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DOUBLE YOUR CLOSE RATIO
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Research tells us that on average close ratios are a meager 20%.
That means if you have ten qualified leads you will close two of
the ten. Ouch! Not something to be proud of. This assumes the
customer has a need, a budget (bag of money) and the desire. It
also means that customers are closing more often than we are. If
we experience 20%, their close ratio is 80%. They sell us on the
concept of not doing business with them. They offer a multitude
of excuses, objections and, justifications all in the interest
of selling us their “no”. The problem is we are too quick to
accept their rejection and with a bruised ego lollygag back to
the adult day care centre (the office) to lick our wounds and
seek support. Sound familiar?
Confirming the sale is not an event but a process that begins
within minutes of meeting the customer. Customers are quick to
pass judgment, wasting no time deciding if you are likable and
trustworthy. Impressions are formed within the first eight to
ten seconds. Hence, the first step to doubling your close ratio
is to ensure the first six steps of your Sequential Model have
been completed to the customer’s satisfaction.
What is a good close ratio? I would suggest that as a sales
entrepreneur your target should be no less than 50%. That means
if you approach ten potential customers, ones with a need and a
bag of money, you should confirm at least five. Sound daunting?
It isn’t. Some top notch sales entrepreneurs are confirming up
to 75% of potential, qualified customers.
Start by evaluating your current ratio. Track it for a month or
two and reality will quickly reveal itself. It may not be as
high as you think it is. Don’t include taking orders from
existing clients unless it’s new biz. Repeat orders don’t count
toward your close ratio. If yours is higher than 20%,
congratulations, you are in the minority. But I remind you, your
objective is 50%.
Proper execution of your Sequential Model will certainly
contribute to doubling your current close ratio. It simply means
building rapport, building trust and focusing on the human
advantage vs. the product advantage. Banish your well rehearsed
glory grove a.k.a. the feature dump. Navigate through the first
six steps of your model and nurture the confidence to ask for
their business. Customers expect to be asked. Don’t disappoint
them. They get irritated by reps who fail to complete the sales
call with no direct close. You represent a potential solution to
their needs so the only outstanding issue is to ask them. If you
don’t, someone else will. After all, you just may have a better
mousetrap. Hence, taking your close ratio to 40% (doubling it)
is not an impossible, arduous objective.
However, I caution you, don’t strive to achieve a 100%
confirmation ratio. You couldn’t handle it. The only people who
close 100% are the kids working in McDonalds. Everyone buys. You
will never overhear this at McDonalds,” no thanks, just
looking!”. They also get paid minimum wage!
I remind you of the three ingredients of a yes; rapport, trust
and asking. 70% of the time sales reps don’t ask for biz.
Shocking but true. They skirt the issue in fear of rejection.
Closing proves to be little more than a request to “touch base”
next week i.e.; “let me give you a call next week and let’s see
where we are at?” The sales rep then leaves with the same thing
he arrived with, nothing.
The time to close (ask the five magic words) is when you have
bridged at least two features to benefits.
Also, know the difference between “no” and “know”. See page 178
in my book “Take This Job and Love It”.
Timbit: in my Synchronized Selling seminars I emphasize that the
best time to close is before you leave!!!
Congratulations on a new outlook to confirming more business.
Your boss will love you even more!!
Tim Breithaupt C.G.A.H.
Author of the Canadian Bestseller:
Take This Job and Love It! The Joys of Professional Selling
Spectrum Training Solutions Inc.
www.spectrain.com
1-800-404-0666
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