Face-lift for Selling

A case for consultative selling!

Mr. Trivedi sought proposals for installing a network that connected his factory and branch offices with the head office. He received two proposals, which seemed to meet his requirements. In the end, Mr. Ashwin Mehta of Routers & Hubs, who had carefully identified and analysed the requirements, landed the deal by proposing a solution following a discussion with the technical team. It was no coincidence that Routers & Hubs emerged victorious. The key to success lay in the approach that Mr.Mehta adopted. It was centred on understanding the client’s needs and customising a solution.

Such an approach is popularly known as consultative selling. This is different from the traditional ‘push’ strategy, where a salesman displays all his wares before the client, and tries to convince him that it suits his requirements.

More specifically, consultative selling is different because:

• You don’t sell; you consult with the customer and aim to fulfill his needs
• You aim to build a long-term, mutually fulfilling relationship rather than a one-off sale

Why is consultative selling important?

The business environment has undergone a sea change. Traditional approaches are being challenged and rendered obsolete with impunity. Companies are fighting battles on different fronts at the same time. Increasingly, they are looking for partners they can rely on, rather than at those whose eyes are set only on the transaction. The stage is set for professionals who can proactively identify client needs (stated and unstated) and offer a complete solution, rather than just push a product off the shelf.

Consider the case of a machinery manufacturer’s key components supplier. The sales executive over a conversation with the purchasing officer realised that the company was having a problem in maintaining its machinery. The executive seized the opportunity to discuss possibilities of taking over the maintenance function in addition to supplying components. The manufacturer was also delighted, as he could now concentrate on manufacturing processes.

What are the benefits of the approach?

When executives practise consultative selling, they:
1. Become a confidant of the customer and therefore have high retention rates
2. Can sell more add-on products/services
3. Collect positive referrals and testimonials
4. Develop a strong network of clients

Steps for effective consultative selling:

The basis of consultative selling is in identifying win-win solutions. In this endeavour, it is necessary to:
1. Know your customer: Before attempting to sell to a customer, it is imperative that the executive has information about the company, the industry, competitors and customers. This will help in fine-tuning the need identification process. Only then will the company be able to add value to its offerings.
2. Focus on future: The consultative approach fails to have the desired effect if it does not focus on a long-term relationship. An ongoing, continuous relationship with the client allows you to cater not only to the current needs but also emerging and unarticulated needs.
3. Study his value-delivery process: Identifying the client’s value-delivery process will allow you to identify your role in the process. The level of mission-criticality of your contribution will allow you to design better solutions.
4. Concentrate on the network: The network that you build over a period of time may be the ideal platform to identify new business opportunities. The positive referrals and word-of-mouth will open new vistas.

When a company adopts consultative selling, it ceases to be a supplier; instead it becomes a solution-provider. Clients benefit because the solution-provider acts as a business partner who helps at every stage right from problem/need identification to post-implementation support. The provider in turn benefits from assured business. An ideal win-win situation!

Related reading:

1. "The art of consultative selling”; Reg Connelly Associates; May 2001
2. ”How to use the art of consultative selling to sell upto 10 out of every 10 prospects you meet with”; Kay, Brian; Leads 4 Insurance; 2000.
3. “Fifteen tips for mastering the art of selling”; Weinstein, Bob; IT World; May 2001

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