Sales and negotiation: Techniques and strategies

Businesses rely on sales to thrive.

Regardless of how extraordinary your product or service is, you need an effective sales and negotiation strategy to drive revenue and foster relationships.

Sales techniques involve understanding customer needs and offering solutions that meet these needs, while negotiation focuses on finding mutually beneficial agreements, balancing interests, and managing compromises between different parties. Mastering sales and negotiation tactics can lead to higher customer satisfaction, repeat business, and referrals–all of which will grow your company’s reputation.¹

These skills are transferable across industries and roles, improving your career flexibility and opportunities for advancement. With an eye for sales, MBA holders are valuable professional assets in every industry.¹

This article explores business negotiation techniques and strategies you can apply to any sales situation.

The psychologist Robert Cialdini defined the six fundamental principles of persuasion as:

• Reciprocity²
• Consistency²
• Social proof²
• Authority²
• Liking²
• Scarcity²

These principles tap into deep-seated human instincts and social behaviors to generate positive responses to sales pitches and marketing messages.

• Reciprocity is part of our natural desire to return favors. If you’re nice to someone, they’ll be nice to you. If you give someone something, they’ll feel a desire to return the favor.²
• Consistency exploits the need to align your actions with your values and previous commitments. If someone tells you their values and you align your product with those values, they’re more likely to make a purchase.²
• Social proof amplifies the power of the crowd. If you can demonstrate that other people like and use your product or service, you’ll attract new customers.²
• Authority, or demonstrating your grasp of the facts will help convince buyers to trust you. People tend to comply with those in positions of power or expertise.²
• Liking is the concept that people will be persuaded by people they like or find attractive.
• Scarcity plays on people’s fear of missing out, making limited-time offers or exclusive products more appealing.²

Cognitive biases such as the mere-exposure effect and compromise effect can also influence decision-making, steering people toward choices that affirm their preexisting beliefs.³

By definition, the mere-exposure effect is a psychological phenomenon where people tend to develop a preference for things they are exposed to repeatedly, without any reinforcement or association with positive attributes. In simpler terms, the more we are exposed to something, the more we tend to like it, even if we're not consciously aware of this preference.

In practice, the mere-exposure effect means that people are more likely to buy your product or service the more often they’re exposed to it. The compromise effect occurs when people choose a mid-priced version instead of the cheapest or most expensive option.

Understanding these biases and principles lets you craft strategies that resonate deeply with potential customers, subtly guiding their decision-making process toward a desired outcome.

Building rapport with customers creates trust, loyalty, and long-term relationships, which are necessary for sales and business growth.

You need to create a connection that goes beyond transactional interactions and focuses on understanding and addressing your client's needs, preferences, and concerns with genuine interest and empathy.

To build rapport with customers, you need to make a personal connection.

You can start by researching their interests and backgrounds through platforms like LinkedIn and look for commonalities that can serve as conversation starters. Engaging on a personal level puts you on shared ground, whether it’s through a discussion about their hometown, alma mater, or hobbies. Talking about what they do for fun or where they went to college can lead to a more relaxed conversation and show genuine interest in their life outside of work.⁴

Thorough research is a crucial component of the selling process and negotiation with larger organizations as well, not just individuals. Before stepping to the negotiation table, it's essential to identify decision-makers within the client organization and understand their priorities and preferences.

By conducting thorough research, sales professionals can tailor their value proposition to resonate with the needs and objectives of these key stakeholders, increasing the likelihood of reaching favorable payment terms and establishing a profitable relationship.

Moreover, having insights into the client's best alternative to a negotiated agreement enables sales reps to craft key strategies that address potential objections and secure price concessions while showcasing the value proposition effectively. Effective communication skills play a pivotal role in conveying the benefits of the proposed solution during the initial exchange and guiding the negotiation toward a mutually beneficial outcome.

Consistency in your actions and follow-through on promises builds trust, which is a cornerstone of rapport. Small gestures, such as calling when you say you will or sticking to the meeting agenda, demonstrate respect and reliability.⁴

Engage in reciprocity by offering valuable insights or connections before expecting anything in return. This positions you as a helpful resource, not just a salesperson. Providing value before you ask for the sale paves the way for a stronger relationship.⁴

While you want to create a connection through shared interests, you should listen more than you talk. You want to have two-way conversations where you can gain a deeper understanding of the customer's needs and establish a connection built on genuine interest and empathy.⁴

Listening carefully will also help you use your experience to articulate the customer's pain points before they do, which ties into consistency and shows that you understand their challenges and can provide a solution.⁴

To make a sale, you need to convey value, understand customer needs, and build relationships that drive successful transactions. In order to connect with diverse audiences, your communication should be marked by clarity, persuasion, and adaptability. Use simple, jargon-free language that makes the value of what you’re selling clear and understandable.⁵

Tailor your message to the customer's specific interests and concerns. You can highlight the benefits that directly address their needs, which will make your pitch more persuasive.⁵

You can overcome communication barriers by recognizing and adapting to different communication styles, cultural differences, and potential misunderstandings. Listen actively and ask clarifying questions when necessary. You need to take a proactive approach to handling objections by anticipating potential pushbacks and preparing clear, reasoned responses that address the customer's concerns directly.⁶

Reframing objections as opportunities to provide further information turns challenges into stepping stones toward closing the sale. Again, effective communication is about engaging in a two-way interaction that builds mutual understanding and satisfaction.⁶ Mastering this will also help you resolve any business conflicts, whether between colleagues or with customers.

Unless you can achieve consistent sales, you’ll constantly swing between periods of abundance and scarcity.

To mitigate these fluctuations, you need a strategic approach to sales, which can be learned through a reputable online MBA program with an applicable curriculum. Even during times of plenty, keep generating new leads. This will help you maintain a steady influx of potential clients by setting clear targets for prospects and appointments.⁷

Data will help you refine your sales techniques.

Keep track of key performance indicators, so you can continuously improve. Your sales cycle is the average time from initial contact to closing a deal. Tools such as a customer relationship management (CRM) system will give you insights into your sales pipeline. Understanding the pipeline and customer experience will help you better plan and set targets to shorten the sales cycle.⁷

Knowing your sales metrics will help you understand how many prospects you need to meet sales targets—based on your close ratio and the average sales cycle. These metrics let you set specific, measurable goals so you’ll have a continuous flow of sales.⁷

Sales negotiation training is a cornerstone for sales professionals aiming to enhance their sales negotiation skills and drive business growth through successful negotiations. By investing in sales negotiation training, companies equip their sales team with the essential sales negotiation techniques and strategies needed to navigate complex sales negotiations effectively.

Being proficient in personal communication and negotiation skills is undeniably valuable, but if you oversee a team, it's crucial to recognize that the collective strength of your team's interpersonal abilities is equally paramount. Your team members serve as ambassadors for your organization, interfacing with clients, partners, and stakeholders.

In business, it's not enough to rely solely on your own expertise; you must also cultivate and nurture the communication and negotiation skills of your team members. By investing in their development, you not only enhance their individual effectiveness but also elevate overall performance and reputation. Here’s how:

• Skill development: One of the primary goals of sales negotiation training is to facilitate the development of essential sales negotiation skills such as active listening, effective communication, and proficient problem-solving. Through structured programs, sales reps can refine their abilities to understand client needs and craft solutions that lead to mutually beneficial outcomes.
• Technique mastery: Sales negotiation training empowers sales professionals to master proven sales negotiation strategies that cater to diverse sales negotiation scenarios. By participating in workshops and simulations, sales reps gain practical experience in applying these negotiation techniques to real-world situations, thereby enhancing their negotiation success.
• Confidence building: Confidence is a key attribute in sales negotiations, and sales negotiation training plays a pivotal role in instilling confidence within sales reps. Armed with comprehensive knowledge and skillsets, sales professionals approach sales negotiations with increased assurance, leading to higher success rates and more favorable sales deals.
• Team collaboration: Effective sales negotiation training fosters a culture of collaboration and knowledge sharing among sales teams. By engaging in group activities and discussions, sales reps can leverage each other's experiences and insights, collectively enhancing their sales negotiation capabilities and contributing to the overall success of the organization.
• Adaptability: In today's dynamic business landscape, adaptability is crucial in sales negotiations. Sales negotiation training equips sales professionals with the flexibility to adjust their negotiation strategies according to different sales negotiation contexts and overcome challenges effectively, thereby ensuring continued success in sales processes.
• Performance improvement: Through continuous feedback and coaching, sales negotiation training facilitates ongoing performance improvement among sales reps. By identifying areas for enhancement and providing targeted support, organizations can ensure that their sales team consistently delivers optimal results in successful sales negotiations.
• Long-term growth: Investing in sales negotiation skills training not only yields short-term benefits but also lays the groundwork for long-term growth and success. By nurturing the sales negotiation capabilities of individual sales reps, organizations pave the way for sustainable business growth and the cultivation of strong, enduring relationships with clients.

Learning to master sales and negotiation MBA strategies will help you advance your career in any field or position.

From conflict negotiation in business to filling your sales funnel, a top ten online MBA from the University of Kansas will equip you with the skills you need to be a strategic business leader.⁸

You can earn your entire degree online—on your own schedule as a KU Jayhawk. Schedule a call with a KU admissions outreach advisor today to learn more.