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.

I have been involved in telesales training for years, but as you might notice, my website is still very new. So what in training is important enough to become my first topic of discussion?

Aptly I thought it should be Opening Lines. Everyone claims they understand the importance of opening lines!

“Hello Mr. Big, how are you today?”, ”Do you have a couple of minutes?” and “is this Mr John Franklin Edward Nathan?” all have a very slim chance of success.

If you think about it carefully, the idea is to create a great first impression and convey the biggest benefit of the product or service in the first 20 seconds (your opening statement). If the person has realised that there is something in it for him, he will make time to listen to you. If you need to verify someone’s identity for compliance purposes, you can do it slightly further into the call. If anyone calls me Mr Eugene Bernard Cilliers, I immediately know it is a sales call form a database which lists middle names too, or it is the Receiver of Revenue.

Some people can get away with using people’s first names immediately, but my advice would be to start with a respectful “Hi Mr Smith, my name is Eugene, and I am calling on behalf of Company A Mobile. I have been tasked with finding savings for clients on their phone bills. By looking at your calls, I can often help to customise your next contract and save you more than 20% on your calls, is that something that would be of interest to you?” If it is not Mr Smith you are speaking to, I am sure he would say so, and if he really is busy in a meeting (and he is interested) he will tell you to call him later wouldn’t he? His next comment will probably be that he is not a Company A mobile client, so how would that work? Now he has obviously opened the door for you to sell your product.

Remember, if you are struggling to close deals, or get past a certain stage in the sales process, it is often your opening that is weak, not your close.

Pick up the phone and just 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.

Sales training is an ongoing process not an end goal. It is only with constant reinforcement of the basics that success is achieved. Please take the time to run through some of these with your telesales team. It is a short list of some of the most common mistakes we have discovered when doing training.

Realise that Telesales is not only a numbers game – it is a ratio game

It might sound obvious, but there are many people who neglect this. As a simple exercise, ask any sales person how many deals they have done over a period; guaranteed they will give the answer in a flash. Ask them how many prospects they called to do those deals, and they will probably not have a clue. If they do not know what their closing ratio is, how will they know when a new approach works and when it doesn’t?

Are they still starting their COLD CALL with “Hello Mr. Smith, how are you today”?

The fact is that they are asking a complete stranger for personal information. It is a desperate attempt at getting the prospect to talk, and as you know yourself, no-one answers that question truthfully.

20 seconds for a first impression

If they can highlight the biggest benefit of the product (not feature) within the first 20 seconds, they will have the prospect’s attention and time.

People like you – NO! I am an individual client of yours

Now after reading the previous point, it makes even more sense never to open with phrases like “I was just calling people in your area/people like you”. Surely that can’t be the company’s biggest benefit?

Just calling to touch base/Just checking to see if you needed anything

This always means “I want an order but I am too scared to ask for it”. Rather call with news of interest: “Mr Smith, I was at another client last week, and saw something that might be of interest to you”.

 If they ask dead end questions they are loosing 50% of their business

“Is there something else I can help you with today?” If the client says “no”, they are stumped. Rather make a specific suggestion. “Mr Smith, have you tried our ….before”

Be prepared and think on your feet

It is said that a good lawyer never asks a question he does not already know the answer to. A good salesman is prepared for both answers.

Have any sales people ever tried to close a deal at the end of a presentation with “so, Mr Smith, what do you think of our product?”

A closing question is answered with a “yes” or a “no”. This question is not only an opening question; it is also a bad one.

Just pick up the phone and try it.

Eugene

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