Collection negotiation techniques/importance/7 tips
Consultants have a daily challenge: to win new clients and persuade them to close a deal . Obtaining a portfolio of fixed clients is the dream of any professional who works autonomously, however, it is essential to know how to use good negotiation techniques for this. Collection negotiation techniques
Do you know how to approach potential customers and show the benefits of investing in your service? In this post, we’ll explain about the importance of trading and give you 7 tips for you to follow and succeed . Want to improve your approach? So, read on.
What are trading techniques?
It is a set of behavioral approaches used to achieve a certain result. In this sense, in the case of HR consultants and coaches, they would be the strategies to win new contracts and clients.
But it is important to keep in mind that a negotiation depends on two parties, so it is essential that the interaction between the professional and the future client takes place in a professional manner, favoring the interests of both.
Still, it is common to relate negotiation with manipulation, but this is not the case. A good negotiator is one who seeks the agreement of the parties involved and does not take advantage of the other person’s ignorance or unpreparedness.
On the contrary, the idea is precisely to provide the potential customer with important and real information , so that they can make their decisions with more foundation and realize how your help can improve business results. Collection negotiation techniques
Thus, negotiation consists of finding the best communication approaches and persuasive arguments to reach a consensus. Some of these approaches have already been extensively tested and have been shown to increase the chances of successful negotiations.
Why are negotiation techniques important to consultants and coaches?
Many people associate negotiation techniques with cash advantages, that is, getting discounts and more attractive prices, but a successful negotiation goes far beyond that.
For HR consultants and coaches, the negotiation may lie in showing companies the advantages of investing in people management and the results that the organization can obtain with this investment.
In this way, using proven techniques and standards of behavior, these professionals increase the chances of reaching consensus, gaining approval from all parties involved.
7 tips for good trading
But after all, what is the best way to negotiate with new clients and close consulting contracts? Below, we list 7 best practices and approaches that have proven effective when closing a deal. Check out!
1. Know the different types of customers
The first step for any business is planning , so knowing the profile of your target audience is essential before starting your negotiation. The fact is that, in addition to understanding the company’s profile , it is recommended that you also seek to know the professional with whom you are negotiating, on a more personal level. Collection negotiation techniques
This way, it will be easier to identify peculiarities that can influence interaction and decision-making, adapting your approach.
In that sense, there are some common profiles you can find, such as the “ trader customer ”. This type of customer is always looking to take maximum advantage of the transaction and only closes a deal when they are 100% convinced about the solution and the cost-effectiveness.
Thus, when dealing with this profile, it is important that the consultant is prepared to listen to what he has to say and to make some concessions in order to close the deal.
Another common profile is the “ indecisive customer ”, who needs to feel secure before closing any deal. To deal with this type of person, it is essential to focus on solutions for their needs, providing them with as much information as possible so that they can feel confident about what is being hired.
Regardless of the type of profile , it is important to be aware that some cases are more challenging than others , therefore, it is necessary to pay attention to the people you are dealing with and try to customize the communication for each one of them.
2. Listen and understand the customer’s problem
The worst negotiators are those who want to control the entire conversation and have difficulty listening . That’s because, this type of professional tends to expose the merits of their offer without even understanding if it really makes sense for the client’s needs.
So, to achieve success in the interaction, it is important that you are open to listen and understand the main problems and then look for solutions and answers that really bring value to the situation. Collection negotiation techniques
Anyone who has a lot of difficulty in being a listener can use the 70/30 rule , exercising listening 70% of the time and speaking in only 30%. Also, encourage the customer to open up by asking questions that cannot be answered with “yes” or “no”.
3. Identify decision makers
Although, in most cases, there is a person responsible for the negotiation, it is important to be aware that there are other influences on a company’s decision-making. Thus, the consultant or coach must be prepared to identify roles and responsibilities , in addition to showing value for their service in a way that meets everyone’s expectations.
In this context, among the main stakeholders that should be considered are partners, investors, directors and legal counsel . In addition, family businesses often value the opinions of spouses and other family members.
4. Maintain a courteous and professional posture
The consultancy service requires follow-up and direct contact with the company . Therefore, it is essential that you maintain a good posture during negotiations, trying to be as cordial and respectful as possible.
The objective of the negotiation should be to establish a long-term relationship , so aim for a collaborative and positive tone , avoiding overly aggressive approaches.
5. Get to know the SPIN methodology
There is no set script for a negotiation, however, some techniques can help and improve the conversation when structuring your questions. One of them is the SPIN methodology , whose name refers to four elements considered essential: situation, problem, implication and need . Thus, it is possible to structure the negotiation according to stages. Collection negotiation techniques
This is the first phase of the negotiation, in which the questions should be aimed at learning about the customer and its main objectives . Thus, it is worth asking questions such as:
- what is your main objective?
- what has the company done to achieve it?
- are you satisfied with the results you have already achieved?
- how much do you invest in these activities?
In the second step, the questions should be directed to the obstacles faced by the potential customer in the pursuit of the objective. Imagine that the customer’s objective is to increase the team’s productivity, but as the main problem, he has difficulty retaining talent, for example.
Thus, knowing the client’s objective and difficulties, you must understand the best approach to show good solutions, in addition to verifying if you are qualified to deal with the obstacle encountered.
The implication phase aims to make the lead understand the consequences of not solving the problem pointed out .
Here, using the same example from the previous topic, it would be necessary to question how much the client spends on recruitment and selection processes and on training new employees, for example, and how much he did not earn for not being able to retain his best talents.
At this stage, it is also valid to show the gains from having the consultancy and how the result generated can exceed the cost of contracting the service. Collection negotiation techniques
Finally, the last step of the methodology is focused on issues related to the potential customer‘s needs. The goal here is to make your service seen as a worthwhile investment .
Thus, it is necessary to question the company about its expectations and align the benefits and solutions that can be achieved.
6. Bet on the OR technique
This technique consists of creating a sense of urgency in the client , making him/her to make decisions faster. In this sense, the idea is to limit the choice options, seeking more favorable answers.
Imagine a scenario where you want to schedule a meeting with the directors, but they are always dodging and never closing a date. In this case, you can approach them with two options: “Do you want to schedule it for tomorrow morning or Friday afternoon?”.
Another tip is to offer two different service packages for hire . So, at the end of the negotiation, instead of asking if the person liked the solution , you can ask which of the two plans they prefer, creating a sense of urgency that will help them to make quicker decisions.
7. Use rational persuasion
Finally, another technique that can help you negotiate with more practical and less emotional clients is rational persuasion. Collection negotiation techniques
This type of approach requires a lot of study and participation from the consultant, because he must arrive at the meeting armed with concrete facts, figures, tables, graphs, testimonials from other clients and resources that help to support and illuminate the rational side of the other party.
Thus, real evidence shows how your work has already improved other companies and could contribute to solving problems similar to those of potential customers.
As we have seen, negotiation techniques are very important for HR consultants and coaches to be able to gain new clients and expand their business . Also, it is essential that you know how to listen and be able to adapt your approach to reach different types of people.
WHAT ARE THE BEST COLLECTION TRADING TECHNIQUES?
In this article MÁS QUE ALIADOS SAS wants to teach you to use negotiation tools and policies in collection in order to reduce the percentage of delinquency of your clients and so that you can delegate to your collaborators of your company to improve the negotiation techniques in collection portfolio, which allow the improvement of professional management in collection management and in relations with clients and debtors. Collection negotiation techniques
Collection negotiator profile:
- Knowledge in the area of portfolio collection.
- Maintain good judgment.
- Have a good touch when communicating.
- Fluency in communication.
- Negotiation skills.
- Human relations.
Some of the negotiation techniques in collection:
- Develop a methodology that allows you to carry out effective collection management to have a real control of risk.
- Investigate useful data for the investigation of the delinquent client and the debt that he acquired with the Entity.
- Verify the authenticity of the data of the delinquent debtor to analyze, evaluate and classify the data obtained. Collection negotiation techniques
The four steps to prepare for the negotiation:
The definition of the issues:
Determine the degree of conflict that exists between both parties.
Separation of the Essential objectives from the simply Aspired.
Analysis of the situation:
- Preliminary analysis from the point of view of the Counterpart.
- Personality analysis, empowerment and probable strategy of them
- Determination of the balance of power.
- What is space for our solution of problems?
- What is the range or space of the balance point of the payment (haggling)?
- What will my offer be?
The stages of negotiation:
First stage (Opening)
- Create or choose the right environment.
- Clearly communicate our starting position.
- Listen carefully to the starting position of the other party.
- Avoid being permissive from the early ages of negotiation.
Second Stage (Medium)
- Create momentum.
- Stay in control of the situation. Collection negotiation techniques
- Initiate some authorizations.
- Build a firm bridge of empathy and understanding.
Third Stage (Completion)
- Be firm in our position.
- Control the limits of the counterparty.
- Determine deadlines.
- Ensure the dignity of the counterpart.
- Prepare the ground for the next negotiation.