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Closing confidently and
at the right time
Most sales representatives rate "closing the sale" one of their tougher
problems. It is not hard to imagine that the ease of closing depends upon the quality of
the selling job that precedes
it.
If the sales representative has:
- put honest effort into the evaluation of the
prospect's situation,
- clearly identified the prospect's needs,
- obtained the prospect's acceptance of the owner benefits
stated and
- the prospect believes that future gain will result from
the
offering,
closing should not be a problem.
However, sales representatives who are unsure of how or when to close the sale will reach
the closing point, and then talk them selves out of the sale. They oversell! There
are other sales representatives who attempt to close before doing a complete selling job.
They undersell! Others won't even attempt to close unless the prospect brings it up. In
fact, in some businesses, prospects feel that the number one mistake
sales representatives make is
not asking for the order.
Let's look at some of the common closing mistakes.
Overselling
It is important to understand why and how overselling can hurt your
presentation. If you have made a presentation and the prospect is satisfied that
the o.b.'s offered will improve a
given situation, any further persuasion is overselling. Overselling can create second
thoughts in a prospect's mind about a decision that has already been made. It can
also result in the loss of favorable attention. If so,
loss of the sale is not far behind.
What are some of the reasons why sales representatives over sell? Basically, they just
don't establish two-way communica tion. They use few questions or none at all. As a
result, they don't know where the prospect stands in the buying motion.
They keep right on selling when they should be closing.
Proper use of questioning and listening techniques will supply the information sales
representatives need to determine the prospect's position in the buying motion.
This is the soundest method to prevent overselling.
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Underselling
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Underselling occurs when sales representatives attempt to close too soon. In this case,
they have failed to identify their prospects' needs,
failed to gain interest, or failed to give prospects an
opportunity to evaluate the offering satisfactorily. Sales made in
this manner are made purely by chance.
Reluctance to close
Finally there are the sales representatives who never get around to closing. They
fail to close for many of the same reasons that others oversell or undersell. Some just
don't know where the prospect stands in the buying motion.
Other sales representa tives assume the prospect will buy and can see no reason
to ask for the order. Still others are afraid to ask. They lose sight of their
objectives and plunge right on with their meaningless efforts.
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Let's consider three proven closing techniques other
than ask ing for the order.
Sum-up close
Let us presume that you have covered the planned points of your presentation well
and that the benefits mentioned seem to interest the prospect. Your test questions
indicated that desire has been aroused, and your good judgment tells you that time would
be lost by continuing your sales talk. The sum-up decision is
recommended. Here you summarize the key owner benefits of your offering
when your prospect is at the peak of interest and desire. The main advantage to this
method of closing is that you reemphasize those benefits that will help bring about
a favorable decision. For example:
Sales representative . . . "Then, Mr. Cronin, it does seem you are most
interested in minimizing estate taxes (o.b.) and in assuring that your wife
will be able to continue to live in the manner she's accustomed to (o.b.)
in the event of your death."
Mr. Cronin. . . "Yes, those are problems that concern me."
Sales representative . . ."in that case, let's proceed. If you'll be
good enough to give me the data I need, I'll see that your coverage becomes
effective immediately."
Suggestion close
A second closing technique is known as the suggestion method. Here the
sales representative suggests the action the prospect should take.
"In order for you to qualify for the insurance, I need to ask you some
questions. I suggest you designate Mary as beneficiary of the
policy."
Choice close
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When you are reasonably sure that your prospect is on the brink of decision, but is
held back by natural caution, the choice method
of closing is often effective.
"Do you want to extend this plan to include coverage for accidental death
also, Mr. Smith?"
The closes just discussed sum-up, choice and suggestion are only a few of
the many a sales representative can choose from, and they work in any selling
situation. Other closes can be used under certain circumstances. For
example:
Impending event close: This technique points out that
if the prospect fails to take advantage of your offering, he or she will stand to
lose because of an impending event or action, such as . . . change of age, change in
rates, change in availability, or perhaps even a change in legislation.
Physical action close: Here the sales representative
attempts to close by doing something, such as scheduling an appointment for a
physical exam. In order to avoid giving consent, the prospect will have to stop the sales
representative.
Success story close: The purpose of this close, sometimes referred to as
the prestige or evidence technique, is to help the prospect identify with another person's
experience. This technique is effective because it is human nature to want to obtain the
benefits others have received.
In executing this close, the sales representative uses testimonials or simply relates to
the prospect the benefits realized by another client through use of the product, service
or plan.
Caution: When using this technique, you must be sure that the client is in your prospect's
situation. Never use this without a client's permission and avoid personal
details.
Trial close: The all-powerful question is the basis for this closing
technique. When you ask direct questions to determine how much interest you have
generated or how much additional selling is needed, you are actually "trial
closing." For example:
"You can see how this plan provides maximum protection can't you, Mr.
Smith?"
Note: Many sales representatives do not consider this a close at all.
Rather, they consider it nothing more than effective use of the question
motivation idea to test where the prospect stands in the evaluation
stage just prior to closing.
Pro and con close: This close is particularly effective when the buying
motion has stalled and you realize you are getting no where.
It is executed in the following manner:
Take out a sheet of paper and draw a line down the middle. Head the left
column pros and the right column cons. With the help of your
prospect, list the o.b.'s in the pro column and the objections in
the con column.
You then go to work on the objections. We'll say there are three and you are able to
overcome two. By the same token, there are five o.b.'s
which the prospect believes will be derived through use of the product. However, the
prospect is still holding back because of the one remaining objection. This is the
crucial point at which you must pose the question: "Mr. Prospect, are you
going to give up all of these advantages (o.b.'s) because of this
(the objection)?" Unless the objection is of major proportion, the prospect
is usually swayed by the pros outweighing the cons.
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Summary-Using emotion motivation ideas to sell
from the prospect's point of view
I. The favorable impression motivation idea
A. We like certain people more than others because
their physical and intellectual qualities make a favorable
im pression on
us.
B. Common courtesy will make a favorable impression.
C. Pictures, charts, diagrams and other visual aids
can be used to create a favorable impression.
II. The common interest motivation idea
A. Mutual friends, hobbies and other interests
strengthen contacts and contribute to gaining and
holding favorable
attention.
Ill. The appeal to pride motivation idea
A. Nothing arouses a prospect's feelings more
effectively than sincere recognition of capabilities,
accomplishments or
personal achievements.
B. In order for this motivation idea to
be effective, it must be used sincerely.
IV. The question motivation idea
A. The question motivation idea
is extremely effective in gaining and holding favorable attention.
B. Types of question motivation ideas
1. Open
questions direct question requiring the prospect to reveal attitude or
information in a
multiple word answer.
2. Echo
question the repetition of a phrase or word the prospect has said
in the form of a question.
3.
Mirror questions repetition of the prospect's state ment in your
own words.
4. Closed
questions direct inquiry.
C. Other uses of question
motivation ideas
1. To
measure understanding and agreement.
2. To
check progress.
3. To
determine where the prospect is in the buying mo tion.
4.
Uncover "hidden" objections.
5. To
make the entire presentation the "two-way street" it should be.
D. The "questioner" should also be a good
listener.
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E. The question motivation idea
is the sales representative's key to control of the buying motion.
Summary-Closing confidently and at the right time
I. Most sales representatives rate
"closing the sale" one of their tougher problems.
A.
Closing should not present a problem if:
1. You have put honest effort into the evaluation of
the prospect's situation.
2. You have clearly identified the prospect's needs.
3. The prospect accepts the owner benefits stated
in your presentation and believes that future
gain will result from your offering.
B. Overselling
1. When you have made your presentation and the prospect is
satisfied that the owner benefits
offered will improve a given situation, any further persuasion is overselling.
2. Overselling can result in loss of favorable attention
and cause the prospect to have second
thoughts about your offering.
3. Sales representatives oversell because they've used few questions or none
at all. As a result,
they don't know where the prospect stands in the buying motion.
4. Proper use of questioning and listening techniques will prevent
overselling.
C. Underselling
1. Underselling occurs when sales representatives attempt to close too
soon.
2. In this case, the sales representative has failed to identify the
prospect's needs, failed to gain
interest or failed to give the prospect an opportunity to evaluate
the offering satisfactorily.
D. Reluctance to close
Some sales representatives never get around to
asking for the order because:
1. They assume that the prospect will buy.
2. They are afraid to ask for the order.
3. They don't know where the prospect stands in the buying motion.
II. Closing techniques other than asking for the order
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A. Sum-up close
1. Summarize the key owner benefits of your offering when your prospect
is at the peak of interest
and desire.
2. Re-emphasize those benefits that will help bring about a favorable
decision.
B. Suggestion close
Suggest the action the prospect should take.
C. Choice close
When your prospect is cautious about making a final decision, leave him
an alternative.
D. Impending event close
Point out to your prospect that if he fails to take advantage of your offering, future
circumstances
may make insurance unavailable to him.
E. Physical action close
Attempt to close by scheduling an appointment for a physical exam. In order to avoid
giving consent, the
prospect will have to do something to stop you.
F. Success story close
Use testimonials from satisfied clients to show your prospect the benefits which others
have
derived from your offering.
G. Trial close
Ask questions to determine how much interest you have generated or how much additional
selling
is needed.
H. Pro and con close
With the help of the prospect, list owner benefits (pros) and objections (cons). Overcome
as many
objections as possible. Then persuade the prospect that pros outweigh cons.
What can I do to improve?
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