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. Be Engaged Throughout the Decision Making Process.
Getting engaged throughout the decision making process means making a commitment to nurture and educate prospects while they are in the “investigator phase” – when a prospect is trying to figure out how to make a buying decision versus who to buy from.
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 will be helping them formulate 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 it is an indicator that you will 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.), which is when you’re expected to be on your best behaviour, prospects will come to the conclusion 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 reliable, and providing prospects with precisely the information they require to make an informed decision, “closing the sale” simply becomes a 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 that 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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