PowerPoint presentation prepared by Dr. Rajiv Mehta Confirming and Closing the Sale: Start the Long- Term Relationship Chapter Eight

PowerPoint presentation prepared byDr. Rajiv Mehta

Confirming and Confirming and Closing the Sale: Closing the Sale: Start the Long-Start the Long-

Term RelationshipTerm Relationship

Chapter EightChapter Eight

Copyright © Houghton Mifflin Company. All rights reserved. Chapter 8 | Slide 2

Chapter OutlineChapter 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


Learning ObjectivesLearning 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.

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Figure 8.1:Figure 8.1:The Personal Selling Process (PSP)The Personal Selling Process (PSP)

• The sixth step of the professional selling cycle


Closing and Confirming the Sale 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.

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Avoiding the CloseAvoiding 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:



Avoiding the Close Avoiding the Close cont’dcont’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


The Trial CloseThe Trial Close

• 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!


When to CloseWhen 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.



When to Close When to Close cont’dcont’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.

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?



Table 8.1 Trial Closing SignalsTable 8.1 Trial Closing Signals


Table 8.1 Trial Closing Signals Table 8.1 Trial Closing Signals cont’dcont’d


Principles of Persuasion in Closing Principles of Persuasion in Closing cont’dcont’d

3. Reciprocity Principle

• When one person does someone a favor, the second person usually feels obligated to return the favor

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

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


Principles of Persuasion in ClosingPrinciples of Persuasion in Closing

7. Friendship Principle

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

Chapter Review Question:What are some principles of persuasion?

• Prospects are more easily persuaded by salespeople they like


Table 8.2 Principles of Table 8.2 Principles of Persuasion in ClosingPersuasion in Closing


Table 8.2 Principles of Table 8.2 Principles of Persuasion in Closing Persuasion in Closing cont’dcont’d


Table 8.2 Principles of Table 8.2 Principles of Persuasion in Closing Persuasion in Closing cont’dcont’d


Closing Techniques Closing Techniques cont’dcont’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:

1. Clarification closes

2. Psychologically oriented closes

3. Straightforward closes

4. Concession closes

5. Lost sale closes



Clarification Closes Clarification Closes cont’dcont’d

3. Counterbalance Close

• Offset an objection that cannot be denied by balancing it with an important buying benefit

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

4. Success Story Close

• Tell a story about a customer with a similar problem who solved it by buying the product



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

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



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.

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.


Psychologically Oriented Closes Psychologically Oriented Closes cont’dcont’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



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

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




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


Straightforward Closes Straightforward Closes cont’dcont’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

3. Summary Close

• Summarize the advantages and disadvantages of buying the product before asking for the order




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



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.



Concession Closes Concession Closes cont’dcont’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.



Concession Closes Concession Closes cont’dcont’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


Lost Sale Closes Lost Sale Closes cont’dcont’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

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.



Table 8.3 Closing TechniquesTable 8.3 Closing Techniques


Table 8.3 Closing Techniques Table 8.3 Closing Techniques cont’dcont’d
















Table 8.4 Price Discounts Table 8.4 Price Discounts


Letting Customers Close the SaleLetting Customers Close the Sale

• 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

• Professional salespeople who strongly advocate “win-win” selling sometimes advise turning the tables on tradition by letting the customer close the sale




Silence Can Be Golden In ClosingSilence 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



Closing MistakesClosing 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:

• 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

• 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

Chapter Review Question:

Outline several closing mistakes.


Table 8.5 Closing MistakesTable 8.5 Closing Mistakes


Table 8.5 Closing MistakesTable 8.5 Closing Mistakes


How Do You Handle Sales Rejection?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.


Constructive Ways of Constructive Ways of Dealing with RejectionDealing 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


Discuss some ways for a salesperson to deal with rejection.



Table 8.6 Constructive Ways Table 8.6 Constructive Ways to Deal with Rejectionto Deal with Rejection


What Not To Do When the What Not To Do When the Prospect Doesn't BuyProspect Doesn't Buy

• 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


What should a salesperson do when the prospect doesn’t buy?

Salespeople should:



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


Immediate Post-Sale ActivitiesImmediate Post-Sale Activities

• Following a sale, there are two major concerns for salespeople:

(1) Serving and Satisfying the Customer, and

(2) Keeping the Customer Sold

• Remember that the long-range goal is customer loyalty

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Serving and Satisfying the CustomerServing 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

• 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



Keeping the Customer SoldKeeping the Customer Sold

• Remember: Winning new customers is much harder and less profitable then keeping old customers

• 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


List some immediate post-sale activities of a successful salesperson.



Key TermsKey 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.


Key Terms Key Terms cont’dcont’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.


Topics for Thought and Topics for Thought and Class DiscussionClass Discussion

1. 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?

2. What would you say to a salesperson friend who must overcome low self-confidence, guilt, and fear of failure before attempting to close sales?

3. 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?


Topics for Thought and Topics for Thought and Class Discussion Class Discussion cont’dcont’d

4. Why is it often effective for the salesperson to be silent after attempting a trial close?

5. 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?

6. Assume you have just made a substantial sale. What steps would you take to further the buyer-seller relationship?

7. 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?


Internet ExercisesInternet Exercises

1. 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?

2. Use Google or any other search engine to locate two examples of closing strategies being demonstrated using Flash or streaming video.


Projects for Personal GrowthProjects for Personal Growth

1. 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?

2. 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?

3. Survey five people in different occupations about how they deal with rejection. Would these methods also apply to personal selling? Explain how.


Case 8.1: Talk, Talk, Talk!Case 8.1: Talk, Talk, Talk!

1. Do you believe Ms. Connors would have placed an order when Fred completed his sales close? Why?

2. What do you think of Fred’s sales presentation? What improvements would you suggest?

3. Could Fred have tried a trial close before Ms. Connors left for the other meeting? If so, what should he have said?

4. What advice would you give Fred for future sales calls?


Case 8.2: She’s Got Personality…and a Case 8.2: She’s Got Personality…and a Lot More!Lot More!

1. 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?

2. 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 http://college.hmco.com/pic/andersonps2e.

http://college.hmco.com/pic/andersonps2e






Case 8.2: She’s Got Personality…and a Case 8.2: She’s Got Personality…and a Lot More! Lot More! cont’dcont’d

3. 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?

4. Outline a sales training module for new sales trainees that integrates the basic persuasion principles with different closing strategies.

Documents

PowerPoint presentation prepared by Dr. Rajiv Mehta Confirming and Closing the Sale: Start the Long- Term Relationship Chapter Eight