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 closing 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 always hold a massive prospect list that's constantly changing but I'm struggling to get my deals closed. The following is how 85% of my potential deals go:
(before date I promised to follow-up on)
(day of decision)
(day after decision):
"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?"
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 certainty that you are selling to your prospect's most important buying criteria, your proposals have a low chance of success. You can bet that the competitor who wins the deal, knows just what to put into his proposal before he sends it out.
You need to get very clear on what is most important to your prospect. You do this by asking the following questions when you first interview the prospect:
- Why are you planning to purchase this new computer network now? - What is most important to you in a new computer network? - Why is this important now?You also need to know who the likely competition is that is currently being favored (there is almost always someone with the inside track). One way to ascertain this is by inquiring about similar or related purchases made in the past. Find out which vendors they bought from and why they were awarded the contract.
Ask if any of their past vendors are bidding for this deal. Ask why wouldn't they buy from those vendor(s) bidding on this deal if they bought from them in the past.
Ask the following question about each past vendor bidding on the deal separately to determine who is being 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 asking about 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 compelling reason why they would switch to a "new" vendor, your odds of closing are going to be very low.
How well do their current vendors meet the "what's most important" to the prospect criteria?
After you've thoroughly discussed the vendors that they have current business relationships, you can easily ask about any other new vendors that they are considering. They'll likely open up to you on this now because you greased the conversation by getting them to talk about their current vendors first.
If they are reluctant to answer questions about other vendors, then tell them you are selective about who you give bids to. If you know whom else they are evaluating, then you will better know if you can help them and should bid on it.
>>> The lesson here is don't do a proposal unless you can PROVE that you offer an advantage in meeting their key criteria. Being me-too is not enough because it is likely that there are already vendors they do business with that they prefer and know better than you.
By rigorously qualifying your prospects, your closing ratio and total sales will increase significantly. You'll be happier also because not only will your bank acount be fatter, but you'll be working with people who want to work with you.
© 1999-2004 Shamus Brown, All Rights Reserved.
Shamus Brown is a Professional Sales Coach and former high-tech sales pro who began his career selling for IBM. Shamus has written more than 50 articles on selling and is the creator of the popular Persuasive Selling Skills CD Audio Program. You can read more of Shamus Brown's sales tips at http://Sales-Tips.industrialEGO.com/ and you can learn more about his persuasive sales skills training at http://www.Persuasive-Sales-Skills.com/
The question: "When should a growing company slow down its... Read More
Benefits are what motivate people to purchase from you, right?... Read More
You're not alone. Most people are uncomfortable walking into a... Read More
Ever feel like you were "just a salesperson"? I think... Read More
Remember those school exercises that started "Compare and contrast....yada yada... Read More
There are many fund raising ideas on the market today... Read More
Sales is all about negotiating. You are negotiating from the... Read More
If Chicken Little were alive today he wouldn't be running... Read More
Many companies are looking to improve upon the speed, security,... Read More
Hello everyone, hope your day is going well! I know... Read More
So often sales men and woman are the very people... Read More
Going into your workday and waiting for things to happen,... Read More
Part one of this article is available at ... Read More
When buying something, you can buy in one of two... Read More
The leads marketing delivers to the sales team never seem... Read More
In the last decade, the Internet has become a major... Read More
You can make a difference in the second half! You... Read More
If you live in England then you will already be... Read More
Have you ever wondered why some people use long sales... Read More
"THE ANSWERS (1 - 5) ARE HERE!!!"Question 1) List the... Read More
Hello Everyone: Here's a unique look at learning how tosell:... Read More
Selling "-abilities": Reliability (Part 1 of 4) Most salespeople... Read More
Manufacturers and distributors are rolling out more sales incentive programs... Read More
How many of you have a corporate web site? Everybody... Read More
A few days ago, I was signing copies of my... Read More
A key method of our survival in the business and... Read More
I know, don't groan. You have to do them if... Read More
Female mannequins are very common in clothing stores. They are... Read More
This article is meant to inform. Please don't construe this... Read More
Many stores on a budget choose to buy a used... Read More
So the other day I'm watching the movie The Matrix,... Read More
Imagine being in a crowded concert or bar. All of... Read More
The above quote, "Eighty percent of success is showing up."... Read More
I've been using a technique that has helped me to... Read More
"Accepting the consequences, good or bad, will free you; take... Read More
One of the most useful and fundamental communications lessons that... Read More
When you are in sales and you come across a... Read More
Would you pay $12,500 to discover the keys to great... Read More
BackgroundThere's a conundrum that currently exists between the customer and... Read More
Just about every clothing store uses mannequins. There are many... Read More
Many times in the process of making a sales presentation... Read More
A completed communication consists of a sender and a receiver.... Read More
Have you ever sat through a movie and got to... Read More
Many companies are looking to improve upon the speed, security,... Read More
As I prepare this issue of this Newsletter, at 37,000... Read More
Business owners of long standing know the cardinal rule "take... Read More
The success of a small business depends upon a steady... Read More
1. Sell your products at a wholesale price to retail... Read More
Successful salespeople have the ability to turn the customers they... Read More
You've polished your sales page over and over againuntil it's... Read More
After our first half-hour telephone coaching session, when asked what... Read More
Selling your services to corporations is an attractive proposition. The... Read More
Instead of giving your customers or potential customers a choice... Read More
If you were selling a mansion, and you were selling... Read More
A Simple TruthDo you have the right stuff?Are you consistent... Read More
We use this method to find new cleaningcustomers, and it... Read More
I just got off the phone with a friend of... Read More
1. Mail to your customers more often. If you are... Read More
So the other day I'm watching the movie The Matrix,... Read More
When a request for proposal (RFP) comes in, you get... Read More
Many stores on a budget choose to buy a used... Read More
Will you do just about anything, including sending out hundreds... Read More
We are complex. We confidently assert that we are independent... Read More
Any time a clothing store opens or expands, they must... Read More
The time comes for all mortgage brokers and loan officers... Read More
How much extra money could you make by closing just... Read More
Sales |