The end of the month and the quarter can be nothing compared to the end of the year when you’re dealing with sales people, quotas, commissions and bonuses. The rat race is always a grind, but the end of the year can be especially maddening. Why? A number of reasons, but pride and ego can be two of them. Too often sales teams blitz at year end to hit a number and it can hurt more than it helps. Did they cut corners just to close the deal? Did they over promise and under deliver on service? Did they set the bar too high for the following year as leadership is working on comp plans or quotas? Did the client move up a decision that they were not ready for and will now be a challenge to service? Did the discount offered to close the deal jeopardize your margins?
Frank Visgatis is president and chief operating officer of CustomerCentric Systems in Sutton, Mass. His company provides sales process consulting and training. He wrote an article for Entrepreneur talking about the pitfalls of the year end blitz and his advice: take a realistic view for those real sales opportunities that can potentially be closed by the year’s end. He has 3 techniques to consider when approaching year end deals.
1. Ask the client with highest amount in play if a transaction can close by the end of the year. If so, map out with the buyer the necessary steps and estimated time for completion. If this is a new account, be aware that delays with contracts and procurement can cause order dates to slip.
Also understand that buyers who close contracts sooner than they had planned are likely to expect something in return. Discounting may be necessary and that would reduce the revenue toward achieving the quota.
2. For each sales opportunity that is needs to be closed, try to establish — with the buyer’s help — the potential benefit or savings that a product offering can help the buyer realize. Sellers are always in a rush to receive orders. Suggest the buyer consider the cost of delaying a purchase decision. Putting things in context of monthly savings can increase a buyer’s sense of urgency.
3. Try to assess what impact moving up decisions might have. Have customers, rather than prospects, accelerate buying decisions. If there’s a risk of alienating buyers or ultimately scaring them off, you may want to consider letting those sales cycles play out in a more normal fashion.
Look, I get it, sales has to have goals. I had an old VP that was famous for saying “What get’s measured get’s improved”. But more important, he used to say “Don’t sell them something they don’t need”. Make sure your client’s timeline is not being compromised and you’re not compromising your integrity. A sale in 2017 might be better in the long run than shoving one more order through in December.
To read Frank’s original article check out the link here.
