Value Added Selling Approach

Strategic Selling Process

Chayuth TemnitikulSiam-Fuchs Lubricants Co., Ltd.

Were competing every day.

We work hard for our success and personal satisfaction.

How do you feel when you win?

And how do you feel when you failed?

But weve got only one option!We must win.

FUCHS No. 1

Is there a short cut for Success?

Learn from other peoplesSuccesses and Failures.

No time for failure so No need to put your selfOn trial.

Why We cant sell?

Because customers dont buy. Why?Your offer doesnt meet their expectations.Too expensive?Poor quality?No OEM approval?Poor after-sales servicesPoor brand reputation?Good relationship with current supplier.Company policy.They dont see the benefits buying from you.You offer what they dont want.We havent sell yet!

What is selling?

Sales is helping the customers to buy

Helping them to make up his mind based upon the satisfaction of his needs. Sales is always going for Win - Win or No Deal. That means that it is the salespersons responsibility to ensure that both he and the customer wins on the deal.

If the salesperson finds that he is about to conclude a deal where he is winning but the customer is losing, the deal should be scrapped.

Can we sell without selling?

MAKE THEM WANT TO BUY FROM YOU!

Be FriendlyThe first step is to start from a friendly perspective by getting to know who your customers are and what they need and want by asking questions.

Show EmpathyNext, prove that you understand and have empathy for their concerns by echoing their frustrations. Share a personal story of your own experience with a similar problem and tell them how you were able to solve that problem with the product you are about to endorse.

Be HonestAbove all, be honest. No product is perfect, so a 100% positive product endorsement will be met with skepticism and resistance by your readers. So, be sure to point out any minor shortfalls and limitations. Alternatively, consider comparing and contrasting two different products to give your customers a variety of options from which to choose.

Why do people buy things?

Needs some things you cannot live without.Wants some things you can live without.

Are we the only supplier in the market?

NO!

Why do they have to buy from us?

Why does the customer has to buy from you?

Because you offer something different and better than your competitors.

Decision making Factors

Emotion (Feeling)Design/Color/packagingBrandPersonal satisfaction/Good feeling to haveSelf differentiationSelf perceptionReasonQualityPriceServicesAvailabilityEase of use

FIND OUT what are the key decision factors of your customer

How the business deal is done?

I think she likes me

This guy thought that I like him. I actually need his order.

How the business deal is done?

Both parties get benefits.Customer get the good product at the reasonable price with additional other value added after-sales services.Seller can sell product with reasonable margin and reasonable demanding on services.

Sales Cycle?

How long does it take to close sales? 1 day 1 week 1 month 1 year or even longer?Do you know what are the factors affecting sales cycle?

Sales Cycle?

The right strategic sales approach will help shorten the sales cycle.

Sales Funnel

Identify who is your potential customer.

Evaluate the potential size of the business.

Collect information and identify needs.

Identify benefit offering that match prospects needs.

Put together proposal with measurable benefits.

Present your benefits to the prospect and seek for the agreement on the benefit. Then ask for the order.

Pareto's Principle - The 80-20 Rule

If this is true you need more prospects in your bank account.

First Meeting

Remember First meeting is very importantHow would you like your customer to remember you is up to how you present your self to them.First meeting first impression.Presence in the professional mannerDress properlyMake the customer know that you know their business so prepare information about your prospect businessSell the company first, your self as second and the products last.

Preparation for the first meeting with customers

Dress properlyPersonality/professional mannerCompany profile informationProduct information/PricingApplication information and reference customersCustomer business informationQuestionnaires to explore for more information

Collecting information

Customer businessTheir success factorsCurrent products in use/Price/SupplierServices from current supplierProblem issue with current product/supplierCustomer production/machine info/application of lubricantsCustomers expectationCustomer decision making process (who is who in decision process?)Customer decision factors(price/quality/service/approval?)

Understanding Customers needs

Understanding Customers Needs

Listen carefullyAsk questionsRe-check/re-confirm our understandingFormulating the offer with customer needQuantify the benefits and the profitRe-confirm with the customer if the offer meets their needsFinalize the offerConvince for the order

Where to find customer info

Industrial estate officeSurvey of your territoryInternet websitesNewspapers/magazines

Customer Selection

You want to eat big fish or small fish?

Results of poor customer selection

Waste time and money for account maintenancePoor profitabilityLost of strategic business directionStock issue, high number of SKU with small volume and extra effort to manageHigh delivery costHigh service costExtra work load for invoicing and collecting money cause extra operating cost low profit less bonusAnd more..

Customer Selection Criteria

Justifiable volume?Sales cycle time? Too long?Profitable business?Barriers? OEM a/pproval/very low priceRisk of bad debtFit with our strengths/expertise?Have resources to support the business?Product availability/volume/lead time?Customer behavior/decision criteria?Strategically fit? Low volume but good reference/high profitability?

Dont waste your time with non-target prospect!

OUR TARGET

Customer Value Metrics Criteria

High Value CustomerWilling to Pay the PriceProducts & ServicesLooking for continual ImprovementAsks not tellsLong term focusHas Self Evaluation MetricsPays the BillsInnovativeTakes RisksUpper Management Participation

Medium Value CustomerPrice is importantNeeds to justify everythingDoes not necessarily want radicalchange.Will listen to opportunities but is Subject to the opinion of upper management

Low Value CustomerPrice is first evaluationEnjoys the quoting processWants all of the benefits and Is not willing to pay for anyOf the benefits just wants it allWhat have you done for me lately

Poor Selection CustomerPSPrice & Price OnlySlow PayLooking for the next dealWhat have you done for me lately

Time Management

You need to make sure that you spend your time wisely each month.Know when to call for an order. Many customer could not accept delivery after date 25th.Some festive months have less number of working days.Spare you time (few days/month) for surveying new markets/prospects and make a sales call to new prospects. Keep adding new prospects on the list.Collect the checks on due dates.You can manage some small accounts by telephone.Spend more time with the key accounts and less time with small accounts but you must meet or talk to all of them every month.

Customer Retention

Customer Retention

Always ensure customer satisfactionProduct qualityOn time deliveryConsistent after-sales servicesFast respond to customer inquiry/problemIt is team effort activity not just sales functions jobIt requires efficient internal communication and cooperation.It is much easier to maintain and expand business with existing customers than finding the new ones.

Why a sales rep failed to sell?

Customer Management

Key accountsTeam approach (sales/technical/logistic/finance)Face to Face meeting/visit 2 times/monthExtra service (condition monitoring/training/joint develoment project)Account info update to the teamMedium size accountsSales rep as team leader with team supportFace to Face meeting at least once a monthAccount info update as necessaryLook for the expansionSmall size accountsSales rep and customer service rep follow up orderA short time visit or telephone follow upMinimal or no on-site after-sales services

Target Management

Volume

Year

So do all the businesses

Every accounts/sales territories count for growth.

We all expect higher income every year.

Where the new volume come from?

Expanding: Existing customersRe-gain: Lost customersNew opportunity: Prospects

Check your bank account!Do you have enough stock of prospect/projects?Keep topping up the list.

It is much easier to sell more to existing accountsOr to re-gain lost accounts than selling to the newProspects.

Target Management

Your Volume base

Your Growth Expectation

Your new businessesNew prospects/existing accounts/lost accountsKeep adding new prospectsGet the top 10 projects move aheadTotal potential net contribution of top 10 projects must be at least 3 times larger than the gapGet helps from your supporters

Your Existing businessesEnsure your customer satisfactionMaintain your good serviceMonitor sales by accounts by products on Weekly basisMonitor your competitor activity with youraccounts

Total Target

GOOD LUCK!

Thank you for your attention.