Winning Edge Winning Edge Customer Relations Customer Relations

SkillsSkillsServicing, Selling & Negotiating in the Value EraServicing, Selling & Negotiating in the Value Era

Most Common Negotiating MistakesMost Common Negotiating Mistakes

Not realizing when negotiations Not realizing when negotiations BeginBegin

Underestimating of ones Underestimating of ones PowerPower

Giving Giving concessionsconcessions to to EarlyEarly, , OftenOften and and EasilyEasily!!

Not Not PreparingPreparing effectively, thus failing to understand the effectively, thus failing to understand the other partyother party

Allowing the negotiations to become Allowing the negotiations to become AdversarialAdversarial

Failing to negotiate Failing to negotiate InternallyInternally first first

Letting your Letting your EGOEGO (emotions) get in the way (emotions) get in the way

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Most Common Negotiating MistakesMost Common Negotiating Mistakes

A mind-set that it is A mind-set that it is RigidRigid, failing to listen & understand, failing to listen & understand

Saying Saying YesYes to things that you have not previously thought to things that you have not previously thought throughthrough

Failing to call Failing to call Time - OutTime - Out, in the heat of the action, in the heat of the action

Not knowing when to Not knowing when to WalkWalk away away

Failing to recognize when we are Failing to recognize when we are NotNot dealing with a win – dealing with a win – win negotiatorwin negotiator

Ineffective Ineffective follow- throughfollow- through

Sources of Negotiating PowerSources of Negotiating Power

Fundamental question at hand is … “Fundamental question at hand is … “Who needs who Who needs who more than who needs whomore than who needs who?” ?”

2 fundamentally2 fundamentally important sources important sources ofof bargaining bargaining powerpower are … are …

1.1. The The distinctivedistinctive valuevalue that you have communicated that you have communicated and created … 4 Types Potential types of Valueand created … 4 Types Potential types of Value

– PlacePlace– ProduceProduce– Process Process – PersonalPersonal

2.2. The The qualityquality of your of your BATNABATNA or or NNext ext BBest est AAlternativelternative

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Sources of Negotiating PowerSources of Negotiating Power

The quality of the The quality of the RelationshipRelationship you have with the person you have with the person

Your Your AttitudeAttitude … Degree of self confidence, personal power … Degree of self confidence, personal power

The quality of your The quality of your PreparationPreparation … Achieving clarity of … Achieving clarity of purpose & outcome … Clearly Knowing purpose & outcome … Clearly Knowing WalkWalk - - AwayAway PointPoint

Negotiating Negotiating SkillsSkills, Strategies & Techniques learned and , Strategies & Techniques learned and developeddeveloped

The use of “The use of “objective criteriaobjective criteria””

The Customer Satisfaction EquationThe Customer Satisfaction Equation

- Disappointed

- - Disgruntled

- - - Disgusted

E +/- CVP = E +/- CVP = DDegree ofegree of CS CS

ExpectationsExpectations

NoNo NeutralNeutral

Customer Value PerceptionCustomer Value Perception

++ DesiredDesired

+ ++ + DelightedDelighted

+ + ++ + + DeliriousDelirious

Customer Customer SatisfactionSatisfaction

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The Fundamental Business Success PrincipleThe Fundamental Business Success Principle

ProductProduct ValueValue

PersonalPersonal ValueValue

ProcessProcess ValueValue

PlacePlace ValueValue

Selling Selling PricePrice

ProfitProfit

EveryoneEveryone in the Organization must understand their role in in the Organization must understand their role in CREATINGCREATING & & COMMUNICATINGCOMMUNICATING CUSTOMERCUSTOMER VALUEVALUE!!!!

Cost of Cost of Producing Producing

ValueValue

““Perception”Perception” of Valueof Value

Creating Productive Creating Productive Relationships Relationships

Part 2Part 2

Achieving Relationship EquilibriumAchieving Relationship Equilibrium

Lose/WinLose/Win

Win/LoseWin/LoseLose/LoseLose/Lose

Win/WinWin/WinYou You Win Win

You You LoseLose

I LoseI Lose I Win I Win

EM

PA

TH

IC L

IST

EN

ING

EM

PA

TH

IC L

IST

EN

ING

AUTHENTIC ASSERTIONAUTHENTIC ASSERTION

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Customer Centered Customer Centered Consultative SellingConsultative Selling

Part 3Part 3

Customer Centered Consultative Selling Customer Centered Consultative Selling Status-quo SatisfactionStatus-quo Satisfaction

Need AwarenessNeed Awareness

Need EvaluationNeed Evaluation

Information GatheringInformation Gathering

? Competitive Evaluation ?? Competitive Evaluation ?

? Concern Resolution ?? Concern Resolution ?

DECISIONDECISION

ImplementationImplementation

UtilizationUtilization

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Benefits of Asking QuestionsBenefits of Asking Questions

Allows you to determine where customer is in Allows you to determine where customer is in buying processbuying process

Obtains info required for effective Obtains info required for effective problem solvingproblem solving and and decision making … decision making … Vital to your positioning as a Vital to your positioning as a “consultative problem solver” NOT sales person“consultative problem solver” NOT sales person

Demonstrates your Demonstrates your intentionsintentions creates opportunity to creates opportunity to listenlisten … … Both vital to building Both vital to building TrustTrust

InvolvesInvolves customer, building customer, building commitmentcommitment to implementation to implementation

Gives sales person Gives sales person controlcontrol without being domineering without being domineering

Allows you time to Allows you time to thinkthink and strategize during conversation and strategize during conversation

Ask questions in a systematic and professional manner is a Ask questions in a systematic and professional manner is a humble way to establish humble way to establish credibilitycredibility

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Guidelines to Asking QuestionsGuidelines to Asking Questions

80%80% of time should be invested in ________ to your customer of time should be invested in ________ to your customer

Customer’s time is valuable, key is Customer’s time is valuable, key is relevancerelevance

Must be conversational, not interrogation Use Must be conversational, not interrogation Use openopen questions, questions,

Be wary of asking Be wary of asking leadingleading questions, appears manipulative questions, appears manipulative

You must You must earnearn right to ask increasingly important questions right to ask increasingly important questions

Take good Take good NotesNotes

The key is to ask a The key is to ask a systematic seriessystematic series of series of questions of series of questions

1} 1} SituationSituation questions … 2} questions … 2} GapGap Questions … 3} Questions … 3} LeverageLeverage questions … 4} questions … 4} Commitment Commitment questionsquestions

Situation Questions Situation Questions

Open with Open with confirmationconfirmation Questions Questions

Use the Use the 5 W’s5 W’s to guide you in gathering information to guide you in gathering information

Key is to identify what is truly Key is to identify what is truly ImportantImportant to prospect in terms to prospect in terms of desired of desired Results / OutcomesResults / Outcomes and how they and how they measuremeasure it it

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Gap QuestionsGap Questions

PROBLEMPROBLEM GAPS GAPS

Customer usually Customer usually Aware … Aware … Our Our job is to job is to IdentifyIdentify

Frustrations, difficulties, areas of Frustrations, difficulties, areas of poor performance versus goalspoor performance versus goals

Ask question that uncover area of Ask question that uncover area of dissatisfaction, frustration or paindissatisfaction, frustration or pain

OPPORTUNITYOPPORTUNITY GAPS GAPS

Customer usually Customer usually Unaware …Unaware … Our job is to Our job is to CreateCreate

New developments, New developments, benchmarking, areas of growth benchmarking, areas of growth and potentialand potential

Ask “What if” questionsAsk “What if” questions

Ideally get them Ideally get them RateRate current performance achieving current performance achieving resultsresults

PurposePurpose to to identifyidentify or or createcreate GAPSGAPS between prospect is between prospect is NowNow (RESULTS) and where they (RESULTS) and where they SHOULDSHOULD or or COULDCOULD be be

Leverage QuestionsLeverage Questions

The purpose of leverage The purpose of leverage PersuasionPersuasion questions is to questions is to increaseincrease to to MotivationMotivation to change to change

Key is to establish what it will Key is to establish what it will MEANMEAN to the customer … to the customer … How the prospect will How the prospect will BenefitBenefit if we close the gap and what if we close the gap and what it will it will CostCost if we fail to close the gap if we fail to close the gap

Attempt to make the consequences or effects of the gap as Attempt to make the consequences or effects of the gap as TangibleTangible as possible … as possible … MonetizeMonetize

Commitment QuestionsCommitment Questions

Questions that confirm agreement to Questions that confirm agreement to move forwardmove forward in the in the processprocess

““What ourWhat our Next Steps?”Next Steps?”

““Does that Does that make sense to youmake sense to you?”?”

Goal is to Goal is to surface disagreementsurface disagreement, doubts or objections, doubts or objections

Speaking so People Listen, Believe, Understand Speaking so People Listen, Believe, Understand & Remember What You Say& Remember What You Say

““Repetition mother of all Learning” … “Repetition mother of all Learning” … “3 Tells Model3 Tells Model”… Key ”… Key repeatrepeat key messages without appearing redundant! key messages without appearing redundant!

Head is on the far side of their heart! … Must believe that Head is on the far side of their heart! … Must believe that you genuinely you genuinely carecare and that you are trying to and that you are trying to HELPHELP them! them!

Best way of demonstrating that you care is to prove you Best way of demonstrating that you care is to prove you understandunderstand them them

Key to successful communication is to be above all else, the Key to successful communication is to be above all else, the key is to be your key is to be your naturalnatural self! self!

Persuasion is a transfer of Persuasion is a transfer of enthusiasmenthusiasm! Can’t transfer what ! Can’t transfer what you don’t have.you don’t have.

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Speaking so People Listen, Believe, Understand Speaking so People Listen, Believe, Understand & Remember What You Say& Remember What You Say

Use Use VisualVisual aids as much as possible … diagrams, graphs aids as much as possible … diagrams, graphs and models.and models.

Use Use real life examplesreal life examples whenever possible whenever possible

Use Use analogiesanalogies and and metaphorsmetaphors, especially those that , especially those that conjure visual images! … Vital benefits … conjure visual images! … Vital benefits …

Holds Holds interestinterest, saves , saves timetime, crystallizes , crystallizes understandingunderstanding and increases and increases retentionretention

Tell Tell storiesstories to make your point … Must keep them to make your point … Must keep them relevantrelevant and short! Be careful not to make yourself the and short! Be careful not to make yourself the herohero of your stories of your stories

Speaking so People Listen, Believe, Understand Speaking so People Listen, Believe, Understand & Remember What You Say& Remember What You Say

Listen Listen with your with your EyesEyes to constantly gauge reactions to constantly gauge reactions

Eye contactEye contact is the most powerful method of is the most powerful method of ConnectingConnecting and engaging person … The “4 Is” of eye contact … What and engaging person … The “4 Is” of eye contact … What we want is the first I – we want is the first I – InvolvementInvolvement … … BewareBeware of - of - II____________ I____________ I_________________________ I____________ I_____________

VocabularyVocabulary – Focus on – Focus on expressing expressing andand not impressing! not impressing! U Use plain, straight talk! se plain, straight talk! Big words and acronyms only Big words and acronyms only distract and disconnectdistract and disconnect

When speaking, try to useWhen speaking, try to use Vocal varietyVocal variety – – vary your vary your pace, tone, volume and emphasis.pace, tone, volume and emphasis.

Use Use SilenceSilence effectively … the “ effectively … the “Power of the PausePower of the Pause”! ”!

Negotiating Negotiating Best PracticesBest Practices

Part 4Part 4

Competitive Negotiations - Best PracticesCompetitive Negotiations - Best Practices

Be Be plannedplanned and prepared … Know your “ and prepared … Know your “Ideal OutcomesIdeal Outcomes” ” and you “and you “Walk-Away PointWalk-Away Point””

Start high … Build in a Start high … Build in a bufferbuffer in prep to “split the difference” in prep to “split the difference”

Shut up!!! … Limit info you give, info is Shut up!!! … Limit info you give, info is powerpower

Never say Never say YESYES to anything you have not previously thought- to anything you have not previously thought-out out

Discover other persons “Discover other persons “degree of authoritydegree of authority” as soon as ” as soon as possiblepossible

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Competitive Negotiations - Best PracticesCompetitive Negotiations - Best Practices

Tactfully test their Tactfully test their factsfacts and opinions! … Use and opinions! … Use objective objective criteriacriteria when possible … Market value, legal precedent or when possible … Market value, legal precedent or 3rd party, professional, scientific or moral standards3rd party, professional, scientific or moral standards

Demonstrate Demonstrate patiencepatience … … 80% of concessions80% of concessions, , agreements and developments happen in last agreements and developments happen in last 20% of time20% of time

If you recognize that someone is using a manipulative tactic If you recognize that someone is using a manipulative tactic – – name itname it! … “You wouldn’t use old tick on me would you?”! … “You wouldn’t use old tick on me would you?”

Get the other person to make Get the other person to make firstfirst offer offer

Never say Never say YESYES to first offer to first offer

Competitive Negotiations - Best PracticesCompetitive Negotiations - Best Practices

Never give without a Never give without a GetGet!!

Don’t be fooled by “Don’t be fooled by “funnyfunny money” money”

If you make concessions, make them If you make concessions, make them slowlyslowly & painfully & painfully

When other party makes request for concession or favour - When other party makes request for concession or favour - use the use the wincewince or in extreme cases, the full-body or in extreme cases, the full-body flinchflinch

Don’t overreact to threats and intimidation … Don’t bite Don’t overreact to threats and intimidation … Don’t bite those baited hooks …Respond calmlythose baited hooks …Respond calmly

When emotions are running high call for a When emotions are running high call for a time-out!time-out!

Competitive Negotiations - Best PracticesCompetitive Negotiations - Best Practices

Take good Take good notesnotes! Power goes to person with best notes! Power goes to person with best notes

When threatened or pressured demonstrate “When threatened or pressured demonstrate “assertive assertive pacifismpacifism” or “” or “verbal jujitsuverbal jujitsu”… Ask questions and ”… Ask questions and listenlisten! … ! … Stand your ground but don’t fight back Stand your ground but don’t fight back

Convert resistance, objections and pressure into questions Convert resistance, objections and pressure into questions that require discussionthat require discussion

Power usually goes to person with the most time … It is vital Power usually goes to person with the most time … It is vital to discover your counter-parts “time-line” to discover your counter-parts “time-line”

Realize that often “deadlines” can be moved or changed and Realize that often “deadlines” can be moved or changed and should be tested by asking the reason for the deadlineshould be tested by asking the reason for the deadline