CHAPTER 8
Negotiating the Close

PHONE SALES CHALLENGE – Mandy, who sells corporate meeting services for an upscale resort in the mountains of western Colorado, had this question: “I lost a huge sale with a national account. My boss said that I oversold, missed the close signal, and blew the sale. How can you oversell?”

You will not have the customer “with you” at the close unless you have been “with” him or her during your entire call. As long as you are talking away, rattling off a list of benefits or awards your company has won, you are not guiding the sales conversation. You may, in fact, be delivering a solo performance to an audience that has already left the room! Unless you keep your customer involved by asking questions throughout the sales conversation, you won’t know what hot buttons to home in on. Also, news flash, the customer isn’t going to interrupt your spirited oratory to say, “Excuse me, I’d like to buy now, so will you kindly shut up?”

The lack of two-way involvement makes the close for so many salespeople just a shot in the dark, an unsupported guess, with all the stress and uncertainty that guessing creates. Let’s look at some examples of ineffective close statements and see where they led:

CUSTOMER: How soon could we get delivery?

SALESPERSON: Sarah, by the way, I just wanted you to know that before we take your order, we’ll need to run a credit check on your firm. That’s going to take about twenty-four hours.

CUSTOMER: You know, I don’t really need to make that decision now. Never mind.

Hmmm. There’s an unhappy outcome. When the customer gives you a close message, you close! You certainly don’t throw obstacles in the way. This poor salesperson has just told the customer that her firm’s credit is in doubt and that the sale is on hold for a full day. Now let’s look at another close:

CUSTOMER: I really like your warranty plan as well as your three-day delivery. What would the cost be?

SALESPERSON: Darryl, I know cost is a concern for you. What do you want to spend?

Bad call! Instead of answering the customer’s question and moving quickly toward the close, this salesperson has answered a question with a question. That can sound evasive and suggest that there might be a problem with the price.

The salesperson’s question was also poorly phrased. “Spend” is a bad word to use with the customer. No one likes to feel they are spending, but that they are “investing” in a solution. Okay, let’s look at one more example:

CUSTOMER: Yes, I can see where this might work well for us.

SALESPERSON: Great! Can you have a check ready for us this afternoon?

CUSTOMER: This afternoon? I’m afraid not. We’ll just have to look at this later.

Depending on what is being sold, asking for a check this afternoon can be an acceptable request or it can be considered pushy. In this situation it was obvious that the customer had no idea that immediate payment would be required. Payment may not be a problem, but there could be approvals and procedures involved that would require more time before the check could be cut.

Again, this approach depends on the type of product or service you are selling. Getting the money is certainly the goal, but often the difference between closing a sale and not closing it is being aware of what your customers’ procedures are for payment. Realistic requests can cement a close; requests that surprise or trouble a customer can shut it down. A better way may have been for the salesperson to explain to the customer that, “To secure an implementation date, we’ll need a deposit of X amount by the twelfth. Will that work for you?” Or to say, “We’ll need a deposit to get started on the project. When can we have it?”

Sales, as a profession, often attracts people who love the rush and high of the close, the final culmination of prospecting, planning, and managing the selling process. This is a good thing as long as the customer is left with the same excitement about the purchase decision after he or she is no longer on the phone with you, as long as the customer also feels satisfied with the transaction. The close does not have to be stressful or pressured; instead, it can be the natural result of a partnership between you and the customer that serves your goal (the purchase decision) and meets the customer’s needs (a solution).

Set Up the Close

From the moment you plan to call a customer, you should have strategized how you are going to set up your close. But it is in the phone conversation itself that you can take steps to ensuring a positive outcome by using the feature → benefit → check-in process (F-B-C). The check-in process is the way you find out how the customer truly feels about what you have just said, and you learn the significance of each feature to the client. It is the part of your presentation that allows you to confirm the elements that will lead you to the close.

When using the F-B-C formula of presenting, visualize a club sandwich. You know, first a slice of bread, then some meat, a vegetable, then repeat. It’s the same as when you are using the F-B-C process. The first slice of bread on top is the “feature.” The meat is the “benefit,” and the veggie is the “check-in.” Then, another slice of bread, another feature, and continue until you have built yourself, and your customer, a delectable sandwich.

By using this process of presenting, you ensure that the customer stays involved in the call, you know what they want, and there isn’t too much presenting, which can provide the customer with an opportunity to check out on the call.

AVOID DANGLING FEATURES

As a professional salesperson you know all about features and benefits, right? So you would never leave a dangling feature—mentioning a feature without immediately explaining its benefit—would you? Of course not. Salespeople who just throw out features (or benefits or specs) are not laying the proper groundwork for a close.

A feature is a fact, such as: “We have 24/7 customer service,” or “Our company has won nine product excellence awards,” or “We deliver to your doorstep within twenty-four hours.” Any feature may represent a benefit to most of your customers. But since customers usually aren’t listening as closely as we’d like on the other end of the phone, it’s critical to follow your presentation of each feature with its specific benefit (or benefits) to this particular customer.

INCLUDE A BENEFIT STATEMENT

There are basically only five benefits in the business world, regardless of the good or service you are selling:

1. Saves time.

2. Saves money.

3. Increases revenue.

4. Reduces stress.

5. Improves productivity.

While there might be specifics related to the particular industry, such as reducing head count or handling waste, ultimately they can all be translated into one of these five benefits.

When presenting a feature to a customer, include a benefit statement and resist the urge to talk too much. It’s easy for a customer to get lost and tune out.

Also, every time you mention a benefit to your customer, include a phrase such as: “And what this means to you is …” or “And the benefit to you is …” or “What you’ll get out of this is …”

In selling to resellers, however, you have to use a two-layer approach for stating benefits. For example, if an original equipment manufacturer (OEM) makes cell phones for a cellular service company, the company has two levels of needs that must be satisfied. The first level of need is the direct operational cost saving of the item. If you are selling a scratchproof plastic for the cover of the cell phone, the benefit you offer is that it is both inexpensive and easy to fabricate. The OEM’s second level of need is a market advantage, and the benefit you offer is that the scratchproof case is something the reseller’s customers will appreciate.

A true sales pro will recognize and capitalize on the opportunity to meet a customer’s two levels of need, thereby cementing the benefit advantages and making it easier for the customer to buy. To return to the example above, by building a bridge between the OEM’s operational expense (a cost saving) and the end-user’s advantage (a scratchproof case), you have set up an effective close.

CHECK IN WITH THE CUSTOMER

In face-to-face sales calls, you have the luxury of being able to read the nonverbal cues, to see what benefits have hit home. Over the phone, it may seem impossible to know what the customer is really thinking because you won’t always get an audible reaction. The way to find out what the customer is thinking is to “check in” by asking questions during the presentation portion of your call and immediately after each small amount of information you provide. Checking in allows you to determine the customer’s acceptance level, to learn how the customer truly feels about what you have just said, and to gauge the significance of that particular feature in the customer’s mind. This interactive approach also keeps the customer with you during the call and makes it far less likely and far more difficult for him or her to drift away from the conversation.

You can check in with a customer using questions as simple and straightforward as:

“How do you feel about that?”

“When can you use this to your advantage?”

“How important is that to you on a scale of one to ten?”

If the customer’s response to the benefit is positive, you have a hot button to note (do jot it down). The customer’s response might even signal an opportunity for you to close. The result of your check-in tells you what your next step should be. When you frame your presentation in this way, you set yourself up for success by eliminating objections while gaining interaction and buy-in.

If, on the other hand, the customer’s answer to your question is negative, you have learned that the feature and benefit are not important to this particular customer. Then move on! Even if, in your experience, they are important to all other customers, your only concern should be the customer in this call. Work harder at uncovering matches, rather than dogging the issue to try to convince a customer. If you make the situation adversarial by hanging on, the result can be a lost sale.

Remember F-B-C: feature → benefit → check-in!

If you get all positives, you can go to a close at any time, often without any objections whatsoever.

Eliminate Buyer Anxiety

Whatever customers buy from you—whether it is computer equipment or maintenance products—they feel accountable for their purchase. If a buyer purchases a computer system that fails to perform up to standards or cleaning supplies that have an offensive odor, they fear some sort of reprisal for a bad decision: loss of respect, ridicule, or even a reprimand. That is part of the customers’ price considerations—not just the dollar expense, but also the professional expense.

The professional salesperson understands the total cost that the customer is considering. This is:

total cost to customer = dollar investment + time + risk In other words, by eliminating the buyer’s anxiety, you ensure that there won’t be excessive returns or afterthought cancellations, both of which cost you money in short-term business and, even more important, in long-term dollars. Using a process format to guide the sales cycle ensures that the sale will stick.

Overcoming the voiced objections is straightforward, but this perceived risk element is something you may have to surmise or uncover on your own. You won’t be able to see a concerned expression on your prospect’s face over the phone, so listen closely to the customer’s tone and/or silence to help you strategize your next move.

ANTICIPATE PERSONALITY AND RISK

Taking into account your customer’s personality style and perceived risk will give you clues to possible close opportunities. No matter how many hot buttons you hit or objections you overcome in the conversation, you still have to listen for stress points. Until those have subsided, no sale!

The Precise Customer. Since the Precise Customer is generally overly cautious, is fact-oriented, and avoids change, any lack of preparedness on your part or absence of data will cause this customer’s risk meter to jump. Ps are extremely risk averse, but often respected for their concern with informational detail. Although often not the final decision maker, the P’s input will be regarded with seriousness and can quickly kill a deal if negative. Precise Customers especially enjoy being perceived as the expert. Thus, making a mistake and losing the esteem of colleagues would be too high a price for a P to pay. The phone is the perfect medium for handling Ps because they are more interested in data than in knowing you anyway.

Risk-Management Strategy. Make certain that the P has a load of data, such as product samples, white papers, demos, third-party testimonials, financial data, articles from trade journals, test results, and anything else you can provide when you make your call. If the P is convinced of your product’s merit, he or she will sell for you to the decision maker. They will go about this by digging in their heels and swearing up and down that the decision they’ve researched is indeed, the correct one. In group decision-making meetings, Ps are not necessarily the most popular, but their opinions are well respected.

The Energized Customer. The Energized Customer is emotional and can buy in the heat of the moment on impulse. So, at first glance, the E may seem to be a risk taker. The good news is that the E might change quickly from a competitor’s service to yours. This can work for or against you; buyer’s remorse is no stranger to the E because of this excited impulsivity.

Thus, the professional risk for the E is the potential to be thought foolish by the boss or coworkers. With jobs as precarious as they are these days, the Energized Customer may even fear losing a job if the decision is disastrously wrong. For this reason, Es may bring a coworker or second decision maker into the situation—generally someone with a different personality style. Buying because it “felt right” may have gotten your E customer into real trouble at some point in the past.

Risk-Management Strategy. Get excited along with the E; let them hear it in your voice, and show them that their decision will make them look good. Deepen the relationship with regular follow-up contacts, so that you become a trusted partner. When a third party is brought in, you can likely assume that the E has already decided in your favor. So, when you talk to this third party, it might be a good idea to have the E, whom you’ve already convinced, on a conference call. Your job will be to handle the other person and to reassure the E that the decision is a good one and that he or she will personally benefit.

Also, remember Energized Customers lose things, so always have an extra copy of the agreement in a brightly colored organizational folder to send as a follow-up to your call, and email messages with backup data in case you need to resend information and to assist this E in keeping track of your “stuff.” With this customer, it’s a good idea to always blind-copy yourself on anything you send—then it’s right there to be sent out again if necessary. Note: This also gives you a legitimate excuse to make a call back to the E to ensure that he or she has received what you have sent. Use this call-back to reiterate the solidness of the product and to appeal to the E’s real motivator— recognition.

The Assured Customer. Since Assured Customers see themselves as innovators and risk takers, they may appear to have no buyer anxiety. Truly, they generally only fear being bested in a deal—a major blow to an A. An A who finds no room to negotiate will feel this is too confining and may walk away from a deal.

A customers, though, are often politically motivated in their organization. They may put you on speakerphone if someone important is in their office when you call. If their anxiety level is high, they may become arrogant on the phone, and you can hear that in the A’s voice. Just remember, the price of the sale for the A will include career impact as well. Assured decision makers may love conflict and negotiating with you, but probably would chafe at the possibility of a bad purchase costing them politically. So make them look good.

Risk-Management Strategy. Remind the A often that he or she is getting a great deal. Be prepared to negotiate and not necessarily have the upper hand. You may want to hold something back at the beginning of a negotiation in order to present it as a freebie later. When the Assured Customer makes a decision, it may be marked only with a terse “okay.” Don’t talk too much during the close, or you might cause the A to rethink the wisdom of the decision. He or she is ready to move on; you should be, too.

The Kind Customer. Kind Customers fear confrontation, negotiation, and risk. They would walk miles out of their way to avoid these if necessary. Discord and the prospect of someone’s feelings being hurt by their actions are almost painful. They are anxious not to put anyone else in a difficult situation. They will buy a particular car just for its no-haggle policy. As young people, Ks were very naive and trusting, but if they have been taken advantage of enough times, they will see every deal as risky. Sadly, they begin to doubt their judgment, and they fear making a mistake.

Because of this, the K customer, like the E customer, will probably bring in a partner or a committee as protective armor for the decision—generally a P, who will slow the process, or an A, who will act as a hard-nosed negotiator.

Risk-Management Strategy. Slow down! You will have to earn the trust of the K unless you want all dealings with him or her to be group decisions. Remember to use your voice in a more supportive and soothing way, rather than in a crisp and direct style. Walk the K through the closing process to make it easier for him or her to buy.

For example, say:

“Larry, it sounds like our software is right for your application based on what you told me. I can show you how easily it can be implemented in your department.”

Paint the picture of satisfaction and ease of transition after the sale. List all the steps:

“First our systems designer will go over the compatibility issues; then we’ll plan the installation, which we can do during your regular shutdown; and, finally we’ll do the training—at our expense. We’ll have your team up and running within six to eight weeks.”

Show the K customer that the decision is a safe one. Explain and demonstrate with a detailed plan, to prepare for alleviating any potential snags. Support them in their decision.

Ask for the Business

Closing the business requires asking for the order. Customers by nature will not say, “I am choosing you for this project.” They will, however, give you an invitation or a clue when they want you to ask for the close. Remember, if you have qualified correctly and established a good consultative relationship, you can close at any time during the process. All you need is enough “yes” responses on your check-ins. Listen for the tone of the “yes” response as well; make sure it’s a “yes” of assent, not just to get you off the phone.

When a customer says any of the following comments, go for your close:

“That sounds good.”

“I like the ideas that you’re sharing.”

“Maybe we need a change.”

“This is the best solution I’ve seen so far.”

You will still need to ask for the business, though, in order to get it! So, you need to respond with one of the following statements:

“It sounds like we have the solution for you. Are you ready to place the order?”

“Based on what you’ve told me, we have a great match. Can we get started on the agreement?”

“Sounds like you are ready to go. When do you want to take delivery?”

“I like what you’re telling me. What do you need from me to get going on the implementation?”

The customer may be ready to buy, but you can still expect the possibility of negotiating a few of the final details during the phone call.

REENGAGING AFTER “NOT NOW”

When you meet resistance with a customer response like, “We’re not really ready to do that now,” you can reopen the conversation by directing the focus back on the customer with a follow-up question. Try something along the lines of,

“Oh, then tell me your expectation for delivery of the new line to your distributor.”

When the customer has explained how much pressure they are under—for instance, to meet their deadlines—you can then back into the close with,

“In that case, it sounds as if to meet your (note voice emphasis here) deliverables target date, you’ll have to have a new system in place within the next thirty days. Does that make sense to you?”

By adopting this approach you have taken the heat off the customer’s need to make a decision and fanned the flames of his or her own pressures, making your solution a relief. You have closed in a more natural and responsive way in the customer’s mind so that your product or service is the perfect choice.

Negotiate: Carve Out the Details

The rush that a salesperson craves and relishes can occur prematurely. Doing the happy dance should be saved for the signature, the purchase order, or the delivery date agreement. A customer’s “yes” often only means “I agree with you in principle— ifwe can work out the details.” In business-to-business selling particularly, you can have two versions of a “sale.” One is the instant sale, in which an immediate exchange (or verbal promise) of money with an equally instantaneous shipment of product or appointment for service occurs. The other is the contract sale, which will likely require an additional follow-up call after a proposal or contract is sent.

Any salesperson can likely tell a story about an agreement secured on the phone that somehow fell apart during the final contract process. Just a few basics about negotiating may help cement that sale.

First: Is it a negotiation? You might think you are negotiating details of a close, when actually you are still meeting objections. You may not discover there is any impediment to the sale until you mention faxing the contract, emailing the proposal, or setting the installation date. When you make the follow-up call after the contract or proposal is sent, then you may indeed be in a negotiation.

Think of it this way. You might agree wholeheartedly that a Porsche Cayenne would meet all your needs for comfort, drivability, and passenger-hauling utility. You may love the color and believe every advantage the salesperson pointed out and you agree 100 percent with the general superiority of Porsche workmanship and service. But when the salesperson begins to put everything on paper and you find that the car you want has to be shipped from Canada and will take three weeks, the financing interest rate is higher than you had anticipated, and your state taxes luxury cars at a higher rate, suddenly the entire situation looks different.

Negotiating on the phone, especially in complex selling situations, is best supported by follow-ups to ensure the sale. Buyer’s remorse or even legitimate changes in circumstances can derail a close that has not been worked through completely.

Second: What are you really negotiating? If you are reasonably sure you are through with the objections, then you have to clarify what you’re actually negotiating. If your company is in a position to offer flexibility on some of the details of the sale, a little “good news” (faster delivery date, extended service contract, or the like) could go a long way toward getting concessions from the customer on payment times or even a larger contract or order.

Be cautious here. In the push to pin down all the details, be very careful to promise only what you are sure you can deliver for any kind of exchange of value. Remember, what you are agreeing to will be in the contract. If the customer service end of the business (tech support, warranty service, etc.) truly can’t do what you are offering, then you could be shooting yourself in the foot where future business is concerned. Be real!

Third: Ask for what you want. At our local pizza delivery location, the order takers are told not to offer any discounts unless asked, but if someone asks, discounts are routinely available. Asking is just as important for salespeople. When you are going over the proposal details, don’t forget to propose!

If you have established the kind of credibility that a solid consultative salesperson sets up, you should be able to pose alternatives to the customer that will steer him or her in the direction you would choose. For example,

“Adrian, as we put together the details of this network, you’ve looked at the 400 count on the laptops, but you do have the alternative of desktops for less money per unit. This will allow you to add on another server. Why don’t I put figures in for both, but for your time frame and load, how do you feel about going with the desktop and extra server option? That adds only $250 and gives you another server. What are your thoughts about that?”

Finally, create hard copy of the terms of the agreement, even prior to having the lawyers draw up the contract. Then, create a pdf file of your document and email it, or even offer a courier or special pickup. Make the follow-up your job, not the customer’s. Sometimes—more often than we’d like to acknowledge—the customer thinks he or she heard something entirely different on the phone from what appears in the written proposal or contract. Don’t leave that possibility sitting out there.

Get the paperwork to the customer the day of the phone agreement if at all possible and check to confirm these are indeed the terms they think they agreed to. Customers often forget exactly what was said. If you have to make changes, you might be in a negotiation again, or there could just have been a lack of understanding. Whichever the case, send the revised version (revised and emailed while you are on the phone with the customer) and gain agreement that the terms and implementation details are the same that the customer agreed to.

NEGOTIATE BY PERSONALITY

Each customer personality type approaches the negotiation stage in a different way, as you’ll see in the following descriptions.

The Precise Customer. The Precise Customer is motivated by details, details, and more details! The P likes to have a recognizable structure in the negotiation, with everything buttoned up. He or she will be put off by any last-minute surprises. Remember also that the P will want everything in writing!

The Energized Customer. The Energized Customer is motivated by impulse and the desire to move on. If Es feel they have influenced you to change your mind or concede, they have succeeded in the negotiation.

The Assured Customer. The Assured Customer is motivated by the desire to reach one goal in the outcome. The A must reach that goal or feel like he or she has lost. Avoid the win/win approach, because if you “win” at all, this customer has “lost”.

The Kind Customer. The Kind Customer is motivated by the desire to ensure that everyone is happy with the outcome. The K takes a long time to make a decision and is cautious about the effects on everyone involved.

Seal the Close

To close the deal, no matter which personality type you are dealing with, say something immediately after the customer says “yes,” confirming that you heard a commitment from him or her. This is a very important part of managing the continuation of the sale (oh yes, you’re not done yet).

Confirm and celebrate the commitment. As you seal, you should celebrate with the customer, by saying effusively:

“Great!”

“That’s terrific news!”

“We’ll ship this afternoon.”

“Thank you so much!”

“I know management will be pleased.”

“Wonderful! We can’t wait to get started on the project!”

Voice and tone are critical when you seal a close with a statement like one of these. For some reason, although many salespeople get excited internally when they close a sale, some don’t let the customer hear it. Show your pleasure verbally right over the phone.

SAY “THANK YOU.”

Sealing the close verbally by affirming the customer’s decision and showing your appreciation with a sincere “thank you” is important. Failing to do so after securing a sale can give the customer pause. If he or she does not hear your gratitude as well as your enthusiasm, your customer may begin to question the decision almost immediately; this is known as “buyer’s remorse.”

Then follow up, by fax or paper, with a handwritten thank-you note with the contract attached. Or send a note on a card, personalized for your business. It might say something along the lines of, “I’m delighted to have your business, and I look forward to working with you.”

If you send the contract and thank-you note by mail, some sort of small gift might be included as well: a specialty product from your company, a mug, T-shirt, nice pen, or something personalized. Other gifts that might be appropriate include cookies, chocolates with the company name on them, office products, or small samples. Whether you send a gift or not, be sure to send the handwritten note to personalize the thank-you. (Note: When selling to many government entities, they may have ethics codes that do not allow receipt of various gifts. Make sure you know what the rules are so as not to offend a customer.)

INFORM YOUR CUSTOMER OF THE NEXT STEPS

Remember to let your customers know that you are acting on their decision and initiating the delivery process. Keeping up the momentum after the decision is crucial to sealing the close. Customers aren’t always certain that the sale is important to you if you fail to commit to the critical next steps in the sale.

Here are some examples of what you can say:

“I’m delighted that you’ve decided to go with our company. Let’s go ahead and prepare for the next step of getting the order over to our shipping department.”

“Now that we are set to go with the process, we can schedule our consultants to get on-site at your facility by the seventeenth. Will that work out?”

“That’s great we’ll be working together. Let’s plan on our next steps of …”

GET STARTED ON THE INITIAL DELIVERY

Get some part of the purchase sent to the customer right away to ensure that the close has progressed. This delivery may include:

The display rack that goes with the product.

The operation manuals.

Promotional literature, brochures, and samples for resellers.

Several of the products (if you can’t send all 500 they have purchased, send three).

Cases for the equipment installation.

Even if it is just the mats that go under the office chairs or the warranty certificates, whatever you send is delivery on the customer’s decision and further seals the deal, making it unlikely that your customer will back out.

The Payoff

The anxiety of both the buyer and salesperson at the close can be virtually eliminated with a solid presentation using your F-B-C format. The close is the natural result of a harmonious, transactional conversation. Salespeople who are tuned in to the personality type and the real needs of customers close the business. They create solid matches and sales that stick long after they have hung up the phone. Long-term sales relationships create profit for your company while they solve problems for your customers. The close is where you get to cash in on your phone-selling strategy.

Let’s see how Mandy is coming along with her sale:

MANDY: Sarah, it sounds like you are ready to move forward. When would you like us to ship the order?

The close is going smoothly because Mandy has acknowledged the customer’s reply with something positive. Mandy is also following up with the next step in the closing process: securing the order by asking a question about delivery:

MANDY: Sarah, you seem to be leaning toward using our services. When do you want to get started?

Good. Now Mandy and the customer are in a dialogue about setting a date and moving forward. Let’s see where Mandy goes from here:

MANDY: Sarah, you said others are involved in the decision. What’s the best way to get them all on the phone together for a conference call?

Excellent. Mandy is asking for a follow-up appointment and moving forward in the sale! That works.