Chapter Outline Closing and confirming the sale Avoiding the close

Chapter Outline Closing and confirming the sale Avoiding the close
The trial close Principles of persuasion in closing Closing techniques Letting customers close the sale Silence can be golden in closing Closing mistakes How do you handle sales rejection? Immediate post-sale activities Copyright © Houghton Mifflin Company. All rights reserved.

Learning Objectives After reading this chapter, you should understand:
Why some salespeople fail to close. When to attempt a trial close. What trial closing cues are and how to make use of them. Key principles of persuasion in closing. Effective closing techniques. How to deal with rejection. What immediate post-sale activities must be performed. © Royalty-Free/CORBIS Copyright © Houghton Mifflin Company. All rights reserved.

Figure 8.1: The Personal Selling Process (PSP)
The sixth step of the professional selling cycle Copyright © Houghton Mifflin Company. All rights reserved.

Closing and Confirming the Sale
The Close is that stage in the selling process where the salesperson tries to obtain agreement from the prospect to purchase the product. Closing Is Part of the Ongoing Selling Process Instead of the end of the selling process, professional salespeople recognize the close as simply a vital part of the ongoing selling cycle and buyer-seller relationship. What the Close Represents A successful close confirms the win-win agreement reached with a buyer and the continuance of the buyer-seller relationship. Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

Experienced salespeople:
Avoiding the Close Some salespeople, even experienced ones, actually avoid trying to close for various reasons. Sometimes inadvertently avoid the close because they are so wrapped up in their well-rehearsed sales presentation that they don't want to close until they've finished their presentation and demonstration Other veteran sales reps become complacent and avoid trying new closing methods even when the old ones aren't working Experienced salespeople: Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

Avoiding the Close cont’d
Three basic reasons why new salespeople often avoid the close are: New Salespeople lack of confidence in themselves, their product, or their company guilt about asking people to part with their money general fear of failure that causes them to postpone the attempt to close as long as possible Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

The Trial Close Always Be Closing!
A trial close is any well-placed verbal or nonverbal attempt to close the sale which can be used early and often throughout the selling process. It can be as simple as saying: “So, what do you think?” Or, nonverbally, merely looking at the prospect and making a hand, head, or eye gesture indicating you’re like their response to something they’ve just heard or that you’ve demonstrated. Professional salespeople should be prepared to close anytime, anywhere because they know their ABC's — Always Be Closing! Copyright © Houghton Mifflin Company. All rights reserved.

When to Close There is no single, best time to attempt a close
Closing attempts, though, are especially appropriate in three situations: When a presentation has been completed without any objections being raised by the prospect. When the sales presentation has been completed. When all questions and objections have been addressed. Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

When to Close cont’d Numerous verbal and nonverbal signals or cues indicate that it's an appropriate time to try a close. If the trial close doesn't work, just continue the sales presentation and demonstration. Royalty-Free, Digital Vision/Getty Images Chapter Review Question: What is a “trial close”? Give some examples of trial closes. What verbal and nonverbal cues from the prospect indicate that it’s time for a trial close? When should salespeople try to close? Copyright © Houghton Mifflin Company. All rights reserved.

Table 8.1 Trial Closing Signals
Copyright © Houghton Mifflin Company. All rights reserved.

Table 8.1 Trial Closing Signals cont’d

Principles of Persuasion in Closing cont’d
1. Consistency Principle If you can achieve a series of positive agreements with the buyer on individual product benefits during the sales presentations, the stage will be set for a close that is merely a continuation of this pattern of positive responses 2. Commitment Principle Prepurchase efforts by prospects to learn about a product tend to increase their commitment to buying the product 3. Reciprocity Principle When one person does someone a favor, the second person usually feels obligated to return the favor 4. Social Validation Principle Prospects are more likely to buy a product when they learn that people and similar companies to themselves have purchased it Copyright © Houghton Mifflin Company. All rights reserved.

Principles of Persuasion in Closing
5. Authority Principle Prospects are more likely to buy from salespeople and companies they perceive as experts in their field 6. Scarcity Principle When a product becomes scarce, it is often perceived as more valuable and desirable 7. Friendship Principle Prospects are more easily persuaded by salespeople they like Chapter Review Question: What are some principles of persuasion? Copyright © Houghton Mifflin Company. All rights reserved.

Table 8.2 Principles of Persuasion in Closing

Table 8.2 Principles of Persuasion in Closing cont’d

Closing Techniques cont’d
The more closing strategies the salesperson knows and can effectively apply, the greater his or her chances for closing the sale. Five widely used closing techniques include: Clarification closes Psychologically oriented closes Straightforward closes Concession closes Lost sale closes Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

Clarification Closes cont’d
1. Assumptive Close Assume that the purchase decision has already been made so that the prospect feels compelled to buy 2. Choice Close Offer the prospect alternative products form which to choose 3. Counterbalance Close Offset an objection that cannot be denied by balancing it with an important buying benefit 4. Success Story Close Tell a story about a customer with a similar problem who solved it by buying the product Copyright © Houghton Mifflin Company. All rights reserved.

5. Contingent Close Get the prospect to agree to buy if the salesperson can demonstrate the benefits promised 6. Boomerang Close Turn an objection around so that it becomes a reason for buying 7. Future Order Close If a prospect does not have a current need, but may have one in the future, the salesperson can ask for a commitment from the prospect to purchase at a future time Copyright © Houghton Mifflin Company. All rights reserved.

8. If-When Close Ask the prospect to provide a clarification as to when an order will be placed, as opposed to if an order will be placed. 9. Probability Close Although similar to the “if-when close” described above, the probability closing technique asks the prospect to assign a quantified likelihood of signing a sales contract in the near future. 10. Suggestion Close Imply that the prospect should accept the salesperson’s suggestion to buy without giving it a great deal of thought. A salesperson, for example, might state that customers who have purchased the product have reported high levels of satisfaction, thereby the prospect should purchase it, also. Copyright © Houghton Mifflin Company. All rights reserved.

Psychologically Oriented Closes cont’d
1. Stimulus-Response Close Use a sequence of leading questions to make it easier for the prospect to say “yes” when finally asked for the order. 2. Minor Points Close Obtain favorable decisions on several minor points leading to eventual purchase decision 3. Standing-Room Only Close Suggest that the opportunity to buy is brief because demand is great and the product is in short supply Royalty-Free, Stockdisc Premium/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

4. Impending Event Close Warn the prospect about some upcoming event that makes it more advantageous to buy now. 5. Advantage Close This variation of the impending event close emphasizes the specific advantages of making a timely decision, while still stressing a sense of immediacy Royalty-Free, Digital Vision/Getty Images 6. Reserve Advantage Close In this slight variation of the advantage close described above, salespeople identify a number of merits for purchasing a product, but save a few to use if the prospect exhibits resistance yet again Copyright © Houghton Mifflin Company. All rights reserved.

7. Puppy dog Close Let the prospect take the product home for a while and, as with a puppy, an emotional attachment may develop, leading to purchase 8. Compliment Close Commend prospects for raising interesting and intelligent questions which subtly flatters their egos then ask them to sign the sales order 9. Dependency Close Used to break the “choke-hold” that a competing firm has over a prospect’s business by suggesting that the prospect have an alternative supplier to reduce the risk of being dependent on one supplier Copyright © Houghton Mifflin Company. All rights reserved.

Straightforward Closes cont’d
1. Ask for the Order Close Ask for the order directly or indirectly. 2. Order Form Close While asking the prospect a series of questions, start filling out basic information on the contract or order blank, then hand the order form and a pen to the prospect © Royalty-Free/CORBIS 3. Summary Close Summarize the advantages and disadvantages of buying the product before asking for the order Copyright © Houghton Mifflin Company. All rights reserved.

4. Repeated “Yes” Close This variation of the summary close requires a salesperson to pose several leading questions to which the prospect has little choice but to respond in an affirmative manner 5. Benefits Close Also a variation of the summary close, it requires the salesperson to identify and present a synopsis of the various salient benefits that the sales solution offers 6. Action Close The salesperson simply hands the prospect a pen along with the contract, and frequently the prospect, almost by reflex, will sign Copyright © Houghton Mifflin Company. All rights reserved.

9. Negotiation Close Both the buyer and the salesperson negotiate a compromise, thus ensuring a “win-win” agreement. 10. Technology Close The salesperson more impactfully and effectively summarizes key value-added benefits for the prospect by using technologies such as PowerPoint, Excel, or other multi-media tools. Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

Concession Closes cont’d
1. Special-Deal Close Offer a special incentive to encourage the prospect to buy now. 2. No-Risk Close Agree to take the product back and refund the customer's money if the product doesn't prove satisfactory. Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

Concession Closes cont’d
3. Management Close When salespeople do not have the authority to make the prospect’s requested commitments or concessions, they can elicit the assistance of a senior sales manager who has the authority to make the necessary decisions to close the sale no-risk close sale. 4. Takeaway Close Used as an emotional fear appeal to cause anxiety that the prospect may lose out on a special deal or incentive. A salesperson may suggest that the special offer to provide an ancillary product or service free of charge is available only for another week, thereby evoking an immediate purchase Copyright © Houghton Mifflin Company. All rights reserved.

Lost Sale Closes cont’d
1. Turnover Closes Turn the prospect over to another salesperson with a fresh approach or better chance to make the sale. 2. Pretend-to-Leave Close Start to walk away, then "remember" another benefit or special offer after the prospect has relaxed his or her sales defenses Royalty-Free, Digital Vision/Getty Images 3. Ask For Help Close When the sale seems lost, apologize for not being able to satisfy the prospect and ask what it would have taken to get him or her to buy; then offer that Chapter Review Question: Describe as many as you can of the closing strategies discussed in the chapter. Copyright © Houghton Mifflin Company. All rights reserved.

Table 8.3 Closing Techniques

Table 8.3 Closing Techniques cont’d

Letting Customers Close the Sale
Professional salespeople who strongly advocate “win-win” selling sometimes advise turning the tables on tradition by letting the customer close the sale Royalty-Free, Digital Vision/Getty Images To motivate customers to help close the sale, you must clearly show the product's added value in solving customer problems and increasing customer success Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

Silence Can Be Golden In Closing
Don’t speak for a while after asking a closing question. The pressure is on the prospect to answer your closing question and commit to the purchase Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

Chapter Review Question: Outline several closing mistakes.
Many sales are lost because the salesperson makes simple mistakes that the well-prepared professional salesperson is less likely to make Examples of closing mistakes include: Giving up too soon Lingering too long after the close Failure to practice closing skills Lack of alternative closing strategies Failure to understand the need to close Talking past closing signals Failing to recognize prospect buying signals Projecting a lack of confidence Reluctance to try trial closes on early calls Inflexibility in using closing techniques Chapter Review Question: Outline several closing mistakes. Copyright © Houghton Mifflin Company. All rights reserved.

Table 8.5 Closing Mistakes

How Do You Handle Sales Rejection?
No One Wins All the Time -- Salespeople won’t make a sale each time, but they can learn from each presentation/demonstration and be better prepared for the next one. Learn From Rejection -- When salespeople are unable to close a sale, they should not feel discouraged or personally rejected. Instead of failure, rejection should be viewed as: A learning experience that will enable you to do better next time. Helpful feedback that will spur you to develop more creative closing approaches. An opportunity to develop a sense of humor and begin to lose your fear of future rejection. The motivation to spend more time practicing selling skills and improving performance. Just a part of the selling game that you must accept in order to continue to play and win. Copyright © Houghton Mifflin Company. All rights reserved.

Constructive Ways of Dealing with Rejection
Never equate your worth as a human being with your success or failure as a salesperson Separate your ego from the sale Don't automatically assume that you or your selling skills are the problem Move on to other prospects Positively anticipate rejection, and it will not overwhelm you Remember that there are many more rejections than successes in nearly all types of selling Recognize the possibility that not buying may be the only decision the prospect can make at this time for various reasons, such as timing, shared decision making, or budget constraints Royalty-Free, Digital Vision/Getty Images Chapter Review Question: Discuss some ways for a salesperson to deal with rejection. Copyright © Houghton Mifflin Company. All rights reserved.

Table 8.6 Constructive Ways to Deal with Rejection

What Not To Do When the Prospect Doesn't Buy
Salespeople should: Not burn any bridges by showing disappointment, anger, frustration, or any other negative reaction Analyze lost sales to see what might have been improved Help the prospect shop the competition Call back with new information or product benefits and appeals Schedule another sales appointment Never give up Chapter Review Question: What should a salesperson do when the prospect doesn’t buy? Royalty-Free, Digital Vision/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

Table 8.7 What to Do When the Prospect Doesn’t Buy

Immediate Post-Sale Activities
Following a sale, there are two major concerns for salespeople: Serving and Satisfying the Customer, and (2) Keeping the Customer Sold Remember that the long-range goal is customer loyalty Royalty-Free, Photodisc/Getty Images Copyright © Houghton Mifflin Company. All rights reserved.

Serving and Satisfying the Customer
Call or write within a few days to thank customers Check on your customers' orders to make sure that are going to be delivered on time Contact credit and billing to confirm that they have the correct information on your customers' orders before sending out invoices Try to be there when the product is delivered to the customer © Royalty-Free/CORBIS Promptly update your sales records on your customers Keep your customers informed about new products, price changes, anticipated product shortages, etc. Call your customers on a regular basis to ask whether they have any problems Copyright © Houghton Mifflin Company. All rights reserved.

Keeping the Customer Sold
After closing a sales agreement, salespeople cannot afford to celebrate success for long because "keeping the customer sold" can be as challenging and time-consuming as winning the order in the first place Follow-up and customer service are essential Royalty-Free, Digital Vision/Getty Images Remember: Winning new customers is much harder and less profitable then keeping old customers Chapter Review Question: List some immediate post-sale activities of a successful salesperson. Copyright © Houghton Mifflin Company. All rights reserved.

Key Terms Close The stage in the selling process where the salesperson tries to obtain the prospect’s agreement to purchase the product. Trial Close Any well-placed attempt to close the sale; can be used early and often throughout the selling process. Boomerang Close Turning a prospect’s objection or point of resistance around so that it becomes a reason for buying. Copyright © Houghton Mifflin Company. All rights reserved.

Key Terms cont’d Puppy Dog Close
Letting the prospect try the product for a few days or weeks before buying, on the principle that most people grow attached to something they have for a while. Price Discount Any reduction off the standard list price of a product. Ask For Help Close Even after the sale seems lost, the salesperson asks the prospect what could have been done to make the sale. Oftentimes, the prospect will give a previously undisclosed reason or objection, which the salesperson can then answer and secure another chance to close the sale. Copyright © Houghton Mifflin Company. All rights reserved.

Topics for Thought and Class Discussion
Which do you think is a more appropriate term for stage 6 in the Personal Selling Process: closing the sale or confirming the sale? Why? What would you say to a salesperson friend who must overcome low self-confidence, guilt, and fear of failure before attempting to close sales? Which of the closing techniques provided in Table 8.3 do you think you would prefer to use in your professional personal selling career? Why? Copyright © Houghton Mifflin Company. All rights reserved.

Topics for Thought and Class Discussion cont’d
Why is it often effective for the salesperson to be silent after attempting a trial close? What would you do if a prospect didn’t buy from you following the fifth sales call when you thought for sure you’d achieve a successful close? Assume you have just made a substantial sale. What steps would you take to further the buyer-seller relationship? What do we mean by “rejection”? Why are most of us so afraid of it? How do you personally cope with various types of rejection in your life? Copyright © Houghton Mifflin Company. All rights reserved.

Internet Exercises Use an Internet search engine to find three firms that will train you in closing sales. What company is offering each program? Is the focus B2B selling, B2C selling, or both? What are the length and cost of each program? Where would it be held? Who’s doing the training? What will the training cover that will be new? Use Google or any other search engine to locate two examples of closing strategies being demonstrated using Flash or streaming video. Copyright © Houghton Mifflin Company. All rights reserved.

Projects for Personal Growth
Ask three business-to-business salespeople to explain their favorite closing strategies. Give each strategy a name. How many of them are discussed in this chapter? Do you consider any of the closes used by the three salespeople manipulative or questionable? Why? Share stories with other members of your class about how you have recently used one or more of the seven basic principles of persuasion to negotiate something. Do any of your classmates have a favorite persuasion technique that they rely on most often? Survey five people in different occupations about how they deal with rejection. Would these methods also apply to personal selling? Explain how. Copyright © Houghton Mifflin Company. All rights reserved.

Case 8.1: Talk, Talk, Talk! Do you believe Ms. Connors would have placed an order when Fred completed his sales close? Why? What do you think of Fred’s sales presentation? What improvements would you suggest? Could Fred have tried a trial close before Ms. Connors left for the other meeting? If so, what should he have said? What advice would you give Fred for future sales calls? Copyright © Houghton Mifflin Company. All rights reserved.

Case 8.2: She’s Got Personality…and a Lot More!
Do you think Peggy uses any particular persuasion principles or selling strategies that others might learn, or is her success largely attributable to her unique personality? Assume that you are Frank Sherry and you must develop a teachable model or system to train others how to do what Peggy seems to do almost instinctively. Based on the limited information provided, identify and give examples of the specific principles of persuasion and closing strategies that Peggy applies in her personal selling activities. Case 8.2 is found online at Copyright © Houghton Mifflin Company. All rights reserved.

Case 8.2: She’s Got Personality…and a Lot More! cont’d
Should new salespeople be taught to sell like Peggy Markley, or should each sales trainee be allowed to develop his or her own personal style, closing strategies, and persuasive techniques? Why? Outline a sales training module for new sales trainees that integrates the basic persuasion principles with different closing strategies. Copyright © Houghton Mifflin Company. All rights reserved.

Chapter Outline Closing and confirming the sale Avoiding the close

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