Book Summary of Psychology of Selling
What is Sales Psychology?
The psychology of selling book explains the concept as understanding the thinking of individuals and factors that motivate them to buy a product. There are different psychological triggers which can help in increasing the sales for your company or business.
Brian mentions that sale people are the spark plug for any business. More CEOs of Fortune 500 companies have come up through the ranks from sales than from any other part of the company.
Your ability to sell can give you a high income and lifelong job security. No matter how many changes occur in the economy, there will always be a need for top salespeople. As in every field, 80-20 rule is also applicable in sales.
The top 20% salespeople make earnings of 80% of the salesperson in the organisation. As an individual from any field, we should aim to be in that 20% category.
The difference between the top performers and the average or mediocre performers is not a vast difference in talent or ability. Often, it is just a few small things done consistently and well, over and over again.
Success is mental
Some years ago, Harvard University studied sixteen thousand salespeople and found that the essential qualities that determine success or failure in selling were all mental.
Instead of following the followers, Brian Mentions, the average performers in your business, follow the leaders. Compare yourself to the top people. Remember, no one is better than you, and no one is smarter than you.
Your self-concept is the bundle of beliefs that you have about yourself. Self-concept. All change/improvement in your life begins when you alter and improve your self-concept,your inner programming.
If you earn 10 per cent more than you think you are entitled to, you will immediately engage in compensating behaviours to get rid of the money. If you earn 10 percent or more below your self-concept level of income, you will engage in scrambling behaviours.
“You can never earn more on the outside than you can on the inside. It is almost as if you have an “income thermostat” that determines your financial temperature’
Imagine yourself as if you were already the kind of person you want to be, earning the kind of money you want to earn. Look at other people who are making more money than you and imagine that you are exactly like them.
The better we get in an area, the more positive self-concept becomes in that area. The more confident you become about your skill, the happier you feel, and the better results you get.
Every the single step that you take to improve in any area raises your self-confidence.Picture yourself having all the money you will ever need and only making sales calls because you enjoy meeting new people.
When you repeat the words “I like myself !” over and over throughout the day, you actually cause a chemical change in your brain.
The 7 Key Areas in Sales
- Building rapport
- Identifying needs
- Answering objections
- Closing the sale
- Getting resales and referrals
The main reason we fear taking action is a particular skill because we have not mastered some of the sales areas, as mentioned above. Brian says that we can learn anything that we need through practice and repetition.
Psychology of Selling Brian Tracy mentions the major obstacles to making and closing sales are fear of failure and failure of rejection which are both mental.
People have been sold things that they did not want could not afford and could not use, which are all means of cheap sales technique.
One of the most important things you can do in building trust and credibility is to reduce the customer’s fear to the point where he has no hesitation about going ahead with your offer.
A full 80 percent of sales are never closed before the fifth meeting or closing attempt. After the fifth time, you ask the prospect to make a buying decision that you make most of your sales.
One of the essential secrets of success in sales is for you to understand and accept that people don’t “think it over.” The minute you walk out of the prospect’s office or home, he or she forgets that you ever lived.
Then, when you visit the prospect a week or two later, you are amazed to find that he has forgotten your name, your product, and everything else. He doesn’t remember who you are or what you sell.
He has not been thinking about you or your product or service at all. People don’t think things over with regard to products or sales. These words are a polite way of saying, “Good-bye forever. When a person says no to you, he is not saying no to you as a person. He is simply saying no to your offering or your presentation or your prices. The rejection is not personal.
Everything you do to raise your self-esteem, including positive self-talk, affirmative visualisation, personal motivation, enthusiasm, and individual training improves your personality and increases your sales effectiveness.
How to sell
Firstly we must understand that people buy for their reasons, not for yours. The primary motivation to buy is buying products and services make them feel they will be better off as a result.
What is the psychology of selling
Working in sales Your job is to get the customer to understand that he needs your product enough to overcome any buying resistance that might derail the sale.If he buys a product from you that is unsatisfactory, he no longer has the money and is stuck with the product. Hence there is always a certain amount of buying resistance.
The book psychology selling mentions that most salespeople parrot the words price and quality as if they were reasons to buy anything.
In today’s competitive market, it is assumed that your product or service is well priced and of sufficiently high quality, or it wouldn’t be available in the first place.
Telling the prospect that he should buy your product because of your “price and quality” is very similar to saying that he should buy your product or service because you will deliver it to him. The prospect does not care what your product is. He only cares about what your product or service will do for him.
The two primary reasons people buy or don’t buy are the desire for gain and fear of loss. People are much more motivated to buy if they feel they are going to lose something by not buying than they are in anticipation of the benefits they will enjoy if they do buy.
Every customer has a particular need and while making the sales you need to identify these needs, they are
All buying decisions are emotional. In fact, everything you do is 100 percent emotional. The rule is that people decide emotionally and then justify it logically. You use logic to justify and rationalize your decision once you have made it. Think about the last purchase you made.
For example, a person may have a desire for the improvement that your product or service offers. But his fear of loss or of making a mistake can be more intense than his desire for gain.
If this is the case, he will refrain from buying. The stronger emotion will always win out over the weaker emotion.
Trying to reduce the fear of loss is a strong emotion and can resist individuals from making sales. Recommend a “money-back guarantee.” In this type of offer, the customer is promised that he will get his money back if he is not satisfied.
The second reason that a person may hesitate and put off a buying decision is that he is not sufficiently persuaded that he would actually get what you are promising.
Focus on value
In the process of value selling, you put all your emphasis on repeating and explaining the values and benefits that the prospect will receive if he buys what you are selling. Instead of reducing the price or offering a special deal of some kind, you focus your efforts on building value.
To sell the very most of your product or services, you must focus your time, attention, and energy on finding out precisely what will cause this customer to buy. Small businesses who buy products for resale are only concerned about one thing: net profits.
The most important benefit that a product or service can offer a retail business customer is an increase in net profits. While on the other hand, large businesses only buy products that help them improve performance and productivity, cut costs and expenses, or boost cash flow and profits.
Always talk and makes sales pitches in the words which the customer wants or needs are.
Sale psychology technique to find the needs of customers
- The Freudian Slip -In psychoanalysis, this is called a Freudian slip. Psychologists have found that if you allow a person to talk about himself freely, eventually he will slip. He/ She will blurt out what he is really thinking about at the moment.
- Use Open-Ended Questions –The best questions to ask to open up a conversation and get more information from a prospect are called open-ended questions. These are questions that begin with a pronoun or adverb, words such as what, where, when, how, who, why, and which. These questions cannot be answered with a simple yes or no
- Position Yourself Properly – Position Yourself Properly the very best salespeople today see themselves more as consultants and advisors to their customers than as salespeople.Position yourself as a friend rather than as a salesperson, as an advisor rather than as someone who just wants to make a sale.
- Tell the Truth – Customers are seeking honest advice to help them do their jobs more efficiently or live their lives better. The more you focus on how you can help your customer, the easier it is for you to sell and for the customer to buy.
While buying the customer wants to know if the product will pay for itself, and how long it will take before it pays for itself. The customer wants to know how certain he can be that the product will pay for itself.
there is a key objection to every sale, the major reason that the customer will hesitate or decide not to buy. It is absolutely essential that you uncover this key objection and find a way to answer it to the customer’s satisfaction.
Principle of Selling
Making sales is art and science and takes patience and practice to perfect, and it is one of the valuable skills to master. The psychology of selling mentions some of the technique to make sales.
In this method, You reduce initial sales resistance by saying, “Mr. Prospect, thank you very much for your time. Please relax; I’m not here to sell you anything right now. That’s not the purpose of my visit.”
You then say, “All I want to do in the time we have together is show you some of the reasons why so many other people have bought this product and continue to buy it. You are saying, “I won’t try to sell you anything if, in exchange, you will listen with an open mind.”
In fact, he is now curious to know why so many other people have purchased your product and continue to purchase it.
Ask for the Answer
If the prospect says, “Well, I have to think it over,” you can respond by saying, “Well, Mr Prospect, I appreciate that, but you promised you would tell me one way or the other if this applied to your situation or not.”
You then say, “And after what you’ve told me, it seems that this is ideal for you at this time unless there is something else that I don’t understand.” This forces the prospect to give you a reason for hesitating or objecting. In either case, this allows you to answer the objection and to go on selling.
The Demonstration Close
The demonstration close starts with a strong question aimed at the chief result or benefit that the customer would enjoy when he buys your product and simultaneously qualifies the prospect.
Ex – “How much are you capable of investing if I can fulfil the promise contained in my opening question?”
You could further qualify the prospect by saying, “If you really liked it, could you invest ten thousand, or more?” The prospect can say either yes or no. In either case, you are qualifying the prospect more narrowly and determining exactly what his financial situation is, even before you begin talking about your product or service.
The Two-Step method
In the technique, you first call, to ask questions to determine if the prospect can benefit from your product/ service. On the second call, you return with a recommendation or proposal complete with terms and price. Tell them how they can benefit the most from what you are selling.
Whenever you make a sales presentation, your sales pitch should mandatory answer the audience question that is generally faced in sales psychology.
- How much do I pay?
- How much do I get back?
- How soon do I get these results?
- How sure can I be that I will get the results promised?
Do What you love to do.
You must learn to love your work and then commit yourself to become excellent in your field. Invest whatever amount of time is necessary, pay the price, go the distance. Commit to excellence. Join in top 10 per cent.
Decide What you want exactly.
Decide exactly what it is that you want in life. Set a goal and then determine what price you are going to pay to forget it. Most of the people never do this. Use the goal-setting formula.
Back your Goal with Persistence & Determination
Once you begin, refuse even to consider the possibility of failure. Back your goal with perseverance and willpower. Decide to throw your whole soul into your success and into achieving that goal. Make a complete commitment.
Commit to Lifetime Learning
The mind can appreciate in value, Read and listen to audio programs, attend seminars and courses, and never forget that that most valuable asset is your mind. Every time you learn and practice something new, you move ahead line.
Use your time Well
Your goal is to focus on those activities that will contribute to the very most value to your life and your work. Work with the list it will improve productivity by 25%. Set priority to the task. Ask yourself if I could only do one thing which one would be for the day.
Follow the leaders
Imitate the ones who are going somewhere in their life. Follow the people who are achieving the kind of things that you want some time in future. Ask for the advice from the top people in the industry.
Remember the type of group you choose to associate most of your time, largely determines what you accomplish in your life.
Character is Everything
In business and sales, you must have credibility. You will be successful when people will believe you and have trust in you. Stephen covey says “If you want to be trusty, be trustworthy”
The book psychology of selling says that we should develop the ability to see the world as it is and not as we wish to see it.
The Golden Rule of Life
All the interaction in life should be done keeping in mind this rule – Do unto others as you would have them do unto you. Brian Tracy takes this rule a notch higher saying “conduct your life as if every act were to become universal for the people”.
Pay the Price for Success
The success principle in sales is to start a little earlier, work a little harder. Move fast, get going and develop the sense of urgency a bias for action.
In the end, Brian Tracy mentions that’s like every other skill sales is also a skill which needs to be practised. The more you understand the customers’ needs, the better position you will be in helping the customer’s problem with your product.
One line Take Away
- Sales if about understanding the customer needs and providing the solution from them
- Customer buys not the product but the answers for their problem
- Having the right mindset is critical for the success
This book should be read by every individual who works in sales, Marketing or Start-up founder.