How to Close a Deal: Your Guide

Many salespeople will be familiar with this scenario: you've put in the prospecting work, connected with the potential customer, answered the prospect's questions, run a demo or two, and are now left waiting. And waiting. And waiting.

The sales process is almost complete, but you just can't seem to close a sales deal.

If reading this cuts a little close to the bone, don't worry: you're not alone. Even for the very best sales reps around, closing deals takes time and patience. A medium-sized deal worth around $20,000-$50,000 may take a few months to close - a large sales deal worth over $500,000 can often take well over a year to see through.

And that's to say nothing of the industry in which you're trying to sell, market trends, your specific prospect's pain points, and the quality of your own sales pipeline - all of which play huge roles in closing sales deals effectively.

So while sales reps must be prepared to be flexible when closing deals, they can't afford to leave the whole sales process down to chance; for those serious about closing more sales deals, there are some tried-and-tested sales closing techniques and closing strategies you can follow to up your odds and increase the likelihood of closing your next deal today.

Today, we're taking a look at some of the fundamental principles every sales professional should know in order to close more sales.

Understanding your sales funnel

'Sales funnel' isn't just a word used in training days and workshops; it's a powerful concept which should form the backbone of your sales process. So what exactly is it?

In layman's terms, the sales funnel represents the typical stages potential customers go through on their journey toward making the purchase decision. Subtly distinct from a sales pipeline or 'the buyer's journey', sales funnels help sales reps guide prospects toward a buying decision.

Here's how it works:

• Stage 1: Awareness‍
  
  • From your point of view (as the salesperson), stage one basically constitutes lead generation. You need to identify the right potential clients and make them aware of your company.‍
• Stage 2: Interest‍
  
  • This is where the talking really begins. Using outreach methods like cold calling or email marketing, sellers aim to spark the prospect's interest by addressing relevant pain points and introducing solutions.‍
• Stage 3: Decision‍
  
  • The prospect has decided to buy from you, but won't sign a contract today. They want to get the best possible deal - start negotiating!‍
• Stage 4: Action‍
  
  • In essence: closing the deal.

Why is this so important? Here's why: 96% of people who visit a product or service website aren't ready to buy yet. And an incredible 79% of leads never become ready, purely because the sales team didn't manage to nurture them properly. What these numbers tell us is that the huge majority of prospects need careful nurturing to become customers - and how do you do that? With a sales funnel.

It's critical for sellers to fully grasp the sales funnel in order to convert leads into customers. But what sales closing techniques can professionals use in their sales conversations to truly drive more deals? Let's see.

Research and prepare

All too many salespeople enter a sales conversation with the exactly the same sales pitch and technique every time. They fail to tailor their sales technique to the prospect they're talking to, thereby throwing the opportunity down the drain before it's even begun.

You can't know everything about your prospect, but there are some basic things you need to research before you reach out, such as:

• The prospect's needs‍
  
  • What is that company or department missing?‍
• Their pain points‍
  
  • What part of their process is giving them headaches? Would your product or service help to relieve a specific problem they're facing?‍
• Their decision-making process‍
  
  • Are you talking to a decision maker? Who has the final say on making a purchase?

In addition to these specific points, you should also brush up on your industry and competitor knowledge. Don't forget: what you're selling is not just the product, but your company as well.

Build trust and rapport

Sales experts place trust as a number one factor in successful sales closing. That's backed up by statistics, too: an enormous 73% of executives favor purchasing from salespeople referred by someone they know and, generally speaking, around 72% of company revenue comes from existing customers, not new ones.

These stats demonstrate just how important it is for prospects to trust the seller. The problem for the seller is that they need to prove their credibility. Here are some tips you can use to start building better rapport today:

• Treat your prospect as an individual, not a number
• Use names and smile as you speak (really - makes a difference)
• Practice active listening
• Follow up regularly
• Provide evidence for your claims

By implementing these (and a range of other soft skills) into your sales closing technique, you'll be well on your way toward more deals in no time.

Present your solution

Here we are, the crux of your sales cycle: presenting your solution.

It may seem like a simple task, but sales experts know it's anything but. A great pitch needs to engage, excite, offer value, be clear, persuade, and address specific needs all in a very short space of time. Not so easy, right?

So how can a salesperson present their solution to encourage prospects and close a sale. Well, it's an art, not a science, but here are a few rules of thumb:

• Be clear about your value proposition‍
  
  • Don't beat around the bush with off putting details just yet; focus on laying out your key points that provide value to the prospect.‍
• Tailor your presentation‍
  
  • Decision makers hear dozens (sometimes hundreds) of sales pitches a year. Make yours stand out by doing your homework and solving a pain point.‍
• Learn to handle objections‍
  
  • Prospect getting cold feet? Learn how to manage sales objections like a pro so you're never left stammering.

Create a sense of urgency

This closing technique splits opinion, although it's an accepted sales convention and, done right, can have super powerful results.

An 'urgency' sales tactic is basically about highlighting the scarcity, exclusivity, or deadline-sensitivity of your product or service - i.e., emphasizing how few units remain, offering a limited-time discount, or presenting a 'now or never close'.

To be clear, you should always steer clear of using cynical sales closing phrases for the sake of it - and should never try to intimidate prospects - but should be prepared to leverage urgency when appropriate.

Some research suggests that creating a sense of urgency can boost sales by over 300%.

Brush up on sales closing techniques

let's take a look at three of the most common sales closing techniques used by sellers to close a sales deal:

1. Direct close‍
   
   • A risky approach, the 'direct close' involves the seller simply asking the prospect to buy (when they feel they're ready). ‍
2. Summary close‍
   
   • Slightly softer than a direct close, the summary close is when a seller goes over all the benefits specific to the prospect's business needs before asking if they're ready to order.‍
3. Puppy dog close‍
   
   • What better way to demonstrate a product or service's benefits than by letting the prospect trial it for a few days? Essentially, this is what a puppy dog close is.

Of course, there are as many ways of closing deals as there are leads in your pipeline. In order to truly master your sales closing technique, you need to get to grips with as many techniques as possible and be prepared to adapt them to individual prospects.

Closing deals faster

Reducing your sales cycle and closing a sales deal faster is no easy task. It can often take weeks or months of careful, considered baby steps to reach the point of decision - but with the right closing techniques under your belt, potential clients are yours for the taking.

The truth is that qualifying leads and sales closing are expert professions which take years to master. The good news, however, is that companies (from small businesses to growing organizations) have more access than ever before to industry-leading B2B lead generation and sales development agencies.

Such agencies come ready-made; they have the technology, the experience, and the dedicated sales teams waiting to start closing more deals on your behalf. So if you're looking to up your sales game and want to seal the deal on your business future, see what Leadium has to offer today.