Characteristics of a Great Sales Presentation

If someone asked you, “What makes a great sales presentation?” would you be able to answer? Many of us could give examples of a bad presentation, such as not listening to the customer, but what are the characteristics of a great sales presentation? Exhibit 7.1 shows them. A great sales presentation explains the value proposition; asserts the advantages and benefits of the product; enhances the customer’s knowledge of the company, product, and services; and creates a memorable experience.

Explain the Value Proposition. First and foremost, a sales presentation must clearly explain the value proposition for the customer. As we discussed in chapter 3, identifying customer needs and creating solutions using your company’s products and services is at the heart of the value proposition. However, a salesperson must have the skill and flexibility to adapt the value proposition based on customer feedback during and after the presentation. In addition, there is a huge difference between the salesperson knowing the value proposition and the customer understanding it clearly. Often the salesperson must use several tools to communicate how the company is creating value for the customer. In addition to an oral presentation, salespeople often use nonverbal communication, PowerPoint presentations, written proposals, and other support information to further explain the value proposition. By explaining the value proposition the salesperson plays a critical role in building the company’s brand through the social interaction of the sales relationship and with today’s technology the “salesperson” can even be an avatar.²

Assert the Advantages and Benefits of the Product. Customers want to know the specifics of how your product is better than the competition. As you shall see later in this chapter, identifying a product’s features, advantages, and benefits is essential to a great sales presentation. They form the basis of a product’s value to the customer.

At the same time it is important to understand any weaknesses associated with your product. It is essential that the customer believe you are answering the question “What’s in it for me?”—in other words, how the product addresses the specific concerns of the customer—and that requires a good understanding of not only the strengths of the product but also the weaknesses.

Enhance the Customer’s Knowledge of the Company, Product, and Services. Many products require detailed explanations for the customer to fully understand what is going on. Take, for example, an Oracle salesperson trying to explain a new feature in the Oracle Enterprise Manager Suite of software products. The salesperson could talk about the product’s development and productivity, but it might be more effective to educate the customer about cost savings. Another option might be to demonstrate the product, an important presentation tool we will talk about later in this chapter. In any case, your presentation should enhance the customer’s knowledge about the product.

In addition to specifics about the company’s product, customers may want to know a variety of things about the company, other products and services, and even the people they will be working with. An effective sales presentation will educate customers about all these things.

Create a Memorable Experience for the Customer. Ultimately, for any sales presentation to be effective the customer must be interested in it. It needs to be an event the customer will remember after the salesperson is gone. There is no rule that says sales presentations should be boring. On the other hand, the presentation must always be professional and the salesperson should never substitute glitz for a skilled delivery of relevant information.

Sales Presentation Strategies

There are four basic types of presentation strategies, shown in Exhibit 7.2. The most appropriate one in a given situation depends on the salesperson’s individual selling skills, feedback from the customer, and the company’s preferences. Think of the four strategies on a continuum, with the memorized presentation at one end and the problem-solving presentation at the other.

As you move along the continuum, you will find two fundamental differences. The first is the focus of the presentation strategy. In the memorized presentation the focal point is the product/company. At the other end of the continuum, the problem-solving strategy focuses on identifying customers’ needs and solving their problem(s). The second difference is in the talk/listen ratio. In the memorized presentation, the salesperson does most of the talking and very little listening. As you move through the presentation strategies, that ratio begins to reverse. The customer talks more and the salesperson listens more. In a problem-solving presentation, the salesperson does very little talking (at least initially) as the customer explains his or her needs and problems. Let’s look at each of these four presentation strategies in greater detail.

Memorized Presentation. At first glance the very structured memorized presentation strategy may seem inappropriate in most situations. The focus is on the product and the presentation is based on the memorization of specific canned statements and questions. The salesperson is not really interested in determining the needs of the customer. Companies, and salespeople, who adopt a memorized presentation strategy believe they can make a compelling argument for the product without spending time learning more about the customer’s problems and needs.

There are a number of flaws in this presentation strategy. A primary disadvantage is that the salesperson may discuss aspects of the product that are not important to the customer while leaving out critical information. By not determining the customer’s real needs, the salesperson risks wasting everyone’s time. What is more, the very nature of memorized presentations limits customer participation. As much as 90 percent of the total presentation time may be taken up by the salesperson’s dialogue. This is a big negative for many prospects, who wonder, “How can the product be the best choice for me if the salesperson does not listen or even ask me about my needs?” Finally, this type of presentation tends to seem high pressure, as it usually solicits the purchase decision several times. For all these reasons, the memorized presentation may not seem the best choice for building a customer relationship—and it’s probably not. However, there are several advantages.

First, and most significantly, memorized sales presentations ensure consistent delivery. They are frequently the result of careful company analysis and development, and offer companies the assurance that critical information will be given to the customer in a uniform and reliable manner. The more you encourage customers to be involved, the less control you have in the presentation. Some companies believe that controlling the flow and order of the presentation increases the probability of success.

A second advantage is the ability to deliver more information in the same amount of time. By focusing on the product and not the customer’s needs, the salesperson can convey more facts (making this a viable presentation style when time is very short). Next time you take a sales telemarketing phone call, notice that the caller is most likely working from a memorized presentation script.

This presentation strategy can also be reassuring for inexperienced salespeople. Since they can learn the presentation and have very little opportunity to change it, new salespeople may worry less about forgetting something or losing their place.

While set questions are included in a memorized presentation, they are most often designed to solicit a simple response that will move the customer through the purchase process. The salesperson may ask a question for which the answer is already known. “If I could save you 50 percent off your current printing charges, would you be interested?” The salesperson is not concerned about the customer’s true printing charges (how they break down, what services the customer uses most often). Rather, the question is asked to get customer acceptance of the product. Most customers respond yes, and the salesperson has created buy-in for the product.

Formula Presentation. The formula presentation is also highly structured but increases customer interaction by soliciting more information. It follows a prepared outline that directs the overall structure of the presentation but enables the salesperson to gain some customer feedback. This type of presentation begins to shift the focus more to the customer. It still focuses on the product but encourages the customer—through questions, trial closes, and objections—to become more involved in the presentation. The talk/listen ratio changes to more listening (30–40 percent) and less talking (60–70 percent).

Formula presentations are based on the simple acronym “AIDA,” which sums up the buying process. The salesperson must get the customer’s attention, create interest in the product, develop a strong desire for the product, and move the customer to action (buying the product). Moving through the process requires buy-in and agreement, which means customer involvement.

The formula presentation strategy affords some definite advantages. Both company and salesperson can feel confident that critical information will be conveyed to the customer in a carefully constructed format. Moreover, the more ordered approach means salespeople will be better prepared to handle objections and questions. Finally, incorporating greater customer feedback into the presentation increases the likelihood of product acceptance and purchase.

On the other hand, if the salesperson does not do a good job of asking questions and anticipating objections, this strategy is not flexible enough to handle more complex selling situations and customer interaction. It is best used when a relationship has been established and the customer will be rebuying. The salesperson is already familiar with the customer’s specific needs and is trying to gain acceptance of a new order, which could be a reorder of existing products or the sale of a new product into the customer’s product mix.

Many companies, including Procter & Gamble, use some type of formula presentation with their frontline sales force around the world. Consumer products salespeople tend to know their customers well and the object is often for them to carry more of an existing product (more sizes of Crest toothpaste, greater inventories of Bounty paper towels). A highly structured presentation that lets them hit specific selling points in a predetermined formula while still soliciting customer feedback can be very effective. The key to the success of the formula strategy is customer knowledge, since the presentation itself is relatively inflexible. More sophisticated selling situations require different sales presentation strategies.

Need Satisfaction Presentation. Unlike the memorized and formula presentations, the need satisfaction presentation shifts the focus to the customer and to satisfying the customer’s needs. The talk/listen ratio shifts in favor of listening, especially early in the presentation. As much as 60 percent of the first half of a need satisfaction presentation is spent asking questions, listening, and determining the customer’s real needs. Even later in the presentation, the salesperson should be willing to ask additional questions to clarify problems and concerns.

The key to success with this strategy is the right combination of questions, listening, analysis, and presentation. Too many questions and the customer may doubt the salesperson’s ability and knowledge. Too few questions and the customer will feel the salesperson is not really interested in his or her problems and needs.

Need satisfaction presentations can be broken down into three parts. The first stage, need identification, involves questioning the customer to discover his or her needs. This often begins with an open-ended question: “Ms. Grace, what exactly are you looking for in a new office network system?” Based on the customer response, the salesperson begins to ask more focused questions and zero in on a specific need. The questioning is not always linear. More circular questions uncover other needs, perhaps even problems or concerns the customer was unaware of. After identifying the customer’s need(s), the salesperson moves from need identification to need analysis. Combining knowledge of the company’s products and services with the recognition of customer needs, the salesperson must quickly (often during the presentation itself) analyze the customer’s needs to determine how best to meet them. Finally, during need satisfaction, the salesperson presents the company’s solution (products and services) to the customer’s needs.

Creating a more interactive presentation can intimidate inexperienced salespeople. The salesperson gives up a degree of presentation control for a greater understanding of the customer’s problems and concerns. If done well, need satisfaction presentations can establish profitable buyer–seller relationships. If done poorly, they can limit the company’s access to that customer in the future. Salespeople generally need a great deal of training and confidence to use the need satisfaction presentation strategy successfully.

Problem-Solving Presentation. Considered the most complex and difficult presentation strategy, problem solving presentation approach is based on a simple premise: The customer has problems and the salesperson is there to solve them by creating win-win solutions. We explore negotiating win-win solutions in chapter 8, but it is important to understand that problem solving is the preferred presentation strategy for building long-term customer relationships, and creating win-win solutions is a critical aspect of this strategy. The focus is on the customer, which means the salesperson spends much more time listening than talking. The salesperson does more analysis before the presentation. This strategy generally puts greater pressure on the salesperson, who must have the skills to identify and analyze the customer’s needs and present the company’s solution.

Tips for Making a Good First Impression

First impressions are important in setting the tone for the presentation.³ Does a good first impression guarantee the sale? Absolutely not. Can a bad first impression lose a sale? Yes. Ultimately, a good customer relationship begins with the content and delivery of your presentation, but the first few minutes set the tone for everything else. Let’s break down the first impression into three parts: before you meet the prospective customer, when you greet the customer, and the first three minutes of the presentation.

Before the Meeting. It is important to use your time before meeting the customer to put yourself in the right place at the right time. There is a simple rule in selling: Never make the customer wait. It is the salesperson’s responsibility to be at the site before the presentation is scheduled to begin. Given the technology available today, there really is no excuse for being late. If you’ve never been there before, go online and get directions using MapQuest, Google Maps, or a similar site. If for some unexpected reason you are running late, use your cell phone to call the customer. Few things create a worse first impression than showing up late for a presentation.

Most salespeople make it a practice to arrive early. The “just-in-time” approach to making a sales meeting is not a good idea. A good rule of thumb is to get there at least 15 minutes before the scheduled start time. However, your time is also valuable, and all the time spent waiting for sales meetings would total many hours each year.

So it’s helpful to have a checklist. First, be sure your customer knows you have arrived. Introduce yourself to the appropriate person (secretary, receptionist, assistant) and tell him or her you are there for the sales meeting. Second, as you wait, use the time to run over any last-minute notes or even the presentation itself. PowerPoint allows you to print a copy of the presentation; review it one last time so everything is fresh in your mind. If it is an existing customer and you haven’t checked with the office to learn the customer’s latest activity, do so now. Update yourself on the status of the most recent order or find out what your company has done to address a current problem or issue. If you are confident that you are completely ready for the customer meeting, use the time to check voice mail or email.

Greeting the Customer. As we said earlier, the first few minutes of a presentation are critical to success.⁴ Keep a few basic rules in mind as you create that first impression. First, make sure your overall look is appropriate. You may want to take a moment and freshen up. Second, make sure all wireless communication devices are turned off or put in silent mode. Having your cell phone go off just as you reach to shake hands will not start the meeting off on a good note. Third, be organized. Cause a minimum of disruption as you enter the customer’s office. Walking in with stacks of paper or your laptop open sends a negative impression of your overall organizational skills.

If the customer extends his or her hand, shake it firmly. It is important to remember that the customer should extend their hand first; in some cultures shaking hands is less prevalent and you don’t want to start the presentation off with a negative perception. If you are unfamiliar with the surroundings, look for a place to sit. In a conference room, if the customer sits at the head of the table, sit to one side close to the head. If the customer sits at a long side of the table, look for a chair across from him or her.

Most of the time, however, you meet customers in their office. The customer will give you verbal or nonverbal cues about where to sit. If there is a desk with chairs on the other side, move there immediately after greeting the customer. In large offices the customer may have a separate seating area (sofa and chairs with a coffee table) and you should follow his or her lead. If no cues are forthcoming, you may want to ask, “Where would you like me to sit?”

One of the challenges for the salesperson is knowing when to begin the transition, research suggests that the customer will often provide a cue that signals their interest in moving into the sales presentation. For example, in retail selling watching a customer standing in front of a product reviewing it or reading promotional material can signal that the customer is ready to receive more information. The key is to interpret the customer signals and respond accordingly.⁵

The First Three Minutes. The period just before the approach varies depending on your personal style, the customer’s personal style, and the environmental situation at the time of the presentation. It’s often helpful to spend some time developing a personal rapport with the customer.⁶ Noncontroversial topics like the weather or sports (of course, depending on how the local team is doing, this may or may not be controversial) are the best subject choices. The key is to know when to make the transition from customer greeting to customer approach. Spend too long in small talk, and the customer will perceive you are wasting time. Be too abrupt, and you’ll create an awkward moment. Initially, you may find these transitions difficult. However, in time you will develop a sense of the right moment to make the transition. Always remember the customer knows why you are there and it will not come as a surprise when you launch into the presentation.

Approach Strategies

The approach is what sales professionals call the first part of the sales presentation. It is a transition point from the greeting to the main body of your presentation where you will deliver the primary sales message to the customer. While you may have spoken by phone or email, most customers clearly prefer a face-to-face presentation. A well-executed approach can set up the rest of the presentation so you can move the buying process much more efficiently and effectively. The customer approach has two objectives: (1) get the customer’s attention, and (2) create enough interest in you, your company, and its products and services that you can continue the presentation.

The five common approach strategies are shown in Exhibit 7.3.

Referral. One of the best ways to approach the customer is to be referred by a third party (often a satisfied customer). The referral is effective because of the third party’s external endorsement of the company and by extension the salesperson as well. Research suggests the referral increases the credibility of the salesperson’s points during the presentation and reduces customer anxiety about their validity.

A number of customers, however, do not wish to be used as referrals. There are many reasons for this reluctance. The relationship between the company and customer may deteriorate while the customer is being used as a referral with other prospective customers. Or the salesperson may also be calling on the customer’s competitors.

Customer Benefit. Customers want to know how your products will benefit them, so telling them is a good way to begin a sales presentation. By starting the presentation with a solution to at least one of the customer’s problems, you create an instant win-win situation. One caveat: It is essential that you be well prepared and have a thorough understanding of your customer’s current situation, problems, and needs. Otherwise, the customer benefit approach could actually do more harm than good. The customer might be annoyed by your misperceptions.

Question. There are two advantages to the question method. First, getting the customer involved in the presentation is always a positive, and asking questions in the approach involves the customer right from the start. This goes a long way toward establishing customer buy-in to your sales message. Second, by getting customer feedback you are positioning yourself for success in the presentation. Ask questions that can focus the customer on the problem and help you gain greater acceptance; then structure the questions so they will lead into the presentation.

The risk of the question approach is that you may get an answer that will effectively end the presentation. If the customer answers yes, you are in an excellent position to transition into your presentation. But if the customer answers no, you will have to reestablish a point of contact or end the presentation.

Assessment. One technique that salespeople in certain industries (IT, insurance, financial services) have found effective is the assessment approach. You ask the customer to complete a set of questions. Then you collect the data, analyze the information, and make a presentation to the client based on your analysis.⁷ The assessment approach is really a part of a larger problem-solving presentation strategy in which you put together a solution for the customer based on his or her feedback.

This approach can be effective for several reasons. First, it is relatively nonthreatening. You are not actually asking the customer to buy anything but simply requesting information that you will use to provide additional feedback. Second, the end result is generally an assessment that you can go over with the customer. Financial planners, for example, often ask prospective clients for a summary of their financial history. Based on the responses, the planner/salesperson prepares a financial plan for the customer. At the end of the presentation, the financial planner offers suggestions on how his or her company can help meet the customer’s needs.

Product Demonstration. We will discuss the product demonstration in greater detail later in the chapter. Some salespeople find it an effective approach strategy. With certain products, such as automobiles, demonstrating the product is crucial to the presentation. Laptop computers and sophisticated graphics software let salespeople demonstrate products that are difficult to exhibit in a customer’s office (security systems, for example).

Once you start the product demonstration, it is important to move quickly into the rest of the presentation, including the buying process. Salespeople often use the product demonstration in conjunction with another approach, such as the question, to get customer involvement while demonstrating the product.

Identify Customer’s Needs

How important is identifying the customer’s needs? Very. Research suggests that being able to focus on customers and correctly identify their needs is one of the key characteristics that distinguishes high-performing salespeople. Indeed, of all the elements in a sales presentation (approach, handling objections, and closing), the single factor shown to differentiate successful salespeople from the rest of the pack was their ability to discover the customer’s need(s). Contemporary selling is based, in large part, on the salesperson’s ability to identify those needs and develop win-win solutions that benefit both the customer and the company.

The need identification process really begins before the first customer meeting as you study the customer’s business and get ready for the sales presentation. By learning about the customer, you will develop an initial assessment of needs. This will change as you talk with the customer and go through the need identification process. Even after the presentation, as you move forward in the relationship, you should continue to assess and update your understanding of the customer’s needs.

Questioning Drives a Great Presentation. Identifying the customer’s needs is not a complicated process, but it does require salespeople to perform several tasks very well. The first skill is asking the right questions at the right time. This may seem easy but, as we saw earlier, high-performing salespeople are significantly better at it than low performers. Asking questions and listening (which we will discuss shortly) are not easy for many people, especially in stressful situations like a sales presentation. Many inexperienced salespeople believe (incorrectly) that they should be talking and in control of the presentation.

A second, and sometimes more difficult problem, is the potential struggle within the customer. In the course of the presentation, he or she may become threatened by your questions. The customer may perceive that your proposed solutions could place him or her in jeopardy (if the presentation uncovers inefficiencies that are the customer’s responsibility). In addition, remember that salespeople are change agents. By definition they are asking the customer to change by buying their product. Change creates conflict for the customer. What if you are wrong and the customer is blamed for buying your product? What if you are right and the customer fails to buy your product? As you can see, asking tough questions is threatening to both salesperson and customer. The basic categories of questions salespeople can ask during the presentation are summarized in Exhibit 7.5. Let’s examine each type more closely.

UNRESTRICTED/RESTRICTED QUESTIONS. Encouraging the customer to open up and share information, unrestricted questions impose few limitations. Often referred to as open-ended or non-directed questions, they draw out information by allowing the customer to frame the answer. Restricted questions, on the other hand, require yes/no or very short answers. They direct the customer to a specific, very short response.

Most of the time salespeople will use both types of questions. Unrestricted questions encourage the customer to speak more freely and allow the salesperson to develop a richer, more complete understanding of the customer’s issues. Restricted questions provide specific information the salesperson can use to shape the presentation. Indeed, it is common to move from one question type to the other. It is a good idea to get the customer more involved by asking unrestricted questions, but asking too many of them will almost certainly create time pressure on other parts of the presentation. There are particular pieces of information the salesperson may need during the presentation, and restricted questions are the most efficient way to get the information.

DATA COLLECTION QUESTIONS. These questions gather basic data about issues related to the customer’s current business or historical perspective. While the information can be helpful, salespeople should limit data collection questions in a presentation for several reasons. First, customers may provide information that interferes with elements of the presentation. Given the access to information today, it is the salesperson’s responsibility to be familiar with as much of the customer’s business as possible. A general rule is to ask data collection questions that verify existing knowledge. Second, if a salesperson asks too many data collection questions, the customer may perceive a lack of preparation, and wonder, “Why doesn’t this person already know this about my business?”

Inexperienced salespeople may incorrectly assume that asking customers questions about their business is the same as identifying their needs. This is not true; customers expect salespeople to know about their business before the presentation even begins. Data collection questions can be useful, but use them sparingly and do the customer homework before the presentation so that you don’t waste time asking unnecessary questions.

INVESTIGATION QUESTIONS. These questions probe for information about problems, opportunities, or challenges in the business. The answers are often critical in correctly identifying the customer’s needs. By encouraging the customer to talk about current issues and concerns in the business, salespeople gain valuable insight. Successful salespeople use these questions to assess the customer’s current state of mind.⁸

VALIDATION QUESTIONS. At various critical points in the presentation, you may want to validate something with the customer. You might reaffirm the customer’s needs or some key fact that came out of the investigation questions asked earlier in the presentation. Validation questions are important for two reasons. First, they help get agreement from the customer and move him or her through the buying process. Validating the customer’s needs eliminates a point of disagreement later in the presentation. Second, they keep the customer involved in the presentation. Even if the response is simply yes or no, the customer is mentally engaged.

Keep in mind a few basic rules as you ask questions. First, go over them before the presentation. Poorly worded or inappropriate questions will do more harm than good. Second, always anticipate the answers. This is not to say you script the answers, but asking questions for which you have no general idea of the response can lead to real problems if you are surprised by a customer’s response. Face-to-face time with the customer is limited, and fumbling for a response to an unexpected statement will not instill confidence in your abilities. Third (and most importantly), once you ask the question, listen to the customer’s answer.

SPIN to Customers’ Needs. Based on research conducted by Huthwaite, Inc. (and company founder Neil Rackham), the SPIN strategy is a comprehensive selling approach based on a series of questions about: situation, problem, implication, and need payoff.⁹ This approach works very well with large, important sales. A number of multinational companies have adopted the SPIN selling approach, including UPS and Bank of America. Exhibit 7.6 summarizes the SPIN selling approach.

SITUATION QUESTIONS. These questions provide basic information about the customer’s circumstances. Often they are broad questions designed to substantiate information the salesperson already knows. You don’t want to overuse these questions, since customers may tire of answering them. Situation questions suffer from the same problems as the data collection questions we discussed earlier, but they do offer a format for establishing rapport with the customer.

PROBLEM QUESTIONS. Based on his or her own research, and responses to the situation questions, the salesperson moves on to more specific problems. Asking directed questions gets the customer concentrating on particular problems and issues. An effective tool when used by experienced salespeople, problem questions are much more useful in identifying the customer’s needs than situation questions.

There are two goals for problem questions. First, the customer’s responses offer critical information the salesperson will use in discovering the customer’s needs. Second, in answering a carefully planned set of questions, customers will (if all goes well) admit they have a problem. While problem questions are valuable, the salesperson must continue to ask questions that will help the customer see the full effect of the problem.

IMPLICATION QUESTIONS. Once a problem has been defined, the salesperson must help the customer recognize its implications for his or her business. Implication questions help customers realize the seriousness of the problem and begin to search for solutions. You must get agreement on the problem before asking implication questions. These questions are instrumental in moving the customer closer to the value proposition you will offer in the presentation. As the customer comes to recognize the full implications of the problem, he or she becomes less concerned with the cost of the solution (your products and services) and more interested in solving the problem.

Adapted from Neil Rackham, SPIN Selling (New York: McGraw-Hill, 1988).

NEED PAYOFF QUESTIONS. The transition from problem identification and clarification to problem solution begins with need payoff questions. It is not enough to make the customer aware of a problem, nor to define its scope and potential ramifications. At some point the salesperson must move the customer to the solutions offered by the company. While problem and implications questions focus on establishing the customer’s problem, need payoff questions directly connect the problem with the value proposition. If the customer agrees to the need payoff questions, the salesperson is in a strong position to successfully complete the sale. Conversely, if the customer disagrees, the salesperson has not yet established a significant problem for the customer to act on.

Listen

Should salespeople be better talkers or listeners? Many people unfamiliar with selling would probably say talking is more important, but the idea that salespeople are fast-talking individuals not really interested in customer’s opinions is far from accurate. Listening, really listening, to customers is a vital trait of successful salespeople.

Despite its importance, most people (even those in selling) listen actively only 25 percent of the time. That means people don’t really hear what is being said three-quarters of the time. Not surprisingly, the likelihood of correctly identifying a customer’s needs if you are listening to only one quarter of what he or she says is pretty small. Interestingly, people can listen more effectively than they speak. Research suggests that most people can hear up to 800 words per minute but speak around 140 words per minute. The slowness of speech leads too many listeners to become distracted.

Active listening involves a commitment by the listener to focus on the speaker, concentrate on what is being said without thinking about other things, and take in nonverbal as well as verbal messages.¹⁰ People speak with their voices, but they also speak nonverbally. Facial expression, arm and hand movements, body positioning, and eye contact all communicate just as much as the spoken word. Active listeners focus not just on what is being said but how it is being communicated. (We will talk more about nonverbal communication later in the chapter.)

Exhibit 7.7 summarizes recent research on how to enhance your active listening. When salespeople take the time to change from passive to active listening, they notice changes in the way customers react to them. Little things like providing nonverbal cues to a customer who is speaking (nodding your head, making direct eye contact) and clarifying or rephrasing information can make the customer much more responsive. In turn, that customer is more likely to pay attention when you are speaking.

Apply Your Knowledge to Customer Needs

While identifying the customer’s needs is essential in communicating the sales message, that’s just the beginning of the salesperson’s task. It is now time to take your knowledge of your company’s products and services and apply it to the customer’s needs. Providing solutions that solve customer problems is the essence of a salesperson’s role in the relationship-selling process. You are the critical link between what the company has to offer the customer and the customer’s needs.

Sell FAB. Good salespeople are very knowledgeable about their company’s products and services. They know product performance characteristics, service turnaround times, and a host of other important features. These facts are important, but customers do not buy features. They buy solutions to their problems. So you need to link your knowledge of company products and services facts to solutions that meet customers’ needs. This process is often referred to as FAB (features, advantages, and benefits).

By applying the FAB approach, salespeople can make the company’s products and services relevant for the customer. A feature is any material characteristic or specification of the company’s products and services (say, antilock brakes on a car). An advantage is a particular product/service characteristic that helps meet the customer’s needs (antilock brakes stop the car faster and in a more controlled fashion). A benefit is the beneficial outcome to the buyer from the advantage found in the product feature (the car will provide greater safety for the driver and passengers).

Let’s examine the FAB approach in greater detail.

FEATURES. All products and services are the sum total of physical characteristics and specifications. Consider the purchase of a new laptop computer. The buyer will learn the processor speed, hard disk drive size, screen size, and a host of other features. Go to the Lenovo computers website (www.lenovo.com) and click on products. Then go to the “Laptops” and click on “ThinkPad.” Several models are listed and their product features are described.

By themselves, however, product features are not very persuasive. Indeed, most customers will never even see the processor or hard drive in a new computer. No matter what the buying situation, customers do not buy product features. They buy product benefits that meet their needs.

ADVANTAGES. Customers want benefits, but they also want to know how your product is better. What makes it better? Why should I buy your product/service over one of your competitors? In short, they want to see the advantages of your product.

If you return to the Lenovo web page, look at how the products are described as “lightning fast” and “torture-tested.” Notice that these descriptions don’t speak to the features of the product but, rather, the advantages. Lenovo ThinkPad laptops are fast and tough, two important features for heavy business users. This is a transition from talking about what the product does (features) to how it is better for the customer (advantages).

Unfortunately, most salespeople get a lot of training on the features of products and services but little training on the advantages and benefits. Remember, the task here is to apply your knowledge of the company’s products and services to the customer needs you identified earlier in the sales presentation. Simply knowing the product’s physical characteristics and specifications is not enough; understanding the product’s advantages for your customer is good but still probably not enough to get a commitment. Ultimately, the customer must see how those advantages benefit him or her directly.

BENEFITS. Extending the application from product features to product advantages, and ultimately to product benefits, answers one of the most fundamental questions customers have in the relationship-building process: “What’s in it for me?” Ultimately, there will be no relationship if you cannot answer that question. Customers need to understand specifically how your product benefits them, solves their problem, or meets their needs.

Often, your customer will be comparing your product with at least one competitor. In the highly competitive, information-rich world of today, customers expect salespeople to have a thorough knowledge of their competitors’ products and their benefits.

If you go back to the Lenovo site one more time notice that it describes the benefits of long life battery (you can work on the road) and other advantages. By walking the customer through the features, advantages and benefits you move them closer to purchase. At the same time, customers often have unique challenges that require additional information and help—professional sales help. By phone call, or online sales support a Lenovo salesperson can identify the particular customer's needs and then define the most relevant products advantages as benefits.

For example, engineers for a manufacturing company would find the high-speed Intel processor’s ability to process the latest graphic-intensive software an advantage because it allows them to work sophisticated engineering programs while they are traveling. It is the salesperson’s job to recognize the key customer issue (ability to work while traveling) and translate the product features into advantages (long battery life) and benefits (no more downtime while traveling).

This is an example of the synergy companies seek between their marketing communications (such as the Lenovo site) and the salesperson. While the website is outstanding at presenting product features and advantages, even basic benefits, direct contact with the salesperson (either phone support or a salesperson) is often needed to connect the advantages to benefits for a given customer.

Collect the Company’s Cumulative Knowledge. Salespeople are on the front line meeting customers and giving presentations. However, everyone in the organization supports them in one way or another. The support of areas like product development, customer service and support, and manufacturing is indispensable as salespeople apply the organization’s cumulative knowledge to meeting the customer’s needs. It is always helpful and often mandatory to tap into the knowledge base of the sales firm.

If a customer needs modifications to a product or has special service requirements, the salesperson calls in people from product development and manufacturing to get a true understanding of the issues and costs involved in making changes to existing products. When the customer has tight delivery and scheduling deadlines, it is important to contact the right people in the company to get the best, most up-to-date answers quickly.

Team selling is based in part on the premise that no one individual can successfully develop and manage large customer relationships. Applying your knowledge to the customer’s needs really means applying the company’s cumulative knowledge to those needs.

Satisfy Customer Needs

The ultimate goal of the presentation is to satisfy the customer’s needs by identifying them, applying your knowledge to them, and creating a plan of action for the customer that incorporates your products and services to address them. Although the relationship-selling process certainly is not finished after the sales message is communicated (as you’ll see over the next two chapters), every sales presentation should focus on customer satisfaction. No matter how much negotiating remains, no matter how tough it is to close the sale or build that long-term relationship, the customer should receive some satisfaction as a result of the sales presentation.

Get Customer Agreement. As you have undoubtedly noticed, a sales presentation is based on interaction with the customer. Through a prescribed process of preparation and customer communication, the salesperson comes to learn the customer’s needs and develops a plan of action for solving the customer’s problems. At every step in the presentation, it is important to get customer agreement.

This agreement can take many forms. Sometimes you ask a question: “Do you agree that my product provides the best value for your business?” Sometimes you make a statement. “We agree you need a product that offers great value and specific performance characteristics, and I have demonstrated how our product offers the best combination of performance and lowest cost of any product in the market.” Often agreement can be a simple yes.

Customer satisfaction in the presentation is not a single event. It builds as a series of agreements during the presentation. When you secure agreement at many steps in the presentation, the customer will be much more compelled to agree to the purchase at the appropriate time. As you will see in chapter 9, closing the sale is a process that begins at the start of the presentation.

Minimize Change Conflict. As we discussed earlier, the sales presentation can create more stress for the customer than for the salesperson. The presentation is based on the assumption that you have a better solution than the customer is currently using, and customers can react negatively to your presentation even if (sometimes because) they find your product superior to their current choice.

One key to leaving a customer satisfied at the end of the presentation is to minimize change conflict. To help customers feel less conflict about the purchase, you can manage their expectations. Clearly explain the specifics of your value proposition and then deliver exactly what you promise. Overpromising and underdelivering is one of the surest ways to destroy a buyer–seller relationship. Also, make sure that details of the purchase agreement are known to everyone in the sales organization and all relevant individuals in the customer’s company. Misunderstandings between other people often lead to disappointment later in the relationship.

Establish the Relationship. It is critical to build the buyer–seller relationship with every presentation, indeed every customer interaction. Building the relationship means creating trust and establishing a sense of loyalty.¹¹ Sales presentations are big events. Salespeople need to be sure that, no matter what happens to the potential sale on the table, the relationship is not damaged. Phone calls and emails are everyday occurrences, but getting face to face with the customer raises the stakes for you and your company.

Most of the time a sales presentation is the best opportunity for a company to forge a new relationship. Keep in mind the basic elements of relationship selling: Focus on creating value for the customer and always conduct business with the highest ethical standards.

Demonstrations

Have you ever heard the phrase “talk is cheap”? This cliché highlights a basic concept behind product demonstrations: At some point the salesperson must prove the claims and statements in the sales presentation. There are few selling tools more effective at proving the worth of a product than a product demonstration.¹² The product demonstration is not without risk (which we will discuss shortly), but when properly planned and executed, it offers three distinct benefits to the salesperson.

First, a successful buyer–seller relationship is based on trust and credibility. Fundamental to that trust is the customer’s belief that your product will perform as promised in the sales presentation. Product demonstrations are an excellent tool that can build credibility with customers. When you prove the sales presentation with a product demonstration, the customer is more likely to accept you.

Second, seeing the product in action creates a greater connection between the customer and the product. Consider the last time you went shopping for clothes. By trying them on, you were demonstrating the product to yourself. If you liked the outfit, the demonstration worked and your probability of buying it increased dramatically. If you went into a clothing store and were told you could not try on that suit or dress, you would probably not purchase the product or even shop at the store. The same is true in all buying situations. Allowing the customer to interact with the product and see it in action can generate a strong affiliation between the customer and product. The product becomes more than words on a page or facts in a brochure.

Third, product demonstrations can enhance the effectiveness of your communication. People can process nonverbal information much faster than spoken words. By demonstrating the product, you are presenting information in a format that is probably more interesting and memorable for the customer.

Think about your own experiences. Would you rather have someone describe the horsepower, torque, and six-speed transmission of a new Porsche or experience it for yourself by test-driving one? If you are choosing a new printer for the office, what do you think will be more effective: (1) a brochure detailing the pages per minute, 256 color combinations, and networking capabilities, or (2) a file sent to your printer that is printed automatically in full color? Demonstrating the product makes all other communication during the presentation more effective. Once the customer sees the printer in action, the brochure the salesperson leaves takes on more meaning.

Exhibit 7.8 talks about the importance of good communication. Keep those points in mind as we examine product demonstrations more closely.

Prepare for a Successful Demonstration. Clearly, the demonstration is an effective tool in the sales presentation—when it works. But when it fails or does not meet the customer’s expectations the negative effect is significant. This is why it is so important to prepare for the presentation.

Exhibit 7.9 is a checklist of things to consider as your prepare for a product demonstration. Not all items are appropriate in every situation, but in general, when you have completed the checklist, you should be ready to give a successful demonstration. There are three key points to keep in mind as you prepare for a demonstration: develop objectives, get customers involved, and practice.

First, develop objectives for the demonstration. We spoke earlier about the importance of setting presentation objectives, and the same is true for product demonstrations. Most products have many characteristics that could be incorporated into a demonstration. Consider the specific customer’s needs and develop a demonstration that shows how the product will address those needs. If the customer for a copier is interested in speed, the demonstration could focus on pages printed per minute. The objective could be, “The customer will know how fast and dependable the copier is as a result of the product demonstration.” It is important to note that research suggests there is an optimal number of product claims beyond which their effectiveness begins to diminish. Specifically, three product claims is the optimal number to reinforce the key benefits of the product. More than three tends to reduce the perceived truthfulness of all the other product claims.¹³

Second, get customers involved in the demonstration. Imagine looking at a new car and not being allowed to test-drive it. It’s the same principle in any product demonstration. The more involved the customer is in the demonstration, the more he or she will connect to the product and your presentation. Be sure the customer knows how to use the product. There are few things more dangerous in a product demonstration than a customer who does not know how to use the product correctly.

Third, practice, practice, and practice the demonstration. You generally have only one chance to be successful in a product demonstration. You must be absolutely comfortable with the product and the specific characteristics you are demonstrating and know how to do deal with unforeseen problems (which will almost surely appear at some point in time). Practice not only the demonstration itself but also your words and actions during the demonstration. Since you will be talking and showing the product at the same time, you need to know both very well. One benefit of practice is that it builds confidence. When you have mastered a demonstration, indeed an entire presentation, you are more confident in front of the customer.

The Demonstration: More than Just the Product. Is the product itself the best demonstration tool? Yes. Is it the only tool available to demonstrate the product’s features, advantages, and benefit? No. Sometimes it is not possible to demonstrate the actual product in front of the customer, and you’ll need to find other tools to help in the product demonstration. Evaluate the best possible format to demonstrate the product.

Many other tools can enhance the demonstration or even substitute for a live product display. In some cases, the product has not even been produced. Consider architects bidding on a big construction project. They have no product to show, so they must rely on models and drawings to demonstrate their vision of the final product (the building itself).

Another situation, often found in technology, is the demonstration of something that cannot be seen. How can a salesperson for Lenovo demonstrate how the ThinkPad actually processes information faster than the competition? One way is to compare a set of prescribed functions using a competitor or older model with a new ThinkPad. The demonstration should show the same functions being performed faster on the new machine. You don’t really see the product working, but you see the results of the faster processor. Another tool might be charts that highlight the relative speed differences between the competitors and the ThinkPad.

A powerful tool commonly used in education and business is Microsoft’s Office Suite of business software. Incorporating Excel, Word, and PowerPoint software into a presentation can enable the salesperson to convey a great deal of information. PowerPoint and programs like it can graphically display many elements of a product demonstration. Through the use of graphics software, embedded video, and other tools, the salesperson can develop a successful demonstration without actually having the product in front of the customer. Almost every computer manufacturer sells portable projectors. Among the more popular are Dell and Mitsubishi. With them, salespeople can take very sophisticated demonstrations right into the customer’s office.

The Value Proposition

You remember the discussion on value creation in Chapter 3. We talked about the importance of value in the relationship-selling process. Creating value for their customers is really why companies are in business. However, customers must see the value of the company’s products and services. The sales presentation is where that value is conveyed to the customer.

Chapter 3 highlighted many ways a company can create value for its customers. The job of salespeople is to identify their customers’ needs and apply their knowledge of their company and its products to satisfy customers. Critical to that process is the value proposition, which is the summary of the value the customer receives based on the expected benefits and costs.

A realistic assessment of benefits and costs can be a persuasive tool to support the claims of the company’s products and services. Customers today are often looking for a strong business case to justify the purchase decision. They ask a valid question, “How is your company adding value to my business?” Refer to the Appendix to chapter 3 (“Selling Math”) for an in-depth discussion of building a financial business case in relationship selling.

A value proposition should be part of every presentation. Assessing the value proposition for your customer should be part of your preparation. Of course you will learn more about the customer’s needs during the presentation, but by assessing the customer value of your company’s products before the presentation, you can anticipate objections. As we shall examine in chapter 8, many customer objections deal with the value added by your company’s products. If the price is too high (a common objection), the customer is really saying he or she has not been convinced the value of your product exceeds the cost. The customer does not believe your value proposition. Defining the customer value of your company’s products and services and communicating it are essential to success in relationship selling.

Nonverbal Communication

Nonverbal communication is the single most important element in the communication process. Research suggests that over half of all communication is a result of things we see or feel. These include, but are not limited to, facial expressions, posture, eye contact, gestures, and even dress. Surprisingly, less than 10 percent of communication is based on the actual words we speak in a conversation. The remainder (about 40 percent) of what we take in is the result of how we hear the communication (vocal clarity, pitch, tone of voice).

Given the importance of nonverbal communication to the total communication process, salespeople need to know how to interpret their customers’ nonverbal communication. They also need to know how to use nonverbal signals to communicate. How you sit, what you wear, even the amount of space between you and the customer sends a message. Let’s examine nonverbal communication more closely.

Customer Nonverbal Communication. We spoke earlier about active listening and how important it is to focus intently on the customer. Customers, indeed all of us, speak volumes in the way we move. We communicate with almost every part of our body. Our hands, legs, facial expressions, even the way we hold our body (slumped over, sitting straight up) all convey a message. A person who has arms open and palms extended is sending a very different message than a person with folded arms and legs.

FACE. The face is the single most important feature of nonverbal communication. Without saying a word, a customer can convey acceptance or rejection, anger or amusement, understanding or confusion, with a facial expression. We all know the meaning of a smile or a scowl, but the face can convey many subtle messages as well.

“The eyes are the window to the soul” is a famous saying. Watching a customer’s eye contact can tell you a lot about what he or she thinks of your sales presentation. A customer who stares blankly at the presentation is not really interested. Yet the more intently the customer stares, the greater the likelihood he or she is reacting negatively. When people are really focused on oral communication, they usually look down or up to enhance their concentration. Turning away indicates the customer believes the presentation is over—or wishes it were.

ARMS AND HANDS. Arms open, palms extended is one of the clearest signals the customer is open to the communication. Conversely, folded arms with closed hands indicate he or she is not receptive to what is being said.

Many gestures have different meaning around the world. Gestures and hand movements that are accepted in one culture can have very different meanings somewhere else. It is always helpful to know the customer’s culture before interpreting these kinds of signals—or attempting to send them.

BODY LANGUAGE. When a customer leans forward in the chair, he or she is showing interest, while leaning back indicates a lack of concentration in the presentation. Quick movements indicate something has changed in the customer’s mind. He or she may have a question, want you to conclude the presentation, or even feel bored.

No single customer movement or action should be taken out of context. People lean back in their chair for many reasons besides boredom. Without thorough knowledge of the customer’s behavior patterns, it would be dangerous to infer too much from a specific gesture or even a single meeting.

Salespeople need to balance what they are seeing (nonverbal communication) with what the customer is saying (oral communication). When the presentation is going well and the customer accepts the information, verbal and nonverbal communication will likely be consistent. When the two forms of communication are inconsistent, the customer’s comments may not express his or her true feelings about the presentation.

Salesperson Nonverbal Communication. Just as customers convey a great deal through nonverbal communication, so do salespeople. Literally hundreds of nonverbal signals are conveyed in every sales presentation, and salespeople need to be aware of their own nonverbal communication. Customers watch salespeople for nonverbal messages. Slight movements (looking away from the customer, glancing at the clock) can convey a message that was not intended. Here are some critical nonverbal cues.

The Space between you and the Customer. We all operate with concentric circles of space around us. The concept of territorial space is based on research that suggests that people have varying levels of space around themselves that they do not want people to enter without permission. Have you ever met someone and felt crowded? When their space is violated, people become uncomfortable. A salesperson should never violate a customer’s space.

There are four levels of space around a customer. The most accessible is public space, which is at least 12 feet away. Almost anyone is welcome in this space, and this is often the distance between a salesperson and the group in a public presentation. Social space is from 4 to 12 feet and is often the space between customer and salesperson in a personal sales presentation. Think of it as the desk between the customer and salesperson in the customer’s office. In this space, keep in mind your position relative to the customer. Standing while the customer is seated can be uncomfortable for the customer when you are this close. Personal space is 2 to 3 feet and should not be violated except for a handshake. Even then, the salesperson should be careful not to suffocate the customer. Finally there is intimate space (up to 2 feet). This space is reserved for family and close friends. Violating it is rude and even offensive.

Body Movements. When you look down or appear ill at ease, it suggests to the customer that you are not confident in the presentation. If the customer senses a lack of confidence or preparation, the presentation will probably not be successful, no matter what you say. You need to communicate confidence through your facial expressions and body movements. An open, accepting demeanor conveys a positive message to the customer before you have even said a word.

It is helpful to study your customers and match their style. Some people have a more conservative style than others, and being too gregarious or entering the customer’s personal space can send negative nonverbal messages.

One caveat in nonverbal communication: Do what comes naturally. Don’t try to be something you aren’t. You’ll just confuse and alienate customers. The key is to blend basic rules of nonverbal communication with your own communication style. Practice your nonverbal communication in front of a mirror or have a friend watch as you run through your presentation. Too often practicing a presentation consists of going over the words and PowerPoint slides without taking the time to practice the nonverbal messages you are sending the customer.

What to Do When Things Go Wrong

No matter how much planning and hard work you put into it, you can’t control every aspect of the sales presentation. Indeed, most presentations offer at least one obstacle. Successful salespeople realize that, even when they have created the right setting for the presentation, things still come up to distract the customer. It is wise to consider what to do in difficult situations before they happen. While every situation introduces unique challenges, we will focus on three: interruptions during the presentation, inappropriate sales presentation environment, and a failure of technology.

Interruptions During the Presentation. Most of the time you are presenting at the customer’s business, which means you do not control the environment. Of course it helps when the customer tells the staff to hold all calls, but that is no guarantee there will be no interruptions. Cell phones, pagers, and superiors can still find the customer when necessary.

What do you do when the customer is disturbed during the presentation? First, assess the nature of the call. If it’s confidential, withdraw to give the customer space to deal with the issue in private. Second, consider any interruption an opportunity to assess the progress of the presentation and plan where you want to go from here.

Third, be patient and allow the customer to refocus attention on you before proceeding. Perhaps the customer needs to make some notes after the interruption or simply take a few moments to collect his or her thoughts. Don’t proceed without first getting some indication that the customer is now focused again on you and the presentation. Fourth, briefly restate the key points you have covered in the presentation. You might validate where you left off with the customer by asking a question: “I believe we were talking about the benefits of our extensive product inventory to your manufacturing needs, is that correct?” Wait until you have the customer fully engaged before proceeding with the rest of the presentation.

Inappropriate Environment. Another issue for a salesperson meeting at the customer’s place of business is the location of the presentation. A personal office or conference room with all the necessary equipment and privacy is ideal, but it’s not always available. In pharmaceutical sales, for example, salespeople often meet with the doctor between patient visits and have only 5 to 10 minutes.

The key for dealing with less than ideal conditions for a presentation is preparation. Be knowledgeable and confident enough in your presentation that you can improvise in a difficult environment. If you have a 30-minute presentation and the customer says he or she has to leave in 15 minutes, make the necessary adjustments and go for it. Customers often appreciate salespeople who can accommodate unforeseen challenges in their presentation.

Technology Failure. In the high-tech world of today’s selling environment, it is essential that salespeople know how to effectively incorporate technology into the sales presentation.¹⁴ However, because technology is part of the sales process, salespeople need to be prepared when (not if) technology fails. What do you do when the computer crashes, the projector bulb burns out, or the customer wants the presentation in a room with no technology capabilities? As we have discussed already, technology can certainly enhance a presentation; however, it is not the basis for the presentation.

The solution is simple. Always have a backup plan when technology fails. If your presentation is in PowerPoint, bring a set of overhead transparencies and a hard copy of the presentation just in case. Even when the computers are down, you can usually get access to an overhead projector. The customer can follow your hard copy even if you cannot project it on screen. You should always bring a copy of the presentation anyway, to leave with the customer.

Many companies now are equipping their sales force with portable projectors to use when the customer does not have the proper equipment. This gives salespeople a great deal more flexibility in location. They are no longer dependent on the customer to set up for a computer-generated presentation. The key in these situations is to develop a plan of action to deal with any possible technology glitch. A good rule of thumb

is to expect the unexpected. One of the most difficult ethical challenges in today’s technology-oriented sales environment is the use of technology for personal use. Read the Ethical Dilemma to further explore these issues.

Managers Are Essential to a Great Presentation

Salespeople operate in the customer’s environment, and they rely on the sales manager to support their efforts back at the office. Without that support they would be unable to sustain an effective presence with customers in the field. The two basic roles for the sales manager are mentor and salesperson.

Many managers come out of the sales ranks, and every manager is expected to work with salespeople to enhance their effectiveness during the presentation. Most organizations consider the role of mentor very important. Helping salespeople improve their skills is part of the job description.

The second role is that of salesperson. Yes, even sales managers have sales responsibilities. Customers, especially large customers, expect to see the manager as part of the sales presentation. The manager’s presence makes customers feel important. Also, customers, at certain levels in their organization expect to negotiate with a sales manager.

We will discuss these roles in much greater detail in Part Three.

Providing the Tools for Success

The manager needs to equip salespeople for success. First, the salesperson needs the proper training to get the job done. Sending a salesperson in front of a customer without sufficient training will ensure failure. Second, the manager needs to provide the equipment for success. Today that means computers (laptop or desktop), mobile communications (cell phones), and other technologies the salesperson needs to deliver a persuasive message to customers. Third, the manager needs to develop and manage effective reward and compensation systems to ensure a highly motivated and satisfied sales force.

While we will explore the manager’s tasks and responsibilities to the salesperson later in the book, it is important to recognize now that managers do play an important role in the salesperson’s success during presentations.