Digital Negotiation: Definition & Use Cases

Technology has revolutionised the modern business world. From communication and collaboration to sales and marketing, digital tools have impacted every aspect of companies' operations.

The digital revolution has also influenced how businesses negotiate, with more companies now relying on virtual tools rather than traditional forms of communication. In fact, one survey revealed that 67% of 18-34-year-olds prefer tech-based to face-to-face negotiations.

Whenever a new generation enters the workplace, they bring change with them. This can range from changes to social norms through to updating processes and making new tech commonplace. Despite what the idiom might say, you can indeed teach a dog new tricks sometimes. Let's take a closer look at the advantages of negotiating through digital means, and the support Scotwork can provide in this next age of business.

What are digital negotiations?

Digital negotiations use online platforms and tools to carry out meetings and reach agreements. This enables professionals to communicate and negotiate remotely instead of relying on traditional face-to-face meetings.

What tools can we use to negotiate online?

Tech has come a long, long way; it provides options for companies to use to support digital negotiations and improve the overall efficiency of the negotiation process. This includes:

Video conferencing platforms

Platforms like Zoom and Google Meet are commonplace now for internal meetings in addition to client-facing ones. These video conferencing platforms allow parties to interact face-to-face and mimic the experience of in-person meetings from the comfort of their own offices.

Collaborative tools

Tools like Asana and Google Docs allow companies to share, edit, and collaborate on documents in real-time. This helps participants manage negotiation tasks and deadlines efficiently.

Instant messaging apps

Apps like Slack or Microsoft Teams allow professionals to communicate asynchronously and continue discussions outside of scheduled meetings. These platforms also track and keep an accurate log of discussions for future referrals.

Electronic signature software

Software like DocuSign and Adobe Sign allows parties to sign documents and contracts electronically. This streamlines the closing process and provides a secure way to finalise agreements without the need for printing or posting out documents.

How are digital negotiations different from face-to-face ones?

The most obvious difference between digital and face-to-face negotiations is that the parties are not physically present when negotiations take place virtually.

In face-to-face negotiations, people often rely on facial expressions, body language, and other psychological cues to interpret the other person's intentions and strengthen relationships. There are fewer physical cues in digital negotiations. This means the participants may require more obvious communication to establish understanding and rapport during the negotiation process.

What are the advantages of negotiating digitally?

Everyone must learn to negotiate digitally in today's business landscape as they will inevitably end up on a call with a deal in front of them. However, that doesn't mean that they also can't embrace what digital negotiations can offer. Here are some of the advantages and benefits we typically see from this form of negotiation:

Remove global barriers

Digital negotiations break down geographical barriers, allowing companies to negotiate with clients and partners around the globe without the need to travel to them. Multiple meetings across time zones and with different clients can all be scheduled with the negotiator never leaving their own desk. There is also no need to worry about jet lag or time lost through travel. Everything becomes much more efficient.

Flexible scheduling

Digital negotiations allow businesses to embrace more flexible scheduling. The elimination of travel means that negotiators can commit to changes and reschedules more easily. If a meeting has to be pushed back to next week, it won't be an issue for the digital negotiator, unlike the in-person negotiator, who might only be in that city right now. What's more, rescheduling can be done at the touch of a button through calendar invitations. There is no need for a lot of back-and-forth just to get everyone around the table.

Record of negotiations

Digital negotiation platforms also provide a documented record of the negotiation discussion. Emails, chat logs, and shared documents create a clear digital trail that can be referred back to at any time. This minimises the risk of miscommunication and conflicts later on in the negotiation process.

Embrace negotiation of every medium with Scotwork

Digital negotiations are becoming increasingly popular, and businesses must adapt and develop the necessary negotiation skills to succeed in the digital era.

Scotwork, a leading negotiation training company, offers training courses designed to equip individuals and businesses with the strategies needed to succeed in digital negotiations. Our expert trainers have over 45 years of experience and will teach you the skills needed to navigate the new opportunities and challenges presented by digital negotiations.

Learn more about our comprehensive training programmes by reaching out to our negotiation training experts, or explore our thought leadership articles to learn more about the world of negotiation.

Key takeaways for digital negotiation

• Digital tools have transformed the way business negotiations are conducted, with more professionals now preferring technology over face-to-face interactions.

• Companies can use various tools to carry out digital negotiations, such as video conferencing platforms, instant messaging apps, and other collaborative tools.

• Embracing digital negotiation tools can remove global barriers, improve flexibility, and lead to the most efficient and successful negotiation outcomes.

• Developing the necessary skills through training programs like those offered by Scotwork will enable businesses to unlock the power of digital negotiations and achieve their strategic goals more efficiently.

• The digital landscape continues to evolve, and businesses that embrace virtual negotiation strategies will gain a competitive edge and, ultimately, increase profits.