Know the 6 main negotiation techniques and increase your business sales – WAU
Having efficient negotiation techniques can be the difference between a successful sale and a missed one. Therefore, knowing methods to plan and execute the approach to the customer must be seen as an investment to boost the results of your business.
Leveraging business sales is a goal that is always on the professional horizon of a manager. Success in achieving this goal depends on a number of factors.
Points such as product quality and price, persona motivations and sales team skills are some of the main influences.
The good news is that, with modern Digital Marketing techniques, it is possible to segment the audience and deal only with qualified leads, which increases the chances of conversion. Still, given the level of competitiveness in most markets, knowing efficient methods is indispensable for a good salesperson.
With that in mind, we created this list with the best negotiation techniques. Throughout the text, we will pass on 6 powerful tips for you to boost your company’s sales. Check out!
1 . Invest in preparation
If you know the daily life of a company, you know that nothing happens by chance or pure luck. Absolutely all decisions and processes involve well-structured planning as a background, or they can end in frustration. Therefore, the first tip to boost sales is to pay attention to preparation.
In addition to being the first item of the six we’ll cover in this post, preparation should also be the first step in your strategy to approach a customer. If it is a lead that has been worked on by the marketing team, you must already have access to fundamental data to run the negotiation.
Information, however, is never too much. Go further and seek to fully understand the customer’s characteristics. If the business is a B2B transaction, seek to learn more about the company’s area of operation, competitive advantages and challenges. These details can be used to your advantage during conversations.
Here, it is important to remember the relevance of pass an image of trust to the other party. Therefore, review all the sales material and make sure you have details about your solution at the tip of the tongue, in order to avoid hesitations when negotiating.
2 . Be strategic in the opening phase
The opening stage concerns the beginning of conversations that will be decisive for the consumer’s decision making. To increase the chances of success, it is important that you treat each trade as unique, creating a specific strategy for each approach.
If in the opening phase you must gather as much data as possible about the customer’s characteristics and problems, now is the time to turn them into action. The most basic example of this idea is the use of the first name of the person you are dealing with, in order to demonstrate its importance to you.
From that, develop a kind of plan to conduct the conversations. If you know of a difficulty faced by the client’s company, it is worth quoting it in a subtle way, in order to draw attention to the need to purchase your solution.
The opening phase, in many cases, generates the first personal impression that the consumer has of the seller. That said, introduce yourself in a professional manner, use the ideas of personal marketing and apply language consistent with the persona.
3. Discover the SPIN methodology
There is no fixed roadmap for questions asked in a negotiation. The SPIN methodology, however, is a good way to structure the elaboration of the questions.
The name of this negotiation technique is a combination of the initial letters of the four elements considered essential: situation, problem, implication and need-payoff (situation, problem, implication and need). Next, we’ll talk more about each one and give examples of questions that can be asked.
The first questions should be focused on learning about the client’s situation. The intention is to understand the biggest goals him to, in the future, relate them to his solution. Check out examples:
- What is your main goal?
- What have you been doing to achieve that goal?
- Are you satisfied with the results so far?
- How much do you invest in these activities?
Here, the focus is on the obstacles faced by the potential customer in the search for the objective evidenced in the previous questions. At this stage, it is extremely important that the salesperson be sure to insist on questions, always maintaining, of course, a respectful tone.
If you ask the right questions, it is possible that, in addition to the problems you already know, the end up identifying obstacles that he did not know. See examples:
- How close are you to reaching your goals?
- What is your main difficulty in reaching them?
- If you found that your approach was not being effective, what would you do to change things?
- Do you consider yourself fully qualified to deal with this problem?
The implication phase is aimed at make the lead understand the consequences of not solving the problem presented in the previous topic. In the end, you can signal that the need to have an efficient solution outweighs the expenses necessary to acquire it. The following are some sample questions:
- Has this problem already caused difficulties for the company?
- What happens if you don’t resolve it within a specified time?
- How much have you invested to deal with the situation?
- How much have you failed to bill because of this obstacle?
The last step of the SPIN methodology, which is one of the most well-known and efficient sales techniques on the market, are issues related to necessity. Here, the objective is to make the product seen as an investment worth it for the benefits it provides. Some sample questions are:
- Do you believe there is room to improve this area in your company?
- If you invest in our solution, how do you imagine your business will be impacted?
- Do you believe that our product would facilitate the search for the goal?
- What would it be like if the problem you reported was eliminated?
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4. Use the OU technique
We know that one of the most effective ways to encourage a purchase is to create a sense of urgency. This is the centerpiece of this method. The idea is to limit the customer’s options, so that he can produce a more agile and favorable response to your company’s objective.
It is worth mentioning that the or technique can be introduced in any type of question that happens within the sales process.
Imagine, for example, that you want to set up a meeting with a lead, but he is always dodging. In this scenario, instead of asking for the best day to hold the meeting, you can approach it now with two pre-selected options: “Do you want to meet tomorrow morning or Friday afternoon?”
Another example can be given in a scenario where there is more than one call option. By asking if the person liked a product, you encourage them to reflect more on the subject, which can delay the decision. Instead, structure the question as follows: do you prefer product x or product y?
In this case, the question will create a sense of urgency in the consumer, who will find it easier to express his opinion and direct the decision.
5. Talk less, listen more
This may seem like a simple tip, but it is something of enormous importance. If you prepared yourself for the negotiation, collected data about the client and thought about the questions to be asked, it is common for you to arrive in the conversation with a lot to talk about.
However, it is necessary to maintain this momentum. Let the other party take the lead in the conversation, leaving more time for you to ask questions and capture useful information. In addition, this practice creates a good impression on the customer, who tends to feel closer to a salesperson who listens to him.
Of course, there is no magic formula. Still, ideally, you should spend approximately 80% of the time listening and only 20% talking.
6. Know the different types of customers
It is not new that knowing the profile of your target audience is crucial to develop the approach strategy. At the time of negotiation, however, you need to know the person you are dealing with on a more personal level. This is because each individual may have peculiarities that influence the interaction.
Thus, it is important to carefully observe the way they act in order to develop efficient ways of dealing with the client. One of the most common profiles is the so-called “Negotiating customer”. He is always looking for ways to get the most out of the transaction.
When dealing with a negotiator, you should keep in mind that he will only close a deal if you are 100% convinced of the solution’s effectiveness and its cost-benefit ratio. So, be ready to hear what he has to say and, if applicable, make some concessions.
Another common type is “Undecided customer”. Dealing with this profile is usually more stressful, but the salesperson can take the situation to the letter if he focuses less on the item itself and more on the person’s needs. In the end, he must feel secure with the information provided by you so that the deal is closed.
Different types of consumers are common in all sectors of the market. It is up to the marketing and sales departments to know their personal characteristics and invest in ways to make them feel safe and confident in the product.
Regardless of the qualification of the professionals involved, some cases can be much more challenging than others. Precisely for this reason, it is essential to have knowledge about the most efficient negotiation techniques. The wider the range of options, the greater the chance of finding an efficient approach.
So, ready to apply these tips and boost your company’s success rate? Want to know more about how to act in challenging sales? Download this free ebook and stay on top of the best practices of the sales process!