GlenRoss

Account Executive

Driving urgency in deals without discounting

i find myself using discounting quite a bit to get deals in EOM or EOQ when I should be doling other things to drive that urgency in a deal. I end up losing out on quota retirement and money and it really adds up by EOY.

What other ways do you drive urgency or develop a compelling event in your deals that isn’t just “finance just green lit EOM discounts just for you!”?

👑 Sales Strategy

36 comments

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BmajoR

Arsonist

Account Executive

Great question, I wish I had an answer so instead I'll stick around to see what other savages have to say.

mitts2

Politicker

Account Executive

Ultimately it comes back to discovery. Digging into the client's evaluation process and laying out a roadmap that leads to an agreed-upon date. My company has a template excel sheet that lays out the different aspects of the deal cycle that I edit and share with the client. Basically, it looks like this:

- Discovery call (30 min), Date, Completed?
- Demo call (60 min), date, completed?
- Product 1 Deep dive, date, completed?
- Product 2.....
- Legal, Security, Pricing Review....

I show that to the customer once I feel the deal is qualified and I ask them to provide a GO LIVE date. At that point, it becomes my job to hold them accountable to that timeline. Sometimes it works great, sometimes you have to be flexible but the framework makes sense.

mitts2

Politicker

Account Executive

More tactically, I've used support threasholds as a lever (i.e. our integration resources can only fit this project in if we get the paperwork done by X date)

goose

Politicker

Sales Executive

Would you really tell a client "no" if they ordered it a month or two later?

mitts2

Politicker

Account Executive

Probably not but the question was what are ways to drive urgency and those are things I try to do to hit a close date with urgency

PhlipOut

Politicker

Account Executive

it's not a no, but if our services team is full backlog you will have to wait longer for delivery mr/mrs client

goose

Politicker

Sales Executive

I think I get it. As a buyer I'd be nervous about entering a business relationship with someone discussing supply chain constraints before I even sign an agreement.

mitts2

Politicker

Account Executive

It's not about supply chain per se. It's about resource allocation (people) and ensuring we can fit the client into an onboarding timeline and speeding up time to value. You can also think about it from a cost perspective. There is an overhead cost for companies to dedicated resources to an onboarding project and in doing so, we need a commitment from the client that they agree to that timeline. If the client agrees to that timeline and then backs out, we have now wasted resources (people + time). Again, I'm not going to say "no" to someone but there is a method behind the madness of leveraging onboarding resources as a way to drive urgency.

goose

Politicker

Sales Executive

That's fair. I don't buy it but I'm not a client so it's all good.

mitts2

Politicker

Account Executive

Looks like in your bio you have sold SaaS or something similar. Have the companies you have worked for had onboarding / implementation services?

goose

Politicker

Sales Executive

We do. They look more like installations or migrations but they do exist. I would never use the availability of resources as a stick or a carrot when negotiating with a prospect though. I'd prefer to use a reverse timeline to help the client understand urgency.

mitts2

Politicker

Account Executive

Got it, sounds like we have differing business model where support resources are more impactful to my industry. Different strokes for different folks.

For what it's worth, a reverse timeline and securing implementation resources are kinda saying the same thing lol. You work backwards from a Go Live date. We secure implementation resources for that Go Live date and then to hold the client accountable to the timeline / resources they committed to.

goose

Politicker

Sales Executive

Yeah. I can see that.

CaneWolf

Politicker

Call me what you want, just sign the damn contract

How do you deal with implementations? If internally, are there any super talented people you can promise if they sign by X?

LordBusiness

Politicker

Chief Revenue Officer

Your buyer must be emotionally invested in the outcome you are looking for (getting the deal closed by EOM). A lot of the times this can come from just being real snd honest, if they connect to the human, not the “deal/transaction” they have a higher propensity to convert

goose

Politicker

Sales Executive

I've told clients that it would mean a lot to me if we could get it done by a deadline. I think it helped.

LordBusiness

Politicker

Chief Revenue Officer

I've used (for many years) what I like to call the "Hamilton" end of month close. This can be maneuvered for whatever is most relevant at the time, but the general vibe is always the same.

Subject line - (Your company) Proposal - Favor?

Hey Prospect - We're finishing up the month here, and my VP just announced a contest where the winner takes home two tickets to see Hamilton in NYC. My (significant other) has been asking me to see this show for like 2 years, and I am right in contention and our agreement could put me over the top. Just being real - do you think you'll be able to turn around feedback/IO signature by Friday?

I appreciate the favor/feedback in advance!
#sales

goose

Politicker

Sales Executive

Sent once... awesome. Sent every month to every prospect... less awesome.

I may borrow this one. Stay tuned.

BullDawg

Politicker

I really like this approach. I’ve tried variations of this in the past but it always came out sounding desperate (and rarely works!). This is money though

goose

Politicker

Sales Executive

Focus on opportunities to help your clients solve expensive problems with real world consequences. Fill your pipeline with these opportunities. You won't need to drive urgency (which is difficult to do) ever again.

Oh, and all the good clients know that you will discount at the end of the month. They can smell it.

UrAssIsSaaS

Arsonist

SaaS Eater

In perfect world with perfect execution from the AE sure, but the post is about how to drive urgency at the end of a sales cycle without discounting.

goose

Politicker

Sales Executive

Yep. I get it. But what are we discussing then? Striving to execute at a moderate level? Good enough?

UrAssIsSaaS

Arsonist

SaaS Eater

Not in the slightest. I agree with everything you said.

Just pointing out the OP is asking for advice to drive urgency, which is a result of messing up one of the pieces you all outline.

If youre perfect all the time, more power to you, I would love to hire you onto my team.

For those that aren't there is some really solid info on here on how to drive urgency without discounting.

Ie leveraging timelines set in discovery, highlighting resource allocation, scheduling, etc

goose

Politicker

Sales Executive

+1 great point

SaaSguy

Tycoon

Account Executive

Set a date early in the cycle based on their need and then hold them accountable. I usually at the beginning will say something to the effect of our onboarding process is very quick, one 30 minute setup call- with that in mind do you think x amount of weeks is enough time to evaluate and move towards implementation?

FromaBlankPerspective

Politicker

District Manager

Setting expectations early has been key for me. Get their agreement to a timeline that’s also beneficial to you at the beginning so they aren’t surprised when you push later.

I also have a VP that is great at coming over the top in a meeting to say something like “listen, Rep Name isn’t going to say this, but they have a lot riding on the line if…”

lazyasscommander

Fire Starter

Manager, Commercial Sales

I'll preface this by saying there is no silver bullet and that this all comes down to good discovery because that's where you will get the info you need to employ these strategies.

1) Tie the evaluation to a specific project/ initiative they have. Uncover the challenges they face in that project/ initiative without your solution in place and align with how your solution will help. When it comes time to close -- bring it back to this.

2) Understand the cost of "no decision" -- does not have to be quantitative! Again comes down to good discovery but what are they losing or missing out on by not implementing your solution. Twist the knife that each day, week, month etc. that goes by this pain is just adding up.

3) Align on a close date early. This is the hardest one as it requires you having a good relationship with your buyer but if you can go back to them with "Hey Customer - we talked about having this executed by July 23rd, what is holding us back?" If you have a really good relationship with them just cut the bullshit and let them know you need to have this signed by the EOM

Blackwargreymon

Politicker

MDR

I show that to the customer once I feel the deal is qualified and I ask them to provide a GO LIVE date. At that point, it becomes my job to hold them accountable to that timeline. Sometimes it works great, sometimes you have to be flexible but the framework makes sense.

Do.it.for.the.checks

Politicker

Account Executive

1) Emotional appeals can be great if you developed a strong business relationship. "Look I make more commission if you sign by Friday instead of Monday. Whats left to get this project kicked off". I will even make up spiffs "I have a fast start spiff if you sign by the 23rd, can we work towards that".

2) Non quota based gives i.e. renewal terms, hourly rates (if you only earn on ARR), access to resources like annual user conferences or advisory boards.

3) "Free" licenses. I like to increase the number of licenses at the same ARR. Then we can grow together. Same applies to add-ons

4) Better PM/SC/CSM. Joe is the best we got and if we can squeeze you in I can take the open slot in his book

But nothing beats understanding the buying motivation. Why now and what does delay cost

Justatitle

Big Shot

Account Executive

Preface: discounts are the easiest way to drive urgency and the buyer typically expects that to be the case.

that said and acknowledged I’d recommend you’d understand wary in the process what they’re targeting for implementation and work with them on the timelines so you understand if it’s realistic to close by x date without needing as aggressive of a discount.

the unfortunate reality is that without the discount you could close nothing so what’s worse 0 or a discount as an incentive? I think we’d all argue the latter. Is there enough pain that this is a matter to take care of ASAP.

the more pain we find the better chance we can avoid a deep discount

yer_blues

Opinionated

Sales Director

You should be able to uncover at least a few pain points that your solution would resolve to the individual prospect and the company. Once those are identified really pressing the prospect on the cost inaction can be incredibly impactful to move a deal to Closed/Won.

TheHypnotist

Executive

Sales Manager

Note: this may depend on your product/service and if you "own" the account (i.e. the prospect will not be called by a colleague, and they can contact you directly).

You (the sales person) are emotionally attached to the outcome, the prospect(s) can smell this. If discounting towards EOM / EOQ is common practice at your company and customers know this, then you may have a problem. If that is not the case, then you may do well to emotionally detach from the sale (Yeah, it sounds crazy, but it works) and try saying something like:

"some departments think that by holding out until EOM / EOQ they will get more discount. EOM/EOQ typically means there is a rush to install services / ship product etc etc... (choose an expression relevant to you and your product/service)
Rushing can affect timely execution, error free installation / correct delivery etc. (again depends on your industry) and may mean that our best people may not be available for your project. I am not in any hurry and am quite happy to wait until next month/quarter, what is your preference regarding timing / execution / installation of the product / service?"

You MUST detach from the outcome, instead focus on getting either a YES or a NO. But you shouldn't care if it is one or the other.

PhillySales

Opinionated

Director of Inside Sales

“It would mean a lot to me personally…”

GDO

Politicker

BDM

Find some urgency on the client side when possible. Also agree on a start date and count back. Do this with the client and always make sure it s urgent to sign, lol

MR.StretchISR

Politicker

ISR

I think you should always pursue opportunities to help you get closer to your end game goal. A good manager will find out what your goals are and do their best to help you get there.

Clashingsoulsspell

Politicker

ISR

Depends what your goals are. Some people don't want another promotion and some have had their eye on a certain position since they had their first day.
I think you should always pursue opportunities to help you get closer to your end game goal. A good manager will find out what your goals are and do their best to help you get there.

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GlenRoss

Driving urgency in deals without discounting

36 comments

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