As we roll into the holiday season, its time to think about giving… and getting.
Research by CEB indicates top performing sales people exert more control over the buying process than their colleagues. In this article I’ll share two powerful tools for exerting more control over the buying process which can result in higher win rates and shorter sales cycles.
One of the key premises for control is a healthy balance of give and get. If your buyer values you and/or your solution, they should be demonstrating this by collaborating with you when the process hits a snag. If the balance is heavily lopsided in their favor, you are most likely not their first choice.
Gives and Gets
The discipline to routinely ask for something in return is a powerful control tool when it comes to improving sales results. Consider some of the common requests potential buyers make of you:
- Can we arrange a demo?
- Can we install your solution on site for 30 days to evaluate it?
- Can you provide budgetary pricing?
- Can we see your five year roadmap?
- Can we talk to your subject matter experts?
- Can we talk to a reference?
- … and more!
Each of these requests presents an opportunity to ask for something in return. I recommend asking for information or activities that will shorten the time to decision. Some examples:
- Access to other stakeholders, especially those with the power to say yes to a decision.
- Insight into key metrics that could shed light on the value proposition for making a change.
- Insight into key competitors and their differentiators that might be important to address.
- Collaboration on the internal justification document.
- Confirmation of the current business issues demanding attention in the buyer’s C suite. (This gives you the opportunity to tie your solution to a strategic initiative.)
Keep track of the Gives and Gets outcomes to provide you with a view of the health of your relationship with your buyer. Wins usually have a balanced Give/Get ratio, losses and no decision outcomes are usually biased toward the buyer’s demands with little representation of the seller’s requests. A one sided relationship usually indicates that you are not the first choice, and you are probably being used as column fodder against another preference.
A Series of Formal Agreements
As you navigate your way through the buying/selling process, take notice of the number of informal agreements you establish along the way. For example, which stakeholders you can access, how long the evaluation will take, the decision criteria, when a decision will be made, and so forth. Each of these agreements presents an opportunity to exercise more control by formalizing the agreement in writing. I’ve seen top performers build a list of agreements into something I call the mutual action plan, however, it doesn’t have to be a signed document; it can be a simple email recap with a request to acknowledge the agreement.
The act of formalizing the agreement is valuable in itself for exerting control; however, the most powerful use of the concept comes about when your buyer breaks an agreement. This is when you have the right to ask for something in return! Think of this as a level two Give and Get.
For example, let’s assume you have documented the terms of an evaluation. But now the buyer comes to you and says, “I know we asked for 30 days to evaluate your solution, but we ran into some other distractions that got in our way. Can we extend the evaluation another 30 days to make sure we have ample time to conduct a proper evaluation?“
If you have established a more formal agreement, you should be entitled to ask for something in return. Once again, ask for something that will help you shorten your sales cycle, like access to other important stakeholders, or validation of metrics that can support the need for change.
Conversely, if you failed to document the agreement, you have less ground to stand on to ask for something in return. It doesn’t mean you can’t ask, and it doesn’t mean they won’t grant a return request, but the odds go up for granting your requests when a more formal agreement is in place.
To shorten sales cycles, reduce the number of no decisions, and set expectations for the dynamics of your relationship, consider using Gives and Gets as well as Formal Agreements to exert more control. Lastly, tracking the positive acceptance or negative denials for Give/Get requests may provide you with advance insight about the outcome of the process.
If you want to change your discipline in this area, consider mounting a poster above your computer to remind you to look for Give/Get opportunities and Formalize Agreements. Here’s an example you can modify to fit your needs.