1.1 What actually is Sales?

So, let us begin with the absolute basic premise of this entire course, what actually is Sales?

Now, you may believe that you already know the answer to this, but do you really? You see, the world of sales is perhaps larger and more complex than you imagine, as it takes on board many different facets encompassing a vast array of industries and it can start to get rather complicated to understand.

You also have a number of different types of sales and it is important that you are aware of the variety to begin to better understand the seller motivation and the psychology behind it all, which we will cover later in this module.

We all understand that a sale refers to the exchange of money for some kind of commodity, with that commodity covering a wide range of possibilities. However, it does go a lot deeper than that simply because of the way in which you have to reach that end point where money does indeed exchange hands.

That is where the difference exists between those who are good at sales and those who struggle. Both types of people know that they have to do certain things to get their desired end result, but some will go on a long and winding path or pick up on the wrong cues from the buyers that they then provide them with the wrong information at the wrong time. Not just anybody is able to become a successful salesperson. You cannot just fall into it as a career and take off in ways that you never imagined. There is psychology connected to not just how you approach things, but also what is behind the motivation of the buyer and you need to be able to identify with both aspects to word things correctly and even just to appeal to a certain side of the buyer that makes them feel comfortable spending money with you.

Sales is about more than just the product. It is about the path that has to be taken. It is about the talking, the body language, and the eye contact. It is about trying to pick up on what the other person needs and trying to make sure that you can mould what you say to fit in with that need. However, Sales is also about being honest. Deceiving any individual is hardly going to turn you into a wonderful person as there are rules and regulations as to what should happen when giving a sales pitch.

The approach, and there will be more to follow, does come down to the personality of the salesperson and indeed it can be argued that the personality of the individual is one of the main driving forces behind the most successful sales people.

1.2 Understanding Buyer Motivation

Next, we have to begin to understand what is actually motivating the buyer, as having this knowledge will make it easier for the salesperson to complete the sale as they hoped they would. Buyer motivation also comes in various forms as there are different wants or needs driving their decision to spend money on products or services.

Psychologists have largely discovered there are two reasons that motivate us to do certain things. The need to avoid a loss of any kind and the need to gain some kind of a reward. However, it can be more complicated than that. Indeed, there are moments where both of these motivations can work together to propel an individual into making a decision as to whether or not they will make a purchase. For example, an individual may want to buy a product because they feel like it, which means to gain a reward, but then if they are with others that are buying a product, they may feel the need to purchase one even though they do not want to in order to avoid that feeling of loss.

Furthermore, studies have shown that human beings are more likely to be motivated by a fear of loss rather than gaining a reward and this has an impact on the way in which a salesperson should approach the issue of selling to a potential buyer. In most instances, salespeople are taught to play to the strengths of the individual gaining a reward by making that purchase, but if studies show that this is not the most powerful and common reason for individuals making a purchase, then why do sales managers insist on teaching their sales teams to focus on the benefits of the product or service? This mainly targets the entire concept of reward, whereas, according to the psychology behind motivation, the potential purchaser will be more inclined to want to know about how it can stop them from losing something as they will be more propelled into taking action.

Buyer motivation can, therefore, come from a number of factors that will influence the decision the buyer makes when trying to ultimately decide if they should indeed go ahead and make that purchase. However, the difficulty for the salesperson is that the actual real motivation may be something that, at this moment in time, remains unknown to the buyer themselves. They may believe that they want something as a reward, but once you get into the actual middle of their decision or thought processes you may be surprised to discover that they actually want something due to this fear of loss.

What we are saying is that the salesperson must not only understand the different potential motivations for the buyer, but they need to develop the skills that will allow them to identify those needs or desires as early as possible and to then alter their sales pitch to suit the individual they have before them. This does mean that you need to provide a personalised approach to each person, but a seller is motivated by this need to win over the buyer and to close the deal, so this should not be a problem.

FACT

Buying decisions are made on 20 % logic and 80% emotions.

Source: mycustomer.com

1.3 Understanding Seller Motivation

It is also important for us to look at the seller motivation as this takes us into the psychology of the salesperson and to determine what it is that drives some people onwards and turns them into absolute sales machines whilst others flounder with little success.People  automatically believe that the main motivation for a salesperson is going to be to make money and that is largely true, but there is more to it than just that one thing.

For successful salespeople, it is about hitting targets and beating what they managed to achieve the previous month. In addition, an experienced salesperson is going to see each attempted sale as being something akin to a new game. They are the type of people that hate to lose and because of this they will always seek to win time and time again. This hatred of losing, which is rather ironic considering the role of the fear of loss in the buyer, is undoubtedly a major motivator in the vast majority of sales people. There are various key characteristics that can be attributed to the actual motivation behind the salesperson and there is no doubt that the success of an individual does come down to how they are as a person.

1. A good salesperson is motivated by being a hunter.

A good salesperson is going to be a fantastic hunter and is motivated by the desire to get their next 'kill' so to speak. They virtually become addicted to the entire concept of getting the kill and they love the rush they get when they are able to achieve this aim. These people are willing to do whatever they have to in order to close that deal, but of course they should always stay on the correct side of the regulations and laws.

2. They have the motivation to follow up.

Often, one major difference between those who are a success and those who are a failure is that the motivated salesperson is going to be quite open at following up after an initial contact if they have not managed to close the deal. They are motivated to try their best and will leave no stone unturned until they are quite content that they have exhausted every eventuality. They are motivated to make sure they can sit down at the end of the day and know that they have tried their best.

3. Motivation becomes powered by the drive.

The source of motivation within salespeople will often come from the drive that they have to achieve results and to get to their final goal. They have the desire and energy to finish the deal and are not affected by rejection as they see it as being part of the job. Indeed, those that are successful see rejection as providing them with more motivation to complete the job in question and to close that deal.

1.4 The Psychology of the Salesperson

Aside from the characteristics of the salesperson, it is also important to look at the psychology of the salesperson to help you to identify if their nature ties in with your own personality.

Indeed, those that view salespeople are often enamoured by the way in which they are able to carry on even though they face rejection on a daily basis. People often view sales individuals as being aggressive and in your face, but that is actually not often the case and the complete opposite is true. The psychology of the salesperson is actually focused more on their ability to build relationships with their clients no matter if it is for just a few moments or longer depending on the nature of the product or service.

Fewer individuals are actually as arrogant as they are perceived to be and furthermore the idea that every salesperson has to have a larger than life personality is actually far from the truth. Indeed, the most successful individuals do not have a large personality, but rather they understand how to utilise what they have and they use their strengths to their advantage in order to close the deal.

In addition, the salesperson has the belief that they are actually able to influence and affect others and have the confidence in doing so. They are able to communicate in the correct way to get the kind of results that they are looking for and they are never afraid to say what they believe they have to in order to get to the point.

Furthermore, the mind of the salesperson is one that is sharp and they are able to take in information, process it in a short period of time, and then create the correct answer as a reply to the person they are selling to. The speed of thought is key because hesitating is going to result in a missed opportunity as that will allow the individual to conjure up a reason to not go through with the purchase.

The actual psychology aspect is more important than you think. It is estimated that 20% of the salespeople make approximately 80% of the money, so there are a number of people that are basically fighting for the scraps at the end of the day.

However, knowing this statistic and then how an individual reacts to it will tell us a lot about how they themselves approach the psychology of selling. Those that will ultimately prove to be a success do not see this as being a tall order, but rather they are intrigued by the difficulty of the challenge that awaits them. They love being pushed to their limits and it is something that is to be achieved and this desire to achieve will ultimately become a major motivating factor. They see this as being exciting more than overwhelming, whereas those that ultimately lose at being a good salesperson will have the complete opposite feelings about the exact same statistic.

Basically, what we are saying about the motivation and psychology of the salesperson is that it does really come down to the individual as to how well, or indeed how badly, they are going to do. It ties in with their very own psychology and character and even though there are aspects that can be developed, the things that separate both sides really does boil down to the characteristics we have in us naturally.

That is not to say if you are not born with certain characteristics you are always going to fail at sales, as that is certainly not the case. We will actually show you throughout this course, how you can develop certain aspects of your personality and personal skills to turn you into a better salesperson, but it does make life a lot easier when so many of these things come naturally to you.

1.5 Understanding the Basic Psychology of Selling

What we are really getting into here is the absolute basic psychology of selling and there is no doubt that psychology in general does play a major role in this process.Psychology can be applied to every aspect of the sales process and we also cannot forget the amount of psychology that is also included in marketing to even just get the individual to the point where they are ready to buy.

In most instances, people will make a purchase based on their emotions and they will then try to apply their own sense of logic to the purchase later on. Understanding this simple fact will allow you to become a better salesperson as it does mean that you can then focus on those emotions rather than trying to explain everything to the potential purchaser in a logical manner as that will just simply not be as effective.

The psychology behind a successful sales pitch is that there is a need for you to understand the purchaser and what they are seeking rather than you having the desire to be understood. Get to the root of their fears or concerns and then try to allay them and you will then find that it is easier to close the sale rather than continuing to battle upstream simply because you are not listening.

By doing this, the potential buyer will begin to feel that you are actually taking into account what they are wanting or needing rather than simply hitting them with your sales pitch as if you are a robot. It is no surprise that this will then result in you being able to generate more sales and close more deals simply because you have put on your listening ears. However, by showing that you appear to care about them, they will in turn begin to listen to what you are saying and they will start to actually understand your point of view and absorb the information you are giving them.

1.6 The Need to be Understood

This concept of understanding is actually at the absolute root of the psychology of selling.It is a basic human trait that everybody wants to be understood and for people to take into account their emotions at any given time.Indeed, we will mention this point regarding emotions on numerous occasions throughout the course due to the important role that it plays and the need for you, as the salesperson, to be able to master the understanding of what it is that they are feeling.

In actual fact, if you can master the art of understanding, then it will give you a psychological boost yourself and give you a competitive edge over those companies or salespeople struggling to come to terms with this one aspect.

In order to do this effectively, and this also ties in with the psychological approach to sales, you need to make sure that the buyer feels you are not only listening, but that you are also trying to understand them and are not afraid to ask any questions. Do not worry about feeling that you are irritating a buyer by asking them things because it has been shown that seeking clarity is a positive feature and can make it easier for you to actually complete that sale. A buyer that is serious about spending money on your product or service will not see it as an irritation, but rather you are doing your job in trying to understand where they are coming from and that should never be regarded as a negative thing.

1.7 The Psychology of the Fear of Loss

Beyond the psychology of selling there is also the psychology of the fear of loss.

The basic concept of this approach is that people are going to respond better when they believe that they are able to counteract their fear of losing something. There will be a sense of desperation at times as there is the chance they can develop some level of anxiety and an unconscious thought that they must buy something for fear of what may go wrong if they do not follow through.

This fear can be overwhelming at times and a good salesperson will work on those fears in order to not so much build them up until they are completely overwhelming, but rather to show the potential purchaser you have the solution and the exact thing they need to stop them from having that fear. This is certainly not to be seen as something that you can take advantage of in a negative way and it is also not to be regarded as something that can be exploited in a cruel fashion. However, it is merely a case of a good salesperson understanding what is driving the thought process of the potential buyer, and to then make sure that they tap into that thought process to really confirm whatever it is the person is thinking. The fear of loss can be extremely powerful and it is important for you to remember that if you are not prepared to take advantage of it, then somebody else will and why should they gain from it when you have that opportunity yourself?

As the salesperson, it is going to be to your advantage to think carefully about what the individual could stand to lose if they do not purchase your product or service.

1.8 Psychological Tips to Boost Sales

In order to further explain the entire concept of the psychology of sales, we should look at a number of tips that any salesperson is going to be able to include in their approach and, as a result, hopefully then boost their sales figures.

1. People love facts

When you have identified the potential feeling of loss attached to your product or service, then people will respond better when you use facts to back up certain theories. It has been shown that we use facts to justify various purchases as it seems to sound more logical to us in our minds.

2. People are generally egocentric

You must remember that most people will focus on their own self or their ego and this is one thing that you need to take advantage of with your sales pitch. What we mean by this is that everybody can only view the world from how they perceive it and experience it, so each person is unique. You must seek to ask general questions that will get into their feelings of what is going to be in it for them if they go ahead and buy from you.

3. They need to feel they are getting value

People are also going to be motivated by the belief that they are getting value for money as this is undoubtedly something that we are drawn towards. However, the value does not have to relate to the actual cost, but instead it is directly relative to whatever it is that you are selling at the time. It is then also tied in with how much the individual wants your product or service, so it must not only appeal, but also come across as something that will enrich their life and is well worth the money that they will spend.

4. We think like people

By this, we mean that people work primarily on social interactions rather than acting like a computer. This is important for salespeople to understand as it does mean that you need to be more personal in your approach rather than being too distant, As a result, you will then find that people can connect better with whatever you are saying and this will only increase the chances of you successfully completing the sale.

5. Avoid the psychology of forcing people

If you thought that the hard sell method was going to be useful, then think again. Instead, people are unlikely to react the way you want them to if you are attempting to force them into doing whatever it is that you want. This will only serve to get their back up and they will then construct a psychological wall that is going to prove to be impossible to penetrate. Avoid forcing them and instead act more naturally and that will help you to break through and complete the sale.

6. The psychology of people being suspicious

People are naturally suspicious to a certain extent and the last thing you want to do is to further increase those feelings because how on earth are you going to be able to break that particular barrier or change that emotion? Suspicion is one of the hardest things to change because it feeds in with this fear of loss. People generally do not enjoy taking risks and the problem with this is that it is up to you to show them they are not putting themselves at risk, and that is not all that easy. The best way to overcome these issues is to seek to convince them via statistics and evidence that back up your various claims because that will then fit in with them trying to apply a sense of logical thinking to your product or service to justify their belief that they should go ahead and make that purchase.

7. People are psychologically conditioned to buy

It is a basic psychological need for us to seek out products or services that fit in with the two idea  that we mentioned earlier, either to reward us or to prevent a loss of any kind. That is why, when we are examining the psychology of sales, we have to stress that it is important to examine the need to buy and to remember that people are just needing to be swayed even slightly in order to complete the sale.

Accept there is a general sense that people are ready to buy and you will be surprised at just how easy it becomes to push them that little bit further by helping them in some way rather than simply selling to them.

8. People love exclusiveness and convenience

When it comes to spending money there can be two reasons as to why people use certain companies or buy from certain people. These reasons are that it is either convenient to them or they are unable to get the product from anywhere else hence it being seen as exclusive. As a salesperson, you need to be prepared to stress why what you offer is convenient to them, as well as the way in which it is exclusive as that will be an extremely useful sales tool during your pitch.

9. People are naturally dissatisfied

It is a human trait that we are never completely content with every single thing in our lives. We are always seeking something different and better than what we currently have and one area where that is more prominent than others is with products and services. We are always of the opinion that something can be improved upon and within the psychology of selling, there is a real need for the salesperson to feed into that desire to make sure they are going to believe that what you have to offer them is better than what is currently in their possession.

10. People follow others

Have you heard of the concept that humans can, at times, be like sheep and follow the crowd? Well, this is not just somebody being rather stupid and trying to state that we are incapable of thinking for ourselves, but rather it is indeed known that there is a tendency for people to follow the crowd at different times. How this translates into sales is that people will see a particular product or service has some kind of appeal to it, so they are then led to believe that they also need to purchase it or they will be left out. Once again this feeds in with the fear of loss concept, so as a salesperson, or company, there is undoubtedly a need for you to create that particular idea around your own products.

As you can see, there are various concepts attached to the psychology of selling, but the main issues are always going to lead to you coming back to the entire idea of either giving a reward or helping them to avoid a loss. You can of course, then expand on different aspects, but your marketing must really focus on those areas if you are serious about changing the way that people feel about you and your company.

Remember, psychology is not about psyching people out or trying to get inside their minds, but it is more to do with showing that you can satisfy whatever the need may be and they then feel comfortable with the idea of spending money with you.

1.9 Understanding how you Influence the Final Outcome

Finally, we should look at how all of this can influence the final outcome and how it can have an impact on whether or not you do indeed manage to complete the sale.

Everything you do in sales is going to have some kind of a say on the final outcome. People will begin to formulate theories or ideas about you according to how you say things, what you say, the way you dress, the way you stand, your movements, but primarily the way in which you take on board what they are saying.

What we mean by all of this is that a good salesperson does not think about their sales pitch and seek to just hit people with this ream of information they have managed to learn off by heart. That kind of sales pitch may work with some, but we are talking about the minority, whereas throughout this course you will learn how you can influence the majority of people and convince them to do the right thing, which is to buy from you.

You must remember that you are your own best asset because without you and your knowledge, or ability to sell to people, there is no point in there being a product in the first place.

There are very few products or services that are absolutely unique as there are often a number of other products that do almost the exact same thing with just a few minor adjustments. This means that people can easily go elsewhere if they are willing to just change their needs even slightly or their fear of loss alters due to what is available within their price range. In other words, you are not as unique as you think, and there is a need to work hard at understanding the motivation of both yourself and the buyer and to use different psychological tools to help push along the outcome you are hoping to get.