Sales is one of the key concepts in business that characterizes commercial activities. This is usually the final stage of the business cycle. To the question of what sales are, one can give the following answer: this is the relationship between the seller and the buyer, ending with the exchange of products for money.
Organization of Sales in the Company
Organization of sales in companies is carried out in three areas:
- Regional principle;
- Commodity nomenclature;
- Target customer base.
Emphasis can be placed on geography, product mix or target audience.
Sales can also be made by contact form:
- remotely (on the phone);
- direct contact.
Difference between Marketing and Sales
Marketing is a sales tool that generates and increases targeted traffic in organizations. The work of this department is aimed at involving customers in the shopping process, increasing the profits of companies. Marketers bring customers, and at the stage of sales is the direct conclusion of transactions.
Marketing differs from sales, primarily in the intensity of engaging feedback channels with the market. The main participants in sales are the seller and the potential buyer.
Buyers are classified as cold warm and hot. The speed of the conclusion of the transaction depends on the activity of buyers.
Key Stages of a Transaction
A transaction is a bilateral agreement. It is carried out in stages and includes:
- Assessment of the product, its characteristics, value. The product is analyzed for many indicators.
- Preparation for sale.
- Direct conclusion of the agreement.
- Verification of the parameters of the concluded contract.
- Transfer of goods.
A sales funnel helps you plan and evaluate business performance. This is a popular marketing tool. A sales funnel refers to the road that the average buyer walks from his interest in an offer to make a purchase.
Every business organization must have a sales plan. It reflects the goals and channels of the sale of goods and services. Sales channels are corporate (direct), wholesale, distribution, and retail. If sales fall, you must first analyze which channels do not fulfil their plan.
Best Sales Methodologies
There are several sales methodologies that are used by sellers to track, influence and respond to customer actions.
This technique identifies the pain points of potential customers for the subsequent building of trusting relationships with them, arouse their interest in the product sold by the company and proceed to the deal. This abbreviation includes questions aimed at identifying the pains of potential customers, building trusting relationships with them. It is important to interest customers in the product and moves on to sales.
With SPIN sales, you can push a potential buyer to understand their own profit and form a desire to listen to a commercial offer. Spin stands for Situation, Problem, Implication and Need-Payoff which has been described above.
This technique was created for the B2B digital industry, in it, the concept of “budget” in the vast majority of organizations is missing. But the technique is convenient and great for B2C sales. For this reason, it has become so in demand.
NEAT stands for:
- Basic needs;
- Economical effect;
- Contact with management (Authority);
- Time frame.
SPIN sales are aimed at holding a short conversation and completing the transaction on the go. NEAT sales are distinguished by the fact that they need more thorough preparation. This model is used in the implementation of expensive transactions and the implementation of relevant decisions.
The feature of this script is that the traditional sale is replaced by the implementation of the product application concept. Customers are shown the ability to solve problems after their acquisition.
The emphasis in this version is on the fact that the seller turns from a speaker into a listener. The company analyzes the environment in which potential customers live, tries to find a concept that helps solve existing problems. Then it connects the product with a developed conceptual strategy.
Designed for busy people. Business people value time. A commercial proposal should show time savings:
- at the presentation stage, (Simple)
- at the purchase stage, (Invaluable)
- at the stage of integrating it into a lifestyle (Align)
- and at the stage of practical use. (Prioritize)
In short, we must be simpler, more valuable, always agree and raise priorities.
This technique includes three components:
- focus on the goal.
It is important to understand the business of the client, prepare options for improving it. Establish communication with all the links in the organization and wait for a convenient moment for sale. A client with whom a warm and long-term relationship is built perceives the seller as a professional in his field considers him an expert. This leads to an easy and quick transaction.
Sandler Sales System
The seller, having a casual conversation with the buyer, emphasizes the benefits of the transaction. Communication is built so that the buyer feels the benefits of potential opportunities and makes an independent decision on the need for acquisition. The secret of success lies in identifying all the problems that may arise during the discussion of the transaction in advance.
Customer Oriented Sales
The era of the imposition of goods has ended. A modern seller is, first of all, a consultant.
- The methodology is focused not on direct sales, but on clarification of requests and needs. And only after that, a ready-made solution is proposed.
- The main rule of the consultant: “Ask and listen, not impose.”
- A modern client is looking for quick answers and simple solutions. Do not try to play the role of someone who wants to sympathize with the difficulties of buyers. Be authoritative and prompt.
- We must speak with those who will pay for the product, and not use it.
- Mass implementation is more attractive. Bet on quantity, not exclusive, of the highest quality. The product sold must provide acceptable quality.
- The times when the client tried to adjust to the seller’s opening hours and arrived at the meeting during his working hours have sunk into oblivion. The sales schedule should be in accordance with customer requests.
- Metrics. What will be the financial result of the transaction?
- Economic customer. Who will be responsible for profit or loss? Who will be the losers or gains from the deal?
- Decision making factor. List of requirements (material, technical) made by the buyer.
- The process by which a decision is made. Features of the transaction. Ways to obtain consent.
- Identify Pain. What are the main challenges facing the business?
- Champion. Who will present your organization or brand to a client?
A technique that increases the number of closed transactions. Here the main concepts are:
- a customer representative capable of making a purchasing decision,
- evaluation criteria of a commercial offer
- decision-making process
- definition of “pain points” at the buyer,
- building relationships using the Challenger sales methodology.
The trick is to replace the product with a service that the customer will like more because he will more easily solve their problem. For example, if a person is interested in a screwdriver, you need to find out why he needs it. If the tool is necessary for the assembly of furniture, it is better to offer him this service. Thus, you will relieve him of the need to engage in something unusual for him. The same principle applies to more complex tasks, such as building local networks, installing video surveillance, etc.
This methodology includes the following steps:
- Problem determination
- A suggestion of a possible solution
- Making a strong case and ROI / ROI
- Transaction completion and delivery / goal / implementation
- Assistance provided to the client during the testing of the proposed solution until it is possible to achieve those indicators that were promised.
The vast majority of organizations prefer not to notice the last of the points, but it is one of the keys if there is a desire to increase your LTV (Life Time Value) and turn such a client into a permanent one.
The behaviour of buyers along with methods and processes of sales have undergone significant changes. Now the vast majority of buyers decide to make a purchase before the seller comes into contact with him.
The purpose of the methodology is to help the lead (potential buyer) go the way from making a decision to your site specifically. Sellers care about how a person learns about a product, what opinion he will make about it, how to simplify the process of finding a product supplier, and how the lead will be converted into a customer.
The listed methodologies are considered the most effective, they have proven themselves very well and are popular all over the world.