The Art of Negotiation
To succeed in negotiations, managing your emotions and those of others is crucial. This is what we call emotional intelligence.
Whether it’s that friend or coworker who easily gets frustrated without realizing their impact or someone seeking respect through fear, dealing with varying personalities can be challenging. They might be on your team, the vendor’s team, or even be you. To manage these dynamics, you need a plan.
Start with yourself
Think about your triggers, feelings about those involved, and any biases you may have. I believe we all hold more power than we think. Knowing yourself and recognizing how you impact others will help you in all kinds of negotiations.
For instance, if you tend to be a quiet observer who needs to process details independently after the meeting, make sure to bake in review times and explain why they’re important. You may compromise on the length of the review periods, but communicating your needs can help you avoid feeling rushed or angry.
Build a rapport
If you don’t know the vendor sales team, make your first interaction about getting to know them. They will inevitably speak about the potential deal, so use this time to identify their interest. Pay attention to what excites them and what they speak the most about. Take note of when the actual negotiation begins.
I also pay attention to how they respond to our comments. Do they rush me, include our needs in their responses, or ignore things we call out as concerns? Awareness of their engagement styles and personality types can be used to consider when and how to push for more or let you know when to back off.
Be respectful and socially aware
Once the deal begins, clearly explain what you need and why, then let them respond. If they come back with high prices or terms you consider outrageous, assume it’s just the starting point of the negotiation. Too many people feel insulted or see it as a sign of disrespect. Don’t take things personally.
Like you, they have a manager/company they represent. Focus on being steady and calm while you watch their reactions. In general, don’t insult anyone, engage in unproductive arguing or speak negatively about the products.
Keep the conversations about how the product or service can and cannot add value to your business. I believe it’s more impactful if you come off as unemotional. It keeps them guessing and trying to impress you with their offerings.
Be empathetic
You don’t have to agree with someone to understand their feelings or perspectives. If you are bothered by what they are saying, put yourself in their shoes.
When a friend complains about something I don’t think is a big deal, I ask myself, “Why is this so important to them?” or “Do I lose anything by just listening to their feelings?” Just asking yourself a question is enough to stop, calm down and think about how to phrase your response.
The soft skills behind martech wins
Martech vendor negotiations involve many variables and require emotional intelligence. Before negotiations, clearly define your core needs and business values. During talks, prioritize the most impactful elements but remain open to compromise on lower priorities.
Understanding personal triggers, building rapport and being socially aware, respectful and empathetic with the other party leads to more positive outcomes. By focusing your discussions on potential product value, you are more likely to succeed in securing win-win agreements.
Also published here: The art of martech vendor negotiations
