The sunk-cost effect is a term that our brethren in the Finance or Accounting Departments may know all too well, but it’s a concept that B2B sales professionals should know also. The sunk cost effect is the tendency to persist in endeavor once an investment of effort, time, or money has been made even though that endeavor is not providing returns
On this occasion, we were chatting about the topic of B2B sales process, specifically how sales professionals often mistake a raw Marketing Qualified Lead (MQL) as an invitation to close the deal
Much has been written about B2B sales closing techniques over the years. I must say that many of the old-school closing techniques traditionally taught in sales are going the way of the dinosaur. Much more emphasis is attributed to simply focusing on understanding their prospect’s business and helping them achieve their desired outcomes – and the focus SHOULD be on understanding and not getting the deal through gimmicky closes.