XS✔ ◾ New rule anchoring sales

categories/client-engagement/rules-to-better-sales.md

@@ -14,6 +14,7 @@ index:
   - meetings-are-you-prepared-for-the-initial-meeting
   - meetings-do-you-know-the-agenda-for-the-initial-meeting
   - meetings-do-you-have-a-debrief-after-an-initial-meeting
+  - anchoring-sales-strategy
   - client-love-after-initial-meeting
   - do-you-incentivize-a-quick-spec-review-sale
   - follow-up-to-confirm-spec-review

categories/communication/rules-to-better-meetings.md

@@ -21,12 +21,12 @@ index:
 
 Meetings that lack efficiency frequently occur because:
 
-- People are not prepared  
-- There is a lot of discussion but no resulting "action items"  
-- Rat holes - Time is wasted digressing to unrelated topics  
-- People forget the meeting is on and do not attend  
-- People turn up late with no notice  
-- Meetings go well overtime  
+* People are not prepared  
+* There is a lot of discussion but no resulting "action items"  
+* Rat holes - Time is wasted digressing to unrelated topics  
+* People forget the meeting is on and do not attend  
+* People turn up late with no notice  
+* Meetings go well overtime  
 
 If you have a 1-hour meeting with 5 people in attendance, you're not just wasting 1 hour if it's not productive, your wasting 5 man hours. One hour for each attendee. That's a lot of man hours!
 

rules/anchoring-sales-strategy/rule.md

@@ -0,0 +1,49 @@
+---
+type: rule
+title: Do you use anchoring effectively in your sales strategy?
+uri: anchoring-sales-strategy
+authors:
+  - title: Tanya Leahy
+    url: https://ssw.com.au/people/tanya-leahy
+  - title: Adam Cogan
+    url: https://ssw.com.au/people/adam-cogan
+  - title: Michael Smedley
+    url: https://ssw.com.au/people/michael-smedley
+guid: 63bb4c1a-733f-46ee-b3ac-e364eb4ced50
+created: 2024-05-03T18:29:33.0000000Z
+related: []
+redirects: []
+
+
+---
+
+Anchoring is a powerful psychological tactic in sales that involves setting the stage for negotiation and price discussions by presenting an initial offer or a piece of information that sets the reference point for the rest of the conversation. This tactic can significantly influence the decision-making process and help drive the negotiation in favor of the salesperson. Clients tend to anchor on inital estimates or figures when considering the duration and cost of projects, including software development.
+
+<!--endintro-->
+
+`youtube: https://www.youtube.com/embed/MBlNEsyTKAU`
+**Video: Anchoring when estimating software projects (14 min)**  
+
+**Precision:** In anchoring, precision is key to effectively shaping perceptions. The initial offer or information presented must be carefully crafted to resonate with the client and set a favorable reference point for the negotiation. By providing a precise figure or detail, based on estimating the break down of each project component, sales professionals can influence the client's perception of value and guide the discussion towards a desired outcome.
+
+**Relevance:** Anchoring is most effective when the initial offer or information is directly relevant to the product or service being negotiated. It's crucial to ensure that the anchor aligns with the client's needs, preferences, and the context of the negotiation. By anchoring with relevant information, sales professionals can establish credibility and demonstrate an understanding of the client's requirements, increasing the likelihood of a successful negotiation.
+
+**Credibility:** To anchor effectively, it's essential to provide credible and verifiable information to support the initial offer or detail. Clients are more likely to trust anchors backed by factual data or evidence. By establishing credibility, sales professionals build trust with the client and enhance the persuasiveness of their negotiation tactics.
+
+**Flexibility:** Successful anchoring requires a degree of flexibility to adapt to the dynamics of the negotiation. Sales professionals should be prepared to adjust the anchor based on the client's responses, feedback, and changing circumstances. Flexibility enables them to maintain control of the negotiation process while responding effectively to shifting dynamics.
+
+**Ethical Consideration:** Anchoring tactics should always be employed ethically, avoiding manipulation or deceit. Sales professionals must prioritize honesty and integrity in their interactions with clients. By adhering to ethical standards, they build trust and credibility, fostering long-term relationships based on mutual respect and transparency.
+
+**Client-Centric Approach:** An effective anchoring strategy is tailored to align with the client's needs, preferences, and priorities. Sales professionals should focus on understanding the client's perspective and customizing their approach accordingly. By adopting a client-centric approach, they demonstrate empathy and commitment to meeting the client's requirements, leading to more successful negotiations.
+
+**Long-Term Relationship Focus:** While anchoring can drive short-term gains, it's essential to prioritize building trust and fostering positive relationships for long-term success. Sales professionals should aim to create value for the client and cultivate a reputation for reliability and integrity. By focusing on long-term relationship building, they lay the foundation for repeat business and referrals, sustaining success over time.
+
+**Adaptability:** In anchoring, adaptability is crucial for responding to feedback and cues from the client. Sales professionals should be ready to adjust their anchoring strategy based on the client's reactions, preferences, and changing circumstances. Adaptability allows them to remain agile and responsive during negotiations, increasing the likelihood of achieving mutually beneficial outcomes.
+
+### ❌ Don't
+
+* Present the cheapest option first, which may anchor the client's expectations too low and potentially devalue your product.
+
+### ✅ Do
+
+* Start with a premium offer to set a high reference point, within their budget, making your standard offers seem more attractive in comparison.