The Art of Negotiating with a Customer you don’t want to Lose

Here are five useful strategies businesses can use while negotiating with a customer so as to arrive at a mutually beneficial deal:

• Hear them Out

When under attack by the customer, one of the best things you could do is listen. Gather as much information as you can from your customer as this will give you invaluable insights that will help you devise a more persuasive argument that will help steer the negotiation in your favour. 

• Keep the Company’s Best Interests in Mind

Effective salespeople have a thorough understanding of the buyer’s wants and needs. However, in order to effectively negotiate with a customer, salespeople require a dual focus and must therefore have a thorough understanding of not just the customers’ needs but the company’s needs as well. The goal is to best satisfy the needs of both sides; the customer and the company. 

• Outline Important Points of Discussion

Sometimes negotiations with customers can get confusing. If you fail to keep track of all the problems and agreements made, customers may get frustrated and feel like there’s a lack of progress being made. This will make it harder to convince them of your stance. This is why it is important to summarize all that has been accomplished and also outline the points that need to be discussed. Short but frequent recaps will make customers feel heard and provide the discussion with maintained momentum. 

• Have a Walkaway in Mind and List the Number of Variables that can be Addressed During the Negotiation

Whenever a negotiation is taking place, it is essential to have a walkaway in mind. A walkaway can be defined as the terms, price, deliverables, or a combination of the three that represents the least you will accept in the negotiation. Without a walkway, the negotiation may go drastically against your favour and may cause you to make a deal that will negatively affect your company. 

It is also important to have a wide number of variables as this will give you more flexibility while providing the customer with more options, making it more likely that you will close the deal. 

• Only Commit to a Solution that Benefits both Parties 

You are less likely to close a deal if the customer feels as though you aren’t budging from your current position. A more effective approach would be to listen to the customers proposal from which you can draw a counterproposal. This ensures that both parties are coming together to shape a deal that is mutually beneficial.