Businesses run on just one thing and one thing only and that is conversions. Depending on what your business is, the conversion rate of your company can be anywhere between 10-15% of the total leads generated.
But if it is below that you know there is a problem in your sales funnel. I once had a client who had more than 100 leads a day. But the conversion rate was a static 1%-3%. This for any business is the death march.
But after radical research and observation, we managed to come up with a number of things that could be the reason behind low conversion. Now, bear in mind these are general tactics. You might need to modify a little bit for them to be truly effective.
Refine or Create Your “Pre Selling” System
It is important that you strategically map out how to prepare a prospect before a sales interaction even takes place.
This can be via a video, white paper or a client testimonial, all of this depends on how you want to pre-sell to your prospects. This leads to a direct increase in the closing rate.
Companies that have a good trust messaging and credibility system in place manage to increase their conversion rate by over 20%. Part of this reason is when the company improves its pre-sales the actual sale also becomes much more effective.
Pay Attention To The Sales Scripting
This means be prepared for any situation that may befall you. A written sales script will help your sales team make a conversion. If you don’t have a prepared sales script then record your top sales guy make a mock presentation.
Take this script and test it out elements with all the other guys, see how people are responding. Additionally, check how your final numbers get affected. This will help you develop a better closing script. This also helps increase the current sales and also protect you if your top salesperson ever decides to leave.
As their knowledge is captured in the written form you don’t have to worry about how the others will learn.
Make Sure You Hold Your Prospect Accountable
Be upfront with your prospect in the form of a formal or informal contract. Both you and your prospect need to understand that this is a time-consuming process, and you both need a clear yes or no to move forward.
Maintain transparency throughout the process. If at any step both of you feel that you are not compatible or the solution isn’t working out then they need to tell you. The “thinking over” part is what consumes the most time and often messes with the conversion rate.
Keep Optimizing Your Offer
The price point does not need to be set in stone. Keep the process moving, test the price point, test the terms you are offering. Test how you frame your offer- you won’t lose anything in the process but rather gain valuable insight into how your customers are thinking. The only way to ensure conversion keeps moving upwards is if you test, test and then test more.
Use The Fear Of Loss The Way Millennials Use FOMO
Look around you the best way to ensure action is via generating the fear of loss amongst the prospects. But then comes another question-How do you achieve this without looking a little too excited?”
The easiest way is to introduce a high-value bonus that they get if they take action immediately. Another way to speed up the process is to provide significant pricing incentive to take action.
Use Risk Reversal
If you are confident that your product has the capability to help the prospect, then you can put yourself on the line while trying to sell the product.
You can provide risk reversal in the form of returns, cashback or return on service fee. Just think of the way pizza takes 30 min to arrive. This concept is an extension of that. People have a stronger motive to act if they know that you are 100% behind your product.
So these are some of the basic ways by which you can ensure that you are increasing conversion rates. You can try out all of these but the foundation for even all of these points to work is investment in a good sales team with training. As nothing is possible if you don’t have a good team.