3 Tips for Increasing Your Closing Ratio

As you look to improve your sales skills while the economy is unsteady, you'll likely have fewer qualified buyers and, therefore, need to increase your closing ratio.

When I say "close more" I'm not referring to the whole Glengarry Glenn Ross "Always Be Closing!" mantra, or the kind of bare knuckle treatment you would expect to receive in a corner used car lot.

Rather, I'm talking about three crucial steps in the sales process that, amazingly, salespeople often forget to follow faithfully.

Take Your Prospecting Seriously

In common sales manager parlance, "Hunters" are the salespeople who have a knack for going out, cold calling, and drumming up business.

"Farmers" are salespeople who do better serving business that's been put in front of them, whether it's handling existing clients or dealing with people who walk in the door in a retail setting.

In a down market, farmers need to learn to be hunters, even if it's not their forte. If they don't stretch themselves and learn how to go get the business, they risk going hungry.

Successful prospecting is a whole other series of articles, but in brief make a list of who you're going to approach: builders, designers, architects, retail stores, whoever. Even tap existing clients for referrals.

Work that list from top to bottom. Make every effort to get in front of decision makers and make things happen. You'll get more deals that way than by leaning up against a counter in your showroom waiting for it to happen by accident.

Qualify In-Depth

Nothing is more important than qualifying prospective clients.

It's not just learning what they think they need, but also uncovering hidden needs, hot buttons that will lead to buying signal, and sometimes even oblique signals that lead you off on a profitable tangent you hadn't initially sensed early on in the discussion.

When qualifying, you need to be genuine and have an honest dialogue.

Years ago, I often discussed sales skills with a client who owned a car dealership. His top producer, who sold more than three times as much as his other salesmen, was a Russian emigree who claimed to be a former KGB colonel.

His ability to build rapport with customers and elicit information from them was a product of his experience grooming contacts and ferreting out intelligence, now turned towards free enterprise.

I guarantee he approached qualifying clients with a high degree of detail and professionalism.

Follow Up Consistently

No one, no matter how good they are, closes every prospect on the first meeting.

The "I'll-be-back" customer is dreaded on sales floors everywhere, but salespeople need to be proactive. Collect contact information from your prospects and follow up diligently.

You don't need to stalk them (I did once see a CE salesmen get a restraining order placed on him!). But you need to mine your list of prospects regularly and consistently, and do your best to get to "Yes."

If he says he'll be back tomorrow, call him the day after. If they won't be ready to make a decision for six months, call him back in three.

Use your head, read the situation, and take the time between now and then to build rapport. Make sure that he knows you're the one for the job, and be diligent about keeping your promises to follow up.

This is a rare trait in salespeople, sad to say. When I'm shopping for a big-ticket item, and I'm not ready to buy, I always test salespeople by asking them to follow up with me. I'm not even leaving it up to them, I'm asking them to do it.

Amazingly, on average, four out of five salesmen don't do it. Ever.

Who do you think ends up getting that business? You don't have to be Dale Carnegie to know the answer.

As business owners, you need to regularly revisit your install best practices. So too do your salesmen need to analyze their activities and identify the weaknesses that are costing them money.

Fix those weaknesses, work the sales process, and both you and your salespeople will see a higher closing ratio and better business prospects.

Lee Distad is a freelance CEDIA Certified Professional Designer who offers design and process consultation to firms in the Custom Installation industry, as well as copy writing and other professional writing services. Lee’s business and industry blog can be read at http://www.leedistad.com