Are You Sabotaging Your Sales Growth?
Are You Sabotaging Your Sales Growth?
Are your sales declining or running flat but generating less profit? A natural reaction for many small business owners is to beef up their marketing to generate more leads. Before you do, take a few minutes and really look at your sales efforts. Here is why.
Generating leads that do not translate into profitable sales is a waste of time and money. So improving your sales effectiveness before you invest in additional marketing just makes good sense. And here's the best part. You can make improvements in sales without spending a lot of money.
What weaknesses are sabotaging your sales efforts and eroding your profits? While actual statistics vary depending on the research you use, consider the following:
98% of sales people (or owners) do not follow a consistent sales process
93% of sales people volunteer a discount without being asked
87% of prospect inquiries are never followed up on
90% of sales are made after 4 or more contacts
82% of sales people cannot differentiate themselves or their services from competitors
Easy, Low Cost Ways to Improve Your Sales Effectiveness
Clarify your sales purpose. Is the purpose of sales in your organization to generate revenue or build long-term relationships? This is not a trick question, but goes to the core of what sales is all about. Because every prospect is a person first, I would argue that the real purpose for sales is to build relationships that ultimately create revenue, referrals, testimonials and customer loyalty. Which do you want - a single sale or a lifetime of sales and loyalty? It all starts with your purpose and goals.
Create a sales process and use it. Does your sales process (or sales management system) support your purpose to build relationships? Is it easy to implement? Does it deliver the 'first impression' you want to deliver? Does it compliment your marketing messages about your company?
Here is an example to demonstrate this. Your company has positioned itself as one that truly cares and listens to customers to deliver the best solution possible - and it's reinforced in all your marketing materials. As a result, a prospect contacts you by phone, web or other means. But alas, no one follows up or calls back. Imagine what this prospect now thinks about your company - despite what your marketing says about you. Not only did you miss the sales opportunity - your actions (their experience with you) contradict your message. Make sure your sales process supports your purpose and positioning - then follow it consistently.
Here are some common pitfalls to avoid when creating your sales process:
Create a variety of sales processes to cover every possible situation and source of leads. Instead, keep it simple and systemize as much as possible with templates - so you can be consistent when it comes to implementation.
Assume you can and should serve everyone. You cannot be all things to all people without sacrificing profit, so screen upfront and build your process for your target customers. Be willing to let some 'opportunities' go when there is not a fit.
Assume you can sell with one touch. Few businesses, particularly today, create a sale with one contact - most require multiple touches. Higher priced, more complex products and services require more touches, so build this into your process and stay connected.
Articulate what makes you different. Don't rely on your marketing to make the sale for you. You (or your sales team) must be able to communicate why your company is the best choice in order to turn initial interest into sales. This starts with clarity on three things: Who are your ideal customers? What issues or problems do they face in their business or life? How do your products or services fill a need and solve their problems - better than other alternatives in the market? In other words, what benefits will they receive from choosing or working with you.
Without a clear understanding of buying motives for your customers and compelling reasons to choose you, customer objections are typically met with 'discounts' in an attempt to 'get the sale'. Do you believe your customers only care about and buy based on price? If the answer is yes or you are not sure - then it's time to talk with your customers. Ask them why they do business with you. The answers may surprise you and will go a long way in developing a compelling message to motivate others to buy!
Question skillfully and listen carefully. While we often associate sales people with being social and talkative, effective sales people and relationship builders take the time to understand and help people. In other words, uncover needs and provide solutions by questioning skillfully and listening carefully. Questions are a problem-solvers best weapon - in sales and in life. Just remember to ask open-ended questions, dig deep to understand why and really listen! You will be amazed at how much you learn - and how easy it is to help people. And of course, you'll enjoy greater success when you stop trying to get what YOU want, and start helping others get what THEY want.
How much profit are you leaving on the table through weaknesses in your sales efforts? Remember, improvements in sales conversion cost you very little - but pay off big on the bottom line.
