Are you getting the expected results for your sales? Get to Know 5 Precious Tips to Increase Your Sales Conversion Rate
Entrepreneurs, business managers and some salespeople seem to agree that lead generation is one of the keys to growing business and a thriving business.
Unfortunately, these are some of the myths the sales industry faces on a daily basis.
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One of the keys to a thriving business is to focus on the ROI of conversions from a specialized, prepared and well-trained sales force.
The more leads your offer receives and doesn’t convert, the more people will be convinced that your offer isn’t qualified to deliver the product they need.
Before talking about how we can improve the sales conversion rate, let’s look at some sales statistics:
- The typical closing ratio of business leads is between 50% to 80%.
- The conversion rate for hot leads is between 30% to 70%.
- The conversion rate for cold prospects with qualified leads ranges from 20% to 35%.
- Finally, the average conversion of semi-qualified leads is around 10%.
You probably spend some money generating leads for your product or service. And depending on your sales conversion rate, you may have to generate 2-10 leads to get a new sale.
How to improve your sales conversion rate
One way to dramatically improve your profits and revenues, without spending another penny of marketing expense, is to improve your close rate.
Here is a practical example of how to calculate the sales conversion rate: Let’s say that the cost to get a lead is 300 reais, which for the sale of a product with a high cost is not bad.
And, let’s say your product or service costs around 15 thousand reais.
With a sales conversion rate of 20% you need 5 leads to make a sale, and that way you’re spending 1,500 reais on leads, plus sales commissions, which if it’s 10%, represents another 1,500 reais.
Its total cost of acquiring customers is 3,000 reais, that is, 20% of revenues. Depending on your margins, this might not even be a bad thing.
But let’s say you have a better rate of closes and sales conversions, and instead of 5 leads, you only need 3 leads for a sale.
This way, you reduced your cost of sales by 600 reais, or 20%, which ends up going straight to your bank account.
Here are 5 simple tips that you can implement quickly that will cost your business significantly less and have a huge impact on your sales.
The 5 Tips on How to Increase Your Sales Conversion Rate
#1. Never send anything to your prospects
You may have had this experience. You give your speech and your prospect and say, “send me a presentation.” Because that’s usually how salespeople are trained.
But when you follow up with your prospect, he says he has received your material, but hasn’t had time to look at what you sent. In the end, it asks you to get in touch in 1 week.
You can already see where this is going, can’t you? So when you send material to the customer, you have totally lost control of your sales process.
Instead, when the prospect tells you to send a presentation, the best thing to do is ask the client: What would you like to see that wasn’t clear in our conversation?
This simple change in mindset will have an immediate impact on your sales conversion rate.
That doesn’t mean you’re going to close all opportunities, but at least you’re in control of the process.
#two. Monitor the results
A famous saying was that we cannot improve what we cannot measure.
Understanding this simple phrase will make a huge impact, not just on sales, but on your company’s bottom line.
Many entrepreneurs and managers end up forgetting about monitoring metrics, when in fact they need continuous management.
And you shouldn’t just measure your results, like each customer’s revenue number.
Obviously, you have to keep track of these metrics, but you need to keep a close eye on things like the lifecycle value per customer, the profitability of an operation, number of leads becoming customers, number of daily conversations, time the sales cycle, and the conversations needed to close a sale.
Spend time understanding your sales process and develop metrics for everything.
It’s never an exaggeration.
Then start tracking.
And in a way that’s hard to explain, the simple act of tracking down the right things will improve your results without having to do anything else.
Find a model to analyze your performance metrics.
See also: How to Create a Sales Email to Customers That Will Increase Your Response Rate
#3. Ask more questions
You ask questions for more information, correct?
No. Most salespeople think that the closing is where sales happen.
Successful sales professionals know different.
The real reason to ask questions is that when asked well, the prospect works through his thinking to be more open to the sale.
Each of your questions should be designed to uncover more pain from your client. When the pain becomes real enough for them, they begin to feel a much stronger need to own what you’re selling.
Each question exposes the customer’s needs, what they want and what they don’t have. They should point to poor customer performance in any area that your product or service can help them.
And you keep asking these questions until the customer is practically begging you to tell him how you can help him.
Check out: 23 Sales Persuasion Techniques to Help Close More Deals
#4. Create a case and let your ROI speak for itself
Many salespeople think an ROI is too complicated to communicate, leaving their prospects to figure it out for themselves.
This is a huge mistake, because many potential customers only spend money on things that could turn into some return.
Your product or service may be wonderful, and have its own merits, but if you don’t provide a strong ROI, chances are your prospect won’t buy from you simply because they can’t justify the sale financially.
Discover how to credibly communicate your ROI. Sometimes it’s easy, sometimes it’s not. But don’t let this stop you.
Having a case with an impactful ROI is often the key to closing the deal. Make your prospects believe your offer is irrefutable.
#5. Write an objection book
Top performers in sales know that objections are nothing more than unanswered questions. And when your prospect has unanswered questions, they won’t buy.
Improve your closing rates by doing these 3 simple steps:
- Make a list of all objections that come up in your sales process.
- Then turn each objection into a question.
- After that, write down solid answers to each of these questions.
Having an objection book is the best way to make sure you can handle your prospects’ concerns.
After answering the objection, you can ask if there is something else between you and your client’s decision.
Address your customers’ concerns, then ask for the sale again.
Are you ready to increase your sales conversion rate?
Certainly, these 5 tips aren’t the only ways to improve your sales funnel’s conversion rate, there are other ways to do that.
But each of them will make a significant improvement in your sales conversion rate.
By practicing these 5 steps, you’ll see your sales improve considerably, and you’ll even know what’s wrong, as you’ll find out which metrics are working and not working.
If you need more tips to sell more, you might want to know some secrets to becoming a professional B2B seller.
Once you’ve implemented them in your sales process, share your results with us in the comments.
This will serve as an incentive for other troubled people to increase their sales conversion rate.