11 Negotiation Skills for B2B Sales Success

Negotiation skills are the most valuable skill set in a B2B sales professional toolkit. In fact, it is a main skill of top-performing sales managers, according to RAIN Group Center for Sales Research. It’s an incredibly useful skill as selling has become more difficult, according to 69% of sales professionals (Salesforce).

With sales cycles getting longer each year due to increased budgetary scrutiny and a growing number of stakeholders, salespeople are faced with a challenging market, mastering negotiation skills can boost your B2B sales success.

Being an ace negotiator can lead to better deals, higher conversion rates, higher customer satisfaction, stronger relationships with clients, shorter sales cycles, and give you a competitive edge.

Here are 11 negotiation skills for your B2B sales success:

 

1. Analyze and Cultivate BATNA

 

 “Before anything else, preparation is the key to success.” – Alexander Graham Bell.

The most powerful thing you can have when negotiating in a B2B setting is the ability and willingness to walk away and accept another deal. This underscores the value of identifying your best alternative to a negotiated agreement (BATNA) and optimizing it.

Additionally, you need to understand your competitors’ offerings to form a good understanding of your prospect’s BATNA as well. You need to know when a prospect might walk away from the discussion and what might tempt them to keep talking.

When you arrive at the negotiating table knowing your prospect’s BATNA and yours in equal measure, you set yourself up with good leverage and the ability to recognize a good deal.

 

2. Clearly Pre-define Concessions

 

Cost is 12 times more frequently cited than quality as the metric of a successful B2B sales negotiation, according to RAIN Group Center for Sales Research. Knowing your limits on discounts and add-ons you can throw into a deal to sweeten the pot is one way to ensure that you reach a mutually valuable deal.

You don’t want to end up with a 30% discount in the heat of the moment only to realize later that it was a bad deal that you should not have agreed to in the first place.

 

3. Listen Actively

 

B2B networking is a space filled with smooth talkers. It’s what salespeople excel at, after all. However, Gong Labs found that the top sales performers have a talk-to-listen ratio of 43:57, meaning they do more listening than talking.

Not only that, but they also focused less on the technical features of their products and services. Instead, they managed to get their clients to share their problems and challenges. This creates a conversation space where the other party feels heard.

Read More: 8 Social Selling Tips for Building Trust

 

4. Channel Empathy

 

On that note,it’s crucial to approach the conversation with empathy as that can lead to better understanding and a stronger professional relationship that will pay off in the long run.

Salesforce’s State of the Connected Customer report found that 86% of B2B customers are more likely to make a deal if vendors clearly understand their goals. Unfortunately, 59% feel that most sales representatives do not take the time to understand them or their challenges.

A lead generation service like ME Matchmaking would be incredibly helpful here as it would give you an updated overview of your target audience’s pain points and investment focus areas before your 1-to-1 meetings, ensuring that you are prepared and ready to learn more.

 

5. Lead, but Speak Second

 

According to RAIN Group Center for Sales Research, 71% of top-performing salespeople make sure to lead the B2B sales negotiation process.

Once a pitch is delivered and a deal is on the table for negotiation, let the prospect start and show a bit more of their position. Though it is tempting to immediately jump in with an enticing discount or offer for the sake of being accommodating, you do not want to appear over eager. Speaking first doesn’t necessarily mean leading the conversation.

Silence doesn’t have to be awkward here. Losing your nerve to fill the silence with chatter leads to you conceding more than you planned.

 

6. Find Smart Tradeoffs

 

Sometimes, you may get stuck on a single issue such as price. When this happens, you’ll want to steer clear of ranges. After all, if presented with a 15% to 20% discount, no one ever volunteers to take the lower amount.

Instead, try to identify an element in the offer that your prospect seems to value more than you do, and propose a concession for it in exchange for a concession from them on the element that you value more highly.

Remember, you want tradeoffs, not giveaways. 46% of top-performing sellers ensure to trade for value instead of caving into price pressures.

 

7. Avoid the Anchoring Bias

 

Though this may seem a little contradictory to the point above on speaking second, when it comes to price, you’ll want to make sure you make the first offer. This is easily achieved by making that clear during your initial pitch, just before the negotiation begins.

Research shows that the first number quoted in a negotiation significantly influences the following conversation. Being the first to quote the anchoring number ensures that you can steer the negotiations in your preferred direction.

However, if the prospect anchors first, hold fast to your BATNA and revisit them when necessary.

 

8. Present Multiple Equivalent Offers Simultaneously (MESOs)

 

One negotiation skill that is often used is presenting multiple offers at the same time. That gives you multiple starting points. If a prospect rejects all of them, you can ask them for the one they like best and go from there. You can improve your offer or work together with the prospect to come up with a mutually beneficial agreement.

Presenting multiple offers simultaneously decreases the chance of hitting a roadblock. It also inspires creative solutions and builds a good foundation, as it shows your client that you’re willing to work together to reach a win-win situation.

 

9. Handle Objections Strategically

 

Invesp found that 60% of customers say “no” four times before saying “yes”. Additionally, 80% of sales professionals need at least five follow-up calls to close but 44% give up after just one. A whopping 48% don’t even try. 

Being able to manage and overcome sales objections is an essential skill for any sales professional. It can seem like a hassle, but it’s an excellent opportunity to dig deeper into your prospects’ needs and discover novel ways of demonstrating the value of your product/service.

“Treat objections as requests for further information.” – Brian Tracy, author and sales expert.

Active listening and empathy will come in handy here to help you first understand the objections and the best way to strategically overcome them. Find out the root of the objection and find an amenable way forward.

Read More: How to Handle & Turn Around Sales Objections

 

10. Plan for Implementation

 

Part of successful negotiation in B2B is also planning for the implementation of a contract. This is to ensure that all parties are getting what they want within the agreed timeframe, which ultimately leads to a healthy and resilient business relationship.

Coming to the negotiation table with a plan for the next steps shows that you are reliable, efficient, and responsible.

 

11. Be Ready to Walk Away

 

Knowing when to walk away and being ready to do so are critical to successful B2B sales negotiations. It shows confidence and conviction in your offer while also boosting your position. If the deal is veering off your pre-defined acceptable parameters, politely walk away from the negotiation.

Prospects who only want a deal that is significantly discounted or radically amended will likely be problematic later on. They also likely do not see the value in your offering if they’re asking for multiple changes. You’ll be saving yourself and your organization a lot of time, money, and stress by walking away.

Having said that, it’s important to walk away deftly and leave the door open for potential future discussions. Sometimes, just the threat of a deal being pulled off the table is enough to convince a prospect to make a better deal. However, if they are not ready to call you back in, you must be ready to fully exit the conversation.