{"id":141,"date":"2015-07-30T00:34:12","date_gmt":"2015-07-30T00:34:12","guid":{"rendered":"https:\/\/courses.candelalearning.com\/salesx17xmaster\/?post_type=chapter&p=141"},"modified":"2015-07-30T20:01:25","modified_gmt":"2015-07-30T20:01:25","slug":"12-1-closing-starts-at-the-beginning","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/cerritos-sales-1\/chapter\/12-1-closing-starts-at-the-beginning\/","title":{"raw":"Closing Starts at the Beginning","rendered":"Closing Starts at the Beginning"},"content":{"raw":"
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Learning Objective<\/h3>\r\n
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  1. Discuss how to successfully close a sale.<\/li>\r\n<\/ol>\r\n<\/div>\r\n\u201cShow me the money.\u201d\r\n\r\nIt\u2019s this line from the classic 1996 movie Jerry Maguire<\/em> that says it all about negotiating and closing the deal. In the movie, Jerry Maguire (Tom Cruise) is a sports agent who has second thoughts about the way business is conducted, and when he voices his concerns, he loses his job and all his clients except one. Maguire\u2019s passionate plea to his sole client, NFL player Rod Tidwell (Cuba Gooding, Jr.), has become a dramatic metaphor for negotiations and deal making ever since.[footnote]Jean-Marc Rocher, \u201cPlot Summary for Jerry Maguire,\u201d IMDb, http:\/\/www.imdb.com\/title\/tt0116695\/plotsummary<\/a> (accessed November 19, 2009).[\/footnote]<\/span>\r\n\r\nWhile the movie is fictional, Maguire\u2019s character was based on real-life sports agent Leigh Steinberg, whose firm has negotiated and closed more than one hundred multimillion-dollar deals for high-profile clients in every professional sport. Steinberg\u2019s philosophy on negotiations and closing deals is based on the fact that life is filled with negotiations and deals\u2014from deciding where to eat to buying houses and cars\u2014and each should be handled with \u201ca clear focus and principled philosophy.\u201d[footnote]Alan M. Webber, \u201cHow to Get Them to Show You the Money,\u201d December 18, 2007, Fast Company<\/em>, http:\/\/www.fastcompany.com\/magazine\/19\/showmoney.html<\/a> (accessed November 19, 2009).[\/footnote]<\/span> There\u2019s nothing better than closing a big deal\u2026the right way.\r\n\r\nWhether it\u2019s a major professional sports deal, business deal, or a major purchase, it\u2019s easy to visualize what the \u201cdesired state\u201d is in any kind of deal. You can actually see the athlete in your team\u2019s uniform, imagine two companies merging together as one, or see yourself in the car you want to buy. In fact, you negotiate every day. You negotiate with everyone from your roommate about how to arrange the furniture to your siblings about who will use the car. You might even negotiate with your professor about when you can hand in an assignment that is late.\r\n\r\nThe step in the selling process that moves the conversation to a sale (or the desired resolution) is the close<\/span><\/span>. Many people believe that the close takes place at the end of the selling process because that\u2019s when the prospect agrees to buy the product or service. But nothing could be farther from the truth. Closing<\/span><\/span> the sale, or getting the order, starts at the beginning of the selling process, long before you even come in contact with the prospect.\r\n
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    Start Strong<\/h2>\r\n\u201cWhat it takes to win a championship is to have your preparation meet the opportunities, whether it\u2019s out on the racetrack or behind the scenes,\u201d according to NASCAR driver Kurt Busch.[footnote]Joe Guertin, \u201cWhen Did \u2018Closing\u2019 Become a Bad Word?\u201d Agency Sales, March 2006, http:\/\/www.allbusiness.com\/sales\/1064380-1.html<\/a> (accessed March 16, 2010).[\/footnote]<\/span> This is true in sports and in selling. Winning in selling\u2014delivering value to customers and to your company\u2014requires 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\u2019t happen that way. In fact, in many industries closing the sale may take weeks, months, or even years.\r\n\r\nDespite the term \u201cclose,\u201d which implies the end, closing the sale starts with the first step in the selling process\u2014qualifying. Sometimes salespeople want to fill their sales funnel (or pipeline) with lots of leads so they don\u2019t take the time or ask the right questions when they are qualifying. While it\u2019s true that you want to \u201cgo out and get as many no<\/em>s as you can,\u201d you\u2019ll get a lot more yes<\/em>es when you pitch to the right prospects.[footnote]Joe Guertin, \u201cWhen Did \u2018Closing\u2019 Become a Bad Word?\u201d Agency Sales, March 2006, http:\/\/www.allbusiness.com\/sales\/1064380-1.html<\/a> (accessed March 16, 2010).[\/footnote]<\/span> 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\u2014prospecting is the foundation of the entire process.[footnote]Tim Connor, \u201cThe Myth of Closing Sales,\u201d Roderick Martin, http:\/\/roderickmartin.com\/the-myth-of-closing-sales<\/a> (accessed November 17, 2009).[\/footnote]<\/span>\r\n\r\nNot 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\u2014it 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.\r\n\r\n<\/div>\r\n
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    Closing Time<\/h2>\r\nThe close sounds like it might be a definitive part of the selling process. It\u2019s 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.[footnote]\u201cClosing the Deal,\u201d Selling Power Sales Management eNewsletter, May 17, 2004, http:\/\/www.sellingpower.com\/content\/newsletter\/issue.php?pc=368<\/a> (accessed March 16, 2010).[\/footnote]<\/span> Qualifying is the key; it\u2019s virtually impossible to close a sale with the wrong prospect. But the preparation doesn\u2019t 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\u2019s 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.[footnote]Ray Silverstein, \u201cHow to Close a Sale in the First 30 Seconds,\u201d Entrepreneur<\/em>, http:\/\/www.entrepreneur.com\/management\/leadership\/leadershipcolumnistraysilverstein\/article178590.html<\/a> (accessed November 17, 2009).[\/footnote]<\/span> 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.\r\n\r\nTo 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: \u201cIf you\u2019re waiting for a proposal to close, it\u2019s too late.\u201d He goes on to say that the most important meeting is the first one because that\u2019s when trust and rapport are established.[footnote]Simona Covel, \u201cFinding the Right People to Make the Sale,\u201d Wall Street Journal<\/em>, May 29, 2008, http:\/\/online.wsj.com\/article\/SB121199448885726503.html<\/a> (accessed November 17, 2009).[\/footnote]<\/span>\r\n\r\nThe close builds on everything that has already taken place throughout the selling process\u2014rapport, trust, information sharing. It\u2019s also important to know what the close is not. The close is not<\/em> a high-pressure exchange between seller and buyer. It\u2019s not<\/em> a time when the salesperson resorts to trickery, manipulation, or other unsavory tactics just to get a sale.[footnote]Geoffrey James, \u201cClose More Sales: Train Your Sales Team,\u201d Selling Power<\/em> 23, no. 8, http:\/\/www.sellingpower.com\/content\/article.php?a=6389<\/a> (accessed March 16, 2010).[\/footnote]<\/span> While sales are the ultimate financial goal of the selling process, relationships, trust, and understanding a customer\u2019s business and providing cost-effective solutions are driving factors behind making the sale.[footnote]Ram Charan, \u201cWhat Your Customer Isn\u2019t Saying about Your Sales Pitch,\u201d Wall Street Journal<\/em>, May 29, 2008, http:\/\/online.wsj.com\/article\/SB121182439378120865.html<\/a> (accessed November 17, 2009).[\/footnote]<\/span> The same principles that guide the rest of the selling process also guide the close.\r\n\r\nIf 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 (\u201cWhat is most important to you about this product or service?\u201d), whereas a closing question asks for a decision (\u201cShall we complete the paperwork?\u201d).[footnote]D. Forbes Ley, \u201cTrial Closing Questions Tell You When to Ask for a Decision,\u201d The Bachman Company, http:\/\/www.bachmanco.com\/pretz\/PDF\/Trial%20Closing%20Questions.pdf<\/a> (accessed November 18, 2009).[\/footnote]<\/span> 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\u2019t, the prospect\u2019s response provides valuable insight. The trial close should be done early and often throughout the selling process. Getting the prospect\u2019s opinion at various points throughout the process helps you determine your path and how and when you should make your close.[footnote]D. Forbes Ley, \u201cTrial Closing Questions Tell You When to Ask for a Decision,\u201d The Bachman Company, http:\/\/www.bachmanco.com\/pretz\/PDF\/Trial%20Closing%20Questions.pdf<\/a> (accessed November 18, 2009).[\/footnote]<\/span>\r\n\r\n<\/div>\r\n
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    ABC or ABO?<\/h2>\r\nThere is an old adage in selling that says, \u201cAlways Be Closing\u201d (ABC). This means that a salesperson should never miss the opportunity to close a sale, no matter where it occurs in the selling process.[footnote]Michelle Nichols, \u201cThe Two-by-Four Closing Question,\u201d BusinessWeek<\/em>, April 19, 2007, http:\/\/www.businessweek.com\/smallbiz\/content\/apr2007\/sb20070419_586407.htm<\/a> (accessed November 17, 2009).[\/footnote]<\/span> But in today\u2019s collaborative environment, it\u2019s better to approach closing more like \u201cAlways Be Opening\u201d (ABO).[footnote]Joe Takash, \u201cConnect with the Buyer,\u201d http:\/\/www.joetakash.com\/media-resource\/wp-content\/uploads\/2009\/03\/independent-agent.pdf<\/a> (accessed May 16, 2010).[\/footnote]<\/span> 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. \u201cYou become much more than a salesperson, you become their marketing expert, a resource, an ally,\u201d according to Mario Russo, general sales manager at radio station WBEN-FM in Philadelphia. \u201cThat\u2019s when you are successful in selling.\u201d[footnote]Mario Russo, Executive Panel in Marketing 2335\u2014Public Relations and Publicity, Saint Joseph\u2019s University, Philadelphia, PA, November 18, 2009.[\/footnote]<\/span>\r\n\r\nIt\u2019s 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.[footnote]Mark Hunter, \u201cClose Too Quick and You Lose Profit,\u201d Fast Company<\/em>, November 4, 2009, http:\/\/www.fastcompany.com\/blog\/mark-hunter\/sales-hunter\/close-too-quick-and-you-lose-profit<\/a> (accessed November 17, 2009).[\/footnote]<\/span> That\u2019s why it is a good idea to ask exploratory questions<\/span><\/span>: 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: \u201cWhat are the top three activities that consume your people\u2019s time daily?\u201d \u201cWhat is the ideal way you would like your people to spend their time?\u201d \u201cWhat are the types of activities that you think can be automated?\u201d[footnote]\u201cClosing the Deal,\u201d Selling Power<\/em>, May 17, 2004, http:\/\/www.sellingpower.com\/content\/newsletter\/issue.php?pc=368<\/a> (accessed November 17, 2009).[\/footnote]<\/span> 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.\r\n\r\nWhile 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\u2019s 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.\r\n
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    Video Clip<\/h3>\r\nAlways Be Opening\r\n\r\nhttps:\/\/youtu.be\/XGmKNSj8F64\r\n\r\nThis video featuring sales guru, Jeffrey Gitomer, highlights the shift from ABC to ABO.\r\n\r\n<\/div>\r\n<\/div>\r\n
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    Ask for the Order<\/h2>\r\nWhen 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 \u201cWill delivery on Tuesday work for you?\u201d or \u201cShould we start your service the week of the twenty-first?\u201d 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, \u201cNever end a successful close without adding the proper patient dosing.\u201d She says, \u201cIt is very important that your physician prescribe your product properly.\u201d[footnote]\u201cClosing Arguments,\u201d Selling Power Pharmaceuticals eNewsletter, September 11, 2007, http:\/\/www.sellingpower.com\/content\/newsletter\/issue.php?pc=648<\/a> (accessed March 16, 2010).[\/footnote]<\/span>\r\n\r\nSometimes salespeople don\u2019t feel comfortable asking for the order. Earn the right to ask for the order. Be confident: believe in yourself and your product or service.[footnote]Laura Lorber, \u201cThree Tips for Closing a Sale,\u201d Wall Street Journal<\/em>, http:\/\/online.wsj.com\/article\/SB121198785761226199.html#printMode<\/a> (accessed November 17, 2009).[\/footnote]<\/span> 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. \u201cIf you can\u2019t help them with their biggest challenge, they won\u2019t have time for you,\u201d says Mary Delaney from CareerBuilder.[footnote]\u201cClosing the Deal,\u201d Selling Power Sales Management eNewsletter, May 17, 2004, http:\/\/www.sellingpower.com\/content\/newsletter\/issue.php?pc=368<\/a> (accessed March 16, 2010).[\/footnote]<\/span> Author Barry Farber includes the element of confidence in the closing equation by saying, \u201cThe 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.\u201d[footnote]Barry Farber, \u201cWrap It Up,\u201d Entrepreneur<\/em>, April 2008, http:\/\/www.entrepreneur.com\/magazine\/entrepreneur\/2008\/april\/191580.html<\/a> (accessed November 17, 2009).[\/footnote]<\/span>\r\n\r\nNot 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.[footnote]\u201cSales Closing\u2014Closing Throughout the Sales Cycle Process Using Different Types of Closes,\u201d Money Instructor, http:\/\/www.moneyinstructor.com\/art\/saleclose.asp<\/a> (accessed November 17, 2009).[\/footnote]<\/span> 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\u2019s 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 no<\/em>s on the way to yes<\/em>es.[footnote]Joe Takash, \u201cConnect with the Buyer,\u201d http:\/\/www.joetakash.com\/media-resource\/wp-content\/uploads\/2009\/03\/independent-agent.pdf<\/a> (accessed May 16, 2010).[\/footnote]<\/span>\r\n\r\n<\/div>\r\n
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    When to Close<\/h2>\r\nIt\u2019s rare that a prospect will say, \u201cI\u2019m ready to close this deal.\u201d 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:\r\n