Negotiations can be a huge pain point when trying to close a deal quickly. Yet with the right techniques and best practices, negotiations can go smoothly and time-to-signature can be reduced.
Understanding the psychology behind negotiations is one of the first keys to success. Following a plan that is set out from the beginning will help everyone involved be aware of what point in the procedure they are at. Knowing how the process of negotiation will go helps free each party’s minds to focus on the most important task at hand: reaching an agreement on the terms and conditions that will be best for them. Part of understanding this process is stepping back to realize the other party is a human. Oftentimes in negotiations, especially if they are digital, people can feel rushed or communicate differently than they would in person. Keeping the human touch in communication goes a long way when it comes to negotiations.
With the right mindset and processes in place, here are a few ways to make negotiations as simple as possible so both sides come out satisfied.
The “10,000-hour rule” is a common topic for people looking to become an expert in anything. Putting in the effort to any task pays off, especially over a longer period of time. Even if a negotiation seems simple, doing the research to ensure the right topics are covered is critical. Clarifying goals and identifying key outcomes for both parties will help the conversation be easier and more effective. While it may be easy to anticipate what is coming, no two negotiations are ever the same. Being ready for any question or argument that arises will help the entire process go more smoothly.
2. Show the data
Whether it’s through case studies, key metrics, or proof points, showing the numbers behind the reasoning is essential for creating a case. Knowing the data for the ROI the other party will receive and having the calculations in place makes the final numbers difficult to argue with. In the end, if a product claims to save money, time, or both, having the numbers and stories up front to prove it saves time during negotiation.
What is the other side asking for? What are the most important things they need? Even with all the preparation possible, coming into negotiations ready to listen makes a significant difference in communication. If the relationship goes well, it’s likely that at some point a negotiation will come up again when the contract is ready to renew. Ensuring that each side feels respected and heard during the negotiation process will set everyone up for successful negotiations in the future.
While having the techniques is important, the right tools can be just as essential. A contract lifecycle management platform should empower negotiations that are streamlined for all sides. Managing the contract throughout its entire lifecycle involves a successful negotiation process. Having a centralized location for all parties to comment, ask questions, redline, and accept edits ensures the communication side of the process is as simple as possible. Along with a good communication cycle, technology can be the key to unleash the power of negotiations to help both sides win.