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COACHESCORNER

STUMPED?

Multiple options can cement customer relationship

by Brian Dietmeyer

When a negotiation ends, a positive, lasting relationship with the customer should begin.

Negotiation that demands zero-sum concessions, however, usually results in one side gaining at the expense of the other, which means someone will walk away feeling defeated. This kind of adversarial energy won’t create the momentum necessary to get a great relationship rolling.

It doesn’t have to be this way.

After a decade of observing more than 46,000 deals in over 20 countries, Max Bazerman, Vice Chair of Harvard Law School’s Research Program on Negotiation and co-founder of Think! Inc., discovered how to make negotiation significantly more collaborative by moving everyone involved to the same side of the table through a concept he invented called Multiple Equal Offers (MEOs).

Come Prepared

In essence, MEOs give prospects three choices to close the deal instead of one. On the surface, this flies in the face of traditional negotiation advice, which discourages such behavior for fear of muddying waters. I agree.

To execute MEOs properly, you must do your homework. Carefully analyze what makes you the preferred choice, what your customer will do without you, and how they intend to pay for your solution. Rank what your customer values most about what you have to offer, determine what that’s worth to them and bundle your offerings into three packages: a stripped-down, lowest-tier, a mid-tier and a high-tier offering. The more they trade, the more they get.

As you construct the MEOs, always look at them from the customer’s point of view. Structure and title them in a way that is meaningful to them, emphasizing the gap between what you offer and their alternative. Then present each title of the MEO in a way that will resonate; don’t dive immediately into the details and terms of each offer. Instead, tell a story:

“Ms. Bargainharder, I’m prepared, based on my research of your needs and my needs, to offer three different business relationships. Let’s review each of them and how they could impact your success.”
Illustration by Travis Foster

Become A Partner
Instead of A Provider

Be prepared for customers to demand the highest-tier offering at the lowest-tier price and badger you to provide prices for each item in each tier. Don’t do it. Instead, if they view one item of higher value and it isn’t included in a particular MEO, trade it out for aspects of the MEO that are of less importance.

Tod Walton, Western Region Director of Business Development for Livingston International, Canada’s top custom broker and trade-related services provider, says using MEOs enabled the company to increase its close rate from 40 percent to well over 60 percent.

“When you give customers options, you move to the same side of the negotiation table – they stop viewing you as an adversary and see you as a partner,” notes Walton. “In fact, Think!’s approach to negotiation is all about relationships – learning as much as you can about what the customer needs and presenting the solution in a way that will make it rewarding for everyone to close the deal.”

In essence, MEOs ensure that when everyone leaves the negotiation table, they’re happier than when they arrived. I can’t think of a better send-off to a long and prosperous business relationship.

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Brian Dietmeyer is President and CEO of Think! Inc. (www.e-thinkinc.com), a Chicago-based consultancy specializing in sales negotiation.

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