“Closerq, what do you do for end of quarter incentives to close deals?” JWS
JWS, The timing of you question is great with only ten business days left in Q3. I try to answer submitted questions in the order I receive them, however I like the timing of yours and I have moved yours to the top of the queue. As with tradition, I will ask you several qualifying questions before answering. How large are your deals (what is dollar amount)? How many deals do you do a quarter? How long is your sales cycle? How many people at your prospects are involved in the decisions (Board, CEO, Purchasing, CFO, CIO, etc.)? Who signs the deal at your prospect? Do your contracts have to go through a legal process at your clients? Does your company have a standard discount process? Who approves discounts at your company? When are you prospects fiscal year ends? Is your company publically traded? Are your prospects publically traded? How many days left in the quarter? What is the prospect’s ‘date related motivation’ to sign by the end of the quarter?
The basis of my qualifying questions will determine your individual strategy. The primary reason for my qualifying question is can your prospects sign a deal this month? If your prospect needs board approval and the next board meeting is next quarter, you are not getting a signed deal this quarter. If your prospect can move forward this quarter, do you understanding the procurement process from legal, to purchasing, to signatures. Does your prospect understand their process? If your prospect is new to the organization, recently promoted, or a middle manager, they may not understand the process. Next, assuming you and the prospect understand the process, where are the time hurdles (i.e. legal takes 30 days to turnaround redlines; the signing SVP is on vacation this week; accounts payable needs a bill and two weeks to cut a check; etc.). If your prospect is the CEO you are more likely to get an end of quarter deal done vs. a line supervisor. Only once you have determined you can get a deal done, should you put together a plan
At the beginning/middle of the quarter, I recommend a sales program (Free consulting services, 10% discount on widgets, free seat at training, etc.) for signing by the end of the quarter. At the end of the quarter, I recommended personalized incentives. After understanding their procurement process, do you understand why they are purchasing your product and why they need to purchase this quarter (if you are selling air conditioning units in Alaska, your buyer most likely doesn’t need one by December 31st)? If you buyer needs to purchase now, don’t worry about incentives, worry about reminding the buyer why he or she needs your solution now, not at the end of the quarter. After you understand the why, put together your plan. These could be financial incentives to sign by the end of the quarter: discounts, not discounting but adding additional free products or services, and/or a payment plan that meets their budgetary needs. These can also be non-financial incentives: starting their project sooner rather than later, dedicated project manager, a seat on your customer advisory committee, a press release (some client’s like seeing their names in print), and if you have a good relationship with your prospect, ask them if they can help you out and sign this quarter.
Note, do not underestimate your prospects. First, most prospects understand this is your end of quarter and potentially the end of their quarter or year too. Some will use this to their advantage and wait until the 11th hour before moving forward; others will try to help you; and most who have a good business reason to buy your solution, will work with you in good faith to get the deal done. Second, once you give a discount it is hard to take it back, so if they don’t sign the quarter have a plan for next quarter.
Good Closing. Let us know your how you finish your quarter! Reader Feedback, please click the ‘comments’ below to give ‘JWS’ additional information on 'Closing’ and I want your feedback on my response. Shaun Priest aka CloserQ.
JWS, The timing of you question is great with only ten business days left in Q3. I try to answer submitted questions in the order I receive them, however I like the timing of yours and I have moved yours to the top of the queue. As with tradition, I will ask you several qualifying questions before answering. How large are your deals (what is dollar amount)? How many deals do you do a quarter? How long is your sales cycle? How many people at your prospects are involved in the decisions (Board, CEO, Purchasing, CFO, CIO, etc.)? Who signs the deal at your prospect? Do your contracts have to go through a legal process at your clients? Does your company have a standard discount process? Who approves discounts at your company? When are you prospects fiscal year ends? Is your company publically traded? Are your prospects publically traded? How many days left in the quarter? What is the prospect’s ‘date related motivation’ to sign by the end of the quarter?
The basis of my qualifying questions will determine your individual strategy. The primary reason for my qualifying question is can your prospects sign a deal this month? If your prospect needs board approval and the next board meeting is next quarter, you are not getting a signed deal this quarter. If your prospect can move forward this quarter, do you understanding the procurement process from legal, to purchasing, to signatures. Does your prospect understand their process? If your prospect is new to the organization, recently promoted, or a middle manager, they may not understand the process. Next, assuming you and the prospect understand the process, where are the time hurdles (i.e. legal takes 30 days to turnaround redlines; the signing SVP is on vacation this week; accounts payable needs a bill and two weeks to cut a check; etc.). If your prospect is the CEO you are more likely to get an end of quarter deal done vs. a line supervisor. Only once you have determined you can get a deal done, should you put together a plan
At the beginning/middle of the quarter, I recommend a sales program (Free consulting services, 10% discount on widgets, free seat at training, etc.) for signing by the end of the quarter. At the end of the quarter, I recommended personalized incentives. After understanding their procurement process, do you understand why they are purchasing your product and why they need to purchase this quarter (if you are selling air conditioning units in Alaska, your buyer most likely doesn’t need one by December 31st)? If you buyer needs to purchase now, don’t worry about incentives, worry about reminding the buyer why he or she needs your solution now, not at the end of the quarter. After you understand the why, put together your plan. These could be financial incentives to sign by the end of the quarter: discounts, not discounting but adding additional free products or services, and/or a payment plan that meets their budgetary needs. These can also be non-financial incentives: starting their project sooner rather than later, dedicated project manager, a seat on your customer advisory committee, a press release (some client’s like seeing their names in print), and if you have a good relationship with your prospect, ask them if they can help you out and sign this quarter.
Note, do not underestimate your prospects. First, most prospects understand this is your end of quarter and potentially the end of their quarter or year too. Some will use this to their advantage and wait until the 11th hour before moving forward; others will try to help you; and most who have a good business reason to buy your solution, will work with you in good faith to get the deal done. Second, once you give a discount it is hard to take it back, so if they don’t sign the quarter have a plan for next quarter.
Good Closing. Let us know your how you finish your quarter! Reader Feedback, please click the ‘comments’ below to give ‘JWS’ additional information on 'Closing’ and I want your feedback on my response. Shaun Priest aka CloserQ.
Comments
Shaun has given you many things to think about, he has however left out one important motivation factor.
I'm willing to bet that when you leave for your day's work you don't know where you are going. You must plan a month ahead,a week ahead and each week day by day.
A ship leaving port without a destination will flounder forever. Do you know your port of call every day.
Set goals, always without fail make one extra sales call a day, tha is 200 plus extra calls a day.
"Plan your work and work your plan." A great weight will be lifted off of your shoulders.
I have been on the road for 40 years, rejection is the price you must pay to be in the greatest profession that offers unlimited income.
Go find a apple tree sit down and ask yourself do i want to be part of a community that can proudly say "noting happens until something is sold" and i'm part of that team. Every rejection or No is that much closer to a YES. Good luck.
Yours in selling,
W. Ford