What is sales closing?
Sales closing: definition
Sales closing is the crucial juncture in the sales process where both seller and buyer agree on the sale’s terms, and the buyer commits to completing the transaction. This is where all of your efforts culminate (though the sales process isn’t completely over yet). Sales closing goes way beyond a mere transaction aimed at driving revenue growth: it means the establishment of trust between you and the buyer.
However, to get there, you’ll first have to accomplish every key mission objective throughout the entire sales cycle. Many sales professionals encounter resistance as prospects often initially decline before reaching a positive decision, underscoring the need for persistence. That being said, if the rest of the work has been properly done, if every milestone has been reached, closing a sale should be rather straightforward.
Sales closing: why is it important?
Even though, as we just explained, closing is just one step of the whole selling process and shouldn’t be prioritized to the point where you neglect what comes before, it remains necessary. Indeed, closing brings you answers:
- either the deal is sealed and everyone benefits from it ;
- either the deal is off and you get to analyze what went wrong and how you could
improve as a salesperson.
Either way, you can move on, which avoids wasting everyone’s time. The need for a close doesn’t mean it needs to be rushed. Quite the contrary, closing a sale should always feel natural and fully incorporated to your sales pitch. This is what the following techniques were designed for.
10 successful sales closing techniques
Alternative Close
The Alternative Close is a sales closing technique where you present prospects with multiple purchasing options, leading them into believing they are in control. However, in reality, you subtly guide them in the right direction, towards a preferred option, often a more comprehensive package. For instance, when facing resistance on specific features, you might suggest: “Would you prefer our Premium package with advanced features and personalized training, or our Standard package at a lower cost with fewer features and self-guided training?”
This technique assumes prospect interest and provides distinct alternatives to progress the deal. It works best when objections are minimal, offering prospects varied options to streamline decision-making and encourage commitments.
Assumptive Close
The Assumptive Close is a potent sales strategy that relies on positive thinking, assuming the deal is nearly sealed from the beginning. It emphasizes continuous monitoring of prospect engagement and objections. Instead of asking wether they’re ready to buy, you confidently discuss specific details like quantities or implementation timelines. This sales closing technique will require you to be assertive without being forceful. It works best after a thorough presentation of product benefits, when there’s unwavering confidence in the product’s fit and you’re sure of your prospect’s interest.
The Assumptive Close capitalizes on the principle of self-fulfilling prophecy, aiming to prevent clients from contemplating reasons to avoid a purchase. While suitable for established relationships with familiar leads, it may be less effective without a prior connection or if the prospect has already told you they think your solution isn’t a good fit.
Backward Close
The Backward Close challenges the traditional sales cycle by starting with a referral request before attempting to sell. Effective for specific leads, it prioritizes relationship-building and alleviates customer concerns: they lower their defenses since they don’t feel they are the ones being sold to.
Unlike the usual practice of seeking referrals at the conclusion of the sale, the Backward Close requests referrals early to generate interest. Offering rewards enhances the approach. This method fosters relationships, leverages trust in referrals, and is optimal for reengaging disinterested leads. Unconventional yet impactful, it aligns with certain lead types, providing a unique strategy in the sales process.
Now or Never Close
This timeless sales closing technique taps into the psychology of urgency and the fear of missing out (FOMO) to encourage immediate purchases. It is also sometimes referred to as the scarcity or urgency close.
The idea is to offer exclusive benefits, discounts, or extra perks to sway potential customers and overcome their reservations but on the one condition that they hurry up as it is “a limited-time offer”, “there are only a few products left”, etc.
It works best with a few given circumstances:
- in person or vocal communication scenarios;
- there must be a pre-existing interest in the product, it’s not a technique intended to
make someone change their mind completely; - capacity to make special offers.
Objection inquiry
The Objection inquiry is a valuable sales closing technique when prospects seem to be hesitant without clear reasons. After ensuring they understand the product, inquire if there are any remaining objections, all for open communication. You’ll need to be specific in your questions and then respond with tailored solutions.
This selling technique builds trust and facilitates transparent communication, a key element for establishing long-term relationships. It is most effective when prospects display interest but require clarifications. This method proves beneficial when prospects are reluctant to make a decision without explicitly revealing their reservations, allowing for the elimination of objections and presenting a compelling offer.
There is a less direct technique called “Question close”, where you ask probing questions instead of directly trying to uncover their objections and reservations. Depending on the circumstances and of course the prospect, choose the most appropriate.
Sharp Angle Close
The Sharp Angle Close, or the “If I – Will You Close” technique, is designed for when prospects seek price reductions or extras. In this approach, sales reps pleasantly surprise prospects by agreeing to their requests, but with the condition of an immediate deal closure. Effective with approval from sales managers, this sales closing technique is apt for seasoned negotiators who often ask for special concessions. By offering something already on the table and securing a commitment in return, you create a win-win situation. Ideal for prospects accustomed to seeking incentives, it may not be suitable for those unfamiliar with sales nuances or not seeking anything unique.
Soft Close
The Soft Close involves introducing the benefits of your product or service to prospects, and following up by gentle questions to gauge their interest. For instance, you might ask, “If I could reduce widget maintenance by 25% and increase productivity by 15%, would you be interested in learning more?”
This approach avoids immediate demands and allows for a gradual exploration of their needs. The soft close lets prospects guide the selling process. It works well with qualified leads who are familiar with your offering. Conversely, it is not recommended for unqualified prospects or those unfamiliar with your product.
Something for Nothing Close
The Something for Nothing Close consists in offering a goodwill gesture, with the expectation that your prospect will reciprocate by making a purchase. This technique is particularly useful for companies seeking fast customer acquisition or looking to persuade prospects to switch from a competitor’s product.
For instance: “As a gesture of goodwill, if you commit today, we’ll include a complimentary training session for your team, valued at $900.” This approach relies on reciprocity, to create a sense of obligation in the prospect to finalize the deal. It is essential to ensure that the free addition is relevant and doesn’t significantly impact profitability.
Summary Close
The Summary sales closing technique in sales involves recapping key product features and benefits to help prospects envision the value of a deal. This way, sales reps help them make informed purchase decisions, especially in lengthy sales cycles where product details may be forgotten along the way.
Example: “We already covered the efficiency of our software in streamlining your workflow, the personalized training sessions we offer, and the ongoing customer support. Now, can you picture how our solution aligns with your business goals? Are there any aspects you’d like further clarification on, or are you ready to proceed and bring all of this to your teams?” This closing technique is effective in reinforcing positive aspects. It is recommended for situations where the product aligns well with the prospect’s needs and serves as a quick reminder before making a decision. However, it may not be suitable for shorter conversations or when the product’s value points lack significant impact on the prospect.
Take Away Close
The Take Away Close is a psychological sales approach where, in response to price resistance, you propose removing a feature or service to offer a discounted package. For example, you might say, “While our product aligns with your budget, we can include either feature 1 or service 1 at the initial price. Does this arrangement suit your needs?” The prospect tends to focus more on the omitted feature than the discounted price.
This technique utilizes reverse psychology, leveraging the human tendency to desire what might be taken away. It proves effective when the prospect has shown interest in the product but hasn’t committed to the purchase.
How to build on these effective sales-closing techniques?
Knowing closing techniques is an important step to improve performance at closing, but then
again, this is just one step. Here are the best practices to make the most of your new
knowledge. As we said, to get better results, you need to be focused and efficient throughout
the entire sales cycle, not just at closing.
How to close a deal: be prepared
Even though small-scale in-store sales interactions do not give you any other choice than trying to figure out on the spot who you are dealing with, this is not the same thing at all in let’s say B2B sales meetings. In those instances, you will have to know as early as possible:
- who your customer is: their needs, their pain points;
- how they align with your solution in terms of budget;
- who makes the purchase decision in their organization.
These are just a few examples, as research and questions on prospective customers are the focus of most sales methodologies like Sandler, BANT or MEDDIC.
Handle post-close processes and anticipate potential hurdles
Once again, in complex B2B environments, closing the deal with a business pitch is almost never the end of the sales cycle. Indeed, sales reps still have to handle:
- remaining paperwork followup;
- real-time competition monitoring;
- last minute reservations/objections;
- providing a receipt and thanking the customer (really important);
- recording the sale in your company’s files.
Self evaluate to learn what you need to improve
After everything has been said and done, if you want to improve, now is the time to reflect on how you performed.
- What went well?
- What do you still need to improve?
- How did it go with the new things you tried for this sale?
- What new avenues do you want to explore in order to improve?
Closing remains a crucial step of the sales cycle, the high point where everything you set up in the previous steps, falls into place and pays off, either literally or through a valuable lesson. Yet, don’t forget that the time of “Always Be Closing” has passed, customers and prospects do not respond the way they used to a few decades ago. Now you should strive to establish meaningful business relationships with them, remembering that closing, as important as it is, cannot make sense on its own. Broadening the scope of our analysis is how we like to approach new challenges at CoachYZ.
Indeed, we believe that holistic views allow for a better understanding but also for better-suited solutions. Every day, we help team managers and business leaders tap into their true potential. If you want to be the best decision maker you can be, get started with CoachYZ!
