Deal engineering: 5 tips to a successful deal close
You’re finally in front of the potential client you’ve been pitching for weeks or even months. Armed with your product knowledge, charisma, and desire to close deals, you’re well prepared. But more often than not, you’ll have to do the intricate dance that is deal engineering—crafting customized agreements that not only meet the customer's unique needs but also align with your company's goals.
In this piece, we will explore five effective strategies for deal engineering that can help your sales team close more deals and drive revenue growth.
What Is Deal Engineering?
Deal engineering in sales refers to the strategic and creative process of structuring deals to meet both the customer's needs and your company's objectives. It involves customizing and tailoring the terms, pricing, and incentives of a deal to maximize its appeal and increase the likelihood of closing the sale.
Deal engineering also requires a deep understanding of the customer, their pain points, preferences, and constraints, as well as the ability to find innovative solutions that address these factors. The goal of deal engineering is to create mutually beneficial agreements that satisfy the customer while driving revenue growth and profitability for the company.
It can also help companies:
- Stand out from the competition
- Take a more customer-centered approach
- Overcome objections or barriers
- Foster long-term customer relationships
- And flex the ability to be adaptable
Methods of Deal Engineering
Personalization breeds relevance. The key to successful deal engineering lies in its ability to deliver tailored solutions that resonate with the customer. By crafting personalized offers, you demonstrate that you truly understand their unique circumstances. This relevance significantly increases the chances of closing the deal successfully, as customers are more likely to see the value in a solution that directly addresses their specific challenges and may take the form of:
- Discounting with Value-Added Incentives
Discounting is a classic strategy to incentivize customers. Instead of just offering a price reduction, consider adding value-added incentives to sweeten the deal. For example, offer a discounted price coupled with free training sessions, extended warranties, or additional product features. By demonstrating the added value they receive, customers are more likely to perceive the deal as beneficial and close the sale.
Real-world use case:
A SaaS company is selling a project management software solution to a potential customer. To close the deal, they offer a 20% discount on the annual subscription price. Additionally, they include a value-added incentive by providing free personalized onboarding sessions and ongoing support for the first three months.
- Upselling and Cross-Selling:
When engaging with customers, focus on understanding their unique needs and pain points. Once you have a clear picture, recommend complementary products or services that enhance the customer's experience or solve additional challenges.
By strategically presenting upsell and cross-sell opportunities, you not only increase the deal's value but also demonstrate your commitment to meeting their specific requirements.
Real-world use case:
A hardware company is selling a high-end graphics card to a customer who is building a gaming PC. Recognizing the customer's need for optimal performance, the sales team suggests upgrading to a more powerful model with additional VRAM, ensuring smoother gameplay and better graphics rendering. They also cross-sell by recommending a compatible cooling system for better heat management.
- Free Services as Deal Sweeteners
Sometimes, a customer may be on the fence about closing a deal due to concerns about implementation or post-purchase support. Deal engineering can address this hesitation by including free services that alleviate these worries.
Offer complimentary installation, setup, or training services to provide a seamless experience for the customer. By removing potential barriers and showcasing your commitment to their success, you build trust and increase the likelihood of closing the deal.
Real-world use case:
A Reseller or VAR company is selling a comprehensive networking infrastructure package to a potential client. To sweeten the deal, they offer free installation and configuration services, ensuring a seamless transition and minimizing disruption to the client's operations. By including these free services, the Reseller demonstrates its commitment to delivering a complete solution and offers peace of mind to the customer.
- Creative Financing Options:
Financing can be a significant obstacle for customers, especially when dealing with larger purchases. Deal engineering involves providing creative financing options to make the deal more accessible. Constricted economies lead to tight budgets and extended deal cycles. By allowing prospects to defer their first payment with Net 90 terms and then pay quarterly instead of annually, prospects become less concerned with budget restrictions and more focused on the value the product will provide their teams.
Consider offering flexible payment terms or installment plans that align with the customer's budgetary constraints. By tailoring the financing options to their specific needs, you can overcome financial barriers and facilitate the decision-making process.
Real-world use case:
A cyber security software company is selling to a medium sized business with limited upfront capital. To address their budget constraints, the sales team offers a flexible payment plan, allowing the customer to pay on a monthly basis instead of a large upfront fee. The team bakes in the expected discount that would be required to close the deal without financing and decides to subsidize the loans interest themselves, making the cost to the customer a simple 1/12th payment of the original contract value. This creative financing option enables businesses to access the software they need without straining their financial resources—and it makes any software company more competitive.
- Add-Ons and Bundles:
Sales leaders can identify supplementary products or services that naturally complement the customer's primary purchase. Package them together at a discounted rate, emphasizing the cost-saving benefits and convenience of acquiring everything they need in one comprehensive deal. This approach not only boosts the overall deal value but also simplifies the purchasing process for the customer, making it more compelling to move forward.
Real-world use case:
A tech company specializing in smart office devices is selling an office security system to a customer. They decide to bundle the security system with additional components such as motion sensors, smart door locks, and security cameras. This bundle ensures that the customer has all the necessary components to set up a robust and integrated security system, maximizing their peace of mind.
The Nature of the Beast
Business buyers are constantly thinking about the bottom line. According to a study by Salesforce, 84% of them are more likely to buy from a company that demonstrates an understanding of their goals. And that same statistic claims experience is just as important as the product itself.
So in the ever-evolving world of sales, deal engineering emerges as a powerful strategy for success. By focusing on the unique needs and preferences of each customer, sales professionals can tailor deals that resonate and create a compelling value proposition.
Curious about how you can engineer successful deals with creative financing options? Vartana is here to help. Request a demo and offer your customer custom payment options today. www.vartana.com/request-demo
