The art of closing the sale

Dr. Sanjeev Prashar

WHAT MAKES A GOOD

SALESPERSON?The following are a few key areas to consider when selecting sales

people:         Honesty Most customers report this as a primary trait.          Reliable           Knowledgeable         Psychologically a “ Habitual Wooer” or an individual who

has a compulsive need to win and hold the affection of others.         A problem solver: a state of mind that regards

resistance as a challenge, of course assuming that the resistance is not well founded. 

        High energy level         Self- confidence         Two basic traits- Empathy and Ego drive

• Sales people need to know and identify with the company. Here company history, objectives, lines of authority, policies/ procedures, etc are described. 

• -         Sales people need to know the companies product and services.

• -         Salespeople need to know the companies customers and competitor’s characteristics.

• -         Sales people need to know how to make effective sales presentations.

Sales process • As defined – A sales process is a set

of critical steps that move the customer’s buying process to a favorable outcome – an early exit or an effective win.

A sales methodology is a common set of best practices, methods and tools and procedures that enable the sales team to execute the sales process most effectively in every sales opportunity. This briefing will provide an overview of an appropriate sales process and methodology.

Selling process has six key steps

• PROSPECTING•  INITIAL CONTACT• SALES PRESENTATION• HANDLING OBJECTIONS• CLOSING THE SALE• FOLLOW UP AND SERVICE

AFTER SALE

Pointers which should be followed by the sales

person Continuously improve your skills, learn from others and

stay open to new ideas.      Be sincere about your desire to help the prospect.      Contribute more than just your product. Provide

industry news updates, creative ideas, and business advice as part of the service you offer.

      Be direct with your communication. Beating round the bush only frustrates people.

      Enclose your business card with every letter or note.      Never lie, don’t bad mouth the competition or say

negative things about their clients. Don’t gossip.      Don’t overbook yourself so much that you don’t have

time to listen and be available to your customer for their questions and comments.

•  

PROSPECTING:

• Determine the sales approach and plan your sales calls

• Determine which products and services best suit particular prospect.

• Uncover reasons why you should not pursue some prospects, saving your valuable time and resources.

• Smile - be professional, and take confidence from the fact that you are well-prepared.

• Introduce yourself - first and last name, what your job is and the company you represent, and what the your company does (ensure this is orientated to appeal to the prospect's strategic issues)

• Set the scene - explain the purpose of your visit, familiarize around your prospect not yourself,

• Ask how much time your prospect has and agree a time to finish.

• Ask if it's okay to take notes.• Ask if it's okay to start by asking a few

questions or whether your prospect would prefer a quick overview of your own company first.

INITIAL CONTACT:WHEN THE CUSTOMER INITATES THE CONTACT:• Prospects will visit during normal business

hours if you have a business location. Prospects might also call at odd hours to find out when you are open.

WHEN YOU INITIATE THE CONTACT:One of the most common initial contacts is a

cold call conducted by phone or in person. A cold call refers to a contact made with prospects who have not indicated they desire the call.

• First, determine your objective and the purpose of your call.

• Try to do a little homework before the call .• Send a fax or mail some information prior to the cold call.• Make sure you have all the materials you need at hand. • State your purpose quickly- within 15 seconds •   Get prospects interested by asking questions that

make them link.•       Make statement that build rapport and confidence.•       Use humour-people love to laugh.•       Be sincere.•       Be friendly- people like to buy from people they like.• Keep your eye on the prize-

Turn Cold calls into Warm Prospects

SALES PRESENTATION

• Don’t be afraid to be excited about your product.

• During presentations, focus on the benefits of you products.

• keep the cards handy to make notes as you think of them to add.

• Let prospects talk the 90% of the time.• Limit your choices during a sales

presentation.

HANDLING OBJECTIONS:

• Acknowledge your customer’ position.• Question prospects when they make

statements about why they wont buy.• Restate the objection so the customer

can hear it.• Use open questions to gather

information.• Use "can you tell me about how...“.• 'What...? and 'how...?' are the best words

to use in open questions.

Types of Objections• Three common types of objections are:

1. StoppersStoppers are genuine objections to all or part of the

salesperson’s proposal1. StallsStalls are invalid objections (i.e., excuses)1. Searches

• Searches are requests for more information either from the salesperson, the competition, or both.

Anticipating Objections• Salespeople must be able to anticipate:

– Prospects’ objections and prepare answers before making sales calls

– Questions concerning how the technical aspects of the product/service solution can help prevent the occurrence of problems

– Value improvements

Questioning – Discover the strongest or unique perceived organizational

benefit that would accrue to the prospect from the product/service.

Questioning must also discover how best to develop the sale with the organization

Good empathic questioning also builds relationships, trust and rapport –

Use 'why?' to find out reasons and motives beneath the initial answers given

Maintain good eye-contact, understand, and show that you understand

When you've asked a question, SHUT UP - do not interrupt.

•

CLOSING THE SALE: In modern selling, or even using the

traditional Seven Steps process, every sales person's aim, should be to prepare and conduct the selling process so well, that there are few, if any, objections than there is no need for a close.

The manner in which a sale is concluded depends on the style of the decision-maker –

watch out for the signs: high-achievers are likely to decide very quickly and

may be a little irritated if you leave matters hanging after they've indicated they're happy;

Signals that suggest they are ready to buy:

Asking about availability. Asking specific questions about rates, prices or

affordability. Asking about the features, options, quality,

guarantees or warranties. Asking positive questions about your business. Asking for something to be repeated.• Making statements about problems with previous

vendors. Asking about follow-up service or other products

you carry.  Requesting as sample or asking you to repeat a

demonstration for them or for others in their company or family.

Asking about other satisfied customer

•

Techniques that help prospects make the decision

to buy • Quit talking after you ask a closing question. • Interpret and reflect back to confirm prospect has

understood what was explained.• Use closed questions to qualify and confirm your

understanding.• Offer an added service, such as delivery.• Offer an incentive such as 10% discount on

purchase made now. • When you have all the information you need,

acknowledge the fact and say thanks, then take a few moments to think about, discuss and summaries the key issues/requirements/priorities from your prospect's organizational point of you.

Some closes from the bad old days

The alternative close:For example - "Would you like it delivered next

Tuesday or next Friday?", or "We can do the T50 model in silver, and we have a T52 in white - which one would you prefer?“

The challenge close: I know most men wouldn't be able to buy

something of this value without consulting their wives - do you need to get your wife's permission on this?.." or "Most business people in your position need to refer this kind of decision to their boss, do you need to refer it?"

The ego close: "We generally find that only the people who

appreciate and are prepared to pay for the best quality go for this service - I don't know how you feel about it?..."

The negative close:"I'm sorry but due to the holidays we can't

deliver in the three weeks after the 15th, so we can only do it next week, is that okay?"

The puppy dog close/puppy dog sale: “ “Let me leave it with you and you see how

you get on with it..."

The guilt close:• "Over three years it might seem a lot of money,

but we find that most responsible people decide they simply have no choice but to go for it when it's less than a pound/dollar a day to protect your.../safeguard your..../improve your... (whatever)."

The sympathy close:"I know you have some reservations that we can't

overcome right now, but I've got to admit that I'm pretty desperate for this sale - my manager says he'll sack me if I don't get an order this week, and you're my last chance - I'd be ever so grateful if you'd go ahead - and I promise you we'd be able to sort out the extra features once I speak to our production people..."

The elimination close:"I can see I've not explained this properly - can we

take a moment to go through all the benefits and see which one is holding us back from proceeding?" (At which the sales person lists all the benefits - the positives, and runs through each one to confirm it's not that one which is causing the problem, crossing a line through each as he goes. When he crosses the last one out he can claim that there really seems to be no reason for not going ahead...)

The pro's and con's list: "I can appreciate this is a tough decision - what

normally works is to write down a list of all the pro's and con's - two separate columns - and then we can both see clearly if overall it's the right thing to do..."

The last ditch close:

(Sales person packs case and goes to leave, but stops at the door) "Just one last thing – would you tell me where I went wrong - you see I just know this is right for you, and I feel almost guilty that I've not sold it to you properly, as if I've let you down....."

Don’t give up too soon. Learn to understand prospects buying styles. Some people take longer than others to make a decision.

FOLLOW UP:You have made the sale. Now what? Some sales people believe that follow-up

after the sale is just as important as making the sale. That’s when your relationship with a customer can mature and develop loyalty to your product.

There is no better advertising than a satisfied customer. Good follow-up and service after the sale will definitely:

• Establish and maintain your good reputation.

• Build goodwill between your customers and your business.

• Generate repeat and referral business.

Closing sales technique

A popular myth exists - which is that there are certain techniques that may be used to close a sale, any sale.

• The proper decision-maker must be identified.

• A key element in the early stages of the selling process is the establishment of trust.

• key element is prospects needs.• Wearing the prospect's shoes.

Part II

Sales process

A sales process is a set of critical steps that move the customer’s buying process to a favorable outcome – an early exit

or an effective win.

Selling Process1. Prospecting1. Prospecting

2. Preapproach2. Preapproach

3. Approach3. Approach

4. Presentation4. Presentation

5. Trial Close5. Trial Close

6. Determine objections6. Determine objections

7. Meet objections7. Meet objections

8. Trial close8. Trial close

9. Close9. Close

10. Follow-up10. Follow-up

Pointers which should be followed by the sales

person • Continuously improve your skills, learn from others and stay

open to new ideas.      Be sincere about your desire to help the prospect.      Contribute more than just your product. Provide industry

news updates, creative ideas, and business advice as part of the service you offer.

      Be direct with your communication. Beating round the bush only frustrates people.

      Enclose your business card with every letter or note.      Never lie, don’t bad mouth the competition or say negative

things about their clients. Don’t gossip.      Don’t overbook yourself so much that you don’t have time to

listen and be available to your customer for their questions and comments.

•  

Sales “Marquette-ing” Quote of the Day

“Eighty percent of salespeople refuse to close when the buyer is ready, and many customers are ready to close much earlier than the (sales) rep is.”

- July 1994, Sales and Marketing Management

When to Pop the Question - - Close When the Prospect

is Ready

Answering a Prospect’s Buying Signal Question

with a Question

Reading Buying Signals

• Asks questions – “How much is it?”• Asks another person’s opinion –

“Dave, what do you think of this color?”

• Relaxes and becomes friendly • Pulls out checkbook/wallet/purse• Carefully examines merchandise

Twelve Closing Techniques

Closing phrases and sentences should be carefully worded and memorized. Consider them a “mental storage bank” to be used as they fit a given situation.

Direct

12 Closing Techniques

“May I write up your order?”

Assumptive

12 Closing Techniques

Nonverbal assent given.

Positive Affirmation12 Closing

TechniquesUse short series of questions that

will produce “yes” answers.

"Now Mr. Jones, something interesting about this car is the ability of the body to resist crashes."

"Doesn't that give you piece of mind in knowing that your family will be much safer?" “Yes.”

"Mr. Jones, can you see how this will be a real benefit to you?" “Yes.”

Now you have the customer getting in the habit of saying yes - - at the end of the presentation, it is easy for you to say: "So now Mr. Jones, do you feel this product is what you have been looking for?"

The “OTHER” scenario: Jones says, "No". Don't be put off by this. GO BACK TO YOUR NOTES ON HANDLING OBJECTIONS.

Get Jones to help you - - ask him another question. Example: Ask Jones the question; he answers "NO".

You merely look him in the eye and say, "Really? (pause) Why?". Now you have given him a chance to tell you what's on his mind. Listen carefully to make sure you understand the question, and then restate it back to him. "So you feel that this product innovation won't be of benefit to you because_____________?" Now you put your excellent product knowledge to work and explain how the product feature really will fill his needs.

Then say, "So how does that sound to you now?". If he answers "yes" or "okay", or "fine", you go on with your presentation. If he still

disagrees, you again say, "Really?" (pause) "Why?" and repeat the process until you've gotten to his real objection and you resolve it.

Financial

12 Closing Techniques

“That’s $177 a month. If that is within your budget, we have a deal.”

Emotional

12 Closing Techniques

“The coat fits perfectly and looks so elegant. Are you going to wear it home?”

Standing Room Only

12 Closing Techniques

“This is a one-day sale. Tomorrow, it will cost you fifty dollars more.”

Paired Choice

12 Closing Techniques

“Shall I order it in grey or tan?”

Minor Point

12 Closing Techniques

“Can we deliver this on Tuesday?”

Added Incentive

12 Closing Techniques

“If you buy today, we’ll give you six months free servicing.”

Benefit Summary

12 Closing Techniques

Review all the benefits which the customer has agreed are a value.

Balance Sheet

12 Closing Techniques

Ask the customer to list all the factors for and against buying.

Combination

12 Closing Techniques

Often more than one technique is used in closing the sale.

Some more techniques of closing

• 1-2-3 Close - close with the principle of three. • Adjournment Close - give them time to think. • Affordable Close - ensuring people can afford what you

are selling. • Alternative Close - offering a limited set of choices. • Assumptive Close - acting as if they are ready to decide. • Balance-sheet Close - adding up the pros and the cons. • Best-time Close - emphasize how now is the best time to

buy. • Bonus Close - offer delighter to clinch the deal. • Bracket Close - make three offers - with the target in the

middle

Cont………• Never-the-best-time Close - for customers who are delaying. • No-hassle Close - make it as easy as possible. • Now-or-never Close - to hurry things up. • Ownership Close - act as if they own what you are selling. • Price-promise Close - promise to meet any other price. • Puppy Close - acting cute to invoke sympathy and a nurturing

response. • Quality Close - sell on quality, not on price. • Repetition Close - repeat a closing action several times. • Retrial Close - go back to square one. • Reversal Close - act as if you do not want them to buy the product. • Selective-deafness Close - respond only to what you want to hear. • Shame Close - make not buying shameful. • Standing-room-only Close - show how others are queuing up to buy. • Summary Close - tell them all the things they are going to receive.

THANK YOUTHANK YOU

ART OF CLOSING A SALEART OF CLOSING A SALE

Dr. Sanjeev Prashar Dr. Sanjeev Prashar

ART OF CLOSING A SALEART OF CLOSING A SALE

Dr. Sanjeev Prashar Dr. Sanjeev Prashar

OBJECTIVE OF THE CLOSE

• To persuade the prospect that he should act now and not later, usually in favor of the sales proposition, it aims at converting a desire in to the demand by convincing the prospect in favor of the purchase. If the salesman succeeds in drawing the curtain down the stage of closing he is considered as efficient. Successful closing as a matter of fact provides the tangible results of a sales proposition

• At the stage of closing the, the prospect is converted in to the customer. A lot of self-confidence tact and experience is required for the salesman to close to the sale successfully.

REASONS FOR UNSUCESSFULL

CLOSING

• 1) NEGATIVE ATTITUDE

• 2) INADEQUATE PRESENTATION

• 3) THIRD PARTY INTERUPTION

FEATURES OF SUCCESSFUL CLOSING

•  POSITIVE ATTITUDE

• EFFECTIVE PRESENTATION AND DEMONSTRATION • HOLD THE ATTENTION

•  ALLOW QUESTIONS

• LET THE PROSPECT DECIDE

• RESERVE SELLING POINTS

METHODS OF CLOSING

• GETTING A SERIES OF POSITIVE ANSWERS- (Continued Affirmation Technique)

•  NARROWING THE CHOICE- (Optimum Elimination Technique)

• SUMMING UP OF SELLING POINTS

• OFFRING INDUCEMENT TO BUY NOW

• ASKING DIRECT AND INDIRECT QUESTIONS- • COMPLIMENTING THE CHOICE

• SUGGESTIVE CLOSE

• APPEALING

THANK YOU