One Sales Tip to Drastically Increase Your Close Rate
This post is going to give you a great tip to drastically increase your close rate so that customers buy from you in the time-frames you desire. It all stems from a theory, we’ll delve briefly into the psychology of that theory, it’s application in the real world and an example of how it can be applied.
But first of all why’s this important? Why do we want to influence customers to buy in the short term as opposed to spending time evaluating. Well in my view this is two-fold. First of all if we can influence customers to buy in the short term, i.e. this week or this month then we can plan and forecast appropriately. That’s great, but it’s not enough of a benefit really.
The second part is more profound. We want to influence customers to buy in the short term to get the sale, yes, to get the sale.
Let me explain.
We spend a great deal of time in sales icon coaching simply teaching prospective sales icons the art of the close. The funny thing about closing is that one common trait always remains and it’s that:
- Time Kills All Deals
The longer we give a customer time to deliberate the worse our chances are. If they are given the luxury of time then they will scrutinise whether the solution is right? They will question whether they’ve evaluated the market sufficiently? They will ponder if the solution can be changed or amended in a certain way?
The longer that the deal hangs in the balance the unlikelier the close becomes. Now whilst we must give customers sufficient time to evaluate their options we should also be influencing and potentially incentivising them to speed up their decision making process.
So how do you do this at the moment? Are you simply proposing a solution and then leaving it to lady luck as to when it closes?
Don’t worry if you are, I’ve been there and done the same. The great thing is that your competitors probably do this too, but now after reading this post you’re going to have something in your arsenal to differentiate yourself.
So to the point, how do we speed up the close? Well it all comes down to something known as the commodity theory also known as the scarcity effect.
According to the theory, within human nature the instigation of scarcity enhances the perceived value or desirability of the item in question. This is why retail giants use such techniques as limit time offers or statement like “only while stocks last.” It’s one of the reasons why black Friday or cyber Monday are so prolific when it comes to sales. We think the offer is going to come to an end so we buy it and then we have the outlook that we’ve got a good deal.
Don’t be under the misunderstanding though that commodity theory only relates to price as it doesn’t by any means, price however is often the route which people use the commodity theory for.
So how can we use this?
Well we can use this theory to our advantage to influence a customer to buy from us in the short term. All we need to do is create some scarcity. So one way is the price route, something like we’ll offer a percentage discount if the deal lands this month. But what about limited time offers that will benefit the customer if they buy in the timespan you desire.
Let me use an example. I worked with an IT provider whom were pushing to sign more IT support contracts. We addressed their close rates and found that they weren’t using commodity theory to their advantage. So we brainstormed a few items that could be used in a scarcity offer and we came up with the following:
If you opt for the IT support contract this month then we will offer:
- 1 day Cyber Security Training Session RRP £850
- 1 credit per month of a PC setup
The result? Their close rate skyrocketed.
So here’s the take away. I want you to simply spend ten minutes brainstorming how you can use commodity theory to your advantage. What items can you push to create scarcity? Remember that we want to create scarcity to influence the customer to buy in the short term.
If you need further advice then do comment or message me.