When will this deal be signed? If you are in sales, I am sure that you often hear this question. And if you are a sales manager, I am sure that you ask this question quite often to your team members. Answers like ‘I don’t know exactly’ or ‘Somewhere in the next few months’ are pretty standard. Do you recognize this? Do you have the feeling that you don’t control your opportunities?
Predicting the outcome of an opportunity is one of the most challenging parts in sales. All excuses come into play why we don’t know or can’t say anything about it. This is not only frustrating for your management, but it also makes you a very inefficient sales rep. You treat all opportunities as equal, and you are not able to set the right priorities if you don’t know which deals are most likely to sign.
But there are several ways to do this better. Don’t blame your customer. Look at yourself. You can assess the opportunities you’re working at. You only need to ask yourself the following 6 questions.
Is there a need?
This sounds like an easy question. I hear you thinking ‘of course there’s a need’. But don’t confuse a need of your contact person with a requirement of his employer. Often you see that people show interest, but their interest isn’t in any way linked to the company’s strategic objectives. It usually happens in larger corporate organizations.
We recommend asking your contact how his need refers to the company goals, and if he/she has been requested by the decision-makers to contact potential suppliers. If the answer is no, rethink if you want to spend more time there.
Is there a business case?
Companies don’t buy anything because they like it or it looks nice. They only buy something from you if it brings significant benefits to their organization. So, besides the criteria if it’s linked to a strategic company goal (as mentioned in the previous bullet), another critical predictability indicator is the fact if a business case can be made. In other words, does your investment has a clear ROI (Return-on-Investment)? If not, or if it’s difficult to calculate, your likelihood of closing a deal is low.
Do I have access to the right persons?
It’s crucial to understand to whom you’re talking. Is it the company owner, or is it an authorized decision-maker? If this is not the case, ask your contact how he is linked to the key decision-makers. And if he’s the decision-maker or connected to any of them, does he also mobilize other people in his organization to create buy-in for your solution?
If your contact is not willing or able to answer his position in the organization, or you conclude that the distance from the decision-makers is too far away, your chance of signing a deal is probably low.
”It’s crucial to understand to whom you’re talking.”
CEO of Sales
Can we win?
When you start an opportunity, you always think you could win. That’s a good starting point, but be realistic as well. Put yourself in the customer’s shoes. Are you honestly convinced that there’s a solution fit? Do you feel that the relationship can make the difference? Does the customer really see your unique business value? If all questions can be answered with yes, the likelihood of a positive outcome is much higher.
Is there money available?
It maybe sounds like a stupid question. But it is not. We often forget to ask if the customer has a budget to spend this year. If you deal with larger corporates, we quickly assume that there’s always money available.
Don’t hesitate to ask the money-question. Also, do your research. How is their revenue developing year-on-year? How profitable are they? How do their shares perform on the stock exchange? If all those are moving in the right direction, your chances of signing a deal will become much higher.
Is there a compelling event?
If you have answered all questions above with ‘yes,’ then there’s one last question which is crucial. Figure out if there’s a moment when your customer can’t longer postpone buying. A compelling event forces the decision and will definitely help you to close the deal. Great salespeople can create a compelling event!
So, salespeople where are you waiting for? Let’s start to review your deals with these 6 questions! I’m curious to understand how healthy your pipeline is!
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