Chapter Eight
Confirming and
Closing the Sale:
Start the LongTerm Relationship
PowerPoint presentation prepared by
Dr. Rajiv Mehta
Chapter Outline
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Closing and confirming the sale
Avoiding the close
The trial close
Principles of persuasion in closing
Closing techniques
Letting customers close the sale
Silence can be golden in closing
Closing mistakes
How do you handle sales rejection?
Immediate post-sale activities
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Chapter 8 | Slide 2
Learning Objectives
After reading this chapter, you should understand:
• Why some salespeople fail to close.
• When to attempt a trial close.
• What trial closing cues are and how to make
use of them.
• Key principles of persuasion in closing.
• Effective closing techniques.
• How to deal with rejection.
• What immediate post-sale activities must be
performed.
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Chapter 8 | Slide 3
Figure 8.1:
The Personal Selling Process (PSP)
• The sixth step
of the
professional
selling cycle
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Chapter 8 | Slide 4
Closing and Confirming the Sale
• The Close
• is that stage in the selling process where the salesperson tries to
obtain agreement from the prospect to purchase the product.
• Closing Is Part of the Ongoing Selling Process
• Instead of the end of the selling process, professional salespeople
recognize the close as simply a vital part of the ongoing selling cycle
and buyer-seller relationship.
• What the Close Represents
• A successful close confirms the winwin agreement reached with a buyer
and the continuance of the buyerseller relationship.
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Chapter 8 | Slide 5
Avoiding the Close
•
Some salespeople, even experienced ones, actually avoid trying to
close for various reasons.
Experienced
salespeople:
•
Sometimes inadvertently avoid the close
because they are so wrapped up in their wellrehearsed sales presentation that they don't
want to close until they've finished their
presentation and demonstration
•
Other veteran sales reps become complacent
and avoid trying new closing methods even
when the old ones aren't working
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Chapter 8 | Slide 6
Avoiding the Close cont’d
•
Three basic reasons why new salespeople often avoid the close are:
New Salespeople
•
lack of confidence in themselves, their
product, or their company
•
guilt about asking people to part with their
money
•
general fear of failure that causes them to
postpone the attempt to close as long as
possible
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Chapter 8 | Slide 7
The Trial Close
• A trial close is any well-placed verbal or nonverbal attempt to close the
sale which can be used early and often throughout the selling process.
It can be as simple as saying: “So, what do you think?” Or,
nonverbally, merely looking at the prospect and making a hand, head, or
eye gesture indicating you’re like their response to something they’ve
just heard or that you’ve demonstrated.
• Professional salespeople should be prepared to close anytime,
anywhere because they know their ABC's —
Always Be Closing!
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Chapter 8 | Slide 8
When to Close
• There is no single, best time to attempt a close
• Closing attempts, though, are especially appropriate in three situations:
• When a presentation has been completed
without any objections being raised by the
prospect.
• When the sales presentation has been
completed.
• When all questions and objections have
been addressed.
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Chapter 8 | Slide 9
When to Close cont’d
•
Numerous verbal and nonverbal signals or
cues indicate that it's an appropriate time to
try a close.
•
If the trial close doesn't work, just continue
the sales presentation and demonstration.
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Chapter Review Question:
What is a “trial close”? Give some examples of trial closes.
What verbal and nonverbal cues from the prospect indicate that it’s time for a trial
close?
When should salespeople try to close?
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Chapter 8 | Slide 10
Table 8.1 Trial Closing Signals
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Chapter 8 | Slide 11
Table 8.1 Trial Closing Signals cont’d
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Chapter 8 | Slide 12
Principles of Persuasion in Closing
cont’d
1. Consistency Principle
• If you can achieve a series of positive agreements with the buyer on
individual product benefits during the sales presentations, the stage will
be set for a close that is merely a continuation of this pattern of positive
responses
2. Commitment Principle
• Prepurchase efforts by prospects to learn about a product tend to
increase their commitment to buying the product
3. Reciprocity Principle
• When one person does someone a favor, the second person usually feels
obligated to return the favor
4. Social Validation Principle
• Prospects are more likely to buy a product when they learn that people
and similar companies to themselves have purchased it
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Chapter 8 | Slide 13
Principles of Persuasion in Closing
5. Authority Principle
• Prospects are more likely to buy from salespeople and companies they
perceive as experts in their field
6. Scarcity Principle
• When a product becomes scarce, it is often perceived as more valuable
and desirable
7. Friendship Principle
• Prospects are more easily persuaded by salespeople they like
Chapter Review Question:
What are some principles of persuasion?
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Chapter 8 | Slide 14
Table 8.2 Principles of
Persuasion in Closing
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Chapter 8 | Slide 15
Table 8.2 Principles of
Persuasion in Closing cont’d
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Chapter 8 | Slide 16
Table 8.2 Principles of
Persuasion in Closing cont’d
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Chapter 8 | Slide 17
Closing Techniques cont’d
•
The more closing strategies the salesperson knows and can effectively
apply, the greater his or her chances for closing the sale. Five widely
used closing techniques include:
1.
2.
3.
4.
5.
Clarification closes
Psychologically oriented closes
Straightforward closes
Concession closes
Lost sale closes
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Chapter 8 | Slide 18
Clarification Closes cont’d
1. Assumptive Close
• Assume that the purchase decision has already been made so that
the prospect feels compelled to buy
2. Choice Close
• Offer the prospect alternative products form which to choose
3. Counterbalance Close
• Offset an objection that cannot be denied by balancing it with an
important buying benefit
4. Success Story Close
• Tell a story about a customer with a similar problem who solved it by
buying the product
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Chapter 8 | Slide 19
Clarification Closes cont’d
5. Contingent Close
• Get the prospect to agree to buy if the salesperson can demonstrate
the benefits promised
6. Boomerang Close
•Turn an objection around so that it becomes a reason for buying
7. Future Order Close
• If a prospect does not have a current need, but may have one in the
future, the salesperson can ask for a commitment from the prospect to
purchase at a future time
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Chapter 8 | Slide 20
Clarification Closes cont’d
8. If-When Close
• Ask the prospect to provide a clarification as to when an order will be
placed, as opposed to if an order will be placed.
9. Probability Close
• Although similar to the “if-when close” described above, the probability
closing technique asks the prospect to assign a quantified likelihood of
signing a sales contract in the near future.
10. Suggestion Close
• Imply that the prospect should accept the salesperson’s suggestion to
buy without giving it a great deal of thought. A salesperson, for
example, might state that customers who have purchased the product
have reported high levels of satisfaction, thereby the prospect should
purchase it, also.
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Chapter 8 | Slide 21
Psychologically Oriented Closes cont’d
1. Stimulus-Response Close
• Use a sequence of leading questions to
make it easier for the prospect to say “yes”
when finally asked for the order.
2. Minor Points Close
• Obtain favorable decisions on several minor
points leading to eventual purchase decision
3. Standing-Room Only Close
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Images
• Suggest that the opportunity to buy is brief
because demand is great and the product is
in short supply
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Chapter 8 | Slide 22
Psychologically Oriented Closes cont’d
4. Impending Event Close
• Warn the prospect about some upcoming event
that makes it more advantageous to buy now.
5. Advantage Close
• This variation of the impending event close
emphasizes the specific advantages of making
a timely decision, while still stressing a sense of
immediacy
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6. Reserve Advantage Close
• In this slight variation of the advantage close described above,
salespeople identify a number of merits for purchasing a product, but
save a few to use if the prospect exhibits resistance yet again
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Chapter 8 | Slide 23
Psychologically Oriented Closes cont’d
7. Puppy dog Close
• Let the prospect take the product home for a while and, as with a puppy,
an emotional attachment may develop, leading to purchase
8. Compliment Close
• Commend prospects for raising interesting and intelligent questions
which subtly flatters their egos then ask them to sign the sales order
9. Dependency Close
• Used to break the “choke-hold” that a competing firm has over a
prospect’s business by suggesting that the prospect have an alternative
supplier to reduce the risk of being dependent on one supplier
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Chapter 8 | Slide 24
Straightforward Closes cont’d
1. Ask for the Order Close
• Ask for the order directly or indirectly.
2. Order Form Close
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• While asking the prospect a series of
questions, start filling out basic information
on the contract or order blank, then hand
the order form and a pen to the prospect
3. Summary Close
• Summarize the advantages and disadvantages of buying the product
before asking for the order
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Chapter 8 | Slide 25
Straightforward Closes cont’d
4. Repeated “Yes” Close
• This variation of the summary close requires a salesperson to pose
several leading questions to which the prospect has little choice but to
respond in an affirmative manner
5. Benefits Close
• Also a variation of the summary close, it requires the salesperson to
identify and present a synopsis of the various salient benefits that the
sales solution offers
6. Action Close
• The salesperson simply hands the prospect a pen along with the
contract, and frequently the prospect, almost by reflex, will sign
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Chapter 8 | Slide 26
Straightforward Closes cont’d
9. Negotiation Close
• Both the buyer and the salesperson
negotiate a compromise, thus
ensuring a “win-win” agreement.
10. Technology Close
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• The salesperson more impactfully
and effectively summarizes key
value-added benefits for the
prospect by using technologies such
as PowerPoint, Excel, or other multimedia tools.
Chapter 8 | Slide 27
Concession Closes cont’d
1. Special-Deal Close
• Offer a special incentive to encourage the
prospect to buy now.
2. No-Risk Close
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• Agree to take the product back and
refund the customer's money if the
product doesn't prove satisfactory.
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Chapter 8 | Slide 28
Concession Closes cont’d
3. Management Close
• When salespeople do not have the authority to make the prospect’s
requested commitments or concessions, they can elicit the assistance
of a senior sales manager who has the authority to make the
necessary decisions to close the sale no-risk close sale.
4. Takeaway Close
• Used as an emotional fear appeal to cause anxiety that the prospect
may lose out on a special deal or incentive. A salesperson may
suggest that the special offer to provide an ancillary product or service
free of charge is available only for another week, thereby evoking an
immediate purchase
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Chapter 8 | Slide 29
Lost Sale Closes cont’d
1. Turnover Closes
• Turn the prospect over to another
salesperson with a fresh approach or better
chance to make the sale.
2. Pretend-to-Leave Close
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• Start to walk away, then "remember" another
benefit or special offer after the prospect has
relaxed his or her sales defenses
3. Ask For Help Close
• When the sale seems lost, apologize for not being able to satisfy the
prospect and ask what it would have taken to get him or her to buy; then
offer that
Chapter Review Question:
Describe as many as you can of the closing strategies discussed in the chapter.
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Chapter 8 | Slide 30
Table 8.3 Closing Techniques
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Chapter 8 | Slide 31
Table 8.3 Closing Techniques cont’d
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Chapter 8 | Slide 32
Table 8.3 Closing Techniques cont’d
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Chapter 8 | Slide 33
Table 8.3 Closing Techniques cont’d
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Chapter 8 | Slide 34
Table 8.3 Closing Techniques cont’d
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Chapter 8 | Slide 35
Table 8.3 Closing Techniques cont’d
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Chapter 8 | Slide 36
Table 8.3 Closing Techniques cont’d
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Chapter 8 | Slide 37
Table 8.3 Closing Techniques cont’d
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Chapter 8 | Slide 38
Table 8.3 Closing Techniques cont’d
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Chapter 8 | Slide 39
Table 8.4 Price Discounts
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Chapter 8 | Slide 40
Letting Customers Close the Sale
• Professional salespeople who strongly
advocate “win-win” selling sometimes
advise turning the tables on tradition by
letting the customer close the sale
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• To motivate customers to help close
the sale, you must clearly show the
product's added value in solving
customer problems and increasing
customer success
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Chapter 8 | Slide 41
Silence Can Be Golden In Closing
• Don’t speak for a while after
asking a closing question. The
pressure is on the prospect to
answer your closing question and
commit to the purchase
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Chapter 8 | Slide 42
Closing Mistakes
• Many sales are lost because the salesperson makes simple mistakes
that the well-prepared professional salesperson is less likely to make
• Examples of closing mistakes include:
•
Talking past closing signals
•
Failing to recognize prospect
buying signals
•
Giving up too soon
•
Lingering too long after the close
•
Failure to practice closing skills
•
Projecting a lack of confidence
•
•
Reluctance to try trial closes on
early calls
Lack of alternative closing
strategies
•
Failure to understand the need to
close
•
Inflexibility in using closing
techniques
Chapter Review Question:
Outline several closing mistakes.
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Chapter 8 | Slide 43
Table 8.5 Closing Mistakes
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Chapter 8 | Slide 44
Table 8.5 Closing Mistakes
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Chapter 8 | Slide 45
How Do You Handle Sales Rejection?
No One Wins All the Time -- Salespeople won’t make a sale each time, but
they can learn from each presentation/demonstration and be better prepared
for the next one.
Learn From Rejection -- When salespeople are unable to close a
sale, they should not feel discouraged or personally rejected. Instead of failure,
rejection should be viewed as:
• A learning experience that will enable you to do better next time.
• Helpful feedback that will spur you to develop more creative closing
approaches.
• An opportunity to develop a sense of humor and begin to lose your fear of
future rejection.
• The motivation to spend more time practicing selling skills and improving
performance.
• Just a part of the selling game that you must accept in order to continue to
play and win.
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Chapter 8 | Slide 46
Constructive Ways of
Dealing with Rejection
•
Never equate your worth as a human being with your
success or failure as a salesperson
•
Separate your ego from the sale
•
Don't automatically assume that you or your selling skills
are the problem
•
Move on to other prospects
•
Positively anticipate rejection, and it will not overwhelm you
•
Remember that there are many more rejections than
successes in nearly all types of selling
•
Recognize the possibility that not buying may be the only
decision the prospect can make at this time for various
reasons, such as timing, shared decision making, or budget
constraints
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Chapter Review Question:
Discuss some ways for a salesperson to deal with rejection.
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Chapter 8 | Slide 47
Table 8.6 Constructive Ways
to Deal with Rejection
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Chapter 8 | Slide 48
What Not To Do When the
Prospect Doesn't Buy
Salespeople
should:
•
•
•
•
•
•
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Not burn any bridges by showing
disappointment, anger, frustration, or any
other negative reaction
Analyze lost sales to see what might have
been improved
Help the prospect shop the competition
Call back with new information or product
benefits and appeals
Schedule another sales appointment
Never give up
Chapter Review Question:
What should a salesperson do when
the prospect doesn’t buy?
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Chapter 8 | Slide 49
Table 8.7 What to Do When
the Prospect Doesn’t Buy
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Chapter 8 | Slide 50
Immediate Post-Sale Activities
•
Following a sale, there are two major
concerns for salespeople:
(1) Serving and Satisfying the Customer, and
(2) Keeping the Customer Sold
•
Remember that the long-range goal is
customer loyalty
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Chapter 8 | Slide 51
Serving and Satisfying the Customer
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•
Call or write within a few days to thank
customers
•
Check on your customers' orders to make
sure that are going to be delivered on time
•
Contact credit and billing to confirm that
they have the correct information on your
customers' orders before sending out
invoices
•
Try to be there when the product is
delivered to the customer
• Promptly update your sales records on your customers
• Keep your customers informed about new products, price changes,
anticipated product shortages, etc.
• Call your customers on a regular basis to ask whether they have any
problems
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Chapter 8 | Slide 52
Keeping the Customer Sold
• After closing a sales agreement,
salespeople cannot afford to celebrate
success for long because "keeping the
customer sold" can be as challenging and
time-consuming as winning the order in the
first place
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• Follow-up and customer service are
essential
• Remember: Winning new customers is much harder and less
profitable then keeping old customers
Chapter Review Question:
List some immediate post-sale activities of a successful salesperson.
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Chapter 8 | Slide 53
Key Terms
• Close
• The stage in the selling process where the salesperson tries to
obtain the prospect’s agreement to purchase the product.
• Trial Close
• Any well-placed attempt to close the sale; can be used early and
often throughout the selling process.
• Boomerang Close
• Turning a prospect’s objection or point of resistance around so that it
becomes a reason for buying.
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Chapter 8 | Slide 54
Key Terms cont’d
• Puppy Dog Close
• Letting the prospect try the product for a few days or weeks before
buying, on the principle that most people grow attached to something
they have for a while.
• Price Discount
• Any reduction off the standard list price of a product.
• Ask For Help Close
• Even after the sale seems lost, the salesperson asks the prospect
what could have been done to make the sale. Oftentimes, the
prospect will give a previously undisclosed reason or objection,
which the salesperson can then answer and secure another chance
to close the sale.
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Chapter 8 | Slide 55
Topics for Thought and
Class Discussion
1. Which do you think is a more appropriate term for stage 6
in the Personal Selling Process: closing the sale or
confirming the sale? Why?
2. What would you say to a salesperson friend who must
overcome low self-confidence, guilt, and fear of failure
before attempting to close sales?
3. Which of the closing techniques provided in Table 8.3 do
you think you would prefer to use in your professional
personal selling career? Why?
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Chapter 8 | Slide 56
Topics for Thought and
Class Discussion cont’d
4. Why is it often effective for the salesperson to be silent
after attempting a trial close?
5. What would you do if a prospect didn’t buy from you
following the fifth sales call when you thought for sure
you’d achieve a successful close?
6. Assume you have just made a substantial sale. What steps
would you take to further the buyer-seller relationship?
7. What do we mean by “rejection”? Why are most of us so
afraid of it? How do you personally cope with various types
of rejection in your life?
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Chapter 8 | Slide 57
Internet Exercises
1. Use an Internet search engine to find three firms that will
train you in closing sales. What company is offering each
program? Is the focus B2B selling, B2C selling, or both?
What are the length and cost of each program? Where
would it be held? Who’s doing the training? What will the
training cover that will be new?
2. Use Google or any other search engine to locate two
examples of closing strategies being demonstrated using
Flash or streaming video.
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Chapter 8 | Slide 58
Projects for Personal Growth
1. Ask three business-to-business salespeople to explain
their favorite closing strategies. Give each strategy a
name. How many of them are discussed in this chapter?
Do you consider any of the closes used by the three
salespeople manipulative or questionable? Why?
2. Share stories with other members of your class about how
you have recently used one or more of the seven basic
principles of persuasion to negotiate something. Do any of
your classmates have a favorite persuasion technique that
they rely on most often?
3. Survey five people in different occupations about how they
deal with rejection. Would these methods also apply to
personal selling? Explain how.
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Chapter 8 | Slide 59
Case 8.1: Talk, Talk, Talk!
1. Do you believe Ms. Connors would have placed an order
when Fred completed his sales close? Why?
2. What do you think of Fred’s sales presentation? What
improvements would you suggest?
3. Could Fred have tried a trial close before Ms. Connors left
for the other meeting? If so, what should he have said?
4. What advice would you give Fred for future sales calls?
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Chapter 8 | Slide 60
Case 8.2: She’s Got Personality…and a
Lot More!
1. Do you think Peggy uses any particular persuasion
principles or selling strategies that others might learn, or is
her success largely attributable to her unique personality?
2. Assume that you are Frank Sherry and you must develop a
teachable model or system to train others how to do what
Peggy seems to do almost instinctively. Based on the
limited information provided, identify and give examples of
the specific principles of persuasion and closing strategies
that Peggy applies in her personal selling activities.
Case 8.2 is found online at
http://college.hmco.com/pic/andersonps2e.
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Chapter 8 | Slide 61
Case 8.2: She’s Got Personality…and a
Lot More! cont’d
3. Should new salespeople be taught to sell like Peggy
Markley, or should each sales trainee be allowed to
develop his or her own personal style, closing strategies,
and persuasive techniques? Why?
4. Outline a sales training module for new sales trainees that
integrates the basic persuasion principles with different
closing strategies.
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Chapter 8 | Slide 62