When we teach people about consultative selling, adopting a consultative sales approach, what exactly do they need to do? We believe that becoming a consultative sales person requires becoming more proactive and developing a new mindset. A mindset which is different from the traditional transactional focus.
Transactional salespeople focus on the transaction, on making the sale. They focus on what they have to sell, their products and services and how these might be able to benefit the customer. The focus is on closing the deal; and therefore it tends to be short term.
Truly consultative selling requires a new mindset, a different approach, a change in the way we are seen by the customer. A consultative sales person wants to be viewed by the customer as being an expert, as someone who is focusing on them, and on their clients too i.e. the customer's customer. Consultative sales people focus not simply on winning the deal but on helping the customer to win. This requires developing a more long-term focus. Clearly the objective is to still win the business, but at the same time a consultative sales person wants their customer to win too – so more business can be developed with their customer in the future.
Developing a new mind set
This new mindset is fundamentally about being more proactive and less reactive in the sales approach. Reactive, transactional sales people respond to customer needs and react to customer demand. Proactive sales consultants look for ideas and opportunities to help the customer to win in their market.
Consultative sales people understand that customers value insight
Research conducted by Huthwaite research reinforced this point; thousands of senior executives said they would be willing to meet with a sales person who was proactive and could deliver real value and insight. These executives said they would be happy to meet with a sales person who could do the following:
1. Identify unrecognized opportunities
By this they meant they wanted ideas, proactive ideas about new opportunities, opportunities ‘that they had not recognized themselves’. In other words, the value to the senior executive wasn't from the sales person’s products or services but from their potential insight, being able to suggest and discuss new ideas and opportunities which the senior executive had not yet considered and
helping to identify a new business opportunity.
2. Find solutions to problems
Senior executives also said they would talk to sales people who could help them to find a new solution to an existing business problem, which they were struggling to resolve. They thought that the sales person might be aware of a solution from talking to other customers. Again the belief was that the sales person could bring insight from outside the company.
3. Highlight future business problems
The third area was perhaps the more challenging for sales people. Senior executives said they would meet with sales people who could highlight a future business problem which they might not have realized was coming. Again, the sales person's value is in their insight and expertise, because they are out in the market, they are aware of what’s happening; observing trends, being proactive.
The insight and value of a consultative sales person
The value a consultative sales person provides comes from their expertise and insight, not just from their products and services. It comes from their ability to identify new opportunities, to find new solutions and to identify future business problems. A consultative sales person's value is in their proactivity and in being able to articulate these to the customer - this is the approach and mindset we advocate for consultative selling.
If listening is important to developing a consultative selling style, the ability to ask good questions is just as critical. Asking the right sales questions will help to build the customer relationship and advance the sales process. This involves trying to understand what the customer is thinking so that we know how to respond to them and offer them the best solutions to address their concerns. We do this by asking them the right consultative questions to determine:
an understanding of each other
their personal perception
Whether they have a different view
What they think is the most important issue
What their underlying concerns are
The answers to these fairly simple questions helps the sales person to focus their value proposition on things that are important to the customer. The type of insightful questions that the sales person asks conveys a great deal to the customer about the value they can provide, but how?
How to ask the right sales questions
If you think about the news for example, a news reporter demonstrates their experience, their knowledge and their understanding of a situation by asking the right sort of questions to a politician. Similarly, a sales manager can show how much they know about the business by asking insightful questions of a salesperson about where they are in the sales cycle, or the buying cycle. You might have experienced this yourself, where the sales manager can convey a lot about their knowledge, not by telling you, but by asking pertinent questions - and it's the same for the customer - when they see a salesperson who asks insightful questions it shows more than anything else that they understand, and that they know what's happening.
Different types of consultative questions
These are the five consultative questioning types all of which can provide you a great deal of information:
Business value questions
Inspiring your team to adopt a new culture
How do you get your team to behave differently, to adopt the culture, the values and vision that you have? Regardless of how many programs you run, training you introduce or speeches you make, if the people within your organization don’t either understand or are not inspired enough to want to embrace change little will alter.
So what can a leader do about this? I would suggest one important step would be to look at the corporate culture of your company. How valued do your people feel? Do they really understand the vision and feel that they have a part to play? Do they believe that their efforts can and would make a difference or do they consider that all that anyone cares about is the bottom line, increased revenue numbers? Corporations that are successful like Southwest Airlines, Zappos and Google all have value based cultures, they care about core values such as integrity, ethics and most importantly their people, does your company?
What is a value based culture?
A corporation with a value based culture means that they, as an entity, give equal weight to ethics and business success in performance evaluations. They celebrate when members of the team show integrity and core values like honesty and trust. It doesn’t mean that sales success and increased revenue isn’t important, it means establishing a culture that cares. The corporate message to employees says we care about our people’s success, we will help with their development and equip them with the right skills to achieve the personal success they seek, we believe everyone matters and together we can achieve our goals.
How is a vale based culture created?
Changing a corporate culture so that all employees really understand and embrace it won’t happen over night and it must be led from the top.
A value based culture needs to be:
- Part of the entire corporate strategy - It has to a carefully thought out strategy led from the top down, embraced at every level and incorporated into all the processes of how business is achieved. It must run through every communication and corporate practice including performance appraisals, promotion and recruiting practices. It is not just a matter of introducing new compliance or ethics programs it has to be all encompassing evident in everything the company does.
- Demonstrated by example - The best way a leader can demonstrate a caring value based culture is in their behavior; they way they talk to people, how they treats others at every level, whether they are accessible, whether they are prepared to listen, are empathetic and understanding. Such leaders are humble and find meaningful and visible ways to show how living company values in day-to-day behavior can help deliver on the priorities.
- All encompassing within the corporation - To succeed the culture cannot function in isolation, it has to touch the hearts and minds of everyone within the organization. Leaders can achieve this by developing deeper partnerships with all departments; human resources, corporate communications, and environmental and social responsibility departments.
Recent research by the Catalyst Research Center for Advancing Leader Effectiveness, which collected 1,500 responses from workers around the world, as reported in the Harvard Business Review clearly showed that: 'Employees who perceived altruistic behavior from their managers also reported being more innovative, suggesting new product ideas and ways of doing work better…..Moreover, they were more likely to report engaging in team citizenship behavior, going beyond the call of duty, picking up the slack for an absent colleague--all indirect effects of feeling more included in their workgroups.'
A culture that emphasizes the promotion of core values, ethics and leadership produces happier workers, improved customer satisfaction and a sustained competitive advantage in the marketplace. Isn’t that a culture you would like to have?
When we talk about consultative selling we are constantly stressing the importance of developing trust to help build a successful business relationship. Think about it for a minute, who would you prefer to buy from, someone who puts your back up and makes you feel uncomfortable or someone you like and respect? Trusting people is the key to any successful relationship and it should be the consultative sales person’s continual focus throughout the entire sales cycle. ‘How to develop successful sales relationships’.
The relationship test
There are three basic tests to a relationship with someone, which your customers almost certainly consider when they start to get to know you:
Do you trust them? - Trust is the most important. If you can’t trust the other person, you have no relationship or partnership.
Do you like them? – 'Can I get along with this person?' 'Do I want to work with them?'
Can they do the job? - 'Can they provide the service?' Your customer often has many choices as to who can provide the service they are seeking. Have you ever wondered why a customer has bought an inferior product or service from another supplier? It’s because they trusted the person who sold it to them.
People buy from people
The reason that trust is so important is “people buy from people” and “they buy from people they trust and like it” - ‘people do business with people’. To illustrate this point let’s look at the example of Mark McCormack, founder of a company called IMG and well known from his book “What they don't teach you at Harvard Business School”. McCormack built the largest sports marketing company in the world - he developed sponsorships for golfers, tennis players, racing drivers and was once considered the most powerful man in sport. He was renowned for having built most of his successful relationships with the world’s greatest sports people, on the basis of a handshake! McCormack said: “it's a basic fact that all things being equal, people prefer to buy from friends, it is also true that when all things are not equal people still prefer to buy from friends!”
How to build trust with the customer
So what can you do to develop trust with your customers and successfully build your relationship with them?
Focus on the customer first. Think about the customer's customer and show that you really care about their success.
Demonstrate your experience, your knowledge and your expertise all of which will add value. People will then start to trust the information that you give them.
Deliver what you promise. It sounds simple but you would be surprised how few sales people simply follow the basics.
Be reliable and trustworthy. Become known to the customer for being reliable and trustworthy. This means simple things, like returning calls on time; sending follow-up information if you promise to do that. It means maintaining confidences. More than anything else it simply means "if you say you're going to do something, do it"