Ch 14- closing the sale

Trial order close

-orders of less than normal size just to have prospect try it out -Oftentimes, place equipment at no charge -sometimes called the puppy dog close, for who can return the puppy -Expensive way to do business

What is a close

A close is a question, declariation, or action by the salesppl designed to secure a positive buyer response, ie an order -Its purpose is to provide a yes/no answer, an opportunity to buy, convert a prospect into a customer

Recognize closing cues

-closing cue (buying signals) - an indication, or form of feedback, either verbal or nonverbal, that a prospect is preparing to make a buying decision -many are subtle -empathy helps detect them

Strategies for handling acceptance

Goal: to build a long term relationship. Often the biggest problem is the salesperson talking the buyer out of the sale, ie, continuing to talk after the close can lead to more objections and the loss of the sale 1.Confirm some order point. Express thanks. 2.Reassure the client on their wise choice. 3.Leave something tangible 4.Be accessible 5.End on a relaxed note, but don't initiate further conversation 6.Ask for referrals. 7.Leave immediately. Make a casual exit. 8.Take care of details: delivery, installation, training 9.Follow-up. -"Cognitive dissonance" is possible. Send "thank you" note -Call back if delivery delayed, check if order size needs adjustment, be on hand for installation & training, check on proper billing & paperwork

Guidelines for closing

Strategic planning for close 1. Review possible barriers to close sale 2. Review closing guidelines 3. Prepare several closing methods 4. Plan to ask for the order more than once 5. Practice closing Actions during the close 1. Recognize closing clues 2. Focus on the point of greatest interest 3. Handle tough points early 4. Avoid surprises 5. Keep prospect involved 6. display confidence 7. Accommodate buyers communication style 8. Ask for order more than once

Handling a no

- a no at some point is inevitable -successful reps seek to discover why -closed questions if suspect a hidden objection -is our delivery period too long -have you found other prices more competitive -have you had trouble w/ our co. before? -if no idea, ask polite why, apparently, I've done a poor job of selling our product. Evidently you still have doubts. Could you tell me what they are?

Assumption close

-Assumptive Close - asks for a minor decision, assuming the customer has already decided to buy - When perceived risks are removed and trust has been built -Assumes agreement already reached -Use after all important FABs have been presented and the prospect has responded positively to a trial close -Useful for indecisive types (e.g. Amiables & Analyticals, to lesser extent) -"Which" choice: "Should we deliver Monday or Tuesday?" -"Implicit" choice: "How many do you need?" -"Action" close: "May I use the phone to see if we have any in stock?" -With purchase order....." What is the correct address here?"

Guidelines for closing the sale

-Focus on dominant buying motives - the benefit that generated the greatest # customer interest -Longer selling cycles require multiple commitments -More decision makers are involved -Incremental commitment - gradually moving the customer to total commitment (i.e., closing on a purchase) by gaining cumulative commitment with each sales call -Negotiate the tough points before attempting a close

Guidelines for closing like a badass

-Avoid surprises for customer at close - extra charges, delivery timelines -Tough mindedness - display a high confidence -Ask for order more than once 4-5 times -Clarify the no to get to the yes

Balance sheet close T account

-Draw a T and list pros (Reasons to buy) on one side & cons (reasons not to buy now) on other side -Can embellish by prioritizing and & adding up points or listing pros and letting prospects enumerate cons -Useful with Drivers & Analyticals -Once completed, ask "How do you feel about this?" Reasons to act now -cuts inv costs, process payroll faster, minimal operator training, easy expansion, trade-in on old machine Reasons Not to Act Now -Price $500 higher -Investment in new software

Practice Closing

-Gaining exp. using adaptive selling techniques can result in increased recognition of opportunities and greater effectiveness -Role playing is the best-known way to exp. the feelings that accompany closing, and practice the skills needed to close.

Probability close

-If prospect stalls, the salesperson may respond, "Ms. Prospect, what is the probability in % terms that you and I will be doing business?" -Three Categories of Response: <50%. There are many objections, so start again >50% but <85%. One or a few objections remain. Sales rep should ask what remaining are & resolve >85% but not 100%. Might say, "As it looks like we'll be doing business, why don't we get the ball rolling by ordering now and if you change your mind..." -Good with Amiables

Multiple or alternate choice close

-Multiple Options Close - give the prospect several options to consider and tries to assess the degree of interest in each -Good for price-conscious, transactional buyer -Ask the buyer to choose from 2 or more alternatives. Allows the prospect a preference, provides choice, assumes the customer has desire and conviction to buy. Low risk. Process 1. Choose a low risk decision 2. Review 2 or more alternatives with buyer -Seeks agreement on relatively minor issue, "Would you prefer cash or charge?" "Would you want tinted glass on your Taurus?" -Theory is, it is easier to say yes to small decisions -Good for cooperative Amiables & Analyticals, to lesser extent

Suggestion Close

-Objective is for prospects to accept reps recommendation with little thought -Particularly useful when many difficult choices or when prospect has little experience in buying -Salesperson might say, "Many new home buyers like yourselves have opted for the traditional 2-story, 3-bedroom..." -Good with Analyticals and Expressives

Special concession close

-Special Concession Close - offers the customer something extra for acting immediately -Ask prospect to act now to take advantage of impending event or opportunity soon to end: "If you're interested in this house, I recommend putting in an offer, since there has been a lot of traffic ." -Infers salesperson may not have product/deal to offer for very long -Variation is special inducement close, "If you buy today, we'll include free installation and two-hour operator training." -Be careful, Some customers may be skeptical here -Firmly based in psychology, as the scarcer the item (especially if demanded by others), the more we want it -Good with Expressives

Negotiated close

-Strategy is to keep the door open -Engage in conciliation and request something less that clearly represents concession -Principle of social reciprocity from psychology operates here -Negotiate the tough points before attempting the close

Summarization close

-Summary-of-Benefits Close - involves summarizing the most important buyer benefits, re-emphasizing the key benefits that will help bring about a favourable response -Sales rep presents benefits in summary form -To build momentum, start with benefits with which prospect has shown most interest and mention points that the prospect has agreed to. Valuable where: 1. Presentation has occurred over several sales calls 2. When the prospect needs to justify the purchase to someone else 3. When someone needs help to put the full picture together 4. After a good demonstration -Silence at end carries unspoken imperative to reply -For Drivers & Analyticals

Main reasons for weak closing attempts

1. 55% ask only once 2. 25% no attempt to close 3. 20% Customer takes initiative

closing the sale

1. Ask a closing question 2. Quietly wait for a response 3. Handle objection or recommend order/plan of action, confirm details 4. Get signature 5. Reassure and state follow-up 6. Thank prospect and exit as soon as possible

Needs assessment

1. Ask question(s) - Situation, Problem, Implication, Need 2. Confirm desire to solve problem 3. Select product. 4. Present & demonstrate features, benefits, proof. 5. Trial close

Methods of closing the sale

1. Direct appeal close 2. Summarization 3. Balance Sheet (T-Account) 4. Assumptive 5. Multiple or Alternative Choice 6. Special concession close 7. Impending event close 8. Trial Order 9. Probability 10. Negotiated close

strategies for handling rejection

1. Keep cool, avoid showing disappointment. 2. Maintain good relations. 3. Try again - probe for reasons. 4. Keep communications open. 5. Think about how you would do things differently next time (needs, presentation, objections). 6. Maintain a strong self-concept "You failed to get the order, but you are not a failure"

Closing clues/buying signals

1. Nonverbal Categories -Body movements, physical actions (nodding, touching). -Facial expression (smile, eye twinkle, intensity, upward eye focus) -Tone of voice -Examining product or order form -Starting to figure with pencil or calculator -Consulting with others -Relaxed appearance 2. Verbal Categories -Questions -Recognitions (positive comments) : -"I see, good, what do you think, I always wanted.." -Requirements (agreements, buying conditions) "What type of warranty?" -Prospect agrees to the value of the benefit -Prospect accepts response to objection 3. Silence - prospect has no more questions or concerns

Reasons for problems in closing

1. Poor timing can close too early or too late 2. Needs not fully identified 3. Poorly prepared 4. benefits not clearly communicated 5. Weak presentation. 6. Objections not fully resolved 7. Lack of confidence >>>>>> 8. Fear of rejection >>>>>> poor attitude 9. Anticipation of failure >>>>>> mental block from previous failures.

The approach

1.Introduce yourself/company 2. Establish rapport 3. General benefit 4. Company background 5. Explain reason for needing information. 6. Ask questions: confirm qualify.

Handling objections

1.Listen carefully 2. Acknowledge concern 3. Ask questions, clarify objection 4. Respond with objection handling technique or features, benefits, proof. 5. Trial close, close

Direct close

Direct Appeal Close - involves simply asking for the order in a straightforward manner. Clarity and simplicity. Ask directly for the order. "Can I get your signature on this contract?" Disadvantage is that if they say no, recovery is awkward Can attempt to recover with open question, "Could you explain why you can't buy at this time?" Direct close valuable for prospects who like to make their own decision, like Drivers

Follow up activities

Purpose: To express thanks, determine customer satisfaction, deal with "buyers remorse" (cognitive dissonance) and prevent returns or cancelled orders. -Wrap up all details: delivery, terms, price, credit arrangements, special requests. -Follow through and communicate order status with customer. -Check client's satisfaction - establish a regular Call schedule. -Handle any and all problems promptly

Adapting the sale - adding value

Understand the difference between statements of fact Educate customers Be accurate Know the product's technical specifications Avoid exaggerations about product safety Be familiar with laws regarding warranties Understand your product's capabilities Keep current with design changes Avoid offering untested opinions Never overstep authority Step 5 - close, plan appropriate close methods, recognize close cues, initiate closing methods