The Psychology of Selling The Art of Closing Sales Brian Tracy The Psychology of Selling The Art of Closing Sales Brian Tracy ©MCMLXXXVII Contents How You Can Benefit Most from This Program . . . . . . . . . . . . . . . . . . . . . . . .4 1. The Psychology of Selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 2. Developing a Powerful Sales Personality . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 3. Why People Buy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 4. Creative Selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 5. Approaching the Prospect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 6. The Sales Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 7. The Psychology of Closing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 8. When Objections Get in the Way . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 9. Winning Closing Techniques – I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 10. Winning Closing Techniques – II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 11. Managing Your Time Efficiently . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 12. Ten Keys to Success in Selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 3 How You Can Benefit Most From This Program The final value to you of The Psychology of Selling Use This Guide will depend on how many of its insights and guidelines After hearing a session, refer to the corresponding you can, or choose to, adopt as routine ways of thinking section of this guide. Here you’ll find a useful summary and acting. You’ll be wise to listen to each audio session of the main points discussed and suggestions for putting several times. Don’t expect to get full value from these the ideas to work in your life. sessions if you hear them only once. Even the most intelligent, thoughtful listener needs to hear sessions Act on Your Ideas such as these several times to be able to pick up, think over and internalize all the ideas discussed. Also, each Until intelligent thought is linked with appropriate repeated listening will spark for you additional ideas action and follow-through, little or nothing is that apply to your current needs and goals. accomplished. So once you’ve grasped a particular idea or technique and how to apply it, act – put it to work in Make Concentrated Listening a Habit your career. The results may seem slow at first, but if you’re determined to stick with the program, you’ll soon Set aside a short period each morning or evening, or discover that you’re closing more sales – and reaping the both, when you can listen with full attention to the greater cash rewards that come to the top sales sessions with which you are working. This does not in professional. any way preclude casual listening – while you’re driving your car, dressing, eating or exercising, for example. It is simply a more concentrated form of listening. Jot Down Your Ideas Whenever you’re listening, keep pen and paper at hand, and be prepared to stop your audio player at any time. When you hear an idea or technique that particularly appeals to you, stop the audio. Think about the idea. Think about it in connection with your situation, your work, your life-style. Think about its value to you – how it could change and improve what you are doing. Think about how you can apply it, visualize yourself doing so and making it pay off for you. Jot down some notes to remind yourself of your thinking and to help you take action during the days ahead. Then restart the audio and continue listening. 4 The Psychology of Selling Session One SELF-ASSESSMENT We always sell in a manner consistent with our self- concept. Some of us are uneasy about picking up the 1. Am I proud of my profession? phone and calling somebody. Some of us feel 2. Am I in the top 20 percent of salespeople? uncomfortable about closing. By becoming more skilled, 3. Do I genuinely like myself? we feel more competent, raise our self-concept and 4. Is there any aspect of selling that makes me become more successful. uncomfortable? 5. Does my self-concept include a high level of The core of self-concept is self-esteem. A person with income? high self-esteem likes himself. How much you like 6. Can I cope with the rejection that I will inevitably yourself is the key determinant of your performance and encounter in selling? your effectiveness in everything you do. SUMMARY There are two major obstacles in selling. The first obstacle is the customer’s fear of making a mistake. The The most important thing we have to understand in the second major obstacle in selling is the salesperson’s fear world of selling is that nothing happens until the sale of rejection. Until a salesperson develops confidence, a takes place. The most successful organizations in the high self-concept and sufficient resilience to bounce world have superb selling organizations. They rise or back from inevitable rejection, he cannot sell fall on the quality of their sales effort. We can be proud successfully. All outstanding salespersons have reached to be salespeople because it is upon our efforts that the the point where they no longer fear rejection. whole economy floats. There is no limit to where we can go in this profession if we are properly trained and Sales are usually based on friendship. People will not skilled in selling. buy from you until they are genuinely convinced that you are their friend and are acting in their best interest. In selling, the 80-20 rule, or the Pareto principle, There is a direct relationship between your level of self- prevails. According to the 80-20 rule, 80 percent of sales esteem and how well you get along with different are made by 20 percent of the salespeople. Once you get people. The best salespeople have a natural ability to into the top 20 percent, you don’t have to worry about make friends easily with perspective customers. money or employment again. Your job is to get into the top 20 percent and then into the top 4 percent. In the A key element in selling is enthusiasm. A sale is a top 4 percent, you become one of the highest paid transfer of your enthusiasm about the product or people in the world. The purpose of The Psychology of service into the mind and heart of the other person. Sellingis to show you how to achieve that goal. The reason so many people fail in sales is that they do The winning edge theory says that the difference not stay with it long enough to get those first few between top performers and average or mediocre winning experiences that raise their self-esteem and self- performers is not a great one. It is always just a small concept and set them off on a successful career in difference: Top performers just do certain things a selling. That’s why it’s so important that from the very certain way a little bit better each day. If you develop beginning you say to yourself that nothing is going to that winning edge, there’s no reason why you cannot stop you until you are successful. move rapidly into the top 4 percent. Selling is an inner game. That is, what is going on inside the mind of the salesperson makes all the difference in his success. We know there is a direct relationship between a salesperson’s self-concept and his sales performance and effectiveness. We feel uncomfortable if we don’t act in accordance with our self-concept. We will never earn much more or much less than our self-concept level of income. Our job is to raise this self-concept level of income. 5 SELF-HELP 1. List five aspects of selling that you enjoy: _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ 2. List any areas of your self-concept that should be improved. How could you increase your self- esteem? _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ 6 TThhee PPssyycchhoollooggyy ooff SSeelllliinngg DDeevveellooppiinngg aa PPoowweerrffuull SSaalleess PPeerrssoonnaalliittyy SSeessssiioonn TTwwoo SELF-ASSESSMENT When you feel good about yourself, things seem to go smoothly. Visualization is the very best way to put 1. Do I have high levels of self-confidence, self- yourself in a positive frame of mind. See yourself as the esteem, ambition and determination to succeed? best in your field. See yourself as the top money earner. 2. Am I goal oriented, with a plan to attain my goals? Confidently expect to succeed every minute of every day. 3. Do I understand the needs and care about the Professional salespeople are low-keyed, calm and well-being of my customers? relaxed, and they have absolute confidence. 4. Am I willing to work hard, take responsibility for myself and pay the price for success? Read about your profession for 30 minutes a day. If you 5. Do I believe strongly in my company and my will read for 30 minutes every morning, within six or 12 product, and can I communicate my enthusiasm months you will have read 10 to 20 of the very best sales to others? books that have ever been written. Listen to 6. Is it easy for me to make friends out of strangers? audiocassettes. Turn your car into a university on wheels. If you’re continually feeding your mind with SUMMARY cassettes and books about sales, motivation, inspiration, time management and personal development, you’re A powerful sales personality is more important than going to move ahead faster than anybody else in your product knowledge, selling skills or the product. profession. Superior salespeople have 10 characteristics. The first is a high level of self-confidence and self-esteem. Number After every call, ask yourself what you did right. Think two: The highperforming salesperson accepts full about how you would handle it differently next time. If responsibility for his results and looks upon himself as we review what we did right and then think about how self-employed. Number three: The top salesperson has we would do it better in the future, that is what we’ll do above average ambitions and desire to sell. Number four automatically when we go into the next sales situation. includes high levels of empathy and concern for customers. Number five: The successful salesperson is Resolve to pay the price to succeed. For everything we intensely goal oriented. Six: He has above average want in life, there is a price. Success comes only after willpower. Seven: He has determination and willing- you’ve paid the price, never before. ness to work hard. Eight: He believes in himself, his product and his company. The ninth characteristic is that the topselling salesperson is always absolutely honest with himself and with other people. Finally, the top salesperson has the ability to turn strangers into friends wherever he goes. How do we fulfill this psychological profile and become a successful salesperson? First, choose the right product. Some people are capable of selling tangible products, and some people are capable of selling intangible products. Next, you must believe absolutely in your product. Third, you must be able to transfer your enthusiasm to the mind of your customer. How do we become intensely goal oriented? Goals must be realistic and challenging. Define your goals in terms of the activities that you will have to engage in to achieve your desired income level. The activities include the number of calls, follow-ups, deliveries, presentations, etc. When you set a goal, you program it into the subconscious, which has the power to move you rapidly toward your goal. Also set personal and family goals. Make a detailed list of all the things you want to do that depend on being successful in selling. 7 SELF-HELP The only way to become goal-oriented is to plan your working day and week carefully. Your goal must be realistic but challenging. They must be defined in terms of activities necessary to achieve those goals. Fill out the plan below as an aid to fulfilling your goals. 1. Annual Income Goal $_____________ 2. Annual Sales Volume Required $_____________ 3. Monthly Income Goal $_____________ 4. Monthly Sales Volume Required $_____________ 5. Weekly Income Goal $_____________ 6. Weekly Sales Volume Required $_____________ 7. Daily Income Goal $_____________ 8. Daily Sales Volume Required $_____________ 9. Number of Calls Daily _____________ 8 The Psychology of Selling Why People Buy Session Three SELF-ASSESSMENT People naturally resist new things. Instead of presenting a product as something new, present it as an 1. Do I understand the basic reasons why people improvement. Customers want the simple truth about a buy any product or service? product or service. They want honest information about 2. Do I know how to uncover the basic needs of a how it can help them improve their lives and their prospective customer? businesses. They resent and resist high pressure. 3. Do I know my product well enough to understand the needs it will satisfy? Quality is never the primary reason for buying anything. 4. Do I understand that quality alone is not enough Quality is always based on logic, and people buy to motivate a customer to buy? emotionally. The issue of quality should arise only when 5. As a closing technique, do I determine and focus you are comparing your product at a certain price with on the prospect’s one main reason for buying the another product at a certain price and there are very product? definite reasons why the person should be concerned about quality. SUMMARY It’s important to understand that people buy for their In the prospect’s mind, the caliber of the sales reasons, not ours. Every buying decision is an attempt presentation, the materials used in the presentation, and to be better off as a result of having made that decision. the appearance of the salesperson reflect the quality of The individual who’s making a buying decision has the product itself. Moreover, if a salesperson is well three choices: He can buy from you, from someone else, groomed and dressed and his presentation is or from no one. professional, the prospect assumes that the company is a high-quality company. All professional selling begins with need analysis. And you’re not in a position to sell until you understand As long as you are focusing all your attention on the what need of the prospect your product or service can customer and what he or she wants and needs, you’re satisfy and then structure your presentation so it selling professionally. In every sales conversation there satisfies that need. Your job is to get the person to the is a key benefit — the major benefit that would cause point where he is completely focused on how he will the person to buy the product. Also, there is a key issue gain by using your product, rather than how much he — the major objection that would hold the person back might lose by committing himself to it. from buying the product. In the sales interview, your job is to uncover the key benefit and then uncover the key All buying decisions are emotional. If we say we’re issue. going to do something for a logical reason, that means we have more emotion invested in that reason than any The hot button is considered by many to be the most other. Whenever a person says he would like to think powerful of all closes. The success of the hot-button about it, he is saying that you have not aroused his close depends upon the ability of the salesperson to desire to own or enjoy the benefits of your product. discover the most important reason for the customer buying the product, and then repeating it over and over. The basic rule of selling is that people do not buy Concentrate on selling that one main point. products; they buy benefits. And our job in the sales conversation is to find out what benefits this person would be willing to pay for. You uncover needs by questioning skillfully and listening carefully. If you let people talk for a time, they will tell you their basic need or concern with regard to your product. 9 SELF-HELP 1. Explain how you would conduct a needs analysis to connect the benefits of your product with a prospect’s need. _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ 2. List several ways in which you can improve your personal appearance. _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ 3. Write one question you would use during the hot- button close to uncover the prospect’s major reason for not buying your product. _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ _________________________________________________ 10