"CloserQ, what do you like for end of year deal closing strategies?" Amy L
.
Amy, seeing that we are in December, the timing of your question is great.
As with most answers there will be variable strategies based on your specific situation, i.e. the dollar amount of your deals; the number of deals you do in a quarter; the length of your sales cycle; how many buyers are involved in your deals (small business owner, Board, CEO, Purchasing, CFO, CIO, etc.); who signs the deal at your prospect; do your contracts have to go through a legal process; does your company have a standard discounting process; who approves discounts at your company; when is your client/prospects fiscal year end; does your client / prospect have ‘date related motivation’ to sign by the end of the year; is your company public or private; etc. These answers will determine your individual strategy.
First and foremost, start with your basic qualifying question, can your prospects sign a deal this month? If not, don't waste your energy. If your prospect needs board approval and the next board meeting is January, you are not getting a signed deal this quarter.
If your prospect can move forward this quarter, do you have an understanding their procurement process from legal, to purchasing, to signatures. Does your prospect understand their processes? If your prospect is new to the organization, recently promoted, or a middle manager, they may not understand their own internal processes. 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 an invoice and two weeks to cut a check; etc.). If your buyer is the CEO you are more likely to get an end of year deal done vs. a line supervisor.
After understanding their procurement process, do you understand why they are purchasing your product and why they need to purchase this year (if you are selling air conditioning units in Alaska, your buyer most likely doesn’t need one by December 31st)? If your buyer needs to purchase now, don’t worry about incentives, worry about working with the buyer on why he or she needs your solution now, not at the end of the quarter.
Now that you understand your client, I recommended you personalized your year end incentive package. These could be financial incentives to sign by the end of the quarter; 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 fiscal 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 this year you need to have a plan for next quarter.
Lastly, versus waiting until two weeks to go in the quarter, you and/or your organization should 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 year.
Good Closing and let us know your how you finish your year!
Reader Feedback, please click the ‘comments’ below to give ‘Amy’ additional information on 'Closing’ and I want your feedback on my response. Shaun Priest aka CloserQ.
. Amy, seeing that we are in December, the timing of your question is great.
As with most answers there will be variable strategies based on your specific situation, i.e. the dollar amount of your deals; the number of deals you do in a quarter; the length of your sales cycle; how many buyers are involved in your deals (small business owner, Board, CEO, Purchasing, CFO, CIO, etc.); who signs the deal at your prospect; do your contracts have to go through a legal process; does your company have a standard discounting process; who approves discounts at your company; when is your client/prospects fiscal year end; does your client / prospect have ‘date related motivation’ to sign by the end of the year; is your company public or private; etc. These answers will determine your individual strategy.
First and foremost, start with your basic qualifying question, can your prospects sign a deal this month? If not, don't waste your energy. If your prospect needs board approval and the next board meeting is January, you are not getting a signed deal this quarter.
If your prospect can move forward this quarter, do you have an understanding their procurement process from legal, to purchasing, to signatures. Does your prospect understand their processes? If your prospect is new to the organization, recently promoted, or a middle manager, they may not understand their own internal processes. 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 an invoice and two weeks to cut a check; etc.). If your buyer is the CEO you are more likely to get an end of year deal done vs. a line supervisor.
After understanding their procurement process, do you understand why they are purchasing your product and why they need to purchase this year (if you are selling air conditioning units in Alaska, your buyer most likely doesn’t need one by December 31st)? If your buyer needs to purchase now, don’t worry about incentives, worry about working with the buyer on why he or she needs your solution now, not at the end of the quarter.
Now that you understand your client, I recommended you personalized your year end incentive package. These could be financial incentives to sign by the end of the quarter; 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 fiscal 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 this year you need to have a plan for next quarter.
Lastly, versus waiting until two weeks to go in the quarter, you and/or your organization should 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 year.
Good Closing and let us know your how you finish your year!
Reader Feedback, please click the ‘comments’ below to give ‘Amy’ additional information on 'Closing’ and I want your feedback on my response. Shaun Priest aka CloserQ.
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