11.2 Closing Techniques and Best Practices
4 min read•august 7, 2024
Closing techniques are crucial in sealing the deal with potential customers. From assumptive and alternative closes to summary and silent approaches, salespeople have various tools to guide buyers towards a purchase decision. Mastering these techniques can significantly boost a salesperson's success rate.
Closing styles and metrics play a vital role in the sales process. Soft closes prioritize relationship-building, while hard closes focus on immediate commitment. Understanding closing ratios helps salespeople measure their effectiveness and identify areas for improvement. These skills are essential for any successful sales professional.
Types of Closes
Assumptive and Alternative Closes
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- proceeds as if the customer has already decided to buy and moves straight to the next steps in the sales process (paperwork, delivery, payment)
- offers the customer a choice between two alternatives, both of which result in a sale
- Typically involves a choice between two product options, delivery dates, or payment terms
- Avoids the yes/no decision and assumes the sale will happen
- Both the assumptive and alternative closes are effective when the salesperson has high confidence the customer is ready to buy based on their engagement and positive responses throughout the sales process
Summary, Question, and Silent Closes
- involves recapping the key benefits and value propositions that have been discussed, then directly asking for the sale
- Reminds the customer why they should buy and makes a strong final case
- Effective after a thorough needs assessment and product presentation
- involves asking a question that prompts the customer to make a purchase decision
- Questions like "What do you think?" or "How would you like to proceed?" invite the customer to express their readiness to buy
- involves making the final sales proposal or recommendation, then remaining completely silent until the customer responds
- Silence puts some pressure on the customer to make a decision
- Avoids the salesperson overselling or talking themselves out of a sale
- Gives the customer space to process information and come to their own conclusion
Trial, Objection-based, and Puppy Dog Closes
- involves asking for a small commitment before going for the final purchase decision
- Could involve asking the customer to sample or test the product, approve a design, or authorize a proposal
- Secures incremental buy-in and makes the final decision easier
- addresses the customer's specific objection and turns it into a reason to buy
- For example, "I understand your concern about the price, but let's consider the long-term cost savings and ROI this solution provides."
- Requires good objection handling skills and preparation
- (also called the Colombo close) involves offering the customer a low-risk trial or test of the product/service
- Named for letting the customer take the "puppy" home, believing they will fall in love and want to keep it
- Effective for products/services that create user dependency or for complex solutions where the value is best experienced firsthand
Closing Styles
Soft and Hard Closes
- is a low-pressure approach that prioritizes relationship-building and customer comfort over making the sale
- Involves gently guiding the customer toward a decision without being forceful
- Effective in complex sales cycles and when long-term customer relationships are important
- is an aggressive, high-pressure approach focused on getting the customer to commit to the purchase immediately
- Uses more assertive closing techniques like the assumptive close, alternative close, and
- Can be effective with impulsive buyers or in one-call-close situations, but risks damaging trust and relationships if used with the wrong customers
Urgency Close
- Urgency close involves creating a sense of time pressure or to compel the customer to make a fast decision
- Can reference special pricing that is ending, limited supply of a popular product, or scheduling constraints
- Effective when used sparingly and strategically, as constantly using urgency tactics can undermine trust
- Examples of urgency closes include:
- "We only have 2 slots left for implementation next month and they're filling up fast. Let's get you registered."
- "The promotional pricing ends this Friday. Are you ready to move forward and capture those savings?"
Closing Metrics
Closing Ratio
- is the percentage of sales proposals, quotes or presentations that result in a closed sale
- Calculated as (number of sales / number of proposals or presentations)
- A key measure of individual and team sales productivity and effectiveness
- Factors that impact closing ratio include:
- Lead quality and qualification
- Sales skills in needs assessment, product presentation, objection handling
- Market factors like competitive alternatives, pricing, and demand
- Length and complexity of the sales cycle
- Strategies to improve closing ratio:
- Improve prospecting and lead qualification to focus time on higher-probability opportunities
- Analyze wins and losses to identify improvement areas in the sales process
- Provide sales training on customer-centric selling, , and objection handling
- Implement a robust sales enablement program with tools, content and coaching to boost sales effectiveness
Key Terms to Review (27)
Active Listening: Active listening is a communication technique that involves fully focusing, understanding, and responding to a speaker with the aim of ensuring clear and effective interaction. This skill is vital in creating strong connections, fostering trust, and facilitating problem-solving in conversations.
Alternative Close: An alternative close is a sales closing technique where the salesperson offers the buyer a choice between two or more options, leading them toward making a decision. This method effectively simplifies the decision-making process for the buyer by presenting specific alternatives, which can help guide them towards a purchase without feeling overwhelmed. It's a subtle yet powerful way to encourage commitment by focusing on actionable choices.
Assumptive close: The assumptive close is a sales technique where the salesperson assumes the prospect has already made the decision to buy and moves forward with the next steps. This approach creates a positive atmosphere, as it conveys confidence in the product and helps the buyer visualize ownership, making it easier to finalize the sale. By smoothly guiding the conversation toward closing, it encourages the prospect to commit without feeling pressured.
Building rapport: Building rapport is the process of establishing a trusting and harmonious relationship with someone, often through shared experiences, mutual respect, and effective communication. This connection is crucial in fostering positive interactions, especially in sales, as it creates a comfortable environment where clients feel valued and understood, which can ultimately lead to successful outcomes.
Closing ratio: Closing ratio refers to the percentage of sales opportunities that result in a sale, serving as a key performance indicator for sales effectiveness. It helps in measuring the efficiency of a salesperson or sales team by showing how well they convert leads or prospects into actual customers. A higher closing ratio indicates better performance in overcoming objections and successfully closing deals.
Consultative selling: Consultative selling is a sales approach where the salesperson acts as a trusted advisor, focusing on understanding the customer's needs and providing tailored solutions rather than simply pushing a product. This method emphasizes building strong relationships, effective communication, and delivering value to customers throughout the sales process.
Conversion rate: The conversion rate is a metric that measures the percentage of potential customers who take a desired action, such as making a purchase or signing up for a newsletter. This metric is crucial as it helps businesses assess the effectiveness of their sales strategies and marketing campaigns.
Hard close: A hard close is a sales technique where the salesperson directly and confidently asks for the sale, pushing for a final decision from the prospect. This approach is often characterized by clear urgency and a strong call to action, compelling the potential buyer to commit to a purchase immediately. The hard close can be effective in high-pressure sales situations, where time-sensitive opportunities are presented, making it important for sales professionals to balance assertiveness with respect for the customer's needs.
Lack of preparation: Lack of preparation refers to the insufficient planning and readiness prior to engaging in a sales interaction, which can significantly impact the outcome of closing a deal. Being unprepared can lead to missed opportunities, inability to address customer objections, and a failure to effectively communicate value. This concept is crucial because it highlights the importance of thorough research, understanding customer needs, and practicing closing techniques to maximize success.
Nonverbal cues: Nonverbal cues are signals that convey meaning without the use of words, often expressed through body language, facial expressions, gestures, posture, and eye contact. These cues play a critical role in communication by enhancing or contradicting verbal messages, influencing how messages are received and interpreted. In the context of closing techniques, understanding nonverbal cues can greatly enhance a salesperson's ability to gauge a prospect's feelings and reactions during the sales process.
Objection-based close: An objection-based close is a sales technique that involves addressing and resolving the customer's objections as a way to finalize a sale. This approach not only acknowledges the concerns of the customer but also uses those concerns to lead into a closing statement or action. By effectively handling objections, the salesperson can build trust and demonstrate how the product or service meets the customer's needs, ultimately guiding them toward making a purchase decision.
Open-ended questions: Open-ended questions are inquiries that require more than a simple 'yes' or 'no' response, encouraging the respondent to elaborate and provide more detailed information. These types of questions foster deeper conversations, promote understanding, and uncover valuable insights about a person's needs, concerns, or feelings.
Over-pitching: Over-pitching refers to the act of presenting a sales proposal with excessive enthusiasm or detail, which can overwhelm or confuse the potential buyer. This approach often leads to the buyer feeling pressured or uncertain, causing them to disengage rather than move towards a decision. Understanding how to strike the right balance in a sales pitch is crucial for effective closing techniques.
Post-sale follow-up: Post-sale follow-up refers to the activities and communications that occur after a sale is completed, aimed at ensuring customer satisfaction and fostering long-term relationships. This practice is essential for enhancing customer loyalty, encouraging repeat business, and gathering valuable feedback that can inform future sales strategies. Effective post-sale follow-up can differentiate a seller from competitors and lead to increased referrals.
Price objection: Price objection is a common concern expressed by potential customers regarding the cost of a product or service, suggesting that they perceive the price as too high or not justified based on its value. This concern can lead to hesitation in making a purchase and can be addressed through effective communication and value demonstration. Addressing price objections is crucial, as it often involves turning this objection into an opportunity to reinforce the product's worth, understanding the underlying reasons for the objection, and employing strategic closing techniques that emphasize value over cost.
Product fit objection: A product fit objection occurs when a potential customer expresses doubts about whether a product meets their specific needs or requirements. This objection is crucial in the closing process as it indicates a gap between the customer's expectations and the product being offered, prompting the salesperson to address these concerns effectively.
Puppy dog close: The puppy dog close is a sales technique where the salesperson encourages potential buyers to try a product with the idea that once they experience it, they will be more likely to purchase it. This method draws its name from the common analogy of allowing a customer to take a puppy home, suggesting that once they bond with it, they'll want to keep it. This approach taps into emotional connections and can be especially effective when combined with other closing techniques.
Question close: The question close is a closing technique in sales where the salesperson asks the prospect a question that encourages them to commit to the sale. This approach is designed to elicit a response that reflects the prospect's readiness to move forward, creating an opening for the salesperson to finalize the deal. It often involves asking for the prospect's opinion or feelings about the product or service, guiding them toward making a positive decision.
Reciprocity: Reciprocity refers to the mutual exchange of privileges or benefits between parties, fostering a sense of obligation and trust. This concept plays a significant role in building relationships, as it encourages individuals to give back in response to receiving something. In various situations, reciprocity can enhance communication effectiveness, facilitate negotiations, and ultimately drive successful sales outcomes.
Relationship management: Relationship management refers to the strategies and practices used to build, maintain, and enhance relationships with customers, partners, and stakeholders. It emphasizes communication, understanding, and engagement to create long-term connections that foster loyalty and satisfaction. This concept plays a critical role in effective sales processes, as it directly influences how sales professionals interact with clients and navigate through closing deals while tailoring their approach based on specific industry needs.
Scarcity: Scarcity refers to the basic economic problem that arises because resources are limited while human wants are virtually unlimited. This concept is crucial in persuasive communication and storytelling as it creates urgency and a compelling reason for the audience to act quickly. In closing techniques, highlighting scarcity can effectively prompt a decision by emphasizing limited availability, making offers seem more appealing and time-sensitive.
Silent Close: A silent close is a closing technique where the salesperson stops speaking and allows a moment of silence, giving the prospect time to reflect and make a decision. This technique can create a sense of anticipation and prompt the buyer to fill the silence by either asking questions or expressing their interest in moving forward. It's an effective strategy that can help gauge the buyer's readiness to commit without pushing them too hard.
Soft close: A soft close is a closing technique used in sales that gently prompts a prospect to make a decision without putting excessive pressure on them. This method creates a comfortable environment where the buyer feels empowered to agree, as it focuses on addressing concerns and facilitating a natural progression towards a purchase. Instead of directly asking for the sale, it involves asking questions that encourage the buyer to see the benefits and confirm their interest.
Spin selling: SPIN Selling is a sales technique that focuses on asking questions to understand the customer's needs and concerns. It revolves around four types of questions: Situation, Problem, Implication, and Need-Payoff. By using this method, salespeople can engage in effective discovery meetings, analyze needs deeply, and transform objections into opportunities for closing deals.
Summary close: A summary close is a closing technique used in sales where the salesperson recaps the key benefits and features of the product or service before asking for a commitment from the buyer. This approach reinforces the value proposition and helps the buyer recall the advantages discussed, making it easier for them to make a final decision. The summary close is particularly effective in addressing any last-minute objections by reminding the buyer of the value they will receive.
Trial close: A trial close is a sales technique used to gauge a prospect's readiness to make a purchasing decision by asking for their opinion or commitment at various stages of the sales conversation. This method helps identify buying signals and can guide the seller in determining whether to proceed with the closing process or address any lingering concerns. By effectively using trial closes, sales professionals can tailor their approach based on the prospect's responses, ensuring a more personalized selling experience.
Urgency close: An urgency close is a sales technique designed to encourage the customer to make a quick decision by highlighting a time-sensitive opportunity or a limited availability of the product or service. This strategy taps into the fear of missing out, leveraging psychological triggers that prompt immediate action from potential buyers. By emphasizing urgency, salespeople can effectively create a sense of importance around the purchasing decision.