Walking away is hard, especially when it comes to potential deals. After all, you've invested time, energy, and resources in building that relationship, and losing it means having nothing to show for it.
Ultimately, knowing when to walk away and disqualify leads will help you refine your efforts and make you a more efficient and effective salesperson. A minute spent on an impossible or low-value deal could be spent on a viable, valuable one instead.
And even if you manage to convince a poor-fit prospect to buy, you're setting yourself up for an unhappy customer relationship and a potential hit to your reputation. Here are 7 signs you should give up on a deal to avoid the pitfalls of bad-fit prospects.
There is some detective work involved in sales. Identifying your prospect's pain, understanding what they mean (versus what they say), and tailoring your message to their priorities are all necessary steps.
According to Colleen Francis, author of “Nonstop Sales Boom,” sales reps should walk away from prospects who can’t answer these three questions:
Any prospect who answers "I don't know" to any of those questions is either not serious or not a decision-maker. If the latter is the case, you do not necessarily have to jump ship. The real decision-maker will ask them those same questions during the approval process. The deal will not move forward without a satisfactory response.
Before you give up, try saying, “I’m worried that unless we can figure out what you’re hoping to accomplish — and by when — this might not be the best investment of your time. Should we table this conversation?”
It is common for sales reps to hear "We don't have the budget," and "I can't afford that price." However, that shouldn't be your cue to give up - many prospects use price as an excuse to give up.
However, your product may not be affordable for some companies. Through a bit more discovery, you can determine if that is the case. Ask questions like:
You're probably out of this prospect's price range if their responses completely misalign with what you can provide. Rather than abandoning the deal with no warning, let your prospect down gently by saying, "Given what you’ve told me about your budget, I don’t believe our product is the right fit for you."
Score some sales karma by adding, "I’d recommend [Company A] or [Company B] — either should be able to meet your needs within the budget you’ve outlined."
Now that you've built some good will, it's time to ask for a referral. Are you aware of anyone looking for a more robust solution?
You probably enjoy a little competition in your line of work. According to Jeff Hoffman, pursuing a sale when there are three or more other vendors is usually not worth it.
In addition to decreasing your chances of closing with every direct competitor, Hoffman points out that the fact that you're dealing with so many other vendors also suggests the deal is still in its infancy. There is a good chance you will be working with a lower-level employee rather than a decision-maker.
And even if you turn down an RFP, that doesn’t mean the opportunity is lost.
"If your company was a serious contender, the manager will tell the researcher to go back to your company and ask again," Hoffman notes. "If you receive a second request, you will know the prospect is truly interested, and you aren’t wasting your time by getting involved."
Sometimes, your prospect will seem to fall off the face of the planet out of nowhere. They stop returning your calls, answering your emails, or responding to your LinkedIn messages. Eventually, you start digging into your bag of last resort re-engagement techniques — and still, zilch.
It's probably best to stop trying at that point. There's a chance they'll respond to that tenth email or eleventh voicemail - but let's be honest, the odds are pretty slim. In addition, ignoring prospects who aren't interested leads to a cluttered pipeline and inaccurate forecasts.
That said, never end a relationship by going dark yourself. Wrap it up professionally by sending a breakup email. Bryan Kreuzberger, founder of Breakthrough Email, says sending a “permission to close your file” email gives reps a chance to learn from the sale.
Your prospect is picking up the phone and putting your meetings on their calendar, so life is good, right? Not necessarily. Simply talking to you isn’t enough — the prospect needs to be able to move the deal forward.
If a prospect is unable to introduce you to other stakeholders, talk about their budget, share their decision criteria, or answer your questions about their needs, desires, and pain points, they're likely a coach — someone who can provide context around his company's internal politics and decision-making processes without the authority or influence to influence a deal.
When you run into this contact, you don’t need to abandon the account. You just need to find a champion — someone with access to the decision-maker who will sell your product internally.
Don't imply that your coach isn't useful to you if you don't want to burn bridges. Instead, keep things positive by asking the point of contact who else should be involved in the conversation (besides them). You'll be directed to the people who can actually close the deal.
It's the salesperson's responsibility to educate the buyer on their solution's value. If your prospect is struggling to understand why they need your product and how it will help them achieve their goals, reframe your value proposition, show them customer case studies, send them testimonials from your happiest clients, and so on.
If you have repeatedly tried and failed to convince them of your offering's ROI, it's time to give up. There will always be some buyers who won't get the message - and you'll just waste your breath if you keep trying.
Regardless of the fact that they might end up buying, negotiating a fair price will be difficult (if not impossible). They view your product as a commodity, not a necessity.
If your product won’t help the prospect, you’re obligated to walk away. At the end of the day, your mission shouldn’t be closing — it should be delivering the best solution to your customers.
Consider selling online reputation management services to restaurants. As your product isn't really cost-effective for smaller businesses, you target dining establishments with 20 or more locations. After following up on an inbound lead for a restaurant with only two locations, you realize this business will get minimal ROI from your services - if any.
Rather than pushing forward with the sale, you should say, "From what I’ve learned about your restaurant and goals, I don’t believe our product is the best solution. I recommend [alternate product #1] or [alternate product #2] instead, because [reasons A and B]."
As a result of your response, you will be the first person to be contacted when the prospect's restaurant chain is acquired by a much larger company. But even if this prospect doesn't work out, they'll likely pass your name on to someone who will.
Even when it's the right thing to do, removing a prospect from your pipeline never feels good. There is, however, a major upside. Walking away from prospects who aren't right for your business will allow you to focus on those who are.