Society is constantly changing and evolving and businesses need to be mindful of certain factors that can influence business decisions. When entering into negotiations, businesses should be cognizant of the customs, beliefs, practices, and behaviors surrounding the other party. By taking these social factors into consideration, they will have a better understanding of the needs and wants of their counterpart in order to reach a solution. Social factors can greatly affect one’s attitudes and opinions, thus impacting sales and revenue. Therefore, businesses must utilize and adapt to the external social environment in order to negotiate successfully. Here are a few reasons why it is so important for businesses to welcome suggestions for improving their awareness of the social environment.
Understanding Consumer Preferences
Some companies have very strong beliefs towards social issues so businesses need to be aware of such beliefs when entering into negotiations. For example, the company might have strong feelings about energy conservation which would greatly impact their consumer preferences. Some cultures have certain religious or personal beliefs that would affect their opinions on clothing, food, or other social norms. Therefore, it is important for members of your team to adequately research companies prior to negotiations so they can offer ideas and suggestions that might align with the social environment of your counterpart.
Building Trust with Clients
Every negotiation involves risk, which is why it is critical to build trust between your business and your clients. One way to build this trust is by being sensitive to the social environment of your client. By improving the social environment, you are learning more about the needs of your client while respectfully negotiating a deal. Establishing trust is critical to success in any negotiation so it is wise to accept suggestions for ways in which you can build that trust.
Speak Their Language
When you have a deep understanding of the social beliefs of your counterpart, you can align your negotiation in a way that speaks their language. Be cautious of slurs or cultural implications and take time to understand the other party’s history, culture, and perspective. Welcome suggestions for how you can customize your negotiation to respect the needs and beliefs of your counterpart. Doing so sends the message that you are committed to the relationship and this will build a foundation of trust with the client.
