As a business, you are either growing or dying. And one way to grow and have a lot of success, you have to know your numbers. And one of those numbers is your closing ratio.
Closing ratio, also known as close rate, is an important measure that shows how efficiently sales professionals or teams perform. For example, it tracks how many sales have closed compared to the total number of proposals given.
When you don’t know and track your closing ratio, you may not track other important metrics and variables that will help you be successful. You need to have a goal. For example, you should have a goal to hit a specific number of proposals or deals conducted to grow and scale your business.
If you would like to grow your business, you need to know your numbers. Every customer or customer organization has a specific process for decision-making. Often, a decision is made not only based on the value of the bid offered but also because of the internal relationships and dynamics within the organization.
In a business, multiple people may impact a decision. This is why, as a contractor, you must have a working relationship with everyone. Prospects are more likely to purchase from you if you match their personality style. And don’t make the mistake of sticking to one-for-all tactics.
The quicker you respond to your lead, the better your closing chance. For instance, aim to respond to requests or questions from your website within ten minutes or less. Keep in mind that if you contact a lead within sixty seconds, you have a 200 percent higher conversion rate than the second contact.
On average, companies take 15 hours to respond through email and 60 hours to respond through telephone. So, get ahead of your competitors by responding to leads faster.
Growth is a lifestyle, and if you are growing in business, you should be growing in other areas as well. You have to know and track your closing ratio. Growing is a math equation.
When it comes to sales, note that closing is the name of the game. Also, note that how you close matters and is just as important as your close ratio. While calculating your closing ratio is easy, there may be obstacles and challenges that make attaining your goal a little tougher.
It is important to align with your marketing team and understand how the leads you are working on are qualified. You should also improve your product knowledge in order to overcome objections.
Finally, thoroughly understand your prospects with accurate buyer personas. This will help you meet them where they are in the buying process.
Are you tracking your closing ratio today? With these tips, you will calculate a high close ratio month after month. Even if the closing ratio cannot be a direct measure of an organization’s sales success, this key metric, when not increasing, is a vital symptom that you should work on and improve your sales effort.