CultureWizard clients are global organizations with sales teams working across many different cultures. Understanding culture can be critical in developing relationships with new prospects and for effectively selling across cultures. To illustrate we share a real-life experience:
John, an American sales representative for a women’s clothing manufacturer, visited a prospect in Japan. It was his second meeting with Sato-san, and John felt they had a nice relationship. Consequently, John decided it was time to ask for the order.
To his surprise, when he quoted the fee, Sato-san fell silent. In his discomfort with the silence, John assumed that he had surprised Sato-san with the amount and, because he had margin, quickly lowered the price. To his chagrin, Sato-san remained silent.
Uncomfortable but wanting the deal, John adjusted the price again, realizing that he now had no more margin for negotiating and could do no more. Sato-san told John he would let him know the next day because he had to speak with his team.
Eventually, Sato-san confirmed he was willing to place the order, but the deal was much less lucrative for John and his company, and he wondered where it had gone wrong.
Sometime later, John and Sato-san’s British assistant were having drinks at a bar, and John commented on what a powerful negotiator Sato-san was. The assistant looked at him and asked why he kept lowering his price. He then commented, “All Sato-san was doing was contemplating the deal.”
Sales is A Cultural Game
Clearly, understanding the culture - and in this case, the meaning of silence - would have been very helpful. Cultural differences in Communication dictate different negotiating styles. For example, "Yes" in some cultures means you’re close to a contract; in others, “Yes” means you have the basis for a continuing conversation.
Cultural differences with regard to Relationships as well as Group Orientation will also guide the pace at which negotiations can proceed and who will need to be included in the decision-making. High Interpersonal cultures need to have a relationship established before individuals will embark on a meaningful business interaction. In these cultures, Trust is important if negotiations are to be completed. In comparison, Transactional cultures do not require a strong relationship before a deal is made. In Transactional cultures, trust doesn’t need to be deeply established on a personal level because it is assumed and often protected by law.
How Do You Prepare for a Sales Meeting?
Many aspects of the sales process can be affected by culture. Successful sales teams will understand the role relationships, group orientation, communication, and formality play.
- Research how your prospect regards formality. For example, will you introduced by first names or by title with last names?
- What’s the role of “small talk” in the environment? Will people spend time chatting before the meeting?
- Will people share personal information with each other?
- How will your contacts make decisions? Are they empowered to make decisions independently or is it consensus driven?
- Is your prospect more interested in the technology behind your offering or the benefits it represents?
It’s critical to learn about culture, so that the appropriate sales process can be followed and you can close the deal. The Country Profiles tool on CultureWizard provides practical information on over 150 nationalities to help sales teams develop effective strategies across cultures.
Interested in learning how CultureWizard can help your sales team succeed? Click below to request a demo today.
