1. Sales is a Ratios Game
Most people think that sales are a numbers game and this is almost true, but not quite. Sales is actually a Ratios game and to be successful you need to understand the ratios in your business.
Aim to maximize the ratios between
- Suspects to Prospects
- Prospects to Meetings/Calls
Meetings/Calls to Orders.
Average Order Value - explore ways that you can increase this by Up selling, Cross Selling, Related items, Add ons, Multiple Channels into companies - other departments/divisions, Linked products/services that you can sell in e.g. If they bought level 1 previously, will they need level 2 now.
2. Talking About Price
Price is very often a subject that sales people are reluctant to broach. There is often a fear that if price is introduced at the wrong time, it will scare away the customer, so it is essential that you establish the customers' intent at an early stage otherwise you may well waste time with browsers rather that buyers.
Establish budgets at an early stage; don't waste your time talking at length to suspects who do not have the money to proceed, so establish early on whether they are a serious prospect.
Talk about Investment not cost, investment implies a return, so it will deliver an outcome.
Cost is a drain on resources.
Establish Value Statements; put a value on your product or service that outweighs the cost.
Remember that price is not the only buying motive, if it was, then there would only ever be one supplier of anything (the cheapest).
Too many salespeople are obsessed with price.
Remember: - Discounting is the Refuge of the Lazy Salesperson.
Price is rarely the issue; it is often used as an excuse to delay the decision. Use the opportunity to explore whether price really is the sticking block or whether there is another underlying problem.
If price really is the problem, the likelihood is that you have not sufficiently established the value and you need to re-emphasize your value statements.
Remember: - In the absence of value, you will always argue price.
3. Suspects and Prospects (What is the Difference)
A lot of people get confused between suspects and prospects and therefore overestimate their potential market, so what is the difference?
A suspect is any organization or individual who could possibly have a need for your product or service.
Prospects on the other hand are:-
Qualified leads that all have one thing in common.
They are the M.A.N, they could also be a woman of course, this is not a gender thing, nor is it sexist.
Prospects have
M. Money
A. Authority
N. Need
- They also have the intent to act (buy) in the near future.
If they do not have all three, you are either talking to the wrong person or they are a Suspect, plain and simple. Do not be confused by the two.
4. Prospecting
Ask for referrals from satisfied regular customers. Timing is everything and the best time to ask is directly after you have closed a sale, whilst the customer is on an emotional high.
Cultivate advocates from amongst your regular very satisfied and delighted customers. Train and reward them, they may well be reluctant to talk to others in detail if they are unsure of the range of what you can do and how you do it. Always take the time to thank them and give feedback on the status of their referrals.
I recommend that you call them and then follow up with an e mail, a card and/or a gift. Feeling appreciated goes a long way.
Look after them and they will look after you.
