Is it possible to achieve better sales results and increase your sales by saying no to sales opportunities?
You bet it is!
Here’s why…
Not every sale is created equal. Some leads and opportunities are low in value–both in revenue and in margin or profit–whereas other deals have great potential in both areas.
Plus, not every customer is created equal.
Research has shown that approximately 25 percent of people (and businesses) will pay a premium for a high quality product or service. These are usually your ideal customers, by the way.
At the other end of the spectrum is the price-focused person who makes most, if not all, of his (or her) buying decisions on the price of the product. These individual’s account for about 25 percent of buyers or consumers and they are usually the most difficult to deal with.
This bottom group of people tends to be high maintenance—you know who they are.
These are the people who will grind you for a nickel or dollar on every single purchase and then complain over the tiniest problem. They call you more often than your other customers and they are very seldom loyal because they look for the best price every time they make a purchase.
On the other hand, your top customers are usually the easiest to deal with. They are more loyal. They rarely have problems and more often than not, any problems they do encounter are easily resolved.
The problem is that the bottom 25 percent sucks up valuable time from the sales team because they are high maintenance. And, as a result, it prevents you from finding more valuable customers to add to your client list.
Here’s my suggestion…
Limit how many low-level customers you sell to and increase your efforts to find high-level customers.
I won’t suggest that this is easy because it’s not.
However, you will improve your margins and profitability; reduce your stress and aggravation; and increase your sales by investing more time finding customers who understand and are willing to pay for the value of your product, service or offering.
The key to achieving this is to keep your pipeline filled at all times so you won’t feel compelled to sell to every Tom, Dick and Harry that asks for a quote. If you can accomplish that, you will find that you will be able to make more sales while selling to fewer people (or companies).
What do you think?
Is it possible to increase the number of high-margin, high-value customers you have in your database? If so, what do you do to achieve that?
Today’s post was prompted after I read the following article was written by Jay Arthur.
The March 2011 HBR reports that sales could benefit from cutting response times. Companies spent $22.7 billion generating online sales leads in 2009. Companies that followed up within the hour were seven times more likely to qualify the lead than companies that followed up after an hour and 60 times more likely than companies that waited 24 hours.
How are most companies doing?
• 23 percent never responded at all
• 24 percent took more than 24 hours
• 16 percent responded in 1-24 hours
• 37 percent within the hour
In other words, two-thirds of companies are throwing away their investment (that’s $14.6 billion) by waiting too long to respond.
I can say from personal experience that these numbers are not unrealistic. I have contacted many companies about a potential purchase and been dismayed how long it took for most of them to respond and flabbergasted that many of them didn’t ever respond.
In today’s rapid-fire business world, speed in your response time is critical. You no longer enjoy the freedom of waiting a day or more to respond to a new prospect.
As a sales professional, if you are serious about increasing your sales, you need to respond faster than your competition does. That means making every effort to contact new prospects within 24 hours and preferably in the same working day.
You might be saying, “Yeah but most of the online leads my company generates are low value.” That’s a completely different issue that needs to be addressed with your marketing department. However, in the meantime, you are missing out on potential sales opportunities by not following up with new online leads quickly. Can you afford to miss any opportunity to increase your sales?
If I could share just one piece of advice with sales people, it would be this. It’s a very brief clip:
[youtube]http://www.youtube.com/watch?v=D6xb1hR2Fbs[/youtube]
I recently received this email from a newsletter subscriber:
“I work as a cabin crew for a European airline, we are a low-cost airline so the biggest part of our income are sales onboard, I am trying to get better and better but it’s not so easy, for many reasons (early flight times, 180 passengers per flight, products not always available onboard etc). I think I am very skilled in selling but still I want to improve. Would you suggest some tips related to sales on aircraft?”
Here are the suggestions I gave this reader:
You have a unique challenge but you also have some unique opportunities. I’m not sure what you sell on your flights other than food & beverages so here are a few ideas that might help.
Apply the 80/20 rule. You will likely find that approximately 35-40 of the 180 passengers on-board will generate most of your sales. Focus your attention on those people and stay visible to them. (see point 5)Increase the amount of attention you pay to people who are on vacation. Vacationers tend to be more relaxed and open to spending money than business travelers (at least in my experience).
Make suggestions. If someone orders 1 item, suggest something that will compliment that item. The key is to be consistent and to try and upsell as many people as possible. In North America, McDonald’s restaurant is excellent at doing this.
You could make an announcement and say, “We only have a few bags of chips left. The first 18 people to raise their hand will get one.” This can help create demand and if you approach it with humor, it could be fun. Certainly, this would depend on your time availability and courage to try it.
Lastly, make yourself available. I used to do a lot of air travel and often found that once the snack/beverage service had been completed the flight attendants disappeared. Not every one will make the effort to ring for you when they want to buy something so make sure that you keep walking up and down the aisles and don’t hesitate to ask people if they want something else.
I’d enjoy hearing additional ideas so please feel leave your suggestions.
This article was written by Jim Domanski of Teleconcepts Consulting
Tough economy got you – and your sales – down? It doesn’t have to be that way. Here are twelve, highly effective yet simple ways to blow the hinges off your sales this year.
1. Ruthlessly Disqualify Prospects
Don’t waste your selling time on those who are not serious about buying. Get rid of those tire kickers by becoming ruthless at qualifying and disqualifying. Develop a list of key qualifying questions to determine if the prospect is a contender. If your prospect does not meet the criteria you set, disqualify them and move on to those who can and will buy.
2. Be Politely Persistent
Over 97% of sales reps give up after the second follow up. Don’t be one of them. When you have a serious prospect be tenacious but polite in your follow up.
This does not mean stalking. It means doing extras to create value – sending a thank you card, a value added article, something that keeps you ‘front of mind’ ; anything gives you a pre-text for follow up. But whatever you do, be thorough and tenacious in keeping in contact with your prospect.
3. Work Harder
Elbow grease pays. Start by making 10 more dials a day. That turns into fifty more a week, two hundred more a month, 2400 more in a year. You can bet all that activity will net more revenues. Come in fifteen minutes earlier; stay fifteen minutes later, cut fifteen minutes out of your lunch. Do some work at home. Hard work won’t kill you and the pay is great.
4. Cross Sell More Often
Cross selling is easy because the client has already made the decision to buy and the wallet is already open. Leverage the moment and learn to professionally cross sell and increase the average value of the sale. Be prepared with at least two products that can compliment the original purchase.
5. Increase the Quantity of a Sale
Up sell. Increase the volume of the same product. If there are bulk discounts use them to entice the client. If there are no discounts, suggest they buy more anyway. Go for it. What’s the worse that can happen?
6. Bundle Your Products
Get your boss or the marketing department to come up with a bundled rate for certain products. Sell them as a ‘package.’ This increases the average value of the sale for you and presents a great deal for your client.. It also makes it easier to sell.
7. Learn to Sell Better
Buy a book on sales. Learn how to handle objections better. Check out websites. Purchase a CD or DVD on selling. Get your manager to help by coaching. Find a mentor. Work with the best. Hang out with winners. Anything. But do something to get better. The more you learn the more you will sell. Invest in yourself.
8. Ask for the Sale/Commitment Sooner
Just ask for the sale. Many reps wait too long. Ask your questions, identify the need, present your solution and then ask for the sale. Alternatively, ask for commitment to the next step in the sales cycle. Get an agreement to a date and time for follow up. Keep things moving.
9. Sell More Profitable Products
Look at the products you do not sell. Are there more profitable items you could be selling? Or make bigger sales by selling higher priced products. Get out of your comfort zone and try something new.You will get to your revenue goal faster.
10. Ask for Referrals
We all know that referrals sell faster and easier, so why not ask for referrals more often. The worst the client will say when you ask is ‘no.’ Nothing ventured, nothing gained. Ask for a referral this way, “Mark, can you give me the name of someone who could possible use my services?” Asking for a name force the client to think specifically and this increase your odds of getting a good referral.
11. Prospect Every Single Day
Generate new sales and revenues with new ‘blood.’ New customers broaden your customer base and more importantly, ensure that you never get complacent and dependent on existing clients. Spread the risk and make more sales.
12. Learn to Negotiate
Do not cut your price. On the other hand, if you provide a discount make sure you are getting something back. For example, you agree to a lower price but in return ask for a bigger purchase. (See the Up sell or Bundle suggestions above). If you do not know how to negotiate, see Tip #7!
You do not have to be a victim to the economy. Start implementing these proactive strategies now and watch your sales grow.
For over 17 years, Teleconcepts Consulting has worked with B to B distributors, wholesalers, high tech firms, manufacturers, financial services and other companies, big and small, who struggle to use the telephone more effectively to sell and market their products and services.
