In the realm of sales, we often tend to overestimate our ability to “wing it.” While thinking on our feet might keep us standing after a sales pitch or negotiation, it won’t allow us to extract the maximum value from the deal at hand.
Extensive studies, including those encompassing over 25,000 negotiators, have revealed a startling truth. The MarketWatch Centre for Negotiation found that negotiators frequently leave up to 42% of the combined potential value of the deal unclaimed on the table. This deficit stems from negotiating based on gut feelings, allowing emotions, rather than a well-crafted strategy, to dictate demands.
A New Kind of KeyHere are some actionable strategies to enhance your “luck” in optimizing the value of your next customer interaction:note…
1. Preparation Trumps Perspiration
Did you know that a staggering 60% of a negotiation’s outcome is not decided at the heat of the negotiation itself, but during the meticulous preparation phase? While mapping out your needs and strategies may not be excessively time-consuming, truly comprehending your customer’s needs demands a substantial time investment. The good news is that the return on this investment is substantial. Information is power. By gathering critical insights about your customer’s perspective through the 7Cs – their Context, Company, Channel, Competitors, Category, and Customer/Consumer – you can shift the balance of power in your favor. The better you understand what your customer truly needs, whether on a personal or corporate level, the more high-value exchanges you can orchestrate to fulfill your objectives.
2. Dress Rehearsal vs. Improv
Internal role-playing or “realplaying” with colleagues – participants fully briefed on customer context, buyer needs, buyer personality, etc. – is an essential exercise for sales professionals. Building this mental muscle helps you arrive at the negotiation table with the feeling of “I’ve been here, I’ve done this before.” It minimizes inadvertent body language cues when faced with objections or negotiation tactics and ensures you have the right response at your fingertips. While practicing with peers may feel awkward, fumbling an opening statement or tactic in front of a customer can be even more embarrassing (not to mention costly). Be sure to rehearse a range of scenarios, including an interrupted opening statement, a customer objection, a customer tactic (e.g., good cop/bad cop, time pressure, silence, etc.), and the art of closing.
3. What Is vs. What Could Be
Negotiation rooms can be pressure cookers, and stress often hampers sound decision-making. Advanced preparation, conducted when you’re in a positive frame of mind, boosts thought processing by a significant 31%. This shift encourages a holistic, big-picture approach to problem-solving instead of simply volleying offers and counteroffers or engaging in heated arguments and rebuttals. It opens doors to mutually beneficial alternatives that may remain hidden when emotions, tactics, and time constraints dominate.
Generate an extensive list of high-value trades and proposals in advance, so you never run out of options and avoid the dreaded deadlock. Remember, as former FBI Hostage Negotiator Chris Voss often emphasizes in his interactions with business professionals, “You only fall to the highest level of preparation.” Deep understanding of your customer’s needs allows you to exhibit empathy, a cornerstone for enhanced value creation. So, plan to get lucky!
Redefining Success: Crafting Opportunities Through Preparation
In the world of sales and negotiation, where opportunity and preparation intersect, the stage is set for true success. As we’ve explored these strategies, it’s clear that taking a deliberate, thoughtful approach to our interactions can redefine luck. The pivotal shift from gut-driven negotiations to value-based connections is a game-changer. Through thorough preparation, empathetic understanding, and persistent practice, you can create your own “luck.” Remember, it’s not about leaving things to chance; it’s about crafting the opportunities that lead to remarkable outcomes. In this journey of preparation, opportunity, and success, you’re the director of your own narrative, and the stage is yours to own.
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