... Just by Tweaking Their Selling Techniques
By Kris Mills
One of the things that my partner Shane and I do is work
with businesses helping them increase profits. Shane addresses
areas like systems and sales and I overhaul their marketing.
One company that Shane helped transform was a
Sydney-based home extensions company.
The business in questions was struggling to make sales.
They were getting leads from their advertising but those
leads weren't being converted.
Conversion rates in the building and home improvement
industries are traditionally very low due to the nature and
cost of the purchase. The industry average at the time was
running at approximately 8% -10%.
This company's conversion rate was also at 10%. After
making some changes to the sales process, Shane increased
their conversion rate to 26% ... a 160% increase.
In real dollar terms this had a dramatic impact on profits.
They made around $7,500 in commissions on every
$100,000 building project.
Prior to the changes, out of every 100 prospects they saw,
they earned $75,000. After the changes, the figure was
$195,000 - an increase of $125,000.
Lets take a look at how Shane achieved these results ...
In most situations when a home owner is thinking about an
extension they will telephone and arrange a "quote". Normally,
the only questions they're asked during the initial call are
"where do you live", and "when do you want us to come?"
Instead, Shane went through a specially scripted
qualification process at the initial point of contact.
He'd find out their needs, their likes and dislikes and a
bunch of other critical information, and he would also
give them a little strategically engineered information
which was designed to pitch the company as being
head and shoulders above the competition.
This served three purposes:
1. It provided Shane with information which assisted in the sales
process;
2. It qualified the potential customers or disqualified them so the
design consultants wouldn't waste their time needlessly;
3. It pre-sold the prospect so they were virtually sold before the
design consultant even visited them.
Shane then developed a comprehensive sales system
which was followed to the letter each time a sales call was
made.
The system addressed everything that took place from the
time a potential customer first called until after the sale had
been completed. It included:
-
Initial incoming telephone script - most people will ring
around for 3 quotes so by getting the initial dialogue right
at the start, you're narrowing the odds in your favor;
-
Initial information package - the quality of material;
-
Follow-up telephone script;
-
What to wear to an appointment to create the most
favorable impression;
-
When to schedule the appointment for so as potential
customers are in the most receptive mood - time of day
makes a big difference;
-
What sales aids have the most impact - before and after
photos, past designs, award details etc. etc.;
-
How to pre-qualify prospects to eliminate tyre kickers;
-
How to frame the sales person as a "guru" before the
meeting - great way of eliminating the competition early;
-
How to build rapport during the presentation;
-
What to say to uncover their REAL needs and desires;
-
How to demonstrate the product and/or service;
-
How to identify who the competition is and what the
potential customer thinks about the competition;
-
How to sell your competitive advantages;
-
How to sell the benefits of the solution;
-
What the most common objections are and how to best
handle them;
-
How to gain commitment to the sale in a non-obtrusive way,
and when to ask for the order without sounding like a
"door to door salesman";
-
When to ask for referrals and how;
-
How to make it EASY for them to buy;
-
What measures to take to ensure 100% customer delight
before, during and after the sale;
-
What follow-up processes need to happen after an initial
meeting to ensure a customer stays interested.
The system was so comprehensive that someone could
virtually walk in off the street read their sales system and
start selling successfully. All sales people within the company
adopted this system and all achieved an enormous and
sustained increase in sales conversions as a result.
What can we learn from this?
It doesn't matter how effective your lead generation
techniques are, if you can't convert them into sales
you're pouring money down the drain.
Before increasing your advertising spend, it will pay huge
dividends if you firstly maximize the return you're currently
getting on your existing marketing dollar by enhancing
the effectiveness of your sales systems.
Related
Articles:
Turn Prospects into Buyers
It may take 4 to 7 visits before your web visitors buy from you. New information, regular changes, and updates keep visitors coming back to your web site. As your visitors develop confidence in you, they will be more likely to buy from your products or services.
When Less Is More: Lower Energy Level Found to Work Best in Cold Calls
A
salesperson wrote to tell me that he and his colleagues experience better
cold calls when they speak in a more "laid back" manner with a lower
energy level. Fascinating!
5 Ways to Encourage Impulse Purchases
I just bought six square pieces of spongy fabric for $20 and
walked away happy - "victim" of an impulse purchase. I also came away with
five ideas for increasing sales from impulse purchases. Next
time you evaluate short-term sales and marketing strategies,
think about and apply these five impulse purchase lessons...