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Sales management

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Sales Management
Micro certifications

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Sales Management
• Sales Prospecting and Sales Pipeline Management
• Sales Presentations
• Sales Objections & Deal Closure...

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The Sales Process
3
The sales process outlines the steps to find potential customers, close the sale, and retain
clients f...

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Chap. 7. prospecting
Chap. 7. prospecting
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Sales management

  1. 1. Sales Management Micro certifications
  2. 2. Sales Management • Sales Prospecting and Sales Pipeline Management • Sales Presentations • Sales Objections & Deal Closure • Sales Negotiations and Follow-up 2
  3. 3. The Sales Process 3 The sales process outlines the steps to find potential customers, close the sale, and retain clients for repeat business and referrals in the future. The sales process includes the following stages: Prospecting is the first step in this typical seven-step sales process widely followed by BD/sales professionals. Prospecting Preparation Approach Presentation Handling Objections Closing Follow Up
  4. 4. Prospecting 4
  5. 5. What is Prospecting? 5 Prospecting is the process of searching for potential customers, clients, or buyers in order to develop new business. The idea is to identify prospects and move them through the sales process/funnel until they eventually become revenue-generating customers. Organisations must locate potential customers on an on-going basis in order to replace lost customers and to add new ones.
  6. 6. Prospecting – Leads vs. Prospects 6 A person or business that might be a prospect is called a lead. Leads become prospects if they are qualified as potential customers. Salespeople must work on developing a process for qualifying leads, often called a lead qualification system. Screening Procedures for Qualifying Leads Qualified Prospects Sales Leads
  7. 7. What are the Characteristics of a Good Prospect? 7 The prospect must have a need that they are aware of. They may not know what the answer/solution to their need is but they know they have a problem. Look for such individuals/organisations. It is important to quickly determine if the person you are dealing with is a decision maker with the authority to purchase. Find out if the prospect has the ability to purchase what you are trying to sell – including the budget and ability to move forward from a contractual standpoint. A want/need that your offering can satisfy Authority to buy/commit Ability to buy
  8. 8. What are the Characteristics of a Good Prospect? 8 BD/Sales professionals must use open-ended questions to identify if a prospective client has an established timeline so you engage with those who are looking to make a decision. If prospects are unsure of their timing, set a meeting for some time in the future to reconnect, or direct the lead back to marketing to continue to nurture until the time is right. Sense of Urgency
  9. 9. Prospecting – Approach and Essentials 9
  10. 10. Who Should be doing the Prospecting? 10 Prospecting is essential to building business – it must preferably be undertaken by certain roles in the organization. Also, the size, scale and tenure of the organization is crucial in determining who handles the process. Founders - in case of start-ups Sales representatives - for small and growing firms Business development representatives - in an ideal sales team, with SDPs for inbound prospecting and BDRs for outbound prospecting
  11. 11. Prospecting Essentials A good prospector must have the following characteristics: 11 Extensive Product Knowledge Prospectors must identify who could potentially benefit from your product or service. They must be aware of the core features, strengths and weaknesses, all potential use cases and new features expected to roll out in the future – to make the task easier Understanding/knowledge of ideal user Prospectors must start by developing a buyer persona or an ideal user profile to know what kind of clients they are targeting. You can use existing client personas to quickly profile potential leads and contacts in different industries. Strong Research Skills Prospects need to dig through the vast pool of information across sources such as social media, government websites, lead gen software, etc. This helps identify buyer personas, gather relevant data, identify industries/firms fitting the criteria and then looking for contacts and contact information
  12. 12. Prospecting Essentials – Methods to Prospect 12 You could use any of the following common prospecting approaches that prove effective across industries/businesses Outbound prospecting involves your sales team identifying and reaching out to prospects, making initial contact through one of the traditional channels such as telephone prospecting, email, etc. Outbound Prospecting Cold Calling Cold Emailing Social Media Prospecting Inbound Prospecting Inbound prospecting entails reaching out to leads that have come to the organization through one channel or another. Central to inbound prospecting is your marketing and CRM. Warm Emailing Social Selling
  13. 13. Prospecting – Sources to Use 13 Internal Sources Company records, lists and directories, advertising inquiries, telephone inquiries, mail inquiries External Sources Referrals, introductions, community contacts (centers of influence), non-competing salespeople, visible accounts Personal Contact Observation,, cold canvassing, trade shows, bird dogs (spotters)
  14. 14. Prospecting Mistakes to Avoid 14
  15. 15. Prospecting Mistakes to Avoid Keep an eye for any of the following factors that might be responsible for your prospecting program not working: 15 Prospecting Mistakes Talking too fast and not listening Assuming prospects are not interested Too many prospects in the pipeline Over-promising Directly launching into sales presentation Not defining buyer target clearly Getting their name wrong Treating gatekeepers badly Not learning about prospect’s need Selling features instead of benefits
  16. 16. The Sales Process 16 The sales process outlines the steps to find potential customers, close the sale, and retain clients for repeat business and referrals in the future. The sales process includes the following stages: . Prospecting Preparation Approach Presentation Handling Objections Closing Follow Up
  17. 17. What is a Sales Presentation? 17 A Sales presentation is a sales tool, usually a talk, involving the use of demonstrative material like PowerPoint slides, props, sketches, etc., intended to get the prospect to commit to purchase a product/service. Well done sales presentations improve conversion rates at the bottom of the sales funnel - as good as sourcing a huge number of “qualified leads” or finding thousands of prospects
  18. 18. Why are Sales Presentations Important? 18 Well-structured sales presentations help you with: Organising your message A good structure will help you cover all relevant information, prioritising and organising it in a way that it has the intended impact on the audience Simplifying your message Your presentation should make your product or service appear less complex than it is Moving your audience A good structure allows you to make a strong emotional case - because buying decisions are rarely based on just logic
  19. 19. Sales Presentations Objectives Making the sale isn’t the only aim of sales presentations. There are various other objectives, including: 19 To be invited to respond to a tender To be shortlisted to the next round of a bidding process To be accepted to help write the tender To be invited back for a meeting with the decision maker For the prospect to meet with your technical consultant To get a go ahead to run a study To convince the prospect to start a trial To persuade the prospect to commit to a technical evaluation
  20. 20. Sales Presentations – Doing the Groundwork 20
  21. 21. Preparing for Sales Presentations 21 Organise and prepare for your presentation – arrange your presentation and materials ahead of time Know what you are selling Know Your Competition Know Your Customer Know the Market Know your product/ service inside out Include history of the product/service, history of the company – prospects like to see growth Gain as much information as possible about the competition as this will go a long way in answering questions and objections from the prospect Learn: Strengths, weaknesses, how do they advertise? When do they call prospects? Do they rely only on telephonic sales?. etc. Learn about every aspect of your customer’s business: How long he has been in business? What re the key products/services? Who are the key clients? Find out if any of your competitions have relationships with them? If the competition is in there already, you must find out everything about his product or service. Learning about the market that your prospect is serving; you can better ascertain how you can help him achieve his goals. Knowledge of his end market will help you tie your offering to his needs better.
  22. 22. How balanced is your 3Cs? 22
  23. 23. Sales Presentations – Key Content 23
  24. 24. Sales Presentations – Key Content 24 There are two key components to the introduction – first is a discussion about your prospect’s needs. The second is an overview of the structure and flow you have planned for the presentation and conversation. Describe the objectives and scope of work you will be delivering. Explain what you will do and provide a precise time-frame for key milestones and product/service delivery Elaborate on the details of your approach. Divulge enough details for the prospect to clearly understand your approach but keep it broad enough so that it doesn’t disclose your recommendations. Don’t make any specific preliminary suggestions to the prospect at this step Introduction Objectives and Scope Approach
  25. 25. Sales Presentations – Key Content 25 Describe the benefits your product/service will offer to the prospect. Tie your offering to the needs of the client. Don’t sell features, instead promote benefits of your products/services. Do not include the cost in the beginning. Keep your estimate of costs for goods/services as detailed as possible to avoid any misunderstandings upon delivery. At the end, simply focus on reminding the prospect why you are the best choice for the job. End with a closing paragraph which contains a statement of interest in doing the work for the prospective client – including the benefits of doing business with you. Benefits Cost The End/Close
  26. 26. Crafting Sales Presentations – The Slides 26
  27. 27. Designing the Slides Keep in mind that every slide in your sales presentation has a purpose. You must design your slide according to your objective 27 To Explain To help describe something, to help clients understand you Use diagrams and drawings to help clients quickly visualise what you are trying to explain, facilitating and accelerating understanding. To Summarise To help clients retain key messages Use slides with text. Show them one line at a time – gradually dim the ones already covered. This helps clients focus on one idea at a time while also keeping sight of the overall picture. To Prove To make clients believe you Use charts and avoid tables and figures. Charts allow the client to grasp the point illustrated by the figures in under three seconds. Keep tables and figures for written presentations. To Influence To make clients arrive at a decision or to change their mind A good idea is to use photos to access the emotional side of the brain, where decisions initiate.
  28. 28. Designing the Slides - Essentials Include these following six essential elements for a successful sales presentation (Source: PPTPOP) 28 An impactful cover slide A Value Proposition A Powerful Story Enticing Solutions Proofs A Clear Call- to-Action
  29. 29. Designing the Slides - Essentials An Impactful Cover Slide 40% people respond better to visual information as against plain text. Ensure that your cover slide reflects your industry company stand. Google, Flickr, Unsplash, and Fubiz are good sources for images to immediately boost your pitch. A Value Proposition Tell the prospects what you do - summarise your value proposition, telling them why they should buy from you. To refine your value proposition, use the following formula: [Company name] helps [target audience] with [services] so you can [benefits]. Example: Airbnb - "Airbnb is a trusted community marketplace for people to list, discover, and book unique accommodations around the world." 29
  30. 30. Designing the Slides - Essentials A Powerful Story The most successful presentations are 65% stories. Including stories and team help to humanise your company and increase likeability. Engage your audience with details about why your company and product came to be, what motivates your team to wake up and work every day. Share tips that are personal and will make your audience smile Enticing Solutions Tell Focus on your client’s problem and break down your value propositions to solutions tied to the benefits your clients want. Remember: 30  Don’t give too many choices  Communicate results/benefits they will get  Make it easy and quick to understand  Demonstrate your offering’s value through examples
  31. 31. Designing the Slides - Essentials Proofs To make clients believe your claims, you should add proofs:  Add testimonials to highlight what clients love about doing business with you. Include real client names/pictures for greater credibility.  Share research data such as expert quotes and findings that tie to the benefits of your offering.  Compare your products vs. competitors’ to show how you're better.  Provide extra benefits such as free trial, money-back guarantee or free shipment to show and earn confidence. Clear Call-to-Action A call to action directs customers to take action (buy, start a free trial, sign up for mailing list, etc.). 31
  32. 32. Sales Presentation Mistakes to Avoid 32
  33. 33. Sales Presentation Mistakes to Avoid Avoid the following sales presentation mistakes 33 Sales Presentation Mistakes Not sharing the deck digitally Not making the PowerPoint visually powerful Not customising for the prospect Not staying on your brand and its elements Not using analytics for follow-ups Using a boring, dull, PowerPoint Template Not integrating with your CRM Not bringing a printed leave-behind
  34. 34. Effective Sales Closure A Comprehensive Guide
  35. 35. What is Closure in Sales? 35 “The close” in the sales process is the stage where the conversation moves to a sale (or the desired outcome). It may be called the “close,” which means the end, but, closing the sale actually begins with the first step in the selling process — qualifying. Closing is, in fact, an ongoing series of events that occur throughout the selling process. Remember, qualifying is the key to closing as closing with the wrong prospect is practically impossible .
  36. 36. Closing the Sale - Prerequisites 36 Prerequisites to Closing the Sale Solution Value to Justify Cost Urgency Authority to Buy Need
  37. 37. Closing the Sale - Prerequisites 37 The prospect must have a requirement for your offering/solution. He may have the need and realize it, or he may not yet realize he needs it. It is your job to create and/or reaffirm the need. Ensure that you have a solution to their problem. It can be a problem that they identified or it can be a problem that you have identified for them. Your client needs to see value in what you are selling - demonstrate the value of your product or service. Once they see the value, the value will justify the cost of your offering. Need Solution Value to Justify Cost
  38. 38. Closing the Sale - Prerequisites 38 You don’t want your client to find reasons not to buy, or to go to a competitor. The prospect is likely to prolong the sales process if he doesn’t feel the urgency to buy. Hence, you must aim to create urgency in your client. Make sure you are not wasting your time and sales efforts with someone who doesn’t have the actual authority to buy the product or service you are selling. Selling to the wrong person must be avoided. Ensure that you are engaging with the decision maker before you go into your pitch. Urgency Authority to Buy Focus on creating the need through the solution and value. Then proceed to close the deal through the urgency and authority to buy.
  39. 39. When to Close – Buying Signals 39 The customer will tell you they are ready to buy through the clues they give you. These clues that indicate that the customer is ready to make a purchase, are called buying signals. In order to determine when to ask for the sale, you must actively look for buying signals When a potential customer indicates that he or she is ready to purchase, stop selling!
  40. 40. When to Close – Buying Signals 40 Prospects will give you both verbal and/or non-verbal clues that indicate you should move from the sales pitch to talking specifics about purchasing. Non-Verbal Cues Greater eye contact; relaxed demeanor; uncrossing arms/legs, leaning forward; nodding, agreeing, and showing enthusiasm; reaching out for pen, billfold, making calculations, examining the contracts etc. Verbal Cues Questions about a specific product, product model, or type of service Questions about the warranty Questions about the start of service/delivery date Queries about the contract Questions about the price Questions about the mode of payment Questions about your company Requests to repeat Direct Questions on Next Steps
  41. 41. When to Close – Buying Signals (Verbal Cues) These could include: "Is this available in another size/color?" or "Can I bundle these two packages if my problem is like this... ?". Such questions indicate the prospect wants to find out how your company can address his greatest need. 41 Questions about a specific product, product model, or type of service Questions about the warranty show that the customer is trying to ascertain the reliability of your product/service and is probably close to becoming a buyer. Questions about the warranty
  42. 42. When to Close – Buying Signals (Verbal Cues) 42 Such questions may imply that the prospect is almost convinced that your company is the best choice and is most likely eager to finish the sale. A good response here would be "when do you need it?" Questions about the start of service/delivery date If a customer starts asking about the terms and conditions of the contract, or enquires if he can make some changes to the contracts, he is likely ready to buy. Queries about the contract
  43. 43. When to Close – Buying Signals (Verbal Cues) 43 A customer is likely to bring up the topic of pricing willingly if he has developed an interest in purchasing. Questions about the price Questions about payment terms, mode of payment indicate the customers are already thinking of buying your offer. Remember, if the customer brings up the topic of money into the conversation, it's a fair assumption that they are interested in purchasing. Questions about the mode of payment
  44. 44. When to Close – Buying Signals (Verbal Cues) 44 Questions about how long your company has been in service or if you are doing business with other clients in the industry show that the customer wants to check the reliability of your company. Questions about your company If the customer asks you to repeat some parts of your conversation, he is possibly looking to reaffirm something you said earlier that he was particularly interested in, He probably wants to assure himself that he is making the right decision by buying from you. Such questions could include: "what does the warranty cover again?", "can we look at the payment structure again?" Requests to repeat
  45. 45. When to Close – Buying Signals (Verbal Cues) 45 You must listen and observe to recognize buying signals and respond appropriately. To increase familiarity and improve your awareness of buying signals, run a signal review after each sales call. Ask yourself, “What signals were present?” This review will help sharpen your listening skills and you will become more aware of possible buying signals. Remember If your customer asks you "what do we do next?", in all probability it means that you have already closed the sale. Direct question on next steps
  46. 46. Closing Sales – Key Techniques 46
  47. 47. Closing Sales – Key Techniques It is essential to work on your closing skills to succeed as a sales/BD professional. You can benefit from learning some proven closing techniques. 47 Closing Techniques The Assumptive Close Impending Event The Columbo Close The Puppy Dog Close The Backwards Close The Porcupine The Hard Close/ Direct Close The Take Away Close The Now or Never Close The Summary Close
  48. 48. Closing Sales – Key Techniques The Columbo Close Inspired by the TV character Columbo (a police detective). After the suspects assumed Columbo was done speaking to them as he started walking away, Columbo would turn and say, "Just one more thing." After you wrap up your sales pitch and you know the customer is about to walk away, use the Columbo line to restate the most enticing part of your pitch 48
  49. 49. Closing Sales – Key Techniques The Porcupine Just like you need to be careful when stroking a porcupine, you must also be careful answering customer questions. If a prospects asks a question such as “Do you guys serve the Middle East market?”, respond by throwing back the question: “Would you like us to serve your customers in the Middle East?” Try to gauge the depth of the prospect’s interest based on her response and adjust your response and presentation accordingly. 49
  50. 50. Closing Sales – Key Techniques Impending Event For times when you need the customer to make a quick decisions due to upcoming deadlines or other reasons, the impending event closing is likely to work. However, ensure that the deadline is not just in your interest, but also the customer’s, else it will be seen as self-serving and won’t work. E.g. "I have an installation and demonstration team in town next week. Can we schedule a day with you?” 50
  51. 51. Closing Sales – Key Techniques The Puppy Dog Close This technique is something like offering to let a dog lover take a puppy home to "try it out", and, nine out of ten times the customer will buy the puppy. For sales professionals who have the option of allowing their prospects to “test” or "try" their product or service, the puppy dog close has a very high closure rate. This technique is a low-pressure and highly effective method to get a customer to sign on the bottom line 51
  52. 52. Closing Sales – Key Techniques The Assumptive Close When using this technique, the BD/Sales professional assumes that the customer is going to make a purchase. This assumption helps put them in a better state of mind. This technique involves using a phrase or language that assumes the close is a done deal. Being extremely confident is the key to this technique. If you cover each step of the sales process and offer enough value to the customer, assuming a sale will close is a powerful and highly effective closing technique. Make sure you take repeated "temperature checks" of the prospect to make sure that he is following along with your assumption-of-sale. Have confidence in your product and yourself. 52
  53. 53. Closing Sales – Key Techniques The Backwards Close Typically, BD/sales professionals follow a predetermined number of steps in the sales cycle, with "prospecting and qualifying" being step one. However, the backwards close is when you start with the final step, asking your prospects for referrals. By doing this, the customer is put at ease as they realize that you are not trying to sell them something. You can then go on to explain your offering, its benefits and value—and then close the deal. 53
  54. 54. Closing Sales – Key Techniques The Hard Close/ Direct Close Direct/hard closing requires a lot of courage and confidence and is good to use when you have nothing to lose. When you are confident that the answer will be affirmative, use direct closing. However, keep in mind that while most people like to buy, they seldom like being sold to. Don not to use it too early in the sales cycle - when you feel you’ve addressed the customer's concerns and are positive that she knows the value of your offering, you can directly pose the question "So, Julia, are you ready to see and discuss the final contract? ". 54
  55. 55. Closing Sales – Key Techniques The Take Away Close This closing technique involves reviewing certain term, features or benefits a customer wants and then recommending that they forgo some of these—probably to offer a cost savings. This has a psychological impact on customers not wanting to lose anything from their wish list and moving forward to make the purchase. 55
  56. 56. Closing Sales – Key Techniques The Now or Never Close This technique aims to push a customer to make a purchase right away. You can try offering them some special benefits, such as: “The FTE rates are going to be revised next week onwards, so this is a good week to sign the deal." 56
  57. 57. Closing Sales – Key Techniques The Summary Close Learn to summarize the value and benefits of the product/service you are offering, Customers may not always remember all details and might be confused in case you have multiple offerings. Help the prospect visualize what they're purchasing, summing it up in a concise manner - they will better understand they're actually getting what they want. 57
  58. 58. Trial Closing 58
  59. 59. Trial Closing - Overview Trial closing is an effective technique to improve your sales closing performance. By asking open-ended, opinion-asking questions for trial close, you are able to: Ascertain where you are in the sales process Determine when to ask for the sale A Trial Close is not a regular 'closing technique', rather a test to find out if the prospect is ready to close. 59
  60. 60. Trial Closing – Common Questions How do you feel about our discussion so far? What are your thoughts about the solution I’ve shared with you? How does what we’ve talked about sound to you? Based on what you’ve heard so far, what are your questions? If you had your way, what changes would you make to the proposal? Really easy questions to ask, right? 60
  61. 61. Trial Closing – Buyer Responses Your trial close questions are likely to get one of three types of responses: Cold: Follow up this kind of a response with a question that immediately captures your prospect’s attention because it is clear you have not broken through yet. I feel it: This indicates you are on the right track with the prospect – making progress. View this as the time to strengthen your story before asking for the sale. Ready-to-go: This kind of response indicates your prospect is ready and it is time to ask for the sale. 61
  62. 62. Warning Signs for Sales Closure As an aware and skillful BD/Sales professional, keep an eye for warning signs that indicate the sale is unlikely to close 62 Not sure when they'll change If their responses are evasive and they are uncertain when they'll change, they're not a prospect right now Shift in priorities If they tell you that other, more urgent priorities have come up, they are unlikely to buy in the near future Boss Isn’t Sold If they tell you that their boss or decision maker isn't yet convinced, the chances of getting a contract signed anytime soon are bleak. Unresponsive If they don't respond to your calls or emails, it is best to take them off your prospect list. Interested but expecting delays It’s ok to keep on touch with prospects who say they are still very interested but projecting significant delays - but don't rely on them It is helpful to take out some time to review your pipeline and not be afraid to eliminate – it’ll help you to pursue new prospects, with better chance of winning.
  63. 63. What is Negotiation in the Sales Process? 63 The Selling process identifies the fit between the seller’s offering and what the buyer is seeking. Negotiation, on the other hand, is a part of the selling continuum, involving the process of agreeing the terms of the deal. Every moment of business development and selling involves some amount of negotiating.
  64. 64. Why is Effective Negotiation Important? 64 Don’t underestimate the importance of good negotiation skills. Effective Good negotiation can help you with: Improving profitability Competing on value rather than price Enhancing customer perception
  65. 65. Why is Effective Negotiation Important? 65 When you undertake effective negotiations, you are able to: Increase the deal size Reduce discounting Improving win:loss ratios Realize greater value (proposed vs. closed)
  66. 66. Key Negotiation Styles 66
  67. 67. Key Negotiation Styles 67 Soft Negotiator Makes concessions readily in order to reach agreement; looks to avoid personal conflict; wishes for an amicable resolution; may end up exploited and feeling bitter Principled Negotiator Creates a win-win deal Hard Negotiator Focused on winning; sees negotiation as a contest of wills; may get an equally hard response which harms his relationship with the other side, and exhausts him and his resources NEGOTIATION STYLES
  68. 68. Key Negotiation Styles – Hard Negotiation 68 Hard Negotiator Distrust Others Seek concession as a condition for the relationship View participants as adversaries Hard on the problem and the people Make Threats The goal is victory Mislead about the bottom line Demand one-sided gains in order to agree Try to win a contest of will Apply pressure
  69. 69. Key Negotiation Styles – Soft Negotiation 69 Soft Negotiator Change position easily Agreement is the goal View participants as friends Trust others; soft on the people and the problem Make offers Make concessions to foster relationships Disclose the bottom line Insist on agreement Avoid a contest of will Yield to pressure
  70. 70. Key Negotiation Styles – Principled Negotiation Principled negotiation is an approach to conflict resolution outlined in the book, "Getting to Yes" by Roger Fisher and William Ury, published in 1981 Principled negotiation, is often referred to as creating a "win-win" deal. It takes the all-or- nothing attitude out of the equation, helping you achieve your business objectives and satisfy the other party’s expectations. 70
  71. 71. Principled Negotiation – Fundamental Principles 71 Separate People from the Problem Generate Multiple Options Focus on Interests Use Objective Criteria Fundamental Principles
  72. 72. Principled Negotiation – Fundamental Principles - 1 Separate People from the Problem The issue being negotiated often gets overshadowed by emotion, communication and perception. Make sure you separate the people from the issue/problem at hand. While engaging in negotiations, try to put yourself in the other person’s shoes and empathize with them. Think of each other as partners not adversaries 72
  73. 73. Principled Negotiation – Fundamental Principles - 2 Focus on Interests Don’t look at the other person’s view on the subject/issue as inferior, instead, aim to have discussions about common interests. Identify the interests of each party regarding the issue – asking them why they have a particular stance. Number of interests underlie each party’s position - discuss these interests and stay focused on a solution. 73
  74. 74. Principled Negotiation – Fundamental Principles - 3 Generate Multiple Options Focus on generating lots of options for a possible solution - brainstorming can be an effective exercise here When brainstorming, remember to not judge the ideas. Shortlist the most promising ideas during the evaluation phase. 74
  75. 75. Principled Negotiation – Fundamental Principles - 4 Use Objective Criteria If encountering strong, direct opposition, use objective criteria such as industry statistics, legal precedent, and scientific studies. If both sides agree to the validity of the information and view it as a standard they can agree to, it is objective. 75
  76. 76. Principled Negotiation – Handling Obstacles Deals cold be ruined by use of dirty tricks, power and refusal to use principled negotiation. Use the four principles of principled negotiation to establish ground rules for the negotiations When power is an issue, the weaker party should look for a best alternative to a negotiated agreement (BATNA). BATNA acts as an alternative to bottom-line thinking in which parties evaluate the worst possible outcome before negotiations start. Decline solutions that would be worse than BATNA. When the other party doesn’t use principled negotiating, avoid responding to attacks, direct them at the problem. Just keep at it. 76
  77. 77. Essentials of Effective Negotiation 77
  78. 78. Essentials of Effective Negotiation 78 ESSENTIALS OF EFFECTIVE NEGOTIATION Use silence to your advantage Define your absolute bottom line - define the concessions you are willing to accept Don’t put anything in writing till the conversation is over Build value in your prospect’s mind to justify your price Always negotiate with the decision maker Prepare well before negotiations Know when to walk away Offer alternatives to cash discounts that cost you less
  79. 79. How to Handle Adversarial Tactics? 79
  80. 80. What are Adversarial Tactics? Adversarial negotiation tactics work through manipulation. Sometimes, buyers may adopt use a range of pressure tactics to defeat you and get what they want. They are looking to fluster you, hoping you’d make a mistake and eventually feel pressured into making a concession. 80
  81. 81. How to Deal with Adversarial tactics? Avoid reacting in a way that would escalate the situation. Steer the negotiation on a more productive path that fosters the relationship. 81
  82. 82. Handling Common Adversarial Tactics - 1 False Deadlines Pressuring you to agree to terms before you are ready. Approach Make sure the sales process is not rushed through. If you give in to fast-forwarding through demonstrations and presentations, you could later on be called out for covering up important details. Be prepared, and ask necessary questions to check the reality of the deadlines. 82
  83. 83. Handling Common Adversarial Tactics - 2 Delaying a decision and ignoring deadlines This might be aimed at creating anxiety and pressure you to make concessions. Approach Find out the actual reason of the delay - follow up and politely communicate that your time is also important. Don’t feel pressured to make concessions due to the prospects inaction or lack of movement. Save yourself by documenting all communications, ensuring deadlines and key action points from voice mails/emails are noted, along with the consequences of any delays. 83
  84. 84. Handling Common Adversarial Tactics - 3 Starting over in the middle of negotiations Prospects may reverse progress in order to keep and gain position Approach In case of any one term being changed, feel free to reopen all the terms - in the interest of a fair outcome. Both the seller and buyer should feel like winners at the end. 84
  85. 85. Handling Common Adversarial Tactics - 4 Surprises Prospect brings up new issues when you think things are settled Approach The prospect may have forgotten to bring something up sooner, however, it could be a sign of prospective problems. Refrain from immediately handling the issue - ask for more time, park it until you are prepared. Keep in mind: “Never let them see you sweat.” Change the direction of the discussion to delay your reaction or response. 85
  86. 86. Handling Common Adversarial Tactics - 5 Demanding price up front Prospects may ask you for ballpark price quotes and then hold you to the lower figure. Approach Acknowledge his question and state that you want to share the pricing information, but ask for more information to help you give specific, accurate pricing. Give information to get information. You might provide possibilities of high-, medium-, and lower-priced options before you know what’s to be included in the sale and committing to a price. 86
  87. 87. Handling Common Adversarial Tactics - 6 Negotiating the future Prospects use a possible future deal to bargain for the current deal Approach Ask the client for specifics in written, effectively making the future deal a formal part of the current deal. How you handle this deal, will set parameters for the next one. Conceding on the current deal could yield a larger opportunity in the future, but, consult your seniors and other stakeholders before committing. 87
  88. 88. Handling Common Adversarial Tactics - 7 Creating an uncomfortable environment Prospects may try to gain an unfair advantage by ways such as long waiting hours, hot and uncomfortable room, sunlight in your eyes, no food or break, and changes in negotiators. Approach If you can gauge that this is done intentionally, consult with your team/colleagues to validate that it’s not just you who feels this way. Straight away ask to change the environment (change seating, adjust the temperature, shift rooms, etc.) Don’t fear calling for a break or rescheduling the meeting. 88
  89. 89. Handling Common Adversarial Tactics - 8 Suddenly losing interest Prospects may indicate you are likely to lose the deal, with the aim to gain better terms. Approach Do not panic. Be aware that it could be a tactic, so ask the prospect what changed. Be patient. Do not nag the prospect, but stay in regular touch, and document your communications, discussions, key decisions and milestones, and consequences for the sale if delays persist. 89
  90. 90. Handling Common Adversarial Tactics - 9 Outnumbering you Prospects may attempt intimidation through a large delegation of buyers in the meeting without informing you in advance. Approach Ask for details of attendees’ roles, ahead of the sales meeting - if the deal is likely to affect multiple functions, it is sensible for the buyer to include his colleagues in the sales meetings. If the sale is large/complex, expand your BD/sales team accordingly — match numbers with numbers. However, if you do end up in a situation where you feel you are being bullied during the meeting, stand your ground, and try to schedule a follow-up meeting 90
  91. 91. Handling Common Adversarial Tactics - 10 Playing dumb Prospect may try to get you to back down by faking a lack of understanding, awareness, assumptions, or expectations. Approach Do not let the prospect’s “not knowing” to impact your terms. Don’t amend the deal or make sacrifices due to your client’s lack of attention or attention. However, since you’re the expert, it is mandatory for you to clearly spell out each step along with information on pricing, timing, delivery, etc., to avoid any ambiguity or misunderstanding. 91
  92. 92. Handling Common Adversarial Tactics - 11 Using silence Prospects may use silence to pressures you to concede — the first one to talk after the price/condition is on the table is usually the first to fold. Approach Keep quiet! Stay silent after you’ve stated your price. Do not offer explanations, or stammer – you may only giving them material that can be used against you. Silence is also a weapon you can use. 92
  93. 93. Handling Common Adversarial Tactics - 12 The “Broken Record Prospects may sometimes bombard you with concerns, demands, budgets, limitations, or expectations. Approach Follow the client and be a “broken record” yourself - ask lots of questions until you receive satisfactory answers. Acknowledge their concerns but call them out for not answering to your satisfaction. E.g. “Your concern about ABC is valid, but you still haven’t answered my question. I’m here to help you, but it seems you either don’t know the answer or don’t want to tell me. Let’s try to resolve this so we can move on.” 93
  94. 94. Handling Common Adversarial Tactics - 13 Using the “Nibble” Prospects may try to get last-minute concessions. Approach Do not drop your guard towards the end of the negotiation when you almost have a deal. Don’t let that the joy of thinking that the deal is done make you agree to a concession – even if it seems very small. Keep this question in mind: “What impact will this have on my profitability and future deals?” 94
  95. 95. Conclusion Negotiation is Unavoidable Most issues faced during the negotiation process can be handled through clear communication Adopt ‘Principled Negotiation’ for mutually beneficial negotiations View the interaction as a long-term relationship, and not a one-time transaction Decline anything that is best alternative to a negotiated agreement (BATNA) Know when to walk away – unreasonable/unprofitable demands and intentional adversarial tactics 95
  96. 96. Sales Follow-Up Jump start pack – 4
  97. 97. Why is sales follow up important? 97 Industry statistics suggest that only 2% (or 1 in 50) deals are struck in the first meeting Prospects need time to develop a certain level of trust and be convinced that you meet their requirements A strategic and optimized sales follow-up process is important to get the outcomes you want when pursuing a prospect
  98. 98. When to follow up and how? 98 After the Initial Contact After Formally Making the Pitch After Closing the Sale Follow - Up When to follow up?
  99. 99. When to follow up and how? 99 After the Initial Contact  Industry experts say, 80% of sales happen after at least five follow-ups; after initial contact, send follow-up emails/or make calls at strategic times  Anticipate and be prepared to handle the typical objections your prospect may have, to move forward in the process After Formally Making the Pitch  Appreciate the lead, recognize and restate their pain points, answer any questions that surfaced during the meeting and end your follow-up with a call-to-action After Closing the Sale  Follow up to build and maintain long term relationships  Use this approach: keep a schedule of when to follow up, choose an appropriate method (decide between face to face, phone or email), reiterate your appreciation and actively ask about any concerns the customer has. How to follow up?
  100. 100. How often to follow up? 100 Ideally, keep following up as many times as necessary until you get a response If you are reaching out completely cold, i.e. have never had any interaction with the other person, follow up a maximum of six times If you’ve already had some kind of interaction with the lead but the interaction was not a clear, definite NO, then follow up as long as it takes to get a response If during the process, someone says they are not interested, leave them alone
  101. 101. Sales follow up: tips 101 Schedule and Automate Follow-Ups: Schedule your messages - use CRM or email productivity tools to compose and schedule emails to send at a later date Keep emails Crisp and Short: Brief, to the point emails are more likely to get you a response Back up your Claims: Back up your statements with a convincing metric, result or customer testimonial Don’t Automate Email Content: Refer to templates but don’t blindly follow them, or all your emails will look the same and will lack customization – customers can often tell a “templatized” email. Avoid Bland Statements: Be direct, referencing to the lead’s pain point and the solution you offer Stay Human: Treat the lead with the same understanding and respect as you have for friends, colleagues and acquaintances
  102. 102. 102 Copyright © 2020 by Baachu, Baskar Sundaram All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of certain other noncommercial uses permitted by copyright law. For permission requests, write to the publisher, addressed “Attention: Legal,” at the address below. Baachu Sussex Innovation, No.1 Croydon, 12-16 Addiscombe Rd, Croydon CR0 0XT www.baachuscribble.com Disclaimer While an effort is made to use the most accurate available information, Baachu does not guarantee that the information shared is always current. Baachu does not warrant or make any representations as to the content, accuracy or completeness of the information, text, graphics, links and other items contained on its printed material and web pages.

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