Urgency

Urgency, what does that mean? 

According to the dictonary urgency means: "a pressing necessity".

In sales, it is also important to create a sense of urgency. Without urgency you won't be able to put pressure on your prospect and try to close him/her on the spot. 
In other words, no urgency equals more chasing your prospects to get started.

This course will be focused on urgency. When to apply what type of urgency and why.

We will cover different ways of creating urgency, lined up from strong to weak.

What is urgency?

What to do before creating urgency?

Urgency, what else...
Every accountmanager heard these following excuses/objections:

  • I need to think about it.
  • Can you get back to me in a month?

When you get back to them at a later stage, chances are the prospect already forgot your name and even more important, forgot what Virtuagym could do for him/her. 

black-friday-cyber-monday-sense-of-urgency-in-prospectOnce you finally manage to talk to your prospect again; you can start over by creating the value that's lost. Not really an efficient way of working. 
To make sure you can keep control on your prospects, you apply a form of urgency. However urgency doesn't equal a guaranteed sale. There are a couple of characteristics/signs you need to check first:

  • Are the needs of the prospect uncovered?
    If you don't know what the prospect is looking for, how can you tailor your presentation to his/her needs? First find out what the prospect is looking for.

  • Did you uncover the pain of the prospect?
    You know what the prospect wants, but do you know why he/she wants it? The pain is the reason the prospect wants to change his way of working or is at least looking around. What is bothering the prospect? Losing clients, heavy competition? Find out the pain, so you can use this in your demo.

  • Did you establish enough trust?
    Your product or service can be really good or really cheap, but without trust the prospect won't decide to become a client and run his business with your software. Break the ice with the prospect with a short chit-chat about the daily routine before starting your demo's.  At the start of the demo, give the prospect an insight in the rise of Virtuagym. How we started of as a consumer solution, moved to B2B, opened a second office and received a 2.1 million investment.
    This shows that Virtuagym is a company with vision and is trustworthy.
  • Did you create enough value?
    Once the needs and the pain are uncovered, time to create value. You can create value by presenting the system on the VGSBE method. Per feature focus on the way the system can work specifically for the prospect and how Virtuagym can solve their problem/pain. 
    Without added value the prospect won't become a client, whether the product is €1,- or €1.000,-. 

An accountmanager needs to be able to control his/her prospects. In order to do this the accountmanager can apply a form of . Before creating urgency you need to uncover the  and the  of the prospect. Once uncovered the accountmanager needs to create a sense of  and .

How to create urgency?

Strong to weaker urgency arguments?

How to create urgency

There are different ways to create urgency to a prospect. Here are the different ways to create urgency, ranked from strong to weaker.

  1. Value of the program
  2. Time related
  3. Discount

 

  • 1.
    Value of the program
  • 2.
    Time related urgency
  • 3.
    Discount

1. Value of the program

Value of the program

We already heard this a thousand times... Create value. By creating value you'll:

  • show why Virtuagym is worth the investment from the prospect
  • reduce objections
  • Stimulate urgency

Value is created when you tailor the system exactly to the needs of the prospect. In order to create the most value, you need to:

  • do a proper needs analysis
  • uncover the pain of the prospect
  • make good use of the sales presentation at the beginning of the demo

Once you learned what the "problems" of the prospect are, you can use VGSBE to show how Virtuagym can solve all their problems and assist them with:

  • Reducing their costs
  • Increasing their revenue
  • Expanding their market share

If you can show the prospect how Virtuagym will help every aspect of their business, the prospect is more likely to see why he/she should get started every time.

Creating value, a concept we heard a 1000 times already. Even so, creating value helps to stimulate urgency, show why Virtuagym is worth the investment of the prospect and .
The most powerful way to create urgency is by showing .

By showing the prospect how he/she can increase revenue, reduce costs and  you'll create a sense of urgency.

2. Time related urgency

2. Time related urgency

Time can be used as a great tool to create urgency. There are different ways to use time as an urgency creator:

  1. The sooner the better: this urgency method is linked to the first one: creating value. You've shown the prospect how he/she can reduce costs, increase revenue and expand market share. 
    The sooner the prospect will start with the use of Virtuagym, the sooner he/she will experience these benefits. 
  2. Creation of the system: creating an all- in-one software system "takes some time". In reality it doesn't but it is a great way to let the prospect make their decision now. 

    Other than that there is the custom mobile app. It will take approximately 4 to 6 weeks to launch the custom mobile app (due to the long launch time of Apple). This can obviously be a longer launch time, depending on the startdate of the prospect.
    The custom mobile app is an excellent tool to use for urgency. Due to the longer launch time, you can convince/advice the prospect to use a feature start date: The system will be activated and the set up fee will be charged as form of commitment. We will start developing the custom mobile app and the prospect will start paying the monthly fee (and use the system) from the moment the custom mobile app is done. 

    Also the member import is part of the creation of the system. This can be done for both Coaching & apps and member management package. 
    For coaching & apps we have an import time of 1 week minimum. 
    For member management (and All-in-One) 1 month minimum.

    Just like the custom mobile app the member import can be used to let the prospect make his/her decision directly. 
  3. Circumstances: This pretty much covers any reason other than the ones mentioned above to convince the prospect to get started. 
    You can use different reasons why you'd advise the prospect to start now:
  • Trade show visits: "Virtuagym will be attending (the upcoming tradeshow). We always receive a lot of interest on this tradeshow and usually the support team is busy following up on these new trade show clients. I'd advice you to get started before, so we can guarantee the same level of service and make sure the apps are done in time".
  • Signing a big client: "we recently closed a super nice deal with (Gym chain). We're obviously very excited for this new partnership. Since the chain has a lot of locations, the development- and support team will need to invest a lot of time in the launching phase. I'd recommend to get started now, so we can make sure your custom mobile app and member import will be finished before we start for (Gym chain). 

  • The custom mobile app has a launch time of 4 to 6 weeks.
  • The prospect can make use of the Virtuagym system direcly and pay the monthly fee once the custom mobile app is done.
  • It takes 1 week to do a member management/ all-in-one member import.
  • The sooner the prospect starts, the sooner he/she can experience the benefits of Virtuagym.

Discount rules + hard- & soft closing

Discount rules and different closing techniques: 

Some general rules when presenting a discount:

  1. Present a discount with an end date: only valid until the end of the week/month or when you get started right away. 
  2. Make the prospect feel special: I see you are really ready to get started and you are really enthusiastic. This is not our way of working but I'll see what I can do).
  3. Blame the manager: What I can try is to talk to my manager and to see what is possible. I know he doesn't like it when people ask for a discount, but I'll make an exception for you.
  4. Gives/gets principe: you're going "out of your way" to do something special for the prospect, so you want something in return. "I'm really going to try my best for you. Let's say I'm able to get you a 50% discount on the set up fee, would you be ready to get started today"? Yes. "So if I arrange a 50% discount, we'll activate the Virtuagym system today"? 
    "Allright, let me see what I can do, hang on."

Other than that, there are different ways of closing prospects. 

Hard closing: closing prospects on the spot or within 3 days. Watch out for the following characteristics:

  • Ready to buy confirmation during demo
  • Shows buy signals
  • Prospect is the decision maker
  • Prospect is the business owner 

Soft closing: longer sales period than 3 days. 

  • Not ready to buy, explained the reason
  • More people involved in making the decision
  • Not the business owner
  • Not the decision maker

Discount always needs to be presented . If you don't do this, the prospect won't feel any "pressure" to make a decision and you'll have to follow up endlessly. Another very important thing to remember is the  principe. You will only "ask your manager for a discount", if the prospect acknowlegded to get started. Handing out a discount only works for prospect who show  signals. 

3. Discount

3. Discount

As already mentioned, the weakest urgency argument. The reason why is pretty straight forward. If you present a discount when the value wasn't shown properly, you'll appear desperate. Other than that, it will also harm the credibility of the company. Why would you present a discount when there is no reason for it. When you are sure you created enough value and you used a time related urgency argument, a discount can be used to push the client over the egde. 

Here are some ways to present a discount. The discount is always influencing the set up fee.

In combination with a time related argument:

"Virtuagym will be attending (the upcoming tradeshow). We always receive a lot of interest on this tradeshow and usually the support team is busy following up on these new trade show clients. I'd advice you to get started before, so we can guarantee the same level of service and make sure the apps are done in time"
If the prospect still isn't willing to take your offer, use a discount to close the deal. 
Let me check with my manager... We do have a special offer, to stimulate enthusiastic business owners to start before (Tradeshow). I can offer you a 50% discount on the set up fee, valid until the end of the week.

Early decision discount:

This discount offer mainly works for personal trainers. They are (usually) the only ones involved with making the decision and can be closed on the spot. Gyms usually have more people involved in making the decision and have a longer sales cycle. 

We at Virtuagym strife for efficiency. For business owners/personal trainers who decide to get started right after the demo, we offer a 50% discount on the set up fee. So are you ready to get started?

Encouraging new businesses discount:

This type of discount works (obviously) with starting businesses. A lot of starting entrepreneurs are, especially in the start up phase, economical. This discount is to show the prospect that Virtuagym supports start up companies.

Since we are a relatively young company, we know how it is to be a start up. Therefor we want to stimulate new business. If you decide to join Virtuagym before the end of the (week/month), you'll get a 50% discount on the set up fee. 

  • In combination with a time related argument
    Let me check with my manager... We do have a special offer, to stimulate enthusiastic business owners to start before (Tradeshow)
  • Early decision discount
    We at Virtuagym strife for efficiency.
  • Encouraging new businesses
    Since we are a relatively young company, we know how it is to be a start up. Therefor we want to stimulate new business.