The notion that "what got us here won't get us there" couldn't be more applicable to B2B selling right now as our customers and their organizations brace for economic hits.
Sheer persistence and unrelenting speed might have set some of your sellers apart from your competitors these last few quarters, netting your organization a handful of those coveted large deals. However, the absence of a set of winning negotiation habits that all your enterprise sellers can align around and be coached on will pause or even erode the competitive edge you might have gained in 1H.
The Role of the Sales Manager
As two-thirds of sellers expect to learn outside the classroom, we see the sales manager being a key player and influencer in any endeavor. These leaders build and sustain sellers' habits, given their proximity to the sellers and the frequency with which they interact with the frontline contributors. They also tend to carry relevant institutional knowledge and sales know-how.
We also see sales managers as a crucial, real-time stop gap to sellers' indiscriminate discounting and low-yield negotiation habits because of the administrative and supervisory aspects of their managerial role. They're usually the one from whom approval must be sought in order to process any discounts being offered by the seller to the customer. They are also typically the first person to be brought in by the seller to help close a tricky and tough deal.
Creating An Aligned Set of Habits
We often see a common set of high-performing negotiation habits serve as a leading indicator for expanded share of wallet, better margins, and higher profits. Therefore, before your sales team falls back into its usual rhythm of deal-making as Q3 kicks off, work with your sales managers to create a set of high-performing negotiations goals and the accompanying seller habits that they understand and agree to.
Here are a few considerations to help you and your sales managers start building your set of high-performing negotiation habits:
- Decide ahead of time what red flags from the prospect/customer will trigger a "no deal" response. Craft specific "If…then…" scenarios with the sales managers.
- Commit to an RFP evaluation and response protocol.
- Build consensus on a walk-away price and how to stand behind it as a team, especially at times when "we need the revenue."
- Require sellers to review their negotiation plan ahead of time with their manager.
- Agree on what leading successful negotiations looks like for your sales force and what additional resources might be required. As an example, many sales teams find it helpful to conduct role playing or assign a Devil’s Advocate to work through the potential difficult parts of the upcoming negotiations ahead of time.
The goal isn't to make the sales managers better negotiators per se; the goal is to enable your sales managers to empower your sellers to win more deals. This includes terms that are advantageous and favorable to BOTH sides and at the same time, increase the total contractual value of each deal without sacrificing velocity – or sanity.
Ping us if you would like more ideas on how to enable your sales managers to empower your sellers to lead higher-performing negotiations.
