We all know that if we don’t secure power, we’ll not get the deal. But in deal reviews, time after time, not having power is a significant reason for no-deal and lost deal outcomes. So here’s a simple way to make sure the deals you want to close this quarter have the power to do so. This 5-minute rapid lesson looks at what power is in a deal, why we need it, how we access power and get buy-in, and what you can do to incorporate this into your deals.
The number one reason for losing deals is not having access to, or getting buy-in from power. Week no.8 in the quarter is a great time to check power in your deals.
This lesson looks at what power is in a deal, why we need it, how we access power and get buy-in, and what you can do to incorporate this into your deals.
We all know that if we don’t secure power, we’ll not get the deal. But in deal reviews, time after time, not having power is a significant reason for no-deal and lost deal outcomes. So here’s a simple way to make sure the deals you want to close this quarter have the power to do so.
The ABC Check for Power is three questions to challenge deals: Do you really have access to power? Have they really bought into this? Have you communicated unique value?
There are two ways to access power. Directly and indirectly. If you’re making the direct approach, you need to make sure you are already really clear on the pain and value. Most salespeople need to find this information out first, which leads to an indirect approach to access power, usually through people who are more accessible to them. For example, those already in their network can be used as a coach, someone who knows the organization and can help build a pathway to power.
Another way is to build a Champion, personally invested and selling on your behalf. One of the champion checks is, are they giving you access to power?
In deal reviews, a problem we frequently see is that the salesperson does not access power through the champion. The first step to resolving this is being really clear with the seller and the champion on what power actually is. So can you define it?
People in power have three things:
1) They have control over outcomes - decision-making authority in this project. This begs the question, is this a single or a collective decision? The trend is towards collaborative decision-making. So it’s essential to think of power, not as one person. It could be several people who hold power.
2)They have control and influence over people – that could be a title but equally could be expertise and knowledge.
3)They have control over resources - budget setting and holding budget.
Use these three checks to ensure you or your champion actually have access to power in your deals. Now we have access; we now need to make sure we have buy-in.
Again when checking buy-in, we need clarity about what that means, and in deals, it means three things:
1)Risk – there’s no risk personally and politically of pursuing this. If there is risk, the deal will default to the do-nothing option. This is part of the Why anything?
2)We have aligned goals, both strategic and personal. And if those goals are not achieved, it results in time-based pain. If the goals are achieved, this shows how much value you’re creating and known as the Why now?
3)We have aligned decision criteria – when they’ve made a minimum specification for a solution, you tick more boxes than the alternatives.
We’ve got access and buy-in, but they still need to understand the differential value you bring, and they will want to communicate that across the business.
According to Sirius Decisions, the inability to communicate & quantify unique value #1 reason sales reps fail to make quota. This stems from not creating a business case.
According to IDC, despite a business case being critical for 95% of complex purchases, 66% of buyers don’t have the knowledge or tools needed to do an ROI, so relying on the prospect to develop the business case can lead to significant delays or a “no decision.” 81% of customers expect salespeople to do this for them. So don’t just give them the investment proposal; provide them with the return! If you’re not sure how to do that, take the Tribe session on ROI.
Create a story of the value being created and how you came to help them through that journey. The person who can sign this off will want to tell other of the value being created. This is your chance to make it your story.
To check for power in your deal, firstly, do you have access to power? That’s someone with decision authority, control, and influence over people and budget. Do you have buy-in? There’s no risk to them, they have aligned goals with time-based pain and aligned decision criteria. And have you enabled them to communicate the value by giving a return and investment, wrapped up in a story.
It’s time to capitalize on this learning, download and use the Coaching Card on Simu.ly to coach yourself and apply this in your next deal.