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The term Consultative selling was first coined by New York Times best selling author, Linda Richardson.[citation needed][1] Consultative Selling emphasizes customer needs and meeting those needs with solutions combining products and/or services. A consultative salesperson typically provides detailed instruction or advice on which solution best meets these needs. During the prospecting phase of selling, where a customer's needs and wants are examined, the salesperson pays close attention to economical and high-quality solutions for the customer, ideally making sure the prospect receives more value from the product or service they have purchased than they have paid to ensure a positive return on investment (ROI).
Today Consultative Selling is almost a household word.[citation needed] It is an approach to selling in which customer needs are used as the basis for the sales dialogue. When the word Consultative was applied to sales in the 1970s, it was revolutionary.[citation needed] It marked a major transition from the salesperson as the purveyor of information and the customer as the recipient to a much more collaborative interaction — one in which the customer’s needs, not the product — was the focal point of the sale. By the early 80’s, the term Consultative Selling began to be misunderstood as a long, arduous sales process that focused on needs at the expense of closing business.[citation needed] In fact, effective Consultative Selling, because needs are clear and recommendations, therefore, are more likely to be on target, actually accelerates the sales cycle.
The transition from product-focused selling to need-focused selling was the direct result of market changes.[citation needed] Increased competition and customers’ greater access to information and sophistication began the shift of power in a sales call from salesperson to buyer.[citation needed]
There are three primary differentiators that mark a so-called Consultative Salesperson:[citation needed]
Consultative Selling is all about the dialogue between the salesperson and the customer. The word dialogue comes from the Greek and means “to learn.”[citation needed] In Consultative Selling, the salesperson learns about customer needs before talking product. Product knowledge is transformed into a tailored solution when the solution is delivered and positioned based on the customer’s needs and language. Needs are identified through a combination of preparation and effective probing.