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 instil 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 with.
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 know about the win-win negotiation process.
- 5 Steps for Overcoming Stalled Negotiations
- 10 Essential Sales Negotiation Skills Every Salesperson Needs to Master
- Adapting Negotiation Skills to Our ‘New Digital Normal’
What is a Win-Win Negotiation?
Win-win negotiations are when both parties come to the negotiation table and leave feeling like they have won. Therefore, both parties are able to walk away from negotiations feeling like they have achieved their goals.
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. Thereby making it easier 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 several reasons. First, when a customer walks away happy and feels like they got what they wanted out of the negotiation process, they’re likely to do future business with you. This can increase your repeat or returning business. Many studies have shown it is cheaper to obtain repeat business than it is to gain a new client.
They’re also good for business because customer reviews and word of mouth can also help you to gain new clients. When a person is satisfied with your business, they’ll 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 you can achieve. For example, the other two outcomes include win-lose negotiations and lose-lose negotiations. Learning more about each of these outcomes and why they are bad can help you better see the benefits of win-win negotiations and how they can benefit your business.
A win-lose negotiation typically occurs when one negotiator is trying to best the other negotiator. They may come up with a one-sided deal. 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.
Master The Art Of Win-Win Negotiations
Profit, relationships and deals are won or lost during the negotiation process. When successful negotiators arrive armed with the tools and skills needed to negotiate effectively, desired outcomes are optimised, and loss of profit is avoided. The thing is, when it comes to negotiations, profits and closed deals aren’t the only desired outcome. That’s where our Negotiation Skills Training comes in.
Preservation of the relationship is also crucial to ensure long term business opportunities and negative feelings aren’t harboured.
Sales professionals, procurement departments, and business leaders must learn how to navigate effective negotiations that positively impact both parties and inspire future business.