What Are Sales Tactics? (With Importance, Tips and Skills)

By Indeed Editorial Team

Published June 15, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Salespersons often use various tactics to attract customers and close more sales deals. Effective sales negotiation tactics can allow you to reach an agreement with customers to ensure a profitable transaction and customer satisfaction. Learning about sales negotiation tactics can improve your sales skills and help you advance in your career. In this article, we explain what sales tactics are, discuss why sales negotiation tactics are important in business, provide tips for effective sales negotiation, and outline essential skills for negotiating sales.

What are sales tactics?

Sales tactics are the actions companies and salespeople strategically design to attract potential customers and convince them to make purchases with clarity and confidence. A salesperson uses these tactics to achieve sales goals. Sales negotiation tactics differ from sales strategy as they focus on immediate goals. A sales strategy is the concept or plan for promoting your specific offerings. It includes details of how you intend to achieve your sales goals and clarifies your purpose and object. In contrast, a sales tactic puts your sales strategy into action.

Sales negotiation can determine whether a customer buys a product. Salespeople typically negotiate to influence customers' decisions and encourage them to make purchases to increase business sales. These negotiations can allow sellers to understand customers better, address their concerns or reservations, make appropriate compromises, and provide valuable information about offerings that can help them reach a decision.

Related: What Is Customer Satisfaction and Why Is It Important?

Why are sales negotiation tactics important in business?

Sales negotiation tactics are important for a business to thrive in a specific industry due to market competition. Here are beneficial reasons to employ sales negotiation tactics in a business:

Showcases product value

Sales negotiation can enable you to establish a product's value and benefits to customers. During negotiation, you can provide details of an offering, such as its price, quality, origin, and other essential information that makes it valuable to customers. These details allow customers to assess the product critically and determine how it can suit their needs.

Improves brand reputation

You can improve a brand's reputation during sales negotiation by enlightening customers on available discounts, possible alternatives, and other options that can fulfil their purchase needs. Your actions and attitude during negotiations can also improve the company's reputation. For example, if you remain positive and friendly when interacting with a customer, it can generate more sales and improve the company's reputation with the customer.

Increases sales and profitability

Another essential reason sales negotiation tactics are important in business is that it helps increase sales and profits. You can discuss ongoing discounts and promotional offers with customers to encourage them to make purchases, increasing your sales. The resulting sale can increase the company's long-term profitability. For example, if a customer buys a specific product at a discounted price, they may tell their family or friends about it, increasing the product's awareness. If others decide to buy the same product, it naturally generates more revenue for the business, fostering growth.

Provides insights into customers' wants and needs

Sales negotiation can allow you to gain an insight into what customers want and need from products. You can listen to customers' demands and share their concerns to get vital information on their exact needs. This information can help you recommend alternative or special products targeting a customer's unique needs.

Related: Customer Surveys: Definition and Example Questions

Promotes customer engagement and retention

Effective sales negotiation tactics can be a great way to connect with customers and encourage them to engage with a company and its offerings. By negotiating, customers can feel free to express the specific features and functions they want in an offering. Customers who keep engaging with a company's products are likely to remain loyal to the brand. Focusing on creating a positive customer experience during negotiations can promote customer retention.

Facilitates effective counter-offers

Sales representatives often provide counter-offers to customers during specific situations. Sales negotiation facilitates effective counter-offers for customers wanting to change the specifics of a purchase. You can use this tactic to encourage customers to compromise on the product's specifics and close the sale deal.

Tips for effective sales negotiation

Consider applying the following tips to improve your sales negotiation tactics:

Demonstrate the product or service's effectiveness

Consider starting your conversation with a potential customer by explaining the product that interests them. Your explanation can demonstrate the product's effectiveness that the customer enjoys, which can potentially secure a sale. This can establish a leading factor in your conversation with the prospect and enable you to influence their decision based on your knowledge of the product.

Build customers' trust in your offerings

Another effective sales negotiation tactic is to build customer and target audience's trust in your offerings. You can do this by always being honest, thoughtful, and respectful when dealing with customers. Once you establish trust with customers, they can believe whatever you say about a product's quality and the value of deals you offer. You can practise building trust with your existing customers to identify your target demographics. When existing customers believe you're trustworthy, they can tell friends, family, or colleagues about your products. They may also post positive reviews on social media platforms improving your marketing efforts.

Remain positive

Remaining positive during sales negotiations can create a pleasant experience for customers. This helps to maintain excellent customer relations and ensures customer retention and loyalty. Loyal customers can generate more potential leads and help you reach your sales target quicker. Customers often prefer speaking to positive sales representatives, so it can be easier to reach agreements and close deals with more customers by remaining positive.

Related: What Are Customer Interactions? (Benefits and Tips)

Prepare for different sale scenarios

Consider learning more about customers to improve your sales negotiation tactics. Depending on specific circumstances, a customer may be available or unavailable for sale. Consider preparing for both scenarios to help you approach situations professionally. For example, suppose a customer wants to buy a product, but the price is above their budget. In that case, you can get more information on their budget and specifications to offer compromises they can accept and potentially secure the deal.

Convert the demands into a need

When discussing an item with a customer, a great sale tactic is to convert the customer's demand to a need. For example, suppose a customer demands a necklace in a jewellery store. In that case, the salesperson can convert the demand for a durable necklace into a need for one with a lifetime warranty. Aligning the advantages of a product to what a customer wants can be beneficial in closing a sale.

Identify decision-makers

Decision-makers are the customers who decide whether they buy a product. For instance, if a couple is shopping for women's heels, the wife is likelier to be the decision-maker selecting her preferred footwear. Before you start negotiating, try to identify the decision-maker and focus your attention on them to increase your chances of closing the deal.

Provide follow-up options

If a customer seems hesitant or can't make a purchase immediately, providing a follow-up option can be a good tactic. You can offer a contact card on behalf of the business or your personal business card for possible future needs. Offering a follow-up option can ensure customers return if they have additional questions about the product or contact you whenever they're ready to make the purchase. This option also lets customers provide feedback or follow-up requests, ultimately improving customer satisfaction and brand reputation.

Related: What Is SPIN Selling? (With Definition and Examples)

Essential skills for sales negotiation

Here are a few essential skills that salespeople use to negotiate sales effectively:

Communication

Communication skills describe the ability to exchange information with others. Salespeople use excellent communication to present and describe various sales deals to customers. If customers are unaware of a product's details, a salesperson explains it thoroughly, highlighting its advantages and how it differs from other similar items.

Organization

Sales often require attending to multiple customers at a time. A salesperson uses organizational skills to prioritize tasks and set schedules to meet sales targets. It's essential for salespeople to stay organized to handle customers quickly and effectively.

Interpersonal skills

Interpersonal skills depict the ability to communicate and interact with others individually and in a group or team. Salespeople use interpersonal skills to connect with customers on a professional and social level. A salesperson is usually cordial and appealing in appearance, dressing, impression, and choice of words. During sales negotiations, interpersonal skills are essential to learn more about a customer and keep the ongoing conversation efficient.

Related: Interpersonal Skills: Definition and Examples

Active listening

Active listening skills describe your ability to listen and respond to others in a way that promotes mutual understanding. Sales representatives often use active listening to understand customers' needs and address them accordingly. By actively listening and understanding customers' wants, a salesperson answers questions effectively and offers the best solution to the customer. Consider developing active listening skills to make customers feel respected and pleased during sales negotiations.

Multitasking

A salesperson may perform other tasks while talking to a customer. Salespeople can actively listen and converse with customers while pricing an item, organizing stock, or adding a total. Being able to multitask helps salespeople remain productive by helping customers and working toward sales goals simultaneously. Salespeople use multitasking skills to manage their time and resources to accomplish set goals efficiently.

Explore more articles