Lately, we have been focusing on monitoring your sales ratios and improving your score. And we have been using the following ratios as an example from which to coach:
- 1.42 raw leads to 1 qualified lead
- 10 qualified leads contacted to schedule 1 appointment
- 1.16 appointment scheduled to complete 1 presentation
- 2 follow up contacts to close 1 sale
- 3 sales presentations made to close 1 sale
- average commission per sale = $2,000
Today, we will focus on how to improve your closing ratio.
Obviously, improving your closing ratio is important. If you can move your closing ratio from 3-to-1 down to 2.5-to-1; based on making 150 presentations per year, you would close 10 extra sales per year – a 20% increase in both sales and income!
Traditional sales training over the years basically taught closing as a technique. I certainly don’t want to fly directly into the face of traditional sales training and shake my finger… but that is really only part of the picture if you want to improve your closing ratio.
You absolutely must be able to ask for the order, papers to be signed, etc. However, if you have not laid the proper groundwork, trying to “close” the sale will just make you seem amateurish and unprofessional.
To move your closing ratios – add the following to your process.
Bring Value Before, During, and After The Sales Process:
- Provide business or personal value to the prospect even before you request the appointment via publications of interest, incentives, etc.
- Understand how the prospect benefits from implementing the product or service you will recommend – and become an expert at communicating that value. Value that is not communicated is really no value at all. Keep stacking up the customer’s value so that the scales are tipped heavily in their favor.
- Refer important business or services to your prospect – and later to your customer. Who stands a better chance of closing the sale – someone who has already brought new revenue to the table for the prospect – or a stranger trying to “close” a sale?
Ask Great Questions That Get The Prospect To Say What the Prospect Needs To Hear:
- Do your homework and understand what your prospect’s needs may be prior to meeting for your discovery period
- Design great questions that get your prospect to open up and discuss those needs and any others you may have not known
- Design great questions that get your prospect to discuss issues and insights that may be coming toward them without them being aware
If you design and ask great questions, your prospect will lay out your sales strategy in front of you. All you will need to do is make it happen for them.
Tomorrow, we will discuss what to do with the answers to those great questions. This strategy will make closing the sale the easiest part.
How many different needs do you normally uncover during your discovery process?