In continuation of my previous post on identifying the right prospects (available here), I would like to address the second most prevalent challenge sales leaders are reporting to me: the team’s struggle to close business, specifically getting deals across the line, or specifically they are looking at improving sales close rates.
Firstly, and I accept not everyone will share this view, but it is important to clarify that there is no such thing as a “closing” stage or a “closing playbook.” Closing is not a skill that can be taught; it is simply a natural progression that follows after all necessary elements are in place.
To illustrate this, consider a scenario where you visit a doctor for medical concerns. The doctor spends time discussing your symptoms and engages in a thorough examination. They then provide a diagnosis with a thorough explanation of the underlying issues and also point out the potential risks of not resolving the problem. However, at this point, they unexpectedly wish you good day and usher you out of the room. A doctor abruptly ending the consultation without providing a treatment plan, referral, or providing a prescription would be tantamount to professional misconduct and frankly just very odd.
Similarly, in a sales context, you have spent time with a prospect thoroughly understanding their business and context, identifying their pain points and the consequences of those, exploring their purchasing process and budget availability, and agreed that the issue(s) are urgent and need to be resolved ASAP. How odd would it then be to thank them for their time and leave without “closing” the deal? The most natural thing in the world to do at this stage would be to agree how you are going to move forward. There may be questions around how many, how long, what option, etc., but if everything else has been fully executed, the question of whether they will or won’t move forward should be redundant.
Now, this is very idealistic, but it should be what you strive for. Realistically, though, there will be objections, apathy, delayed decisions, etc., so having the skills and tools to deal with those is essential. To improve success rates, though, the focus should be on what happened, or didn’t happen, before the client said no, not building strategies for dealing with the fallout of a client saying no.
This approach is a little counterintuitive as it is much easier to concentrate on the obvious issues. If a client raises an objection, it is arguably clear what the issue is, but I would disagree. Not receiving the objection in the first place is infinitely better than having a great way to deal with it.
The old saying of a chain is only as strong as its weakest link is so apt here. Spending time identifying the weak links in the sales process is difficult and time-consuming, but if you want to see close rates improve, it is vital. You need to dig really deep, looking at all the indicators you have to hand. As a starting point, think about the following:
Are you speaking to the right people at the right company at the right time?
A fully formed, robust Ideal Customer Profile is a non-negotiable. Without it, you run the very real risk of starting at the wrong place. Imagine if you go for a hike and follow the route and directions perfectly, but started from the wrong point; you will not end up where you planned to be. Where you start the sales process will 100% influence where you end the sale process.
Do you understand their business and their goals?
Continuing with the hiker analogy, this is where the map and directions are created. Taking time and skill to gain a deep understanding of their business, not just surface level, is critical. Understanding the why’s, not just the whats, takes time but will save significantly more time down the line.
Do you know what is hindering their progress?
You have taken the time to understand their business and goals, so what is their preferred state? There has to be a meaningful gap between their current state and their preferred state. If there isn’t, your solution is a nice-to-have at best. It is definitely not a must-have. Again, spend time here to save time later.
Do you have a solution that will solve their problem(s)?
Sometimes it is OK to say no. If you shoehorn a solution in where it is not a good fit, you will create problems. Whether it is getting the sale over the line or dealing with the fallout once the prospect becomes a client, you will have additional work and put your reputation at risk. It just isn’t worth it.
Does the prospect understand how your solution will achieve their objectives?
There is a vast difference between explaining to a client how your offering will get them to their preferred state and the client understanding and knowing how your solution will help them. The prospect obviously needs to know what they are buying, but of more importance is that they understand why they are buying it.
Have you confirmed timelines, buying processes, and budgets?
A practical but necessary step. It is also a really good indicator of how complete other steps are. Vague answers to these questions could suggest you are speaking to the wrong person or the prospect does not understand why they should buy your product, etc.
These are just a starting point and food for thought. It takes time and effort to really review your current process, but it is absolutely worth the investment. If you want assistance, give me a shout. I’d love to hear from you, but if you don’t want to get in touch, please don’t use it as an excuse to do nothing. I would urge you to start now, even if you do not carry out a full review, then start smaller with a deep dive into recent lost or stalled deals as a bare minimum. Once you see the benefits that brings, I am confident you will continue with other areas of your process.
Ray
The Sales Doctor
Consult | Assess | Recommend | Execute
Post by Ray King, 24th October 2024
