WEEK 49

CLOSE A SALE THE RIGHT WAY: SIX FOLLOW-UP STEPS

We all lose deals. I hate it. Sometimes we lose when the customer says “No,” and sometimes we lose after a contract is already signed but the deal falls apart. I work so hard to make sales happen that I just hate it when I lose one. Still, it happens, so we have to be prepared. Here’s my checklist of things to do near the end of a closing that starts to go south or eventually slips through your fingers.

1. SAVE IT!

If you feel that a deal is slipping through your fingers, try to salvage it—somehow. You’d be surprised at how many salespeople just give up on a deal when they encounter a few snags. They’ll consider it lost and move on to the next one. Not me. I believe that 75 percent of “lost” sales can be saved. It takes more work, but a deal saved is a sale made.

Let me give you an example. I was showing a home for sale, and the buyers made an offer contingent upon an inspection. This is standard practice. Well, the inspector found a few inches of standing water in the crawl space in the basement. The buyers wanted to pull out of the deal. But I really wanted to save this sale, so I dug into the situation. I learned from the inspector that the sump pump was defective. The pump wasn’t doing its job, and that’s why the water had begun to collect. It would cost $250 to fix the pump. I got the seller to pay for the new pump and then I brought my buyers back for another look. They were satisfied that the problem had been fixed. Result: Another sale!

Many potentially “lost” deals can be saved in this way. Never give up on a deal until you’ve done everything in your power to save it.

2. WHEN YOU LOSE A SALE, FIND OUT WHY

Okay, so you’ve hit one of those walls where you just cannot get the sale you’ve worked on for so long. When this happens, I make a practice of asking the customers why they chose to go in another direction. (Mind you now, I’m not talking about casual shoppers—I’m talking about losing customers who were qualified and ready to buy.) Often, they’ll tell me up front. They’ll say I was too aggressive, or that they promised a family member they’d use another salesperson, or some other reason. And I always say, “Thanks, that’s helpful information, we’re always trying to improve.”

There are two reasons that I bother to ask. First, the information often is helpful. If I’m coming across as too aggressive too often, maybe I’ll tone down my presentation. We all need feedback, and what better feedback than from our customers? But, second, I also use the information to know how to approach those same customers the next time. If, for example, they used another salesperson only because a family member suggested it, that sale has a good chance of not working out because the customers are choosing a salesperson for the wrong reason. That’s good to know when I approach them again.

3. STAY IN TOUCH WITH THEM

A lot of customers who go elsewhere come to regret it. Maybe the other salesperson your customer chose over-promised and under-delivered. Quite often, I’ve found that a customer who gives me an emphatic no is ready to do business with me a month later.

Let me tell you about my friend Jonathan Dwoskin. Jonathan was a top account executive with U.S. Web, one of the largest and best of the Internet consulting firms. I knew the quality of their work because the company was the first to design my web site at RalphRoberts.com. At the time, Jonathan was chasing a deal with a major customer who eventually went with another web designer. The customer had wanted to hire a firm that could handle its public relations (PR) as well as its Internet site. Jonathan said U.S. Web would be happy to bring in a good PR firm as part of its package, but didn’t keep that function in-house because U.S. Web wants to focus only on what it does best. Well, the customer went with another Web consultant that promised everything.

“After I lost it, I called her every month,” Jonathan says of this customer. “I would ask, ‘Are things going okay? Are you being treated like you want?’ I continually built that relationship.” He never gave up, but always let the customer know in a quiet, professional way that U.S. Web stood ready to serve it.

Well, just before the customer’s web site was to debut—and it was the focus of a huge nationwide marketing campaign that had already been printed—the customer called Jonathan in a panic. The first provider had been unable to deliver. The customer was 10 days shy of launching the campaign and had to meet deadline. Could Jonathan’s team take over and finish on time?

Well, they did. Jonathan estimates that this one customer resulted in about a half-million dollars’ worth of business over time. U.S. Web got the deal in the end probably for a lot of reasons and not only because Jonathan stayed in touch after he “lost” the first sale. But surely it helped that Jonathan was smart enough to know that a deal isn’t lost until your competitor has delivered the goods.

4. THANK THEM FOR THEIR TIME

This is simple courtesy, and it’s always good business. You can thank them verbally, send them a note, or even send them flowers or a gift. Consider it part of your marketing budget. It will certainly impress those potential customers with your desire to have them as clients.

5. ASK FOR A REFERRAL

A lot of customers may be impressed with your knowledge and professionalism even if they don’t sign a contract. They may be willing to refer others to you even though they themselves choose someone else. Ask!

6. MOVE ON

When you really lose a sale, don’t dwell on the failure. Move on! You’re a professional, and you know that losses are just part of the game. Your next sale may be just around the corner.

 

Ralph’s Rule: Failure is part of our business, so you’ll need a game plan for dealing with it. Once you have your plan in place, review it frequently. You’ll find that losing a deal isn’t the terrible setback you once thought it was.