How To Close a Sale

Art Post (Guest)

STEP #1: Ignore the ABC Strategy

I’m not kidding.

Traditional courses in closing business emphasize the “ABC” (Always Be Closing) strategy. However, while it’s easy to remember, it’s also a stupid idea.

The reason is simple. Customers don’t want to be hammered into buying. That tired old ABC strategy creates a sense of pressure, which inevitably creates resistance to the sale. The customer starts feeling that you’re more interested in making the sale than meeting the customer’s needs.

And when the ABC stuff actually works, you’ve created a whole ‘nuther world of woe. Here’s why. When customers succumb to pressure, they inevitably resent you, and often find a way to get out of the deal and not to do business with you again.

That means that you’re sacrificing the possibility for a long term relationship with a customer. And that’s really dumb, especially if your high pressure tactics result in a lost sale due to buyer’s remorse.

STEP #2: Cultivate the Right Mindset

Great closers believe that the clock has only one time - right now. If they get a lead, they’re on that lead immediately and they follow up flawlessly.

If you want to close, you’ve also got to torque up your sense of persistence. If there are three salespeople competing for the same business, the closer is the one who (for example) remembered to send a tailored follow up letter or email to the customer within one day of the meeting.

Closers are vigilant and inexhaustible in their follow up. They’re good at dialogue and possess the skill and confidence to know how and when to ask for the sale.

More importantly, they realize that it’s almost always a mistake to close a sale that would, in the long run, alienate the customer and damage the relationship or the company’s reputation.

STEP #3: Set an Objective for Every Meeting

Whenever you call on a customer, have an objective that is specific, measurable and appropriately aggressive.

Specific objectives aren’t feel-good goals like “I will get closer to the customer”; they’re goals that can be easily assessed and measured, such as “I will get a list of the key decision-makers” or “I will ask for the business.”

Objectives should be aggressive, but appropriate to the stage of the sales cycle. For example, on a first sales call for a complex multi-million dollar deal with multiple decision makers, it would be overly aggressive to set an objective like “I will close the deal today.”

Setting objectives doesn’t mean that you can’t be flexible and adjust the goal while you’re in the meeting. But a great closer always has a direction and understands where the meeting needs to go in order to maintain momentum and win the deal.

STEP #4: Constantly Check If You’re On Target

Throughout the meeting, keep the customer involved. During the meeting you will (of course) identify the customer’s objectives, strategy, decision process, time frames, etc. and position your ideas, products, or solutions to satisfy those needs. That’s basic selling.

However, you must also ask “checking” questions to get feedback from the client about what you’ve said. Asking open-ended, non-leading checking questions allows you to gauge how the customer is responding and to adjust your solution accordingly. Most importantly, this checking process will give you the information you need to confidently close.

Effective checking does not involve leading questions such as like “Does that make sense to you?” or “Do you agree?” With leading questions, customers will often take the easy way out and nod along, without really agreeing. Instead, ask checking questions such as “How does that sound?” or “What do you think?”

Unlike leading questions, checking questions encourage the customer to provide you with frank, vital information. Example:

BAD:
You: “We have a first rate delivery capability in all key markets.” (The salesperson did not check after expressing this view.”)
Prospect: “How do you handle invoicing?”

Note that in the example above, the conversation has moved on and you have no idea whether the customer agrees or disagrees with the “first rate delivery” assertion.

BETTER:
You: “We have a first rate delivery capability in all key markets. Do you think that might be useful?”
Prospect: “I’m concerned you can’t meet our global needs.”
You: “I understand that you have global needs. Why do you feel we may not be able to meet them?”
Prospect: “We want feet on the street and you don’t have international offices.”
You: “It is important to have people deployed internationally. For that reason, we have partnerships with the top companies in regions where we don’t have our own offices. Would that address your concern?”
Prospect: “It might, providing you can invoice centrally.”

Note that in the example above, you are now learning what the prospect thinks and repositioning your company’s capability in order to build toward the eventual close.

In short, every time you position your products and services, you must check to get feedback. The best part about constantly checking is that, if you do it correctly, the client will often preemptively close the sale for you by saying something like “So, when do we start?”

STEP #5: Summarize, Then Make a Final Check

If the customer does not preemptively close, then you MUST move to close or you will lose ground and possibly the entire deal.

You’ve positioned your products or services so that the customer understands how they meet his or her needs up to now. You’ve used checking to get feedback to make sure there is agreement and understanding. Now comes the mechanics of the close.

First, give the customer a concise, powerful summary that reiterates the benefits of your products or services. Once you’ve done this, make one final check - not for understanding but for agreement. Example:

You: “Our worldwide service capability will allow your employees access anywhere they travel, at a cost that’s significantly less than you’re spending today. How does that meet your objective?”

The purpose of this final check is to seeking a green light to go for the close. The final check also gives the customer the opportunity to surface any final objections that might interfere with your close. If a final objection surfaces, handle it, and then restate the final check.

STEP #6: Ask for the Business

Now it’s time to be direct and to ask for the business or next step. This must be done confidently and clearly. Example:

You: “We are ready to start. Will you give us the go-ahead?”

If the customer declines, acknowledge that fact to the customer and then find out why. As appropriate, make a second effort. Regardless of whether you actually closed, end the meeting with confidence, energy, and rapport to make a positive last impression.

Thank the client for the business or reinforce the desire to work with the client.

Follow up immediately.

SUMMARY

Here are the six steps, as described in the post above.

STEP #1: Ignore the ABC Strategy
STEP #2: Cultivate the Right Mindset
STEP #3: Set an Objective for Every Meeting
STEP #4: Constantly Check If You’re On Target
STEP #5: Summarize, Then Make a Final Check
STEP #6: Ask for the Business
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3/9/109:22 PM

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Original Post

Art Post (Guest)

The above was not my writing, however after reading the entire thread I found out that the person who wrote it had "inherited", with that it's fair game for everyone!

Read the response from another reader:

Here's some thinking that I have written elsewhere on closing a sale that is rooted in the use of the first minutes of a conversation.

I am curious about the thinking on this idea as a closing concept.

_______________________________________

"I'm interested" is not a synonym for a sales opportunity

When you hear the words "I need" and a description of what's "needed" do you immediately start to design and quote or sell? If you do, at the end of the sales process, you often hear "Great Idea but It?s too expensive", don't you!

Can you really afford to waste time selling with the outcome being "sorry, not enough budget"?

Up front and immediate qualification of things like cost v budget is a must for any sales process. It?s the reality check that can get you a sale or let you scale down the expectations of your prospect so they can get a solution at their budgetary level.

Yes, I did say "up front" as in way before you even start to sell, as in the first call! - Up front qualification for budget availability, how to get cash obligated and available, the evaluation and buying process, how things get bought and who needs to be involved to get to yes.

It?s all done in about 1 minute on the very first sales approach call and its results tell you if you have a prospect, have money available to buy and even if you should continue with the selling process because there is a reasonable chance for a sale if you do.

Here are some steps for doing this:

1. First off, do some research and understand the target company, especially how and why your product or solution can help.

2. Next, make a short 30 second commercial based on your findings that can quickly and succinctly say what you do, relate pertinent issues, benefits and problems solved and let you ask if it?s something that the prospect needs or would adopt.

Thats not "ABC", thats up front quallification.

3. Next find and define who would be right to hear that commercial at the highest level of responsibility and authority, relate to it and give you a true assessment of need/value on the spot.

4. Then make the phone call to that person and use the 30 second commercial.

After the commercial, ask for and qualify the possibility of need or value for what you have explained from the person you are speaking with. Ask it this way "Is this an idea that can benefit you and your company?"

5. If yes - ask how, why, reason, problems solved, impact.

This creates a link between you and the person that you have called for the sales process to begin that, if pesued properly, you have the basis of selling value/ROI and not cost and you know it has possibilities to yield a sale based on those criterion.

Actually, that's the basis of a solid sale- Perceived value and or ROI, not cost!

6. If no, or you get a weak maybe, stop selling, say thanks and move on to the next prospect.

Don't waste sales time on this one. Yes it?s OK to say "Thanks for your time and your honesty. I can see that our solution isn't applicable to you" and then ask "Do you know of a colleague that could use my solution" and you might get a great prospect to call. Even an introduction.

7. If yes,ask about and learn the process for moving forward and facilitating the outcome being a funded PO.

Ask "If we do have a worthwhile solution for you, who along with you would need to be involved in evaluating, adopting and purchasing your concept"?

That teaches you who to approach beyond your initial contact and does not insult the person you are speaking to. Even more important, since your idea or solution has already been acknowledged as worthwhile by the prospect. using this question also lets you ask them for help in moving forward.

You will get that inside help or as we call them in sales the inside CHAMPION who can sponsor you and your idea/solution up the ladder, a very valuable inside ally in any sales process.

Remember, don't say "who is the decision maker". It?s an insulting question because it says to your suspect "you are a peon so tell me who to go to." WRONG!! The "peon" is the gate keeper and can help move you forward or kill a sale because they are usually the resident expert that the decision maker consults for value.

8. Get Budget qualification up front - Get it qualified immediately in this first call. After the 30 second commercial gets receptivity or the caller has finished telling you what they want to buy, in either the proactive or reactive situation, state a rough cost right then to your suspect for the solution and ask if there is a budget for implementing the concept if it?s a worthwhile idea.

Yes, I did say bring up budget and possible cost right away and yes it violates every sales rule that you have learned.

Don't even think of continuing the sales process without knowing the answer to this budget and budget process in call # 1 because the answer you get reveals the time and process needed to get the sale and your prospects perception of "how much" they think your solution should cost. It lets you measure if it?s worth your time v the ultimate sales value as well.

Don't be afraid of this question so early in the process. It tells you if you can proceed with your idea.

It also lets you ask and understand what the company's usual process for evaluating and ultimately purchasing your idea is.

That's a clear roadmap to a financial yes, the key to the PO so get it and work it. That's also true when you get a call from a "potential" customer telling you that they are going to by a specific solution just like yours.

End users rarely have a handle on real costs nor have they correctly obligated enough budget so do not spin your wheels without qualifying need v probable cost and available budget.

Incidentally, doing so lets you advise them re their budget inadequacy and it?s an opportunity to sell a starter system using the available budget.

Remember, people do things for their reasons, not yours. So instead of deciding that you know a prospect needs your service and trying to ram it through, follow the steps above, use the 30 second commercial up front and you will avoid chasing rainbows that do not become sales.

Tangible Results for you:
Because you are working with solidly qualified prospects who have or will spend the $ for your solution, you will up you close rate and reduce the time it takes to get the sale. More income faster from more sales---That's a great equation for us sales types isn't it!

Regards,
Neil Licht
Senior Training Manager, Instructor and 25 year sales industry veteran

3/9/109:26 PM

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