Sales Process Diagnostics

Determine Any Weak Links in Your Lead Handling Chain

By Rao Wu

If you’re not hitting your lead close rate goals, going through a diagnostic test of every step in your sales process can give you a precise reason why. By asking the right questions, you can determine what’s working for you and where you need to make improvements. Here’s a checklist of questions we go through with our vendors when they want to determine the best way to boost their lead close rates.

Are You Responding to Your Leads Quickly and Repeatedly?

While it’s always important to respond to a lead when your prospect is in a “buying mood” and in need of the solutions you provide, it’s also important to not give up after the first few attempts. Multiple studies show that the sooner a prospect gets a response after submitting a lead, the higher the probability they’ll buy from that vendor, and also, that persistence pays off. By being quick to respond and then persistent (without being obnoxious), you make it easier for your prospect to do business with you.

Employing the LIFO Method when Responding to Your Leads

When it comes to responding to leads, employing the LIFO method - “last in, first out” - can boost your chances of closing deals. The theory is that acting quickly on new leads is critical. If a lead has been sitting over the weekend, then it can wait another 20 minutes. But if it just came in, you should launch an immediate response. So, always act on the freshest leads first.

Are You Sending an Email Response and Following Up by Phone at the Ideal Time?

It’s important to know your audience and to have an understanding of when they’ll be available for your response, whether it’s via phone call, email, or both. Most business people sit down at their computers when they get into the office in the morning and go through their emails. So making sure they see an email from you first thing in the morning can be a great way to get their attention. On the other hand, they may not be ready to field a very early morning sales call, but instead prefer mid-morning. The key is to be in tune with your specific audience.

Auto Responders and Voice Mail Systems

If you’ll be out of the office, or otherwise not able to respond quickly when a lead comes in, have an auto-responder email set up that notifies your prospect that you’ll get back to them shortly, and provide all your contact information in that email. Likewise, ensure your voice mail system is working properly, that your greeting is up to date and professional, and that your voice mailbox is not full. Check this on a regular basis! Unfortunately, many businesses have voicemail mailboxes that are full or not working properly. Don’t let this happen to your business – don’t make prospects work to give you their business.

How Are Your Communication Skills?

You can be an extremely dedicated sales person, with the best intentions – but failing at the basics can cause you to lose a sale. “The basics” include having no grammatical or spelling mistakes in your emails. They also include leaving voice mail messages that are clear and concise – and that means no longer than 30 seconds. When leaving your phone number, say it twice and speak clearly and slowly. This seems obvious, but it’s amazing how many sales people forget about the basics when handling their leads.

And speaking of voice mails – do leave them. Whether your prospective customer is not there, they’re too busy, or they’re screening their calls, don’t be afraid to leave a polite voice mail. Just because a prospect can’t answer the phone when you call, doesn’t mean they won’t be ready and willing to do business with you at a later date.

Are You Giving Your Prospects Something that Will Build Trust, Such as Sharing Pricing when They Ask?

One of the most important jobs for a sales person when working with a prospect who submits a lead online is building trust. This means if a prospect is asking for pricing over the phone or by email, don’t be evasive. If you don’t want to be locked into giving a specific price for your services before knowing more about your prospect’s needs, consider sharing a range of prices for various packages. Not giving a price when your prospect asks for it can be worse than giving them a price that is higher than a competitor’s. Give them a range, tell them things can be negotiated, and above all, build trust.

Do You Work Each Lead Until It’s “Dead?"

While it’s essential to contact your leads as soon as possible, you shouldn’t just drop older leads. Even if a prospect does not buy right away, it’s important to continue to market to them and build the relationship. So, having a plan to continue to communicate with your prospects can keep them engaged for a time when they’re ready to buy.

How’s Your Pipeline?

Leads come in at different stages of buying readiness. Understanding where your lead is in their buying cycle should dictate your sales approach. Having this information will enable you to best manage your sales pipeline. Close rates may seem low at certain points if you do not have a well-managed pipeline. Create a long-term follow-up schedule in your CRM tool or Outlook calendar and keep your pipeline full.

Do You Use Direct Mail to Communicate with Your Prospects?

While email is one of the most cost-effective ways to communicate with your Internet prospects, sending customers coupons and incentives via regular mail can be an effective tool. Most often you will get a mailing address on your lead form, so using that information as another way to communicate can be a great way to capture prospects’ attention. Always transfer your prospects’ information to your direct mail database.

Do You Have Crystal Clear Objectives?

It’s critical that sales people are very clear about their objectives with their leads, and that this awareness is part of your company’s overall philosophy and culture. When everyone knows their short- and long-term goals and the steps they need to take to get there, productivity increases tenfold. Having a clear picture in mind, for example, of where you want to be with your lead close rates is the first step in achieving your sales goals.

Do You Know Your Key Sales Process Metrics?

Successful sales people have a nailed down process when it comes to tracking key ratios in their sales process, and they have benchmarks they strive for in each step that increase their odds of success. Metrics to track include:

Number of Leads Received
Attempts to Connect – Number of times you tried to call and/or email your prospect.
Proposals-to-Connects Ratio – Percent of prospects you connect with who give you the opportunity to send them a proposal.
Closes-to-Proposals Ratio – Percent of proposals that become closed deals.
Overall Lead Close Rate – Number of leads it takes to close one sale.
Cost per Sale, Revenue, and Gross Profit

For true success, you should strive for a high level of awareness of the hard metrics that relate to each step in your sales process, from appointment sets to appointment shows, to close rates, sales cycle times, grosses, and more. This will help you see reality and prevent you from basing your success or failure on a hunch. Then, you can conduct a clear diagnosis of when and where problems exist and correct any weak links in you’re the chain with precision. This will put you well on your way to achieving the success you dream of.

Rao Wu is the Vice President of Sales for Wheelhouse Enterprises, Inc., home of CompareBusinessProducts.com