Solution Selling Ppt 3o1z2f

Submitted by:Kanchan koul Roll no:- 941 Sec:-A

Solution Selling is a client-focused sales process in which the selling activities involve direct with prospective buyers. The intent of Solution Selling for Sales Execution is to help salespeople identify a prospective buyer’s business problem within an opportunity and lead the buyer to self-conclusion of how they can solve the problem utilizing the salesperson’s capabilities and the value of doing so - thus leading to a “solution”.

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Selling is a collection of methods that includes tools, job aids, techniques, and procedures that help salespeople and team align their selling activities to the steps of a buyer/buying organization’s process.  Solution selling is a sales methodology. Rather than just promoting an existing product, the salesperson focuses on the customer's pain(s) and addresses the issue with his or her offerings (product and services). The resolution of the pain is what constitutes a true "solution". http://en.wikipedia.org/wiki/Solution_selling

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A Sales Process - Solution Selling® not only helps with what to do, but it specifically focuses on how to do it.

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A Philosophy - The customer is the focal point. Helping customers

solve their business problems and achieve positive, measurable results to those problems is the basis of all actions. 

A Map - Solution Selling provides a map of how to get from where you are to where you want to be.

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A Methodology - Solution Selling is a system of methods that includes tools, job aids, techniques, and procedures.

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A Sales Management System - Solution Selling® provides sales and executive management with a process to analyze pipelines, qualify opportunities, and coach skills.

http://www.spisales.com/Solution_Selling.aspx

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Frank Watts developed the sales process dubbed solution selling in 1975. Mr. Watts perfected his method in Wang Laboratories. He began teaching solution selling as an independent consultant in 1982. He presented his sales process as a one day workshop to Xerox corporation in 1982. Mike Bosworth founded Solution Selling in 1983, based on his experiences at Xerox Corporation (the Xerox SPIN selling pilot project) began licensing s in 1988. With intellectual property contributions from his network, the methodology of Solution Selling continued to evolve through the years. He sold the intellectual property in 1999 to one of his original s, Keith Eades (CEO and Founder of Sales Performance International.

http://en.wikipedia.org/wiki/Solution_selling

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Michael T. Bosworth adds a useful nuance to this old distinction by introducing an intermediary term: advantage. If a feature is something that exists in the product or service itself and a benefit is the value that a customer sees in that feature, an advantage is the feature's potential value -- an inherent value that may or may not be seen as such by a given customer. Bosworth gives the example of a coffee cup. The handle of the cup is an existing feature. Its advantage is that it enables you to drink coffee without burning your fingers. Its benefit is that it prevents something you had wanted to avoid; it anticipates and provides a solution to a potential problem. But the handle is only a benefit to a coffee fancier. If you don't drink coffee (or some other hot drink), the handle feature is merely an advantage, not a benefit.

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For a more sophisticated example, consider the caller ID feature than many telecommunications companies now offer their customers. It's certainly an advantage in that it enables customers who want to screen their callers. Is it a benefit? Only to customers who perceive value in that advantage. Is it a solution? Only to customers who believe that they have a problem -- in this case, a surplus of incoming calls that they don't want to deal with. If you're not bothered by such calls, if the tracing potential of this technology makes you uneasy, or if for any other reason you don't see a problem in unscreened calls, then by definition this feature has no benefit for you, and the salesperson who provides you this "solution “ probably will get nowhere.

http://www.salesxcellence.co.uk/SalesSkillsArticles/Selling_Solu tions/selling_solutions.htm

Solution Selling was developed in response to today’s highly competitive global economy and draws on years of research and selling experiences. The principles covered in this chapter are the foundation of Solution Selling. After reading this chapter, please begin to apply the principles immediately. You don’t have to wait to finish the entire book before you start. SOLUTION SELLING PRINCIPLES A partial list of Solution Selling’s underlying principles include:  No pain, no change.  Pain flows throughout the entire organization.  Diagnose before you prescribe.  There are three levels of buyer need.  There are two types of opportunities—Looking and Not Looking.  Pain x Power x Vision x Value x Control = Sale

The foundation principle of Solution Selling is: No pain, no change. We define pain as a problem, a critical business issue, or a potential missed opportunity. If a person or a company doesn’t have a problem, critical business issue, or pending missed opportunity, why should he change? We use the word pain in Solution Selling to emphasize the concept. We don’t encourage salespeople to use this term with buyers.  Pain gives people a reason to change. Pain causes people to take action, to change a negative situation, or to act on their wants and desires for a better situation. People and companies don’t typically do things or buy things without a compelling reason. When pain is itted and the value of the resolution of the pain is quantified, it provides buyers with a compelling reason to act. 

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How dependent are football, hockey, and basketball teams on their players to be in sync in order to perform well? Everyone knows that team sports require players to be in sync in order to play well and win championships. Companies and organizations are no different. Simply put, people within functional groups are dependent on each other. This concept— interdependence—is the structure upon which companies are built. Although the level of interdependence within companies may vary, it’s always there. Interdependence has a great deal to do with selling, particularly for solutions that are implemented throughout a company. In today’s world of complex decision making, more than ever we need to understand the problems and challenges of our prospective buyers more holistically. Only then can we address the root causes of problems and provide solutions rather than simply treat the symptoms.

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you diagnose before you prescribe, you have an understanding of the customer’s problem before you discuss the solution. The reverse of this, prescribe before you diagnose, means that you will be proposing a solution without understanding the problem. Even if your prescription turns out to be correct, the customer may feel uncomfortable and bring the sale to a halt.

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are three levels of need, and you’ll find people, buyers, and organizations at all three levels. The key is for salespeople, and anyone else involved with buyers, to be aware of this and adjust their approaches accordingly. The approaches differ, depending on the level of need at which you find people see fig:-

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Level 1: Latent Pain Buyers who are not looking and not actively trying to solve a problem are in latent pain. There are two primary reasons for buyers being at this level of need: ignorance or rationalization. Ignorance means they’re unaware of the problem, and rationalization means they know about the problem, but they may not believe a solution exists or they may have failed at previous attempts to solve the problem. Buyers at this level frequently rationalize the potential solutions as too expensive, complicated, or risky. Whether because of ignorance or rationalization, buyers at this level of need are living with problems that in most cases can be solved. Level 2: itted Pain The buyer is willing to discuss problems, difficulties, or dissatisfaction with the existing situation. The buyer its the problem but doesn’t know how to solve it. At this level, buyers tell us their problems but aren’t taking action. An example of this is e-business. People know they should be doing something in this area, but they’re still on the sidelines. Why? They don’t have a clear vision of what to do or how to get started.

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Level 3: Vision of a Solution The buyer accepts responsibility for solving his or her problems and can visualize what is needed to address them. This is the action stage. Key salesperson actions at this level are to the buyer’s vision if you created that vision or to reengineer the buyer’s vision if you didn’t. The biggest mistake salespeople make with buyers at this level is to assume they have a good chance of winning because the buyers are in a ready-to-buy frame of mind. In summary, you’ll find buyers at all three levels. In the first level of latent pain, your job as the salesperson is to make buyers aware that a problem exists. In the second level, itted pain, your job is to confirm the pain that they’re having and lead them to a vision of a solution. At the third level, vision of a solution, the approach is to develop or re-create a vision of what the buyer will be able to do differently after implementing your capabilities.

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If we look at Fig we’ll see that potential opportunities are divided into two primary categories: Looking and Not Looking. Looking means the buyer has made a commitment to buy something. The buyer has defined his or her requirements and is engaging salespeople in an evaluation process. What percentage is actively looking to buy? The answer varies, but in most cases only 5 or 10 percent are actually looking.

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That means that over 90 percent of the potential customers are Not Looking. Why is this? Is it because that 90 percent have no problems? No. Either through ignorance or rationalization, these potential buyers are living with their problems; their pain is latent. The greatest opportunities lie with these people who have problems but who are not actively engaged in looking for a solution. Why does the Not Looking category of buyers provide such great potential? The answer lies in the next principle.

The formula for sales success is Pain x Power x Vision x Value x Control = Sale. Each element of the formula should be monitored as a part of the sales process. Because it’s a formula, if you have a zero in any variable on the left, you get a zero or no sale on the right.  Pain. Has the buyer itted pain?  Power. Does the buyer have the influence and authority to make a buying decision?  Vision. Does the buyer share the salesperson’s vision of a solution?  Value. Is there compelling value in the proposed solution? Does the buyer concur?  Control. Is the salesperson able to exert elements of control over the buying process? The sales formula can provide you with a quick way to qualify opportunities, measure the opportunities’ probability of success, and help manage sales pipelines to meet revenue forecasts. http://westsidetoastmasters.com/resources/solution_selling /lib0012.html