consultative-selling

What Is Consultative Selling? Consultative Selling In A Nutshell

Consultative selling is a sales approach favoring relationship building and open dialogue to adequately meet the needs of a prospective customer. By building trust quickly a consultative selling approach can help the customer better meet her/his expectations and the salesperson hit her/his targets more effectively.

Understanding consultative selling

Spoilt for choice and with high expectations, modern consumers and businesses are extremely sensitive to traditional marketing and sales tactics. This is particularly evident when they feel pressured to buy something from an aggressive sales representative determined to make a commission.

Consultative selling focuses on the experience or interaction a potential customer has with a organisation. It is solution-based, customer-centric, and prioritizes the formation of strong relationships. Company representatives act more like advisors than salespeople, recommending value-providing solutions tailored to the individual needs of the customer.

The five steps of consultative selling

There are five steps, or guiding principles, to consultative selling:

1 – Ask the right questions 

Here, the business must diagnose the root cause of a problem by asking the right questions. Open-ended questions that avoid “yes” or “no” answers encourage the lead to volunteer information themselves, which increases trust and mutual understanding. 

In the B2B space, it can be helpful to peruse the company’s social pages and website to get an idea of its size, approximate turnover, core product offering, and target market. It’s also important to determine how much the customer has budgeted for a solution to avoid any unwelcome surprises later.

2 – Listen actively

Customers are always aware of their own problems, but many believe they need one solution when they need something else entirely. 

Active listening helps the business read between the lines, as it were. To listen actively, the advisor needs to spend 80% of the time listening and 20% speaking. This allows them to pay attention to verbal and non-verbal cues which provide important insights into their motivations for buying.

Ultimately, these motivations are based on pain points which in turn are based on emotions not always communicated in words.

3 – Educate 

In the context of consultative selling, education means teaching a lead how to make an educated decision. Always assume the lead has done their research and requires help in implementing what they already know.

Education can take the form of related case studies from previous clients. Alternatively, it may incorporate a well-presented plan for addressing the problem supported by factual evidence. In any case, it is important to balance helpfulness with oversharing to avoid giving the lead everything they need for free.

4 – Customise 

As a potential sale draws nearer, tailoring the customer’s experiences becomes crucial.

The key at this point is to organically suggest how certain products or services may meet the consumer’s needs. Abruptly entering into a sales pitch may pressure the lead and undo the good work done in the previous steps. Showing the product in action can help solidify this suggestion.

While the advisor is trying to make money for the business, they must remain authentic and genuine. A tailored solution must be just that: tailored. Can the business tweak its existing product or service to meet the needs of a specific customer? Can it offer an exclusive discount or promotion?

5 – Close

The chances of closing the deal are increased by following the above principles.

However, pushback may occur in certain circumstances for a variety of reasons. In this situation, it may be helpful for the advisor to broach the topic of the potential consequences of not making a purchase. What might happen if the buyer can’t reach a goal, execute on strategy, or overcome their challenges?

Above all, a successful close should feel like the natural conclusion to discussions for both the business and its new client. This increases the likelihood that the two parties are a good fit. 

Key takeaways:

  • Consultative selling is a solution-based, customer-centric sales approach with a core focus on building strong relationships.
  • Consultative selling is underpinned by a deep understanding of the client. Avoiding open-ended questions and doing some background research on a company can go a long way to establishing trust from the outset.
  • Consultative selling also advocates active listening, where 80% of the meeting is spent listening and 20% speaking. This approach allows the advisor to identify verbal and non-verbal buying motives often based on emotion.

Connected Sales Frameworks

revops
RevOps – short for Revenue Operations – is a framework that aims to maximize the revenue potential of an organization. RevOps seeks to align these departments by giving them access to the same data and tools. With shared information, each then understands their role in the sales funnel and can work collaboratively to increase revenue.
revenue-modeling
Revenue modeling is a process of incorporating a sustainable financial model for revenue generation within a business model design. Revenue modeling can help to understand what options make more sense in creating a digital business from scratch; alternatively, it can help in analyzing existing digital businesses and reverse engineer them.
customer-experience-map
Customer experience maps are visual representations of every encounter a customer has with a brand. On a customer experience map, interactions called touchpoints visually denote each interaction that a business has with its consumers. Typically, these include every interaction from the first contact to marketingbranding, sales, and customer support.
aida-model
AIDA stands for attention, interest, desire, and action. That is a model that is used in marketing to describe the potential journey a customer might go through before purchasing a product or service. The AIDA model helps organizations focus their efforts when optimizing their marketing activities based on the customers’ journeys.
social-selling
Social selling is a process of developing trust, rapport, and a relationship with a prospect to enhance the sales cycle. It usually happens through tech platforms (like LinkedIn, Twitter, Facebook, and more), which enable salespeople to engage with potential prospects before closing the sale, thus becoming more effective.
business-development
Business development comprises a set of strategies and actions to grow a business via a mixture of sales, marketing, and distribution. While marketing usually relies on automation to reach a wider audience, and sales typically leverage a one-to-one approach. The business development’s role is that of generating distribution.
sales-cycle
A sales cycle is the process that your company takes to sell your services and products. In simple words, it’s a series of steps that your sales reps need to go through with prospects that lead up to a closed sale.
sales-funnel
The sales funnel is a model used in marketing to represent an ideal, potential journey that potential customers go through before becoming actual customers. As a representation, it is also often an approximation, that helps marketing and sales teams structure their processes at scale, thus building repeatable sales and marketing tactics to convert customers.
pirate-metrics
Venture capitalist, Dave McClure, coined the acronym AARRR which is a simplified model that enables to understand what metrics and channels to look at, at each stage for the users’ path toward becoming customers and referrers of a brand.
bootstrapping-business
The general concept of Bootstrapping connects to “a self-starting process that is supposed to proceed without external input.” In business, Bootstrapping means financing the growth of the company from the available cash flows produced by a viable business model. Bootstrapping requires the mastery of the key customers driving growth.
virtuous-cycle
The virtuous cycle is a positive loop or a set of positive loops that trigger a non-linear growth. Indeed, in the context of digital platforms, virtuous cycles – also defined as flywheel models – help companies capture more market shares by accelerating growth. The classic example is Amazon’s lower prices driving more consumers, driving more sellers, thus improving variety and convenience, thus accelerating growth.

Main Free Guides:

Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"