All customers may have been created equal, but they don’t have equal value to you. In fact, some may not be worth your time at all.
You can get a good fix on a customer’s cost-benefit by looking at two underutilized metrics:
Closing
Knowing how to close is a critical skill for every salesperson. And while some sales are “easy,” many aren’t. These posts will help you hone your approach to closing.
7 ways to lose a sale
There are a lot of excuses for lost sales. And then there are real reasons — that the salesperson can control.
These come from the book How Winners Sell, by Dave Stein:
- Salespeople depend on the capabilities of their product or service to win. Not many companies have a unique enough product or service to simply blow the competition away. Winners differentiate their product or service in ways that convey value to customers, and they don’t count on their products or services to beat the competition.
How to botch a sale in 1 easy (early) step
In their haste to satisfy customers, many salespeople make a big mistake.
In his book, Slow Down, Sell Faster! author Kevin Davis explains why presenting solutions too soon in the sales process can lead to a lot of problems, including:
- It shifts the focus away from the customer and on to the salesperson.
- At this point in the sale, the salesperson doesn’t really know the full value of the solution.
- It’s too early for the salesperson to know what problems or opportunities the customer has and doesn’t have – so he or she may end up emphasizing features the customer doesn’t want and miss capabilities they do want.
7 common mistakes that lose sales
Ask your salespeople to review sales they failed to close in the last year. Tell them to try to list the reasons why they didn’t get the sale. You’ll get a list that probably boils down to seven blunders.
The list is courtesy of Jeff Thull, a successful sales consultant.
How to use the ‘6 Laws of Persuasion’
Whether you’re dealing with prospects or employees, most negotiations are won by those who understand – and know how to leverage – these six laws, outlined in Robert Cialdini’s book, Influence: The Psychology of Persuasion:
- Law of Advocacy: One strategy that works particularly well in sales and salary negotiations is to introduce a third party whose chief responsibility is to stand opposed to giving the other party what they want. For instance, a salesperson can tell a prospect he’d really like to agree to all the terms outlined, but his manager may not approve. From that point forward, the prospect views the salesperson as an advocate, fighting to get him the best deal possible. Any concessions the salesperson gets management to “agree to” are considered a shared victory. Managers can use the same tactic during salary negotiations, positioning themselves as allies, willing to go to the CEO (or CFO) on the employee’s behalf.
5 keys to winning negotiations with cost-conscious buyers
Budgets are tight, and competition is tighter. Right now, most buyers feel like you need their business more than they need you. But here are five ways to turn the tables and create an atmosphere where they’re bargaining based on your terms. Know your walk-away point: With so many companies competing for every prospect’s dollar, it’s…
