Gaining Commitment & ClosingPresentation Transcript
The Buying/Selling Process Gaining Commitment & Closing
When Do Salespeople Quit Pitching?
The Need to Gain Commitment A sales person is doomed to disappointment if they depend on the customer to take the initiative and sign the order. Closing – asking for a buyer’s business – is necessary to gain commitment
Closing vs. Commitment But closing techniques are seen by some to devalue a buyer’s perception of a company Dartnell Corp research, based on 35K+ sales calls over a decade found that reliance on certain closing techniques in big ticket sales ($5K+) actually reduced close ratios
Why is Gaining Commitment Difficult? The buyer might be busy or preoccupied; or, have a fear of making the wrong decision. On the flip side, the salesperson may have a fear of rejection and unnecessary fear can be a self-fulfilling prophecy.
Getting Past No “No, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no, no ……” - The Human Beinz, 1967 Does a salesperson obnoxiously ask a prospect five times in a row to purchase? No. After a first no, the salesperson questions further and engages the prospect in more discussion and asks for the purchase at an appropriate moment. In many cases, the salesperson finds a reason to break off the negotiation session and return at a later time when the situation has cooled and/or the salesperson has more information. So, do not give up after one No!
Be Assertive, Not Aggressive! Aggressive -salespeople control the sales interaction but often fail to gain commitment because they ignore the customer’s needs and fail to probe for information Submissive -salespeople are often excellent socializers and like to spend a lot of time talking about nonbusiness activities, usually reluctant to obtain commitment Assertive - responding to customer needs while remaining self-confident and positive
Increase The Chance of Gaining Commitment Focus on the prospect’s dominant buying motive -their hot button. Negotiate the toughest points -if you think the product has a weak point, make sure that it surfaces BEFORE attempting to gain commitment. Avoid surprises at the gaining commitment step - salespeople should ensure that potentially surprising information is not revealed to the prospect at the last step. Display self-confidence at the gaining commitment step –Confidence is contagious. Ask the prospect to purchase more than once - statistics have shown (a) 48% of all salespeople asked for the purchase once, (b) 25% asked twice, and (c) the most productive salespeople asked three times or more. Recognize clues that invite moving to gaining commitment - these clues are often referred to as buying signals. Remember that most buyers only commit when they clearly understand the benefits and costs of the product.
Possible Buying Signals Buyer Questions - Signal the buyer’s degree of readiness. e.g. How soon would you be able to deliver the equipment? Requirements - conditions that have to be satisfied before a purchase takes place. e.g. We need to get this in weekly shipments. Benefit Statements - Reflect strong feelings in support of the purchase. e.g. Good, that color will match our office decor.
More Possible Buying Signals Responses To Trial Closes - Provides guidance regarding when the salesperson should attempt to obtain commitment. e.g. How does this sound to you so far? Nonverbal Cues - Positive signals include eyes that are open and relaxed, face and mouth not covered with hands, a natural smile, and a relaxed forehead. Indicates readiness to buy or make a commitment
Presenting Price “Money, money, money, always sunny, in the rich man’s world”
Price should be carefully analyzed, taking into account competitors’ offerings After careful consideration of price, determine the most effective way to present it to the buyer Present the price with confidence since the price is not the focus of the presentation
Financial Terms and Conditions Factor in discounts and/or credits Quantity discounts- encourage large purchases by passing along savings resulting from reduced expenses (most common) Single-order discount- percentage discount on a single order of a specified number of products Cumulative discount- quantity discount for purchases over a period of time (must meet minimum) Figuring out the final actual price may be difficult with products which have a number of options – software packages designed specifically for certain businesses help with calculations – Salesforce. com
Closing the Sale Part of the Process Obtaining commitment is more than just securing an order, it is a foundation for securing a long-term relationship The Importance Of Securing Commitment Gaining commitment tells the salesperson what to do next and defines the status of the client If salespeople fail to gain commitment it takes longer to obtain a potential sale The sooner a prospect buys, the sooner benefits are realized
Trial (or minor) closes Summary-of-the-Benefits Close Assumption Close “Shall I indicate master billing on the letter of agreement?” “Should we deliver Monday or Tuesday of next week?” Special-Concession Close Offer the buyer something extra for acting immediately. “As an added bonus, we can host (provide as complimentary—comp) your group’s reception party on the night of arrival.” Single-Problem Close “Mr. Prospect, it seems that you like all the benefits that we have discussed except this one. Is that right? If I could take care of this, would you sign the letter of agreement?”
Direct Request The most straightforward, effective method of obtaining commitment is simply to ask for it Do not become overly aggressive Works best with decisive customers E.g. “Is it a deal?” or “Can you call the meeting next week?” Direct Appeal Close “Can I send you a letter of agreement?” “Would you prefer that I send you a letter of agreement by email or by overnight mail?”
Benefit Summary The salesperson simply reminds the prospect of the agreed-on benefits of the proposal Helps buyer to synthesize points covered in the presentation to make a wise decision The seller can help the buyer remember all the points discussed in the presentation Balance Sheet Method Attempts to obtain commitment by asking buyers to think of the pros and cons of the various alternatives This method can insult a buyer’s intelligence if used inappropriately Can help hesitant buyers express their feelings about the decision, which gives the salesperson an opportunity to deal with those feelings
Probing Method The salesperson initially uses the direct-request method and, if unsuccessful, uses a series of probing questions designed to discover the reason for the hesitation Also the method used in a role-play for major sales Salespeople attempt to find all the issues of concern to the prospect; then resolve the issues as soon as possible
If Commitment Is Obtained
After Dancing ….. No Surprises - Disclose any important information the customer will need to fully enjoy the benefits of the product or service Confirm the Client’s Choice - Assure them they have made an intelligent choice (Important to decrease or eliminate buyer remorse or post-purchase dissonance) Get the Signature - Make the actual signing an easy, routine procedure Show Appreciation - Writing a letter or giving a small gift develops goodwill after large purchases and with new customers Cultivate for the Future - Customers like doing business with salespeople who do not loose interest immediately after securing commitment Review the Actions to be Taken - Reviewing what needs to be done to build a partnership is important
If Commitment is Not Obtained
After Crying ….. Discover the Cause – Use a lost sale as an opportunity to improve Poor Presentation Trial closes should be used; buyer must understand benefits A poor presentation can be caused by haste Lack of product knowledge Poor Habits and Skills Knowing when to quit talking is just as important as knowing what to say Wrong Attitudes Keep a positive attitude Don’t fear making the sale Avoid being eager or overexcited Historical importance on obtaining a sale
Dealing With Rejection Maintain The Proper Perspective An answer of no should be a challenge When a buyer says no, it usually is because the buyer is not yet fully informed In the future, make sure you have a clear objective for each sales call If you can’t supply what the prospect wants, volunteer the name of a competitor that can. Then ask the prospect for names of people who might be able to buy your product Good Manners Are Important – You have to accept “no” if you expect to call on prospects again. Leave a business card