Quick Read Guide to Selling in Switzerland

Switzerland
Part of the Smith School of Business
SME International Guides Series

Smith SME Guides 2018: Switzerland 00
What have you stumbled upon?
Jim Hamilton
Adjunct Lecturer & Distinguished Faculty Fellow of Sales Management
If you have any questions related to the students, the MIB program or the Smith
School of Business, please reach out to Jim at jim.hamilton@queensu.ca
Being a small business is incredibly difficult, especially if you want to
expand internationally. There are endless resources telling you how to
get that first sales dollar. But with so much to look at, where do you
start?
Over the last few months, the Smith MIB class of 2018 has assessed
international markets and the resources available to small businesses
looking to expand. From that work, we created a single place to begin
the journey in select countries.
We are always interested in creating more guides for new locations. If
there is a particular market your company wishes to enter, please
reach out to us.
Vanesa Cotlar
Manager of Content, Design and Execution of the Smith SME Guides
If you have any questions related to exploring international opportunities in this
country or any other, please reach out to Vanesa at vcotlar@gmail.com
Veerle Houben
Content lead for the Smith SME Guide for Switzerland
Veerle decided to go on an extracurricular exchange semester at Queen’s University
upon completing her Masters in International Business at Maastricht University. She
is passionate about international business and travelling the world, and in addition,
has a keen interest in marketing, advertising and strategy consulting.
Meet the team:

What’s included?
Pg. 2: Understanding the Country
– About Switzerland
– What the locals are talking about
– Customs, norms and festivals
– How people get around
– Key safety precautions
– Cultural characteristics
Pg. 11: Explaining the Sales Process
– Prospecting and outreach
– Understanding the needs of buying team
– Handling objections and gaining commitment
– Creating and maintaining successful customer relationships
– Common techniques and tools to enable selling
Pg. 7: Exploring the Business Environment
– Primary sectors to consider
– Where Switzerland is looking to expand
– Benefits and challenges of doing business in Switzerland
– Establishing a business in Switzerland
01Smith SME Guides 2018: Switzerland
Pg. 16: Expert Interviews
Pg. 19: Sources & Contributors

02
Understanding
the Country
Smith SME Guides 2018: Switzerland

03
What the locals are talking about
Social Political Economic
The Swiss economy is one
of the world’s most stable.
It ranked first in the Global
Innovation Index of 2015
and the Global
Competiveness report of
2017(2). One of the main
reasons is the highly
advanced services sector.
Switzerland also has the
lowest value-added tax
rate in Europe.
For centuries, Switzerland
has remained a neutral
state, meaning that it does
not involve itself in armed
conflict, unless it is to
respond to an attack.
Forces are solely focused on
internal security and self-
defense. Switzerland is not
a member of the European
Union (EU), however, it
belongs to the European
Free Trade Association, and
is one of the EU’s main
trading partners.
Switzerland is very diverse.
With German, French and
Italian being the dominant
backgrounds. Citizens tend
to be driven and direct,
with most speaking 3-4
languages fluently(1). The
Swiss love the outdoors,
and take advantage of the
summer and winter sports
available due to the Swiss
mountainous region.
Innovation
Switzerland is top in the
world when it comes to
innovation. The country
has stayed in a leading
position for almost six
years because of its high
number of patent
applications per capita, its
use of new technologies,
university programs that
encourage out-of-the-box
thinking, and strong
development of new
talent.
Understanding the Country
About Switzerland
Switzerland is a small, entrepreneur-friendly country in the
heart of Europe. In addition to low taxes, Switzerland hosts
many events where entrepreneurs can showcase and share
their ideas, which makes Switzerland an ideal place to establish
a business.

04
Customs, norms and festivals
Language Gender Religion
In 1995, the Government
introduced the Federal Act
on Gender Equality, which
allows for legal action
against gender-based
discrimination. Nevertheless,
progress towards gender
parity has slowed in recent
years. Switzerland moved
from 10th to 21st position in
the World Economic
Forum's Global Gender Gap
Report, especially in
professional fields and in
politics.
The predominant religion is
Christianity, with 38.2% of
the population identifying as
Roman Catholic and 26.9%
as Protestant. The proportion
of people with no religious
affiliation has risen to 21.4%
compared to 1.7% in 1970.
The Muslim community
accounts for 4.9% of the
Swiss population, and the
Jewish community for only
0.3 %(2).
Festivals
Feb
April
December
The Carnival of Basel: (German: Basler Fasnacht) is the
largest carnival in Switzerland, taking place yearly between
February and March in Basel.
August
National Holiday: Public holiday that commemorates the Federal
Charter, completed at the beginning of August 1291.
Christmas Eve: The evening before Christmas, when
the traditional way of giving presents and dinner with
the family takes place.
Even though Switzerland is
small, four languages are
spoken — German, French,
Italian, and Romansch.
Everything from the list of
ingredients on groceries to
the manual for the most
complex computer must be
printed in German, French,
and Italian. In addition to
most Swiss people speaking
multiple national languages,
the number of people who
speak fluent English
continues to rise.
The Sechseläuten: Is a traditional spring holiday in of Zürich and is celebrated on the third
Monday of April(3).

05
Key safety precautions
How people get around
Train: Switzerland offers a world leading railway network, called GA, that covers the entire country. It’s well
known for its high level of reliability and quality. For commuters and people who travel a lot within Switzerland,
it’s worth considering a GA travel card.
Tram: When living in a Swiss city, commuting by tram is very effective. This service is included in a GA travel card
and is one of the fastest ways to get around.
Car: Switzerland has a very extensive road network. Many people find it easier to commute by car to minimize
dependency on timetables. However, parking can be very expensive and hard to find, depending on location.
Walking / Bicycle: Most cities are well suited to pedestrians and cyclists, and more investments are planned for
the coming years to promote this type of transport.
Make sure to get the
right insurance
Medical and rescue costs can
be very expensive, particularly
in remote areas. Be sure to
clarify exactly what any health
insurance policy includes and
what additional insurance may
be needed.
Keep belongings
close
Despite the relatively high
security level, crime does
happen in Switzerland. Thefts
can occur in big cities and
especially in train stations. Be
mindful of your belongings, as
you would be anywhere else.
Be prepared for weather
conditions
Extreme weather conditions,
particularly in mountainous
regions, create dangerous
situations. Make sure to be well
equipped, check forecasts, talk
to experts, follow marked paths
and know who to call in case of
emergency.

06
Power Distance
Switzerland’s culture is diverse and has different
characteristics within the country. French-speaking
Switzerland scores higher in power distance than
German-speaking Switzerland, so it is important
to tailor interactions based on the audience (for
example, when using titles and salutations).
However, compared to other countries,
Switzerland has an informal attitude towards
managers. Scoring low on power distance also
means that Swiss buyers will consider themselves
as equal to sellers, rather than seeing themselves
as superior.
Individualistic
Swiss culture is relatively individualistic. The
relationship between managers and employees is
based on mutual advantage and managed
through contracts. Being individualistic also
suggests that people do not trust others easily.
Therefore, when doing sales in Switzerland, it is
important to be open and transparent to gain
trust. This means that a sales team must provide
factual information about what they have
contributed to other organizations to help build
credibility with a prospect.
Masculinity
The masculinity level in Switzerland is very high, which indicates that success and performance are
perceived as important, both on a personal and professional basis(4). The high level of masculinity may
result in fiercer competition between companies.
Cultural characteristics
Hofstede Six Dimension Model
There are six dimensions that make up the Hofstede model of national culture. These cultural dimensions
focus on distinguishing countries, rather than individuals, from each other. The dimensions are based on
preferences for one state of affairs over another that are prevalent in a nation.
Hofstede Dimensions for Switzerland

07
Exploring the
Business
Environment

08
Exploring the Business
Environment
Primary sectors to consider
Commodities
trading
Banks
Where Switzerland is looking to expand
Biotech & pharma
Mobile based-tech
and apps
Electrical engineering
& metals
E-commerce Cybersecurity
SaaS
Located in the heart of
Europe, Switzerland has
always relied heavily on
commodities trading.
Switzerland is know to be a
global market leader in
oilseed, cereals and cotton
trading. This sector is
responsible for 3.6% of
Switzerland’s GDP and the
employment of about 10,000
individuals in the country(5).
The machine, electrical engineering
and metals industry is one of the
country’s leading exporters and
largest industrial employer in
Switzerland. 99% of the companies
in the sector are small to medium
enterprises with less than 250
employees(5). Today, Swiss MEM
enterprises are competitive globally,
in particular, producers of machine
tools and manufacturers of machines
for the textile and printing industries.
In terms of machinery exports,
Switzerland is among the 10 largest
in the world.
Banks are a key pillar of the
Swiss economy. In 2016, the
banking sector generated
approximately $35.29 billion
USD, or about 5.4% of the
country’s GDP. When the
value of the insurance sector
is included, the financial
sector contributes about
10.1% to Switzerland’s
GDP(2).
Transport
equipment
Machine, electrical
engineering and metals (MEM)
Banking

09
Environment
Benefits of doing business in Switzerland
Switzerland offers a stable economic environment and a high quality of life. As well, it offers specific
benefits to companies looking to do business in the country:
• Low corporate taxes: Relative to other countries in Europe, Switzerland has very low tax rates.
• Flexible labour market: There are minimal government regulations to follow. Flexible labour markets
indicate that conditions and wages are determined by market forces and not governments or trade
unions, motivating business development and competitiveness.
Challenges of doing business in Switzerland
High Labor Cost
While salaries for executives in Switzerland are similar to other parts of the world, compensation for
middle management has risen significantly more than labor productivity when compared to other
countries.
Trust
A key part of doing business in Switzerland is trust. To be successful, companies must win the trust of
their future clients, partners, and suppliers. In Switzerland, people prefer interacting with individuals
they are familiar with. It is common to expect long-term commitments from partners and associates.

10
Environment
Establishing a Business in Switzerland
Before getting started
Prior to setting up a business in Switzerland, it is essential to conduct research to assess whether an idea is
feasible in the Swiss market(6). This involves gathering, analyzing, and evaluating information to formulate
business goals. As well, identifying key competitors, their success in the market and whether there is space for
an additional player to enter
An individual who wants to start a company in Switzerland needs to either become a Swiss resident, or have a
partner who is a Swiss resident.
What business structure to choose?
In Switzerland, there are seven primary types of business structures to select from.
1) Single-owner company or sole proprietorship: This structure is best for individual owners of a business or
other professionals, such as freelancers or solo entrepreneurs, who work for themselves.
2) General partnership: This structure has similarity to a sole proprietorship, however, involves more than one
person. This category is suited for when two or more individuals operate a company together.
3) Limited partnership: This is similar to a general partnership, however, less common. General partners have
unlimited liability, while limited partners may be liable up to a pre-determined, and agreed-upon sum.
4) Corporation/Joint-stock company: This is the most common approach selected by businesses, where the
corporation is considered an independent legal entity.
5) Limited liability company: This type of company requires a minimum shareholder equity, which must be fully
paid for. At least one managing director who is authorized to sign on behalf of the company must reside in
Switzerland.
6) Subsidiary: This type of company is legally independent and operates similar to a Swiss company, as opposed
to a branch, although it is affiliated with a foreign entity. It generally takes the form of a corporation or a
limited liability company.
7) Branch: In this structure, the branch is taxed in Switzerland as a Swiss company, although liability is on the
foreign parent company. At least one Swiss resident with legal authority is required.

11
Explaining the
Sales Process

12
Prospecting and outreach
To meet potential clients in Switzerland, it is useful to attend conventions
and conferences to showcase company products. The next primary source
of new clients is recommendations from past customers. Therefore, it is
essential to maintain long term-relationships with customers as they will be
one of the largest forces behind new business.
Explaining the Sales Process
Small Talk
Small talk is generally considered useful to learn about customers and find topics that will help build a
relationship. In a first meeting with a prospective client, it is best to start with questions about the prospect’s
business. Alternatively, the conversation could start with the sale representative providing background
information about the company before showing the products being offered. When doing business in
Switzerland, it is important to adapt your pitch to address the specific needs of the customer, tailored to their
specific industry.
Cold CallNetwork

13
Understanding the needs of the
buying team
Switzerland is known to be a very direct country. When asking questions, be sure to ask exactly what you
mean. It is important to be clear about expectations, ask about concerns, and distinguish between small
problems, deal breakers, and things that would be “nice to have.”
Price is rarely a deterring factor in negotiations. Most potential customers in Switzerland care more about
quality and performance than price, so it is recommended to mention price when the customer asks
about it, usually near the end of the conversation.
Handling objections and gaining
commitment
Show how the company has been successful before: To gain trust and commitment, show a company
how a product or service has helped others in the past.
Crowd-source common objectives: The sales team should create responses to common objections. This
helps everyone on the team handle objections in a structured way.
Gain credibility first: Difficulty closing is almost always a symptom of not managing the sale process
properly. Closing must be earned. Objections are usually evidence the seller has pushed to close before
establishing trust and demonstrating value. This can be avoided by learning enough about the customer’s
timing, priorities, and processes.
Avoid ConfrontationConfrontation
Direct
Communication
Indirect
Communication

• In Switzerland it is crucial to offer excellent after sales services which help in ensuring a successful, long-
term relationship and generating advocators.
• Communicate via email or phone because it’s commonly used in Switzerland. Furthermore,
communicating via email provides a certain security for the seller in the event of discrepancies between
the parties. It is important to be in regular contact with the customer and even recommend special
events to a certain extent.
• In Switzerland it is crucial to offer excellent after sales services which help in ensuring a successful, long-
term relationship and generating advocators.
• Communicate via email or phone because it’s commonly used in Switzerland. Furthermore,
communicating via email provides a certain security for the seller in the event of discrepancies between
the parties. It is important to be in regular contact with the customer and even recommend special
events to a certain extent.
• Honesty and integrity are important to not lose customers over time.
Yet, a healthy average in contacting the customer must be found, to not be perceived as obtrusive.
• Honesty and integrity are important to not lose customers over time.
Yet, a healthy average in contacting the customer must be found, to not be perceived as obtrusive.
14
Creating and maintaining successful
customer relationships
Long-term customer relationships are very important in Switzerland. Loyal customers are at the core of
business success and can be created and maintained in the following ways:
Business
Relationship
Personal
Relationship
Go beyond product talk
The most outstanding
customer experiences are
achieved when a member of
the sales team creates an
emotional connection with a
customer. Customers become
loyal because they are
emotionally attached and they
remember the way they feel
when they use a service or
product.
Sales representatives should
engage with customers by
talking about day-to-day life,
not just about the product.
Create a loyalty program
Rewarding customers for their
loyalty is another strategy that
can help build successful
relationships.
Loyalty programs can take the
form of earning points that
customers can redeem for
goods or services. It is always
easier to offer your product or
service as part of a rewards
program instead of partnership
rewards because you can easily
manage the offerings.
Share relevant info
Small gestures can go a long
way in showing customers
they are valuable to a
company.
One technique is to send the
customer relevant articles
related to their industry and
looking for any mention of
the customer's company in
the news. The latter presents
an opportunity to reconnect
and discuss new services that
might be useful.

Exhibitions and fairs
In Switzerland, exhibitions
and fairs create many
business opportunities.
Trade shows are generally
targeted at specific
industries. This enables
sellers to interact with
individuals that are
interested or are a part of
that industry.
Creating brand awareness
and reaching a desired
target market can both be
achieved by exhibiting at a
trade show.
RelationshipFacts
Common techniques and tools to
enable selling
Blogs and online selling
Getting featured on a blog is a
valuable way to promote
products and generate brand
awareness.
The popularity of e-commerce
is also increasing in
Switzerland. About half of the
Swiss population makes at least
one online purchase a month.
Selling products online is
another way to reach Swiss
customers.
Social selling
Social media can also be
leveraged to reach potential
customers, especially for
B2B companies.
To build a strong and
trustworthy brand, LinkedIn
can be used to post articles,
solicit and answer customer
questions, and engage with
others that are part of the
same industry.
15Smith SME Guides 2018: Switzerland

Expert
Interviews

Interview #1
Robin Wendling, Regional Sales Manager Western
Europe, Bell Helicopter
“Our goal as a company is to strive for excellence, not
perfection. We provide agile machinery and innovative
products to create exceptional value.”
Prospecting & Outreach
• Conferences and demonstrations (air shows) are great venues to establish business
relationships
• Research and knowledge of customer preferences is key to meeting customer
expectations
• Transparency, professionalism, facts and performance are fundamental ways to win
clients’ business trust.
Discovery Sessions (with Members of Buying Team)
• Face-to-face meetings can stimulate innovative strategies
• Following and adapting to industry trends stimulates innovational strategies
• Effective communication and listening are imperative to understand, address and satisfy
customers’ preferences
Handling Objections, Negotiations and Gaining Commitment
• Respecting and understanding client timelines and business goals is essential
• Patience is highly crucial when fostering a business deal
Customer Account Management and Customer Success Management
• Regular and continuous communication is important in maintaining customer
relationships
Sales Tech Required
• Product demonstrations and industry events are good ways to reach the desired target
markets

Interview #2
Prospecting & Outreach
• Gathering information and creating a list of potential clients allows a company to have a
focused target audience
• Being highly skilled and passionate about your expertise leads to business success
• Conferences, exhibitions and business events are valuable ways to connect with
prospective clients
Discovery Sessions (with Members of Buying Team)
• Clear and direct communication is an effective way to build trust in a brand
• Needs-based discovery conversations are one of the strategic ways to understand and
cater to what a customer is looking for
Handling Objections, Negotiations and Gaining Commitment
• Time is of the essence so having a pool of prospective clients is a must; this ensures that
there isn’t as much time spent searching for the next opportunity
• Striving for and offering superior performance can help convince clients to gain business
commitment
Customer Account Management and Customer Success Management
• Integrity is fundamental to business success
• Exhibitions, magazines, and social media such as LinkedIn are great platforms to
demonstrate superior performance and quality of products
Sales Tech Required
• Social media platforms such as LinkedIn are powerful tools to reach prospective clients
Ivan Schmidhalter, Regional Sales Manager,
Marenco Swisshelicopter
“The mindset for superior performance and quality is
valuable and essential in any business environment. This
enables a company to explore new markets and easily
adapt to other geographical regions.”

Sources & Contributors
Hofstede Insights
House Of Switzerland
InterNations
KPMG
Expatica
Schweizerische Eidgenossenschaft
Swissinfo
TRAMsoft GmbH
Edited by Kaarina Stiff

http://www.about.ch/statistics/index.html
Detailed Sources &
Contributors
(1) TRAMsoft GmbH. (2016, April 24). Statistical information about Switzerland. Retrieved
from http://www.about.ch/statistics/index.html
(2) Schweizerische Eidgenossenschaft. (2018, January 25). Discover Switzerland. Retrieved
from https://www.eda.admin.ch/aboutswitzerland/en/home.html
(3) House Of Switzerland. (2016, April 11). 10 typically Swiss celebrations.
Retrieved from https://houseofswitzerland.org/swissstories/society/10-typically- swiss-
celebrations
(4) Hofstede Insights. (2018). The 6 dimensions of national culture. Retrieved from
https://www.hofstede-insights.com/models/national-culture/
(5) swissinfo.ch. (2016, July 14). Starting a business. Retrieved from
https://www.swissinfo.ch/eng/society/starting-a-business/42297724
(6) Meyer, B. (2018, May 20). Starting a business or self-employment in Switzerland.
Retrieved from Expatica: https://www.expatica.com/ch/employment/Starting-a-
business-in-Switzerland_101586.html
(7) KPMG. (2016, October). Clarity on Business Location Switzerland. Retrieved from
https://home.kpmg.com/ch/en/home/insights/2016/11/clarity-on-business-location-
switzerland.html
(8) InterNations. Safe and Sound: Expats in Switzerland. Retrieved from
https://www.internations.org/switzerland-expats/guide/29460-safety-security/safe-
and-sound-expats-in-switzerland-19016
20

Quick Read Guide to Selling in Switzerland

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Quick Read Guide to Selling in Switzerland

Similaire à Quick Read Guide to Selling in Switzerland (20)

Dernier

Dernier (20)

Quick Read Guide to Selling in Switzerland