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Sales process management is the control of the sales process, covering all stages from initial customer contact to the end of the sale. Its main content includes process control, communication skills, and the ability to build, maintain, and develop relationships. All processes involving customer contact fall within the scope of process management.
Generally, the sales process can be divided into seven stages: finding target customers, qualifying target customers, setting target plans, contacting customers, introducing products, handling customer objections, and closing the sale.
Finding Target Customers
Target customers are individuals or enterprises that have a need for the product or service and have the purchasing power. We mention both individuals and enterprises because there are two scenarios: direct sales (to group customers or consumers) and sales through agents (distributors). We will elaborate on both scenarios.
Direct to Consumers
There are three methods to find target customers:
- Using company resources: Customers from other departments, finance department, service department, advertising agencies, phone and mail lists, in-store promoters, trade show customer lists.
- Using external resources: Salespeople from non-competing companies, professional directories, associations and organizations, newspapers and magazines (especially industry magazines).
- Using personal resources: Canvassing, chain referral, personal observation, assistant method, market consultation.
Agents (Distributors)
This situation is relatively complex because it involves many aspects of agents (distributors). We will focus on the main aspects to be practical and effective.
- Yellow Pages: Including local phone directories, business directories, maps, manuals, consumer guides, professional magazines, etc. Especially phone directories: generally, experienced and strong local distributors will list their company name and business scope in the local phone directory, and some even advertise their company.
- Local newspapers: When entering a new market, buy a few local newspapers; local TV, radio, or these may reveal the names of distributors for similar products.
- Professional wholesale markets: Many cities have small commodity markets, daily necessities wholesale markets, or specialized markets. Visiting these is very effective.
- Referrals from peers and friends: This is the most reliable method. Peers and friends have long-term interactions with distributors and know them comprehensively, saving time and investigation details, and making communication easier and faster.
- Advertising agency consultation: Local advertising agencies know the local market well. They will compete to be your company's advertising agency and will provide detailed information about local distributors.
- Phone inquiries: Call manufacturers of similar products and say you want to be a second- or third-level wholesaler or make a group purchase. Usually, the manufacturer will tell you to contact their local distributor or agent. Of course, you are there to sell your own product.
- Placing recruitment advertisements: This method is costly, quick to show results, requires high operational skill, and can provide a comprehensive understanding of distributors.
- Holding product exhibitions and ordering conferences: This greatly promotes the company's brand image. Professional ordering conferences attract professional distributors.
Qualifying Target Customers
Direct Customer Qualification:
Target customers must have a need for your product, purchasing power, purchase decision authority, and eligibility to buy. Special note: When using personal resources, avoid falling into blind selling or pestering, as this only annoys customers. Deeply understand customer needs and transform product/service selling points into benefits that create value for customers.
Agent (Distributor) Qualification:
- Financial capability: Registered capital, actual investment funds; whether essential operating facilities (warehousing, transportation, business premises) can handle current business; payment methods to manufacturers; capital turnover rate and profit margins; extent of credit extension; bank loan capability; tax compliance; level of debt.
- Market capability: Can they reach target retail outlets with other brands? What is the distribution coverage percentage? Wholesale capability (how many levels of wholesale)? Can their network penetrate surrounding areas? Wholesale and direct sales methods? Can they control prices? Are sales staff skilled and efficient? Are promotional methods scientific and effective?
- Credibility: Peer reputation; manufacturer evaluations (cooperation level); retail outlet evaluations (timely delivery, effective promotions); lawful operation, evaluations from industry and commerce, tax, and banks.
- Management capability: Coordination and internal communication; long-term development strategy; handling of credit sales; control over product flow.
- Family situation: Harmony at home brings prosperity. It is hard to imagine a company with family discord and poor neighbor relations lasting long. Analyzing the agent's (distributor's) personality and way of dealing with people can indicate long-term cooperation potential.
- Agent's (distributor's) philosophy: Mainly business philosophy and style, which is the most critical point. Describe your company's basic situation, product features, and benefits in detail; explain your company's business philosophy and policies to seek consensus; listen to the agent's (distributor's) views on your company, products, and brand to see if they align with your market strategy.
Setting Target Plans
Goals are the driving force that propels you forward; plans allow you to achieve your goals in a prepared and step-by-step manner.
Closing the deal is the ultimate purpose, but it is not the purpose of every sales call. Setting goals is to let potential customers fully understand you, your company, and your product/service; obtain information about the company's needs from new potential customers; find out who has purchase decision authority; leave product literature and samples; understand why potential customers buy from current suppliers; and make a good first impression to lay the foundation for the next sales call.
Goals must be quantified. For example, when visiting a distributor, it should not be just casual talk. We should have a target plan that includes: reviewing how to help the distributor's business; sales during the period; development and maintenance of channels and terminals; sales team situation; existing problems and solutions, and how the manufacturer can cooperate to solve them. Next, check inventory, handle returns/exchanges or damage statistics; explain and convey the manufacturer's sales strategy and policies; understand the distributor's business plan; identify training and management improvement needs; and handle orders and payments.
These are the main contents. Of course, the emphasis will vary with each visit, but there must be a goal; otherwise, the visit loses its meaning.
Contacting Customers
Preparation before contact: Familiarize yourself with the customer's basic information, key details, basic needs and requirements, and find opportunities to start a conversation. Know your goals and plans thoroughly, so you can know yourself and the enemy to win every battle. Also, make an appointment with the customer in advance to increase the success rate and effectiveness of the visit.
There are three main methods: Phone appointment: Introduce yourself and your company; state the purpose of the call to arouse the potential customer's interest; request a meeting; overcome any excuses. Letter appointment. Appointment through a third party.
Customer contact follows the AIDA model: Attention, Interest, Desire, and Action.
Customer contact: The opening statement is important, but do not bring up too many unrelated topics. You can first hand over your business card, state the purpose of your visit, and introduce yourself. Then briefly introduce the company and product. Note: First impressions are crucial. To create a good first impression, you can give a small gift before the opening statement. After the introduction, prepare a simple question to explore the customer's needs and gauge their reaction and interest.
Pay attention to whether your clothing is clean and neat. Men should wear a tie, and women should dress modestly and keep their hair tidy. Determine the main points of this negotiation; decide the key points and priority order in advance; anticipate possible customer questions and prepare responses; during the negotiation, always pay attention to the customer's reactions and understand their priorities; judge the timing for closing.
Introducing Products
The purpose of product introduction is to provide specific product information to target customers, explaining the product's performance, features, usage, and other relevant information.
Types of Sales Presentations
Memorized presentation: The content is carefully planned in advance and crafted by the company's best salespeople.
- Typical form: The salesperson memorizes all content and repeats it to the customer without error.
- Applicable: Door-to-door or telephone sales, with time constraints, and for novices.
- Advantages: Allows novices to present confidently, increases self-assurance, reduces verbosity, and standardizes sales work.
- Disadvantages: Cannot flexibly adapt to different customer characteristics, may become mechanical, fails to arouse customer interest, and ignores customer needs.
Outline presentation: Requires the salesperson to remember the main points of the presentation and improvise on the spot, ensuring no key points are missed while creating a harmonious, friendly atmosphere.
- One form: Programmed presentation, using an outline visible to the customer, along with pictures, photos, sales manuals, or guides to stimulate interest and highlight key points. Advantage: Customers can actively participate.
Audiovisual presentation: Uses audiovisual tools such as slides, samples, videos, films, recordings, etc., to reduce the salesperson's workload while ensuring no sales points are omitted.
Need-satisfaction presentation: Based on the theory of "diagnose the problem, prescribe the cure," meaning that if the salesperson and potential customer cooperate well, they can identify the customer's needs and propose the best solution.
- Requires the salesperson to proactively interact with potential customers, discover and confirm their needs. Only skilled and experienced salespeople can handle this. Suitable for industrial goods or extremely complex products and services, and for bulky products that cannot be demonstrated on-site.
Survey presentation: Also based on the "solve specific problems" theory; difference: conducts a more detailed and comprehensive investigation of the customer's situation.
- Suitable when the main content of the presentation can only be confirmed after fully understanding the customer's environment and situation. Convey the main ideas of the survey to the customer, and present the benefits of the product/service. Investigate, ask customer personnel, inspect company records, and observe the customer's specific operations.
Product Introduction
Describe the product's features and the product itself; explain the benefits to the customer, i.e., what good it brings. If the customer is an agent (distributor), introduce the company's relevant policies and market support, and analyze the product's contribution to the customer's business from their perspective.
Product comparison: List the main competing brands on the market (about three), analyze their strengths and weaknesses, and amplify your product's advantages, using unique selling points to counter the weaknesses of competing brands. If the customer is an agent (distributor), analyze invested capital, expected product sales revenue, gross profit, capital turnover rate, market investment, support, rebates, etc., and compare comprehensively with competing brands. Ensure a relatively obvious advantage.
Product demonstration: For high-tech or complex products, conduct a live demonstration. Benefits of demonstration: improved communication, customer participation, enhanced memory, reduced customer objections, creates a sense of ownership, and reduces salesperson pressure.
Preparing for demonstration: Organize, rehearse, highlight key points, and check equipment.
Effective demonstration techniques: Customize the demonstration, engage all senses, set the pace, involve the customer, choose the setting, capture attention, and demonstrate intangible products. Demonstration tools: the product itself and audiovisual aids.
Issues to note during demonstration: Use the customer's language, show respect for your product, and keep the demonstration brief.
Handling Customer Objections
What are customer objections? Objections arise during the sales presentation; most are communication issues. Only by resolving objections can the final transaction be achieved. Customer objections show the salesperson their interest, bringing the salesperson closer to the goal of making the sale. Types of objections:
- Objections to need – not interested
- Objections to product/service
- Objections to source
- Objections to price
- Objections to buying immediately
- Hidden objections
Plan for handling objections: Listen to the customer's objection; confirm understanding; do not argue; answer the objection; and try to close.
Techniques for handling objections: The "yes, but" method; the indirect method; the feeling method; the questioning method; the compensation method; the preemptive method; and direct denial.