In my coaching sessions with clients, I am constantly on the alert and asking questions to make sure sales that should be won aren’t getting lost. Lost sales are lost revenue and future business erosion. Make sure you are not making these common mistakes that cause business to slip away.
The 6 Most Common (and deadly) Mistakes that Cost Sales:
- Not calling Past Clients/Sphere
This is the biggest discipline breech and its happening at an alarming rate. No matter the industry, the percentage of sales professionals who consistently contact their base and ask for the business and referrals is low single digits. When I review with my clients the three most common lead sources they have, most often it is: Sphere, Past Clients and Referrals. However, without properly following up after the sale, creating value and asking for new business, there is more business being lost than is coming in. Let me explain what I call the 20-30-50 rule:
- 20% of your past clients/sphere will repeat or refer if you do not follow up after the sale- assuming you treated them well during the sale.
- 30% will never repeat/refer no matter what you do.
- 50% may repeat/refer if you consistently reach out.
In other words, if you are like most sales people (you take care of your clients, but rarely if ever follow up after) you are losing 2-3 times more business than is coming in. Half of your goldmine (client/sphere) needs front of mind awareness from you and then they will act. Simply reaching out intentionally to your base, identifying who your net promoters are and training them to send you business in mass, can in some cases, double your sales.
- Not mastering the most common objections
Most sales are lost due to mismanagement of objections when the sales person is in front of the prospect. Smoke screen objections stall most sales people right out of the gate. At the initial call, the sale is over before it began with the rep/agent staring like a deer in the headlights wondering what to do next. Most allow the objection to stick and just move on to the next prospect who will most likely respond in the same or similar excuse- objection. Most sales people are one to two questions away from a sale and don’t even realize it. Too many take objections personally, then fear of rejection sets in and call reluctance takes over. This vicious cycle repeats itself over and over with a majority of sales people. The consequence is customers with unmet needs and lost sales revenue and commission.
- Selling to everyone the same way
If I had a dollar for every time a sales person told me they sell this way or that to everyone- or the way they want to be sold, I would be on my own island in the Pacific not writing this blog. The fact is not everyone makes decisions or selects products the same. This is determined by their behavior. Some make quick decisions and buy new products focusing on the bottom line. Others buy traditional products, are slow decision makers and need space to think over their purchase. Still others need to be sold showy products quickly otherwise you will lose the sale- due to their lack of loyalty. And finally- the proven product buyer who has high fear and low risk, must be handled carefully and provided time to decide with guarantees. It is essential you understand your behavior- the behavior of the people you are doing business with and help them buy their way. This is called Behavior Selling or The Approach.
- No process to follow
One thing the world’s billionaires have in common is they all have a sales process they follow. Most sales people do not, in fact the majority wing it or shoot from the hip. Sales are missed or lost because steps are missed. The steps you must implement now are:
- Building Instant Rapport-Mastering the initial call
- Prequalifying hard to sell easy- asking the key right questions to determine information about: Individual/Company, Need/Pain, Interest, Motivation, Ability
- Delivering a 6 Step Dynamic Presentation- that leads to the ultimate conclusion- Yes!
- Mastering Objections/Closing the Sale
Language matters and what you say- how you say it, blending to your prospects behavior, will determine whether or not the sale is one or lost. The best way to build your sales is with Core Selling Skills or The Process.
- Inconsistent- non-existent daily prospecting/lead follow up
Most sales people ride the tide of the market and their commission checks reflect that. One month they make it big and then starve for two to three months only to pick back up only to drop back down again. The roller coaster of income and emotion never seems to end. When there is no pipeline, the rep picks up the phone out of desperation to try and generate income. Even if their sales skills are poor and not blending appropriately, sales pick up. That is because sales is a contact sport. Improving in key skills and disciplines increases conversions, but the bottom line is more dials will result in more contacts which eventually will result in more sales. Easy low hanging fruit sales will occur simply by consistently following up on initial or past interest leads and prospecting for more business. If you consistently prospect and follow up daily you will see a consistent increase in commission checks and eliminate or reduce the peak and valley syndrome.
- Giving up commission/caving at negotiation
One might make the case that the sale was saved or made due to slashing price and/or commission. Where that might be the case in a few situations, too often this is a pattern the rep repeats to earn or win the sale and are losing more than they are winning. If they analyzed their lost sales even though they slashed or discounted, the hidden or real reason is they didn’t meet the need of the client. Too often, the consumer is trying to make a commodity out of the rep. There are books written on how to bypass the sales person and save money. The internet provides all the inside numbers and this can put the rep in an inferior position if they allow it. What is most important to the prospect or customer is value. Value= Price + Service + Experience + Quality. If the rep level shifts the conversation away from price to value, they can avoid the deadly mistake of giving everything up including the loss of the sale and win a happy customer and get paid well for it!
If you are or have made one or more of the 6 deadly mistakes and want to avoid repeating them, Contact Us today and Schedule a 30 Minute Complimentary Session with one of Our Coaches.