the salesperson know of their decision at a later time. The process for planning and delivering a group sales dialogue is much the same as it is for sales dialogue with individuals.