Sales Training Academy

It is one of my favourite topics, because it defines the sales process and highlights that a one size fits all approach makes the job so much harder.

As important as it is for a business producing anything from raw materials to know exactly what goes into the finished product for costing purposes, so too must the sales department know exactly what ingredients are needed to produce a certain turnover. So the ratio between how many leads or contacts are needed to close a certain amount of business is vital. But the other ratios in the sales pipeline are as important; the number of leads converted to appointments; the number of appointments converted to sales; and the number of existing clients converted to new business.

Some companies seem content to accept certain closing ratios, and the justification is that the product is a “harder sell”. As an example, Company A is selling battery backup power units and is enjoying a 37 in 100 closing ratio, converting leads to buyers. Company B is selling Cellphone packages, and is converting a mere 11 in 100. This is creating a double edged sword for Company B because not only are they experiencing high staff turnover due to frustration and lack of motivation, but they are having to pay an “over the odds” commission rate to try and keep their existing telesales team happy.

It is possible for Company B to have a closing ratio equal to Company A, but only if they change the sales pipeline (process). You see currently Company A’s leads are a end user and business database and it seems like the whole country wants what they are selling. Company A is starting the sales call with “Hi Mr Smith, I am calling on behalf of Company A Uninterupted Power Supply and we believe we might be able to help you in the current power crisis“. Notice here that Company A has created a need in their opening statement.

Company B on the other hand is opening the sales call as follows:”Hi Mr Smith, I am calling on behalf of Company B Cellular and we are offering a great deal on a cellphone package for this month“. The problem here is they are getting the same objections 89 out of 100 times:

• I already have a cellphone package (the salesman has not created a need)
• I don’t need another cellphone package (the salesman has not created a need)
• I am going into a meeting (the client is not interested in what you are selling)
• I don’t have the money now (the client is not interested in what you are selling)

The truth is that Company B has failed to CREATE A NEED or identify the problem. Company B could solve the problem as follows by changing the opening line:

“Hi Mr Smith, I am calling on behalf of Company B Cellular and I am hoping I could save you some money on your monthly bill even if you are a contract customer“.

Here Mr Smith could reply with any of the following, without it throwing the sales person off his track:

• “I am a contract holder, but not with you, how could you save me money?”
• “I am not a contract customer”
• “Save me money how?”

“I don’t know if you are aware of this, but because many people keep their handsets long after their 24 month contract has expired, they carry on paying the monthly rate which includes an amount for the handset, long after the handset should have been paid off? At Company B Cellular we give you the option to put that extra R200 in your pocket every month, and obviously over a two year period, that would be R4800. Would you like me to explain to you in more detail how it would work?”

In the background Mr Smith is saying “guys, I will be in the meeting in a second, I just want to finish this important call” because the sales person has created a need, and the client wants what he is selling.

The improvement in the success rate or closing ratio is due to two main factors:

1. Creating the need in the opening statement by using the biggest benefit
2. Speaking to everyone, but only selling to people who need your product.

Just pick up the phone and try it!

Eugene

P.S. If you email us details of your script, sales pitch or product, we will gladly try and supply you with more alternatives to make your telesales more interesting, just go to the Contact Us page and complete the form.