Warm Reminder Click ↑ "FMCG Distributor Professional Consulting" for more marketing and distributor internal management content. "Eight Steps of Visiting" and "Three-Step Negotiation" No Longer Effective? — Mastering Channel Customer Psychology When dealing with channel customers, some questions can put you in a difficult position. For example, when you are distributing products, a customer might ask: "Has the neighboring wholesale department taken any?" If you answer "Yes," the boss will say, "If they took it, I won't." If you answer "No," the boss will say, "Wait until they take it, then I will." What should you do? This involves a complex channel psychology issue. Therefore, only by mastering channel psychology can you answer the boss's questions correctly.
In marketing practice, we inevitably deal with a large number of channel customers. Many salespeople return from the market exhausted, both physically and mentally. The channel is too difficult to handle. Some sales managers have said: "After a lifetime in sales, I've never seen the channel satisfied."
This is actually normal. It's a buyer's world. The channel lacks nothing, especially salespeople—there are more salespeople than customers. How can they not be annoyed? Salespeople and the channel are not on equal footing. The channel is superior, picky, and always finds faults. But even in the era of "terminal is king," we still need to use the channel to expand the market. We must face it, not avoid it. Channel members include those in urban areas, townships, male bosses, female bosses; some are generous, some stingy; some impulsive, some cunning; some treacherous, some honest; some from different customs, some from different ethnic groups. Most channel members are highly intelligent. The words they say to salespeople are purposeful, and the information they convey is processed and filtered. Many salespeople often say: "The market is calm, why did they suddenly stop selling our products?" Or: "Competition is fierce, competitors are promoting, and many customers are unwilling to sell our products." This reflects that either you are not sensitive to the market and fail to receive the information transmitted by customers in time, or you lack market judgment and cannot discern the chaotic information from customers. In a word, you haven't mastered channel psychology.
So what are the channel psychologies? Let's summarize:
1. The Psychology of Seeking Discounts Merchants pursue profit, and seeking discounts is the most normal and common psychology for all merchants. However, due to Chinese subtlety, no one will tell you directly. They always convey this signal through clever questions. Sales personnel need to capture the purpose behind these signals.
For example, a boss who usually ignores you greets you warmly today. Be careful, because she wants to ask for gifts.
A customer tells you: "A terminal is about to open soon, with great potential." This is seeking your support.
When a customer complains: "Business is hard, not making money," if your product is a leading product in the market, this is a very dangerous signal. It indicates two things: they might want to ask for promotions, or a competitor might be in contact with this customer. You should investigate from the side.
When you deliver goods, the customer could order five cases but only orders two. What does that mean? They want some discounts.
When your product's original favorable display position is taken by a competitor, don't argue. If you haven't been away for a long time, it's definitely because the competitor gave the customer more benefits.
When you distribute products, regardless of your product's price, the customer will say the price is high. They can always name products cheaper than yours and products with more promotions.
Customers' pursuit of discounts is endless and never satisfied. As sales personnel, what should we do? Here are some techniques:
When a customer asks for gifts, whether you have them or not, don't be afraid. Stay calm inside, but appear apologetic on the surface, and promise to bring them next time (remember to fulfill it), because your visits have a cycle, giving you ample time to prepare. Give gifts "multiple times, small amounts." Visit frequently and give a little every now and then. When you have many gifts, store them separately and don't expose them. Don't dwell on the gift topic with the boss; quickly shift the conversation to the issues you care about.
When a customer asks for support, you cannot refuse. You should propose corresponding conditions (such as ordering a certain quantity at once, or signing a short-term sales contract). If they can't meet your conditions, they naturally won't raise the request again. Also, in such cases, be sure to report to your supervisor and file it within the organization to avoid inconsistent answers if they ask others the same question.
Pay close attention to the movements of major competitors. This can be reflected in the customer's language, inventory changes, and display changes. Stay highly sensitive and take decisive measures.
Believe that what customers say is true. You can't disbelieve customers, but you can't easily believe them either. Verify each point. For doubtful information, don't reject or easily agree. Investigate and then reply, and be sure to reply to the customer.
2. The Psychology of Finding Faults Customers always compare your shortcomings with competitors' strengths. They might say your price is high, or you're not famous, or you have no promotions, or the quality is poor, or the service is lacking. They can always find faults. This is a strategy many customers use to deal with suppliers: to psychologically attack you and suppress your momentum. Because every transaction or communication with a customer is a negotiation process. If they undermine your confidence, you will make concessions, and they achieve their goal. It is said that Walmart excels at this. Generally, suppliers can't see the buyer in the first two appointments or visits. On the third visit, they get only a few minutes of communication. On the fourth visit, they harshly criticize your product and service, finally forcing you to voluntarily concede and add favorable terms.
For customers' fault-finding, we should be calm, humble, composed, and neither servile nor overbearing. Never oppose the customer's accusations, but state your advantages and selling points, explain patiently, and compare our strengths with competitors' weaknesses. Learn to use the "Yes, you're right... but" sentence pattern. And the more thoroughly you understand the market, especially competitors, the easier it is to handle customer pickiness.
3. The Psychology of Exclusive Sales Many customers hope to have exclusive sales within a certain area, especially in county towns and townships. Because competition among merchants is fierce, exclusive sales can control prices and profits. But unless adopting a distribution model, suppliers generally won't let one customer exclusively sell the product, unless you have sufficient strength.
For this psychology, we first need to reason: the market must be developed together. A single company may seem to have high profits, but without sales volume, it will also lose customers. Secondly, give more gifts to customers with greater strength and adopt differentiated policies so that multiple customers can sell. Or start distributing from small customers, then use exaggerated promotions to create a booming situation and stimulate other customers to order. More often, we let some customers sell first, give up some, and achieve a distribution rate of 60-70%. Then slowly look for opportunities to expand the share.
4. The Psychology of Following the Crowd Many small and medium customers have a strong herd mentality. They don't dare to take risks themselves. If others stock up, they do too; if others don't, they don't.
For this psychology, we first find influential customers to stock up, even if we relax conditions a bit (tell him only he has this treatment, other customers don't enjoy it, and ask him to keep it secret). Then when delivering goods, make a big scene so other customers see it. Then it's easy. As the saying goes, "Capture the ringleader first, and the rest will follow." I once promoted instant noodles in a township. I first found the most influential Boss Zhang on that street. No matter how I persuaded him, he refused. We tried every possible method, but he still refused. Finally, I said:
"Brother Zhang, can I put 20 cases at your door first?"
"Even if free, I don't want it. There's no space inside."
"Brother Zhang, it's not for you. Just put it at the door for a while, and I'll take it away later."
"Okay, but if it's lost, I'm not responsible."
"Haha, no problem. Would anything get lost at your door, Brother Zhang?"
So we placed 20 cases at Boss Zhang's door, stacked high and conspicuous. Then we went to other shops on the street and promoted:
"See, Boss Zhang has ordered. Can it not sell well? Order a few cases?" Without much effort, almost all the dozen or so customers on the street ordered, and over a hundred cases of instant noodles were quickly distributed, all for cash.
Finally, we returned to Boss Zhang: "Brother Zhang, see, everyone has ordered. As the big boss, you should give some face. How can we take it back?" Seeing that others had ordered, Boss Zhang couldn't figure out what was going on and was too embarrassed to refuse, so he said, "Alright, alright, leave ten cases."
5. The Psychology of Seeking Market Information Customers have a strong desire to probe market information. Our minds should be filled with all kinds of information, macro and micro. Every now and then, reveal some "valuable" information to customers to earn their trust, and you'll also get the information you want. But never spread false information. Sometimes customers deliberately ask: "There's a buy-ten-get-one-free policy now, right? So-and-so said so." Never verify with that person. This is a trick to see if they can get preferential policies. Sometimes customers say: "Zhang San's business is very good, delivering hundreds of cases a day." This is actually trying to get information about Zhang San from you. Don't take it at face value.
6. The Psychology of Showing Off Many customers like to show off in front of factory personnel that they sell well and fast. The purpose is to gain the factory's attention and obtain more benefits. If the relationship is close, they might talk about their children, their dog (or other pets), their beloved car, and other things they are proud of. This is a good opportunity to strengthen the relationship and encourage the customer. Be sure to go along with their topics and give appropriate praise. This way, you not only sell products but also make friends.
7. The Psychology of Fearing the Opposite Door and Neighbors There's a saying: "A distant relative is not as good as a near neighbor, and a near neighbor is not as good as the opposite door." But among merchants, it's not like that. More than 50% of customers cannot get along with adjacent or opposite competitors, and 70% of merchants are vigilant and worried about adjacent or opposite competitors. This is caused by fierce competition. Therefore, when distributing products in areas with dense merchants, pay attention to this subtle psychology and objective market form. Be careful when distributing between adjacent customers to avoid inadvertently offending them. So if a customer asks: "Did the neighboring wholesale department take it?" You can't easily answer "Yes" or "No." Instead, judge based on the situation: if the two are equally strong, the probability of mutual exclusion is high; if the strength gap is too large, the probability of following is high. If you can't judge the relationship between the two, the following two answers are more appropriate: 1. "I haven't distributed to them yet; you have priority." 2. "They said they wanted it, but I haven't given it to them yet. I'll give it to you first. You decide how to distribute." Generally, after distributing to a relatively large customer, don't immediately go to their opposite door. Of course, this psychology can also be used to our advantage. If a customer's conditions are too high and you can't get in, then distribute to their opposite door or neighbors, and even run promotions to divert their customers, forcing them to comply.
8. The Psychology of Vigilance We are always told: "Don't talk to strangers." Customers are the same. They are wary of salespeople who come to their door. They don't know your background and dare not deal with you. Their concerns are: Will I make money? Will it sell well? What if it doesn't sell? These questions haven't been answered, so they speak cautiously and won't buy your goods.
For example, you ask: "Is the boss in?" He usually looks at you and says: "The boss is not in" (even though he is the boss). So experienced salespeople always ask: "Hello, boss" (whether he is the boss or not), instead of "Is the boss in?" If he answers "I'm not the boss," you say: "Liar, I can tell you are the boss."
"I really am not. I'm just an employee."
"Then you'll be the boss sooner or later. Where is the boss?" At this point, he will tell you where the boss is. Happy. We often encounter this situation: "Boss, this is a new product with promotions. It's very profitable."
"Never heard of it. No one buys it."
"It's a Chinese famous brand. It's being advertised on CCTV. Everyone knows it."
"The price is too high."
"Not high. It's cheaper than brand X."
"People here only recognize brand X. What if it doesn't sell?"
"Our products are returnable and exchangeable."
"Where can I find you?"
"We're at Road X, Number X."
"Okay, come back another day. I still have stock."
So even if you answer so completely, he still doesn't buy. Why? Because he doesn't trust you. After you leave, he might check on you and verify what you said. Maybe next time you go, he will buy because the guard has been removed. So we should fully introduce our products and company, let customers understand us, and dare to make promises to eliminate vigilance. And be sure to visit multiple times. A one-time buy or no-buy doesn't represent the true demand.
9. The Psychology of Rejection In such a buyer's world, customers basically lack nothing. So the first reaction to sales pitches is rejection (including the vigilance psychology mentioned above). Therefore, marketing says: Sales start from rejection. If customers naturally accept, there's no need for sales; just deliver.
For customers' instinctive rejection psychology, we need to move them with benefits. "Good quality, low price, big brand, strong promotions, good service, returnable and exchangeable"—there are always several points that are our advantages and also the benefit points that move customers. Be sure to introduce all advantages, strive to move customers with benefits, and definitely find a reference brand to compare, making it more attractive.
10. The Psychology of Delaying Payment All channel members are the same: they only want to take in money, not pay out. So when delivering goods to the channel, collecting payment is troublesome. The first time you deal with them, be sure to agree on the payment method. For old customers, plan to deliver when the boss is present; otherwise, you won't get paid because the boss is absent. Generally, delivering in the afternoon is most suitable. Sometimes the boss says, "I'm short on cash. Come back tomorrow to collect." Then agree on a specific time and place to collect. Generally, don't let customers write IOUs (especially in the north, there's an unwritten rule: writing an IOU means long-term credit, not writing one means temporary credit). Before leaving, be sure to repeat the collection time.
Sometimes, to distribute products, if customers are unwilling to pay cash, set different distribution policies: give different promotions for cash and credit sales to encourage cash purchases. Sometimes, to achieve distribution goals, you can let them pay half. Be sure to dispel customers' concerns and promise returns and exchanges; otherwise, customers won't be willing to pay.
Conclusion: Facing a variety of channel members and their diverse questions, we find that "Eight Steps of Visiting" and "Three-Step Negotiation" are no longer effective. Actually, it's not that the textbook methods are useless, but that you haven't flexibly applied them with channel psychology. It's like a mosquito repellent charm: it only works when placed inside a mosquito net. Channel psychology is the mosquito net. The author believes that although the channel is complex and changeable, there are still traces to follow. We need to master the psychology of channel members from different backgrounds, personalities, ages, and even environments. Only by mastering the inner thoughts of the channel can we respond flexibly. A Qing Sao in "Shajiabang" could "build a seven-star stove and boil the three rivers with a copper pot" because she understood every customer's psychology. Therefore, attacking the heart is the best strategy.
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