Building Effective Client Relations V52

BUILDING EFFECTIVE CLIENT RELATIONS

JULY 2017 | VERSION 53 D I G I B O O K

TABLE OF CONTENT INTRODUCTION .............................................................................................................. 3 DIFFERENCE BETWEEN SALES PERSON AND BUSINESS ENABLER .................... 3 MYTHOS OF A SALES CONSULTANT.......................................................................... 4 THE SALES CYCLE ........................................................................................................... 6 GOAL SETTING................................................................................................................. 7 LONG TAIL ........................................................................................................................ 9 COMMUNICATION SKILLS............................................................................................ 9 THE COMMUNICATION PROCESS ............................................................................ 13 TRANSACTIONAL ANALYSIS ..................................................................................... 14 TRANSACTIONAL ANALYSIS MODEL...................................................................... 16 DISC .................................................................................................................................. 19 CUSTOMER...................................................................................................................... 20 INTERNAL CUSTOMERS AND EXTERNAL CUSTOMERS ...................................... 22 NEGOTIATING FOR SUCCESS ..................................................................................... 24 ACCOUNT MAPPING.................................................................................................... 28 RELATIONSHIP VERSUS POTENTIAL GRID............................................................. 29 CONCLUSION................................................................................................................. 30

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INTRODUCTION

In the current scenario where ‘competition’ is the name of the game, it is necessary that you stay ahead of your peers. Sales, as a function is dynamic in nature. It demands that you are engaged in a constant endeavour to upgrade and hone your skills. This manual will help you:

 Understanding the difference between salesman vs. sales consultant  Understand yourself by helping you gauge your style of communication  Become an able and seasoned negotiator  Set goals and achieve targets

WHAT MAKES YOU THE BEST?

Building relationships

Influencing and negotiating

Effective salesperson

Goal orientation

Planning

Process excellence

DIFFERENCE BETWEEN SALES PERSON AND BUSINESS ENABLER As seen in the table below, the difference between a sales person and business enabler lies in taking ownership of organizational goals, being a leader for the team and excelling in selling on terms which are advantageous for the organization.

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SALES PERSON

BUSINESS ENABLER

Focussed on creating a market for new products along with existing products

Focussed on selling existing products

Lacks ownership towards organization

Owns up to the goals of the organization

Takes challenges and converts them into opportunities

Does not like to take challenges

Does not create a high performing team

Creates a high performance team

Does not identify opportunities

Are the trendsetters

Ends up selling on discount

Sells concept and product follow

Fears success so that expectations do not increase Enjoy success and new highs

Hungry for learning, always exciting about change

Does not want to learn

MYTHOS OF A SALES CONSULTANT

7

8

9

Sales genius (Champions league)

Cash and carry

Top salesman

4

5

6

Money can

This-and-that consultant

Relationship salesman

2

3

1

Order taker

Implementer

Consultants

Medium

High

Low

Consultant

Service

The Mythos model for sales consultant describes insights about the correlation between the consultant who belives in providing top class services to the customers and the salesman. This grid categorizes sales person into various categories.

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 Order takers: These salesmen are not focussed on the sales and the services to the customer. They wait for things to happen and deal closes when a customer himself places an order. They should be involved in the process of interacting with the customer, analyzing the customer needs and maintaining good relationship with them so that they will be able to provide good services to the customer.  Implementers: The implementer are the people who provides good services but still are unable to make the sale. They should also focus on closing deals by increasing their selling skills. Provide them the product knowledge required to be an effective sales person.  Consultants: This category consists of people who are poor salesmen but excellent at customer handling. They need to boost their selling skills in order to move to quadrant 9.  Money can: These salesmen are average at selling but poor at providing service to the customer. They should enhance the level of customer satisfaction through interacting with the customer, analyzing the customer needs and maintaining good relationship with them.  This-and-that consultant: The people in this category are average at making sales as well as in providing services. They lie on the boundary and hence need a push to move to quadrant 9.  Relationship salesman: They are good at maintaining relationships but average in conducting successful sales. They should concentrate more on their selling skills.  Cash and carry: They mainly give attention to the selling of the products or services and enhancing the revenue. They should enhance the level of customer satisfaction through involving themselves in customer interfacing and resolving their complaints.  Top salesman: These people are the potential salesmen in the organization. They should be involved in the customer interaction so that they will understand the customer needs and the feedback given by the customer. It will lead to the enhancement in the services given to the customers.

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 Sales genius: This category consists of the top salesmen who are excellent in the overall business skills. They maintain good relationship with the customers and provide them the best services. Support them in their activities and decisions.

THE SALES CYCLE

Plan the call

Develop account

Fix a meeting

Identify the customer’s

Deliver solution

Present the solution

Close the call

Handle objections

Plan the call - This step involves knowing your customer well. A sales person should do this research in advance before starting to interact with the customer. Fix a meeting - This step involves planning a meeting well in advance after a discussion with the customer. Identify the customer’s needs - This is the stage of requirements gathering where the sales person has to collect all the critical information from the customer by asking the right questions. These questions must be prepared well in advance. Present the solution – Based on the needs assessed previously, create a solution in the form of a well structured presentation or proposal. Overcome objections – A sales person must anticipate the objections and should be ready with the appropriate responses to overcome those objections.

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Close the deal – A successful negotiation results into the closure of a deal. Finalizing the terms and conditions of the delivery is also a part of this step. Deliver the solution – A successful delivery is possible only with team work. A sales person should always be proactive in providing any kind of sales support if required. Develop account – Account development is a very important stage of the entire sales process. A well defined action plan must be put in place and implementation must be on time.

GOAL SETTING A goal may be defined as a desired end-state that an organization or an individual seeks to achieve. Many people attempt to attain goals within a specific time by setting deadlines.

Steps in goal setting For effective goal setting the following steps could be incorporated:

Know exactly what your goal is

Be willing to take the extra mile

Focus on your goals everyday

Get passionate

Take consistent action

Strategic goals

Strategic goals are the statements of mapping what you wish to achieve over a particular period. They help you in analyzing your vision, mission, strengths, weaknesses, opportunities and threats. There are eight major areas of strategic goals:

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MAJOR AREAS

DESCRIPTION

Desired share of present as well as new markets including areas in which new products are needed and service goals for customer loyalty

Market standing

Innovation

In products or services as well as skills and activities

Supply, development, performance of managers and other organizational members, employee attitudes also development of skills, relations with labour unions if any

Human resources

Financial resources

Sources of capital supply and method of using capital

Physical resources

Facilities, how they will be used in production and services

Productivity

Efficient use of resources relative to outcomes

Social responsibility

Areas of concern to community and maintenance of ethical behaviour

Profit requirements

Level of profitability and other indicators of financial well being

SMART goals Goals in order to be accomplished effectually need to be SMART.

When a goal is specific it has higher chance of being accomplished

S = Specific

There must be concrete criteria to measure the goals; it helps staying on track

M = Measurable

Being passionate about the goals set make them achievable

A = Attainable

Understand the feasibility of the goals

R = Realistic

Goals must always be subject to a time frame

T = Time bound

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LONG TAIL

P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P14

Product portfolio

The concept of long tail explains that the cumulative revenue of less popular products is more than the cumulative revenue of popular products. More often the focus is on the popular products and less popular products are given less attention without analyzing the impact it can have on the top line.

COMMUNICATION SKILLS Significance of communication

The role and significance of communication can hardly be overemphasized. Communication forms a basis of human relations. Without communication, relations would cease to exist. We start communication right from the time we are born. But effective communication is the ultimate goal. Communication as we know, it is the process by which people exchange thoughts, ideas, feelings, opinions, plans, etc. but effective communication implies that there is a

two way process.

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In any organization, communication is given the highest level of importance. When it comes to sales, effective communication is paramount. Effective communication happens when the receiver has understood the sender’s message. If you want to emerge as leaders in this dynamic and competitive function of sales you first need to comprehend your style of communication. Result oriented communication The success of an individual depends on the effectiveness while communicating. The communication should be genuine and sincere. The individual should be empathetic to the opposite person. Any effectively delivered and understood message must be:  Structured mentally by the initiator  Prepared and sent so that it communicates specific and precise meaning  Heard by the listener  Understood and acted upon by the receiver In this process a number of things could go wrong. The sender may not communicate what is intended and the receiver may filter the conversation. Few steps in result oriented communication are as follows:  Take ownership Communication breakdowns often occur and the recipients do not interpret the message the way it was intended. A common response is to blame the recipient. To be a result based communicator, you should care more about the execution of effective communication than blaming ineffective communication. You must

ensure the receiver interprets your message correctly. This is not easy because, you have no control over their brain.

 Set your intentions You must become more intentional about planning your important messages and must be able to

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prioritize the content of the message.

 Interact with people openly and directly Direct and open communication with others fosters trust, enhances the flow of information and builds stronger relationships. Let people know about information that affects them well in time; respond promptly to questions and concerns. Give positive and constructive feedback.  Provide others with access to information People need up to date information about what is happening in their area of responsibility and in the organization in general in order to manage their own work effectively. Encourage them to recognize the help they need to complete tasks by giving them the access to appropriate information, to other people in the organization and to outside resources.  Receive feedback on communication effectiveness Feedback is essential in communication for knowing whether the recipient has understood the message in the same terms as intended by you whether he agrees to that message or not. The person receiving the feedback needs an opportunity to reflect and respond to what is being shared. Convincing difficult people One of the greatest challenges for any person is to handle resistant and difficult people with grace and professionalism. There are some common mistakes professionals make when dealing with difficult people, and a few simple actions can ease the situation. It is important to identify what type of person you're working with and the rationale behind their actions. Understand that you might need to communicate differently with various types of people. The quiet person for example, might need some advance warning about

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meeting and some prompting in order to share ideas. The complainer wants some assurance that his or her voice will be heard and some action would be taken in response.  Keep calm and avoid arguing – Never argue. Even if there is no truth in the objections. Try explaining the same point again without losing your cool.  Acknowledge the other person's objection – Don’t counter the objections being made, instead try to understand the opposite persons’ point of view. If you still need to do so, then use a cushion; example “I appreciate your concern…”  Paraphrase and ask questions for better understanding - Paraphrasing means to repeat what someone has said in your own words. You could do this for the emotions involved in the communication process to. This encourages the opposite person as he feels you are paying attention to what he has to say.  Stay in the adult mode - There are three modes of communication: Child, parent and adult. As per the situation one changes their roles. While dealing with difficult people, it’s important to stay in the adult mode. Don’t act like a parent, be judgmental, behave as a child or be defensive. Assume responsibility. Understand that it is fine, to agree to disagree.  Communicate and explore alternatives - Never assume you can’t help someone. Think about alternatives and offer suggestions about what you can do, to keep the conversation on a positive plane. You could also directly ask them what they would like you to do. You may be surprised to find that they expect much little than what you thought.  Find agreement – Try to find an agreement or at least acknowledge that you appreciate the person’s perspective. Worst case scenario, agree to disagree.  Keep the lines of communication open - Remember that 70 to 90 % of the message is screened by the receiver. Engage the person with whom you are communicating. Ask questions like, “Have you understood my point?”, “Do you have any doubts/suggestions?”

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THE COMMUNICATION PROCESS

Medium

Barrier

Sender (Encoder)

Receiver (Decoder)

Barrier

Feedback/Response

The communication process can be broken into five phases: Phase I – Encoder

First, the encoder/sender i.e. the individual who initiates the process sends the information or the message. Encoding is the process of selecting and formulating the information to be conveyed. How well the information is conveyed will be based on:

 The sender’s attitude, knowledge, perceptions, etc  The mode of communication used (transmitter)

Phase II – Message The message is the information being transmitted. It includes both, verbal and non- verbal data. Verbal information is the part of the data that is heard and non-verbal consists of things such as body language and the surrounding environment. Phase III – Channel The channel is the means or the mode used to convey the message. To physically transmit the message you need to select a communication channel and a medium. A communication channel could be non-verbal, spoken or written.

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Phase IV – Receiver The receiver is simply the person receiving the message, making sense of it, or understanding and translating it into meaning. The receiver decodes the encoded message. The extent to which this person will understand the message depends on a number of factors:  The knowledge about the topic  His/her receptivity to the message

 The relationship and trust that exists between the sender and the receiver  The receiver’s understanding and perception of the information being conveyed

Phase V – Feedback Feedback is the receiver’s response to the message. While building teams stress should be laid on feedback. It is crucial to the development and sustenance of any team.

TRANSACTIONAL ANALYSIS

Transactional analysis was developed by Dr. Eric Berne to analyze people and relationships. It is based on two premises:  There are three ego states to our personality – child, parent and adult.

 These ego states converse with each other in transactions .

The diagram below depicts the relationships involved in the transactional analysis. During interviewing, there emerge various types of interactions like adult – child, parent – child, adult – adult etc. However, the best interaction in mentoring process is adult – adult.

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Learning and change

Parent

High

Ego

Adult

High

Child

Games

Transactional analysis – Ego states

Parent ego state Behaviours, thoughts and feelings copied from parents

P

Adult ego state Behaviours, thoughts and feelings, which are the direct responses

A

Child ego state Behaviours, thoughts and feelings replayed from childhood

C

 Parent ego state These are a set of thinking patterns, feelings, ideas, beliefs and behaviours that we copy from our parents and caretakers. In the parent mode person tends to talk about value judgments and biases. They can take two forms:  Nurturing parent: In this ego state the person is caring and considerate, offers unconditional love and seeks to pacify the child.

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 Critical parent: In this ego state the person tries to transfer values and beliefs in the child, often tries to force the child to do things the way he/she thinks is appropriate.  Adult ego state Adult ego state is about being rational and balanced. This is typically demonstrated by people who neither try to control nor react. Adults while communicating are assertive and confident. Their conversations are clear and definable. Adults see people and situations as they are, rather than being biased. The adult uses past learning’s and uses it in the present.  Child ego state This is a set of behaviours, feelings and thinking patterns that is replayed from the childhood. This ego state usually exists when the person is extremely elated or angry or sad. In this ego state the person is spontaneous and direct. However, the thinking and decision making ability is extremely low in this state. There are two forms of the child ego:  Natural child: A person in this ego state is open, curious, vulnerable, extremely spontaneous and often not aware of self.  Adapted child: A person in this ego state reacts to the external world either by adjusting his/her behaviour or rebelling. This technique of analyzing personality in terms of different ego states is known as structural analysis. It is important to mention here that the ego states do not have separate existence; they are simply an integral unit of our personalities. The interaction between the mentee and mentor should be an adult-adult transaction for the mentoring process to be effective. In case of any other transaction, the effectiveness of the process is lost. TRANSACTIONAL ANALYSIS MODEL We operate from a single or a combination of ego states like parent, adult and child. Based on these combinations people function from four different leadership positions in life. These are: I’m not ok – you’re ok I’m ok – You’re not ok

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I’m not ok – You’re not ok

I’m ok – you’re ok

OWL “I’m OK, you are OK”

SHARK “I’m OK, you are not OK” While dealing with pressure, the shark cares nothing about relationships but will do anything to win. Their purpose is to satisfy their own needs by any possible means. Their behaviour is aggressive and they may use verbal attacks or manipulation.

The wisest way of dealing with pressure is to adopt the behaviour of the owl. Owls deal with pressure or conflicts by collaborating. This explains that both parties work together with the aim of exploring a mutually satisfying solution. The aim is to be in a win–win situation.

Foxes deal with challenges by trying to find a compromise. They are willing to sacrifice some of their goals while convincing others to give up theirs.

TEDDY BEAR “I’m not OK, you are OK”

Teddy bear wants to be liked, pampered and to maintain the relationships. Hence, they let the other person have their way. It is difficult for them to deal with pressure. In a cross culture situation teddy bears tend to believe or tell that other cultures are better than their own.

TURTLE “I’m not OK, you are not OK” Turtles do not deal with pressure directly, they try to avoid them. If they can physically leave the situation, they will. However, if they can't leave, they will try and avoid it or refuse to talk about it. When confronted with pressure, turtles will abandon their own goals and relationships and display passive behaviour, without getting the problems resolved.

In the matrix above, the five leadership styles revolve around these five positions.  The teddy As the name describes he is loved by people around and believes in developing relationships with others. He enjoys being around people and seeks appreciation.

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A teddy leader is someone who maintains good relations with his team members, keeps them happy, likes it when he is praised and admired. He gets disturbed when corrected or not acknowledged. He may go out of his way to be in people’s good books. A teddy leader tends to lose focus on task in his hunger of acceptance. He operates from ‘I’m not OK - You’re OK’ position and is therefore, insecure in nature. A feedback needs to be given to teddy along with training, coaching and counselling. This will help in development of the teddy.  The turtle He operates from ‘I’m not OK – You’re not OK’ position. He is negative about the world around him and is filled with self doubt. He has no goals, aims and objectives. He lacks the energy too. He displays classic characteristics of a turtle i.e. he withdraws and gets into a ‘shell’ the moment he feels attacked or inadequate to handle a situation. He is typically slow and lethargic in nature. Hence counselling of turtle is necessary. He must be given opportunities to develop himself.  The shark He operates from ‘I’m OK – You’re not OK’ position. He is sharp, aggressive and competent. He dominates people around him and attacks people who he

perceives as incompetent. He is well aware of his potential but tends to disregard others. He is highly task oriented and focusses on results, but he is low on relationships. He finds it difficult to maintain positive relationships and is often disliked by others. Feedback to shark should be given, the moment he

fails. Training, coaching, counselling as well as mentoring should be performed, in order to develop the shark. If the manager is a teddy and the subordinate is a shark, then shark will eat up teddy and relations cannot be built. If both the manager as well as the subordinate is a shark, then people development takes place.

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 The owl He is the ideal leader and operates from ‘I’m OK - You’re OK’ position. He is balanced i.e. he maintains a good relationship with people around him and is result oriented at the same time. He values others opinion and judgment and is

well aware of his own potential. An owl is someone who takes both the organization and its people ahead.

 The fox As the nature suggests he is manipulative and conniving. He is extremely cunning and tries to come to conclusion by compromising. Feedback to fox should be given in presence of a manager who is senior to fox. Relations cannot be created. Existing relations also tend to break when foxes are around. DISC Interpersonal effectiveness plays a crucial role in creating healthy and effective relationships. DISC is a tool which facilitates interpersonal effectiveness by depicting behavioural styles of individuals.

D

Dominance

I

Influence

Steadiness

S

C

Conscientiousness

DISC is an acronym for Dominance, Influence, Steadiness and Conscientiousness.  Dominance It is related to authority, aggressiveness and management. People characterized by a high ‘D’ are dominating, passionate, have drive as well as strong will power.

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People with low ‘D’ are subdued, collaborative, calculating, easy going, careful, gentle, unpretentious and non-violent.

 Influence People who are characterized by high ‘I’ are charismatic, persuading, convincing, zealous, instructive, reliable and cheerful. Contrarily, people characterized by low ‘I’ convince others by showing data, facts and figures instead of displaying feelings. They are practical and logical.  Steadiness People characterized by high ‘S’ like stability and are not adaptable to changes. They are composed, predictable and persistent. People characterized by low ‘S’ are willing to adapt to new changes. They are impatient, illustrative and over enthusiastic.  Conscientiousness People characterized by high ‘C’ adhere to rules and regulations and work qualitatively. They are sincere, right, discreet, diplomatic and uncluttered. People characterized by low ‘C’ do not abide by rules. They are obstinate and disorganized.

CUSTOMER Customer service is dependent on the term ‘customer’. Let us first see what exactly the meaning of a customer is: In an organization, a customer may be defined as the person or organization receiving an outcome of process/a product/a service.

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CUSTOMER stands for:

C

Critical to the existence and survival of the organization

U

User/recipient of the products and/or service

Sets the standard

S

T

Treated with dignity and respect

O

Our ally

M

Made of flesh and blood

E

Entitled to the best product/service we deliver

R

Right to change his mind

Hence, you must be your customers’ first choice!

INTERNAL CUSTOMERS Managers and employees at your business place represent the internal customers. The people and employees who work in the same organization and who use your products and services are called as your internal customers. They stand by your side, support you and make you appear good in front of the external customers. For example - the IT department and human resources department meet with the internal needs. Now – a - days, the concept of internal customer is receiving tremendous attention. The internal customer is a member of the organization who receives products and

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services from others within the same organization. Large organizations feel that it is necessary to measure and monitor the internal customer satisfaction. An organization which holds a commitment to treat its internal service users as customers holds a similar commitment to measure their satisfaction with the delivery of those services. Satisfaction levels among the customers can be measured which helps in providing a quantitative base for distinguishing the results over extended time periods and enabling data based decision making.

EXTERNAL CUSTOMERS Meaning

External customers are the people or organizations that have an urge to buy your product or service. They possess the money and they will pay you some of it, if you provide them with a solution that fulfils their needs and expectations. They are financially independent to choose where and how they would like to spend their money.

Stakeholders constitute:  Shareholders  Suppliers  External customers

 Employees/Internal customers  Government/Public agencies

DIFFERENCE BETWEEN INTERNAL CUSTOMERS AND EXTERNAL CUSTOMERS

Internal customer

External customer

Employee of the organization

Anybody

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Known

Totally unknown

Requirements (expectations) precisely known

Requirements (expectations) intangible/unpredictable

Direct communication + feedback

Indirect communication

Problems can be managed

It impacts the brand

Don’t pay bill

Pays bill (money)

High technology awareness

High business awareness

Part of your culture

Completely different culture

Contributes to personal growth

Contributes to organizational growth

Internal customers i.e. the employees and external customers i.e. the consumers can be compared with each other. Businesses may benefit from such comparisons, as employee satisfaction is gained if customer service techniques are applied. Internal customer needs are more important than the external customer needs. Until and unless employee needs are fulfilled, consumer needs cannot be satisfactorily met. It was observed that internal customer satisfaction or dissatisfaction was created due to the particular behaviours undertaken by internal service providers and the attitudes with which they were performed. The same was seen in the case of external customers. Many organizations were astonished to discover that internal customer satisfaction is much lower than previously perceived. Organizations should first understand the necessity of the internal customer service, in order to provide a premium quality external customer service. As much as the external customer service is important, internal customer service is also important to organizations, which indicates more effective performance, less wastage and less expense. As a result of this the external customer is also satisfied.

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NEGOTIATING FOR SUCCESS Very often, we find ourselves in situations where we have to or are required to negotiate. Some examples are - asking for a raise, making a deal with a client, asking your team members to complete a task on priority, etc. At such times, arguing or getting aggressive about it may not help you achieve the desired result. What you need at this point is the knowledge of negotiation skills.

The following are the reasons for the need of negotiation skills:  It helps your business save time and money  It ensures success in business market  It helps you build relationships

Stages in negotiation process

Initiating party

Acceptable

Not acceptable

Acceptable

Deal makers

Submissive

Opposite party

Hardnosed

Dead ends

Not acceptable

The model depicts the various stages that a negotiation process goes through. The transition happens as follows:  Dead ends At this stage, the negotiation does not advance, as there is no agreement between the parties involved. There is no scope for further discussion hence - a dead end.

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You could try making changes, modifications or value additions in your offer to bring about a new turn to your negotiation process.  Hardnosed These are so named as the party initiating the negotiations is satisfied but the opposite party opposes the proposition. This is what happens when the initiators of the negotiation process are aggressive. There is a possibility that negotiations are made in this stage; but there is a good chance that future deals may not be made with such a party. If you are the initiating party you might consider not coming down too strongly on the opposite party.  Submissive This is what happens when the person who initiates the negotiation process is timid. The opposite party overpowers the negotiator and thus, it takes the name submissive. These negotiators are characterizes as being consenting.  Deal makers This is what is needed for successful negotiations. At this stage both the parties are satisfied with the proposition and have possibly reached a deal.

This brings us to the elements involved in negotiation. Elements of negotiation

Preparation

Exchange of information

Bargaining

Commitment

 Preparation For any negotiation to be effective, preparation is fundamental. When you are well prepared for a negotiation, you have a strong hold/influence over the discussions. You seem sure of what you want to say and you can get your point

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across successfully. Allowance will have to be made; but when you are prepared you know exactly how much concession you can allow.  Exchange of information

While negotiating there could be, two or more parties involved. Hence, there has to be an exchange of information. The information being conveyed has to be relevant to the matter being discussed. Clarity of both

the parties has to be ensured in order to execute a fair deal. Lack of adequate, timely and correct information could result in ambiguity. Never feel shy to ask for information.  Bargaining Bargaining can be described as an agreement, establishing the terms and conditions to arrive at a deal. It is an unavoidable element of negotiation. It is because of this need for bargaining that you need to hone the skills for negotiation.  Commitment Once the bargaining is over the terms and conditions of the bargain have to be fulfilled. As soon as this is done you seal the deal and the fulfilment of the deal becomes your responsibility. You need to be extremely careful about the terms and conditions being spelt out, as you need to carry out the deal accordingly. Going back on your word is not the mark of a seasoned negotiator. Tips to negotiate better Opening negotiations can be a bit tricky. Often negotiators are known to stumble while opening talks for negotiations. Being mindful of the following points could help you gain a head start while negotiating:  Separate the person from the problem/deal. This means have an open mind and do not be subjective.

 Engage the interest of the person with whom you are

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negotiating. Make the opposite party involved in your talks to influence a positive response.

 Never set your initial offer too close to your aim. Allowing a scope for bargaining is the right thing to do. This helps the negotiation become a little flexible.

 State the objective of the negotiation. It is necessary to have clarity of thought between both the parties before commencing with the negotiations.

 Always discuss. Never assume that the opposite party knows what you want to say or is aware for your needs. Communicate your wants effectively and leave no room for ambiguity in a negotiation.

 Give sufficient time for the negotiation process. Do not be hasty when it comes to negotiations. Take your time and be patient.

 Body language is extremely important while negotiating. It creates an impact on the opposite party. A good confident body language has the power to turn the negotiation in your favour.

 While it is necessary that you be firm on your point, it is also needed that you are open to the points of view of others.

Many a times, through the course of the negotiation, situations may arise where the opposite party may resort to unfair tactics. At such times, a good negotiator should:  Keep calm and avoid arguing  Acknowledge the other person’s objection  Paraphrase and ask questions for better understanding  Talk and explore alternatives  Find agreement

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 Keep an open mind  Do not give into unfair means adopted while negotiating  Stick to your point of view  No matter who the other party is, follow your ethics, values and integrity

ACCOUNT MAPPING

Account mapping is a technique that helps you profile your customers for effective dealing. Whilst on a sales call each sales person is likely to meet one of the following types of customers. It is imperative to

understand who you are dealing with before moving ahead with the deal.  Coach: Coach gives a lot of information and projects himself as close to the management.  Fox: Always misleads, provides incorrect information and helps competitor win.  Influencer: Entry point in the organization and is very close to decision maker.

 Champion: One who fights for you and helps in closing the deal.  Decision maker: The ultimate authority to make the decision.

C

Coach

Coaches

F

Fox

Misleads

Influencer

I

Influences the deal

C

Champion

Fights for you

D

Decision maker

Ultimate authority

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IPR belongs to Atyaasaa

RELATIONSHIP VERSUS BUSINESS POTENTIAL GRID The 9 box model provides very interesting insights about the correlation between the potential of a deal and the relationship of the sales person with the customer. This grid categorizes sales persons into various categories depending on their relationship with a customer and the potential of the deal.

7

8

9

Black holes

Incremental strategic

Breakthrough strategic

4

5

6

Obligatory transactional

Focussed developmental

Focussed support

2

3

1

Transactional

Exploratory

Underutilized

Medium

High

Low

Business potential

 Transactional: The relationship with the customer is poor and also, the business potential is low. In this scenario, neither party will try to close the deal. It will happen as and when the need arises. These sales people need to be motivated to work towards the success. They must improve their interaction with customers and their selling skills.  Exploratory: The relationship with the customer is poor and the business potential is average. The sale does not get materialized because of poor relationship although there is potential. Provide them the product knowledge required to be an effective sales person. They should also focus on developing communication skills so that they can build good relationship with customers and are able to sell the product. Try to align such people to others in 6 and 9 quadrants.  Underutilized: The business potential is high but relationship is poor. The business gets affected due to poor relationship with customer. Such a sales person should be motivated to enable them move towards quadrant 9 and increase their interpersonal skills.

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IPR belongs to Atyaasaa

 Obligatory transactional: In this category, the business potential is low however the relationship is good so the deal gets materialized. New ideas must be planted in their brains and deadlines must be given to work upon the ideas. This will help them develop their skills to become an effective salesperson.  Focussed developmental: These sales people have the ability to influence others. They must be given data analysis work. Also, they are vulnerable to move to either sides of the quadrant, hence you must keep on stretching their roles and responsibilities.  Focussed support: These sales persons must be helped with goal orientation as the business potential is very high. They have high potential and are good with people but need slight push to move towards the best.  Black holes: Since these people are already very good at relationships, focus should be on enhancing their business skills so that they move to the next quadrant quickly.  Incremental strategic: These sales persons are excellent performers. They should be the first priority when it comes to people development. You should involve in regular coaching sessions with them to building up business skills so that they become your star performers.  Breakthrough strategic: These are star performers and must be supported in their endeavours. They should broaden their spectrum of work regularly. Also, they should contribute in critical business decisions.

CONCLUSION

It is every salesperson’s dream to be ahead in his game. You need to understand three essentials to achieve this. One, it is important that you know and understand yourself. Two, you need to be charismatic and exude influence as well as

power. And third, you need to be a seasoned negotiator. Mastery of these essentials makes you a ‘star’ salesperson and this leads to – sales leadership. This is an indication of your transition from being a ‘salesman’ to a ‘business enabler’. References: www.wikipedia.org, www.scribd.com, www.teambuildinginformation.com, Harvard Business Essentials – Creating Teams with an Edge.

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