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3 Reasons Negotiations Fail

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1. Mismanagement of expectations

Imagine going to a pizza shop and then being told it only serves sushi; disappointment is likely. The same goes for negotiations. If expectations aren’t managed properly, disappointment or frustration may ensue from a misalignment of expectations and reality, and may result in a less-than-ideal outcome for one or all parties.

Properly managing expectations comes from preparation and flexibility. If a party has done its homework –including understanding past precedents and current alternatives—that party is much more likely to have realistic expectations for its encounters. In addition, acknowledging that things may not go as planned can lead to preparation of alternative scripts and backup plans. These scripts and plans must lay out strict acceptance and walk-away scenarios prepared before negotiations begin.

 

2. Unwillingness to empathize

It’s like watching someone go fishing and not realizing that some people may enjoy fishing. Often, people do not consider the other side’s points of view and cannot appreciate that the other side has different needs and desires, which have a profound impact on how negotiations are approached.

By considering the other side’s goals, needs, and thought processes, a negotiator will be able to anticipate arguments the other party may make and consider alternatives that the other party may find appealing even before they meet. In addition, understanding and acknowledging the other side’s point of view may improve the rapport between the parties and can have a positive impact on long-term relationships.

 

3. Lack of preparation

Have you ever gone to the grocery store without knowing what you already had at your house, only to end up getting more of things you don’t need and less of what you do? Going into any deal without a knowledge of the negotiation’s landscape and potential traps can be treacherous for a negotiator and inhibit proper management of expectations.

A negotiator should come in knowing what relevant precedents exist for the current negotiation, what alternatives may be available (or currently unavailable), and what curveballs may be thrown during the conversation. Preparation in the form of a checklist can be especially helpful as a visual representation of what the negotiator has done, is doing, and needs to do in order to fully prepare for the negotiation. This detailed preparation will make the negotiator more flexible, confident, and purposeful than coming in with only a vague idea of what to expect.

 

For more on how to improve the likelihood of success in negotiations, check out The Power of Nice: How to Negotiate So Everyone Wins, Especially You! 

Navigating Negotiation Stalemates

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Every businessperson has experienced a negotiations stalemate. Compromise has faltered, neither party is willing to budge, and there is nothing more to say. A successful negotiator knows the way out of a stalemate and how to seal the deal.

Stay Professional and Keep the Client

Before trying to get your opposition to budge, think hard about what you are willing to do to keep this client. Make sure you are being smart about considering compromise. What is the smallest concession you are willing to make? Is this concession worth keeping the client? Negotiation isn’t always about getting your way on everything, sometimes to get what you want, you have to know and help them get what they want.

Your tone should remain professional, no matter how heated the negotiations become. Be courteous. Avoid the “buts” – saying, “I understand your point, but …” just tells your opposition that you are rejecting their points. Shift the conversation to finding joint solutions. Ask them, “How can we make this work?” Build relationships is much more profitable in the long run than burning bridges in one deal.

Breaking the Barrier

You’ve made all the concessions you are willing to make. Now is the time to break through your opposition’s objections. The first step is to understand the other person’s stumbling block. Get this information by being honest about your sticking point. This invites them to tell you why they aren’t budging. You will be able to address their concerns from this information.

If you aren’t getting anywhere at the negotiating table, it may be time to shift focus. The key is to change the context of the conversation to something else for a while. Get the client out of the combative mindset by suggesting a break. This allows you to engage with the opposition in a social context and gives them a chance to get to know you on a personal level. You can also talk about future business opportunities your two organizations might share in the future. More important, it gets them out of the adversarial mindset.

Power Moves

Breaking up the negotiations when they have stalled may be your only option. If you have the upper hand at the time, you can suggest a cooling off period. This is a better move to make when you know your opponent wants the deal more than you do. The prospect that you are willing to walk away may be all that is necessary to get the other party to budge.

If you don’t have the advantage in negotiations, it is still possible to shake up the negotiations by buying some time. Telling the opposition that you would like a legal opinion is a card you can always play. Most business-people understand the need for legal advice. This keeps your negotiations open and buys both of you some cooling-down time.

Keep an Ace in the Hole

When all else fails, you should always have a trick up your sleeve. Before you go into negotiations, prepare something you can use to push stalled negotiations over the edge. Use alternatives. A deal, a discount, or a special offer can go a long way to closing the deal.

The 3 Ps of Negotiation

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No matter the industry you are in or what you are trying to sell, negotiating is one of the most crucial skills a sales professional has to master. Here at the Shapiro Negotiations Institute, we’ve spent the last twenty years studying and teaching the art of negotiating. As a result, we have developed a systematic approach to the negotiation process:

3ps

For more information about proper negotiation tactics visit our negotiation training page.

 

18 Proven Sales Tactics That Work in Any Industry

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Developing a strong sales program is the most critical aspect of any business. Without effective sales strategies, companies will not be able to compete and grow. Sales professionals must learn how to implement proven sales tactics that work.

As a sales team manager, one of your responsibilities is to provide your team with effective sales strategies that will increase your company’s profits. Effective sales processes are not just about working hard and putting in long hours. In fact, many sales teams work long and hard without experiencing results.

sales professional at work

Effective sales strategies involve employing the best strategies in the right situations. Here are 18 sales tactics that can work for sales teams in every industry.

  1. Be persistent with leads and develop the habit of following up with each customer. According to the latest sales research, 80 percent of sales transactions require 5 interactions after the first contact with a customer. Many salespeople are primarily concerned with immediate sales. If they do not get the sale at the first meeting, they silently give up and continue their hunt for the next immediate sale. However, savvy sales professionals understand that they must nurture viable leads until an action is taken. These ‘rock star’ sales professionals send emails, direct mail, make phone calls or send brochures to customers at designated intervals. By taking this action, your customers will think of you when it is time to make their next purchases.
  2. Solve your customers’ problems. Successful businesses thrive in competitive industries because they provide solutions to meet their customers’ needs. There are many sales professionals who do not fully understand their roles in the transaction. Consider this fact. As many as 70 percent of your leads are reaching out to you to solve their problems. When customers contact your sales team, your sales professionals must be able to demonstrate to them how they can quickly and easily solve their problems.
  3. Develop the ability to actively listen to customers. Customers have access to pages of information on the internet. In many instances, they may be as knowledgeable as your sales team. When sales professionals interact with knowledgeable customers, they might be tempted to talk constantly to show them that they are qualified. It is important to remind your salespeople that they should never get into a knowledge power struggle with customers. Sales professionals should always listen more than they talk. They should ask questions that probe into their clients’ thought processes and carefully consider the responses. The goal is to make customers feel as if they are respected throughout the sales process.
  4. Use polite terms when you discuss the competition. Your sales team should always strive to present themselves in a positive light and use professional language. There is nothing that screams unprofessional like using derogatory terms to discuss other people or companies. Although customers may participate in the negative conversation, bad mouthing any person or company is never a good sales tactic. If a competitor does not have a good reputation, the members of your sales team should remain neutral.
  5. Earn your referrals before you ask for them. Sales professionals know that referrals are the proverbial ‘holy grail’ of marketing. In fact, 91 percent of customers will provide a referral contact to a salesperson that they like. Before you think about asking your customers for referrals, you should focus on providing them with a quality customer service experience. During the transaction, your goal is to develop positive relationships with your customers. After you have determined that they are happy with your services, it is a good idea to pursue the referrals. When it comes to soliciting referrals, timing is important.
  6. Ask for referrals from your customers. You might not believe it but only 11 percent of sales professionals ask clients for referrals. According to this data, the majority of salespeople are leaving money on the table. Most customers are generous, and they would happily share your good customer service with friends, family members and colleagues, but you have to ask. If your sales team waits for their customers to initiate a conversation about referrals, it might never happen. Teach your sales team how to integrate referral conversations into the sales process at the appropriate time.
  7. Adhere to strict deadlines with your customers. Sales professionals must create a sense of urgency with customers, or the deals will take much longer than necessary. Changing deadlines according to the whims of each customer makes sales professionals lose credibility. The old adage, where there is a will there is a way, applies here. If customers want to meet the obligations of a transaction by the deadline, they will definitely find a way to make it happen.
  8. Develop relationships with your customers. Without customer relationships, it can seem as if you are always in the vicious cycle of trying to ‘drum up’ new business. Your past customers can be an excellent source of new transactions for years to come. When your initial transaction is completed, you do not have to end the relationship at that point. Find creative ways to keep in contact with your customers.
  9. Identify your customers’ needs and meet them. Sales professionals should never lose sight that the only purpose of the sales transaction is to help customers. Since transactions are closely associated with money, it is easy to lose sight of this fact. Create a list of questions that you can use to pinpoint exactly what the customer needs from the transaction. These questions will enable you to save time with customers and get to the heart of the matter. Once customers believe that you understand their predicament, they will work with you to meet their needs.
  10. Be able to distinguish a lead from a customer and act accordingly. Brace yourself for this disheartening fact. According to a report by Gleanster Research, only 25 percent of all leads are legitimate and ready to complete a transaction. Leads are potential transactions, and you cannot bank your future on potential. You should categorize your leads and create campaigns to interact with each type. For example, warm leads should have a different marketing strategy than cold calls. Time is a limited resource. It is best to use it wisely.
  11. Solicit targeted leads. A difficult lesson for many sales professionals to learn is that every person with a pulse will not be a customer. Since this is the case, sales professionals must create a strategic plan to attract customers that fit their target markets. One way to do this is to make good use of technology to find leads that could use your services. For example, credit professionals who are targeting people who are recovering from bankruptcy can use the public record to find people who fit this profile. Once you have found your potential customers, create a customized sales pitch that will appeal to each demographic.
  12. Learn to uncover each customer’s pain points. Television advertisements are known for pushing the viewer’s hot buttons in order to get them to take action. Fear of loss is the most common pain points that advertisers address. The primary mission of every sale professional, as emphasized in our negotiation training courses, is to find a customer’s pain points and use them to their advantage. Ron Shapiro said it best when he stated, “In order to get what you want, help them get what they want.” Sales professionals can start the search for pain points by asking closed-ended questions that only require a ‘yes’ or ‘no’ answer. As the customer begins to feel comfortable, the salesperson should ask open-ended questions that will prompt customers to reveal additional information. Once the vital information is discovered, salespeople can use it to help their customers take action.
  13. Master the art of storytelling. When sales professionals meet with customers, they are usually armed with all sorts of facts and data. Although data may seem important, studies suggest that only 5 percent of people remember statistics after a presentation. However, an impressive 63 percent of people remember stories after a presentation. Sales professionals need to arm themselves with stories about relevant experiences of people who have received favorable results after using their products and services.
  14. Stand by your product or service and offer some type of guarantee. If your customers are willing to part with their cash, your company should at least be willing to offer a guarantee on the product or service. The guarantee can be a refund or replacement. If you are afraid of most of your customers taking you up on a money back guarantee policy, you should not be. Less than 10 percent of customers return items each year. A product or service guarantee provides your customers with peace of mind that lets them know that they are protected in the event that something goes awry.
  15. Find prospects who want the things you have to sell. The best way to navigate through water is to go with the current instead of swimming against it. In sales, going with the current means that if you are selling chicken, your leads are people who like chicken. If your prospects are vegan, then it will be nearly impossible to sell your chicken products to them. If you want to be certain that your clients need the items you are selling, you should pre-qualify them before you actively market to them.
  16. Develop compelling goals and an actionable plan. Successful people know where they want to go, and they develop an action plan to help them propel toward their destination. Goal-setting and planning are critical to any sales team’s success. According to a study conducted by Inc. Magazine, sales teams that set goals realized a 28 percent increase in sales. Teaching goal-setting strategies should be a mandatory part of every organization’s corporate sales training manual.
  17. Show customers proof that your product or service actually works. When you look at infomercials for weight loss products, they often show ‘before and after’ pictures of previous users of the products. They understand that new customers are motivated by social proof. Sales professionals should keep customer testimonials in a binder or in their laptops to share with customers. When customers are able to view the visible proof, they will be more likely to invest in your product or service.
  18. Maintain a positive mindset. This may seem like a no-brainer, but you might be surprised by the number of sales professionals who develop a jaded outlook because of sales slumps. Sales professionals must make every effort to remain positive in good and tough times. Developing a positive attitude has many benefits. Customers can tell when you are not in a good mood, and it will affect the transaction. A positive outlook helps sales professionals look for solutions to pending problems. When your sales professionals are positive, they will be able to handle stressful situations.

In this competitive business environment, sales professionals need to learn all the tricks of the trade in order to close a deal. By using these sales tactics that work, your sales team can learn to thrive in any economic climate.

Three Selling Techniques to Avoid and What to Do Instead

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Through Corporate Sales Training, you can learn that sometimes your potential clients may be interested in what you have to offer, but your demeanor turns them off. While the temptation to “go in for the kill” on an interested lead may arise, it’s important to be mindful of the image you project. Are they going to feel valued? Will they have a positive impression of your interaction that they’ll remember for future sales?

You may be surprised when you hear some of the more manipulative and underhanded sales tactics being used today. Negotiation is an art, and the compromise is the key to successful negotiation. Tricking customers won’t enhance your organization’s reputation or your own as a trustworthy salesperson. We’ve compiled a list of some sales tactics that may be tempting but which you should certainly avoid.

Bait and Switch

A customer enters a store planning to buy a promotional item, only to find it isn’t available or wasn’t depicted accurately in the advertisement. The salesperson then immediately encourages the more expensive option. While it may be tempting to try to get something into the hands of every customer who comes to your store, they’re going to leave disappointed if they can’t get what they intended to buy, and will only grow more frustrated if you attempt to upsell them on something they don’t want.

Instead, turn the interaction into a conversation. Ask them why they wanted that particular item and find out what they thought it would do for them. You can then offer something that fits their needs or correct any misunderstandings they may have had about the initial item. You may be able to turn a failed sale and frustration into a future sale. They’ll appreciate the time you took to answer their questions and address their needs, even if you didn’t have the right product at the time.

The “Flyfish” Close

This technique puts pressure on the buyer to make an immediate decision, possibly by offering a percentage discount if the item is purchased immediately. While you might assume that instant savings would appeal to buyers, customers know when you’re pressuring them into buying something they don’t need.
Rather than pushing for an immediate close, take the time to find out exactly what your customer is looking for and what you have that fits the bill. By taking the time to address their needs, they see you are more concerned with them being pleased with their purchase than you are with just making a sale.

Assuming the Sale

You want to ask for the sale, not assume you’ve made it. Using assumptive language with a customer is an excellent way to turn them off from buying anything from you again. Assuming the sale usually stems from the seller’s expectation that if the customer seems to be indicating that they’re buying something, they’re rude if they don’t. What actually happens is that the customer feels rushed.

Don’t assume that because the buyer displays interest that you’ve got the sale. Wait for them to make closing statements and ask them if they want to complete the sale. They may have lingering questions; address them fully so they can feel confident about their purchase.

 

The Providence of Overcoming Obstacles

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Almost every type of job needs effective problem solvers at the helm. Expert strategists are more independent, think critically, and are less likely to make mistakes once they have become accustomed to their role. A few traits great problem-solvers share include the following.

Seeing Problems as Growth Opportunities

Some of the best problem solvers are the people who keep a positive attitude. In difficult situations, this often manifests itself as a willingness to see the potential benefits of a problem which has arisen.

Those who see a difficult situation or time as a growth opportunity are not only better equipped to handle the crisis (as they are not bogged down by its gravity), they are people who use each situation to better prepare themselves for the next. People who think this way continually improve themselves as problem solvers and employees.

Working With Others to Tackle the Issue

Those who are willing to use every resource available to correct a situation are often the most successful in finding a solution. Many times, if a problem arises within a company, employees may be inclined to address it on their own. This can be due to a desire for credit or a lack of faith in their co-workers or organization.

Neither of these traits, however, are positive in the long run. Yes, it is nice to have a star employee. It is far better, however, to have a team consisting of solid people who rely on each other for the benefit of the organization. When assessing a problem, it is best to realize that though you may be perfectly competent, there is always someone whose expertise outshines your own in one area or another. Tapping into those resources is a sign of intelligence and strength.

Defining the Problem in a Clear and Reasonable Way

People who see a problem as an insurmountable obstacle or an excuse to generate gossip are rarely proactive about fixing the issue. Therefore, when confronted with a problem, the best course of action is always to view it in a logical and reasonable way. Maybe it shouldn’t have happened in the first place. Maybe someone dropped the ball. Focusing on things of that nature, though, only grows the issue. Great problem solvers can recognize a situation for what it is and keep their emotions out of the way while addressing it.

When looking at potential candidates for a position, analyze and question them on some of the most difficult problems they’ve faced professionally. If they mention working with others in the organization, remain calm and collected, and are willing to admit they

5 Little Tips to Perfecting Your Sales Approach

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The sales profession is one of the oldest and most prolific out there. Selling products can be fulfilling and enjoyable, but finding the right sales approach is often a challenge. The wrong sales approach can ruin negotiations and keep you from getting what you need from a deal. If you need to improve your sales approach, several easy, proven tips exist.

Determine Your Audience 

What do you do best? Who needs what you do or sell? How will they use it and benefit from it? Experts agree that asking questions like these can be extremely helpful even before you’ve found one client or customer. Perhaps you are a fiction writer but you don’t know who your audience is yet. Think about the genres you like best or the characters you most often create and the story arcs they experience. Then ask yourself who is likely to read that type of story. Who can relate to these characters and why? Are there books on the market similar to yours? Answering such questions will make it easier to sell your product and create a marketing vision when a publisher asks for one.

Set Measurable Goals 

Almost everyone knows about goal-setting, but most people don’t do it correctly. They set goals like “I’m going to sell more products this year” or “I’m going to increase my productivity by 10%.” These are good starting points but they aren’t real goals. Goals should be broken down into manageable steps. Instead of saying, “I will sell more products by March,” write down how much you want to sell per month. Outline the steps that will get you there, such as the ads you will write and the social media accounts you will use. Plan how you will obtain and use customer feedback.

Use Time Wisely 

Time management is a huge obstacle for many people in sales and negotiation. We often think we have more time than we do, so we procrastinate on important matters. Examine your activities each day. Which ones need to be done immediately? Which ones can wait and for how long? What tasks are easiest and most difficult? Break your activities down using a system that works for you, and stick to it.

Listen to Customers 

Even the best listeners need help maintaining their skills. Most of us get so excited about sales or negotiations that we don’t actively listen to customers’ reactions. Ask for feedback often and utilize it. Perhaps you own a sporting goods store, and your sales are down because customers find your merchandise boring or outdated. Then listen to what the customers tell you. You’ll often find they are looking for an experience alongside the product.

Learn Strengths and Weaknesses 

Every salesperson has a special set of strengths and weaknesses. These can come from his or her personality, past experiences, and many other factors. If you don’t know what yours are, you might be inadvertently turning customers off. You can learn your strengths and weaknesses, and how to capitalize on them, through corporate sales training, conferences, and other venues.

Ways to Ensure Employee Retention

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For most employers, recruiting new hires is easy. The problem comes when the same employees want to quit once they’ve worked for you only a few months or even weeks. If you struggle with employee retention, you aren’t alone. It’s a tough market for employers as well as employees, but there are things you can do to improve retention. Today, we’ll discuss why employees quit and how you can keep them from doing it.

Why Employees Quit

For every hundred employees, there are a hundred reasons to quit. According to the experts, though, the top reasons most people quit include:

  • Lack of trust. Your employees will quit if they don’t feel you treat them as adults. Stringent penalties for being five minutes late, managers constantly looking over their shoulders, or surprise meetings where they’re quizzed on performance all make employees anxious and frustrated. Most people work hard to get their jobs, and they deserve to be trusted to do what you hired them for.
  • Lack of vision. Walt Disney got the idea for Disneyland while watching his kids ride a carousel – he wanted to create a place where children and adults could have fun together. Disney had a gift for sharing his vision and getting others to believe in it. If your employees don’t know why they’re with you, they’ll leave.
  • Lack of people skills. Employees want to know you’re listening. If you ask for suggestions in a meeting, take them to heart. Don’t interrupt when a worker talks to you. Remember names and faces, and ask friendly questions.

How to Retain Employees

Now that you know why people leave jobs, you might wonder how to keep them. Most business owners agree on a few key strategies, including:

  • Know your numbers. How high is your turnover rate? What time of year do most employees leave? What departments have the highest and lowest turnover? These numbers will show you where you need to improve.
  • Look for stressors. The workplace itself is stressful, but some jobs are more demanding than others. For example, doctors, police officers, teachers, and pastors are all particularly vulnerable to burnout. Find your company’s specific stressors. Are they confined to certain departments? Pinpoint the stress and invite employees to help you address it.
  • Evaluate the hiring process. Who are you hiring and why? Many potential employees get discouraged because interviews focus on personality and “soft skills,” not the skills they need to do the job. Strike a balance between professional and personal.

How to Respond to 7 Common Sales Objections

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One of the most terrifying words in the English language is ‘NO.’ It’s the spoken expression of rejection, and it can really sting. For those who work in sales or jobs that involve heavy amounts of negotiation, and interpersonal communication the word ‘NO’ sounds like a death sentence. And a long-term string of NO’s can turn into a situation that does more than just sound like a death sentence. Human being communicate with each other all day long. Our capacity for language is what distinguishes us as a species. But, because it comes naturally to us, many of us tend to take it for granted.

Those of us who have an aversion to hearing the word ‘NO’ need to stop doing that. Really elegant communication skills are an art form, something that requires practice, study, and long-term cultivation. For people who work in sales and negotiation jobs, communication is their bread and butter. The following infographic outlines a few of the ways people say ‘NO.” It also includes some of the techniques we teach in our corporate sales training and sales negotiation training programs, to ensure that ‘NO’ is not the last word in the conversation.

INF--7-most-common-Sales-Objections-AUG-19-2015 (1)