Vaibhav is ecstatic to find himself a life-long mentor in his uncle Sivaranjan. They both have again set sail to walk the lengths and breadths of the sales world. In the last article, Sivaranjan walked Vaibhav through the selling process and the buying and selling process dynamics.
Vaibhav, you will always come across people who will judge you on the scale of different dimensions of sales, do not let those words get to you, warned Siva.
There are many things people say in the sales language, however, that does not mean they are all true. “You should always focus on closing the call,” or “First impressions leave indelible imprints on the minds of customers.” You will and might already have come across these phrases, however, they are half-truths taken out of context, said Siva in an explanatory tone.
Uncle, I am afraid I could not contemplate what you mean, said Vaibhav.
Siva continues, “Vaibhav, in the world of sales, success often hinges on a delicate balance between tried-and-true techniques and the ability to adapt to evolving customer needs. Over the years, numerous myths and misconceptions have emerged, clouding the judgment of sales professionals and hindering their effectiveness.”
So, to steer clear of those misconceptions, we will take a deep dive into the myths and facts of sales, that will help you excel in sales. We will draw insights from industry experts to gain the knowledge required to stay ahead in the game, said Siva and Vaibhav buckled up for the ride.
Neil Rackham, the author of the International bestselling book “SPIN Selling,” studied almost 35,000 sales calls made by 10,000 sales professionals in 23 countries over a period of 12 years. His findings contradicted many frequently held notions about what drives a sale, such as asking open-ended questions and highlighting a product’s benefits to pique interest.
According to Rackham’s results, many of these golden standards do not apply while marketing high-value products (usually linked with large sales).
He developed a strategy called SPIN based on his findings: a sales methodology that focuses on asking prospects the appropriate questions at the right time utilizing active listening. This technique requires concentration and focused effort to truly absorb what the other person is saying. The sales professional can determine how their product will solve their prospects’ concerns by asking focused SPIN selling questions.
SPIN questions, also known as SPIN selling questions, are structured on a framework with four key elements:
Situation – Sales professionals can learn about a prospect’s underlying goals by asking questions about their processes, tools, objectives, and roles.
Problem – Questions regarding the prospect’s present issues can assist them meet their specific stated demands.
Implication – Leading questions about the issues discovered in the previous step to assist them in understanding how they negatively impact the prospect’s company. These will reframe the magnitude of the problem and heighten the sense of urgency in resolving it.
Need payoff – Questions concerning potential solutions should be asked to reveal and emphasize how the product will help the prospect’s organization (and should be presented to key stakeholders and decision-makers if the first talks do not include those making final purchasing choices).
Instead of following a strict script for every sales discussion, the SPIN model teaches sales professionals to ask situational “SPIN” questions to drive prospects along the sales funnel.
Do you know Vaibhav, “Neil’s research, data, results, and methodology reinvented the wheel and forced a revolutionary change in the sales world?” The prime reason for the SPIN Selling methodology to be so popular is that it demystified the widely used sales techniques–with data and research.
Do you want to explore the myths and the facts stated to change the face of sales, Vaibhav? – asked Siva.
Vaibhav shook his head at Siva’s question.
Ok, then! Let’s have a look at how SPIN Selling debunked some of the myths in the world of sales.
Unveiling the Truth: Myths vs. Facts in Sales
Vaibhav, the reason it is crucial in sales to rely on facts rather than the ages-old myths is it gives a competitive edge to any business. When you focus on building relationships with customers, asking insightful questions, and addressing objections effectively, salespeople can increase their chances of success and build a loyal customer base. As Neil Rackham’s research shows, the most successful salespeople are those who understand that sales are not about selling products or services, however, about solving problems and building relationships, construed Siva.
Right uncle, if I grasp the right approach, it will be easier for me to understand the customers’ perspective and will help me drive meaningful results, added Vaibhav.
Correct, Vaibhav.
Here are the myths and the facts in sales:
Myth #1
A brilliant sales presentation will be remembered for a long time.
Fact: “It is human tendency to forget the details of any presentation within a week. In fact, potential customers can only remember 5.7 points out of 8 key points of information immediately after the presentation. By the end of the week, customers can only remember the highlights of the presentation, which makes up around 2.5 points of the entire presentation.”
While a captivating presentation can make a positive impression, Vaibhav, its long-term impact is often overstated. According to Neil, a memorable sales presentation alone is rarely sufficient to secure a sale. He suggests that focusing on building a genuine relationship with the customer and addressing their unique needs and concerns are far more critical for sustained success. A personalized and consultative approach can help sales professionals create lasting value and foster trust with their clients, said Siva.
Myth #2
The more questions you ask, the greater your chances of success.
Fact: “The number of questions has no impact on the success of a sales call.”
How do you approach your customers, Vaibhav? Do you think asking more questions can help you close the deal? – asked Siva.
I tried asking question after question once, but it did not help me much, said Vaibhav.
That’s the case, quantity does not always equate to quality when it comes to sales questions. While it is important to ask relevant questions to understand the customer’s situation, indiscriminately bombarding them with queries can be counterproductive. Neil’s research indicates that it is the type of questions, rather than the sheer number, that significantly impacts sales outcomes.
Open questions, which encourage detailed responses, are valuable for gathering insights and understanding the customer’s perspective. However, a judicious mix of open and closed questions can be effective in uncovering crucial information and guiding the conversation, explained Siva.
So, what should I do uncle, how to make the conversations more engaging? – asked Vaibhav.
The next myth will help you understand that, said Siva.
Myth #3
Open questions get long answers while closed questions get monosyllabic answers.
Fact: “In practice, 60 percent of closed questions get long answers, whereas, 10 percent of open questions get a one-word answer.”
Vaibhav, you have to ask open-ended questions to learn as much as possible about their prospects. Do you know why? – asked Siva.
Is it to know more about the customers, uncle? – answered Vaibhav.
In a way, yes. The idea is that the prospect will inform you about their difficulties in the hopes that they may solve them together. Closed-ended questions with simple ‘yes’ or ‘no’ answers are not allowed.
According to SPIN Selling’s research, the sales industry’s fixation with asking open-ended questions isn’t supported by actual evidence. The concepts in the books reveal that the number of open-ended questions does not impact their closing deals.
The assumption that closed questions yield brief responses while open questions elicit elaborate answers is not entirely accurate. In reality, the effectiveness of a question lies in its ability to generate meaningful dialogue and facilitate deeper engagement. While open questions encourage customers to share their thoughts, closed questions can be equally valuable when used strategically. Well-crafted closed questions can be employed to clarify specific points, confirm understanding, or guide the conversation toward a desired outcome. The key lies in using a combination of both types of questions to drive productive and insightful discussions.
The point is, you should be aware of using the right set of questions in any situation, said Siva.
Myth #4
Customers usually buy if you have a solution to their problem.
Fact: “If the cost of the solution outweighs the problem, the customer will refuse to purchase it.”
How many times do you think, Vaibhav, closed a deal by providing a solution to your customer? – asked Siva.
Customers have their queries, and there is no guarantee that solving their problems will convert them, said Vaibhav.
Absolutely, while having a solution that addresses a customer’s problem is undoubtedly important, however, it does not guarantee a sale. Neil Rackham’s research highlights that successful salespeople go beyond merely presenting a solution. They focus on thoroughly understanding the customer’s needs, goals, and priorities before proposing a tailored solution. By aligning their offerings with the customer’s specific circumstances and demonstrating how their product or service can create value, sales professionals can significantly increase their chances of closing the deal.
Myth #5
The greater the number of closes per call, the greater the chances of success.
Fact: “The overuse of closing techniques can hurt your selling tactics.”
What do you think, Vaibhav? Is closing the deal the main goal in the salesroom? After all, we have quotas to reach and usher in revenue, Siva asked playfully.
Yes, uncle, closing a deal is the real deal in a salesroom, chuckled Vaibhav.
Now, hear what I say carefully, “According to SPIN Selling research, if reps are constantly pushing to complete deals, especially high-end ones, leads are less likely to buy the product or service. Data indicated that being extremely forceful in order to meet quotas had the reverse effect – it actually hampered sales performance and overall sales success.”
According to the study, the average number of closing attempts made by a sales agent during a sales call had no significant impact on the closing rate. As stated in the book:
“Closing methods may boost the likelihood of a sale with low-cost products. Larger sales of expensive products or services diminish the chances of making a transaction.”
Vaibhav’s heart sank at this statement, he started wondering the way he was always after closing the deals, and in the process losing some good clients.
He got the lesson to tread the trail of closing deals more cautiously now.
Myth #6
Objections are a sign that the customer is interested.
Fact: “Higher the percentage of objections in the customer’s behavior, the less are the chances that the call will succeed.”
“You tell me. Vaibhav, how do you take the objections?” – asked Siva.
In the beginning, I try to understand the reason they object and then try to convince them to make the purchase, said Vaibhav.
This is where your strategy backfires, Vaibhav, said Siva.
It is a commonly held belief that objections from customers indicate their interest in a product or service. While objections do indicate engagement to some extent, Neil Rackham’s research reveals a more nuanced truth. In his book “SPIN Selling,” Neil explains that customer concerns or potential risks are frequently the sources of objections often arise due to concerns or perceived risks on the part of the customers.
These objections may be genuine, or they could be a way for the customer to test the salesperson’s knowledge and credibility. Rather than considering objections solely as a positive sign, successful sales professionals see them as opportunities to address concerns and build trust. By addressing objections effectively and demonstrating expertise, salespeople can guide customers toward a mutually beneficial resolution, Siva explained.
Myth #7
If you can show how your products and services can help the customer, the impact on the outcome of the sale is very positive.
Fact: “It’s more about focusing on understanding the needs of the customer, rather than making it all about the features and benefits of the product.”
Vaibhav, showcasing the value of products and services is an essential aspect of selling, it is not the sole determining factor for a positive outcome. Neil’s research reveals that successful sales professionals focus on more than just highlighting features and benefits. They prioritize understanding the customer’s needs, challenges, and goals.
By taking a consultative approach, salespeople can demonstrate empathy, provide customized solutions, and demonstrate how their offerings align with the customer’s specific requirements. This customer-centric approach enhances the likelihood of a positive outcome and fosters long-term relationships built on trust and mutual success, said Siva.
That is all about the misconceptions about closing deals and making sales. If you follow these facts, you will be remarkably proficient at closing deals successfully. The topmost priority of a customer is integrity, trust, and empathy. You, as a sophisticated sales professional, should nurture relationships instead of running after high-value solutions, said Siva.
These insights have made me remember all the things that I do from opening a call to closing it. From this moment on, I will be an active listener, ask open-ended questions, and be more concerned about customers’ concerns, said Vaibhav confidently.
https://www.adversus.io/blog/what-are-the-biggest-sales-myths
https://www.briantracy.com/blog/sales-success/the-2-biggest-myths-in-selling-today/
https://www.pipedrive.com/en/blog/spin-selling
https://www.usergems.com/blog/sales-myths-debunked
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Written By: Jimmy Jain
Edited By: Afreen Fatima
Society of Design Thinking Professionals
