You might be well aware that latter stages of sales funnels are most susceptible to sudden drop-offs in prospect numbers. Businesses report incremental drop-offs during the latter stages of sales process.
Considering that your prospect had already taken an active interest and set apart large time blocks to process the information, you should consider the various options to bring down these times.
There are two options to increase the number of closures.
- The first option would be to decrease the product pricing at the cost of margins.
- The second option is using negotiation tactics to move your customers to close the purchase.
In terms of profits and business potential, you consider the latter option much more preferable.
An experienced sales guy is thoroughly well-aware of this dynamics in their respective sales exchanges. By identifying the right opportunities and focussing the right sales leads, you can significantly improve your number of deal closures.
You should evaluate and take steps to convert each opportunity that comes along during the day. It enables the sales person to zero-in and focus on deals that are going to rake-in higher revenue.
The sales negotiation tactics becomes truly critical in this situation. In most situations, it could be the difference between customer saying ‘YES’ and closing the deal. You should actually interpret the mean of ‘yes’ as a customer answer. It could even hold the cue to your future progress in closing deals.
In this blog, we will give you a brief tips to negotiate the deal closures rather than having your sales pipeline tapering off abruptly…
Start by asking for client budget
The client showing interest in a particular product is no promise of an impending deal. One of the obvious reasons for the deal closure could be the lack of budget allocation for your particular product.
For example, consider that you are selling high-end office furniture. You could simply start by asking for a head count. If the internal team strength is less than five, it could be hard to sell a high-end corner conference table.
Instead, you could start with asking for underlying budgeting constraints. If it seems that the prospect cannot afford your product, it’s better to move-on to next prospect. Otherwise, you probably may not be successful at closing that deal anyways…
Shift from verbal sparring to understanding customer pain points
As sales people, we occasionally tend to focus too much on our verbal sparring skills. There is even a pre-conception that great verbal sparring skills are the entry ticket to a blossoming sales career.
You actually need to double check the validity of this stratagem.
If you aggressively argue with your prospect, you might get the prospect to agree with your point-of-view. You might even get your prospect to the point of saying ‘yes’. But this rarely means a progress in the right path, especially deal closures. Instead, you could try to focus on specific customer issues.
Some level of verbal dexterity helps you meet the resistance in client resistance. But you shouldn’t expend yourself on beating-up a prospect. In that case, he may decide to just leave your business and never again deal with your business.
Instead, you should start focusing on understand the specific customer pain points. This will help you propose conclusive solutions to resolve customer problems. It will help you convince your prospects that you are concerned about resolving their problems.
Infusing flexibility into your product offers
You might be able to get a ‘Yes’ response for your generic offer. But if you are looking to excite the customer beyond, you should come-up with a well-throughout offer for that particular customer.
Most sales people are guilty of colouring the entire prospect pool within a common shade. This generally means providing the same offers to your entire customer database. In this process, you inevitably end-up disregarding the size and variations among your prospects.
You can overcome this through providing a more customized customer offer. For this, you need to understand the particular customer need and following-it up on the long-term.
With this method, you can provide the extra nudge to finish every deal in its most promising fashion.
Setting-up and managing your sales Funnel
Instead of considering ‘Yes’ as the final destination to a sales outcome, you could consider it as a midway point before the final deal closure.
This means that you are not constantly pushing your prospects towards closure. But instead, you are sending them through a sales funnel that sets-up your prospects for their final conversion.
Under a sales funnel system, you can ensure that your prospects are properly prepared before you present them the sales equation.
You should also ensure that your prospects are happy to resolve the particular customer issues.
Even as your sales prospect agrees with your perspective, it shouldn’t be the mark to hoisting your flag of success. Because it doesn’t necessarily mean that you are now closer to a winning solution. Instead, you may even have to cross miles before reaching the much sought-after amicable solution.
In a negotiation table, there could oceans separating the prospect saying ‘yes, and closing the particular deal. This means that you should consider deal closures as the most important metric rather than reaching simple agreement.
Yes, I know, easier said than done, right?
Most sales people try to follow the cues in body language and read between sentences to make sense of their chances of closing a particular prospect deal. Usually these are shallow and meaningless way of understanding the prospect.
Having a steady grip on negotiation tactics opens-up a better way of managing customer interactions. You need to have in-depth customer information to handle things around these circumstances.
Kapture CRM enables businesses to collect relevant information and streamline processes to drive successful negotiations.