HOSPITALITY SALES MANAGEMENT

HOSPITALITY SALES MANAGEMENT

HA - 400

P2, S4, T3

Building and Maintaining Relationships

By: Richard G. McNeill

December 20, 2000

Introduction

The power that drives consultative selling is relationships. In today’s selling environment, potential buyers are screening out as opposed to seeking out product/solution sellers. This fact is exemplified by the shrinking number of suppliers that businesses are willing to deal with. Buyer’s are simply too busy to see a large number of sellers. These buyers are looking to find reliable suppliers (sellers) who have integrity and with whom they can have a long-term relationship. These developments drive the competitive advantage associated with salespeople who become consultants and partners with these buyers. All of this translates into repeat business and referrals.

So what are the responsibilities of a consultative salesperson in establishing relationships? There are three challenges:

1. Building New Relationships – This is a matter of establishing rapport with the potential buyer with the initial personal contact.

2. Transforming the Personal Relationship into a Business Relationship – most relationships are initiated on a social basis and only later develop into a business relationship. Making this happen in a smooth manner is an art.

3. Management of the Relationship Once it is Established – Usually the business relationship begins when a prospect (potential customer) is converted into a customer (makes the first purchase). Management is concerned with how the salesperson maintains the first customer and secondly, with how the salesperson develops the first customer (either expanding repeat business or referrals from this customer). The quality of the business relationship begins with the professional manner in which the first sale is made, through After-Sale Service (implementation of product/service and continued contact and development activities).

Building a long-term business relationship (partnership) can be compared to the process of dating through marriage and even divorce. First, there is interest and flirting, Second, there is dating or getting to know one another better (here there are still things that you don’t know about the other). Third, there is engagement or movement toward a more serious relationship (here each party starts to ask tougher questions about each other). Fourth, if all goes well, marriage or a long-term partnership is agreed upon (hopefully, each party lives up to expectations and responsibilities regarding the partnership). Finally, if all does not go well, divorce looms on the horizon as partners question whether or not the arrange is mutually beneficial.

In both marriage and long-term business relationships, management of the arrangement is necessary. Each party must be sensitive to each other’s needs and must be willing to adapt to changes over the lifetime of the partnership. In other words, everybody must pay attention. You can’t assume just because you start a partnership, that it will not require maintenance and attention.

How to Build Business Relationships

What is Partnering?

This is the highest form of a long-term business relationship. In it’s truest form it is relatively rare. For example, Walmart has an exclusive partnership with Proctor & Gamble (P&G) where the salesperson for P&G has a permanent office at Walmart. In other words, P&G doesn’t have many competitive salespeople calling on Walmart for P&G product categories. Another example, occurred in the late 1990s when Marriott corporation began an aggressive sales campaign to penetrate major company accounts such as Motorola where Marriott attempted to become the exclusive supplier of hotel products for all of Motorola’s traveling and meeting needs. Marriott could attempt this since it has a widely distributed (Worldwide) and variety of hotel types and a reputation for product consistency. Can you see the power of this type of relationship?

Partnering is an end goal but rarely achieved by most suppliers (salespeople). More common is having long-term relationships with customers who also have similar relationships with competitive salespeople (suppliers). However, having this type of arrangement is also very profitable.

Larry Wilson, a recognized sales expert, identifies working toward partnering as one of the most important strategic thought processes needed by salespeople. He outlines three keys to a partnering relationship:

1. It’s Built On Shared Values. The customer must feel that the salesperson and he/she share the same ideas and values.

2. Clearly understood purpose. Everyone needs this common understanding and must be committed to the vision. Everyone must agree on what they are trying to accomplish together.

3. Salepeople must Transform themselves from Sellers to Supporters. The salesperson is concerned with the welfare of the customer. They are concerned with the customer’s growth, health, and satisfaction.

Reese and Manning (1997), see the role of the salesperson in a partnership as exhibiting the following characteristics:

P Prepares Strategically for a long-term, high-quality relationship that solves customer’s problems.

A Asks Questions to get on the customer’s agenda

R Restates customer needs with confirmation questions.

T Teams with support people to custome-fit solutions

N Negotiates Double-Win (Win/Win) Solutions with joint decision making

E Exceeds Customer Expectations whenever possible

R Reexamines the ongoing quality of the relationship frequently.

Does any of this relate to Dating and Marriage partnerships?

Strategies to Develop Relationships

Strategy One: Change Your Thought Processes. Many people believe that salespeople are born. Well some do have natural abilities but these are not beyond the learning ability. They can be personally influenced and changed where needed. All that is required is the desire. Let’s talk about some of the thought processes that affect the ability to form relationships:

1. Self-Image. Is shaped by the ideas, attitudes, feelings, and other thoughts you have about yourself that influence the way you relate to others. You are in charge of your self-image. A positive self-image (high self-esteem) is an important prerequisite to success in persuasion and influence on others. How can you improve?

a. Focus on the future and stop being overly concerned with past mistakes or failures.

b. Develop expertise in selected areas.

c. Learn to develop a positive mental attitude (is the glass half empty or half full?)

d. Set and achieve goals.

2. Think Win/Win. No one loses here. The win/win approach can be described,

“You both come out of the sale feeling satisfied, knowing that neither of you has taken advantage of the other and that both of you have profited, personally and professionally, from the transaction. In the simplest terms, you know you have a win/win sales encounter when both you and the buyer come out of it feeling positively.”

3. Character and Integrity. This is probably the most important determinant of your ability to establish and also maintain long-term relationships. Without the ability to be trusted, no one will want to associate with you. We are social beings who conduct much of our business on social contracts, your handshake and word are accepted as a bond. When a person’s word can no longer be trusted, most people will avoid entering any arrangements with someone.

Now, some people believe that white lies and minor infractions of trust are of no consequence. In fact, they some how believe that if it’s a small lie then this is less of an infraction of social rules, say than a large lie that causes more severe damage. Don’t be fooled. Simply think about what you would do. If a person can’t be trusted with small truths, is there some doubt about how they would handle more consequential matters. In fact, trust is very fragile. Once lost, almost impossible to restore. So small things matter.

And, as a final word, don’t believe that you are invisible or are so smart as fool everybody. There is always someone smarter and less smart than you. Your character and integrity whether from a positive and a negative view will be noticed by others. You choose which way you will be seen.

Strategy Two: Nonverbal and Verbal Strategies that Improve Relationships. Your image is the first set of stimuli which reaches the other person. It will be assessed positive, neutral, or negative. And, it will be assessed almost instantly. The image that you project is the sum total of many verbal and nonverbal factors.

In communication theory, it has been said that: (a) and (c) What a person sees or feels (Facial expression, dress and grooming, posture, eye contact, touches, and gestures) is 55% of the message impact, (b) What a person hears (tone of voice, vocal clarity, and verbal expressiveness) is 38% of the message impact, and (c) what words a person uses is 7% of the message impact,It’s clear that a person needs to manage these factors for their impact on relationships. Let’s first discuss nonverbal factors (what a person sees):

What a person sees is 55% of the message.

1. Body Language. Other terms for this is messages without words and silent messages.

a. Entrance and Carriage – “All of us make entrances throughout our business day as we enter offices, conference rooms, or meeting halls. And every time we do, someone is watching us, appraising us, sizing us up, and gauging our appearance, even our intelligence, often within the space of a few seconds (Susan Bixler, The Professional Image)”.

b. Shaking Hands – An inadequate handshake is like dandruff: no one will mention it, but everyone will notice it. An effective handshake establishes a business relationship, signals active participation, and gives a message of confidence and goodwill. Some tips for an effective handshake:

(1) Eye contact during handshake. In American culture, it’s important to maintain eye contact during the handshake.

(2) Degree of firmness. Firm but not bone-crushing. And, don’t pump up and down more than once or twice.

(3) Depth of interlock. A full, deep grip will communicate friendship to the other person.

(4) Duration of grip. Usually by extending the duration a greater degree of interest and concern is communicated.

(5) Degree of dryness of hands. Clammy or moist hands communicate nervousness and can repel. If you have to, use a handkerchief to dry.

c. Facial Expressions – If you want to identify the inner feelings of another person watch facial expressions closely. “After overall appearance, you face is the most visible part of you. Facial expressions are the cue most people rely on in initial interactions; they are the “telepromter” by which other read your mood and personality (Janet G.Elsea, The Four-Minute Sell).”

People are looking for consistency between our facial expression and words and actions. One of the most important facial expressions is your smile. At the appropriate time, a smile will convey friendliness. Intermittent smiles trigger positive emotions within yourself. These positive emotions are transferred to the person at whom you are smiling. When you smile (appropriate times) at someone, you usually get a smile in return.

d. Surface Language – This is defined as a pattern of immediate impressions conveyed by appearance. It is the combined effect of all the appearances: clothing, hairlength, fragrance, jewelry, etc. And, this is judged according to expectations of the other party as to appropriateness or unappropriateness.

Everybody forms opinions about people on the basis of both facts and assumptions. Surface language is concerned with assumptions. People usually have certain views or unconscious expectations about appropriateness. So, there is no fixed, “Dress for Success.” It all depends on the situation or what is appropriate or is expected as appropriate. Discover what is appropriate or when in doubt:

(1) Choose Simplicity and conservative

(2) Choose Quality

What a person hears is 38% of the message.

1. Voice Quality – How can you make your voice more pleasing to others

a. Don’t talk too fast or too slowly. Rapid speech can cause customers to become defensive since rapid-fire speech is associated with high-pressure salespeople. Slower speech allows other to follow, to consider the situation, and make judgments. And, it allows the speaker time to think ahead.

Vary the speed of you speech, leaving spaces between thoughts (pauses). Crowding too many thoughts together may confuse the listener.

b. Avoid a speech pattern that is dull and colorless. No color and no feeling is the worst kind of voice. Speaking with enthusiasm is critical for an effective sales presentation. Enthusiasm is contagious.

Vary your tone to add color and vitality to what you say. Rising and lowering voice at varying speeds.

With today’s video cameras you can see how you look and sound. Record yourself while you are talking to another person and evaluate your performance.

What words a person uses is 7% of the message.

Generally this 7% statistic is low compared to the other impacts on the message to emphasize that the other areas can distract from the message. It’s important to recognize that when all the other areas are positive and don’t distract, then the other person may switch attention to this area. Then the impact rises to a higher importance. This area may be the final “polish” on your communication.

1. Vocabulary – Varied, correct pronunciation, appropriate

2. Word Choice – Positive/Neutral/Negative words

Strategy Three- Social Interaction that Enhances Relationships

1. Courtesy and Manners – Jonathan Swift said, “Good manners is the art of making people comfortable. Whoever makes the fewest people uncomfortable has the best manners.”

Courtesy and manners are increasingly valuable today since they are becoming more rare. You can distinquish yourself and stand out from the crowd by doing that which is so uncommon. There are many books on the subject and it would be worthwhile to invest time and effort in study. Here are a few, but certainly an incomplete, guidelines for salespeople or those wishing to influence:

a. Avoid the temptatin to address a new prospect by first name. In a business situation, too much familiarity too quickly can cause irritation.

b. Avoid offensive comments or stories. Nerve assume that the customer’s value system is the same as yours.

c. Do not express personal views on political or religious issues. An areas that can cause strong emotional allegiances should be avoided. There is seldom a safe position for you to take in these areas.

d. When you invite a customer to lunch, do not discuss business before the meal is ordered unless the client initiates.

2. Conversation Strategies – These deal with how you and the other person conduct your verbal interchange.

a. General Social Skills – Dale Carnegie had three keys to building a strong relationship:

(1) Become genuinely interested in other people

(2) Be a good listener. Encourage others to talk about themselves

(3) Talk in terms of the other person’s interests.

b. Observe and Comment On – Observant salespeople are aware of the things going on around them. These things are varied: trends, weather, to unique items in a customer’s office.

c. Compliments – Make sincere compliments. Most people react positively to compliments because they appeal to the need for self-esteem. Phoniness will be transparent and backfire as the other person suspects ulterior motives (you hurt your trust and integrity quotient).

d. Find Mutual Acquaintances or Interest – People like to interact with others with whom they have things in common.

e. General Common Sense – Don’t:

(1) Overwhelm your prospect with too many questions

(2) Give unsolicited advice

(3) Pursue a topic that does not interest your prospect.

Summary

Relationships are the key to Consultative Selling. Today, consultative salespeople must first establish relationships and then maintain and develop these relationships. The pay off is not only the pleasantness that comes from doing business in this environment, but repeat and referral business. And, this long-term relationship can strengthen to a true partnership. To achieve these benefits, salespeople must be aware of their own strengths and weaknesses that either advance or restrict relationship building. You don’t have to be a “natural born salesperson to learn and develop these skills.

References

Manning, Gerald, L. & Reece, Barry L. (1997). Selling Today (7^th Ed.). Upper Saddle River, NJ: Prentice Hall.