Improve Your Sales Closing Ratio

Occasionally EGOPOWER readers send me questions or topic suggestions that I feel would be of interest to you. In this issue I give some tips to improve your sales terminating ratio in response to a question Rob Smith wrote me from the UK:

"I sell IT equipment to schools in the UK over the phone. I seem to everywhere hold a massive prospect list that's constantly divergent but I'm struggling to get my deals closed. The following is how 85% of my potential deals go:

First Contact:

• I find a prospective customer
• Find out what they have at the moment and what they want (where they want to be with I.T. in the future)
• I find out when they are looking to buy
• And ask who is involved in the decision making

Next Action:

• I put together a proposal and post/email/fax it to my contact

Second Contact:

• I call him/her to discuss the proposal with them, make sure it's what they wanted and make a few extra suggestions.
• I'll try and have a laugh with them to get some rapport going.
• I'll try & confirm a decision date again.
• Say something like - "is this something that we can go alee with now?" it never is….
• "I'll call you in ? days to see if you have come to a decision"

Third Contact:

(before date I promised to follow-up on)

• "Just motive to make sure everything is OK and to see if you have gathered all the other quotes yet?"
• "how do we compare" - normal response is pretty good
• "is there either I can do erst you have your meeting tomorrow that would help you in making a decision?" - usual response is "No"

Fourth Contact:

(day of decision)

• Won't put me through

Fifth Contact:

(day proper to decision):

• Secretary says he's not there

Sixth Contact:

• Secretary speaks to him and then tells me he's selected a competitor.

"It's quite depressing really and I do put the effort in, I'm sure it's just down to my sales skills. What do you suggest?"

Use Precious Sales Time Wisely

Thanks for writing in Rob. Selling this way IS depressing. I suspect that you are losing your deals very early on. By this I mean that you are expending too much energy on deals that you'll never win.

The decision to send out a proposal should be an important one. Only well qualified prospects that you KNOW you have a high likelihood of winning, merit the effort of creating a proposal.

This is contrary to what many of us learn in sales, which is that is a "numbers game". Send out more proposals, and you'll get more sales the thinking goes.

The problem is unless you know with connection that you are selling to your prospect's most important sale criteria, your proposals have a low aptitude of success. You can bet that the competitor who wins the deal, knows just what to put into his proposal sooner he sends it out.

Qualify mastery And involve More Sales

You need to get very exact on what is most important to your prospect. You do this by requisition the following questions when you first interview the prospect:

You also need to know who the likely competition is that is currently human being favored (there is hardly systematically someone with the inside track). One way to get this is by inquiring random similar or related purchases made in the past. Find out which vendors they from and why they were awarded the contract.

Ask if any of their past vendors are direction for this deal. Ask why wouldn't they buy from those vendor(s) invite on this deal if they from them in the past.

Ask the following question referring to each past vendor nod on the deal separately to determine who is existence favored. Don't just ask "why don't you buy from one of those companies?" Instead ask "Why don't you buy from ABC company? They gave you good installation support last time which you said was very important to you".

By address as regards preferences for their current/past vendors, you will find out if there is a real opportunity for you or if they just are gathering bids to document that they have performed a competitive evaluation.

>>> Unless you can find a imperative reason why they would switch to a "new" vendor, your odds of ultimate are going to be very low.