Start Strong

“What it takes to win a championship is to have your preparation meet the opportunities, whether it’s out on the racetrack or behind the scenes,” according to NASCAR driver Kurt Busch.Joe Guertin, “When Did ‘Closing’ Become a Bad Word?” Agency Sales, March 2006, http://www.allbusiness.com/sales/1064380-1.html (accessed March 16, 2010). This is true in sports and in selling. Winning in selling—delivering value to customers and to your company—requires good solid preparation and hard work. Sure, there are some sales that fall into your lap. Those are the ones that make it feel like selling is easy. But most sales don’t happen that way. In fact, in many industries closing the sale may take weeks, months, or even years.

Figure 12.1

Closing the sale is more than one single event; it is an ongoing series of events that occurs throughout the selling process.

© 2010 Jupiterimages Corporation

Despite the term “close,” which implies the end, closing the sale starts with the first step in the selling process—qualifying. Sometimes salespeople want to fill their sales funnel (or pipeline) with lots of leads so they don’t take the time or ask the right questions when they are qualifying. While it’s true that you want to “go out and get as many nos as you can,” you’ll get a lot more yeses when you pitch to the right prospects.Joe Guertin, “When Did ‘Closing’ Become a Bad Word?” Agency Sales, March 2006, http://www.allbusiness.com/sales/1064380-1.html (accessed March 16, 2010). In fact, the selling process is analogous to building a house; if the foundation is poured right, everything else will easily come together. The same is true in selling—prospecting is the foundation of the entire process.Tim Connor, “The Myth of Closing Sales,” Roderick Martin, http://roderickmartin.com/the-myth-of-closing-sales (accessed November 17, 2009).

Not only does closing start at the first point in the selling process, but it also is far from the end of the selling process. In fact, closing is a lot like graduation—it is actually the beginning, not the end. Just like graduation is not the end of your education but rather the beginning or commencement of the rest of your life, the closing in sales is the beginning of the relationship with the customer, not the end of the selling process.

Closing Time

The close sounds like it might be a definitive part of the selling process. It’s actually not a single statement, question, or event. Rather, the close is an ongoing series of events that occurs throughout the selling process, according to Mary Delaney, vice president of sales for CareerBuilder.com.“Closing the Deal,” Selling Power Sales Management eNewsletter, May 17, 2004, http://www.sellingpower.com/content/newsletter/issue.php?pc=368 (accessed March 16, 2010). Qualifying is the key; it’s virtually impossible to close a sale with the wrong prospect. But the preparation doesn’t stop there. The preapproach, approach, presentation, and overcoming objections all play a role in the closing the sale. According to author Ray Silverstein, the close is made in the first thirty seconds of the sales presentation. He says that’s when a customer has an emotional response to you and your product or service story. Silverstein points to research that was conducted by William Brooks and Thomas Travisano that concludes that people want to buy from people they like and trust.Ray Silverstein, “How to Close a Sale in the First 30 Seconds,” Entrepreneur, http://www.entrepreneur.com/management/leadership/leadershipcolumnistraysilverstein/article178590.html (accessed November 17, 2009). If this sounds familiar, it should be. The concept of building a relationship based on first impressions was covered in detail in Chapter 3 "The Power of Building Relationships: Putting Adaptive Selling to Work". And understanding the difference between needs, which are rational, and wants, which are emotional, makes a difference in how your prospect perceives you and the message you are delivering.

To demonstrate that the close takes place at virtually every point in the selling process, Daniel Sheridan from Extensis Group LLC, a sales training consultancy, says it best: “If you’re waiting for a proposal to close, it’s too late.” He goes on to say that the most important meeting is the first one because that’s when trust and rapport are established.Simona Covel, “Finding the Right People to Make the Sale,” Wall Street Journal, May 29, 2008, http://online.wsj.com/article/SB121199448885726503.html (accessed November 17, 2009).

The close builds on everything that has already taken place throughout the selling process—rapport, trust, information sharing. It’s also important to know what the close is not. The close is not a high-pressure exchange between seller and buyer. It’s not a time when the salesperson resorts to trickery, manipulation, or other unsavory tactics just to get a sale.Geoffrey James, “Close More Sales: Train Your Sales Team,” Selling Power 23, no. 8, http://www.sellingpower.com/content/article.php?a=6389 (accessed March 16, 2010). While sales are the ultimate financial goal of the selling process, relationships, trust, and understanding a customer’s business and providing cost-effective solutions are driving factors behind making the sale.Ram Charan, “What Your Customer Isn’t Saying about Your Sales Pitch,” Wall Street Journal, May 29, 2008, http://online.wsj.com/article/SB121182439378120865.html (accessed November 17, 2009). The same principles that guide the rest of the selling process also guide the close.

If closing is not a specific event that happens during the selling process, you might be wondering how you effectively get the order. You learned about the trial close in Chapter 10 "The Presentation: The Power of Solving Problems". The trial close can take place during any part of the selling process. The trial close gives you the opportunity to get specific feedback from the customer as it relates to her likelihood to make the purchase at any point during the process. While the trial close is most likely to come during the presentation, it could come even earlier in the process depending on the prospect and the product or service being purchased. A trial close asks for an opinion (“What is most important to you about this product or service?”), whereas a closing question asks for a decision (“Shall we complete the paperwork?”).D. Forbes Ley, “Trial Closing Questions Tell You When to Ask for a Decision,” The Bachman Company, http://www.bachmanco.com/pretz/PDF/Trial%20Closing%20Questions.pdf (accessed November 18, 2009). The trial close gives you the opportunity to learn what the prospect is thinking and will give you some insight as to when to make the close. In some cases, the trial close may result in a close, but if it doesn’t, the prospect’s response provides valuable insight. The trial close should be done early and often throughout the selling process. Getting the prospect’s opinion at various points throughout the process helps you determine your path and how and when you should make your close.D. Forbes Ley, “Trial Closing Questions Tell You When to Ask for a Decision,” The Bachman Company, http://www.bachmanco.com/pretz/PDF/Trial%20Closing%20Questions.pdf (accessed November 18, 2009).

ABC or ABO?

There is an old adage in selling that says, “Always Be Closing” (ABC). This means that a salesperson should never miss the opportunity to close a sale, no matter where it occurs in the selling process.Michelle Nichols, “The Two-by-Four Closing Question,” BusinessWeek, April 19, 2007, http://www.businessweek.com/smallbiz/content/apr2007/sb20070419_586407.htm (accessed November 17, 2009). But in today’s collaborative environment, it’s better to approach closing more like “Always Be Opening” (ABO).Joe Takash, “Connect with the Buyer,” http://www.joetakash.com/media-resource/wp-content/uploads/2009/03/independent-agent.pdf (accessed May 16, 2010). In other words, the best strategy is to always be helping your customer identify and solve his problems, just like you do when you are opening the selling process. Focus on asking the right questions and learning about how you can suggest solutions (in some cases, the solution might not even be your product or service). When you deliver value to your prospect, they will look to you for advice and counsel. “You become much more than a salesperson, you become their marketing expert, a resource, an ally,” according to Mario Russo, general sales manager at radio station WBEN-FM in Philadelphia. “That’s when you are successful in selling.”Mario Russo, Executive Panel in Marketing 2335—Public Relations and Publicity, Saint Joseph’s University, Philadelphia, PA, November 18, 2009.

It’s true that asking for the order is critical for success in selling. But if you close too soon, you might run the risk that the customer thinks that the process is over and mentally moves on to something else.Mark Hunter, “Close Too Quick and You Lose Profit,” Fast Company, November 4, 2009, http://www.fastcompany.com/blog/mark-hunter/sales-hunter/close-too-quick-and-you-lose-profit (accessed November 17, 2009). That’s why it is a good idea to ask exploratory questionsOpen-ended, nonthreatening questions that encourage your prospect to discuss their business needs.: open-ended, nonthreatening questions that encourage your prospect to discuss her business needs. This helps supplement the information you gathered during the preapproach, enabling you to understand what the customer needs and how to meet those needs. For example, if you are selling accounting software, you might ask the following exploratory questions: “What are the top three activities that consume your people’s time daily?” “What is the ideal way you would like your people to spend their time?” “What are the types of activities that you think can be automated?”“Closing the Deal,” Selling Power, May 17, 2004, http://www.sellingpower.com/content/newsletter/issue.php?pc=368 (accessed November 17, 2009). None of these is a hard-sell question. Rather, each question allows you to listen and gather information so that you can identify how you can help the prospect solve his problem.

While you always have your eye on the prize of closing a sale, the focus is to extend your relationship with your prospect beyond selling to servicing and being a business partner. That’s what ABO is all about. When you focus your selling efforts in this way, it makes it easier to sell additional products and services to existing customers because you are constantly learning about ways in which you and your company can add value.

Ask for the Order

When you focus on delivering value to your prospects and customers, you have earned the right to close or ask for the sale. It might seem obvious, but sometimes salespeople get caught up in the selling process and lose track of the fact that it is a buying process for the prospect. Sometimes, simple questions like “Will delivery on Tuesday work for you?” or “Should we start your service the week of the twenty-first?” help you and the customer focus on moving from the sales presentation to the delivery of the product or service. The specific closing questions will most likely differ based on the product or service you are selling. For example, in pharmaceutical sales, industry sales expert Jane Williams adds, “Never end a successful close without adding the proper patient dosing.” She says, “It is very important that your physician prescribe your product properly.”“Closing Arguments,” Selling Power Pharmaceuticals eNewsletter, September 11, 2007, http://www.sellingpower.com/content/newsletter/issue.php?pc=648 (accessed March 16, 2010).

Sometimes salespeople don’t feel comfortable asking for the order. Earn the right to ask for the order. Be confident: believe in yourself and your product or service.Laura Lorber, “Three Tips for Closing a Sale,” Wall Street Journal, http://online.wsj.com/article/SB121198785761226199.html#printMode (accessed November 17, 2009). The trust you establish from the beginning will translate into how you can close the sale. Closing the sale is all about presenting solutions for the biggest problems that your prospect faces. “If you can’t help them with their biggest challenge, they won’t have time for you,” says Mary Delaney from CareerBuilder.“Closing the Deal,” Selling Power Sales Management eNewsletter, May 17, 2004, http://www.sellingpower.com/content/newsletter/issue.php?pc=368 (accessed March 16, 2010). Author Barry Farber includes the element of confidence in the closing equation by saying, “The important factor that contributes to your success at closing (or knowing when to move on) is the leverage you have going in and the confidence you have to back it up.”Barry Farber, “Wrap It Up,” Entrepreneur, April 2008, http://www.entrepreneur.com/magazine/entrepreneur/2008/april/191580.html (accessed November 17, 2009).

Not every contact results in a sale. Typically, 80 percent of prospects say no to a sales offer, and that percentage may be as high as 90 percent during these challenging economic times.“Sales Closing—Closing Throughout the Sales Cycle Process Using Different Types of Closes,” Money Instructor, http://www.moneyinstructor.com/art/saleclose.asp (accessed November 17, 2009). This underscores the fact that it usually takes several closes to actually close the sale. In some cases, it will take at least three tries. In other cases, it can take as many as five or more attempts. It’s best to view closing as an ongoing part of the process, not a single event in which a prospect can say no. Confidence and the right mental attitude can make all the difference in being able to take all the nos on the way to yeses.Joe Takash, “Connect with the Buyer,” http://www.joetakash.com/media-resource/wp-content/uploads/2009/03/independent-agent.pdf (accessed May 16, 2010).

When to Close

It’s rare that a prospect will say, “I’m ready to close this deal.” That step in the process usually belongs to the salesperson to actively close the sale. The best way to know when to close is to listen and watch. There are verbal and nonverbal cues that prospects provide that help you understand when she is ready for you to close. Here are some of the signals that the prospect is ready to buy:

• When the prospect displays positive body language and interaction. The prospect is engaged, interested, asks questions, reviews literature, and provides insights about his business.
• When the prospect asks questions. It is a good time to close after answering a question. Questions like “How long will delivery take?” or “How would that integrate into our current system?” are good cues that the prospect is close to buying.“Tips for Closing a Sale,” AllBusiness, http://www.AllBusiness.com/sales/selling-techniques-closing-sales/450-1.html (accessed November 17, 2009).
• After you handle an objection. This can be the perfect time to close, as you have just provided some insight that will help the customer make her decision.

Tips for Closing with a Committee

It’s one thing to close a deal with an individual buyer. It’s another thing to close with a buying committee. Here are four steps to close with a committee:

1. Have a specific, measurable, actionable, realistic, and time-bound (SMART) objective.
2. Know each committee member’s name and role in the decision.
3. Identify your champion on the committee.
4. Leverage your champion to help “sell” the committee for you.Steve Atlas, “Closing: How to Use the Right Techniques to Close a Committee,” Selling Power 20, no. 8, http://www.sellingpower.com/content/article.php?a=5547 (accessed March 16, 2010).

Figure 12.2

Closing with a committee has some unique challenges.

© 2010 Jupiterimages Corporation

Types of Closes

There is not a single surefire way to close every sale. You should be prepared with several different types of closes and use them as appropriate for each situation. Some situations may require a combination of closes.

What Works?

Closing is part of the selling process. A process is a systematic approach, which, by its very nature, can be measured. You won’t be able to be successful closing every sale. After all, even professional baseball players only hit the ball three times out of every ten pitches to be considered above average. While hitting the ball 100 percent of the time would be considered unrealistic, every professional hitter takes batting practice to help increase his batting average. His batting coach gives him tips as to how to stand, swing, and ultimately increase his percentage of hitting the ball. The same can be done in closing. Record the information about your closings—what works and what doesn’t.Raymund Flandez, “Sales Outsourcing First Teaches Workers to Ask A Lot of Questions,” Wall Street Journal, September 12, 2008, http://online.wsj.com/article/SB121199452139126417.html (accessed November 17, 2009).

You don’t have to wait until the close to be able to track your progress. Sales veteran and author Barry Farber suggests managing accounts and the sales process with a simple visual tool. Post your prospects in the different stages of the sales cycle on a corkboard. While there are several software programs that perform this function, there’s nothing more powerful than seeing it play out on the wall in front of you every day.Barry Farber, “Wrap It Up,” Entrepreneur, April 2008, http://www.entrepreneur.com/magazine/entrepreneur/2008/april/191580.html (accessed November 17, 2009).

Closing Complex Sales

A complex saleSale of a high-value product or service (usually over $100,000) that may take years to close. is a term that usually refers to high-value purchases (usually $100,000 and higher). Products and services such as enterprise systems, health care providers, commercial real estate, manufacturing equipment, logistics services, and other major business-to-business (B2B) purchases are considered complex sales. These types of sales have a long selling cycle because there is a lot at stake for such a major purchase and there are multiple people involved in the decision-making process. In fact, it may take as long as six months to three years to close the sale.Steve Kayser, “Shooting the Donkey in the Complex Sales Process…Hollywood Style,” http://scottymiller.wordpress.com/category/tips-on-navigating-the-complex-sale (accessed January 7, 2010). The product or service commitment is usually a long-term commitment with a contract as long as three, five, or even ten years or longer.

While the selling skills discussed throughout this book apply to complex sales, there are some differences. According to Jeff Thull, author of Mastering the Complex Sale, there are four phases to a complex sale.

1. Discover. As with any other sale, research about the prospect and his needs is critical to success. During the discover phase, you set the stage for the ongoing relationship or engagement. This stage includes your detailed research about the company and its current provider including several meetings and phone calls with the prospect. It is at this stage that the prospect determines whether the engagement has potential.
2. Diagnose. In a complex sale, the decision is likely to be centered on what should be changed, such as the location of a warehouse, and includes a collaborative effort between the salesperson and the customer to determine if the change is feasible and desirable. This stage also includes extensive financial analysis to determine the impact of the decision on the company. The role of the salesperson is to be a true business partner and help the prospect understand the trade-offs and benefits of making a major change in the operation.
3. Design. Complex sales usually involve products and services that are customized for each customer. For example, an ad campaign, software, retail fixtures, or other major purchases are adapted, adjusted, or designed exclusively for that customer. At this stage, the sales rep works closely with key people in the customer’s organization to design the best solution to fit the customer’s needs.
4. Deliver. If the first three phases are implemented correctly, this final stage should logically follow. At this point, the key people at the customer’s organization have been involved in the design and financial justification of the product or service so the presentation of the formal proposal should lead to acceptance. Then the efforts are focused on the delivery of the product or service and implementation. For products such as software and other major purchases, there may even be training, troubleshooting, and other transition issues that are handled by the salesperson.“Winning Strategies to Succeed in Complex Sales,” Prime Resource Group, March 2010, http://www.masteringthecomplexsale.com/sales-training-book-press-release.htm (accessed January 7, 2010).

During each of these phases, it’s important to identify all the decision makers and their positions in the process. As with every stage in the selling process, this is about asking the right questions. “How will your organization go about making this decision?” and “Who else do I need to talk to?” are good questions to ask during the discover phase so that you can get input and feedback from all involved at the beginning of the process. Once you identify all the people involved in the decision-making process, you’ll want to identify the decision makers. Again, the right questions will help you focus your efforts appropriately. Knowing to whom the expense will be charged helps you identify the ultimate authority. The person who controls the budget is most likely different from the person who will be evaluating the technical aspects of the product or service. For example, while the chief information officer may make the budget decision, the systems implementation manager may be evaluating the technical aspects of the software. Finally, you want to identify the “power broker,” the person who will ultimately make the final decision. This is usually the person, a subject-matter expert, who is the right hand of the person who controls the budget.“Ten Keys to Winning Complex High Dollar Sales,” Best-Coaching-Training.org, May 9, 2009, http://www.best-coaching-training.org/2009/05/29/ten-keys-to-winning-complex-high-dollar-sales (accessed January 7, 2010). In other words, you want to identify with whom you will be negotiating and ultimately closing the sale.