Your quote-to-close ratio—or closing rate—measures the number of prospects engaged versus the number of deals won/closed within a specified period of time. The formula is: "Number of deals won" divided by "Number of prospects engaged" then multiplied by 100. So for example: if you contacted 100 prospects last month and 20 of those converted to sales, then your quote-to-close ratio for that month is 2:10 or 20%.
Monitoring your quote-to-close ratio is a must. In fact, it is a sales metric we strongly recommend for any sales representative or team. You don’t want your closing rate to go lower month after month, and you also don’t want it plateauing. You want to see a steady increase on your quote-to-close ratio. It’s easier said than done, of course, but it CAN be done.
Here are some ways you can improve your closing rate:
Be very, very clear about your Unique Selling Proposition
Reality check: chances are, you are not the only person selling your product or service. Competition is fierce, and you must stand out from them. Ask yourself, “What is so unique about my product/service?” “What makes my product/service better than the others?” That is your unique selling proposition (USP). (If you can’t think of one, that’s a problem. Time to brainstorm with your sales and marketing teams.)
Once your USP is established, integrate this into your sales strategies, materials, and spiels. Knowing your USP is the best way to improve your sales script. Don’t be shy about how you’re better about competition: embrace it, capitalize on it, and let your customers know about it.
Get to the bottom of the decision-making process
For every prospect/lead, they have a clear-cut process for making decisions on anything. You as the sales rep must get to the bottom of this. How? Find the answers to these questions:
- What are they looking for? What do they need (or want)? What are their criteria?
- What are the steps in the process? What should you do beginning from who to contact as a first step. Then identify who are the people involved in each step.
- Who is the decision maker—or the person who has the power to say “yes.” In some cases, there are “influencers” to consider—these are the people who will not make the decision, but can influence it. It’s important to know them, too.
Use social proof
Social proof is a social phenomenon wherein people copy the actions of others in an attempt to undertake behavior in a given situation. One example of social proof is product reviews. There’s a reason every shopping site shows reviews of products they’re selling. Favorable reviews positively influence a buying decision, so if you have client testimonials that show social proof of how good your product/service is, by all means highlight them. Here are other ways to capitalize on social proof so you can make that sale.
Learn from the best
We strongly believe in mentorship, and we also believe that you should take the necessary steps to get better every day. Want to improve your closing rate? Learn from the best and employ their best practices.
Many companies hold sales training, but very few hold advanced sales training. Basic training is learning about the product/service you are selling, familiarizing yourself with all its features, benefits, USP. But advanced sales training covers everything else involved in making a sale: body language, communication skills, engagement, persuasion, prospecting, cold calling, managing expectations, responding to negative feedback, productivity and time management… and the list goes on.
It is critical for companies to invest in the best sales training for every member of its sales team. There are many third-party sales coaching individuals or groups who offer their services—from speaking engagements to one-on-one training. Pick from the best in your area—or have someone fly in especially for you and your team! Trust us, it’s a worthy investment.
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