Doubling Your Close Ratio

Recall that approximately 80% of purchases occur after the order has been requested five times and yet only 10% of salespeople ask five times before quitting. Likewise, 40% of salespeople ask only once, then quit. These 40% quit for a variety of reasons: impatience, the craving for instant gratification, poor follow-up, no time-management system, or just simple laziness. There is no doubt that these statistics are shocking, but customers are the victims of these lackluster performances on a daily basis.

Imagine having to confirm five times before you get a yes. That means, on average, there are four knows before a yes. That's a lot of work! Some authors suggest selling is a numbers game: talk to ten people, get five presentations, close two deals. That sounds like a lot of work—not selling very smart. It bears out the fact that the average close ratio is only 20%. That means, on average, salespeople close only two out of ten potential opportunities. Funny, I always thought selling was about people, not a game with winners, losers, and average, mediocre performances. Don't fall victim to the numbers game, condemning your career to a life of mediocrity. Don't measure your success against the masses. By comparing yourself against the averages, you only fuel a false sense of productivity. I say set your own standards. Don't take pride in being average—it's too easy and not very satisfying.

Remember that confirming is not an event but a process that begins within minutes of meeting the customer. Customers are very quick to pass judgment, wasting no time deciding if you are likable and trustworthy. The first step to doubling your close ratio is to ensure the first six steps of your sequential model have been completed to the customer's satisfaction.

Hence, if close ratios are a meager 20% that means the customers' ratio is 80%. Ouch! Customers are closing more often than we are. They sell us on the concept of not doing business with them. They offer a multitude of excuses, objections, and justifications all in the interest of selling us their "no." The problem is we are too quick to accept their rejection and with a bruised ego return to the adult day-care center to lick our wounds and seek support. Sound familiar?

So, what is a good close ratio? I would suggest that as a sales entrepreneur your target should be no less than 40–50%. That means if you approach ten potential customers, ones with a need and a bag of money, you should confirm at least four to five. Sound daunting? It isn't. Some top-notch sales entrepreneurs are confirming up to 75% of potential customers.

Start by evaluating your current ratio. Track it for a month or two and reality will quickly reveal itself. It may not be as high as you think it is. If yours is higher than 20%, congratulations, you are in the minority. But I will remind you, your objective is 40–50%. Proper execution of your Sequential Model will certainly contribute to doubling your current close ratio. It simply means building rapport and trust as you navigate through the first six steps of your model coupled with the confidence to ask for their business. Customers expect to be asked; don't disappoint them. They get irritated by reps who fail to complete the sales call with no direct close. You represent a solution to their needs, so the only outstanding issue is to ask them. If you don't someone else will—and be rewarded with a bag of money. Hence, taking your close ratio to 40% is not an impossible, arduous objective.

However, I caution you, don't strive to achieve a 100% confirmation ratio. Not only will it never happen, you don't want 100%. You couldn't handle it. You're already time-starved with what you have. Free up time by firing C accounts (and C activities) and increase productivity by doubling your confirmation ratio on A and B opportunities. If a 100% confirmation ratio is your goal, then work at McDonalds or Burger King. Everyone who walks in buys something. When was the last time you heard this conversation in McDonald's:

"May I help you?"

"Oh, no thanks, just looking."

My point is this: Achieving a confirmation ratio of 50% is hard work, and yet it can be very rewarding. Success is hard work. A job that has a 100% confirmation ratio generally pays minimum wage.