3 Easy Steps to Dramatically Improve Your Sales Close Rate
Why Do Some Deals Close Quickly While Others Drag On?
Have you ever wondered why some deals wrap up in a flash while others seem to drag on indefinitely? I'll share three practical steps that can help you boost your close rate significantly.
Step 1: Understand the Buying Process
The first step to improving your close rate is to have a deep understanding of your prospect's buying process. It’s amazing how often this critical question is skipped. By asking your prospect about their buying process, you gain a detailed blueprint that guides you through each stage of the sale.
Ask your prospect questions such as:
- What are the next steps in your buying process?
- What needs to happen for you to move forward?
- Are there any additional decision-makers involved?
This will help you identify key details such as who the decision-makers are, who will sign the contract, and a realistic timeline for closing the deal. It will also reveal whether they are considering alternative solutions and any potential roadblocks. Having this information puts you in a much stronger position for closing the deal.
Step 2: Make a Financial Case
The second step is to make a compelling financial case for your solution. Your prospect needs to justify the cost of your solution. Show them that the value they will gain from your solution far outweighs the cost. In other words, demonstrate a positive return on investment (ROI).
Conduct a financial analysis considering the following:
- Expected revenue increase due to your solution
- Additional costs that may incur
- The delta to show the additional profit
You might need to gather some of this information through your internal champion, as it could be sensitive or not publicly available. By showing that your solution will recoup its costs and provide additional profit, you lower the barrier to entry for your prospect. This will also resonate strongly with the financial decision-maker who has the most to gain from your solution.
Step 3: Lower the Barrier to Entry
Finally, lower the initial barrier to entry. When I initially started selling software, I would ask prospects about their average expected spend and use that as the minimum spend level in their contracts. However, I found a significant gap between what prospects said they expected to spend and what they were willing to guarantee in a contract.
A friend who was consistently closing deals advised me to use the lowest minimum possible. This strategy proved effective. By reducing the minimum spend, you ease the contract's perceived risk, making it easier for prospects to sign. They no longer worry about potential financial difficulties, such as losing a client, and are more inclined to commit.
Recap of the Three Steps to Boost Close Rates
To recap, here are the three easy steps to dramatically increase your close rate:
1. Ask Prospects About Their Buying Process: Gain a clear understanding of the roadmap to securing a deal.
2. Make the Financial Case: Demonstrate that your solution is a smart investment with a positive ROI.
3. Lower the Barrier to Entry: Reduce the perceived risk and make it easier for your prospect to sign the contract.
Next Steps
By applying these three steps, you should see a significant increase in your close rates. For more tips on securing next steps in any meeting, check out this link on how I secure next steps in 5 minutes. Also, don’t forget to join the waitlist for my upcoming book, To Seller: How to Crush Your B2B Sales Quota, coming out this fall.
Remember, if you’re not helping, you’re not selling.
