If your business enters into negotiations with customers, clients or other businesses, training your employees on different negotiation tactics can be very important. One of the tactics you may want to instill into your employees is a win-win negotiation tactic. Win-win negotiations are a type of tool that can benefit both parties who are negotiating, while also increasing confidence and loyalty in the party you are negotiating in.
This can help with repeat business and help to ensure satisfaction in the client, company or person you are doing business with. Here is what you should now about win-win negotiations.
What Win-Win Negotiations Are
Win-win negotiations are when both parties come to the negotiation table and leave feeling like they have won or come out ahead. Both parties are able to walk away from negotiations feeling like they have achieved their goals or what they set out to do at the beginning of the process.
Win-win negotiations focus on integrative or value-creative bargaining process and techniques, rather than the traditional haggling or distributive bargaining process that most people are used to. By utilizing an integrative or value-creative bargaining process, each party learns what the other party wants and is able to work within those confines or restrictions to ensure both parties walk away satisfied and happy.
Why Win-Win Negotiations Are Good for Business
Win-win negotiations are good for your business for a number of reasons. First, when a customer walks away happy and feels like they got what they wanted out of the negotiation process, they are more likely to return to do business with you in the future. This can increase your repeat or returning business. And this is important, as many studies have shown it is cheaper to obtain repeat business than it is to gain a new client.
Another reason why win-win negotiations are good for business is because customer reviews and word of mouth can also help you to gain new clients. When a person is satisfied with your business, they may go online or tell their friends and family about your business. This can further increase your business without you having to do any type of advertising.
Avoiding Win-Lose and Lose-Lose Alternatives
A win-win negotiation is not the only type of outcome that can be reached through negotiations. The other two outcomes include win-lose negotiations and lose-lose negotiations. Learning more about each of these outcomes and why they are bad for your business can help you to better see the benefits of win-win negotiations and how it can be beneficial for your business.
A win-lose negotiation typically occurs when one negotiator is trying to best the other negotiator. They may come up with a deal that is one-sided. One party wins in this scenario and gets exactly what they were looking for, while one party loses, or feels like they did not get what they are looking for. While a one-sided deal, or a win-lose scenario may seem to be beneficial if the deals are skewed toward your business, customers, clients and other businesses will not want to do business with your company if the deals feel one-sided. You may win at one negotiation, but lose in the long run.
The other type of scenario that can occur is a lose-lose negotiation. In this scenario, neither party really wins. Neither party gets what they were looking for and a deal is reached that neither party really cares for or is satisfied with. Both parties leave frustrated and unhappy, which is bad for employee morale and repeat business.
There are many benefits associated with win-win negotiations, which is why you may want to train your employees using this negotiation tactic.
Here at SOCO/ Sales Training, we are an award winning sales optimization company that strives to evolve the sales industry by incorporating cutting-edge technology, social selling strategies and our modern sales methodology. We can work with you and your sales team to help train you on win-win negotiations, helping you to not only close sales deals, but close them in a manner where all parties feel happy about the outcome.
Reach out to us now and let us begin the process of preparing your sales team and employees on doing business utilizing win-win negotiations.
- Tom Abbott is the author of 'The SOHO Solution' and 'Social Selling' and the creator of the online sales training platform SOCO Academy. Sales leaders engage Tom for his proven solutions to building high performance sales teams that exceed targets and for motivational keynotes that energise their audiences.