Some people seem to have a natural knack for negotiating. However, there is plenty of research that shows that the ability to persuade and influence others is a learnable skill. In fact, most successful dealmakers have participated in some form of training.
A negotiation skills online course is one way to learn how to become a better dealmaker. Here are some tips that you could use to boost your ability to close more deals.
Qualify leads and prospects early
Regardless of a negotiator’s expertise, not every deal pans out. Also, most deals take time to close.
When you commit your time to one prospect, it takes time away from closing other deals. So, before you begin negotiating, make sure that you qualify your leads and prospects.
Qualifying a lead or prospect is the process of determining whether the prospect has a genuine need for your product or service, and whether you can make a healthy profit servicing the prospect’s needs. Here are some questions negotiation course participants learn to consider in order to qualify their leads:
- Is the prospect’s problem sufficiently painful that they’re prepared to invest time and money now into fixing it?
- Can the prospect afford the product or service?
- Does the contact have the power to make buying decisions?
- Does the prospect have an incumbent supplier? If so, how has the incumbent supplier failed the prospect?
- What other solutions is the prospect considering?
- Does the prospect have an authorised budget for this spend?
Do your homework
Almost 90% of negotiation success comes down to proper planning, says Dr Jared Curhan, a professor at the Massachusetts Institute of Technology.
To prepare for your meeting, ask yourself the following questions. Your answers will depend on the type of deal you are trying to close.
- What do you want to achieve? For example, if you’re meeting with a vendor, your primary goal may be to decrease your costs or to increase your service level.
- Which style can help you achieve your goals? For example, would a competitive style be more effective than a collaborative one or vice versa?
- What facts support your position? For instance, if the other side compares the price of your service or product to a competitor, can you show them how your offering adds value?
- Who are you meeting with, and what are their needs? What sort of deal would appeal to the other side? What arguments and objections might they make?
- What concessions can you make if needed? Can you reduce your warranty or adjust the terms of the financing, for example?
Make a strong first impression
Relationships are crucial when trying to close a deal. Negotiators who build strong relationships tend to have more influence and persuasive power. Learning how to make a strong first impression is the starting point for creating successful connections.
According to social experts, you only have 27 seconds to impress at your first meeting. So, what are some ways to make a great first impression? It’s important to:
- Show up appropriately dressed and groomed.
- Be confident.
- Use a positive tone and be authentic.
- Focus on mutual benefits.
Practice active listening
Listening is a skill that can have a positive impact on deal-making. Which is why in a negotiation course, you learn not only what to say but also how to be an active listener.
Active listening skills can help you gain trust and confidence, which helps build relationships. Also, the ability to sincerely listen can increase your understanding and help to solve problems.
In an online negotiation, active listening is especially critical as you do not have as much access to body language cues as with an in-person negotiation.
Here are a few tips that you can use to help improve your listening skills both virtually and in person.
- Maintain respectful eye contact.
- Paraphrase what is said.
- Ask clarifying questions once they finish speaking.
Be a trusted guide
Whether you negotiate online or in person, it’s not uncommon to engage with prospects who are not yet able or willing to commit. Buyers, especially in complex sales, want clarity about how different solutions will address their pain points.
Failure to achieve that clarity may cause buyers to cancel or postpone the deal. When a deal is at risk of stalling, being a trusted guide is one way to move things back on track. So, show your prospect that you understand their pain points and help them make sense of the solutions they encounter.
Step into “teaching mode” so you can illustrate your credibility and establish yourself as an expert. You can demonstrate that you understand the prospect’s problems by creating a personalised report or video. You may even host a webinar where you walk users through your solution and take questions.
Speak with the decision makers
It’s important to identify who the decision makers and decision influencers are before you deliver your pitch. If you try to close a deal with someone who has zero buying or decision influencing power, you’re likely to waste your time and theirs.
In most organisations today, there is seldom a single decision maker. Consensus buying, where purchasing decisions involve cross-functional groups, is more of the norm. So, look for the decision makers, as well as the people they rely on to advise them in making a decision.
For finding the decision makers, here are a few ways negotiation course experts recommend trying first:
- LinkedIn – Browse the list of company employees and take note of their titles. Keep in mind that decision makers’ titles often vary from company to company based on the size of the company.
- Use your network – Do you know someone who works at the company? Ask them who the decision makers are and whether they can introduce you.
- Phone calls – Call the company directly and ask for the names of the relevant decision makers.
Stay calm
Closing a large or complex deal can be a nerve-wracking affair. In high-stress situations, it’s all too easy for people to lose their cool. However, it’s important to stay calm and level-headed.
Alison Brooks and Maurice Schweitzer, Wharton School researchers at the University of Pennsylvania, found that anxiety affects deal outcomes. For example, anxious sales negotiators tend to make lower first offers and give up too soon.
If the discussion starts to heat up, these tips from top online negotiation courses could help you stay calm:
- Take a break to give everyone time to gain control of their emotions.
- Slow down your breathing to calm your brain and emotional state.
- Watch what you say and how you say it. Words and tone can trigger stress and conflict. Rather than risk sounding as if you’re contradicting, replace “but” with “and.”
Practice
Practice helps negotiators organise their thoughts, polish their message, and communicate with confidence. Also, working to improve your skills and techniques is an effective way to make them second nature.
When you are confident in your deal-making abilities, you’re able to be more perceptive, responsive, and present.
A great way to practice your negotiation skills is in situations where you have little to nothing to lose. For instance, when you travel, ask to check in a bag for free or for an upgrade. You could also work on your communication and listening skills with co-workers, friends, or family.