Posted 12 Aug 2019, Editor's Desk
All the top brands are successful today because they have adopted the Problem Solving Product (PSP) Formula. This formula helps them to increase their sales automatically.
In PSP formula, you study the four main reasons for the decrease in sales revenue.
Reason #1: People Don’t Like to be Sold
It is one of the reasons for low sales.
Remember, people generally don’t believe on strangers. So, if you suddenly go to people and start selling your product forcefully, they will not buy it.
People don’t like to be sold, People like to be helped.
Don’t sale only Product to Customer ❌; Try to Help your Customer ✅.
You can help your customers by either solving their existing problems or helping them to achieve their goals.
Reason #2: You Didn’t Dig Enough about the Customers’ Need
You cannot help a person forcefully. You need to identify what the person actually wants. This is also one of the reasons for low sales.
Let us understand it with the help of the following example.
Teacher to his student- Why you came late in the class?
Student- Sir, we are helping an old woman to cross the road but she was not ready to cross the road. That’s why sir :-(
So, the moral is- ‘Don’t try to sell your product forcefully.’
Identify the customers’ needs and then find out how you can help him in satisfying his needs. This is called Consultative Selling.
Once you identify the customers’ needs and solve their problems in various aspects related to the product, then the customer will buy your product.
Reason #3: Identify Your Key Decision Maker (KDM)
When you are selling your product to a customer, you should determine whether the person has the ability to take the decision or not. Sometimes, you are talking to the wrong person. This is also one of the reasons for decrease in sales revenue.
There are five types of person, who can purchase your product-
1. Initiator || 2. Influencer || 3. Decider || 4. Buyer || 5. Consumer
Now, you need to determine whom you are targeting to, who is your key decision-maker and according to your business which should be your target.
1. If you are selling toys, then do not target the child. Target the decider (mother) or the buyer (father, mother or guardians) because they are the people who will purchase your product.
2. In B2B sales, the purchase manager is your buyer but he is neither the influencer nor the decider. The decider is the boss of the purchase manager.
So, try to find out your Key Decision Maker (KDM). This will help you to increase your sales in many folds.
Unclear about customer budget bracket is one of the reasons for low sales.
Based on the budget brackets, the customers are categorized as follows:
A. Customers having Money ✅ and Want to Purchase the Product ✅
These are your Perfect Customers. You can easily sell your product to them.
B. Customers having Money ✅ but Do not Want to Purchase the Product ❌
These are the customers’ needs that have not identified correctly. Try to know their needs.
C. Customers who do not have Money ❌ but Want to Purchase the Product ✅
These are the customers whom you should provide solutions so that they can buy the product.
D. Customers who neither have Money ❌ nor they Want to Purchase the Product ❌
Do not consider these customers to sell your product.
The abovementioned points are the reasons for decrease in sales revenue. A businessman or salesman needs to take care of these points to boost their sales.