The HubSpot 2024 Sales Trend Report reveals that 96% of prospects conduct their own research before engaging with sales reps. This means that today’s customers are armed with more information than ever, making them highly knowledgeable, prepared, and skilled negotiators.
Because of this, we sales leaders must equip our teams to navigate these complexities and negotiate successfully.
To help your team seal the deal, here are 6 negotiation strategies we teach and utilize at Carew:
#1 – Before any impactful negotiations take place, you must have a well-defined strategic philosophy developed for your team. This includes items such as:
- A clear understanding of your pricing structure
- Profitability targets and growth objectives
- Knowledge of the competitive landscape
- Knowledge of your customer’s buying orientation
- Your value proposition
I find that many sales reps think of negotiating as either winning or losing, but this is not the case. Negotiating is about finding the right solutions that meet the needs of all parties involved.
How your sales reps approach negotiations significantly impact their positioning with customers and the overall quality of those relationships. Before diving into negotiation skill development, ensure your team understands the broader impact of negotiations and your organization’s philosophy and objectives.
#2 – Negotiations begin at the outset of the sales cycle, and every interaction shapes perceptions and sets the tone for future discussions.
As a sales leader, you play a crucial role in helping your team manage these early impressions and position themselves favorably for formal negotiations.
#3 – Striking the right balance between empowerment and support is key. You need to give your team reasonable authority to make offers and accept terms while encouraging them to reach out when unexpected challenges occur.
You must avoid creating a dynamic where they feel compelled to check everything with you – this can undermine their credibility with customers.
#4 – Ensure your sales professionals know their “walk-away point”— the threshold at which they will leave the negotiation.
It’s equally important to understand their BATNA (Best Alternative to a Negotiated Agreement) and those of their customers and competitors. This knowledge empowers them to make informed decisions and avoid settling for unfavorable terms.
#5 – Collaborate with your sales team to develop a negotiation plan. Identify and prioritize their needs and objectives, including the benefits they envision for the customer. Listening is crucial to understanding the customer’s motivations and finding mutually beneficial solutions.
#6 – Effective negotiation skills are built on a solid foundation of selling skills. Your sales reps must be able to communicate effectively, build trust and rapport, and uncover customer needs and motivations. Cultivating productive negotiations across your organization will be increasingly challenging without these foundational elements.
As a leader, you are instrumental in shaping successful negotiation practices for your sales team:
- Have a well-defined strategic philosophy and objectives
- Help your team manage early customer impressions
- Give your team the authority to make offers and set terms
- Make sure your team knows their “walk-away point”
- Create a negotiation plan
- Make sure your team has a solid foundation of selling skills
- Model excellence in your negotiations and coach your team to do the same
Remember, negotiation is not just about closing deals; it’s about building lasting relationships and creating value for your organization and customers.
