As a brand-new sales professional armed with a degree in business administration, Vaibhav was eager to make his mark in the competitive world of sales. However, little did he know that the path to success would be filled with challenges. As he embarked on his journey, it didn’t take much time and he realized that he is still in the shallow waters, and to deep dive into the world of sales, he has to venture into uncharted waters.
He thought it will be challenging for him to explore the sales world without guidance, it is when he remembered his uncle, Sivaranjan, told him to contact him whenever he needed his help. He called Siva, a vice president in one of the major corporations. Siva knew that Vaibhav has potential and determination and he took him under his wind without a second thought.
Under Siva’s guidance, Vaibhav was learning different dimensions of the sales world and so far they have covered the buying and selling process dynamics, the myths and facts about sales, the FAB model, understanding and meeting customer needs, the decision criteria in detail, the art of probing, open and closed-ended questions, the art of sales storytelling, and ways to weave a sales story.
I know, Vaibhav, a career in sales is a challenging yet exciting and rewarding. Sales is one of the professions when done right, the opportunities are immense and sky’s the limit. It takes a flexible mentality, a lot of objectivity, and unwavering hope to crack the code of the sales world.
According to a research, with 60% of consumers saying ‘no’ at least four times before saying ‘yes,’ you must have a strong follow-up strategy as well as a thick skin.
At the awareness stage, 19% of buyers want to speak with a salesperson, 60% want to talk during the contemplation stage, and 20% want to talk during the decision stage.
Have you ever wondered why it is a challenge to make the conversion, said Siva.
You would have seen your colleagues fighting tooth and nail to convert a prospective customer into a customer. Everything in a sales success boils down to a higher conversion rate. So how do you make sure you have a higher conversion rate? — asked Siva.
Vaibhav said thoughtfully, “It depends upon the way I approach customers and understand their needs and preferences.”
That’s the start, yes, however, you have to have the art of closing the deal because the best of the salespeople hesitate to hit when the iron is hot or close the deal as they think the exchange of information is done and now it is customer’s job to make the decision, well, it’s not the case. You have to look at the long-term perspective and lifetime value of the customer, not just during the sales transaction but even after closing the sales, said Siva.
He continued, “Do you remember the most recent instance where you felt a persuasion to do something you didn’t want to do? Whether it was from a boss, a coworker, a spouse, or a child, your natural reaction was to oppose and push back. Humans are wired to reject high-pressure methods.” The same happens when a sales professional tries to persuade the customer into buying a product or service, they just resist and push back.
So, how do you make sure you get a yes from your customer out of your sales structure? — asked Siva.
He then said, “You have to have a closing strategy in mind and choose the most relevant technique to close the deal.”
Uncle, I do not understand what you are saying. — said Vaibhav.
Vaibhav, closing a sales call successfully is the pinnacle of your efforts. It’s the moment when you seal the deal and turn a potential customer into an actual buyer. However challenging it might get, you have to give a little nudge to your customer in the right direction to make them reach the finish line, explained Siva.
According to a survey by DiscoverOrg, the best sales closing techniques are the soft close technique. Harvard Business Review explained:
“Hard close techniques like ‘This is the last time we’ll be able to extend this offer, and we need an answer right now’ were rated as the least effective.” A forceful close elicits a buyer’s binary ‘yes or no’ answer and is connected with a ‘take it or leave it’ approach. Soft close approaches like ‘If you spend another $100,000, you will receive an additional 10% off the entire order’ were deemed the most effective. A soft close is based on a suggestion that enables consumers to assume they are acting on their own volition when, in fact, they have been directed to do so.”
Siva said, let’s understand what it means by closing a sales call and why it is so important.
Closing A Sales Call
Vaibhav, closing a sales call refers to the final stage of a sales process where you seek to secure a commitment or agreement from the prospect to move forward with a purchase or take the desired action. It is the culmination of the sales effort and plays a crucial role in converting prospects into customers, said Siva.
Here are a few reasons why is important:
1. Achieving Sales Goals
Closing a sale is essential for meeting sales targets and achieving revenue goals. Without successful closings, the efforts put into prospecting, qualifying, and nurturing leads may go to waste.
2. Establishing Customer Relationships
The closing stage provides an opportunity to solidify a relationship with the prospect. By effectively addressing their needs and concerns, and successfully closing the sale, you can build trust and credibility, laying the foundation for a long-term customer relationship.
3. Generating Revenue
The closing of the sales call’s primary purpose is to generate revenue. Closing the sale means the prospect has made a commitment to purchase, leading to revenue for the business.
4. Overcoming Objections and Concerns
During the closing stage, you have the chance to address any lingering objections or concerns the prospect may have. By effectively handling these objections and providing suitable solutions, you can alleviate doubts and increase the likelihood of closing the sale.
5. Guiding the Decision-Making Process
The closing stage allows you to guide the prospect through the decision-making process. By presenting relevant information, highlighting the value proposition, and using persuasive techniques, you can help prospects make an informed and confident buying decision.
6. Maximizing Efficiency and Productivity
Effective sales closing techniques can help streamline the sales process and maximize efficiency. By confidently guiding the prospect toward a decision, you can avoid unnecessary delays or prolonged sales cycles, allowing them to move on to other opportunities and increase their overall productivity.
Vaibhav, it gives us the opportunity to proceed to the sales closing techniques and how they can effectively guide the decision-making process and maximize your efficiency and productivity, added Siva.
Techniques To Close A Sales Call
There are numerous aspects that influence how you close your sales calls, ranging from sales objections to how long you’ve been nurturing your relationship. Your unique selling style and ability to read a situation will also influence how you tie things up.
Vaibhav, there is no such thing as a “one-size-fits-all” closing strategy. Here are three closing techniques as mentioned in Neil Rackham’s SPIN Selling book that you can tweak depending on what you’re selling, said Siva.
Assumptive Close: Building on Positive Momentum
The assumptive close technique involves assuming the prospect’s agreement and moving the conversation toward the next steps. It relies on building a positive rapport and addressing the prospect’s needs throughout the sales call.
According to a study conducted by the Harvard Business Review, customers are more likely to respond positively to assumptive language. By using phrases such as “When we move forward” or “After you become a customer,” you can convey confidence and reinforce the prospect’s positive inclination.
An example of an effective assumptive close-in action can be seen in a real-life scenario. You have been discussing the benefits of a new CRM software with a prospect. You say, “Based on our conversation today, it’s clear that our CRM software aligns perfectly with your company’s goals. Shall we schedule a follow-up call to discuss implementation timelines?”
Vaibhav, although an assumptive attitude can produce great momentum toward a deal, it’s critical to conduct regular temperature checks with your prospects to ensure they’re feeling similarly confident. If you discover that your customer is not responding positively, determine what barriers and objections need to be addressed. This sales closing technique might easily come out as arrogant and forceful without frequent temperature checks, warned Siva.
Direct Close: Asking for the Commitment
The direct close technique involves asking the prospect directly for their commitment to move forward. It requires clarity, confidence, and the ability to overcome any remaining objections or concerns.
Research conducted by the Sales Management Association revealed that sales professionals who directly ask for a sale outperform those who do not. However, it is essential to approach the direct close technique with finesse and considerate communication to avoid coming across as pushy or aggressive.
For instance, imagine you have been demonstrating the features and benefits of a new project management tool to a prospect. You ask, “Do you want to take your project management to a whole new level with our software? I believe it can significantly streamline your team’s productivity.”
Alternative Close: Offering Choices to Empower Decision-Making
The alternative close technique involves presenting the prospect with multiple options, allowing them to choose the one that best suits their needs. This technique enhances the prospect’s sense of control and increases their engagement in the decision-making process.
A study published in the Journal of Consumer Psychology suggests that giving customers multiple options can increase their likelihood of making a purchase. When presented with choices, customers perceive a higher level of control, leading to increased satisfaction with their final decision.
For example, you are selling a subscription-based online learning platform to a potential client. You present two options: the basic plan and the premium plan. You explain, “We offer two of the finest subscription schemes for our platform. The basic plan provides essential features, while the premium plan includes additional advanced modules. Which option aligns better with your team’s learning objectives?”
Vaibhav, closing a sales call effectively requires a combination of understanding the customer’s needs, building rapport, and utilizing proven closing techniques, said Siva.
Uncle, these techniques can enhance my closing skills, increase conversion rates, and cultivate long-term customer relationships, added Vaibhav.
Yes, Vaibhav, the key is to be confident, clear, and customer-centric in your approach to closing the sale successfully, said Siva.
https://www.lucidchart.com/blog/sales-closing-techniques
https://blog.hubspot.com/sales/sales-closing-techniques-and-why-they-work
https://www.copper.com/resources/close-sales-calls
https://hbr.org/2011/12/how-to-close-a-sales-call
https://www.boomerangmarketing.co.za/wp-content/uploads/2020/11/Cold-calling.png
https://www.salesmate.io/blog/wp-content/uploads/2021/09/Closing-a-deal-during-a-sales-call.jpg
Written By: Jimmy Jain
Edited By: Afreen Fatima
Society of Design Thinking Professionals
