Consultative sales
Updated at: 24 January 2025
Consultative or advisory selling is an approach to sales based on a trusting relationship between the customer and the salesperson. The main task of a salesperson in consultative selling is to identify the customer's needs and propose a solution to the problem.
Consultative sales include, for example, sales of cloud infrastructure, ERP systems or other products that affect the company's business processes.
Unlike transactional sales, which focus on quick results and the sale of simple products, consultative sales focus on long-term deals and complex solutions.
The specifics of the sale can be related to the level of market development. At later stages, any product comes to commoditization - it is a natural process of turning a product into a mass commodity.
At the early stage of market development, consultative selling is more common, while at the later stage, transactional selling is more common. This is due to the fact that with commoditization the buyer becomes more pragmatic: the low cost of the solution comes to the fore, and the relationship with the seller loses importance in the transaction process.
| Transactional | Advisory |
|---|---|
| Short transaction cycle: A few hours to a few months | Long transaction cycle: A few months to 2 years or more |
| Low value: Up to 1 million rubles | High value: From 1 million rubles and above |
| No need for expert knowledge: The client has a ready-made solution, knows what he wants, has a good understanding of the product | Seller's expertise is important: The client does not have a ready-made solution, he has many questions about the product and its use cases |
| Few participants in the transaction: 1-2 LPRS | Many participants in the transaction: Different experts on both the client's and the seller's side are involved |
| Many potential customers: SMB segment mainly. | Number of clients is limited: Corporate clients and large businesses |
| All selection criteria are strict: The customer has formed requirements to the product or solution | There are soft selection criteria: The customer does not have all requirements formed, the seller can influence the criteria |
| Strategy: Automate the sales process, reduce transaction costs, make the buying process more convenient | Strategy: Creating more value for the product through expert knowledge |
What you need for consultative selling
- Knowledge and use of sales techniques, for example:
¨NBSP;
- SPIN selling. This is a technique that involves asking questions using the SPIN technique to identify customer needs and problems.
- By using questions, salespeople can gather information to tailor their sales pitch and demonstrate the value of their product or service.
- Solution Selling. Solution Selling is a sales methodology that focuses on solving the customer's problem rather than selling a product or service quickly. Solution Selling can be defined as a customer-centric approach to sales where the salesperson acts as a consultant.
- He helps the customer identify his problems, understand the need for change, and then provides a personalized solution that helps solve the customer's problems effectively.
- Challenger Selling. Champion Selling is a technique that is all about challenging the customer's assumptions and beliefs to help them make a more informed buying decision. Can be used for innovative products or services that are unfamiliar or misunderstood by the customer.
- Knowledge base for salespeople:
- description of the company's target audience and specific industries;
- examples of SPIN questions for elaboration of needs;
- cases with other customers
- ;
- formulated benefits of the solution (Selling Points);
- examples of objections and how to deal with them.
- CRM-system
Specialized CRM-system for consultative sales will allow to apply modern methodologies and approaches in practice.
Consultative selling puts the customer at the center of the process, which makes this approach more effective. When the customer feels that their interests and needs are truly important to the salesperson, trust in the company grows. This approach builds long-term relationships that turn an ordinary transaction into a partnership.
Long-term benefits to the company:
- Increased loyalty - customers who have received a personalized solution are more likely to return for repeat purchases and recommend the company to others.
- Increased average check - through a deep understanding of the customer's needs, the salesperson can offer additional solutions to the customer's challenges.
- Strengthened brand - a company that focuses on a consultative approach is perceived as a trustworthy and responsible partner with a good reputation in the marketplace.
¨NBSP;
Long-term benefits for the customer:
- Suitable solutions - customers get the products and services that best suit their needs.
- Support and advice - customers can count on expert support and assistance after purchase, reducing uncertainty in their choices.
Stages of consultative selling
- Research and Preparation
Before engaging with a potential client, the salesperson should conduct detailed research on the company, its industry and business processes. It is important to understand what challenges the client faces and what solutions they have already used. This can be done using open sources, reports, social media and internal company data.
- Establishing contact
The goal of this stage is to get the customer interested and position them for further communication. It is important to create a positive first impression, demonstrate competence and readiness for dialog.
- Identifying and developing the client's needs
Here the salesperson should use his/her skills of active listening and asking questions using the SPIN technique to gain a deeper understanding of the client's needs and pains. The questions should be open-ended and aimed at identifying explicit and implicit needs, as well as developing the need for a new solution.
There are four types of questions used in the SPIN technique: situational, problem, eliciting, and guiding. Each type has a different purpose, such as establishing rapport with the client or identifying hidden needs. In consultative selling, the most important ones are eliciting and guiding. Extractive questions help the client recognize the problem, while guiding questions help show the benefit of the solution to the client.
- Providing a solution
Based on the information gathered, the salesperson selects a customized solution that will best close the client's needs. This is not just a presentation of a product or service, but a demonstration of how a specific proposal can help the customer solve their problems.
- Closing the deal
This stage involves developing agreements and signing contracts. In consultative selling, the key point is not to pressure the client to make a decision, but to demonstrate the overall benefits and advantages of cooperation. Often at this stage objections may arise - the salesperson must be ready to work them out.
- Post-sale support
Consultative selling does not end at the closing of the deal - the company helps the customer in integrating and using the product or service. Post-sale support can include training, tech support, regular check-ins and counseling. This stage helps to build trust and loyalty of the customer, creating a basis for long-term cooperation and possible repeat sales.