As a sales person, a critical part of our daily activity is negotiation sales deals. Success negotiations tied to ongoing relationships, tend to involve multiple issues beyond simply price. having looked specifically at sales negotiation in a previous blog, below I have looked specifically at the negotiation process.
Negotiation, by definition, is the process by which two or more parties attempt to reach an agreement. The definition is simple, but the process can be complex. Principled negotiation or Win-Win negotiation is the recommended model to building valuable long term client relations.
Sales negotiation is a process that involves the deliberation of all details necessary to successfully complete a sale. As part of this type of negotiation, a salesperson engages directly with a customer, assessing the needs of the client, pointing to the advantages the customer stands to gain, and helping the customer see how purchase of the goods or services offered would be a wise decision.
To achieve a collaborative win-win agreement, experts recommend these 5 steps:
- Preparation: Trust is a prerequisite for disclosures that expose vulnerabilities. Each side needs confidence the other is acting in good faith (principled negotiation). Knowing your BATNA “best alternative to a negotiated agreement” is a foundation on which negotiations can proceed. Plan, get informed and do your research. Identifying alternatives in advance improves your leverage by clarifying at what point you should accept a deal or walk away.
- Investigate. Consider the opponents perspective, what are their interests and objective. What are the issues from their point of view? Gain an information advantage.
- Propose. Produce an agenda. Facilitate an environment where both side propose key criteria. Don’t make the first major concession. The first major concession tends to become an “anchor” around which further negotiations revolve. Allowing the other party to make the first offer reveals their position and informs your negotiating stance.
- Bargain. Identify and agree areas of common, and reach agreement. Trade less important issues for more important ones. For example, adjust a monetary figure in exchange for other benefits, such as a longer contract, larger territory, or quicker payments
- Close. Review all the main points, outline commitments and next actions. Re-assure the opponent that the agreement is the best outcome for both parties and provides a stable platform for developing an ongoing business relationship
How a CRM can help
A CRM system benefits an organisation through the visibility of its sales activities. This visibility is fundamental to managing sales performance and control of the sales process. This visibility enables management to understand why, when, who and how opportunities are being won, stalled, or being lost. If it cannot be monitored, it cannot be managed. The visibility offered within the CRM system also allows management to make educated business decisions based on hard data. A CRM system will enable structured data to be used to access performance. This assessment should indicate which sales person is out performing others.
ProAptivity are an independent CRM solutions provider. We focus on the implementation, training, and support of highly customised CRM software solutions. Our CRM software supported by our sales training provide customers with the tools needed to deliver successful sales process management.
Fundamentally, we help organisations embed CRM best practice throughout their organisation. This helps organisations become more competitive, customer focused and ultimately more profitable.
If you need help in understanding why my business needs CRM, maybe some of our eBooks could help! Alternatively visit Maximizer CRM for more information. Contact us today on 028 9099 6388 or via email@example.com. Contact us today for a free CRM consultation that will assess if your business is CRM ready.