You think you are close to winning the sale. In fact your offering clearly beats the competition. However, it is vital that you do not become complacent. Too often unspoken issues, or concerns on the part of the buyer scupper the ‘sure thing’ sale.
Buyers Can Get 'Cold Feet'.
As the Sale Approaches The Buyer Can Get Cold Feet.
As the needs analysis, presentation, proposal writing and other aspects of the sale progress, the seller gains confidence. Everything seems to be progressing nicely, however the buyer while nodding in agreement, maybe secretly harboring concerns about making the decision in your favour.
In the present climate risk adverse buyers are increasingly edgy, that means the slightest anxiety, however unjustified, can result in selecting the safe option. That may mean either stalling the purchase, or selecting the safe, as opposed to the innovative supplier.
There is no such thing as a ‘sure thing’ sale.
On the surface everything look good for the sale to close. But beneath the surface the buyer may be wrestling with fundamental, yet hidden anxieties, or doubts that could scupper the sale. On paper your proposition stacks up, but as the decision approaches there are second thoughts about you and your company.
Let us take an example: the salesperson’s proposal, presentation and price beats the competition, but somebody on the buying group raises a concern about the suppliers track record and credibility – after the company is relatively new. The question is asked ‘why don’t we just stick with the supplier we know?’
The buyer will often stay silent about an unresolved concern in order to avoid any awkwardness, conflict, or disagreement. Meanwhile the sale quietly moves in the direction of the safe choice and into your competitor’s corner.
Why Salespeople Don’t Raise Possible Buyer Concerns.
Perhaps the salesperson had been sensitive to the credibility issue during the sales process, but chose to side step it in the hope that it would go away. After all, bringing it up might only give it credence. This can, however, be a fatal flaw as sensitivity to risk is likely to increase, rather than diminish as the buying decision approaches.
You think you are close to winning the sale. In fact your offering clearly beats the competition. However, it is vital that you do not become complacent. Too often unspoken issues, or concerns on the part of the buyer scupper the ‘sure thing’ sale.
As the needs analysis, presentation, proposal writing and other aspects of the sale progress, the seller gains confidence. Everything seems to be progressing nicely, however the buyer while nodding in agreement, maybe secretly harboring concerns about making the decision in your favour.
Understanding Buyer Risk.
In the present climate risk adverse buyers
are increasingly edgy, that means the slightest anxiety however unjustified can result in selecting the safe option. That may mean either stalling the purchase, or selecting the safe as opposed to the innovative supplier.
These hidden and unresolved buyer concerns pose the greatest risk where the:
These hidden and unresolved buyer concerns pose the greatest risk where the:
• The buying decision is new (as opposed to for example a repeat purchase)
• The Buying decision has major consequences, is high profile, or has a big budget
• The vendor is not well known, or another vendor owns the account
• The product, process, or technology involved is new
• The buying decision is politically sensitive, or the buying group is large
You need to know where you really stand.
Ferreting out any lingering and unexpressed concerns on the part of the buyer is essential. Ignorance is not bliss. There is a rating attached to the opportunity and it may even form part of the sales forecast, but how real is it? Could you be fooling yourself?
The lack of openness in many buyer – seller stand-offs, particularly where an R F I or R F P is involved, make it difficult to know where you really stand. Indeed it can require almost a sixth sense.
Look out for Tell Tale Signs.
It is only when out in the open that the buyer’s unresolved concern can have any hope of being resolved. That means the salesperson must actively probe for concerns on the part of the buyer and encourage him/her to open up and admit to any concerns. Success in this respect, however, requires good; relationships, communication and trust. Above all the buyer must trust that you will not to react defensively to what is said.
It is important to give the buyer a safe setting in which concerns can be aired. For example, he, or she may prefer to do that off the record, or one to one. It may happen on the fringe of a meeting, when the rest of the attendees have gone, over that last exchange in reception, after a meal, or a social drink.
We were involved in helping a client purchase a sales system – a sale valued at up to 3 million – for which 3 vendors were shortlisted. Only one of those selected invited the management team and ourselves to dinner, with the other 2 missing out on a valuable opportunity to more clearly understand the context of the buying decision, understand any risks that needed to be addressed, or to build a relationship that would result in greater openness between buyer and seller.
As another example I worked with a colleague a number of years ago, who would always make sure to be the person to walk out of a meeting with the key decision maker, while his colleagues would pair off with others at the meeting. This proved very effective enabling him to get a one to one and off the record answer to questions such as ‘Is there anything that we have not covered in our presentation?’, ‘Is there anything else that we should be considering as we progress?’, ‘Are there any possible barriers that we should be aware of?’, etc. Allowing for such accidental opportunities for meaningful conversations with the buyer can be important.
Understanding buyer concerns will require listening to what is said as well as what is not said. For example, the salesperson must also look for tell tale signs such as:
• You are getting mixed signals
• You feel like you are not being told everything
• You are suddenly not getting access, or the buyer has gone quiet
• Your competitor keeps getting mentioned
• Information is not flowing freely
• Previously resolved issues are re-surfacing
• Inappropriate price concerns arise
• The decision gets postponed, or the timing for a decision gets pushed out
Meeting a roadblock? Then slow down!
The sales person, when confronted with a resolution of concern’s roadblock, can be tempted to speed up instead of slowing down. That is to apply pressure on the buyer, or employ closing techniques. This however is likely to prove counterproductive. Simply, trying to negotiate a resolution of the concern is also likely to fail. Dropping price, even if it is successful, is a costly way to address a fundamental buyer concern.
It is not always about Price
Price is often a smokescreen for other fundamental buyer concerns, after all it easier to tell a salesperson that he lost on price, rather than to raise the real issues of mistrust, politics, risk, or hassle. As always price is only one dimension of a larger cost, or consequences equation, that includes issues such as perceived risk, hassle, uncertainty and so on.
Notes: If you would like to read more on this subject check out Neil Rackham's Major Account Sales. In his book he points to The Resolution of Concerns as one of the most important, but often overlooked steps in the buying process.
