Post on 13-Apr-2017
The Buying/Selling ProcessGaining 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
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
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
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, 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!
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 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.
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.
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”
- 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
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
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
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?”
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?”
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
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
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 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
If Commitment is Not Obtained
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
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