Negotiation is the key aspect when it comes to closing more deals. The goal of a successful business is not to make a sale and move on, but to build a relationship, because it costs a fraction of what a company has to spend on acquiring new customers.
Good negotiations significantly improve business sales and establish long-term business relationships. Negotiation techniques are helpful in a variety of ways. First, it helps in maintaining the profit margins for your products and services.
Second, to increase the deal closing rate. And, lastly, with better negotiation, you can stay a cut above your market rivals. Negotiation skills don’t improve overnight, it takes day in and day out of practice to get the best results.
Let’s discuss some highly useful sales negotiation techniques and tips that will help you negotiate with your prospects in a compelling manner:
7 Effective Sales Negotiation Techniques and Tips
Do Your Homework
First things first, there is no rocket science here.
If you want to increase the odds of closing every deal, gather as much information as possible before heading to the negotiation table with your prospective client.
You should be well aware of their needs. What are their pain points? What is their budget?
Doing your homework is of utmost importance to successful negotiation. You won’t convince your potential customer if you don’t get in their shoes to understand their expectations thoroughly.
The more information you acquire about the people you will be negotiating with, the stronger your case will be.
Never Be in a Hurry
The biggest trait of a successful negotiator is their ability to be patient. If you are in a hurry to convince someone, they’ll believe that you’re under immense pressure to meet your annual sales goals in a smart way.
Be flexible with time; wait to give your prospective client the time to access the deal, whether it is worth it or not.
With patience, you can illustrate that you trust your product, and you aren’t worried that your customers may find a better product in the market.
In a nutshell, when you have made your offer, give your prospect a breather.
Show Them How You Can Meet Their Needs
Do you know why some negotiators close deals like crazy while many are struggling to make any? The answer is that successful negotiators think from the perspective of their prospective clients.
Be one side ahead of the game if you want to figure out the deal’s perception.
Rather than trying too hard to win the negotiation with big claims, show your potential client how your product will fulfill their needs.
Here satisfaction means meeting their fundamental needs rather than demands. Lend them the helping hand to their problem, and they will firmly trust you.
Listen To Them
You probably have come across a sales guy who talks a lot and frustrates their customers.
But, top negotiators are like detectives; they will ask probing questions and then just keep quiet and wait for the other person to ask their query.
Listening is an art in negotiation, and if you manage that, you will be able to close deals.
One of the best sales negotiation examples, including this tip, is to ask your client what they are looking for and be patient no matter how long the explanation is.
Never interrupt in between if your client tells a long story about their bad experience with the previous product they used. Most of the conflicts can be resolved in no time if you listen to them.
You must follow the fundamental rule of thumb, 70/30, which means spending 70% of the time listening and the rest talking.
Encourage your potential clients to ask open-ended questions. The questions have answers way more than simple ‘Yes’ or ‘No’.
Don’t feel timid, be optimistic about the outcome because then only you will win the negotiation battle. This, as a matter of truth, is the most proven sales secrets and negotiation skill.
Whenever you expect more, you’re bound to get more. So, your aim needs to be sky-rocketing high. With your optimism, you will need to wind up more deals and start getting your confidence in the long run.
Keep Your Emotions in Check
Not many negotiators will tell you, but top negotiators know how to keep a check on their emotions. Never let the sales negotiation become an argument.
If you want to create a mutually beneficial partnership, never let your emotions take center stage. Always stay calm and grounded, and ensure that the conversion is friendly.
Know When to Walk Away
Last but not least, be ready to walk away to close a deal. This is often the least talked about rules of negotiation. Despite your best efforts, you cannot reach an agreement; then, you need to walk away. But, what is the best time to move away?
The three most prevalent signs are: they make an unreasonable offer or raise unprofitable demands. Second, their demands can not be met because of your terms & conditions. And, finally, they showed no interest in collaborating.
SalesKen – A Leading AI Tool for Sales Negotiation And Augmenting Sales Intelligence
In this digital epoch, we have advanced tools that assist salespeople with the sales negotiation process. The tools help in data extraction, storage, and analysis and allow sales teams to plan their strategy. One such effective AI-based sales assistant tool is Salesken. The sales reps can use this tool to personalize the sales pitch and negotiate efficiently with their prospect and track their performance.
Core features of Salesken
Complete visibility to every sales conversation
Identify customer intent scoring
AI-based sales assistance
Targeted sales coaching
SalesKen can help you close 74% more deals!