Should Your Closing Ratios Be much Higher?
Does your sales organization have more than enough leads coming in? Are those leads being squandered? Are you holding your sales manager accountable to the right things? Do you not have a sales manager and think you cannot afford one? Do you know what your sales manager should be doing? Do you understand your sales pipeline? When was the last time someone spent significant time observing and listening to calls with each of your salespeople to spot opportunities to improve your sales process?
Are You Throwing Away a Ton of Money?”
If you don’t have good answers to the above questions, you are throwing away a ton of money. In my article “Are You Maximizing Your Business Valuation?” I referred to an owner who lost approximately $5 million or one-fourth of his sale price when he sold his business prematurely because he could not obtain external financing. One of the ways we turned around his business to become attractive to buyers was by answering those questions. We had increased growth by 70% and cash and profits by significantly more than that in nine (9) months by addressing the above questions. When we started, the business had a close ratio of approximately 38%. We were able to help him increase it to above 60% in six (6) months.
Does your organization have a sales process that all your salespeople should be following? Are they following it? How well is it working? Are you measuring success at each stage in the process? Are there differences in results between salespeople? What are your doing about the differences? Are you focusing on leading indicators such as activities that occur in the first call, or on lagging indicators (e.g. closed deals)? Do you know which leading indicators are the most important factors in contributing to lagging indicators? Do you know why some salespeople perform and why others don’t? Is your sales manager respected by his team members as someone that can help them get better at selling?
By developing better answers to the above questions you can dramatically improve the increase in your sales. If you are interested in maximizing your growth, let’s schedule a time to further discuss your business. Call us for a FREE consultation (305) 722-7213.