Sales Negotiations to Improve Close Rates and Revenue

Improve Close RatesImprove Close Rates and Revenue at a Services Firm

Client Case Study

Situation — Sales Negotiations to Improve Close Rates and Revenue

Livingston International is Canada’s leading customs broker and trade-related services company facilitating two-way trade in the busiest trade lane in the world — the Canada-U.S. border. Every day, approximately $1.3 billion worth of goods flows back and forth between the two countries.

With more than 60 years of experience and approximately 1,700 employees in over 70 offices at key border points and other strategic locations in Canada and the United States, Livingston serves an impressive list of Fortune 500 clients.

Operating in a highly fragmented and price sensitive market, Livingston faced the prospect of selling superior services at a premium in a “commoditized” market. The net result was a reduction in win rates, declining average deal size, a downward pressure on margins, and an increase in customer retention issues.

 

Complications — Sales Negotiations to Improve Close Rates and Revenue

A formal Sales Negotiation Needs Analysis with the client identified the following circumstances contributing to these issues:

  • More sophisticated executive-level buyers.
  • Insufficient analysis or preparation for deals.
  • A history of “giving away” value on sales calls.
  • A good sales process in place but no sales negotiation process to support it.
  • Functional areas acting like silos, each with its own goals and expectations.
  • Lack of sales process implementation and reinforcement.

Approach — Sales Negotiations to Improve Close Rates and Revenue

In order to address these issues, we recommended a cross-functional, organization-wide Sales Negotiation Solution.  We recommended a holistic approach because we know that it greatly increases the likelihood of sellers being able to achieve their business goals while establishing and maintaining successful long-term relationships with their customers.

  1. Sales Negotiation Strategy
    Defining a common organizational negotiation strategy linked to the company’s sales strategy.
  2. Sales Negotiation Strategy
    Agreeing on a common sales negotiation process integrated with the existing sales process and supported by sales negotiation training including:

    • Developing deal strategies with Marketing, Canadian and/or U.S. Client Services and/or Consulting prior to presenting offers.
    • Presenting three Multiple Equal Offers with every trial close.
    • Submitting Strategic Negotiation Worksheets for every deal over $10,000.
    • Implementing the negotiation strategy and process in Performance Appraisals.
    • Trading things of equal or greater value and no longer simply concede items.
  3. Sales Reinforcement
    Sales coaching process implementation.
  4. Sales Measurement
    Measuring results and agreeing upon next steps.

Results
In twenty four months for 1,148 deals:

  • 72% increase in Close Ratio.
  • 142% increase in New Clients.
  • 21% increase in Annual Sales.
  • 5x increase in average deal size.

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