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Increasing Sales Closing Ratios

4 Aug, 2003 By: J.J. Morrison imageSource

Increasing Sales Closing Ratios

Ask yourself this
simple question: does your company need more salespeople? In today's economic
world, many companies feel the need to hire and train more sales representatives
in order to keep up with the competition and stay afloat in the market.

Here's another
question: Does your current sales staff have so many sales leads and possible
deals on the table that they can't handle anymore? The answer is usually an
emphatic "No." So, actually, you do not need more salespeople, what
you really need are more machine sales. To have more machine sales, you need to
use the most up-to-date and effective business strategies and procedures
available today

Have you ever
considered what would happen if you could change the closing ratios of your
entire staff to that of your best closer? By utilizing state-of-the-art
marketing techniques and strategies, the need for additional sales
representatives in the field is decreased and a stronger, more effective sales
staff is created. A properly implemented marketing and training program will
increase the closing ratios of the sales staff, enabling them to potentially
increase sales by three to four times the present total volume.

In the old days,
sales territories were allocated to accommodate a manufacturer's coverage
requirements. Reps did a lot of cold calling, going door-to-door or
building-to-building using every sales tool available to save time and money.
Cell phones, beepers, home telephones and e-mail have made communication
quicker, but these tools alone are not sufficient to increase closing ratios and
promote profitability.

It was once said
that good closers are born, not made. The reason for this is because companies
often had to go through 400 salespeople before finding that one person who could
close most of their deals. Good closers have always been a hard breed to find.

It is your choice:
go on the long expensive hunt for the illusive "born closer" or invest
wisely in a solid marketing plan for your business and an innovative training
program for your current staff.

is Key

In today's market, sales are becoming more and more
difficult. Part of the reason is the increase of more complex equipment.
Connectivity has emerged as a specialty item in every segment and classification
of the business. For example, attorneys require a knowledgeable salesperson who
understands their business in order to intelligently talk about the applications
and benefits of connectivity. Medical offices, accountants, and schools all have
special needs that salespeople must be aware of in order to help them. These
days, even experienced older salespeople are feeling the crunch and have to grab
onto the new learning curve. This is simply an application learning curve and
has nothing to do with the "art" of closing a sale.

What about new or
less experienced salespeople? They have to learn about much more than the
application of connective equipment. There are issues to address such as time
management; getting prospective customers; successfully scheduling appointments;
properly presenting a demo; learning about hot buttons (HBs) and primary
objections (POs); and generally just how to stay focused. All this has nothing
to do with learning the artful, priceless skill of closing a sale.

Earnings Through
Example Taking a look at the graph below, you can see the vertical bars A-J
represent 10 salespeople. The weakest person is closing their sales at a mere
three percent. The next person is at six percent, and the scale escalates from
18 to 60 percent with the best closer at 80 percent.

The white area
represents the total percentage of sales actually closed by the sales staff. The
black area represents the percentage (433 percent) of recoverable sales that can
be gained by using a training program to bring the closing ratio of the entire
sales staff to that of your very best closer. A 433 percent increase in sales is
a substantial boost to any company's bottom line.

So, what does it
take to get all of your sales staff to become good closers? By taking advantage
of the latest technology and best strategies available to help a company improve
sales, businesses can stop the revolving door of continuously hiring salespeople
and invest in a 30-45 day training program that will allow the staff to increase
their marketing approach and realize their profit potential.

- - -

CEO of Servco Management, J. J. Morrison, specializes in the development and
implementation of profit generation programs and business strategies for
document distribution dealerships. For more information call 1-800-517-7900 or
email us at servco@servcomanagement.com and request your free copy of our
introductory package.

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