The Best Way to Increase Closing Ratios is Available Within Your Customer Database!
We’ve Been Tracking For Years. Closing Ratios For Sales to Previous Customers, Referrals and Self-Generated Leads Are More Than Twice as High as Any Other Leads.
If you’re wanting to increase your closing ratio, the biggest hint for you is to focus on where the money is. Where have you gotten made your sales before? Therein lies the answer.
Your previous customers and the people they talk to will be the best way for you to increase closing ratios.
While the average closing ratio for cold leads for us (those coming from our advertising on the radio, internet, home shows, and other paid advertising that does not have a personal connection to us) is right around 30%, the average closing ratio for Previous Customers, Referrals and Self-Generated Leads is anywhere from 70 – 80%.
To top that off, the numbers consistently show that actual contract amounts on sales to previous customers and referrals are significantly higher for previous customers and referrals.
Higher closing ratios and higher dollar volume with less time spent on leads? Wouldn’t you rather run half as many leads for the same dollar volume (or even more more) with people who already know, like and trust you? Think of it: less time, less headache, better relationships, higher sales…happy customers who talk to friends and neighbors…happy sales person!
Knowing this, why wouldn’t you take the time to foster those relationships with your previous customers?
At one of our recent sales meetings, one of the guys mentioned that he has so much to do with servicing new leads, that he does not have time to circle back to his previous customers.
While it could be true that he has too many leads, in sales we want to keep following the money. It should never be the case that an experienced sales person does not have the time or take the time to go back to those who have bought before. There are other ways to deal with too many leads; you can either slow down the lead spigot a bit or otherwise hire new sales people who do not have a customer base yet. Do anything except forsake those who have been a good source of sales in the past.
The best way to increase closing ratios is to take good care of your customers and continue to foster those relationships. They will prove to be much easier and enjoyable “bread and butter” than constantly having to seek and win new customer over and over again.
Now get out there and take good care of your customers. Serve them well, stay in touch, and they will take good care of you for the rest of your life!