Business owners and executives often tell us if they can just get in
front of a prospect, they’ll almost always “close the sale”. Based
on our experience, people tend to overestimate their close rate
success. Most businesses don’t even measure close rates, but if they
did we’re confident we would be proven right.
Regardless of your actual close rate success, the goal should always
be to make it higher. What can you do to optimize it?
Increasing your close rate just a few percentage points will have a
significant impact on results. Using some simple math, if we submit
25 proposals over the course of a year at an average proposal value
of $100,000 and close 33% versus 20%, we would generate roughly
$300,000 in additional sales – with the same effort expended on
sales and marketing.
We need to make the most of those opportunities when a prospect is
actually willing to meet with us and listen to what we have to say.
If we don’t, those golden opportunities may be lost for good.
Below are four specific things you can do during the sales process
to increase your probability of success:
1. Get Engaged as Early as Possible in the Decision Making
Process.
Getting engaged early means making a commitment to educating
prospects during the “investigator phase” - when a prospect is
trying to figure out how to make a buying decision, versus
who to buy from
(read the newsletter “Where are Your Prospects in the Decision
Making Cycle?”). The earlier in the investigation phase you
engage, the higher your probability of success because: 1) you’ll
establish credibility by creating the perception you’re a subject
matter expert, 2) there’s an increased level of trust if you’re
focusing on prospect’s best interests versus trying to force a
solution on them, 3) prospects will feel obligated to return the
favour – the law of reciprocity is a powerful source of influence,
and 4) it allows you to dictate the rules of the game – you’ll be
educating prospects about the factors on which they should base a
decision.
2. Make Sure You or Your Salespeople are Well Versed in
Consultative Selling.
People don’t like to be sold – they want you to understand their
requirements and feel assured you’re acting in their best interests.
Being consultative is about listening versus telling. Using “sales
gimmicks” and “closing tactics” will result in a wary prospect.
Buyers have become too sophisticated, and too jaded, to be pressured
or tricked into buying something. Yes, there are still suckers born
every day, just not nearly as many of them.
3. Be Reliable During the Sales Process.
This will not only convey to prospects you really want their
business, but that you’ll follow through after the sale. Conversely,
if you’re unreliable during the sales process (not submitting a
proposal on time, not providing direct answers to specific
questions, being late for appointments, not following up as
committed, etc.) when you’re expected to be on your best behaviour,
prospects will conclude they won’t be able to rely on you after the
sale.
4. Have the Sales Tools You’ll Require to Close the Sale “at your
fingertips”.
If you know prospects consistently ask for referrals, or
testimonials, or return on investment information, or product
specifications, or examples of work performed, or a detailed
explanation of services, etc., then have these materials ready
before the prospect asks. If they don’t ask, that’s fine. However,
chances are some prospects will. If these tools aren’t available, it
could cast doubt and open the door to competitors, or at the very
least prolong the sales cycle which is something you want to avoid.
Eliminate these risks by developing all the tools you may need
during the sales process. By having them at your fingertips, you’ll
maximize your probability of success.By
engaging early in the sales process, being consultative and clearly
understanding the prospect’s wants and needs, being reliable, and
providing prospects with precisely the information they require to
make an informed decision, “closing the sale” simply becomes the
logical conclusion to a job well done.
There are of course other things you can do to optimize your close
rate success. The point is you are in control of planning and
executing a well thought out sales process that will increase your
close rate – and ultimately your revenues and profitability. |
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