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Relationship Selling

Learning Objectives Understand the role of relationship selling in today’s

market and how it differs from past stereotypes of selling. Learn the steps in relationship selling and the purpose of

each step. Compare and contrast relationship selling and the

traditional sales model. Examine the usefulness of continuous quality

improvement in a sales organization. Recognize how to build relationships through team selling.

Chapter 2

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“ Your professionalism is defined not by the

business you are in, but by the way you are in

business. ”

Quotable Quotes

- Dr. Tony Alessandra

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• The trend in professional selling today is toward relationship, problem-solving selling

• Customer Satisfaction: the ultimate goal of the relationship salesperson throughout the selling process

• Relationship Management:– Managing the account relationship– Ensuring that your clients receive

the proper service during and afterthe sale

Value Creation Through Relationship Selling

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• Treat customers like life-long partners• Become a solutions provider• Deliver more service than you promise• Schedule regular service calls• Develop open and honest

communication• Use the ‘we can’ approach• Take responsibility for mistakes made• Be an ally for the customer’s business

Relationship Builders

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• Simply wait for the problem to develop

• Focus only on making the sale• Over-promise and under-deliver • Wait for your customers to call you • Lie or make exaggerated claims• Use the “us versus them” approach• Blame somebody else; Knock a

competitor• Focus on your own personal gain

Relationship Breakers

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The face-to-face steps of the Relationship Model:

Relationship Selling Versus Traditional Selling

Time: 40 percent spent on gaining rapport and trustEmpathy: Think the way your customer thinks.Standards: Customer expectations, higher than ever

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2

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Relationship Selling Versus Traditional Selling

Phases

Approach

Identifying Needs

Making the Presentation

Resistance and Gaining Commitment

Relationship Model of Selling

Traditional Model of Selling

% time spent

40%

30%

20%

10%

10%

20%

30%

40%

% time spent

Sales Cycle Framework for Relationship Selling

The8 STEP SALES CYCLE

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Identifying Qualified ProspectsQualified prospects must have:

Need Money Authority

Planning Preapproach Activities Telephone Activities

Phase One

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Approaching the Prospect Discovering Needs

Success of the process depends on this Requires questioning and creative listening

skills Making the Presentation

Takes planning Handling Objections and Gaining Commitment

Resistance happens because an atmosphere of mutual trust was never fully developed

There may be problems beyond your control The closing stage is the most tedious for the traditional

salesperson

Phase Two

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Service After the Sale Relationships keep satisfied customers

coming back Customer satisfaction is an asset to you and

your company The relationship really begins when the

buyer says “yes”

Phase Three

Cognitive Dissonance (buyers remorse) must be reduced

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Total Quality Management Listen and learn from customers and employees Continuously improve the partnership Teamwork through mutual trust and respect Do it right the first time Get your whole company involved

Service Quality There is a process and an outcome. Both are

necessary for customer satisfaction.

Continuous Quality Improvement

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The Service Quality Interaction

Service Quality

Influences… Leads To…

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Traditional Management Versus TQM

Focus on productCompany knows bestTransactionsIndividual performanceFire-fighting managementBlame/punishmentShort-term (year or less)Intolerant of errorsAutocratic leadershipBureaucraticTop-down decisionsInward focused

Focus on serviceCustomer knows bestRelationshipsTeam performanceContinuous improvementSupport/rewardLong-term (years)Allows mistakesParticipative leadershipEntrepreneurialConsensus decisionsOutward (customer) focused

The TQM ModelTraditional Management Model

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Team Selling

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It has grown to take advantage of diverse skills and personalities needed to sell complex products

The selling steps are the same, but rules are needed

Usually at least one salesperson and some technical specialists

The buyer may also have a team

The Growth of Team Selling

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Customer gets involved with more than one person

More accurate need definition Very useful if product is technical Different individuals bring more

selling skills

Benefits of Team Selling

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Risks of Team Selling

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Opener and Closer Just as in baseball (starting

pitcher and the closer) Some salespeople are

good at opening up relationships while others are masters at closing the sale

Both are very important-- a symbiotic relationship

Combinations That Work

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Multicultural Sales Professionals: Place an emphasis on diversity Establish a pro-diversity climate that

benefits from different cultures’ contributions

Provide ethnic diversity that helps foster relationships

Selling in a Multicultural World