Sales Negotiation Training: Transforming Your Approach to Closing Deals

In a perfect world, every prospect would accept your first offer as written. But every B2B seller in the world knows that’s not reality.

Instead, sales negotiations often happen until the buyer and seller reach a mutually beneficial agreement. B2B sellers must master the right sales skills to expertly navigate these negotiations and start closing more deals.

Some people find sales negotiations uncomfortable. Fortunately, with the right sales negotiation training, every seller on your team can confidently conquer any negotiation that comes their way.

In this post, we’ll explore how sales negotiation training can supercharge your team’s performance. We’ll answer questions including:

  • What is sales negotiation?
  • Why does sales negotiation training matter?
  • What skills do my sellers need to master to prepare for their next sales negotiation?
  • What are some winning sales negotiation training techniques that’ll equip my sellers for success?

What is sales negotiation?

Before delving into the key sales negotiation skills your reps must master, let’s first take a step back to answer the question, “What is sales negotiation?”

Sales negotiation is a term for the back-and-forth discussions between a buyer and a seller as they work to reach a mutually beneficial agreement.

Buyers and sellers may negotiate on several different factors, including (but not limited to):

  • Price: How much will the customer pay for the solution, and when will they expect to pay (for example, net 30 or 60).
  • Timing: For example, when a solution will be deployed.
  • Service and support: What kind of service and support can the customer expect for the price? For example, what will the service level agreement (SLA) be for service requests?
  • Customization: Buyers may want or need more customization than the solution offers out of the box.
  • Contact terms: For example, is the contract for one year or multiple years? Is there a termination clause?
  • Legal and compliance matters: Different industries will have different legal and compliance matters.

What is the outcome of sales negotiation?

Ideally, sales negotiation results in an agreement that reflects both parties’ needs and goals. In other words, both the buyer and the seller walk away feeling confident about the agreement.

Of course, sales negotiations don’t always end that way. In some cases, the buyer and seller never reach an agreement and eventually part ways.

How long should the sales negotiation process take?
You may be wondering how long the B2B sales negotiation process should take.

There’s no easy answer. In some cases, sales negotiations can be completed in a single discussion. In other instances, successful sales negotiations can require several discussions across weeks or months.

The length of sales negotiations depends on a number of different factors, including:

  • Company size
  • Deal size
  • Deal complexity
  • Industry
  • Number of people on the purchasing committee
  • Negotiation style and tactics of both parties

Generally, the simpler the deal, the shorter the sales negotiation process.

For example, suppose a sales rep sells a simple, straightforward solution to a smaller business with just two stakeholders. The sales negotiation process might take two or less weeks in that case. Suppose another rep is selling a solution to an enterprise organization with a large buying committee that requires a high level of customization. In that case, the process can take months or even longer.

When it comes to the length of sales negotiations, it’s important to strike the right balance. Of course, you ideally want the sales negotiation process to be as quick as possible. But if you rush through negotiations, you may lose your prospect’s trust – and their business.

Why sales negotiation training matters

Now we’re clear on what sales negotiation is. But why should sales negotiation training be a priority for revenue organizations?

There are several reasons why sales negotiation training matters. Let’s look at some of the top benefits of delivering training that ensures sellers can master the sales negotiation skills that matter most.

Benefit #1: Maximize revenue

Every organization wants to maximize revenue. But sellers may cave too easily if they haven’t mastered sales negotiation skills. It’ll cut profit margins if they cave too much in price.

By mastering the right sales skills, a seller can ensure that a buyer is confident that their needs are being met while maintaining healthy profit margins.

Benefit #2: Close more winnable deals

All too often, a deal progresses through the sales cycle, but then things go south during the negotiation process, and the deal is lost.

With the right sales negotiation skills, sellers can start closing more winnable deals – and your revenue will continue to grow.

Benefit #3: Build trust and foster long-term relationships

Throughout the sales negotiation process, sellers can build rapport with their buyers. If a seller demonstrates their commitment to arriving at a mutually beneficial agreement that’ll solve the buyer’s challenges, they’ll earn the buyer’s trust.

This trust can build the foundation for a long-term relationship, leading to higher retention and lower churn. In addition, if a buyer trusts you, they’re more likely to refer your business to others who may benefit from your solutions.

Benefit #4: Minimize misunderstanding

When misunderstandings happen, it can stall deals – or even kill them altogether.
Clear communication during the sales negotiation process ensures everyone is on the same page. This can reduce the likelihood of misunderstandings.

Benefit #5: Stand out from the competition

Many companies promise to solve any challenge a buyer faces. The sales negotiation process allows you to stand out from the competition.

During negotiations, you can demonstrate your willingness to work with the prospect to meet their needs. In addition, the sales negotiation process allows you to articulate the value your solution can deliver, which can set you apart from the competition.

The top sales negotiation skills every seller must master

Every sales rep must be ready and able to navigate sales negotiations. For that to happen, a seller must master certain sales negotiation skills.

The sales negotiation skills a seller needs depend on many factors, including company size, industry, sale complexity, and the size of the buying committee. However, every seller must learn certain skills to be successful.

Sales negotiation skill #1: Preparation

Preparation is key in sales negotiations. If you’re unprepared, the buyer may feel you’re wasting their time.

Be sure to do your research and properly prepare for any discussions. For example, you might use conversation intelligence tools and artificial intelligence to quickly surface key themes from a previous discussion. You can use this information to properly prepare for the next stage of sales negotiations.

Sales negotiation skill #2: Objection handling

Sellers are bound to face objections during the sales negotiation process. They must anticipate those objections – and be properly equipped to handle them.

Consider developing enablement resources that help sellers anticipate common objections. For example, your sales battle cards can include objections that often arise when sellers face specific competitors.

Sales negotiation skill #3: Active listening

No prospect wants to feel like they’re being steamrolled during a sales negotiation. So be sure your sellers have mastered the skill of active listening.

Sellers should ensure they’re truly present and paying attention during all negotiation discussions. Conversation intelligence tools can record and analyze calls so sellers can pay attention to the discussion at hand rather than getting distracted by taking notes. In addition, sellers should ask questions and summarize the prospect’s answers to ensure clarity.

mt-platform-conversation-intelligence-screen

Sales negotiation skill #4: Value articulation

Price is one of the most common elements buyers bring up during the sales negotiation process. Perhaps they want you to reduce the price to better fit their budget. Or, they have questions about why your solution is priced higher than competitors.

Sure, you may be willing and able to lower your price. But it’s critical to clearly articulate the value your solution delivers. When you can communicate ROI, your buyers may be willing to spend more than they initially intended.

For example, say your prospect is pushing back on price during sales negotiations. However, you can communicate how your solution can save them x% more time or money than their existing solution. Because of the value of your solution, they’re more likely to sign off on the higher price.

Sales negotiation skill #5: Understanding when to walk away

Not all sales negotiations are going to end in a closed deal. And if sellers don’t have the right sales negotiation skills, they may be wasting unnecessary time on a deal that’ll never close.

It is important to train your sellers to know when to persist and when to walk away from a deal. Though disappointing, walking away from a deal can free up time for more valuable opportunities.

Sales negotiation training strategies for your team

B2B sales negotiation training – when it’s done well – can help your sellers master the skills they need to be confident, successful negotiators. Research tells us that top-performing negotiators are 12.5 times more likely than the rest to feel satisfied with the outcomes of their negotiations.

Top-performing negotiators are

more likely to feel satisfied with negotiation outcomes
0 times

So, what does effective sales negotiation training look like? It varies from organization to organization. However, certain training strategies can be deployed at just about any B2B revenue organization.

#1 Define the sales negotiation skills that matter most in your organization

To be successful negotiators, sellers must master certain sales negotiation strategies and skills. These skills will vary from organization to organization.

As a first step, sure to define the sales negotiation skills the sellers at your organization need to master. A good way to identify must-have sales negotiation skills is to determine your top sellers’ skills. Then, you can incorporate these sales negotiation skills into your ideal rep profiles (IRP).

Ideal rep profile competencies

When (and only when) you’ve defined the sales negotiation skills your sellers need, you can start building programs to help them develop those skills.

#2 Deliver personalized sales negotiation training

Every seller is unique. Delivering one-size-fits-all sales negotiation training isn’t the best approach.

Instead, measure each seller against the IRP for their role. That way, sales managers can identify their strengths and weaknesses in sales negotiation. Once you have those insights, you can deliver targeted sales enablement training and coaching to help them bolster their weaker sales negotiation skills.

#3 Lean into bite-sized sales enablement

When you hear the phrase “sales negotiation training,” you might think of a classroom-style training led by a sales trainer or sales enablement professional. This type of training has a role to play. But often, in-person training isn’t practical. Furthermore, it’s not enough to drive behavior change and performance improvement.

Be sure to incorporate bite-sized learning and reinforcement into your sales negotiation training programs. That way, sellers can engage with sales negotiation training anytime, anywhere. Furthermore, periodic reinforcement will help ensure learning sticks.

#4 Provide practice opportunities

Just because a seller has aced an assessment on sales negotiation strategies doesn’t necessarily mean they know how to apply these strategies. So be sure your B2B sales negotiation training program includes opportunities for your sellers to practice what they’ve learned.

Role-plays are a great way for sellers to practice their sales negotiation strategies before entering the field. With AI-powered role-plays, sellers can practice their skills with a realistic, dynamic bot. AI delivers feedback throughout the role-play experience so sellers can sharpen their sales negotiation skills in real time – without waiting for a manager to provide feedback.

AI-Roleplay

#5 Deliver coaching

Sales coaching can help sellers master important negotiation skills. However, it must be personalized for it to be effective.

Sales managers can use the IRP to determine a seller’s strengths and weaknesses in sales negotiation. They can also leverage conversation intelligence tools to gain insight into how sellers navigate negotiations on calls. All of these insights enable sales leadership to deliver targeted sales coaching that addresses each seller’s needs.

#6 Tap into peer-to-peer learning

Learning doesn’t always have to be facilitated by a trainer or sales manager. Look for opportunities to incorporate peer-to-peer learning into your sales negotiation training programs.

For example, top sellers can share their tips and best practices for more effective sales negotiations. Or, sellers can submit recorded role-plays focused on sales negotiation strategies and get feedback from their peers.

#7 Provide recognition for mastering sales negotiation skills

Everyone likes to be recognized for the work they put in. Be sure to recognize your team members who are improving their sales negotiation skills and putting those skills to work in the field.

Master the sales negotiation skills that matter with Mindtickle

Sales negotiation skills aren’t nice to have. They’re a must-have for any seller who expects to close more deals and meet quota quarter after quarter.

But not all sellers are born negotiators. Fortunately, B2B sales negotiation skills can be taught.

With Mindtickle’s all-in-one revenue enablement platform, you can create and deliver targeted training, reinforcement, AI role-plays, and coaching that ensure all sellers have the right skills to navigate sales negotiations and close more deals expertly.

 

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