Question-based Selling Focuses on the Customer

Suzanna De Baca -- Expert Business Source, 8/7/2008 8:28:00 AM

Often when you walk into a retail store, the salesperson runs over and asks, “Can I help you?” If you’re like me, you immediately go on the defensive and say, “No, thank you, I’m just looking,” which translated into thought form means “Please leave me alone and don’t try to pressure me into buying something.”

But frequently you really do need something and you also need help finding it or figuring out which is the best product.  I’ve wandered around countless superstores in a daze looking for an item before I finally nabbed a salesperson. My fear of being bullied into a sale outweighs the need to ask for assistance until I’ve narrowed down my selection or unless I’m clueless (such as when I’m shopping for technology items, when I’m more likely to ask the 18 year old shelf stocker, “What would you recommend?”)

Question-based selling is relevant for many professions.

The dynamics of this sales process came into focus for me again yesterday when I attended a free webinar on Question-based Selling for Financial Advisors.  Always interested in new ways to meet my clients’ needs better, I wondered if I’d pick up some interesting tips.  In fact, the common sense reminders that were offered for investment and financial professionals are equally relevant to most professions.

The guest speaker was a respected author and coach in the field of financial and investments, but he used many retail sales analogies.  For instance, he pointed out that if you enter a store and the salesperson asks an open-ended question (not a yes or no question, but a how, what, when question) such as “Hi, what are you looking for today?  Pants?  Tshirts?”  you might be much more open to answering the question. 

Eliminate resistance by letting clients answer the questions.

In the investment and financial world, people are terrified of being sold a product or service they don’t need.  I’m sure this happens in many, many industries, but where money is concerned (and in an industry which has had its share of disreputable salespeople), the tendency for many people is to automatically doubt recommendations.  For example, I often recommend that people go through the process of analyzing their budget or investments and creating a thorough financial plan;  even if this is in their best interests, there are people – even those who have sought out my help—who ask why this is necessary and how it will help them make more money.

In the webinar examples, we reviewed the concept of Spin Selling (based on a best-selling book Neil Rackham a few decades ago), where you can reframe questions.  I’d read the book back in the 90s but the refresher course was helpful.  For example, if a client needs to have a financial plan, one might ask, “What are your concerns about not having any financial plan in place?”  Chances are the person might say, “I’m concerned I’ll die homeless down by the river,” or some such answer.  You can then very easily ask the follow up question, “How might it benefit you to have a financial plan in place?” and of course, they’ll respond, “My entire life would be on track if I had such a plan. Please help me create one.”

Similarly, in a situation where it is clear that a person is underinsured, suggesting additional life insurance is generally met with protests.  Question-based selling is one very practical way to help people discover for themselves what they truly want and need so that they end up asking for assistance, rather than resisting it because you’ve suggested it.  The point is to use active, open-ended questioning to uncover the potential clients true needs and then provide them with what they want.  “What would happen to your family if you died and had no insurance?”  “What might the consequences be financially if you were disabled and have no disability insurance?”  Let them answer the question. Easy as pie.  Well, not that easy, but with some practice it can become quite natural.

Help your clients help you.

In selling jewelry, real estate, home remodeling, clothing, or most fields, concentrating on the client’s needs and steering them in that direction can be rewarding for both of you.  You may know better than they do what they need, but you can probe enough to help them identify the concerns, fears, desires, or issues that lead them to the right purchase. 

Listening to our clients and prospects is a skill most of us could use or improve.  Question-based selling is one practical and productive way to uncover client needs and allows us to deliver the best possible solution. That is sales at its best.

Suzanna de Baca is president of Private Capital Solutions Group. Securities offered through Broker Dealer Financial Services Corp. Member FINRA & SIPC. Investment Advisor Representative of Investment Advisors Corp., A Registered Investment Advisor. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with individual professional advice.