You’ve practiced your pitch, you believe in what you’re selling, and you found a client with a need. All the stars are aligning for the perfect sale.
So why haven’t they signed already!?!?
Most likely a competitor snuck in and started laying landmines. But it’s ok, we have you covered. Follow these 6 steps to win your next competitive bid.
Easy Tips to Close More Competitive Bids
1. Be Authentic.
People want to buy from someone they trust, and trust comes from a personal relationship. Studies show that 90% of people trust product or service recommendations from people they know, versus only 33% who trust messaging from brands.
It’s critical that as a sales rep you build personal relationships so your prospects and clients can connect with you as an individual, and avoid seeing you as the “vendor” instead.
2. Know Who You’re Up Against.
Competitive bids are great because you know who you are being compared to. Figure out what criteria they are using to make their decision, then position yourself against your known quantities.
Instead of being about features, or price, or strategy, it’s becomes about how you compare to them through the lens of their decision maker.
It’s important to not only be able to sell your own product, but to explain what makes it better. Knowing your competition is a critical part of this equation.
Incorporating a competitive strategy into your routine could even improve your performance by up to 39%.
Make sure to read up on what else is out there so you know where you stand in the marketplace, and where to focus your messaging.
3. Deal with the Decision Maker.
One way to close more deals is to stop wasting time dealing with non-decision makers. This is especially true for later stage deals.
There’s nothing like putting in the hours making calls, holding meetings and following up with someone who can’t make the call anyways.
Deals can’t be marked as opportunity until you are talking to the decision maker. No decision maker, no deal.
Make sure you’re identifying one, or multiple decision makers that you can get some face-time with to start building deeper relationships with in the account.
We say multiple because it’s not as simple as it used to be. Studies now show that in firm with 100-500 employees, an average seven people are involved in most buying decisions.
With more complex decision making processes, it’s critical to get an understanding of the organizational structure within the accounts you’re prospecting.
4. Speak to Value and ROI.
It should go without saying that you should have an exceptional understanding of what you’re selling before trying to close a deal. But surprisingly, 42% of sales reps feel unprepared when making calls.
Make sure you can clearly explain value to your prospects. Talking through pros, cons, and differentiators should be second nature.
And being able to back it up with hard data is even better. Have a few case studies on hand that break down what you’re saying into actual numbers.
Being able to show a clear path to a strong return on investment is a sure way to differentiate yourself in later stages of a deal and improve your close rate.
5. Address Objections.
Your potential client will likely have some concerns or objections once you get to later stages in the deal.
Practice your active listening skills to not only hear their surface level objections, but to hear at a deeper level too. If you can address the root cause of their concerns instead of just the presenting problems, you’ll connect and comfort them at a different level.
Instead of looking at objections as a negative, look at them as an opportunity to get to know your client better.
Understanding their worries helps you peel back the onion layers to discovering what really matters to them. It also helps you decide which messaging they may be most responsive too.
Not only will addressing their objections help build that relationship and trust, it will help lock in the sale over competitors who are just focused on price.
6. Don’t Give Up.
Studies show that 80% of prospects say “no” four times before they say “yes” and that 92% of sales reps give up after hearing “no” four times. See the opportunity we’re talking about here?
A little persistence can go a long way in sales. By simply following up consistently on prospects you could greatly increase your close rate.