Everything you do leads up to the one magical moment when prospect turns to buyer. From Facebook ads to SEO to email marketing, you’ve invested all that you’ve got into wooing prospective customers and gaining their trust. Now, you’ve managed to tip the scales in your favor. The prospect is finally ready to buy your product. But don’t pop the champagne just yet. Before we start celebrating, make sure that you aren’t committing one of these common closing mistakes. These innocent errors can instantly derail your deal. What are they? Let’s discuss.
Here’s a checklist of what to do when closing a sale.
Mistake # 1: Expecting All or Nothing Buy In
Not everyone will purchase your top of the line package. That’s okay. Have something else to fall back on.
As an SaaS, your superpower is progressive pricing. Instead of offering a one-size-fits-all product, you can add features to your base product and charge accordingly for the additions. Some buyers will love the premium package, but not everyone has the same needs (or funds) to go with the top of the line option. That’s why you need multiple options to accommodate those who like your product but don’t want, or can’t afford, your premium package.
Take a look at your product and think of how you can simplify it or supersize it to fit the varying needs of your customers.
Mistake # 2: Competing on Price
If you’re in a competitive market, you’ve probably toyed with the idea of lowering your price. I know it’s tempting, but remember this: A competition on price is always a race to the bottom.
You’ll attract customers who are hellbent on price, which is never a good thing. The type of customers who focus on price more than anything else are guaranteed nightmares. This type of customer doesn’t truly understand the value of your product.
Don’t cave into pressure. Dig your heels in deeper and make sure that your prospects understand the unique value that your product offers them. How will using your product benefit their lives? How much time or labor will it save?
If the price is a lot to gulp down, consider minimizing the price by breaking it down into smaller, digestible bites. For example, instead of saying $90 per month, emphasize that your product is $3 per day. This subtle shift that can motivate hesitant prospects.
Instead of competing on price, compete on value. Compare yourself against your competitors, and emphasize what you do differently. You don’t have to name your competitors, either. You can simply make a note of what makes you unique and then use it as part of your marketing. A prospective customer who’s researched your competitors will appreciate knowing your unique value proposition.
Mistake # 3: Not Calling to Action
Here’s a common mistake that many SaaS make: In an effort to create a low-pressure sales environment, a well-meaning SaaS takes a “whenever you get around to it” approach to selling. They assume that people will buy when they’re ready.
Here’s the thing: they’re never ready. There’s always push back. It’s human nature to think about an idea and let it marinate. People won’t buy unless there’s some sort of tension present.
One type of tension is self-directed. It’s what the prospect says to himself, such as “I need this right now to solve my pressing problem.” You can indirectly influence this by helping prospects see that your product is the solution to their problem.
A second type of tension is your call to action. It’s what you tell the prospect to get them motivated to buy now. Your call to action may be something similar to “Buy now with this special discount code that’s expiring at midnight.”
Both types of tension work, but you have more control over the second type of tension. Use a call to action to appeal directly to your prospects. Your call to action can help the prospect realize the urgency of acting now instead of waiting until later. It can also reassure them that they’re covered in case they don’t like the product (for example, “buy this product now and if it’s not a good fit, we offer a full refund”).
Mistake # 4: Not Targeting the Right Prospect
Selling to everyone is selling to no one.
Here’s the harsh truth: Not everyone will like, need, or want your product. Here’s another whammy: Not everybody should buy your product, either. I know you want to reach as many people as possible, but there’s a huge drawback to this approach. When you sell your product to people who aren’t the right fit, you open the door to non-stop refunds, negative reviews, and websites erected for the sole purpose of trashing your good name.
Your product cannot answer the masses. It can only answer the few. But the good news is that those relative few can create a very profitable business for you. You can use their feedback to further develop your product and reach even more customers like them.
It’s essential that you understand your ideal customers and market directly to them. Remember that your product is not about you, it’s about the customer. Make this necessary shift and close more sales.
When it comes to closing the deal, ask yourself, How can I address the prospect’s pain point? How can I help them see that my product is the ideal solution to their problem?
Mistake # 5: Not Including a Sense of Urgency
Most prospects aren’t ready to buy immediately. That’s why the nurturing is a crucial stage in the buyer’s journey. However… once you’ve established a relationship with the prospect and have succeeded in getting them to consider purchasing your product, it’s time to add tension (as we discussed above). The easiest way to do that is by creating a sense of urgency.
Amazon is a master at it. Thinking about purchasing a product? They include a countdown clock to let you know when you can expect it on your doorstep.
Even if you’re not selling a tangible product, you can still incorporate urgency in your closing strategy. For example, announce that the price of the product or service will increase after a specific time period. This gets prospects into gear because it reminds them that they don’t have an endless amount of time to make their decision.
Another idea is to limit quantities or access. It’s the good ‘ole FOMO (fear of missing out) that pushes prospects towards purchase.
The idea is to get motivated prospects to buy without delay, and you can make that happen by limiting access or increasing urgency.
Mistake # 6: Not Accounting for Hesitation
The last thing you want is for them to get to the finish line and then get cold feet about the purchase, but it happens. So account for it.
Include the following with your final sales pitch to warm those cold feet:
Testimonials – Social proof is helpful and can inspire prospects who aren’t really sure about buying your product. Include short, but credible testimonials (read: with names, photos, and real problems that your problem solved).
Guarantees – Do you stand behind your product? Include a money back guarantee to sweeten the deal. Prospects like to know that they’re covered in case your product isn’t what they were expecting.
Mistake # 7: You’re Overpromising
Tied with the above point, it’s actually pretty easy to oversell yourself to the prospective customer. You’re passionate about your product and it’s ability to help but, if you’re not careful, that passion can oversell your product, and promise things that you can’t deliver.
Instead, remember to keep your hard sell focused on what you actually offer. It’s always best to underpromise and then surprise them with the quality of your product.
Mistake # 8: Only Focused on This Sale
If you’re only focused on today’s supper and not the future, you’ll lose the customers you’ve worked so hard to gain. Instead of zooming in on today’s sale, remember to focus on building a long-term relationship with your new customer. This is how you’ll minimize churn.
Ask yourself, What happens after this sale? How will I continue to support the customer? How will I keep them in the loop with future sales? How will I convert that person to a referral source?
For more information about preventing churn, read this post.
Before you go, check out these additional posts:
- The Art of the Upgrade: How to Convince Your Customers to Buy More
- 3 Ways To Engage Early In The SaaS Customer Lifecycle
- How to Go From a Trial Period to a Closed Sale
Don’t forget to download your checklist for what to do when closing an SaaS sale.