Closing the Sale and Follow-up 8 Closing the Sale and Follow-up

4/22/2017 Learning Objectives Define closing and explain how closing fits into the relationship-selling model Understand different closing methods and provide examples of each Discuss the concept of rejection and ways to deal with it Identify various nonverbal buying signals Know when to trial close

Learning Objectives Recognize and avoid common closing mistakes 4/22/2017 Learning Objectives Recognize and avoid common closing mistakes Explain aspects of follow-up that enhance customer relationships

Selling is Not a Linear Process The close should be part of a natural progression of the dialogue with the customer Use closing skills at the appropriate point in the customer dialogue – not just at the end Use active listening skills to identify customer buying signals (verbal and nonverbal) throughout the sales call – examples are given on later slides

Selling is Not a Linear Process Take the customer’s perspective in closing Use the best approach to closing, based on the circumstances

Closing Methods Assumptive Close Minor Point Close Alternative Choice Close Direct Close Summary-of- Benefits Close Balance Sheet Close Buy-Now Close

Assumptive Close Allows the salesperson to verbalize the assumption to see if it’s correct: “I can ship it to you on Monday. I’ll go ahead and schedule that.” “Let’s get this paperwork filled out so we can get the order into the system.” “You need Model 455 to meet your specifications. I’ll call and reserve one for you.”

Minor Point Close Focuses the buyer on a small element of the decision: “What color do you prefer?” “Do you want to use our special credit terms?” “When would you like our technical crew to do the installation?”

Alternative Choice Close Gives the buyer multiple viable options: “Which works best for your application, Model 22 or Model 35?” “Would you like this delivered tomorrow, or would Monday be better?” “Do you want it with or without the service agreement?”

Direct Close Simply asks for the order: “It sounds to me as though you are ready to make the buy. Let’s get the order into the system.” “If there are no more questions I can answer, I would sure like us to do business today. What do you say?”

Summary-of-Benefits Close Reviews the benefits accepted, reminds buyer why they are important, then asks for the order: “Ms. Buyer, we’ve agreed that our product will substantially upgrade your technical capabilities, allow you to attract new business, and all the while save you money, isn’t that right? Let’s go ahead and place the order today. I will have my service technician out to train your staff next week.”

Balance Sheet Close 2 column list: “Reasons for Buying” and “Remaining Questions.” Helps find out what’s holding the prospect back. “Mr. Buyer, let’s take a few minutes to list out and summarize the reasons this purchase makes sense for you, and also list any remaining questions you may have. This will help us make the right decision.”

Buy-Now Close Creates a sense of urgency with the buyer (reason must be honest): “We have a price increase on this product effective in two weeks. Orders placed today can be guaranteed to ship at the current price.” “My company is running a special this week. This product is currently 20 percent off the regular price.” “I’m almost out of stock on this product in our warehouse.”

Dealing with Rejection Remember the difference between self- worth and performance Engage in positive self-talk Don’t assume you are the problem Positively anticipate the possibility of rejection and it will not overwhelm you Consider that the decision not to buy may have underlying reasons

Attitude is Important Attitude – state of mind or feeling with regard to a person or thing A positive attitude combined with tenacity closes more sales

Verbal Buying Signals When the customer: Gives positive feedback – “I like the new features you described.” Asks questions – “What colors does it come in?” Seeks other opinions – “Who are some other firms that have bought your product recently?”

Verbal Buying Signals When the customer: Provides purchase requirements – “My orders must be split among four warehouses.”

Nonverbal Buying Signals Buyer is relaxed, friendly, open Buyer brings out paperwork to consummate purchase Buyer exhibits positive gestures/expressions Buyer picks up sample and/or literature and examines it

Trial Close Can be used at any time during the sales process May elicit a negative response because buyer is not ready to purchase A trial close that works becomes the close!

Common Closing Mistakes Bad attitude Ineffective preapproach Not listening “One size fits all” approach Uncertainty about post-closing action

Common Post-Sale Complaints Product delivery Credit and billing Installation of equipment Customer training Product performance

Handling Post-Sale Problems Listen carefully to the customer Never argue Always show empathy Don’t make excuses

Handling Post-Sale Problems Be systematic Make notes about everything Express appreciation

Other Key Follow-Up Activities Customer satisfaction Customer retention and loyalty Reexamine the value added Reset customer expectations as needed