Want to win more deals? Don’t we all? Obtaining and leveraging your customer’s Hurdle Rate can be a very effective strategy to win deals or to save a deal you thought you lost.
Here are two sales techniques to apply to your own portfolio:
1. To accelerate commitment ahead of schedule
When you reach the point in the sales cycle where discussion turns to your customer’s ROI requirements, the next step is to understand how they compute return on capital investment.
By asking the right person the right questions about their Hurdle Rate, you may be able to obtain very pointed, helpful information. And by knowing and meeting the customer’s ROI requirements, your targeted customer may not only invest in the project, but do so ahead of time.
2. To save a deal previously thought lost
When you have a project that has been in the works a long time, but feel it just isn’t going to happen, make one last run using a hurdle rate strategy. First, suggest jointly re-working the numbers with your customer’s staff. See if together, you may identify additional elements of return that would enable the project to clearly exceed the customer’s stated Hurdle Rate. Then, present the new, jointly developed hurdle rate model and ask to now build out the balance of the business case.
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