Closing a sale is the culmination of all the hard work that goes into the sales process. It seems that everything sounds very simple - just convince the client of your offer's value, and then he pays you money. However, there are many nuances on which the success of the deal depends. That's why, 35% of sales managers find closing a sale the most challenging in the entire process.
The art of closing deals is crucial for anyone involved in sales, as it directly impacts the bottom line of a business. Statistically, only 47% of deals succeed. In other words, a large half of sales managers' work fails. There are many reasons for this, one of which is the wrong sales technique.
At Redtag, we are dedicated to helping businesses maximize sales and build outstanding customer experiences across industries. Let's take a case study of our cooperation with a company in the healthcare industry. This is quite a complex area, but our background and Salesforce implementation expertise have helped improve business performance.
In this article, we will explore five powerful closing techniques that can make the difference between success and failure in sales:
- Now or Never Close
- Summary Close
- Assumptive Close
- Sharp Angle Close
- Question Close
The Now or Never Close
"Last item left on the site", "Special price is only valid for 60 minutes" and other slogans that create a limited-time offer – this is the “Now or Never” technique in action.
The Now or Never Close is a technique that leverages the psychological concept of urgency. It's based on the idea that people are more likely to take action when considering they might miss out on a great opportunity. In the context of sales, this means creating a sense of urgency to push prospects toward making a decision immediately.
To employ the Now or Never Close, use language that conveys a limited-time offer or a scarcity of the product or service.
For instance:
- “We're down to our final [product], and once it's gone, it won't be back in stock."
- "Act now to secure a 30% discount on your purchase, available exclusively for today's buyers."
- "By signing up today, you'll jump to the front of the line in our implementation queue, ensuring a faster setup process."
- "Hurry, this special pricing is valid only until [date], so take advantage of the lower rates while you still can."
The "Now or Never" sales technique works best in the following cases:
- A limited quantity of a product or service is available. For example, you've released a restricted edition of books, launched a limited edition clothing collection, or have 5 spots left for a consultation before a certain date.
- Special sales events, holiday discounts, or promotions tied to specific occasions. Christmas, Black Friday, International Women's Day, and Valentine's Day are among the most popular holidays for consumers to do shopping.
- New product launch. You are introducing a new product or service, highlighting its initial availability and the limited-time nature of introductory pricing can motivate early adopters.
- Competitive advantage. If you're aware that competitors are also targeting the same prospects, the "Now or Never" technique can be used to showcase your unique advantages and the need for swift decision-making to secure those advantages.
Summary Close
You don't need to explain the advantages of the iPhone - Apple fans will buy it even if there are minimal changes from the last model. However, if your company launches a new device in the competitive smartphone market – Summary Сlose technique comes into play.
This technique involves recapping the key benefits and features of your product or service to remind the prospect why it's the right choice. It reinforces the value proposition and helps solidify the prospect's decision-making process.
In a world filled with information overload, prospects can forget the numerous advantages your offering brings to the table. The Summary Close obtains these benefits to the forefront of their minds.
Here is an example of a sales manager's negotiation of this technique:
"I kept in mind that the most important thing for you in a phone is the exceptional camera. The [Your product] has a 48-megapixel camera and advanced AI features, so you'll capture professional-quality photos and videos effortlessly. It also features the latest processor, ensuring lightning-fast performance for all your apps and tasks, and the battery lasts up to 24 hours!
This smartphone is designed to make your daily life more efficient and enjoyable. With these features in mind, how do you feel about moving forward with the [Your product] today?"
The Summary Сlose technique works best in the following cases:
- Complex products or services. For instance, you launched software and have to explain multiple features, benefits, or options in simple words.
- Long sales cycles. Industries such as real estate, automotive, insurance, finance, consulting, and many others require lengthy negotiations with prospects before purchasing. This technique will help potential customers remain interested in the product and recall its benefits.
- Multiple decision makers. This is most often the case with complex and costly B2B products, the purchase of which has to be coordinated and discussed with dozens of people. A summary of the benefits can be an effective tool for alignment and consensus-building.
- Overcoming objections: When prospects have raised concerns during the sales process, summarizing how your product or service addresses these issues can help overcome issues and move the sale forward.
Assumptive Close
If you have been talking to the customer for a long time and you are almost 100% sure that they are ready to buy, the Assumptive Close technique gently leads them to a decision.
Positive buying signals, such as asking specific questions or expressing enthusiasm, help to make sure of this. It helps expedite the closing process when the prospect is already leaning towards a positive decision.
For higher effectiveness, it is better to combine it with Summary Close, reminding about the key advantages of the product. Then use expressions that confirm the customer's desire to make a purchase. For example, "When would you like it delivered?" or "How will you be paying for this?".
Here are situations where the Assumptive Close technique can be particularly effective:
- Clearly expressed interest: The prospect has explicitly expressed interest in your product or service, indicating that they see value in what you offer.
- Repetitive questions: Customer repeatedly asks specific questions about the product, pricing, or terms, it can indicate their readiness to move to the next step.
- Alignment with needs: Product or service closely aligns with the prospect's identified needs and pain points, they may be more inclined to proceed.
- Positive feedback: If the prospect has provided positive feedback during the presentation or proposal stage, it suggests a favorable disposition towards your offering.
- Trial or demo success: Offer the customer a product demo and make sure it goes well. Then use a technique to emphasize the benefits of the offer.
The Sharp Angle Close
During the sales process, you often run into people who are familiar with deal techniques. They want to buy a product and have almost made a decision, but still desire to save money and get more value. In this case, it is useful to apply The Sharp Angle close technique.
It is highly effective in situations where a timely decision can lead to tangible benefits, such as cost savings or added value. It capitalizes on the prospect's adaptability and willingness to make quick decisions when circumstances shift.
Suppose you're selling a software product, and there's a new update coming soon. You can say, "If you purchase now, you'll receive the upcoming update for free. But if you wait, it will be a paid upgrade."
Here are some examples of situations where you should use this method:
- Upcoming changes or updates: If your product or service is about to experience significant improvements or updates, offer early access or exclusive benefits to those who commit before the changes occur can be highly persuasive.
- Deadline-driven industries: In industries where there are natural deadlines or time-sensitive events, such as real estate, event planning or travel the Sharp Angle Close can be particularly effective. At Redtag, we work with a variety of industries and will tell you whether this technique is worth using or if it's better to choose another way to boost your sales.
- New product introduction: Great opportunity to engage early adopters with exclusive benefits.
- Demand volatility: In cases where demand for your product or service fluctuates, you can use the Sharp Angle Close to encourage prospects to act when demand is high or supply is limited.
The Question Close
A good sales manager is a psychologist who knows how to ask the right questions. By answering them, the client gets closer to a purchase decision. The main challenge is not to annoy by being intrusive, but to encourage the prospect to reflect on their needs and preferences.
This approach offers multiple benefits. Initially, it motivates the prospect to conclude the agreement by confirming that all their requirements have been satisfied. Moreover, it provides an opportunity for additional sales. You also have the option to enhance the offer by providing a product sample or allowing a limited-time trial of our services.
To maximize the efficiency of this technique, craft questions that prompt the prospect to envision how your product or service can solve their problems or improve their life. For instance:
- "Let’s imagine how you would spend your free time by automating this function?"
- "Which of our product features aligns most closely with your business goals: A or B?"
- "Can you highlight the key differences you've noticed between our service and your previous provider?"
- "Where do you see your company in five years, and how do you envision our product supporting that vision?"
- "What kind of growth are you anticipating, and do you think our solution can scale with your needs?"
The Question Close technique is universal and can be used throughout the sales process to gather information, address objections, and guide the prospect toward closing.
Conclusion
Depending on the business industry, the negotiation stage with the potential client, and the prospect's attitude towards you, choose one of the 5 sales techniques. Evaluate your sales process and choose the most appropriate method to meet your targets. Quite often there are scenarios where techniques need to be combined –– don't be afraid to try different approaches to close the deal.
By experimenting and finding the best approach for each situation, you can significantly improve your sales performance and achieve your goals. The experts at Redtag are always excited to support you in delivering an outstanding customer experience to optimize the success of your deals. Feel free to contact us to discuss how our team can help you shape customized customer experiences.
