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Nudge theory

AIDA- Nguồn http://www.businessballs.com/salestraining.htm#changingfaceofselling

AIDA is the original sales training acronym, from the late 1950s, when selling was first treated as a professional discipline, and sales training began. The model is said to have evolved from earlier work by American psychologists concerning assimilation and understanding of communications and information. Walter Dill Scott’s ‘Attention-Comprehension-Understanding’ model, developed by 1913 at the Chicago Northwestern University, is cited as one example of possible contributory thinking, although this is by no means a specific single origin; in fact it is unlikely that a specific single origin for AIDA actually exists.

AIDA is perhaps more relevant and useful today than when it was first devised, because modern theories and distractions can often cause people to lose appreciation for the most basic and obvious features and requirements of a successful sales engagement.

So, especially for those learning your trade in selling or advertising or communicating with prospective customers, if you remember just one sales or selling model, remember AIDA.

Often called the ‘Hierarchy of Effects’, AIDA describes the basic process by which people become motivated to act on external stimulus, including the way that successful selling happens and sales are made.

A – Attention

I – Interest

D – Desire

A – Action

The AIDA process also applies to any advertising or communication that aims to generate a response, and it provides a reliable template for the design of all sorts of marketing material.

Simply, when we buy something we buy according to the AIDA process. So when we sell something we must sell go through the AIDA stages. Something first gets our attention; if it’s relevant to us we are interested to learn or hear more about it. If the product or service then appears to closely match our needs and/or aspirations, and resources, particularly if it is special, unique, or rare, we begin to desire it. If we are prompted or stimulated to overcome our natural caution we may then become motivated or susceptible to taking action to buy.

Some AIDA pointers:

Attention

  • Getting the other person’s attention sets the tone: first impressions count , so smile – even on the phone because people can hear it in your voice – be happy (but not annoyingly so) be natural, honest and professional.
  • If you’re not in the mood to smile do some paperwork instead. If you rarely smile then get out of selling.
  • Getting attention is more difficult than it used to be, because people are less accessible, have less free time, and lots of competing distractions, so think about when it’s best to call.
  • Gimmicks, tricks and crafty techniques don’t work, because your prospective customers – like the rest of us – are irritated by hundreds of them every day.
  • If you are calling on the phone or meeting face-to-face you have about five seconds to attract attention, by which time the other person has formed their first impression of you.
  • Despite the time pressure, relax and enjoy it – expect mostly to be told ‘no thanks’ – but remember that every ‘no’ takes you closer to the next ‘okay’.

Interest

  • You now have maybe 5-15 seconds in which to create some interest.
  • Something begins to look interesting if it is relevant and potentially advantageous. This implies a lot:
  • The person you are approaching should have a potential need for your product or service or proposition (which implies that you or somebody else has established a target customer profile).
  • You must approach the other person at a suitable time (ie it’s convenient, and that aspects of seasonality and other factors affecting timing have been taken into account)
  • You must empathise with and understand the other person’s situation and issues, and be able to express yourself in their terms (ie talk their language).

Desire

  • The sales person needs to be able to identify and agree the prospect’s situation, needs, priorities and constraints on personal and organizational levels, through empathic questioning and interpretation.
  • You must build rapport and trust, and a preparedness in the prospect’s mind to do business with you personally (thus dispelling the prospect’s feelings of doubt or risk about your own integrity and ability).
  • You must understand your competitors’ capabilities and your prospect’s other options.
  • You must obviously understand your product (specification, options, features, advantages, and benefits), and particularly all relevance and implications for your prospect.
  • You must be able to present, explain and convey solutions with credibility and enthusiasm.
  • The key is being able to demonstrate how you, your own organization and your product will suitably, reliably and sustainably ‘match’ the prospect’s needs identified and agreed, within all constraints.
  • Creating desire is part skill and technique, and part behaviour and style. In modern selling and business, trust and relationship (the ‘you’ factor) are increasingly significant, as natural competitive development inexorably squeezes and reduces the opportunities for clear product advantage and uniqueness.

Action

  • Simply the conversion of potential into actuality, to achieve or move closer to whatever is the aim.
  • Natural inertia and caution often dictate that clear opportunities are not acted upon, particularly by purchasers of all sorts, so the sales person must suggest, or encourage agreement to move to complete the sale or move to the next stage.
  • The better the preceding three stages have been conducted, then the less emphasis is required for the action stage; in fact on a few rare occasions in the history of the universe, a sale is so well conducted that the prospect decides to take action without any encouragement at all.

AIDCA

More recently (c.1980s-1990s) the AIDA acronym has been used in extended form as AIDCA, meaning the same as AIDA with the insertion ofCommitment prior to the action stage. Arguably Commitment is implicit within the Action stage, but if it suits your sales training purposes then AIDCA is an acceptable interpretation. Commitment here means that a prospective customer is more likely to progress to the Action stage if their commitment to the proposition can first be established. As ever, adding detail make the thing less elegant and flexible, which in this case makes AIDCA non-applicable to selling methods that do not involve a two-way communication, for example, the structure of a sales letter or advert, for which AIDA remains more helpful. For two-way sales communications, discussions, presentations, etc., then AIDCA is fine.

  • Attention
  • Interest
  • Desire
  • Commitment
  • Action

Nudge theory is a flexible and modern concept for:

  • understanding of how people think, make decisions, and behave,
  • helping people improve their thinking and decisions,
  • managing change of all sorts, and
  • identifying and modifying existing unhelpful influences on people.

Lý thuyết Nudge theory là lý thuyết khá hiện đại về nghiên cứu hành vi người tiêu dùng. Nhưng nudge có một khái niệm mới là không chỉ dùng lại ở việc hiểu người tiêu dùng nghĩ gì, quyết định như thế nào và hành vi mua hàng.  Và xây dựng những thói quen rèn luyện khách hàng cách suy nghĩ và hành động hướng vào sản phẩm và dịch vụ mà công ty đang cung cấp.

Xác định các vấn đề có khả năng tồn tại hoặc biến mất ảnh hưởng đến quyết định mua hàng của sản phẩm.

 

the changing face of selling – sales methods continually change

This simple chart illustrates the fundamental shift in selling theory which occurred particularly during the 1980s, reflecting the development of an increasingly competive market-place and a better-informed buying and purchasing audience.

The advent of the internet and globalization during the 1990s meant that old styles of selling, based on one-way persuasion and control theories were finally obsolete for all mainstream business activities.

The development of selling ideas and methods is progressive. Selling inevitably reflects the changing world of business and communications.

Please note that where reference is made to the customer ‘organization’ this reflects a business-to-business scenario, however, the principles in all other respects apply for business-to-consumer, or for person-to-person sales scenarios.

 

values/expectations of the sales organization and the selling process

The columns compare traditional old-style selling versus modern selling ideas.

Tangible : hiển nhiên, entirely hoàn toàn, emphasised hoàn toàn

Bán hàng truyền thống Bán hàng hiện đại
Chủ yếu là sản phẩm customised, flexible, tailored product and service
Bán hàng chủ yếu dựa vào nhân viên bán hàng “strategic business manager”
Người bán hàng phải hiểu về sản phẩm Hiểu về thị trường
Dẫn đầu về thời gian là lợi thế cạnh tranh just-in-time (JIT) Lợi thế cạnh tranh: các chiến lược hỗ trợ kinh doanh và phát triển thị trường.
Giá trị dựa vào  giá bán Giá trị dựa vào CSR (trách nghiệm xã hội)
Lợi ích và  lợi thế cạnh tranh hoàn toàn  sản phẩm và dịch vụ hoàn toàn Cách thức tổ chức bán hàng
Lợi ích từ việc bán sản phẩm hoặc dịch vụ Dịch vụ, mối quan hệ, đào tạo nhân viên, quan hệ…
Giá bán tính để lợi nhuận, khách hàng không được tính là tài sản Giá bán theo giá thị trường, khách hàng là tài sản của công ty
Bán hàng truyền thống Bán hàng hiện đại
Người bán hàng chỉ cần hiểu điều khách hàng cần Hiểu về khách hàng của khác hàng
sales person sells (customers only deal with sales people, pre-sale) whole organization sells (customers expect to be able to deal with anybody in supplier organization, pre-sale)
Vai trò của nhân viên bán hàng bị giới hạn không linh hoạt trong các vấn đề thương lượng mua bán thường phải hỏi ý cấp trên Vai trò của nhân viên bán hàng rất cao(có kinh nghiệm), có thể thương lượng, linh hoạt và ra các quyết định nhanh chóng.
Tổ chức theo chiều dọc Tổ chức theo chiều ma trận
Khách hàng thích nói chuyện với những người có khả năng quyết định Giao tiếp mở
Khách hàng là người xác định chuẩn mực yêu cầu về sản phẩm Doanh nghiệp
Không giúp khách hàng bán hàng Hỗ trợ, tư vấn để khách hàng bán hàng tốt hơn.

 

traditional selling

modern selling

Typical 1960s-80s selling, and still found today. Essential to sustain successful business today.
standard product customised, flexible, tailored product and service
sales function performed by a ‘sales-person’ sales function performed by a ‘strategic business manager’
seller has product knowledge seller has strategic knowledge of customer’s market-place and knows all implications and opportunities resulting from product/service supply relating to customer’s market-place
delivery service and supporting information and training are typical added value aspects of supply strategic interpretation of the customer organisation’s market opportunities, and assistance with project evaluation and decision-making are added value aspects of supply
good lead-time is a competitive advantage just-in-time (JIT) is taken for granted, as are mutual planning and scheduling; competitive advantages are: capability to anticipate unpredictable requirements, and assistance with strategic planning and market development
value is represented and judged according to selling price value is assessed according to the cost to the customer, plus non-financial implications with respect to CSR (corporate social responsibility), environment, ethics, and corporate culture
the benefits and competitive strengths of the products or service are almost entirely tangible, and intangibles are rarely considered or emphasised the benefits and competitive strengths of the product or service now include many significant intangibles, and the onus is on the selling organization to quantify their value
benefits of supply extend to products and services only benefits of supply extend way beyond products and services, to relationship, continuity, and any assistance that the selling organization can provide to the customer to enable an improvement for their staff, customers, reputation and performance in all respects
selling price is cost plus profit margin, and customers have no access to cost and margin information selling price is market driven (essentially supply and demand), although certain customers may insist on access to cost and margin information
seller knows the business customers’ needs seller knows the needs of the business customers’ customers and partners and suppliers
sales person sells (customers only deal with sales people, pre-sale) whole organization sells (customers expect to be able to deal with anybody in supplier organization, pre-sale)
sales people only sell externally, ie, to customers sales people need to be able to sell internally to their own organization, in order to ensure customer needs are met
strategic emphasis is on new business growth (ie, acquiring new customers) strategic emphasis is on customer retention and increasing business to those customers (although new business is still sought)
buying and selling is a function, with people distinctly responsible for each discipline within selling and customer organizations buying and selling is a process, in which many people with differing jobs are involved in both selling and customer organizations
hierarchical multi-level management structures exist in selling and customer organizations management structures are flat, with few management layers
authority of sales person is minimal, flexibility to negotiate is minimal, approvals must be sought via management channels and levels for exceptions authority of sales person is high (subject to experience), negotiation flexibility exists, and exceptions are dealt with quickly and directly by involving the relevant people irrespective of grade
selling and buying organization are divided strictly according to function and department, inter-departmental communications must go up and down the management structures selling organization is structured in a matrix allowing for functional efficiency and also for inter-functional collaboration required for effective customer service, all supply chain processes, and communications
supplier and customer organization functions tend to talk to their ‘opposite numbers’ in the other organization open communications to, from and across all functions between supplier and customer organization
the customer specifies and identifies product and service requirements the selling organization must be capable of specifying and identifying product and service requirements on behalf of the customer
the customer’s buyer function researches and justifies the customer organization’s needs the selling organization must be capable of researching and justifying customer organization’s needs, on behalf of the customer
the customer’s buyer probably does not appreciate his/her organization’s wider strategic implications and opportunities in relation to the seller’s product or service, and there will be no discussion with the seller about this issues the seller will help the buyer to understand the wider strategic implications and opportunities in relation to the seller’s product or service
the buyer will tell the seller what the buying or supplier-selection process is the seller will help the buyer to understand and align the many and various criteria within their own (customer) organization, so that the customer organization can assess the strategic implications of the supplier’s products or services, and make an appropriate decision whether to buy or not

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