Sales is the air a company breathes. Without sales, growth stagnates – which can end the life of an organization. It’s one thing to secure sales, but another to scale a company based on measurable sales performance.
A common challenge for growing businesses is building a scalable sales model. Most organizations start with a business owner selling themselves and a product they are passionate about. People who believe deeply in what they do can often sell a product – if only because their blood, sweat, and tears are intoxicating to customers. But what happens when that next seller comes into the organization? And then another, and then yet another?
You can try to train other people to sell exactly like you did – but, truth be told, there’s no guarantee it will work. Building a sales team is about direct, authentic relationships between customers and new sellers. As you scale out, it’s worth evaluating the methodologies and processes around building the relationship that already exists.
Every business needs a sales methodology that best represents its product, values, market and goals. Here are the top 10 sales methodologies to consider as you embark on this path.
1. Target Account Selling
Over the past 25 years, Target Account Selling has become a standard in the sales world, with more than 1,000,000 sellers trained to convert smaller customers (or smaller groups within larger environments) into bigger and more permanent customers. This methodology breaks larger deals down into smaller components. Using a strategic plan throughout the life of the sales cycle deemphasizes the politics of an account.
Target Account Selling is popular because it automates the entire sales process via Salesforce, making it easier to integrate with existing workflows. The cost of training the staff for target account selling is high, but most experienced people you hire will already understand this methodology.
2. SPIN Selling
When Neil Rackham wrote the book SPIN Selling in 1989, I doubt he knew it would still be in use decades later. “SPIN” stands for Situation, Problem, Implication, and Need-Payoff.
It involves asking questions to understand the buyer’s situation, issues, consequences, and situation, respectively.
SPIN selling requires good communication skills and has proven to be a great technique. It focuses on asking questions based on the customer’s preferences in an effort to expose the needs of their organization. The goal of this is to establish trust and help you align your solutions with the services and product you provide. This is a classic sales methodology best suited for smaller, more transactional sales that don’t have a large number of stakeholders involved in the buying process.
3. SNAP Selling
SNAP Selling, introduced by Jill Konrath in 2012, makes the assumption that everyone is busy and frazzled. The goal is to speed up the sales process by being Simple, Invaluable, Aligned with the needs of the customer, and a Priority. Part of the focus is about getting “in the head” of your customers. The most important part of this book isn’t the methodology itself – it’s the value chain that it demonstrates.
4. The Challenger Sale
The Challenger Sale breaks sellers up into five buckets: Relationship Builders, Hard Workers, Lone Wolves, Reactive Problem Solvers, and Challengers. The Challengers are the most successful today, given the prevalence of large sales in enterprise environments.
Instead of unraveling the needs and demands of the customers, the Challenger Sale is used to build consensus in larger teams comprised of many levels of stakeholders. The Challenger Sale simply challenges the customers by making them aware of the pitfalls within their industry. Since its inception in 2011, the Challenger Sale has proven to be quite a successful strategy and is very popular amongst highly technical companies (e.g., software companies) with large sales forces.
5. Value Selling Framework
The Value Selling Framework creates a repeatable process, or map, based on customer buying processes. By building a process rather than customizing each deal, less management is required – which allows organizations to focus on helping team members improve their sales skills. Having said this, the Value Selling Framework does require more documentation, including qualification, asking documented questions to better understand needs, mapping each opportunity to product capabilities, and building out a plan to close each opportunity.
6. Solution Selling
The basic concept here is that you should sell a solution rather than a product. Since released by Mike Bosworth in 1988, this has been a foundation for a number of other methodologies as well. It was a reaction to the trend of vendors starting to sell solutions that were much more complicated than they had ever before been.
Solution Selling provides a deeper insight into today’s mature and informed buyers. This methodology has evolved over time based on a large network of trainers that help the methodology keep pace with complex and rapidly changing business climates.
7. Conceptual Selling
Conceptual Selling focuses on the buying process and managing the stakeholders involved when selling to a given organization. Conceptual Selling is about convincing the customer to buy the concept a solution represents vs. a specific product or service. This requires the sales team to focus on listening and excel at gathering information. While gathering information, you provide the relevant information for your products and services and leverage that to gain commitment at each level of the potential customer’s organization.
8. The Sandler Selling System and
The Sandler Selling System starts with uncovering the needs of the customer. Then the sales team customizes its pitch based on these needs. It’s about having both parties (the buyer and the seller) equally invest in the sales process. This is accomplished by having sales reps introduce various roadblocks to completing sales early and then provide the customer with options and assistance in overcoming those obstacles.
9. CustomerCentric Selling
CustomerCentric Selling involves turning your sales staff into collaborative consultants who become trusted advisors to customers. This methodology is dependent upon several kinds of behaviors, including closing deals on the customer’s timeline, targeting sales at decision makers, putting the product in the hands of the customer, and focusing on the solution rather than the relationship.
10. MEDDIC
As with many great things, MEDDIC (which stands for Metrics, Economic Buyer, Decision Criteria, Decision Process, Identify Pain, and Champion) hails from the era of Kurt Cobain. With this methodology, businesses enable sales teams to be effective by helping them compose a plan to close each deal. With good automation in place (e.g., Salesforce integration), an organization is able to direct the best sales rep to every customer. This involves time spent in a qualification stage, reviewing key messaging and working with the customer. If you’re interested in really tight control of your pipeline, this may be the best methodology for you.
11. Auction
auctions have a long history, having been recorded as early as 500 B.C. According to Herodotus, in Babylon auctions of women for marriage were held annually.
Type of Primary Auction
There are traditionally four types of an auction that are used for the allocation of a single item.
English auction, also known as an open ascending price auction. This type of auction is arguably the most common form of auction in use today. Participants bid openly against one another, with each subsequent bid required to be higher than the previous bid. An auctioneer may announce prices, bidders may call out their bids themselves (or have a proxy call out a bid on their behalf), or bids may be submitted electronically with the highest current bid publicly displayed. In some cases a maximum bid might be left with the auctioneer, who may bid on behalf of the bidder according to the bidder's instructions. The auction ends when no participant is willing to bid further, at which point the highest bidder pays their bid. Alternatively, if the seller has set a minimum sale price in advance (the 'reserve' price) and the final bid does not reach that price the item remains unsold. Sometimes the auctioneer sets a minimum amount by which the next bid must exceed the current highest bid. The most significant distinguishing factor of this auction type is that the current highest bid is always available to potential bidders.The English auction is commonly used for selling goods, most prominently antiques and artwork, but also secondhand goods and real estate.
Dutch auction also known as an open descending price auction. In the traditional Dutch auction the auctioneer begins with a high asking price for some quantity of like items; the price is lowered until a participant is willing to accept the auctioneer's price for some quantity of the goods in the lot or until the seller's reserve price is met. If the first bidder does not purchase the entire lot, the auctioneer continues lowering the price until all of the items have been bid for or the reserve price is reached. Items are allocated based on bid order; the highest bidder selects their item(s) first followed by the second highest bidder, etc. In a modification, all of the winning participants pay only the last announced price for the items that they bid on. The Dutch auction is named for its best known example, the Dutch tulip auctions. ("Dutch auction" is also sometimes used to describe online auctions where several identical goods are sold simultaneously to an equal number of high bidders. In addition to cut flower sales in the Netherlands, Dutch auctions have also been used for perishable commodities such as fish and tobacco.The Dutch auction is not widely used, except in market orders in stock or currency exchanges, which are functionally identical.
Sealed first-price auction or blind auction, also known as a first-price sealed-bid auction (FPSB). In this type of auction all bidders simultaneously submit sealed bids so that no bidder knows the bid of any other participant. The highest bidder pays the price they submitted. This type of auction is distinct from the English auction, in that bidders can only submit one bid each. Furthermore, as bidders cannot see the bids of other participants they cannot adjust their own bids accordingly. From the theoretical perspective, this kind of bid process has been argued to be strategically equivalent to the Dutch auction. However, empirical evidence from laboratory experiments has shown that Dutch auctions with high clock speeds yield lower prices than FPSB auctions. What are effectively sealed first-price auctions are commonly called tendering for procurement by companies and organisations, particularly for government contracts and auctions for mining leases.
Vickrey auction, also known as a sealed-bid second-price auction. This is identical to the sealed first-price auction except that the winning bidder pays the second-highest bid rather than his or her own. Vickrey auctions are extremely important in auction theory, and commonly used in automated contexts such as real-time bidding for online advertising, but rarely in non-automated contexts.
Other type of Auction
Multiunit auctions , All-pay auction, Auction by the candle., Bidding fee auction,, Buyout auction, Combinatorial auction , Generalized second-price auction, Unique bid auctions, spectrum auctions, Japanese auction, Mystery auction, No-reserve auction, Reserve auction, Reverse auction, Senior auction, Silent auction, Top-up auction, Walrasian auction, Amsterdam auctions/premium auction, Private value auction, Common value auction, Anglo-Dutch auction
12. Social selling
Social prospecting involves monitoring and/or searching social networks for signs of customer interest, immediate buying intent, or qualified prospect status based on industry, role, geography, etc. For example, a financial advisor may monitor social media for major life events (e.g., birth of a child, change in employment status, retirement, death of a parent) that correlate to a need for investment advice. Similarly, B2B outbound sales professionals frequently search LinkedIn for individuals matching their target buyer profiles.
13. Personal selling occurs when a sales representative meets with a potential client for the purpose of transacting a sale such as Arabber
- Bazaar
- Costermonger
- Hawker (trade)
- Huckster
- Merchant
- Peddler
- Street vendor
14. Reference Selling
One of the best methods for finding new customers is having your existing happy customers lead you to new ones. Based on a philosophy that customer mindset, motivations and patterns of the buyers of belongs to a group. So getting a recommendation from one group member easiest way to influence the decision of the future customer.
15.Sales Outsourcing
A variety of sales activities may be outsourced such as:
- Outsourcing part of the sales process, e.g. lead qualification or lead nurturing
- Outsourcing management of particular customer segments, e.g. niche segments, geographies or sectors that are difficult to reach or are culturally very different
- Outsourcing of sales of a particular product or service lines (e.g. parts, maintenance), or product-related activities such as product launches
Any of the following may also be considered as partial sales outsourcing or sales out-tasking:
- Integrating contractors into in-house sales teams for coverage of long-term absences such as maternity leave, or general vacancy management
- Syndicated sales – where the contracted salesperson presents complementary products from different companies on a single call to a customer
16. Priced Based Selling
Various Methods of Price Based Sellin
Priice-matching guarantees
Price-matching guarantees are commonly used in consumer and industrial markets.[7] Lowe's Home Improvement Warehouse is a great example, as they frequently state that they are the ‘lowest’ price store, and they will match the competitors. Best Buy has always been known for their price-matching guarantee as well. While a store with price matching guarantees has no fear of losing customers to rivals’ price cuts, it has every incentive to raise its own price to charge a higher price to its loyal customers. It is an anti-competitive tactic that warns competitors not to attempt to steal market share by undercutting prices.
Price-match guarantees are also criticized as being misleading to consumers.[8] The guarantees typically require shoppers to provide proof of a lower advertised price on an identical item in stock at a nearby competitor’s store before a price match will be approved. However, many big-box retailers work directly with manufacturers and sell products with unique model numbers. As a result, the retailer can deny a price-match request, as no other store carries an "identical" item. Other common reasons for denial: the competitor is not "local," the ad lists a percent discount rather than a specific price, or the customer doesn't offer acceptable proof of the competitor's price.[9] Even if all criteria are met, retailers grant price-matching requests on a case-by-case basis at the discretion of store employees.
Price-matching guarantees are commonly used in consumer and industrial markets.[7] Lowe's Home Improvement Warehouse is a great example, as they frequently state that they are the ‘lowest’ price store, and they will match the competitors. Best Buy has always been known for their price-matching guarantee as well. While a store with price matching guarantees has no fear of losing customers to rivals’ price cuts, it has every incentive to raise its own price to charge a higher price to its loyal customers. It is an anti-competitive tactic that warns competitors not to attempt to steal market share by undercutting prices.
Price-match guarantees are also criticized as being misleading to consumers.[8] The guarantees typically require shoppers to provide proof of a lower advertised price on an identical item in stock at a nearby competitor’s store before a price match will be approved. However, many big-box retailers work directly with manufacturers and sell products with unique model numbers. As a result, the retailer can deny a price-match request, as no other store carries an "identical" item. Other common reasons for denial: the competitor is not "local," the ad lists a percent discount rather than a specific price, or the customer doesn't offer acceptable proof of the competitor's price.[9] Even if all criteria are met, retailers grant price-matching requests on a case-by-case basis at the discretion of store employees.
2. Price slashing
Price cutting, or undercutting, is a sales technique that reduces the retail prices to a level low enough to eliminate competition.[10] Businesses will implement this as a way to under-cut the competition and offer the best price to the consumer.
3. Discounting
Discounting is something seen in almost every retail store, and grocery store. Discounting is present in just about every business in some way, whether it be coupons, advanced purchases, or bulk buying, businesses are quick to offer a pricing discount. Coupons and promotions give an economic incentive for the customer to use when purchasing a brand. The effect on consumer redemption of coupons has mostly been positive as it attracts customers, and gives them interest in a particular brand. On the other hand, discounting can really hurt a business as seen with Nordstrom this past holiday season. The clothing retailer reported that their fourth quarter earnings fell 68%, in large part due to the heavy discounting. According to a Cornell University study, in the hotel business, discounting in attempt to gain more occupancy does more harm than good, lowering the RevPAR and creating less profit.
Discounting is something seen in almost every retail store, and grocery store. Discounting is present in just about every business in some way, whether it be coupons, advanced purchases, or bulk buying, businesses are quick to offer a pricing discount. Coupons and promotions give an economic incentive for the customer to use when purchasing a brand. The effect on consumer redemption of coupons has mostly been positive as it attracts customers, and gives them interest in a particular brand. On the other hand, discounting can really hurt a business as seen with Nordstrom this past holiday season. The clothing retailer reported that their fourth quarter earnings fell 68%, in large part due to the heavy discounting. According to a Cornell University study, in the hotel business, discounting in attempt to gain more occupancy does more harm than good, lowering the RevPAR and creating less profit.
Haggling
Haggling, otherwise known as bargaining, is most present in businesses where items have no fixed price. Sellers will often price the item higher than they want to sell it, knowing that buyers are going to want to negotiate the price. Houses, cars, and services are the most common products sold using this model.
Haggling, otherwise known as bargaining, is most present in businesses where items have no fixed price. Sellers will often price the item higher than they want to sell it, knowing that buyers are going to want to negotiate the price. Houses, cars, and services are the most common products sold using this model.
17. Hard Selling / High-Pressure Selling
Applying psychological pressure (by appealing to someone's fears, greed, or vanity) to persuade the prospect to make a quick purchase decision.
This approach is justified on the ground that most people are lazy and will postpone making a decision even if it were in their best interest to make the commitment.
This approach is justified on the ground that most people are lazy and will postpone making a decision even if it were in their best interest to make the commitment.
18.Guaranteed Sales / Consignment sale
The owner sends goods to the seller without immediate payment. The seller is entitled to pay the owner for the goods when the sale happens. Any leftover stock that isn’t sold is returned to the owner after the agreed arrangement expires.
The consignment arrangement is particularly helpful for the businesses with niche products and limited reach. A business that does not a brick and mortar store benefits from this arrangement, as the goods are still being sold through other sellers. Thus, it saves on the infrastructure costs. The revenues are often structured in a split arrangement wherein a fixed share/incentive is agreed prior to entering the arrangement. While in most cases the consignments are set for a time and are supposed to be returned upon expiry, it can also be extended upon mutual agreement.
The consignment arrangement is particularly helpful for the businesses with niche products and limited reach. A business that does not a brick and mortar store benefits from this arrangement, as the goods are still being sold through other sellers. Thus, it saves on the infrastructure costs. The revenues are often structured in a split arrangement wherein a fixed share/incentive is agreed prior to entering the arrangement. While in most cases the consignments are set for a time and are supposed to be returned upon expiry, it can also be extended upon mutual agreement.
19. Relationship Selling
Relationship selling refers to the sales technique that focuses on the interaction between the buyer and the salesperson rather than the price or details of the product. Arguably, all three remain critical for any sales activity, but the status of the relationship can increase consumer loyalty as a result of familiarity and personality of the salesperson.
This sales technique is prominent for companies selling products and services that rely on repeat business from customers, such as insurance policies.
20. Take away Selling
When on the place consumable product offered in a package to carry away and use in future. Its famous in the food industry like Pizza or KFC etc.
Its asking a reverse quesiton strategically to customer which should lead them to buy the product or service. Let see the example
Traditional Selling
Prospect: “Do you have more than one of these?”
Salesperson: “Yes Ofcourse”
Prospect: “I wonder how many you make.”
Salesperson: “Lots of people buy this model.”
Prospect: “I’m sorry to hear that, I like to buy exclusives.”
Reverse Selling
Prospect: “Do you have more than one of these?”
Salesperson: “That’s an interesting question, why do you ask?”
Prospect: “I was wondering just how many they make?”
Salesperson: “That makes sense. May I ask why that’s important to you?”
Prospect: “I like buying exclusives.”
22. Inbound Selling
This is about attracting customer to buy your product or services by providing information of high-perceived value to consumers with the goal of educating, entertaining, or informing them.
23. . Transitional selling/upselling
24. Transactional selling
Its common method of selling we see in day to day basis, sales reps are not concern for long term relationship. Focused on selling product and generating revenues.
25. Strategic Selling
Targetting high profile customer strategically such as
•Buying influence,
•Leveraging strength,
•Response mode,
•Win results,
•Pre customer,
This is about understanding your company vision and strategy
Targetting high profile customer strategically such as
•Buying influence,
•Leveraging strength,
•Response mode,
•Win results,
•Pre customer,
•Sales funel.
Relating customer need with your product, services or idea such as « Purple Cow »
26. Conceptual Selling
27. Solution Selling
Solving big customers problem with more than one product and services.
Frank Watts- 1975
Mike Bosworth – 1983,
Ip in 1988
Frank Watts- 1975
Mike Bosworth – 1983,
Ip in 1988
9 Steps of Solution Selling
28. Sales Enablement
Sales enablement is sales process/method to have consistently effective engagements with prospects and customers throughout the buyer’s journey.
29. Consultative Selling
Born in 1970
Dead in 1980
Reborn in 1990
Points to keep in mind for Consultive Selling
•Must give before to get
•Lead conversation with plan (respect)
•Build decisive momentum
•Leverage insight gain through questioning
•Power of facts (neglect assumption)
Conclusion
Sales is hard. There are about as many sales methodologies out there as there are talented account executives, sales engineers, and sales executives. These methodologies can help your business flourish – but they require sufficient training, competence, and professional skill to grab and engage today’s informed and mature customer.
A methodology can amplify good sellers (helping them close more business) or punish a high performer (making it harder to close deals). No methodology will be perfect. The tenets of each are eerily similar in some cases, but the underlying concepts are often to listen more, talk less, respect the time of your buyer, run your routes at their pace, respect your potential customers, and be helpful even if they don’t buy your product.
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