Closing the Sale

1. Closing the Sale Learning Objectives: • Develop productive attitudes and a professional perspective toward the close. • Know the function of the close. • Discover the importance of reassuring the prospect. • Appreciate the value of persistence. • Gain knowledge of how to deal with rejection. • Develop a sense of timing in knowing when to close. • Recognize buying signals. • Study the different types of closes. • Chapter 13

2. Abraham Lincoln’s failures far exceeded his successes: • 1848 lost re-nomination • 1849 rejected for job as land officer • 1854 defeated for Senate • 1856 defeated for nomination for vice-president • 1858 defeated for Senate • 1860 elected sixteenth president of the United States • 1832 defeated in the race for the legislature • 1833 failed in business • 1834 elected to legislature • 1835 sweetheart died • 1836 suffered a nervous breakdown • 1838 defeated for speaker in the legislature • 1843 defeated for nomination to Congress • 1846 elected to Congress

3. What is a Close? • A question asked or an action taken by a salesperson designed to elicit a positive buying decision from the prospect • The process of helping people make a decision that will directly benefit them • You help make that decision by asking them to buy • Attempt to close the sale when the prospect is ready

4. A Closing Frame of Mind • Closing should be natural and easy • It should be planned like the rest of the sales process • Always Be Closing! It is integrated throughout the presentation • Closing is not a separate event tacked onto the end of the presentation • Each point of agreement is a minor close • Failure to close comes from poor performance in one of the prior steps in the process

5. A Closing Frame of Mind When each step in the sales process is handled correctly, the close is the natural conclusion to a successful sales interview.

6. Functions of the Close • The need for a close: • The moment of decision is difficult for most people • Saying ‘yes’ requires a change in the buyer’s attitude and/or behavior • Not buying leaves the situation unchanged • The buyer feels stress… and so does the salesperson! • It’s up to the salesperson to ease the buyer’s pain

7. Functions of the Close The art of closing sales is not the process of persuading people to make decisions, but the art of making decisions with which people will agree. Wife: “Honey, do you have difficulty making decisions? Husband: “Well, yes and no.”

8. Functions of the Close • Reassure and Close • Encourage them but respect their decisions • If they agree on the benefits then you are responsible to guide them to the close • Your buyers will be relieved and grateful for your efforts to close

9. A Closing Consciousness • The salesperson’s attitude • Believe in what you sell • Assume commitment - Confidence is contagious • Your attitude will communicate: • Your sincerity • Your interest in the buyer • Your belief in your product and company • Understand that rejection is not personal

10. A Closing Consciousness: Persistence Don’t stop at the first “NO”! Research suggests: Abraham Lincoln’s track record demonstrates persistence in the face of failure

11. A Closing Consciousness: Rejection • No one can make you feel inferior without your permission • Count your successes • The number of failures doesn’t matter • Failure to close a sale does not mean that you are a loser • Look at closing averages

12. Quotable Quotes “The number of failures salespeople have is not important. What counts is the number of times they succeed, and this is directly related to the number of times they can fail and keep trying.” -Tom Hopkins

13. Tactics for Dealing With Rejection • Give yourself a pep talk and frequently engage in positive self talk • Refuse to give up • Remember that you are important because of who you are, not what you do • Broaden your definition of success • Understand that the prospect may have rational reasons for not buying • Do more prospecting or work a fresh lead

14. When to Close • The closing curve demonstrates that: • 10% of prospects will never buy • 10% of prospects will be “easy” sales • 80% of prospects can be closed with a good interest-building presentation • The best psychological moment for the close may occur at any time during the presentation

15. Recognizing Buying Signals • Use the CHEF Technique • Here are some verbal and nonverbal buying signals: • Resistance: questions mean interest • Nonverbal gestures: nodding head, leaning forward, rubbing chin, tugging ear • Re-examining product or paperwork • Asking about price means they are sold on benefits • Reinforcing or agreeing with your ideas • Relaxes and becomes friendly • Verbal signals: How much is it? Sounds good!

16. The Trial Close and the Closing Question • A trial close asks for an opinion • A closing question asks for a decision • You must put the prospect in the position of having to: • Make a decision • Speak first • Respond to your close • Ask for the order and then SHUT UP!

17. Technology and Closing • Technology makes closing quicker for salespeople • Smartphones eliminate the need to return to the office for approval • Wi-Fi connections allow you to quickly go online to check the competitions’ prices • Electronic Date Interchange (EDI) • Enables companies to electronically exchange documents like purchase orders and invoices • Allows automatic replenishment of inventory on a JIT (just-in-time) basis • Shortens the overall sales cycle

18. Types of Closes • Assumptive Closes: Assume that you asked for the order and the prospect said “Yes.” Proceed to the next step. • Continuous-Yes Close • Keep asking questions that are all designed to be answered yes • Physical-Action Close • Fill out the order • Wrap it up • Order-Blank Close • Ask questions and write answers directly on the contract or order form

19. Types of Closes Assumptive Closes (cont.): • Ownership Close • Talk as if they already own the product • Create mental closure by discussing how it fits into their lifestyle • Alternate of Choice Close • An old favorite; it provides a choice between something and something • Example: “Which do you prefer?” or “Would you prefer A or B?”

20. Types of Closes • Impending Event Close • Indicate that if they do not act now they may not be able to buy in the future • It should only be used in complete honesty • Useful if a price increase is pending • The Direct Close • Has the advantage of clarity and simplicity • Ask for the order in a straightforward manner • Most direct closing approach and appeals to many buyers, especially decisive people • Should not come too early • Highly effective when salesperson has earned the customer’s respect

21. Types of Closes • The Summary Close • Summarizes the product’s benefits in a positive manner • You can easily adapt feature/benefit statements for your “summary” close • Call-Back Close • Have a reason to come back • Review everything when you call back

22. Types of Closes • The Trial Order Close • Sometimes called the puppy dog close • Appealing because of the low risk to buyer • Balance-Sheet Close • Based on the process people go through when they make a decision • Weighing the pros against the cons • The same as debits and credits, act or not act, etc. • Many salespeople do not volunteer any reasons not to buy

23. Types of Closes • Never the Best Time Close • Give examples of others who waited for the “best” moment, but it never came. • 1-2-3 Close • Summarize in sets of three items • Word it as “We will give you this, that, and the other.”

24. Types of Closes • Cost of Ownership Close • Compares long-term costs rather than up front payments • Gets the focus off the initial “price” • Reinforces savings over time • No-Hassle Close • Make completing the sale so easy that they give little thought to potential concerns in the buying process • Works because of its simplicity

25. After the Close • Be sure all details related to the purchase agreement are completed; check everything with buyer • Reassure customers by pointing out that they have made the correct decision • Thank customer for the order: in most cases a thank-you note is appropriate • Ask for referrals. Do this without fail! • Leave gracefully and quickly