Oct 06

What does Consultative Selling actually mean?

Posted by Caroline Longstaffe at Monday, October 06, 2014

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.Consultative selling reqiures being more proactive & adopting a more long term focus

Transactional selling

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.

Consultative Selling

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.

Consultative selling is  about focusing on the customer & their customers, not on what you have to sell 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 Huthwaite research showed sales people who have insight & can offer solutions & identify new business opportunities will get appointments with senior executivesthey 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 problemsConsultative selling is about having insight, finding solutions to customer's problems & identifying new opportunities

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.

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