Steps in The Sales Process 

Lecturer Broadcast

Click here to view an explanation about the sales process.

Klik hier om na ‘n verduideliking van die verkoopsproses te luister.

Explanation by lecturer Johan Kleingeld from Edge Consulting, expert on customer services.

The sales process refers to a sequential series of actions by the salesperson that lead toward the customer taking a desired action and ends with a follow-up to ensure purchase satisfaction. Although many factors may influence how a salesperson makes a presentation in any one situation, there exist a logical, sequential series of actions that, if followed, can greatly increase the chances of making a sale. This selling process involves the following basic steps.

Step 1: Prospecting – The Lifeblood of Selling

Prospecting is the first step in the selling process. A prospect is a qualified person or organisation that has the potential to buy your product or service. Prospecting is the lifeblood of sales because it identifies potential customers. There are two reasons that a salesperson must look constantly for new prospects:

• To increase sales.
• To replace customers that will be lost over time.

The name of a person or organisation that might be a prospect can also be referred to as a lead. A lead can also be referred to as a suspect, indicating the person or organisation is suspected of being a prospect.

As a salesperson, you can ask yourself the MAD questions to determine if an individual or organisation is a qualified prospect:

• Does the prospect have the money to buy?
• Does the prospect have the authority to buy?
• Does the prospect have the desire to buy?

A simple way to remember this qualifying process is to think of the word mad. A true prospect must have the financial resources, money or credit, to pay and the authority to make the buying decision. The prospect also should desire your product. Sometimes an individual or organisation may not recognise a need for your product. Your challenge is to create a desire for the product.

Prospecting Methods

The actual method by which a salesperson obtains prospects may vary. Prospecting is the lifeblood of selling. While some salespeople do not have to prospect, most rely on prospects to increase sales and make money.

Click here to view a video about the language you use when sales prospecting.

Lecturer Broadcast

Click here to view a video that explained prospecting methods.

Click here to download the printable files for prospecting methods.

Step 2: The Pre-Approach

Click here to view a video on closing the sale.

Great care must be taken during the pre-approach contact phase of the referral cycle. Whether the initial contact is face-to-face or via telephone, the effectiveness of your approach will be the deciding factor in determining whether or not you are given the opportunity to make a sales presentation.

Many prospects will hang up the phone as soon as they suspect an attempt is being made to sell them something. If in the first several seconds, you fail to overcome their initial feelings of discomfort and intrusion, your chances of developing a relationship are slim.

Mentioning that a firm or business acquaintance of theirs recommended that you call helps alleviate some of the initial anxiety in dealing with quick objections. This is one of the reasons why working on referrals is so effective.

Certainly, people are willing to listen a bit longer if they know a person whom they trust has caused this personal contact to occur.

Here is an example: Hello, is this John? … Hi, John, my name is Charles Futrell from Merrill Lynch, George and Barbara Smith are clients of mine. I met with them last week and helped them set up their retirement programme. They were really pleased with both my products and service. And since I work primarily through referrals, they were kind enough to mention that you might be interested in learning about the value I have to offer. I would like to set up a time to stop by your home or office and share some ideas that you may find of great benefit.

Click here to view a video about sales tips.

Step 3: Approach

Given a satisfactory method of sales prospecting and an understanding of the psychology of buying, a key factor in the selling process that has yet to be addressed is obtaining a sales interview. Although cold calling (approaching a prospect without prior notice) is suitable in a number of selling situations, industrial buyers and some other types of individuals may have neither the time nor the desire to consult with a sales representative who has not first secured an appointment.

The Benefits of Appointment Making

The practice of making an appointment before calling on a prospect can save a salesperson hours of time wasted in travelling and waiting to see someone who is busy or even absent. When an appointment is made, a buyer knows you are coming. People are normally in a more receptive mood when they expect someone than when an unfamiliar salesperson pops in. Appointment-making is often associated with a serious, professional image and is sometimes taken as an outward gesture of respect toward a prospect.

From the salesperson’s point of view, an appointment provides a time set aside for the buyer to listen to a sales presentation. This is important since adequate time to explain a proposition improves the chance of making the sale. In addition, a list of appointments aids a salesperson in optimally allocating each day’s selling time. Appointments can be arranged by telephone or by contacting the prospect’s office in person.

Telephone Appointment

For obvious reasons of time and cost, salespersons usually phone to make sales appointments. Though seemingly a simple task, obtaining an appointment over the telephone is frequently difficult. Business executives generally are busy, and their time is scarce. However, these practices can aid in successfully making an appointment over the telephone:

• Plan and write down what you will say. This helps you organise and concisely present your message.
• Clearly identify yourself and your company.
• State the purpose of your call and briefly outline how the prospect may benefit from the interview.
• Prepare a brief sales message, stressing product benefits over features. Present only enough information to stimulate interest.
• Do not take no for an answer. Be persistent even if there is a negative reaction to the call.
• Ask for an interview so that you can further explain product benefits.

Phrase your appointment request as a question. Your prospect should be given a choice, such as; “Would nine or one o’clock Tuesday be better for you?”

While on the telephone, get to the point quickly (as you may have only a minute), disclosing just enough information to stimulate the prospect’s interest.

For example Mr West, this is Sally Irwin of On-Line Computer Company calling you from Birmingham, Alabama. Businessmen such as yourself are saving the costs of rental or purchase of computer systems while receiving the same benefits they get from the computer they presently have. May I explain how they are doing this on Tuesday at nine o’clock in the morning or would one o’clock in the afternoon be preferable?

Personally, Making the Appointment

Many business executives maintain gatekeepers (secretaries or receptionists) who execute established time-use policies by acting as filters for all correspondence, telephone messages and people seeking entry to the executive suite. It might thus be difficult to get an appointment with the CEO of a company.

Successful navigation of this filtration system requires a professional salesperson who:

1. is determined to see the executive and believes it can be done;
2. develops friends within the firm (many times including the gatekeepers) and
3. optimises time by calling only on individuals who make or participate in the purchase decision.

Lecturer Broadcast

Click here to view an explanation of how to have success in setting up appointments.

Step 4: Present Your Offering

Click here to view a video about your approach to the sale. The old way? or The new way?

Knowledge Increases Sales

When presenting your offering ensure that you have the following knowledge:

Know Your Company: Knowledge of your firm usually aids you in projecting an expert image to the prospect. Company knowledge includes information about the history, policies, procedures, distribution systems, promotional activities, pricing practice and technology that have guided the firm to its present status.

The type and extent of company knowledge to be used depends on the company, its product lines, and the industry. In general, consumer-goods salespeople require little information about the technical nature of their products; however, selling high-technology products (computers, rocket-engine components, complex machinery, etc.) to highly knowledgeable industrial buyers requires extensive knowledge.

All salespeople need to know the background and present operating policies of their companies. These policies are your guidelines and you must understand them to do your job effectively. Information on company growth, policies, procedures, production and service facilities is often used in sales presentations.

Here are four examples:

Company growth and accomplishment - Knowledge of your firm’s development since its origin provides you with promotional material and builds your confidence in the company.

Policies and procedures - To give good service, be able to tell a customer about policies; how an order is processed; how long it takes for orders to be filled; your firm’s returned goods policy; how to open a new account and what to do in the event of a shipping error. When you handle these situations quickly and fairly, your buyer gains confidence in you and the firm.

Production facilities - Many companies require their new salespeople to tour their production facilities to give them a firsthand look at the company’s operations. This is a good opportunity to gain product knowledge. For example, the Bigelow-Sanford Carpet Company salesperson can say, “When I was visiting our production plant, I viewed each step of the carpet-production process. The research and development department allowed us to watch comparison tests between our carpets and competitors’ carpets. Our carpets did everything but fly … and they are working on that!”

Service facilities - Many companies, such as Intel, Xerox and 3M have both service facilities and service representatives to help customers. Being able to say, “We can have a service representative there the same day you call our service centre,” strengthens a sales presentation, especially if service is important for the customer (as it is in the office copier and computer industries).

Know Your Product

Knowledge about your company’s product and your competitors is a major component of sales knowledge. Become an expert on your company’s products. Understand how they are produced and their level of quality. This type of product knowledge is important to the buyer.

Product knowledge may include such technical details as:

• Performance data
• Physical size and characteristics
• How the product operates
• Specific features, advantages and benefits of the product
• How well the product is selling the marketplace

Many companies have their new salespeople work in the manufacturing plant (for example, on the assembly line) or in the warehouse (filling orders and receiving stock).

This hands-on experience may cost the salesperson a lot of sweat and sore muscles for a couple of weeks or months, but the payoff is a world of product knowledge and help in future selling that could not be earned in any other way. International Paper, for example, has its new salespeople spend several weeks in a production plant. Often, new salespeople in the oil and gas industry roughneck and drive trucks for Engen and Shell Oil during the first few months on the job.

Also, a sales representative for McKesson Chemicals spends the first two or three weeks on the job in a warehouse unloading freight cards and flatbed trucks and filling 220-litre drums with various liquid chemicals.

Much is learned at periodic company sales meetings. At sales meetings, a consumer-goods manufacturer, such as Frito-Lay, may concentrate on developing sales presentations for the products to receive special emphasis during the company sales period. Company advertising programs, price discounts and promotional allowances for these products are discussed. Although little time is spent on the technical aspects of consumer products, much time is devoted to discussing the marketing mix for these products (product type, promotion, distribution and price).

Sales managers for firms selling technical products, such as Merck, Alcoa, and Emerson Electric might spend as much as 75% of a sales meeting discussing product information. The remaining time might be allotted to sales techniques.

Know Your Product Worth

An important part of a comprehensive marketing strategy for a product is establishing its price. Price refers to the value or worth of a product that attracts the buyer to exchange money or something of value for the product. A product has some want-satisfying attributes for which the prospect is willing to exchange something of value.

The person wants to assign a value to the item offered for sale. For instance, a golfer who wants to purchase a dozen golf balls already has conceived some estimated measure of the product’s value. Of course, the sporting goods store may have set a price higher than estimated. This could diminish want somewhat, depending on the difference between the two. Should the golfer then find the same brand of golf balls on sale at a discount store, at a price more in line with a preconceived idea of the product’s value, the want may be strong enough to stimulate a purchase.

Many companies offer customers various types of discounts from normal prices to entice them to buy. These discounts become an important part of the firm’s marketing effort. They are usually developed at the corporate level by the firm’s marketing managers. Immediately before the sales period when the product’s promotion begins, the sales force is informed of special discounts that they may offer to customers.

This discount information becomes an important part of the sales presentation. It is important for salespeople to familiarise themselves with the company’s price, discount and credit policies so that they can use them to competitive advantage and enhance their professional image with the buyer.

Barriers in Selling Presentations

Tells Instead of Sells; Does Not Ask Enough Questions - The salesperson does most of the talking. Instead of asking questions to determine a customer’s interest, the salesperson charges ahead and rattles off product benefits. This forces the customer into the passive role of listening to details that may not be of interest. As a result, the customer becomes increasingly irritated.

Over-Controls the Call; Asks Too Many Closed-End Questions - This sales dialogue resembles an interrogation and the customer has limited opportunities to express needs. The over-controlling salesperson steers the conversation to subjects the salesperson wants to talk about without regarding the customer. When the customer does talk, the salesperson often fails to listen or respond or does not acknowledge the importance of what the customer says. As a result, the customer is alienated, and the sales call fails.

Does Not Respond to Customer Needs with Benefits - Research shows a direct relationship between the result of a call and the number of different benefits given in response to customer needs; the more need-related benefits cited, the greater the probability of success.

Does Not Recognise Needs; Gives Benefits Prematurely - For example, a customer discussing telephone equipment mentions that some clients complain that the line is always busy. The salesperson demonstrates the benefits of his answering service, but the customer responds that busy lines are not important since people will call back. In this case, the customer is not concerned enough to want to solve the problem.

Does Not Recognise or Handle Negative Attitudes Effectively - The salesperson fails to recognise customer statements of objection (opposition), indifference (no need) or scepticism (doubts). What is not dealt with effectively remains on the customer’s mind and if left with a negative attitude, the customer will not make a commitment.

Makes Weak Closing Statements; Does Not Recognise When or How to Close - In one extreme case, the customer tried to close the sale on a positive note, but the salesperson failed to recognise the cue and continued selling until the customer lost interest. The lesson is that successful salespeople are alert to closing opportunities throughout the call. The most powerful way to close a sales call involves a summary of benefits that interest the customer.

Keys to Improving Your Presentation

How is the bridge from average to successful salesperson made? Xerox found it involves learning and using each of the following skills:

Ask questions to gather information and uncover needs.

• Recognise when a customer has a real need and how the benefits of the product or service can satisfy it.
• Establish a balanced dialogue with customers.
• Recognise and handle negative customer attitudes promptly and directly.
• Use a benefits summary and an action plan requiring commitment when closing.

Learn and use these five selling skills, use the other skills emphasised throughout the manual and develop your natural ability and a positive mental attitude to become a successful, professional salesperson.

Click here to view a video on how to sell anything to anybody, anytime.

Step 5: Trial Close

Your prospect has raised an objection that you have answered and overcome; now what? First, use a trial close, then either return to your presentation or close the sale.

First, Use a Trial Close – Ask For Opinion

After meeting an objection at any time during the interview, you need to know if you have overcome the objection. If you have not overcome it, your prospect may raise it again. Whether it resurfaces or not, if your prospect believes that an objection was important, your failure to handle it or your mishandling of it will probably cost you the sale. Ideally, all objections raised should be met before closing the sale. So, after responding to the objection, use a trial close to determine if you have overcome the objection. Ask questions such as:

• That clarifies this point entirely, don’t you agree?
• That’s the answer you are looking for, isn’t it?
• With that question out of the way, we can go ahead – don’t you think?
• Do you agree with me that we’ve covered the question you raised and given you a way to handle it?
• Now that’s settled, isn’t it?
• That solves your problem, doesn’t it?

Once you have confirmed overcoming an objection, immediately go to the next SELL sequence step. To signal that the last step is over and that you are moving on, use body language as you speak. That is, make an appropriate gesture, look in a new direction, turn the page of your proposal or shift in your chair - make some physical movement.

Now, do one of two things (assuming you have handled the objection): either return to your presentation or close the sale.

If you are 100% sure that you cannot overcome the objection and that the prospect will not buy, go ahead and close. Always ask for the order. Never be afraid to ask your prospect to buy. The buyer says no to the product - not you. Someone else may walk into the prospect's office after you with a product similar to yours. Your competitor also may be able to overcome this person’s objection, but he or she may get the sale nonetheless just by asking for it!

Click here to view a video on the art of the trail closures.

Step 6: Determine and Meet Objections

When a prospect first gives an objection, smile, because that is when you start earning your salary. You want to receive personal satisfaction from your job and at the same time increase your salary – right? Well, both occur when you accept objections as a challenge that, handled correctly, benefits both your prospect and you. The more effectively you meet customers’ needs and solve their problems, the more successful you will be in sales. If you fear objections, you will fumble your response, which often causes failure.

Remember, while people want to buy, they do not want to be taken advantage of. Buyers who cannot see how your offering will fulfil their needs ask questions and raise objections. If you cannot effectively answer the questions or meet the objections, you will not make the sale. It is your fault, not the buyer’s; that the sale was not made if you sincerely believe your offering fulfils a need by the prospect but still will not buy. The salesperson who can overcome objections when they are raised and smoothly return to a presentation will succeed.

Interestingly, prospects who present objections often are easily sold on your product. They are interested enough to object; they want to know what you have to offer.

Opposition or resistance to information or to the salesperson’s request is labelled a sales objection. Sales objections must be welcomed because they show prospect interest and help determine what stage the prospect has reached in the buying cycle – attention, interest, desire, conviction or readiness to close.

Click here to view a video about the nine common objections to closing to close the sale.

Four Major Categories of Objections

Most objections that salespeople encounter are placed into the six categories. Know how you will handle each situation before it occurs. An advanced idea about how you handle these objections will help you become a better salesperson by improving your image as a problem solver.

The Hidden Objection: Prospects that ask trivial, unimportant questions or conceal their feelings beneath a veil of silence have hidden objections. They do not discuss their true objections to a product because they may feel that they are not your business, they are afraid objections will offend you or they may not feel your sales call is worthy of full attention.

Such prospects may have a good conversation with you without revealing their true feelings. You have to ask questions and carefully listen to know which questions to ask in order to reveal their real objections to your product. Learning how to determine what questions to ask a prospect and how to ask them are skills developed by conscious effort over time. Your ability to ask probing questions improves with each sales call if you try to develop this ability.

With prospects who are unwilling to discuss their objections or who may not know why they are reluctant to buy, be prepared to smoke out objections by asking questions. Do what you can to reveal the objections. Consider the following questions:

• What would it take to convince you?
• What causes you to say that?
• Let’s consider this, suppose my product would [do what prospect wants] … then you would want to consider it, wouldn’t you?
• Tell me, what is really on your mind?

Uncovering hidden objections is not always easy. Observe the prospect’s tone of voice, facial expressions and physical movements. Pay close attention to what the prospect is saying.

You may have to read between the lines occasionally to find the buyer’s true objections. All these factors will help you discover whether objections are real or simply an excuse to cover a hidden objection.

Prospects may now know consciously what their real objections are. Sometimes they claim that the price of a product is too high. In reality, they may be reluctant to spend money on anything. If you attempt to show that your price is competitive, the real objection remains unanswered and no sale results. Remember, you cannot convince anyone to buy until you understand what a prospect needs to be convinced of.

If, after answering all apparent questions, the prospect is still not sold, you might subtly attempt to uncover the hidden objection. You might ask the prospect what the real objection is. The direct inquiry should be used as a last resort because it indirectly may amount to calling the prospect a liar, but if it is used carefully, it may enable the salesperson to reveal the prospect’s true objection. Smoking out hidden objections is an art form developed over time by skilful salespeople. Its successful use can greatly increase sales. This approach should be used carefully, but if it enables the salesperson to uncover a hidden objection, then it has served its purpose.

The Stalling Objection

When your prospect says, “I’ll think it over”, or “I’ll be ready to buy on your next visit.” You must determine if the statement is the truth or if it is a smoke screen designed to get rid of you. The stalling objection is a common tactic.

What you discovered in developing your customer profile and customer benefits plan can aid you in determining how to handle this type of objection. Suppose that before seeing a certain retail customer, you checked the supply of your merchandise in both the store’s stockroom and on the retail shelf and this occurs:

Buyer: “I have enough merchandise for now. Thanks for coming by.”

Salesperson: “Ms. Marcher, you have 50 cases in the warehouse and on display. You sell 50 cases each month, right?”

You have forced her hand. This buyer either has to order more merchandise from you or tell you why she is allowing her product supply to dwindle. When the prospect says, “I’m too busy to see you now.” You might ask. “When would be a good time to come back today?”

Another common stall is the alibi that your prospect must have approval from someone else, such as a boss, buying committee, purchasing agent, or home office. Since the buyer’s attitude toward purchasing your product influences the firm’s buying decision, it is important that you determine the buyer’s attitude toward your product.

When the buyer stalls by saying, “I will have to get approval from my boss,” you can counter by saying, “If you had the authority, you would go with the purchase, wouldn’t you?” If the answer is yes, chances are that the buyer will positively influence the firm’s buying decision. If not, you must uncover the real objections. Otherwise, you will not make the sale.

An additional response to the “I’ve got to think it over” stall is, “What are some of the issues you have to think about?” Or you may focus directly on the prospect’s stall by saying, “Would you share with me something that holds you back?”

Another effective response to “I have got to talk to my boss” is, “Of course you do. What are some things that you would talk about?” This allows you to agree with the reluctant prospect. You are now on the buyer’s side. It helps encourage the buyer to talk and to trust you. This empathetic response (“Of course you do.”) puts you in the other person’s position.

Sometimes, the prospect will not answer the question. Instead, the response is, “Oh, I just need to get an opinion.” You can follow up with a multiple-choice question such as, “Would you explore whether this is a good purchase in comparison with a competitor’s product or would you wonder about the financing?” This helps display an attitude of genuine caring.

As with any response to an objection, communicate a positive attitude. Do not get demanding, defensive or hostile. Otherwise, your nonverbal expressions may signal a defensive attitude – reinforcing the prospect’s defences.

Your goal in dealing with a stall is to help prospects realistically examine reasons for and against buying now. If you are absolutely sure it is not in their best interest to buy now, tell them so. They will respect you for it. You will feel good about yourself. The next time you see these customers; they will be more trusting and open with you.

However, the main thing to remember is to not be satisfied with a false objection or a stall. Tactfully pursue the issue until you have unearthed the buyer’s true feelings about your product. If this does not work:

• present the benefits of using your product now;
• if there is a special price deal, mention it; and
• if there is a penalty for delay, mention it. Bring out any or all of your main selling benefits and keep on selling!

The No-Need Objection

The prospect says, “Sounds good. I really like what you had to say and I know you have a good product, but I am not interested now. Our present product [or supply or merchandise] works well. We will stay with it.” Standing up to conclude the interview, the prospect says, “Thanks very much for coming by.” This type of objection can disarm an unwary salesperson.

The no-need objection is used widely because it politely gets rid of the salesperson. Some salespeople actually encourage it by making a poor sales presentation. They allow prospects to sit and listen to a sales pitch without motivating them to participate by showing true concern and asking questions. Therefore, when the presentation is over, prospects can say quickly, “Sounds good, but…” In essence, they say no, making it difficult for the salesperson to continue the call. While not always a valid objection, the no-need response strongly implies the end of a sales call.

The no-need objection is especially tricky because it also may include a hidden objection and/or a stall. If your presentation was a solo performance or a monologue, your prospect might be indifferent to you and your product, having tuned out halfway through the second act. You might resurrect your presentation by asking questions.

The Money Objection

The money objection encompasses several forms of economic excuses. I have no money; I do not have that much money. It costs too much, or your price is too high. These objections are simple for the buyer to say, especially in a recessionary economy.

Often, prospects want to know the product’s price before the presentation, and they will not want you to explain how the product’s benefits outweigh its costs. Price is a real consideration and must be discussed, but it is risky to discuss product price until it can be compared to product benefits. If you successfully postpone the price discussion, you must eventually return to it because your prospect seldom forgets it. Some prospects are so preoccupied with the price that they give minimal attention to your presentation until the topic re-emerges.

Get to know the prospect and the prospect’s needs. Show your true interest. Do not try to get all of the business at once – go for a trial run, a small order. It is important to learn exactly what bothers the prospect by applying the following techniques to meet objections.

Step 7: Close

Closing begins the relationship. Successful salespeople do not give a presentation and then ask for the order. Successful salespeople cultivate selling techniques that help develop a natural instinct, sensitivity and timing for when and how to close with each buyer.

Closing is the process of helping people make a decision that will benefit them. You help people make the decision by asking them to buy. As successful salespeople know, there are no magic phrases and techniques to use in closing a sale. It is the end result of your presentation. If everything has been done to properly develop a sales presentation, closing the sale is the next step in a logical sequence.

Although it seems obvious, some salespeople forget that prospects know that the salesperson is there to sell them something. So, as soon as they meet, the prospect’s mind already may have progressed beyond the major portion of the salesperson’s presentation. At times, the prospect may be ready to make the buying decision early in the interview.

So when should you attempt to close a sale? Simply, when the prospect is ready! More specifically, when the prospect is in the conviction stage of the mental buying process. A buyer can enter the conviction stage at any time during the sales presentation. You might ask someone to buy as early as the approach stage or as late as another day. Much of the time, however, the close comes after the presentation. The ability to read a prospect’s buying signals correctly helps a salesperson decide when and how to close a sale.

After prospects negotiate each stage of the mental buying process and are ready to buy, they often give you a signal. A buying signal refers to anything that prospects say or do indicate they are ready to buy. Buying signals hint that prospects are in the conviction stage of the buying process.

Click here to view a video about recognising buying signals.

Reading the Buying Signals

Here are several ways prospective buyers signal readiness to buy:

Ask questions – “How much is it?” “What is the earliest time that I can receive it?” “What are your service and returned goods policies?” At times, you may respond to a buying signal question with another question. This helps determine your prospect’s thoughts and needs. If your question is answered positively, the prospect is showing a high-interest level and you are nearing the close.

Asks another person’s opinion – The executive calls someone on the telephone and says, “Come in here a minute; I have something to ask you”, or the husband turns to his wife and says, “What do you think about it?”

Relaxes and becomes friendly – Once the prospect decides to purchase a product, the pressure of the buying situation is eliminated. A state of visible anxiety changes to relaxation because your new customer believes that you are a friend.

Pulls out a purchase order form – If, as you talk, your prospect pulls out an order form, it is time to move toward the close.

Carefully examines merchandise – When a prospect carefully scrutinises your product or seems to contemplate the purchase, this may be an indirect request for prompting. Given these indications, attempt a trial close; “What do you think about?” If you obtain a positive response to this question, move on to close the sale.

A buyer may send verbal or nonverbal buying signals at any time before or during your sales presentation. The accurate interpretation of buying signals should prompt you to attempt a trial close. In beginning a trial close, summarise the major selling points desired by your prospect. If you receive a positive response to the trial close, you can wrap up the sale. A negative response should result in a return to your presentation or determine objections. In any case, a successful trial close can save you and your prospect valuable time, while a thwarted trial close allows you to assess the selling situation.

Good closers have a strong desire to close each sale. They have a positive attitude about their product’s ability to benefit the prospect. They know their customers and tailor their presentations to meet each person’s specific needs.

Good closers prepare for each sales call. They take the time to carefully ascertain the needs of their prospects and customers by observing, asking intelligent questions and most of all, by earnestly listening to them. To be successful, salespeople should know their ABCs. ABC is an acronym for Always Be Closing. Be alert for closing signals and close when the prospect is ready to buy.

The successful salesperson does not stop with the prospect’s first "no". If a customer says no, determine the nature of the objection and then return to the presentation. After discussing information relative to overcoming the objection, use a trial close to determine if you have overcome the objection and then determine if there are other objections. If resistance continues, remain positive and remember that every time you attempt to close, you are closer to the sale. In addition, always ask for the order and then be silent.

How to Close?

Ask for the order and be quiet... No matter when or how you close, remember that when you ask for the order, it is important to be silent. Do not say a word. If you say something – anything – you increase the probability of losing the sale.

You must put the prospect in a position of having to make a decision, speak first and respond to the close. If you say anything after your close, you take the pressure off the prospect to make that decision.

Imagine this situation: The salesperson has finished the presentation and says, “Would you want this delivery in two or four weeks?” The average salesperson cannot wait more than two seconds for the prospect’s reply without saying something like, “I can deliver it anytime”, or starting to talk again about the product. This destroys the closing moment. The prospect does not have to make the decision. There is time to think of reasons not to buy. By keeping quiet for a few seconds, the prospect cannot escape making the decision.

All individuals experience the urge to say no, even when they are not sure of what you are selling or when they may want what you propose. At times, everyone is hesitant in making a decision. To help the prospect make the decision, you must maintain silence after the close.

The professional salesperson can stay quiet all day, if necessary. Rarely will the silence last over 30 seconds. During that time, do not say anything or make a distracting gesture merely project positive nonverbal signs. Otherwise, you will lessen your chances of making the sale. This is the time to mentally prepare your response to the prospect’s reaction.

It sounds simple, yet it is not. Your stomach may churn. Your nerves make you want to move. You may display a serious look on your face instead of a positive one. You may look away from the buyer. Most of all, you may want to talk to relieve the uncomfortable feeling that grows as silence continues. Finally, the prospect will say something. Now, you can respond based on your reaction to your close.

Constantly practice asking your closing question, staying silent for 30 seconds and then responding. This will develop your skill and courage to close.

Get the order and move on... Talking also can stop the sale after the prospect has said yes. An exception would be if you ask the customer for names of other prospects. Once this is done, it is best to take the order and move on.

In continuing to talk, you may give information that changes the buyer’s mind. So, ask for the order and remain silent until the buyer responds. If you succeed, finalise the sale and leave.

In short: While there are many factors to consider in closing the sale, the following items are essential if you wish to improve your chances:

• Be sure your prospect understands what you say.
• Always present a complete story to ensure understanding.
• Tailor your close to each prospect. 80% of your customers will respond to a standard close. It is the other 20% of customers that you need to prepare for. Prepare to give the expert customer all facts requested to give the egotistical customer praise, to lead the indecisive customer and to slow down for a slow thinker.

Closing Techniques

To successfully close more sales, you must determine your procrastination situation, understand the prospect’s attitude toward your presentation and be prepared to select instantly a closing technique from several techniques based on your prospect.

For example, suppose you profiled the prospect as having a big ego, so you planned to use the compliment closing technique. You find the prospect is eager to buy, so you switch to using your standing-room-only closing technique. By changing to a closing technique that first the situation, you can speed the sale and keep your customer satisfied.

Successful salespeople adapt a planned presentation to any prospect or situation that may arise. Some salespeople have up to 11 closing techniques, each designed for a specific situation.

Whatever product is sold, whether an industrial or consumer product, the closing techniques are used to ask a prospect for the order.

ONE: The Alternative Choice Close Is an Old Favourite

The alternative-choice close was popularised in the 1930s as the story spread of the Walgreen Drug Company’s purchase of 800 dozen eggs at a special price. A sales trainer named Elmer Wheeler suggested to the Walgreen clerks that when a customer asked for malted milk at a Walgreen fountain, the clerk should say, “Do you want one egg or two?” Customers had not even thought of eggs in their malteds. Now, they were faced with the choice of how many eggs - not whether or not they wanted an egg. Within one week, all 800 dozen of the eggs were sold at a profit.

Two examples of the alternative close are:

• Which do you prefer – one or two neckties to go with your suit?
• Would you prefer the Xerox 6200 or 6400 copier?

As you see, the alternative choice does not give prospects a choice of buying or not buying but asks which one or how many items they want to buy. It says, “You are going to buy, so let’s settle the details on what you will purchase.” Buying nothing at all is not an option.

Take, for example, the salesperson who says; “Would you prefer the Xerox 6200 or 6400?” This question:

1. Assumes the customer has the desire to buy one of the copiers.
2. Assumes the customer will buy; and
3. Allows the customer a preference. If the customer prefers the Xerox 6400, you know the prospect is ready to buy, so begin the close.

A customer who says, “I’m not sure,” is still in the desired stage, so you continue to discuss each product’s benefits. However, you see that the customer likes both machines. Should the prospect appear indecisive, you can ask; “Is there something you are unsure of?” This question probes to find out why your prospect is not ready to choose.

If used correctly, the alternative-choice close is an effective closing technique. It provides a choice between items, never between something and nothing. By presenting a choice, you either receive a yes decision or uncover objections, which if successfully met, allow you to come closer to making the sale.

TWO: The Assumptive Close

With the assumptive close, the salesperson assumes the prospect will buy. Statements can be made such as, “I’ll call your order in tonight” or “I’ll have this shipped to you tomorrow.” If the prospect does not say anything, assume the suggested order has been accepted.

Many times, the salesperson who has called on a customer for a long time can fill out the order form, hand it to the customer and say, “This is what I am going to send you”, or “This is what I believe you need this month.” Many salespeople have earned customer trust to such an extent that the salesperson orders for them. Here, the assumptive close is especially effective.

THREE: The Compliment Close Inflates the Ego

Everyone likes to receive compliments. The compliment close is especially effective when you talk with a prospect who is a self-styled expert, who has a big ego or who is in a bad mood. Would-be experts and egotistical prospects value their own opinions. By complimenting them, they listen and respond favourably to your presentation. The prospect with low self-esteem or one who finds it difficult to decide also responds favourably to a compliment. Here is an example of a housewares salesperson closing a sale with a grocery retail buyer.

Salesperson: “Obviously, you know a great deal about the grocery business. You have every square foot of your store making a good profit. Ms Stevenson, our products also will provide you with a good profit margin. In fact, our profit will exceed your store’s average profit per square foot. And they sell like hotcakes. This added benefit of high turnover will further increase your profits – which you have said is important to you. [He pauses and when there is no response, he continues.] Given the number of customers coming into your store and our expected sales of these products due to normal turnover, along with our marketing plan. I suggest you buy [he states the products and their quantities]. This will provide you with sufficient quantities to meet your customer’s demands for the next two months, plus provide you with the expected profit from your products. [Now he waits for the response or again asks for the order using the alternative choice or assumptive close.]

Al buyers appreciate your recognition of their better points. Conscientious merchants take pride in how they do business: customers entering the retail clothing store take pride in their appearance; people considering life insurance take pride in looking after their families. So, compliment prospects relative to something that will benefit them as you attempt to close the sale.

Remember, always make honest compliments. No matter how trusting you may think people are, nearly anyone can detect instantly in a compliment. When a compliment is not in order, summarise the benefits of your product for a specific customer.

FOUR: The Summary of Benefits Close Is Most Popular

During the sales presentation, remember the main features, advantages and benefits of interest for the prospect and use them successfully during the close. Summarise these benefits in a positive manner so that the prospect agrees with what you say; then ask for the order.

Here is an example of using the summary-of-benefits close on a prospect. Assume that the prospect indicates during your sales presentation that she likes your profit margin, delivery schedule and credit terms.

Salesperson: “Ms. Stevenson, you say you like our profit margin, fast delivery and credit policy. Is that right?” [Summary and trial close.]

Prospect: “Yes, I do.”

Salesperson: “With the number of customers in your store and our expected sales of the product due to normal turnover, along with our marketing plan, I suggest you buy [state the products and their quantities.] This will provide you with sufficient quantities to meet customer demand for the next two months, plus provide you with the profit you expect from your products. I can have the order to you early next week.” [Now wait for her response.]

You can easily adapt the FAB statements and SELL Sequence for your summary close. The vacuum cleaner salesperson might say, “As we have discussed, this vacuum cleaner’s high-speed motor [feature] works twice as fact [advantage] with less effort [advantage], saving 15 to 30 minutes in cleaning time [benefit] and the aches and pains of pushing a heavy machine [benefit of benefit]. Right? [Trial close. If positive response, say: "Would you want the Deluxe or the Ambassador model?”

The sporting goods salesperson might say, “As we have said, this ball will give you an extra 10 to 20 yards on your drive [advantage], helping to reduce your score [benefit] because of its new solid core [feature]. That’s great – isn’t it? [Trial close] If positive response, salesperson: Will a dozen be enough?”

The air conditioning salesperson could say, “This air conditioner has a high efficiency rating [feature] that will save you 10% on your energy costs [benefit] because it uses less electricity [advantage]. What do you think of that? [Trial close] If positive response, say: “Would you want it delivered this week or do you prefer next week?”

The summary close is possible the most popular method to ask for the order. Emmett Reagan, sales trainer consists of these three basic steps of the summary close: (1) determine the key product benefits that interest the prospect during the presentation, (2) summarise these benefits and (3) make a proposal. The summary-of-benefits technique is useful when you need a simple, straightforward close rather than a close aimed at a specific prospect’s personality.

FIVE: The Continuous Yes Close Generates Positive Responses

The continuous-yes close is like the summary close. However, instead of summarising product benefits, the salesperson develops a series of benefit questions that the prospect must answer.

Salesperson: “Ms. Stevenson, you have said you like our quality products, right?"

Prospect: “Yes, that’s right.”

Salesperson: “And you like our fast delivery?”

Prospect: “Yes, I do.”

Salesperson: “You also like our profit margin and credit terms?”

Prospect: “That’s correct.”

Salesperson: “Ms. Stevenson, our quality products, fast delivery, profit margin and good credit terms will provide you with an excellent profit." [With the large number of customers you have coming into your store, the salesperson completes the close as done in the summary-of-benefits close.]

In this example of the continuous-yes close, the salesperson recognised four product benefits that the prospect liked:

• the product’s quality,
• fast delivery,
• profit margin, and
• favourable credit terms.

After the presentation, three questions were used to give the prospect the opportunity to agree that she was impressed with each of the four product benefits. By stacking these positive questions, the salesperson kept the prospect continually saying, “Yes, I like that benefit.”

The prospect has placed her in a positive frame of mind. Her positive stance toward the product makes it likely that she will continue to say “yes” when asked to buy.

Realise, of course, that some prospects may want to be cute and relish the thought of seeing the look of surprise on your face when, after they agree to all of your product benefit statements (yes … yes … yes), they respond to your request with an unexpected no. Also, suspicious prospects may view your continuous-yes close as trickery or as an insult to their intelligence rather than aiding a purchase decision.

In either case, calmly handling the situation reflects a sales professionalism that both surprises the trickster and impresses the suspicious person.

SIX: The Minor-Points Close Is Not Threatening

It is sometimes easier for a prospect to concede several minor points about a product than to make a sweeping decision on whether or not to buy. Bid decisions are often difficult for some buyers. By having the prospect make decisions on a product’s minor points, you can subtly lead into the decision to buy.

The minor-points close – is similar to the alternative-choice close. Both methods involve giving the buyer a choice between two options. The alternative-choice close asks the prospect to make a choice between two products, which represents a high-risk decision to some people that they may prefer not to make.

SEVEN: The Standing-Room-Only- Close Gets Action

What happens if someone tells you that you cannot have something that you would like to have? You instantly want it! When you face an indecisive prospect or if you want to have the prospect purchase a larger quantity, indicate that if they do not act, they may not be able to buy in the future. Motivate the prospect to act immediately by using the standing-room-only close.

• I’m not sure if I have your size. Would you want them if I have them in stock?
• My customers have been buying all we can produce. I’m not sure if I have any left to sell you.
• Well, I know you are thinking of ordering X amount, but we really need to order (a larger amount) because we now have it in stock and I don’t think we will be able to keep up with demand and fill your summer order.
• The cost of this equipment will increase 10% next week. Can I ship it today or do you want to pay the higher price?

For the right product, person and situation, this is an excellent close. Both retail and industrial salespeople can use this technique to get prospects so excited that they cannot wait to buy. However, it should be used honestly. Prospects realise that factors such as labour strikes; weather, transportation, inflation and inventory shortages could make it difficult to buy in the future. Do them a favour by encouraging them to buy now using the standing-room-only close.

EIGHT: The Probability Close

When the prospect gives the famous, I want to think it over the objection or some variation, try saying, “Ms Prospect, that would be fine, I understand your desire to think it over, but let me ask you this – when I call you back next week, what is the probability, in percentage terms out of a total of 100, that you and I will be doing business?” Then pause and do not say another word until the prospect speaks.

The prospect’s response will be from three possible categories:

More than 50% but less than 85% for buying. If your prospects respond in this range, ask what the remaining percent is against buying then pause and be silent. When you become skilled in this technique, you will see prospects blink as they focus on their real objections. Many times, we hear that prospects want to think it over. It is not because they want to delay the decision; it is because they do not fully understand what bothers them. The probability close permits your prospects to focus on their real objections. Once you have a real objection, convert that objection into a persuasive sales argument.

Above 85% but not 100% for buying. It they are in this range, recognise that there is a minor probability against you. You might want to say, “As it is almost certain that we will do business together, why wait until next week? Let’s go ahead now and if you decide in the next couple of days that you want to change your mind, I’ll gladly tear up your order. Let’s get a running start on this project together.”

When prospects indicate a high percentage of probability, you can use their statements as a lever to push them over the top.

Less than 50% for buying. This is a signal that there is little if any, chance that you will ever close this particular sale. The only appropriate tactic is returning to square one and starting the reselling process. It is amazing how many professional salespeople in a closing situation expect the prospect to say 80-20 as a probability in their favour and instead, they hear “80-20 against”.

The probability close permits prospects to focus on their objections. It allows the true hidden objections to surface. The more prospects fight you and the less candid they are about the probability of closing, the less likely they will buy anything.

NINE: The Negotiation Close

Every sale is a negotiation. Most sales negotiations focus on two major themes; value and price. Customers often demand more value and lower prices. In their quest for more value at a lower cost, prospects often resort to unfair tactics and put heavy pressure on the salesperson. The purpose of a good sales negotiation close is not to haggle over who gets the larger slice of pie but to find ways for everyone to have a fair deal. Both the buyer and seller should win. Here are two examples of a salesperson using a negotiation close:

• If we could find a way in which we would eliminate the need for a backup machine and guarantee availability, would you be happy with this arrangement?
• Why don’t we compromise? You know I can’t give you a discount, but I could defer billing until the end of the month. That’s the best I can do. How does that sound?

When you hit a tennis ball over the net, the kind of spin put on the ball determines the type of return shot received. In negotiation, the attitude that you project determines the attitude you receive. Be positive! Be helpful! Be concerned! Show your interest in helping the prospect.

TEN: The Technology Close

Picture this! You have just completed the discussion of your product, marketing plan and business proposition. You summarise your product’s main benefits to your customer. Now you bring out your laptop computer, place it on the buyer’s desk so she can see the screen, or prepare to project the computer screen onto the wall. Using graphs and bar charts, you show the buyer's past purchases and sales trends. Then you call up your recommended purchase suggestion. If appropriate, you can show payment schedules considering different quantity discounts. This technology close is very impressive to buyers.

The exact use of technology in closing a sale depends on the type of product and customer you are selling. Without a doubt, incorporating technology into your presentation will help you close more prospects and customers.

ELEVEN: Prepare a Multiple-Close Sequence

By keeping several different closes ready in any situation, you are in a better position to close more sales. Also, the use of a multiple-close sequence, combined with methods to overcome objections, enhances your chance of making a sale.

For example, you could begin with a summary close. Assuming the buyer says no, you could rephrase the objections and then use an alternative close. If again the buyer says no and would not give a reason, you could use the five-question sequence method for overcoming objections, repeating it two or three times.

Jane Martin, who works for an electrical wholesaler uses both methods to overcome objections and closing techniques. First, she uses the summary-of-benefits close and then waits for a response. Martin does not rush.

She realises it is a big decision and is prepared to handle resistance and asks for the order several times. The buyer is sending out green signals, so Martin does not stop, she continues to respond to the buyer.

The buyer finally gives the real reason for not buying when he says, “No. My supervisor will not let me buy anything.” By professionally handling John’s objections and politely continuing to close, Jane is in a position to talk with the real decision-maker – John’s boss.

In Closing

Since different closing techniques work best for certain situations, salespeople often identify the common objections they encounter and develop specific closing approaches designed to overcome these objections.

Assume, for example, that a buyer has a predetermined belief that a competitor’s product is needed. The salesperson could use the T-account approach to show how a product’s benefits are greater than a competitor’s product. In developing your sales presentation, review your customer profile and develop your main closing technique and several alternatives. By being prepared for each sales call, you experience increased confidence and enthusiasm, which results in a more positive selling attitude. You can help the customer and reach your goals.

STEP 8: Follow Up

Good, follow-up will double your closing ratio. When a salesperson makes contact with a prospect a relationship has been built and follow-up is how it is nurtured. Staying at the forefront of a prospect’s mind requires persistence and should not be confused with being bothersome. This is why it’s important to get agreement on some next step each time there is contact. Follow up therefore should never end. The pace may slow but it will never end. When a sale is made, then a new type of follow-up begins.

Follow-up conversations are best handled by the salesperson that started the relationship. Who else can better gauge a prospect’s “willingness to buy” or pick up where “we last left off”? This means that detailed notes must be kept on each prospect with particular emphasis on their “state of mind”. It is unwise and ineffective to keep track of this information anywhere other than a centralised database.

Additional note: It’s important to hold some follow-up ammunition in reserve. Overwhelming your prospects with every piece of information you possess on their first request hampers your ability to stay in touch. Having a stable of collateral materials gives you a reason to follow up.

Click here to view a video on the three effective sales follow-up tips.