gaining commitment & closing

22
The Buying/Selling Process Gaining Commitment & Closing

Upload: jacktillman

Post on 13-Apr-2017

4.697 views

Category:

Documents


3 download

TRANSCRIPT

Page 1: Gaining Commitment & Closing

The Buying/Selling ProcessGaining Commitment & Closing

Page 2: Gaining Commitment & Closing

When Do Salespeople Quit Pitching?

After 1st Contact48%

After 2nd Contact25%

After 3rd Contact12%

After 4th Contact5%

After 5th Contact or Later10%

Source: Dartnell Corporation

Page 3: Gaining Commitment & Closing

The Need to Gain CommitmentA 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

Page 4: Gaining Commitment & Closing

Closing vs. CommitmentBut 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

Page 5: Gaining Commitment & Closing

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.

Page 6: Gaining Commitment & Closing

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, 1967Does 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!

Page 7: Gaining Commitment & Closing

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

Page 8: Gaining Commitment & Closing

Increase The Chance of Gaining CommitmentFocus 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.

Page 9: Gaining Commitment & Closing

Possible Buying SignalsBuyer 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.

Page 10: Gaining Commitment & Closing

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

Page 11: Gaining Commitment & Closing

Presenting Price“Money, money, money, always sunny, in the rich man’s world”

- ABBA, 1976

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

Page 12: Gaining Commitment & Closing

Financial Terms and ConditionsFactor in discounts and/or creditsQuantity 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 productsCumulative 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

Page 13: Gaining Commitment & Closing

Closing the SalePart 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 CommitmentGaining 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

Page 14: Gaining Commitment & Closing

Trial (or minor) closesSummary-of-the-Benefits CloseAssumption Close

“Shall I indicate master billing on the letter of agreement?”“Should we deliver Monday or Tuesday of next week?”

Special-Concession CloseOffer 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?”

Page 15: Gaining Commitment & Closing

Direct RequestThe 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?”

Page 16: Gaining Commitment & Closing

Benefit SummaryThe 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 MethodAttempts 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

Page 17: Gaining Commitment & Closing

Probing MethodThe 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

Page 18: Gaining Commitment & Closing

If Commitment Is Obtained

Page 19: Gaining Commitment & Closing

After Dancing …..No Surprises - Disclose any important information the customer

will need to fully enjoy the benefits of the product or serviceConfirm 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

Page 20: Gaining Commitment & Closing

If Commitment is Not Obtained

Page 21: Gaining Commitment & Closing

After Crying …..Discover the Cause – Use a lost sale as an opportunity to improvePoor Presentation

Trial closes should be used; buyer must understand benefitsA poor presentation can be caused by hasteLack of product knowledge

Poor Habits and SkillsKnowing when to quit talking is just as important as knowing what to

sayWrong Attitudes

Keep a positive attitudeDon’t fear making the saleAvoid being eager or overexcitedHistorical importance on obtaining a sale

Page 22: Gaining Commitment & Closing

Dealing With RejectionMaintain 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