Is Your Sales Close Rate Higher Than This?
It is reported that the average close rate is
- 19% Across All Industries (Average)
Yours maybe a little higher or a little lower but this is the average across all industries.
When I first read this it really shocked me if I’m honest, 19%…surely it can’t be that low!
But then when I reflected on this it actually gave me a positive outlook. It demonstrates how difficult sales can be in that we should only expected to win one in five deals.
So if you’re struggling with your sales then bear this in mind. Obviously our goal is to win every single deal, but the honest truth is that no matter how proficient you are in sales, you’re going to lose much more than you win. So when you lose a deal think of this, just think “That’s one lost out of my five, I need to find four more that I’ll lose and then I’ll win one.” This creates a positive spin on losing an opportunity.
At Sales Icon Coaching we’re always talking about using information such as this as your weapon. If you know that you’ll only win one in five then use this information to work out how many opportunities you need to be successful and surpass your target. More on this in a later article.
But back to the topic of your close rate. If yours is low or you want to improve your close rate then try this. Instead of focusing merely on closing techniques focus on the route cause. Our findings are that often low close rates are the result of failures early on in the sales process, that being the qualification stage. In that opportunities that are unlikely to ever close are being moved down the sales process and thus negatively effecting your sales closure rate.
For more on the qualification pitfalls do review my article on this subject below:
So start at the mouth of the river or top of the funnel. If we can get rid of the prospects whom aren’t the right fit early on, we’ll see a drastic change in our sales closure rates.
Qualify effectively and you’ll notice a positive increase in your close rates.
Try it, review today what your close rates are. Then for a month or two try to improve your qualification and disqualify prospects or opportunities that aren’t the right fit for your business or offering. If you don’t see your close rates increase I’ll be astounded!
For further techniques do look out for our soon to be released book Sales Icon: Selling in the Shadows