Gaining Commitment & Closing

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  • Hi Jack
    Thanks for sharing this, I needed a couple of pointers for something and this did the trick.
    Lucinda
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Gaining Commitment & Closing

  1. 1. The Buying/Selling Process<br />Gaining Commitment & Closing<br />
  2. 2. When Do Salespeople Quit Pitching?<br />
  3. 3. The Need to Gain Commitment<br />A sales person is doomed to disappointment if they depend on the customer to take the initiative and sign the order.<br />Closing – asking for a buyer’s business – is necessary to gain commitment<br />
  4. 4. Closing vs. Commitment<br />But closing techniques are seen by some to devalue a buyer’s perception of a company<br />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<br />
  5. 5. Why is Gaining Commitment Difficult?<br />The buyer might be busy or preoccupied; or, have a fear of making the wrong decision.<br />On the flip side, the salesperson may have a fear of rejection and unnecessary fear can be a self-fulfilling prophecy.<br />
  6. 6. Getting Past No<br />“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 ……”<br />- The Human Beinz, 1967<br />Does a salesperson obnoxiously ask a prospect five times in a row to purchase? No. <br />After a first no, the salesperson questions further and engages the prospect in more discussion and asks for the purchase at an appropriate moment. <br />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. <br />So, do not give up after one No!<br />
  7. 7. Be Assertive, Not Aggressive!<br />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<br />Submissive -salespeople are often excellent socializers and like to spend a lot of time talking about nonbusiness activities, usually reluctant to obtain commitment<br />Assertive - responding to customer needs while remaining self-confident and positive<br />
  8. 8. Increase The Chance of Gaining Commitment<br />Focus on the prospect’s dominant buying motive -their hot button.<br />Negotiate the toughest points -if you think the product has a weak point, make sure that it surfaces BEFORE attempting to gain commitment.<br />Avoid surprises at the gaining commitment step - salespeople should ensure that potentially surprising information is not revealed to the prospect at the last step.<br />Display self-confidence at the gaining commitment step –Confidence is contagious.  <br />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.  <br />Recognize clues that invite moving to gaining commitment - these clues are often referred to as buying signals. <br />Remember that most buyers only commit when they clearly understand the benefits and costs of the product.<br />
  9. 9. Possible Buying Signals<br />Buyer Questions - Signal the buyer’s degree of readiness. e.g. How soon would you be able to deliver the equipment?<br />Requirements - conditions that have to be satisfied before a purchase takes place. e.g. We need to get this in weekly shipments.<br />Benefit Statements - Reflect strong feelings in support of the purchase. e.g. Good, that color will match our office decor.<br />
  10. 10. More Possible Buying Signals<br />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?<br />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<br />
  11. 11. Presenting Price<br />“Money, money, money, always sunny, in the rich man’s world” <br /><ul><li>ABBA, 1976 </li></ul>Price should be carefully analyzed, taking into account competitors’ offerings<br />After careful consideration of price, determine the most effective way to present it to the buyer<br />Present the price with confidence since the price is not the focus of the presentation<br />
  12. 12. Financial Terms and Conditions<br />Factor in discounts and/or credits<br />Quantity discounts- encourage large purchases by passing along savings resulting from reduced expenses (most common) <br />Single-order discount- percentage discount on a single order of a specified number of products<br />Cumulative discount- quantity discount for purchases over a period of time (must meet minimum)<br />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<br />
  13. 13. Closing the Sale<br />Part of the Process<br />Obtaining commitment is more than just securing an order, it is a foundation for securing a long-term relationship<br />The Importance Of Securing Commitment<br />Gaining commitment tells the salesperson what to do next and defines the status of the client<br />If salespeople fail to gain commitment it takes longer to obtain a potential sale<br />The sooner a prospect buys, the sooner benefits are realized<br />
  14. 14. Trial (or minor) closes<br />Summary-of-the-Benefits Close<br />Assumption Close<br />“Shall I indicate master billing on the letter of agreement?”<br />“Should we deliver Monday or Tuesday of next week?”<br />Special-Concession Close<br />Offer the buyer something extra for acting immediately.<br />“As an added bonus, we can host (provide as complimentary—comp) your group’s reception party on the night of arrival.”<br />Single-Problem Close<br />“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?”<br />
  15. 15. Direct Request<br />The most straightforward, effective method of obtaining commitment is simply to ask for it<br />Do not become overly aggressive<br />Works best with decisive customers<br />E.g. “Is it a deal?” or “Can you call the meeting next week?”<br />Direct Appeal Close<br />“Can I send you a letter of agreement?”<br />“Would you prefer that I send you a letter of agreement by email or by overnight mail?”<br />
  16. 16. Benefit Summary<br />The salesperson simply reminds the prospect of the agreed-on benefits of the proposal<br />Helps buyer to synthesize points covered in the presentation to make a wise decision<br />The seller can help the buyer remember all the points discussed in the presentation<br />Balance Sheet Method<br />Attempts to obtain commitment by asking buyers to think of the pros and cons of the various alternatives<br />This method can insult a buyer’s intelligence if used inappropriately <br />Can help hesitant buyers express their feelings about the decision, which gives the salesperson an opportunity to deal with those feelings<br />
  17. 17. Probing Method<br />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<br />Also the method used in a role-play for major sales<br />Salespeople attempt to find all the issues of concern to the prospect; then resolve the issues as soon as possible<br />
  18. 18. If Commitment Is Obtained<br />
  19. 19. After Dancing …..<br />No Surprises - Disclose any important information the customer will need to fully enjoy the benefits of the product or service<br />Confirm the Client’s Choice - Assure them they have made an intelligent choice (Important to decrease or eliminate buyer remorse or post-purchase dissonance)<br />Get the Signature - Make the actual signing an easy, routine procedure<br />Show Appreciation - Writing a letter or giving a small gift develops goodwill after large purchases and with new customers<br />Cultivate for the Future - Customers like doing business with salespeople who do not loose interest immediately after securing commitment<br />Review the Actions to be Taken - Reviewing what needs to be done to build a partnership is important<br />
  20. 20. If Commitment is Not Obtained<br />
  21. 21. After Crying …..<br />Discover the Cause – Use a lost sale as an opportunity to improve<br />Poor Presentation<br />Trial closes should be used; buyer must understand benefits<br />A poor presentation can be caused by haste<br />Lack of product knowledge<br />Poor Habits and Skills<br />Knowing when to quit talking is just as important as knowing what to say<br />Wrong Attitudes<br />Keep a positive attitude<br />Don’t fear making the sale<br />Avoid being eager or overexcited<br />Historical importance on obtaining a sale<br />
  22. 22. Dealing With Rejection<br />Maintain The Proper Perspective<br />An answer of no should be a challenge <br />When a buyer says no, it usually is because the buyer is not yet fully informed<br />In the future, make sure you have a clear objective for each sales call<br />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 <br />Good Manners Are Important – You have to accept “no” if you expect to call on prospects again. Leave a business card<br />

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